28th Sep 2020 18:17
Half-year reportOctopus Titan VCT plc ("Titan" and "the Company")
Unaudited half-yearly report for the six months ended 30 June 2020
Company number: 06397765
Today the Company announces the half-yearly results for the six month period to 30 June 2020 as below.
These results were approved by the Board of Directors on 28 September 2020.
You may view the Half-yearly Report in full at www.octopusinvestments.com shortly. All other statutory information will also be found there.
Octopus Titan VCT plc is a venture capital trust ('VCT') which aims to provide shareholders with attractive tax-free dividends and long-term capital growth by investing in a diverse portfolio of predominantly unquoted companies. The Company is managed by Octopus Investments Limited ('Octopus' or 'Portfolio Manager') and Octopus AIF Management Limited (the 'Manager').
Financial Summary
| Six months to 30 June 2020 | Six months to 30 April 2019 | Year to 31 December 2019 | |
| Net assets (£’000s) | 906,218 | 828,061 | 905,840 |
| (Loss)/profit after tax (£’000s) | (26,016) | 22,016 | 67,280 |
| NAV | 89.5p | 92.4p | 95.2p |
| Cumulative dividends paid since launch | 79.0p | 74.0p | 76.0p |
| Total Value | 168.5p | 166.4p | 171.2p |
| Total Return* | (2.7)p | 2.3p | 7.1p |
| Total Return %** | (2.8)% | 2.5% | 7.6% |
| Dividends paid in the period | 3.0p | 3.0p | 5.0p |
| Dividends declared in respect of the period*** | 2.0p | 2.0p | 3.0p |
*Calculated as the change in NAV in the period plus dividends paid in the period.
**Calculated as total return/opening NAV.
***This will be paid on 11 December 2020 to shareholders on the register as at 27 November 2020.
Chairman's Statement
I am pleased to present the unaudited half-yearly report for Octopus Titan VCT for the six months ended 30 June 2020.
We were delighted to have raised over £124 million before expenses in our fund raising which closed to new applications on 09 April 2020. This level of support from our investors is particularly appreciated in the face of the Coronavirus pandemic which has dominated the macro environment in 2020 so far. Our net assets now total £906 million demonstrating how important the VCT scheme is in helping create and develop the new technology businesses on which the UK’s future depends.
As has become typical following fund raising, we now have significant un-invested cash, totalling over £237 million as at 30 June 2020 (compared to £282 million as at December 2019). This gives us confidence in our ability to support our existing portfolio of more than 80 high-growth businesses in the short to medium term as well as make new investments. Despite the macro environment, many of our businesses have thrived during this challenging period, while others may need further funding to help weather the storm Coronavirus continues to present. In the six-month period to 30 June 2020, we have utilised a total of £121 million of cash, comprising £53 million in new and follow-on investments, £30 million in dividends, £7 million in share buybacks and £31 million in running costs (of which, £18m was the 2019 performance incentive fee). Together, this accounted for the deployment of 43% of the cash or cash equivalents we had available as at December 2019. Following this period of investing, we are confident that the majority of our investee companies have sufficient capital to see them through the medium-term disruption caused by Coronavirus.
Since 31 December, Octopus Titan VCT has felt the effects of the Coronavirus pandemic and the full consequences upon our Company may not be fully identified for some time yet. However, we reviewed the portfolio in March and April in advance of share allotments relating to the most recent share offer, and this led to our announcing a reduction in the NAV per share from 95.2p as at December to 91.0p at 2 April 2020.
The Net Asset Value at 30 June 2020 was 89.5p, a net decrease of 2.7p per share from 31 December 2019 and a net increase of 1.5p per share from 2 April (adjusting both for the payment of a second interim dividend later in April of 3.0p per share). The Total Value (NAV plus cumulative dividends paid per share since launch) at the end of the period is 168.5p. This return brings the tax-free annual compound return to original shareholders to 4.9% since Titan’s launch in 2007.
In March 2020, the International Private Equity and Venture Capital Guidelines were updated with special valuation guidance in relation to Coronavirus. This stated that fair value is based on what is known and knowable at the measurement date, and our valuations take account of the new guidance.
As you will appreciate, the half year results are unaudited. However, in light of the Coronavirus related significant uncertainties surrounding the valuation of unlisted companies, Octopus and the Board have also engaged our auditors, BDO, to undertake a review of the valuations of the largest 25 holdings by value, similar to the review process conducted across the portfolio at the previous year end, and we have considered their comments in determining the NAV at 30 June 2020.
Investment Portfolio Review
Unfortunately, we are reporting a net decrease in the value of the portfolio of £15.7 million during the period, excluding additions and disposals, representing a 2.4% loss on the value of the portfolio at the start of the period.
We set out below the cost and valuation of the top ten holdings which account for over 39% of the value of the portfolio. In total the portfolio now consists of over 80 companies, of which three companies mentioned below have been added since 30 June representing a further investment of £9.0 million.
| Investments | Investment cost at 30 June 2020*(£’000) | Valuation at30 June 2020(£’000) |
| Amplience Limited | 13,499 | 47,428 |
| Zenith Holding Company Limited** | 8,963 | 36,454 |
| DePop Limited | 8,766 | 32,666 |
| Bought By Many Limited | 9,978 | 31,419 |
| Wave Optics Limited | 13,576 | 23,078 |
| Chiaro Technology Limited (trading as Elvie) | 6,417 | 21,983 |
| Cazoo Limited | 5,000 | 21,250 |
| Permutive Inc. | 9,839 | 20,947 |
| Big Health Limited | 8,269 | 14,107 |
| Streethub Limited | 9,233 | 13,871 |
| Total | 93,540 | 263,203 |
* Investment cost reflects the amount invested into each investee company from Titan's 1 - 5 before the 2014 merger and from Titan after the merger. This is different to the book cost which includes the holding gains and losses on assets which transferred from Titan's 1, 3, 4 & 5 to Titan 2 (now Titan) during the merger, as Titan purchased these assets at fair value.
**Zenith Holding Company holds shares in Calastone and Secret Escapes inherited from Titans 1, 2 and 3.
During the six months to 30 June 2019, 33 investee companies collectively drove an uplift of £55.0 million. In particular, Chiaro, Depop, Bought By Many and Streetbees have all achieved increases in value. Conversely, as is to be expected, particularly given the major impact the pandemic has had on the global economy, 24 companies saw a collective decrease in valuation of £70.7 million; this includes Secret Escapes, Conversocial, Faction and Property Partner where performance has been more challenging. In some cases, this decreased performance is almost entirely due to the impact of the pandemic, while in others there are ongoing trading difficulties to overcome. Our Manager believes that a number of these businesses have the potential to overcome the issues they face and return to their ambitious growth plans; they are, therefore, continuing to work with them to achieve this.
Given the fundamental change brought on by Coronavirus, Octopus carried out a full re-budgeting and re-forecasting process with the entire portfolio during the period. Swift and considered actions from the management teams have allowed these companies to weather a prolonged period of disruption. Measures to extend their cash runways, combined with additional funding where appropriate, have meant that we are now in a position where our portfolio is arguably as well capitalised as it has ever been.
In the same period, Titan has benefitted from the acquisition of UltraSoC by Siemens in June. UltraSoC is a pioneering company that delivers monitoring and self-analytics technology for use in the silicon chips (SoCs) that power today’s consumer electronic, computing and communications products. We first invested in UltraSoC in 2010, participated in a number of subsequent funding rounds, and the realisation yielded proceeds of £11 million (compared to a cost of £9 million), a small proportion of which is deferred and expected to be paid within 18 months. We are pleased to be able to add this success to our history of realisations.
Turning to investments made during the period, £23.2 million was invested into 6 new companies (listed below) and £29.6 million was invested into 16 follow-on investments as listed below. As anticipated by Octopus, given the volume and quality of investment opportunities available in the UK and Europe, this continued high investment rate into new companies, while also providing ongoing financial support to the existing portfolio, is encouraging to see.
We have been pleased to welcome the following companies to the portfolio during the period:
Digital Therapeutics (trading as QuitGenius): a high-intensity digital behaviour change program that helps employees and their family members kick addictive behaviours; Quantum Motion Technologies: A quantum computing company founded to commercialise world-leading silicon spin technology and architectures developed at UCL and Oxford University;Skew: Aiming to become the leading provider of financial data, tools and services related to crypto assets for sophisticated financial institutions;Stackin’: A personal finance service focused on the under-served, that lets anyone save and invest from the ground up;TaxScouts: Combining online automation with certified human accountants to help people prepare their self-assessment tax submission for a flat, fixed fee; andVitesse: a market-leading settlement and liquidity management system to hold funds and deliver international payments globally using domestic, in-country processing.Furthermore, since 30 June 2020, three more new and four follow-on investments have been made, amounting to £17.3 million. The new investments were into Thought River (a contract pre-screening automation tool targeted toward in-house legal teams and private law firms), Ori Biotech (a full stack platform for scalable biomanufacturing of cell and gene therapy), and Katkin (personalised, fresh and perfectly portioned meal plans for cats).
Dividends
As shareholders will know, our ambition is to pay an annual dividend of 5.0p per share, supplemented by special dividends when appropriate and in the case of particularly profitable realisations. Following careful consideration, and despite all of the challenges of Coronavirus, I am pleased to confirm that your Board has now decided to declare an interim dividend of 2.0p (2019 2.0p) per share in respect of the current financial year, which will be paid on 11 December 2020 to shareholders on the register as at 27 November 2020.
As shareholders will have seen in our announcement on 30 March, we suspended the Dividend Reinvestment Scheme (DRIS) in relation to the interim dividend in respect of the 14 month period to December 2019 in view of the market conditions and potential valuation uncertainties surrounding Coronavirus. The Board has decided to reinstate this facility in respect of the interim dividend declared in this report. To clarify, this means if you are one of the 28% of shareholders who take advantage of the DRIS, your dividend will be receivable in Titan shares. This is an excellent way for those of you who prefer the capital value of your investment to grow to achieve your investment objectives.
Shareholders will also note that it is expected the next share buyback will take place in late October 2020, following the announcement of these interim results.
VCT Qualifying Status
PricewaterhouseCoopers LLP (PwC) provides both the Board and Octopus with advice concerning ongoing compliance with HMRC rules and regulations concerning VCTs. The Board has been advised that Titan continues to be in compliance with the conditions laid down by HMRC for maintaining approval as a VCT.
As at 30 June 2020, over 96% of the portfolio (as measured by HMRC rules) was invested in VCT-qualifying investments as reviewed and confirmed by PwC, significantly above the 80% current VCT-qualifying threshold.
Principal Risks and Uncertainties
The Board continues to regularly review the risk environment in which Titan operates. There have been no significant changes to the key risks which were fully described on pages 9 and 10 of the Annual Report for the year ended 31 December 2019 and the Board does not anticipate there will be significant changes to these risks for the remaining six months of the financial year.
Outlook
The last six months have been a challenging period for many, but thanks to so much support from our shareholders through the most recent fund raise, Titan has been in a position of strength to weather this storm. Octopus Ventures acted swiftly, and ultimately the portfolio has reacted impressively to an unprecedented situation.
As discussed in the Annual Report & Accounts to December 2019, we reduced the NAV per share on 10 March 2020 and again on 2 April 2020 prior to the most recent allotments and buybacks. As is to be expected, a number of our investee companies have been negatively affected by macro events. While it will take time to fully understand the long-term impact of Coronavirus on such businesses, many are already showing signs of recovery.
We continue to believe change can also create opportunity, from which enterprising management teams can reap rewards. We are delighted to see a number of the companies Titan has invested in are also thriving. For example: with people spending more time at home, Patch saw demand for its plants increase by 500%; as physical stores were forced to close, Trouva’s platform proved to be a lifeline for many independent boutiques, enabling 70% of them to continue trading online; Depop, the online fashion marketplace, also benefited from 40% of its community spending more time online and has experienced all-time high revenues as a result; and Elvie, Bought by Many, and Trouva were also recently featured in the Sunday Times Tech 100. In addition, Octopus Ventures has invested (or agreed to invest) into a number of new businesses since December. As always, Octopus Ventures considers each company and opportunity on a case-by-case basis and taking into account a number of factors, which now, of course, includes the potential medium to long-term impact of Coronavirus on the sector the business operates in. The team continues to work closely with the companies in our portfolio to mitigate the impact of the current environment and maximise the chances of success for those able to take up new opportunities.
Looking forward, we now have £228 million in cash and cash equivalents to help us to continue to support the most promising companies in our portfolio, as well as backing the UK and Europe’s pioneering entrepreneurs intent on building world changing businesses. To support this, Octopus is again increasing the Octopus Ventures investment team significantly and adding further operational support to ensure it continues to be able to make new investments and manage the expanding portfolio appropriately.
Alongside this and following the successful introduction of a few key areas of investment focus for technology and tech-enabled businesses in 2018, the team is also adding two new ‘pods’. Consumer and Growth will join Future of Health, Future of Money and Deep Tech to further enhance the team’s ability to attract the best entrepreneurs across a diverse range of sectors, with the aim of backing the next generation of pioneering entrepreneurs. This approach has allowed the team to seek out the best in class opportunities in these specific areas in the most efficient manner, as well as enhance their specialist skills and knowledge. In the meantime, while there have been various challenges, some of which are ongoing, your Board remains positive about the prospects of the existing portfolio and Octopus’s work with them to optimise value for our shareholders. As a result, while the cash reserves of the fund are currently healthy, we have confidence in Octopus’s ability to deploy this in the coming 12-18 months into both new companies and the current portfolio, and therefore, as announced in June, we intend to launch a new fundraise shortly.
We believe that the UK has the opportunity to remain a key entrepreneurial hub in Europe post-Brexit and Coronavirus. VCTs have long provided a compelling opportunity for UK investors to provide funding for such businesses in a tax-efficient way and, with a new government in place, we look forward to their ongoing support for small businesses as well as the VCT scheme.
I would like to conclude by thanking both the Board and the Octopus Ventures team on behalf of all shareholders for their ongoing work and efforts to maximise value for shareholders, despite the macro environment.
John Hustler Chairman 28 September 2020
Investment Portfolio
| Investments | Sector | Investment cost at30 June 2020* (£’000) | Amount invested in the six months ending 30 June 2020(£’000) |
| LHE Holdings Limited (trades as Property Partner) | Fintech and Insurance | 13,600 | - |
| Wave Optics Limited | AI, Robotics & Hardware | 13,576 | - |
| Amplience Limited | Business Services | 13,499 | - |
| Katalyst Inc | Life Science, Health & Wellbeing | 11,924 | 3,155 |
| Permutive Inc. | Business Services | 11,839 | 2,000 |
| Sofar Sounds Limited | Consumer and Social | 10,918 | - |
| Smartkem Limited | AI, Robotics & Hardware | 10,753 | 2,985 |
| Big Health Limited | Life Science, Health & Wellbeing | 10,571 | 2,302 |
| PLU&M limited | Consumer and Social | 10,500 | 3,000 |
| UltraSoC Technologies Limited | AI, Robotics & Hardware | 9,996 | 1,140 |
| Bought By Many Limited | Fintech and Insurance | 9,978 | - |
| Digital Shadows Ltd | Security | 9,702 | - |
| Uniplaces Limited | Consumer and Social | 9,304 | 870 |
| Streethub Limited (trading as Trouva) | Consumer and Social | 9,233 | - |
| Zenith Holding Company Limited** | Consumer and Social | 8,963 | - |
| Ometria Limited | Business Services | 8,800 | - |
| DePop Limited | Consumer and Social | 8,766 | - |
| Appear Here Limited | Business Services | 8,509 | - |
| CurrencyFair Limited | Fintech and Insurance | 8,381 | - |
| Chronext AG | Consumer and Social | 7,708 | - |
| Antidote Technologies Ltd | Life Science, Health & Wellbeing | 7,708 | 1,058 |
| Surrey NanoSystems Limited | AI, Robotics & Hardware | 6,918 | - |
| Stackin Inc | Fintech and Insurance | 6,840 | 6,840 |
| By Miles Limited | Fintech and Insurance | 6,732 | 3,860 |
| Digital Therapeutics | Life Science, Health & Wellbeing | 6,494 | 6,494 |
| Chiaro Technology Limited (trading as Elvie) | Life Science, Health & Wellbeing | 6,417 | - |
| Iovox Limited | Communications and Infrastructure | 6,263 | - |
| Token.IO Ltd | Fintech and Insurance | 6,221 | - |
| Context-Based 4Casting (C-B4) Ltd | Business Services | 6,096 | - |
| Conversocial Limited | Communications and Infrastructure | 6,064 | - |
| Phoelex Ltd | AI, Robotics & Hardware | 6,025 | 4,500 |
| Picsoneye Segmentation Innovation Limited (trading as Pixoneye) | AI, Robotics & Hardware | 5,808 | 1,108 |
| Origami Energy Limited | Communications and Infrastructure | 5,533 | - |
| Artesian Solutions Limited | Business Services | 5,481 | - |
| Seatfrog UK Holdings Limited | Consumer and Social | 5,300 | - |
| Allplants Limited | Consumer and Social | 5,150 | 150 |
| Cazoo Limited | Consumer and Social | 5,000 | - |
| Systum Inc | Business Services | 5,000 | - |
| Elliptic Enterprises Limited | Fintech and Insurance | 4,913 | - |
| OpenSignal Inc | Communications and Infrastructure | 4,862 | - |
| Michelson Diagnostics Limited | Life Science, Health & Wellbeing | 4,795 | - |
| Casual Speakers Limited (trading as Jolt) | Consumer and Social | 4,770 | - |
| Impatients N.V. (trading as MyTomorrows) | Life Science, Health & Wellbeing | 4,705 | - |
| Olio Exchange Limited | Consumer and Social | 4,500 | - |
| The Faction Collective SA (trading as Faction) | Consumer and Social | 4,461 | - |
| Memrise Inc | Consumer and Social | 4,375 | - |
| Secret Escapes Limited | Consumer and Social | 4,256 | - |
| Patch Gardens Limited | Consumer and Social | 4,172 | - |
| Eve Sleep Plc | Consumer and Social | 4,151 | - |
| HeyGleam | Life Science, Health & Wellbeing | 4,000 | - |
| AudioTelligence Limited | AI, Robotics & Hardware | 4,000 | - |
| Positron Technologies Limited | Fintech and Insurance | 4,000 | 4,000 |
| Glofox | Business Services | 3,812 | - |
| Medisafe Project Limited | Life Science, Health & Wellbeing | 3,664 | - |
| Semafone Limited | Communications and Infrastructure | 3,594 | - |
| vHive Tech Ltd | AI, Robotics & Hardware | 3,500 | - |
| Behaviometrics AB | Security | 3,336 | - |
| Dogtooth Technologies Limited | AI, Robotics & Hardware | 3,278 | - |
| Unmade Ltd | Consumer and Social | 3,000 | - |
| Trafi Limited | Communications and Infrastructure | 2,965 | 677 |
| Ecrebo Limited | Business Services | 2,857 | - |
| Mosaic Smart Data Limited | Fintech and Insurance | 2,780 | - |
| Skew | Fintech and Insurance | 2,713 | 2,713 |
| Dead Happy Limited | Fintech and Insurance | 2,700 | - |
| Metrasens Limited | AI, Robotics & Hardware | 2,688 | - |
| Vitesse PSP Ltd | Fintech and Insurance | 2,679 | 2,679 |
| Slamcore Limited | AI, Robotics & Hardware | 2,550 | 1,800 |
| Inrupt Inc. | Communications and Infrastructure | 2,372 | - |
| Fluidly Limited | Business Services | 2,299 | - |
| Streetbees.com Limited | Business Services | 2,086 | - |
| Excession Technologies Limited | Security | 298 | – |
| CRED Investment Holdings Limited | Fintech and Insurance | 2,000 | - |
| Thirdeye Labs Limited | Security | 1,500 | - |
| Mush Limited | Consumer and Social | 1,500 | - |
| Quantum Motion Technologies Limited | AI, Robotics & Hardware | 1,498 | 1,498 |
| Segura Systems Limited | Business Services | 1,470 | - |
| Aire Labs Limited | Fintech and Insurance | 1,332 | - |
| Multiply AI Limited | Fintech and Insurance | 1,283 | - |
| e-Therapeutics plc | Life Science, Health & Wellbeing | 679 | - |
| M10 | Fintech and Insurance | 626 | - |
| Intrepid Owls Limited | Consumer and Social | 550 | - |
| Excession Technologies Limited | Security | 298 | - |
| Phasor Inc. | AI, Robotics & Hardware | 250 | - |
| Total | 443,389 | 52,829 |
*Investment cost reflects the amount invested into each investee company from Titan's 1 - 5 before the 2014 merger and from Titan after the merger. This is different to the book cost which includes the holding gains and losses on assets which transferred from Titan's 1, 3, 4 & 5 to Titan 2 (now Titan) during the merger, as Titan purchased these assets at fair value.
**Owns stakes in Secret Escapes Limited and Calastone Limited.
Income Statement
| UnauditedSix months to 30 June 2020 | UnauditedSix months to 30 April 2019 | AuditedYear to 31 December 2019 | |||||||
| Revenue £’000 | Capital £’000 | Total £’000 | Revenue £’000 | Capital £’000 | Total £’000 | Revenue £’000 | Capital £’000 | Total£’000 | |
| (Losses)/gains on disposal of fixed asset investments | – | (672) | (672) | – | 66 | 66 | – | 15,626 | 15,626 |
| Losses on disposal of current asset investments | – | – | – | – | (368) | (368) | – | (368) | (368) |
| (Losses)/gains on valuation of fixed asset investments | – | (15,680) | (15,680) | – | 35,937 | 35,937 | – | 88,302 | 88,302 |
| (Losses)/gains on valuation of current asset investments | – | (66) | (66) | – | – | – | – | 1,006 | 1,006 |
| Investment income* | 274 | – | 274 | (129) | – | (129) | 1,535 | – | 1,535 |
| Investment management fees | (381) | (7,230) | (7,611) | (303) | (5,745) | (6,048) | (784) | (14,890) | (15,674) |
| Performance fee | – | – | – | – | (5,182) | (5,182) | – | (16,965) | (16,965) |
| Other expenses | (2,418) | – | (2,418) | (2,211) | – | (2,211) | (6,058) | – | (6,058) |
| FX translation | – | 157 | 157 | – | (49) | (49) | – | (124) | (124) |
| (Loss)/profit before tax | (2,525) | (23,491) | (26,016) | (2,643) | 24,659 | 22,016 | (5,307) | 72,587 | 67,280 |
| Tax | – | – | – | – | – | – | – | – | – |
| (Loss)/profit after tax | (2,525) | (23,491) | (26,016) | (2,643) | 24,659 | 22,016 | (5,307) | 72,587 | 67,280 |
| (Loss)/earnings per share – basic and diluted | (0.3)p | (2.4)p | (2.7)p | (0.4)p | 3.5p | 3.1p | (0.6)p | 8.6p | 8.0p |
*Due to write-offs of interest on loan investments, the net loan interest income figure at 30 April 2019 was a negative amount.
· The 'Total' column of this statement is the profit and loss account of the Company; the supplementary revenue return and capital return columns have been prepared under guidance published by the Association of Investment Companies.
· All revenue and capital items in the above statement derive from continuing operations.
· The Company has only one class of business and derives its income from investments made in shares and securities and from bank and money market funds.
Titan has no other comprehensive income for the period.
Balance Sheet
| UnauditedAs at 30 June 2020 | UnauditedAs at 30 April 2019 | AuditedAs at 31 December 2019 | ||||
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Fixed asset investments | 663,587 | 522,249 | 640,109 | |||
| Current assets: | ||||||
| Corporate bonds | 86,456 | – | 80,325 | |||
| Cash at bank | 4,105 | 29,306 | 52,763 | |||
| Applications cash* | 26 | 108 | 5,565 | |||
| Debtors | 5,839 | 3,810 | 2,985 | |||
| Money market funds | 147,114 | 283,034 | 149,210 | |||
| 243,540 | 316,258 | 290,848 | ||||
| Current liabilities | (909) | (10,446) | (25,117) | |||
| Net current assets | 242,631 | 305,812 | 265,731 | |||
| Net assets | 906,218 | 828,061 | 905,840 | |||
| Share capital | 101,272 | 89,618 | 95,161 | |||
| Share premium | 616,952 | 504,763 | 559,972 | |||
| Capital redemption reserve | 4,879 | 2,809 | 4,074 | |||
| Special distributable reserve | 69,413 | 136,417 | 106,915 | |||
| Capital reserve realised | (47,811) | (2,327) | (45,705) | |||
| Capital reserve unrealised | 187,547 | 117,708 | 209,089 | |||
| Revenue reserve | (26,034) | (20,927) | (23,666) | |||
| Total equity shareholders’ funds | 906,218 | 828,061 | 905,840 | |||
| Net asset value per share | 89.5p | 92.4p | 95.2p | |||
*Cash held but not yet allotted.
The statements were approved by the Directors and authorised for issue on 28 September 2020 and are signed on their behalf by:
John Hustler Chairman
Statement of Changes in Equity
| Share capital£’000 | Share premium£’000 | Capital redemption reserve£’000 | Special distributable reserve* £’000 | Capital reserve realised*£’000 | Capital reserve unrealised£’000 | Revenue reserve*£’000 | Total£’000 | |
| As at 01 January 2020 | 95,161 | 559,972 | 4,074 | 106,915 | (45,705) | 209,089 | (23,666) | 905,840 |
| Comprehensive income for the year: | ||||||||
| Management fees | – | – | – | – | (7,230) | – | (381) | (7,611) |
| Current year gain on disposal of fixed asset investments | – | – | – | – | (672) | – | – | (672) |
| Losses on fair value of fixed asset investments | – | – | – | – | – | (15,680) | – | (15,680) |
| Losses on fair value of current asset investments | – | – | – | – | – | (66) | – | (66) |
| Loss after tax | – | – | – | – | – | – | (2,144) | (2,144) |
| Total comprehensive loss for the period | – | – | – | – | (7,902) | (15,746) | (2,525) | (26,173) |
| Contributions by and distributions to owners: | ||||||||
| Share issue** | 6,916 | 56,980 | – | – | – | – | – | 63,896 |
| Repurchase of own shares | (805) | – | 805 | (7,008) | – | – | – | (7,008) |
| Dividends paid | – | – | – | (30,494) | – | – | – | (30,494) |
| Total contributions by and distributions to owners | 6,111 | 56,980 | 805 | (37,502) | – | – | – | 26,394 |
| Other movements: | ||||||||
| Prior year fixed asset gains now realised | – | – | – | – | 5,796 | (5,796) | – | – |
| FX translation | – | – | – | – | – | – | 157 | 157 |
| Total other movements | – | – | – | – | 5,796 | (5,796) | 157 | 157 |
| Balance as at 30 June 2020 | 101,272 | 616,952 | 4,879 | 69,413 | (47,811) | 187,547 | (26,034) | 906,218 |
*Reserve is available for distribution.
**This is net of allotment fees of £9.9 million.
| Share capital£’000 | Share premium£’000 | Capital redemption reserve£’000 | Special distributable reserve* £’000 | Capital reserve realised*£’000 | Capital reserve unrealised£’000 | Revenue reserve*£’000 | Total£’000 | |
| As at 01 November 2018 | 65,467 | 299,804 | 2,056 | 169,637 | 11,245 | 79,428 | (18,235) | 609,402 |
| Comprehensive income for the year: | ||||||||
| Management fees | – | – | – | – | (5,745) | – | (303) | (6,048) |
| Current year gain on disposal of fixed asset investments | – | – | – | – | 66 | – | – | 66 |
| Current year losses on disposal of current asset investments | – | – | – | – | (368) | – | – | (368) |
| Gains on fair value of fixed asset investments | – | – | – | – | – | 35,937 | – | 35,937 |
| Loss after tax | – | – | – | – | – | – | (2,340) | (2,340) |
| Performance fee | – | – | – | – | (5,182) | – | – | (5,182) |
| Total comprehensive income for the period | – | – | – | – | (11,229) | 35,937 | (2,643) | 22,065 |
| Contributions by and distributions to owners: | ||||||||
| Share issue (includes DRIS)** | 24,904 | 204,959 | – | – | – | – | – | 229,863 |
| Repurchase of own shares | (753) | – | 753 | (6,611) | – | – | – | (6,611) |
| Dividends paid (includes DRIS) | – | – | – | (26,609) | – | – | – | (26,609) |
| Total contributions by and distributions to owners | 24,151 | 204,959 | 753 | (33,220) | – | – | – | 196,643 |
| Other movements: | ||||||||
| Prior year current asset losses now realised | – | – | – | – | (2,343) | 2,343 | – | – |
| FX translation | – | – | – | – | – | – | (49) | (49) |
| Total other movements | – | – | – | – | (2,343) | 2,343 | (49) | (49) |
| Balance as at 30 April 2019 | 89,618 | 504,763 | 2,809 | 136,417 | (2,327) | 117,708 | (20,927) | 828,061 |
*Reserve is available for distribution.
**This is net of allotment fees of £6.6 million.
| Share capital£’000 | Share premium£’000 | Capital redemption reserve£’000 | Special distributable reserve* £’000 | Capital reserve realised*£’000 | Capital reserve unrealised£’000 | Revenue reserve*£’000 | Total£’000 | |
| As at 01 November 2018 | 65,467 | 299,804 | 2,056 | 169,637 | 11,245 | 79,428 | (18,235) | 609,402 |
| Comprehensive income for the year: | ||||||||
| Management fees | – | – | – | – | (14,890) | – | (784) | (15,674) |
| Current year gain on disposal of fixed asset investments | – | – | – | – | 15,626 | – | – | 15,626 |
| Current year losses on disposal of current asset investments | – | – | – | – | (368) | – | – | (368) |
| Gains on fair value of fixed asset investments | – | – | – | – | – | 88,302 | – | 88,302 |
| Gains on fair value of current asset investments | – | – | – | – | – | 1,006 | – | 1,006 |
| Loss after tax | – | – | – | – | – | – | (4,523) | (4,523) |
| Performance fee | – | – | – | – | (16,965) | – | – | (16,965) |
| Total comprehensive income for the year | – | – | – | – | (16,597) | 89,308 | (5,307) | 67,404 |
| Contributions by and distributions to owners: | ||||||||
| Share issue (includes DRIS)** | 31,712 | 260,168 | – | – | – | – | – | 291,880 |
| Repurchase of own shares | (2,018) | – | 2,018 | (17,597) | – | – | – | (17,597) |
| Dividends paid (includes DRIS) | – | – | – | (45,125) | – | – | – | (45,125) |
| Total contributions by and distributions to owners | 29,694 | 260,168 | 2,018 | (62,722) | – | – | – | 229,158 |
| Other movements: | ||||||||
| Prior year fixed asset losses now realised | – | – | – | – | (38,010) | 38,010 | – | – |
| Prior year current asset losses now realised | – | – | – | – | (2,343) | 2,343 | – | – |
| FX translation | – | – | – | – | – | – | (124) | (124) |
| Total other movements | – | – | – | – | (40,353) | 40,353 | (124) | (124) |
| Balance as at 31 December 2019 | 95,161 | 559,972 | 4,074 | 106,915 | (45,705) | 209,089 | (23,666) | 905,840 |
*Reserve is available for distribution.
**This is net of allotment fees of £6.6 million.
Cash Flow Statement
| UnauditedSix months to 30 June 2020£’000 | UnauditedSix months to30 April 2019£’000 | AuditedPeriod to31 December 2019£’000 | |
| Reconciliation of profit to cash flows from operating activities | |||
| (Loss)/profit before tax | (26,016) | 22,016 | 67,280 |
| Increase in debtors | (2,854) | (960) | (135) |
| Increase/(decrease) in creditors | (18,669) | 5,523 | 14,737 |
| Losses on disposal of current asset investments | – | 368 | 368 |
| Losses/(gains) on valuation of current asset investments | 66 | – | (1,006) |
| Losses/(gains) on disposal of fixed asset investments | 672 | (66) | (15,626) |
| Losses/(gains) on valuation of fixed asset investments | 15,680 | (35,937) | (88,302) |
| Outflow from operating activities | (31,121) | (9,056) | (22,684) |
| Cash flows from investing activities | |||
| Purchase of current asset investments | (6,197) | – | (79,319) |
| Sale of current asset investments | – | 61,213 | 61,213 |
| Purchase of fixed asset investments | (52,827) | (51,416) | (127,618) |
| Sale of fixed asset investments | 12,997 | 67 | 26,334 |
| Inflow/(Outflow) from investing activities | (46,027) | 9,864 | (119,390) |
| Cash flows from financing activities | |||
| Applications Inflows allotted | (5,539) | (57,571) | (52,114) |
| Purchase of own shares | (7,008) | (6,611) | (17,597) |
| Net proceed from share issues | 63,896 | 222,772 | 279,942 |
| Dividends Paid (net of DRIS) | (30,494) | (19,518) | (33,187) |
| Inflow from financing activities | 20,855 | 139,072 | 177,044 |
| (Decrease)/Increase in cash and cash equivalents | (56,293) | 139,880 | 34,970 |
| Opening cash and cash equivalents | 207,538 | 172,568 | 172,568 |
| Closing cash and cash equivalents | 151,245 | 312,448 | 207,538 |
| Cash and cash equivalents comprise | |||
| Cash at Bank | 4,105 | 29,306 | 52,763 |
| Applications cash | 26 | 108 | 5,565 |
| Money Market Funds | 147,114 | 283,034 | 149,210 |
| 151,245 | 312,448 | 207,538 |
Related Shares:
Octopus T.vct