TruFin PLC Trading & Company Update (0978M)

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RNS Number : 0978M

TruFin PLC

19 January 2021

19 January 2021

TruFin plc

("TruFin" or the "Company" or together with its subsidiaries the "Group")

Trading & Company Update

TruFin is pleased to announce that revenues for the 12 months ended 31 December 2020 are expected to be significantly ahead of market expectations at approximately GBP14.6m (FY19: GBP7.3m), representing year-on-year growth in excess of 100%. This has predominantly been driven by strong performance from the console division of Playstack Ltd ("Playstack") which, despite the further national lockdowns, has been supported by robust performance across the rest of the Group.

As a result, the Adjusted Loss Before Tax ('LBT') is also expected to be ahead of market expectations at no more than GBP8.4m (FY19: LBT of GBP9.3m).

Oxygen

Oxygen Finance Group Limited (together with its subsidiaries, Oxygen Finance Limited, Oxygen Finance Americas, Inc. and Porge Limited) ("Oxygen") continued to make considerable progress. The client portfolio has been strengthened with five new Early Payment ("EP") clients, three multi-year renewals by existing clients and four existing clients went live, all achieved despite the economic restrictions.

The second half of 2020 saw strong growth in suppliers signing up to Oxygen's Early Payment programmes. This, combined with cost control measures, resulted in EBITDA profitability in Q2, Q3 and Q4 of 2020. This positive momentum highlights Oxygen's dominance in its niche market.

Satago

Satago Financial Solutions Limited's ("Satago") has continued to develop its core technology and lending as a service ("LaaS") solution and remains well positioned notwithstanding reduced lending activity due to the Covid-19 pandemic. In December 2020, TruFin announced that Satago had entered into a six-month commercial pilot with a Tier-1 Bank which, if successful, is expected to lead to a five-year commercial agreement.

Playstack

During the year Playstack secured two significant contracts with major technology platforms, and successfully launched the console game 'Mortal Shell', which has made a material contribution to the Group's full year revenue. During 2021, Playstack will continue to develop its own innovative technology that increases the revenue generating potential of its game portfolio, whilst extending the reach of its financing services through partnerships with third-party lenders.

Vertus

The loan book of Vertus Capital Limited ("Vertus") continues to perform exceptionally well, with no credit losses incurred to date and a growing pipeline. Vertus is on track to reach its loan book target of GBP16m during Q1 2021 and as a result turn profitable on a monthly basis during 2021.

Company Update

Further to the Company's interim results statement on 25 September 2020 and given the strong performances within the Group, TruFin has formally engaged advisers to explore options for Oxygen and Vertus. This may result in the sale of Oxygen and / or Vertus and further return of capital to shareholders, should the board believe it to be in the best interests of shareholders. However, there is no certainty that such sales will occur.

James van den Bergh, Chief Executive Officer, commented: "Given the continued momentum within all the subsidiaries, the Board looks to the future with confidence. Each of the subsidiaries is considerably de-risked compared to twelve months ago and the Group is fully funded to achieve profitability. Oxygen and Vertus continue to dominate their niches and both have delivered new client wins in the face of the pandemic. Satago's recently announced commercial pilot with a Tier-1 Bank exemplifies the partnership model that TruFin continues to promote within the Group and we are all pleased with the success that Playstack has achieved."

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 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019. 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                     07779 229508 
 
 
  Liberum Capital Limited (Nominated Adviser and 
  Corporate broker) 
  Chris Clarke 
  Edward Thomas 
  Louis Davies                                        0203 100 2000 
 

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

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January 19, 2021 02:00 ET (07:00 GMT)