Share Name Share Symbol Market Type Share ISIN Share Description
Tmt Investments Plc LSE:TMT London Ordinary Share JE00B3RQZ289 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 3.74 3.50 3.98 0.00 0.00 0.00 298 12:02:20
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 0.0 19.5 67.6 5.5 109

TMT Investments PLC Half-year Report

17/09/2019 7:00am

UK Regulatory (RNS & others)


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RNS Number : 5180M

TMT Investments PLC

17 September 2019

17 September 2019

TMT INVESTMENTS PLC

("TMT" or the "Company")

Half year report for the six months to 30 June 2019

TMT Investments PLC, the venture capital company investing in high-growth, technology companies across a number of core specialist sectors, is pleased to announce its unaudited interim results for the half-year ended 30 June 2019.

The interim report will shortly be available on the Company's website, www.tmtinvestments.com.

Highlights

   --        NAV per share of US$3.66 (uplift of 18.45% from US$3.09 as of 31 December 2018) 

-- US$29.5 million in positive revaluations from Backblaze, Taxify, PandaDoc, Workiz and eAgronom

-- Many portfolio companies continue to experience rapid growth, with three new investments made during the period

Post period end

-- Following profitable cash exit from Wrike, Inc. at the end of 2018, the Company declared and paid a special dividend of US$5.8 million (US$0.20 per ordinary share) during July 2019

-- Completed a further four new investments and remain well funded to continue to expand and support the Company's investment portfolio

Alexander Selegenev, Executive Director of TMT, commented: "We are delighted with our portfolio company performance in the first half of 2019. The Company is increasingly recognised as one of very few AIM-quoted vehicles providing UK investors with exposure to earlier stage, primarily US-based, tech companies. Having exceeded US$100 million in net asset value, TMT continues to actively invest in promising tech companies across our chosen sectors, with the continuing objective of growing shareholder value. We look forward to updating our shareholders on the Company's progress in the near future."

 
TMT Investments PLC                +44 (0)1534 281 800 
 Alexander Selegenev                (Computershare - Company Secretary) 
 Executive Director 
 www.tmtinvestments.com             alexander.selegenev@tmtinvestments.com 
Strand Hanson Limited (Nominated 
 Adviser) 
 Richard Tulloch / James Dance 
 / Eric Allan                      +44 (0)20 7409 3494 
Hybridan LLP (Broker) 
 Claire Louise Noyce               +44 (0)20 3764 2341 
Kinlan Communications              +44 (0)20 7638 3435 
 David Hothersall                   davidh@kinlan.net 
 

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 45 companies to date and net assets of US$107 million as at 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

EXECUTIVE DIRECTOR'S STATEMENT

We are delighted with our portfolio company performance since the beginning of the year, which has continued the trend of positive revaluations and cash realisations. A number of portfolio companies received further validation for their business models by raising fresh equity capital at higher valuations during the period. In tandem, most of our other portfolio companies have continued growing their businesses quietly in the background.

As a result, TMT's net asset value ("NAV") per share as of 30 June 2019 increased 18.45% to US$3.66 (US$3.09 as of 31 December 2018).

Following the disposal of our investment in Wrike, Inc. ("Wrike") at the end of 2018 for US$24.7 million (net), we have been busy directing these proceeds towards investing in additional exciting companies that meet our investment criteria of having outstanding management teams, high growth potential based on globally scalable business models, viable exit opportunities and are typically already generating revenue. As noted below we have invested, in aggregate, US$6.5 million in seven new investments in the year to date, which include our first two investments in UK companies MEL Science Ltd, an EdTech company using Virtual Reality (VR) to focus on early science education, and HealthyHealth-UK Ltd, an InsurTech and HealthTech company.

We were also pleased to pay a special dividend of US$5.8 million (US$0.20 per ordinary share) to shareholders following the Company's profitable cash exit from Wrike. The dividend was paid on 31 July 2019 and is the second special dividend paid to shareholders, the first being US$2.9 million (US$0.10 per ordinary share) in November 2016 following our partial cash exit from DepositPhotos.

The following developments had an impact on and are reflected in the Company's NAV and/or financial statements as of 30 June 2019 in accordance with applicable accounting standards:

Full and partial profitable cash exits, and positive non-cash revaluations:

-- In June 2019, PandaDoc, a document automation SaaS provider (www.pandadoc.com), completed a new equity funding round. The transaction represented a revaluation uplift of US$0.98 million (or 79.5%) in the fair value of TMT's investment in PandaDoc, compared to the previous reported amount as of 31 December 2018.

-- As announced on 28 June 2019, Bolt, a leading international ride-hailing company (www.bolt.eu) formerly known as Taxify, completed a new funding round. The transaction represented a revaluation uplift of US$5.04 million (or 29.5%) in the fair value of TMT's investment in Bolt, compared to the previous reported amount as of 31 December 2018.

-- In July 2019, Workiz, a field service management SaaS provider (www.workiz.com), completed a new equity funding round. The transaction represented a revaluation uplift of US$0.18 million (or 67.6%) in the fair value of TMT's investment in Workiz, compared to the previous reported amount as of 31 December 2018.

-- In August 2019, eAgronom, a farm management SaaS provider (www.eagronom.com), completed a new equity funding round. The transaction represented a revaluation uplift of US$54,024 (or 23.1%) in the fair value of TMT's investment in eAgronom, compared to the previous reported amount as of 31 December 2018.

-- In August 2019, TMT entered into an agreement with a third-party private investor to dispose of approximately 9% of its interest in Backblaze Inc. ("Backblaze"), a leading data backup and cloud storage company (www.backblaze.com), for a cash consideration of US$2.0 million. The partial disposal to a third party private investor, implied a substantial increase in the value of TMT's interest in Backblaze to US$23.2 million, being the value of its remaining interest and the consideration received, representing an increase of approximately US$12.7 million (or approximately 120%) on the value of the Company's investment in Backblaze of US$10.5 million as of 31 December 2018.

Negative revaluations:

-- In July 2019, the Company entered into a definitive agreement to sell its entire holding in Unicell for a total net cash consideration of US$965,729. The transaction represented a reduction of US$14,271 in the fair value of TMT's investment in Unicell, compared to the previous reported amount as of 31 December 2018.

Key developments for the five largest portfolio holdings in the first half of 2019 (source: TMT's portfolio companies):

Bolt (ride-hailing and food delivery platform):

   --        Active in over 90 cities over the world (from "over 70" cities as of 31 December 2018) 
   --        Continuing triple-digit growth in revenue and number of users 
   --        New equity round raised in the first half of 2019 at an increased valuation 

Depositphotos (stock photo and video marketplace):

   --        Continuing double-digit growth in revenue and number of files in the photobank 

-- New graphic design software product Crello continues growing fast in both users and revenue

Backblaze (online data backup and cloud storage provider):

   --        Continuing double-digit revenue growth, exceeding 575,000 paying customers 
   --        "B2" cloud storage revenue grew at 128% year-on-year 

Pipedrive (sales CRM software):

   --        Continuing double-digit growth in revenue 
   --        Over 88,500 paying customers (from "over 85,000" as of 31 December 2018) 

Scentbird (perfume and other beauty product subscription service):

   --        Continuing double-digit growth in revenue and number of customers 
   --        New skincare and wellness ranges launched 

New investments

In the first half of 2019, the Company made the following investments:

-- US$200,000 in Hugo Technologies Ltd. (www.hugoapp.com), a Central American on-demand delivery service;

-- US$2 million in MEL Science Limited (www.melscience.com), a UK EdTech company using Virtual Reality (VR) to focus on early science education. The company's main products are subscription kits and VR software for learning chemistry and other disciplines; and

   --     GBP200,000 (US$253,615) in HealthyHealth-UK Ltd, a UK InsurTech and HealthTech company (www.healthyhealth.uk). 

Operating Expenses

In the first half of 2019, the Company's administrative expenses of US$603,554 were in line with the 2018 levels (US$606,143).

Bonus Plan

Under the Company's Bonus Plan, subject to achieving minimum hurdle rate and high watermark conditions in respect of the Company's NAV, the team receives an annual cash bonus equal to 7.5% of the net increases in the Company's NAV, adjusted for any changes in the Company's equity capital resulting from issuance of new shares, dividends, share buy-backs or similar corporate transactions in each relevant year. The Company's bonus year runs from 1 July to 30 June. For the bonus year ended 30 June 2019, the total amount of bonus accrued was US$2,007,693. The exact allocation of the accrued bonus is expected to be approved and paid to the participants of the Company's Bonus Plan shortly after the publication of this interim report.

Financial position

As of 30 June 2019, the Company had no financial debt and cash reserves of approximately US$22.4 million. Following the special dividend paid on 31 July 2019, a number of new investments made since 30 June 2019 and US$2.0 million received in respect of Backblaze in September 2019, as of 16 September 2019, the Company had cash reserves of approximately US$15.3 million.

NAV per share

The Company's net asset value ("NAV") per share in the first half of 2019 increased 18.45% to US$3.66 (31 December 2018: US$3.09). The NAV per share does not reflect the dividend payment detailed below.

Events after the reporting period

As announced on 9 July 2019, following the Company's profitable cash exit from Wrike, Inc., the Company's Board of Directors declared a special dividend to the holders of the Company's ordinary shares for a total amount of US$5,837,166, or US$0.20 per ordinary share. The dividend was paid on 31 July 2019.

As announced in August 2019, the Company has made the following new investments in July and August 2019:

   --     US$350,000 in Cheetah X, Inc., the developer of the electric scooter sharing platform Go-X (www.goxapp.com).  Go-X is already operating in San Francisco, San Diego, Houston and Yuma, Arizona; 

-- US$1.5 million in Scalarr, Inc., a machine learning-based fraud detection solution focused on the advertising market (www.scalarr.io); and

-- US$1.0 million in Accern Corporation, an AI-based data design company that helps automate research and data analysis processes within organisations (www.accern.com). Accern's clients include IBM, MetLIfe, Credit Suisse and Moody's, as well as other Fortune 500 companies.

In addition, in September 2019, the Company invested US$1,200,000 in Rocket Games Entertainment LLC, the owner of Legionfarm, an online game coaching service that helps gamers master complex games by hiring professional players (www.legionfarm.com).

The proceeds from the Unicell disposal were received by the Company in August 2019.

The proceeds from the partial Backblaze disposal were received by the Company in September 2019.

These events after the reporting period are not reflected in the NAV and/or the interim statements as at 30 June 2019.

Outlook

TMT has now invested in over 50 companies since its admission to trading on AIM in December 2010 and has a diversified portfolio of over 25 investments, focused primarily on big data/cloud, e-commerce, SaaS (software-as-a-service) and marketplaces. We continue to see exciting investment and exit opportunities in our chosen sectors, and expect to complete a number of new investments in the second half of 2019. We look forward to updating our shareholders on the Company's progress in the near future.

FINANCIAL STATEMENTS

Statement of Comprehensive Income (unaudited)

 
                                                               For the             For the 
                                                            six months          six months 
                                                      ended 30/06/2019    ended 30/06/2018 
                                             Notes                 USD                 USD 
                                             2                                  (Restated) 
------------------------------------------  ------  ------------------  ------------------ 
 Gains on investments                        3              18,919,501          11,752,157 
------------------------------------------  ------  ------------------  ------------------ 
                                                            18,919,501          11,752,157 
 Expenses 
 Bonus scheme payment charge                 6             (2,007,693)         (1,512,251) 
 Administrative expenses                     5               (603,554)           (606,143) 
 Other operating expenses                                     (13,078) 
------------------------------------------  ------  ------------------  ------------------ 
 Operating gain                                             16,295,176           9,633,763 
 Net finance income                          7                 122,959               3,063 
------------------------------------------  ------  ------------------  ------------------ 
 Gain before taxation                                       16,418,135           9,636,826 
 Taxation                                    8                       -                   - 
------------------------------------------  ------  ------------------  ------------------ 
 Gain attributable to equity shareholders                   16,418,135           9,636,826 
 Total comprehensive income for the 
  year                                                      16,418,135           9,636,826 
------------------------------------------  ------  ------------------  ------------------ 
 Gain per share 
 Basic and diluted gain per share 
  (cents per share)                          9                   56.25               33.82 
------------------------------------------  ------  ------------------  ------------------ 
 

Statement of Financial Position

 
                                                 At 30 June                         At 31 December 
                                                       2019                                   2018 
                                                        USD                                    USD 
                                                  Unaudited                                Audited 
                                Notes 
 Non-current assets 
 Financial assets at FVPL       10               85,698,157                             64,890,144 
 Total non-current assets                        85,698,157                             64,890,144 
 
 Current assets 
 Trade and other receivables    11                  699,472                             23,804,395 
 Cash and cash equivalents      12               22,389,897                              3,270,088 
 Total current assets                            23,089,369                             27,074,483 
 Total assets                                   108,787,526                             91,964,627 
 
 Current liabilities 
 Trade and other payables       13                2,107,706                              1,702,942 
 Total current liabilities                        2,107,706                              1,702,942 
 
 Total liabilities                                2,107,706                              1,702,942 
 
 
 Net assets                                     106,679,820                             90,261,685 
-----------------------------  ------  --------------------  -----------  ------------------------ 
 
 Equity 
 Share capital                  14               34,790,174                             34,790,174 
 Retained profit                                 71,889,646                             55,471,511 
 Total equity                                   106,679,820                             90,261,685 
-----------------------------  ------  --------------------  -----------  ------------------------ 
 
 

Statement of Cash Flows (unaudited)

 
                                                       For the six    For the six 
                                                      months ended   months ended 
                                                        30/06/2019     30/06/2018 
                                              Notes            USD            USD 
                                                                       (Restated) 
Operating activities 
Operating gain                                          16,295,176      9,633,763 
--------------------------------------------  -----  -------------  ------------- 
Adjustments for non-cash items: 
      Changes in fair value of financial 
       assets at FVPL                         3       (18,922,586)   (11,731,576) 
      Bonus scheme payment charge                        2,007,693      1,512,251 
      Amortised costs of convertible notes 
       receivable                             3                  -            651 
                                                         (619,717)      (584,911) 
--------------------------------------------  -----  -------------  ------------- 
Changes in working capital: 
      Decrease/(increase) in trade and 
       other receivables                      11        23,104,922      (328,364) 
      Decrease in trade and other payables    13       (1,602,928)       (27,673) 
Net cash generated from/(used by) operating 
 activities                                             20,882,277      (940,948) 
--------------------------------------------  -----  -------------  ------------- 
Investing activities 
Interest received                             7             96,757          3,063 
Purchase of financial assets at FVPL          10       (2,453,607)      (300,000) 
Proceeds from sale of financial assets 
 at FVPL                                      10           568,180      2,063,194 
Other financial income                        7             26,202              - 
--------------------------------------------  -----  -------------  ------------- 
Net cash (used in)/generated from investing 
 activities                                            (1,762,468)      1,766,257 
--------------------------------------------  -----  -------------  ------------- 
Financing activities 
Proceeds from issue of shares                                    -      3,336,664 
--------------------------------------------  -----  -------------  ------------- 
Net cash from financing activities                               -      3,336,664 
--------------------------------------------  -----  -------------  ------------- 
Increase/(decrease) in cash and cash 
 equivalents                                            19,119,809      4,161,973 
--------------------------------------------  -----  -------------  ------------- 
Cash and cash equivalents at the beginning 
 of the period                                12         3,270,088        985,692 
--------------------------------------------  -----  -------------  ------------- 
Cash and cash equivalents at the end 
 of the period                                12        22,389,897      5,147,665 
--------------------------------------------  -----  -------------  ------------- 
 

Statement of Changes in Equity (unaudited)

 
                                                           Share capital   Retained profit         Total 
                                                                     USD               USD           USD 
 Balance at 31 December 2017                                  31,453,510        35,979,019    67,432,529 
--------------------------------------------------------  --------------  ----------------  ------------ 
 Gain for the year                                                     -        19,492,492    19,492,492 
 Total comprehensive income for the year                                        19,492,492    19,492,492 
 Transactions with owners in their capacity as owners: 
 Issue of shares                                               3,336,664                 -     3,336,664 
 
 Balance at 31 December 2018                                  34,790,174        55,471,511    90,261,685 
--------------------------------------------------------  --------------  ----------------  ------------ 
 Gain for the period                                                   -        16,418,135    16,418,135 
 Total comprehensive income for the period                             -        16,418,135    16,418,135 
--------------------------------------------------------  --------------  ----------------  ------------ 
 Balance at 30 June 2019                                      34,790,174        71,889,646   106,679,820 
--------------------------------------------------------  --------------  ----------------  ------------ 
 
 

NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHSED 30 JUNE 2019

   1.         Company information 

TMT Investments Plc ("TMT" or the "Company") is a company incorporated in Jersey with its registered office at Queensway House, Hilgrove 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 1 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 Investment 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 European Union ("IFRSs"). The Company's accounting reference date is 31 December.

   2.         Summary of significant accounting policies 
   2.1      Basis of presentation 

The condensed consolidated financial statements for the six months ended 30 June 2019 and 2018 are unaudited and were approved by the Directors on 16 September 2019. 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 2018 were prepared in accordance with International Financial Reporting Standards as adopted by the EU. 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. 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.

 
                                    Conversation rates, USD 
----------------------------------------------------------- 
 Currency                                   Average rate, 
                                           for six months 
                        At 30/06/2019    ended 30/06/2019 
-----------------      --------------  ------------------ 
 British pounds, 
  GBP                          1.2677              1.2937 
 Euro, EUR                     1.1373              1.1264 
---------------------  --------------  ------------------ 
 
   2.3      New IFRSs and interpretations 

The IASB has issued the following standards and interpretations which have been endorsed by the European Union to be applied to financial statements with periods commencing on or after the following dates:

 
                                Effective for period beginning on or after 
------------------------------  ------------------------------------------ 
IFRS 9   Financial Instruments                              1 January 2018 
-------  ---------------------  ------------------------------------------ 
IFRS 16  Leases                                             1 January 2019 
-------  ---------------------  ------------------------------------------ 
 

IFRS 16 sets out requirements for recognising and measuring, presentation and disclosure of leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value.

As the lease held by the Company is less than 12 months, the Company has not processed any transaction adjustments on adopting IFRS 16. The company recognises the lease payments associated with these leases as expenses on a straight-line basis over the lease term.

The comparative information for the period ended 30 June 2018 has been restated to reflect the adoption of IFRS 9 using retrospective approach.

The following table explains the changes in the treatment of movements in fair value for the period ended 30 June 2018 in the Statement of Comprehensive Income.

 
                                                Original results    Restated results 
                                                    for the year        for the year 
                                                ended 30/06/2018    ended 30/06/2018 
                                                             USD                 USD 
 Gain attributable to equity shareholders                817,594          11,752,157 
 Other comprehensive income for 
  the period: 
 Change in fair value of available-for-sale           10,934,563                   - 
  financial assets 
--------------------------------------------  ------------------  ------------------ 
 Total comprehensive income for 
  the period                                          11,752,157          11,752,157 
--------------------------------------------  ------------------  ------------------ 
 

In addition to the above changes the fair value reserve of US$57,782,682 was reclassified to Retained Earnings as at 30 June 2018.

   3          Gain on investments 
 
                                                           For six months ended 30/06/2019   Restated for six months 
                                                                                                    ended 30/06/2018 
                                                                                       USD                       USD 
 Gross interest income from convertible notes receivable                            12,516                    21,232 
 Amortised costs of convertible notes receivable                                         -                     (651) 
 Net interest income from convertible notes receivable                              12,516                    20,581 
 Gains on changes in fair value of financial assets at 
  FVPL                                                                          18,922,586                11,731,576 
 Success fee attributable to consultants                                          (15,601)                         - 
 Total gain on investments                                                      18,919,501                11,752,157 
--------------------------------------------------------  --------------------------------  ------------------------ 
 
   4          Segmental analysis 

Geographic information

The Company has investments in six principal geographical areas - USA, Israel, BVI, Estonia, and the United Kingdom.

Non-current financial assets

As at 31/12/2018

 
                                                                     United 
                              USA      Israel   BVI      Estonia    Kingdom        Total 
                              USD         USD   USD          USD        USD          USD 
--------------------  -----------  ----------  ----  -----------  ---------  ----------- 
 Equity investments    39,980,857   1,870,183     -   17,094,470          -   58,945,510 
 Convertible 
  notes & SAFE's        5,710,434           -     -      234,200          -    5,944,634 
--------------------  -----------  ----------  ----  -----------  ---------  ----------- 
  Total                45,691,291   1,870,183     -   17,328,670          -   64,890,144 
--------------------  -----------  ----------  ----  -----------  ---------  ----------- 
 

As at 30/06/2019

 
                                                                          United 
                              USA      Israel       BVI      Estonia     Kingdom        Total 
                              USD         USD       USD          USD         USD          USD 
--------------------  -----------  ----------  --------  -----------  ----------  ----------- 
 Equity investments    53,260,692   1,852,652   200,000   22,132,548   2,253,607   79,699,499 
 Convertible 
  notes & SAFE's        5,710,434           -         -      288,224           -    5,998,658 
--------------------  -----------  ----------  --------  -----------  ----------  ----------- 
  Total                58,971,126   1,852,652   200,000   22,420,772   2,253,607   85,698,157 
--------------------  -----------  ----------  --------  -----------  ----------  ----------- 
 
   5          Administrative expenses 

Administrative expenses include the following amounts:

 
                              For six months ended 30/06/2019   For six months ended 
                                                                          30/06/2018 
                                                          USD                    USD 
---------------------------  --------------------------------  --------------------- 
 Staff expenses (note 6)                              321,842                312,601 
 Professional fees                                    144,640                139,875 
 Legal fees                                            26,674                 22,069 
 Bank and LSE charges                                   7,445                 15,995 
 Audit and accounting fees                             10,396                 11,218 
 Rent                                                  47,298                 47,298 
 Other expenses                                        44,002                 46,713 
 Currency exchange loss                                 1,257                 10,374 
---------------------------  --------------------------------  --------------------- 
                                                      603,554                606,143 
---------------------------  --------------------------------  --------------------- 
 
   6          Staff expenses and Bonuses 
 
                       For six months ended 30/06/2019   For six months ended 30/06/2018 
                                                   USD                               USD 
--------------------  --------------------------------  -------------------------------- 
 Directors' fees                                93,002                           106,361 
 Wages and salaries                            228,840                           206,240 
                                               321,842                           312,601 
--------------------  --------------------------------  -------------------------------- 
 

Wages and salaries shown above include fees and salaries relating to the six months ended 30 June. These costs are included in administrative expenses.

The average number of staff employed (excluding Directors) by the Company during the six months ended 30 June was 6 (for the year ended 31 December 2018: 5).

The Directors' fees for the six months ended 30 June 2019 and 2018 were as follows:

 
                         For six months ended 30/06/2019   For six months ended 
                                                                     30/06/2018 
                                                     USD                    USD 
----------------------  --------------------------------  --------------------- 
 Alexander Selegenev                              50,052                 62,685 
 Yuri Mostovoy                                    24,998                 25,000 
 James Joseph Mullins                             12,952                 13,676 
 Petr Lanin                                        5,000                  5,000 
----------------------  --------------------------------  --------------------- 
                                                  93,002                106,361 
----------------------  --------------------------------  --------------------- 
 

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.

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.

Under the Company's Bonus Plan, subject to achieving minimum hurdle rate and high watermark conditions in respect of the Company's NAV, the team receives an annual cash bonus equal to 7.5% of the net increases in the Company's NAV, adjusted for any changes in the Company's equity capital resulting from issuance of new shares, dividends, share buy-backs or similar corporate transactions in each relevant year. The Company's bonus year runs from 1 July to 30 June. For the bonus year ended 30 June 2019, the total amount of bonus accrued was US$2,007,693. The exact allocation of the accrued bonus is expected to be approved and paid to the participants of the Company's Bonus Plan shortly after the publication of this interim report.

   7          Net finance income 
 
                           For six months ended 30/06/2019   For six months ended 30/06/2018 
                                                       USD                               USD 
 Interest income                                    96,757                             3,063 
 Other financial income                             26,202 
                                                   122,959                             3,063 
------------------------  --------------------------------  -------------------------------- 
 
   8       Income tax expense 
 
                         For six months ended     For six months ended 30/06/2018 
                                   30/06/2019 
                                          USD                                 USD 
----------------------  ---------------------    -------------------------------- 
 Current taxes 
 Current year                               -                                   - 
----------------------  ---------------------    -------------------------------- 
 Deferred taxes 
 Deferred income taxes                      -                                   - 
----------------------  ---------------------    -------------------------------- 
                                            -                                   - 
----------------------  ---------------------    -------------------------------- 
 

The Company is incorporated in Jersey. No tax reconciliation note has been presented as the income tax rate for Jersey companies is 0%.

   9       Gain per share 

The calculation of basic gain per share is based upon the net gain for the six months ended 30 June 2019 attributable to the ordinary shareholders of US$16,418,135 (for the six months ended 30 June 2018: net gain of US$9,636,826) and the weighted average number of ordinary shares outstanding calculated as follows:

 
 Gain per share                                    For the six months ended 30/06/2019   Restated for the six months 
                                                                                                    ended 30/06/2018 
------------------------------------------------  ------------------------------------  ---------------------------- 
 Basic gain per share (cents per share)                                          56.25                         33.82 
 Gain attributable to equity holders of the 
  entity (USD)                                                              16,418,135                     9,636,826 
------------------------------------------------  ------------------------------------  ---------------------------- 
 

The weighted average number of ordinary shares outstanding before and after adjustment for the effects of all dilutive potential ordinary shares calculated as follows:

 
 
 (in number of shares weighted during      For the six months ended 30/06/2019   For the six months ended 30/06/2018 
 the year outstanding) 
----------------------------------------  ------------------------------------  ------------------------------------ 
 Weighted average number of shares in 
 issue 
 Ordinary shares                                                    29,185,831                            28,493,259 
                                                                    29,185,831                            28,493,259 
----------------------------------------  ------------------------------------  ------------------------------------ 
 
   10     Non-current financial assets 
 
                                      At 30 June 2019   At 31 December 2018 
                                                  USD                   USD 
 Financial assets at FVPL: 
 Investments in equity shares (i) 
 - unlisted shares                         83,039,903            62,285,914 
 Convertible notes receivable (ii) 
 - promissory notes                         1,458,254             1,404,230 
 - SAFEs                                    1,200,000             1,200,000 
-----------------------------------  ----------------  -------------------- 
                                           85,698,157            64,890,144 
-----------------------------------  ----------------  -------------------- 
 

Reconciliation of fair value measurements of non-current financial assets:

 
                                                         Financial assets at FVPL          Total 
-----------------------------------------------   -------------------------------  ------------- 
                                                       Unlisted       Convertible 
                                                         shares    notes & SAFE's 
                                                            USD               USD            USD 
-----------------------------------------------   -------------  ----------------  ------------- 
 Balance as at 31 December 2017                      57,120,436         9,452,503     66,572,939 
------------------------------------------------  -------------  ----------------  ------------- 
 Total gains or losses in 2018: 
 - changes in fair value                             22,974,039          (69,985)     22,904,054 
 Purchases (including consulting & legal fees)           74,053           934,200      1,008,253 
 Disposal of investment (carrying value)           (25,464,451)         (130,651)   (25,595,102) 
 Conversion and other movements                       7,581,837       (7,581,837)              - 
------------------------------------------------  -------------  ----------------  ------------- 
 Balance as at 1 January 2018                        62,285,914         2,604,230     64,890,144 
------------------------------------------------  -------------  ----------------  ------------- 
 Total gains or losses in 2019: 
           - changes in fair value                   18,868,562            54,024     18,922,586 
 Purchases (including consulting & legal fees)        2,453,607                 -      2,453,607 
 Disposal of investment (carrying value)              (568,180)                 -      (568,180) 
 Balance as at 30 June 2019                          83,039,903         2,658,254     85,698,157 
------------------------------------------------  -------------  ----------------  ------------- 
 

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 market observable data as far as possible, including relevant transactions during the year or shortly after the year end, which gives an indication of fair 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 equity financing round. Fair value change is only recognised if that round involved a new external investor.

   (i)            Equity investments as at 30 June 2019: 
 
    Investee         Date         Value       Additions    Conversions   Gain/loss    Disposals,     Value      Equity 
     company       of initial       at        to equity        from         from          USD         at 30      stake 
                   investment      1 Jan     investments       loan       changes                   Jun 2019,    owned 
                                   2019,       during         notes,      in fair                      USD 
                                    USD      the period,       USD        value of 
                                                 USD                     financial 
                                                                          assets, 
                                                                            USD 
---------------  ------------  -----------  ------------  ------------  -----------  -----------  -----------  ------- 
 Unicell          15.09.2011       980,000             -             -     (14,271)            -      965,729    2.36% 
 DepositPhotos    26.07.2011    10,836,105             -             -            -            -   10,836,105   16.41% 
 Wanelo           21.11.2011     1,825,596             -             -            -            -    1,825,596    4.69% 
 Backblaze        24.07.2012    10,533,334             -             -   12,668,178            -   23,201,512   11.78% 
 E2C              15.02.2014       136,781             -             -            -            -      136,781    5.51% 
 Drippler         01.05.2014         3,260             -             -            -      (3,260)            -        - 
 Remot3.it        13.06.2014       791,510             -             -            -            -      791,510    1.68% 
 Le Tote          21.07.2014     1,997,073             -             -            -            -    1,997,073    1.32% 
 Anews            25.08.2014     1,000,000             -             -            -            -    1,000,000    9.41% 
 Klear            01.09.2014       155,000             -             -            -            -      155,000    3.04% 
 Drupe            02.09.2014       595,142             -             -            -            -      595,142    7.46% 
 Bolt             15.09.2014    17,094,470             -             -    5,038,078            -   22,132,548    1.63% 
 Pipedrive        30.07.2012    10,257,098             -             -            -            -   10,257,098    2.41% 
 PandaDoc         11.07.2014     1,233,770             -             -      981,348            -    2,215,118    1.76% 
 The IRApp        16.08.2016       547,972                           -       16,948    (564,920)            -        - 
 Full Contact     11.01.2018       244,506             -             -            -            -      244,506    0.21% 
 ScentBird        13.04.2015     3,340,404             -             -            -            -    3,340,404    4.01% 
 Workiz           16.05.2016       263,878             -             -      178,281            -      442,159    2.13% 
 Vinebox          06.05.2016       450,015             -             -            -            -      450,015    2.41% 
                    19.01. 
 Hugo                 2019               -       200,000             -            -            -      200,000    2.00% 
 MEL Science      25.02.2019             -     1,999,992             -            -            -    1,999,992    4.60% 
 Healthy 
  Health          06.06.2019             -       253,615             -            -            -      253,615    2.55% 
 Total                          62,285,914     2,453,607             -   18,868,562    (568,180)   83,039,903 
-----------------------------  -----------  ------------  ------------  -----------  -----------  -----------  ------- 
 
   (ii)           Convertible loan notes as at 30 June 2019: 
 
   Investee       Date of     Value at     Additions    Amortized   Conversions   Gain/loss   Disposals,   Value at    Term,   Interest 
   company        initial       1 Jan         to         costs,      from loan      from         USD        30 Jun     years   rate, % 
                investment      2019,     convertible      USD      notes, USD     changes                 2019, USD 
                                 USD         note                                  in fair 
                                          investments                             value of 
                                          during the                              financial 
                                          period, USD                              assets, 
                                                                                     USD 
-------------  ------------  ----------  ------------  ----------  ------------  ----------  -----------  ----------  ------  --------- 
 Sharethis       26.03.2013     570,030             -           -             -           -            -     570,030     5.0      1.09% 
 KitApps 
  (Attendify)    10.07.2013     600,000             -           -             -           -            -     600,000     1.0      2.00% 
 eAgronom        31.08.2018     234,200             -           -             -      54,024            -     288,224       -          - 
 Total                        1,404,230             -       -                 -      54,024            -   1,458,254 
---------------------------  ----------  ------------  ----------  ------------  ----------  -----------  ----------  ------  --------- 
 
   (iii)          SAFEs as at 30 June 2019: 
 
    Investee       Date of initial   Value at 1 Jan   Additions to    Gain/loss from   Disposals, USD    Value at 30 
     company         investment          2019,         convertible      changes in                      Jun 2019, USD 
                                          USD             note        fair value of 
                                                       investments         SAFE 
                                                       during the      investments, 
                                                       period, USD         USD 
----------------  ----------------  ---------------  --------------  ---------------  ---------------  --------------- 
 Spinbackup             17.12.2018          300,000               -                -                -          300,000 
 Sixa                   28.07.2016          900,000               -                -                -          900,000 
 Total                                    1,200,000               -                -                -        1,200,000 
----------------------------------  ---------------  --------------  ---------------  ---------------  --------------- 
 
   11     Trade and other receivables 
 
                                            At 30 June 2019   At 31 December 2018 
                                                        USD                   USD 
-----------------------------------------  ----------------  -------------------- 
 Prepayments                                        314,977               311,839 
 Other receivables                                  264,361            23,401,258 
 Interest receivable on promissory notes            102,199                89,683 
 Interest receivable on deposits                     17,935                 1,615 
                                                    699,472            23,804,395 
-----------------------------------------  ----------------  -------------------- 
 
   12     Cash and cash equivalents 

The cash and cash equivalents as at 30 June 2019 include cash on hand and in banks, deposits, net of outstanding bank overdrafts. The effective interest rate at 30 June 2019 was 2.60%.

Cash and cash equivalents comprise the following:

 
                  At 30 June 2019   At 31 December 2018 
                              USD                   USD 
---------------  ----------------  -------------------- 
 Deposits               8,565,964             1,500,000 
 Bank balances         13,823,933             1,770,088 
---------------  ----------------  -------------------- 
                       22,389,897             3,270,088 
---------------  ----------------  -------------------- 
 

The following table represents an analysis of cash and equivalents by rating agency designation based on Fitch rating or their equivalent:

 
                  At 30 June 2019   At 31 December 2018 
                              USD                   USD 
---------------  ----------------  -------------------- 
 Bank balances 
 BBB+ rating           13,823,933             1,770,088 
---------------  ----------------  -------------------- 
                       13,823,933             1,770,088 
---------------  ----------------  -------------------- 
 Deposits 
 BBB+ rating            8,565,964             1,500,000 
---------------  ----------------  -------------------- 
                        8,565,964             1,500,000 
---------------  ----------------  -------------------- 
                       22,389,897             3,270,088 
 --------------------------------  -------------------- 
 
 
   13     Trade and other payables 
 
                              At 30 June 2019   At 31 December 2018 
                                          USD                   USD 
---------------------------  ----------------  -------------------- 
 Salaries payable                      10,933               162,500 
 Directors' fees payable               28,005                 9,183 
 Bonus payable                         19,016               720,632 
 Trade payables                        30,088               789,265 
 Other current liabilities                 59                   100 
 Accrued expenses                      11,912                21,262 
 Accrued bonus pool                 2,007,693                     - 
                                    2,107,706             1,702,942 
---------------------------  ----------------  -------------------- 
 
   14     Share capital 

On 30 June 2019 the Company had an authorised share capital of unlimited shares of no par value and had issued share capital of:

 
                                 At 30 June 2019   At 31 December 2018 
                                             USD                   USD 
-----------------------------  -----------------  -------------------- 
 Share capital                        34,790,174            34,790,174 
 
 Issued capital comprises:                Number                Number 
 Fully paid ordinary shares           29,185,831            29,185,831 
-----------------------------  -----------------  -------------------- 
 
 
                                Number of shares          Share capital, 
                                                                     USD 
-----------------------------  -----------------  ---------------------- 
 Balance at 31 December 2018          29,185,831              27,744,962 
 Issue of shares                               -               1,440,869 
-----------------------------  -----------------  ---------------------- 
 Balance at 30 June 2019              29,185,831              29,185,831 
-----------------------------  -----------------  ---------------------- 
 
   15     Related party transactions 

Since May 2012, TMT's Moscow-based staff have been located in an office that belongs to a company ("Orgtekhnika") controlled by Mr. Alexander Morgulchik and Mr. German Kaplun, the Company's senior managers. German Kaplun also owns 18.33% of the issued share capital of TMT. Thus, Orgtekhnika is considered a related party. Together with other related expenses (support personnel, company car, security services, etc.), the total office rent costs to TMT from 1 April 2017 has been US$7,883 per month.

The Company's Directors receive fees and bonuses from the Company, details of which can be found in Note 6.

   16     Subsequent events 

As announced on 9 July 2019, following the Company's significantly profitable cash exit from Wrike, Inc., the Company's Board of Directors declared a special dividend to the holders of the Company's ordinary shares for a total amount of US$5,837,166, or US$0.20 per ordinary share. The dividend was paid on 31 July 2019.

As announced on 22 August 2019, the Company has made the following new investments in July and August 2019:

   --     US$350,000 in Cheetah X, Inc., the developer of the electric scooter sharing platform Go-X (www.goxapp.com).  Go-X is already operating in San Francisco, San Diego, Houston and Yuma, Arizona; 

-- US$1.5 million in Scalarr, Inc., a machine learning-based fraud detection solution focused on the advertising market (www.scalarr.io); and

-- US$1.0 million in Accern Corporation, an AI-based data design company that helps automate research and data analysis processes within organisations (www.accern.com). Accern's clients include IBM, MetLIfe, Credit Suisse and Moody's, as well as other Fortune 500 companies.

In addition, in September 2019 the Company invested US$1,200,000 in Rocket Games Entertainment LLC, the owner of Legionfarm, an online game coaching service that helps gamers master complex games by hiring professional players (www.legionfarm.com).

The proceeds from the Unicell disposal were received by the Company in August 2019.

The proceeds from the partial Backblaze disposal were received by the Company in September 2019.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IR UNSNRKBAKAAR

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September 17, 2019 02:00 ET (06:00 GMT)

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