Touch Ventures Reports $4.8M Loss, Portfolio Value Drops $5M in H1 2025
Touch Ventures Limited reported a significantly reduced net loss of $4.8 million for H1 2025, reflecting improved portfolio performance and a fresh five-year management agreement. Key strategic moves include a write-down of Sendle and a post-period valuation uplift in Ordermentum.
- Net loss narrowed 80% to $4.8 million in H1 2025
- Gross portfolio value declined $5 million to $34 million
- New five-year management agreement with Gannet Capital
- Sendle investment written down to nil following merger
- Post-period $1.3 million valuation uplift from Ordermentum capital raise
Half-Year Financial Performance
Touch Ventures Limited (ASX – TVL) has reported a net loss of $4.8 million for the half year ended 30 June 2025, marking a substantial improvement from the $24.5 million loss recorded in the same period last year. This 80% reduction in losses was driven by a lower fair value loss on financial assets, which stood at $4.2 million compared to $25.4 million previously, alongside a $0.9 million unrealised foreign exchange loss.
Portfolio Valuation and Investment Activity
The company’s gross portfolio value decreased by $5 million to $34 million, reflecting ongoing adjustments in its investment holdings. Notably, Touch Ventures made an additional $0.4 million equity investment in Tixel during the period. Conversely, the company wrote down its investment in Sendle to nil following a strategic merger that formed the FAST Group, a new eCommerce shipping provider combining Sendle with US-based logistics firms ACI Logistix and FirstMile.
Post-period developments include a $3.7 million capital raise by Ordermentum, in which Touch Ventures did not participate. This event led to a $1.3 million valuation uplift (~44%) for Touch Ventures’ holding in Ordermentum, signaling renewed confidence in that asset.
Management and Governance Update
In May 2025, Touch Ventures entered into a new five-year management agreement with Gannet Capital Pty Ltd, an entity associated with Director Glenn Poswell. The agreement sets a base management fee of $720,000 per annum plus GST and includes the issuance of 45 million performance rights to Gannet, contingent on portfolio return hurdles. This arrangement underscores the company’s commitment to aligning management incentives with shareholder returns.
Financial Position and Risks
Touch Ventures remains in a strong financial position with net assets of $79.3 million and no debt. Cash and term deposits increased slightly to $45.3 million, providing liquidity to pursue new investment opportunities. However, the company continues to face risks typical of investment holding entities, including market volatility, liquidity constraints in exiting private investments, and the operational risks of early-stage portfolio companies.
Directors have confirmed no dividends will be paid for the period, reflecting a focus on capital preservation and reinvestment. The company’s cautious approach to valuation and portfolio management will be critical as it navigates the evolving market landscape.
Bottom Line?
Touch Ventures’ improved half-year results and strategic management deal set the stage for cautious optimism, but portfolio liquidity and market risks remain key watchpoints.
Questions in the middle?
- How will the new management agreement with Gannet Capital impact future fees and performance?
- What are the prospects for realising value from illiquid early-stage investments in the current market?
- How will the formation of FAST Group affect the valuation and future returns of Touch Ventures’ logistics-related holdings?