H1 2020 results point to new opportunities
Tern reported a stable NAV per share of 7.0p at 30 June 2020, compared with 6.9p a year earlier and 7.0p at the end of 2019. Over the six months to 30 June 2020, an exchange gain on the US dollar-based valuation of Device Authority offset expenses incurred during the period and there were no major liquidity events triggering portfolio valuation uplifts. However, in the half-year, the four principal portfolio companies achieved a 62% increase in aggregate turnover versus H1 2019, demonstrating strong progress despite the economic disruption caused by COVID-19. Employee headcount at portfolio companies – another important indicator of growth – increased by 7% in the half-year, reflecting the focus on cost control during the period. Tern held £0.8m in cash at 30 June 2020, boosted by a £1.5m raising in July, providing scope for new investments to be made in the coming months.