Tern Plc (LON:TERN), the company focused on value creation from Internet of Things technology businesses, has announced its audited results for the year ended 31 December 2025.
Availability of Annual Report and Notice of GM
The annual report for the year ended 31 December 2025 will shortly be available from the Company’s website https://ternplc.com/aim-rule-26/ and will be posted to shareholders today.
A General Meeting (“GM”) of the Company will be held at 9.30am on Thursday 9 July 2026 at the offices of Allenby Capital, 5 St Helen’s Place, London, EC3A 6AB. The notice of GM will shortly be available from the Company’s website https://ternplc.com/aim-rule-26/ and will be posted to shareholders today, together with the form of proxy.
As outlined in the notice of Annual General Meeting dated 6 June 2026, the Company intended to convene a General Meeting following publication of the Annual Report and Accounts. The Board has now convened this General Meeting which will take place on 9 July 2026.
The following ordinary resolutions will be proposed at the GM:
| 1. | Resolution 1, is to receive and adopt the Company’s Annual Accounts for the financial year ended 31 December 2025, together with the Directors’ Report and Auditors’ Report on those accounts. |
| 2. | Resolution 2, is to re-appoint Gravita Audit II Limited as auditors to the Company at a remuneration to be determined by the directors. |
| 3. | Resolution 3, which will be proposed as an advisory only resolution, is to approve the Company’s Directors’ Remuneration Report for the financial year ended 31 December 2025, as set out in the Annual Report and Accounts. |
Chair’s Statement
The past year has been characterised by focus, discipline and progress against our core objective: converting the value built across our portfolio into tangible returns for shareholders.
Against a continued challenging environment for venture capital, particularly for listed vehicles, we have taken decisive steps to align our strategy with both market conditions and shareholder priorities. Rather than relying on ongoing capital raises to fund new investments, we are focused on our existing portfolio, where we believe opportunities for value realisation are developing.
Our portfolio is maturing and we believe it is approaching key inflection points. Each of our core investments continue to progress towards potential strategic outcomes. FundamentalXR and Device Authority are advancing towards liquidity pathways, while Talking Medicines is gaining traction as a differentiated artificial intelligence (“AI”) led business. We have seen increasing external interest in Talking Medicines reflecting its commercial progress and positioning within AI-driven healthcare data, analytics, and decision intelligence.
AI is a dominant theme across the global technology landscape. Importantly, our portfolio companies are not addressing AI as a concept alone, but applying AI, machine learning (“ML”) and natural language processing (“NLP”) within their products and services, with the aim of enhancing product capability, supporting customer adoption and maintaining competitive positioning. This emphasis on applied use cases is intended to drive our portfolio companies’ relevance to customers, investors and potential acquirers.
Our role as an active, hands-on investor remains central to this progress. We work closely with our portfolio companies, alongside co-investors and strategic partners, to support commercial execution, encouraging technology adoption, and help guide strategic direction. This approach is designed to support value creation and maintain our position wherever possible within key investment syndicates.
We have not completed exits during 2025 or to date in 2026. The Board believes this reflects timing rather than a lack of underlying progress, and that our portfolio companies are continuing to progress towards transaction windows.
Shareholders will note that the reported fair value of our investment portfolio reduced during the year. Importantly, we are only appraising the value of Tern’s holdings and not the entire portfolio company.
During 2025, we enhanced our valuation approach to better reflect the value of Tern’s actual holdings in each company, rather than relying primarily on broad company-level valuations. This more detailed method looks at what our specific holdings are realistically worth in different future scenarios.
In doing so, we have taken into account a range of factors that can affect how much value may ultimately flow to Tern, including:
â—Ź the type of shares or convertible loan notes that we hold and the rights attached to them,
â—Ź the presence of other investors with preferential rights,
â—Ź potential dilution from future funding rounds, options and warrants, and
â—Ź the impact of recent and prospective bridge financing.
Bridge financing is particularly important. These are typically shorter-term funding instruments used by portfolio companies to support growth between larger funding rounds or potentially ahead of a liquidity event. While they are often essential to sustaining momentum and unlocking longer-term value, they can also introduce additional valuation complexity. For example, they may carry preferential terms, conversion mechanics or discounts that can affect how future value is distributed among shareholders. As a result, while bridge funding can help a company reach a more valuable outcome, it can also reduce the proportion of that value attributable to existing shareholders, including Tern, depending on how those instruments convert.
The combined effect of applying this more realistic, shareholder-specific valuation framework has resulted in a reduction in the reported carrying value of the portfolio.
However, the Board remains confident that the portfolio continues to hold significant long-term value. Our focus is on supporting portfolio companies to reach key milestones and ultimately converting this underlying value into realised returns for shareholders through future liquidity events.
Maintaining appropriate capital has been an important priority. Capital raised during the year, and post period end has enabled us to support certain portfolio companies at critical stages. This is intended to help protect value for Tern and maintain these portfolio companies’ competitive position. We are grateful for the continued support of our shareholders.
As we move towards value realisation, our capital allocation approach has evolved. We intend to balance returning capital to shareholders following a material portfolio exit with selective reinvestment, primarily within our existing portfolio companies where we have greater visibility.
Reducing the gap between Tern’s share price and the underlying value of the portfolio remains a key priority for the Board. Progress in this area will depend on both delivery through exits and clear evidence of value creation, and improved communication. During the year, we enhanced our shareholder engagement, including the introduction of a dedicated advisory role, to better understand investor perspectives.
Looking ahead, our priorities for the coming year are:
â—ŹAdvancing portfolio companies towards liquidity events, including trade sales, or other realisation opportunities;
â—ŹSupporting the adoption of applied AI, ML and NLP across the portfolio
â—ŹSupporting commercial execution and growth, with a focus on revenue development and partnerships;
â—ŹMaintaining disciplined capital allocation, balancing reinvestment with returns of capital following a material exit;
â—ŹSeeking to maintain or strengthen our position where possible within key investor syndicates, and
â—ŹEnhancing shareholder communication to improve market understanding of portfolio progress and underlying value.
We believe the Company is entering an important phase as the portfolio continues to develop. While outcomes remain subject to market conditions, we consider that the progress made to date provides a basis for future value realisation.
The Board remains focused on delivery, and on seeking to generate returns for shareholders. On behalf of the Board, I would like to thank you for your continued support.
Jane McCracken
Non-Executive Interim Chair
Portfolio Companies and Holdings
As at 31 December 2025
Device Authority Limited (“DA” or “Device Authority”)
Valuation ÂŁ3.9m
Equity ownership 26.6% (before any dilution on exercise of share options and not including convertible loan notes held)
During the year, Device Authority continued to strengthen its position as a provider of identity solutions for the Internet of Things (“IoT”), with its KeyScaler® platform increasingly recognised as a scalable solution for securing devices and data across automotive, medical and industrial sectors.
The company has made good progress in executing its strategy to transition towards a software-led, recurring revenue model through its KeyScaler-as-a-Service (“KSaaS”) offering. Platform adoption continues to scale, with growing levels of device authentication and transaction activity demonstrating increasing operational deployment by customers and validating the platform’s ability to support large-scale IoT environments. Increasingly larger enterprise customers are looking for a dedicated software cloud service environment managed by Device Authority.
Commercially, DA has continued to build momentum through expansion within existing accounts, with customers moving from initial deployments into production and broader rollouts. This has driven strong growth in orders from existing customers, underpinning a high level of net revenue retention and reflecting the effectiveness of the company’s “land and expand” strategy.
The business has also continued to secure new customer engagements and progress a growing pipeline of opportunities, although enterprise sales cycles remain complex and elongated given the technical nature of deployments. Strategic partnerships remain a key component of go-to-market execution, including ongoing collaboration with major ecosystem participants to deliver integrated identity security solutions to IoT and operational technology environments.
During the period, DA further evolved its product strategy to address the emerging “machine identity” and non-human identity (“NHI”) security market. The enhancement of KeyScaler to include AI-driven risk scoring, compliance monitoring and automated lifecycle management positions the platform to address increasing regulatory requirements and the growing importance of zero trust architectures across connected devices.
Overall, Tern considers that Device Authority continues to demonstrate progress in transitioning to a scalable Software as a Service (SaaS)-led business model, with increasing validation through repeat customer expansion, platform utilisation and alignment to key market trends in IoT security and machine identity management.
Post year end on 22 May 2026, Tern invested US$280,000 (approximately ÂŁ209,000) in new unsecured convertible loan notes (“CLNs”) issued by Device Authority. The CLNs carry an interest rate of 8 per cent. per annum, which is payable only on a redemption. On a fundraising of at least US$5 million (a “Qualifying Fundraise”) undertaken by Device Authority the principal amount of the CLNs automatically converts into the most senior class of shares issued at a 25 per cent. discount to the fundraising price. On a fundraise of less than US$5 million (a “Non-qualifying Fundraise”), conversion may occur with the consent of the noteholder majority. If neither a change of control nor a Qualifying Fundraise has occurred by 23 July 2027, the CLNs mature and are redeemable at principal plus accrued interest. In the event of a change of control prior to maturity, the CLNs are redeemable at a three times multiple to their face value plus accrued interest.
FVRVS Limited (“FXR”)
Valuation ÂŁ1.6m
Equity ownership 10.3% (before any dilution on exercise of warrants or share options)
During the year, FXR completed a strategic rebrand from FundamentalVR to Fundamental XR, reflecting its evolution into a broader extended reality (“XR”) and AI-enabled platform for scalable medical training and commercial enablement.
The Company is transitioning from a project-led model to a platform-based approach, combining immersive simulation, haptics and data analytics with AI-enabled coaching and assessment. This shift is designed to reduce deployment friction, accelerate adoption and increase recurring revenues.
A key differentiator is FXR’s AI-enabled coaching capability, which moves training from episodic sessions to continuous, data-driven learning. The platform provides real-time performance feedback, identifies skill gaps and enables measurable competency tracking at scale, supporting improved clinical outcomes and more effective product adoption for customers.
The benefits of this approach are reflected in strong levels of repeat business, with initial engagements expanding into broader, multi-programme deployments. This “land and expand” model continues to deepen customer relationships and increase lifetime value.
Overall, Tern considers that FXR enters its next phase with a clearer platform strategy, increasing customer validation through repeat engagement, and strong positioning to capitalise on the growing adoption of AI-enabled immersive training solutions.
Talking Medicines Limited (“TM” or “Talking Medicines”)
Valuation ÂŁ1.7m
Equity ownership 23.8% (before any dilution on exercise of share options and not including convertible loan notes held)
Building on strong momentum in 2024, Talking Medicines entered 2025 focused on scaling its specialist AI and predictive intelligence capabilities across the US and UK pharmaceutical markets. This is driven by increasing demand from pharmaceutical companies and healthcare communications agencies for more effective, evidence-led engagement with physicians.
The market opportunity is both significant and urgent. Pharmaceutical companies currently spend approximately US$24 billion1 annually in the US on physician-focused marketing, yet much of this remains inefficient due to a lack of real-time insight into whether messaging is influencing prescribing behaviour. TM’s goal is to directly address this “messaging blind spot,” providing actionable intelligence where billions of dollars of marketing spend are at risk.
The Board believes the next phase of AI adoption will be driven by domain-specific, regulation-ready solutions rather than general-purpose AI models alone. TM is well positioned within this shift. Its proprietary DrugVoice platform and Predictive HCP (Health Care Practitioner) Intelligence capabilities combine curated real-life data with predictive analytics to deliver differentiated insight based on the “voice of the physician.”
Central to this offering is TM’s Message Resonance Score™, which enables customers to predict, measure and optimise the impact of messaging on physician behaviour. The Board considers that this capability is increasingly positioning TM as a category leader in “predictive intelligence” for pharmaceutical marketing.
The company continues to strengthen its defensible position through its expanding intellectual property portfolio, including two patent families supporting its proprietary data and modelling capability, alongside ongoing innovation through TM Labs.
Commercially, TM is executing a focused “land and expand” strategy targeting independent, data-driven medical communications agencies in the US, a fast-growing segment that offers both near-term revenue opportunities and access to broader pharmaceutical markets.
With a clear product-market fit, growing commercial traction and exposure to structural growth in healthcare AI, the Board believes TM is well positioned to deliver continued progress and represents a high-potential asset within the portfolio.
On 12 December 2025 the Company was issued with approximately ÂŁ230,000 of new CLNs by Talking Medicines in return for Tern having agreed to cancel existing short-term loans aggregating to approximately ÂŁ180,000 provided by Tern to Talking Medicines during 2024 and 2025. In addition, post year end on 26 May 2026 the Company was issued with further CLNs with a principal value of approximately ÂŁ270,000 in return for Tern having agreed to cancel existing amounts owed to Tern by Talking Medicines aggregating to approximately ÂŁ87,000 and Tern investing a further approximately ÂŁ48,000 of new funds.
The CLNs carry an interest rate of 10 per cent. per annum and the CLN’s principal amount and accrued interest are convertible on either an exit or a fundraising of at least ÂŁ2 million undertaken by Talking Medicines, in both cases at a 20 per cent discount to the exit or fundraising price. If neither an exit nor a relevant fundraising has taken place, the CLNs will mature on 21 November 2029.
As at 31 December 2025 Tern had a CLN holding of approximately ÂŁ0.52 million in Talking Medicines. The holding increased to approximately ÂŁ0.79 million on 26 May 2026.
1Research and Markets: Healthcare Advertising Market Report 2026.
Other
Aggregate valuation approximately ÂŁ0.2m
As at 31 December 2025 the Company held 213,415 shares in Sure Ventures plc, which is a venture capital fund which invests in early-stage software companies in the rapidly growing technology areas of artificial intelligence, augmented reality, virtual reality and the IoT. The Sure Ventures plc shares are listed on the Specialist Fund Segment of the London Stock Exchange and had a value of approximately ÂŁ149,000 at the closing price on 31 December 2025.
The Company has a small holding in DiffusionData Limited which provides real-time data streaming technology that enables organisations to deliver instant updates across applications and digital channels, supporting dynamic, data driven user experiences. Despite efforts during 2025, the company was unable to secure sufficient additional funding to support its path to profitability. Accordingly, in early 2026, its shareholders approved the sale of the business to TSS, a Dutch IT group, for total consideration of approximately ÂŁ1.3 million. Given Tern’s minority holding, proceeds attributable to Tern are immaterial.
Financial Review
2025 was a year of significant strategic activity across the portfolio as our investee companies continued to operate within rapidly evolving Internet of Things (“IoT”), cybersecurity and artificial intelligence (“AI”) markets. While the wider technology funding environment remained challenging and valuation multiples across private growth companies continued to experience pressure, our portfolio companies continued to develop their technologies, strengthen commercial relationships and pursue opportunities for long-term value creation.
The Board remained focused on supporting portfolio companies, where appropriate, whilst maintaining financial discipline at the Company level. During the year, the Company continued its programme of cost reduction and organisational simplification, resulting in a further reduction in administration costs and a leaner operating structure.
Against this backdrop, the Company recorded a reduction in portfolio value during the year, principally driven by movements in the fair value of certain portfolio investments and the reassessment of the carrying value of the investment held in Sure Valley Ventures Enterprise Capital LP (“SVV2”).
Statement of Financial Position
Net assets at 31 December 2025 were ÂŁ6.9 million (31 December 2024: ÂŁ10.7 million), representing a decrease of ÂŁ3.8 million during the year.
The reduction in net assets was principally attributable to the decrease in the fair value of investments held at fair value through profit or loss (“FVTPL”), together with the ongoing costs associated with maintaining the Company’s admission to trading on AIM.
The Board continued its focus on cost management during the year, resulting in a further reduction in administration costs of 15.7% compared with 2024. This follows an approximately 30% reduction achieved between 2023 and 2024. Whilst opportunities for further efficiencies continue to be evaluated, a significant proportion of the Company’s cost base relates to the regulatory, governance and professional requirements associated with maintaining an AIM quotation.
Investments held at FVTPL were valued at ÂŁ7.3 million at 31 December 2025 (31 December 2024: ÂŁ10.7 million). During the year, the Company recognised a net fair value reduction of ÂŁ4.1 million in respect of its investment portfolio. This was partially offset by follow-on investments, accrued interest on certain investment instruments and the new investment in Sure Ventures plc, resulting in a reduction in the carrying value of the portfolio from ÂŁ10.7 million to ÂŁ7.3 million.
It is important to note that the fair value of Tern’s investments does not represent the enterprise value of the underlying portfolio companies. The valuation methodologies applied under IFRS are designed to determine the value attributable to Tern’s specific shareholding and take into account factors such as share class rights, dilution from outstanding options, warrants and convertible instruments, future financing assumptions and the rights of other stakeholders. Consequently, movements in the reported carrying values of investments should not be viewed as a direct indicator of the overall performance or potential value of the underlying portfolio companies.
Cash and cash equivalents at 31 December 2025 were ÂŁ0.05 million (31 December 2024: ÂŁ0.4 million), reflecting continued investment into portfolio companies and the funding of the Company’s operating activities during the year.
Total liabilities remained broadly consistent with the prior year. Trade and other payables reduced modestly during the year and the Company agreed extensions to certain short-term funding arrangements to support its working capital requirements.
Income Statement and Statement of Comprehensive Income
The Company reported a total comprehensive loss for the year of ÂŁ5.1 million (2024: loss of ÂŁ3.8 million).
The principal contributor to the loss was the ÂŁ4.1 million reduction in the fair value of investments held at FVTPL, reflecting valuation movements across the portfolio and the reassessment of the carrying value of SVV2. As noted above, this fair value movement differs from the overall reduction in the carrying value of the portfolio due to additional investments and accrued interest recognised during the year.
The Company continues to adopt a supportive approach towards its portfolio companies and therefore maintains modest levels of fee income, preferring that portfolio company resources are directed towards growth and value creation. Fee income increased modestly during the year, principally due to services provided to Purple Transform Limited, a SVV2 portfolio company.
Administration expenses decreased to ÂŁ1.0 million (2024: ÂŁ1.2 million), reflecting the benefits of the Board and organisational restructuring undertaken during 2024 and 2025. Other operating expenses increased to ÂŁ0.1 million (2024: ÂŁ0.05 million).
Statement of Cash Flows
Net cash utilised in operating activities during the year was ÂŁ1.6 million as the Company continued to fund its operations and selectively supported portfolio companies.
During the year, the Company invested approximately ÂŁ0.7 million into its new and existing portfolio, comprising ÂŁ0.5 million of cash investments and ÂŁ0.2 million of non-cash investments arising from the conversion of receivables into investment instruments. Accordingly, the Statement of Cash Flows reflects cash investment outflows of ÂŁ0.5 million.
During the year, ÂŁ0.08 million of short-term borrowings was repaid (2024: ÂŁ0.3 million).
The Board continues to actively monitor liquidity and capital allocation, balancing the need to support portfolio companies while maintaining appropriate working capital resources.
Key performance indicators
The Company’s financial Key Performance Indicators (“KPIs”) are focused on:
â—Ź Net asset value (“NAV”);
â—Ź NAV per share;
â—Ź Portfolio value;
â—Ź Revenue growth across key portfolio companies; and
â—Ź Cash resources.
In addition to financial measures, the Board monitors a number of non-financial indicators, including key portfolio employee numbers and recurring revenue per employee within key portfolio companies. These metrics are considered to provide insight into operational efficiency, scalability and the long-term health of the portfolio.
Financial KPIs
| Key Performance Indicators | 2025 | 2024 | Movement |
| Net Asset Value | ÂŁ6.9m | ÂŁ10.7m | (36%) |
| Net Asset Value per Ordinary Share | 1.0p | 2.0p | (50%) |
| Investment Portfolio Value | ÂŁ7.3m | ÂŁ10.7m | (32%) |
Net Asset Value
Net assets at 31 December 2025 were ÂŁ6.9 million (2024: ÂŁ10.7 million). The decrease primarily reflects the reduction in the fair value of the Company’s investment portfolio during the year. Net asset value per ordinary share decreased to 1.0 pence (2024: 2.0 pence).
While the Company’s reported NAV declined during the year, the Board continues to believe that the portfolio contains a number of strategically valuable technology businesses operating in attractive end markets. The Board’s focus remains on supporting portfolio companies in achieving commercial milestones, securing appropriate funding where required and pursuing opportunities to realise value for shareholders over the medium term.
Portfolio Valuation
The Company’s investment portfolio was valued at ÂŁ7.3 million at 31 December 2025.
| 2025 | 2024 | Movement | |
| Investment | ÂŁ000 | ÂŁ000 | ÂŁ000 |
| Device Authority | 3,873 | 4,276 | (403) |
| FXR | 1,576 | 3,630 | (2,054) |
| Talking Medicines | 1,705 | 2,120 | (415) |
| Sure Ventures | 149 | – | 149 |
| DiffusionData | 15 | 23 | (8) |
| Wyld Networks | 1 | 3 | (2) |
| SVV2 | – | 688 | (688) |
Device Authority
The valuation decreased as a result of foreign exchange movements during the year together with updates to assumptions applied within the fair value assessment.
FXR
The valuation decreased as a result of changes in the assumptions applied within the fair value assessment.
Talking Medicines
The valuation decreased as a result of changes in fair value assumptions reflecting the company’s funding environment and stage of development.
Sure Ventures
During the year, the Company invested ÂŁ0.175 million in SV plc. The valuation is based on the quoted market price of the shares at the reporting date.
Diffusion Data
The investment continues to be valued using observable transaction data where available.
Wyld Networks
The valuation is based on the quoted market price of the shares at the reporting date.
SVV2
During the year ended 31 December 2025, the Company was declared a defaulting investor in relation to its commitment to Sure Valley Ventures Enterprise Capital LP (SVV2) following non-payment of a capital call due in October 2025. A formal default notice was issued in December 2025 in accordance with the terms of the limited partnership agreement. Following this the carrying value of the Company’s investment was reduced to nil.
The Board remains mindful of the broader market environment for private technology businesses and continues to apply a disciplined and consistent valuation methodology in accordance with IFRS requirements. Further details regarding fair value measurement and valuation methodologies are provided in the Chair’s Statement and in Note 20.
As discussed above and in the Chair’s Statement, the fair value of Tern’s investments reflects the value attributable to Tern’s specific shareholdings rather than the enterprise value of the underlying portfolio companies. Consequently, changes in reported carrying values may differ materially from changes in the underlying value or commercial progress of portfolio companies due to factors such as dilution assumptions, financing structures, share class rights and market valuation inputs.
Portfolio Operational KPIs for key portfolio companies
| Portfolio Operational KPIs for key portfolio companiesKey Performance Indicators | 2025 Movement | 2024 Movement |
| Annual Recurring Revenue Growth | (27%) | (7%) |
| Employee Growth | (33%) | (45%) |
| Growth in Annual Recurring Revenue per Employee | 8% | 69% |
The Board monitors annual recurring revenue growth, employee numbers and annual recurring revenue per employee across its key portfolio companies as key indicators of commercial progress and operational efficiency.
During 2025, recurring revenue across the Company’s principal portfolio companies decreased by 27%, reflecting the challenging funding and sales environment experienced by many early-stage technology businesses. Employee numbers reduced by 33% during the year as management teams continued to align their cost bases with available resources and market conditions.
Despite these reductions, recurring revenue per employee increased by 8%, which the Board considers demonstrates improved operational efficiency and a continued focus on productivity across the portfolio. The Board considers this metric to be an important indicator of the scalability and resilience of the underlying businesses.
Investing Policy
Tern’s investment policy is to invest principally, but not exclusively, in the information technology sector within Europe. The Directors believe that the Company can invest in and acquire information technology businesses, improve them by a combination of new management and investment, and realise the value created which will be returned to shareholders. The Company may be either an active investor and acquire control of a single company or it may acquire non-controlling shareholdings. Once a target has been identified, additional funds may need to be raised by the Company to complete a transaction.
The Directors see IT as having considerable growth potential for the foreseeable future and many of the prospects they have identified are in this sector. The Company has invested in six investee companies, four of which comprise the principal portfolio companies and the Directors believe there are further opportunities to invest in and acquire established IT businesses which have good technology, marquee customers and could better exploit their assets with the injection of experienced management and new funds with the intention of creating value for shareholders.
Although the main focus of the investment policy has been on the exploitation of IT businesses, which the Directors intend to continue; this will not preclude the Company from considering an investment in suitable projects in other sectors where the Directors believe that there are high-growth opportunities.
The Directors believe the main driver of success for the Company is the expertise that can be provided by the Directors to the management involved in its investee companies and the value creation that the team of people is capable of realising. The Company is, and intends to continue to be, an active investor. Accordingly, it has sought and may seek in future investments, representation on the board of investee companies.
The new capital available to the Company will be used to support and assist its investee companies to grow, where appropriate, and used to locate, evaluate and select investment opportunities that offer satisfactory potential capital returns for shareholders. The Company may require further funds in order to invest further in its principal portfolio companies and take up these opportunities. It is the intention of the Directors to undertake further fundraising if such an opportunity should arise. The Company’s investments may take the form of equity, debt, or convertible instruments. Investments may be made in all types of assets falling within the remit of the Investing Policy and there will be no investment restrictions.
The Directors may consider it appropriate to take an equity interest in any proposed investment which may range from a minority position to 100 percent ownership. Proposed investments may be made in either quoted or unquoted companies and structured as a direct acquisition, joint venture or as a direct interest in a project.
The Company has made investments and will seek further investment opportunities that can be developed through the investment of capital or where part of or all of the consideration could be satisfied by the issue of new Ordinary Shares or other securities in the Company. The investments the Company has made and any new opportunities have, or would generally have, some or all of the following characteristics, namely:
â—Źa majority of their revenue derived from IT or the use of IT, and strongly positioned to benefit from market growth;
â—Źa trading history which reflects past profitability or potential for significant capital growth going forward; and
â—Źwhere all or part of the consideration could be satisfied by the issue of new Ordinary Shares or other securities in the Company.
The Company will identify and assess potential investment targets and where it believes further investigation is required, intends to appoint appropriately qualified advisers to assist.
The Company proposes to carry out a comprehensive and thorough project review process in which all material aspects of any potential investment will be subject to rigorous due diligence, as appropriate. It is likely that the Company’s financial resources will be invested in a small number of projects or investments.
The Company’s investing policy was originally adopted in 2013. Tern’s investing policy is also available on the Company’s website
