TruFin (TRU) , a fintech-focused investment company, issued a trading update for the 12 months to December 31 2023 (FY23).
TruFin expects adjusted loss before tax to be in line with expectations at no more than £6.3m, compared to £8.2m in FY22. Adjusted EBITDA loss is expected to exceed forecast at £3.0m, representing an 47% improvement year-on-year, compared to last year's £5.7m.
Group revenue is expected to be no less than £20.2m, representing 32% growth from £15.3m in FY22. Group revenue is below expectations due to significant platform deals at TruFin's gaming subsidiary Playstack that are taking longer to conclude than anticipated. However, Playstack expects to deliver EBITDA profitability in 2023 as previously targeted, supported by the launch of The Last Faith game title in Q4.
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Overall, a positive update from TruFin, reporting significantly narrowed adjusted pretax loss and adjusted EBITDA loss for FY23. Group revenues are expected to grow by 32%, but miss previous forecast due to delays in finalising Playstack's platform deals. However, Playstack is still expected to deliver EBITDA profitability in FY23.
Elsewhere in the portfolio, Satago Financial Solutions and Oxygen Finance Group performed in line with expectations in 2023. TruFin said the subsidiaries "continued their operational and financial progress", with a fuller trading update expected in the coming months.
After disposing of Vertus, TruFin made significant investments in Oxygen, Satago and Playstack. Following the recent acquisition of bidstats.uk, Oxygen is solidifying its market position and set for material growth in the years ahead. Similarly, Satago is successfully migrating existing Lloyds clients and attracting significant interest in its infrastructure from a growing number of UK and overseas banks.
TruFin reiterated market expectations for 2024 and beyond. Cash at year-end was no less than £9m, of which unrestricted cash was no less than £5.5m, and the group is fully funded to profitability.
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