Tech growth fund Bailador Technology’s [ASX:BTI] share price was rising more than 3% after releasing its interim 1H FY23 results.
For the period ending December 2022, the company reported $5.2 million in shareholder returns, delivering on its promise of return profits to investors.
BTI’s shares outperformed the S&P All Technology Index more than 21% over the last 12 months.
So far in 2023, the BTI stock is up 11%, at $1.34 a share:
www.TradingView.com
Bailador’s interim half-year highlights
The company was fanning shareholder flames earlier today when it announced it’s provided $5.2 million back to its shareholders.
The cost of returning its proceeds to shareholders has resulted in a net loss of the same amount from last year when the company posted $35.7 million in profit.
Interim dividends of 3.5 cents a share, fully franked, deliver BTI’s promise of an ongoing dividend commitment, representing annualised yield of 5.4% and a 7.7% gross-base yield.
Through this, the company moved down 7% a share, though, its portfolio value remains conservative compared with listed comparables.
Over the period, Bailador’s financial assets and marketable securities decreased $5.8 million, explained by valuation changes across five of its eight main portfolio companies, like SiteMinder (portfolio value of 39%), in which share prices declined 13.4% to $3.04.
Across its seven main investments, the company gained $316 million in revenue — an increase of 72% in portfolio growth in the half year — this also contributed to a 61% gross margin and 88% in recurring revenue.
Bailador stated there were gains of $1.3 million (2.2%) in private companies, such as InstantScripts and Access Telehealth.
Co-founder and Managing Partner David Kirk stated:
‘The Bailador portfolio has performed very well in the first six months of the 2023 financial year. In a period of significant declines in information technology company valuations, the BTI portfolio valuations have held up strongly. Our travel and healthcare investments are particularly well-placed for continued strong growth and we expect to see more attractive opportunities to make new investments in the months ahead.’
Bailador watches markets and maintains conservatism
Overall, the company’s portfolio movement was mostly flat, due to the company prioritising investments in InstantScripts and Rezdy.
Market corrections in publicly traded tech companies have forced Bailador to maintain a conservative portfolio.
Bailador maintains a solid position with net cash of $120 million and says it will use this balance to take advantage of any additional investment opportunities, such as its investment in InstantScripts and Rezdy
In January alone, the group slotted another $3.1 million in Access Telehealth, and invested further into Rezdy with another half a million.
The company pointed out it has outperformed the the S&P All Technology Index through the year, and says a combination of its sound cash balance and conservative trading style should generate steady premium returns in the near future.
Source: BTI
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