Tekcapital swings to profit as revenue jumps
Tekcapital, the university technology spinout specialist, boasted substantially increased revenues on Monday stemming from significant progress in its company portfolio.
For the six month period ended 31 May 2017, the company accumulated a total revenue of $3.8m up from just $247,262 in 2016 which reflected an increase in sales and an unrealised gain on the investment revaluation in Belluscura, a medical device company that is mulling an IPO.
Revenue from services increased 157% to $635.329.
A swing to a profit before tax was reported of $1.6m from a loss of $997,174 thanks to the substantial increase in revenues.
To take note of, the AIM listed company concluded a positive fundraising of approximately $3m before expenses.
Regarding Tekcapital's portfolio progress, Belluscura secured a private placement of approximately $1.7m.
Also, a new software app on both iOS and Google Play was launched and developed to search global university IP.
The company also acquired a new form of gesture recognition technology called Trace-it from the University of Central Florida.
Dr. Clifford Gross, the company chairman commented on the 'successful' half-year performance for the group: “We are pleased to report successful half-year performance for the Group. We have seen a significant increase in total revenue to $3,806,178, largely due to an unrealised profit on the revaluation of investments in portfolio companies, which has resulted in net income after tax of $1.6m.
"We have also seen a 153% increase in net assets to $7,974,906 on a year on year basis. We believe our unique approach of acquiring and commercialising university IP innovations, coupled with providing a range of IP value creation services to universities and corporates, has uniquely positioned us to create market value from university discoveries more efficiently than traditional IP investment companies".