Pires Investments (PIRI) , an AI-focused tech investment company, announced its interim results for the six-month period ended 30 June 2023, broadly maintaining the value of its portfolio despite a turbulent market backdrop. It also saw strong progress from Smarttech247, which continues to grow revenue and customers following its December 2022 AIM flotation.
As of 30 June 2023, NAV was £7,310,000, a 6.5% decline from 31 December, amid the tough backdrop of a difficult technology market. NAV per share at the period end was 4 pence, down from 4.28 pence on 31 December 2022. This translates to Pires currently trading at a 67.5% discount to its NAV.
During this period, a loss of £512,000 was incurred, in contrast to profit before taxation of £992,000 for the six months to 30 June 2022.
On 22 December 2022, just prior to the commencement of the period, a two-year debt funding facility of £1.235 million was announced, with the funding intended to support additional investments and act as a bridge toward the sale of portfolio companies.
Cash decreased slightly in the period to £0.665 million down from £0.847 million at 31 December 2022.
Smarttech247, which makes up part of its SVV1 portfolio, has continued to grow revenue and EBITDA and is winning new contracts. Its shares are trading at an 8% premium to its IPO price as of 26 September 2023.
Cameramatics, is also part of the SVV1 portfolio and raised €3 million in new funding at an increasing valuation. It has also won new clients in the UK and US including customers such as Maritime Transport, one of the UK's largest privately owned transport companies.
Nicholas Lee, Director of Pires, commented, “The Company has a clear and proven strategy of investing in next-generation technology with a focus on AI and realising returns from its investments which, it is continuing to implement. Furthermore, SVV1 has now entered its realisation phase and we are looking forward to further increases in the value of the portfolio companies and subsequent exits, which are expected to generate cash returns to the Company. The directors believe the portfolio of investments remains well-poised to achieve significant growth to deliver value to Pires and its shareholders."
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Despite a rocky backdrop, Pires has still largely maintained the value of its investment portfolios, with only a slight dip in its Investment in its Sure Valley Ventures category and its cash/other listed securities category.
After its AIM flotation, Smarttech247 raised £3.7 million through a placing at a price of 29.66 pence per new ordinary share. Smarttech247's share price as of 26 September 2023 was 32 pence per share, up approximately 8% since listing. The company also has significant growth prospects, positioned at the intersection of three major cyber security growth markets.
Due to unfavourable macroeconomic and market conditions, Pires is significantly undervalued compared to its NAV, with its share price currently at a 67.5% discount to its NAV per share of 4 pence. That leaves significant potential for growth, with the wide discount to NAV offering an attractive entry point for investors.
Overall, Pires boasts an impressive portfolio of tech companies that are poised for substantial growth and should deliver good returns for shareholders.
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