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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| TMT Investments PLC | AQSE:TMT.GB | Aquis Stock Exchange | Ordinary Share | JE00B3RQZ289 | Ordianry Shares NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.00 | - |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Nov 2022 to Nov 2024
TIDMTMT
RNS Number : 2883J
TMT Investments PLC
15 August 2023
15 August 2023
TMT INVESTMENTS PLC
("TMT" or the "Company")
Half-year report for the six months to 30 June 2023
TMT Investments Plc (AIM: TMT), the venture capital company investing in high-growth technology companies, is pleased to announce its unaudited interim results for the half-year ended 30 June 2023.
Highlights :
-- NAV per share of US$6.32 (down 1.4% from US$6.41 as of 31 December 2022) -- Total NAV of US$ 198.7 million (US$201.7 million as of 31 December 2022) -- 5-year IRR of 17.6% per annum -- US$2.4 million of investments across six new and existing companies in the first half of 2023 -- US$1.8 million of disposals during the period
-- US$7.8 million in cash and cash equivalent reserves (including treasury bills) as of 14 August 2023
Alexander Selegenev, Executive Director of TMT, commented:
"In the first half of 2023, TMT's portfolio benefited from the revaluation of four of its companies ( 1Fit, Collectly, SonicJobs and Mobilo) as a result of each raising fresh capital at significantly greater than prior valuations. At the same time, volatility in the public markets affected the share price of NASDAQ-listed Backblaze, resulting in a US$6.5 million reduction in the value of TMT's investment in Backblaze, based on Backblaze's closing mid-market price as of 30 June 2023 of US$4.33 per share . The Company's NAV per share in the first half of 2023 decreased by 1.4%.
In line with the market, TMT's portfolio has continued to see an increase in divergence between the stronger and weaker performers. TMT's largest holdings (Bolt, Backblaze, PandaDoc, 3S Money and Scentbird) continued to perform well, recording double-digit annualised revenue growth. These are well capitalised companies with high levels of cash reserves, a strong global presence and are typically close to achieving profitability or already achieving profitability. At the same time, during the period TMT partially or fully wrote down the value of four of its smaller investments.
2022 and 2023 saw a dramatic change in the venture capital and technology company environment, with most investors "returning to basics" by supporting ultimately profitable business models at sensible valuations. Start-ups have now realised that the "growth at any cost" approach has been replaced with a focus on "fundamentally profitable growth at the right valuation". As a result, start-ups' success/survival rate is now largely defined by their ability to reposition and adjust to this changed market environment.
We are seeing a number of outstanding companies that are thriving in this changed market environment. We have therefore continued to make investments selectively, deploying a total of US$2.4 million across current and new portfolio companies during the first half of 2023, as well as US$0.9m invested after the reporting period.
With no financial debt and cash and cash equivalent reserves (including treasury bills) of approximately US$7.8 million as of 14 August 2023, TMT is well positioned to ride out the current market volatility and to continue investing in companies that meet our investment criteria as fully as possible, while disposing of our investments fully or partially whenever there is an opportunity to maximise shareholder value ."
For further information contact:
TMT Investments Plc +44 370 707 4040 Alexander Selegenev (Computershare - Company Secretary) Executive Director alexander.selegenev@tmtinvestments.com www.tmtinvestments.com Strand Hanson Limited (Nominated Adviser) James Bellman / James Dance +44 (0)20 7409 3494 Cenkos Securities plc (Joint Broker) Ben Jeynes +44 (0)20 7397 8900 Hybridan LLP (Joint Broker) Claire Louise Noyce +44 (0)20 3764 2341 Kinlan Communications +44 (0)20 7638 3435 David Hothersall davidh@kinlan.net
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European (Withdrawal) Act 2018 (as amended).
About TMT Investments Plc
TMT Investments Plc invests in high-growth technology companies globally across a number of core specialist sectors. Founded in 2010, TMT has a current investment portfolio of over 55 companies and net assets of US$199 million as of 30 June 2023. 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 .
EXECUTIVE DIRECTOR'S STATEMENT
In the first half of 2023, the venture capital markets generally continued to experience a higher degree of market and economic volatility.
Investors' increased focus on start-ups' profitability has created a "survival of the fittest" market environment. On the one hand, companies with superior products and business models that have continued to grow and improve profitability continue to attract new capital at higher valuations. On the other hand, companies with weaker business models or non-mission critical products that were more dependent on future funding have come under increased pressure.
In line with the market, TMT's portfolio has continued to see an increasing divergence between the stronger and weaker performers.
Despite the ongoing challenges in the macroeconomic and political environment, investors in the first half of 2023 continued to back fast-growing, high-quality digital technology companies. This resulted in positive revaluations for several of TMT's portfolio companies. We were pleased to see 1Fit, Collectly, SonicJobs and Mobilo receive further validation of their business models by raising fresh capital at notably higher valuation levels.
The volatility in the share prices of many publicly traded technology companies continued to negatively affect the value of TMT's equity stake in NASDAQ-traded cloud storage company Backblaze ( www.backblaze.com ), resulting in a US$6.5 million reduction in the value of TMT's investment in Backblaze as of 30 June 2023, based on Backblaze's closing mid-market price of US$4.33 per share at that time . Despite such financial market volatility, Backblaze's business has been developing well, recording 19.4% revenue growth in the first half of 2023 compared to the same period of 2022. Backblaze remains well capitalised, with an estimated unaudited net cash position of approximately US$4.1 million as of 30 June 2023. Backblaze's closing mid-market price on 11 August 2023 was US$4.36 per share.
TMT adopts a highly prudent approach to valuing its portfolio investments and therefore regularly reviews and writes down investments that are not showing the progress TMT believes is required to justify the previously reported valuation level. As a result, during the period TMT partially or fully wrote down the value of four of its smaller investments (in addition to Backblaze, and excluding any further write-downs related purely to exchange rate fluctuations).
NAV per share
The Company's NAV per share in the first half of 2023 decreased by 1.4% to US$6.32 as of 30 June 2023 (31 December 2022: US$6.41), mainly as a result of the downward revaluation of Backblaze during the period.
Operating expenses
In the first half of 2023, the Company's administrative expenses of US$ 641,077 were below corresponding 2022 levels (first half of 2022: US$772,317), reflecting the Company's reduced level of investment and business development activities during the period.
Financial position
As of 30 June 2023, the Company had no financial debt and cash and cash equivalent reserves (including treasury bills) of approximately US$8.9 million (31 December 2022: US$10.1 million). As of 14 August 2023, the Company had cash and cash equivalent reserves (including treasury bills) of approximately US$7.8 million as a result of investments of US$0.9 million made by the Company since the period end.
Outlook
TMT has a diversified investment portfolio of over 55 companies, focused primarily on Big Data/Cloud, SaaS (software-as-a-service), Mobility, and FinTech.
2022 and 2023 saw a dramatic change in the venture capital and technology company environment, with most investors "returning to basics" by supporting ultimately profitable business models at sensible valuations. Start-ups have now realised that the "growth at any cost" approach has been replaced with a focus on "fundamentally profitable growth at the right valuation". As a result, start-ups' success/survival rate is now largely defined by their ability to reposition and adjust to this changed market environment.
Despite the ongoing market and political volatility, investors continue to invest in high-quality technology businesses at the right valuation levels. TMT is continuing to identify such opportunities very selectively, whilst employing a generally cautious investment approach. With no financial debt and cash and cash equivalent reserves (including treasury bills) of approximately US$8.0 million as of 14 August 2023, TMT is well positioned to ride out the current market volatility and to continue making investments and realising full and partial disposals when the right opportunities present themselves.
Alexander Selegenev
Executive Director
15 August 2023
PORTFOLIO DEVELOPMENTS
The following developments have had an impact on, and are reflected in, the Company's NAV and/or financial statements as of 30 June 2023 in accordance with applicable accounting standards.
Full and partial cash exits, and positive revaluations:
-- In January and March 2023, TMT received a total additional US$1.6 million in dividends from Hugo, as part of the consideration for Hugo's disposal of its food delivery and quick commerce business in Central America to Delivery Hero completed in 2022.
-- In February 2023, TMT received US$0.3 million from Backblaze, Inc., as a settlement payment in respect of TMT's additional investment in Backblaze in 2021.
-- Alippe, Inc., trading as 1Fit, a mobile app providing users with access to multiple gyms and yoga studios in Central Asia ( https://1fit.app ), completed a new simple agreement for future equity ("SAFE") funding round. The transaction represented a revaluation uplift of US$1.1 million (or 216%) in the fair value of TMT's investment, compared to the previous reported amount as of 31 December 2022.
-- Collectly, a patient billing platform for medical organisations ( www.collectly.co ), completed a new equity funding round. The transaction represented a revaluation uplift of US$4.4 million (or 213%) in the fair value of TMT's investment, compared to the previous reported amount as of 31 December 2022.
-- Lulu Systems, Inc., trading as Mobilo, a smart digital business card solution ( www.mobilocard.com ), completed a new SAFE funding round. The transaction represented a revaluation uplift of US$0.5 million (or 46%) in the fair value of TMT's investment, compared to the previous reported amount as of 31 December 2022.
-- SonicJobs App Ltd., a job search app focused on "blue collar" positions ( www.sonicjobs.com ) , completed a new equity funding round. The transaction represented a revaluation uplift of US$0.3 million (or 45%) in the fair value of TMT's investment (incl. gain from foreign exchange fluctuations), compared to the previous reported amount as of 31 December 2022.
In addition, the following of TMT's non-USD denominated investments increased in value due to favourable exchange rate movements as of 30 June 2023: Bolt, Timbeter, 3S Money, Feel, Hinterview, MTL (Outfund), FemTech, Outvio, EstateGuru, Bairro, and Laundry Heap.
Negative revaluations:
The following of the Company's portfolio investments were negatively revalued in the first half of 2023:
Hot Features
Premium
Portfolio Write-down Reduction as Reasons for write-down
Company amount (US$) % of fair value
reported as
of 31 Dec 2022
Based on the closing mid-market
price of US$4.33 per share
on 30 June 2023 ( incl. the
US$0.3 million received as
settlement in respect of
TMT's additional investment
Backblaze 6,529,412 28% in Backblaze in 2021)
-------------- ----------------- -----------------------------------
Business negatively affected
by the current market conditions
Bafood 1,875,000 75% and exposure to Ukraine
-------------- ----------------- -----------------------------------
Rocket
Games
(Legion
Farm) 1,650,000 100% Under review
-------------- ----------------- -----------------------------------
Business negatively affected
Conte.ai by the current market conditions
( Postoplan (figures also include foreign
) 1,212,146 74% exchange effect)
-------------- ----------------- -----------------------------------
The company is changing its
business model due to significant
Metrospeedy 500,000 50% changes in operating environment
-------------- ----------------- -----------------------------------
Total 11,766,558
-------------- ----------------- -----------------------------------
In addition, TMT's non-USD denominated investment in eAgronom decreased in value due to exchange rate fluctuations as of 30 June 2023.
Key developments for the five largest portfolio holdings in the first half of 2023 (source: TMT's portfolio companies):
Bolt (ride-hailing and food delivery service):
-- Active in over 550 cities globally (up from over 500 cities as of 31 December 2022) -- Double-digit annualised revenue growth -- Announced plans to achieve profitability in 2024 and potentially float in 2025
Backblaze (cloud storage provider):
-- Double-digit annualised revenue growth -- Multiple new integrations and partnerships building basis for future growth -- Targeting adjusted EBITDA breakeven point in Q4 2023
PandaDoc (proposal automation and contract management software):
-- Double-digit annualised revenue growth -- Over 50,000 customers (from over 40,000 as of 31 December 2022)
3S Money (provider of corporate multi-currency bank accounts):
-- Double-digit annualised revenue growth -- Regulatory permissions obtained in Luxemburg and Dubai; Singapore licence in progress -- Main UK business is EBITDA-positive
Scentbird (Perfume, wellness and beauty product subscription service):
-- Double-digit annualised revenue growth -- EBITDA positive
Further investments:
Given the persistently high level of market uncertainty and volatility, TMT continued to be more selective and made the following investments to date in 2023:
Follow-on investments during the reporting period :
-- Additional EUR150,000 in Bairrissimo, LDA, trading as Bairro, an instant food and grocery delivery company in Portugal ( https://bairro.io );
-- Additional US$100,000 in Cyberwrite, an AI cyber insurance platform providing cybersecurity insights and risk quantification for businesses worldwide ( www.cyberwrite.com );
-- Additional GBP45,861 in FemTech, a London-based technology accelerator focused on female founders ( www.femtechlab.com ) ;
-- Additional US$500,000 in Alippe, Inc., trading as 1Fit, a mobile app providing users with access to multiple gyms and yoga studios in Central Asia ( https://1fit.app ) .
Follow-on investments after the reporting period
-- In July 2023, TMT invested an additional US$200,000 in Lulu Systems, Inc., trading as Mobilo, a smart digital business card solution ( www.mobilocard.com ).
New investments during the reporting period:
-- Initial US$500,000 in Phoenix Health Inc., a Canada-based direct-to-consumer health platform for men ( www.phoenix.ca ); and
-- Initial US$1,000,000 in GameOn Inc., an AI chat platform that powers conversational experiences for fashion, sport and retail brands and teams ( www.gameontechnology.com ).
New investments after the reporting period
-- In August 2023, TMT invested an initial US$700,000 in Montera, Inc., trading as Forta, a family-powered autism therapy platform ( www.fortahealth.com ).
FINANCIAL STATEMENTS
Statement of Comprehensive Income
For the For the
six months six months
ended 30/06/2023 ended 30/06/2022
Notes USD USD
Losses on investments 3 (2,577,516) (72,148,629)
Dividend income - 105,700
------------------------------------------ ------ ------------------ ------------------
Total investment loss (2,577,516) (72,042,929)
------------------------------------------ ------ ------------------ ------------------
Expenses
Administrative expenses 5 (641,077) (772,317)
Operating loss (3,218,593) (72,815,246)
Finance income 114,214 -
Currency exchange gain/(loss) 40,206 (185,967)
------------------------------------------ ------ ------------------ ------------------
Loss before taxation (3,064,173) (73,001,213)
Taxation 7 - -
------------------------------------------ ------ ------------------ ------------------
Loss attributable to equity shareholders (3,064,173) (73,001,213)
Total comprehensive loss for the
year (3,064,173) (73,001,213)
------------------------------------------ ------ ------------------ ------------------
Loss per share
Basic and diluted loss per share
(cents per share) 8 (9.74) (232.11)
------------------------------------------ ------ ------------------ ------------------
Statement of Financial Position
At 30 June At 31 December
2023 2022
USD USD
Unaudited Audited
Notes
Non-current assets
Financial assets at FVPL 9 193,117,790 195,260,535
Total non-current assets 193,117,790 195,260,535
Current assets
Trade and other receivables 10 421,475 1,382,811
US treasury bills 1,004,500 -
Cash and cash equivalents 11 7,861,447 10,102,683
Total current assets 9,287,422 11,485,494
Total assets 202,405,212 206,746,029
Current liabilities
Trade and other payables 12 3,735,455 5,012,099
Total current liabilities 3,735,455 5,012,099
Total liabilities 3,735,455 5,012,099
Net assets 198,669,757 201,733,930
----------------------------- ------ -------------------- ---------- ------------------------
Equity
Share capital 13 53,283,415 53,283,415
Retained profit 145,386,342 148,450,515
Total equity 198,669,757 201,733,930
----------------------------- ------ -------------------- ---------- ------------------------
Statement of Cash Flows
For the six For the six
months ended months ended
30/06/2023 30/06/2022
Notes USD USD
Operating activities
Operating loss (3,218,593) (72,815,246)
---------------------------------------------- ----- ------------- -------------
Adjustments for non-cash items:
Changes in fair value of financial
assets at FVPL 3 2,673,620 72,176,280
Currency exchange gain/(loss) 40,206 (185,966)
Gain on receivables (96,104) -
(600,871) (824,932)
---------------------------------------------- ----- ------------- -------------
Changes in working capital:
Decrease in trade and other receivables 10 1,057,440 305,007
Decrease in trade and other payables 12 (1,276,644) (3,766,786)
Net cash used in operating activities (820,075) (4,286,711)
---------------------------------------------- ----- ------------- -------------
Investing activities
Interest received on treasury bills
and deposits 114,214 -
Purchase of treasury bills (1,004,500) -
Purchase of financial assets at FVPL 9 (2,365,489) (7,283,100)
Proceeds from sale of financial assets
at FVPL 9 1,834,614 -
---------------------------------------------- ----- ------------- -------------
Net cash used in investing activities (1,421,161) (7,283,100)
---------------------------------------------- ----- ------------- -------------
Financing activities
---------------------------------------------- ----- ------------- -------------
Net cash from financing activities - -
---------------------------------------------- ----- ------------- -------------
Decrease in cash and cash equivalents (2,241,236) (11,569,811)
---------------------------------------------- ----- ------------- -------------
Cash and cash equivalents at the beginning
of the period 11 10,102,683 25,527,801
---------------------------------------------- ----- ------------- -------------
Cash and cash equivalents at the end
of the period 11 7,861,447 13,957,990
---------------------------------------------- ----- ------------- -------------
Statement of Changes in Equity
Share capital Retained profit Total
USD USD USD
Balance at 1 January 2022 53,283,415 229,844,348 283,127,763
------------------------------------------ -------------- ---------------- -------------
Loss for the year - (81,393,833) (81,393,833)
Total comprehensive loss for the year - (81,393,833) (81,393,833)
------------------------------------------ -------------- ---------------- -------------
Balance at 31 December 2022 53,283,415 148,450,515 201,733,390
------------------------------------------ -------------- ---------------- -------------
Loss for the period - (3,064,173) (3,064,173)
Total comprehensive loss for the period - (3,064,173) (3,064,173)
------------------------------------------ -------------- ---------------- -------------
Balance at 30 June 2023 53,283,415 145,386,342 198,699,757
------------------------------------------ -------------- ---------------- -------------
NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHSED 30 JUNE 2023
1. Company information
TMT Investments Plc ("TMT" or the "Company") is a company incorporated in Jersey with its registered office at 13 Castle Street, St Helier, JE1 1ES, Channel Islands.
The Company was incorporated and registered on 30 September 2010 in Jersey under the Companies (Jersey) Law 1991 (as amended) with registration number 106628 under the name TMT Investments Limited. The Company obtained consent from the Jersey Financial Services Commission pursuant to the Control of Borrowing (Jersey) Order 1985 on 30 September 2010. On 1 December 2010 the Company re-registered as a public company and changed its name to TMT Investments Plc. The Company's ordinary shares were admitted to trading on the AIM market of the London Stock Exchange on 10 December 2010.
The memorandum and articles of association of the Company do not restrict its activities and therefore it has unlimited legal capacity. The Company's ability to implement its Investing Policy and achieve its desired returns will be limited by its ability to identify and acquire suitable investments. Suitable investment opportunities may not always be readily available.
The Company will seek to make investments in any region of the world.
Financial statements of the Company are prepared by and approved by the Directors in accordance with International Financial Reporting Standards, International Accounting Standards and their interpretations issued or adopted by the International Accounting Standards Board as adopted by the United Kingdom ("IFRSs"). The Company's accounting reference date is 31 December.
2. Summary of significant accounting policies 2.1 Basis of presentation
Interim financial statements for the six months ended 30 June 2023 and 2022 are unaudited and were approved by the Directors on 14 August 2023. They do not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial statements for the year ended 31 December 2022 were prepared in accordance with International Financial Reporting Standards as adopted by the United Kingdom. The report of the auditor on those financial statements was unqualified and did not draw attention to any matters by way of emphasis of matter.
The principal accounting policies applied by the Company in the preparation of these unaudited financial statements are set out below and have been applied consistently.
The financial statements have been prepared on a going concern basis, under the historical cost basis as modified by the fair value of financial assets at ("FVTPL"), as explained in the accounting policies below, and in accordance with IFRS. Historical cost is generally based on the fair value of the consideration given in exchange for assets.
2.2 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of the Company are measured in United States Dollars ('US dollars', 'USD' or 'US$'), which is the Company's functional and presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into US$ using the exchange rates prevailing at the dates of the transactions (i.e. mid-market price investments).
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. (i.e. comparable company analysis and cost-based investments as these are effectively re-fair valued at each year-end).
Exchange differences arising from the translation at the year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.
Conversion rates, USD
-----------------------------------------------------------
Currency Average
rate, for
six months
At 30/06/2023 ended 30/06/2023
----------------- -------------- ------------------
British pounds,
GBP 1.2714 1.2332
Euro, EUR 1.0910 1.0806
--------------------- -------------- ------------------
2.3 New IFRSs and interpretations
The following standards and amendments became effective from 1 January 2023, but did not have any material impact on the Company:
-- amendments to IFRS 17 "Initial application of IFRS 17" and IFRS 9 "Comparative information" -- amendments to IAS 1 and Practice Statement 2 "Disclosure of accounting methods" -- amendments to IAS 8 "Definition of accounting estimates"
-- amendments to IAS 12 "Deferred tax related to assets and liabilities arising from a single transaction"
3 (Loss)/Gain on investments
For six months ended 30/06/2023 For six months
ended 30/06/2022
USD USD
Gross interest income from convertible notes receivable - 19,780
Net interest income from convertible notes receivable - 19,780
Losses on changes in fair value of financial assets at FVPL (2,673,620) (72,176,280)
Other gains on investment (revaluation of receivables) 96,104 7,871
Total loss on investments (2,577,516) (72,148,629)
------------------------------------------------------------- -------------------------------- ------------------
4 Segmental analysis
Geographic information
The Company has investments in the following eight geographical areas - USA, Estonia, the United Kingdom, British Virgin Islands ('BVI'), Cyprus, Portugal, Canada, and the Cayman Islands.
Non-current financial assets
As at Cayman United
30/06/2023 USA Islands BVI Estonia Cyprus Kingdom Portugal Canada Total
USD USD USD USD USD USD USD USD USD
------------- ----------- ---------- ---------- ----------- ---------- ----------- ---------- -------- ------------
Equity
investments 69,218,838 - 1,695,398 73,279,929 330,000 32,151,975 - - 176,676,140
Convertible
notes
& SAFEs 10,590,030 1,030,000 - 415,945 2,225,000 601,950 1,063,725 515,000 16,441,650
------------- ----------- ---------- ---------- ----------- ---------- ----------- ---------- -------- ------------
Total 79,808,868 1,030,000 1,695,398 73,695,874 2,555,000 32,753,925 1,063,725 515,000 193,117,790
------------- ----------- ---------- ---------- ----------- ---------- ----------- ---------- -------- ------------
Cayman United
USA Islands BVI Estonia Cyprus Kingdom Portugal Total
--------------
As at USD
31/12/2022 USD USD USD USD USD USD USD
-------------- ----------- ---------- ---------- ----------- ---------- ----------- --------- ------------
Equity
investments 66,393,603 - 3,255,052 71,759,682 330,000 30,481,358 - 172,219,695
Convertible
notes
& SAFEs 14,800,030 1,030,000 - 1,628,090 4,100,000 601,950 880,770 23,040,840
Total 81,193,633 1,030,000 3,255,052 73,387,772 4,430,000 31,083,308 880,770 195,260,535
-------------- ----------- ---------- ---------- ----------- ---------- ----------- --------- ------------
5 Administrative expenses
Administrative expenses include the following amounts:
For six months ended 30/06/2023 For six months ended
30/06/2022
USD USD
--------------------------- -------------------------------- ---------------------
Staff expenses (note 6) 412,081 414,602
Professional fees 147,671 188,923
Legal fees 13,576 60,092
Bank and LSE charges 6,502 6,746
Audit and accounting fees 13,459 25,522
Other expenses 47,788 76,432
641,077 772,317
--------------------------- -------------------------------- ---------------------
6 Staff expenses
For six months ended 30/06/2023 For six months ended 30/06/2022
USD USD
-------------------- -------------------------------- --------------------------------
Directors' fees 105,481 108,002
Wages and salaries 306,600 306,600
412,081 414,602
-------------------- -------------------------------- --------------------------------
Wages and salaries shown above include fees and salaries relating to the six months ended 30 June.
The Directors' fees for the six months ended 30 June 2023 and 2022 were as follows:
For six months ended 30/06/2023 For six months ended
30/06/2022
USD USD
---------------------- -------------------------------- ---------------------
Alexander Selegenev 55,000 55,000
Yuri Mostovoy 27,500 27,500
James Joseph Mullins 13,650 14,171
Andrea Nastaj 9,331 1,984
Petr Lanin - 9,347
---------------------- -------------------------------- ---------------------
105,481 108,002
---------------------- -------------------------------- ---------------------
The Directors' fees shown above are all classified as 'short term employment benefits' under International Accounting Standard 24. The Directors do not receive any pension contributions or other benefits. The average number of staff employed (excluding Directors) by the Company during the six months ended 30 June 2023 was 7 (six months ended 30 June 2022: 7).
Key management personnel of the Company are defined as those persons having authority and responsibility for the planning, directing and controlling the activities of the Company, directly or indirectly. Key management of the Company are therefore considered to be the Directors of the Company. There were no transactions with the key management, other than their Directors fees, bonuses and reimbursement of business expenses.
7 Income tax expense
The Company is incorporated in Jersey. No tax reconciliation note has been presented as the income tax rate for Jersey companies is 0%.
8 Loss per share
The basic loss per share is based upon the net loss for the six months ended 30 June 2023 attributable to the ordinary shareholders of US$ 3,064,173 (for the six months ended 30 June 2022: net loss of US 73,001,213 ) and the weighted average number of ordinary shares outstanding was calculated as follows:
Loss per share For the six months ended 30/06/2023 For six months ended 30/06/2022 ---------------------------------------------- ------------------------------------ -------------------------------- Basic loss per share (cents per share) (9.74) (232.11) Loss attributable to equity holders of the entity (3,064,173) (73,001,213) ---------------------------------------------- ------------------------------------ --------------------------------
The weighted average number of ordinary shares outstanding was calculated as follows:
For the six months ended 30/06/2023 For the six months ended 30/06/2022
------------------------------------------ ------------------------------------ ------------------------------------
Weighted average number of shares in
issue
Ordinary shares 31,451,538 31,451,538
31,451,538 31,451,538
------------------------------------------ ------------------------------------ ------------------------------------
During the six months ended 30 June 2023 and 30 June 2022 there were no dilutive instruments in issue.
9 Non-current financial assets
Reconciliation of fair value measurements of non-current financial assets:
At 30 June 2023 At 31 December 2022
USD USD
Investments held at fair value through profit and loss
- listed and unlisted shares (i) 176,676,140 172,219,695
- promissory notes (ii) 3,117,924 4,830,070
- SAFEs (iii) 13,323,726 18,210,770
193,117,790 195,260,535
-------------------------------------------------------- ---------------- --------------------
At 30 June 2023 At 31 December 2022
USD USD
Opening valuation 195,260,535 265,454,136
Purchased at cost 2,365,489 9,608,593
Disposal proceeds (1,834,614) (163,266)
Disposal due to full impairment (1,650,000) (1,280,016)
Unrealised losses (1,023,620) (78,358,912)
Closing valuation 193,117,790 195,260,535
--------------------------------- ---------------- --------------------
Movement in unrealised gains
Opening accumulated unrealised gains 117,242,370 195,706,888
Movement in unrealised losses (1,023,620) (78,358,912)
Transfer of previously unrealised losses to realised reserve on disposal of investments (1,286,678) (105,606)
Closing accumulated unrealised gains 114,932,072 117,242,370
----------------------------------------------------------------------------------------- ------------ -------------
Reconciliation of investments, if held under the cost (less impairment) model:
Historic cost basis
Opening book cost 78,018,165 69,747,248
Purchases (including consulting and legal fees) 2,365,489 9,608,593
Disposal on sale of investment (547,936) (57,660)
Disposal due to impairment (1,650,000) (1,280,016)
Closing book cost 78,185,718 78,018,165
-------------------------------------------------------------------------------- ------------ ------------
Valuation methodology
Mid-market price 16,188,519 22,992,932
Comparable company analysis 97,842,620 94,755,170
Cost or price of recent investment 79,086,651 77,512,433
193,117,790 195,260,535
------------------------------------ ------------ ------------
The estimates significant to the financial statements during the year and at the year-end is the consideration of the fair value of financial assets at FVPL as set out in the relevant accounting policies shown above. A number of the financial assets at FVPL held by the Company are at an early stage of their development. The Company cannot yet carry out regular reliable fair value estimates of some of these investments. Future events or transactions involving the companies invested in may result in more accurate valuations of their fair values (either upwards or downwards) which may affect the Company's overall net asset value.
The list of fully impaired investments, in which the Company still maintained ownership as of 30 June 2023, was as follows:
Investment
Company name amount (USD) Year of impairment
-------------------------------- -------------- -------------------
Rollapp 350,000 2018
UsingMiles/Help WW/Source Inc. 250,000 2018
Favim 300,000 2018
AdInch 1,000,000 2018
E2C 124,731 2020
Drupe 225,000 2019
Virool/Turgo 600,000 2017
Sixa 300,000 2019
Usual Beverage Co. 300,000 2022
StudyFree 1,000,000 2022
Rocket Games (Legionfarm) 1,650,000 2023
--------------
Total 6,099,731
--------------
Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognised in profit or loss.
When measuring the fair value of a financial instrument, the Company uses relevant transactions during the year or shortly after the year end, which gives an indication of fair value and considers other valuation methods to provide evidence of value. The "price of recent investment" methodology is used mainly for venture capital investments, and the fair value is derived by reference to the most recent financing round or sizeable partial disposal. Fair value change is only recognised if that round involved a new external investor. From time to time, the Company may assess the fair value in the absence of a relevant independent equity transaction by relying on other market observable data and valuation techniques, such as the analysis of revenue multiples of comparable companies and/or comparable transactions. The nature of such valuation techniques is highly judgmental and dependent on the market sentiment at the time of the analysis.
(i) Equity investments as at 30 June 2023:
Gain/(loss)
from
changes
Additions in fair
Value to equity Conversions value
at investments from of equity Value
Date 1 Jan during loan investments at 30 Equity
Investee of initial 2023, the period, notes, , Disposals, Write-offs, June 2023, stake
company investment USD USD USD USD USD USD USD owned
-------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -------
Wanelo 21.11.2011 602,447 - - - - - 602,447 4.69%
Backblaze 24.07.2012 22,992,931 - - (6,529,413) (275,000) - 16,188,518 10.39%
Remote.it 13.06.2014 131,200 - - - - - 131,200 1.64%
Bolt 15.09.2014 69,756,984 - - 1,528,956 - - 71,285,940 1.30%
PandaDoc 11.07.2014 10,844,468 - - - - - 10,844,468 1.17%
Full Contact 11.01.2018 244,506 - - - - - 244,506 0.19%
ScentBird 13.04.2015 6,590,954 - - - - - 6,590,954 4.18%
Workiz 16.05.2016 3,971,659 - - - - - 3,971,659 1.89%
Hugo 19.01.2019 3,255,052 - - (40) (1,559,614) - 1,695,398 3.55%
MEL Science 25.02.2019 905,656 - - - - - 905,656 3.21%
Qumata
(Healthy
Health) 06.06.2019 1,818,822 - - - - - 1,818,822 2.52%
eAgronom 31.08.2018 454,678 - - (42,639) - - 412,039 1.34%
Rocket
Games
(Legionfarm) 16.09.2019 200,000 - - - - (200,000) - 1.26%
Timbeter 05.12.2019 213,520 - - 4,680 - - 218,200 4.64%
Classtag 03.02.2020 200,000 - 200,000 - - - 400,000 1.66%
3S Money
Club 07.04.2020 14,090,596 - - 790,029 - - 14,880,625 12.21%
Hinterview 21.09.2020 812,730 - - 45,568 - - 858,298 4.97%
Virtual
Mentor
(Allright) 12.11.2020 772,500 - - - - - 772,500 2.75%
NovaKid 13.11.2020 2,949,855 - - - - - 2,949,855 1.51%
MTL Financial
(OutFund) 17.11.2020 2,565,918 - - 143,865 - - 2,709,783 3.63%
Scalarr 15.08.2019 1,378,282 - - - - - 1,378,282 7.66%
Accern 21.08.2019 2,873,884 - - - - - 2,873,884 3.10%
Feel 13.08.2020 3,653,220 - - 204,828 - - 3,858,048 10.00%
Affise 18.09.2019 1,795,680 - - - - - 1,795,680 8.70%
3D Look 03.03.2021 500,000 - - - - - 500,000 3.77%
FemTech 30.03.2021 810,606 55,084 - 48,672 - - 914,362 9.74%
Muncher 23.04.2021 3,707,395 - 2,000,000 - - - 5,707,395 6.10%
CyberWrite 20.05.2021 975,741 100,000 - - - - 1,075,741 3.52%
Outvio 22.06.2021 533,800 - - 11,700 - - 545,500 4.00%
Collectly 13.07.2021 - - 6,449,328 - - - 6,449,328 3.23%
VertoFX 16.07.2021 1,132,999 - - - - - 1,132,999 3.24%
Academy
of Change 02.08.2021 330,000 - - - - - 330,000 7.69%
EstateGuru 06.09.2021 800,700 - - 17,550 - - 818,250 2.73%
Prodly 09.09.2021 1,800,000 - - - - - 1,800,000 4.39%
Sonic Jobs 15.09.2021 620,009 - - 281,327 - - 901,336 2.54%
EdVibe
(Study
Space,
Inc) 02.11.2021 750,000 - - - - - 750,000 7.36%
1Fit (Alippe,
Inc) 24.12.2021 500,000 - - 1,080,320 - - 1,580,320 4.70%
Agendapro 03.09.2021 515,000 - - - - - 515,000 2.00%
Laundry
Heap 28.01.2022 1,203,801 - - 101,244 - - 1,305,045 2.35%
SOAX 21.01.2022 4,000,000 - - - - - 4,000,000 9.41%
Spin.ai 17.12.2018 964,102 - - - - - 964,102 1.64%
Total 172,219,695 155,084 8,649,328 (2,313,353) (1,834,614) (200,000) 176,676,140
------------ ------------ ------------ ------------ ------------ ------------ ------------
(ii) Convertible loan notes as at 30 June 2023:
Investee Date of Value at Additions Conversions Gain/(loss) Disposals, Value at Term, Interest
company initial 1 Jan to from loan from USD 30 Jun years rate, %
investment 2023, convertible notes, USD changes in 2023, USD
USD note fair value
investments of
during the convertible
period, USD notes, USD
Sharethis 26.03.2013 570,030 - - - - 570,030 - 1.09%
Conte.ai/
Postoplan 08.12.2020 1,628,090 - - (1,212,146) - 415,944 1.0 2.00%
Metrospeedy 16.07.2021 1,000,000 - - (500,000) - 500,000 - -
MedVidi 27.09.2021 1,030,000 - - - - 1,030,000 - -
Laundry Heap 21.11.2022 601,950 - - - - 601,950 - -
------------- ------------ ---------- ------------ ------------ ------------ ----------- ---------- ------ ---------
Total 4,830,070 - - (1,712,146) - 3,117,924
--------------------------- ---------- ------------ ------------ ------------ ----------- ---------- ------ ---------
(iii) SAFEs as at 30 June 2023:
Gain/loss
from changes
Additions in fair
to SAFE value of
Date of Value at 1 investments Conversions SAFE Value at
Investee initial Jan 2023, during the to equity, investments, Disposals, Write-offs, 30 June
company investment USD period, USD USD USD USD USD 2023, USD
---------------- ------------ ----------- ------------ ------------ ------------- ----------- ------------ -----------
Cheetah (Go-X) 29.07.2019 350,000 - - - - - 350,000
Adwisely
(Retarget) 24.09.2019 1,600,000 - - - - - 1,600,000
Rocket Games
(Legionfarm) 17.09.2019 1,450,000 - - - - (1,450,000) -
Classtag 03.02.2020 200,000 - (200,000) - - - -
Moeco 08.07.2020 500,000 - - - - - 500,000
Aurabeat 03.05.2021 1,030,000 - - - - - 1,030,000
Synder
(CloudBusiness
Inc) 26.05.2021 2,060,000 - - - - - 2,060,000
Collectly 13.07.2021 2,060,000 - (6,449,328) 4,389,328 - - -
OneNotary
(Adorum) 01.10.2021 500,000 - - - - - 500,000
BaFood 05.11.2021 2,500,000 - - (1,875,000) - - 625,000
Educate online 16.11.2021 1,000,000 - - - - - 1,000,000
My Device Inc 30.11.2021 1,050,000 - - - - - 1,050,000
Mobilo (Lulu
Systems, Inc) 09.12.2021 1,030,000 - - 470,000 - - 1,500,000
Muncher 13.12.2021 2,000,000 - (2,000,000) - - - -
Bairro 12.01.2022 880,770 165,405 - 17,551 - - 1,063,726
1Fit (Alippe,
Inc) 19.04.2023 - 500,000 - - - - 500,000
Phoenix 29.05.2023 - 515,000 - - - - 515,000
GameOn 19.06.2023 - 1,030,000 - - - - 1,030,000
------------
Total 18,210,770 2,210,405 (8,649,328) 3,001,879 - (1,450,000) 13,323,726
------------------------------ ----------- ------------ ------------ ------------- ----------- ------------ -----------
10 Trade and other receivables
At 30 June 2023 At 31 December 2022
USD USD
----------------------------------------- ---------------- --------------------
Prepayments 53,237 42,550
Other receivables 235,960 1,219,506
Interest receivable on promissory notes 113,214 113,214
Interest receivable on deposit 19,064 7,541
421,475 1,382,811
----------------------------------------- ---------------- --------------------
The fair values of trade and other receivables approximate to their carrying amounts as presented above. During the six months ended 30 June 2023 and 2022 no balances were past due or impaired, and no credit losses had been expected.
11 Cash and cash equivalents
The cash and cash equivalents as at 30 June 2023 include cash in banks. Cash and cash equivalents comprise the following:
At 30 June 2023 At 31 December 2022
USD USD
--------------- ---------------- --------------------
Deposits 5,579,608 2,502,188
Bank balances 2,281,839 7,600,495
--------------- ---------------- --------------------
7,861,447 10,102,683
--------------- ---------------- --------------------
The following table represents an analysis of cash and equivalents by rating agency designation based on Moody`s Investors Service and Standards & Poor`s credit rating or their equivalent:
At 30 June 2023 At 31 December 2022
USD USD
--------------- ---------------- --------------------
Bank balances
A3 rating - 7,587,687
Baa1 rating 2,250,027 -
Baa3 rating 2,108 2,447
Not rated 29,704 10,361
--------------- ---------------- --------------------
2,281,839 7,600,495
--------------- ---------------- --------------------
At 30 June 2023 At 31 December 2022
USD USD
----------- ---------------- --------------------
Deposits
A1 rating 5,579,608 2,502,188
----------- ---------------- --------------------
5,579,608 2,502,188
----------- ---------------- --------------------
12 Trade and other payables
At 30 June 2023 At 31 December 2022
USD USD
--------------------------- ---------------- --------------------
Salaries payable 128,333 81,838
Directors' fees payable 24,568 66,100
Bonus payable 3,503,905 4,817,785
Trade payables 68,067 7,702
Other current liabilities 3,316 3,307
Accruals 7,266 35,367
3,735,455 5,012,099
--------------------------- ---------------- --------------------
The fair values of trade and other payables approximate to their carrying amounts as presented above. The bonus payable amount as of 30 June 2023 relates to the bonuses earned in the 2021 financial year.
13 Share capital
On 30 June 2023 the Company had an authorised share capital of unlimited ordinary shares of no par value and had issued ordinary share capital of:
At 30 June 2023 At 31 December 2022
USD USD
----------------------------- ----------------- --------------------
Share capital 53,283,415 53,283,415
Issued capital comprises: Number Number
Fully paid ordinary shares 31,451,538 31,451,538
----------------------------- ----------------- --------------------
Number of shares Share capital, USD
----------------------------- ----------------- --------------------
Balance at 31 December 2022 31,451,538 53,283,415
Balance at 30 June 2023 31,451,538 53,283,415
----------------------------- ----------------- --------------------
There have been no changes to the Company's ordinary share capital between 30 June 2023 and the date of approval of these financial statements.
14 Related party transactions
The Company's Directors receive fees and bonuses from the Company, details of which can be found in Note 6.
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