TIDMSYME
RNS Number : 0230S
Supply @ME Capital PLC
11 November 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 AMED. ON PUBLICATION OF THIS ANNOUNCEMENT
VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS
CONSIDERED TO BE IN THE PUBLIC DOMAIN.
11 November 2021
Supply@ME Capital plc
(The "Company", "the Group" or "SYME")
Revised revenue guidance for FY 2021:
Majority of revenues from Inventory Monetisation transactions
deferred into future accounting periods, commencing FY2022.
Significant progress made in securing the Group's multi-business
line FinTech strategy.
Supply@ME Capital plc, the innovative fintech platform which
provides the Inventory Monetisation(c) service to manufacturing and
trading companies, today provides the following update on its Group
revenue projections for the current financial year ending 31
December 2021.
In the Trading Update, published via RNS on 31 August 2021, the
Board of Directors expected the Company t o generate consolidated
revenues for 2021 in the range of GBP3.8m - GBP4.9m.
The revenue guidance set out in the RNS of 31 August, was based
on the Group's pipeline of inventory funding streams (warehoused
goods monetisation via "C.IM" revenue) and associated Inventory
Funders (Banks and Investment Funds), together with the investment
advisory revenue ("IA") expectations generated by the in-transit
goods monetisation managed by TradeFlow Capital Funds. The pipeline
referred to above was analysed in detail by the Board of Directors
and only those inventory funding streams with the highest
confidence factor were included in the revenue guidance published
on 31 August 2021.
The Board of Directors now expects a binding contract with the
initial Inventory Funder to be finalised prior to 31 December 2021,
following which the first Inventory Monetisation ("IM") transaction
is then expected to be completed. As a result, the majority of
these revenues will now be recognised in future accounting periods,
commencing FY2022, with Group revenues for the year ended 31
December 2021 now expected to be in the range of GBP0.5m to
GBP0.8m.
Adjusted revenue guidance
The revised revenue guidance for the year ending 31 December
2021 has been calculated on a consistent basis as set out above.
The Board now expects the majority of these revenues will be
recognised in future accounting periods, commencing from FY2022, as
a result of the following:
-- One of the Inventory Funders expected to participate in the
first IM transaction before the end of the current year and
identified as the "Fintech Bank" in the RNS of 29 June 2021, has
now chosen to take advantage of the SACE Guarantee Italia* in
selecting the initial portfolio of companies for the first IM
transaction. This has resulted in some delays in identifying
eligible companies, with a SACE guarantee available to them, and
packaging the first portfolio for monetisation. This portfolio,
which together will form the inaugural IM transaction, is also
smaller than previously anticipated, both in terms of the number of
client companies and the value of inventory to be monetised at the
stage. As such, the revised revenues expected to be recognised in
the current financial year will reflect these factors.
While the SACE guarantee initiative has delayed the first IM
transaction, it has contributed to an increase of the Group's
pipeline of inventory funding streams and the associated pipeline
of Inventory Funders.
*SYME announced it was working with SACE Guarantee Italia, an
Italian government scheme introduced in response to Covid-19 to
help companies improve their financial position, in the Interim
Results Statement, published via RNS on 30 September 2021.
Following the expected successful completion of this first IM
transaction, the Board of Directors expects to roll-out further
transactions with some of the main Italian banks.
-- In addition to the Fintech Bank, the Board's previous
guidance included another Inventory Funder with whom the Group was
in advanced discussions regarding the monetisation of a portfolio
of client companies prior to 31 December 2021. This particular
Inventory Funder has recently proposed to use the Group's
innovative Platform in a White Label business model. Under this
model, the Group now expects to charge licence and multi-annual
servicing fees to use the Group's Inventory Monetisation Platform
(including the platform software, associated inventory servicing
processes and legal documentation) to carry out Inventory
Monetisation transactions as a self-funder. Allowing for time to
agree the new contractual arrangements for the first White
Labelling activity, the Board now expects the future revenues
projected to be generated from this Funder to commence recognition
during FY 2022.
While this will involve an initial delay, completion of the
first White Labelling activity will open up greater access to the
SYME platform for other self-funders and new revenue generation
opportunities for the Group.
-- A further Inventory Funder, specialising in asset evaluation,
lending and disposal, which was included in SYME's previous
guidance, has recently proposed to focus its first IM activities to
companies in the UK market, in order to speed up the signing of the
agreement between parties. In this regard, the Company and this
Inventory Funder are currently negotiating a dedicated term sheet
with their first IM transaction expected in 2022.
Alessandro Zamboni, Chief Executive of Supply@ME, said:
"Naturally, we eagerly anticipate the completion of the first
Inventory Monetisation transactions and the revenue associated with
this. We are committed to providing bespoke solutions that align
the requirements of our high-quality funders with our portfolio of
client companies. The completion of our first monetisation and the
lessons learned in its achievement will allow for a smoother
process for the future as we scale up. A binding contract with the
initial Inventory Funder is expected to be in place prior to 31
December 2021, with the first - inaugural - IM transaction
following on from this. While expected revenues for the upcoming
reporting period will be significantly different as a result, this
represents a delay to our projected revenue stream, rather than
lost opportunities.
"Our White Label initiative, in particular, is a complex process
with many moving parts and is one, we believe, that must be focused
on accuracy rather than speed. Importantly, the Board expects this
first agreement to serve as a template for future White Label
opportunities, paving the way for future growth, translating into
greater value for our shareholders and confirming our
multi-business line FinTech strategy".
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 program which will be focused on both
inventory in transit monetisation and warehouse goods monetisation.
This program 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
Brian Norris, Cicero/AMO, +44 (0)20 7947 5317
brian.norris@cicero-group.com
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