Tekcapital NAV growth highlights value in share price

Tekcapital, the university technology group, have released half year results and highlighted the current value in the Tekcapital share price, when compared to their portfolio’s net asset value.

Tekcapital has built a portfolio of companies based on university technologies that have the potential to make a positive impact on a large number of people’s lives, including foodtech, smart eyewear, and autonomous vehicles.

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The increase in book value of their portfolio companies were again the main component of Tekcapital’s total income which was $8m for the six months to 31st May.

The value of Tekcapital’s portfolio increased by 16% to $74.3m in the period as the group prepares to unlock further value from the portfolio through the IPOs of MicroSalt owner, Salarius, and smart eyewear company Lucyd.

Tekcapital CEO, Cliff Gross, outlined Tekcapital’s portfolio companies in their recent presentation at the July UK Investor Magazine Virtual Conference.

Tekcapital’s Discount to Net Asset Value

Tekcapital’s Net Asset Value per share rose to $0.51, a 6% increase from the $0.48 recorded in November last year. This further highlights the current Tekcapital share price discount to their NAV which stands at 33.2% with the GBP/USD rate at 1.21681 and Tekcapital shares at 28p.

With the prospect of the Salarius IPO on the horizon, investors can look forward to another possible boost to the NAV, should the IPO value the MicroSalt owner at a premium to the $7.0m valuation of their 97.2% stake in Salarius Ltd.

From a operational perspective, the Tekcapital CEO pointed to all of their portfolio companies being revenue generating with MicroSalt securing the first bulk order for their SaltMe™ products and the distribution through 3,000 retail stores in the US. This supports the case for a MicroSalt IPO and will likely help secure higher valuations.

Portfolio Progress

Elsewhere in the portfolio, London-listed oxygen device provider, Belluscura, was awarded a distribution and pricing agreement from the US Defense Logistics Agency. Tekcapital notes the agency is one one of the largest buyers in the world, suggesting we could soon see large orders for the X-PLO2R® portable oxygen device. The X-PLOR devices are designed to assist suffers of Chronic Obstructive Pulmonary Disease (COPD).

Tekcapital’s smart eye wear brand, Lucyd, has filed for an IPO on the NASDAQ and has secured distribution from a number of retailers in the US.

Autonomous vehicle safety company Guident has secured a plethora of agreements to roll out their monitoring and safety technology in trials and the testing of autonomous vehicles across the states.

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