Statement regarding Satago and Trading Update


10 December 2021

TruFin plc
(“TruFin” or the “Company”)

Statement regarding Satago and Trading Update

Statement regarding Satago

The Company announces that Satago Financial Solutions Limited ("Satago") has broadened its relationship with Lloyds Bank plc ("Lloyds Bank" or the "Bank") and extended its commercial pilot.

As part of the continued partnership, additional functionality within Satago is now being evaluated by Lloyds Bank as part of a broader remit within the commercial banking offering.

TruFin is also pleased to announce that Satago has completed its integration with Business Finance Assistant (the Bank’s proprietary Accounting Software Solution) for Business Banking customers. This integration will broaden the digitised functionality offered to the Bank’s Business Banking customers, providing seamless access to working capital.

As a result of the extended scope of the initiative, the commercial pilot phase will continue into early 2022.

Trading Update

During the second half of 2021, the gross revenue of Oxygen Finance Group Limited (together with its subsidiaries, Oxygen Finance Limited, Oxygen Finance Americas Inc. and Porge Limited) (“Oxygen”) is expected to grow in excess of 30% over the same period in 2020. Oxygen’s client base is expected to exceed 120 unique clients by year end (31 December 2020: 92). This positive momentum has resulted in Oxygen posting its first cash flow positive month during Q4 2021.

Oxygen continues to dominate the markets within which it operates, whilst delivering meaningful social value as it accelerates payments to thousands of suppliers in local economies. Oxygen expects to deliver revenue growth in excess of 20% per annum over the coming years, which, given the operational gearing in the business, should translate to increasing profits. Oxygen is fully funded for this organic growth, requiring no further financial support from TruFin.

The launch of Mortal Shell at Playstack Ltd (“Playstack”) on the ‘Steam Platform’ occurred in August 2021 and negotiations to extend the franchise are ongoing. The pipeline of console IP remains strong and Playstack is well positioned to capitalise on recent successes with a number of further console signings expected over the next few months. The beta launch of the brand technology platform ‘Interact’ occurred in late November 2021 and a formal launch is expected to occur in Q1 2022. 

Vertus Capital Limited (“Vertus”) has maintained its record of no credit losses since inception and, despite two early loan repayments, is still targeting a loan book of £22m by the end of Q1 2022 (from £12m as at 31 December 2020) and has a three-year loan book target of £50m. Vertus will be investing in technology-enabled lending solutions during 2022 to satisfy the growing pipeline and has recorded its first month of profitability during Q4 2021.

It is pleasing to report that two of our subsidiaries have recorded their first profitable months during 2021. However, the broadening and extension of Satago’s commercial trial will result in the financial benefits of a successful commercial outcome being pushed back. The extended scope of the initiative has enlarged the opportunity set for Satago and this, coupled with Satago’s increasing pipeline of strategic partners, gives the Board of TruFin confidence in the significant value creation opportunity at Satago.

We look forward to updating shareholders as to the result of the enlarged trial in early 2022.