REG - TruFin PLC TruFin PLC - Trading Statement

TrufinAnnouncement

18/11/2024 07:00

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RNS Number : 5566M  TruFin PLC  18 November 2024

18 November 2024

 

TruFin plc

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

Trading & Outlook Update

 

TruFin is pleased to announce that it expects revenues for the 12 months
ending 31 December 2024 to be significantly ahead of market expectations at
more than £42m (FY23: £18.1m), representing year-on-year growth in excess of
132%. This has predominately been driven by a strong performance from the
console and mobile divisions of Playstack Ltd ("Playstack").

As a result the Group is on track to record its first year of positive EBITDA,
at no less than £3.5m (FY23: £(3.5)m), materially ahead of market
expectations. Despite absorbing the financial impact from the termination of a
Tier-1 Bank's contract at Satago Financial Solutions Limited ("Satago"), the
Group's Adjusted Loss Before Tax ("LBT") is also anticipated to show a
material improvement year on year at a loss of no more than £(2.5)m (FY23:
£(6.6)m).

The Group's cash position is also stronger than originally expected, with
unrestricted cash or cash equivalents of no less than £10m as at 31 October
2024.

2024 has been a transformational year for the Group. Playstack and Oxygen
Finance Group Limited ("Oxygen") are now profitable, and both remain on track
to grow significantly over the coming years.

Playstack's proprietary discovery technology, Magnitude, continues to identify
games which deliver exceptional returns on invested capital. Following this
year's highly successful launches of Balatro, Abiotic Factor and Rise of the
Golden Idol, Playstack has already secured an exciting lineup of 10 games for
release in 2025 and 2026.

Oxygen has once again performed consistently and predictably. With its large,
embedded client base and significant operational leverage, the Board expects
Oxygen's EBITDA to continue to grow at highly attractive rates during 2025 and
beyond.

Medium Term Outlook

Given the Group's performance, strong cash position and increasing visibility,
the Board is pleased to present its medium-term financial guidance. Given the
outstanding success of 2024, the Board expects 2025 to see a consolidation of
the record revenue outcome in 2024. Importantly, the Board expects Group
EBITDA to remain on a sustainably positive trajectory during 2025 and beyond.
The Group also expects to record its first annual Profit Before Tax ("PBT") in
2025, as the benefits of meaningful cost realignment at Satago take effect.

2026 is expected to see significant top line growth, whilst EBITDA and PBT are
anticipated to grow materially as the Group benefits from the inherent
operating leverage within the businesses. As a result, the Board expects 2026
revenues for the Group to be more than £55m with an expected Group EBITDA
margin of no less than 20%.

The Board continually appraises the capital requirements of the Group and
always looks to deploy excess capital as efficiently as possible, including
consideration as to whether excess capital should be returned to shareholders.

As Oxygen and Playstack continue to scale they are becoming increasingly
attractive to financial and strategic acquirers. The Board remains fully
committed to maximising value for shareholders and will continue to evaluate
all opportunities.

 

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
 Panmure Liberum Limited (Nominated Adviser and Corporate broker)  0203 100 2000

Chris Clarke

Edward Thomas

 

TruFin plc is the holding company of an operating group comprising three
growth-focused technology businesses operating in niche markets: early payment
provision, invoice 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.

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