Craven Capital Final Results17 Dec 2023 17:52
A simple summary of the Final results is that the value of Craven Capital's investments in all the investee companies, except Biovitos Ltd, have been written down to zero.
All the web-based businesses have zero revenue and improbable business models and have made scant progress towards generating revenue, let alone profit.
The original thesis for investing in these web start up companies Companies contradicted the professed deep value philosophy of Craven House. And were in themselves poor ideas. None of them have got anywhere nor are likely to do so.
Honeydog, the 25% owner of the entity which owns the licence to manufacture and distribute the chemotherapy drug, SI-053, known as Temodex, has also been written down to zero.
Temodex has to pass through a series of regulatory testing hoops before it comes to market. The chances are these will not go well. Writing Honeydog down to zero is pre-emptive, but over-states the case. There is some value is Honeydog, in my view.
Bio-Vitos still has demonstrable value as the RTO into Hemcheck gives a quotable price on the Swedish stock exchange. . Bio-Vitos market cap is currently worth about 520k sterling. Craven own 24.5% of Bio-vitos. So CRV's share there is worth around 130k.
Bio-Vitos's omega oil business has been moved into a new entity, "Rosemonkey". Given that the business falls into a crowded field with intense competition, it doesn't surprise me that they've never actually managed to sell anything. No explanation ever given by CRV or the relevant investee company. The value of this investment is surely zero too.