Trufin Share Price Dropped 6% Despite a Positive Trading Update

The Trufin PLC (ON: TRU) share price dropped 6% after disclosing its financial expectations for the 12 months concluding on 31 December 2023. The company anticipates an adjusted pre-tax loss not exceeding £6.3 million, which aligns with its forecasts and shows an improvement from the previous year's £8.2 million.

The company’s adjusted EBITDA loss is also predicted to be better than anticipated, not surpassing £3.0 million, marking a significant year-on-year enhancement of over 47% from last year's £5.7 million.

Trufin expects group revenue to reach at least £20.2 million, indicating over 32% growth from the previous year's £15.3 million. The company remains optimistic despite being lower than initially expected due to prolonged negotiations for key platform deals at Playstack Limited.

Playstack, with a more focused approach, is on track to achieve its EBITDA profitability target for 2023, bolstered by the successful release of The Last Faith in the last quarter.

Satago Financial Solutions Limited and Oxygen Finance Group Limited have met their performance expectations for 2023, continuing their operational and financial growth. TruFin plans to release a more detailed trading update, providing additional insights into the performance of these subsidiaries.

Looking forward, TruFin reaffirms its market projections for 2024 and the subsequent years. The company reports a year-end cash position of no less than £9 million, with unrestricted cash at a minimum of £5.5 million, confirming that the group is well-capitalized and profitable.

James van den Bergh, Tufin’s CEO, commented: “Whilst a delay in finalising Playstack's platform deals and the associated financial impact is frustrating to report, the Board is confident that the Group is well placed to deliver significant value for shareholders. TruFin made significant progress in 2023. Having disposed of Vertus, we have invested in Oxygen, Satago and Playstack in order to maximise the value of these entities ahead of possible value realisations. Following this year's planned investment programme and the recent acquisition of bidstats.uk, Oxygen is solidifying its leading market position and is perfectly positioned to accelerate profitability in the years ahead.”

Trufin share price. 

The Trufin share price dropped 6% to trade at 47.0p from Wednesday’s closing price of 50.00p.