REG - Supply @ME Capital - Trading Update

Supply@Me CapitalAnnouncement

31/12/2021 07:00

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RNS Number : 1132X  Supply @ME Capital PLC   31 December 2021

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

31 December 2021

Supply@ME Capital plc

(The "Company" or "SYME")

Trading Update

 

Supply@ME Capital plc, the innovative fintech platform (the "Platform") which
provides the Inventory Monetisation© service to manufacturing and trading
companies, today announces the following trading update covering the period
from 1 July to 31 December 2021.

Summary

Progress has been made on a number of fronts. The Company is working to
complete the signing of a binding agreement with a first Inventory Funder for
the inaugural Italian inventory monetisation transaction. The process is
progressing well and the Parties are finalising the arrangements.

In parallel, further inventory funding arrangements are expected by SYME in
the other geographies it serves. The Company will update the market when
contracts are signed and disclosable pursuant to the confidentiality
agreements.

Interest from potential corporates remains strong in all SYME's target
geographies. The Company continues to enhance its origination agreements,
building a wide ecosystem of partners and introducers.

TradeFlow Capital Management Ltd. Pte ("TradeFlow") has focussed on three key
areas of activity: fund management, fintech software as a service (SaaS)
development and Strategic Joint Venture developments in technology and fund
management to enable faster global growth. In respect of the fund management
business, its relationship with the International Chamber of Commerce (ICC)
continues to materially progress with a view to having infrastructure in place
to launch an ICC endorsed fund to support SME trade in 2022.

The revenues recognised from these initiatives in 2021 are expected to be in
line with the guidance provided in the RNS of 11 November 2021.

The Company expects to announce its new strategic growth plan together with
its Annual Results for the year ending 31 December 2021 by the end of April
2022.

Trading update for the six months ended 31 December 2021

SYME's revenue streams are outlined below as per the definitions introduced in
the RNS of 31 August 2021.

Revenue stream #1: "Captive" inventory monetisation platform servicing
("C.IM")

Italy

In Italy, as outlined in the RNS of 11 November 2021, SYME expects to complete
the first inventory monetisation covered by the Italian Government's SACE
guarantee "Garanzia Italia" (now expected to be extended until the end of June
2022), following the signing of a binding agreement with the Fintech Bank
funder, announced in the RNS of 29 June 2021. This binding agreement is close
to being signed. The parties are currently negotiating new key terms aimed at
revising the purpose of the alliance to become more focussed on a commercial
path, which would not require the acquisition by SYME of the 10% stake in the
Fintech Bank.

The Company is also in discussions with a number of other Italian banks for
the completion of further inventory monetisation transactions during 2022.
SYME is also working closely with SACE, in order to study a new bespoke
guarantee which would commence following the expiry of the current "Garanzia
Italia" SACE guarantee scheme referred to above.

SYME also confirms that the Captive Bank project, a strategically important
initiative for the Group, remains ongoing.

UK

The increased marketing efforts which the Company has undertaken in the UK
have generated significant awareness among potential client companies and
Inventory Funders. The Company is currently in discussion with more than ten
potential investors and asset-based lenders interested in arranging and
funding UK inventory monetisation transactions.

The Company expects to include a comprehensive and dedicated update on
activity in the UK market within its 2021 Annual Results Announcement.

MENA

As announced in the of RNS of 23 November 2021, SYME has been working
alongside the Shariah fund arranger Intesa Sanpaolo Private Bank (Suisse)
Morval SA ("ISPB Morval") to provide funding for the Company's
Shariah-compliant Inventory Monetisation platform in the Middle East. In
parallel, the Company is working with iMass Investment in order to study
further inventory funding alliances in the region and plan a first inventory
monetisation transaction during 2022.

United States

The Company continues to explore potential NASDAQ project routes with ARC
Group 1  (#_ftn1) .

Mr Anthony Brown, acting as strategic advisor to the Company regarding  the
US market, is evaluating potential inventory funding alliances, building upon
the positive feedback received following participation in an event organised
by Global Trade Review on 8 December 2021 in New York.

Revenue stream #2: "White Label" inventory monetisation platform servicing
("WL.IM")

The Company is in advanced discussions with an Italian bank to sign a binding
agreement and begin providing access to the Platform. The company expects this
agreement will be revenue generating in 2022.

Revenue stream #3: Investment Advisory ("IA")

TradeFlow

SYME completed the acquisition of TradeFlow in July 2021, detailed in the RNS
of 6 July 2021.

 

TradeFlow's work in the period from acquisition to 31 December 2021 has been
focussed on three key areas of activity; fund management, fintech software as
a service (SaaS) development and Strategic Joint Venture developments in
technology and fund management to enable faster global growth. In respect of
the fund management business, its relationship with the International Chamber
of Commerce (ICC) continues to materially progress with a view to having
infrastructure in place to launch an ICC endorsed fund to support SME trade in
2022. In the last month, additional Fund distribution partnerships were also
agreed, expanding the marketing reach for all of the funds that TradeFlow
manages, forming part of the Global Inventory Monetisation programme.

The existing Trade Flow Funds for in-transit cargo transactions are on track
to make above target returns for its investors of approximately +6% per annum
(net) on the USD Fund and +5% per annum (net) on the EURO Fund.  Further to
the RNS of 9 August 2021, the USD Trade Flow Fund S.P. issued its first "BBB"
Investment grade rated notes via EUROCLEAR and TradeFlow continues to explore
the development of other  investment products for investors linked to the
established TradeFlow Funds and the new broader Global Inventory Monetisation
programme.

Finally, TradeFlow was granted Registered Fund Manager Company (RFMC) status
by the Monetary Authority of Singapore (MAS) in November 2021 and was granted
Membership of BAFT (The Bankers Association for Finance and Trade) as a
recognised supplier of trade finance technology services to Banks. TradeFlow,
in partnership with the Singapore Institute of Technology, signed a Research
project contract to develop an A.I. system for enhanced predictive analytics
around logistics and shipping, due to commence during the first quarter of
2022.

Alessandro Zamboni, Chief Executive of Supply@ME Capital plc, commented: "2021
has been a transformational year. The Group has made tremendous progress since
December last year and we should be proud of what we have created. Supply@ME
is a  unique equity story which is attracting a lot of interest from
investors, lenders and strategic partners across the globe. The standard
setters and regulators are working as well to support the alternative capital
market industry and the Company will benefit from that in 2022. Now that
market conditions seem more settled, we expect an acceleration of revenue,
aimed at rewarding the commitment and trust of all our shareholders and key
stakeholders."

 

Forward looking statements and other important information

This announcement contains forward looking statements, which are statements
that are not historical facts and that reflect SYME's beliefs and expectations
with respect to future events and financial and operational performance as at
the date hereof. These forward looking statements involve known and unknown
risks, uncertainties, assumptions, estimates and other factors, which may be
beyond the control of SYME and which may cause actual results or performance
to differ materially from those expressed or implied from such forward-looking
statements. Nothing contained within this announcement is or should be relied
upon as a warranty, promise or representation, express or implied, as to the
future performance of SYME or its business. Any historical information
contained in this statistical information is not indicative of future
performance.

The information contained in this announcement is provided as of the dates
shown.

 

Nothing in this announcement should be construed as:

·    legal, tax, investment, financial, or accounting advice, or
solicitation for or an offer to invest in SYME;

·    a profit forecast or profit estimate and no statement in this
announcement should be interpreted to mean that the future earnings per share
of the Company for current or future financial years will necessarily match or
exceed the historical or published earnings per share of the Company.

Notes

Supply@ME Capital PLC and its operating subsidiaries (together the "Group")
provide an innovative fintech platform (the "Platform") for use by
manufacturing and trading companies to access inventory trade solutions
enabling their businesses to generate cashflow, via a non-credit approach and
without incurring debt.  This is achieved by their existing eligible
inventory being added to the Platform and then monetised via purchase by third
party Inventory Funders.  The inventory to be monetised can include warehouse
goods waiting to be sold to end-customers or goods/commodities that are part
of a typical import/export transaction. SYME announced in August 2021 the
launch of a Global Inventory Monetisation programme which will be focused on
both inventory in transit monetisation and warehouse goods monetisation. This
programme will be focused on creditworthy companies and not those in distress
or otherwise seeking to monetise illiquid inventories.

Contacts

Alessandro Zamboni, CEO, Supply@ME Capital plc, investors@supplymecapital.com

Paul Vann, Walbrook PR Limited, +44 (0)20 7933 8780; paul.vann@walbrookpr.com
(mailto:paul.vann@walbrookpr.com)

Brian Norris, Cicero/AMO, +44 (0)20 7947 5317 brian.norris@cicero-group.com
(mailto:brian.norris@cicero-group.com)

 

 

 1  (#_ftnref1) https://arc-group.com/.

 

 

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