Eleven Capital – 11C – 2024 annual review

2024 annual results:

• Eleven Capital recorded BGN 11,138 th total revenue for 2024. The majority of the income came from Net gains from changes in investments value in the amount of BGN 9,339 th, which was 15.7% lower than 2023.
• The remaining BGN 1,799 th was dividends from 2 companies in its portfolio. BGN 471 th came from Businessmap and BGN 1,328 th was from EnhanceCV.
• The management expenses decreased marginally to BGN 361 th (from BGN 362 th). The bigger difference, however, came from the compensation to the executive director in the amount of BGN 431 th.
• Out of 25 companies in the portfolio, the 5 biggest form 81.2% of its worth. The majority of the companies focus on IT or hardware with IoT functionalities. The fund is targeting primarily exits based on substantial capital gain from valuation growth rather than revenue from dividends from established income generating enterprises.
• On the GSM on 25.06.2024 the company approved the 2023 dividend, of BGN 0.60 per share for a total of BGN 1,38mln, representing 3.17% dividend yield.
• The largest contribution to the portfolio growth came from EnhanCV, growing 134.5% to BGN 13,155 th, Sensika Technologies- growing 28.4% to BGN 8,623 th, NovaLogiInk – growing 61.6% to BGN 2,691 th, Melissa Climate growing 24.3% to BGN 4,955th and TaxiMe – growing 45.7% to BGN 2,533 th. The financial reports and the notes associated with it, as well as the announcements from Eleven Capital, however, do not show directly what stays behind those valuations and why they have changed with the mentioned amounts. From disclaimers on Note 14 from their annual report, we can make the following conclusions:
• 4.36% of the portfolio value or BGN 2,140 th was derived from the purchase price of investments or offers of more than 12 months before the end of the year. 2.75% of the portfolio value or BGN 1,349 th came from price of investments or offers within the last 12 months. 84.08% of the portfolio value or BGN 41,273 th was derived on the basis of market peers comparisons. 8.81% of the portfolio value or BGN 4,323 th was derived from capital investments (including SAFE instruments) based on amortized cost.
• The largest expected gain in the near future is from one of their main investments – in Dronamics Global. The drone maker raised USD 40mln in Q1 2023 from SDF (Strategic Development Fund of UAE) and had a grant of EUR 10mln in exchange for equity ownership in the company from the European Innovation Council. Оn 19.03.2024 they secured the second round for EUR 10mln. The company conducted series of successful tests and have acquired important aviation licenses. On 16 October 2023 they signed a letter of intent (LOI) with Dubai-based Emirates Post Group to run a pilot project on same-day middle-mile and long-range deliveries in the United Arab Emirates. On 29.11.2023 the company took another strategic step – they signed with Qatar Airways Cargo, the world’s largest airline cargo carrier. Through the agreement, Dronamics can offer services from any of its drone ports, which include major airports in Singapore, China and USA. Steps to be taken- first commercial flight, contracts for production, expansion of the network of drone ports and another Series A financing round. Currently valued at BGN 68.5mln, the company is expected to increase in value to BGN 391.2mln.

Full report can be viewed here.