Executives from inventory monetisation fintech platform Supply@Me Capital looked to explain the thinking behind today’s RNS announcement that sent the SYME share price crashing by over 18 percent by the close of trading on Tuesday.
The RNS update today appeared to defeat the purpose of its distribution as investors were turned off by the apparent convoluted summary of potential revenue sources as well as the maiden board-level produced guidance for the firm.
Since then, Alessandro Zamboni, CEO of SYME was joined by CFO Amy Benning (speaking to Proactiveinvestors) in trying to appease investors and explaining the positives it wanted to put across in the redistributed RNS and ultimately what it was trying to achieve.
So what was SYME trying to say as part of its official guidance revelation?
Firstly, it claims that it was trying to portray that it was satisfied with its performance and that it sought to articulate its ‘business model canvas’.
Adding to this was Mr Zamboni, who noted that the white label revenue stream is particularly important and something that he feels will ensure investors value SYME as a true fintech company.
Elsewhere, he added that the guidance revealed today was the maiden time it has produced official guidance via directors of the company and not using third parties.
However, with mentions of deferred revenues and some way off third-party guidance, shares in SYME crashed.
Step in Amy Benning who explained the process the business went through to get to this guidance including reviewing all funding sources, the level of commitment from those involved and how quickly this could translated into inventory monetisation over the next six to twleve months.
Benning appreciated that the update may have caused confusing as it was looking to ensure conformation to accounting standards and and when it can actually recognise revenue.
This resulted in deferred revenue of £3.9-£4.8m for FY22 which Benning was keen to add that this would be one component of expected revenue in 2022.
Concluding the interview was Alessandro Zamboni also implying that today’s guidance of £3.8m-£4.9m for FY21 was perhaps designed to align to a lesson learnt of under-promising and over-delivering.