ALL18 Jan 2021 08:42
Johnma18 Jan '21 - 07:43 - 234928 of 234931
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Allenby Capital TMT Update - 18.01.21 - TERN.L, BOOM.L
Tern plc* (TERN.L, 7.1p/£23.5m)
Portfolio update: Strong business momentum (12.01.21)
Device Authority: Closed 2020 strongly with five orders secured in its primary sectors and achieved record trading in Q4. This comprised the conversion of two pilot customers in the connected vehicle/automotive sectors; an initial engagement with an EU-headquartered FMCG customer working with Wipro; a renewal with a medical device company as it moves from pilot to production; and a new pilot with an EU/US medical device company. Three of these orders resulted from the Microsoft and Wipro partner channels.
Wyld: The shareholders of Wyld Networks and Wyld Technologies have reached agreement on a consolidation of the business into Wyld Networks. Tern was the sole shareholder of Wyld Networks and now holds 96.7%. Wyld continues to supply both development services and products for its existing terrestrial Lower Power Wide Area Network (LPWAN) modules into the IoT connectivity market. In November, it signed an agreement with a global satellite operator to co-design, co-develop and co-market a combined terrestrial and satellite LPWAN IoT module. Marketing agreement signed with Alliance Corporation for North America. In Wyld Mesh and Connect, a marketing agreement was signed with Ascom in November for its solution to monitor, alert and measure social distancing in multiple sectors, including healthcare and education.
FundamentalVR: Signed three contracts in late November and early December for a combined value of £1.7m, including two significant follow-on orders with existing customers. The third contract is a three-year contract with a new medical industry client. FundamentalVR is also working with other leading pharma companies for the use of its platform in gene and cell therapies in Regenerative Medicine applications.
InVMA: Contract wins with both existing and new customers in Q4 2020. AssetMinder SaaS sales continue to increase as a percentage of revenue and there are currently 14 AssetMinder quotations to UK customers alone in its pipeline.
Talking Medicines: Doubled the size of the team since Tern's investment in November 2020. New SaaS data platform for pharma companies scheduled for Q1 2021.
Allenby Capital comment: Commercial progress in all of the portfolio companies during Q4 2020 and this momentum has continued into 2021. Management sees this progress not just in terms of the current trading performance of the portfolio companies but also the critical proof points of their business models and processes, elements that are required in order to secure third party investment, especially from US VC firms, that will unlock value for shareholders.