[email protected] Capital PLC (LON:SYME) offers an innovative technology platform to provide inventory monetisation, which can enable a wide range of manufacturing and trading businesses to improve their working capital position (via a “true sale” of the inventory to special purpose vehicles incorporated by [email protected]) and also provide a new asset class to investors.
[email protected] delivers this using a service model that brings together funders with companies across a range of industry sectors, through a securitisation programme. The structure works via special purpose vehicles (“Stock Companies”) that are the commercial counter-parties of the manufacturing or trading companies. [email protected] is operating as a pure service provider, rather than acting as a lender through its balance sheet.
The inventory monetisation system is typically used by client companies on a multi-year basis. In this sense, it is not a quick cash solution for businesses. Nonetheless, the model is finding new demand in the current business environment as companies seek to free up working capital and investors search for decent yield in high quality fixed income instruments.
The business trajectory:
[email protected] attained a London stock market listing in March 2020 via a reverse takeover with a company called ABAL Group. It is important to note that the former operations of ABAL are unconnected with [email protected] (and are not owned by [email protected]).
[email protected] has a deep pipeline of inventory to be securitised on behalf of client companies — some €1.3bn of inventory, of which around €0.5bn is ready to be served/for execution by virtue of the completion of the onboarding process. During the second and third quarters of 2020, [email protected] will undertake the issuance of the securitisation notes for these inventories, kick-starting the fee income revenue stream for [email protected] We believe that this could represent a material catalyst for the share price.
Quick facts: [email protected]
Price: 0.55 GBX
Market Cap: £180.15 m
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