TIDMSYME
RNS Number : 2718U
Supply @ME Capital PLC
01 April 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.
1 April 2021
Supply@ME Capital plc
(The "Company" or "SYME")
Trading Update
Supply@ME Capital plc, the innovative fintech platform which
provides the Inventory Monetisation(c) service to manufacturing and
trading companies, provides the following update on its business
activities and strategic initiatives.
The SYME platform aligns Client companies (manufacturing and
trading companies) seeking to monetise part of their inventory for
cash, with Inventory funders (banks, financial institutions and
investment funds). The Inventory Funders invest through the SYME
platform into portfolios of inventory assets through special
purpose vehicles.
Key points
-- Managing - more efficiently - the Inventory Monetisation
programme via two parallel work streams in order to:
o optimise the funding cost for the Italian portfolio of client
companies such that it could produce higher returns;
o capitalise on the interest of the Inventory Funder to monetise
a more global portfolio diversified by country.
-- Gross origination of Client companies increased 13% between December 2020 and end March 2021
-- TradeFlow Capital Management Pte Ltd due diligence
progressing in accordance with the projected time-table
-- Appointment of new Chief Financial Officer, effective June 2021
Alessandro Zamboni, Chief Executive, commented, "2020 saw the
groundwork laid for a number of business initiatives which have
either been implemented or are close to fruition. We have also
strengthened the board and senior management team with the
appointment of a Chief Financial Officer and several highly
experienced individuals to key positions. Despite challenging
market conditions, SYME progresses towards the completion of its
first inventory monetisation transactions. The proposed acquisition
of the complimentary inventory "in-transit" business is continuing
and, on a successful close would bring Supply@ME closer to its goal
of being a leading global inventory monetisation platform. We aim
for the positive revenue impact from several of our business
streams to be reflected in the Company's next Interim
Statement".
****
On 30 October 2020, Supply@ME announced its decision to
collaborate with a single Inventory Funder ("Investor") for the
first securitisation issuance. The Investor agreed the monetisation
structure in January 2021, following which the Company had expected
to deliver on both Captive-Funding and Self-Funding initiatives by
the end of the first quarter of 2021. However, SYME has since
needed to invest additional time in addressing the request of the
Inventory Funder to invest in a more diversified portfolio (by
country) of inventory assets, and the subsequent refocus of the
Captive-funding route on wholly Italian portfolios as outlined
below.
1. Inventory Funding Programme: managing - more efficiently -
the Inventory Monetisation programme via two parallel streams
Captive-funding route
Progress has been made with Quadrivio Group and the Captive Bank
acquisition process.
The Inventory Funder, that had initially proposed to fund a
wholly Italian portfolio (through the Open-funding route explained
below), has expressed a preference to invest in a more diversified
inventory portfolio across several countries rather than in a
single country.
SYME has therefore agreed with its partners that, subject to the
successful completion of the Captive Bank transaction, this
Captive-funding route will be used to begin the monetisation of its
Italian portfolio of Client companies. The first group of Italian
Client companies that are expected to be monetised have been
informed of this solution.
SYME anticipates that the Captive Bank should be able to provide
a lower cost of funding than other investors which, if achieved,
would deliver higher gross returns to SYME from each contract.
The Company and Quadrivio Group will provide further details of
this dedicated Italian monetisation programme through a separate
announcement.
Open-funding route
Inventory Funder
On 30 October 2020, Supply@ME announced its decision to
collaborate with a single Inventory Funder ("Investor") for the
first securitisation issuance. As noted, this investor has
expressed the preference to invest in a more diversified portfolio
by country. In this regard, SYME's UK team is working with the
Investor to complete legal requirements and agree terms reflecting
a global portfolio (in particular in the UK and UAE which both
operate under UK common law, a preferred jurisdiction of this
Inventory Funder).
StormHarbour Securities LLP ("SH")
Following this revised funding strategy and taking into account
the growth of the portfolio shown below, SH is continuing to roll
out its securitisation placing programme as per the RNS of 20 April
2020.
Shariah platform
Since its launch, the Shariah-compliant version of the Platform
has seen strong levels of interest. SYME continues to work with the
Shariah Funding Specialist towards a Shariah compliant capital
market placement.
2. Client company origination: growth through successfully
leveraging commercial partnerships
Overview
The portfolio of Client Companies continues to grow. Gross
origination of Client companies increased 13% between December 2020
and the end of March 2021.
Value (Euro) 31.3.20 30.6.20 30.9.20 31.12.20 31.3.21
Gross origination[1] 1.22bn 1.43bn 1.64bn 2.13bn 2.4bn
-------- -------- -------- --------- --------
Number of client companies 82 97 142 165 187
-------- -------- -------- --------- --------
According to the GICS[2] classification adopted by the Company,
the key Portfolio core sectors are currently Materials, Capital
Goods, Retailing & Food and Beverage & Tobacco. Below is a
breakdown of the Client company origination with reference to the
geographical region served.
Client company Geographical breakdown 31.3.21
A geographical breakdown of SYME's client company portfolio is
given below. Italy continues to be the source of the majority of
Client companies given that SYME has been operational in this
country for longer. Over the past year, demand for the Supply@ME
service has increased in the UK whilst the launch of the Shariah
compliant platform has led to more interest from the MENA
region.
Value (Euro) UK MENA Europe (Italy) Other geographies
Gross origination 299.4m 199.6m 1.751bn 150m
------- ------- --------------- ------------------
Number of client companies 22 12 152 1
------- ------- --------------- ------------------
3. Potential business acquisition
Proposed acquisition of TradeFlow Capital Management Pte Ltd
("TradeFlow Capital")
As announced on 17 March 2021, the proposed acquisition of
TradeFlow Capital offers SYME the opportunity to complete its
global offering and further extending the Company's geographic
footprint.
The acquisition would also allow SYME's Platform to monetise
inventory (in particular, commodities) "in-transit" and will also
generate a number of benefits for SYME from both a funding and
customer origination perspective. This was recently demonstrated by
a partnership signed between TradeFlow Capital and The
International Chamber of Commerce ("ICC") that enables the
leveraging of TradeFlow Capital's innovative non-lending and
non-credit based instruments and ICC's global network of more than
45 million chambers of commerce and businesses. The partnership
will enable the creation of an ICC SME Fund to provide small
businesses with the right level of financial support to execute
import/export trades in bulk commodities.
SYME will announce a further update on the proposed acquisition
in due course.
4. Corporate matters
Appointment of Chief Financial Officer
Supply@ME is pleased to announce the appointment of Ms Amy
Benning as Chief Financial Officer with effect from 7 June. Ms
Benning will join from Alfa Financial Software Holdings plc, a UK
main market listed company. Prior to this she spent 12 years at PwC
London where she specialised in UK capital raising transactions,
M&A and IPOs for a range of clients.
AGM
The Company will shortly announce details of its 2019 AGM which
will be held in April.
Notes
Supply@ME enables businesses to generate cashflow, without
incurring debt, by monetising their existing stock. Before a
business has found an end-customer for its inventory, the Supply@ME
platform enables them to sell ("monetise") their stock and receive
cash immediately to boost their working capital. The Supply@ME
service enables strong companies to improve their working capital
cycle. SYME does not monetise inventory for companies in financial
difficulty or with inventory that they are struggling to sell.
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
[1] "Gross origination" includes all client companies that have
signed an NDA, a term sheet, or are in, or have completed, the
onboarding process. For clarity, the gross origination also
includes commercial opportunities postponed or lost/ not
eligible.
[2] www.msci.com/gics.
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