Supply@ME Capital : UNAUDITED SECOND INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SUPPLY@ME CAPITAL PLC (PREVIOUSLY ABAL GROUP PLC)

UNAUDITED SECOND INTERIM CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS

FOR THE 12 MONTH PERIOD ENDED 31 MARCH 2020

COMPANY INFORMATION

Directors

Enrico Camerinelli Susanne Chishti Dominic White Alessandro Zamboni

SecretaryCompany number

MSP Corporate Services Limited 27/28 Eastcastle Street

London

W1W 8DH

03936915

Registered office

27/28 Eastcastle Street London

W1W 8DH

Auditor

Grant Thornton UK LLP Southampton Science Park Southampton

SO16 7QJ

Broker

Stanford Capital Partners Ltd 15-17 Eldon Street

London

EC2M 7LD

Solicitors

Charles Russell Speechlys LLP 5 Fleet Place

London EC4M 7RD

Bankers

Metro Bank Plc

1 Southampton Row Holborn

London WC1B 5HA

Registrars

Neville Registrars Limited Neville House Southampton SO14 2JF

Public Relations

Cicero/AMO

3 Pancras Square London

N1C 4AG

COMPANY INFORMATION

Accountant

Wilkins Kennedy Carnac Place Cams Hall Estate Fareham Portsmouth PO16 8UY

Investor Relations

Walbrook PR Ltd 4 Lombard Street London

Website

EC3V 9HDwww.supplymecapital.com

CONTENTS

Page
Chairman's letter and Chief Executive report	1
Condensed consolidated statement of comprehensive income	5
Condensed consolidated statement of financial position	6
Condensed consolidated statement of changes in equity	7
Condensed consolidated statement of cash flows	8
Notes to the financial statements	9

CHAIRMAN'S LETTER AND CHIEF EXECUTIVE'S REPORT

FOR THE 12 MONTH PERIOD ENDED 31 MARCH 2020

1. Chairman's letter

The highlight for Supply@Me Capital Plc (theCompanyorSYME) in the 12 months to 31 March 2020 was the successful acquisition, via a reverse takeover, of Supply@Me S.r.l. and a Main Market Listing on the London Stock Exchange just prior to the period end.

Previous to this, the Company (formerly named Abal Group Plc) traded on London's Alternative Investment Market (AIM). Pursuant to AIM Rule 15, the Company became a cash shell on 5 February 2019 following the completion of the disposal of its core operating business (known as Imaginatik), and trading in the Company's shares was subsequently suspended on 6 August 2019. On 27 September 2019 the Company announced that it had entered into a conditional sale and purchase agreement to acquire the entire issued share capital of Supply@Me Srl. Cancellation of the admission to trading of the Company's ordinary shares on AIM took effect on 7 February 2020, in accordance with AIM Rule 41. The Main Market Listing of SYME successfully completed on the 23 March 2020, eight days before the end of this reporting period.

SYME is an early stage "FinTech" business which delivers an innovative technology platform for inventory monetisation that enables a wide range of manufacturing and trading customers to improve their working capital position by releasing capital from their inventory stock. SYME matches the working capital needs of its customers with capital invested by its inventory funders. Investors in SYME shares gain exposure to the fee income generated by the platform from inventory monetisation. Inventory funders invest in instruments that are secured on inventory portfolios. The companies that can benefit from the SYME system are found across a wide range of industry sectors including wholesale, retailing and general industrials.

Notwithstanding the COVID-19 backdrop, the Board believes that SYME's customer base remains strong and that the demand for inventory monetisation is growing. Whereas Just In Time (JIT) inventory strategies were previously the standard for manufacturing and trading businesses, increasingly following COVID-19, many such businesses are consciously choosing to build inventory to avoid supply chain shortages and subsequent loss of trade. Manufacturing locally rather than thousands of miles away and increasing inventory held may become the new norm. The Company is aware that retailers both on and offline are seeking suppliers who can guarantee inventory levels through a combination of in-house manufacturing, local production capabilities and higher levels of stock held. This is positive development for SYME's business model as companies will look to monetise the higher volumes of stock being held.

The impact of COVID-19 on the inventory funding market is more difficult to interpret, especially as interest rates are currently at historic lows. SYME's inventory investment asset will offer a relative positive margin compared to interest rates and many other rate linked investments. However, investors are undoubtedly more cautious, being less willing to move quickly into new asset classes, so the risk premium attached to alternative investment products has increased to reflect this. This theme will be developed in the Chief Executive's report.

Despite COVID-19 we still remain extremely confident for the future but as a result of the approximate three to four month delay to our business plan caused by COVID-19 we are having to push back our forecasts with a consequential impact on market expectations.

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