Tekcapital PLC (LON:TEK) shares jumped on Friday afternoon as the UK intellectual property investment group revealed it turned to profit in 2017 following a revaluation of portfolio companies.
The AIM-listed firm said for the year-ended 30 November 2017, its total revenue was US$7.26mln, reflecting an unrealised profit of the revaluation of portfolio companies of US$6mln.
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The group said its profit before tax was US$4.15mln compared to a loss of US$2.5mln a year ago, reflecting primarily an appreciation of portfolio companies.
Tekcapital reported a net increase in the fair value of portfolio companies due to appreciation in shares of Lucyd Ltd (US$5.8mln) and Belluscura plc (US$249,832), with other portfolio companies making ‘good progress’.
The company said its revenue from services and products increased by 25% to US$953,167 reflecting growth in the Latin America market and technology transfer services.
Dr Clifford Gross, executive chairman of the company, commented: “With patented university and corporate technologies becoming an increasingly valued currency, we continue to believe that the market opportunity for the Group is both large and should continue to grow apace."
In late afternoon trading, Tekcapital’s shares jumped 22.6% higher to 19.00p.