Schoold and Yooya smash expectations
​One of FastForward's many attractions is that it provides investors with direct access to some of the most promising, early-stage technologies being developed anywhere on the planet. Additionally because its 9 investee companies are valued at historical cost in the statutory accounts, rather than market prices, then we believe there could be substantial upside hidden in the portfolio - perhaps even multiples of the 7.8p/share net assets figure reported at the 31st March year end.
FastForward Innovations (FFWD) today released a Portfolio company update, including positive news on four of portfolio holdings: Yooya, Leap Gaming, Schoold and SatoshiPay. The company confirmed in the announcement that growth at both Schoold and Yooya was "far beyond our expectations". Today's update included news that:
Schoold's (12.3% owned by FFWD) innovative university career counselling App, which is already the market leader in terms of number of US student downloads, has just surpassed 1.3m user installations. We believe this further validates Schoold's exponential adoption rates, mobile expertise and success in engaging with this tech-savvy, much sought-after and highly influential demographic.
Yooya (15% stake), the Chinese online content streaming platform, is trading very strongly too - not only receiving >700m video views in July (up 300% YoY), but also managing to double revenues sequentially in Q2'16 vs Q1. Yooya has recently smashed its own stretching target of 11bn lifetime video views, 5 months ahead of schedule.
Under International Accounting Standards, none of this upside can yet be factored into FFWD's formal net asset value (NAV). Instead all of its 9 investments are stated at historical cost, which we reckon is materially below the actual worth of these stakes on the open market, particularly for Schoold and Yooya. We estimate that the proforma Net Asset Value is around £10.5m, equivalent to 8.0p/share post forex movements, YTD investments and normal cashburn. Granted this is less than today's shareprice of 12.5p, yet equally the NAV could climb quickly, reflecting the quality/scale of FFWD's M&A pipeline and progress being made by its investments.
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