Vela Technologies, a company specializing in early-stage technology investments, has recently reported a 9% decrease in its total assets, including cash, during the December quarter. The total assets fell by £0.64m, amounting to £6.18m. This decline marked a significant swing from the previous quarter’s increase of £0.94m, or 16%, to £6.82m.
The company’s investment portfolio consists of 15 active investments, with two being unquoted and 13 quoted. During the quarter, Vela divested its investment in St George’s Street Capital to Conduit Pharmaceuticals, receiving 1,015,760 Conduit shares in exchange. The investment, previously held as a financial asset, is now classified as an asset held for resale.
The fair value of Vela’s investment portfolio stood at £6.17m, slightly lower than the prior quarter’s value of £6.79m. This change in value was attributed to the disposal of investments valued at approximately £40,000, resulting in a realized loss of £3,000, alongside a net unrealized decrease in fair value amounting to £0.58m. This is in contrast to the prior quarter’s net unrealized gain of £1.04m.
Vela Technologies’ cash balance at the end of December was £6,000, down from £30,000 at the end of the prior quarter. As of the recent update, the company’s cash balance stood at approximately £60,000.
According to executive director James Normand, the decline in the value of Vela’s investment portfolio can be attributed to the lack of confidence in the public markets, particularly in the small cap markets in which the firm is largely invested. Normand stated that while Vela’s investments are primarily in listed stocks, the lack of activity in these stocks has prevented their market values from reflecting their true worth.
Despite the challenges faced, Vela Technologies remains committed to navigating the evolving investment landscape and is optimistic about future prospects.
This update, reported by Josh White for Sharecast.com, sheds light on Vela Technologies’ financial standing and provides insights into the impact of market conditions on its investment portfolio.
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