31st May 2023 10:32
(Alliance News) - NetScientific PLC on Wednesday said its annual loss increased last year amid decreased revenue, but committed to progressing its "sustainable business model" and said it was optimistic about future opportunities.
NetScientific is a London-based investment firm focused on life science, sustainability and technology companies. It said its pretax loss widened to GBP3.7 million in 2022, compared with its GBP2.9 million loss the year before.
The company's annual revenue decreased by 9.3% to GBP1.0 million from GBP1.1 million. Revenue for its corporate finance and venture capital subsidiary EMV Capital Ltd increased 15% to GBP1.2 million.
Meanwhile general and administrative expenses increased 45% to GBP3.7 million. Research and development costs increased 3.7% to GBP1.4 million, and cost of sales rose by 88% to GBP222,000.
NetScientific said its cash and equivalents balance decreased 69% to GBP852,000 at December 31 from GBP2.7 million at the same time one year prior. It also reported around GBP9.3 million held as readily realisable quoted securities at May 26.
Looking ahead, NetScientific said it has "a robust investment model with ample room for growth and development" and the potential for substantial returns. It intends to increase its net asset value through "proactive portfolio management", and to "progress its sustainable business model" through various tactics including higher fee generation from EMV as well as selective divestments.
"We are delighted with the company's strong performance during 2022, showing early validation of our model - despite significant market volatility," said Chief Executive Officer Ilian Iliev. "Our team is committed to delivering the agreed growth strategy, developing the portfolio companies and exploiting opportunities to unlock and realise the requisite shareholder returns.
"We have a powerful investment model with the potential for significant investment returns in the deep tech space, and in line with an evolving VC industry. We are excited about the future prospects of the company."
Shares in NetScientific were down 1.8% at 69.25 pence in London on Wednesday.
By Emma Curzon, Alliance News reporter
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