Tern reports narrower full-year loss

(Sharecast News) - Tern reported a reduced full-year loss for 2024 on Thursday, as the AIM-quoted investor focused on early-stage IoT and AI companies continued to manage costs while supporting a maturing portfolio, despite a sharp decline in the value of certain holdings.

The company posted a total comprehensive loss of �3.8m, down from �12.6m in 2023, with administrative expenses cut by 30% year-on-year.

Net assets fell to �10.7m from �12.3m, while the net asset value per share declined to 2p from 3.2p.

Tern's investment portfolio, held at fair value, declined by �2.1m, largely due to the collapse in Wyld Networks' share price, which fell 99% over the period following a dilutive rights issue.

Despite market headwinds, Tern highlighted solid operational progress at its three core portfolio companies.

Device Authority increased annual recurring revenue by 10% and expanded its presence in North America, adding several large clients and strengthening its relationship with Microsoft.

FundamentalVR secured partnerships with Apple, Meta and Logitech, while Talking Medicines achieved revenue growth and expanded its US customer base, positioning its Drug-GPT AI platform as a key player in pharmaceutical marketing intelligence.

The company said it was continuing to pursue value creation through hands-on strategic support and retained exposure to venture capital-style investments.

Its investment in Sure Valley Ventures Enterprise Capital also grew modestly, as Tern looked to diversify beyond direct holdings.

Tern reiterated its need to maintain access to capital to support follow-on funding for its portfolio.

The board said preserving sufficient equity through growth stages remained key to realising value.

It said it ended the year with �0.4m in cash and had repaid �0.3m of its short-term loan, which was extended to September.

At 1109 BST, shares in Tern were down 17.47% at 1.63p.

Reporting by Josh White for Sharecast.com.