‘Demographic Trend’ Investing Company

Quoted on the AIM Market (AIM) of the London Stock Exchange (LSE), Limitless Earth Plc is an investing company with a particular focus on sectors where changing demographics are important drivers of growth. The directors have extensive contact bases and many years of experience in setting up, managing and growing businesses across a wide range of sectors, including health and wellness, energy, media, real estate, finance, internet and leisure. Limitless has so far made four investments, all of which are privately-held (Exogenesis Corporation, Chronix Biomedical, V-Nova and Saxa Gres SPA), and with all the investments offering significant growth opportunities, we classify Limitless Earth shares as a growth stock.

Business Operations

Its first investment, Chronix Biomedical, is a medical diagnostic company that develops blood tests for cancer detection. Through a simple blood sample, its tests detect mutations of DNA fragments in blood plasma, which are indicative of cancer. Its second investment, V-Nova, is a technology company that has developed a data compression software that enables data and video to be transported, stored and secured with greater compression, faster and more cost-effectively. Its technology enables ultra-high definition (UHD) television owners to finally receive ultra-high definition content over existing networks. Saxa Gres SPA, its third investment, is a high-end ceramic manufacturer that has developed an innovative process for making porcelain stoneware tiles for domestic and commercial use by blending ashes from industrial waste incinerators with clay (excavated from the company’s wholly owned quarry) and other natural components, according to a full circular economy framework. Its fourth investment, Exogenesis Corporation, is a technology company that is developing and commercializing a surface modification technology that, amongst many things, improves the safety and efficacy of implantable medical devices, and enables manufacturing of next generation semiconductor chips.

Financials

As at 31st July 2016, net assets stood at £2.48m (H1 FY15: £2.64m), consisting of cash of £1.24m (H1 FY15: £2.67m) and investments of £1.30m (H1 FY15: zero). Post period-end, the company invested a further €350,000 investment in Saxa Gres.  

Valuation

If Limitless Earth traded on a similar premium to net assets to our chosen peers, its share would command a price of 7.3p, which compares to NAV of 3.9p and the current share price of 3.63p. Key risks include the failure of one of its investments. However, we feel that this risk will be further mitigated as Limitless Earth looks to hold a large and diverse range of investments.