The share price of Supply@Me Capital (LSE: SYME) tumbled by over 17 percent during early trading on Tuesday after the inventory monetisation firm disappointed with its trading update.
After issuing a revised trading update in quick session, investors were presented with a relatively convoluted overview of the business with a focus on Investment Advisory, Captive Inventory Monetisation Platform Servicing and White Label Inventory Monetisation Platform Servicing.
The fintech platform also outlined what appeared to be a form of pipeline update with 65 percent of its Capitve Inventory Monetisation Platform Servicing expected to originate from Italy.
So why do the SYME share price fall so hard?
One of the first reasons that the SYME share price fell in early trading is because the RNS is one which is very difficult to understand including the service lines of the business – even some of the most complex organisations find the best and widely acknowledged way to present their business.
SYME still has not cracked this.
Issuing a revised RNS update branded ‘ replacement’ also did not help lessen confusion.
But cutting through the noise is the and the notable reason why the Supply@Me Capital share price fell is due to the guidance provided by SYME.
For the year ending 31 December 2021, it claimed that it now expects consolidated revenues between £3.8m-£4.9m with a similar amount to be ‘deferred’ into next year.
Regardless of the questions that will be asked of the deferral, the fact is the guidance is missing the spot from the limited number of ‘analysts’ that ‘cover’ the stock.
One ‘analyst’ that covered the stock is Ed Stacey of ‘Proactiveinvestors’ and for FY21 placed a forecast of £12.1m of revenue with £7.7m EBITDA.
The SYME share price is currently trading at 0.31p following today’s fall of over 17%.