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A revolution in inventory monetization
Supply@ME Capital PLC (LSE: SYME) offers a fin tech platform that revolutionizes the way companies view the “supply chain capital” model. Rather than acting as a lender, Supply@Me acts as a pure service provider in this revolutionary inventory monetization model, one which offers a wide array of manufacturing and trading businesses, the chance to upgrade their financial position by using their inventory to secure funds.
Supply@Me – The Inventory Monetization Model
The Supply@Me financial model, utilizes a fintech platform that pairs funders of capital with companies in need of capital. Covering a wide array of industry sectors, it works with a proprietary model, to facilitate a “true sale” of the inventory to special purpose vehicles (“stock companies”) which are incorporated by Supply@ME – also known as the service provided.
Essentially, the “stock companies” or special purpose vehicles are created from inventory and are part of a securitization program for the various client companies seeking funds. For investors, the incentive is a diversification of their asset classes. The difference between this and other financial stock-based lending models, is Supply@ME is operating as a pure service provider, rather than a lender liaison through its balance sheet. Included in the revolutionary fintech service, are several risk analysis methodologies and transparent, real time technologies (blockchain) that are managed with the aim of making Supply@ME the best, most secure model that any fintech corporation has to offer, especially in terms of digitizing the inventory data and tracking it all in real time. The inventory model is most often used by client companies on a multi-year basis.
Broken down, it works, in what seems like a simple exchange, but that is primarily because the robust technology provided by Supply@Me whittles down the process to a few simple steps, and takes the guesswork out of the legal and/or monitoring of inventory, to ensure no breach.
Supply@Me – The Breakdown:
The client chooses part of its inventory to list and “digitizes” it on Supply@Me by using the inventory platform. The inventory is assigned a token (value) and given a digitized certificate, which is then turned into a value generating asset. Exchange the certificate for an investment and receive capital. Essentially, the service in a nutshell, uses the proprietary platform to match digitized notes with funders (across a wide array of industries), all of whom seek to diversify and make an investment in inventory. By purchasing back your supplies, the certificate is made whole and extinguished. The platform uses private block chain technology and a strict legal format, allowing for immutable, transparent, and entrusted transactions.
Different from most stock loan models, this new age fintech solution, offers more benefits including in part, that the inventory remains on the client/company premises. In terms of its demand, it has satisfied a growing need for clients. Since mid-March 2020, it has taken off with jet propulsion. And, given the current climate, companies are desperate to “unencumber” working capital, and free up liquidity.
Supply@Me – Now Public on the LSE
The trajectory of a winning company
Supply@ME went public on the London Stock Exchange in March 2020. Although the company was in operation years before that, a reverse takeover by ABAL Group, changed the game for the newly listed fintech darling. (Note: the former operations management of ABAL are unaffiliated with Supply@ME).
The Company Trajectory in Milestones
Supply@ME has reached an important precipice, at least in terms of its business development. Sitting at the top of the mountain, the sky is the limit – so says the financial data!
If one is to peruse the upward trajectory just since 2014, the evidence is clear that this company is headed for giant growth into 2021.
With the reverse takeover in 2020 and the rollout of a robust legal format & fintech structure, the company has turned a corner, heading into the next chapter of expansion, all of which is happening quite rapidly. With the release of the marketing of the first securitization notes in the second quarter of 2020, the shares soared and isn’t likely to slow any time soon.
The following timeline succinctly lays out the company’s epic rise since 2016:
- 2016 — First pilot project rolling out the inventory monetization (with an electronic goods company)
- 2017 – 2018 — More projects to follow
- 2018 — Supply@ME establishes itself as a separate entity (within the AvantGarde Group) via a NewCo structure
- 2019 — Supply@Me Capital partners with Partnership with SIA SpA to extend the technology platform. In compliance with SIA SpA, also implemented a completion of the new legal structure with a scalable securitization framework
- March 2020 — After a reverse takeover deal with ABAL Group, Supply@ME attains a LSE stock market listing
- April 2020 — Supply@ME engages StormHarbour Securities LLP to manage the distribution and placing of securitization notes.
- August 2020 – Partners with Middle East group to expand in the region
- September 2020 – Partners with Italian investment group to expand in Europe
A Partnership with SIA Translates to More Revenue
SIA – A Leader in Design and Technology for Financial Entities
A subsidiary of CDP Equity, SIA is the leader (throughout Europe) of design, creation and management of technology infrastructures and services for Financial Institutions, Central Banks, Corporates and the Public Sector, especially financial and payment platforms. SIA Group provides its services in 50 countries and operates through subsidiaries in several Eastern European nations as well as South Africa.
Supply@Me’s recent partnership with the tech design group, not only gives the newly listed company credibility throughout the European nations and globally, but also allows Supply@ME to leverage the SIAchain system, which is a distributed ledger infrastructure and now part of the blockchain feature of the Supply@ME system. This unique component enables for legally binding inventory transfers and assured trust to all parties involved. Supply@ME now has an unparalleled level of security that includes undeletable tracking of all listed inventory on consignment, all of which breeds trust for the interested parties.
Financial Forecast of a Winning Fintech Model
Supply@Me Capital (LSE:SYME) CEO Alessandro Zamboni, recently released a statement to the industry on the latest trajectory of the skyrocketing brand. After inking a deal with a Middle East investment company for its first pilot in the region, and as part of a scheduled rollout of its inventory monetization platform, Zamboni elaborated on how the Middle East program would work in the region. In his statement, he linked the recent expansion to the financial forecast for the coming year. The deal meant for Supply@Me, a partnering with Khaled Abdulla Almass and his investment firm. The Middle East entity is in place to facilitate the company’s expansion into the market. Touted as “a first step” in rolling out the unique platform across many regions in the Middle East, in addition, Supply@Me Capital PLC also formed a formidable alliance in September, with an investment firm in Italy, Epic SIM.
According to Zamboni, the expectation based on current inventory, partnerships, and an increased demand, is a substantial uptick in revenue for Supply@ME by year’s end, described as exponential growth. Said the change maker, in part, “we have limited incremental costs to be incurred,” … the forecast is a major increase in revenue as all indicators point to “a strong level of profitability for the company in the full-year ending March 2021 (the takeover dating back to March 2020), with exponential growth in the coming years.”
Supply@ME Capital – A Revolutionary Model
Outlook: A Revenue Uptick Forecasted for 2021
Based on a delivery schedule, demand, and current inventory revenue and notes issued, Supply@ME will incur a substantial uptick in revenue by the last quarter of 2020. Successful delivery of all in house supplies as well as the steady performance on the LSE, should attract more corporate clients as well. A favorable indicator of growth in revenue over the next five years.
The following chart shows a forecast for revenue and profit for the years 2020-2023.
Supply@ME growth outlook – year’s end is March 2021.
Source: Proactive Research
Supply@Me – The Benefit to Companies
Access to working capital is an ongoing concern for companies across a wide array of industry sectors, but particularly for those companies that hold large amounts of inventory. In order to sell, the company needs to have inventory at the ready, but in order to have that, money must be allocated for purchasing inventory, tying it up and leaving little access to liquidity. The inventory vs. sales issue is a very real problem faced by many company owners.
The following is an inventory and days held model for various industries and charted by Supply Chain Digest:
- Aerospace and defense — 47 days
- Speciality chemical — 40 days
- Food retail and wholesale — 23 days
- Diversified industrials — 42 days
- General retail (non-food, non-apparel) — 62 days
So, as the statistics indicate, a company may have several months’ worth of sales, sometimes a full year, tied up in the inventory. And, this doesn’t include any other capital encumbrances. Thus, the demand for this fintech solution is high.
By partnering with Supply@Me and listing inventory on the fintech site, the technology allows businesses to reduce their “inventory days held” time span, and free up capital resources that can be used to improve and build other parts of the business.
The client company holds its inventory and retains a customer base. Supply@ME forms a “a stock company’ for a special purpose use. This “stock” entity buys the inventory; the client company retains the inventory on the premises. The purchase is financed by the issue of digitized securitization notes, now referred to as an asset-backed investment instrument.
Investors buy the securitization notes, receiving an interest payment, known as a coupon in bond market terminology, and receive their principal back when the inventory is sold to its end customer.
The Inventory Platform – Transparency for both Client and Funder
Robust Technology
The Supply@ME robust technology offers an inventory monitoring platform. It provides a unique set of legal & digital capabilities that easily facilitates the transfer of ownership and the real-time, transparent monitoring of the inventory.
The platform enables a legally regulated, digitized certificate of said physical inventory. This certificate forms the basis for the transfer of funds to the client company and eliminates the need for the physical transfer of inventory or premises seizure of property as security – an update fintech model of inventory monetization. The inventory is tracked based on an initial overview of client inventory controls. With its state-of-the art tracking technology, Supply@Me creates a permanent record of transactions and an intuitive interface between the client company and the database. For legal and security purposes, this allows Supply@ME to monitor the progress of inventory as it moves toward a sale and establishes computerized algorithmic triggers for any breach of terms or losses. From the listing of inventory to the tracking and transfers, all the transactions are monitored and transparent.
Supply@Me – A Rocket Rise in 2021
Based on the forecasting, current income statements, new partnerships, demand, and current notes, Supply@ME is on track for a rocket rise in 2021. If Supply@ME is viewed as a pure service provider, and part ICT (information and communications technology) company, part asset manager overseeing investments of inventory on behalf of the funders, then there is no indicator of a slowdown when viewing the demand for the service provided by this fintech innovator.
The following tables provided by proactive research, summarize their determination of the financial forecasts for Supply@ME Capital
Income Statement
Source: Proactive Research
Balance Sheet
Source: Proactive Research
Cash Flow
Supply@Me Capital PLC – Delivering Results
The clear evidence suggests that Supply@ME, is on course to realize significant revenue growth by the end of its “first” year – March 2021.
Since the reverse takeover and subsequent growth, Supply@ME is poised for rapid expansion and an uptick of revenue. Currently, Supply@Me is working with €1.3b in inventory holdings. A number likely to grow given its recent winning trajectory and increased demand, not to mention valuable expansion happening in the Middle East and throughout Europe. All eyes in the fintech industry are on Supply@Me, and with good reason!
Nice article apart from its just a clone from the Pro active research and has outdated figures.
SYME beat those 2024 targets and have doubled them by year end on current business being worked on.