11.09.19

2019 Interim Financial Report, Management Change of Roles, PlayStack Acquisition and Written Resolutions


11 September 2019

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO.596/2014.

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

INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2019, MANAGEMENT CHANGE OF ROLES, ACQUISITION OF PLAYSTACK LIMITED (“PLAYSTACK”) AND WRITTEN RESOLUTIONS

The Company announces:

  • unaudited interim results for the six months ended 30 June 2019;
  • a change in roles of Executive Chairman and Chief Executive Officer, Henry Kenner and Deputy Chief Executive Officer, James van den Bergh;
  • the acquisition of a majority stake in PlayStack; and
  • the circulation of certain written resolutions to its shareholders (the "Written Resolutions").

 Financial Highlights

  • Combined gross revenues at Oxygen Finance Group Limited (together with its subsidiaries, Oxygen Finance Limited, Oxygen Finance Americas, Inc. and Porge Limited) (“Oxygen”) and Satago Financial Solutions Limited (“Satago”) were £3.1m for the six months ended 30 June 2019 (six months ended 30 June 2018: £1.7m), representing growth of 88%.
  • Gross revenues at Oxygen were £1.7m for the six months ended 30 June 2019 (six months ended 30 June 2018: £1.2m), representing growth of 42%.
  • Oxygen’s clients’ total procurement spend reached £20.8bn as at 30 June 2019 (as at 30 June 2018: £15.7bn), representing year-on-year growth of 32%.
  • Satago’s gross interest income increased to £1.3m for the six months ended 30 June 2019 (six months ended 30 June 2018: £0.4m), representing year-on-year growth in excess of 200%.
  • Volumes in Satago’s core invoice financing business increased by 124% for the six months ended 30 June 2019 compared to the six months ended 30 June 2018.
  • TruFin Group's loss before tax from continuing operations was £3.7m for the six months ended 30 June 2019 (six months ended 30 June 2018: £5.2m).
  • Distribution Capital Finance Limited (“DFC”) was successfully demerged from the TruFin Group in May 2019, which has had a material impact on the scale and operations of the overall TruFin Group.
  • The investment in Zopa Group Limited (“Zopa”) was sold in May 2019 for £44.5m, which was a 22% increase from its valuation at the time of the TruFin Group’s IPO in February 2018.

 

6 months to

30 June

2019

6 months to

31 December

2018

6 months to

30 June

2018

Financials and KPI's (Unaudited)

£'000

£'000

£'000

Gross Revenue

3,138

2,697

1,668

Loss before tax from continuing operations

(3,722)

(4,588)

(5,241)

Loss before tax from continuing operations includes:

 

 

 

share‚Äźbased payment charge

(972)

(1,548)

(1,191)

Net Assets (£ 000's)

61,147

153,248*

158,743

*Audited figures

 

 

 


Trading Update and Further Developments

  • The Company has previously announced on 29 July 2019 a restructuring in order to reduce Head Office costs and this continues today with Henry Kenner, the Executive Chairman and Chief Executive Officer, changing role to become Non-Executive Chairman and James van den Bergh, the current Deputy Chief Executive Officer, becoming Chief Executive Officer.
  • In spite of the significant restructuring that has occurred in the last few months the Board is confident of a successful remainder to the year.  The integration of the acquisitions of 51% of Vertus Capital Limited (“Vertus”) and PlayStack will be a key focus for management in the coming months and also for the Investor Day later in the year where we will expand on the prospects for all our businesses.
  • The TruFin Group announced in July that it had acquired 51% of Vertus and today we are pleased to further announce that Vertus has concluded a secured debt facility for an initial £15m with a UK high street Bank. This will enable Vertus to continue its expansion and service its large and growing pipeline.
  • Further, the TruFin Group is today pleased to announce the conversion into ordinary shares of its outstanding £3.5 million convertible loans in PlayStack, a mobile games publisher and financier, in full satisfaction and discharge of the loans, together with a further equity investment of £1.5m in PlayStack, in order to obtain a majority controlling stake. The conversion and further investment will complete later today.  Growing on our existing lending relationship, this investment represents an opportunity for the TruFin Group to solidify its niche financing business in this fast-growing global sector.
  • The Company is circulating written resolutions to shareholders of the Company this morning proposing to:
  1. grant an increased authority for the buyback of shares,
  2. approve an increase in the Company's authorised share capital and amendments to the Company's articles of association to remove provisions relating to the B ordinary shares and non-voting preference shares that are no longer required and as such these shares have either been cancelled or redeemed; and
  3. approve an updated remuneration policy which the Company is proposing to reflect recent changes in the senior management and structure of the Company

 Henry Kenner, Chairman and Chief Executive Officer commented:

“This has been another busy period of activity for the TruFin Group resulting in a material reorganisation of the TruFin Group in terms of the nature and scale of its operations.  Following the successful demerger and IPO of DFC and the sale of our stake in Zopa, the management has been focused on:

  • re-scaling the business appropriately through an assertive reduction in Head Office costs with many functions being outsourced to other entities within the TruFin Group;
  • increasing investment in its existing businesses to successfully secure their development path; and
  • conversion of the TruFin Group’s remaining convertible debt positions in line with its consistent strategy of building a stable of niche lenders.  To that end, the TruFin Group has recently announced the acquisition of Vertus and today that of PlayStack.

Finally, I have today announced a change in my role as Chief Executive Officer and Executive Chairman to becoming that of Non-Executive Chairman.  In making this step I will be handing the day-to-day executive reins to the talented current Deputy Chief Executive Officer, James van den Bergh, with whom I have worked for several years.  This planned handover further reduces Head Office costs, whilst enabling the TruFin Group to implement the next stage in TruFin’s life cycle. The Board is delighted that James has accepted this exciting and challenging role and looks forward to continue working with him to ensure TruFin achieves its wider strategic goals.”

Full RNS can be found here.

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