Tekcapital further confirmed the canyon-sized disparity between the net asset value of its portfolio and its current market cap when it released its full-year results on Wednesday.
Outlining a year of progress for its portfolio companies in the full-year period ending 31 December, Tekcapital confirmed that its portfolio’s valuation at the end of the period was $47.9m.
However, investors will be most interested in the post-period evolution of the portfolio’s net asset value, which stood at $75m as of 20th May. This compares to a current market cap of just £21m.
Should Tekcapital shares close the gap on the portfolio’s NAV, it would suggest an upside in the shares of roughly 200%. And this is not taking into consideration any further growth in the portfolio’s value.
“The Group has made good progress during 2023,” said Tekcapital CEO, Dr Clifford Gross.
“Our portfolio companies have demonstrated solid business growth, and we believe they should achieve additional significant milestones by the end of 2024. Notably during the year, Innovative Eyewear Inc. launched the world’s first ChatGPT enabled eyewear.
“Guident signed re-seller agreements with both Auvetech a leading Estonia autonomous minibus manufacturer and Adastec a leading AV software provider. Guident’s RMCC software will be included in all Auvetech MiCa vehicles and as part of Adastec’s autonomous software stack for future deployments.
“Additionally, Guident has continued to improve and rigorously test its regenerative shock absorbers. Numerous Tier-1 companies are evaluating the shocks for potential inclusion in their electric vehicles.
“We are also pleased to highlight Microsalt’s strong progress ending the year by growing its revenues, signing up additional customers and launching its low sodium saltshakers in approximately 400 supermarkets and engaging its advisory team for their AIM IPO which was completed on 1 Feb 2024.
“Our financial results were negatively impacted by the reduction in the observable, closing share prices of both innovative Eyewear and Belluscura at the end of the period, which we believe were in large measure the result of exogenous macro-economic and capital market factors.
“We remain steadfast and excited about the commercial progress of our portfolio companies in 2023 and for their future prospects for the remainder of 2024. As per our mission and investment objective, we believe that all of our key portfolio companies have the potential to make a positive impact on the lives of the customers they serve, as well as produce meaningful returns on invested capital for our shareholders over the long term.”
Tekcapital’s bottom line reflects underlying portfolio company valuation, and judging by the NAV as of a few days ago, 2024 will be a bumper year for profitability, should share prices hold at current levels.
We spoke with the upbeat and bullish Tekcapital CEO, Dr Clifford Gross, who provided an intriguing insight into the company’s plans for a new Generative AI company that he says will launch this summer.
Tekcapital have previously announced plans for a fifth portfolio company and these plans now look set to spring into action with a new entity to capture growth in the burgeoning Generative AI industry.
