TIDMTMT
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
(END) Dow Jones Newswires
September 17, 2019 02:00 ET (06:00 GMT)
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