TruFin delivers first full-year profit earlier then expected

The AIM-traded firm said that for the year ended 31 December, it anticipated adjusted profit before tax of over £0.5m, swinging from a loss of £6.6m in 2023.

Adjusted EBITDA was expected to exceed £7m, marking a year-on-year improvement of more than £10m from a £3.5m loss in the prior year.

Group revenue was projected to reach about £54m, representing growth of over 197% from £18.1m in 2023.

The sharp improvement was driven by strong year-end performances from Playstack’s games, Balatro and Abiotic Factor.

Balatro, bolstered by winning three awards at the Game Awards - including 'Best Independent Game' - saw a significant boost in December sales.

Oxygen Finance Group delivered steady growth, with revenue rising 21% to at least £7.5m and EBITDA increasing 65% to no less than £2.1m.

The division added four new early payment (EP) clients during the year, while renewing contracts with four existing EP clients, ending 2024 with a record 62 EP clients.

Satago Financial Solutions experienced challenges, including the loss of a tier-one bank contract in July, contributing to a decline in revenue to no less than £2.4m from £3.8m in 2023.

However, the unit aggressively realigned its cost base and was pursuing opportunities with tier-one banks and other potential clients.

Losses before tax were expected to narrow to no more than £4.9m, with Satago targeting cash flow breakeven within 18 months.

TruFin said it ended the year with a cash position of at least £14m, including unrestricted cash of no less than £12.5m.

“This is the first time we have grown revenues by more than 190%,” said chief executive officer James van den Bergh.

“It is the first year we have recorded an EBITDA profit and the first year we have achieved a profit before tax - a year ahead of schedule.

“Although we expect 2025 to be a year of consolidation, we will maintain our disciplined approach to allocating internal resources and expect the group to grow all the profitability lines in 2025 and beyond.”

Van den Bergh described Satago's loss of a tier-one bank contract in July as “an enormous shock”, but said the team had realigned the cost base and were poised for a year of growth, with a “clear business plan” to achieve cash breakeven within 18 months.

“We are focussed on rebuilding shareholder value and the recent share recapitalisation at Satago is the first step to achieving that.

“I look forward to providing a more detailed update during TruFin's annual results statement.

“This has been an exceptional year, and it is safe to say the group has never been better positioned to deliver further shareholder value.”

At 0912 GMT, shares in TruFin were up 4.6% at 91p.

Reporting by Josh White for Sharecast.com.