LONDON (ShareCast) - (Sharecast News) - Intellectual property investment group Tekcapital on Tuesday reported that interim pretax profits plummeted due to prior portfolio company valuations, despite a rise in revenue from services.
Pretax profits dropped by 93% to $0.1m, with the change primarily due to first-time recognition of fair value of portfolio companies in the first half of 2017.

The group, which builds relationships with university offshoot companies, recorded revenues from services of $0.6m for the six months ended 31 June, up 29% from the same period last year, after the value of its portfolio companies saw a net increase of $0.6m, down from $2.9m year-on-year.

The AIM traded company's cash balance of $1.4m represented a 21% drop from the figure at the start of the financial year but Tekcapital had no debt and its assets increased by 35% against the same period last year to $10.7m.

"We are pleased to report successful half-year performance for the group, which has noted increases in service revenue while achieving important development milestones for the successful commercialization of technologies for three of its portfolio companies," said chairman Clifford Gross.

Milestones achieved over the period include Salarius' newly patented process for producing nano-particle edible salt crystals, the launch of a prescription eyewear and smartglass online store by Lucyd, and a new patent for improvements to augmented reality glasses by the latter subsidiary, Tekcapital said.

"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," said Gross.

Tekcapital's shares were up 2.00% at 12.75p at 0922 BST.

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