Tekcapital profit dives on lower asset gains; confident in outlook

(Alliance News) - Tekcapital PLC on Wednesday said it expects to continue to grow "from strength to strength" as it posted an interim increase in net assets while profit fell.

The London-based intellectual property investment group said pretax profit dove to USD5.4 million in the first half of 2025, from USD19.5 million a year prior.

Pertinently, gain from changes in fair value on financial assets was USD5.7 million, down from USD20.5 million.

Net assets rose 10% to USD77.4 million at June 30 from USD70.1 million at December 31, 2024, driven by portfolio appreciation and capital allocation.

Net asset value per share was 33 US cents as at June 30, flat from December 31, 2024. This was "despite macroeconomic volatility, underpinned by portfolio resilience," the company said.

Chair Clifford Gross said: "We are pleased with the performance of our portfolio companies, most of which have demonstrated increased revenues during the current period, and we remain very bullish in our belief that most will continue to grow from strength to strength. We are executing on our strategy, and this should result in increases in returns on invested capital as our portfolio companies continue to mature and achieve meaningful milestones, which we hope to see by the end of the year and in subsequent periods."

He added: "Tekcapital is now more agile than ever before. Our enhanced liquidity creates numerous opportunities for new portfolio company development, value creation, and shareholder returns. We look forward with confidence, believing that our portfolio is well-placed to deliver strong returns and meaningful innovations that can improve the quality of life for the customers that we serve."

Tekcapital shares fell 0.6% to 9.94 pence each on late Wednesday morning in London.

By Tom Budszus, Alliance News slot editor

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