SINGAPORE (Feb 22): Trendlines Group, the investment and innovation commercialisation company, reported earnings of US$3.9 million ($5.2 million) compared to a loss of US$6.6 million a year ago,
Total income in FY17 was US$15.6 million, compared to US$0.1 million in FY16 due to a gain of US$9.4 million in the fair value of Trendlines’ portfolio companies compared to a loss of US$8.0 million in FY16. Income from services to portfolio companies rose 17.4% to US$4.9 million.
The increase in fair value was mainly due to the completion of fund raising exercises at favourable terms to the portfolio companies which resulted in an increase in fair value of US$13.9 million, and general commercial or technological progress demonstrated in some portfolio companies in FY17. There was a gain of US$2.3 million from exit of two portfolio companies and a gain of US$1.9 million in the fair value of the Most Valuable Portfolio Company.
But the increase in fair value was offset by a decrease of US$5.7 million in the fair market value of various portfolio companies mainly as a result of the completion of fund raising exercises at less favourable terms and the the writeoff of five portfolio companies of US$3.1 million as a result of lack of funding in those companies.
Total expenses remained flat at US$10.0 million in FY2017.
Current assets stood at US$20.4 million as at Dec 31 2017, compared to US$17.3 million as at Dec 31 2016. The fair value of portfolio companies was US$96.8 million as at Dec 31 2017, compared to portfolio value of US$83.7 million as at Dec 31 2016.
In FY17, three exit-related events were announced, two of which were completed. These were the completion of the sale of Trendlines’ shares in BioSight; completion of the sale of Trendlines’ holding of MitrAssist and an investment in Vensica Medical by Cogentix Medical, Inc. of US$2 million with an option for them to acquire the entire share capital of Vensica.
Trendlines says it is committed to continuing to explore exit opportunities in the future and to optimising shareholder value.
Shares in Trendlines closed at 14 cents on Wednesday.
