Tekcapital PLC (LON: TEK) is a United Kingdom-based intellectual property investment group. Listed on the FTSE AIM All-Share index of the London Stock Exchange (LSE) since 2014, the company creates market value through commercialising University Technology. The company seeks to achieve its objectives by acquiring and developing new university discoveries for its portfolio companies and by assisting its university clients in commercialising their discoveries through a network of over 4,500 universities and research centres in 160 countries.
Belluscura PLC, Lucyd Ltd, Salarius Ltd, Guident Ltd and Smart Food Tek Ltd, constitutes its diversified portfolio. These companies utilise proprietary technology to contribute towards enhancing the quality of life for its customers. Broadening of the market of Tekcapital is directly associated with the performance of these companies.
(Image Source- Company Website)
The Growing Relevance of Intellectual Property for Business
Whether you are just starting a business or running one, Intellectual Property (IP) should always be a part of the business plan. Everyday business is built upon goodwill and recognition linked to the brand, product or service. This value is built up over time and is strongly linked to the IP assets. IP assets can include a number of things; it can be a particular development or manufacturing process known as structural intellectual capital or a trade secret like a unique chemical composition. It can be considered as a piece of intangible proprietary information or of course, traditional patents. For many companies, these intellectual capital assets can be more valuable than traditional physical assets, as they can financially be leveraged to create a technology moat or competitive advantage.
This gives us an idea just how crucial IP can be to economic growth, how closing this gap enables the transition from a commodity company to one that competes with products and services only limited by the human ingenuity. IP is the backbone of the modern free-market economy.
Innovation is the key to any successful business that leads to the development of intellectual property in today's competitive world. Identifying, developing, and commercialising innovation provides a competitive edge and helps to enhance the long-term success of the company. IP is valuable for every business which invests huge sums in research and development for creating indigenous products and services and is not limited to only technology companies. Successful companies are always looking for expansion of their product offerings, revenue and margin increases, and are venturing into new markets, and here IP plays a vital role.
Let's have a brief look at TekCapital’s portfolio companies and their proprietary innovations.
Belluscura is a medical product company operating in the health care sector, supplying medical equipment and devices. Tekcapital PLC owns approximately 18 per cent of the share capital of Belluscura Plc.
The company is presently involved in designing and developing the next generation portable oxygen concentrator products, which is cost-effective and easily portable for individuals suffering from chronic obstructive pulmonary diseases (COPD) as well as those affected with Covid-19 where there has been residual lung damage. These devices provide supplemental oxygen, are small, lightweight and user-changeable filters to adapt to disease progression. The company has 18 patents covering its new device.
In the current climate, individuals are more concerned about their health than ever before. Salarius ltd has developed and is marketing MicroSalt®, a patented process for producing nano-particle sized salt crystals that can reduce sodium consumption by up to 50 per cent when applied to snack foods. MicroSalt® can help minimise hypertension while allowing customers to enjoy full-flavour snacks. Tekcapital owns 91.7% stake in Salarius. In May 2020, Salarius has introduced its own line of salty snacks under the SaltMe!® brand. These salty, full-flavour potato chips have about 50% less sodium than traditional products and are now available in more than 70 stores in the US. The company has two patents covering MicroSalt production process and registered trademarks on the MicroSalt and SaltMe! Brand names.
Lucyd aims at upgrading your eyewear with new technological features. By delivering beautiful and affordable glasses, as it helps customers protect their vision and remain safely connected to their digital lives. Founded in 2017, Lucyd became the first company to deliver prescription smart glasses. Lucyd Ltd is 100 per cent owned by TekCapital. The company has developed smart, prescription eyewear that allows users to stay connected to their digital lives, yet their glasses cost the same as traditional glasses. Lucyd’s IP position now consists of 24 patents (13 allowed design patents & 11 applications) which includes three pending utility patents, and eight pending design patents.
Additionally, Lucyd has exclusively licensed its IP to Innovative Eyewear Inc., which will be manufacturing and marketing Lucyd products globally.
Guident LTD develops software apps autonomous vehicle companies and fleet operators for the remote monitoring of autonomous vehicles and delivery drones. Tekcapital PLC is the 100 per cent owner of Guident Ltd. The company is involved in commercialising its new patented technology to enhance the utility and safety of autonomous vehicles and delivery drones, and by providing remote monitoring and control for these vehicles in case, they get into mishaps. Guident has five patents covering its proprietary technology.
Smart Food Tek Ltd
Tekcapital PLC’s wholly-owned portfolio company Smart Food Tek Limited provides new and technology for preparing food. The company owns the exclusive rights to a food preparation technology focused on reducing fat in fried foods. Specifically, its technology is able to make any protein, whether traditional or analogue, look and taste fried with a steam baking process. The result is an improved nutritional profile, resulting in approximately 60% less fat in the coating of the products. Smart Food Tek has two patents and trade secret recipes and preparation instructions covering its unique technology.
As a group, the above portfolio companies have developed or licensed 51 intellectual properties to empower them to provide proprietary products with a competitive advantage in the large markets they participate in.
Tekcapital PLC's Stock Price Performance
As on 18 August 2020, Tekcapital PLC's stock price was last reported at GBX 10.66, giving a return of over 90 per cent on a YTD basis. The 52 weeks low-high range has been recorded at GBX 4.00 GBX 20.00. The company's market capitalisation (Mcap) at the time of reporting stood at around £8.78 million.
(Source: Thomson Reuters)