RE: SYME Growth numbers Q1/2 202021 Aug 2020 12:27
Hi Wilts, This is taken from a press report end of July. This report didn't include the Abu Dhabi deal.
Through the Supply@Me platform, companies can create value from their inventories, optimizing their working capital and improving the efficiency of the supply chain. Inventories are demobilized through the use of smart contracts and the blockchain of Sia, the group specializing in payment infrastructure controlled by Cdp Equity.
Thanks to SiaChain, the platform is able to analyze and monitor prices and quantities of the various stocks. Supply@Me purchases and securitizes the inventories of client companies and places the notes of the securitization with institutional investors. The possession of the inventories remains in the hands of the client company, which, when it sells the goods, reimburses the securitization vehicle with additional inventories from the warehouse.
This round lasts for 3 years and only the last transaction will be refunded in cash, while any unsold will be repurchased by a reseller with whom Supply@Me has already entered into a prior agreement for the purchase at a fixed price. The average target company typically has a turnover of approximately $117.5 million (€100 million). The current average size for each inventory monetization transaction is approximately $17.6 million (€15 million).
At the same time, Supply@Me is working with two main Italian banking operators to develop securitizations of inventory of corporate clients of banks, where the originator banks themselves will also be investors in the notes (self-funding approach). Those banks in turn have submitted 272 other potential new corporate clients to the platform. The actual acquisition of these new clients could already exceed, in the coming months, the target of 310 companies planned at the end of the plan (2024).
Supply@Me is also working with a UK financial operator to organise a first pilot inventory monetisation programme in the UK (up to 10 UK corporate customers) by the end of 2020. In parallel, fintech is therefore dialoguing with several potential UK business partners in order to take care of the origination of the first UK customer companies as part of the pilot programme. As per the company’s business plan, further feasibility studies have been launched to assess the launch of the inventory monetisation service in other geographical areas. In this context, Supply@Me is also analysing opportunities in non-EU countries.
The company was listed on the LSE last March (Not AIM), with a capitalisation of no less than $296.3 million (£227.5 million) and a free float of 26%, following the reverse merger between the Italian scaleup fintech Supply@Me srl and Abal Group, a so-called cash-shell company, which until the beginning of February 2020 was listed on Aim in London and was renamed Supply@Me Capital.