Medtech and agrifood incubator Trendlines Group 42T expects to report a net loss of between US$25 million to US$30 million for its FY2023 ended Dec 31, 2023.
In a profit warning issued on SGX on Jan 3, the company says the expected FY2023 net loss is due mainly to a decrease in portfolio value from write-downs and write-offs of certain portfolio companies which did not succeed in raising capital in 2023 or raised funds at lower valuations.
The company notes that 2023 was a difficult capital market globally resulting from high interest rates, general reductions in venture investing and especially in early-stage investing with many venture firms not actively investing in 2023.
Additionally, escalations to the Israeli-Palestinian conflict in Oct 2023 slowed progress for its Israel-based companies.
Trendlines will report its earnings for FY2023 on or around Feb 21.
Shares in Trendlines closed 0.4 cents higher or 4.71% up at 8.9 cents on Jan 3.
