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Half-year report

Octopus Titan VCT plc
·26-min read

Octopus 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 at
30 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; and

  • Vitesse: 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 at

30 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

Unaudited
Six months to 30 June 2020

Unaudited
Six months to 30 April 2019

Audited
Year 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

Unaudited
As at 30 June 2020

Unaudited
As at 30 April 2019

Audited
As 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

Unaudited

Six months to

30 June 2020

£’000

Unaudited

Six months to

30 April 2019

£’000

Audited

Period to

31 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