Tern (LSE:TERN) reported a loss for the six months to 30 June that fell 60% compared with the same period in 2025, as the AIM-listed investor in Internet of Things technology businesses tightened cost control and selectively backed its portfolio.
Net assets rose to £7.4m at the period end, up from £6.9m at 31 December 2025.
The investment portfolio increased to £7.7m from £7.3m, reflecting £0.3m of follow-on investments alongside modest fair-value movements.
Net asset value per share stood at 0.9p, down from 1.0p at the last year-end, diluted by shares issued in the period's fundraisings.
Administrative expenses fell approximately 15% to £0.5m, from £0.6m a year earlier.
Cash and cash equivalents stood at £0.1m, up from £0.05m at 31 December 2025, still a thin cushion.
Tern's three core holdings were valued at £4.1m for Device Authority, £2m for Talking Medicines and £1.6m for FundamentalXR, all higher than or level with 31 December 2025 valuations.
The Device Authority increase followed a $280,000 (£0.2m) investment in new convertible loan notes, while Talking Medicines' rose after a further £270,000 of convertible loan notes, comprising £48,000 of new cash and cancellation of £87,000 owed to Tern.
Aggregated annual recurring revenue across principal portfolio companies fell 37% year-on-year, worse than the 17% decline in the same period in 2025, as the group cited constrained customer budgets and extended sales cycles; portfolio headcount fell 39% in response.
"Improved financial performance, strengthened liquidity, the repayment of short-term debt and continued portfolio development initiatives provide a platform from which we can pursue our objective of delivering value for shareholders over the medium term," said interim non-executive chair Jane McCracken.
During the period Tern raised approximately £0.9m before expenses through two open offers and a placing.
Subsequent to the period, the company raised a further £0.45m placing and an open offer of approximately £0.5m, and repaid in full the outstanding balance of its short-term loan facility.