TruFin (TRU) , a holding company focused on growing fintech and banking businesses, released its half year results to 30 June, with gross revenue rising 35% to £8.5 million, with Satago leading the way with an 180% increase thanks to its growth in subscription services.
The company's EBITDA loss improved by 12% to £3.8 million compared to £4.3 million in H1 2022. Its loss before tax came in at £6.2 million due to a one-off net impairment loss of £1.3 million on goodwill (linked to the sale of TruFin's stake in Vertus) and a depreciation and amortisation charge of £1.2 million.
TruFin remains well funded, with £7.8m cash, as at 31 August 2023. ·
Revenues at TruFin’s subsidiaries, Oxygen, Satago, Playstack and Vertus rose 8%, 180%, 7%, and 67% respectively. Oxygen’s core Early Payments revenue grew 20% to £1.8m, with 30% of Oxygen's EP clients purchased two or more products during the period.
Satago more than doubled revenues in the first half of the year to £1.7m, driven by LaaS income and increases in interest and fee income. TruFin said the migration of existing Lloyds Banking Group's factoring clients to the platform is already underway, and the majority of the factoring book is anticipated to be materially progressed during 2024.
Due to the huge success of Mortal Shell, which sold over a million units, Playstack has secured agreements for Mortal Shell 2 and 3, while also raising £7.6 million through a successful Placing and Open Offer to bolster the Group's working capital and secure the Mortal Shell franchise.
Additionally, TruFin conditionally accepted a cash offer for its Vertus shares, with ongoing due diligence and negotiations. If successful, the deal should close by year-end, bringing approximately £3.2m in cash proceeds.
View from Vox
TruFin has shown promising results across its four subsidiaries in 2023, most notably Oxygen and Satago. A successful fundraise in June will enable targeted additional investment in Playstack, Oxygen and Satago, maximising the equity value of the businesses.
A key driver to Oxygen’s success is its internal initiative to help clients purchase multiple products, which reaped rewards in the period, with 30% of Oxygen's EP clients purchasing two or more products in the first half.
Satago has continued its momentum post period, signing a letter of intent today with a UK challenger bank - covering the adoption of Satago's LaaS solution. This will enable the customer to offer invoice financing to its customers and to simplify and automate internal processes. In addition, to build on Satago's platform launch with Lloyds Banking Group and execute on the significant opportunities ahead, Satago has today agreed a £4m Convertible Loan Note with existing shareholders.
More broadly, Satago’s mission to empower SMEs to make better trading decisions has been timely given the current economic climate, which is seeing SMEs pay particular attention to business outgoings and therefore look to external solutions to help manage their cashflow.
Overall, TruFin’s strategy to partner and invest in businesses where they see long-term value has paid off in 2023, and the company points to a transformative reminder of the year for the business as it looks to maximise profitability across its four subsidiaries.
Follow TruFin for more News and Updates: