TruFin Shares Jump: Bolsters Outlook with Playstack Contract and Share Buyback

TruFin plc (LON: TRU) shares jumped more than 5% on Friday after the company announced a significant contract win for its gaming subsidiary, Playstack, alongside a new share buyback program, signaling confidence in future profitability and shareholder returns. The news has been met with positive sentiment in early trading.

Headline Numbers:

• Playstack Contract: Multi-year agreement with a global technology platform for a new, internally developed game slated for release in H2 2026. Includes contractual payments and performance-based fees.
• Share Buyback: TruFin authorized a share buyback program of up to £6 million, indicating a belief that the company's shares are undervalued.
• Playstack Management Incentive Plan (MIP): Approved to align senior management incentives with long-term shareholder value creation.

The Playstack contract materially strengthens its first-party IP portfolio and enhances revenue visibility for the coming years. The company is confident that this contract will deliver yet another year of profitable growth in 2026 for shareholders. This strategic move is coupled with a planned share buyback, which is expected to provide additional support for the stock.

The buyback plan reflects TruFin's capital allocation framework, which prioritizes funding business growth, maintaining a prudent financial buffer, and returning surplus capital to shareholders when shares trade below intrinsic value. This shows TruFin's commitment to shareholder value through both operational excellence and capital management.

Driver Breakdown:

• First-Party IP: The Playstack contract focuses on internally developed games, increasing control over intellectual property and future revenue streams.
• Revenue Visibility: The multi-year agreement provides a clearer picture of Playstack's expected revenues, reducing uncertainty for investors.
• Management Incentives: The new MIP is structured to align management interests with long-term shareholder value creation, promoting sustained growth.

CEO James van den Bergh stated, “We are delighted that Playstack has secured another major contract with a global technology platform…TruFin is well-positioned to deliver disciplined capital returns alongside long-term growth.” This statement reinforces the company’s growth strategy and commitment to shareholder returns.

The establishment of a new management incentive plan (the “MIP”) designed to align senior management with long-term shareholder value creation. Awards under the MIP have been granted to Harvey Elliott, Chief Executive Officer of Playstack, and additional members of the senior management team.

The acquisition of the MIP Shares by the CEO is being funded by a loan of £249k provided by Playstack (the “CEO Loan”). The CEO Loan is limited-recourse and is repayable only out of any value ultimately received on the MIP Shares. The loan will accrue interest at the rate of 1% above the base rate of the Bank of England.