REG - TruFin PLC TruFin PLC - Sale of Majority Holding in Vertus

TrufinAnnouncement

05/10/2023 07:00

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RNS Number : 7422O  TruFin PLC  05 October 2023

5 October 2023

TruFin plc

("TruFin" or the "Company")

 

SALE OF MAJORITY HOLDING IN VERTUS

Further to the Company's announcement on 21 August 2023, TruFin announces that
it has completed the disposal of its 53.8% equity holding in Vertus Capital
Ltd ("Vertus"), a specialist lender to independent financial advisers, for
cash consideration of £3.2m following the acquisition of Vertus by Enable
Partners Holdings Limited ("Enable") (the "Disposal").

For the year ended 31 December 2022, Vertus recorded £213k of profit before
tax and contributed £162k of profit before tax to the Company's performance
for the year. As at 30 June 2023, the Company's share of Vertus' net assets
and associated goodwill was £3.2m. Proceeds from the disposal will be used to
provide additional working capital for the Company and allow for incremental
capital allocations to Oxygen and Satago based on ROI expectations.

Watrium AS ("Watrium"), a 22.8% shareholder in the Company, has co-invested in
Enable, alongside Explore Equity II SCSp ("Explore") as part of the
transaction, taking a 48.89% stake in Enable. Watrium is also a minority LP
investor in Explore. By virtue of Watrium's investment in Enable, the Disposal
constitutes a related party transaction for the purpose of AIM Rule 13 and
accordingly, the Directors of TruFin (other than Anders Wilhelmsen, being a
representative of Watrium on the Board of TruFin) having consulted with the
Company's Nominated Adviser, Liberum, consider that the terms of the Disposal
and Watrium's participation in it are fair and reasonable insofar as the
shareholders of the Company are concerned.

James van den Bergh, Chief Executive Officer, TruFin, said:

"Oxygen, Satago and Playstack have made strong progress in executing their
strategies over the last 24 months. Oxygen and Satago are both critical
infrastructure software providers whilst Playstack is a highly focused games
publisher with an enviable pipeline of games secured. The disposal of Vertus,
at an attractive valuation, simplifies and focuses the TruFin business. The
sale proceeds further strengthen TruFin's robust balance sheet as we look
forward to continued momentum at Oxygen, Satago and Playstack.

It has been a pleasure to work with Matt Marais and his team over the last few
years. Through hard work and entrepreneurship they have succeeded in building
a strong brand as a niche capital provider to the IFA community, which will
act as a springboard for their exciting expansion plans. We wish Matt, Enable
and Watrium all the best for the future. "

Matt Marais, Chief Executive Officer, Vertus, said:

"We would like to thank James and the TruFin team for their support and the
wise counsel they have provided during their time as a strategic partner to
Vertus. The acquisition by Enable will provide us with the investment to
support the next phase of our exciting growth plans."

Enquiries:

 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

About TruFin plc:

TruFin plc is the holding company of an operating group comprising four
growth-focused technology businesses operating in niche markets: early payment
provision, invoice finance, IFA finance and mobile games publishing. 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
(https://gbr01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.trufin.com%2F&data=05%7C01%7Cannie.styler%40trufin.com%7Cbaa78452ac0a47f8945108da28fa43e7%7C67937f35ec6246869ff319b660f3fd22%7C0%7C0%7C637867352602970809%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=KlrhCWwTxueK%2BL9vIsnyHiMNFfDmDQOWUnAQeFSgNQc%3D&reserved=0)
.

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