Tern (LSE:TERN), the AIM-listed investor focused on Internet of Things technology businesses, reported a total comprehensive loss of £5.1 million for the year ended 31 December 2025, widening from a £3.8 million loss in 2024.
The primary driver was a £4.1 million net reduction in the fair value of investments held at fair value through profit or loss, pulling the portfolio's carrying value from £10.7 million to £7.3 million and net assets down to £6.9 million from £10.7 million a year earlier.
Cash fell sharply to £0.05 million from £0.4 million, with the company deploying approximately £0.7 million into its portfolio during the year alongside funding its own operating costs.
Administration expenses fell 15.7% to £1.0 million, continuing a cost-reduction programme that had already delivered roughly 30% savings between 2023 and 2024.
Tern's three core holdings, Device Authority (valued at £3.9 million), Talking Medicines (£1.7 million) and FundamentalXR (£1.6 million), each remain at pre-exit stages, with no portfolio realisations completed in 2025 or since.
The company extended convertible loan note financing to Talking Medicines, with the total CLN holding reaching approximately £0.79 million after a further £270,000 instrument issued in May 2026; notes carry a 10% annual interest rate and convert at a 20% discount on an exit or qualifying fundraise.
Tern's board said the absence of exits reflects timing rather than a deterioration in portfolio progress, and convened a general meeting for 9 July to adopt the annual accounts.
