Key Takeaways:
- Agronomics Limited reported a 4% increase in Net Asset Valuation (NAV) per share as of 30 September 2023.
- The company’s share price was at a 40% discount to the NAV, continuing a trend of trading below NAV over the past year.
- Significant funding rounds were closed during the quarter, including a €30 million round for Meatable and a £2.3 million round for Clean Food Group.
- Agronomics has a strong cash balance and has initiated a share Buyback Programme, with no current plans to raise capital.
- The company’s investments in cellular agriculture companies have shown promising internal rates of return (IRRs), with Meatable and Clean Food Group as highlighted examples.
Agronomics Limited, a pioneer in the cellular agriculture investment sector, has announced a notable increase in Net Asset Valuation (NAV) per share, marking a positive trend despite broader economic challenges. As of 30 September 2023, the NAV per share rose to 16.48 pence, a 4% uplift from the 15.80 pence reported on 30 June 2023. The company’s net assets stand at £164 million, with £140 million invested in various ventures and £24 million in uninvested cash and short-term deposits.
Market Position and Share Price
The share price at the close of the quarter was 9.80 pence per share, which represents a 40% discount to the NAV. This discount aligns with the average 39% discount observed over the last 12 months, suggesting a consistent undervaluation of the company’s shares in the market.
Leadership’s Perspective
Richard Reed, the Chairperson of Agronomics, expressed satisfaction with the company’s trajectory, particularly highlighting the successful closure of funding rounds for portfolio companies such as Meatable and Clean Food Group. Meatable secured a €30 million investment, with Agronomics playing a leading role, while Clean Food Group completed a £2.3 million funding round to commercialize its fermentation-derived palm oil alternative.
Investment Successes
The company’s strategic investments have yielded impressive returns, with Meatable’s valuation providing a gross internal rate of return (IRR) of 22.31% and Clean Food Group’s IRR reaching a staggering 385%. These figures underscore the potential profitability and impact of cellular agriculture as an industry.
Share Buyback Programme
In addition to these investment milestones, Agronomics has embarked on a share Buyback Programme with a budget of up to £3 million, signaling confidence in its financial stability and prospects. The repurchased shares are to be canceled or used to cover obligations under share-based remuneration arrangements.
Industry Impact and Future Outlook
Agronomics’ focus on cellular agriculture — producing agricultural products from cell cultures rather than whole plants or animals — positions it at the forefront of a transformative industry. The company’s portfolio not only demonstrates financial understanding but also a commitment to sustainable and innovative food production technologies.
Image provided by Clean Food Group
