IT investment firm Tern PLC (LON:TERN) saw a big jump in Total assets in the latest half year, due mainly to its April acquisition of Device Authority Inc, it told investors, as it looks to further progress in the second half and swung to a pre-tax profit.
Total assets as at June 30 stood at £7.5mln compared to £1.2mln at the same date last year.
The pre-tax profit was £4.5mln versus a loss of £87,534 in the six months to June 30, 2015.
Device Authority was bought by the firm's cyber encryption specialist Cryptosoft, its main investment, increasing the value of Tern's shareholding in the group to £7.14mln.
Progress in the half at the cyber firm has been rapid, with strategic alliances struck with ten major players, and five since the beginning of 2016, including with computer titans Dell and Intel.
The merger of the two groups (Cryptosoft and Device Authority) has led to around a 20% reduction in overheads, while commercial contracts are now increasing in number and size, the group said.
The sales pipeline is also growing.
Tern noted that when Cryptosoft was acquired in September 2014, it consisted of a piece of advanced software and a team of three engineers.
"In the 12 months since the new management team was installed, it has grown into an international business with bases in the UK and the USA, it has established strategic partnerships with world renowned software and hardware businesses, created a growing sales pipeline and expanded the team to more than 15 very talented employees," it said.
Shares lost 2.86% to stand at 8.5p each.