TruFin's Satago extends commercial pilot with Lloyds, financial benefits delayed

Lender TruFin said on Friday that its Satago Financial Solutions subsidiary had broadened its relationship with Lloyds Bank and extended its commercial pilot.

While TruFin said Satago was now being evaluated by Lloyds as part of a broader remit within the commercial banking offering, the firm highlight that the extended scope of the initiative meant the commercial pilot phase would continue into early 2022, delaying its financial benefits.

Elsewhere, TruFin said that gross revenues from Oxygen Finance and its subsidiaries were expected to have grown in excess of 30% year-on-year during the second half.

TruFin its Oxygen subsidiary's client base was projected to exceed 120 unique clients by year-end, up from 92 at the same time a year earlier, resulting in the division posting its first cash-flow positive month during the fourth quarter.

"Oxygen continues to dominate the markets within which it operates," said TruFin. "Oxygen expects to deliver revenue growth in excess of 20% per annum over the coming years, which, given the operational gearing in the business, should translate to increasing profits."

The AIM-listed group stated the launch of Mortal Shell at its Playstack subsidiary left the unit "well-positioned to capitalise on recent successes" with a number of further console signings expected over the next few months, while TruFin's Vertus Capital brand was said to have maintained its record of no credit losses since inception and, despite two early loan repayments, was still targeting a loan book of £22.0m by the end of the first quarter of 2022.

TruFin said: "It is pleasing to report that two of our subsidiaries have recorded their first profitable months during 2021. However, the broadening and extension of Satago's commercial trial will result in the financial benefits of a successful commercial outcome being pushed back.

"The extended scope of the initiative has enlarged the opportunity set for Satago and this, coupled with Satago's increasing pipeline of strategic partners, gives the board of TruFin confidence in the significant value creation opportunity at Satago."

As of 0955 GMT, TruFin shares were down 7.89% at 70.0p.