[email protected] Capital says first inventory monetisation is scheduled to complete next month
The company, which operates a service that essentially enables companies to raise funds secured against their inventory, said the number of client companies on its platform was 142, up from 66 at the end of 2019 and 97 at the time of the company’s July 27 trading update.
The acceleration in the number of corporates ready to be served is a result of the re-opening of activities in Italy after the COVID-19 lockdown restrictions were eased, the Italian company said, combined with the positive reaction from client companies to the progress that [email protected] has made with its inventory funding.
The company, which generates revenues from companies signing up to its platform, expects revenues for fiscal 2019/20 will be in the region of GBP2.3mln.
The first portfolio “inventory monetisation” is expected to have a value of around EUR300mln and to complete by the end of next month, the first month of its new financial year. This is expected to deliver around GBP20.5mln of annual revenue into special purpose securitisation vehicles and to generate an average annual net servicing fee of GBP6.5mln to [email protected] The inventory monetisation contracts have a three-year fixed duration plus a one-year option.
The next securitisation programmes for delivery by 31 March 2021 are now being initiated; these aim to complete the inventory monetisation of the remaining client companies in the current portfolio and may include client companies sourced for the pilot operations in the company’s new geographies.
Inventory funders for this programme will include both institutional investors, and, following regulatory approval, the “captive bank” announced on September 21.
READ [email protected] outlines strategic inventory funding agreement with new ‘captive bank’ which it says is worth EUR8bn over five years
Shares in the company were up 2.9% at 0.53p in early deals.