Member Info for richred_uk

"Could it be that a company in UK is now being funded by an institution registered in Italy hence the shift in pipeline values?"

I don't think so. It refers directly to the value of inventory held by "client companies". Here's the whole paragraph:

"United Kingdom

Origination in the UK has slowed in line with the market indications that corporates are trying to optimise their cost of funding and the availability of dedicated inventory funding programmes by the CH Trading Hub. As Supply@ME continues to onboard the existing pipeline and build its track-record, this will unlock further related client company opportunities in UK. Client companies from the UK included in the overall pipeline KPI have inventory equivalent to £1.8 million as at 19 April 2024, (£212.1 million as at 21 April 2023). The New LoI pipeline number is £1.8 million."

It hadn't occurred to me before, but the UK IM that was announced but hadn't happened yet per an earlier update - I don't know if that is the remaining £1.8M under LoI, or if that has now happened and is therefore not in the pipeline or if it has died completely.

I am not taking them from the SYME website, I am taking them from yesterday's RNS.

https://www.lse.co.uk/rns/SYME/2023-annual-report-and-accounts-8zpyiufqm3hvhow.html

Not sure if LSE will block the above link which is to the RNS on this website. If you go to yesterday's RNS and search for the text in quotes from my posts, they are direct cut and pastes from the RNS.

Oh, in case it wasn't clear, the quotes/ numbers etc are all from the 2023 Annual Report and Accounts RNS released 1/5/24

"Can you be more specific in sharing the link where it claims there was a 99% shift from UK to Italian clients, cheers in advance!"

I can't give you page #'s as the RNS I am looking at isn't paginated, but in the CEO Statement> Our Delivery Model> Post-Inventory Monetisation Activities> Pipeline section, there is a "Country Breakdown" section, broken down into "Italy", "United Kingdom" and Europe (excluding UK & Italy".

Under Italy, para 3, it says "Client companies from Italy included in the overall pipeline KPI have inventory equivalent to £318.6 million as at 19 April 2024 (£162.5 million at 21 April 2023)."

The increase from 162.5m to 318.6m is a 96.1% increase.

Under United Kingdom, para 1, it says "Client companies from the UK included in the overall pipeline KPI have inventory equivalent to £1.8 million as at 19 April 2024, (£212.1 million as at 21 April 2023). "

The reduction from 212.1M to 1.8M is a 99.1% decrease.

In non-numeric terms, Italy has pretty much doubled while the UK has pretty much disappeared.

The numbers re: what is actually signed up to comes from earlier in the RNS - pretty much page 1 - para 2 of "Operational Matters".

Hope this helps.

The pipeline details had some interesting notes:

" Client companies from the UK included in the overall pipeline KPI have inventory equivalent to £1.8 million as at 19 April 2024, (£212.1 million as at 21 April 2023). " A 99.15% drop.

"Client companies from Italy included in the overall pipeline KPI have inventory equivalent to £318.6 million as at 19 April 2024 (£162.5 million at 21 April 2023)." A 96.1% increase. This global funding platform seems to be VERY Italy-centric right now.

Total pipeline down from £374.6M to £330.7M, an 11.7% drop. And of the remaining pipeline, 91% has not signed an LoI or term sheet, so could have lost interest in the entire thing! Might be a good thing that the "€135M" funding will be released in €35M tranches, as 1 tranche would seem to cover the entire committed pipeline on current figures.

Does "Bought another 8k top up again" mean bought 8,000 shares (£2.40 @ £0.0003/ share) or bought £8,000 worth of shares (26.67M shares @ £0.0003/ share)?

AJ Bell on the 12th

Technically it doesn't actually say AZ is putting $3M in - it says "investors" (plural) are putting $3M in and that AZ "has led the charge on this strategic investment, as he seeks to bring his knowledge and past successes to NUBURU."

Could mean he has put in $2.99M and others have put in $0.01M, could be flipped around or even that he has put in zero but has put together a consortium of other people that put in $3M. I'd suspect the truth is somewhere in the middle and will come out with later filings if people want to check.

Dividend, not benefit - senior moment

IIRC last year's cash/ benefit benefitted from a French VAT refund that was in the low 10's of millions.

Aldermore do Invoice Finance (and I think Asset Finance) too - I used them for factoring invoices at a job about 20 years ago.

Now down just under 12 per cent.

From the dividend announcement :

"Dividend Declaration

The Company's Board of Directors has approved a dividend of 2.0 pence per share for the September end quarter. The ex-dividend date will be 28 December 2023, and the record date of 29 December 2023. The dividend will be paid on or around 12 January 2024.

Any such dividend payment to Shareholders may take the form of either dividend income or "qualifying interest income", which may be designated as an interest distribution for UK tax purposes and, therefore, subject to the interest streaming regime applicable to investment trusts. Of this dividend declared of 2.0 pence per share, 1.15 pence is treated as qualifying interest income. "

I *think* if you hold outside an ISA, the 2 'types' of dividend can be treated differently. For the trust, I think it allows then to get tax relief on the "interest" part of the divi, in the same way as if they were paying interest to a bank.

Maybe that was vagabond's piggy bank money?

"All you need to know is the debt now is insignificant to the potential coming"

The debt is irrelevant, the break even point is highly relevant (Balance Sheet versus P&L). SYME will go deeper and deeper into debt (or more and more diluted) until it breaks even. Looking at the break even point and whether/ when it can be reached is the key to whether this company/ model can work or not.

True, but the CoS is a very murky figure in SYME - in 2022 it was 338k GBP but a year earlier it was 804k - who knows what they are charging to it? I assume a large chunk is staff salaries, and one would *hope* that especially for WL business, those costs wouldn't rise in a linear relationship with turnover.

I'm being an idiot - that's a 6 month loss. so double to T/O's needed for full year break even - 640M GBP of WL or 320M GBP of traditional IM to break even on an annual basis.

From the half year report 29/9/23, Loss from continuing operations was 2.4M GBP (this excludes the losses from TF).

Assuming Savvy's 0.75% margin is correct (and it seems about right), then SYME would need to do 320 M GBP of white label to break even if it did no traditional IM's on top.

If it did no WL and just traditional IM, then it would need to do about 160M GBP of IM's. £2 of WL = £1 of traditional as regards earnings for that calc.

So it will increase in value 14 times within the next 12 months? Making a Market Cap of 612M?

That would have to be some hell of a plan to go to!

Or you are spouting your usual ...

Where are you getting the ex-div on Friday 15th from?

According to my notes and the investor relations part of the GAW website, the last div was paid 3/11 and went ex-div 28/9, I can't see any divi having been announced since that.