24th Mar 2020 18:32
(Alliance News) - TruFin PLC said Tuesday its businesses are "not short of opportunity" but it remains capital constrained due to the ongoing uncertainty caused by the coronavirus.
TruFin said it may remain capital constrained for the short to medium term, both as a result of Covid-19 and also as a result of ongoing uncertainty amongst potential lenders concerning the intentions of TruFin's largest shareholder, Arrowgrass Master Fund Ltd.
Arrowgrass announced in September 2019 that it would be closing its fund, leading in due course to the divestment of its investment positions.
"The group has recently been in dialogue with AMFL and AMFL has requested the appointment of a director representative, as per the relationship agreement agreed at the time of the TruFin IPO. A further announcement will be made in due course in respect of this matter," TruFin said.
For 2019, TruFin expects to report combined gross revenue of GBP7.3 million, 66% higher on 2018. But its pretax loss is expected to widen to GBP11.8 million from GBP9.8 million in 2018.
As of January 31, the company had GBP4.6 million in cash. Its businesses have assets of GBP3.5 million from Satago Financial Solutions' loan book; GBP2.0 million of net assets from Vertus Capital; and has a GBP13.9 million loan due from Distribution Finance Capital Ltd, payable in December 2020.
The TruFin group has no more than GBP3.3 million in near-term liabilities.
"TruFin has many dedicated employees who, despite the uncertainty, are striving to deliver on their ambitious targets. Although the full impact of the coronavirus has yet to be felt by the group, it will inevitably have an effect and we will update shareholders when we feel able to accurately measure the impact. I would like to thank our shareholders for their continued support," Chief Executive James van den Bergh said.
Shares in TruFin were untraded in London on Tuesday but last closed at 20.04 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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