REG - TruFin PLC - Statement regarding Satago and Trading Update

TrufinAnnouncement

10/12/2021 07:00

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RNS Number : 2038V  TruFin PLC  10 December 2021

10 December 2021

 

TruFin plc

("TruFin" or the "Company")

 

Statement regarding Satago and Trading Update

 

Statement regarding Satago

The Company announces that Satago Financial Solutions Limited ("Satago") has
broadened its relationship with Lloyds Bank plc ("Lloyds Bank" or the "Bank")
and extended its commercial pilot.

As part of the continued partnership, additional functionality within Satago
is now being evaluated by Lloyds Bank as part of a broader remit within the
commercial banking offering.

TruFin is also pleased to announce that Satago has completed its integration
with Business Finance Assistant (the Bank's proprietary Accounting Software
Solution) for Business Banking customers. This integration will broaden the
digitised functionality offered to the Bank's Business Banking customers,
providing seamless access to working capital.

As a result of the extended scope of the initiative, the commercial pilot
phase will continue into early 2022.

Trading Update

During the second half of 2021, the gross revenue of Oxygen Finance Group
Limited (together with its subsidiaries, Oxygen Finance Limited, Oxygen
Finance Americas Inc. and Porge Limited) ("Oxygen") is expected to grow in
excess of 30% over the same period in 2020. Oxygen's client base is expected
to exceed 120 unique clients by year end (31 December 2020: 92). This positive
momentum has resulted in Oxygen posting its first cash flow positive month
during Q4 2021.

Oxygen continues to dominate the markets within which it operates, whilst
delivering meaningful social value as it accelerates payments to thousands of
suppliers in local economies. Oxygen expects to deliver revenue growth in
excess of 20% per annum over the coming years, which, given the operational
gearing in the business, should translate to increasing profits. Oxygen is
fully funded for this organic growth, requiring no further financial support
from TruFin.

The launch of Mortal Shell at Playstack Ltd ("Playstack") on the 'Steam
Platform' occurred in August 2021 and negotiations to extend the franchise are
ongoing. The pipeline of console IP remains strong and Playstack is well
positioned to capitalise on recent successes with a number of further
console signings expected over the next few months. The beta launch of the
brand technology platform 'Interact' occurred in late November 2021 and a
formal launch is expected to occur in Q1 2022.

Vertus Capital Limited ("Vertus") has maintained its record of no credit
losses since inception and, despite two early loan repayments, is still
targeting a loan book of £22m by the end of Q1 2022 (from £12m as at 31
December 2020) and has a three-year loan book target of £50m. Vertus will be
investing in technology-enabled lending solutions during 2022 to satisfy the
growing pipeline and has recorded its first month of profitability during Q4
2021.

It is pleasing to report that two of our subsidiaries have recorded their
first profitable months during 2021. However, the broadening and extension of
Satago's commercial trial will result in the financial benefits of a
successful commercial outcome being pushed back. The extended scope of the
initiative has enlarged the opportunity set for Satago and this, coupled with
Satago's increasing pipeline of strategic partners, gives the Board of TruFin
confidence in the significant value creation opportunity at Satago.

We look forward to updating shareholders as to the result of the enlarged
trial in early 2022.

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                                                        0203 743 1340

James van den Bergh, Chief Executive Officer
07779 229508

Kam Bansil, Investor Relations
 Liberum Capital Limited (Nominated Adviser and Corporate broker)  0203 100 2000

Chris Clarke

Edward Thomas

Chris Whittaker

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 (http://www.TruFin.com) .

 

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