TIDMSYME
RNS Number : 6128R
Supply @ME Capital PLC
30 June 2020
SUPPLY@ME CAPITAL PLC
(PREVIOUSLY ABAL GROUP PLC)
UNAUDITED SECOND INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE 12 MONTH PERIODED 31 MARCH 2020
SUPPLY@ME CAPITAL PLC (PREVIOUSLY ABAL GROUP PLC)
COMPANY INFORMATION
Directors Enrico Camerinelli
Susanne Chishti
Dominic White
Alessandro Zamboni
Secretary MSP Corporate Services Limited
27/28 Eastcastle Street
London
W1W 8DH
Company number 03936915
Registered office 27/28 Eastcastle Street
London
W1W 8DH
Auditor Grant Thornton UK LLP
Southampton Science Park
Southampton
SO16 7QJ
Broker Stanford Capital Partners Ltd
15-17 Eldon Street
London
EC2M 7LD
Solicitors Charles Russell Speechlys LLP
5 Fleet Place
London
EC4M 7RD
Bankers Metro Bank Plc
1 Southampton Row
Holborn
London
WC1B 5HA
Registrars Neville Registrars Limited
Neville House
Southampton
SO14 2JF
Public Relations Cicero/AMO
3 Pancras Square
London
N1C 4AG
Accountant Wilkins Kennedy
Carnac Place
Cams Hall Estate
Fareham
Portsmouth
PO16 8UY
Investor Relations Walbrook PR Ltd
4 Lombard Street
London
EC3V 9HD
Website www.supplymecapital.com
SUPPLY@ME CAPITAL PLC (PREVIOUSLY ABAL GROUP PLC)
CONTENTS
Page
Chairman's letter and Chief Executive report 1
Condensed consolidated statement of comprehensive income 5
Condensed consolidated statement of financial position 6
Condensed consolidated statement of changes in equity 7
Condensed consolidated statement of cash flows 8
Notes to the financial statements 9
SUPPLY@ME CAPITAL PLC (PREVIOUSLY ABAL GROUP PLC)
CHAIRMAN'S LETTER AND CHIEF EXECUTIVE'S REPORT
FOR THE 12 MONTH PERIODED 31 MARCH 2020
1. Chairman's letter
The highlight for Supply@Me Capital Plc (the Company or SYME) in
the 12 months to 31 March 2020 was the successful acquisition, via
a reverse takeover, of Supply@Me S.r.l. and a Main Market Listing
on the London Stock Exchange just prior to the period end.
Previous to this, the Company (formerly named Abal Group Plc)
traded on London's Alternative Investment Market (AIM). Pursuant to
AIM Rule 15, the Company became a cash shell on 5 February 2019
following the completion of the disposal of its core operating
business (known as Imaginatik), and trading in the Company's shares
was subsequently suspended on 6 August 2019. On 27 September 2019
the Company announced that it had entered into a conditional sale
and purchase agreement to acquire the entire issued share capital
of Supply@Me Srl. Cancellation of the admission to trading of the
Company's ordinary shares on AIM took effect on 7 February 2020, in
accordance with AIM Rule 41. The Main Market Listing of SYME
successfully completed on the 23 March 2020, eight days before the
end of this reporting period.
SYME is an early stage "FinTech" business which delivers an
innovative technology platform for inventory monetisation that
enables a wide range of manufacturing and trading customers to
improve their working capital position by releasing capital from
their inventory stock. SYME matches the working capital needs of
its customers with capital invested by its inventory funders.
Investors in SYME shares gain exposure to the fee income generated
by the platform from inventory monetisation. Inventory funders
invest in instruments that are secured on inventory portfolios. The
companies that can benefit from the SYME system are found across a
wide range of industry sectors including wholesale, retailing and
general industrials.
Notwithstanding the COVID-19 backdrop, the Board believes that
SYME's customer base remains strong and that the demand for
inventory monetisation is growing. Whereas Just In Time (JIT)
inventory strategies were previously the standard for manufacturing
and trading businesses, increasingly following COVID-19, many such
businesses are consciously choosing to build inventory to avoid
supply chain shortages and subsequent loss of trade. Manufacturing
locally rather than thousands of miles away and increasing
inventory held may become the new norm. The Company is aware that
retailers both on and offline are seeking suppliers who can
guarantee inventory levels through a combination of in-house
manufacturing, local production capabilities and higher levels of
stock held. This is positive development for SYME's business model
as companies will look to monetise the higher volumes of stock
being held.
The impact of COVID-19 on the inventory funding market is more
difficult to interpret, especially as interest rates are currently
at historic lows. SYME's inventory investment asset will offer a
relative positive margin compared to interest rates and many other
rate linked investments. However, investors are undoubtedly more
cautious, being less willing to move quickly into new asset
classes, so the risk premium attached to alternative investment
products has increased to reflect this. This theme will be
developed in the Chief Executive's report.
Despite COVID-19 we still remain extremely confident for the
future but as a result of the approximate three to four month delay
to our business plan caused by COVID-19 we are having to push back
our forecasts with a consequential impact on market
expectations.
2. Chief Executive report
The reverse take over (RTO) of Supply@Me S.r.l. into Abal Group
Plc completed in March this year. In the three months since and in
the midst of the COVID-19 pandemic, the Company has continued to
gain traction from its Inventory Monetisation Platform (Platform):
SYME has been focused on managing its booked inventory customer
portfolio (Originated Portfolio) and progressing inventory funding
initiatives (Inventory Funding).
Although the Company listed successfully in the midst of the
COVID-19 pandemic, this has undoubtedly had an impact, especially
on the main operating company, Supply@Me S.r.l. which currently
trades exclusively in Italy.
Performance in the remaining six months of the new financial
reporting period to September 30 2020 will very much depend upon
the success of European and domestic measures taken to combat
COVID-19 and their impact on the Italian economy and capital
markets.
Operational performance
On completion of the March RTO SYME reported funds raised by way
of a placing of new ordinary shares of GBP2.24m (before expenses).
The Company has utilised part of these proceeds, pursuant to its
strategy, to reinforce and develop its group structure including
the recruitment of a number of key personnel in strategic functions
(eg enterprise risk management), legal and technology investments
related to the Platform, communications (PR and IR) and development
costs for the inventory funding programme.
Client Companies: Originated Portfolio
The Originated Portfolio is defined as comprising a pipeline of
prospective contracts that have been originated with client
companies. At the date of the RTO the Originated Portfolio stood at
EUR972m and currently stands at EUR1.43bn.
At the date of this statement there are EUR555m of client
companies ready to be served / for execution. We expect a
significant proportion of these to be monetised once Inventory
Funding has been secured.
As outlined in the Chairman's letter, SYME anticipates higher
levels of demand for its services as the structure of the supply
chain moves to the new norm of higher inventory levels.
Funders: Inventory Funding
The Inventory Funding process delivers the capital that enables
the Platform to monetise its customers' inventory.
First Securitisation Programme
On 22 April 2020, SYME announced that it intends to issue a
series of asset-backed securities secured against inventories
purchased directly by SYME's special purpose vehicles. The
objective this securitisation programme is to cover, within 12
months and through multi-issuances, the whole of SYME's current
Originated Portfolio. This is subject to continual review as we
monitor how institutional investors react to moving into a period
coming out of lockdown.
SYME targeted Q2-Q3 2020 for its first note issuance. However,
the COVID-19 pandemic and resultant heightened levels of
uncertainty in capital markets, the increased cost of capital and
extended decision-making processes by investors, have meant that
this issuance inherently carries with it greater uncertainly of
concluding within Q3 2020, and an increased probability that it
could slip into Q4 2020. There will inevitably be an impact on the
rollout of our business plan and our forecasts by three to four
months and market expectations should adjust accordingly.
The Directors, however, remain firmly committed to working on
all initiatives to secure appropriate funding as soon as
possible.
Multi-channel funding strategy
In its Prospectus published in March the Company outlined its
strategy is to develop a number of funding opportunities such that
over time it will gain a diversified group of funders across a
range of investment programmes.
To accelerate the delivery of the Inventory Monetisation service
relating to the Originated Portfolio, in addition to the
securitisation programme, the Company is progressing bridge
financing lines secured on inventory with alternative lenders /
funders. Discussions have been started with various other strategic
funding partners.
Prospectus milestones
In addition to the Originated Portfolio and Inventory Funding
objectives, the key 2020 milestone noted in the Prospectus was to
commence operations in its first new geographical market outside of
Italy, by the end of Q3 2020. The Company confirms it is in
discussions to launch inventory monetisation operations in the
UK.
Technology Infrastructure
SYME is headquartered in London with a subsidiary in Milan. The
core technology team is based in Milan. Supply@ME Srl announced on
1 August 2019 a strategic partnership with SIA SpA which is
currently the core provider of the distributed ledger technology
(SIAchain) with respect to all the software modules of the
Inventory Monetisation Platform. SIA SpA is a European leader in
the design, creation and management of technology infrastructure
for Financial Institutions.
The Inventory Monetisation Platform accordingly aims to target
the same high-level standards of resiliency managed infrastructure,
at the date, by SIA with reference to its global technology
infrastructure.
Financial performance
Turnover in the twelve months to 31 March 2020 increased to
GBP416k (GBP241k : 2019). This resulted in a gross profit of GBP26k
(GBP145k : 2019). Exceptional costs of GBP224m have been written
off as a result of the treatment of goodwill and the accounting for
the transaction.
Material items within the consolidated statement of financial
position which merit comment include the following:
Prior to the completion of the reverse acquisition, the current
directors considered Supply@Me Capital plc did not meet the
definition of a business in accordance with IFRS 3. Consequently,
the reverse acquisition has not been accounted for as a business
combination, but as a share based payment.
On 23 March 2020, Supply@Me Capital plc completed the following
transactions, details of which are disclosed in the prospectus
dated 4 March 2020 (the Prospectus):
-- reverse acquisition of Supply@Me S.r.l., a company registered in Italy;
-- placing of 331,604,094 shares; and
-- admission to the Official List and trading on the London Stock Exchange's Main Market.
The transaction was effected by way of the issue of
consideration shares. Due to Supply@Me Capital plc effectively
having no substance, and that Supply@Me S.r.l. was acting as the
parent company, the consolidated Group is accounted for as a
capital reorganisation rather than a business combination. These
interim financial statements have been prepared, in consultation
with our accountants, on the basis that Supply@Me S.r.l. is the
accounting acquirer and Supply@Me Capital plc the accounting
acquiree.
As such, from an accounting perspective, the previous
comparatives, and any results prior to 23 March 2020 of Supply@Me
Capital plc have not been presented and the assets and liabilities
of Supply@Me S.r.l. have been recorded in the consolidated
financial statements at their pre-combination amounts.
This accounting policy is different to that set out in the
Prospectus dated 4 March 2020 in relation to the reverse takeover.
In the Prospectus, the unaudited pro-forma financial information
accounted for the transaction under IFRS 3 as a Business
Combination as described in section 2 of the Notes to the Financial
Statements.
The financial results of Supply@Me S.r.l. are included using its
original accounting year end namely 31 December as per IFRS 10,
relating to non co-terminous year ends.
SYME recently changed its accounting reference date to 30
September as announced in the RNS dated 23 June 2020. This change
is in line with the Board's intended strategy to align the
accounting reference date to the operations of the Group, which in
turn is aligned with the working capital cycles of our customer
base, being manufacturing companies that tend to build up stocks
during the year. The Group will publish audited accounts for the
18-month period from 1 April 2019 to 30 September 2020. Thereafter,
interim and annual reports will be published each year for the 6
months to 31 March and 12 months to 30 September respectively.
Directors' Responsibility Statement
The Directors are responsible for preparing the interim
financial statements in accordance with applicable law and
regulations. A list of current directors is maintained on the
Group's website: https://www.supplymecapital.com.
The Directors confirm that, to the best of their knowledge, the
interim financial statements have been prepared in accordance with
IAS 34 as adopted by the European Union, and give a true and fair
view of the assets, liabilities, financial position and profit or
loss of the Company, or the undertakings included in the
consolidation as a whole as required by DTR 4.2.4 R.
The Directors further confirm that the interim financial
statements include a fair review of the information required by DTR
4.2.7R and DTR 4.2.8R.
The Directors have shared all the relevant working papers with
their accountants and auditors.
However in accordance with the FCA's Disclosure and Transparency
Rule 4.2.9(2), the Directors confirm that these interim condensed
consolidated financial statements have not been audited or reviewed
by auditors pursuant to the Auditing Practices Board guidance on
Review of Interim Financial Information.
By Order of the Board
Alessandro Zamboni
Chief Executive Officer
SUPPLY@ME CAPITAL PLC (PREVIOUSLY ABAL GROUP PLC)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 12 MONTH PERIODED 31 MARCH 2020
12 months Year ended
to 31 March
31 March 2019
2020
Notes GBP '000 GBP '000
Revenue 4 416 241
Cost of sales (390) (96)
Gross profit 26 145
Administrative expenses (725) (130)
Exceptional costs 5 (224,478) -
Operating profit / (loss) (225,177) 15
Finance costs (132) -
Profit / (loss) before tax (225,177) 15
Taxation 6 (90) (4)
Profit / (loss) for the period / year (225,267) 11
========== ===========
Earnings per share (pence) 7 (8.95) n/a
12 months Year ended
to 31 March 31 March
2020 2019
Notes GBP '000 GBP '000
Profit / (loss) for the period / year (225,267) 11
Other comprehensive income
Foreign operations FX translation 6 -
Total comprehensive profit / (loss)
for the period / year (225,261) 11
============= ===========
SUPPLY@ME CAPITAL PLC (PREVIOUSLY ABAL GROUP PLC)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2020
31 March 31 March
2020 2019
Notes GBP '000 GBP '000
Assets
Non-current assets
Intangible assets 8 683 373
Investments - -
--------- ---------
683 373
Current assets
Trade and other receivables 1,781 293
Cash and cash equivalents 1,848 2
--------- ---------
3,629 295
--------- ---------
Total assets 4,312 668
========= =========
Equity and liabilities
Equity
Share capital 9 5,420 142
Reserves 10 (4,642) 12
--------- ---------
778 154
Current liabilities
Trade and other payables 3,481 514
Derivative financial instruments 53 -
--------- ---------
3,534 514
--------- ---------
Total equity and liabilities 4,312 668
========= =========
SUPPLY@ME CAPITAL PLC (PREVIOUSLY ABAL GROUP PLC)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 12 MONTH PERIODED 31 MARCH 2020
Foreign
Share Share Other Merger currency Retained
capital premium reserves reserves reserves earnings Total
GBP '000 GBP '000 GBP '000 GBP '000 GBP '000 GBP '000 GBP '000
B/f as at 1 April
2018 139 - - - - - 139
FX translation 3 - - - - - 3
B/f as at 1 April
2018 post FX translation 142 - - - - - 142
Profit for the
year - - - - - 11 11
FX translation - - - - - - -
differences
--------- --------- ---------- ---------- ---------- ---------- ----------
Total comprehensive
profit for the
year - - - - - 11 11
C/f as at 31 March
2019 142 - - - - 11 11
FX translation (8) - - - - (1) (9)
B/f as at 1 April
2019 post FX translation 134 - - - - 10 144
Loss for the period - - - - - (225,267) (225,267)
FX translation
differences - - - - 6 - 6
--------- --------- ---------- ---------- ---------- ---------- ----------
Total comprehensive
loss for the period - - - - 6 (225,267) (225,261)
Reverse takeover
of Supply@Me S.r.l. 5,286 235,317 38 135 - (14,881) 225,895
C/f as at 31 March
2020 5,420 235,317 38 135 6 (240,138) 778
========= ========= ========== ========== ========== ========== ==========
SUPPLY@ME CAPITAL PLC (PREVIOUSLY ABAL GROUP PLC)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE 12 MONTH PERIODED 31 MARCH 2020
12 months Year ended
to 31 March
31 March 2019
2020
GBP '000 GBP '000
Cash flows from operating activities
Profit / (loss) before income tax (225,178) 16
FX translation of foreign entities 3 -
Amortisation 113 93
Deemed costs of listing in reverse acquisition 224,478 -
(Increase) /decrease in trade and other
receivables (852) (245)
Increase /(decrease) in trade and other
payables 1,167 466
Other decreases /(increases) in net
working capital 266 (12)
---------- -----------
Cash flows from operations 3 318
Income taxes paid - -
---------- -----------
Net cash flows from operating activities 3 318
Cash flows from investing activities
Cash from Abal plc 105 -
Purchase of intangible assets (442) (466)
---------- -----------
Cash flows from investing activities (337) -
Cash flows from financing activities
Increase /(decrease) in short term bank
loans (2) 2
New loans 292 6
Net proceeds from issue of shares 1,896 142
---------- -----------
Cash flows from financing activities 2,186 150
Net movement in cash and cash equivalents 1,846 2
Cash and cash equivalents as at 1 April 2 -
Cash and cash equivalents as at 31 March 1,848 2
========== ===========
SUPPLY@ME CAPITAL PLC (PREVIOUSLY ABAL GROUP PLC)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 12 MONTH PERIODED 31 MARCH 2020
1. Company information
Supply@Me Capital plc is a public limited liability company
incorporated in England and Wales. The address of its registered
office 27/28 Eastcastle Street, London, W1W 8DH, United Kingdom.
Supply@Me Capital's shares are listed on the London Stock
Exchange.
The Interim Financial Statements have been approved for issue by
the Board of Directors on 30 June 2020.
2. Basis of Preparation
The Interim Financial Statements are for the 12 months ended 31
March 2020 and are presented in Sterling, which is the functional
currency of the Group. They have been prepared in accordance with
IAS 34 'Interim Financial Reporting'. They do not include all of
the information required in annual financial statements in
accordance with IFRS and should be read in conjunction with the
consolidated financial statements for the year ended 31 March
2019.
The Interim Financial Statements have been prepared in
accordance with the accounting policies adopted in the Group's most
recent annual financial statements for the year ended 31 March
2019, with the exception of the policies noted below.
In accordance with IFRS 10 Consolidated Financial Statements,
the condensed consolidated financial statements include the
financial results of Supply@Me S.r.l. at the accounting reference
date of 31 December 2019 (2019 - 31 December 2018) as it is
impracticable to present financial data as at 31 March for the
purposes of these interim financial statements. Supply@Me S.r.l. is
shortening the year end to 30 September 2020 so as to be
co-terminous with Supply@Me Capital plc in the consolidated
financial statements for the period ended 30 September 2020.
Prior to the completion of the reverse acquisition, as disclosed
in note 3, the current directors considered Supply@Me Capital plc
did not meet the definition of a business in accordance with IFRS
3. Consequently, the reverse acquisition has not been accounted for
as business combination, but as share based payment.
Significant changes in accounting policies
Revenue recognition
Revenues are recorded net of returns, discounts and rebates as
well as directly related taxes connected to the provision of
services.
Revenues for services are recognised on the basis of performance
and in accordance with the related contracts. Revenues relating to
contract work in progress are recognised proportionately with the
progress of the works.
Revenue is deferred where it relates to the provision of future
services and is subsequently recognised when key milestones are
reached.
Intangible assets
Intangible assets are recognised at their cost price plus any
associated costs of bringing the asset into use. Development costs
not meeting the criteria for capitalisation are expensed in the
period in which they are incurred.
Amortisation begins from the month the asset is brought into use
at the following rates:
Acquisition of company branch 20% straight line
Software development 20% straight line
Research and development 20% straight line
Legal project development 20% straight line
Website and marketing 20% straight line
At the end of each accounting period the Group assesses the
recoverable amounts of intangible assets. Where there is an
indication of impairment, an impairment loss is recognised for the
amount by which the assets carrying value exceeds its recoverable
amount. Impairment losses are recognised in the profit and
loss.
New and revised accounting standards and interpretations
IFRS 16 Leases became effective for annual periods beginning on
or after 1 January 2019. The Directors have considered the impact
of this new standard in the preparation of these interim
statements. At this time, the group does not have any lease
arrangements and therefore no adjustments are considered necessary
as a result of this new standard.
3. Significant changes in the current reporting period
On 23 March 2020, Supply@Me Capital plc completed the following
transactions, details of which are disclosed in the prospectus
dated 4 March 2020:
-- reverse acquisition of Supply@Me S.r.l., a company registered in Italy;
-- placing of 331,604,094 shares; and
-- admission to the Official List and trading on the London
Stock Exchange's Main Market (Standard list).
Shares were issued pursuant to the reverse acquisition of
Supply@ME Srl on the basis of an independent professional valuation
commissioned by the Board on behalf of the Company that ascribes to
such consideration shares an issue price of GBP0.006945 per
consideration share as described in the prospectus.
The transaction was effected by way of the issue of
consideration shares. Due to Supply@Me Capital plc effectively
having no substance, and in fact Supply@Me S.r.l. was acting as the
parent of the Group, the consolidated Group is accounted for as a
capital reorganisation rather than a business combination. These
interim financial statements have been prepared on the basis that
Supply@Me S.r.l. is the accounting acquirer and Supply@Me Capital
plc the accounting acquiree.
As such, from an accounting perspective, the previous
comparatives, and any results prior to 23 March 2020 of Supply@Me
Capital plc have not been presented and the assets and liabilities
of Supply@Me S.r.l. have been recorded in the consolidated
financial statements at their pre-combination amounts.
4. Revenue and operating segments
There is one continuing class of business, being the investment
in the financial technological sector. Given that there is only one
continuing class of business, operating within Italy no further
segmental information has been provided.
5. Exceptional costs
12 months Year ended
to 31 March 31 March
2020 2019
GBP '000 GBP '000
Deemed cost of listing 224,845 -
============= ===========
As explained in note 2, the reverse acquisition of Supply@Me
S.r.l. does not meet the requirements of IFRS 3 Business
Combinations so has been accounted for under IFRS 2 Share Based
Payments. Under IFRS 2, the "goodwill" element of the transaction
is expensed as the deemed costs of obtaining the listing.
6. Taxation
Income tax liabilities for the period to 31 March 2020 have been
estimated at the prevailing rates applicable in each
jurisdiction.
7. Earnings per share
The calculation of the Basic earnings per share (EPS) is based
on the loss attributable to equity holders of the parent for the
period of GBP225,267,000 divided by the weighted average number of
ordinary shares in issue of 2,516,584,573. No EPS comparative is
provided as the share capital of Supply@Me S.r.l. is not made up of
distributable shares.
8. Intangible assets
Acquisition of Software Legal project Website and
company branch development R&D development marketing Total
Cost
At 1 April 2019 461 - - - - 461
Additions - 189 159 88 26 462
At 31 March 2020 461 189 159 88 26 923
------------------- ------------------- ---- ------------------- ------------------- ------
Amortisation
At 1 April 2019 115 - - - - 115
Charge for the year 69 4 14 5 2 94
At 31 Mach 2020 184 4 14 5 2 209
------------------- ------------------- ---- ------------------- ------------------- ------
Net book value
At 31 March 2020 277 185 145 83 24 714
=================== =================== ==== =================== =================== ======
At 31 March 2019 346 - - - - 346
=================== =================== ==== =================== =================== ======
9. Share capital
Allotted, called up and fully paid shares
2020 2019
No. GBP '000 No. GBP '000
Ordinary shares
of GBP0.00002
each 32,754,944,590 655 - -
Deferred shares
of GBP0.04
each 63,084,290 2,523 - -
2018 deferred
shares of
GBP0.009998
each 224,193,710 2,241 - -
Capital of
Supply@Me S.r.l. - - - 136
Total 33,042,222,590 5,420 - 136
New shares allotted
On 23 March 2020, the Group completed a reverse acquisition
transaction with Supply@Me S.r.l. It was considered that Supply@Me
S.r.l. was the accounting acquirer in the transaction and so the
comparative share capital is that of Supply@Me S.r.l. Upon
completion of the transaction, the share capital of Supply@Me
Capital plc has been disclosed, to represent that of the legal
acquirer. 32,322,246,220 ordinary shares were issued as
consideration.
Also on 23 March 2020, 331,604,094 ordinary shares were issued
through a placing which raised gross proceeds of GBP2,240,000.
10. Reserves
Analysis of the movement in reserves is disclosed in the
Statement of Changes in Equity on page 7.
11. Related party transactions
With reference to the RTO as detailed in the prospectus, the
following are treated as related parties:
The AvantGarde Group SpA
The AvantGarde Group currently holds 72.95 per cent of the
shares in Supply@Me Capital plc.
Previous to the date of the RTO:
-- The AvantGarde Group SpA had provided a loan to Supply@Me
S.r.l. of GBP318,049. As at 31 March 2020 the amount due to The
AvantGarde Group SpA was GBP318,049 (2019 - GBPnil); and
-- The AvantGarde Group SpA had paid various costs on behalf of
Supply@Me S.r.l. As at 31 March 2020 the amount due to The
AvantGarde Group was GBP204,556 (2019 - GBP154,671).
The shareholders of the AvantGarde Group SpA are as follows:
-- iWEP Ltd, iWolf Ltd and White Amba LLP
iWEP controls more than 20 per cent. of the share capital of The
AvantGarde Group and is wholly owned by iWolf and White Amba. The
beneficial owner of iWEP, iWolf and White Amba is Dominic
White.
-- Orchestra Group, AZ Company Srl and AvantGarde 4.0 Srl
Orchestra Group SpA controls more than 20 per cent. of the share
capital of The AvantGarde Group SpA and is controlled by AZ Company
Srl and AvantGarde 4.0 Srl.
-- Finance Partners Group SpA
Finance Partners Group SpA owns 17.66 per cent of The AvantGarde
Group SpA.
Eight Capital Partners Plc
Eight Capital Partners Plc is a current shareholder in the
Company, holds a 40 per cent interest in Finance Partners Group SpA
and additionally has Dominic White on its Board.
Epsion Capital Ltd
Epsion Capital, is a wholly owned subsidiary of Eight Capital
Partners Plc and conducted the placing for the RTO.
Dominic and Susan White
Dominic White is on the Board of The AvantGarde Group as well as
holding numerous directorships across companies that are related
parties (iWEP Ltd, iWolf Ltd, White Amba LLP and Eight Capital
Partners Plc).
Alessandro Zamboni
Alessandro Zamboni is on the Board of The AvantGarde Group SpA
as well as holding numerous directorships across companies that are
related parties (AZ Company Srl).
12. Dividends
During the twelve month period to 31 March 2020, the Company did
not pay a dividend.
The Directors do not foresee a dividend being payable in the
next financial year as the Group will be concentrating on growing
its market share and enhancing its technology and capabilities.
13. Going Concern
The financial statements have been prepared on a going concern
basis following an assessment by the Directors.
When making this assessment the Directors have taken into
consideration the substantial, downward movements in world equity
markets since late February 2020. Market volatility and uncertainty
is expected to continue for some time, due to the COVID-19 and the
effect of measures taken to combat it.
Having conducted cash flow and working capital projections,
taking account of the impact of further possible adverse changes in
the current economic climate, the Directors are satisfied that the
Group is able to manage its current business risks.
Accordingly, the Directors do not believe a material uncertainty
currently exists that would have an effect on the going concern of
the Group and have prepared the financial statements on a going
concern basis.
Clearly, as an early stage business, SYME's financial strength
depends on two key factors: Inventory Funding and matching this
funding to an inventory customer base. Its ability to continue as a
going concern will be determined by its success in these two
areas.
14. Principal Risks and Uncertainties
Following the onset of the COVID-19 pandemic, we implemented a
number of business continuity measures. In particular, following
the Government announcement on 24 March 2020 that the public should
not leave homes to travel to work if they could work at home, we
limited office attendance to short visits by essential IT
colleagues and other key workers necessary to maintain the
continuity of operations and systems. All other staff support the
business through remote home working.
The pandemic has created many uncertainties and we have adapted
the business rapidly to reflect the sudden change in its risk
profile. This has resulted in changes to our operational risk
profile. However, in other respects the key risks and uncertainties
associated with our strategic objectives remain broadly the same.
An overview of those risks, along with the associated risk
management and controls, follows:
Increased operational risk
The remote working of staff and the inaccessibility of the
Group's normal offices in Italy and London presents heightened
operational risks. The extent of use of remote IT access has
increased threat of external fraud and cyber-attack. Our critical
business services have been reviewed and, in some instances, it has
been necessary to amend the usual routines and procedures.
Early-stage business
Supply@ME is still at an early stage of its development and has
not generated material revenues from its operations to date. The
generation of revenues is difficult to predict and there is no
guarantee that the Group will generate significant revenues in the
foreseeable future. There are a number of operational, strategic
and financial risks associated with early stage companies.
Supply@ME faces risks frequently encountered by smaller, growing
companies seeking to bring new products and services to the market.
There can be no assurance that the prospective agreements being
discussed with potential funders will complete at the expected
level or at all, which would materially and adversely affect
Supply@ME's ability to provide its inventory monetisation service,
or even if such funding were to be forthcoming, there can be no
assurance that sufficient numbers of corporate customers would use
the service to assure Supply@ME's growth or viability in the
future.
If the Group is unable to maintain or increase originations
through its Platform or if existing customers or funders do not
continue to participate on its Platform, its business, results of
operations, financial condition or prospects will be adversely
affected.
To grow its business, the Group must increase originations
through its Platform by attracting and retaining new and existing
trading and manufacturing companies who meet its working capital
needs in the different territories where the Group intends to
operate, as well as new and existing funders interested in
investing into Supply@ME's securitisation notes.
The Group's operations are also reliant on sufficient investor
funding. The Group's ability to attract funders to its Platform and
secure sufficient funding from investors depends on, among other
things, its ability to provide attractive investor returns and
corresponding appropriate liquidity, compliance with the terms and
conditions of funding agreements with investors.
Any of these events could have a material adverse effect on the
Group's business, results of operations, financial condition or
prospects.
The Group's success and future growth depend significantly on
its successful marketing efforts, increasing its brand awareness,
and its ability to attract new funders and customers.
Supply@ME's current business model involves the substantial
majority of its funders and customers being acquired via direct and
indirect channels. The Group's success and future growth therefore
depend significantly on its marketing and sales efforts and its
ability to attract new customers to the Platform. The Group intends
to dedicate significant resources to its marketing efforts,
particularly as it continues to grow and expand into new
territories. The Group's ability to attract funders and customers
(trading and manufacturing companies) depends in large part on the
success of these marketing efforts and the success of the marketing
channels the Group uses to promote its Platform.
The supply chain financing market is competitive and
evolving.
Although Supply@ME provides an alternative platform focused on
inventory monetisation (the innovation is that, for customers the
transaction is not, strictly speaking, a financing transaction),
the Group competes with lenders and lending platforms, as well as
financial products, that attract borrowers, investors or both. With
respect to borrowers, the Group primarily competes with traditional
financial institutions, such as banks, asset based lenders, online
platforms and captive networks. With respect to investors, the
Group primarily competes with other investment vehicles and asset
classes offered by a large number of financial and other
institutions.
Contacts
Dominic White, Non-Executive, Chairman
Alessandro Zamboni, CEO
Paul Vann, Walbrook +44 (0)20 7933 8780
Brian Norris, Cicero/AMO +44 (0)20 7947 5317
Cautionary Statement
These Interim Results have been prepared in accordance with the
requirements of English Company Law and the liabilities of the
Directors in connection with these Interim Results shall be subject
to the limitations and restrictions provided by such law.
These Interim Results are prepared for and addressed only to the
Company's shareholders as a whole and to no other person. The
Company, its Directors, employees, agents or advisers do not accept
or assume responsibility to any other person to whom these Interim
Results are shown or into whose hands it may come and any such
responsibility or liability is expressly disclaimed.
These Interim Results contain forward looking statements, which
are unavoidably subject to risk and uncertainty because they relate
to events and depend upon circumstances that will occur in the
future. It is believed that the expectations set out in these
forward looking statements are reasonable but they may be affected
by a wide range of variables which could cause future outcomes to
differ from those foreseen. All statements in these Interim Results
are based upon information known to the Company at the date of this
report. Except as required by law, the Company undertakes no
obligation to publicly update or revise any forward looking
statement, whether as a result of new information, future events or
otherwise.
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
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR BRGDLUBXDGGG
(END) Dow Jones Newswires
June 30, 2020 13:34 ET (17:34 GMT)
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