Supply@Me Capital PLC

Supply@Me Capital PLC (LON: SYME) is a fintech platform provider offering Inventory Monetisation services to European Trading and Manufacturing Companies.

Investment Rationale – WATCH at GBX 0.18

• Reduced Revenue Guidance: The Company had trimmed down FY21 revenue guidance because of significant delays in contracts. Now, the Company had anticipated revenue ranging from £0.5 million to £0.8 million for FY21. In Comparison, SYME expected FY21 revenue to fall between £3.8 million and £4.9 million in a trading update released during August 2021.
• Weak Shareholders’ Returns: The Return on Equity and Return on Asset remained in negative territory during Q2 FY21.
• Significant Net Loss: The continued investment in technology, operations and hiring new senior team members resulted in a significant net loss during H1 FY21. During H1 FY21, SYME posted both a gross loss of negative £131,000 and an overall loss after tax of negative £1.89 million.
• Unfavourable Technical Indicators: From a technical standpoint, a 20-days exponential moving average of GBX 0.23 indicates a correction in the stock price.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the reduced revenue guidance for FY21 and weak profitability during H1 FY21, we have given a “WATCH” recommendation on Supply@Me Capital PLC at the current market price of GBX 0.18 (as on 12 November 2021 at 08:17 AM GMT), while we will suggest reinvesting after identifying fresh growth catalysts.

*The reference data in this report has been partly sourced from REFINITIV.

Disclaimer

References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.

This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.

The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.

Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.

Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.