Business
Results for the year ended 31 December 2022
Results for the year ended 31 December 2022.
About this update from Tern Plc
[{"type":"text","content":"\n\n31 May 2023\nTern Plc\n(\"Tern\" or the \"Company\")\nResults for the year ended 31 December 2022\nTern Plc (AIM: TERN), the company focused on value creation from Internet of Things (\"IoT\") technology businesses, announces its audited results for the year ended 31 December 2022.\nHighlights\n· Net assets of the Company at 31 December 2022 of £24.9m (31 December 2021: £32.4m). The net asset value per ordinary share as at 31 December 2022 decreased to 6.4p (31 December 2021: 9.2p)\n· The reduction in net assets of the Company as at 31 December 2022 principally due to movements in investments held at fair value through the profit or loss and a reduction in the cash balance\n· The unaudited aggregated annual recurring revenue (\"ARR\") of our portfolio1 increased by 97% from 2021 to 2022 and the year-on- year growth in aggregated revenue grew by 5%. A key focus for our portfolio is on recurring revenue as it is a primary driver of valuation growth\n· The aggregated employee numbers of our portfolio increased by 66% from 2021 to 2022 (35% from 2020 to 2021), and this increase was balanced by an associated increase in ARR such that ARR per employee increased by 19% from 2021 to 2022\n1. Our 'portfolio companies and holdings' being portfolio companies: Device Authority Limited, InVMA Limited (trading as Konektio), FVRVS Limited (Trading as FundamentalVR) and Talking Medicines Limited, and holdings: Wyld Networks AB, or collectively 'our portfolio': as further described in the section headed 'Portfolio Companies and Holdings below and as detailed in note 3. \nCommenting on the results, Tern's CEO, Al Sisto said:\n\"Whilst it is disappointing to report a reduction in the unrealised fair value of a number of our companies, a large part of the fair value decrease at the year end, is a reflection of the dramatic decrease in valuation metrics and models in the technology sector rather than the underlying prospects of our companies. Despite short-term challenges posed by macroeconomic factors and geopolitical conflicts, we remain confident in the long-term potential of our portfolio and the IoT markets in which we operate.\n \n\"As hands-on managers, we are committed to continuing to work closely with our companies, providing...