TruFin PLC Reports 42% Revenue Growth and 2,711% Profit Surge in H1 2025

Oxygen: strong first half, short-term headwinds from policy changes

Oxygen posted a 27% increase in gross revenue to £4.4m and a 151% jump in EBITDA to £1.6m, driven by recurring streams and an expanding client base. It now serves 64 Early Payment (EP) clients with combined supplier spend of over £29bn, and more than half those clients buy multiple products. Transacted spend earning early-payment discounts reached a record £692m, generating £7.8m of rebates – up 26%.

Post period, growth slowed to 12% in July and August due to a “double whammy” of a change in government and the new Procurement Act, which disrupted public-sector purchasing patterns and pulled forward some activity into H1. Management expects normality to resume in coming months and still guides to record revenue, EBITDA and EBIT for 2025. Oxygen also returned £1.0m to TruFin during H1 and plans a record dividend for 2025.

Strategically, Oxygen is closing its US operation to focus on the UK. That trims run-rate revenue by around £380k but marginally increases profitability given the cost profile. Average remaining contract term across its 64 EP clients is a chunky 7.7 years, giving excellent revenue visibility.

Satago: reset complete and rebuilding

After last year’s loss of a Tier-1 bank contract, Satago’s gross revenue fell 56% to £0.7m and the segment recorded an adjusted loss before tax of £1.4m. The restructuring is largely complete, with a pivot to a capital-light hybrid model combining partner finance with Satago’s Lending-as-a-Service platform.

There are some green shoots: cash flow management software subscriptions rose 47% to 1,777, a new three-year partner deal was signed, and embedded finance distribution via Sage remains central. TruFin has made a small follow-on investment and now owns 97.7% of Satago. The goal remains break-even by June 2026.

Balance sheet, cash and buybacks

At 30 June, TruFin held £18.0m of cash and cash equivalents and had pared borrowings down to £0.9m (all current, with no non-current debt). Net assets rose to £47.8m. As at 31 August, the Group reported not less than £18.5m in cash or cash equivalents, and no more than £6.7m in net near-term liabilities.

The Board is leaning into buybacks. The first £4.0m programme, launched in May, completed in August with 4,107,607 shares repurchased at an average 97.4p. A second £4.0m buyback was announced alongside these results. That’s a clear signal of confidence and should be supportive to EPS if operating momentum persists.

Tax credit and operational gearing explained

The profit line benefited from a £0.5m tax credit in H1, largely from recognising deferred tax assets on losses at Oxygen and Playstack. Even so, the bigger story is operational gearing: net revenue rose £3.4m, but adjusted EBITDA increased by £4.0m and PBT by £4.4m. In plain English, TruFin is adding revenue without much extra cost, so more of each pound flows to profit.

What looks great, and what to watch

• Playstack is on a tear with rising quality, rapid capital recoupment and self-funded growth. ROIDC above 500% and IRR above 200% show outstanding capital efficiency.

• Oxygen’s model has resilience: long contracts (7.7 years), growing supplier engagement and a healthy cross-sell rate. Short-term policy turbulence appears transitory.

• The balance sheet has de-levered and cash generation is supporting both investment and buybacks.

• Concentration risk: Playstack is now the main earnings engine. Any stumble in the release slate would matter.

• Public-sector procurement timing remains a near-term swing factor for Oxygen. The US closure is sensible, but it trims revenue optics.

• Satago is still loss-making and reliant on execution of its partner-led strategy to hit the June 2026 break-even aim.

Outlook and my take

Management says H2 has started strongly, helped by July and August launches of Abiotic Factor and Void/Breaker. With more titles lined up for late 2025 and a secured 2026 portfolio, Playstack’s pipeline depth is materially better than a year ago. Oxygen expects record financials for 2025 despite the Procurement Act speed bump, and Satago is stabilised and rebuilding.

Overall, these are high-quality interim results. Profitability is scaling faster than revenue, cash generation is improving, and capital is being recycled into the highest-return buckets – namely Playstack’s pipeline and shareholder buybacks. The main asks from here are continued delivery on game releases, a normalisation in public-sector procurement, and steady progress at Satago.

For investors, the mix of operational gearing, a funded growth pipeline, and active capital returns is an attractive cocktail. It is not without risk, but on balance the trajectory is positive.