RE: That might explain big buys.....29 Sep 2020 13:56
Agreed there.
" 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. "
https://www.marketscreener.com/quote/stock/SUPPLY-ME-CAPITAL-PLC-44458528/news/Supply-ME-Capital-UNAUDITED-SECOND-INTERIM-CONDENSED-CONSOLIDATED-FINANCIAL-STATEMENTS-30854796/