Tern PLC on Wednesday reported an increased loss as the valuation of the portfolio contracted.

Tern shares fell 14% to 5.19 pence each on Wednesday morning in London.

The investment company specialising in supporting early-stage ’internet of things’ technology businesses said in the six months to June 30, pretax loss widened 18% to £2.8 million from £2.4 million a year before.

Net asset value per share at June 30 fell to 5.7 pence per share from 8.5p a year prior. This was driven by a £2.1 million reduction in the valuation of the portfolio.

Looking ahead, the company said it is implementing cost saving measures, expecting to save about 40% of its overall central costs in 2024 compared to 2022.

Chair Ian Ritchie said: ‘It is the board’s intention that the company will not invest in any companies or entities not already part of Tern’s existing portfolio at least until such time as the company has realised material value from its current portfolio. We remain focused on maximizing this value to ultimately achieve good exits from our various investments, at the appropriate time, in order to deliver returns for our shareholders.’

Copyright 2023 Alliance News Ltd. All Rights Reserved.