Tekcapital PLC (LON:TEK)

Tekcapital PLC (LON:TEK)


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Tekcapital PLC RNS Release

Full Year 2018 Preliminary Results


RNS Number : 9344Q
Tekcapital plc
25 February 2019
 

 

 

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

 

25 February 2019

Tekcapital plc

("Tekcapital", "the Company" or "the Group")

 

Preliminary Results for the Year Ending 30 November 2018

 

Tekcapital plc (AIM: TEK), the UK intellectual property (IP) investment group focused on creating marketplace value from university technology, is pleased to announce its preliminary results for the year ending 30 November 2018.

 

Financial highlights

·     Net Assets increased 51% to US$16.13m, a record level (2017: US$10.68m)

·     NAV per share US$0.30 (2017: US$0.25)

·     Portfolio valuation increased 88% to US$13.70m (2017: US$7.31m)

·     Total Revenue US$6.83m (2017: US$7.26m) 

Net increase of US$5.79m in fair value of portfolio companies (2017: US$6.08m)

Revenue from services increased by 28% to US$1.04m (2017: US$0.81m) including management fees and R&D related tax refunds

·     Reduction of operating expenses by 29% to US$1.72m (2017: US$2.42m)

·     Profit before tax of US$4.55m (2017: US$4.15m)

·     Placing to raise $1.16m completed in October 2018

 

Operational highlights: Material Portfolio Companies

 

Salarius® (97.5% ownership) (www.salarius.co)

·     Completed successful test production of its salt crystals

·    Strengthened the board with the addition of industry experts with relevant experience including Eduardo Souchon a former brand manager from Pringles®, and Steve McCready, the former director of product development at Albertsons a leading $60b supermarket chain

·   Appointed Victor H. Manzanilla as its CEO. Previously Victor served as marketing director for Office Depot® and home care marketing innovation manager and brand manager at Procter & Gamble

·    Post end of period appointed Javier Contreras as COO to further its commercialization efforts. Javier has significant experience in developing supply chains with Clorox and other companies

·     Conducted focus group testing of consumer packaging

·     On track for product launch of low sodium salt and snacks in Q4 2019

 

Lucyd® (100% ownership) (www.lucyd.co)

·     Launched its online shop for high-tech and fashionable eyewear

·   Launched sales of Lucyd Loud audio glasses, proper prescription glasses that can be used to listen to music, answer your mobile phone or talk to Siri®

·     Launched Turbo Flex, a line of nearly indestructible frames and a range of designer eyeglasses

·    Post end of period appointed Richard Sherman, an American football star, as its Chief Brand Officer and brand ambassador. The company is planning to launch the Richard Sherman sunglass line in Q3 2019

·     On track to launch Lucyd Loud 2.0 in 10 designer styles in Q2 2019

·     Launched global affiliate and reseller program

·     Filed a patent application for enhancing Lucyd Loud with a smart watch display

 

Guident (100% ownership) (www.guident.co)

·    Acquired exclusive licence to U.S. patent #9,429,943 from Florida A&M. Patent enables the development of software apps for controlling autonomous vehicles using AI

·    Appointed Harald Braun as its Chairman. Mr. Braun has served as CEO of Siemens Networks USA (NYSE: SI) amongst other relevant executive roles

·    Post end of period appointed Johan De Nysschen and Daniel Grossman as directors. Mr. De Nysschen recently served as Executive Vice President of General Motors and President of Cadillac Division. Daniel Grossman helped create General Motors' mobility division, "Maven", and led all operations as COO, was a Vice President at Zipcar, which was sold to Avis Budget for ~$500m

 

Belluscura® (29% ownership) (www.belluscura.com)

·     Continued progress with its unique and patented portable oxygen concentrator (POC) programme.

·     Added Dr. Paul Bray as Vice President of Operations (previously at St. Jude Medical)  

·     Belluscura seeks to receive 510(K) clearance from the US FDA in Q3 2019 

·     The POC market is currently valued at US$1.4b per year1.

·   Post end of period, Belluscura filed an additional patent application entitled "Improved Extracorporeal Membrane Oxygenation Device, System and Related Methods," which involves incorporating and expanding their existing oxygen enrichment patent portfolio into an innovative, next generation portable artificial lung and a novel wound care treatment device.

 

Operational highlights: Corporate

·     Continued growth of technology transfer services  

·     Added two new services, technology commercialisation training and a new Invention Evaluator startup report:

Invention Evaluator has developed a new report at the request of StartUp Chile, the leading start-up accelerator in Latin America. Start-Up Chile supports several hundred companies a year, and these reports will assist their start-up companies on an on-going basis. Management believes this new IE report will contribute to growth in services revenue in future periods.

Successfully developed and delivered an advanced technology commercialisation programme in Santiago, Chile with HUB APTA and the Chilean Biotechnology Association. This programme provided training services, Invention Evaluator reports and our software apps to our Chilean customers. The programme included participants from 13 Chilean research universities and two other research institutions. The sponsor of this unique programme was the Chilean government Agency CORFO, the main Chilean agency focused on entrepreneurship, innovation and competitiveness. University training programmes represent a new line of service business for Tekcapital, and we are optimistic about delivering more of them in future periods.

 

·     Appointed Michael Rosen as Managing Director of Academic Training to accelerate growth in the LATAM market. Mr. Rosen has worked with leading research universities, and held senior management positions with Pfizer, Bristol-Myers Squibb and Searle/Monsanto

·     Appointed Eduardo Giacomazzi as business development advisor in Brazil. Eduardo was the founder and director of the Brazilian Biotechnology Association and coauthor of Brazil Biotech map

 

 

Dr. Clifford Gross, Chairman said: "I'm delighted to report that through the collective efforts of our dedicated and capable team we have achieved record Net Assets in 2018. The continued development of our portfolio companies, Salarius, Lucyd, Guident and Belluscura coupled with improved service revenues has taken the Company to a new level of financial performance, whilst we simultaneously reduced our operating expenses by 29%."

 

 

For further information, please contact: 

 

Tekcapital Plc 

Via Yellow Jersey PR 

Clifford M. Gross, Ph.D. 

 

 

 

finnCap Ltd (Nominated Adviser and Joint Broker)

+44 (0) 20 7220 0500 

Geoff Nash/ Max Bullen-Smith (Corporate Finance)

 

Camille Gochez (ECM) 

 

 

Novum Securities Limited (Joint Broker) 

+44 (0) 20 7399 9427

Colin Rowbury (Corporate Broking) 

 

 

 

Yellow Jersey Limited

+44 (0) 20 7933 8780 

Tim Thompson / Annabel Atkins 

[email protected] 

 

Tekcapital plc - The World's Largest University Network for Open Innovation

 

Tekcapital's objective is to create value from investing in new, university-developed intellectual properties. Additionally, using its proprietary discovery search engine, linked to 4,500+ universities in 160 countries, coupled with expert scientific review, Tekcapital provides a range of IP investment services to make it easy for organisations to find, evaluate and acquire university-developed technology. Tekcapital plc is quoted on the AIM market of the London Stock Exchange (AIM: symbol TEK) and is headquartered in Oxford, in the UK. For more information, please visit www.tekcapital.com.

LEI: 213800GOJTOV19FIFZ85

 

CHAIRMAN STATEMENT

 

Tekcapital brings innovations from lab to market. In 2018, four of our portfolio companies have made significant progress and we have almost doubled the value of our holdings. We have also grown our service revenues by 28% with storied clients like General Electric and a wide variety of research institutions, particularly in Latin America as well as portfolio companies management fees and R&D related tax refunds. As a result, our profits and net assets ended the year at record levels.

 

Key Portfolio companies 

Using our proprietary global university network, we provide services to universities and companies to help them commercialize their innovations. Over the past three years, using these services, we have built a compelling group of portfolio companies to commercialize high value properties we have uncovered. We believe that when you couple commercialization ready, compelling university IP with strong senior management, vibrant companies will emerge, net assets will grow, returns on invested capital will outperform the sector and exits will occur faster.

 

Salarius is a food tech business that owns a patented process to produce nanoparticle sized salt. These small crystals dissolve faster on the tongue, so you need to use less salt, while still having the same salty taste. Less salt means about 50% less sodium. Less sodium means a reduced likelihood of developing heart disease, the world's number one killer. Post-period, Salarius has added additional senior management with Fortune 500 company manufacturing experience, and is expected to begin selling Salarius salt and snacks in Q4. According to Future Market Insights, the low sodium ingredient market is estimated to reach US$1.76bn2 by 2025. Tekcapital owns 97.5% of Salarius.

 

Lucyd has built a new, online eyeglass business that combines technology with traditional eyewear.  Recently they introduced Lucyd Loud 1.0 their first proper prescription glasses that you can use to answer your phone, listen to music and talk with Siri®. The product has been well received and the company is focused on launching Lucyd Loud 2.0 in Q2 with a range of fashion forward designs. Post end of period they engaged Richard Sherman, the American football star as a brand ambassador, and will introduce a line of athletic sunglasses that he will help curate in Q3. According to Statista, the current online market for eyewear is $3.8b3 per year. Tekcapital owns 100% of Lucyd.

 

Guident owns an exclusive licence to a patented technology that enables the development of software apps for controlling autonomous vehicles. Guident has engaged Harald Braun as its Chairman. Harald was CEO of Siemens Networks USA. Post end of period they have added Johan De Nysschen to the board, the former executive VP of General Motors and president of the Cadillac Motor division. Additionally, they have also added Daniel Grossman as a director. Dan helped create General Motors' mobility division, "Maven", and led all operations as COO, and was a Vice President at Zipcar, where he helped pioneer the brand globally. Previously Dan was CEO of Chariot. Guident plans to launch the company website in Q1 and their out-licensing program in Q2 2019. According to Statista, the US market for Autonomous vehicles is projected to reach $6 billion4 by 2025. Tekcapital owns 100% of Guident.

Belluscura has developed an improved portable oxygen concentrator to provide on-the-go supplemental O2. We believe that their patented device will be smaller, lighter and quieter then competitive products and will have a replaceable filter cartridge that will allow the user to upgrade the unit as their disease progresses. Belluscura anticipates they will receive FDA clearance for their device and begin sales in late 2019. Post end of period, Belluscura, in conjunction with its exclusive research partner Separation Design Group, has expanded its oxygen therapy technology with the filing of a patent application covering oxygen enrichment inventions relating to a portable artificial lung and wound care devices. The latest patent application, entitled "Improved Extracorporeal Membrane Oxygenation Device, System and Related Methods," involves incorporating and expanding their existing oxygen enrichment patent portfolio into an innovative, next generation portable artificial lung and a novel wound care treatment device. According to Global Market Insights, the medical portable O2 market is currently $1.4bn a year and growing by more than $100m/year5. Upon receipt of clearance from the FDA, the Directors believe that Belluscura's value should significantly increase. Tekcapital owns 29% of Belluscura.

In 2018 we closed three portfolio companies that we did not think would create value for TEK shareholders, allowing capital to be allocated to projects with higher potential returns.

 

Corporate

 

In 2018 we continued with the expansion of Invention Evaluator® and other services into Latin America. We also added two new services, technology commercialisation training and an Invention Evaluator report customised for startups. Currently, approximately 46% of our administrative expenses are now covered by our service revenue. Our goal over the next few years is to have all of our operating costs covered by our service revenues. To help achieve this we have expanded our business development team. We appointed Michael Rosen as Managing Director of Academic Training to accelerate growth in the LATAM market. Mr. Rosen worked with leading research universities, and held senior management positions with Pfizer, Bristol-Myers Squibb and Searle/Monsanto. Additionally, we added Eduardo Giacomazzi as our business development advisor in Brazil. Eduardo was the founder and director of the Brazilian Biotechnology Association and coauthor of Brazil Biotech map.

Financial performance

 

2018 was the best year for value creation in the Group's short history. A 51% increase in net assets fueled by 88% increase of the NAV of its portfolio companies was further aided by a 28% increase in service revenue. The Group was able to accomplish this whilst simultaneously reducing its cost-of-sales by 19% and administrative costs by 29%. The Group has now demonstrated three consecutive years of growth in Net Assets, service revenue and returns on invested capital.

Due to the quickening pace of innovation, patented, exogenously developed university technologies are a valuable currency, and as a result, we continue to believe that the market opportunity for the Group is both large and should continue to grow apace in lock-step with our portfolio companies.

Fundraising

 

On 2 October 2018, the Company announced that it had completed a fundraising of $1.16 million gross through the placing of 11,698,335 new ordinary shares with new and existing investors at a price of 7.5 pence per share.  The issue of the new shares and receipt of the proceeds from the fundraising were received during October 2018.

 

Current Trading and Outlook

 

Having continued to develop and expand Tekcapital's existing business, the Board is confident that continued investment in our portfolio companies remains the right approach. We are also exploring a new potential investment in cannabidiol intellectual properties to address the current market demand. As we are executing on our strategy we anticipate further increases in returns on invested capital as our portfolio companies continue to grow. Whilst it is clear that the Company is progressing very well, please note that net asset values will fluctuate from period to period due to individual portfolio company performance, valuations and changes in market conditions and macro-economic financial conditions.

 

We are grateful for the patience and support of our shareholders. We are also sincerely appreciative of our dedicated, creative and hardworking team without which, none of the results reported herein would be possible.

 

Dr Clifford M Gross

Executive Chairman

25 February 2019

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

For the year ended 30 November 2018

 

 

Group

 

 

Note

 

 

Year ended 30 November 2018

 

Year ended 30 November 2017

 

 

 

US $

US $

 

 

 

 

 

Continuing Operations

 

 

 

 

Revenue from services

 

 

1,040,830

813,714

Net unrealised gain on revaluation of investments

5

 

5,792,264

6,083,225

Profit on derecognition of subsidiaries                                         

 

 

         -

         226,656

Revenue from discontinued operations

 

 

         -

         139,453

Net Revenue

 

 

       6,833,094

       7,263,048

Cost of sales

 

 

(559,630)

(692,610)

Gross Profit

 

 

6,273,464

6,570,438

 

 

 

 

 

Administrative expenses

 

 

(1,717,570)

(2,417,284)

 

 

 

 

 

Operating Profit

 

 

4,555,894

4,153,154

 

 

 

 

 

Gain/(Loss) on ordinary activities before income tax

 

 

4,555,894

4,153,154

Income tax expense

 

 

(1,269)

(1,406)

 

 

 

 

 

Gain after tax for the year

 

 

4,554,625

4,151,748

 

 

 

 

 

Other comprehensive income

 

 

 

 

Foreign exchange (loss)/gain

 

 

(135,342)

424,230

Total other comprehensive (loss)/income

 

 

(135,342)

424,230

 

 

 

 

 

Total comprehensive gain for the year

 

 

4,419,283

4,575,978

 

 

 

 

 

Gain attributable to:

 

 

 

 

Equity holders of the parent

 

 

        4,554,625

4,487,533

Non-controlling interest

 

 

-

(335,785)

 

 

 

4,554,625

4,151,748

 

 

 

 

 

Total comprehensive gain attributable to:

 

 

 

 

Equity holders of the parent

 

 

4,419,283

4,808,059

Non-controlling interest

 

 

-

(232,081)

 

 

 

4,419,283

4,575,978

 

 

 

 

 

 

  Gain per share

Basic earnings and diluted earnings per share

 

 

 

 

Basic earnings per share per share

4

 

0.103

0.108

Diluted earnings per share                                                        

4

 

0.103

0.108

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

At 30 November 2018

 

 

Group

 

 

 

 

As at

 30 November 2018

 

As at

 30 November 2017

 

 

 

US $

US $

Assets

 

 

 

 

Non-current assets

 

 

 

 

Intangible assets

Financial assets at fair value through profit and loss

 

5

 

838,769

13,704,354

838,769

7,307,696

Convertible loan notes

 

 

250,000

-

Property, plant and equipment

 

 

33,489

6,005

 

 

 

14,826,612

8,152,470

 

 

 

 

 

Current assets

 

 

 

 

Trade and other receivables

 

 

429,373

963,911

Cash and cash equivalents

 

 

1,165,442

1,797,729

 

 

 

1,594,815

2,761,640

 

 

 

 

 

Total assets

 

 

16,421,427

10,914,110

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

 

285,957

237,649

Current income tax liabilities

 

 

500

500

 

 

 

286,457

238,149

 

 

 

 

 

Total liabilities

 

 

286,457

238,149

 

 

 

 

 

Net assets

 

 

16,134,970

10,675,961

 

 

 

 

 

Equity attributable to the owners of the parent

 

 

 

 

Ordinary shares

 

 

326,036

264,221

Share premium

 

 

10,218,805

9,271,098

Retained earnings

 

 

5,516,655

931,826

Translation reserve

 

 

145,643

280,985

Merger reserves

 

 

(72,169)

(72,169)

 

 

 

 

 

Total equity

 

 

16,134,970

10,675,961

 

  

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

For the year ended 30 November 2018

 

                                                                                                        

 

Attributable to equity holders of the parent company

 

 

 

 

Group

 

Ordinary Shares

US $

 

Share Premium

US $

 

Translation Reserve

US $

 

Merger reserve

US $

 

Retained earnings

US $

 

Total

 

US $

Non-controlling interest

US $

 

Total Equity

US $

Balance at 30 November 2016

228,052

6,377,383

(39,540)

(72,169)

(3,778,052)

2,715,674

421,400

3,137,074

Share issue

34,879

3,017,010

 

 

 

3,051,889

 

3,051,889

Cost of share issue

-

(202,625)

-

-

-

(202,625)

-

(202,625)

Gain/(loss) for the year

-

-

-

-

4,487,533

4,487,533

(335,785)

4,151,748

Other comprehensive income

-

-

320,525

-

-

320,525

103,705

424,230

Share based payments

-

-

-

-

70,318

70,318

-

70,318

Warrants exercised

1,290

79,330

-

-

-

80,620

-

80,620

New funds into non-controlling interest

-

-

-

-

-

-

323,300

323,300

Gain/(loss) arising from change in NCI

-

-

-

-

      152,026

152,026

(152,026)

-

Derecognition of NCI as a result of change in the accounting policy

-

-

-

-

                  -

-

(360,593)

(360,593)

Balance at 30 November 2017

264,221

9,271,098

280,985

(72,169)

931,826

10,675,961

-

10,675,961

Share issue

61,815

1,097,216

 

 

 

1,159,031

-

1,159,031

Cost of share issue

-

(149,509)

-

-

-

(149,509)

-

(149,509)

Gain for the year

-

-

-

-

4,554,625

4,554,625

              -

4,554,625

Other comprehensive income

-

-

(135,342)

-

-

(135,342)

                -

(135,342)

Share based payments

-

-

-

-

30,204

30,204

-

30,204

Balance at 30 November 2018

326,036

10,218,805

145,643

(72,169)

5,516,655

16,134,970

-

16,134,970

 

 

 

 

Share capital represents the amount subscribed for share capital at nominal value.

 

Share premium represents the amount subscribed for share capital in excess of nominal value and net of any directly attributable issue costs.

 

The merger reserve arose on the share for share exchange undertaken by the Company with Tekcapital Europe Limited on 18 February 2014.

 

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 

For the year ended 30 November 2018

 

 

 

 

Group

 

 

Note

 

For the year ended

 30 November 2018

For the year ended

 30 November 2017

 

 

 

US $

US $

Cash flows from operating activities

 

 

 

 

Cash used in operations

 

 

(866,377)

(2,739,179)

Taxation paid

 

 

(1,269)

(2,206)

 

 

 

 

 

Net cash used in operating activities

 

 

(867,646)

(2,741,385)6

 

 

 

 

 

Cash flows from investing activities

Deemed disposal of subsidiary, net of cash acquired

 

 

 

-

 

(596,176)

Purchase of financial assets at fair value through profit and loss

 

 

(693,413)

-

Purchases of property, plant and equipment

 

 

(45,841)

(15,755)

Proceeds from sale of property, plan and equipment

 

 

80

-

Purchases of intangible assets

 

 

-

(43,277)

Interest received

 

 

-

-

 

 

 

 

 

Net cash used in investing activities

 

 

(739,174)

(655,208)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Proceeds from issuance of ordinary shares

 

 

1,159,031

3,051,889

Process from issue of warrants shares

 

 

-

80,620

Costs of raising finance

 

 

(149,508)

(202,625)

Cash from non-controlling interest

 

 

-

323,300

 

 

 

 

 

Net cash from financing activities

 

 

1,009,523

3,253,184

 

 

 

 

 

Net (decrease) in cash and cash equivalents*

 

 

(597,297)

(143,410)

Cash and cash equivalents at beginning of year

 

 

1,797,729

1,839,603

Exchange gain/(loss) on cash and cash equivalents

 

 

           (34,990)

           101,536

 

 

 

 

 

Cash and cash equivalents at end of year

 

 

1,165,442

1,797,729

 

 

 

 

 

Non-cash investing activities:

Conversion of $0.56m loan receivable from Belluscura Limited into equity classified as Additions in Note 5.

 

 

 

 

Notes to the preliminary results to 30 November 2018

 

1.    General information

Tekcapital PLC is a company incorporated in England and Wales and domiciled in the UK. The address of the registered office is 12 New Fetter Lane, London, United Kingdom, EC4A 1JP. The Company is a public limited company, which is listed on the AIM market of the London Stock Exchange in 2014.

 

These preliminary results have been prepared on the basis of the accounting policies which are to be set out in Tekcapital PLC Group's annual report and financial statements for the year ended 30 November 2018.

 

The financial information set out above does not constitute the Group's statutory financial statements for the years ended 30 November 2018 or 2017 but is derived from those financial statements. Statutory financial statements for 2017 have been delivered to the Registrar of Companies and distributed to shareholders, and those for 2018 will be respectively delivered and distributed on or before 15 March 2019.

 

 

2.    Basis of preparation

 

The financial statements of Tekcapital PLC Group have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRSIC) as adopted by the European Union and the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.

 

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements will be disclosed in note 4 of the FY 2018 accounts. Those assumptions and estimates include discount rates, sales projections and licence royalty rates used in the valuation of the Group's main portfolio companies such as Guident, Lucyd and Salarius and will also be disclosed in Note 12 to the FY18 accounts.

 

 

3.    Going concern

The Group meets its day to day working capital requirements through its service offerings, bank facilities and monies raised in follow-on offerings. The Group's forecasts and projections indicate that the Group has sufficient cash reserves to operate within the level of its current facilities. Whilst it is the Group's intention to rely on the available cash reserves, future income generated from its growing service offerings and reductions in its cost base, a negative variance in the forecasts and projections would make the Group's ability to continue as a going concern dependent on an additional fund raise. If the Group's forecasts are not achieved, the Directors would seek to raise the additional funds through equity issues. After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.

 

The Company therefore continues to adopt the going concern basis in preparing both its consolidated financial statements and for its own financial statements.

 

 

4.    Earnings per share

 

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of Ordinary Shares outstanding during the period.

Diluted earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the sum of weighted average number of (1) Ordinary Shares outstanding during the period and (2) any dilutive potential Ordinary Shares outstanding at 30 November 2018.

 

 

               2018

         2017

 

 

 

 

Profits attributable to equity holders of the Group (US$)

  4,554,625

4,487,533

 

 

 

 

 

Weighted average number of Ordinary Shares in issue:

 

 

 

 

 

 

 

 

Basic

44,100,930

41,512,012

 

Diluted

44,120,817

41,718,262

 

 

 

 

 

Basic profit per share (US$)

0.103

0.108

 

Diluted profit per share (US$)

0.103

0.108

 

           

 

 

5.   Financial Assets at Fair Value through Profit and Loss

Group's investments in portfolio companies are listed below and classified as equity instruments. The principal place of business for portfolio companies listed below is England and Wales.

 

 

 

 

 

 

 

 

 

Group

Proportion of ordinary shares held

1 Dec 2017

Additions

Disposal

FX reval

Fair Value change

30 Nov 2018

 

 

US $

US $

US $

 

US $

US $

 

Guident Limited

100.00%

-

23,494

-

(7)

8,521,616

8,545,103

Lucyd Limited

100.00%

6,023,954

15,760

-

(16,757)

(2,982,341)

3,040,616

Salarius Limited

100.00%

15,128

27,466

-

(708)

881,944

923,832

Belluscura Limited

29.22%

981,762

560,090

 -

(60,839)

  (354,698)

1,126,315

Smart Food Tek Limited

100.00%

44,167

972

-

(2,066)

-

43,072

eSoma Limited

100.00%

10,983

13,768

-

(1)

-

24,750

Non Invasive Glucose Tek Limited

100.00%

24,199

425

-

(981)

(22,976)

666

eGravitas Limited

100.00%

154,535

43,955

-

(5,807)

(192,683)

-

Frigidus Limited

100.00%

52,968

7,483

-

(1,853)

(58,598)

-

Total Balance                        

 

7,307,696

693,413

-

(89,019)

5,792,264

13,704,354

                             

 

 

Total fair value gain of $5.8m for the year reflects uplift in value of shares of Guident and Salarius, offset primarily by reduction in valuation of Lucyd Limited. Considering early stage of commercialisation, fair value of remaining portfolio companies was recorded based on the cost of acquired IP, as their carrying amounts represent a reasonable approximation of fair value. The Group closed three portfolio companies, allowing capital to be allocated to projects with higher potential returns.

               

Portfolio company valuations reflect IFRS fair value guidelines and best practices. All of our portfolio companies are either independently valued by recognized experts, valued at a recent arms-length funding round or valued at the company's cost for the acquisition of the IP rights.

 

The valuation techniques used fall primarily under Level 3- Other techniques as well as Level 2 - Observable techniques, other than quoted prices. In applying valuation techniques to determine the fair value of unquoted equity investments the Group makes estimates and assumptions regarding the future potential of the investments. The potential impact of changes in these estimates and assumptions can have a material impact on the Group's financial statements.

 

This impact, including disclosures on valuation techniques, significant estimates and sensitivity analysis will be included in the 2018 Annual Report.

 

 

6.    Annual Report


The annual report will be sent to shareholders in March 2019 and will also be available at the registered office of Tekcapital PLC at 12 New Fetter Lane, London, EC4A 1JP and will be made available on the Company's website at www.tekcapital.com.

 

 

1Oxygen Cylinders Market Size and Competitive Market Share & Forecast, 2017 –2024 (https://www.gminsights.com/industry-analysis/medical-oxygen-concentrators-market-report)

2https://www.futuremarketinsights.com/reports/sodium-reduction-ingredient-market

3https://www.statista.com/outlook/12000000/109/eyewear/united-states#market-onlineRevenueShare

4https://www.statista.com/statistics/428692/projected-size-of-global-autonomous-vehicle-market-by-vehicle-type/

5Global Market Insights:Oxygen Cylinders Market Size and Competitive Market Share & Forecast, 2017 –2024

6Please note approximately $0.8m of cash used was attributed to Belluscura plc through deconsolidation date of May 1, 2017

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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