TIDMSYME
RNS Number : 2662A
Supply @ME Capital PLC
28 September 2020
28 September 2020
Supply@ME Capital plc
(The "Company" or "SYME")
Update on business operations
Supply@ME Capital plc, the innovative fintech platform which
provides the Inventory Monetisation(c) service to European
manufacturing and trading companies, is pleased to provide an
update on its Client company origination.
The SYME platform operates by aligning Client companies
(manufacturing and trading companies) seeking to monetise part of
their inventory for cash, with Inventory funders (banks, financial
institutions and investment funds), that invest through the SYME
platform into portfolios of inventory assets via Special Purpose
Securitisation Vehicles.
Client company growth
The Interim statement released in July 2020 ("Interims")
detailed the increasing demand for the Supply@ME Inventory
Monetisation(c) service. This demand has continued to grow.
Value (Euro) Dec 19 31.3.20 30.6.20 30.9.20
Gross origination 972m 1.22bn 1.43bn 1.64bn
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Number of client companies 66 82 97 142
------- -------- -------- --------
By the year end, on 30 September, there will be 142 Client
companies, originated in Italy (up from the 97 announced in the
Interims). The acceleration in the number of corporates ready to be
served is a result of the re-opening of activities in Italy post
the COVID-19 lockdown, combined with the positive reaction from
Client companies to the progress that Supply@ME has made with its
Inventory funding.
Additional Client company demand has been created by:
- the EPIC fintech platform alliance announced on 4 September
which has delivered 19 Client companies into the Inventory
Monetisation programme (included in the above table), and
- as announced on 27 July, the pool of 272 companies originated
by one of the two Italian "Self-Funder" institutions that has
resulted in the initial selection of 29 corporates upon which due
diligence will commence.
Portfolio core sector analysis:
Sectoral concentration %
Materials 21.4%
------
Capital Goods 21.3%
------
Retailing 15.5%
------
Food, Beverage & Tobacco 15.4%
------
Consumer Durables & Apparel 8.5%
------
Food & Staples Retailing 6.4%
------
Automobiles & Components 4,2%
------
Pharmaceuticals, Biotechnology
& Life Sciences 3,0%
------
Energy 1,3%
------
Technology Hardware & Equipment 1,2%
------
The thirty Italian Client companies that form the first
Inventory Monetisation portfolio will be notified that their target
completion date is the end of October. This portfolio comprises
corporates of various sizes which form part of supply chains led by
the following companies.
-- Materials sector
o JSW Group: international conglomerate in steel, energy,
minerals and materials
o Stemcor London Trading: international steel trader,
distributor and stockholder
o Tosyali Group: international leader in the iron and steel
industry
o Steelcom: Steel and Commodities, international steel trading
business
-- Capital Goods sector
o Clarke International: manufacturer and supplier of electrical
and mechanical workshop equipment
o Tecalemit Garage Equipment Co.: a leading supplier of vehicle
servicing equipment
o Ansaldo Energia: international player in the power generation
industry
-- "Retailing" and "Food, Beverage & Tobacco e Retailing" sector
o Esselunga: a leading Italian supermarket chain
o Carrefour: a French multinational corporation specialised in
retail
o Coin: a leading Italian department store chain
The first Client companies within the new operating regions of
the UK, UAE and US are currently being analysed in partnership with
local partners and inventory funders. Specific updates will be
provided on each of these operating regions in due course.
Contribution to financials
Year ending 30 September 2020
The SYME business model is structured such that, prior to each
portfolio Inventory Monetisation, the Company generates revenues
from the client onboarding processes. These revenues grow in line
with the increasing size of the portfolio of Client companies. For
the extended financial period to the year ending 30 September 2020,
revenues are expected to be approximately GBP2.3m.
Year ending 30 September 2021
The first portfolio Inventory Monetisation is expected to have a
value of approximately EUR300m and to complete by the end of
October 2020 (the first month of the next financial year). This is
expected to deliver approximately GBP20.5m of annual revenue into
special purpose securitisation vehicles and to generate an average
annual net servicing fee of GBP6.5m to Supply@ME. The Inventory
Monetisation contracts have a three-year fixed duration plus a
one-year option.
The next securitisation programmes for delivery by 31 March 2021
is now being initiated. These aim to complete the Inventory
Monetisation of the remaining Client companies in the current
portfolio, and may include Client companies sourced for the pilot
operations in the Company's new geographies. Inventory funders for
this programme will include both institutional investors, and,
following regulatory approval, the Captive Bank announced on 21
September.
The Company will continue to keep shareholders updated.
Notes
Supply@ME enables businesses to generate cashflow, without
incurring debt, by monetising their existing stock. Before a
business has found an end-customer for its inventory, the Supply@ME
platform enables them to sell ("monetise") their stock and receive
cash immediately to boost their working capital. The Supply@ME
service enables strong companies to improve their working capital
cycle. SYME does not monetise inventory for companies in financial
difficulty or with inventory that they are struggling to sell.
Contacts
Alessandro Zamboni, CEO, Supply@ME Capital plc,
investors@supplymecapital.com
Paul Vann, Walbrook PR Limited, +44 (0)20 7933 8780
Brian Norris, Cicero/AMO, +44 (0)20 7947 5317
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