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TEK Tekcapital Plc

9.00
-0.50 (-5.26%)
24 Jun 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Tekcapital Plc LSE:TEK London Ordinary Share GB00BKXGY798 ORD �0.004
  Price Change % Change Share Price Shares Traded Last Trade
  -0.50 -5.26% 9.00 698,710 16:01:33
Bid Price Offer Price High Price Low Price Open Price
8.50 9.50 9.50 8.75 9.50
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Computer Programming Service USD 615k USD -12.75M USD -0.0643 -1.40 17.84M
Last Trade Time Trade Type Trade Size Trade Price Currency
16:13:19 O 1,775 8.80 GBX

Tekcapital (TEK) Latest News

Tekcapital (TEK) Discussions and Chat

Tekcapital (TEK) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2024-06-24 15:13:218.801,775156.20O
2024-06-24 15:01:479.0025,0002,250.00O
2024-06-24 14:58:288.9825,0002,243.75O
2024-06-24 14:29:488.781,956171.64O
2024-06-24 14:01:318.9420,0001,788.00O

Tekcapital (TEK) Top Chat Posts

Top Posts
Posted at 24/6/2024 09:20 by Tekcapital Daily Update
Tekcapital Plc is listed in the Computer Programming Service sector of the London Stock Exchange with ticker TEK. The last closing price for Tekcapital was 9.50p.
Tekcapital currently has 198,188,162 shares in issue. The market capitalisation of Tekcapital is £17,836,935.
Tekcapital has a price to earnings ratio (PE ratio) of -1.40.
This morning TEK shares opened at 9.50p
Posted at 15/5/2024 16:16 by davebowler
The Oakbloke says
Can Lucyd Armor save us?
Dear reader,

In FY23 Lucy results I wrote Nasdaq-listed LUCY needs 80% Quarter to Quarter growth in revenue and improvement in margin.

Net revenue for the quarter ended March 31, 2024 was $383,471, which was an increase of 165% from the quarter ended March 31, 2023. That sounds impressive. Various share news services are proudly broadcasting this. LUCY shares were up 22% at one point today. This year-over-year increase was primarily attributable to significant volume growth in the e-commerce channel, driven by the Company's strategic advertising and marketing initiatives during the latter portion of 2023 and through the current quarter, combined with recent new product launches (including the Lyte XL and Nautica® Powered by Lucyd collections).

Wonderful. But not so fast. Quarter to Quarter the picture is far less rosy.

$559,759 revenue falls to $383,471 vs my own estimates where an 80% growth to $1m in Q1 would put this on a path to profitability. We are miles away from any such outcome.

On a more positive note, Quarter to Quarter gross profitability increases $187k (to a positive but paltry $6,951 gross profit). The commentary points to discounting due to competitive pressures but analysis shows the prescription lenses generated that $7k profit while non-prescription actually lost money. No one else sells prescription smart glasses so what discount? It’s not at all clear.

Sales falling from 34% to just 4% of sales via reseller partners suggests the strategy of “small independent retailers” has comprehensively failed. LUCY speak to switching to larger retailers but say this will take time. A very disappointing development.

The Blueshift Premium lenses whilst providing a form of differentiation also appears to be an explanation of the high cost of sales of non prescription glasses. Why add this feature and sell it at a loss? It is frustrating to see this has detracted from progress towards break even. The lack of commercial control is disappointing.

LUCY management speak to realising some economies of scale in the cost of frames and in the area of shipping and logistics. However they (confusingly) blame the growth in prescription costs impacting gross margin too. If you compare revenue and cost of sales for prescription and non-prescription then this is completely contradictory.

LUCY say they are working with the current prescription lens provider to explore opportunities to reduce costs and we are also actively in discussions with alternative prescription lens suppliers who may help further lower lens fulfillment costs. It’s not clear why the costs have grown so much and why was there no price agreement in place? It sounds like a lack of commercial control - allowing the supplier to increase prices - have LUCY been taken for a ride?

The long-term goal of shifting the sales mix over time more towards the wholesale channel, which carries higher margins, LUCY claim as such sales to our third-party retail store partners do not include the cost of prescription lenses. Wholesale should never carry higher margins than selling retail (direct) to the end user. Another contradiction to contend with.

Future Outlook
Three new product lines - Eddie Bauer® Reebok® and the Lucyd Armor smart safety glasses line (Previously Lion) are due to launch in 2024. Meanwhile plans to launch new features for the Lucyd app in 2024, including a paid "Pro" version of the app, could provide another potential incremental revenue stream for the Company too.

Harrison Gross, CEO of Innovative Eyewear Inc., commented,

"After several years of rigorous R&D and brand development, I believe we are very well-positioned to capitalize on blooming consumer interest in smart eyewear. Recently, we have seen powerful incumbents such as Apple and Meta bringing renewed interest to smart glasses. We continue to expect that smart eyewear will be a key component of the generative AI revolution, due to their transparent interfaces and ergonomic form factors perfectly suited for voice-based interaction."


Tekcapital owns 5.2 million shares in Innovative Eyewear which is ~40% of the total issued share capital of LUCY. LUCY’s share price has dropped $0.29 to $0.20 since my Q4 update. Ouch.

At today’s market price of $0.20 that ownership is worth $1m/£0.8m or 0.4p/TEK share (TEK is £17.2m market cap total at today’s 9p ask). Because TEK has a controlling interest there’s a 15% mark up on the NAV so 0.46p/TEK share.

Conclusion
1Q24 is a disappointment. Those Investor publications who’ve regurgitated the 165% Revenue Increase year on year “news” have missed the point. You might as well boast that Smart Eyewear sales have increased since the Victorian times also.

The hope now is that Q2 addresses not only the cost of sale challenge but also the sales growth challenge simultaneously. As well as progress the launch of three new brands including one for a completely new type of glasses to a completely new type of customer (B2B Industrial) whereas 100% of marketing has been to B2C fashion and tech savvy consumers. The Armor glasses aren’t a bad idea but are also a huge distraction in a new direction.

$1.02m has been raised post period; but this provides about 2 months additional runway based on current cash burn.

I have finally run out of patience with this holding and am writing it off to zero in my analysis, pending a tremendous turn around in Q2 which I am now sceptical can and will arrive.

For UK investors who hold LUCY as part of TEK, writing off 0.4p per TEK share is actually less than increases at other TEK holdings, for example SALT has increased by 1.1p per TEK share (i.e. 95p/97p bid ask today) in the past 2 weeks.

A NAV of 23.6p excluding LUCY versus a 9p ask is a 62% discount where 154% of the TEK price is covered by the value of LISTED holdings (or 188% if we still include LUCY).


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The Oak Bloke

Disclaimers:

This is not advice

Micro cap and Nano cap holdings might have a higher risk and higher volatility than companies that are traditionally defined as "blue chip".

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Posted at 15/5/2024 09:25 by backmarker
Fair enough that TEK can't capitalise on its SALT holding for some time - 9 months is it ? - but it sometimes seems that movement in the SALT share price is only grudgingly reflected in the TEK share price It will be interesting to see if the gap narrows over time.
Posted at 25/4/2024 16:21 by davebowler
MicroSalt IPO highlights the value in Tekcapital
The stake in one of its portfolio companies is now worth more than its own market value


February 1, 2024

by Simon Thompson


MicroSalt has market capitalisation of £18.5mn at listing price
Tekcapital retains 77 per cent stake and convertible loan notes
Tekcapital spot NAV more than double its current share price
MicroSalt (SALT:51.5p), a company that produces low-sodium salt, has raised £3.1mn, at 43p, in an Aim initial public offering (IPO). It’s less than initially planned, but in a moribund market for new listings, it is one of the few IPOs to get off the ground (‘Will MicroSalt whet investors’ appetite?’, 3 October 2023).

MicroSalt’s patented solution dissolves much faster on the tongue, so delivers the same sense of saltiness as traditional salt, but uses half the amount of sodium, a major contributor to hypertension and heart disease. The company has created a consumer brand of potato crisps, Salt Me!, which are now sold across 400 retail stores in the US, and has launched its MicroSalt shakers in 450 stores in the US as well as on Amazon in both the UK and US.

Moreover, the company has delivered its first commercial-volume order for a Fortune 500 retailer, which will use the solution for its own branded nuts to be sold across an initial 800 stores. Multiple multi-national companies are currently testing the product and are in price negotiations ahead of placing orders.

In the first half of 2023, MicroSalt reported a pre-tax loss of £1.7mn on revenue of £0.3mn, so it’s the potential to scale up sales rapidly that whets the appetite of investors. Given the obvious health benefits of the patented product, it’s not going to take that many deals with large fast-moving consumer goods (FMCG) customers to ramp up revenue and turn a business with a relatively fixed cost base profitable. MicroSalt looks to have a winning formula.

The IPO is also positive for Aim investment company Tekcapital (TEK:10.25p), which holds 33.3mn shares (77.3 per cent stake) in MicroSalt worth £17.1mn, and $2.6mn (£2mn) of convertible loan notes repayable in December 2025. Tekcapital’s investment in MicroSalt is worth more than its own market capitalisation of £18.3mn.
Posted at 21/3/2024 11:19 by lord loads of lolly
888icb - it's really NOT worth listening to that UK Investor interview at all.

How can ANYONE take the presenter seriously when he starts by saying: "One of the best performers, I believe, so far this year in the AIM market is Tek Capital."

Utterly clueless. Not to mention 100% misleading. Tek's share price was so shot to pieces on 1 January 2024, that - short of going bust - some form of recovery was pretty much inevitable. Doesn't mask the fact that Tek's share price over the past year has almost HALVED.
Posted at 19/2/2024 12:26 by retirementfund
Given that TEK share price is currently less than 50% of NAV and it appears that companies are clearly performing in a positive manner V NAV.

Having said that its not just about NAV for me Guident and Revive I suspect are worth significantly about current NAV but then if you look forward as to what they are going to be valued at the potential is truly staggering.

We saw negative comments at 6.5p I am sure we will see the same at much higher values than this each to their own in my view
Posted at 16/2/2024 08:14 by cheshire
Latest from the Oak Bloke- love the £1.46 target. :)TEK:Runnning my value model and plugging in the latest share prices for BELL, LUCY and SALT I see TEK's NAV remains at a 46.4% discount to market cap - even after a 130% YTD rise.How on earth you might ask? Well, the recent IPO from SALT has a lot to do with that. But the newsflow hasn't changed (much) from what I covered over the past months. SALT's chair gave a great presentation and SALT's CFO and CEO presented well with updates that several UK supermarkets are in discussions, but the fact and market potential of SALT is no different than pre-prospectus. It heartens me that TEK is making progress even when market sentiment is adverse. It proves that stock market eventually is a weighing machine, and if you have a conviction then do not panic and sell. Recurring 30 tonne orders of Microsalt from a global food business (cough Pepsi), and US supermarket stockists far larger than Sainsburys (CVS has 8,500 vs Sainsbury has 1,500) got weighed eventually.But interesting to note, too, that you can STILL buy SALT by buying TEK (who own a large chunk of SALT) at a discount. A very decent 16.66% discount.Not forgetting that it's a 16.66% discount plus you get 91% of Guident, 7% of BELL, 40% LUCY and 100% of ReVive all for free.Why free? Well 15p covers just 83% of the value of the Microsalt shares since TEK own 76% of SALT.I see no reason other than it has not been IPO'd why Guident is worth any less than SALT. I set out the known newsflow for Guident in this article. There are millions of lives lost each year to excess of salt, but one day soon billions of robots and drones needing guiden(t)ce. Even before science fiction becomes fact, Autonomous Vehicles (AVs) are already emerging rapidly for mass transit.Meanwhile for LUCY the addressable market size is $148bn and forecast to grow to $250bn by 2030. Deals with Nautica, Reebok and Eddie Bauer in 2024 make this an exciting pick despite the past poor performance while it got going. Their latest Q4 quarterly update is imminent and my last view on LUCY and my forecasts you can read in this article.Lucyd "are easily the best" is the conclusion in this video.ReVive meanwhile is a concept product which could further revolutionise transport range anxiety and particularly EVs, but PHEVs and HEVs too. Think about regenerative braking and how that has changed the world. It is now commonplace and in fact in 2024 you'd have to go really downmarket to find a car without regen braking or "start/stop" as it's commonly called. So what about generating power over the bumps in the road? ReVive claims a 5-10 mile range extension to an EV and is the sort of business which could be licenced to OEMs to draw in a revenue stream.Which leaves BELL, now funded, with an established market-leading pair of products for oxygen therapy which have been optimised to lower costs for higher margins, and an order book of 6,500 units and growing where they tick certain redemption codes which makes them attractive to equipment distributors to the point where BELL are the only game in town from some vendors.And that still leaves TEK's research business, and future forays as it perhaps looks to its 6th venture now three of its five businesses are listed.I have maintained a potential upside of £1.56 per share is possible over the next two years. TEK's share price, overall, would need to grow about 5.5 times to get there. That's because I see 5 businesses with USPs serving 5 enormous addressable markets.But another way to look at this is simply this.If BELL can return to its prior highwater price (£1.46 a share), if LUCY the same $7.50 a share, if ReVive can achieve 60% of the estimated $125m target value, if Guident were valued in an IPO and beyond in 2 years at 5X its NAV today, and if SALT tripled from here in the next 2 years to £2.85 a share, then you arrive at £1.55 per TEK share.Is it quite so impossible from that perspective? BELL has advanced far further than when it was at that previous high, and LUCY the same and is regularly being compared to - and in comparison videos beating global brands like Ray-Ban, Amazon and Bose. I guess for LUCY it depends whether you believe in the wisdom of crowds and the consumer, plus driving towards cash generation. ReVive is a unknown quantity but the increasing volumes of vehicles and tangibility of range anxiety isn't. Guident at 5X is no more fanciful than SALT at 5X (hint: SALT is half way there already). 5X could be far too low for a technology that puts humans in the loop in a rapidly arriving AI/Robotics world.How TEK could arrive at £1.56What if it doesn't? I am not saying it's guaranteed - it's an upside forecast. But at today's 15p a share, the risk/reward of TEK remains such that if even 1 out of the 5 succeed in a meaningful way the pay off could be several times today's share price. All five might succeed is my point.This is not adviceOakThanks for reading The Oak Bloke's Substack! Subscribe for free to receive new posts and support my work.
Posted at 12/2/2024 17:48 by lord loads of lolly
CHESHIRE - The current share price suggests I've been right to talk Tek down in recent months. I'm not a distressed holder. Just a holder who suspects things might not get much worse. But equally is not prepared to throw more money at something that remains highly speculative (given non-visibility of holdings value crystallisation).

WANTAGE - Yes, I fully get where ST is coming from. All I'm saying is he's been trotting out a similar argument for the past two years or so. During which time the share price direction has remained firmly south. He may be right this time, but if you'd followed his previous advice you'd need an almighty re-rate just to break even again.

BTW, I don't think current share price weakness has anything to do with "Large long term holders keeping this back". IMHO, it has far more to do with Tek's previous holdings losing significant value post IPO, then being further diluted by subsequent raises. Microsalt has certainly got off to a much more promising start. But to date, the trickle down effect has been limited. I guess in light of previous experience.
Posted at 08/2/2024 18:42 by 888icb
Article in this week IC just released:
SMALL COMPANIES
MicroSalt IPO highlights the value in Tekcapital
The stake in one of its portfolio companies is now worth more than its own market value
Simon Thompson

MicroSalt has market capitalisation of £18.5mn at listing price
Tekcapital retains 77 per cent stake and convertible loan notes
Tekcapital spot NAV more than double its current share price
MicroSalt (SALT:51.5p), a company that produces low-sodium salt, has raised £3.1mn, at 43p, in an Aim initial public offering (IPO). It’s less than initially planned, but in a moribund market for new listings, it is one of the few IPOs to get off the ground (‘Will MicroSalt whet investors’ appetite?’, 3 October 2023).

MicroSalt’s patented solution dissolves much faster on the tongue, so delivers the same sense of saltiness as traditional salt, but uses half the amount of sodium, a major contributor to hypertension and heart disease. The company has created a consumer brand of potato crisps, Salt Me!, which are now sold across 400 retail stores in the US, and has launched its MicroSalt shakers in 450 stores in the US as well as on Amazon in both the UK and US.

Moreover, the company has delivered its first commercial-volume order for a Fortune 500 retailer, which will use the solution for its own branded nuts to be sold across an initial 800 stores. Multiple multi-national companies are currently testing the product and are in price negotiations ahead of placing orders.

In the first half of 2023, MicroSalt reported a pre-tax loss of £1.7mn on revenue of £0.3mn, so it’s the potential to scale up sales rapidly that whets the appetite of investors. Given the obvious health benefits of the patented product, it’s not going to take that many deals with large fast-moving consumer goods (FMCG) customers to ramp up revenue and turn a business with a relatively fixed cost base profitable. MicroSalt looks to have a winning formula.

The IPO is also positive for Aim investment company Tekcapital (TEK:10.25p), which holds 33.3mn shares (77.3 per cent stake) in MicroSalt worth £17.1mn, and $2.6mn (£2mn) of convertible loan notes repayable in December 2025. Tekcapital’s investment in MicroSalt is worth more than its own market capitalisation of £18.3mn.
Deep share price discount to sum-of-the-parts valuation
In addition, Tekcapital has listed investments in Innovative Eyewear (US:LUCY), the US operating subsidiary of Lucyd, the first company to deliver prescription glasses with Bluetooth technology, and Aim-traded respiratory medical device company Belluscura (BELL). The holdings are worth £1.7mn (1p) and £2.1mn (1.2p), respectively, and are in the price for free.

The same is true of the company’s $18.3mn (8.1p) investment in Guident, a developer of remote monitoring and control centre (RMCC) software that improves the safety of autonomous vehicles and delivery robots.

Guident has signed software as a service (SaaS) agreements with European partners to provide its RMCC software for fixed-route electric bus services, having delivered its first remote monitoring and control services order to Jacksonville Transportation Authority in Florida. The company has also been awarded funding from Space Florida for a ground breaking project under the Florida-Israel Innovation Partnership programme.

Tekcapital's portfolio fair value estimate at 1 February 2024
Portfolio company Carrying value 30 June 2023 Estimated carrying value 1 February 2024 Value per share
Guident $18.3mn $18.3mn 8.1p
Innovative Eyewear $4.6mn $2.2mn 1.0p
Microsalt $17.1mn $21.8mn 9.6p
Belluscura $6.3mn $2.7mn 1.2p
Smart Food Tek $0.0mn $0.0mn 0.0p
Guident convertible loan notes $1.0mn $1.0mn 0.4p
MicroSalt convertible loan notes $1.5mn $2.6mn 1.2p
Portfolio fair value $48.6mn 21.6p
Net current assets (adjusted for second half operating costs) $1.0mn 0.4p
Intangible assets $0.3mn 0.1p
Total NAV $49.9mn 22.1p
Source: Tekcapital's 2023 interim accounts and London Stock Exchange RNS. The company reports in US dollars. Belluscura current valuation based on latest share price of 20p a share and holding of 10.6mn shares. Innovative Eyewear valuation based on stock price of $0.43 and holding of 5.19mn shares. MicroSalt valuation based on share price of 51.5p and holdings of 33.3mn shares. Guident valuation as reported in Tekcapital's 2023 interim accounts. Exchange rate used £1:$1.268.

Bearing this in mind, Guident has engaged a leading US investment bank to raise capital for expanding its RMCC business. At the bare minimum, it should provide investors with clarity that there is significant value in Tekcapital’s investment in the company. It’s worth noting, too, that Guident is conducting testing and appraisal of its proprietary regenerative shock absorber technology after completing successful paid-for proof-of-concept trials with a major tyre company. This could be a potentially lucrative recurring revenue stream, too.

So, although Tekcapital is the laggard in my 2022 Bargain Shares Portfolio, and the share price is below the 13p level in my last article, the 54 per cent share price discount to my spot NAV estimate of 22.1p is incredibly harsh. Buy.
Posted at 02/2/2024 11:40 by 888icb
Absolutely crazy situation. TEK down 7% but SALT is Up 4% following a 17% rise yesterday. Extract from Simon Thompson’s article on Microsalt:
“ The IPO is also positive for Aim investment company Tekcapital (TEK:10.25p), which holds 33.3mn shares (77.3 per cent stake) in MicroSalt worth £17.1mn, and $2.6mn (£2mn) of convertible loan notes repayable in December 2025. Tekcapital’s investment in MicroSalt is worth more than its own market capitalisation of £18.3mn.”
TEK’s Market cap after this mornings fall is £17.3 million!
The concluding comment:
“ So, although Tekcapital is the laggard in my 2022 Bargain Shares Portfolio, and the share price is below the 13p level in my last article, the 54 per cent share price discount to my spot NAV estimate of 22.1p is incredibly harsh. Buy.
Posted at 06/12/2023 09:49 by maytrees
Good morning

TEK share price still imho too low but at least some investors today appear optimistic given one or two recent very large buys.

For me, wait and see continues.
Tekcapital share price data is direct from the London Stock Exchange

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