Can Thorney Technologies Turn Around Its Portfolio and Close the NTA Discount?

• Net loss after tax narrowed to $4.66 million from $21.7 million in FY2024
• Net tangible assets per share slightly decreased to 25.4 cents from 25.9 cents
• Investment portfolio includes key holdings in Calix, Clarity Pharmaceuticals, Imricor Medical Systems, and Yojee
• Performance fees waived by investment manager; share buyback program active
• Substantial tax losses available to offset future earnings; no dividends declared

Financial Performance and Portfolio Overview

Thorney Technologies Ltd (ASX – TEK) has reported a significantly reduced net loss of $4.66 million for the financial year ended 30 June 2025, a marked improvement from the $21.7 million loss recorded in the prior year. Despite this progress, the company’s net tangible asset (NTA) backing per share saw a modest decline to 25.4 cents from 25.9 cents in FY2024, reflecting ongoing market volatility and portfolio valuation adjustments.

The company’s investment portfolio remains focused on global technology assets, both listed and unlisted, with notable positions in companies such as Calix Limited, Clarity Pharmaceuticals Limited, Imricor Medical Systems, and Yojee Ltd. While some holdings like Imricor delivered strong share price gains during the year, others, including Calix, continued to weigh on performance, underscoring the challenges of investing in early-stage and small-cap technology ventures.

Strategic Initiatives and Market Conditions

Chairman Alex Waislitz acknowledged the difficult capital market environment for early-stage companies, highlighting the need for patience as intrinsic portfolio value gradually materializes. The board and investment management team are prioritizing improved portfolio performance and have implemented measures aimed at reducing the persistent discount between TEK’s share price and its NTA. These include a high watermark mechanism for performance fees and a share buyback program, which saw nearly 20 million shares repurchased during the year at an average price of 13.59 cents.

Despite these efforts, the share price to NTA discount remains a challenge. The investment manager notably waived performance fees for the period, signaling a commitment to aligning interests with shareholders. The company also holds substantial gross tax losses of approximately $78.6 million, which provide a valuable buffer to offset future taxable income, subject to statutory tests.

Governance and Risk Management

TEK’s governance framework continues to emphasize risk management, with the Audit & Risk Committee overseeing investment, operational, and market risks inherent in the company’s technology-focused investment mandate. The company maintains a diversified portfolio with approximately 31% invested in unlisted assets, which carry longer liquidity horizons and valuation complexities. The independent auditor, Ernst & Young, issued an unqualified opinion, highlighting key audit matters around the valuation of listed and unlisted investments and the recognition of deferred tax assets.

No dividends were declared during the year, reflecting the company’s focus on capital preservation and portfolio recovery. The board remains optimistic about emerging technology investment opportunities and the potential for value accretion as market conditions stabilize.

Bottom Line?

As Thorney Technologies navigates market headwinds and portfolio challenges, investors will watch closely for signs of sustained performance improvement and narrowing of the share price discount.

Questions in the middle?

• How will Thorney Technologies accelerate value realization from its unlisted investments amid ongoing market volatility?
• What impact will the share buyback program have on reducing the discount to net tangible assets?
• How might changes in global monetary policy and geopolitical tensions affect TEK’s technology investment portfolio?