14th Aug 2018 15:15
LONDON (Alliance News) - Intellectual property investment company Tekcapital PLC on Tuesday reported a drop in interim revenue and profit primarily due to a first-time recognition of the fair value of its portfolio companies in the same period last year.
In the six months ended May, Tekcapital's pretax profit was USD105,996, down from USD1.6 million a year before.
Net unrealised profit on the revaluation of investments in the period dropped to USD638,852 from USD2.9 million.
Tekcapital's revenue decreased to USD1.3 million from USD3.8 million.
Th company's net assets increased 34% to USD10.7 million from USD8.0 million the previous year, leading to an increase in net asset per share to USD0.25 from USD0.19.
The company has a cash balance of USD1.4 million, down from USD1.8 million at the end of its financial year 2017 in November.
Looking ahead, the company is confident of increasing its returns on invested capital and profitability. Tekcapital is expecting, however, fluctuations in its net asset values from period to period.
Chairman Clifford Gross said: "We are pleased to report successful half-year performance for the group, which has noted increases in service revenue while achieving important development milestones for the successful commercialization of technologies for three of its portfolio companies. We believe our unique approach of acquiring and commercialising university IP innovations, coupled with providing a range of IP value creation services to universities and corporates, has uniquely positioned us to create market value from university discoveries more efficiently than traditional IP investment companies."
Shares in Tekcapital were down 2.7% Tuesday at 12.17 pence each.
Related Shares:
TekCapital