Trufin (#TRU)- Losing Momentum or Being Conservative
FY25
Jan & Feb - Generated Revenue of £14.8M . Circa £7.4m per month.
March & April (20th May) Reporting no less than £25M so Circa £5M.
Forecast for 8 months of £26M or £3.25M to get to the £51M Revenue
Slowing down of revenue as Balatro becomes more mature in the portfolio which is understandable considering the significant revenue of FY24.
I think there are a number of product releases for the remainder of FY25, are they considering small sales of these, or are these not within their forecast?
EBIDTA improving from £6.7M to forecasted £8M. PBT improvement of £0.1 to £3M.
Drop of revenue from £55M to £51M.
News
20th May - Trading Update & Share Buyback
TruFin now expects its financial performance for the year ending 31 December 2025 to be materially ahead of current market expectations. Group revenue is now expected to be not less than £51m with adjusted EBITDA expected to be not less than £8m and adjusted Profit Before Tax to be not less than £3m.
Gross revenue for the four months ended 30 April 2025 was not less than £25m with unrestricted cash at the end of April 2025 of not less than £15m.
Share Buyback of £4M.
LTIP
Number of Shares | Exercise Price | Share Price Hurdle |
1,616,667 | £0.75 per Share | £0.94 per Share |
1,616,667 | £0.75 per Share | £1.31 per Share |
1,616,666 | £0.75 per Share | £1.88 per Share |
Company Structure
Playstack (100% Owned)
Playstack grew 455% as it contributed revenue of £44.6m (2023: £8.0m). The three new game releases in the year generating revenue of £39.0m
Net revenue, which is gross revenue less direct costs including developer royalties, increased 237% to £16.2m (2023: £4.8m)
Games include Balatro , Abiotic Factor , Golden Idol.
90% HIT Ratio (Money invested where they've made their money back). 12 Games launched, 11 games returning capital.
FY25 games launching, Little Problems, Dark Water, Lorn Vale, Abiotic Factor , Unbeatable, One Move Away & 1 unannounced.
Oxygen (85% Owned)
Provides Early Payment Software - 62 Councils signed up to the software
Revenue £7.7M (FY23 £6.2M)
FY EBITDA £2.3M (FY23 £1.3M)
Revenue increased by 25% but EBITDA 81%, showing the leverage it has).
85% Revenue over 4 years is from existing clients. Now servicing 24,648 suppliers, adding 4,440 new suppliers lasy year. End of February 25 - now 27,000.
Early Payment Clients - Councils
Insight Solutions - ??
Oxygen’s rate of overall revenue growth increased from 16% in 2023 to 25% in 2024, reporting full year revenue of £7.7m (2023: £6.2m). The Early Payment revenue grew by 28% following a 26% increase in 2023 reflecting the continued traction of this core revenue stream.
FY25 grew revenue by 21% (Jan, Feb)
Rejected an Offer for Oxygen Finance for £22M in Dec 2022.
Early Payment Programme Services (“EPPS”) contracts
Oxygen’s EPPS generate rebates (ie discounts on invoice value) for its clients by facilitating the early payment of supplier invoices.
Oxygen’s single performance obligation is to make its intellectual property and software platform available to its clients for the duration of their contracts.
Oxygen bills its clients monthly for a contractually agreed share of supplier rebates generated by their respective Early Payment
Programmes during the previous month. This revenue is recognised in the month the rebates are generated.
Insight services subscription fees
The Insight Services offered by OFL provide focussed public sector procurement data and analytics on a subscription basis. Clients cover both the private sector, enabling them to improve and develop their engagement with the public sector, and public sector organisations, enabling them to make more informed procurement decisions. Subscriptions are typically received in advance and recognised over the length of the contract as access to the database is provided.
Satago (Owns 74%)
As previously announced, revenue for 2024 decreased 35% to £2.5m (2023: £3.8m) due to the termination of its primary LaaS partner contract.
FY25 Decline of 41% (due to Tier-1 Bank Termination - Lloyds). Lloyds is also a shareholder.
Looking to become cash breakeven - expected June 2026.
Income Statement
£6.9M Investing in IPs / £2M Payment of loans
£4.7M Cash Improvement to Balance sheet.
Income
£55M Revenue Made up from;
Interest Income £1.2M (Advances made by Satago)
Total Fee Income £9.1M (Payment services and subscription fees provided by Oxygen and Satago)
Early Payment Programme Services (“EPPS”) contracts £5.5M (FY23 £4.3M, FY22 £3.3M, FY21 £2.5M). Revenue is increasing YoY with latest year improving by £1.2M.
Consultancy Fees
Implementation Fees
Subscription fees £2.2M (FY23 £1.7M, FY22 £1.6M, FY21 £1.2M). Subscriptions fees earned by Insight services subscription fees under Oxygen Finance & Satago.
In-App Revenue £6M
Advertising Revenue
Console Revenue £38M
£13.8M Operating Income
Expenses
Staff Cost £12.8M (Cash)
Other Operating Expenses £5.7M (Cash)
Depreciation & amortisation £5.2M (Non-Cash)
Tax Refund £3.6M (Cash)
EPS 4.6p
Cashflow Statement
Profit for the year adjusted for non-cash items of £8.0m (FY23 £3M Loss)
Balance Sheet (Net Assets = £43.5M , Net Current Assets = £14.2M)
Non-Current Assets (£29.3M)
Intangiable Assets (£25.8M)
Client Contracts (£2.6M).
Software Licenses & Similiar Assets (£6.8M) - Cityscapes was amortised using this line, reducing by £2.6M. This consists of costs of £14.8M, and accumulated amortisation of £7.9M. During the year, the company invested £6M into new games and amortisation of £4.6M.
Goodwill (£15.2M)
Porge (now Insight Services within OFL) - £1.3M
Playstack - £12.9M
Magic Fuel - £0.8M (within Playstack) - Apparently this has the potential to be the increasing likelyhood to have an impairment against it.
Bidstats.UK - £0.1M
Seperate Intangiable Assets (£1M)
Deferred Tax Assets (£3.1M)
Refer to Tax section as potential to grow this amount signifantly now Oxygen & Playstack are profitable.
Current Assets (£41M)
Cash and cash equivalents (£14.8M)
At year-end the Group had a cash balance of £14.9m (including cash of £1.3m in Satago, which is not 100% owned). As such, unrestricted cash was £13.6m.
Cashflow for the year was £13.8M, which allowed the company to invest £6.9M into intangible assets, investing in Satago's platform, and Playstacks upcoming IPs. £2M was used to reduce net borrowings, allowing the company to improve cash by £4.8M at year-end.
Loans and advances (£4.8m)
Included in loans and advances is an amount of £993,000 with Stormchaser UG. The recoverability is related to future revenues from an unannounced IP. Subsequent to the year end, Stormchaser UG is in liquidation. Once this process is complete, the legal rights of the IP will be transferred to Playstack, at which point in time an intangible asset will be recognised within the Group.
Trade receivables (£11.1M)
Big increase from £2.3M in FY23.
Other receivables (£10.1M)
Big increase from £4.9M in FY23
Current Liabilities (£26.8M)
Borrowings (£4.1M)
Majority of Borrowings due within the year and covered by the cash balance
Trade and other payables (£22.7m)
Big increase from £5.5M in FY23
Tax
FY24 Report: Unutilised tax losses in the Group as at the reporting date were £70,974,000 (2023: £88,928,000).
The tax credit for the year was £3.6m (2023: £1.0m), and includes the increase in the recognised deferred tax asset to £3.2m (2023: £0.3m) as Oxygen and Playstack have moved to improved profitability.
Deferred tax asset: There is inherent uncertainty in forecasting beyond the immediate future and significant judgement is required to estimate whether future taxable profits are probable in order to utilise the carried forward tax losses. Companies in the Group have carried forward losses which will be utilised against future taxable profits. However, a deferred tax asset has not been recognised for these companies, except for Oxygen Finance Limited as there is uncertainty surrounding the timing of when these losses will be used.
Upto £17.74M Deferred Tax Asset might come onto balance sheet in future.
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