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[email protected] (SYME) Share Price Plunged 43.5% After Slashing Revenue Guidance

Updated: 11 Nov 2021

[email protected] Capital PLC (LON: SYME) share price plunged 43.5% after drastically slashing its earnings guidance for the 2021 fiscal year due to unavoidable circumstances.

The inventory monetisation company reduced its annual revenue guidance to a range of £0.5 million to £0.8 million from the £3.8  million to  £4.9 million range outlined in August this year.

The firm said that revenues from the pipeline of inventory monetisation projects outlined in its earlier projections would be recognised in the 2022 financial year due to unavoidable delays.

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[email protected] Capital’s directors expect to conclude the first contract with an inventory funder by the end of the year but noted that it would recognise revenues from the first transactions from the deal and two others in the coming year.

The company also expects to complete deals with two other inventory funders and start generating revenues from them early next year.

SYME told investors that the first inventory funder, an Italian fintech bank, had decided to take advantage of the SACE Guarantee scheme initiated by the Italian government when selecting the portfolio of companies for its first inventory monetisation deal.

[email protected] capital added that the funder’s preferences had caused some delays while reducing the number of companies that qualify for the inventory monetisation program.

The company further revealed that a second inventory funder had decided to use SYME’s platform as a white label business and pay licenses and multi-year servicing fees rather than becoming one of the company’s inventory funders.

A third inventory funder chose to focus on the UK market and is currently negotiating a term sheet, with the first inventory monetisation deal expected to be completed in 2022.

Alessandro Zamboni, [email protected]’s CEO, said: “Naturally, we eagerly anticipate the completion of the first Inventory Monetisation transactions and the revenue associated with this. We are committed to providing bespoke solutions that align the requirements of our high-quality funders with our portfolio of client companies. The completion of our first monetisation and the lessons learned in its achievement will allow for a smoother process for the future as we scale up.”

While investors reacted negatively to today’s announcements, it is evident that SYME has not lost much of this year’s revenues, with many of its IM contracts being postponed to 2022.

However, today’s downtrend was expected, given the massive difference between the new guidance and the preliminary figures.

*This is not investment advice.

SYME share price.

IG chart of Supply@Me Capital share price 11-11-2021
Source: IG

[email protected] Capital share price plunged 43.48% to trade at 0.13p, falling from Tuesday’s closing price of 0.23p.

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