What Tekcapital does
IP development: Tekcapital PLC’s (LON:TEK) core business is to commercialise innovations developed in universities.
A related services business helps companies find, evaluate, and license university technologies.
Salarius (97.5%) produces a proprietary low sodium natural salt called MicroSalt, whose crystals deliver the same sensation of saltiness with 50% less sodium. Salarius has a fair value of $2.7mln. In December, it brought on board food ingredient broker, Accurate Ingredients to market it in US, and noted that 20 new potential customers are in the process of testing and evaluating the product.
Lucyd (100% owned by Tekcapital) is an online manufacturer and retailer of augmented reality eyewear. The fair value fell by $1.6m to $1.4m in the period just reported but Lucyd has just launched a new product ‘Sherman Shades by Lucyd’ endorsed by the cornerback of the San Francisco 49ers Richard Sherman.
Guident (100%) is an owner of IP for technology used in apps to control autonomous vehicles (AVs). Fair value is US$12.7mlm, arie of US$4.1mln. The autonomous vehicle market in the US alone is projected to reach $35bn by 2033 for autonomous vehicles and drones,
Belluscura (19.2%) has developed a patented portable oxygen concentrator. In September it month announced that it has raised £750,000 at a 50% premium book value and re-affirmed FDA approval is expected later this year with launch commercially in 2020.
How is it doing
Revenue in the half-year to May 2019 increased from US$1.3m to $5.4m largely from unrealised investment gains and Guident in particular.
NAV per share increased to US$0.38 from US$0.30.
FinnCap has a price target of 32p on the stock based on its valuation.
What the boss says: Clifford Gross, chairman
“We are pleased to report successful half-year performance for the group, which has noted record total revenue, profits and net assets for the period whilst reporting important development milestones for its portfolio companies."
“We believe our unique approach of acquiring and commercialising university IP innovations, coupled with providing a range of IP services continues to deliver strong returns on invested capital."