Revenue Soars, But Losses Deepen: Unpacking EMV Capital’s 2024 Results
EMV Capital’s preliminary results for 2024 present a classic growth-stage conundrum: impressive top-line expansion paired with deepening losses. The deep tech and life sciences investor reported a 67% surge in core revenue to £2.0 million, driving group revenue to £2.5 million. Yet losses widened to £3.7 million from £2.9 million in 2023. Let’s dissect what’s really happening beneath these headline numbers.
Financial Snapshot: Growth vs. Profitability
The revenue story is undoubtedly strong:
- Core revenue surge: £2.0 million (up 67% YoY), covering 58% of core operating costs
- Martlet’s contribution: £0.5 million in new recurring fund management fees
- ProAxsis growth: £0.5 million revenue (up from £0.2 million)
But the loss expansion reveals strategic choices:
- Core operations loss: £1.5 million (2023: £1.1 million)
- Portfolio company drag: £2.2 million loss from ProAxsis and Glycotest
- Non-cash impairments: £0.6 million for ProAxsis
Critically, EMV maintains a cash position of £1.0 million (up from £0.2 million) with £1.4 million in liquid securities. December’s £1.5 million share placing at a 15% premium provided crucial breathing room.
Assets Under Management: The Engine Roars
Here’s where EMV’s strategic pivot shines. Total AUM jumped 33% to £98.5 million, with further growth to £103 million by May 2025. This expansion stems from two key moves:
Direct Holdings: Selective Bets
- Fair value up 6% to £37.7 million despite public market headwinds
- Private portfolio (£36.3 million) offsetting NASDAQ-listed PDS Biotech’s decline (now £1.4 million)
- Capital-efficient investments: £1.9 million deployed (just £0.1 million in cash)
Fund Management: The Game Changer
- Third-party AUM soared 58% to £60.8 million
- Martlet Capital portfolio: £24.5 million added post-May 2024 appointment
- EIS Fund: £1.3 million under management
The Martlet acquisition transformed EMV’s model overnight – adding 40+ companies to its portfolio and establishing a recurring revenue stream with minimal cash outlay.
Portfolio Dynamics: Winners, Pivots, and Challenges
EMV’s portfolio now spans 70+ companies, with several approaching inflection points:
- Standout performers: DeepTech Recycling (£1.8m FV), Wanda Health (£1.4m), Vortex Biotech (£3.5m)
- Turnaround plays: Q-Bot (pivoting to robot-as-a-service), PointGrab (sales acceleration under new CEO)
- Clinical progress: Glycotest advancing liver cancer diagnostics, PDS Biotech initiating Phase 3 trials
Notably, the “venture building programme” continues delivering exceptional returns – generating £8.5 million in fair value uplift from just £0.9 million invested across five companies.
Strategic Shifts: Building an Institutional Platform
Three strategic pillars define EMV’s evolution:
- Fund management scale: Martlet acquisition created immediate critical mass with £24.5m AUM
- Revenue diversification: Recurring fees now complement advisory and value creation income
- Capital discipline: Using shares for investments (Q-Bot, Wanda) and supplier payments
The full rebrand to EMV Capital in September 2024 cemented this transition from holding company to integrated VC platform.
Risks and Runway: The Road Ahead
Management acknowledges near-term challenges while projecting confidence:
- Funding needs: £2.8m required through June 2026 (including subsidiaries)
- Execution risks: Portfolio companies like ProAxsis and Q-Bot remain in turnaround mode
- Macro headwinds: Subdued IPO/M&A markets delay exit opportunities
Yet CEO Ilian Iliev sees “meaningful opportunity amid disruption,” particularly in defence, industrial reshoring, and healthcare innovation – sectors where EMV has concentrated exposure.
The Bottom Line: Building for the Upswing
EMV Capital is executing a textbook platform build during arguably the toughest venture environment in a decade. The 67% revenue growth and 33% AUM expansion demonstrate real traction in their model shift toward fund management and recurring fees.
While losses are widening and portfolio markdowns (notably PDS and Q-Bot) hurt, the strategic repositioning looks sound. The key question for investors: Can EMV reach cash flow breakeven before portfolio companies demand further support? With several portfolio stars approaching commercialization and £103m AUM generating fees, the 2025 inflection point could be dramatic.
One to watch closely – especially if the promised “cohort of outsized venture returns” materializes in their defence and deep tech sweet spots.
