Last checked at 20 Jan 2020 07:00
20 January 2020
TMT INVESTMENTS PLC
("TMT" or the "Company")
Portfolio update
TMT Investments PLC (AIM: TMT.L), the venture capital company investing in high-growth technology companies, is pleased to announce the following developments in the Company's portfolio since the publication of the Company's interim results on 17 September 2019.
Positive revaluations
·; Le Tote. In November 2019, online fashion rental startup Le Tote acquired Lord & Taylor, the US's oldest department store. The transaction resulted in an increase of approximately US$0.75 million in the value of TMT's interest in Le Tote.
·; Remote.it. Platform as a Service (PaaS) provider of enterprise-class networking services Remote.it has recently completed an equity financing round. The transaction resulted in an increase of approximately US$2.2 million in the value of TMT's interest in Remote.it.
Negative revaluations
·; Sixa. Full impairment of US$0.9 million.
·; Drupe. Full impairment of US$0.6 million.
The combined effect of these revaluations represents approximately 5 cents of additional NAV per TMT share (before adjustments for the Company's ongoing operating expenses, bonus provisions, potential future revaluations, and similar items). The NAV per share announced in the Company's 2019 Interim Results was US$3.46 (after the payment of a special dividend of 20 cents per share in July 2019).
New investments
·; US$1.0 million in Affise Technologies Ltd, a performance marketing SaaS solution for the affiliate industry (https://affise.com/en/);
·; US$0.65 million 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); and
·; US$0.22 million in Timbeter OÜ, a cloud-based mobile software solution for round wood measurement, timber inventory management and reporting (https://timbeter.com).
Other developments
In addition, TMT's largest portfolio holding, ride-hailing and transportation platform Bolt (https://bolt.eu/en/) has recently entered into a €50 million quasi-equity facility agreement with the European Investment Bank (EIB), the European Union's long-term lending institution. Bolt now operates in over 150 cities worldwide (compared to over 90 cities as of 30 June 2019) and the new funds will be used to continue Bolt's expansion.
The Company intends to publish its 2019 Annual Report the week commencing 30 March 2020.
Alexander Selegenev, Executive Director of TMT Investments PLC, said:
"Most of our existing portfolio companies, including our most substantial holdings in Bolt and Backblaze, continue to rapidly expand their businesses.
"The venture capital community has recently become more focused on start-ups' ability to achieve underlying profitability or at least to control the cost of their growth. The 'growth at any cost' mentality that often prevailed among start-ups and venture capital investors, is gradually being replaced with a more pragmatic approach of seeking to achieve more cost-efficient growth. As this balanced approach has always been one of TMT's key selection criteria, we are pleased to see that the majority of our portfolio companies are seeing the fruits of having adopted this approach early on, and which now allows them to maintain high growth rates whilst at the same time efficiently control their burn rates and cash liquidity levels.
"We expect a number of further positive revaluations across our portfolio in 2020 and will update shareholders on relevant developments as appropriate. With a continued strong cash balance, we continue to apply our highly selective criteria to identify new promising investment opportunities."
For further information contact:
TMT Investments PLC Alexander Selegenev Executive Director www.tmtinvestments.com
| +44 (0)1534 281 800 (Computershare - Company Secretary)
alexander.selegenev@tmtinvestments.com
|
Strand Hanson Limited (Nominated Adviser) Richard Tulloch / James Bellman
| +44 (0)20 7409 3494 |
Hybridan LLP (Broker) Claire Louise Noyce
| +44 (0)20 3764 2341 |
Kinlan Communications David Hothersall | +44 (0)20 7638 3435 davidh@kinlan.net |
This announcement is inside information for the purposes of Article 7 of EU Regulation 596/2014.
About TMT Investments PLC
TMT Investments PLC invests in high-growth technology companies across a number of core specialist sectors and has a significant number of Silicon Valley investments in its portfolio. Founded in 2010, TMT has invested in over 50 companies to date and has net assets of US$107m as of 30 June 2019. The Company's objective is to generate an attractive rate of return for shareholders, predominantly through capital appreciation. The Company is traded on the AIM market of the London Stock Exchange. www.tmtinvestments.com.