TruFin sees revenues increase by nearly a quarter in 2022
(TRU) , a holding company focused on growing fintech and banking businesses, has today announced its audited results for the 12 months ended 31 December 2022. Financial highlights include gross revenues growing 23% to £16.1m driven by significant revenue growth from three out of four subsidiaries, with recurring software and licensing fees represented 84% of revenue. Gross profit margin grew to 69%, increasing from 53% in 2021, whileits loss before tax sat at £8.0m. Cash and cash equivalents at year end totalled £10.3m.
Company highlights included Oxygen Finance EBITDA increasing 62% year-on-year to £1.1m. Satago Financial Solutions also delivered a stand-out performance, growing revenues by more than 350% to £2.2m after its platform was chosen to support invoice factoring solutions for Lloyds Bank customers. TruFin’s mobile games publisher Playstack acquired Magic Fuel Games Inc. and signed a concurrent technology contract with a global technology platform. And Vertus Capital Limited grew its loan book by 38% and revenues by 61% to £2.2m.
Looking ahead, TruFin noted having ‘meaningful targets’ for 2023, with aunaudited revenues for January 2023 not less than £0.98m, a 26% increase over the same period in 2022. TruFin remains focused on delivering growth, profitability and value crystallisation.
James van den Bergh, TruFin CEO, said: "2022 was a significant year for the Group. Satago secured a landmark contract and £5m equity investment from Lloyds, and soon after signed an embedded finance and package deal with Sage.”
“Oxygen, managed by Ben Jackson, yet again grew its client base, revenues and EBITDA. Oxygen's key internal initiatives include helping clients to purchase multiple products”
“Meanwhile, 2023 is an important year for Playstack. Company CEO Harvey Elliot has secured an eye-catching and enviable line up of games and is looking to demonstrate the embedded value he has created in recent years.”
“As always, Vertus is benefitting from the IFA market trend for consolidation and continues to be skilfully managed by Matt Marais.”
"We are excited by the future and the opportunities that lie ahead and look forward to another year of significant progress."
View from Vox
TruFin has shown promising results across its four subsidiaries, most notably Oxygen and Satago, and has successfully positioned itself to ‘weather the global macroeconomic storms’ seen across the year, steering two of its four businesses towards profitability, with a third anticipated to hit the same milestone during 2023.
Some key wins for star performer Satago included being selected by Lloyds Bank to deliver a new digitised invoice financing platform for its UK customers, along with also inking a partnership with Sage Group in June. These major contract wins saw revenues increase by over 350% to £2.2m in 2022. In addition, Satago’s mission to empower SMEs to make better trading decisions has been timely given the macroeconomic climate in 2022, where SMEs pay particular attention to business outgoings and therefore look to external solutions to help manage their cashflow.
Overall, TruFin’s strategy to partner and invest in businesses where they see long-term value has paid off in 2022, and the company is excited for a transformative year for the business as it looks to maximise profitability across its four subsidiaries.
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