Pires Investments (PIRI ) has described the 14-month period ended 31 December 2020 as ‘a transformational period’ for the business as the firm made a series of new investments.
The investment firm, which is focused on next generation technology, finished the period with a total investment of c.£1.7m made in Sure Valley Ventures ("SVV"), in which it has an overall interest of c.20% through its purchase of a 28% shareholding in Sure Ventures plc.
Pires saw a €0.804m return achieved from the sale of Artomatix, one of the companies within the SVV portfolio, an over 60% return on its initial investment of £1.1m in SVV.
Over the period, SVV made new investments in several companies including artificial intelligence-based same day grocery delivery company, Buymie, Getvisibility, an AI data management and security business and Volograms, a reality and volumetric video firm.
In addition, a number of the portfolio companies have increased in value during the period. Pires highlighted that this revaluation is principally based on subsequent funding rounds which have taken place at higher valuations than at the time of the initial investment.
In particular, the valuation of Buymie has increased by c. 200% since the original investment in April 2020, as part of a second round of investment of €5.8m into this company in June 2020, in which SVV also participated. Admix also raised US$6.1 million at a valuation representing 450% of the company's valuation at the time of SVV's initial investment.
Over the period, Pires increased the value of its portfolio investments in Buymie and Admix while it also directly invested €0.25m into Getvisibility and c.£0.2m in Low6, a white labelled mobile sports betting platform for sports teams/franchises which is on track to IPO in 2021.
Pires also made its first investment move into the digital assets sector, resulting in the Group acquiring substantial shareholding in technology company, Pluto Digital Assets plc.
For the 14-month period under review, Pires reported a loss before taxation of £687,000 (for the year ended 31 October 2019: profit before taxation of £866,000) which the Group said includes unrealised gains/losses in the portfolio of quoted equity investments.
Net assets as at the end of the period amounted to £2.96m (31 October 2019: £2.565m). Whilst its net assets have increased by 14% over the period, the Board said it does not believe that absolute net asset value fairly represents Pires’ financial potential, ‘given the scope for significant valuation uplift of the companies within the portfolio.’
Since period-end, Pires said it has continued to make progress. Its equity holding in Pluto is valued at c. £2m based on Pluto's most recent fundraising, representing a significant uplift on its initial investment which is not reflected in the figures for the period under review.
Pires said its investments in the technology sector ‘have already proven to have been successful’, with a large amount of its SVV investment having already been returned.
Pires said it is ‘very well positioned to become a leading next generation technology investment company with an exciting portfolio of technology companies that have the potential for significant growth and the ability to deliver real returns for shareholders.’
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Pires has increased its investment into companies such as Pluto, deploying further funds into technology businesses operating in ‘the very exciting and fast-growing digital assets sector.’
Shares in Pires Investments have more than doubled in value since the beginning of 2021. The stock dipped 3.92% lower this morning to 12.25p following the announcement.
Reasons To PIRI
Pires Investments (PIRI) is an investment company providing investors with access to a portfolio of next generation technology businesses with significant growth potential.
The Company is focused on building an investment portfolio of high-tech businesses across areas such as Artificial Intelligence ("AI"), Internet of Things ("IoT"), Cyber Security, Machine Learning, Augmented Reality and Virtual Reality ("AR/VR") and Big Data.
The Board believes its portfolio demonstrates evidence of traction and the potential for exponential growth, due to increasing global demand for development in these sectors.
In December 2020, Pires announced its new venture into decentralised finance through a share subscription agreement into .DeTech Studio Limited developing a decentralised finance technology platform ("YOP"), providing Pires with a 15% equity interest in DeTech.
The company told investors that it believes decentralised finance technology platforms offer opportunities for growth and that it could capture a significant portion of the DeFi market.
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