Tern has delivered further progressing FY22 against a challenging backdrop. KPIs demonstrate that repeat revenues are growing and head count is increasing, supporting our view that the portfolio is gaining commercial traction and turning configuration work into recurring revenue. However, valuations across the global technology landscape have been challenged for several quarters due to interest rates, risk appetite and long-term value expectations.
Therefore, despite the significant improvement in metrics across its portfolio companies, Tern has reported an £8.4m reduction in fair value, reversing the uplifts in value achieved in H122. While the reversal of the recent uplift in NAV is disappointing, we see significant value creation from Tern’s hybrid VC model and organic growth potential. Tern’s funding-to-exit model requires patience: we see recurring revenue growth attracting additional strategic interest and look forward to positive news flow.
Tern plc (LON:TERN) backs exciting, high growth IoT innovators in Europe. They provide support and create a genuinely collaborative environment for talented, well-motivated teams. Wyld Networks is uniquely placed to deliver fixed and mobile mesh technology for Smart Cities, Events, Retail, Health and Industrial installations.