TIDMTRU TIDMTRU
RNS Number : 9916G
TruFin PLC
29 July 2019
29 July 2019
TruFin plc
("TruFin plc" or the "Company" or together with its subsidiaries
"TruFin Group" or the "Group")
RESTRUCTURING AND UPDATE
The Company is pleased to announce that it has undergone a
restructuring, with Head Office costs of the Company expected to be
reduced by approximately 35% on an annualised basis to better
reflect the Company's activities as well as the reduced size of the
TruFin Group. These actions confirm, and build upon, previous
commitments made at the time of the demerger of Distribution
Finance Capital Limited ("DFC") in May 2019.
Additionally, and in keeping with the Company's strategy of
building a stable of niche lenders, the Directors are also pleased
to announce the conversion into ordinary shares of the existing
GBP3.65 million convertible loan held in Vertus Capital Limited
("Vertus") in full satisfaction and discharge of the loan. This,
together with a further cash payment of approximately GBP355k, has
resulted in the Company's wholly-owned subsidiary, TruFin Holdings
Limited, becoming the 51% controlling shareholder in Vertus. Vertus
is a funding provider to the Independent Financial Adviser ("IFA")
sector and the Directors consider Vertus to be best in class with
significant opportunities arising from a sector trend of
consolidation.
The Vertus transaction announced today, together with the recent
disposal of DFC via a stock market listing and the Zopa stake sale,
collectively demonstrate the Company's continued commitment to its
strategy of growing its businesses and subsequently exiting them
when it is in the interests of the Company's shareholders.
Restructuring
-- Peter Whiting is stepping down from his position as an
Independent Non-Executive Director with effect from 31 July 2019.
The remaining Independent Non-Executive Directors will assume
responsibility for Peter's existing roles.
-- Head Office personnel is being reduced materially with
certain personnel either departing or being transferred to Satago
Financial Solutions Limited ("Satago"), a Company subsidiary.
-- Raxita Kapashi, Chief Financial Officer and a director of the
Company, and Jason Rogers, Chief Operating Officer, will depart the
Company with effect from 31 July 2019. James Hussey, Chief
Financial Officer of Satago, will assume Raxita's responsibilities
as the Company's Chief Financial Officer in addition to his role at
Satago. James will not currently be joining the Board of the
Company.
-- These measures are expected to result in on-going annualised
Head Office savings of approximately 35%. The costs associated with
this restructuring have been absorbed within the guidance provided
to the market at the time of the DFC demerger.
The Company would especially like to thank Peter Whiting, Raxita
Kapashi and Jason Rogers for their considerable efforts during what
has been a busy and fast evolving period for the Company since its
inception. We wish them every success for the future.
In addition, the Company felt it appropriate to change its
auditor and as such is in the process of changing from Deloitte LLP
to Crowe UK LLP. The Directors would like to thank Deloitte for all
their work during and since the Company's IPO.
Conversion of Vertus Convertible Loan
-- The Company is pleased to announce that it has converted its
GBP3.65m convertible loan into ordinary shares in Vertus Capital
Limited in full satisfaction and discharge of the loan. This,
together with a further cash payment of approximately GBP355k has
resulted in the Company's wholly-owned subsidiary, TruFin Holdings
Limited, owning 51% of Vertus' issued share capital.
-- Vertus provides succession finance for the IFA sector via its
exclusive collaboration agreement with IntegraFin plc.
-- Vertus expects that it will shortly secure a larger debt
facility allowing it to continue to serve its large and growing
pipeline.
-- Vertus had a loan book of over GBP6m at 30 June 2019 and
revenues for the year to 30 June 2019 of approximately GBP600k
(unaudited).
-- Vertus has a robust pipeline providing an exciting platform
for growth in the immediate future. The business aims to provide
new facilities of over GBP20 million in the coming twelve months
representing annualised growth in excess of 200%.
-- Vertus made a pre-tax loss before interest of GBP219k
(unaudited) for the year ended 30 June 2019, but the Company
expects that Vertus will turn profitable during 2020.
Commenting on the conversion, Matt Marais, Chief Executive
Officer of Vertus Capital Limited, said:
"Having worked with TruFin for the last 24 months we are very
pleased at their decision to convert into becoming a majority
shareholder. This, combined with the new debt facility we are
expecting to secure shortly, will ensure that we can service the
significant demand for our highly attractive proposition".
Commenting on the conversion, Henry Kenner, Chairman and Chief
Executive Officer of TruFin plc said:
"We are very happy to be supporting Vertus as they continue to
scale their lending pipeline. We have every faith in Matt and his
team and look forward to helping him build a highly attractive
niche lender".
Future Updates
The Company plans to announce interim results for the six months
ended 30 June 2019 in September 2019 and will provide a detailed
update on current trading at that time.
In addition, the Company proposes to hold an Investor Day in the
fourth quarter to present in more detail the exciting prospects for
its ongoing businesses.
Conclusion
Following the demerger of DFC, the Company remains focused on
continuing its strategic journey of creating a stable of niche
lenders whilst also recognising the new business paradigm that
activities at a Group level have been currently materially
reduced.
The Directors consider the steps taken today to be appropriate
and help ensure the continued development of the Company. Equally,
as the Company sees its businesses move towards maturity the
Directors retain a proactive and pragmatic approach towards
disposal opportunities and related further returns of capital over
the next 24 months so as to ensure that shareholder value is
maximised for the benefit of all our shareholders.
For further information, please contact:
TruFin plc
Henry Kenner, Chief Executive Officer
James van den Bergh, Deputy Chief Executive Officer 0203 743 1340
Macquarie Capital (Europe) Limited (NOMAD and joint
broker)
Alex Reynolds 0203 037 2000
Liberum Capital Limited (Joint broker)
Chris Clarke
Trystan Cullen
Louis Davies 0203 100 2000
The information contained within this Announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No.596/2014. By the publication of
this Announcement via a Regulatory Information Service, this inside
information is now considered to be in the public domain. The
person responsible for arranging for the release of this
Announcement on behalf of the Company is Annie Styler.
About TruFin plc:
TruFin plc is the holding company for an operating group of
companies that are niche lenders and early payment providers.
TruFin Group combines the benefits of both the traditional
relationship banking model and developments in the fintech sector.
The Company was admitted to AIM in February 2018 and trades under
the ticker symbol: TRU. More information is available on the
Company website www.TruFin.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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