Eleven Capital 2024 Q2 review

• Eleven Capital recorded BGN 2,550 th total revenue for H1 2024. The income was split nearly evenly from contributions from net reevaluations of their investments, which added BGN 1,222 th to the portfolio and dividends in the amount of BGN 1,328th.
• 11C received BGN 1,328 th as dividend from EnhanCV. Additionally, the company received a dividend after Q2 (on 07.08.2024) from BusinessMap, the developer behind Kambanize, in the amount of BGN 471 th, which will appear in the Q3 and annual financials.
• The management expenses decreased 15% to BGN 157 th due to decrease in compensation to the staff at audit committees which offset the increases for market-making, investor relations and accounting services.
• Out of 26 companies in the portfolio, the 5 biggest form 77.7% 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 20% to BGN 6,714 th, NovaLogiInk – growing 24% to BGN 2,072 th, TaxiMe – growing 22% to BGN 2,128 th, and Melissa Climate growing 4% to BGN 4,126th. 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 15 from their annual report, we can make the following conclusions:
• 85% of the portfolio value or BGN 11,001 th was derived from the purchase price of investments or offers of more than 12 months before the end of the year. 16.38% of the portfolio value or BGN 6,714 th came from price of investments or offers within the last 12 months. 46.21% of the portfolio value or BGN 18,929 th was derived on the basis of market peers comparisons. 10.55% 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 – an already listed company on the Bulgarian Stock Exchange. The drone maker managed to raise USD 40mln in Q1 2023 from SDF (Strategic Development Fund of UAE) and had a grant from the European Innovation Council for EUR 2.5mln. Оn 19.03.2024 they secured the second round, which was for EUR 10mln in exchange for equity ownership in the company. As a result of the requirements for it, they had to change the ownership to a Ireland based subsidiary. 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. Under the terms of the agreement, Dronamics will be able to carry out proof-of-concept (POC) flights for postal and express business delivery services in the UAE using at least one drone aircraft by 2024. Additionally, on 29.11.2023 the company took another strategic step – they signed the world’s first cargo drone interline agreement 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.

The full report can be downloaded here.