TERN PLC Tern Plc, the investment company focused on the cloud and mobile technology sector announces its final results for the year ended 31 December 2015.
All investments are making good progress against their development strategies with increased revenues, customer numbers and performance to plan
Cryptosoft infrastructure is complete and the emphasis is on sales
Cryptosoft is one of only two security specialists to be selected in the CIO Review's Top IOT Solution Providers 2015.
Tern's executive team and Board strengthened
Growth in key performance indicators at 31 December 2015:
o Total assets 2015: £1,825,261 (2014: £1,367,308)
o Net assets 2015: £1,691,881 (2014: £943,631)
"Tern has achieved much in its first two years including establishing a portfolio of prospering private information technology companies. As our portfolio companies become more established, so the pace of their growth is increasing. Cryptosoft's CEO started on 1 July and has since recruited an experienced VP of Global sales who started in November and a new VP of Sales in North America who is due to start in the first quarter of 2016. We are excited by the sales pipeline, which has been growing since September, opportunities in both North America and Europe are being developed, with some close to launch. As Cryptosoft is often supplied to global companies for incorporation into their products, timescales are difficult to estimate accurately. We expect that contracts, when awarded, will be of significant value and we are now in discussions with several global companies. We will keep shareholders up to date with developments as they occur."
Angus Forrest
WH Ireland NOMAD and Broker Tel: 0117 945 3471 John Wakefield Peterhouse Corporate Finance Tel. 020 7469 0936(Joint broker)
Duncan Vasey/ Lucy Williams
Tern has achieved much in its first two years including establishing a portfolio of private Information Technology (IT) companies. As our portfolio becomes more established, so the pace of their growth is increasing. In 2015 we concentrated on ensuring each of our portfolio companies continued to expand, build value and make themselves ready for eventual sale. There have been some noteworthy achievements which are identified in the Investment Report in the Report and Accounts, a copy of which can be accessed on the Company website (www.ternplc.com).
One characteristic feature, among our portfolio companies, has been the growth in revenues and new client wins. I believe this growth, over the past two years, supports the value of Tern's investment philosophy. Tern seeks to invest in businesses with strong, innovative products targeted at changing and growing markets. As appropriate, we work to enhance the management and daily operations of these businesses concentrating on sales and marketing including strategic alliances in the UK and overseas.
A feature of Tern's business model which merits particular attention is our highly targeted acquisition strategy: Tern seeks to acquire businesses with products in commercial service with blue chip customers, which in our view, have not achieved their commercial potential. This enables us to acquire proven products, typically with reference sites and case studies to assist in winning other large customers. We believe whilst this investment strategy limits the risk of acquisitions it offers major advantages in the speed and cost savings associated with building business success. Within the framework of this model, Tern acts as the transformational catalyst, applying its expertise and network to create above average returns through buying, building and later selling its portfolio companies. In addition, Tern works to structure post acquisition companies, in a manner that aligns the interests of all parties and allows the original entrepreneurs the opportunity to share in the upside of success, if they stay with the business.
Tern's financial position has again strengthened during the year as measured by two important metrics of business success: total assets and net assets.
As Tern has evolved there have been changes in the Board of Directors, as well as the addition of other affiliated individuals. I would like to thank the directors including those who have left for their contribution and welcome Sarah Payne, Finance Director, Alan Howarth, Non-executive Director and Bruce Judson, senior advisor, who joined during the year. Sarah, Alan and Bruce all bring expertise and experience which adds to our ability to provide the transformational catalyst that should further enable Tern to successfully execute the objectives of our business model as outlined above.
There have been no significant post year end events.
OutlookThe ecosystem of technologies which surround the cloud computing and mobile markets, together with the associated Internet of Things ('IoT') and Machine-to-Machine ('M2M') sectors, continue to grow strongly as new technology offers real commercial and competitive advantages that can be evaluated and measured. This continues to attract larger companies, which have a strategy of growth by acquisition. As a consequence, there has been some interest in Tern's portfolio companies. We anticipate such interest, from larger companies, which participate in these sectors, should lead to at least one sale in 2016.
During 2015, we focused, in part, on building an experienced management team at Cryptosoft, which we believe will lead the company to realise its business potential. Now, with Cryptosoft's management team in place, Tern is able to look for other investment opportunities, which match Tern's criteria and those sought by our shareholders. In 2016, Tern will be actively investigating such opportunities.
Finally, I wish to thank all shareholders for their support and acknowledge the hard work of the directors and our advisors.
Angus Forrest
Chairman
26 January 2016
INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME | ||
FOR THE YEAR ENDED 31 DECEMBER 2015 | 2015 | 2014 |
£ | £ | |
Turnover | 162,500 | 41,000 |
Movement in fair value of investments | 63,492 | 100,000 |
Gross profit | 225,992 | 141,000 |
Administration costs | (298,896) | (161,654) |
Share based payment charge | (99,523) | - |
Operating loss | (172,427) | (20,654) |
Finance income | 11,786 | 105 |
Finance costs | (24,480) | (33,146) |
Loss before tax | (185,121) | (53,695) |
Tax | - | - |
Loss for the period | (185,121) | (53,695) |
Since there is no other comprehensive income, the loss for the period is the same as the total comprehensive income for the period.
EARNINGS PER SHARE: Basic loss per share | (0.37) pence | (0.33) pence |
Fully diluted loss per share | (0.37) pence | (0.33) pence |
Tern plc issued this content on 26 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 27 January 2016 17:45:33 UTC
Original Document: http://www.ternplc.com/s/RNS_Tern-plc-Accs-25-01-16v4.pdf
