Restructuring and Update

Restructuring and Update

29 July 2019

The Company is pleased to announce that it has undergone a restructuring, with Head Office costs of the Company expected to be reduced by approximately 35% on an annualised basis to better reflect the Company’s activities as well as the reduced size of the TruFin Group.  These actions confirm, and build upon, previous commitments made at the time of the demerger of Distribution Finance Capital Limited (“DFC”) in May 2019.

Additionally, and in keeping with the Company’s strategy of building a stable of niche lenders, the Directors are also pleased to announce the conversion into ordinary shares of the existing £3.65 million convertible loan held in Vertus Capital Limited (“Vertus”) in full satisfaction and discharge of the loan.  This, together with a further cash payment of approximately £355k, has resulted in the Company's wholly-owned subsidiary, TruFin Holdings Limited, becoming the 51% controlling shareholder in Vertus.  Vertus is a funding provider to the Independent Financial Adviser (“IFA”) sector and the Directors consider Vertus to be best in class with significant opportunities arising from a sector trend of consolidation.

The Vertus transaction announced today, together with the recent disposal of DFC via a stock market listing and the Zopa stake sale, collectively demonstrate the Company’s continued commitment to its strategy of growing its businesses and subsequently exiting them when it is in the interests of the Company’s shareholders.

For full details please see the announcement here.