Halifax, Nova Scotia--(Newsfile Corp. - April 18, 2022) - Torrent Capital (TSXV:TORR) ("Torrent" or the "Company") reports an increase in net asset value ("NAV") of $25.5 million ($1.06 per share) to $27.4 million ($1.13 per share) during 2021, representing an increase of 6.6% year over year.
|
final return |
Capital Torrent |
TSX Small Cap Index |
S&P 500 |
|
12 months |
6.6% |
18.2% |
27.7% |
|
24 months |
87.8% |
30.0% |
47.5% |
|
36 months |
158.2% |
46.7% |
90.1% |
|
Net return per year |
|||
|
2021 |
6.6% |
18.2% |
27.7% |
|
2020 |
76.1% |
10.0% |
15.5% |
|
2019 |
37.5% |
12.8% |
28.9% |
|
2018 |
33.4% |
-20.1% |
-6.2% |
|
2017* |
29.8% |
5.9% |
10.3% |
|
From the beginning |
|||
|
Cumulative Return |
346.2% |
24.1% |
96.7% |
|
Compound annual return |
39.4% |
4.92% |
16.19% |
*6-month period from the date the Company was fully invested on June 30, 2017.
2021 year-end highlights include:
- NAV per share of 1.13, an increase of 6.6% year-on-year from a NAV per share of 1.06 on December 31, 2020.
- Realized gain on investments of $3,475,437 for the year ended December 31, 2021 compared to realized gains on investments of $7,244,237 for the year ended December 31, 2020.
- Unrealized loss on investments of $299,420 compared to unrealized gains on investments of $7,312,662 for the year ended December 31, 2020.
- An accumulated return of 346.2% since the launch of Torrent as an Investment Issuer on June 30, 2017, which represents a compound annual rate of return of 39.4%.
- Appointment of Mr. Wayne Myles and Mr. Carl Sheppard to the Company's Board of Directors, effective November 30, 2021.
2021 was a year dominated by reflation trading as markets refocused on corporate fundamentals and value in light of cost pressures in the system. Commodity-related investments performed well, with metals, mining and energy among the best performers. The Torrent Portfolio returned 6.6% for the year, despite the decline in some of the key sectors of the company's portfolio, including Technology and Clean Tech.
WildBrain Ltd. outperformed the Torrent portfolio with a share price increase of 92.2% in 2021. Wildbrain has significantly improved its financial flexibility and cash generation, which is restoring confidence to the investment markets. capital. This was further demonstrated by several analysts' share price improvements throughout the year. The company has seen revenue and earnings growth through 2021 combined with an improved balance sheet. Torrent remains confident that Wildbrain will continue its recovery through 2022 as the company further monetizes its intellectual property and delivers on its content strategy.
Kneat.com Inc. ended 2021 with a 40.4% share price increase in 2021. Kneat graduated from TSX during the year and continued to deliver rapid growth for its SAAS product. Annual recurring revenue for the year was $13.1 million, an increase of 174% year over year. Kneat also closed a $22 million purchased deal financing in the second quarter of 2021, putting it on solid financial footing as it continues to scale. Torrent is confident that Kneat is well positioned to deliver on its plans for rapid organic growth over the next year.
Cleantech stocks faced a significant pullback, falling by an average of 57.8% in 2021. Despite this decline across the sector, Torrent's cleantech investment portfolio held up comparatively well with a loss 9.4%. Although the sector faced a multiple contraction due to considerable investment inflows in 2020, the cleantech sector continues to show high growth potential as secular tailwinds spur innovation. Torrent's cleantech portfolio is made up of high-quality companies that have the potential for long-term profitable growth. Torrent has a long time horizon in this sector and remains bullish for the rest of 2022 and beyond for cleantech and ESG.
Torrent's flexible mandate and ability to diversify allow the Company to reposition its portfolio to reflect changing sentiment in the capital markets. Torrent currently focuses on companies that are in a strong working capital position, have strong value propositions, and operate in market segments with deep secular trends.
"Markets for early stage issuers remained challenging in 2021 due to a multitude of macro forces that increased market volatility, particularly towards the end of the year. Rising interest rates and inflation create challenging markets for early-stage companies as future earnings are discounted at higher rates, weighing on valuations.That said, Torrent is well-positioned for the current environment, and we maintain a positive outlook for 2022 as we continue to navigate cautiously in the markets from a growth perspective," said Wade Dawe, Chairman and Chief Executive Officer of Torrent.
About Torrent Capital
Torrent is a publicly traded investment issuer that invests in securities of publicly traded and private companies. The Company invests in companies that are expected to experience rapid growth or are trading at a discount to their intrinsic value. Torrent offers investors the potential for above-market returns while providing transparency, daily liquidity, and a modest fee profile compared to competing investment products. Currently, the Company is actively investigating investment opportunities in the clean technology sector.
For more information contact:
Scott Gardner
Head of Investments
(647) 446-7474
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This press release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while believed to be reasonable, are subject to known and unknown risks, uncertainties and other factors that may cause actual results and future events to differ materially from those expressed. or implicit. for such forward-looking statements. There can be no guarantee that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Torrent disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. The reader is referred to the Company's annual financial reports for a discussion of risks and uncertainties.
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