(Alliance News) - Tekcapital PLC on Thursday posted a substantial profit increase for the first half of its financial year, resulting from a sharp increase in the fair value of its portfolio companies.
Shares in Tekcapital were up 19% at 8.07 pence in London in morning trade.
The intellectual property investor's pretax profit for the six months to May 31 was USD4.4 million, up from only USD105,996 the year before, after a USD4.8 million net increase in the fair value of its portfolio companies pushed revenue up to USD5.4 million from USD1.3 million.
Net asset value per share on May 31 was USD0.38, up from USD0.30 on November 30.
Tekcapital has opted to prioritise investment in its current portfolio companies. In 2018, the company said it was looking into investing "in a new portfolio company in the cannabidiol space". While Tekcapital is still interested in this investment, the firm has decided to wait on additional progress from its exiting portfolio companies before moving forward with the deal.
"We are pleased to report successful half-year performance for the group, which has noted record total revenue, profits and net assets for the period whilst reporting important development milestones for its portfolio companies. We believe our unique approach of acquiring and commercialising university IP innovations, coupled with providing a range of IP services continues to deliver strong returns on invested capital," said Chair Clifford Gross.