REG - Tekcapital plc - Unaudited Half Yearly Report
24/09/2025 07:00
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RNS Number : 5312A Tekcapital plc 24 September 2025
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
24 September 2025
Tekcapital plc
("Tekcapital", the "Company" or the "Group")
Unaudited Half-yearly Report for the period
ending 30 June 2025
Record Net Assets, Leaner
Operations & IPO Momentum
Tekcapital plc (AIM: TEK), the UK intellectual property investment group
focused on transforming university technologies into valuable products that
can improve people's lives, is pleased to announce its results for the
six-month period ended 30 June 2025.
Dr. Clifford M. Gross, Chairman of Tekcapital, commented:
"Tekcapital has delivered another period of progress, achieving record net
assets of US$77.4m, an increase ~10% over the prior period, while
significantly streamlining our cost base. The reduction in operating expenses
by 50% underscores our commitment to operating efficiency and ensures that a
greater proportion of returns accrue to shareholders in the future. Our
strategy continues to validate itself: commercialising GenAI-centric
technologies to enhance business efficiency and improve quality of life. This
approach has not only delivered profitable growth for Tekcapital but has also
positioned most of our portfolio companies to create lasting societal impact,
from reducing sodium intake in more than 470 million servings with
Microsalt®, accelerating the commercialisation of hundreds of new university
discoveries with GenIP, enhancing pedestrian and workplace safety for
thousands of individuals with Lucyd smart eyewear, and improving autonomous
vehicle safety with Guident.
Guident has made notable commercial strides, from advancing its remote
monitoring platform for autonomous vehicles to securing strategic contracts
and expanding its leadership team. With its S-1 now publicly filed, Guident is
well on its way to a potential NASDAQ listing. We believe this IPO has the
potential to crystallise significant balance sheet value and facilitate future
issuances of special dividends, whilst opening the door for a broader investor
base to participate in its scale-up journey.
We are pleased with the performance of our portfolio companies, most of which
have demonstrated increased revenues during the current period, and we remain
very bullish in our belief that most will continue to grow from strength to
strength. We are executing on our strategy, and this should result in
increases in returns on invested capital as our portfolio companies continue
to mature and achieve meaningful milestones, which we hope to see by the end
of the year and in subsequent periods. We have reached a transformational
inflection point with nearly all of our portfolio companies listed, which is
no small feat considering 90% of start-ups fail 1 and less than 1 in 2,000
receive VC funding 2 let alone complete an Initial Public Offering.
Tekcapital is now more agile than ever before. Our enhanced liquidity creates
numerous opportunities for new portfolio company development, value creation,
and shareholder returns. We look forward with confidence, believing that our
portfolio is well-placed to deliver strong returns and meaningful innovations
that can improve the quality of life for the customers that we serve."
Financial highlights
· Record Net Assets: US$77.4m (31 December 2024: US$70.1m),
reflecting ~10% growth driven by portfolio appreciation and disciplined
capital allocation.
· NAV per Share: US$0.33 (31 December 2024: US$0.33), maintained
despite macroeconomic volatility, underpinned by portfolio resilience.
· Portfolio Valuation: US$68.8m (31 December 2024: US$61.5m)
· Revenue: US$6.1m from services and portfolio returns (H1 2024:
US$21.1m)
· Operating Expenses: US$0.7m (H1 2024: US$1.5m), a 50% reduction,
demonstrating disciplined cost management.
· Profit After Tax: US$5.4m (H1 2024: US$19.5m), marking another
profitable half-year result.
· Fundraising: US$2.3m raised via share placements (H1 2024:
US$2.5m), supporting Guident's IPO readiness and ongoing growth initiatives.
Operational highlights: Portfolio Companies
Please note: all of our portfolio companies were founded by Tekcapital plc.
Microsalt® plc ("Microsalt") www.microsalt.co (http://www.microsalt.co)
(AIM: SALT)
· Announced record sales of bulk revenue sales in Q1 2025 exceeding
its total bulk sales of 2024
· Expanded sales of Microsalt® to Great Britain and Belgium, while
increasing sales in existing markets in the US, Mexico and Canada
· Launched Microsalt® Premium, its second major product line
targeting the quick service and fast service restaurant (QSR/FSR) market with
a focus on French fries. The product has been very well received and is
already in final consideration for rollout with a top international brand in
2026 as detailed by Microsalt in their H1 25 Trading update.
· Announced sales target of US$2,000,000 in FY 2025, which would
represent almost tripling its FY 2024 revenue.
· Announced receipt of volume projections from its major customer,
indicating potential sales exceeding US$5m in 2026 and expanding
to US$11m in 2027 for just one of its major product applications.
· Completed a successful, oversubscribed fundraising of £2.3
million.
Tekcapital owns 62.94% ownership of Microsalt plc, valued at US$39.5m as of 30
June 2025.
Guident Ltd ("Guident") www.guident.co (http://www.guident.co)
· Announced submission of draft registration statement for proposed
Initial Public Offering.
· Announced its entrance into robotics market through its contract
with Boca Raton Innovation Campus for deployment of Guident's Autonomous
Surveillance & Inspection Robots known as WatchBot.
· Announced its Michigan State University collaboration
with ADASTEC Corp. Guident achieved an historic milestone in autonomous
mobility by successfully teleoperating a SAE Level 4 autonomous electric bus
on the campus of MSU to demonstrate its use to address AV edge cases. The
vehicle, automated on the production line with ADASTEC's SAE Level 4 automated
driving software platform coupled with an integrated sensor suite, was
remotely driven in near real-time from Guident's Remote Monitor and Control
Center (RMCC) located 1,200 miles away in Boca Raton, Florida.
Tekcapital owns ~70% of the shares of Guident Corp (on a fully diluted basis),
valued at US$22.9m as of 30 June 2025. These shares are held in Tekcapital's
wholly owned portfolio company, Guident Limited.
Guident operated shuttle in West Palm Beach, Florida
Photo courtesy of Guident Corp.
Innovative Eyewear Inc ("Lucyd") www.lucyd.co (http://www.lucyd.co)
(NASDAQ: LUCY)
· Announced the launch of Reebok Smart Eyewear. The product's
cross-category appeal has generated significant interest from both sporting
goods retailers and consumer electronics chains, reflecting its unique
position at the intersection of fashion, technology, and athletic performance.
This versatility positions Reebok Smart Eyewear for potential success across
diverse retail environments, from premium optical shops to high-end
electronics stores.
· Grew its sales for the six-month period ended 30 June 2025 by
49%, while maintaining flat G&A and sales and marketing expenses.
Additionally, Lucyd Armor, the Company's smart safety eyewear launched in
October 2024, has been selling very well.
· Announced a partnership deal with Eye Recommend, expanding their
smart eyewear across 600+ independent optometry stores in Canada.
· Innovative Eyewear Inc announced a new powerful multi-language
translation feature for the Company's Lucyd app for both iOS and Android.
Tekcapital owns approximately 5.7% of shares in Innovative Eyewear, Inc.
valued at US$0.6m as of 30 June 2025. These shares are held via Tekcapital's
wholly owned portfolio company, Lucyd Limited.
Reebok smart eyewear Powered by Lucyd((R))
Photo courtesy of Innovative Eyewear Inc.
GenIP plc ("GenIP") https://genip.ai/ (https://genip.ai/) (AIM: GNIP)
· GenIP plc announced it secured a significant contract worth
US$0.35m with a new, research organisation client based in Saudi Arabia (the
"Client"). The contract covers the delivery of 400 GenAI analytical
assessments and additional technology commercialisation consulting services.
· GenIP announced the launch of its 'Competitive Intelligence
Report' and secured its first client for the product, a 'Big Four' accountancy
firm.
· Since the launch of its GenAI services in September 2024, they
have secured Invention Evaluator orders worth over US$981k.
As of 30 June 2025, Tekcapital owned 63.08% of GenIP plc, valued at US$5.7m.
Belluscura® plc ("Belluscura") www.belluscura.com (http://www.belluscura.com)
(AIM: BELL)
· Announced continued growth of demand for X-PLOR with a record
sales month of US$0.52m in April 2025.
· Belluscura announced that it is facing working capital
constraints affecting its ability to meet the demand for its products, the
company announced a strategic review update as it seeks to evaluate a range of
options to potentially strengthen its capital position. There is no assurance
that the company will be able to raise the capital required for its continued
successful operation.
Tekcapital owns 2.1% of shares of Belluscura plc, valued at US$0.1m as of 30
June 2025.
Post period end highlights:
· On 18(th) September 2025 Guident CORP announced the public filing
of its S1 Registration Statement as it seeks to consummate an IPO and list on
the NASDAQ.
· On 19 August 2025, Guident CORP announced appointment of Michael
Tessler to its Board of Director. As the former CEO of BroadSoft, Michael
Tessler grew the company from inception to become a global leader in Unified
Communications as a Service, with over 2,000 employees serving customers in
more than 80 countries, culminating in its acquisition by Cisco Systems
for $1.9 billion.
· On 28 August 2025 Guident CORP announced it had received ISO/IEC
27001:2022 Certification, Strengthening Commitment to Cybersecurity and Data
Protection
· On 23(rd) July 2025, Guident CORP announced a contract
with Coastal Waste & Recycling Inc., a leading provider of waste and
recycling services with locations throughout Florida, Georgia and South
Carolina. Under this agreement, Guident will deploy its innovative
WatchBot solution to Coastal Waste & Recycling operations, delivering
cutting-edge technology designed to conduct AI-driven inspections, and
generate real-time safety alerts.
· On 13 August 2025, Guident CORP announced it has signed an
agreement with the City of Boca Raton, Florida, to deploy an autonomous
shuttle-based public transportation service in October 2025.
· On 22(nd) September 2025 Belluscura announced the resignation of
two directors and the reduction of its U.S. staff by 15 employees whilst it
continues to seek additional funding. Belluscura previously announced a
temporary suspension of trading on AIM pending publication of Company's annual
audited accounts.
· On 21(st) July 2025 Innovative Eyewear announced that its
groundbreaking Reebok athletic smartglasses will be available today on the
Reebok mobile app, to be followed by Reebok.com on 1 August 2025. The
Reebok.com website is a go-to hub for athletic apparel and accessories,
receiving approximately 570,000 monthly organic visitors.
· On 15(th) August 2025, Innovative Eyewear reported net revenue
for the quarter ended June 30, 2025 was US$579,230, an increase of 88% from
the quarter ended June 30, 2024. On a year-to-date basis, net revenue for the
six months ending June 30, 2025 was US$1,033,731, an increase of 49% from the
comparable period in 2024.
· 10(th) September 2025 Innovative Eyewear announced a powerful new
translation feature update to the Company's Lucyd app for iOS and Android.
· 25 July 2025 GenIP announced that its cash balance increased to
US$1,077k at 30 June 2025 (31 December 2024: US$972k) driven by record orders
and effective cost controls. In the first half of 2025, they secured US$488k
in new orders, including material contract wins in Asia.
· 15(th) September 2025 GenIP announced it had been appointed
official technology transfer services provider to a Chilean GreenTech
Innovation Platform as part of its strategic partnership with the Universidad
Autónoma de Chile. This GreenTech Innovation Platform is used by over 400
members who have the potential to be GenIP clients.
Guident operated shuttle in Boca Raton, Florida
Operations start October 2025
Photo courtesy of Guident Corp.
Chairman's statement
Tekcapital brings innovations from laboratory to market. We commercialise
university intellectual property, a process known as technology transfer. In
H1 2025, our key portfolio companies continued to make significant progress
and we are bullish on their future performance.
We continue to believe that when you couple commercialisation ready,
compelling university IP with strong senior management, you increase the
probability that vibrant companies will emerge, net assets will grow, returns
on invested capital are likely to increase over time and exits, if they occur,
should happen faster. When we realise material exits, the Group's goal is to
distribute a portion of the proceeds as a special dividend to our
shareholders.
A common theme across our portfolio companies is that we believe they have
proprietary intellectual property, capable management, address large markets
and if successful over the long-term, can improve the quality of life for the
customers they serve. The Company's key investments include:
Microsalt plc (www.microsalt.co (http://www.microsalt.co) )
MicroSalt® manufactures a new patented salt that tastes great, can be used
just about everywhere traditional salt is used, yet delivers full flavour with
approximately half the sodium of regular salt.
Investment Rationale: The food industry is focused on developing and providing
better-for-you products that taste good but enable reduced sodium consumption.
The reason for this is that excess sodium consumption contributes to
cardiovascular disease, a leading cause of premature death globally. According
to the WHO, "Almost all populations are consuming too much sodium. The global
average sodium intake of adults is ~ 4300 mg/day sodium (equivalent to 10.78
g/day salt). This is more than double the World Health Organization
recommendation for adults of less than 2000 mg/day sodium (equivalent to <
5 g/day salt). The primary health effect associated with diets high in sodium
is raised blood pressure, increasing the risk of cardiovascular diseases,
gastric cancer, obesity, osteoporosis, Meniere's disease, and kidney disease.
An estimated 1.89 million deaths each year are associated with consuming too
much sodium. Reducing sodium intake is one of the most cost-effective measures
to improve health and reduce the burden of non-communicable diseases: for
every US$1 invested in scaling up sodium reduction interventions, there will
be a return of at least US$12." 3
Image Courtesy of Microsalt plc
Lucyd Ltd (www.lucyd.co (http://www.lucyd.co) )
LUCYD and its U.S. subsidiary Innovative Eyewear Inc. is seeking to UPGRADE
YOUR EYEWEAR® by producing designer eyewear with smart features at affordable
prices. Their designer frames help you stay connected safely and ergonomically
to your digital life.
Investment Rationale: Pedestrian fatalities are at a 40 year high 4 . This is
due primarily because drivers and pedestrians alike are distracted with their
smartphones. Approximately 2/3 of the population wear corrective lenses 5 .
Bluetooth technology has evolved, enabling it to be incorporated into
traditionally-sized designer eyewear. This enables eyeglass wearers to remain
connected to their digital lives, such as when taking calls and listening to
music, while maintaining situational awareness. Individuals can keep their
phones in their pockets and no earbuds are required, as the eyeglass frames
contain miniature speakers and microphones. Much as the smart watch business
has begun to eclipse the traditional watch business, we believe smart eyewear
will follow suit.
Armor the world's first smart safety glasses, Powered by Lucyd®
Photo courtesy Innovative Eyewear Inc.
Guident Ltd (www.guident.co (http://www.guident.co) )
Guident Ltd seeks to improve the safety and efficiency of autonomous vehicles
and land-based inspection robots with a software platform that enables the
remote monitoring and control of these vehicles to rapidly resolve any
mishaps.
Investment Rationale: Vehicles of all types are rapidly becoming electric and
autonomous. The 2024 Autonomous Vehicle ("AV") market size was US$68 billion
and is anticipated to grow to US$214 billion by 2030. 6 While AVs are
projected to be significantly safer than traditional vehicles, there will
still be disengagements or mishaps, and in most instances, there will be no
vehicle operator present to help resolve these problems. Guident's remote
monitoring and control centre addresses this and can monitor vehicles and if
necessary, provide additional support such as calling a first responder, take
over control of the vehicle to move it out of harm's way and provide real-time
communication with passengers or pedestrians as appropriate. We believe that
this extra safety layer will become standard in most jurisdictions where
autonomous vehicles operate.
Belluscura plc (www.belluscura.com (http://www.belluscura.com) )
Respiratory medical device company that has developed an improved portable
oxygen concentrator (POC) to provide on-the-go supplemental O(2). The
company's products are the first FDA cleared devices that enable the user to
upgrade the filter cartridge to provide a greater flow of oxygen as a
patient's disease progresses, thereby obviating the need to purchase a new
POC.
Belluscura Xplore portable oxygen concentrator
Photo courtesy of Belluscura plc
Investment Rationale: Approximately 300m individuals suffer from COPD. Many of
these patients require supplemental oxygen to perform activities of daily
living. According to the WHO, COPD is the third leading cause of death in the
world, causing 3.23 million premature deaths per year. 7 As there is no cure
for COPD, over time patients require greater amounts of oxygen, and if they
use a portable oxygen concentrator, this means they must replace their devices
with devices with greater capacity as their disease progresses. With
Belluscura's new patented device, users can exchange the filter cartridges to
enable higher capacity oxygen flow without having to change the device they
are using. Like upgrading memory on a laptop. The result is the potential to
reduce the cost and increase the availability of oxygen therapy for patients
who need POC's.
Whilst our investment thesis remains unchanged from prior periods, we note
that the company faces challenges in accessing the capital it needs to meet
product demand and support operations. The recent U.S. tariffs have further
accentuated these difficulties. In our view the company's products are
amongst a class of world-leading POC's and if they can secure sufficient
financing, they should do very well. Irrespective of whether the Company is
able to achieve its finance goals or their future performance, to date we have
monitised our initial investment over the last few years and generated a
cumulative return approximately 20% on our investment. Additionally, we
currently hold approximately 2.3% of their outstanding issued share capital.
GenIP plc (www.GenIP.ai)
GenIP uses generative artificial intelligence aimed at empowering companies to
better evaluate and commercialise technological discoveries through its
services.
Investment Rationale: The GenAI market is currently experiencing exponential
growth. The Generative AI in Analytics Market size is expected to be worth
around US$ 7 billion by 2033 from US$ 625 million from 2023, growing at a CAGR
of 28 % during the forecast period from 2024 to 2033. 8
The surge in demand for predictive analysis and new advanced technologies is a
key factor for generative artificial intelligence in the analytics market.
Analytics is all about data analysis. We believe the incorporation of GenAI
large language models into these services will help companies, research
institutions and venture funds mitigate adverse selection, improve returns on
invested capital and more efficiently deploy capital to produce useful
businesses that can become financially successful and contribute to the
quality of life of the customers they serve.
Financial performance
In the first half of 2025 we reported continued growth in our Net Assets,
reaching a record level of US$77.4m. Our Net income after tax reached US$5.4m,
representing another profitable reporting period for the Group. We are also
pleased to report further reduction in our operating expenses for comparable
period, with a 50% decrease of our administrative expenses to US$0.7m in H1
2025 compared to US$1.5m for H1 2024.
Fundraisings
In H1 2025, we closed share placements totaling US$2.3m. Proceeds were used
primarily to accelerate the commercial progress and IPO readiness of Guident
and working capital.
Whilst the Company is progressing very well, please note that our net asset
values and revenues will fluctuate from period to period, sometimes
significantly, due to individual portfolio company performance, valuations and
changes in market conditions as well as macro-economic financial conditions
including the recent tariffs and other economic or geo-political events. We
continue to be grateful for the patience and support of our shareholders and
we are sincerely appreciative of our dedicated, and incredibly hardworking
team without whom none of the results reported herein would be possible. We've
cut costs, streamlined operations, and doubled down on what we do best:
spotting university innovations with real commercial firepower and turning
them into market leaders. We thank our shareholders for their patience and our
team for their relentless drive. Together, we're building lasting value, with
a sharper, leaner Tekcapital ready to seize the next wave of opportunity.
Dr Clifford M Gross
Chairman and CEO
24 September 2025
For further information, please contact:
Tekcapital plc Via Flagstaff
Clifford M. Gross, Ph.D.
SP Angel Corporate Finance LLP +44 (0) 20 3470 0470
(Nominated Adviser and Broker)
Richard Morrison/Charlie Bouverat (Corporate Finance)
Abigail Wayne / Rob Rees (Corporate Broking)
Flagstaff Strategic and Investor Communications +44 (0) 20 7129 1474
Tim Thompson/Andrea Seymour/Fergus Mellon
About Tekcapital plc
Tekcapital creates value from investing in new, university-developed
discoveries that can enhance people's lives. Tekcapital is quoted on the AIM
market of the London Stock Exchange (AIM: symbol TEK) and is headquartered in
the UK. For more information, please visit www.tekcapital.com
(http://www.tekcapital.com) .
LEI: 213800GOJTOV19FIFZ85
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2025
Notes Six months ended Six months ended Year ended
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
US$ US$ US$
Portfolio return and revenue
Changes in fair value on financial assets at fair value though profit or loss 6 5,695,035 20,500,240 20,016,771
Revenue from services 139,140 254,397 425,986
Interest from financial assets at fair value through profit and loss 336,858 334,412 743,205
Other income - 123 -
6,171,033 21,089,172 21,185,962
Administrative expenses and other expenses
Cost of sales - (143,710) (147,203)
Operating expenses (744,841) (1,482,460) (1,879,773)
Operating profit and profit before tax 5,426,192 19,463,002 19,158,986
Income tax expense (800) (1,674) (2,961)
Profit after tax for the period/year 5,425,392 19,461,328 19,156,025
Other comprehensive income/(loss)
Translation of foreign operations (213,965) 59,051 (589,195)
Total other comprehensive income/(loss) (213,965) 59,051
(589,195)
Total comprehensive income for the period/year 5,211,427 19,520,379 18,566,830
Earnings per share 5
Basic earnings per share 0.03 0.10
0.10
Diluted earnings per share 0.03 0.10
0.10
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2025
Notes As at 30 As at 30 As at 31
June 2025 June 2024 December 2024
Unaudited Unaudited Audited
US$ US$ US$
Assets
Non-current assets
Intangible assets - - -
Financial assets at fair value through profit and loss 6 75,898,812 69,481,993 69,201,744
Property, plant and equipment 6,820 14,271 7,152
76,905,632 69,496,264 69,208,896
Current assets
Trade and other receivables 703,157 552,188 644,365
Cash and cash equivalents 1,310,032 315,960 786,290
2,013,189 868,148 1,430,655
Total assets 77,918,821 70,364,412 70,639,551
Liabilities
Current liabilities
Trade and other payables 474,842 334,302 548,725
Deferred revenue 22,758 211,206 22,844
Total liabilities 497,600 545,508 571,569
Net assets 77,421,221 69,818,904 70,067,982
Equity attributable to owners of the parent
Ordinary shares 1,263,747 1,074,357 1,142,071
Share premium 34,301,138 31,214,052 32,297,956
Retained earnings 41,756,573 36,568,521 36,314,227
Translation reserve 171,932 1,034,143 385,897
Other reserve (72,169) (72,169) (72,169)
Total equity 77,421,221 69,818,904 70,067,982
Net Asset Per Share 0.33 0.35 0.33
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2025
Attributable to equity holders of the parent company
Ordinary Share Translation Other Retained Total
Group Note Shares Premium Reserve Reserve Earnings Equity
US$ US$ US$ US$ US$ US$
Balance as at 31 December 2023 973,329 28,937,011 975,092 (72,169) 17,073,617 47,886,880
Profit for the period - - - - 19,461,328 19,461,328
Other comprehensive income - - 59,051 - - 59,051
Total comprehensive income for the period - - 59,051 - 19,461,328 19,520,379
Transactions with owners, recorded directly in equity
Share issue 101,028 2,424,668 - - - 2,525,696
Cost of share issue - (147,627) - - - (147,627)
Share based payments - - - - 33,576 33,576
Total transactions with owners 101,028 2,277,041 - - 33,576 2,411,645
At 30 June 2024 (unaudited) 1,074,357 31,214,052 1,034,143 (72,169) 36,568,521 69,818,904
Balance as at 31 December 2024 1,142,071 32,297,956 385,897 (72,169) 70,067,982
Profit for the period - - - - 5,425,392 5,425,392
Other comprehensive income - - (213,965) - - (213,965)
Total comprehensive income for the period - - (213,965) - 5,425,392 5,211,427
Transactions with owners, recorded directly in equity
Share issue 121,676 2,144,663 - - - 2,266,339
Cost of share issue - (141,481) - - - (141,481)
Share based payments - - - - 16,954 16,954
Total transactions with owners 121,676 2,003,182 - - 16,954 2,141,812
At 30 June 2025 (unaudited) 1,263,747 34,301,138 171,932 (72,169) 41,756,573 77,421,221
Share capital represents the amount subscribed for share capital at nominal
value.
Share premium represents the amount subscribed for share capital in excess of
nominal value and net of any directly attributable issue costs.
Translation reserve - foreign exchange differences recognised in other
comprehensive income.
Other reserve - historic other reserve outside of share premium and
translation reserve.
Retained earnings - cumulative net gains and losses recognised in the
consolidated statement of comprehensive income, net of dividends paid.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2025
Period ended 30 June 2025 Period ended June 2024 Year ended 31 December 2024
US $ US $ US $
Cash flows from operating activities
Income after income tax 5,425,392 19,461,328 19,156,025
Adjustments for
- Depreciation 1,401 - 7,120
- Amortisation - 34,911 34,911
- Share based payment expense 16,594 33,576 84,585
- Management services income (139,139) (189,949) (326,144)
- Interest from financial assets at FVTP&L (336,859) (334,412) (743,205)
- Unrealised (gains)/losses on foreign exchange (72,119) 29,873 (8,473)
- Fair value (gain)/losses on financial assets at FVTP&L (5,695,035) (20,500,240) (20,016,772)
Movement in working capital:
- Movement in trade and other receivables (58,792) 562,565 470,388
- Deferred revenue movement (87) (6,186) (194,548)
- Movement in trade and other payables (73,883) (182,854) 31,568
Net cash outflows from operating activities (932,168) (1,091,387) (1,504,545)
Cash flows from investing activities
Additions to financial assets at fair value through profit and loss (1,259,573) (2,288,574) (3,200,305)
Proceeds from disposals of financial assets at fair value through profit and 538,538 718,154 1,381,440
loss
Purchases of property, plant and equipment (1,070) - -
Net cash outflows investing activities (677,105) (1,570,420) (1,818,865)
Cash flows from financing activities
Proceeds from issuance of ordinary shares 2,226,339 2,525,696 3,795,538
Costs of raising finance (141,481) (147,627) (265,851)
Net cash inflows from financing activities 2,124,584 2,378,069 3,529,687
Net (decrease)/increase in cash and cash equivalents 515,584 (283,738) 206,277
Cash and cash equivalents at beginning of year 786,290 620,248 620,248
Exchange gains/(losses) on cash and cash equivalents 8,157 (20,550) (20,550) (40,235)
Cash and cash equivalents at end of period/year 1,310,032 315,960 786,290
Notes to the financial information
1. General information
Tekcapital PLC is a company incorporated in England and Wales and domiciled in
the UK. The address of the registered office is 12 New Fetter Lane, London,
United Kingdom, EC4A 1JP. The Company is a public limited company, which has
been quoted on the AIM market of the London Stock Exchange since 2014.
The principal accounting policies applied in the preparation of this
consolidated financial information are set out below. These policies have been
consistently applied to all the periods presented, unless otherwise stated.
2. Basis of preparation
The financial information for the six months ended 30 June 2025 set out in
this interim financial information is unaudited and does not constitute
statutory financial statements. The interim condensed financial information
has been presented in US Dollars ("$") and is rounded to the nearest dollar.
3. Accounting policies
3.1 Statement of compliance
The accounting policies applied by the Group and its subsidiaries in these
unaudited half year results are consistent with those applied in the annual
financial statements for the year ended 31 December 2024.
The financial statements of Tekcapital PLC Group have been prepared in
accordance with International Financial Reporting Standards (IFRS) and IFRS
Interpretations Committee (IFRS IC) as adopted by the United Kingdom and the
Companies Act 2006. The financial statements have been prepared under the
historical cost convention.
The preparation of financial statements in conformity with IFRS requires the
use of certain critical accounting estimates. It requires management to
exercise its judgement in the process of applying the Group's accounting
policies. The areas involving a higher degree of judgment or complexity, or
areas where assumptions and estimates are significant to the consolidated
financial statements are disclosed in note 4 of the FY 2024 accounts.
4. Going concern
The 2025 interim financial information has been prepared on a going concern
basis.
The Group and Company meet its day to day working capital requirements through
its service offerings, monetisation of quoted equity stakes and monies raised
through issues of equity.
The Group's forecasts and projections indicate that the Group and Company have
sufficient cash reserves to operate within the level of its current funds. The
Group has no third party debt facilities.
The Directors have prepared detailed cash flow projections for the period to
30 September 2025 ("going concern assessment period"). The cash flow
projections have been subjected to sensitivity analysis which demonstrates
that the Group and Company will maintain a positive cash balance through the
going concern assessment period.
The Directors have also considered the geo-political environment, including
rising inflation, and whilst the impact on the Group is currently deemed
minimal, the Directors remain vigilant.
On this basis, the Directors have therefore concluded that it is appropriate
to prepare this financial information on a going concern basis.
5. Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of Ordinary Shares
outstanding during the period.
Diluted earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the sum of weighted average number of (1) Ordinary
Shares outstanding during the period and (2) Ordinary Shares to be issued
assuming exercise of outstanding stock options with intrinsic value above $0
at 30 June 2025:
Six months ended 30 June 2025 Six months ended 30 June 2024 Year ended 31 December 2024
US$ US$ US$
Profit attributable to equity holders of the Company 5,425,392 19,461,328 19,156,025
Weighted average number of Ordinary Shares in issue:
Basic 203,948,875 191,604,646 196,539,893
Diluted 204,048,875 196,071,312 196,639,893
Basic profit per share (US$) 0.03 0.10 0.10
Diluted profit per share (US$) 0.03 0.10 0.10
6. Financial Assets at Fair Value through Profit or Loss
The Group's financial assets at fair value through profit and loss as of 30
June 2025 consist of equity investments of US$68,816,957 (31 December 2024:
US$61,454,673) and convertible loan notes of US$7,081,855 (31 December 2024:
US$7,747,072) totaling US$75,898,812 (31 December 2024: US$69,201,744).
Equity investments
30 June 2024 31 December 2024 Additions/(Disposals) Foreign* exchange movements Fair value gain/(loss) 30 June 2025
US$ US$ US$ US$ US$ US$
Guident Limited 18,083,264 18,083,264 2,282,356 - 2,557,544 22,923,164
Lucyd Limited 2,568,597 1,297,275 - - (747,230) 550,045
Belluscura plc 2,162,351 970,362 - 91,789 (976,029) 86,122
Microsalt plc 38,890,073 36,928,090 (583,537) 2,965,271 228,239 39,538,063
Smart Food Tek Limited 38,422 38,422 - - - 38,422
GENIP Limited 191,564 4,137,260 - 332,216 1,211,666 5,681,141
Total Balance 61,934,271 61,454,673 1,698,819 3,389,276 2,274,190 68,816,957
Convertible loan notes
Group 31 Dec 2024 Additions Disposal Foreign* exchange movements Fair Value change 30 June 2025
US $ US $ US $ US $ US $ US $
Innovative Eyewear, Inc - - - - - -
Guident Corp 5,000,000 1,735,571 (2,282,356) 73,738 - 4,526,952
Microsalt plc 2,747,072 - (150,000) (42,169) - 2,554,903
Total Balance 7,747,072 1,735,571 (2,432,356) 31,569 - 7,081,856
*Foreign exchange movements are included within changes in fair value on
financial assets at fair value though profit or loss in the consolidated
statement of comprehensive income.
7. Related party transactions
The Group has generally taken advantage of the exemption in IAS 24 "related
parties" not to disclose transactions with Group companies. During the period
the Group did not employ any services of non-Group companies meeting the
definition of related parties.
8. Interim results
The interim results for the six months ended 30 June 2025 will not be sent to
shareholders but will be available from the Company's website at
http://tekcapital.com/
General Risk Factors and Forward-Looking Statements
This Report is directed only at Relevant Persons and must not be acted on or
relied upon by persons who are not Relevant Persons. Any other person who
receives this Report should not rely or act upon it. By accepting this Report
the recipient is deemed to represent and warrant that: (i) they are a person
who falls within the above descrip-tion of persons entitled to receive the
Report; (ii) they have read, agreed and will comply with the contents of this
notice. The Tekcapital securities mentioned herein have not been and will not
be, registered under the U.S. Securities Act of 1933, as amended (the
"Securities Act"), or under any U.S. State securities laws, and may not be
offered or sold in the United States of America or its territories or
possessions (the "United States") unless they are registered under the
Securities Act or pursuant to an exemption from or in a transaction not
subject to the registration requirements of the Securities Act. This Report is
not being made available to persons in Australia, Canada, Japan, the Republic
of Ireland, the Republic of South Africa or any other jurisdiction in which it
may be unlawful to do so, and it should not be delivered or distributed,
directly or indirectly, into or within any such jurisdictions.
Investors must rely on their own examination of the legal, taxation, financial
and other consequences of an investment in the Com-pany, including the merits
of investing and the risks involved. Prospective investors should not treat
the contents of this Report as advice relating to legal, taxation or
investment matters and are advised to consult their own professional advisers
concerning any acquisition of shares in the Company. Certain of the
information contained in this Report has been obtained from published sources
prepared by other parties. Certain other information has been extracted from
unpublished sources prepared by other parties which have been made available
to the Company. The Company has not carried out an independent investigation
to verify the accuracy and completeness of such third-party information. No
responsibility is accepted by the Company or any of its directors, officers,
em-ployees or agents for the accuracy or completeness of such information.
All statements of opinion and/or belief contained in this Report and all views
expressed represent the directors' own current as-sessment and interpretation
of information available to them as at the date of this Report. In addition,
this Report contains certain "forward-looking statements", including but not
limited to, the statements regarding the Company's overall objectives and
strategic plans, timetables and capital expenditures. Forward-looking
statements express, as at the date of this Report, the Company's plans,
estimates, valuations, forecasts, projections, opinions, expectations or
beliefs as to future events, results or performance. Forward-looking
statements involve a number of risks and uncertainties, many of which are
beyond the Company's control, and there can be no assurance that such
statements will prove to be accurate. No assurance is given that such forward
looking statements or views are correct or that the objectives of the Company
will be achieved. Further, valuations of Company's portfolio investments and
net asset value can and will fluctuate over time due to a wide variety of
factors both company specific and macro-economic. Changes in net asset values
can have a significant impact on revenue and earnings of the Company and its
future prospects. As a result, the reader is cautioned not to place reliance
on these statements or views and no responsibility is accepted by the Company
or any of its directors, officers, employees or agents in respect thereof. The
Company does not undertake to update any forward-looking statement or other
information that is contained in this Report. Neither the Company nor any of
its shareholders, directors, officers, agents, employees or advisers take any
responsibility for, or will accept any liability whether direct or indirect,
express or implied, contractual, tortious, statutory or otherwise, in respect
of, the accuracy or completeness of the information contained in this Report
or for any of the opinions contained herein or for any errors, omissions or
misstatements or for any loss, howsoever arising, from the use of this Report.
Neither the issue of this Report nor any part of its contents is to be taken
as any form of contract, commitment or recommendation on the part of the
Company or the directors of the Company. In no circumstances will the Company
be responsible for any costs, losses or expenses incurred in connection with
any appraisal, analysis or investigation of the Company. This Report should
not be considered a recommendation by the Company or any of its affiliates in
relation to any prospective acquisition or disposition of shares in the
Company. No undertaking, Report, warranty or other assurance, express or
implied, is made or given by or on behalf of the Company or any of its
affiliates, any of its directors, of-ficers or employees or any other person
as to the accuracy, completeness or fairness of the information or opinions
contained in this Report and no responsibility or liability is accepted for
any such errors or omissions.
Intellectual Property Risk Factors
Tekcapital's mission is to create valuable products from university
intellectual property that can improve people's lives. Therefore, our
ability to compete in the market may be negatively affected if our portfolio
companies lose some or all of their intellectual property rights, if patent
rights that they rely on are invalidated, or if they are unable to obtain
other intellectual property rights. Our success will depend on the ability of
our portfolio companies to obtain and protect patents on their technology and
products, to protect their trade secrets, and for them to maintain their
rights to licensed intellectual property or technologies. Their patent
applications or those of our licensors may not result in the issue of patents
in the United States or other countries. Their patents or those of their
licensors may not afford meaningful protection for our technology and
products. Others may challenge their patents or those of their licensors by
proceedings such as interference, oppositions and re-examinations or in
litigation seeking to establish the invalidity of their patents. In the event
that one or more of their patents are challenged, a court may invalidate the
patent(s) or determine that the patent(s) is not enforceable, which could harm
their competitive position and ours. If one or more of our portfolio company
patents are invalidated or found to be unenforceable, or if the scope of the
claims in any of these patents is limited by a court decision, our portfolio
companies could lose certain market exclusivity afforded by patents owned or
in-licensed by us and potential competitors could more easily bring products
to the market that directly compete with our own. The uncertainties and costs
surrounding the prosecution of their patent applications and the cost of
enforcement or defense of their issued patents could have a material adverse
effect on our business and financial condition. To protect or enforce their
patent rights, our portfolio companies may initiate interference proceedings,
oppositions, re-examinations or litigation against others. However, these
activities are expensive, take significant time and divert management's
attention from other business concerns. They may not prevail in these
activities. If they are not successful in these activities, the prevailing
party may obtain superior rights to our claimed inventions and technology,
which could adversely affect their ability of our portfolio companies to
successfully market and commercialise their products and services. Claims by
other companies may infringe the intellectual property rights on which our
portfolio companies rely, and if such rights are deemed to be invalid it could
adversely affect our portfolio companies and ourselves as investors in these
companies. From time to time, companies may assert patent, copyright and other
intellectual proprietary rights against our portfolio company's products or
technologies. These claims can result in the future in lawsuits being brought
against our portfolio companies or their holding company. They and we may not
prevail in any lawsuits alleging patent infringement given the complex
technical issues and inherent uncertainties in intellectual property
litigation. If any of our portfolio company products, technologies or
activities, from which our portfolio companies derive or expect to derive a
substantial portion of their revenues and were found to infringe on another
company's intellectual property rights, they could be subject to an injunction
that would force the removal of such product from the market or they could be
required to redesign such product, which could be costly. They could also be
ordered to pay damages or other compensation, including punitive damages and
attorneys' fees to such other company. A negative outcome in any such
litigation could also severely disrupt the sales of their marketed products to
their customers, which in turn could harm their relationships with their
customers, their market share and their product revenues. Even if they are
ultimately successful in defending any intellectual property litigation, such
litigation is expensive and time consuming to address, will divert our
management's attention from their business and may harm their reputation and
ours.
Several of our portfolio companies may be subject to complex and costly
regulation and if government regulations are interpreted or enforced in a
manner adverse to them, they may be subject to enforcement actions, penalties,
exclusion, and other material limitations on their operations that could have
a negative impact on their financial performance. All of the above-listed
risks can have a material, negative affect on our net asset value, revenue,
performance and the success of our business and the portfolio companies we
have invested in.
- Ends -
1 (#_ftnref1)
https://www.llc.org/startup-failure-rate-statistics/#:~:text=90%20percent%20of%20startups%20fail,statistics%20dating%20back%20to%201994
(https://www.llc.org/startup-failure-rate-statistics/#:~:text=90%20percent%20of%20startups%20fail,statistics%20dating%20back%20to%201994)
.
2 (#_ftnref2)
https://www.forbes.com/sites/dileeprao/2013/07/22/why-99-95-of-entrepreneurs-should-stop-wasting-time-seeking-venture-capital/?utm_source=chatgpt.com
(https://www.forbes.com/sites/dileeprao/2013/07/22/why-99-95-of-entrepreneurs-should-stop-wasting-time-seeking-venture-capital/?utm_source=chatgpt.com)
3 (#_ftnref3)
https://www.who.int/news-room/fact-sheets/detail/salt-reduction
(https://www.who.int/news-room/fact-sheets/detail/salt-reduction)
4 (#_ftnref4)
https://www.npr.org/2023/06/26/1184034017/us-pedestrian-deaths-high-traffic-car
(https://www.npr.org/2023/06/26/1184034017/us-pedestrian-deaths-high-traffic-car)
5 (#_ftnref5)
https://www.overnightglasses.com/eyewear-industry-statistics/#:~:text=These%201%20billion%20people%20include,across%20the%20globe%20wear%20glasses
(https://www.overnightglasses.com/eyewear-industry-statistics/#:~:text=These%201%20billion%20people%20include,across%20the%20globe%20wear%20glasses)
.
6 (#_ftnref6)
https://www.grandviewresearch.com/industry-analysis/autonomous-vehicles-market
(https://www.grandviewresearch.com/industry-analysis/autonomous-vehicles-market)
7 (#_ftnref7)
https://www.who.int/news-room/fact-sheets/detail/chronic-obstructive-pulmonary-disease-(copd)
(https://www.who.int/news-room/fact-sheets/detail/chronic-obstructive-pulmonary-disease-(copd))
(#_ftnref8)
(5)https://marketresearch.biz/report/generative-ai-in-analytics-market/
(https://marketresearch.biz/report/generative-ai-in-analytics-market/)
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