TIDMTRU TIDMTRU
RNS Number : 0715A
TruFin PLC
25 September 2020
Interim Financial Report for the six months ended 30 June 2020
(Unaudited)
TruFin plc
("TruFin" or the "Company" or together with its subsidiaries the
"TruFin Group" or the "Group")
-- Combined gross revenues for the Group increased 34% to GBP4.2m (H1 2019: GBP3.1m).
-- Gross revenues at Oxygen Finance Group Limited (together with
its subsidiaries, Oxygen Finance Limited, Oxygen Finance Americas,
Inc. and Porge Limited) ("Oxygen") remained broadly flat at GBP1.7m
(H1 2019: GBP1.7m).
-- Gross interest income and fee income at Satago Financial
Solutions Limited's ("Satago") core invoice financing division
increased 16% to GBP0.4m (2019: GBP0.3m)(1) .
-- Gross interest income and fee income at Vertus Capital
Limited ("Vertus") was GBP0.5m. Vertus was acquired on 29 July
2019.
-- Gross revenue at Playstack Ltd ("Playstack") was GBP1.2m.
Playstack was acquired on 11 September 2019.
-- TruFin Group's loss before tax from continuing operations was GBP5.5m (H1 2019: GBP3.7m).
(1) excluding interest and fees from Playstack and Vertus pre
acquisition
6 months to 6 months to 6 months to
30 June 31 December 30 June
2020 2019 2019
Financials and KPI's (Unaudited) GBP'000 GBP'000 GBP'000
Gross Revenue 4,191 4,201 3,138
Loss before tax from continuing
operations (5,459) (8,112) (3,722)
Loss before tax from continuing
operations includes: (315) (1,537) (972)
share--based payment charge
Net Assets (GBP 000's) 45,198 50,343* 61,147
*Audited figures
Post Period end Developments and Outlook
-- Playstack signed two significant contracts with global
technology platforms, underpinning potentially significant growth
in the second half of 2020.
-- The Board believes that these contracts, together with a
recent successful game launch, mean the Group is likely to deliver
full year revenue ahead of market expectations. This, in
combination with tight cost control, means we also expect the net
loss for the full year to be lower than market expectations.
-- The Company agreed with Distribution Finance Capital Ltd
("DFC") to reschedule a final loan repayment by DFC to TruFin, as
announced on 14 August 2020.
-- The Group's subsidiaries continue to build on their current
momentum; scaling their partnerships, enhancing their distribution
channels and expanding their client bases. The Board is pleased
with the progress that is being made.
James van den Bergh, Chief Executive Officer commented:
"I am pleased with the progress during 2020, which is
particularly impressive given the global health crisis which has
inevitably impacted the Group.
Given the ongoing uncertainty around the pandemic we remain
cautious. However, as a result of Playstack's contract wins and
recent console game launch and the Group's attractive market
positioning, strong partnerships and cost control initiatives, I am
pleased to be able to report that the Group is expected to exceed
revenue expectations for the full year, and as a result, our net
loss for the full year is expected to beat market expectations.
We maintain a constructive dialogue with our major shareholder,
Arrowgrass, and we continue to be focussed on maximising value for
all shareholders. We believe there is significant scope for value
creation in the near and medium term, and I look forward to
updating shareholders on our continued progress."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No.596/2014. By the publication of
this announcement via a Regulatory Information Service, this inside
information is now considered to be in the public domain. The
person responsible for arranging for the release of this
announcement on behalf of the Company is Annie Styler.
For further information, please contact:
TruFin plc
James van den Bergh, Chief Executive Officer 0203 743 1340
Kam Bansil, Investor Relations
Liberum Capital Limited (Nominated Adviser and 07779 229508
Corporate broker)
Chris Clarke
Edward Thomas
Louis Davies 0203 100 2000
About TruFin plc:
TruFin plc is the holding company for an operating group of
companies that are niche lenders, early payment providers and games
publisher. 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
Chief Executive's Statement
The subsidiaries within the TruFin Group have been resilient in
the first six months of 2020 and the board remains confident
regarding prospects for the remainder of 2020.
As at 31 August 2020, the following assets were not less
than:
-- GBP7.6m of cash or cash equivalents
-- GBP9.0m loan payable by Distribution Finance Capital Ltd.
This loan is due to be repaid, in tranches, by the end of September
2021 (GBP5.0 million of principal was repaid in June 2020)
-- GBP1.6m of assets within the Satago Group's loan book
-- GBP2.0m share of net assets in Vertus Capital Limited
The TruFin Group has no more than GBP4.7m in near-term
liabilities.
Board Changes
Stephen Greene joined the Board on 29 April 2020 as a
Non-Executive Director and representative of Arrowgrass. We are
delighted to welcome him to the Group.
Oxygen
Oxygen is a niche technology and professional services platform
enabling the public and private sector to make early payments to
their suppliers.
Oxygen's clients' total procurement spend increased to GBP21.6bn
as at 30 June 2020 (30 June 2019: GBP20.8bn), whilst transacted
spend eligible for discounts to be applied was GBP290m, a decrease
of 13% over the prior year, reflecting the lower economic activity
during lockdown. Despite this impact, a broadening product offering
and Covid-19 compensation, received when clients temporarily
suspended early payment programmes, offset lower transacted spend
eligible for discounts, resulting in Oxygen's revenues remaining
broadly flat at GBP1.7m (2019: GBP1.7m).
The Covid-19 pandemic has highlighted the requirement for
liquidity in supply chains and as a result appetite for solutions
continues to grow, evidenced by 7 new client wins and a further 19
renewals from existing customers in the first half of 2020. As at
the end of June 2020, Oxygen had 48 early payment clients (and 92
unique clients) and maintained its 100% renewal record for these
clients. The pipeline of new prospects remains strong.
The Covid-19 pandemic has accelerated client use of virtual
meetings, reducing travel costs. This, combined with the successful
integration of the Porge business and the cross-selling
opportunities created, will provide continuing synergistic
benefits.
Onboarding suppliers was hampered during the first half of the
year, and work continues in this area with positive leading
indicators. With the number of early payment clients expected to
reach 50 by the end of the year, Oxygen's dominance in this niche
market has continued to expand and the Group expects Oxygen to
become consistently EBITDA profitable on a monthly basis during
2021.
Satago
Satago offers its customers a technically advanced invoice
finance and cashflow management system via its online platform. Its
core lending has been impacted by the Covid-19 pandemic, both in
terms of decreased trading activities of its client base, and wider
market disruption caused by Government intervention measures.
Notwithstanding this, Satago's revenues from its invoice financing
offering grew 16% in the first half and their core proposition
remains an ideal solution for SMEs looking to operate in a post
Covid-19 economy.
Satago provided free access to the platform for many SMEs and
accountants during the height of the pandemic as part of its
Covid-19 response. Whilst this has impacted on software
subscription growth for the year, management still expect to meet
initial year-end subscriptions targets based on increasing demand
from both direct channels and strategic partnerships. Of note,
Satago is also introducing its Lending-as-a-Service ("LaaS")
solutions in Q4 2020, in direct response to its strategic partners
looking to implement new and innovative finance offerings post
Covid-19.
Satago has also continued to invest in its people, not least in
developing its partnership support functions and in completing the
build out of its technology capabilities in Poland. Management did
not furlough any employees and instead focused on quickly adapting
to working from home and strengthening Satago's capabilities for
growth. This should position Satago well for the remainder of the
year and its next stage of growth.
Satago has also continued to develop its core technology to
ensure it remains best in class and able to meet the needs of its
SME clients, accountants and strategic partners. In addition to its
LaaS solution, Satago has also introduced new accounting platform
connectors to extend its market research and enable future product
enhancements.
Despite lower lending volumes for the first half due to the
Covid-19 pandemic, Satago's lending activities were strong during
Q1 2020, and the business managed to secure its first external
funding facility with capacity of GBP5m. This facility will be used
in combination with Satago's own internal facilities to meet the
demand for invoice financing expected towards the end of the year
and into 2021. In response to the Covid-19 pandemic, Satago also
focused on its core single invoice finance proposition and less on
its new finance products, but management now intend to scale these
new products over the coming months, with an initial focus on its
whole book offering.
Vertus
Vertus provides succession finance for the IFA space through its
exclusive agreement with IntegraFin plc. This is a scalable niche
lending space and we remain excited by Vertus' opportunity set.
More IFAs are expected to retire (estimated to be over 25% of the
market in the next 5 years) and further consolidation is expected
in the advice market. Vertus is well positioned to support this
market transition and ensure IFAs can remain independent and offer
their clients quality and bespoke advice.
Since securing a debt facility of GBP15m with a UK high street
bank in September 2019, the loan book has performed exceptionally
well, with no credit losses incurred to date. The public health
crisis has encouraged many IFAs to assess options for their
businesses, leading to increased loan demand. As such, we
anticipate Vertus' loan book growth to remain strong over the
coming months, though asset yield will fall due to Bank of England
base rates cuts. This interest rate decrease is partially offset by
the floating rates in Vertus' funding structure.
Vertus are now targeting a loan book of GBP16m during Q1 2021
(from GBP9.9m as at 30 June 2020) and the Group expects Vertus to
turn profitable, on a monthly basis, during 2021.
Playstack
Playstack is a gaming technology business providing publishing
and financing services to the mobile game and console sector.
Playstack, as previously announced, is the Group's entry point into
the highly attractive growth market of mobile game lending and is a
niche player in the gaming ecosystem.
The business expects significant growth during 2020, driven by
two significant contracts secured with major technology platforms,
and a successful launch of their console game Mortal Shell. Through
the remainder of 2020 into 2021, the business will continue to
develop its own innovative technology that increases the revenue
generating potential of its game portfolio whilst extending the
reach of the its financing services through partnerships with
third-party lenders.
Covid-19 pandemic review
In relation to the Covid-19 pandemic, the safety of our
employees was and is of paramount importance. The Company ensured
it gave continuous support to employees around flexible working,
wellbeing issues and other concerns and all the subsidiaries are
now looking at how best to work on an ongoing basis.
Despite the positive outturn for the half year, it is important
to note the impact the Covid-19 pandemic has had on the Group,
specifically:
-- Lending volumes started strongly in Q1 2020, but later fell
below our expectations for the first half due to the Covid-19
pandemic. However, rigorous risk processes have kept defaults to a
negligible level in Satago and non-existent at Vertus. The
pipelines for Satago and Vertus are now building well which should
allow both to hit their original year-end loan book expectations in
Q1 2021.
-- Satago's subscription software sales experienced a period of
stagnation during lockdown. Pleasingly, volume growth has picked up
in the second half and management still expect to exceed 2,000
subscribers by year end.
-- Oxygen's predominantly public sector client base absorbed
much of the frontline challenges associated with the Covid-19
pandemic and, whilst spending associated with social care
increased, other planned spend such as construction, was reduced as
economic activity was suspended or naturally churned.
Clients gave priority to supporting their local communities by
accelerating payments to their own supply chains in line with
government guidance. Some of Oxygen's clients temporarily suspended
discounts for a period, with Oxygen compensated for this change.
Transacted spend eligible for discounts has now recovered to
pre-Covid-19 pandemic levels.
Despite these adverse impacts, Oxygen expanded their client base
and management still expect to hit 50 early payment clients by year
end. This, combined with the strong client renewal record, mean
that management will deliver an increase in recurring revenues
which, combined with a stable cost base, should enable Oxygen to
become EBITDA profitable on a monthly basis during 2021.
-- Playstack's strategy of partnering with third party debt
providers resulted in new lending volumes in the first half of 2020
with a meaningful pipeline developing for the second half of 2020.
This lending was unaffected by the pandemic, with zero
defaults.
Playstack's gaming division saw volumes increase during the
Covid-19 pandemic. The launch of their latest console game, Mortal
Shell, in August was well received by critics and players alike.
The game has secured contracts with two global technology platforms
(referred to earlier) which is expected to underpin significant
revenue growth during the second half of the year.
The pandemic has impacted growth of Playstack's brand division
as clients retrenched their marketing spend during the first half,
but there are positive signs from clients, and Playstack continues
to invest in this truly unique opportunity
The Board recognises that future growth will, in part, be
dependent on the availability of future funding whilst
acknowledging that our major shareholder, Arrowgrass, publicly
declared on 13 September 2019 that it is looking to divest its
investment in the Company. We maintain a constructive dialogue with
Arrowgrass and we continue to be focussed on maximising value for
all shareholders. The Board notes that the future strategy of the
Company may include proposals to dispose of and/or reduce the
operations of certain subsidiaries in order to accelerate further
returns of value to shareholders.
The Board looks to the future with confidence and will keep
shareholders updated on the Company's progress.
INDEPENT REVIEW REPORT TO TRUFIN PLC
We have been engaged by TruFin Plc (the "Company") to review the
condensed set of financial statements in the half--yearly financial
report for the six months ended 30 June 2020 of the Company which
comprises the unaudited condensed interim consolidated statement of
comprehensive income, the unaudited condensed interim consolidated
statement of financial position, the unaudited condensed interim
consolidated statement of changes in equity, the unaudited
condensed interim consolidated statement of cash flows, and related
explanatory notes. We have read the other information contained in
the half--yearly financial report and considered whether it
contains any apparent misstatements or material inconsistencies
with the information in the condensed set of financial
statements.
This report is made solely to the Company in accordance with
International Standard on Review Engagements (UK and Ireland) 2410
"Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Financial
Reporting Council. Our work has been undertaken so that we might
state to the Company those matters we are required to state to it
in an independent review report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company, for our review
work, for this report, or for the conclusions we have formed.
Directors' responsibilities
The half--yearly financial report is the responsibility of, and
has been approved by, the Directors. The Directors are responsible
for preparing the half--yearly financial report in accordance with
the AIM Rules of the London Stock Exchange.
As disclosed in note 1, the annual financial statements of the
TruFin Group are prepared in accordance with IFRSs as adopted by
the European Union. The condensed set of financial statements
included in this half--yearly financial report has been prepared in
accordance with International Accounting Standard 34 "Interim
Financial Reporting," as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half--yearly
financial report based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Financial Reporting Council for use in
the United Kingdom. A review of interim financial information
consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half--yearly financial report for the six months ended 30
June 2020 is not prepared, in all material respects, in accordance
with International Accounting Standard 34 as adopted by the
European Union and the AIM Rules of the London Stock Exchange
Crowe U.K. LLP
Statutory Auditor
London, United Kingdom
24 September 2020
UNAUDITED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE
INCOME
6 months ended 6 months ended Year ended
30 June 2019 31 December
2019
Notes 30 June 2020 (Unaudited) (Audited)
(Unaudited) GBP'000 GBP'000
GBP'000
======================================== ====== ================== ================== ================
Interest income 3 1,201 1,415 3,347
Fee income 3 1,743 1,723 3,445
Publishing income 3 1,247 - 547
Interest, fee and publishing expenses (1,332) (219) (1,115)
------------------ ------------------ ----------------
Net revenue 2,859 2,919 6,224
================== ================== ================
Staff costs 5 (6,222) (4,868) (12,722)
Other operating expenses (1,729) (1,479) (4,406)
Depreciation & amortisation (379) (256) (963)
Net impairment gain/(loss) on financial
assets 12 (38) 18
------------------ ------------------ ----------------
Operating loss before share of profit
from joint venture (5,459) (3,722) (11,849)
------------------ ------------------ ----------------
Share of profit from associates
accounted for using the equity method - - 15
------------------ ------------------ ----------------
Loss before tax (5,459) (3,722) (11,834)
================== ================== ================
Taxation 10 (1) (1,789) (3,090)
------------------ ------------------ ----------------
Loss from continuing operations (5,460) (5,511) (14,924)
================== ================== ================
Loss from discontinued operations - (4,005) (3,463)
------------------ ------------------ ----------------
Loss for the period/year (5,460) (9,516) (18,387)
================== ================== ================
Other comprehensive income
Items that may be reclassified subsequently
to profit and loss
Exchange differences on translating
foreign operations (166) (14) 81
Other comprehensive income for the
period/year, net of tax (166) (14) 81
================== ================== ================
Total comprehensive loss for the
period/year (5,626) (9,530) (18,306)
================== ================== ================
Loss from continuing operations
attributable to:
Owners of TruFin plc (5,242) (5,511) (14,783)
Non-controlling interests (218) - (141)
------------------ ------------------ ----------------
(5,460) (5,511) (14,924)
================== ================== ================
Loss from discontinued operations
attributable to:
Owners of TruFin plc - (3,831) (3,287)
Non-controlling interests - (174) (176)
------------------ ------------------ ----------------
- (4,005) (3,463)
================== ================== ================
6 months ended 6 months ended Year ended
30 June 2019 31 December
2019
Notes 30 June 2020 (Unaudited) (Audited)
(Unaudited) GBP'000 GBP'000
GBP'000
================================= ======= ================== ================== ================
Total comprehensive loss for the
period/year attributable to the
owners of TruFin plc from:
Continuing operations (5,408) (5,525) (14,702)
Discontinued operations - (3,831) (3,287)
------------------ ------------------ ----------------
(5,408) (9,356) (17,989)
================== ================== ================
Earnings per share 6 months ended 6 months ended Year ended
30 June 2019 31 December
2020
Notes 30 June 2020 (Unaudited) (Audited)
(Unaudited) Pence pence
pence
====================== ====== ================== ================== ================
Basic and Diluted EPS 16 (6.5) (9.7) (19.2)
Adjusted EPS 16 (6.1) (4.7) (13.1)
UNAUDITED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
As at As at 31
Notes 30 June 2020 December 2019
GBP'000 GBP'000
(Unaudited) (Audited)
===================================== ====== =================== ==============
Assets
Non-current assets
Intangible assets 11 20,873 20,571
Property, plant and equipment 12 177 237
Deferred tax asset 10 2,503 2,503
------------------- --------------
Total non-current assets 23,553 23,311
=================== ==============
Current assets
Cash and cash equivalents 10,332 6,971
Loans and advances 13 20,997 27,705
Trade receivables 992 1,075
Other receivables 2,570 2,932
------------------- --------------
Total current assets 34,891 38,683
=================== ==============
Total assets 58,444 61,994
=================== ==============
Equity and liabilities
Equity
Issued share capital 14 73,548 73,548
Retained earnings (5,279) (63)
Foreign exchange reserve (206) (40)
Other reserves (24,395) (24,395)
------------------- --------------
Equity attributable to owners of the
company 43,668 49,050
------------------- --------------
Non-controlling interest 1,530 1,293
------------------- --------------
Total equity 45,198 50,343
=================== ==============
Liabilities
Current liabilities
Borrowings 15 8,221 6,194
Trade and other payables 4,325 4,757
Provision for commitments and other
liabilities 7 700 700
------------------- --------------
Total current liabilities 13,246 11,651
------------------- ==============
Total liabilities 13,246 11,651
=================== ==============
Total equity and liabilities 58,444 61,994
=================== ==============
The financial statements were approved by the Board of Directors
on 24 September 2020 and were signed on its behalf by:
James van den Bergh
Chief Executive Officer
UNAUDITED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
Foreign Non-
Share Retained exchange Other controlling Total
capital earnings reserve reserves Total interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- -------- --------- --------- --------- -------- ------------ --------
Balance at 1 January
2020 73,548 (63) (40) (24,395) 49,050 1,293 50,343
Loss for the period - (5,242) - - (5,242) (218) (5,460)
Other comprehensive
income for the period - - (166) - (166) - (166)
Total comprehensive
loss for the period - (5,242) (166) - (5,408) (218) (5,626)
-------- --------- --------- --------- -------- ------------ --------
Share-based payment - 315 - - 315 - 315
Issuance of subsidiary
shares to employees - (289) - - (289) 455 166
Balance at 30 June
2020 (Unaudited) 73,548 (5,279) (206) (24,395) 43,668 1,530 45,198
======== ========= ========= ========= ======== ============ ========
Balance at 1 January 2019 185,000 15,375 (121) (50,261) 149,993 3,255 153,248
IFRS 16 adjustment - (18) - - (18) 1 (17)
Revised Balance at 1 January
2019 185,000 15,357 (121) (50,261) 149,975 3,256 153,231
Loss for the period - (5,511) - - (5,511) - (5,511)
Other comprehensive income
for the period - - (14) - (14) - (14)
Loss from discontinued
operations - (3,831) - - (3,831) (174) (4,005)
-------- -------- ----- -------- -------- ------- --------
Total comprehensive loss
for the period - (9,342) (14) - (9,356) (174) (9,530)
-------- ----- -------- -------- ------- --------
Demerger of subsidiary (96,395) (13,914) - 34,866 (75,443) (3,082) (78,525)
Share buyback (4,946) - - (54) (5,000) - (5,000)
Share-based payment - 971 - - 971 - 971
Balance at 30 June 2019
(Unaudited) 83,659 (6,928) (135) (15,449) 61,147 - 61,147
======== ======== ===== ======== ======== ======= ========
UNAUDITED CONDENSED INTERIM STATEMENT OF CASH FLOWS
6 months 6 months Year ended
ended ended 30 31 December
June 2019 2019
30 June 2020 (Unaudited) (Audited)
(Unaudited) GBP'000 GBP'000
GBP'000
=========================================== ============================ ============ =======================
Cash flows from operating activities
Loss before income tax from
Continuing operations (5,459) (3,722) (11,849)
Discontinued operations - (4,005) (3,463)
Adjustments for
Depreciation of property, plant and
equipment 74 143 307
Amortisation of intangible fixed assets 577 266 1,032
Share-based payments 315 971 2,509
Increase in provision - 1,106 506
Impairment of intangible assets - - 186
Fair value increase of demerged subsidiary - (2,618) (2,618)
Underlying trading loss on discontinued
operations - 2,963 2,963
---------------------------- ------------ -----------------------
(4,493) (4,896) (10,427)
Working capital adjustments
Movements in loans and advances 6,708 (5,557) 770
Decrease /(increase) in trade and other
receivables 421 (998) (2,637)
(Decrease)/increase in trade and other
payables (413) 4,042 1,165
Net payables on acquisition of subsidiary - - 1,162
IFRS 16 adjustment - - (462)
6,716 (2,513) (2)
Tax paid - - (36)
---------------------------- ------------ -----------------------
Net cash generated from/(used in) operating
activities from continuing operations 2,223 (7,409) (10,465)
============================ ============ =======================
Cash flows from investing activities:
Additions to intangible assets (874) (937) (1,695)
Additions to property, plant and equipment (13) (9) (38)
Acquisition of subsidiary - (750) (1,105)
Movement in loans in year to subsidiaries
pre acquisition - - (7,201)
Cash on acquisition of subsidiary - - 516
Disposal of equity investment - 44,500 44,500
Net cash (used in)/generated from investing
activities from continuing operations (887) 42,804 34,977
Cash flows from financing activities:
Issue of ordinary share capital of
subsidiary 166 - 30
New borrowings 2,027 - 5,011
Share buyback - (5,000) (10,000)
Net cash generated from/(used in) financing
activities from continuing operations 2,193 (5,000) (4,959)
---------------------------- ------------ -----------------------
Net increase in cash and cash equivalents
from continuing operations 3,529 30,395 19,553
---------------------------- ------------ -----------------------
Net cash used in discontinued operations - (37,556) (37,556)
Cash and cash equivalents at beginning
of the period/year 6,971 24,888 24,888
Effect of foreign exchange rate changes (168) (27) 86
---------------------------- ------------ -----------------------
Cash and cash equivalents at end of
the period/year 10,332 17,700 6,971
============================ ============ =======================
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL
STATEMENTS
1. Accounting policies
Basis of preparation
The annual financial statements of TruFin plc are prepared in
accordance with International Financial Reporting Standards
('IFRS') as adopted by the European Union.
The condensed set of financial statements included in this
Interim Financial Report has been prepared in accordance with
International Accounting Standard 34 'Interim Financial Reporting'
('IAS 34'). This condensed set of Financial Statements has been
prepared by applying the accounting policies and presentation that
were applied in the preparation of the TruFin Group's published
Financial Statements for the year ended 31 December 2019.
The condensed set of financial statements included in this
Interim Financial Report for the six months ended 30 June 2020
should be read in conjunction with the annual audited financial
statements of TruFin plc for the year ended 31 December 2019.
Going concern
The Directors are satisfied that the TruFin Group has sufficient
resources to continue in operation for the foreseeable future, a
period of not less than 12 months from the date of the report.
Accordingly, they continue to adopt the going concern basis in
preparing the condensed financial statements.
Group information
The TruFin Group ("the Group") is the consolidation of;
-- TruFin plc,
-- TruFin Holdings Limited,
-- Oxygen Finance Group Limited, Oxygen Finance Limited, Oxygen
Finance Americas Inc. and Porge Ltd, together the ("Oxygen
Group"),
-- TruFin Software Limited,
-- Satago Financial Solutions Limited, Satago SPV 1 Limited,
Satago SPV 2 Limited, Satago Financial Solutions z.o.o, together
("Satago"),
-- AltLending (UK) Ltd,
-- Vertus Capital Limited and Vertus SPV 1 Limited, together ("Vertus"), and
-- Playstack Limited, Bandana Media Ltd, Playignite Ltd,
Playstack z.o.o, Playstack OY, Foxglove Studios AB, Playtest Ltd
(dissolved 24 March 2020), Playstack Inc and Playignite Inc,
together the ("Playstack Group").
Additionally, the Playstack Group also includes four associate
companies incorporated in the UK which have been accounted for
using the equity method. These are;
-- A 49% interest in PlayFinder Games Ltd,
-- A 49% interest in Snackbox Games Ltd,
-- A 42% interest in Military Games International Ltd, and
-- A 26% interest in Stormchaser Games Ltd.
The principal activities of the Group are the provision of niche
lending, early payment services and mobile game publishing.
The financial statements are presented in Pounds Sterling, which
is the currency of the primary economic environment in which the
Group operates. Amounts are rounded to the nearest thousand.
Significant accounting policies and use of estimates and
judgements
The preparation of interim consolidated financial statements in
compliance with IAS 34 requires the use of certain critical
accounting judgements and key sources of estimation uncertainty. It
also requires the exercise of judgement in applying the TruFin
Group's accounting policies. There have been no material revisions
to the nature and the assumptions used in estimating amounts
reported in the annual audited financial statements of TruFin plc
for the year ended 31 December 2019.
The accounting policies, presentation and methods of computation
in the audited financial statements have been followed in the
condensed set of financial statements.
2. General information
TruFin plc is a public limited company incorporated in Jersey.
The shares of the Company are listed on the Alternative Investment
Market. The address of the registered office is 26 New Street, St
Helier, Jersey, JE2 3RA.
A copy of this Interim Financial Report including Condensed
Financial Statements for the period ended 30 June 2020 is available
at the Company's registered office and on the Company's investor
relations website ( www.trufin.com ).
3. Gross revenue
6 months ended 6 months ended Year ended
30 June 2019 31 December
2019
30 June 2020 (Unaudited) (Audited)
(Unaudited) GBP'000 GBP'000
GBP'000
======================== ============================= ============== ============
Interest income 1,201 1,415 3,347
----------------------------- -------------- ------------
Total interest income 1,201 1,415 3,347
----------------------------- -------------- ------------
EPPS* contracts 1,224 1,246 2,502
Consultancy fees 26 23 45
Subscription fees 493 454 898
----------------------------- -------------- ------------
Total fee income 1,743 1,723 3,445
----------------------------- -------------- ------------
IAP revenue 224 - 223
Advertising revenue 223 - 181
Console revenue 733 - 98
Brand revenue 67 - 45
----------------------------- -------------- ------------
Total publishing income 1,247 - 547
----------------------------- -------------- ------------
Gross revenue 4,191 3,138 7,339
============================= ============== ============
*Early Payment Programme Services
4. Segmental reporting
The results of the Group are broken down into segments based on
the products and services from which it derives its revenue:
Short term finance:
Provision of invoice discounting and succession financing for
the IFA space. For results during the reporting period, this
corresponds to the results of Satago, Vertus and AltLending.
Payment services:
Provision of Early Payment Programme Services. For results
during the reporting period, this corresponds to the results of the
Oxygen Group.
Publishing:
Publishing of video games. For results during the reporting
period, this corresponds to the results of the Playstack Group.
Other:
Revenue and costs arising from investment activities. For
results during the reporting period, this corresponds to the
results of TruFin Software Limited, TruFin Holdings Limited and
TruFin plc.
The results of each segment, prepared using accounting policies
consistent with those of the Group as a whole, are as follows:
Short term Payment services
6 months ended 30 June 2020 finance GBP'000 Publishing Other Total
GBP'000 GBP'000 GBP'000 GBP'000
============================= ========== ================ ============ ===================== ============
Gross revenue 907 1,711 1,247 326 4,191
Cost of sales (340) (271) (721) - (1,332)
---------- ---------------- ------------ --------------------- ------------
Net revenue 567 1,440 526 326 2,859
---------- ---------------- ------------ --------------------- ------------
Adjusted operating loss* (1,983) (322) (1,732) (1,107) (5,144)
Share of profits from - - - -
associates
Loss before tax (1,983) (322) (1,732) (1,422) (5,459)
Taxation (1) - - - (1)
Loss for the period (1,984) (322) (1,732) (1,422) (5,460)
========== ================ ============ ===================== ============
Total assets 20,328 9,846 15,665 12,605 58,444
Total liabilities (8,767) (1,714) (1,233) (1,532) (13,246)
---------- ---------------- ------------ --------------------- ------------
Net assets 11,561 8,132 14,432 11,073 45,198
---------- ---------------- ------------ --------------------- ------------
*adjusted operating loss excludes share-based payment
expense
Short term Payment
6 months ended 30 June 2019 finance services Other Total
GBP'000 GBP'000 GBP'000 GBP'000
====================================== -------------- -------------- ----------------- -------------------
Gross revenue 1,268 1,723 147 3,138
Cost of sales (66) (153) - (219)
-------------- -------------- ----------------- -------------------
Net revenue 1,202 1,570 147 2,919
-------------- -------------- ----------------- -------------------
Adjusted operating loss* (118) (862) (1,770) (2,750)
Loss before tax (118) (862) (2,742) (3,722)
Taxation - (1,789) - (1,789)
Loss for the period from continuing
operations (118) (2,651) (2,742) (5,511)
Loss for the period from discontinued
operations (2,963) - (1,042) (4,005)
-------------- -------------- ----------------- -------------------
Loss for the period (3,081) (2,651) (3,784) (9,516)
============== ============== ================= ===================
Total assets 24,138 11,383 34,936 70,457
Total liabilities (692) (2,117) (6,501) (9,310)
-------------- -------------- ----------------- -------------------
Net assets 23,446 9,266 28,435 61,147
-------------- -------------- ----------------- -------------------
*adjusted operating loss excludes share-based payment
expense
Short term Payment services
Year ended 31 December 2019 finance GBP'000 Publishing Other Total
GBP'000 GBP'000 GBP'000 GBP'000
============================= ========== ================ ============ ===================== ============
Gross revenue 2,752 3,436 547 604 7,339
Cost of sales (269) (562) (284) - (1,115)
---------- ---------------- ------------ --------------------- ------------
Net revenue 2,483 2,874 263 604 6,224
---------- ---------------- ------------ --------------------- ------------
Adjusted operating loss* (880) (2,015) (2,003) (4,442) (9,340)
Share of profits from
associates 15 - - - 15
Loss before tax (865) (2,015) (2,003) (6,951) (11,834)
Taxation - (3,090) - - (3,090)
Loss for the year from
continuing
operations (865) (5,105) (2,003) (6,951) (14,924)
Loss for the year from
discontinued
operations (2,963) - - (500) (3,463)
---------- ---------------- ------------ --------------------- ------------
Loss for the year (3,828) (5,105) (2,003) (7,451) (18,387)
========== ================ ============ ===================== ============
Total assets 21,385 9,440 15,804 15,365 61,994
Total liabilities (7,010) (1,814) (673) (2,154) (11,651)
---------- ---------------- ------------ --------------------- ------------
Net assets 14,375 7,626 15,131 13,211 50,343
---------- ---------------- ------------ --------------------- ------------
*adjusted operating loss excludes share-based payment
expense
5. Staff costs
Analysis of staff costs:
6 months ended 6 months ended Year ended
30 June 2019 31 December
2019
30 June 2020 (Unaudited) (Audited)
(Unaudited) GBP'000 GBP'000
GBP'000
============================================== ============================= ============== ============
Wages and salaries 4,885 2,890 8,203
Consulting costs 166 263 506
Social security costs 637 651 1,275
Pension costs arising on defined contribution
schemes 219 92 229
Share-based payment 315 972 2,509
----------------------------- -------------- ------------
6,222 4,868 12,722
============================= ============== ============
Consulting costs are recognised within staff costs where the
work performed would otherwise have been performed by employees.
Consulting costs arising from the performance of other services are
included within other operating expenses.
Average monthly number of persons (including Executive
Directors) employed:
6 months ended 6 months ended Year ended
30 June 2019 31 December
2019
30 June 2020 (Unaudited) (Audited)
(Unaudited) # #
#
================== ================== ============== ============
Management 19 12 15
Finance 8 8 6
Sales & marketing 30 19 20
Operations 39 36 42
Technology 64 14 36
------------------ -------------- ------------
160 89 119
================== ============== ============
Directors' emoluments
6 months ended 6 months ended Year ended
30 June 2019 31 December
2019
30 June 2020 (Unaudited) (Audited)
(Unaudited) GBP'000 GBP'000
GBP'000
====================== ================== ============== ============
Combined remuneration 425 830 3,041
6. Employee share-based payment transactions
The employment share-based payment charge comprises:
6 months ended 6 months ended Year ended
30 June 2019 31 December
2019
30 June 2020 (Unaudited) (Audited)
(Unaudited) GBP'000 GBP'000
GBP'000
======================================= ================== ============== ============
Performance Share Plan and Joint Share
Ownership Plan Founder Award 233 913 2,430
Performance Share Plan Market Value
Award 40 (63) 79
Performance Share Plan 2020 Award 42 - -
Performance Share Plan 2019 Award - 122 -
Performance Share Plan 2018 Award - - -
Total 315 972 2,509
================== ============== ============
Performance Share Plan and Joint Share Ownership Plan Founder
Award ("PSP and JSOP")
On 21 February 2018, 3,407,895 shares were granted to selected
founder members of senior management of which the share price at
date of grant was GBP1.90 per share. The awards are structured as a
Performance Share Plan and a Joint Share Ownership Plan. The
Performance Share Plan is structured as a nil cost option with no
performance conditions attached. The awards were also granted
subject to continued employment until February 2021. The Joint
Share Ownership Plan allows the employee to participate in the
growth in value over and above the grant price of GBP1.90. The
shares vest 25% on each anniversary of the grant date.
The first 25% of shares (851,973 shares) vested on 21 February
2019 when the share price was GBP1.98. As a result 817,550 shares
subject to the Joint Share Ownership Plan became fully owned by the
trustee of the Company's employee benefit trust (the "EBT") and
34,423 became fully owned by senior management.
At the time of Distribution Finance Capital Ltd's ("DFC's")
demerger from the Group, there was a modification to the Founder
Award. The GBP1.90 price above which the employee was able to
participate in value growth under the Joint Share Ownership Plan
was adjusted proportionally by reference to the respective share
prices of DFC and TruFin to GBP0.85. This modification has not
resulted in a change in the valuation of the award and this
continues to be recognised over the remainder of the original
vesting period.
As part of the demerger, holders of Founder Awards also received
an award in respect of DFC shares which gave rise to an employer's
National Insurance liability of GBP419,000, which was paid in July
2019.
On 11 September 2019, in connection with his change of role, the
unvested Founder Awards in respect of 1,369,244 shares held by
Henry Kenner fully vested, the result of which was that all of the
relevant shares ceased to be subject to the Joint Share Ownership
Plan and instead become fully owned by the EBT. In addition,
1,369,244 shares subject to the Performance Share Plan ceased to be
subject to continued employment condition.
Performance Share Plan Market Value Award ("PSP Market
Value")
On 21 February 2018, options to acquire 4,868,420 shares were
granted to the senior management team. The vesting of this award is
based on market--based performance conditions. The vesting of these
awards is subject to the holder remaining an employee of the
Company and the Company's share price achieving five distinct
milestones - vesting at 20% each milestone. The exercise price of
the awards at the time of grant was GBP1.90 per share. A Monte
Carlo simulation was used to determine the fair value of these
options. The model used an expected volatility of 10% and a risk
free rate of 1.3%.
In order to reflect the impact of the demerger, the PSP Market
Value Award was split into two:
-- Part of the award remained as an option in respect of TruFin
plc shares ("TruFin Market Value Award")
-- Part of the award became an award in respect of DFC shares
("DFC market Value Award")
The TruFin Market Value Award is on the same terms as the
original PSP Market Value Award except that:
-- The exercise price was adjusted to GBP0.85, and the share
price milestones were adjusted to reflect the demerger
-- The exercise price was further adjusted to GBP0.80, and the
share price milestones were further adjusted, to reflect the return
of value to shareholders in June 2019
-- The exercise price was further adjusted to GBP0.71, and the
share price milestones were further adjusted to reflect the return
of value to shareholders in December 2019
The modification has not resulted in a change in the valuation
of the award and this continues to be recognised over the remainder
of the original vesting period.
The grant of the DFC Market Value Award gave rise to an
employer's National Insurance liability for the Company of
GBP265,000 which was paid in July 2019.
Performance Share Plan 2018 Award ("PSP 2018")
On 21 February 2018, options to acquire 1,000,001 shares were
granted to the senior management team. The PSP 2018 Award is
structured as a nil cost option. The vesting of this award is
subject to the holder being in continued employment until February
2021 and the subsidiary companies achieving certain financial
metrics over a three--year period.
In order to reflect the impact of the demerger, and as the
performance condition relating to the business of DFC was deemed to
be achieved in full due to the demerger, the PSP 2018 Award was
adjusted as follows:
-- the award part vested and was satisfied by way of a cash
payment calculated by reference to 50% of the shares subject to the
award and a price of GBP1.90 per share. The cash payments were made
in September 2019; and
-- the awards have otherwise continued in respect of 100% of the
TruFin plc shares, but the performance condition now relates solely
to the business of the Oxygen Group.
During the year, PSP 2018 Awards in respect of 736,843 shares
lapsed following members of senior management leaving the Group and
changing roles.
The fair value of the unvested part of the award as at 30 June
2020 was deemed to be nil as it is highly improbable that the
vesting conditions will be met.
Performance Share Plan 2019 Award ("PSP 2019")
On 11 September 2019 an option to acquire 320,000 shares was
granted to James van den Bergh. The PSP 2019 Award is structured as
a nil cost option. The vesting of this award is subject to the
holder being in continued employment until September 2022 and
subsidiary companies achieving certain financial metrics over a
three--year period. The fair value of the award as at 30 June 2020
was deemed to be nil as it is highly improbable that the vesting
conditions will be met.
Performance Share Plan 2020 Award ("PSP 2020")
The PSP 2020 Award is structured as a nil cost option. The
vesting of this award is subject to the holder being in continued
employment until September 2023 and subsidiary companies achieving
certain financial metrics over a three--year period.
7. Provision for commitments and other liabilities
A provision of GBP700,000 which includes Employer's National
Insurance has been provided for as a contingent liability to be
paid to management as part of the management incentive plan agreed
at the time of the IPO. The payment is conditional on DFC being
granted a bank licence, which is at the discretion of the
Prudential Regulation Authority.
GBP'000
======================================= =======
At 1 January 2020 (audited) 700
Additional provision during the period -
-------
At 30 June 2020 (unaudited) 700
=======
GBP'000
========================================= =======
At 1 January 2019 (audited) 1,053
Demerger of subsidiary (109)
Deferred consideration paid (750)
Net additional provision during the year 506
-------
At 31 December 2019 (audited) 700
=======
8. Issuance of subsidiary shares to employees
On 9 March 2020, Satago Financial Solutions Limited ("SFSL")
implemented its Management Incentive Plan ("Satago MIP"). Under the
Satago MIP key Satago managers were given the opportunity to
acquire new created ordinary shares in the capital of SFSL. 20%
(750,000 ordinary shares) of the fully diluted share capital has
been made available under the Satago MIP, and, to date, 590,625
ordinary shares have been issued to Satago managers.
9. Loss before income tax
Loss before income tax is stated after charging:
6 months ended 6 months ended Year ended
30 June 2019 31 December
2019
30 June 2020 (Unaudited) (Audited)
(Unaudited) GBP'000 GBP'000
GBP'000
==================================== ============================= ============== ============
Depreciation of property, plant and
equipment 74 143 307
Amortisation of intangible assets 577 266 1,038
Staff costs including share-based
payments charge 6,222 4,868 12,722
Audit fees payable to the Group's
auditor 61 54 122
Non-audit fees payable to Group's
auditor 12 12 12
10. Taxation
Analysis of tax charge recognised in the period/year
6 months ended 6 months ended Year ended
30 June 2019 31 December
2019
30 June 2020 (Unaudited) (Audited)
(Unaudited) GBP'000 GBP'000
GBP'000
==================== ============================= ============== ============
Current tax charge 1 - 14
Deferred tax charge - 1,789 3,076
----------------------------- -------------- ------------
Total tax charge 1 1,789 3,090
============================= ============== ============
Deferred tax asset
6 months ended 6 months ended Year ended
30 June 2019 31 December
2019
30 June 2020 (Unaudited) (Audited)
(Unaudited) GBP'000 GBP'000
GBP'000
======================================== ============================= ============== ============
Balance at start of the period/year 2,503 5,579 5,579
Debit to the statement of comprehensive
income - (1,789) (3,076)
----------------------------- -------------- ------------
Balance at end of the period/year 2,503 3,790 2,503
============================= ============== ============
Comprised of:
Losses 2,503 3,790 2,503
----------------------------- -------------- ------------
Total deferred tax asset 2,503 3,790 2,503
============================= ============== ============
A deferred tax asset has been recognised in respect of Oxygen
Finance Limited ("OFL"). It is considered probable that future
taxable profits will be available to be realised against OFL's
historical losses. This determination is based on OFL's forecasts.
A high proportion of the revenue forecast is expected to be
generated from clients which have either already onboarded or which
have already signed contracts with OFL. OFL's fixed cost base is
already scaled for continued business growth, whilst variable costs
are not expected to be material.
11. Intangible assets
Client contracts Software licences
and similar
assets Goodwill Total
GBP'000 GBP'000 GBP'000 GBP'000
============================ ====================== ====================== ========== =======
Cost
At 1 January 2020 3,574 1,109 17,438 22,121
Additions 652 227 - 879
At 30 June 2020 (Unaudited) 4,226 1,336 17,438 23,000
====================== ====================== ========== =======
Amortisation
At 1 January 2020 (479) (471) (414) (1,364)
Charge (271) (142) (164) (577)
At 30 June 2020 (Unaudited) (750) (613) (578) (1,941)
====================== ====================== ========== =======
Accumulated impairment
losses
At 1 January 2020 (186) - - (186)
Charge - - - -
---------------------- ---------------------- ---------- -------
At 30 June 2020 (Unaudited) (186) - - (186)
====================== ====================== ========== =======
Net book value
---------------------- ---------------------- ---------- -------
At 30 June 2020 (Unaudited) 3,290 723 16,860 20,873
====================== ====================== ========== =======
At 31 December 2019 2,909 638 17,024 20,571
====================== ====================== ========== =======
Client contracts Software licences
and similar
assets Goodwill Total
GBP'000 GBP'000 GBP'000 GBP'000
======================= ====================== ====================== ========== =======
Cost
At 1 January 2019 2,165 1,495 2,759 6,419
Additions 1,409 283 - 1,692
Arising on acquisition
of subsidiary - - 14,679 14,679
Demerger of subsidiary - (669) - (669)
---------------------- ---------------------- ---------- -------
At 31 December 2019 3,574 1,109 17,438 22,121
====================== ====================== ========== =======
Amortisation
At 1 January 2019 (103) (278) - (381)
Charge (376) (242) (414) (1,032)
Demerger of subsidiary - 49 - 49
At 31 December 2019 (479) (471) (414) (1,364)
====================== ====================== ========== =======
Accumulated impairment
losses
At 1 January 2019 - - - -
Charge (186) - - (186)
---------------------- ---------------------- ---------- -------
At 31 December 2019 (186) - - (186)
====================== ====================== ========== =======
Net book value
---------------------- ---------------------- ---------- -------
At 31 December 2019 2,909 638 17,024 20,571
====================== ====================== ========== =======
At 31 December 2018 2,062 1,217 2,759 6,038
====================== ====================== ========== =======
Client contracts comprise the directly attributable costs
incurred at the beginning of an Early Payment Scheme Service
contract to revise a client's existing payment systems and provide
access to the Group's software and other intellectual property.
These implementation (or "set up") costs are comprised primarily of
employee costs.
The useful economic life for each individual asset is deemed to
be the term of the underlying Client contract (generally 5 years)
which has been deemed appropriate and for impairment review
purposes, projected cash flows have been discounted over this
period.
The amortisation charge is recognised in fee expenses within the
statement of comprehensive income, as these costs are incurred
directly through activities which generate fee income.
Software, licenses and similar assets comprises separately
acquired software, as well as costs directly attributable to
internally developed platforms across the Group. These directly
attributable costs are associated with the production of
identifiable and unique software products controlled by the Group
and are probable of producing future economic benefits. They
primarily include employee costs and directly attributable
overheads.
A useful economic life of 3 to 5 years has been deemed
appropriate and for impairment review purposes projected cash flows
have been discounted over this period.
The amortisation charge is recognised in depreciation and
amortisation on non-financial assets within the statement of
comprehensive income.
Goodwill arises from the acquisitions of Porge Ltd, Vertus and
the Playstack Group made by the Group. Separately identifiable
intangible assets have been recognised for the acquisitions of
Vertus and Playstack and are being amortised over 5 years from the
date of acquisition.
The remainder of the goodwill balance has been reviewed and
based on performance to date and future expectations its carrying
value is considered appropriate and is not impaired.
12. Property, plant and equipment
Leasehold Fixtures Computer Right of Use
improvements & fittings equipment Asset Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
==================== ============= =========== =========== ============ =======
Cost
At 1 January 2020 44 247 36 429 756
Additions - 3 11 - 14
At 30 June 2020
(Unaudited) 44 250 47 429 770
------------- ----------- ----------- ------------ -------
Depreciation
At 1 January 2020 (36) (219) (9) (255) (519)
Charge (7) (10) (8) (49) (74)
At 30 June 2020 (43) (229) (17) (304) (593)
(Unaudited)
------------- ----------- ----------- ------------ -------
Net book value
------------- ----------- ----------- ------------ -------
At 30 June 2020 1 21 30 125 177
(Unaudited)
============= =========== =========== ============ =======
At 31 December
2019 8 28 27 174 237
============= =========== =========== ============ =======
Leasehold Fixtures Computer Right of Use
improvements & fittings equipment Asset Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
======================= ============= =========== =========== ============ =======
Cost
At 1 January 2019 67 337 177 - 581
Additions - 14 24 - 38
On adoption of
IFRS 16 - - - 429 429
Acquisition of
subsidiary - - 5 - 5
Demerger of subsidiary (23) (104) (170) - (297)
------------- ----------- ----------- ------------ -------
At 31 December
2019 44 247 36 429 756
------------- ----------- ----------- ------------ -------
Depreciation
At 1 January 2019 (24) (205) (49) - (278)
Charge (15) (32) (5) (255) (307)
Acquisition of
subsidiary - - (3) - (3)
Demerger of subsidiary 3 18 48 - 69
------------
At 31 December
2019 (36) (219) (9) (255) (519)
------------- ----------- ----------- ------------ -------
Net book value
------------- ----------- ----------- ------------ -------
At 31 December
2019 8 28 27 174 237
============= =========== =========== ============ =======
At 31 December
2018 43 132 128 - 303
============= =========== =========== ============ =======
13. Loans and advances
30 June 2020 31 December 2019
(Unaudited) (Audited)
GBP'000 GBP'000
========================= ============ ================
Total loans and advances 21,005 27,828
Less: loss allowance (8) (123)
20,997 27,705
============ ================
Past due receivables relating to loans and advances are analysed
as follows:
30 June 2020 31 December 2019
(Unaudited) (Audited)
GBP'000 GBP'000
============================== ============ ================
Neither past due nor impaired 19,537 27,126
Past due: 0-30 days 1,444 490
Past due: 31-60 days 13 61
Past due: 61-90 days 3 23
Past due: more than 91 days - 5
20,997 27,705
============ ================
The financial risk management procedures disclosed in the 31
December 2019 audited financial statements have been and remain in
place for the period to 30 June 2020.
14. Share capital
Share Capital Total
GBP'000 GBP'000
========================================== =============== =========
80,822,204 shares at GBP0.91 per share at
30 June 2020 (unaudited) 73,548 73,548
All ordinary shares carry equal entitlements to any
distributions by the company. No dividends were proposed by the
Directors for the period ended 30 June 2020.
15. Borrowings
30 June 2020 31 December
2019
(Unaudited) (Audited)
GBP'000 GBP'000
========================== ============= ===========
Loans due within one year 8,221 6,194
8,221 6,194
============= ===========
Movements in borrowings during the year
The below table identifies the movements in borrowings during
the year.
GBP'000
====================================== ========================
Balance at 1 January 2020 6,194
Funding drawdown 2,861
Interest expense 159
Fees amortised 67
Repayments (1,060)
Balance at 30 June 2020 (Unaudited) 8,221
========================
Balance at 1 January 2019 59,041
Demerger of subsidiary (59,041)
Acquisition of subsidiary 1,183
Funding drawdown 5,350
Interest expense 39
Origination fees paid (357)
Repayments (21)
========================
Balance at 31 December 2019 (Audited) 6,194
========================
16. Earnings per share
Earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares in issue during the period/year.
The calculation of the basis and adjusted earnings per share is
based on the following data:
6 months
ended 6 months Year ended
31 December
2019
30 June 2020 ended (Audited)
(Unaudited) 30 June 2019
(Unaudited)
=============================================== ================ ================= ===============
Number of shares
At period/year end 80,822,204 91,933,316 80,822,204
Weighted average 80,822,204 96,617,716 94,043,175
Earnings attributable to ordinary shareholders GBP'000 GBP'000 GBP'000
Loss after tax attributable to the owners
of TruFin plc (5,242) (9,342) (18,070)
Adjusted earnings attributable to ordinary
shareholders
Loss for the period/year attributable
to the owners of TruFin plc (5,242) (9,342) (18,070)
Adjusted for:
Share-based payment 315 972 2,509
Loss from discontinued operations - 3,831 3,287
Adjusted loss after tax attributable
to the owners of TruFin plc (4,927) (4,539) (12,274)
Earnings per share* Pence Pence Pence
Basic and Diluted (6.5) (9.7) (19.2)
Adjusted(1) (6.1) (4.7) (13.1)
* All Earnings per share figures are undiluted and diluted.
Adjusted(1) EPS excludes share-based payment expense,
exceptional items and discontinued operations from loss after
tax
Management has been granted share options in TruFin plc. These
could potentially dilute basic EPS in the future, but were not
included in the calculation of diluted EPS as they are antidilutive
for the periods presented, as the Group is loss making.
17. Related party disclosures
Transactions with directors
Key management personnel disclosures are provided in notes 5 and
6.
18. Post balance sheet events
No reportable post balance sheet events.
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