TIDMTERN
17 February 2017
Tern Plc
(AIM: TERN)
Final results for the year ended 31 December 2016
Tern Plc (AIM:TERN; www.ternplc.com) the investment company specialising
in the Internet of Things is pleased to announces its final results for
the year ended 31 December 2016.
Operational highlights
-- Achieved a 560% uplift in net asset value and a profit for the year for
Tern
-- Our investee company, Device Authority, acquired a venture backed Silicon
Valley technology company with a base of operations in North America and
9 patents to strengthen the business
-- Completed our first sale of a business and its assets, Concerto, to
Ingram Micro
-- Led a GBP2.5 million investment into Device Authority in October 2016,
strengthening our ownership position.
-- Finances further strengthened:
-- Total assets 2016: GBP11,464,696 (2015: GBP1,825,261)
-- Net assets 2016: GBP11,187,739 (2015:GBP1,691,881)
-- Profit/(loss) 2016: GBP5,296,633 (2015:GBP(185,121))
Commenting on the results, Al Sisto, Chairman of Tern, said:
"2016 was a pivotal year for Tern, with the Company reaching several key
business milestones whilst also undergoing significant, positive change.
As a result, we enter the new year with a sharpened investment focus and
a management team that has been realigned to play to its strengths.
Going forwards, we see a great deal of growth potential in our flagship
investment, Device Authority, as well as the wider Internet of Things
ecosystem, and I look forward to reporting progress on both fronts in
the coming months.
I would like to take this opportunity to thank all of our shareholders
for their support and enthusiasm, our portfolio employees for their
commitment, and our Directors for their dedication to the Company and
its mission."
Enquiries:
Tern plc Tel: 020 3807 0222
Al Sisto/ Sarah Payne
WH Ireland Tel: 0117 945 3470
(NOMAD and broker)
Mike Coe / Ed Allsop
Whitman Howard Tel: 020 7659 1234
(Joint broker)
Nick Lovering/ Francis North
Chairman's Statement
I am pleased to present our annual report for the fiscal year ended 31
December 2016. Over the course of the year, the Tern team began
executing on the next phase of its business model, designed to create a
sound financial structure and to establish a platform for sustainable
growth. I am gratified to report that we have accomplished these
objectives. In 2016, Tern achieved a 560% uplift in net asset value and
recognised a profit for the year, whilst controlling administrative
expenses (GBP455,000 for the year after deducting one-time costs of
GBP155,000 which include exceptional legal costs, write off of the
Device Authority facility fee on the convertible loan note and
non-recurring advice relating to fund raising activities). We focused on
working closely with our portfolio companies to bring them in-line with
best operating practices, creating strategic force multiplying
relationships and controlling expenses to ensure growth and continuous
value creation.
Overview
Tern's fundamental goal is to find interesting technology opportunities
that lead to significant returns and create value for shareholders. In
2016, the Board of Directors and management focused on two primary
objectives: firstly, we took a hard look at our capabilities, with the
result that we sharpened the focus of our investment strategy. Then, to
successfully position the company to execute this investment strategy,
we aligned our
management structure, our investment portfolio, and identified
additional 2017 initiatives that would help us bring these plans to
fruition. Secondly, in 2016 the Board focused on ensuring that Device
Authority Limited (formerly Cryptosoft Limited) was positioned for
success in the rapidly evolving Internet of Things ("IoT") market.
Beginning with the acquisition of Fremont-based Device Authority Inc. by
Cryptosoft Limited, we worked with management to define and execute a
series of strategic initiatives which included the development of a
series of valuable, mutually beneficial relationships with a number of
the world's leading technology companies, and additional actions
detailed below.
Tern's investment strategy
Tern now focuses on building companies with technologies and services
within the fast-growing Internet of Things market. This reflects our
assessment of where we see potential and where we believe our assets and
experience can add value to companies and ultimately create strong
returns for shareholders. The increasing need for unique security
solutions to underpin the growth of the IoT applications is widely
recognised and in 2016, Device Authority Limited ("Device Authority"),
Tern's flagship investment, was repeatedly recognised by industry
experts and analysts as a core participant. Our experience with Device
Authority puts us in a strong position to seek out and build companies
in other areas of the IoT market. In working with Device Authority, we
have gained practical knowledge of what is required to successfully
build a company in the space, substantial expertise in the IoT ecosystem
and a web of relationships with a number of the world's leading
technology companies.
Management realignment
The Board concluded that, as an experienced technology company executive,
I would serve as the most effective leader for the Company. In making
this decision, the Board placed particular emphasis on several broad
aspects of my background: experience as a senior operating executive at
technology companies, board level participation in the growth of many
successful technology start-ups, practical knowledge of the IoT
ecosystem developed over the past two years as the Chairman of Device
Authority, and resulting high-level relationships with executives at
technology companies now involved in the IoT market. In realigning our
management, the Board also recognised that the Company would benefit
from additional senior-level expertise in technology. As a result, we
anticipate recruiting in 2017 a Chairman for the Board who will bring
skills and experiences that are complementary to the Board. The Board
and I would like to thank Angus Forrest, who previously served as
Chairman and founder of Tern, for bringing us to this stage of our
development. Angus brings a wealth of transactional management expertise
to the Company and will continue to oversee this critical aspect of
Tern's activities.
Device Authority: Poised for growth
In 2016, Tern's management team worked extensively with the management
of Device Authority, our flagship investment, to ensure it is positioned
for success in 2017 and beyond. During 2015 and into 2016, Cryptosoft
Limited and Device Authority Inc (a United States based firm, whose
owners include Alsop Louie Partners, one of the leading venture capital
firms in Silicon Valley) established ever deeper ties through an OEM
partnership. As the complementary capabilities of the two business
became clear, it was agreed that a merger was in the best interests of
both companies and their shareholders. Additionally, with Device
Authority Inc's headquarters in Fremont, CA, and Cryptosoft's
headquarters in Bracknell, the combined firm would have a strong
presence in two critical hubs for IoT and exposure to prospective
customers and partners. In April 2016, Cryptosoft announced the
acquisition of Device Authority Inc and chose to use the Device
Authority name as the continuing brand. The resulting company, Device
Authority Limited, was valued at GBP13.6 million (post new money) and
represented an increase in the asset value of Cryptosoft to GBP6.1
million (pre new money) on the 21 April 2016 from GBP961,439 at 31
December 2015. The new Device Authority Limited realised several
milestones in 2016 that are noteworthy. They included: (1) The company
reported its first significant customer, a key goal outlined in last
year's annual report; (2) Device Authority's Internet of Things Security
Solution has been formally reviewed and analysed, and deemed effective
by a number of the world's leading analysts and technology companies,
including Gartner, PTC's ThingWorx, Intel, and Dell, amongst others.
This included being named a Gartner "Cool Vendor."
Rationalising the investment portfolio
In June 2016, Tern made an offer to buy certain assets of Flexiant
Limited for GBP75,000. Tern was an early stage investor in Flexiant
Limited. The 2016 purchase price included two divisions of Flexiant
Limited, Concerto and what is now flexiOPS Limited (previously Flexiant
Research), a profitable technology consulting company. We believe that
flexiOPS may be the source of valuable technology expertise to assist
current and future Tern portfolio companies. In November 2016, the
Company announced that it completed the sale of the assets and business
of Concerto, a multi cloud management software business, to Ingram Micro,
the world's largest technology distributor and a leading technology
sales, marketing and logistics company for the IT industry worldwide.
The total consideration was $500,000 in cash, payable $425,000 on
completion with $75,000 at the end of 12 months. Tern acquired Concerto
alongside Flexiant Research in June 2016 for a combined total of
GBP75,000 in cash. The valuations of the two businesses were not
disclosed separately at the time of the acquisition. The Board believes
the sale of Concerto represented good value, and the realised funds are
being used to create new opportunities. Tern retains its stake in
flexiOPS Limited which remains profitable. The sale of Concerto is our
first portfolio company exit and represents an overall profit, net of
all costs on this sale of GBP150,043, while still retaining the
profitable flexiOPS.
Year-end funding and related activities
In October 2016, the Company announced that it had invested GBP2 million
in Device Authority Ltd, as the lead investor in a GBP2.5 million
funding round. Alsop Louie Partners and all existing A Preference
shareholders also participated and took up their pro-rata share.
Following this fund-raising Tern now owns 56.9% of the issued capital of
Device Authority Ltd and 50.6% of the A preference shares. The funding
is being used to expand Device Authority's sales and marketing teams to
respond to their new and growing go to market partnerships and to meet
the increased demand in the Industrial and Healthcare IoT markets. In
addition, Device Authority is expanding its development team to
accelerate product development and innovation in its recently launched
KeyScaler(TM) IoT security platform. We believe that the benefits of
this strengthened financial position and increased ownership, will
ensure that Device Authority and Tern can each execute on their
respective strategies and subsequently yield superior results for our
shareholders.
Moving into 2017 and beyond
For Tern, 2016 was, in many ways, a period where we put the final
building blocks in place to position the Company for success. With much
of this positioning now in place, we approach 2017 with optimism and
confidence.
Events after the operating period
On 31 January 2017 Device Authority was pleased to announce the
appointment of George Samenuk to the Device Authority board as a
non-executive Director. George Samenuk, is the former Chairman and CEO
of McAfee (NYSE: MFE), the world's largest dedicated software security
business. Mr Samenuk has served on the boards of Symbol Technologies
(sold to Motorola for $3.9 billion) and other privately-owned companies.
He also spent over twenty years at IBM, holding a variety of executive
positions and ended his career there as General Manager of the Americas,
responsible for $45 billion in revenue.
Finally, I would like to thank all of our shareholders for the support
and enthusiasm, all our portfolio employees for their commitment and our
Directors for their dedication to the Company and its mission
Al Sisto
Chairman
17 February 2017
Strategic Report
Business review
The Company is positioned as a quoted platform to invest in, develop and
sell private software companies with proven technology, based in the UK
but with global opportunities and ambition. These businesses are
predominantly in the cloud, Internet of Things and mobile sectors. A
more detailed review of the activity and progress of the business,
including the portfolio of investments, is contained in the Chairman's
Statement and Investment Report, which form part of the Strategic
Report.
Future developments
As explained in the Chairman's Statement the Company has undertaken a
series of initiatives to position the Company for lasting success and
has continued to build a portfolio of investments and a pipeline of
investment opportunities in IoT enablement. It is also in the process of
recruiting a new Chairman to bring further technology experience to the
Board.
Key performance indicators
Whilst the Company currently has limited investments in unquoted
companies, as referred to above, the Company's principal activity is
that of investing in companies. Accordingly, the Company's financial Key
Performance Indicators (KPIs) are the return on investments and the net
assets position of the Company including net assets per share. These
indicators are monitored closely by the Board and the details of
performance against these are given below.
-- The return on investments:
-- Realised - Concerto was sold in November 2016 for $500,000 with
direct costs, including investment cost, of GBP98,811, resulting in a
profit after all costs of GBP150,043.
-- Unrealised - Device Authority Limited, Push Technology Limited and
Seal Software Group Limited have been revalued in line with IFRS to a
level consistent with recent fund raisings. The unrealised gain on
Device Authority Limited has arisen due to the acquisition of Device
Authority Inc by Device Authority Limited (formerly Cryptosoft Limited).
Device Authority is an early stage business in an emerging market where
there is a lack of comparative businesses available on which to provide
a comparable valuation and therefore valuation was based on the price of
shares in the most recent fund raise, which is taken as fair value and
an unrealised gain of GBP6.1 million was recognised.
-- The net assets of the Company at 31 December 2016 totalled
GBP11,187,739 (2015: GBP1,691,881). The net assets per ordinary share as
at 31 December 2016 were 9.44p (2015: 2.70p).
The Company has non-financial KPIs which are also monitored regularly by
the Board. These non-financial KPIs are focused around the number and
quality of investment opportunities seen and the impact on the pipeline.
Principal business risks and uncertainties
The management of the business and the nature of the Company's strategy
are subject to a number of risks. The directors have set out below the
principal risks facing the business. Where possible, processes are in
place to monitor and mitigate such risks. The Company operates a system
of internal control and risk management in order to provide assurance
that the Board is managing risk whilst achieving its business objectives
with the assistance of the Audit Committee. No system can fully
eliminate risk and, therefore, the understanding of operational risk is
central to the management process. Identifying, evaluating and managing
the principal risks and uncertainties facing the Company is an integral
part of the way the business operates. The Company has policies and
procedures in place throughout its operations, embedded within the
management structure and as part of the normal operating processes.
Market and economic conditions are recognised as one of the principal
risks in the current trading environment. This risk is mitigated by the
close monitoring of trading conditions and the performance of the
Company's investment portfolio. The Company is affected by a number of
risks and uncertainties, not all of which are wholly within its control
as they relate to the wider macroeconomic and legislative environment
within which the Company operates.
To enable shareholders to appreciate what the business considers are the
main operational risks, they are briefly outlined below:
Risk Potential impact Strategy
Reliance The Company offers a remuneration package designed
on key The Company is unable to retain key individuals -- Loss of knowledge and expertise to attract, motivate and retain key individuals.
people Key individuals in the investment companies are offered
-- Disruption for the Company or its investment an attractive remuneration package and either shares
companies or share option incentives
Investment An investment fails to perform as anticipated: -- Investment may require additional finance The Company actively takes an influential role in
risk -- Investee companies may be operating in highly competitive -- Inability to create maximum value in a timely fashion the strategic direction of its investments and monitors
markets with rapid technological change -- Difficulty in realising investment all investments regularly,
-- Investee companies may be companies in early stage The Company's strategy has been formulated by the
of commercial development. Generation of significant management team with a strong track record of generating
revenues is difficult to predict and not guaranteed. gains from early stage companies within the technology
sector.
The Company is building a portfolio of investments
to insulate itself against poor performance of any
one.
Liquidity The Company is unable to raise new funds -- May have a detrimental effect on the Company's The Company will maintain sufficient cash balance
ability to cover administration and other costs to finance itself for a prudent period, or ensure
-- May adversely affect returns of investee companies if that it has access to funds.
they need to raise further funds
Assessment of business risk
The Board regularly reviews operating and strategic risks, with the
assistance of its committees. The Company's operating procedures include
a system for reporting financial and non-financial information to the
Board including:
-- reports from management with a review of the business at each Board
meeting, focusing on any new decisions/risks arising;
-- reports on the performance of investments;
-- reports on selection criteria of new investments;
-- discussion with senior personnel; and
-- consideration of reports prepared by third parties.
Angus Forrest
Director
17 February 2017
Investment Report
The Company's current investment portfolio consists of the following
investments, all of which are unquoted:
Device Authority Limited
Market segment: Data Security software
Equity ownership: 56.9% 'A' Shares Cost: GBP4.34 million Valuation: GBP10.47 million
Valuation is based on the price of shares in the most
recent fund raise, which is taken as fair value.
Device Authority Limited (formerly Cryptosoft Limited)
is an Internet of Things (IoT) security automation
company. Device Authority provides simple, innovative
solutions to address the challenges of securing applications
and their devices while using the Internet with a
robust, end-to-end security architecture that delivers
efficiencies at scale. The Device Authority KeyScaler(TM)
IoT security platform is purpose-built to address
these challenges through automated device provisioning,
credential management, secure updates and policy-driven
data encryption.
In April 2016 Cryptosoft Limited acquired Device Authority
Inc. based in Fremont, CA. Subsequently Cryptosoft
Limited changed its company name to Device Authority
Limited. Post the acquisition, progress has been made
throughout 2016 to strengthen the management team
within Device Authority including a new Chief Technology
Officer and Financial Controller. The acquisition
of the Device Authority Inc technology has enhanced
the software offerings from Cryptosoft. DeviceAuthority
Inc software adds policy driven key and certificate
management, to Cryptosoft's original IoT data security
software platform.
In Q4 2016, Device Authority Limited launched the
merged software platform KeyScaler. The goal of the
integrated solution is to deliver rapid security automation
and active security posture enforcement to address
the new and evolving security challenges of the IoT
market. The KeyScaler platform allows customers to
securely register, provision and update their devices
through active, policy-based security controls which
are designed to protect IoT applications and services.
Device Authority Limited have also adapted the software
to integrate seamlessly with several of its Go-to-Market
partners, including PTC's ThingWorx Platform, Intel,
DigiCert, Dell, Cumulocity and others. Specific details,
videos and white papers can be reviewed on the Device
Authority Limited website.
Device Authority Limited will continue to focus on
building its contract base and device registrations,
as well as developing its strategic alliances and
OEM integration of the KeyScaler platform. Focus is
also being driven to the thoughts around developing
a white labelled version of KeyScaler and co-branding
with other IoT platform providers.
Key announcements in 2016 included:
-- Device Authority Limited was awarded the coveted Cool
Vendor Award by Gartner, May 2016, this follows
Device Authority Inc. winning the same award in 2015.
-- In June 2016 Device Authority Limited was also
awarded the InfoSecurity and TechUK Award for the
'UK's Most Innovative Small Cyber Security Company
-- Device Authority Limited secured its first OEM
contract in June 2016 with MachineShop Inc, an IoT
middleware supplier, to provide its services-based
technology in a variety of deployment models.
-- In April 2016, PTC's primary EMEA integration partner,
InVMA, signed to partner Device Authority Limited.
InVMA and Device Authority Limited have since jointly
presented at events such as PTC Forum Europe and IoT
Solutions World Congress.
-- Marketing and selling alliance partnerships were also
signed with Intel, Dell, Symantec, Cumulocity and
DigiCert.
-- Tern Plc invested GBP2 million in Device Authority
Ltd as the lead investor in a GBP2.5 million funding
round. At 31 December 2016 the Company owned 56.9% of
the issued capital of Device Authority Limited and
50.6% of the A preference shares.
For more information visit: www.deviceauthority.com
flexiOPS Limited
Market segment: Project management of research and
innovation projects in technology
Equity ownership: 100% Cost: GBP37,500* Valuation: GBP37,500
* Cost is 50% of the purchase price of two business
units flexiOPS and Concerto. Concerto was sold in
2016. Valuation is based on cost, which is taken as
fair value.
flexiOPS Limited ("flexiOPS") , was an established
business unit of Flexiant Limited. It runs project
management and innovation technology projects with
associated grant funding, many of these projects are
incorporated in the Flexiscale Technologies Limited
FCO product. It works across a portfolio of projects
including Horizon 2020, the European Commission's
EU Framework Programme for Research and Innovation,
whose purpose is securing Europe's global competitiveness.
flexiOPS will work with other Tern portfolio companies
on their innovation projects together with sourcing
associated grant funding.
For more information visit: www.flexiops.com
Push Technology Limited
Market segment: Data distribution
software
Equity ownership: <1% Cost: GBP120,197 Valuation: GBP34,205
Valuation is based on the price of shares in the most
recent fund raise, which is taken as fair value.
Push Technology Limited ("Push") significantly enhances
the ability of organisations to communicate in real-time.
This includes direct communication as well as indirect
for example by refreshing data displayed information
in real time rather than when a user explicitly asks
for an update. Interactive applications are infinitely
more engaging, updating in real-time as new data becomes
available.
Key announcements in 2016 included:
-- New standard product with new SaaS business model
released
-- Upgraded products released for enterprise and SaaS
solutions
-- New bank customers
For more information visit: www.pushtechnology.com.
Seal Software Group Limited
Market segment: Database Analytics and Search software
Equity ownership: <1% Cost: GBP50,000 Valuation: 62,714
Valuation is based on the price of shares in the most
recent fundraise, which is taken as fair value.
Seal Software Group Limited ("Seal") specialises in
writing software which performs complex analysis of
contractual data. Seal Software is specifically designed
to locate and examine contractual documents and extract
and present key contractual information related to
language, clauses, clause combinations, and the significant
contextual metadata held within them.
In 2016 Seal unveiled a new version of its leading
contract discovery and analytics solution called Version
5.0. The new version introduces two major capabilities,
the first called "Analyse This Now" (ATN) and the
second is User Driven Machine Learning (UDML). Both
are designed to empower business users, putting more
of the capabilities of Seal in their hands, and removing
work from legal operations or other administrative
resources. Version 5 reduces the costs, and speeds
the time for many contract management and analysis
processes.
In 2016 the notable events included:
-- Winner of Awards including: Legal Tech News
Innovation Award, Silver Stevie Award, IACCM
Innovation Award, 2016 KMWorld Promise Award
-- Seal was the 148th Fastest Growing Company in
Deloitte's 2016 Technology Fast 500
-- Customer numbers top 100 in March 2016
Customers include Dropbox, Microsoft, Bosch, hp, Merck,
Vodafone and many other multi-national organisations.
For more information visit:
www.seal-software.com
Income Statement and Statement of Comprehensive Income
For the year ended 31 December 2016
2016 2015
GBP GBP
Turnover 69,715 162,500
Sale of investment 383,489 -
Movement in fair value of investments 5,758,480 63,492
Cost of investment sold (98,811) -
Gross profit 6,112,873 225,992
Administration costs (609,680) (298,896)
Share based payment charge (191,299) (99,523)
Operating profit/(loss) 5,311,894 (172,427)
Finance income 1,198 11,786
Finance costs (16,459) (24,480)
Profit/(Loss) before tax 5,296,633 (185,121)
Tax - -
Profit/(Loss) for the period 5,296,633 (185,121)
Since there is no other comprehensive income, the
loss for the period is the same as the total comprehensive
income for the period.
EARNINGS PER SHARE:
Basic profit/(loss) per share 6.4 pence (0.37) pence
Fully diluted profit/(loss) per share 6.4 pence (0.37) pence
Statement of Financial Position
As at 31 December 2016
2016 2015
GBP GBP
ASSETS
NON-CURRENT ASSETS
Investments held for trading 10,601,330 810,350
Loans to investee companies - 619,413
10,601,330 1,429,763
CURRENT ASSETS
Trade and other receivables 100,515 117,042
Cash and cash equivalents 762,851 278,456
863,366 395,498
TOTAL ASSETS 11,464,696 1,825,261
EQUITY AND LIABILITIES
Share capital 1,325,270 1,314,118
Share premium 12,390,310 8,393,536
Loan note equity reserve 20,650 20,650
Share option and warrant reserve 1,088,595 897,296
Retained earnings (3,637,086) (8,933,719)
11,187,739 1,691,881
CURRENT LIABILITIES
Trade and other payables 172,517 35,986
TOTAL CURRENT LIABILITIES 172,517 35,986
NON-CURRENT LIABILITIES
Borrowings 104,440 97,394
TOTAL NON-CURRENT LIABILITIES 104,440 97,394
TOTAL LIABILITIES 276,957 133,380
TOTAL EQUITY AND LIABILITIES 11,464,696 1,825,261
Statement of Changes in Equity
For the year ended 31 December 2016
Option
Loan note and
Share Share equity warrant Retained Total
capital premium reserve reserve earnings equity
GBP GBP GBP GBP GBP GBP
Balance at 31
December 2014 1,310,613 7,563,193 53,624 797,773 (8,781,572) 943,631
Total
comprehensive
income - - - - (185,121) (185,121)
Transactions
with owners
Issue of share
capital 3,505 865,243 - - - 868,748
Share issue
costs - (34,900) - - - (34,900)
Transfer on
conversion of
convertible
loan notes - - (32,974) - 32,974 -
Share based
payment
charge - - - 99,523 - 99,523
Balance at 31
December 2015 1,314,118 8,393,536 20,650 897,296 (8,933,719) 1,691,881
Total
comprehensive
income - - - - 5,296,633 5,296,633
Transactions
with owners
Issue of share
capital 11,152 4,210,311 - - - 4,221,463
Share issue
costs - (213,537) - - - (213,537)
Share based
payment
charge - - - 191,299 - 191,299
Balance at 31
December 2016 1,325,270 12,390,310 20,650 1,088,595 (3,637,086) 11,187,739
Share Capital
The amount subscribed for shares at nominal value.
Share Premium
This represents the excess of the amount subscribed for share capital
over the nominal value of the respective shares net of share issue
expenses.
Loan Note Equity Reserve
This represents the equity component of convertible loans issued
Option and Warrant Reserve
This represents the calculated value of the options and warrants issued
Retained Earnings
Cumulative loss of the Company.
Statement of Cash Flows
For the year ended 31 December 2016
2016 2015
GBP GBP
OPERATING ACTIVITIES
Net cash used in operations (64,729) (79,159)
INVESTING ACTIVITIES
Purchase of investments (3,460,000) (114,880)
Loan to investee companies - (610,000)
Net cash used in investing activities (3,460,000) (724,880)
FINANCING ACTIVITIES
Proceeds on issues of shares 4,217,500 720,000
Share issue expenses (213,537) (34,900)
Proceeds from exercise of warrants 3,963 10,748
Repayment of loan stock - (50,000)
Interest received 1,198 2,373
Net cash from financing activities 4,009,124 648,221
Increase/(decrease) in cash and cash
equivalents 484,395 (155,818)
Cash and cash equivalents at beginning of year 278,456 434,274
Cash and cash equivalents at end of year 762,851 278,456
1. BASIS OF PREPARATION
The financial statements of the Company have been
prepared in accordance with International Financial
Reporting Standards (IFRSs) adopted by the European
Union (EU)and therefore the financial statements comply
with Article 4 of the EU IAS Regulation.
IFRS is subject to amendment and interpretation by
the International Accounting Standards Board (IASB)
and the International Financial Reporting Interpretations
Committee (IFRIC) and there is an ongoing process
of review and endorsement by the European Commission.
The financial statements have been prepared on the
basis of the recognition and measurement principles
of the IFRS that were applicable at 31 December 2016.
The preparation of financial statements in conformity
with generally accepted accounting principles requires
the use of estimates and assumptions that affect the
reported amounts of assets and liabilities at the
date of the financial statements and the reported
amounts of revenues and expenses during the reporting
period. Although these estimates are based on management's
best knowledge of the amount, event or actions, actual
results may ultimately differ from those estimates.
The financial statements have been prepared on the
historical cost basis. Historical cost is generally
based on the fair value of the consideration given
in exchange for the assets. The principal accounting
policies set out below have been consistently applied
to all periods presented, except where stated.
In accordance with IFRS 10, par 4 the Company has
taken the exemption not to present consolidated financial
statements as it is an investing company and measures
all of its investments at fair value through the income
statement.
2. EARNINGS PER SHARE
2016 2015
GBP GBP
Profit/(Loss) for the purposes of basic and fully
diluted earnings per share 5,296,633 (185,121)
2016 2015
Number Number
Weighted average number of ordinary shares:
For calculation of basic earnings per share 82,298,281 49,375,127
For calculation of fully diluted earnings per share 82,298,281 49,375,127
2016 2015
Earnings per share:
Basic earnings/(loss) per share 6.4 pence (0.37 pence)
Fully diluted earnings/(loss) per share 6.4 pence (0.37 pence)
3. Annual General Meeting (AGM)
The annual report will be available from the company
website from 17 February 2017 and will be posted to
shareholders on or before 24 February 2017. The annual
report contains a notice of the AGM which will be
held at 9.30am on 16 March 2017 at the offices of
Reed Smith, The Broadgate Tower, 20 Primrose Street,
London, EC2A 2RS.
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Tern Plc via Globenewswire
(END) Dow Jones Newswires
February 17, 2017 02:00 ET (07:00 GMT)
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