Supply@ME Capital PLC (LSE:SYME) said it expects to start building a track record in financial performance from its inventory monetisation segment after a first transaction was executed earlier this month.
For the first half of 2022, the fintech platform operator reported an underlying operating loss of £2.5mln compared to £1.46mln a year ago, which it said was primarily as a result of increased headcount, a higher cost base after the acquisition of TradeFlow Capital Management in the second half of last year, and continued investment in operations to satisfy requirements of inventory funders.
Revenue of £209,000 was fully generated by the investment advisory segment, compared to £271,000 last time, which was generated by the inventory monetisation segment.
“The group's focus so far this year has been on securing the first binding commitment to deploy our inaugural IM transaction, and it's fair to say that the numbers don't tell the full story,” said chief executive Alessandro Zamboni in a statement alongside the results.
He said the board believes the first IM transaction “de-risks the investments made by our existing shareholder base, creates a clearer path to profitability, and advances our equity story, such that the door is now open for institutional investors to consider SYME as an attractive investment opportunity”.
Assets under management referred to the funds advised by TradeFlow, which operates an inventory "in-transit" business model, increased 75% in six months.
Zamboni said this proved the resilience of the funds advised.
“The SYME team continues to work tirelessly to manage and develop our pipeline of corporate clients, and engage with potential third-party inventory funders that have expressed an interest in the IM asset class, through the group's innovative platform,” he said.