Tekcapital hails “record results” for 2020
(TEK ) said it has achieved “record results” during the year ended 30 November 2020 as the value of the company’s portfolio holdings increased by 50% over the period.
The UK intellectual property (IP) investment company hailed the “significant growth” of its portfolio companies as its portfolio valuation increased 50% to $30.5m (FY19: $20.3m).
Over the period, Tekcapital increased its holdings in Guident (increase of $6.5m), Lucyd (increase of $1.6m) and Salarius (increase of $0.7m). As a result, its net assets reached record levels, increasing by 45% to $32.7m (FY19: $22.5m).
Total revenues rose 28% to $9.9m with unrealised profit on the revaluation of investments driving that increase by $8.7m, while after-tax profit increased by 39% to US$7.7m.
Salarius®, which manufactures Microsalt® and of which Tekcapital owns 97.2% interest in, signed several agreements with leading distributors over the period as part of its efforts to expand its B2B sales of Microsalt® across the United States, Mexico and Latin America.
Elsewhere, Tekcapital’s 100% owned portfolio group Lucyd, a smart eyewear and wearable software developer, filed two design patents on its Lucyd Lyte™ e-glasses, which were launched in December, and Formed Innovative Eyewear, Inc, a new, fully owned subsidiary.
Commenting on the results, Dr. Clifford Gross, Executive Chairman said: "Through the collective efforts of our dedicated and capable team we have achieved record results in 2020. Our portfolio companies have demonstrated significant growth and we believe they are well positioned to further expand and achieve meaningful milestones in 2021."
‘In our view, all of our portfolio companies have compelling intellectual properties, capable and inspired management and address US$B+, fast growing markets,’ the Group noted.
For instance, Tekcapital said Lucyd Lyte e-glasses are positioned ‘at the intersection of the eyeglass, hearables and voice assistant markets.’ According to Fortune Business Insights, the eyewear market is projected to reach US$179bn by the end of 2026 with a CAGR of 5.7%.
According to Allied Market Research, the hearables market size is projected to reach $93.9bn by the end of 2026 with a CAGR of 17.2%. Over four billion voice assistant devices are currently in use globally with projected sales of $5.9bn by 2026 with a CAGR of 30.5%.
Meanwhile, according to Market Researcher Future Market Insights, it is estimated that the sodium reduction market will be worth around $1.76 billion by 2025 with a CAGR of 11.8%.
Tekcapital completed several fundraises over 2020, while post-period, it also completed a $5.28m raise. The Company noted to investors that until it covers all of its operating costs from service revenue and or portfolio company exits, ‘it will seek to raise additional capital to fund operations and provide follow-on investments in portfolio companies.’
The Board said it is confident that continued investment in its portfolio companies remains the right approach for potential long-term value creation. Tekcapital said it expects its portfolio companies' performance to-date and their prospects ‘to significantly expand in 2021.’
In addition, the Group said it is also exploring early-stage venture funding and conducting equity crowdfunding for some of its portfolio companies in order to accelerate growth.
Shares in Tekcapital have increased by nearly 12% in value over the past month. The stock was trading 9.09% higher this morning at 12p following the release of its “record results.”
Tekcapital’s mission is to create value from university Intellectual property that is ready for mass markets:
TEK has the World’s largest network of University IP
TEK enables rapid value creation with market ready technology selection
Multi-Year track record of significant revenue and net-asset growth
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