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TMT Investments today announces its interim results for the half year ended 30 June 2023. Total NAV was US$198.7m (down 1.4% from US$201.7m as of 31 December 2021). This translates to NAV per share of US$6.32 (compared to US$6.41 as at 31 December 2021). During the period, the positive revaluations of four investees (1Fit, Collectly, SonicJobs and Mobilo) largely offset the negative revaluation of Backblaze based on its share price on NASDAQ. As of 14 August 2023, TMT had US$7.8m in cash and cash equivalents (including U.S. treasury bills) and no debt. Survival of the fittest: The macroeconomic uncertainties have put startups with weaker business models or non-mission critical products under increased pressure. However, investors in 1H23 continued to back fast-growing, high-quality digital tech companies. As a result, TMT’s investees 1Fit, Collectly, SonicJobs and Mobilo received further validation of their business models by raising fresh capital at notably higher valuation levels. TMT’s largest holdings (Bolt, Backblaze, PandaDoc, 3S Money and Scentbird) continued to perform well, recording growth in revenues and user numbers. These are well capitalised companies with high levels of cash reserves, a strong global presence and typically close to achieving profitability or already achieving profitability. TMT’s investment in Bolt was valued at US$71.3m, accounting for 37% of TMT’s portfolio value. At the same time, TMT partially or fully wrote down the value of four of its smaller investments, i.e., Bafood, Legion Farm, Conte.ai and MetroSpeedy, in 1H23, for a total of US$5.23m. New and additional investments to date in 2023: TMT made a total of approximately US$1m in additional investments in five existing portfolio companies. The three new investments this year to date are US$0.5m in Phoenix Health Inc., a Canada-based direct-to-consumer health platform for men; US$1m in Gameon Inc., an AI chat platform that powers conversational experiences for fashion, sport and retail brands and teams; and US$0.7m in Montera, Inc., trading as Forta, a family-powered autism therapy platform. Hybridan’s view: We believe that TMT remains well-positioned to identify promising early-stage companies through its global network. The 5-year IRR of 17.6% proves the management’s eye for promising high-quality start-ups.
TMT Investments PLC
TMT Investments, the specialist investment company focussed on private companies in core technology sectors around the world, has released H1/23 interim results, with period-end NAV at $198.7m ($6.32/share), 1.4% lower than the FY22A $201.7m ($6.41/share). Though continued market volatility has characterised the VC arena, with valuations increasingly focussed on profitable businesses, TMT's NAV has remained stable over H1/23, helped by strong trading performances from core holdings. Fresh capital raisings at significantly higher valuations of four portfolio holdings (1Fit, Collectly, SonicJobs and Mobilo) were offset by a $6.5m reduction in the holding of Nasdaq listed Backblaze. TMT's five largest holdings (Bolt, Backblaze, 3S Money, Pandadoc and Scentbird), representing 64% of total portfolio value, are well capitalised and have performed well during H1/23, all showing continued strong growth and already profitable or approaching profitability. With conservative and market tested valuations with the top 5 holdings representing 64% of NAV, the share price current discount of 55% to NAV looks overdone.
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Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX. *A corporate client of Hybridan LLP ** Arranged by most recent first *** Alphabetically arranged Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Beacon Energy plc, intends to join the AIM market. In accordance with the Company's strategy to focus on growth through acquisition or farm-in to oil and gas projects, the Company entered into the SPA with Tulip Oil Holdings B.V. In conjunction with the Acquisition, the Company has conditionally raised total gross proceeds of £6.04m which will be used to fund the drilling of the SCHB-2 development well onshore Germany and for working capital. Expected Admission date is 11 April 2023. Ocean Harvest Technology Group plc, a commercial scale producers of seaweed blend ingredients for the animal feed market intends to join AIM. The main country of operation is Vietnam where the Company's main production and processing facility is located. The Company is headquartered in Theale, UK with further operations in Galway, Ireland and Binh Duong Province, Vietnam. Expected Admission 29th March 2023. M7 Box+ REIT plc, a newly established, externally managed closed-ended investment company announces that it intends to join the Wholesale segment of IPSX. Upon Admission, the Company proposes to acquire a portfolio of seven let and operational e-warehouses from M7 Box+ II LP. As at 31 December 2022, the Property Portfolio was valued at £228.9m. Expected Admission April 2023. Altona Rare Earths, a mining company focused on the development of a significant Rare Earth Elements (REE) mining project in Africa, announced its intention of withdrawing from the AQSE Growth Market to the Standard Segment of the Main Market. The Company has just raised £2m and plans to use the proceeds to complete its maiden JORC compliant Mineral Resource Estimate and a Scoping Study for its Monte Muambe Rare Earths mining project in northwest Mozambique. Admission Delayed. A further update will be provided once the date of Admission, currently expected to be towards the end of March 2023, is confirmed. Fadel Partners, a developer of cloud based brand compliance and rights and royalty management software, working with some of the world's leading licensors and licensees across media, entertainment, publishing, consumer brands and hi-tech & gaming companies intends to join the AIM market. FADEL has two solutions, being IPM Suite and Brand Vision. Expected Admission late March 2023. Onward Opportunities Limited intends to join the AIM market. The Company's investment objective is to generate returns for Shareholders through investments in equity and equity-related instruments of UK smaller companies that are predominantly listed or admitted to trading on markets operated by the LSE. Anticipated market capitalisation on Admission is £12.75m. Expected Admission 30 March 2023. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet*** Clontarf Energy 0.15p £6.7m (CLON.L) The Ireland-based lithium, and oil & gas exploration and production company focused on South America and Africa, announce that it has elected to proceed with the NEXT-ChemX Bolivian joint venture, and therefore has executed the formal Contractual Partnership Agreement with NEXT-ChemX Corporation (NEXT-ChemX), which supersedes the 'Heads of Agreement' announced on 15 February 2023. The purpose of this 50:50 joint venture is to demonstrate the technical, commercial and environmental feasibility of NEXT-ChemX's ion-Targeting Direct lithium Extraction (iTDE) technology in Bolivia. The JV will hold exclusive rights to deploy and commercialise NEXT-ChemX's iTDE technology in Bolivia, and is governed by the laws of the State of Texas. EKF Diagnostics 25.8p £117.4m (EKF.L) The global diagnostics business announces its final results for the year ended 31 December 2022. Revenues of £66.6m were in-line with market expectations, up 17% excluding COVID-related activities. Loss before tax was £8.9m (2021: £21.4m profit) after exceptional transition and restructuring costs of £17.5m. Net cash (excluding IFRS 16 liabilities ) was £11.4m (31 December 2021: £19.6m). With continued cost reduction, restructuring and efficiency measures, the Board remains confident that the business performance in 2023 should remains in-line with management expectation. essensys 56.5p £36.4m (ESYS.L) The global provider of software and technology to the flexible workspace industry, announces its unaudited results for the six months ended 31 January 2023 (H1 23). Revenues were £12.9m, up 18%, driven by strong growth in North America. Adjusted EBITDA loss was £4.2m due to headcount increase and investment in the APAC region. Net cash was £12.6m. Management continues to manage its cost base with the reorganisation announced in February 2023. The Group continues to expect to meet FY23 market forecasts. Journeo 160p £25.9m (JNEO.L) The information systems and transport technical services group, announces two contract awards totalling £1.6m for passenger information systems in Wales. The two contracts will see displays attached to the new Welsh Bus Data Content Management System which was recently awarded to Journeo as announced on 8 March 2023. The first contract, valued at £1m, was awarded by the City of Cardiff for the installation of Journeo's latest TFT LCD in-shelter displays. The second contract, valued at £0.6m, is for Transport for Wales (TfW). Approximately £1m revenue is expected to be recognised this financial year, included in management's expectations of performance for FY2023. Mortgage Advice Bureau 625p £356.4m (MAB1.L) The mortgage broker announce its final results for the year ended 31 December 2022. Revenue was £230.8m, up 22%; statutory profit before tax was down by 25% to £17.4, due to higher administrative ratio. Cash and cash equivalents totalled £25.5m (£34.4m as of 31 December 2021). The company also raised loans of £23.4m in total in 2022. Adviser numbers at 24 March 2023 had decreased to 2,129 due to the shock to the mortgage market post the September 2022 mini-budget. Management expects adviser numbers will stabilise in Q2 2023 and then build gradually as business volumes improve. Current trading is in line with expectations. One Heritage Group* 16.5p £6.4m (OHG.L) The residential developer focused on the North of England, announces its results for the six months ended 31 December 2022 (H1 FY23). Revenue was £5.75m (H1 2022: £0.15m), driven mainly by the contributions from Lincoln House, Bolton, with 27 sales completions in the period. Loss before tax was £1.57m (H1 FY22: loss £0.53m), due to an impairment of £1.10m. Net debt was £17.73m (H2 FY22: £14.95m), an increase of £2.79m facilitating the completion of developments prior to legal completions. The company is on track to deliver strong revenue for FY23, driven by property sales with the practical completion of three development projects before 30 June 2023. Physiomics* 4.15p £4.0m (PYC.L) The oncology consultancy using mathematical models to support the development of cancer treatment regimens and personalised medicine solutions, announces its agreement with Beyond Blood Diagnostics Ltd (Beyond Blood) to analyse data generated during testing of its diagnostic platform using Physiomics' personalised dosing software. Beyond Blood is a seed-stage spin out from Imperial College London, which is developing a patented flow cytometry device to measure blood cell counts in very small blood volumes. Physiomics and Beyond Blood are also exploring joint grant applications and other ways to use Physiomics' software alongside Beyond Blood's devices. SkinBioTherapeutics 12p £20.8m (SBTX.L) The life sciences company focused on skin health, announces its unaudited consolidated results for the six months to 31 December 2022 (1H FY23). Revenues increased month on month and totalled £77k, up 250% (H1 FY22: £22k). The company made good progress with the commercialisation of probiotic food supplement, AxisBiotix-Ps™ in the UK. Post year end, health authority approval received for launch in Spain from 13 March; entry into other European markets, Italy and France, is anticipated during 2023. Cash as of 31 December 2022 was £766k (30 June 2022: £3.15m). The company raised £2.6m post period. Team17 Group 407.5p £593.31m (TM17.L) The global games label, creative partner, and developer of independent (indie) premium video games and educational entertainment apps for children and a leading working simulation games developer and publisher, announces its unaudited results for the year ended 31 December 2022. Revenue was £137.4m, up 52% and partly due to acquisitions. Profit before tax was £28.7m, down 1%. Cash and cash equivalents was £50.8m (2021: £55.3m) and debt free. Management seeks to continue to leverage the highly cash-generative nature of the business to drive further organic growth and evaluate selective M&A targets. TMT Investments* US$2.81 US$88.4m (TMT.L) The venture capital company investing in high-growth technology companies, announces its final results for the year ended 31 December 2022. NAV was US$ 201.7m (down 28.7% from US$283.1m as of 31 December 2021), translating to NAV per share of US$6.41 (vs. US$9.00 as of 31 December 2021), primarily due to negative revaluations of Backblaze and Bolt. As of 27 March 2023, TMT had US$11.4m in net cash and cash equivalents (including US$2.9m in cash held with SVB). In 2022, TMT invested a total of US$9.6m across 9 new and existing companies. Management is taking an extremely cautious approach, to ride out the current market volatility. If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. 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TMT TM17 TXG TXG EKF JNEO MAB1 OHG PYC SBTX
TMT Investments today announces its final results for the year ended 31 December 2022. Total NAV was US$201.7m (down 28.7% from US$283.1m as of 31 December 2021). This translates to NAV per share of US$6.41 (compared to US$9.00 as of 31 December 2021), mainly due to downward revaluations of Backblaze by 64% and Bolt by 33% as a result of stock markets sell-off leading to reduced valuations for some start-ups. Administrative expenses were US$1.4m, down 25% and reflecting a reduced level of investment and business development activities. In 2022, TMT made a total of US$9.6m of investments across nine new and existing companies. As of 27 March 2023, TMT had approx. US$2.9m in cash held with Silicon Valley Bank (SVB). After the measures implemented by the Federal Deposit Insurance Corporation and Federal Reserve, TMT expects to retain access to all its funds held at SVB. For the same reasons, TMT does not believe that the recent developments at SVB will have any material impact on its portfolio companies. With US$11.4m in cash and cash equivalents and no financial debts as of 27 March 2023, TMT is well positioned to ride out the current market volatility, make selective investments and realise disposals when the right opportunities present themselves. Returning to basics in the venture capital ecosystem: As 2022 progressed, TMT observed an acceleration of two existing trends: (1) a growing emphasis on a tech start-up’s profitability/path to profitability; (2) increasing divergence in how tech companies are reacting to market changes. Best-performing start-ups were quick to react in early 2022 by reducing burn-rates. In many cases, this has led to lower revenue growth rates, but a stronger and more sustainable business position overall. Hybridan’s view: We believe that TMT remains well-positioned to identify promising early-stage companies through its global network. The 5-year IRR of 22.8% per annum proves the management’s eye for promising high-quality start-ups. We have and will continue to profile TMT’s portfolio companies by speaking with founders, to shed light on the quality of TMT’s investment philosophy and quality of investees. Please refer to our note on 16 August 2022 for the case studies on Feel, subscription-based multivitamin and supplement producer and 3S Money Club, a cross-border payment company serving the B2B market. We also published a thematic research on 12 December 2022 on TMT’s investments in sustainability.
TMT Investments, the specialist investment company focussed on private companies in core technology sectors around the world, has released FY22A final results, with period-end NAV at $201.7m, or $6.41/share. The top three investments, Backblaze, Bolt and PandaDoc represented 51.4% of FY22A NAV and 124.8% of the current share price of $2.64 cents, now at a 58.8% discount to the $6.41 FY22A NAV. TMT has a highly experienced investment team with a strong track record focussed on companies already demonstrating profitability or with an obvious route to profitability and with the quality of management and business models to succeed against a tougher macro-economic backdrop.
We have published research on TMT Investments plc, which is attached and a snapshot of the research is below. TMT unveiled its ESG policy in its 2021 annual report and its intention to invest in technology that results in tangible benefits in terms of productivity, user experience, efficiency, positive impact in specific sectors, profitability or other desired objectives. As such, the Company has made a number of investments in ESG-focused companies that also meet TMT’s investment criteria. According to PwC’s report “State of Climate Tech 2021”, venture capital investments in climate tech are continuing to show strong growth as an emerging asset class, totalling US$87.5bn in H2 2020 / H1 2021. Climate tech accounted for 14 cents of every VC dollar. However, there is a weak pipeline of quality start-ups able to progress into more mature funding stages. Whilst many professionals are pivoting into this space from the broader tech industry, there remains a gap in terms of founders who understand the deep climate tech challenges and how these can be solved with an interdisciplinary approach. We believe that TMT is well-positioned to identify promising early-stage companies in sustainability through its global network. The IRR of 18.7% created by TMT since inception in 2010 proves the management’s eye for promising high-quality start-ups. In this note, we profile three of TMT’s portfolio companies (in alphabetic order) founded by teams who understand the environmental challenge, as well as solving problems with technology. eAgronom (eagronom.com): Sitting at the forefront of AgTech, ClimateTech, and FinTech, its Farm Management Software (FMS) functioning as a carbon Measuring, Reporting and Verification (MRV) tool so that farmers can earn carbon credits, access green loans and other economic benefits. Mobilo (mobilocard.com): Enterprise-grade NFC/smart business cards, an eco-friendly solution allowing users to digitally share contact details instead of using paper business cards. Digitalised contact data can be integrated into organisations to improve internal management systems and monetise business leads. Timbeter (timbeter.com): a SaaS solution based on machine learning for quick and accurate timber measurement and data management, to make the forestry industry more sustainable, profitable and efficient.
TMT Investments announced its interim results for the six months ended 30 June 2022. Portfolio NAV declined 25.8% to US$210.1m from US$283.1m as of 31 December 2021. This translates to NAV per share of US$6.68 (compared to US$9.00 as of 31 December 2021), mainly due to downward revaluations of Backblaze by 69% and Bolt by 28%. Administrative expenses decreased by 4% year-on-year to £772k, reflecting a lower level of investment and business development activities during the period. No bonus was charged in 1H22. As of 30 June 2022, TMT had no financial debt, and its cash reserves were approximately US$14m (31 December 2021: US$26m). Following the exits from later-stage portfolio companies such as Wrike, Pipedrive and Depositphotos in the last two to three years, TMT has redeployed the cash proceeds into mainly late-Seed and pre-Series-A investments, whose valuations have proven to be defensive in the current environment. What is happening: The main negative effect of increased market and economic volatility on earlier-stage start-ups is not a reduction in valuation levels per se, but the generally lower availability of funding. Founders need to go the extra mile to prove the quality and potential of their businesses, as investors have become more discerning. High-quality start-ups, however, can still demand broadly similar valuation levels as they did prior to 2022. What lies ahead: TMT is continuing to scour and identify investment opportunities selectively and at appropriate valuation levels, whilst employing an extremely cautious investment approach for the time being. As of 15 August 2022, the company had cash reserves of about US$13m. TMT believes it is well positioned to ride out the current market volatility and expects a number of positive revaluations across its portfolio by the end of 2022. Hybridan’s hindsight: As 1H22 was the only period of significant NAV devaluation ever experienced by TMT, a lesson may be drawn with hindsight. We think it may be a good idea to put in a policy on the percentage of assets held in later-stage companies. This may help management to keep its powder dry to capture earlier stage opportunities. The IRR of 18.7% created by TMT since inception in 2010 proves the management’s eye for promising high-quality start-ups. Valuation methodology for portfolio companies In the absence of Level 1 valuation inputs, i.e., quoted prices in active and open markets, TMT refers to relevant transactions during the period or shortly after the period end for an indication of fair value of the portfolio company and considers other valuation methods to provide evidence of value. This “price of recent investment” methodology is used mainly for venture capital investments, and the fair value is derived by reference to the most recent equity financing round or sizeable partial disposal. Fair value change is only recognised if that round involved a new external investor. From time to time, TMT 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 revenue multiples of comparable companies and/or comparable transactions. Negative revaluation in 1H22 The negative revaluation during the period totalled US$76.9m. Of this, US$43.6m was a result of Backblaze’s share price decline on the NASDAQ market and US$29.1m was with Bolt (www.bolt.eu). TMT reduced the fair value of its 1.26% equity stake in Bolt by 28%, despite the fact that the previous valuation was established on the back of Bolt’s €628m equity raise in January 2022, i.e., after the market correction had started. This decision reflects the significant reduction in the values of Bolt’s publicly traded peers, namely Uber and Lyft, as of 30 June 2022. The negative valuation on Hugo by US$2.0m was due to the fact that the acquisition by Delivery Hero announced in Oct 2021 is still pending. TMT hence decided to revert Hugo’s valuation back to the level before the intended acquisition was announced. The write-downs as a result of the Russia-Ukraine conflict came to US$2.25m, lower than US$4.6m previously guided in March 2022. The companies affected were mainly Academy of Change (a personalised educational service for women on lifestyle topics) and EdVibe (an all-in-one language teaching platform). Positive revaluations in 1H22 Several of TMT’s portfolio companies have demonstrated ongoing growth and received further validation for their business models by raising fresh equity capital at higher valuations during the period. These companies are Accern (a no-code AI platform for the financial service industry), MTL Financial under the brand name OutFund (a platform to provide revenue-based non-dilutive financing), FemTech (a London-based technology accelerator focused on female founders), Spin Technology (a SaaS data protection company) and Feel (a UK-based direct-to-consumer business in the nutritional supplement and functional foods market). Feel is featured in one of the case studies below. The following are Hybridan’s inaugural case studies on TMT’s portfolio companies. Based on interviews with founders, we believe these company profiles shed light on the quality of TMT’s investment philosophy and quality of investees. Feel (https://wearefeel.com) Founded in 2019, Feel is a UK-based D2C (direct-to-consumer) business in the nutritional supplement and functional foods market. Feel started as a digitally native brand and subscription service for its products. It is now developing retail channels (e.g., Holland & Barret) and professional referrals (such as nutritional therapists). The company has 40,000 subscribers in the UK and is generating £500k recurring revenues per month. It is planning to launch in the DACH (Germany (D), Austria (A), and Switzerland (CH)) region in October this year, as its foray into Europe. CEO and Founder Boris Hodakel articulates Feel’s business ethos and strategic focus as follows: Data and analytics centric According to Mr Hodakel, nutrition brands are not harnessing the power of data. He believes that analytics of a customer’s journey empowers better services and hence monetisation. Ten out of its thirty employees are in software development or data. Recurring revenues or repeated business allows Feel to offer competitive prices. Clean-label products, UK/EU manufactured Feel sells clean labels, i.e., products without fillers or ineffective nutrients. Its products are suitable for vegans and come with zero plastic packaging. Feel is now focusing on the development of supplements and functional foods for verticals such as pregnancy and cognition. Feel develops formulas and product engineering in-house and outsources manufacturing. Currently, 90% of its products are made in the UK, 5% in Germany and 5% in France. As half of Feel’s current products were launched during the past 12 months, the increasing economy of scale is more than sufficient to offset the rising costs of raw materials. TMT’s investment and stake As of 30 June 2022, TMT owns a 11.30% stake in Feel. 3S Money (https://3s.money) Founded in 2018, 3S Money started as a B2B cross-border payments service provider primarily focused on SMEs (small-and-medium enterprises). The company has been growing by addressing the needs of underserved customer segments. After delivering a CAGR of 322% in revenues from FY20 to FY22, the company is now positioning itself as a digital bank challenger. The company is presently operating out of the UK, Luxembourg, and Dubai with support offices in the Netherlands and Latvia. Currently, 3S Money has a total of 100 people across five locations. Core values and infrastructure philosophy 3S Money owns connectivity, application logic, source-codes, and deployment processes essential to development of the client portal, directing and validating of transaction flows, and connectivity with partner banks. Commoditised IT services, such as data centres and low-level application development are outsourced. This approach allows 3S Money to focus on the delivery of faster, fairer, and caring services (no chatbots). Growth engines for FY23 For FY23, 3S Money is targeting a revenue of £30m, almost triple the FY22 level by pursuing further growth in the cross-payment market and offering trade finance services. The company is planning to expand its offering across EU and U.A.E. as well as to launch in Singapore, the Philippines, Vietnam, and Qatar either on its own or via joint ventures. It will also add 40+ Asian and African currencies to its service menu. Multi-currency trade finance facilities to SMEs 3S Money is aiming to lend at least £100m over the next three years. The initial focus is on European borrowers, but will also serve customers in Asia, the US, Australia and some markets in Africa and Latin America. The funding is sourced via two funds, Global Trade Finance Fund and UK High Income Fund (RE-Secured) and managed by 3S Capital Partners; a wholly owned subsidiary based in the Netherlands. Opportunities and challenges ahead CFO Andrei Dikouchine provides some colour on the opportunities and challenges going forward: Opportunities: Opportunities are expanding for 3S Money as more financial institutions are giving up on international flows and re-focusing exclusively on domestic markets. The picture is similar in trade finance and other services to SMEs. 3S Money’s growing local expertise in multiple markets on the payment side helps to navigate through the current environment of low visibility. Challenges: Mitigating regulatory risk in the cross-border payments space continues to be the number one priority. It is a balancing act between the maintenance of group wide controls and the compliance with local regulations in the markets where 3S Money operates. 3S Money’s wholly owned subsidiary has been granted the EMI (Electronic Money Institution) license in Luxembourg and is now registering passporting rights across EU member states. As 3S Money only offers secured lending, the shortage of quality collaterals poses a business challenge in trade finance. In addition, high prices and volatility in global commodities make it hard to find suitable risk-return opportunities. TMT’s investment and stake As of 30 June 2022, TMT owns a 11.38% stake in 3S Money.
TMT Investments, the specialist investment company focussed on private companies in core technology sectors around the world, has released interim results, showing an anticipated decline in NAV per share to US$6.68 following the recent technology sector sell off, a good performance during a volatile period economically and in the market. Several portfolio companies raised further equity capital at increased valuations during the period, despite the market volatility, validating these business models and progress being made. TMT has a highly experienced investment team with a strong track record and has built a diversified investment portfolio of over 55 companies, with emphasis on big data/cloud, e-commerce, FinTech, FoodTech, SaaS, marketplaces and EdTech.
TMT Investments, the specialist investment company focussed on private companies in core technology sectors around the world, has released FY21 final results showing a further strong increase in NAV to US$9.00 (FY20 US$6.10), up 47.5% and over double the current price. This increase has been driven by numerous capital raising events with portfolio companies at higher valuations. TMT has built a diversified investment portfolio of over 50 companies, with emphasis on big data/cloud, e-commerce, SaaS, marketplaces, FinTech, EdTech and FoodTech. These sectors are expected to continue to benefit from the dramatic increase in remote working and increased online consumer engagement.
TMT Investments plc today announced final results for the year ended 31 December 2021.We have published research on this which is attached and a snapshot of the research is below. The venture capital Company investing in high-growth technology companies has reported final results for FY December 2021. In another outstanding performance, the Company’s NAV per share increased by 47.5% in 2021 to US$9.00 (from US$6.10 as of 31 December 2020), mainly as a result of the significant upward revaluation of TMT’s investments in Bolt and PandaDoc. This has seen the Company’s NAV based 5 year IRR improve from 28.7% to 38.2%, supported by a long and consistent record of significantly market-outperforming returns. 2021 has further demonstrated TMT’s position as a trailblazer in identifying promising technology companies at an earlier stage of their development. TMT enjoyed another year of significant exits with a total of US$18.5m of net proceeds generated. TMT’s investment firepower was boosted further by a US$19.3m equity fundraise in October 2021. It was also one of TMT’s busiest years for making new investments, with US$40.5m deployed across 31 new and existing companies in 2021. Further in January 2022, the Company invested: • €825,000 in Bairrissimo, LDA, trading as Bairro, an instant food and grocery delivery company in Portugal (www.bairro.io); • US$4,000,000 in SOAX Ltd, a SaaS-enabled marketplace of tools to collect publicly available data on a scale (https://soax.com); • Additional €400,000 in Postoplan OÜ, a social network marketing platform, which helps create, schedule, and promote content (www.postoplan.app); and • £500,000 in Laundryheap Limited, a marketplace for on-demand laundry and dry-cleaning services (www.laundryheap.com). Despite the high levels of investment activity, some 68.8% of TMT’s current NAV is heavily weighted to three large and globally established companies: Bolt, Backblaze and PandaDoc. These companies continue to enjoy strong growth as highlighted below in the key developments for the five largest portfolio holdings. It is also encouraging to see 3S Money Club as a new entrant into the top five driven by its stellar growth. 3S Money Club is a relatively recent addition to the portfolio and testament to TMT’s record of identifying high-growth companies at a relatively early stage of their development before they reach potentially much higher valuations. Bolt (ride-hailing and food delivery service): • Active in over 400 cities globally (up from over 200 cities as of 31 December 2020) • Triple-digit growth across all verticals Backblaze (cloud storage provider): • Double-digit annualised revenue growth continued • IPO on NASDAQ raising US$100m PandaDoc (proposal automation and contract management software): • Double-digit annualised revenue growth continued • Over 30,000 paying clients (from over 23,000 as of 31 December 2020) 3S Money Club (provider of corporate multi-currency bank accounts): • Revenue increased 3.6 times • Profitable and cash flow positive Scentbird (Perfume, wellness and beauty product subscription service): • Stable revenue • EBITDA-profitable • Launched in Canada TMT’s share price has suffered of late and is trading some 67.4% below its 12 month highs, and more importantly at a 56% discount to its net asset value. TMT has shown through a consistent record of valuation uplifts, and full and partial exits that its portfolio enjoys relatively good liquidity for a predominantly privately focussed investment company. The portfolio recently gained its first exposure to the listed market via the Backblaze (NASDAQ:BLZE) IPO. TMT notes that at the closing mid-market price of US$11.53 per share on 21 March 2022, the value of TMT’s investment in Backblaze was approximately US$43.1m compared to the year end valuation of US$63.1m. The effect of this on TMT’s NAV per share is relatively modest equating to a potential reduction of 63c. TMT has also identified eight of its portfolio companies that are most likely to be negatively affected by the military conflict in Ukraine. If the conflict had taken place in 2021, TMT would have reduced the fair value of the relevant investees by a total of approximately US$4.6m. We estimate the combined impact on NAV/share of these potential impairments and the Backblaze share price performance at 78c. This equates to a pro-form NAV/share of 822c just 8.6% below the 31st December 2021 figure just reported. On that basis the shares still trade at a 51.8% discount. Meanwhile, there remains cause for optimism of further NAV/share appreciation in both the short and long term. Consensus forecasts are looking for revenue growth of 25% for Backblaze for FY Dec 22 and 31% in 2023. Analysts have an average target price for the stock of US$24 with a high of US$30 and a low of US$21. The shares are trading at 3.8x 2022 revenues. According to the BVP Cloud Index, median valuation multiples for the relevant companies have broadly returned to the more sustainable levels seen in 2014-2019. The median multiple is currently circa 8x revenues compared to a peak of 16x in February 2021. While this period of uncertainty has not been long enough to have a broad and sustained negative effect on the underlying businesses of technology companies, the recent public market correction has started to be reflected in reduced valuations of earlier stage privately held start-ups. This is generally beneficial to TMT as an investor specialising in earlier stage technology companies, allowing for more attractive investment entry points. Meanwhile TMT expects a number of positive revaluations across its portfolio in 2022. This reflects the discipline the team continues to apply in identifying high-quality technology businesses at appropriate valuation levels. For the time being however, the Company is applying an extremely cautious approach and we might expect investment levels to slow down over 2022.
The venture capital company investing in high-growth technology companies has updated on developments in the Company’s portfolio, since the publication of the Company’s previous portfolio update on 19 October 2021. The most substantial revaluation relates to TMT’s portfolio company Bolt, a leading international ride-hailing and food delivery company (www.bolt.eu), which announced today that it had successfully raised €628m (approx. US$711m) in a new equity finance round led by Fidelity, Sequoia Capital and a number of other leading institutional investors. This comes less than six months after the €600m raise by Bolt that enabled TMT to recognise an 83% uplift in its interim results to June 2021. The Bolt Fundraise announced today takes Bolt’s valuation to €7.4bn and represents a substantial valuation uplift of approximately US$37.2m (or 56%) in the value of TMT’s investment in Bolt, compared to the previously announced valuation as of 30 June 2021. On 1 November 2021, TMT announced that Volumetric Biotechnologies. Inc. was acquired by 3D Systems (NYSE:DDD). TMT has now received its share of the initial consideration of approximately $0.32m in cash and $0.25m in DDD shares, which represents a US$0.36m (or 177%) uplift in the fair value of TMT’s investment, compared to the previous reported amount as of 31 December 2020. The acquisition terms also provide for significant milestone dependent contingent consideration which could be worth up to approximately $5.7m to TMT. Today’s update revealed two further positive revaluations from its holdings. Workiz, a leading SaaS provider for the field service industry (www.workiz.com), has completed a new equity funding round. The transaction represented a revaluation uplift of US$3.0m (or 298%) in the fair value of TMT’s investment, compared to the previous reported amount as of 31 December 2020. Hinterview, a leading video recruitment software provider (www.hinterview.com), has also completed a new equity funding round. The transaction represented a revaluation uplift of US$0.2m (or 35%) in the fair value of TMT’s investment, compared to the previous reported amount as of 31 December 2020. Meanwhile investments in the next generation of fast-growing disruptive tech-led companies, with over $11m deployed since the last update, are set out below. We expect high levels of activity to continue supported by recent exits and the $19.3m fundraise announced in October 2021. • US$1,500,000 into Study space, Inc., trading as EdVibe, an all-in-one language teaching platform (https://edvibe.com/en); • US$2,000,000 into Bafood Global Limited, a hyper local ready-to-eat food delivery and cloud kitchen operator in Eastern Europe (https://bafood.com.ua/en); • US$1,000,000 in Educate Online Inc., an education platform that allows children aged 4-19 to study in leading international schools remotely (www.educate-online.io); • US$850,000 in My Device Inc., trading as Whiz, a device-as-a-service company that provides mobility, sports and high-tech devices on a subscription basis to corporate and individual clients (www.getwhiz.co); • US$1,000,000 in Lulu Systems, Inc., trading as Mobilo, an eco-friendly solution that allows users to digitally share contact details and turn meetings into leads (www.mobilocard.com); • Additional US$2,000,000 in Muncher Inc., a cloud kitchen and virtual food brand operator in Latin America (www.muncher.com.co); • Additional £2,000,000 in 3S Money Club Limited, a UK-based online banking service focusing on international trade (www.3s.money); and • US$500,000 in Alippe, Inc., trading as 1Fit, a mobile app with single membership that gives access to multiple gyms and yoga studios in Kazakhstan and Russia (www.1fit.app). TMT estimates that the revaluations announced today will result in a combined increase in the Company’s NAV equivalent to approximately US$1.29 per share. We estimate the current NAV/share adjusted on the same basis, to be circa US$9 including other portfolio movements announced to date and the current market price of portfolio holding Backblaze (NASDAQ:BLZE), a leading cloud storage platform which became TMT’s first listed holding following its IPO in November 2021. Both TMT’s estimated uplift and our estimated NAV/share are before adjustments for the Company’s ongoing operating expenses, accrued bonus, potential future revaluations/impairments, and similar items. This compares to a current market price for of $7.625 per TMT share as at yesterday’s close. In our opinion, the current price offers investors an attractive opportunity for exposure to a vehicle that provides a liquid route to access some of the fastest and best growing technology companies globally. TMT’s rigorous investment process and strong network has enabled it to enjoy a 5-year NAV-based IRR of 34.2% per annum based on the last reported NAV/share.
TMT Investments, the specialist investment company focussed on private companies in core technology sectors around the world, has announced a portfolio update with several significant revaluation events leading to a gross US$1.29 per share increase in NAV. Bolt, the international ride-handling and food delivery business, has announced today that it has successfully raised €628m (cUS$711m) valuing the company at €7.4bn and providing a US$37.2m uplift to the value of TMT's holding to US$103.4m (up 56% to the 30 June 2020 value of US$66.2m). This holding alone represents c46% of TMT's current market value. The current diversified portfolio of over 50 companies is focused on big data & cloud Services, e-commerce, online marketplaces, EdTech and SaaS solution technology sectors. With a highly experienced investment team and a strong long-term track record, TMT offers investors exposure to potentially substantial VC technology investment returns.
Good Morning, We have published research on TMT Investments recent News flow, which is attached and a snapshot of the research is below. The venture capital company investing in high-growth technology companies has seen its share price fall some 23% to US$7.25 over the last week, against a backdrop of weak global equity markets, concerns over the emergence of the Omicron Covid-19 variant and signs of tightening monetary policy. However, since the publication of HY June 2021 results on 18 August 2021, TMT’s news flow has been nothing but positive. In September, a portfolio update detailed a partial exit from PandaDoc a proposal automation and contract management software provider (www.pandadoc.com) and an agreement to dispose of the entire holding in Depositphotos, a leading stock photo and video marketplace (www.depositphotos.com). TMT expected these revaluations to result in a combined increase in the Company's NAV equivalent to approximately US$0.26 per share (before adjustments for the Company's ongoing operating expenses, accrued bonus, potential future revaluations/impairments, and similar items). Since then the Company has raised gross proceeds of US$19.3m at US$8.5 per share. TMT has had a further boost to its coffers having now received the initial US$12.9m consideration from the Depositphotos disposal. Latterly, TMT has seen one of its core holdings Backblaze, Inc,. a leading cloud storage platform, begin trading on NASDAQ and at a share price of US$21.47 is some 34% above the issue price. We now estimate pro-forma NAV (including the appreciation of Backblaze, assuming closure of the Volumetric Biotechnologies deal announced on 27 October 2021, and before adjustments for the Company's ongoing operating expenses, accrued bonus, potential future revaluations/impairments, and similar items) to stand at circa US$8.56 offering investors the rare opportunity to acquire shares at a discount to NAV, in a company who at the last reporting date had achieved a 5-year NAV-based IRR of 34.2% per annum. Given that TMT’s focus areas of big data/cloud, e-commerce, SaaS (software-as-a-service), marketplaces and EdTech, have largely benefitted from the accelerated shift to online consumer habits and remote working, we see the recent sell-off in the shares as a value opportunity. There are a full two pages of research disclaimer and disclosures on the attached research note in addition to the disclaimer on this email. The Company which is the subject of this report is a corporate client of Hybridan LLP.
Off to a blazing start The venture capital company investing in high-growth technology companies yesterday saw shares start trading on NASDAQ in its portfolio company Backblaze, Inc. (NASDAQ:BLZE), a leading cloud storage platform. The shares closed out the day at $19.90, 24.37% above the $16.00 IPO price. Yesterday’s closing price values TMT’s holding at circa $74.4m or 28% above the previously announced valuation as of 30 June 2021 (adjusted for the value of TMT's additional investment made in Backblaze in the second half of 2021). This is equivalent to a NAV/share uplift of 52c per TMT share. Backblaze’s US$100m raise (gross) leaves it well placed to accelerate growth and we are optimistic about the ongoing prospects for its stock price. Meanwhile deal activity is hotting up in the food delivery market which bodes well for TMT’s largest private holding Bolt (last reported at $66.2m), the ride-hailing and food delivery service. This week US food delivery giant DoorDash announced a $7bn all share takeover of Helsinki-based scaleup Wolt. That’s a multiple of over circa 20x 2020 revenues underlying the premium that industry players are prepared to pay for growth. Wolt’s revenue was up circa 4x in 2020. Earlier this week, US-based Gopuff formally announced its expansion into the UK via its acquisitions of Dija and Fancy. DoorDash is also reported to be investing $400m into Flink, a Berlin-based super-fast grocery delivery startup, as part of a $600m Series B round expected to close this week. Meanwhile, Germany’s Delivery Hero invested $235m into speedy grocery upstart Gorillas as part of a $1bn Series C round in October 2021. Bolt has more than doubled its geographic reach in terms of cities served over the last two years to approximately 300 and continues to roll out new services. Bolt’s strong foothold in Africa gives it an advantage of competitors focussed on more saturated market.
Joiners No joiners today. Leavers No leavers today. What’s cooking in the IPO kitchen? Ashtead Tech, subsea equipment rental and solutions provider for the global offshore energy sector to join AIM. The Directors have a high degree of confidence in the Group achieving no less than £52m of revenue, £21.5m of Adjusted EBITDA and £12.8m of Adjusted EBITA for FY21 Due 23 Nov. Offer TBA. Atrato Onsite Energy, a new closed-ended investment company established to invest in a diversified portfolio of onsite renewable energy assets to join the Main Market (Premium). Targeting a £150m raise. Due by end Nov. Eneraqua Technologies to join AIM. The Group is a specialist in energy and water efficiency. The principal activity of the Group is the provision of turnkey solutions for decarbonisation through heating and hot water systems for multiple occupancy social housing and commercial projects. Capital to be raised on Admission: £12m primary and £8m secondary. Anticipated Mkt Cap on admission: £92.0m. Due 22 Nov. DSW Capital to join AIM. DSW is a challenger mid-market professional services business headquartered in the Northwest of England. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income. Due early Dec. Raising £5m. Spiritus Mundi due to join the Main Market (Standard), a special purpose acquisition vehicle which will seek acquisition targets in Europe and Asia in the clinical diagnostics sector . The Company has already raised approximately £1.2m in a pre-IPO fundraising round. Recycling Tech Group to join AIM, a UK-based engineering, research and manufacturing company that has developed a modular and mass producible machine, the RT7000, which processes hard to recycle plastic waste into a synthetic oil that can be sold back to the petrochemicals industry as a chemical feedstock to make new plastics. Targeting a £40m raise. Due December. PYX Resources Limited, a producer of premium zircon, to dual list on the Main Market (Standard), a producer of premium zircon. The Company is currently listed on the National Stock Exchange of Australia, (NSX:PYX), which will remain its primary listing. Due 15 Nov, Mkt Cap c.£358m. Foresight Sustainable Forestry Company to join the Main Market (Premium), an externally managed investment company that will invest in UK forestry and afforestation assets. Raising up to £200m. Due 24 Nov. Travel Chapter Holdings to join AIM. Travel Chapter operates a leading online platform in the structurally growing UK holiday rental market, connecting a supplier base of property owners with their customers and providing a market leading service proposition to both. Offer TBA. Due mid Nov. ATOME headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas company which has incubated and financially supported ATOME to date, by way of a dividend in specie and flotation. Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties. Due mid Nov. Alinda Capital Infrastructure Investments to join the Specialist Fund Segment of the Main Market of the London Stock Exchange raising up to £350m. Due Late November. Nu-Oil and Gas to acquire Guardian Maritime Ltd and Guardian Barriers IP Ltd and become Guardian Global Security plc and join the Main Market (Standard). Guardian is a technology group that supplies products to prevent unauthorised entry into areas that are deemed to have value, with maritime security being the main focus initially. Q4 2021. ProCook, the UK's leading direct-to-consumer specialist kitchenware brand, is considering applying for admission of the Shares to the Main Market (Premium). ProCook's revenue grew by 37% to £53.4m in FY21 (ending 4 April 2021), with Adjusted EBITDA growing by 246% to £13.3m in the same period. Due in November. Rubix Group Holdings, the market leading pan-European distributor of industrial maintenance, repair and overhaul products and services to IPO on the Main Market (Premium). In the six months ended 30 June 2021, Rubix generated revenue from ongoing operations of EUR1,312m and adjusted EBITDA of EUR123m (9.4% adjusted EBITDA margin from ongoing operations), an increase of 10.6% and 19.3% compared to the six months ended 30 June 2020, respectively. Raising EUR850m, potential sale of existing ordinary shares by current shareholders. Raising EUR 850m. Due early Nov. Firering Strategic Minerals to join AIM, a holding company for a group of exploration and development companies set up to focus on developing assets towards the ethical production of critical metals. The Company's portfolio of assets is located in Côte d'Ivoire and contains projects that the Directors believe to be prospective for lithium and columbite-tantalite. Due Early Nov. Offer TBA. Pantheon Infrastructure to join the Main Market (Premium). PINT will make investments in private infrastructure assets. Due Mid Nov. M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On Admission, the company plans to acquire a portfolio of UK retail warehouses worth £120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100% in the coming quarters. Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the DRC and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. Due Mid Nov. Offer TBC. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet Bidstack Group 2.2p £20.5m (BIDS.L) The native in-game advertising group announced a new partnership with Wildlife Studios Limited, creators of one of the world's most popular mobile tennis games, Tennis Clash, which will see the Company deliver branded experiences into the game. The activations will see brands featured across virtual tennis courts such as New York and Sydney, on courtside banners, scoreboards and nets, on custom racket strings and across branded outfit designs that will be seamlessly integrated into the game's virtual world. The in-game takeovers will be available to all players and will be seen by a global audience. Ceres Power 1,149p £2,190m (CWR.L) The specialist in fuel cell and electrochemical technology has signed a joint development and equity agreements with RFC Power limited, a long-duration energy storage company. RFC is an early stage company that has a strategy to develop the world's lowest cost flow battery - a hybrid between a fuel cell and a battery that decouples power from energy. It is a unique and novel technology, which was spun out of Imperial College London in 2017, with a patented hydrogen manganese chemistry promising low cost, high round-trip efficiency and an extremely long cycle-life. Long-duration energy storage technologies, such as hydrogen and flow-batteries, have an important role to play in decarbonising the energy system towards a net zero future. Ceres has been in discussions with the RFC team for some time and Mark Selby, Chief Innovation Officer of Ceres, will now join RFC's Board. He will leverage Ceres' expertise and experience in licensing technology to support the commercialisation of RFC's intellectual property. Mark also represented Ceres in Glasgow this week for the official launch of the Long Duration Energy Storage (LDES) Council. Formed of 24 founder members including energy tech, end-user and investor organisations, the LDES Council is targeting 10% of all energy being stored in greater than eight-hour storage technologies, requiring 85-140TWh of deployed capacity, to achieve grid net-zero by 2040. Live Company Group 3.55p £5.2m (LVCG.L) Live Company Group plc announces that further to the announcement of 3rd December 2020 the Company confirms it has acquired 271 Ordinary Shares, representing 20% of the total issued share capital, in E Movement (PTY) Ltd ('EMPL'). EMPL is the South African based promoter of the Cape Town E Prix which, as previously announced, been confirmed for Series 9 of the ABB FIA Formula E World Championship and due to take place in February 2023. In 2020 and 2021 Chairman David Ciclitira (in his personal capacity) purchased the shares in EMPL for the purchase price of £113,460 in cash in anticipation of this being transferred to the Company. Accordingly, Mr Ciclitira is now selling them to the Company for the same amount which is to be satisfied in cash in instalments with the final instalment paid within 12 months. No interest is payable on the outstanding amounts. The Company also announces that subsequent investments from local South African BEE funds earlier in 2021 currently value EMPL at a significantly higher level. M Winkworth 210p £26.7m (WINK.L) The franchisor of real estate agencies updated for the ten months ending 31 October 2021. “Trading conditions have remained strong since the upturn in the first half of the year, with London sales and rentals, which account for some 75% of our revenues, being buoyant. Winkworth's new sales instructions and sales agreed in Q3 2021 were lower than those achieved in Q3 2020, which saw a surge of interest post lockdown and the announcement in July 2020 of the stamp duty relief scheme, but higher than those achieved in Q3 2019. We expect trading in the sales market to return to a more normal pattern following the ending of the stamp duty scheme. London rentals have seen a resurgence of interest along with the re-opening of businesses and a reversal of the move out of big cities. Rental prices outside of prime central London have recovered to pre-pandemic levels, while prime central London has also seen an improvement, with prices recovering to within 10% of pre-pandemic levels. Our rapidly expanding Norfolk franchise has added a third office in Hellesdon, with further openings on the way, while our Exeter and Bournemouth franchises have opened second offices in Tiverton and Ferndown respectively. We expect our local networks to continue to grow, led by talented, proven and ambitious franchisees whose expansion we are supporting. We have a healthy pipeline of at a least eight new offices due to come on board over the next twelve months. As a result of this buoyant level of activity during the current year, Winkworth's full year revenues are expected to exceed management forecasts and our full year profits to be materially higher than expectations. For the year ahead, with a return to more normal conditions in sales and an improved rental market in London, we look forward to the continued underlying growth of the business.” Maestrano Group 31p £22.1m (MNO.L) The Artificial Intelligence platform for transport corridor analytics, announces the awarding of a new contract by Secure Energy to its wholly owned subsidiary, Airsight Australia Ltd. Airsight will provide a drone-based survey for the new 700km transmission line extending from Wagga Wagga in New South Wales to the South Australian border. The line is part of TransGrid's EnergyConnect project and part of Australia's transition to renewable energy. TransGrid is the manager and operator of the high voltage electricity transmission network in New South Wales. The contract will run to 2025 with initial pre-built ground surveys beginning in 2022. One Heritage Group* 40.5p £13.1m (OHG.L) The UK-based residential developer focused on the North West of England has shared its Environmental Social and Governance policy. One Heritage is committed to conducting its business activities ethically and responsibly, and is committed to embedding ESG initiatives both in its day-to-day operations and across its developments. One Heritage is committed to: Supporting local communities and charitable organisations, particularly in regions where its developments are located. Investing in the training and education of its workforce, as well as engaging with local schools and colleges to support students with their career pathways. Being an inclusive employer, committed to encouraging equality, diversity and inclusion. Tackling the UK's shortage of quality residential accommodation. Considering its environmental impact, seeking ways to improve the environmental performance of its developments and reduce its carbon footprint. Raising the awareness of its tenants and occupiers in respect of how they can reduce their environmental impact. Engaging with its tenants, investors and principal advisors to ensure awareness of their expectations and responding accordingly. Upholding the Quoted Companies Alliance Corporate Governance Code (QCA). Reviewing One Heritage's ESG strategy and initiatives against the United Nation's Sustainable Development Goals, and monitoring and reporting on this. Sabien Technology 32.25p £4.7m (SNT.L) The Company focused on building a portfolio of solutions in the heating, cooling, and transportation sectors, announces today that it has signed heads of terms with Proton Technologies Canada Inc., in relation to a hydrogen processing licence within UK territories. The key elements of the HOT are: A license for Sabien to produce 20 tonnes of hydrogen per day, expandible by future agreement to higher volumes, generated using Proton's technology, to process: Suitable oil fields located onshore United Kingdom (Great Britain and Northern Ireland) and offshore within UK Territorial Waters, and/or Oil output by City Oil Field facilities in the Territory. Proton to provide all necessary technical assistance to validate suitable sites and to provide advice on establishing and operating the installation. Consideration of £100k in cash; and 280,000 warrants to be issued with exercise price of 60 pence with an expiry date of 19 February 2023. Saietta Group 208.5p £177.3m (SED.L) The UK company that has developed the innovative, patent protected, AFT electric motor designed for high efficiency electric vehicle drivetrains, today announces the acquisition of e-Traction Europe B.V. from the Evergrande New Energy Automotive group for a total consideration of up to EUR2m. E-Traction is a designer, manufacturer, and supplier of complete electric powertrain systems for heavy commercial vehicles with a range of in-wheel motor based axles, high voltage power electronics and control system technology, and over 10 years' commercial track record. The acquisition of e-Traction both advances the development and route to market for Saietta's high voltage AFT motor designs and brings additional product variants into Saietta's portfolio - both in terms of complementary power electronics and heavy vehicle drive trains. This is reflected in the work that Saietta and e-Traction have already collaborated on with regards to HGV e-axles as well as other designs based on e-Traction products. In the year to 31 December 2020 (unaudited), e-Traction reported revenue of EUR1.2m (2019: EUR11.4m) and a loss before tax of EUR6.46m (2019: loss of EUR5.2m). TMT Investments* 10.10 $303.8m (TMT.L) The venture capital company investing in high-growth technology companies, notes that its portfolio company Backblaze, Inc. ), a leading cloud storage platform, announced on 10 November 2021 the pricing of its initial public offering of 6,250,000 shares of its Class A common stock at a price to the public of US$16.00 per share, for gross proceeds to Backblaze of US$100m before underwriting discounts, commissions, and offering expenses payable by Backblaze. Backblaze's Class A common stock is expected to begin trading on the Nasdaq Global Market on 11 November 2021 under the ticker symbol "BLZE." The offering is expected to close on 15 November 2021, subject to the satisfaction of customary closing conditions. At the placing price of US$16.00 per share, the value of TMT's investment in Backblaze is valued at approximately US$59.8m, which represents a revaluation uplift of US$1.8m (or 3.2%) in the value of TMT's investment in Backblaze, compared to the previously announced valuation as of 30 June 2021 ( adjusted for the value of TMT's additional investment made in Backblaze in the second half of 2021) . Zephyr Energy 7.15p £92.3m (ZPHR.L) Update on the ongoing production testing at the State 16-2LN-CC well in Utah, and to report on third quarter performance from its non-operated portfolio in the Williston Basin, North Dakota. The Company announced the first flowing hydrocarbons from the State 16-2LN-CC well, even as production testing and well clean-up efforts remain ongoing. The production of hydrocarbons marks a major milestone for Zephyr, particularly as this is the first horizontal well in the wider Paradox Basin to flow hydrocarbons using a modern hydraulically stimulated completion. Combined with a substantial increase in Q3 production and associated cashflow from Zephyr's non-operated asset portfolio in the Williston Basin, the Company is well positioned to continue in the pursuit of its goal to develop a new hydraulically stimulated resource play in the onshore U.S. oil and gas sector.
TMT SNT CWR LVCG WINK CRDL OHG
TMT Investments plc have published a portfolio update. We have published research on this which is attached and a snapshot of the research is below. The venture capital company investing in high-growth technology companies, has flagged to the market the announcement released by 3D Systems (NYSE:DDD) on 27 October 2021 in respect of its agreement to acquire Volumetric Biotechnologies. Inc. According to the announcement released by 3D Systems, the acquisition is to be structured as a US$45m closing payment, with up to US$355m of further consideration due on an earnout basis subject to the achievement of certain milestones linked to the attainment of significant steps in the demonstration of human applications with all such payments comprising approximately half cash and half equity in 3D Systems. The acquisition is expected to close in the fourth quarter of 2021. TMT invested US$200,000 in Volumetric in July 2020 by way of a simple agreement for future equity (SAFE) with a 20 per cent. discount on conversion subject to a valuation cap of US$12.5m, which TMT expects will be converted and sold as part of the acquisition. On that basis, the exit proceeds from the initial consideration, prior to transaction costs and working capital adjustments would be circa $720k (un uplift of 260%) and as a relatively small investment an uplift of approximately 1.6c to NAV. The contingent consideration could be considerably more of up to $5.7m or circa 18c per TMT share but the Company does not currently have any further information in relation to the milestones linked to the Contingent Consideration, and there can be no certainty that such milestones will ultimately be achieved. Whilst $200k has tended to be the minimum ticket size for investments over recent years as the Company’s balance sheet has enjoyed the benefit of cash exits and the addition of new institutional investors, we have noted a trend towards larger commitments with several six figure cheques being written over 2021. Nonetheless the likely exit from 3D Systems represents an impressive return over a short period of time and it is pleasing to see recent uplifts and exits being generated by not only TMT’s more mature investments such as Backblaze (potential IPO this year), Depositphotos ($14.3m exit), Bolt (€600m raise led by Sequoia), and Pandadoc (partial exit and 30% uplift) but also the cohort of mid and early-stage companies.
TMT Investments PLC have provided a portfoloio update. We have published research on this which is attached and a snapshot of the research is below. The venture capital company investing in high-growth technology companies has moved one step closer to its first IPO driven exit. In a portfolio update announced this week TMT noted that its portfolio company Backblaze, Inc. publicly filed with the SEC on 18 October 2021. TMT currently holds a 9.97% interest in Backblaze, Inc. (pre its expected fundraise, as stated in the SEC filing). The filing revealed some impressive KPIs and financial details about the cloud-storage and backup Company. With circa half a million customers across 175 countries and annual revenue growth of 32% Backblaze exited Q2 2021 with $65m of annual recurring revenue. Previous speculation has suggested that Backblaze could achieve a valuation of approximately $1bn or a revenue multiple (based on ARR) of 15x which is perhaps towards the upper end of the range for tech floats in the US. In its HY June 2021 results TMT reported that its holding in Backblaze was valued at $56m equating to a company valuation of $562m. TMT has subsequently invested a further US$2m in Backblaze. TMT also disclosed that Delivery Hero SE, one of the world's leading local delivery platforms, announced that it had entered into an agreement with TMT's portfolio company, Hugo Technologies Ltd. to acquire its multi-category marketplace's core food delivery and quick commerce business. The proposed disposal by Hugo is expected to generate an uplift of approximately US$2 million in the fair value of TMT's investment in Hugo compared to the previous announced amount as of 30 June 2021. The cash receipts from Hugo, and indeed the potential exit opportunity presented by the proposed Backblaze IPO will supplement the recent cash inflows generated by the US$19.3m fundraise at US$8.5m and US$14.3m exit from Deposit photos. TMT continues to invest in the next generation of disruptive hyper-growth companies and since 5th October has made the following investments 1) US$500,000 in Adorum, Inc., trading as OneNotary ( www.onenotary.us ), an online notary service; and 2) an additional £1,000,000 in Feel Holdings Limited, a subscription-based multivitamin and supplement producer ( www.wearefeel.com ). Should the Backblaze IPO complete this year at say a 20% discount to the previously pre-money valuation of $1bn, and assuming no further portfolio movements in the year, we could see TMT ending 2021 with a NAV/share of circa US$8.5 per share, a 12 month uplift of 39% and therefore broadly in line with the current three year IRR of 41%. Based on the current share price that would see the shares trading just 8% above NAV having traded at a significant premium for some time, which we would argue, given the continuing strong performance and emerging pipeline, is fully justified. There
Good Morning TMT Investments have completed an aggregate fundraise of $19.3m. We have published research on this which is attached and a snapshot of the research is below. The venture capital company investing in high-growth technology companies has raised an aggregate fundraise of $19.3m from new and existing shareholders, via a placing, subscription and retail offer at US$8.5 per share. That equates to a premium of 13.5 per cent. to the Company's unaudited net asset value per share of US$7.49 as at 30 June 2021. However, we remind you that TMT has already reported US$16.3m of agreed full and partial exits, and positive revaluations in H2 that in total are expected to result in a combined increase in the Company's NAV equivalent to approximately US$0.26 per share (before adjustments for the Company's ongoing operating expenses, accrued bonus, potential future revaluations/impairments, and similar items). The funds will be deployed by the Company towards its pipeline of new and potential follow-on investments. TMT had c.US$11.2m cash and cash equivalents on its balance sheet as at 16 September. Further, the Company is expecting the majority of the agreed US$14.3m proceeds from its disposal of its investment in Depositphotos in H2 2021. The investor support shown including from retail investors is reflective of TMT’s outstanding track record with a NAV and dividend based annualised IRR since inception in 2011 of 22.5%. The pace of revaluations has accelerated in recent years with the three year annualised IRR to June 2021 standing at 41%. TMT offers investors on the AIM market rare exposure to hyper-growth private tech companies from innovation hubs such as Silicon Valley and Estonia. For those that participated in the 2011 IPO, TMT has outperformed the relevant universe of closed ended venture capital funds. On a NAV and dividend based return, investors at the IPO will have seen a 6.4x return as of 31 December 2020. According to the Cambridge Associates, “U.S. Venture Capital Index and Selected Benchmark Statistics”, (Q2 2020), VC funds with a 2011 vintage had a median total return of just 2x with even the upper quartile of funds returning only 2.9x over the same period. What’s more in terms of total return TMT has never had a down year. The TMT portfolio has a solid base in its larger more mature portfolio holdings. The Backblaze (US$58m) Storage Cloud provides a foundation for businesses, developers, IT professionals, and individuals to store, back up and archive data, host content, manage media, build their applications, and more and has generated a 12x return on TMT’s investment to date. Bolt (US$66.2m), a global ride-hailing and food delivery service active in over 45 countries and one of the largest private owned ride-hailing platforms in the world has provided a 207x return on TMT’s investment to date. Whilst these companies have been outstanding investments, there could be more to come. Backblaze, for example, has had no external funding since 2013. TMT was an early institutional investor in both these and many other of its 16 full and partial profitable investments, and has often been followed by the likes of Vista Equity Partners and Softbank. Some of TMT’s earlier stage investments are showing similar promise. 3S Money Club is a UK-based online bank challenger providing corporate clients with multicurrency bank accounts focusing on international trade by enabling corporates to accept and manage bank transfers in foreign markets. Its strong growth (404% year on year) has led TMT to increase its investment to $3.3m in successive funding rounds since first investing in 2020. The growth in food delivery led TMT to identify a way of capitalising on this strong trend by investing US$2m and leading a fund raising round in Muncher. Muncher is a next generation, fast-growing dark kitchen operating its own, delivery-only restaurant brands in Latin America. Unlike the traditional dark kitchen models, which are located in industrial or commercial areas, Muncher’s facilities are based in densely populated areas thanks to operating out of refurbished shipping containers. By being much closer to its customers, Muncher can improve delivery times to customers and reduce its carbon footprint. TMT’s strengthened balance sheet will help TMT to continue to be the investor of choice for high growth technology companies through the pursuit of exciting new companies and further investment into strong existing portfolio as and when funding opportunities arise. There are a full two pages of research disclaimer and disclosures on the attached research note in addition to the disclaimer on this email. The Company which is the subject of this report is a corporate client of Hybridan LLP.
TMT Investments, the specialist investment company focussed on private companies in core technology sectors around the world has announced a conditional placing to raise US$18.5m along with a proposed PrimaryBid offer to raise up to a further US$1.5m. The additional capital will be used for further investments in new and current portfolio companies. The current diversified portfolio of over 45 companies is focused on big data & cloud Services, e-commerce, online marketplaces, EdTech and SaaS solution technology sectors. TMT provides investors with unique access to earlier stage, private companies in these high growth segments. Portfolio liquidity events have led to various cash exits and substantial NAV increases. With a highly experienced investment team and a strong long-term track record, TMT offers investors exposure to potentially substantial VC technology investment returns.
TMT Investments released a Portfolio Update this morning. We have published research on this which is attached and a snapshot of the research is below. 3.5% NAV uplift generated in the last month with US$16.3m exits agreed and c.US$4.7m deployed The venture capital company investing in high-growth technology companies, has updated on developments in the Company's portfolio since the publication of the Company's 2021 interim results on 18 August 2021. This includes US$16.3m of agreed full and partial exits, and positive revaluations that in total are expected to result in a combined increase in the Company's NAV equivalent to approximately US$0.26 per share (before adjustments for the Company's ongoing operating expenses, accrued bonus, potential future revaluations/impairments, and similar items). This represents an uplift in the Company's NAV of approximately 3.5% from the previously stated figure of US$7.49 per share as of 30 June 2021, building on the 22.8% NAV/share appreciation reported for H1. Further, during the month since TMT last reported the Company has deployed circa US$4.7m of capital into new and further privately held high growth technology companies. As of 16 September 2021, TMT had approximately US$11.2 million of cash and cash equivalents on its balance sheet, and the Company continues to actively pursue suitable opportunities for further investment. The details of the transactions referred to are included below. Exits and Revaluations • TMT sold 11% of its interest in PandaDoc, a proposal automation and contract management software provider (www.pandadoc.com), to a large venture capital fund for a cash consideration of US$2.0 million. The transaction represents a revaluation uplift of US$4.2 million (or 30%) in the fair value of TMT's investment in PandaDoc, compared to the previous announced amount as of 30 June 2021. • TMT signed a definitive conditional agreement to dispose of its entire holding in Depositphotos, a leading stock photo and video marketplace (www.depositphotos.com), for a total cash consideration of approximately US$14.3 million (the "Disposal"), including the hold-back amount of approximately US$1.4 million payable within approximately 12 months of the completion of the transaction. Subject to final adjustments, and assuming TMT receives the entire hold-back amount in full, the Disposal represents a revaluation uplift of approximately US$3.5 million (or 32.2%) in the fair value of TMT's investment compared to the previous announced amount as of 30 June 2021. New Investments • €1,500,000 in EstateGuru, a leading pan-European marketplace for short-term, property-backed loans (www.estateguru.co); • Additional US$250,000 in Ad Intelligence Inc., trading as RetargetApp, an online solution aimed at monitoring ad campaigns and automatically managing daily budgets, audience and bids to improve the quality of retargeting (https://retargetapp.com); • Additional US$200,000 in Agendapro, Inc., a SaaS-based scheduling, payment and marketing solution for the beauty and wellness industry in Latin America (www.agendapro.com); • US$1,800,000 in Prodly, an Applications Operations (AppOps) software platform that simplifies change management for Salesforce and helps businesses to automate deployments, regression testing, governance, and version control for enterprise applications (https://prodly.co); and • £500,000 in SonicJobs App Ltd., an award-winning mobile app helping blue collar workers find and apply for jobs (www.sonicjobs.co.uk). We are encouraged by the strong performance that is continuing into the second half of the year. Over the past five years TMT has more than quadrupled in size with a last reported net asset value of $218.7m. We are impressed that it continues to maintain strong discipline in adhering to strict investment criteria which today’s release reminds us, are companies that have: outstanding management teams; a product or service that can be scaled up globally; fast revenue growth; Series A / Pre-Series A stage funding requirements; and viable exit opportunities. There are a full two pages of research disclaimer and disclosures on the attached research note in addition to the disclaimer on this email. The Company which is the subject of this report is a corporate client of Hybridan LLP
The venture capital company investing in high-growth technology companies across a number of core specialist sectors has released interim results for the half-year ended 30 June 2021. The Company’s NAV/share increased by 22.8% to US$7.49 (from US$6.10 as of 31 December 2020), mainly as a result of the significant upward revaluation of its investments in Bolt and PandaDoc. PandaDoc, a proposal automation and contract management software provider (www.pandadoc.com), completed a new equity funding round. The transaction represented a revaluation uplift of US$10.4m (or 286%) in the fair value of TMT’s investment. The revaluation of Bolt, a ride-hailing and food delivery platform and once again TMT’s largest holding was announced only this month following a €600m funding round led by Sequoia Capital, one of the world's leading and largest venture capital investors. The revaluation comes less than a year after Bolt’s previous funding round of €150m which saw the value of TMT’s investment in Bolt enjoy an uplift of 64%. The H1 figures also included $1.6m from two profitable exits and $3.3m in write-downs at the discretion of the Company. TMT’s bonus is accrued annually and based on the NAV as at the end of December. If however the NAV increase from 1 January 2021 to 30 June 2021 had been accrued during the period, it would have resulted in an additional bonus charge of US$4,108,784, equivalent to approximately US$0.14 per share and reducing the NAV to US$7.35 per share as of 30 June 2021. Further, due to a technical error in the calculation of the bonus pools in the bonus periods from July 2016 to December 2020 the amount of bonuses actually accrued in the affected bonus periods were understated by an aggregate of US$372,556. The error has been corrected, and the Underpaid Bonus has been included in the current financial statements as an additional charge for the current period. This equates to less than 0.2% of net assets at the period end. Some of TMT’s smaller earlier stage investments have also been performing well such as Novakid, an online English language school for children (www.novakidschool.com), which completed a new equity funding round. The transaction represented a revaluation uplift of US$1.8m (or 362%) in the fair value of TMT’s investment, compared to the previous reported amount as at 31 December 2020. TMT continued its intensive investing mode making US$14.1m of investments across 13 new and existing portfolio companies in the first half of the current financial year. Post period end TMT completed a further 7 investments totalling US$8.3m in new (Collectly, VertoFX, MetroSpeedy and Academy of Change) and existing (Postoplan, Novakid and Backblaze) companies. As at yesterday’s date (17 August 2021), cash reserves stood at $14.3m. Details of the new portfolio companies are set out below: - Collectly, Inc., a tech-enabled patient billing platform (www.collectly.co) - VertoFX Ltd, a UK-based cross-border payments and foreign exchange solution facilitating commerce for modern businesses, rapidly expanding in Africa (www.vertofx.com) - Metro Speedy Technologies Inc., a technology based local delivery company providing on-demand, same day or scheduled delivery services (www.metrospeedy.com) - Academy of Change, a personalised educational service for women on lifestyle topics (www.akademiaperemen.ru) Meanwhile TMT’s five largest holdings continue to perform well operationally and diversify into new products markets and services as set out below. Backblaze (cloud storage provider) • Double-digit annualised revenue growth continued • Cloud-to-cloud migration programme and Object Lock for ransomware protection launched Bolt (ride-hailing and food delivery service) • Active in over 300 cities globally (up from over 200 cities as of 31 December 2020) • Proprietary food delivery brand gains pace both in terms of the client base and countries of operation PandaDoc (proposal automation and contract management software) • Double-digit annualised revenue growth continued • Over 27,000 paying clients (from over 23,000 as of 31 December 2020) Depositphotos (stock photo and video marketplace) • Stable revenue growth continued • New graphic design software product Crello continued growing at faster rate Scentbird (Perfume, wellness and beauty product subscription service) • Double-digit annualised revenue growth continued • The company continues to launch new products Most of TMT’s core focus areas (big data/cloud, e-commerce, SaaS, marketplaces and EdTech) continue to benefit from the accelerated shift to online consumer habits and hybrid working. TMT has a tremendous track record and today’s interim results brings the 5-year NAV-based IRR to 34.2% per annum, up from 28.7% reported in the 2020 final results. TMT has now demonstrated the foresight to invest early in 3 portfolio companies that have reached unicorn status (Wrike, Pipedrive and Bolt) and its latest cohort of investments are showing that they can also enjoy that level of hypergrowth. TMT has been an outstanding long-term performer in terms of both NAV and share price. The shares are up some 433% over the last 5 years. It is perhaps not a total surprise to see some profit taking by shareholders over recent months with the shares 22.3% off the 12-month high. Based on the NAV/share reported today, the premium to NAV has now narrowed to circa 30% which we do not see as overly demanding given the growth trajectory of the portfolio and TMT’s prudent valuation policy. TMT expects a number of positive revaluations across its portfolio in the coming months and we look forward to the second half of 2021 and beyond with confidence
TMT Investments, the specialist investment company focussed on private companies in core technology sectors around the world, has released interim results showing a further strong increase in NAV to US$7.49. TMT has a highly experienced investment team with a strong track record, delivering three portfolio investments that have achieved unicorn status (Wrike, Pipedrive and Bolt) since TMT's Admission to trading on AIM and a 5-year NAV-based IRR of 34.2% per annum. TMT has built a diversified investment portfolio of over 45 companies, with emphasis on big data/cloud, e-commerce, SaaS, marketplaces and EdTech. These sectors are expected to continue to benefit from the accelerated shift to remote working and increased online consumer engagement.
The venture capital company investing in high-growth technology companies has put out a recent update on portfolio activity. Since 12 May, the Company has had the following portfolio revaluations: • PandaDoc, a proposal automation and contract management software provider ( www.pandadoc.com ), completed a new equity funding round. The transaction represented a revaluation uplift of US$10.4m (or 286%) in the fair value of TMT's investment in PandaDoc, compared to the previous reported amount as of 31 December 2020. • 3S Money Club Limited, a UK-based bank challenger providing corporate clients with multi-currency bank accounts ( www.3s.money ), completed a new equity funding round. The transaction represented a revaluation uplift of US$1.9m (or 306%) in the fair value of TMT's investment in 3S Money, compared to the previous reported amount as of 31 December 2020 (adjusted for the value of TMT's additional investments made in 3S Money in the first half of 2021). • Klear, an influencer marketing platform ( www.klear.com ), was acquired by Meltwater B.V., a leading global SaaS provider of media intelligence and social analytics, for US$17.8m in a combination of cash and earn-out. TMT's total expected cash proceeds from this disposal is US$0.5m. The transaction represented a revaluation uplift of US$0.4m (or 232%) in the fair value of TMT's investment in Klear, compared to the previous reported amount as of 31 December 2020. The above revaluations will result in a combined increase in the Company's NAV equivalent to approximately US$0.43 per share (before adjustments for the Company's ongoing operating expenses, accrued bonus, potential future revaluations/impairments, and similar items). This represents an uplift in the Company's NAV of approximately 7.1% from the previously stated figure of US$6.10 per share as of 31 December 2020. During the same period TMT has made the following new and further investments: • US$500,000 in Cyberwrite Inc., a cyber risk assessment platform that calculates the financial and benchmarked cyber risk of businesses worldwide ( www.cyberwrite.com ); • US$2,000,000 in CloudBusiness Inc., trading as Synder, an accounting solution for e-commerce businesses ( www.synderapp.com ); and · • €500,000 in Outvio, a fulfilment and delivery platform for the e-commerce industry ( www.outvio.com ). This is in addition to a number of other significant investments made since the publication of TMT’s record FY Dec 2020 results that were reported on 25 March 2021. These are set out below: · Additional €575,000 in Postoplan OÜ, a social network marketing platform, which helps create, schedule, and promote content ( www.postoplan.app ); · £200,000 in Balanced Ventures Limited, trading as FemTech Lab, Europe's first tech accelerator focused on female founders ( www.femtechlab.com ); · US$300,000 in Agendapro, Inc., a SaaS-based scheduling, payment and marketing solution for the beauty and wellness industry in Latin America ( www.agendapro.com ); · US$2,000,000 in Muncher Inc., a dark kitchen and virtual food brand operator in Latin America ( www.muncher.com.co ); · US$1,000,000 in Aurabeat Technology International Limited, the producer of air purifiers that are FDA-certified to destroy viruses and bacteria ( www.aurabeat-tech.com ); and · Additional £1,836,000 (via acquisition of new and existing shares) in 3S Money Club Limited, a UK-based online banking service focusing on international trade ( www.3s.money ). The Company has invested a total of US$14.6m in 2021 to date. As of 30 June 2021, TMT had approximately US$22.8m of cash and cash equivalents on its balance sheet, and the Company continues to research and identify suitable investment opportunities. TMT’s impressive investment performance over recent years (5-year IRR of 28.7% per annum) has been dominated by revaluations from its later expansion stage companies, well-established, more mature businesses, with globally diversified revenues, strong cash reserves and tens of thousands of customers. PandaDoc falls into this category and we believe there is more to come from this cohort. Our note of 7th May 2021 took a closer look at the ride-hailing space in which TMT’s second-largest holding, Bolt competes. We flagged the potential IPO in the US of Beijing-based Didi Chuxing (an investor in Bolt) which has since become the biggest US listing by a a Chinese Company since Alibaba. At a valuation of $68.5bn we estimate this to be a multiple of 2x Gross Merchandise Value (GMV) circa double the multiple implied by the US$36m holding of Bolt in TMT’s 2020 Annual Report. Bolt is growing rapidly with an estimated 60% increase in user numbers in H2 2020. TMT ‘s success in generating material cash investment has enabled it to diversify its holdings and it now boasts over 40 holdings. We were encouraged to see an exit (Klear, the influencer marketing platform acquired by Meltwater B.V) and revaluation from TMT’s early stage companies which have the potential to catch up with the more established holdings. We take a closer look at a selection of TMT’s early and mid-stage companies below. The term early-stage is perhaps somewhat misleading as even TMT’s earlier stage investments tend to already have viable product offerings and fast growing customer bases. Muncher – The Latin American dark kitchen brand is one we suggest is in the right place at the right time. It is a food preparation and delivery service and launched in February 2019. It operates in the format of dark kitchens restaurants, in which ready-made orders are transferred directly to delivery couriers. By the end of April 2021, the Company had more than 250 points and four brands. Muncher intends to use the recent funds received to strengthen its position in countries such as Mexico, Colombia, and Peru. The company also plans, with the help of expansion in Brazil, to increase the number of "dark kitchens" to 800 and expand the pool of partners to 40 by the end of 2021. Asia has very much been a front runner of delivery only kitchens but the phenomenon is taking a grip globally, accelerated by the coronavirus pandemic. In an article on restaurantdive.com in October 2020, the pandemic accelerated the US ghost kitchen market '5 years in 3 months’. In August, sales for meal delivery services grew 158% year-over-year. It’s a space that investment is pouring into with Deliveroo only this month pledging to double the amount of ‘dark kitchens’ it operates worldwide. Also this month it was revealed that Dubai-based cloud kitchen startup Kitopi had raised $415m from a group of investors including SoftBank Group Corp.’s Vision Fund 2, propelling it it to unicorn status. TMT’s portfolio spans several sectors whose growth potential has been highlighted or accelerated by the pandemic. These include cybersecurity, remote learning/edtech and an opportunistic departure from its usual focus, infection control. Aurabeat’s AG+ Silver Ion Plasma Sterilisation Air Purifier, can eliminate more than 99.9% of COVID-19 within 30 minutes. Its products range from medical grade purifiers that can purify areas’ as large as 43 square metres through to small portable desktop models for personal office space and cars. The global air purifier market size is expected to reach USD 22.80bn by 2028, according to a report by Grand View Research, Inc. It is expected to expand at a CAGR of 10.0% from 2021 to 2028. MEL Science now finds itself as one of TMT’s top 10 portfolio holdings. In November 2020, the EdTech company focused on VR-assisted chemistry and physics experiment subscription kits for children (www.melscience.com), completed a new US$14m equity funding round. The transaction represented a revaluation uplift of US$0.66m (or 33.2%) in the fair value of TMT's investment in MEL Science. Since launching in 2015, the Company has helped grow an online community of more than 3 million followers. The products as a whole have won the BETT “Innovator of the Year 2020” award, EdTech Digest’s Cool Tool Award for “Best VR/AR Solution” (part of its EdTech Awards, 2020), and, most recently, VR Award’s 2020 Education and Training award. 3S money, has rapidly grown to be one of TMT’s larger holdings following several investment rounds by the Company and last week’s announcement of a 306% valuation uplift. 3S money’s core focus of privately held international businesses with £25m to £50m in annual turnover gives it a differentiated position in the challenger banking and international payments arena. The expected forthcoming IPO of Wise (formerly Transferwise) will shine a spotlight on investor interest in the space. Wise is planning a direct listing on the LSE, reportedly at a valuation of US$6bn to US$7bn against FY March 2021 revenues of £421m suggesting a multiple of over 10x. Remote.it is another ’10 bagger’ for TMT following a new equity round in December 2019. It is a leading cloud provider of Virtual Private Internet (VPI) services. The Virtual Private Network (VPN) – Global Market Trajectory & Analytics predicts that the VPN market will grow at a compound annual growth rate of 17.2 percent over the next six years. After seeing above-average growth in 2020, it is on track to reach more than $107.5bn by 2027. TMT counts another cybersecurity business, Scalarr in its top 10 holdings following a 50.4% equity fund raise based revaluation announced in December 2020. Scalarr is a machine learning-based fraud detection solution focused on the advertising market. Other companies have shown the potential to corner significant niches with similar concepts targeting other industries. For example, Featurespace, which helps some of the world’s largest financial institutions identify and prevent fraud and financial crime has seen 624% revenue growth over the last four years. Scalarr addresses a problem that has seen its prominence rise for advertisers. During peak coronavirus months, mobile click fraud increased 62 percent, according to "Trends in Mobile Click Fraud during Covid-19," a study by ClickCease. Click fraud is a $24bn global problem that involves generating fake ad clicks either manually or via bots, and the issue has been getting worse on mobile devices amid the COVID-19 pandemic. TMT has a strong track record of pre-empting the next wave of hot technology trends having been early investors in trends such as mobility platforms (Bolt +112.9x TMT’s original investment), cloud based B2B Software (Pipedrive and Wrike which exited at +51.3x and +23.3x respectively), subscription based luxury goods (Scentbird +13.1x) and secure networking (remote.it +10.7x). Whilst fast-growing companies operating innovative and globally scalable business models remain the pillar of TMT’s investment model, we note the increased inclusion of impact investments within this remit including Muncher Inc., whose business model addresses carbon footprint and sustainability matters by providing food entrepreneurs with kitchen facilities located in reconverted shipping containers and in closer proximity to their clients, FemTech Lab, Europe's first tech accelerator focused on female founders and female health & wellness, and 3DLOOK, whose body measuring app can help clothing retailers reduce the carbon footprint and wastage created by poor fitting clothes and returns. Interest in responsible investments is certainly here to stay and TMT has an established track record of attracting top tier investors in follow on rounds at signifcantly higher valuations. Where responsible investments are first movers in answering unmet social and environmental needs, then the growth drivers can be very strong indeed. TMT’s impressive long-term performance has not gone unnoticed by the market and this has continued into 2021 with the shares up 34.17% year to date. The $10.65 share price with the implied uplift in NAV from last week’s announcement (pre-adjustments) suggesting a NAV/share some 43% below the market price. This is reflective of TMT’s proven track record of investing and exiting from hyper-growth companies, which we expect to continue as the portfolio deepens.
The two largest listed companies in the ride-hailing space have this week reported Q1 numbers ahead of expectations. At Uber (NYSE:UBER) gross bookings equalled $19.54bn versus expectations of US$18.07bn, with ride bookings of US$6.8bn also ahead of analyst expectations of US$6.6bn (down 28% year on year) and deliveries powering ahead up 166% year on year. Competitor Lyft (NASDAQ:LYFT) saw revenues rise 7% over the last quarter to US$609m ahead of expectations of US$558.7m. Meanwhile TMT’s second largest holding, Bolt anounced this week the launch of a car-sharing service Bolt Drive. Like ZipCar and Drivy, Bolt Drive will allow customers to rent a car on demand for a brief period via the Bolt app, which can also be used to hail a taxi, rent bikes and e-scooters, as well as to order food. Bolt intends to invest €20m in launching Bolt Drive in Europe this year, starting with a pilot in the Estonian capital of Tallinn. The sector has performed well for investors. Uber shares are up 70% over 12 months with Lyft up 79% over the same period. A report on Bloomberg last month revealed that Beijing-based Didi Chuxing (an investor in Bolt) has filed confidentially with the U.S. Securities and Exchange Commission for an initial public offering that could raise several billion dollars. Southeast Asia’s Grab also announced its intention to go public last month, in partnership with the SPAC Altimeter Growth Corp. (NASDAQ:AGC) at a pre-money valuation of circa US39.6bn. With Gross Merchandise Values (GMV) of US$12.5bn this places GRAB at a gignificant premium to UBER with a 2020 GMV multiple of 2.8x vs 1.7x for Uber. Lyft does not disclose GMV figures but assuming the same margin as Uber generates a multiple of 1.4x. Whilst the exit from the pandemic will not be linear, this sector is likely to be amongst one of the largest beneficiaries. In the UK for example, Uber is planning to recruit 20,000 additional drivers to cope with growing demand. Following a funding round of €150m last December, TMT’s 1.24% holding in Bolt, valued at $36m equates to an equity valuation of US$2.45bn. We understand that Bolt is doing GMV of some €2bn annually, implying a multiple of circa 1x. Bolt is poised to return to rapid growth as lockdowns ease. As at December 2020 it had some 50 million users, implying growth in the user base of over 60% over a 6 month period. Like Grab it is an increasingly multi-purpose platform and the market leader in many of the 40 or so countries in which it in operates. Its most dominant footholds are in Eastern and Central Europe, the Nordics, Africa and Mexico. It is also looking to disrupt the competition in more developed markets such as Paris and London. Bolt prides itself on its financial discipline and before the pandemic set in claimed to be profitable or close to profitable in two thirds of its markets. Commenting on the December 2020 funding round Bolt’s CEO Markus Villig said “This round was the first time we raised with most of the previous round still in the bank, despite the pressures of COVID”. Given Bolt’s growth potential and favourable valuation multiple on a GMV basis, we believe that an IPO or significant valuation event could arguably take place at least double the current valuation on a pre-money basis, which in itself would equate to an additional $1.24 in NAV per share for TMT, or 20% of TMT’s last reported NAV per share of US$6.10. It is highly encouraging to see the more mature holdings in TMT’s portfolio, with globally diversified revenues, strong cash reserves and tens of thousands of customers, continue to grow and innovate paving the way for further revaluations and potential cash exits such as last year’s US$41m cash exit from Pipedrive (112.9x TMT’s original investment). Bolt has already delivered an uplift of 51.3x TMT’s original investment. Meanwhile TMT is accelerating its investments in the potential disruptors of tomorrow having deployed a record US$12.5m into 16 new and existing investments during 2020 with a further $4m deployed as at the publication of the results at the end of March.
TMT Investments is a specialist investment company focussed on private companies in core technology sectors around the world. It has invested in a diversified portfolio of over 35 companies focused on big data & cloud Services, e-commerce, online marketplaces, EdTech and SaaS solution technology sectors. TMT provides investors with unique access to earlier stage, private companies in these high growth segments. The second half of 2020 observed significant investor interest in high-growth potential technology companies, providing substantial growth capital for fast growing companies leading to substantial upward revaluations for many companies, including several TMT holdings, with NAV up 73.3% in the year. Given the early-stage nature of these private company investments TMT's structure as a listed vehicle, similar to an investment trust, reduces liquidity concerns. Given the highly experienced investment team with a strong track record, TMT offers investors exposure to VC technology investment returns and we initiate coverage with a Buy recommendation.
PensionBee, the online pensions provider, with a mission to make pensions simple, so that everyone can look forward to a happy retirement, considering an IPO on the High Growth Segment of the Main Market of the London Stock Exchange. PensionBee is a leading online pensions provider in the UK, with approximately 130,000 Active Customers and £1.5 billion of assets under administration , in each case as at 28 February 2020. Cornerstone FS to join AIM, an SME focused, cloud-based provider of international payment, currency risk management and electronic account services focused on removing the complexity of international payments for customers. Raising £2.2m. Mkt Cap £12.3m. Due 6 April. Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc. With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m Expected April 2021. Parsley Box, the direct to consumer provider of ready meals to the 60+ demographic, recently announced its AIM IPO plans. Parsley Box provides ready meals, which are not required to be stored in a fridge or freezer, have a shelf life of up to six months and are cooked in minutes. The company reported revenue of £24.4m for the financial year ended 31 December 2020 (unaudited). Deal details TBC and admission is expected to occur late March/ early April 2021. ActiveOps, a UK-based leader in Management Process Automation (MPA), providing a SaaS platform to large enterprises with complex and often global back-offices is planning to join AIM. Details TBA. Due late March. Proposed move to AIM from the main market (standard) by Emmerson (EML.L) to provide Emmerson with access to a market and environment which is more suited, in the Board's view, to the Company's current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoing project development work. NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company's target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021. Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021. Fix Price announces its intention to float on the Main Market of the London Stock Exchange. Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company. Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA. Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT's investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance. Deliveroo has applied for admission of the Company's Shares to the standard listing segment of the Official List of the FCA and to trading on the main market of the London Stock Exchange. Deliveroo works with over 115,000 best loved restaurants, takeaways and grocery stores globally and provide work to over 100,000 riders across 800 locations in 12 markets, serving 6m customers globally. The price range for the Offer has been set at £3.90 to £4.60 per Share, implying an estimated market capitalization at Admission of between £7.6 billion and £8.8 billion. Raising c. £1bn. Due 7 April
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The venture capital Company investing in high-growth technology companies has released its FY December 2020 results with its 73.3% NAV/Share growth representing the best performance since its admission on AIM in 2010.. The annualised five-year NAV-based internal rate of return now stands at 28.7%. TMT celebrated its 10th year on AIM in December 2020, over which time its NAV per share has increased over six-fold. The 73.3% return generated in 2020 is based on the closing net assets of US$177.9m or US$6.10 per share, which includes a deduction for US$6.1m of bonuses accrued over the period.
The venture capital Company investing in high-growth technology companies has announced the second major upwards revaluation of one of its top 5 holdings in as many months. Bolt, a leading international ridehailing and food delivery company (www.bolt.eu) announced, on 16 December 2020, that it had successfully raised €150m (US$182m) in an equity finance round led by D1 Capital Partners. The transaction represents a substantial valuation uplift of approximately US$14.1m (or 64%) in the value of TMT's investment in Bolt, compared to the previous amount as of at 30 June 2020. This takes Bolt, already TMT’s first unicorn, to a valuation of over US$2bn.
The venture capital Company investing in high-growth technology companies across a number of core specialist sectors has announced results for the half-year ended 30 June 2020. In a year plagued by a global pandemic, where Fitch Rating is forecasting a 4.4% decline in Global GDP, H1 saw NAV per share decrease 1.7% to US$3.46 per share. More encouragingly, TMT reported that the majority of its portfolio companies continue to grow at a double digit rate, with some investees specifically benefiting from the COVID-related market changes (MEL Science, Vinebox, Legionfarm, Hugo, ClassTag, Scentbird, etc.) Furthermore, a number of portfolio companies raised capital at significantly higher conversion caps, creating future revaluation upside potential (Bolt, Legionfarm, and ClassTag).
The venture capital Company investing in high-growth technology companies has updated on portfolio updates since it reported full year results on 16 April 2020. Most significantly, TMT’s largest holding, Bolt, a leading international ride-hailing and transportation Company, announced, on 26 May 2020, that it had successfully raised €100m (US$110m) in the form of a convertible note from Naya Capital Management.
The venture capital Company investing in high-growth technology companies has reported FY Dec 2019 results with NAV per share increasing an impressive 20.4% before adjusting for the $5.8m special dividend paid in July 2019 following the $24.7m cash exit from Wrike at the end of 2018. The year end NAV stood at $102.8m or $3.52 on a per share basis.
The venture capital Company investing in high-growth technology companies has updated on developments in its portfolio since the publication of its HY June 2019 results in September, a period which saw the Company post a record 6-month NAV/share increase of 18.45%.
In our note of 22 August 2019 covering a portfolio update of the same day we surmised that TMT’s NAV per share might be close to $3.40. Today’s interim results statement for the six months to June 2019 have come in a little ahead of that, with NAV/share of US$3.66, up 18.45% over the period. The Company’s cash reserves benefitted from the net receipt of proceeds of US$24.7m pertaining to the 2018 disposal of TMT’s investment in Wrike. Post period end TMT declared and paid a special dividend of $5.84m equating to $0.2 per share or 5.5% of NAV.
AMRYT PHARMA PLC— a biopharmaceutical company focused on developing and delivering innovative new treatments to help improve the lives of patients with rare or orphan diseases have raised $60m before expenses and will relist on the AIM Market on the 25/09/2019
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TMT continues to extend its record of highly profitable cash exits. In a portfolio update released today, TMT announced an agreement with a third party to dispose of approximately 9% of its interest in Backblaze for $2m.
The venture capital company investing in high-growth technology companies has declared a special dividend of $0.2 per share “following the Company's recent significantly profitable cash exit from Wrike, Inc.” This will still leave TMT with ample headroom to deploy further investment capital in exciting high growth companies. As at 26 June 2019 cash balances stood at c.$22.2m. The dividend represents a cash return of 5.6% over the current share price. This is the second special dividend paid out in TMT’s history with the last one in 2016 totalling $2.8m. The record date for the dividend is 19 July 2020, with an ex-dividend date of 18 July 2019.
The venture capital company investing in high-growth technology companies has begun to put its recently swollen cash reserves to work. An initial $22.3m was received in January following the disposal of its stake in the SaaS based work collaboration platform Wrike, a handsome profit on the $1m originally invested in 2012. Last week TMT announced its first investment into a UK company, $2m into MEL Science as part of a wider round.
United Oil & Gas (UOG.L) an oil and gas exploration and development company brought to the Official List (Standard Segment) in July 2017 by way of a reverse takeover of Senterra Energy plc. No capital to be raised, expected market cap of £17m and expected 1 March Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Polemos, to be renamed Digitalbox plc, has agreed to acquire Digitalbox Publishing Holdings Limited for c.£10m through a share for share exchange. The acquisition constitutes a RTO. Polemos has also agreed to acquire the entire issued share capital of Mashed Productions Limited, a digital media business which owns the online satirical news website "The Daily Mash", for a maximum total consideration of up to £1.2m. Market cap on admission £12.4m, expected 28 February
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Back in 2012, TMT invested in the cloud-based work collaboration platform Wrike, through a $1m investment in a convertible debt instrument. Today TMT has announced that its holding in Wrike is the subject of an agreed cash disposal of $22.9m to Vista Equity Partners who have completed a majority investment in Wrike. The total consideration represents a substantial valuation uplift of approximately US$14.5m (or 173%) in the value of TMT's investment in Wrike, compared to its valuation of US$8.4m as at 30 June 2018. On receipt of funds, the transaction will result in a material increase in the Company's available cash to over US$25m.
Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019.
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It may seem like blockchain/cryptocurrency companies are taking over the world, so we embarked on a reality check. There is huge market interest in blockchain with abnormal gains from cryptocurrencies driving investors to hang on the coat tails of anything associated with the tech themes of the moment i.e. blockchain/AI/VR. Companies who are pivoting to blockchain are generally seeing stock spikes disproportionate with company performance as can be seen in the charts opposite that appeared in an article in CB Insights. However, the delivery of genuine economic value from these technologies is still in the infancy stage and this report will look deeper into the offerings of these new players.
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Renalytix AI—developer of artificial intelligence ("AI") decision support and clinical management tools for improving early diagnosis, continual monitoring and drug development for kidney disease. incorporated in March 2018 as a subsidiary of EKF Diagnostics Holdings (AIM-EKF). total fundraising in the range £21 - 25 m. Mkt cap - c. £67.5- £71.0m. Due 2 Nov. Kropz PLC—an emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa, a phosphate project in the Republic of Congo and exploration assets in Ghana. Looking to join AIM, offer TBC, market cap TBC. Due Late October. Azalea Energy—oil and gas production and development company based in Louisiana, United States. Net production of 13 MMcfe/D (2,200 boepd) and total 1P proved reserves of 91 Bcfe (15.1 mmboe), 2P reserves of 111 Bcfe (18.5 mmboe) raising up to $38m, expected mkt cap over $100m. Due 29 Oct Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due late Oct Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.
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The venture capital Company investing in high-growth, technology companies across a number of core specialist sectors has announced the following investment portfolio developments:
The venture capital company investing in high-growth, technology companies across a number of core specialist sectors has announced a $3.5m equity fundraising priced at $2.43, equivalent to its last disclosed NAV/share. This will give the team capacity to refresh the portfolio which has consistently delivered strong NAV/share growth. Further cash may be generated should TMT makes further full or partial cash exits from its rapidly growing investee companies. TMT recently announced FYDec17 results with NAV/share growing 28.6% year on year to $2.43 or 16.2% on a six-month view, despite $4.38m of prudent impairments. These were more than offset by $20.83m of positive revaluations. TMT also generated $2.2m in partial exits. Cash balances were relatively flat at £986k.
Bacanora Lithium—Readmission. No new money. Mkt cap £140m. Due 21 March. the new holding company for Bacanora Minerals Ltd | Stirling Industries—Acquisition vehicle focusing on industrials. Offer TBA. Due 5 March | GRC International Group— holding company for a group of companies providing a range of products and services to address the IT governance, risk management and compliance requirements of organisations. Offer TBC, expected 5 March 2018 | Core Industrial REIT—established to invest in Irish-based industrial properties, predominantly located in the Greater Dublin Area . Vendor placing and new funds to a total of €225m, Target gross proceeds €207m. expected 21 Feb | Polarean - Medical drug-device combination company operating in the high resolution medical imaging market. Offer TBC. Due 22 Feb | Block Energy—a NEX Listed UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC
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2017 was a good year for TMT and this should be reflected in the next results to be reported for the year just passed. As of 10thOctober 2017, it was reported that NAV/share stood at $2.45, up 17% in just a few months vs the $2.09m bonus adjusted figure reported as at 30 June 2017 (H1).
Panthera Resources— The Company was established to act as a holding company for Indo Gold Limited, an unlisted Australian registered company. The Company aims to explore and develop gold assets in India and West Africa. Offer TBC, expected 20 Dec 2017 Sumo Group—one of the UK's largest independent developers of AAA-rated video games providing both turnkey and codevelopment solutions, including initial concept and pre-production . Offer TBC. Due late Dec Pelatro—provider of proprietary software solutions to enterprise-level customers for various aspects of precision marketing for use in B2C applications. Offer TBC, expected 19 December 2017 Fusion Antibodies—Belfast based contract research organisation providing services to biopharmaceutical and diagnostics companies that are involved in the development of antibodies for both therapeutic drug and diagnostic applications. Offer TBA. Due Mid Dec. Sirius Petroleum—RTO. Becoming an operating company in the Ororo Field in Nigeria. Raising £7.2m/ Mkt Cap £35.6m. Due 19 Dec. Bushveld Minerals—RTO of Bushveld Vametco and therefore 78.8% of Strategic Minerals Corporation, the intermediate holding company that owns a 75 per cent. interest in the Vametco Vanadium Mine. Range Resources— oil and gas company listed on the ASX plans to admit to AIM on 13 Dec with market cap of £17.4m. Also acquiring Range Resources Drilling Services Limited, an oil services business based in Trinidad & Tobago with extensive drilling capabilities. Eqtec—Company with access to a proprietary advanced gasification technology used in industrial size power plants to convert waste into synthetic gas to generate electricity. Raising £1.6m. Mkt Cap £8.7m. Due 21 Dec. Volex VLX.L—The global provider of cable assemblies is proposing to move from the main market to AIM on 19 January. £71m market cap. FYMar18E rev £241.5m and £7.19m PBT Miriad Advertising—Global video advertising company incorporated in 2015 and is engaged in the development of native invideo advertising. 2016 rev £0.7m and £7.3m operating loss. Offer TBA. Expected 19 Dec. OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.
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The venture capital company which invests in high-growth technology companies across a number of core specialist sectors has provided a portfolio revaluation update with the net effect being worth approximately $1.3m in further net asset value or 4.8 cents on a per share basis. Within the recent developments is an impairment for ‘Try the World’ (gourmet ingredient subscription box) and we take comfort in TMT’s speed of recognising down valuations (up valuations are largely event driven) so that bad news is not stored up in advance. Todays reported developments are listed below.
The venture capital company which invests in high-growth technology companies across a number of core specialist sectors has reported HY June 2017 results. NAV/share over the 6 months rose 11.6% to $2.11 driven by three significant positive revaluations totalling $7.43m. These included a partial disposal of Wrike and equity funding rounds for Taxify and PandaDoc. The continuing growth of these core holdings and quality of new investors give us optimism that these have not peaked and that further uplifts are possible. Taxify for example secured a strategic investment from Didi Chuxing, the world’s leading mobile transportation platform. This enabled TMT to post a 547% gain in its holding. The ridehailing service has seen continuing triple-digit growth in revenue and user numbers.
Andes Energia PLC—Sch1 on admission the Company will change its name to Phoenix Global Resources plc will be an Argentinian independent oil & gas exploration and production company, offer TBC but market cap to be £844m and admission date 10 August 2017 Verditek PLC—Sch1 update from holding company in the clean technology sector with subsidiaries operating within what it considers are emergent and fast growing sectors (industrial treatment of solids, air purification, water de-odourisation, zero emission, low cost energy), offer raising £2.75m at 9p with market cap of £16.9m. Admission 10 August 2017 Strix Group PLC—Sch1 from the Company involved with the design, manufacture and supply of kettle safety controls and other components and devices involving water heating and temperature control, steam management and water filtration. Offer raising £190m at 100p with market cap of £190m admission date 8 August 2017. Xpediator Plc—Sch 1 from the holding Company for an integrated freight management business operating in the supply chain logistics and fulfilment sector across the UK and Europe with a strong presence in Central and Eastern Europe. Offer details TBC, expected Admission early August 2017. GetBusy PLC—Sch1 from the holding Company of its subsidiary undertakings, which operates as a document management software business, headquartered in Cambridge, UK and operating across the UK, USA, Australia and New Zealand. Capital to be raised via a rights issues of £3m at 28.3p with anticipated market cap of £13.7m, Admission 4 August. Altus Strategies—African focused natural resource Company. Offer TBC. Expected early August. Hipgnosis Songs Fund investment Company offering pure-play exposure to Songs and associated musical intellectual property rights. Offer raising £200m at 100p. The Company has decided to extend the closing date for the Placing, Offer for Subscription and Intermediaries Offer to 1 August 2017. The Company may bring forward this closing date at any time. Admission 4 August 2017
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The venture capital company which invests in high-growth technology companies across a number of core specialist sectors announced that it has sold a part of its holding in one of its portfolio companies for US$400,000 to a private investor.
The Venture Capital Company which invests in high-growth, technology companies across several core specialist sectors last reported NAV/share of $1.89, but within its results statement stressed that there were strong expectations of several positive revaluations in 2017. We have a look at some of the key portfolio holdings and what their underlying growth rates could mean for the value of TMT’s investments.
The venture capital Company which invests in high-growth, technology companies across a number of core specialist sectors recently released results for the year to 31 December 2016. The year-end NAV of $1.89 per share combined with its first special dividend of 10c per share paid in November represented a 4% total return over the NAV/Share as at December 2015.
Shares in TMT are some 20% off their year highs and trading at an 11% discount to the last reported NAV of $1.91/share as at 30 June 2016. News flow since then suggests continued positive performance of the portfolio, with the most significant reported value event being the recent revaluation of Pipedrive accretive to NAV per share by circa 14.7c. TMT invests in high growth private companies and as such valuation events are relatively infrequent for its investee companies. Anecdotal evidence from some of TMT’s portfolio suggests that there remains significant value to be unlocked from certain investments, that will not yet meet the criteria for being recognised in the portfolio valuation as at December 2016. We highlight the key news events both reported by TMT, and those relating to its portfolio companies that we have identified since the last audited NAV was published.
TMT Investments * (TMT.L) | Milestone Group * (MSG.L) | Venn Life Sciences* (VENN.L) | AB Dynamics (ABDP.L) | Vela Technologies (VELA.L) | Digital Globe Services (DGS.L) |Watkin Jones (WJG.L) | easyHotel (EZH.L) | Finn Aust Mining (FAM.L) | Volga Gas (VGAS.L)
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The investor in high-growth, internet-based companies across a variety of core specialist sectors has released interim results to June 2016. Following a relatively quiet half in terms of valuation events, NAV/share remains unchanged at $1.91m. However, cash balances have been greatly reinforced by the $5.85m partial exit of Deposit Photos. This represents an approximately 5.5 times increase in the valuation of TMT's holding in Depositphotos since its original investments, or 18% since December 2016. This more than offsets impairments in WhalePath and Adinch. The cash injection has led to a much improved period end cash balance of $5.92m and facilitated three in-period investments totaling $650k and a further three postperiod investments totaling $800k. The fair value of TMT’s investments can lag the underlying growth of these exciting tech companies as valuation reviews are driven largely by funding rounds and exits. TMT expects a number of positive revaluations of its investee companies in the future and we highlight the growth profiles of some selected investments below.
Against a market backdrop where tech IPOs in the United States have virtually ground to a halt, TMT Investments is still managing to make profitable exits and gain access to innovative opportunities to invest in high growth internet based companies. This is thanks to its solid connections in the world of private tech investing.
The investment company which takes stakes in high-growth, internet based companies across a variety of sectors has today announced a further NAV enhancing transaction selling a sizeable stake in its investment Depositphotos, a rapidly growing stock market place.
The investment company which takes stakes in high-growth, internet based companies across a variety of sectors has today announced final results for FY Dec 2015. The headline NAV/Share growth rate of 40% to $1.91 (the company’s core performance metric) is the best achieved by TMT to date and implies a second half acceleration, with growth of 26.5% in H2. Over 2015 the company’s NAV/Share massively outperformed the NASDAQ 100 Tech Sector, which was actually down 2.6% and was over 7 percentage points ahead of the FTSE 350 Software & Computer Services Index (up 32.9%).
TMT Investments is not the only UK listed vehicle to invest in private technology plays. However we believe the current portfolio to be unusual in that it focusses on high growth internet based companies that derive the majority of their revenues from the United States. The US remains the epicenter of innovation and investment in the ‘New Economy’ and although 2015 was perceived as a slower year than 2014, which was a record year, the PwC US tech deals insights report for Q3 2015 revealed that in Q3 alone 62 technology deals closed for $25.1 billion in deal value. Albeit within that technology IPOs plummeted to the least active quarter since Q1 2009, raising only $168 million in new proceeds, suggesting that the lion’s share of the action is taking place in the private arena in which TMT participates.
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