TIDMTRU TIDMTRU
RNS Number : 2959H
TruFin PLC
24 March 2020
24 March 2020
TruFin plc
("TruFin" or the "Company" or together with its subsidiaries
"TruFin Group")
Pre-Close Trading Update
TruFin announces an update on trading for the year ended 31
December 2019, current trading and outlook. The Company currently
expects to announce its 2019 full year results in May 2020.
2019 financial highlights from continuing operations
(unaudited)
-- Combined gross revenues from continuing operations were
GBP7.3m for 2019 (GBP4.4m in 2018, representing 66% growth)
-- Loss before tax from continuing operations was GBP11.8m for 2019 (GBP9.8m in 2018)
Balance sheet update as at 31 January 2020 (unaudited)
The material tangible assets of the Company, as at 31 January
2020, were not less than:
-- GBP4.6m of cash or cash equivalents
-- GBP13.9m loan payable by Distribution Finance Capital Ltd.
This loan is due to be repaid, in tranches, by the end of December
2020 (GBP5.0 million was repaid in December 2019)
-- GBP3.5m of assets within Satago Financial Solutions Limited's loan book
-- GBP2.0m share of net assets in Vertus Capital Limited
The TruFin Group has no more than GBP3.3m in near-term
liabilities.
Expectations for 2020
The Group's businesses are not short of opportunity, however
TruFin remains capital constrained. This may continue for the short
to medium term, both as a result of the COVID-19 pandemic and also
as a result of ongoing uncertainty amongst potential lenders
concerning the intentions of TruFin's largest shareholder,
Arrowgrass Master Fund Limited ("AMFL"), which announced in
September 2019 that it would be closing its fund, leading in due
course to the divestment of its investment positions.
The Group has recently been in dialogue with AMFL and AMFL has
requested the appointment of a Director representative, as per the
relationship agreement agreed at the time of the TruFin IPO. A
further announcement will be made in due course in respect of this
matter.
Whilst the impact of the COVID-19 pandemic on each of our
businesses is currently very difficult to assess, we continue to
believe that they are exposed to markets with attractive underlying
growth drivers.
Oxygen Finance Group Limited ("Oxygen") has a market leading
position with a customer base of predominantly public sector
clients who, collectively during 2019, had invoices totalling
c.GBP550m, which were eligible for discounts to be applied. At this
stage, Oxygen continues to anticipate growing their client base to
50 clients by the end of 2020, and to increase the eligible
invoices which can attract a discount to GBP650m during 2020.
However, these estimates may need to be revised down in light of
customer behaviour as the COVID-19 pandemic unfolds.
Vertus Capital Limited ("Vertus") funds IFA consolidation, and
is therefore exposed to an attractive longer-term trend, as more
individual IFAs retire and others consolidate to increase their
resilience. Vertus expects to reach a GBP16m loan book by year end,
with an average asset yield of 9%.
Satago Financial Solutions Limited ("Satago") is now selling
subscriptions of its software, vindicating the significant
investment it has made in its technology platform. Like Vertus,
Satago has not lacked high quality lending opportunities, but has
been constrained by available balance sheet. Satago recently signed
a GBP5m revolving credit facility with a specialist niche funder to
continue its expansion and service its growing pipeline.
PlayIgnite Limited's ("PlayIgnite") underlying customers are
mobile gaming companies. As PlayIgnite sources capital through
Satago it has been capital constrained and as a result is now
sourcing capital from external debt providers in order to satisfy
customer demand.
James van den Bergh, TruFin CEO, said:
"TruFin has many dedicated employees who, despite the
uncertainty, are striving to deliver on their ambitious targets.
Although the full impact of the Coronavirus has yet to be felt by
the Group, it will inevitably have an effect and we will update
shareholders when we feel able to accurately measure the impact. I
would like to thank our shareholders for their continued
support."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (MAR). For the purposes of
MAR, this announcement is being made on behalf of the Company by
James van den Bergh, Chief Executive Officer.
For further information, please contact:
TruFin plc
James van den Bergh, Chief Executive Officer 0203 743 1340
Macquarie Capital (Europe) Limited (NOMAD and
joint broker)
Alex Reynolds
Jonny Allison 0203 037 2000
Liberum Capital Limited (Joint broker)
Chris Clarke
Louis Davies 0203 100 2000
About TruFin plc:
TruFin plc is the holding company for an operating group of
companies that are niche lenders and early payment providers.
TruFin Group combines the benefits of both the traditional
relationship banking model and developments in the fintech sector.
The Company was admitted to AIM in February 2018 and trades under
the ticker symbol: TRU. More information is available on the
Company website www.TruFin.com
Forward looking statements
This announcement contains forward looking statements with
respect to the business, strategy and plans of the company and its
current goals and expectations relating to its future financial
condition and performance. Statements that are not historical
facts, including statements about the TruFin Group or management's
beliefs and expectations, are forward looking statements. By their
nature, forward looking statements involve risk and uncertainty
because they relate to events and depend on circumstances that will
occur in the future. TruFin's actual future results may differ
materially from the results expressed or implied in these
forward-looking statements as a result of a variety of factors.
These include UK domestic and global economy and business
conditions, risks concerning borrower credit quality, market
related risks including interest rate risk, inherent risks
regarding market conditions and similar contingencies outside
TruFin's control, any adverse experience in inherent operational
risks, any unexpected developments in regulation or regulatory and
other factors.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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