SUPPLY@ME CAPITAL PLC (PREVIOUSLY ABAL GROUP PLC)
UNAUDITED SECOND INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
FOR THE 12 MONTH PERIOD ENDED 31 MARCH 2020
COMPANY INFORMATION
Directors
Enrico Camerinelli Susanne Chishti Dominic White Alessandro Zamboni
SecretaryCompany number
MSP Corporate Services Limited 27/28 Eastcastle Street
London
W1W 8DH
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
COMPANY INFORMATION
Accountant
Wilkins Kennedy Carnac Place Cams Hall Estate Fareham Portsmouth PO16 8UY
Investor Relations
Walbrook PR Ltd 4 Lombard Street London
Website
EC3V 9HDwww.supplymecapital.com
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 |
CHAIRMAN'S LETTER AND CHIEF EXECUTIVE'S REPORT
FOR THE 12 MONTH PERIOD ENDED 31 MARCH 2020
1. Chairman's letter
The highlight for Supply@Me Capital Plc (theCompanyorSYME) 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.
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Disclaimer
Supply@ME Capital plc published this content on 30 June 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 July 2020 10:53:02 UTC