TruFin's Resilient 12% CAGR: A Week of Surges and Substance

TruFin (LON:TRU), the London-based holding company of three growth-focused technology businesses, has delivered a respectable 12% compound annual growth rate (CAGR) over the past five years. The company's surging 14% growth in the last week alone has captured investor attention, as TruFin's strong performance continues to outpace market expectations. This article delves into the drivers behind TruFin's impressive CAGR and recent surge, as well as the company's strategic initiatives and future prospects.

TruFin's subsidiaries, Oxygen Finance, Satago, and Playstack, have each contributed significantly to the company's revenue growth and EBITDA improvements. Oxygen Finance, an early payment provision platform, has consistently grown its client base, revenues, and EBITDA, with the board expecting its EBITDA to continue growing at attractive rates in 2025 and beyond. Satago, an invoice finance platform, secured partnerships with tier-1 banks such as Lloyds and Bank of Ireland, driving revenue growth of over 71%. Playstack, a mobile games publishing arm, grew revenue by 27% in 2023, secured the Mortal Shell franchise, and achieved a 95% hit ratio with its game launches.

TruFin's disposal of Vertus Capital Limited in October 2023 for £3.2m influenced its overall performance and revenue growth. While the disposal led to a reduction in gross revenue, it contributed to an improvement in adjusted EBITDA, with a 48% year-over-year improvement to £(3.0)m. TruFin focused on its core operations and continued to drive growth through its remaining subsidiaries.

Looking ahead, TruFin expects its group EBITDA to remain on a sustainably positive trajectory during 2025 and beyond, following a meaningful cost realignment at its Satago Financial Solutions business. The company anticipates posting its first positive pretax profit in 2025, with revenue of more than £55 million forecast for 2026 and a group EBITDA margin of at least 20%.



TruFin's impressive CAGR and recent surge can be attributed to its diversified business model, strategic initiatives, and the strong performance of its subsidiaries. The company's ability to adapt and grow in the face of changing market conditions and strategic moves, such as the disposal of Vertus Capital, has positioned it well for continued success. As TruFin continues to execute on its growth strategy, investors can expect the company to maintain its strong performance and deliver value for shareholders in the coming years.