RNS Number : 5123A
TMT Investments PLC
15 August 2024
 

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.

 

15 August 2024

TMT INVESTMENTS PLC

("TMT" or the "Company")

 

Half-year report for the six months to 30 June 2024

 

TMT Investments Plc (AIM: TMT), the venture capital company investing in high-growth technology companies, is pleased to announce its unaudited interim results for the half-year ended 30 June 2024.

 

Highlights:

 

·    NAV per share of US$6.62 (unchanged from US$6.62 as of 31 December 2023)

·    Total NAV of US$208.1 million (US$208.1 million as of 31 December 2023)

·    IRR from inception to 30 June 2024 of 15.3% per annum (16.0% to 31 December 2023)

·    TMT's 100th investee company, Praktika.AI, became the fastest significant positive revaluation in TMT's history, generating a 12.4 times paper return in just 5 months

·    US$1.9 million of investments in the first half of 2024

·    US$5.8 million of disposals for cash during the period

·    US$9.8 million in cash and cash equivalent reserves as of 14 August 2024

 

Alexander Selegenev, Executive Director of TMT, commented:

 

"In the first half of 2024, TMT's net asset value remained unchanged, albeit reflecting the continuing divergence between good and poor performers within the Company's portfolio.

 

TMT's portfolio benefited from positive revaluations of seven of its investee companies (Praktika.AI, Phoenix, OneNotary, MedVidi, Affise, Educate Online, and Mainframe).

 

At the same time, these positive revaluations have been counterbalanced by full and partial write-downs in the value of ten of the Company's investments (Backblaze, ShareThis, Adwisely, Hinterview, Femtech, Aurabeat, Estateguru, eAgronom, Bairro, and GameOn), in line with TMT's highly prudent approach.

 

The largest write-down related to NASDAQ-traded Backblaze Inc., whose share price was highly volatile in the first half of 2024. Nevertheless, TMT successfully capitalised on the periods of strength in Backblaze's share price by disposing of Backblaze shares for a total of US$3.8 million net during the period.

 

The majority of TMT's portfolio companies, including its largest holdings, continue to demonstrate good business progress and are adapting well to the challenges of the current environment.  Some of the portfolio companies are currently fundraising, and TMT expects further positive revaluations by the time of the publication of its 2024 annual results. Notwithstanding these positive expectations, we highlight that the well demonstrated divergence between good and less fortunate performers will continue.

 

We continue to see a number of outstanding companies that are thriving in the current market environment and are attracting large levels of funding thanks to their strong business models and execution.  We have therefore continued to make investments selectively in such companies.

 

With cash and cash equivalent reserves of US$9.8 million as of 14 August 2024, TMT is well positioned to ride out the current market volatility and to continue investing in companies that meet our investment criteria, while disposing of investments, in whole or in part, where there is an opportunity to maximise shareholder value.

 

We look forward to keeping shareholders updated on relevant developments in due course."

 

For further information contact:

 

TMT Investments Plc

Alexander Selegenev

Executive Director

www.tmtinvestments.com

 

+44 370 707 4040

(Computershare - Company Secretary)

alexander.selegenev@tmtinvestments.com

 

Strand Hanson Limited

(Nominated Adviser)

James Bellman / James Dance

 

+44 (0)20 7409 3494

Cavendish Capital Markets Limited

(Joint Broker)

Ben Jeynes / George Lawson / Charlie Combe

 

+44 (0)20 7220 0500

Hybridan LLP

(Joint Broker)

Claire Louise Noyce

 

+44 (0)20 3764 2341

Kinlan Communications

David Hothersall

 

+44 (0)20 7638 3435

davidh@kinlan.net

 

About TMT Investments Plc

 

TMT Investments Plc invests in high-growth technology companies globally across a number of core specialist sectors.  Founded in 2010, TMT has a current investment portfolio of over 50 companies and net assets of US$208 million as of 30 June 2024.  The Company's objective is to generate an attractive rate of return for shareholders, predominantly through capital appreciation.  The Company is traded on the AIM market of the London Stock Exchange. www.tmtinvestments.com.

 

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EXECUTIVE DIRECTOR'S STATEMENT

 

In the first half of 2024, the venture capital segment, along with the broader markets, continued to experience a higher degree of volatility.

 

In line with the market, TMT's portfolio has continued to see an increased divergence between its stronger and weaker performers.  Despite the ongoing challenges in the macroeconomic and political environment, investors in the first half of 2024 continued to back fast-growing, high-quality digital technology companies.  As a result, we were pleased to see OneNotary, Praktika.AI, Phoenix, Educate Online, MedVidi, and Affise receive further validation of their progress by raising fresh capital at valuation levels that have resulted in positive revaluations for TMT in the period to 30 June 2024.

 

In particular, TMT's investment in Praktika.AI, made in December 2023, has delivered the Company's fastest significant revaluation of a portfolio company in TMT's history, generating a 12.4-times return in only five months. This revaluation delivers a perfect example of the exceptional venture capital opportunity presented by those start-ups whose business models and products are based on genuine technologies and applications.

 

In parallel, TMT continues to apply a highly prudent approach to valuing its portfolio investments and therefore regularly reviews and writes down investments that are not showing the progress TMT believes is required to justify the previously reported valuation level.  As a result, during the period, TMT partially or fully wrote down the value of ten of its investments.  This resulted in US$8.0 million of partial and full write-downs (excluding write-downs related purely to exchange rate fluctuations).

 

In particular, the value of TMT's equity stake in NASDAQ-traded cloud storage company Backblaze (www.backblaze.com), varied significantly during the period, partly driven by the volatility in the share prices of many US listed publicly traded technology companies.  Based on Backblaze's closing mid-market price of US$6.16 per share as of 28 June 2024, TMT's stake in Backblaze recorded a US$3.2 million decrease in value compared to 29 December 2023.  Backblaze's business has been developing well, recording $31.3m in revenue in Q2 2024, an increase of 27.2% compared to the same period in 2023. Backblaze remains adjusted-EBITDA-positive and sufficiently capitalised, with a Company estimated net debt position of approximately US$4.7 million as of 30 June 2024.  TMT availed itself of the opportunity provided by Backblaze's improved share price in early 2024 to dispose of Backblaze shares for a total net consideration of US$3.8 million. Backblaze's closing mid-market price on 14 August 2024 was US$6.31 per share.

 

NAV per share

 

The Company's NAV per share of US$6.62 as of 30 June 2024, was unchanged from 31 December 2023.

 

Operating expenses

 

In the first half of 2024, the Company's administrative expenses of US$0.66 million were broadly in line with the corresponding 2023 levels (first half of 2023: US$0.64 million), reflecting the Company's subdued level of investment and business development activities during the period.

 

Financial position

 

As of 30 June 2024, the Company had no financial debt and cash and cash equivalent reserves of US$9.9 million (31 December 2023: US$6.6 million).  As of 14 August 2024, the Company had cash and cash equivalent reserves of US$9.8 million.

 

Outlook

 

TMT has a globally diversified investment portfolio of over 50 companies, focused primarily on Big Data/Cloud, SaaS (software-as-a-service), Mobility, and FinTech.

 

Despite the ongoing market and political volatility, investors continue to invest in high-quality technology businesses at the appropriate valuation levels.  TMT is continuing to identify such opportunities very selectively, whilst employing a generally cautious investment approach.  With no financial debt and cash and cash equivalent reserves of US$9.8 million as of 14 August 2024, TMT is well positioned to ride out the current market volatility and to continue making investments and realising full and partial disposals when the right opportunities present themselves.

 

Alexander Selegenev

Executive Director

14 August 2024

 

 

PORTFOLIO DEVELOPMENTS

 

The following developments have had an impact on, and are reflected in, the Company's NAV and/or unaudited financial statements as of 30 June 2024 in accordance with applicable accounting standards.

 

Profitable full and partial cash exits, and positive revaluations:

 

·    TMT received an additional US$1.7 million in dividends from Hugo, as part of the consideration for Hugo's disposal of its food delivery and quick commerce business in Central America to Delivery Hero completed in 2022.

 

·    TMT disposed of a part of its shares in NASDAQ-traded Backblaze for a total net consideration of US$3.8 million.

 

The following of the Company's portfolio investments were positively revalued as of 30 June 2024:

 

Portfolio company

Portfolio company description

Positive revaluation amount (US$)

As % of fair value reported as of 31 Dec 2023

Basis for revaluation

Praktika.AI

A language learning app, with personalised AI-powered avatar tutors (www.praktika.ai)

4,577,073

1,144%

New funding round (equity)

Educate Online Inc.

Distance education platform for children and young adults aged 4-19 (www.educate-online.io)

2,847,457

100%

New funding round (simple agreement for future equity ("SAFE"))

MedVidi, Inc.

Online provider of medication management and mental care services (www.medvidi.com)

1,530,000

149%

New funding round (SAFE)

Affise

Performance marketing and affiliate management solution (www.affise.com)

815,637

45%

New funding round (SAFE)

Phoenix Digital Health, Inc.

Digital health clinic for men (www.phoenix.ca)

785,020

152%

New funding round (equity)

OneNotary

Online notary service (https://onenotary.us)

424,377

85%

New funding round (equity)

Mainframe Group, Inc.

Software development and marketing services company building products for the decentralised finance ecosystem (www.mainframe.co)

30,407

N/A

(position was previously fully written off)

Cash exit transaction completed in July 2024

Total

 

11,009,971

 

 

 

Negative revaluations:

 

The following of the Company's portfolio investments were negatively revalued as of 30 June 2024:

 

Portfolio Company

Write-down amount (US$)

Reduction as % of fair value reported as of 31 Dec 2023

Reasons for write-down

Backblaze

3,184,974

12%

Based on the closing mid-market price of US$6.16 per share on 28 June 2024 (incl. US$3.8 million net partial disposal proceeds received in the first half of 2024)

GameOn

1,030,000

100%

Under review

Sharethis

570,030

100%

Doubts over likelihood of exiting this legacy inherited investment

Adwisely

800,000

50%

Business negatively affected by the challenging market conditions

Aurabeat

515,000

50%

Demand for the flagship COVID-related products declined; new products need time to be rolled out

Estateguru

426,750*

52%

Business negatively affected by the challenging market conditions

Bairro

554,775*

52%

Business negatively affected by the challenging market conditions

Hinterview

433,504*

50%

Business negatively affected by the current economic environment

Femtech

461,805*

50%

Business negatively affected by the challenging market conditions; exit prospects unclear

eAgronom

31,372*

8%

New equity capital raise

Total

8,008,210

 

 

 

* - incl. foreign exchange effect

 

In addition, the following of TMT's non-USD denominated investments decreased in value purely due to exchange rate fluctuations as of 30 June 2024: Bolt, Timbeter, 3S Money, Feel, MTL Financial (Outfund), Outvio, Sonic Jobs, and Laundryheap.  Also, additional costs of US$69,828 were incurred and written off in relation to the previously written-off investment in Legionfarm.

 

Key developments for the five largest portfolio holdings in the first half of 2024 (source: TMT's portfolio companies):

 

Bolt (ride-hailing and food delivery service):

·   Double-digit annualised revenue growth

·   Active in over 600 cities globally (up from over 550 cities as of 31 December 2023)

·   On track with previously announced plans to achieve operating profitability in 2024 and potentially float in 2025

 

Backblaze (cloud storage provider):

·   Double-digit annualised revenue growth

·   Multiple new integrations and partnerships building basis for future growth

·   Adjusted EBITDA positive

 

3S Money (provider of global business accounts and payment solutions):

·   Double-digit annualised revenue growth

·   EBITDA negative

 

PandaDoc (proposal automation and contract management software):

·   Double-digit annualised revenue growth

·   Over 55,000 customers (from over 50,000 as of 31 December 2023)

 

Scentbird (Perfume, wellness and beauty product subscription service):

·   Double-digit annualised revenue growth

·   Profitable

 

Further investments:

 

Given the persistently high level of market uncertainty and volatility, TMT continued to be more selective and made the following investments in the first half of 2024:

 

New investments during the reporting period:

 

·    US$1,000,000 in Propertymate Inc., trading as NewHomesMate, a marketplace for newly built homes in the USA (www.newhomesmate.com); and

·    €400,000 in Entytech OÃœ, an all-in-one tool for managing back office tasks and B2B payments for European SMEs (www.enty.io).

 

Post Period Events

 

·    US$30,407 received by the Company for the disposal of its shares in previously written-off Mainframe Group, Inc.

 

 

FINANCIAL STATEMENTS

 

Statement of Comprehensive Income

 

 

 

For the six months ended 30/06/2024

USD

For the six months ended 30/06/2023

USD



Notes

Unaudited

Unaudited

 

 




 

Gains/(Losses) on investments

3

467,250

(2,577,516)

 

Dividend income


-

 

 

Total investment gain/(loss)


467,250

(2,577,516)

 

Expenses




 

Administrative expenses

5

(661,876)

(641,077)

 

Operating loss


(194,626)

(3,218,593)

 

Finance income, net


184,770

114,214

 

Currency exchange (loss)/gain


(17,756)

40,206

 

Loss before taxation

 

(27,612)

(3,064,173)

 

Taxation

7

-

-

 

Loss attributable to equity shareholders

 

(27,612)

(3,064,173)

 

Total comprehensive loss for the year


(27,612)

(3,064,173)

 

Loss per share

 

 

 

 

Basic and diluted loss per share (cents per share)

8

(0.09)

(9.74)


 

 

Statement of Financial Position

 



At 30 June

2024

USD


At 31 December

2023

USD

 


Unaudited


Audited

 

Notes




Non-current assets

 




Financial assets at FVPL

9

199,651,762


203,086,676

Total non-current assets

 

199,651,762

 

203,086,676

 

 




Current assets

 

 

 

 

Trade and other receivables

92,089


151,908

Cash and cash equivalents

9,875,608


6,590,935

Total current assets

 

9,967,697

 

6,742,843

Total assets

 

209,619,459

 

209,829,519






Current liabilities

 




Trade and other payables

1,535,368


1,717,816

Total current liabilities

 

1,535,368


1,717,816

Total liabilities

 

1,535,368


1,717,816






Net assets

 

208,084,091

 

208,111,703

 

 

 

 

 

Equity

 

 

 

 

Share capital

13

53,283,415


53,283,415

Retained earnings

154,800,676


154,828,288

Total equity

 

208,084,091

 

208,111,703

 

 

Statement of Cash Flows

 


 

For the six months ended 30/06/2024

For the six months ended 30/06/2023

 


Notes

USD

Unaudited

USD

Unaudited

 





 

Operating activities




 

Loss attributable to equity shareholders


(194,626)

(3,218,593)

 

Adjustments for non-cash items:

 

 

 

 

Changes in fair value of financial assets at FVPL

3

(526,105)

2,673,620


Currency exchange (loss)/gain


(17,756)

40,206


Loss/ (gain) on receivables


53,891

(96,104)



 

(684,596)

(600,871)

 

Changes in working capital:


 

 

 

Decrease in trade and other receivables

10

18,067

1,057,440

 

Decrease in trade and other payables

12

(182,448)

(1,276,644)

 

Net cash used in operating activities


(848,977)

(820,075)

 

Investing activities


 

 

 

Interest received on treasury bills and deposits


184,770

114,214

 

Purchase of financial assets at FVPL

9

(1,900,336)

(2,365,489)

 

Proceeds from sale of financial assets at FVPL

9

5,849,216

1,834,614

 

Net cash received from/(used in) investing activities


4,133,650

(416,661)

 

Increase/(Decrease) in cash and cash equivalents


3,284,673

(1,236,736)

 

Cash and cash equivalents at the beginning of the period

11

6,590,935

10,102,683

 

Cash and cash equivalents at the end of the period

11

9,875,608

8,865,947

 

 

 

Statement of Changes in Equity

 



Share capital

Retained earnings

Total



USD

USD

USD

Balance at 1 January 2023


53,283,415

148,450,515

201,733,930

Gain for the year


-

6,377,773

6,377,773

Total comprehensive income for the year

 

-

6,377,773

6,377,773

Balance at 31 December 2023


53,283,415

154,828,288

208,111,703

Loss for the period

 

-

(27,612)

(27,612)

Total comprehensive loss for the period

 

-

(27,612)

(27,612)

Balance at 30 June 2024


53,283,415

154,800,676

208,084,091

 

 

NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2024

 

1. Company information

 

TMT Investments Plc ("TMT" or the "Company") is a company incorporated in Jersey with its registered office at 13 Castle Street, St Helier, JE1 1ES, Channel Islands.

 

The Company was incorporated and registered on 30 September 2010 in Jersey under the Companies (Jersey) Law 1991 (as amended) with registration number 106628 under the name TMT Investments Limited.  The Company obtained consent from the Jersey Financial Services Commission pursuant to the Control of Borrowing (Jersey) Order 1985 on 30 September 2010.  On 1 December 2010, the Company re-registered as a public company and changed its name to TMT Investments Plc.  The Company's ordinary shares were admitted to trading on the AIM market of the London Stock Exchange on 10 December 2010.

 

The memorandum and articles of association of the Company do not restrict its activities and therefore it has unlimited legal capacity.  The Company's ability to implement its Investing Policy and achieve its desired returns will be limited by its ability to identify and acquire suitable investments.  Suitable investment opportunities may not always be readily available.

 

The Company seeks to make investments in any region of the world. The Company invests in high‑growth technology companies globally across a number of core specialist sectors.  The Company's objective is to generate an attractive rate of return for shareholders, predominantly through capital appreciation.

 

Financial statements of the Company are prepared by and approved by the Directors in accordance with International Financial Reporting Standards, UK adopted International Accounting Standards and their interpretations issued or adopted by the International Accounting Standards Board ("IFRSs").  The Company's accounting reference date is 31 December.

 

2. Summary of significant accounting policies

 

2.1. Basis of presentation

Interim financial statements for the six months ended 30 June 2024 and 2023 are unaudited and were approved by the Directors on 14 August 2024.  They do not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  The financial statements for the year ended 31 December 2023 were prepared in accordance with International Financial Reporting Standards as adopted by the United Kingdom.  The report of the auditor on those financial statements was unqualified and did not draw attention to any matters by way of emphasis of matter.

 

The principal accounting policies applied by the Company in the preparation of these unaudited financial statements are set out below and have been applied consistently.

 

The financial statements have been prepared on a going concern basis, under the historical cost basis as modified by the fair value of financial assets at ("FVTPL"), as explained in the accounting policies below, and in accordance with IFRS.  Historical cost is generally based on the fair value of the consideration given in exchange for assets.

 

2.2. Foreign currency translation

Functional and presentation currency

Items included in the financial statements of the Company are measured in United States Dollars ('US dollars', 'USD' or 'US$'), which is the Company's functional and presentation currency.

 

Transactions and balances

Foreign currency transactions are translated into US$ using the exchange rates prevailing at the dates of the transactions. Foreign currency monetary items are translated using the closing rate (i.e. mid‑market price investments).

 

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. (i.e. comparable company analysis and cost-based investments as these are effectively re-fair valued at each year-end).

 

Exchange differences arising from the translation at the year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.

 

Currency

At 30/06/2024

Average rate, for six months ended 30/06/2024

British pounds, £

1.2642

1.2695

Euro, €

1.0718

1.0883

 

2.3. New IFRSs and interpretations

The following standards and amendments became effective from 1 January 2024, but did not have any material impact on the Company:

·    amendment to IFRS 16 - Leases on sale and leaseback

·    amendment to IAS 1 - Non-current liabilities with covenants

·    Amendment to IAS 7 and IFRS 7 - Supplier finance

 

3. Gains/(Losses) on investments

 

For six months ended 30/06/2024

For six months

 ended 30/06/2023


USD

USD

Gross interest income from convertible notes receivable

3,098

-

Net interest income from convertible notes receivable

3,098

-

Gains/(losses) on changes in fair value of financial assets at FVPL

526,105

(2,673,620)

Other (losses)/gains on investment

(61,953)

96,104

Total net gains/(losses) on investments

467,250

(2,577,516)

 

4. Segmental analysis

 

Geographic information

The Company has investments in the following five geographical areas - USA, Estonia, the United Kingdom, Portugal and the Cayman Islands.

 

Non-current financial assets

 


USA

Cayman Islands

Estonia

United Kingdom

Portugal

Total

As at 30/06/2024

USD

USD

USD

USD

USD

USD

Equity investments

68,445,469

-

71,542,872

33,916,597

-

173,904,938

Convertible notes & SAFEs

24,280,956

515,000

428,560

-

522,308

25,746,824

Total

92,726,425

515,000

71,971,432

33,916,597

522,308

199,651,762

 

 

 

USA

Cayman Islands

BVI

Estonia

United Kingdom

Portugal

Total

As at 31/12/ 2023

USD

USD

USD

USD

USD

USD

USD

Equity investments

73,579,189

-

1,695,398

74,200,126

34,987,820

-

184,462,533

Convertible notes & SAFEs

16,517,060

1,030,000

-

-

-

1,077,083

18,624,143

Total

90,096,249

1,030,000

1,695,398

74,200,126

34,987,820

1,077,083

203,086,676

 

5. Administrative expenses

 

Administrative expenses include the following amounts:

 

For six months ended 30/06/2024

For six months ended 30/06/2023


USD

USD

Staff expenses (note 6)

454,170

412,081

Professional fees

136,935

147,671

Legal fees

17,088

13,576

Bank and LSE charges

12,170

6,502

Audit and accounting fees

8,215

13,459

Other expenses

33,298

47,788


661,876

641,077

 

6. Staff expenses

 

For six months ended 30/06/2024

For six months ended 30/06/2023


USD

USD

Directors' fees

117,170

105,481

Wages and salaries

337,000

306,600


454,170

412,081

 

Wages and salaries shown above include fees and salaries relating to the six months ended 30 June.

 

The Directors' fees for the six months ended 30 June 2024 and 2023 were as follows:

 


For six months ended 30/06/2024

For six months ended 30/06/2023


USD

USD

Alexander Selegenev

62,500

55,000

Yuri Mostovoy

30,000

27,500

James Joseph Mullins

15,182

13,650

Andrea Nastaj

9,488

9,331


117,170

105,481

 

The Directors' fees shown above are all classified as 'short term employment benefits' under International Accounting Standard 24. The Directors do not receive any pension contributions or other benefits. The average number of staff employed (excluding Directors) by the Company during the six months ended 30 June 2024 was 7 (six months ended 30 June 2023: 7).

 

Key management personnel of the Company are defined as those persons having authority and responsibility for the planning, directing and controlling the activities of the Company, directly or indirectly. Key management of the Company are therefore considered to be the Directors of the Company. There were no transactions with the key management, other than their Directors fees, bonuses and reimbursement of business expenses.

 

7. Income tax expense

 

The Company is incorporated in Jersey. No tax reconciliation note has been presented as the Company's current income tax rate in Jersey is 0%.

 

8. Loss per share

 

The calculation of basic loss per share is based upon the net losses for the six months ended 30 June 2024 attributable to the ordinary shareholders of US$27,612 (for the six months ended 30 June 2023: US$3,064,173) and the weighted average number of ordinary shares outstanding calculated as follows:

 

Loss per share

For the six months ended 30/06/2024

For six months ended 30/06/2023

Basic loss per share (cents per share)

(0.09)

(9.74)

Loss attributable to equity holders of the entity

(27,612)

(3,064,173)

 

The weighted average number of ordinary shares outstanding was calculated as follows:

 

 

 

 

 

For the six months ended 30/06/2024

For the six months ended 30/06/2023

Weighted average number of shares in issue

 

 

Ordinary shares

31,451,538

31,451,538

 

31,451,538

31,451,538

 

9. Non-current financial assets

 

Reconciliation of fair value measurements of non-current financial assets:


At 30 June
2024

USD

At 31 December 2023

USD

Investments held at fair value through profit and loss, USD:



- listed and unlisted shares (i)

173,904,938

184,462,533

- promissory notes (ii)

2,560,000

1,600,030

- SAFEs (iii)

23,186,824

17,024,113


199,651,762

203,086,676

 


At 30 June
2024

USD

At 31 December 2023

USD

Opening valuation

203,086,676

195,260,535

Purchased (including consulting fees)

1,900,336

4,686,489

Disposal proceeds

(5,861,355)

(4,201,902)

Impairment losses in the period

(1,669,858)

(10,289,184)

Realised gains

1,132,135

1,098,401

Unrealised gains

1,063,828

16,532,337

Closing valuation

199,651,762

203,086,676

 

Movement in unrealised gains

 

 

Opening accumulated unrealised gains

133,189,507

118,262,354

Unrealised gains

1,063,828

16,532,337

Transfer of previously unrealised losses to realised reserve on disposal of investments

(3,509,014)

 

(1,605,184)

Closing accumulated unrealised gains

130,744,321

133,189,507

 

Reconciliation of investments, if held under the cost and price of recent investment model:

 

Historical cost basis

 

 

Opening book cost

69,897,169

76,998,181

Purchases (including consulting fees)

1,900,336

4,686,489

Disposal on sale of investment

(1,301,327)

(1,498,317)

Impairment losses in the period

(1,588,737)

(10,289,184)

Closing book cost

68,907,441

69,897,169

 

Valuation methodology

 

 

Level 1 ‑ Mid-market price

19,031,086

26,010,444

Level 2 ‑ Comparable company analysis

94,743,472

96,422,492

Level 3 ‑ Cost or price of recent investment

85,877,204

80,653,740

 

199,651,762

203,086,676

 

The estimates significant to the financial statements during the period and at the period-end is the consideration of the fair value of financial assets at FVPL as set out in the relevant accounting policies. A number of the financial assets at FVPL held by the Company are at an early stage of their development.  The Company cannot yet carry out regular reliable fair value estimates of some of these investments.  Future events or transactions involving the companies invested in may result in more accurate valuations of their fair values (either upwards or downwards) which may affect the Company's overall net asset value. 

 

Valuation methodologies can be changed from time to time, the following table shows the changes made in the first half of 2024 compared to 2023. These investments were held at cost or price of recent investments and at comparable company analysis and of the total value of US$7,279,996 as of 31 December 2023:

 

Company name

2024

2023

Affise

Cost and price of recent investment

Comparable company analysis

Aurabeat

Comparable company analysis

Cost and price of recent investment

FemTech

Comparable company analysis

Cost and price of recent investment

Hinterview

Comparable company analysis

Cost and price of recent investment

Adwisely (Retarget)

Comparable company analysis

Cost and price of recent investment

Bairro

Comparable company analysis

Cost and price of recent investment

 

The list of fully impaired investments, in which the Company still maintained ownership as of 30 June 2024, was as follows:

 

Company name

Investment amount (USD)

Year of impairment

Rollapp

350,000

2018

UsingMiles/Help WW/Source Inc.

250,000

2018

Favim

300,000

2018

AdInch

1,000,000

2018

E2C

124,731

2020

Drupe

225,000

2019

Virool/Turgo

600,000

2017

Sixa

300,000

2019

Usual Beverage Co.

300,000

2022

StudyFree

1,000,000

2022

Rocket Games (Legionfarm)*

1,719,828

2023

Scalarr

1,999,999

2023

Academy of change

1,000,000

2023

Conte.ai/Postoplan

1,784,185

2023

Metrospeedy

1,000,000

2023

BaFood

2,500,000

2023

Sharethis

488,909

2024

GameOn

1,030,000

2024

Total

15,972,652

 

* Including additional costs incurred in the period

 

Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognised in profit or loss.

 

When measuring the fair value of a financial instrument, the Company uses relevant transactions during the period or shortly after the period end, which gives an indication of fair value and considers other valuation methods to provide evidence of value. The "price of recent investment" methodology is used mainly for venture capital investments, and the fair value is derived by reference to the most recent financing round or sizeable partial disposal. Fair value change is only recognised if that round involved a new external investor. From time to time, the Company may assess the fair value in the absence of a relevant independent equity transaction by relying on other market observable data and valuation techniques, such as the analysis of revenue multiples of comparable companies and/or comparable transactions. The nature of such valuation techniques is highly judgmental and dependent on the market sentiment at the time of the analysis.

 

(i)            Equity investments as at 30 June 2024:

 

Investee company

Date of initial investment

Value at

1 Jan 2024,

USD

Additions to equity investments during the period, USD

Conversions from loan notes and SAFEs, USD

Gain/(loss) from changes in fair value of equity investments, USD

Disposals, USD

Value at 30 June 2024, USD

Fully diluted equity stake owned

Backblaze

24.07.2012

26,010,443

371,628

-

(3,185,028)

(4,165,957)

19,031,086

5-10%

Remote.it

13.06.2014

131,200

-

-

-

-

131,200

<5%

Bolt

15.09.2014

72,181,098

-

-

(2,175,822)

-

70,005,276

<5%

PandaDoc

11.07.2014

8,013,824

-

-

-

-

8,013,824

<5%

Full Contact

11.01.2018

244,506

-

-

-

-

244,506

<5%

ScentBird

13.04.2015

7,009,600

-

-

-

-

7,009,600

<5%

Workiz

16.05.2016

3,971,659

-

-

-

-

3,971,659

<5%

Hugo

19.01.2019

1,695,398

-

-

-

(1,695,398)

-

<5%

MEL Science

25.02.2019

905,656

-

-

-

-

905,656

<5%

Qumata

06.06.2019

909,411

-

-

-

-

909,411

<5%

eAgronom

31.08.2018

417,213

-

-

(31,372)

-

385,841

<5%

Timbeter

05.12.2019

220,940

-

-

(6,660)

-

214,280

<5%

3S Money Club

07.04.2020

17,107,405

-

-

(128,839)

-

16,978,566

10-15%

Hinterview

21.09.2020

860,526

-

-

(433,504)

-

427,022

<5%

Virtual Mentor (Allright)

12.11.2020

772,500

-

-

-

-

772,500

<5%

NovaKid

13.11.2020

2,949,855

-

-

-

-

2,949,855

<5%

MTL Financial (OutFund)

17.11.2020

2,716,817

-

-

(20,461)

-

2,696,356

<5%

Accern

21.08.2019

2,873,884

-

-

-

-

2,873,884

<5%

Feel

13.08.2020

3,868,062

-

-

(29,131)

-

3,838,931

10-15%

Affise

18.09.2019

1,795,680

-

-

815,637

-

2,611,317

5-10%

3D Look

03.03.2021

500,000

-

-

-

-

500,000

<5%

FemTech

30.03.2021

916,707

-

-

(461,805)

-

454,902

5-10%

Muncher

23.04.2021

2,853,698

-

-

-

-

2,853,698

5-10%

CyberWrite

20.05.2021

1,075,741

-

-

-

-

1,075,741

<5%

Outvio

22.06.2021

552,350

-

-

(16,650)

-

535,700

<5%

Collectly

13.07.2021

6,449,328

-

-

-

-

6,449,328

<5%

VertoFX

16.07.2021

1,132,999

-

-

-

-

1,132,999

<5%

EstateGuru

06.09.2021

828,525

-

-

(426,750)

-

401,775

<5%

Prodly

09.09.2021

1,800,000

-

-

-

-

1,800,000

<5%

Sonic Jobs

15.09.2021

903,675

-

-

(6,806)

-

896,869

<5%

EdVibe (Study Space, Inc)

02.11.2021

750,000

-

-

-

-

750,000

5-10%

1Fit (Alippe, Inc)

24.12.2021

1,580,320

-

-

-

-

1,580,320

<5%

Agendapro

03.09.2021

910,609

-

-

-

-

910,609

<5%

Laundryheap

28.01.2022

2,799,561

-

-

(21,084)

-

2,778,477

<5%

My Device Inc

30.11.2021

1,789,241

-

-

-

-

1,789,241


SOAX

21.01.2022

4,000,000

-

-

-

-

4,000,000

5-10%

Spin.ai

17.12.2018

964,102

-

-

-

-

964,102

<5%

New Homes Mate

16.02.2024

-

1,030,000

-

-

-

1,030,000

<5%

ThusFresh/ Mainframe

26.03.2012

-

-

-

30,407

-

30,407

-

Total

 

184,462,533

1,401,628

-

(6,097,868)

(5,861,355)

173,904,938

 

 

(ii)           Convertible loan notes as at 30 June 2024:

 

Investee company

 

Date of initial investment

Value at 1 Jan 2024,

USD

Additions to convertible note investments during the period, USD

Conversions from loan notes, USD

Gain/(loss) from changes in fair value of convertible notes, USD

Write-offs, USD

Value at 30 Jun 2024, USD

Sharethis

26.03.2013

570,030

-

-

-

(570,030)

-

MedVidi

27.09.2021

1,030,000

-

-

1,530,000

-

2,560,000

Total

 

1,600,030

-

-

1,530,000

(570,030)

2,560,000

 

(iii)          SAFEs as at 30 June 2024:

 

Investee company

Date of initial investment

Value at 1 Jan 2024,

USD

Conversions to equity, USD

Gain/loss from changes in fair value of SAFE investments, USD

Write-offs, USD

Value at 30 June 2024, USD

Cheetah (Go-X)

29.07.2019

175,000

-

-

-

-

175,000

Adwisely (Retarget)

24.09.2019

1,600,000

-

-

(800,000)

-

800,000

Rocket Games (Legionfarm)

17.09.2019

-

69,828

-

(69,828)

-

-

Moeco

08.07.2020

500,000

-

-

-

-

500,000

Aurabeat

03.05.2021

1,030,000

-

-

(515,000)

-

515,000

Synder (CloudBusiness Inc)

26.05.2021

3,428,571

-

-

-

-

3,428,571

OneNotary (Adorum)

01.10.2021

500,000

-

-

424,377

-

924,377

Educate online

16.11.2021

2,847,458

-

-

2,847,457

-

5,694,915

Mobilo (Lulu Systems, Inc)

09.12.2021

1,700,000

-

-

-

-

1,700,000

Bairro

12.01.2022

1,077,084

-

-

(554,776)

-

522,308

1Fit (Alippe, Inc)

19.04.2023

500,000

-

-

-

-

500,000

Phoenix

29.05.2023

515,000

-

-

785,020

-

1,300,020

GameOn

19.06.2023

1,030,000

-

-

-

(1,030,000)

-

Montera

02.08.2023

721,000

-

-

-

-

721,000

Rain Technologies Inc.

17.10.2023

1,000,000

-

-

-

-

1,000,000

Praktika.ai

29.12.2023

400,000

-

-

4,577,073

-

4,977,073

Entytech OU

20.06.2024

-

428,880

-

(320)

-

428,560

Total

 

17,024,113

498,708

-

6,694,003

(1,030,000)

23,186,824

 

10. Trade and other receivables

 

At 30 June

2024

At 31 December 2023


USD

USD

Prepayments

53,743

60,914

Other receivables

38,346

18,145

Interest receivable on promissory notes

-

66,917

Interest receivable on deposit

-

5,932


92,089

151,908

 

The fair values of trade and other receivables approximate to their carrying amounts as presented above. During the six months ended 30 June 2024 and 2023 no balances were past due or impaired, and no credit losses had been expected.

 

Other receivables as of 30 June 2024 represented amounts due from the disposed investment in Classtag and Hugo (as of 31 December 2023 - Classtag).

 

11. Cash and cash equivalents

 

The cash and cash equivalents as at 30 June 2024 include cash and cash equivalents in banks and brokers.

 

Cash and cash equivalents comprise the following:


At 30 June

2024

At 31 December 2023


USD

USD

Treasury bills

1,782,628

1,732,693

Deposits

-

1,164,380

Bank balances

8,092,980

3,693,862


9,875,608

6,590,935

 

The following table represents an analysis of cash and equivalents by rating agency designation based on Moody`s rating or their equivalent:

 


At 30 June

2024

At 31 December 2023

Bank balances

USD

USD

C rating

204,360

119,041

Caa2 rating

7,230,147

3,566,010

Baa3 rating

1,363

1,736

Not rated

657,110

7,075


8,092,890

3,693,862

 


At 30 June

2024

At 31 December 2023

Deposits

USD

USD

A1 rating

-

1,164,380


-

1,164,380

 


At 30 June

2024

At 31 December 2023

Treasury bills

USD

USD

AAA rating

1,782,628

1,732,693


1,782,628

1,732,693

 

12. Trade and other payables


At 30 June

2024

At 31 December 2023


USD

USD

Salaries payable

84,500

16,000

Directors' fees payable

19,523

12,622

Bonuses payable

1,415,662

1,638,709

Trade payables

12,072

10,156

Other current liabilities

160

162

Accruals

3,451

40,167


1,535,368

1,717,816

 

The fair value of trade and other payables approximate to their carrying amounts as presented above.

 

13. Share capital

 

On 30 June 2024, the Company had an authorised share capital of unlimited ordinary shares of no par value and had issued ordinary share capital of:


At 30 June

2024

At 31 December 2023


USD

USD

Share capital

53,283,415

53,283,415

Issued capital comprises:

Number

Number

Fully paid ordinary shares

31,451,538

31,451,538


Number of shares

Number of shares

Balance at 31 December 2023

31,451,538

31,451,538

Issue of ordinary shares

-

-

Balance at 30 June 2024

31,451,538

31,451,538

 

There have been no changes to the Company's ordinary share capital between 30 June 2024 and the date of approval of these financial statements.

 

14. Related party transactions

 

The Company's Directors receive fees and bonuses from the Company, details of which can be found in Note 6.

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IR USRURSVUWAUR