Thorney Technologies Posts 21.9 Cents Pre-Tax NTA for June 2026 Amid Portfolio Challenges and Active Buyback

Thorney Technologies’ Pre-Tax NTA Declines to 21.9 Cents Per Share as of 30 June 2026

Thorney Technologies Ltd reported a pre-tax net tangible asset backing of 21.9 cents per share as at 30 June 2026, marking a modest decline from 22.1 cents per share recorded on 31 May 2026. The after-tax NTA matched the pre-tax figure at 21.9 cents per share for June 2026, due to no deferred tax asset being recognized at this reporting date. All NTA figures are unaudited and approximate, as stated by the company.

The investment portfolio posted a negative return of 0.90% over the one-month period ending 30 June 2026 on a before-tax basis after management fees. Over the past year, the portfolio returned -7.20%, and on an annualized basis over three years, it delivered -5.36% per annum. Since inception in January 2017, the portfolio has generated a positive annualized return of 0.56%. These metrics provide shareholders with insight into the company’s longer-term performance relative to its goal of achieving absolute returns over the medium to long term.

June 2026 Portfolio Performance: Key Contributors and Detractors

The update highlighted both positive and negative portfolio contributors for June 2026. On the upside, Vitrafy Life Sciences Limited (ASX:VFY), Spacetalk Ltd (ASX:SPA), and the unlisted investment Mosh helped support the portfolio, spanning healthcare and consumer sectors in line with Thorney Technologies’ broad investment mandate across technology-adjacent verticals such as medical and e-commerce.

Conversely, several holdings including Credit Clear Limited (ASX:CCR), Clarity Pharmaceuticals Ltd (ASX:CU6), Microba Life Sciences Limited (ASX:MAP), and Doctor Care Anywhere Limited (ASX:DOC) underperformed. These companies operate in financial technology and medical technology sectors, which have faced headwinds amid elevated interest rates and investor caution towards unprofitable growth businesses in 2025 and 2026. The company did not disclose specific percentage or dollar movements for individual positions, leaving investors to await further updates.

Top Listed and Unlisted Holdings as of 30 June 2026

The company reported its top five listed holdings by portfolio allocation as Imricor Medical Systems (ASX:IMR) at 4.3%, Clarity Pharmaceuticals (ASX:CU6) at 4.2%, Credit Clear (ASX:CCR) at 3.9%, DUG Technology (ASX:DUG) at 3.9%, and Doctor Care Anywhere (ASX:DOC) at 3.6%. This distribution reflects TEK’s diversified approach within its listed technology investments.

Among unlisted investments, Splitit Payments was the largest position at 6.1% of the total portfolio, followed by Mosh at 4.5%, Red Earth Group at 2.6%, Elenium at 2.5%, and 360 Capital Fibreconx at 2.4%. The prominence of Splitit Payments as the largest overall holding, despite being unlisted, highlights the portfolio’s construction. Unlisted assets carry additional liquidity risks since they cannot be traded on public markets. Valuations and recent valuation dates for these unlisted positions were not disclosed.

Portfolio Allocation: 53% Listed, 38% Unlisted, 9% Cash as of June 2026

At 30 June 2026, Thorney Technologies’ portfolio comprised 53% listed securities, 38% unlisted securities, and 9% cash. This allocation aligns with the company’s mandate to invest across both listed and unlisted technology companies, leveraging networks in Australia, Israel, and the United States to source opportunities.

The company held $7.0 million in cash with major banks and had undrawn prime broker facilities as of the reporting date. With a market capitalization of $32.4 million and 360,820,273 shares outstanding, the cash reserves represent a significant portion of the asset base. While the size of the undrawn facilities was not disclosed, they offer additional flexibility for investments or further buybacks.

On-Market Buyback Sees 5.74 Million Shares Acquired in June 2026

In June 2026, Thorney Technologies repurchased 5,741,887 shares under its ongoing on-market buyback program, which expires on 13 November 2026. The buyback aims to address the substantial discount of the share price relative to NTA. At the update, TEK shares traded at 9.0 cents compared to a pre-tax NTA of 21.9 cents, representing a discount of approximately 58.9%.

This significant discount is a critical consideration for shareholders, as listed investment companies often trade at premiums or discounts to NTA. Persistent wide discounts can concern investors unable to realize underlying asset value. Management’s emphasis on the buyback underscores its commitment to narrowing this gap, though no specific discount reduction targets or remaining buyback capacity details were provided. Observers will watch whether buyback efforts combined with portfolio simplification reduce the discount ahead of the November expiry.

Chairman Highlights Geopolitical and Macroeconomic Challenges Impacting Portfolio

The Chairman’s remarks in the June 2026 update attributed the portfolio’s slight decline to ongoing geopolitical and macroeconomic risks affecting global markets. While markets have shown some resilience amid geopolitical uncertainty, economic data from Australia and globally continue to challenge central bank policies and economic growth prospects.

These factors are particularly impactful for early-stage, growth-oriented technology companies, which are sensitive to interest rate changes and investor risk appetite. Uncertainty in monetary policy often leads investors to reduce exposure to higher-risk growth assets, affecting companies held by Thorney Technologies. The Chairman did not provide specific forecasts or guidance for future portfolio performance.

Portfolio Simplification Remains a Key Strategic Focus in 2026

Thorney Technologies reiterated its strategic priority to simplify the portfolio by reducing the number of holdings. The Chairman emphasized efforts to decrease both complexity and the number of positions, aiming to concentrate on higher-conviction investments rather than maintaining a broad spread of smaller stakes.

For investors, this approach may enhance management’s ability to engage with investee companies and potentially improve returns through focused exposure. However, it may also reduce diversification. The company did not disclose the current number of holdings or target portfolio size in this update.

Management and Shareholder Structure Under Thorney Investment Group

Thorney Technologies is managed by the privately held Thorney Investment Group under a long-term agreement. Management fees are 0.75% charged semi-annually, with a 20% performance fee on net portfolio gains above a high water mark per half year, aligning manager incentives with shareholder interests.

As of 30 June 2026, Thorney Investment Group and its associates held a 32.6% stake in Thorney Technologies, indicating strong insider alignment. Listed since January 2017, TEK invests across the technology lifecycle, sourcing deals through networks in Australia, Israel, and the U.S. The investment management report was prepared by Thorney Management Services Pty Ltd, holder of AFSL 444369.

Diverse Investment Mandate Includes Fintech, Medtech, AI, and Agriculture

Thorney Technologies operates with a broad mandate covering fintech, e-commerce, education, agriculture, medical technology, telecommunications, robotics, and artificial intelligence. The company targets early-stage firms with disruptive technologies and business models, differentiating itself from more narrowly focused sector funds.

The firm invests in both listed and unlisted companies aiming to deliver absolute returns over the medium to long term. This dual strategy provides access to a wider opportunity set but introduces valuation and liquidity complexities. Unlisted investments, comprising 38% of the portfolio as of June 2026, are less frequently valued and carry greater uncertainty, a risk factor shareholders should consider when assessing reported NTA figures.