The Bailador Technology Investments Ltd (ASX: BTI) share price is up after the tech investor announced its FY21 half year result.
Bailador describes itself as a technology expansion capital fund.
What did Bailador report?
Bailador announced that it generated a net profit for shareholders of $13.1 million, with a gain on financial assets and marketable securities (shares) totaling $23.5 million.
The pre-tax net tangible assets (NTA) per share increased by 12.3% to $1.39, net of all fees. The NTA represents the underlying value of the business.
The Instaclustr valuation increased by 42.2% after a strong 12-month period of growth. The Stackla was revalued to $11.5 million, up from $0, based on the demonstrated business performance and market attractiveness. The Straker Translations Ltd (ASX: STG) valuation (based on the share price) increased by 71.4%, and went up another 17% in January 2021), largely driven by the announcement of a new global translation agreement with IBM.
Overall, Bailador said that the portfolio companies are well capitalised with no liquidity concerns and it’s expecting 2021 to be a significant year for profitable realisations.
Portfolio stats
Bailador’s 10 company investments have $294 million of revenue, generating 10% revenue growth (or 25% excluding travel), with a 75% gross profit margin and 86% of the revenue is recurring. These are solid numbers in my opinion.
Management comments
David Kirk, Bailador co-founder and Managing Partner said: “We are very pleased with the performance of the portfolio during a tumultuous period. No emergency capital raisings were required, and the businesses all have healthy sustainable models. The quality of the businesses and management teams has the portfolio well positioned for continued growth.
“A number of our Bailador portfolio companies represent attractive acquisition targets or IPO candidates. Harvesting gains is a key element of our business and we are aiming to provide significant positive news to the market on these companies during the coming months.”
Summary thoughts
A decent time to buy this business would be below the NTA, which it currently is but not by a lot. There are a number of attractive businesses within the portfolio, and it seems like they’re priced pretty reasonably by Bailador.
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