[email protected] Capital plc, the innovative fintech platform (the “Platform”) which provides the Inventory Monetisation© service to manufacturing and trading companies, today announces the following trading update covering the period from 1 July to 31 December 2021.
Progress has been made on a number of fronts. The Company is working to complete the signing of a binding agreement with a first Inventory Funder for the inaugural Italian inventory monetisation transaction. The process is progressing well and the Parties are finalising the arrangements.
In parallel, further inventory funding arrangements are expected by SYME in the other geographies it serves. The Company will update the market when contracts are signed and disclosable pursuant to the confidentiality agreements.
Interest from potential corporates remains strong in all SYME’s target geographies. The Company continues to enhance its origination agreements, building a wide ecosystem of partners and introducers.
TradeFlow Capital Management Ltd. Pte (“TradeFlow”) has focussed on three key areas of activity: fund management, fintech software as a service (SaaS) development and Strategic Joint Venture developments in technology and fund management to enable faster global growth. In respect of the fund management business, its relationship with the International Chamber of Commerce (ICC) continues to materially progress with a view to having infrastructure in place to launch an ICC endorsed fund to support SME trade in 2022.
The revenues recognised from these initiatives in 2021 are expected to be in line with the guidance provided in the RNS of 11 November 2021.
The Company expects to announce its new strategic growth plan together with its Annual Results for the year ending 31 December 2021 by the end of April 2022.
Trading update for the six months ended 31 December 2021
SYME’s revenue streams are outlined below as per the definitions introduced in the RNS of 31 August 2021.
Revenue stream #1: “Captive” inventory monetisation platform servicing (“C.IM”)
In Italy, as outlined in the RNS of 11 November 2021, SYME expects to complete the first inventory monetisation covered by the Italian Government’s SACE guarantee “Garanzia Italia” (now expected to be extended until the end of June 2022), following the signing of a binding agreement with the Fintech Bank funder, announced in the RNS of 29 June 2021. This binding agreement is close to being signed. The parties are currently negotiating new key terms aimed at revising the purpose of the alliance to become more focussed on a commercial path, which would not require the acquisition by SYME of the 10% stake in the Fintech Bank.
The Company is also in discussions with a number of other Italian banks for the completion of further inventory monetisation transactions during 2022. SYME is also working closely with SACE, in order to study a new bespoke guarantee which would commence following the expiry of the current “Garanzia Italia” SACE guarantee scheme referred to above.
SYME also confirms that the Captive Bank project, a strategically important initiative for the Group, remains ongoing.
The increased marketing efforts which the Company has undertaken in the UK have generated significant awareness among potential client companies and Inventory Funders. The Company is currently in discussion with more than ten potential investors and asset-based lenders interested in arranging and funding UK inventory monetisation transactions.
The Company expects to include a comprehensive and dedicated update on activity in the UK market within its 2021 Annual Results Announcement.
As announced in the of RNS of 23 November 2021, SYME has been working alongside the Shariah fund arranger Intesa Sanpaolo Private Bank (Suisse) Morval SA (“ISPB Morval”) to provide funding for the Company’s Shariah-compliant Inventory Monetisation platform in the Middle East. In parallel, the Company is working with iMass Investment in order to study further inventory funding alliances in the region and plan a first inventory monetisation transaction during 2022.
The Company continues to explore potential NASDAQ project routes with ARC Group  .
Mr Anthony Brown, acting as strategic advisor to the Company regarding the US market, is evaluating potential inventory funding alliances, building upon the positive feedback received following participation in an event organised by Global Trade Review on 8 December 2021 in New York.
Revenue stream #2: “White Label” inventory monetisation platform servicing (“WL.IM”)
The Company is in advanced discussions with an Italian bank to sign a binding agreement and begin providing access to the Platform. The company expects this agreement will be revenue generating in 2022.
Revenue stream #3: Investment Advisory (“IA”)
SYME completed the acquisition of TradeFlow in July 2021, detailed in the RNS of 6 July 2021.
TradeFlow’s work in the period from acquisition to 31 December 2021 has been focussed on three key areas of activity; fund management, fintech software as a service (SaaS) development and Strategic Joint Venture developments in technology and fund management to enable faster global growth. In respect of the fund management business, its relationship with the International Chamber of Commerce (ICC) continues to materially progress with a view to having infrastructure in place to launch an ICC endorsed fund to support SME trade in 2022. In the last month, additional Fund distribution partnerships were also agreed, expanding the marketing reach for all of the funds that TradeFlow manages, forming part of the Global Inventory Monetisation programme.
The existing Trade Flow Funds for in-transit cargo transactions are on track to make above target returns for its investors of approximately +6% per annum (net) on the USD Fund and +5% per annum (net) on the EURO Fund. Further to the RNS of 9 August 2021, the USD Trade Flow Fund S.P. issued its first “BBB” Investment grade rated notes via EUROCLEAR and TradeFlow continues to explore the development of other investment products for investors linked to the established TradeFlow Funds and the new broader Global Inventory Monetisation programme.
Finally, TradeFlow was granted Registered Fund Manager Company (RFMC) status by the Monetary Authority of Singapore (MAS) in November 2021 and was granted Membership of BAFT (The Bankers Association for Finance and Trade) as a recognised supplier of trade finance technology services to Banks. TradeFlow, in partnership with the Singapore Institute of Technology, signed a Research project contract to develop an A.I. system for enhanced predictive analytics around logistics and shipping, due to commence during the first quarter of 2022.
Alessandro Zamboni, Chief Executive of [email protected] Capital plc , commented: “2021 has been a transformational year. The Group has made tremendous progress since December last year and we should be proud of what we have created. [email protected] is a unique equity story which is attracting a lot of interest from investors, lenders and strategic partners across the globe. The standard setters and regulators are working as well to support the alternative capital market industry and the Company will benefit from that in 2022. Now that market conditions seem more settled, we expect an acceleration of revenue, aimed at rewarding the commitment and trust of all our shareholders and key stakeholders.”
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.
[email protected] 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 programme which will be focused on both inventory in transit monetisation and warehouse goods monetisation. This programme will be focused on creditworthy companies and not those in distress or otherwise seeking to monetise illiquid inventories.
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