Tern dives on annual results

1 mins. to read
Tern dives on annual results

AIM-listed investment business Tern (LON:TERN) has seen its share price sink by 24.85% to 10.33p (as of 11:15 BST) after reporting that its losses more than doubled during 2019. Asset values for the firm’s portfolio did rise and the company raised £3.5 million in new capital.

CEO Al Sisto commented: “As a proactive investor which backs innovation, it has been very rewarding to see the commercial progress made by our portfolio companies reflected in our net asset value, which has increased during the period. This rise included a successful Series A fundraise for FundamentalVR, with an outstanding syndicate of new investors we helped solidify at an implied valuation 27% higher than when we took a position in the company just a year earlier. The positive momentum developed in 2018 continued throughout 2019 with important milestones achieved across our business and the businesses of our principal portfolio companies. We expanded our Tern team and we again continued to increase turnover and employees within our principal portfolio companies.

[…] During this challenging period caused by COVID-19, we have also taken steps to protect our balance sheet, reducing our salaries by 20% and we are working very closely with the entrepreneurs within each of our portfolio companies, helping them to access government funding and to innovate. We remain optimistic about our portfolio businesses. As lockdown eases, there will be an ongoing need for technology to support continuing social distancing measures and we are focused on ensuring our portfolio companies are well positioned for growth when the economy begins to recover“.

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