Interim results six months to 30 June 2022

RNS Number : 2295A

Forward Partners Group PLC

22 September 2022

 

Forward Partners Group plc

("Forward Partners" or "the Group")

INTERIM RESULTS COVERING THE SIX MONTHS TO 30 JUNE 2022

Forward Partners Group plc (LSE: FWD), the London-based investment firm specialising in supporting high growth, early-stage technology businesses, announces its interim results for the period to 30 June 2022.

Financial highlights

● Venture Portfolio of 48 active companies with a Fair Value of £94.9m, inclusive of £6.3m new investments. This represents a decline in Fair Value of 23.9% exclusive of new investments. Our previous guidance was that Fair Value would be no less than £92.0m, a decline of 26.4%.

● Operating profit before tax for the period of £24.9m net loss, predominantly driven by the unrealised £28.0m Venture Portfolio Value decline and a £7.3m reversal of the Carried Interest charge.

● NAV per share was 85 pence (104 pence as at 31 December 2021).

● Cash position of £22.6m which enables the Group to support its portfolio and maintain its investment rate for the foreseeable future.

Portfolio highlights

● 14 investments made by Forward Ventures in the period totalling £6.3m.

○ Two new investments in high-growth, B2B focused early-stage technology companies - Baselime and Sonrai, totalling £1.4m.

○ 12 follow on investments in existing portfolio companies totalling £4.9m.

● Over 80% of the Top 15¹ portfolio investments are either profitable, anticipated to be on the path to break even without the need for further fund-raising, or have 18 months or more cash runway.²

● Top 15 holdings generated a weighted H1 2022 versus H1 2021 average revenue growth of 107% as at 30 June 2022. Growth is forecast to continue in the second half with an outcome of 40-60% for the full year.²

● The Top 15 portfolio investments account for 62.3% of Venture Portfolio Value, with the most valuable company (Gravity Sketch) accounting for 9.5%. 29 of the 48 portfolio companies are B2B oriented.

Post period highlights

● Follow on investments into a further four portfolio companies totalling £1.3m.

● Wind down of non-core subsidiary Forward Advances underway as of 24 August 2022. For Advances, losses this financial year, including wind-down costs and default provision are anticipated to total circa £2.8m.

Outlook

The fundamentals of our portfolio remain strong and we remain confident in their exit potential. The Group expects challenging macroeconomic and market conditions to endure for the rest of the year and as a consequence, related valuation pressure could continue.

Nic Brisbourne, CEO at Forward Partners, commented:

"I'm pleased to report that the underlying performance of our portfolio remains strong, despite the regrettable downward pressure on valuations in the first half. The decrease in Fair Value was primarily driven by valuation headwinds experienced by high-growth tech companies the world over for nearly a year now. Happily, growth at our portfolio companies remains robust, balance sheets are in good shape, and our exit theses remain valid, albeit likely delayed.

Putting 2022 into context, the startup ecosystem has enjoyed a decades-long bull run driven by the ever-increasing pace of change. Our excitement for venture capital and commitment to Forward Partners is rooted in the belief that entrepreneurs will continue to solve the world's problems for years to come.

Finally, this has been a difficult period, and I would like to finish by saying "thank you" - to the Forward team and portfolio CEOs for their grit and hard work, and to our shareholders for their patience. Better times lie ahead."

The Company's Interim Report for the period ending 30 June 2022 is available on Forward Partners' website at http://forwardpartners.com/.

NOTES:

¹ Top 15 portfolio investments denote the most valuable companies held in Forward's Venture portfolio by Fair Value at a point in time. Except where otherwise noted in this release, we refer to the Top 15 as at 31 December 2021 to provide a meaningful basis for comparison. At that time, the Top 15 comprised Ably, Gravity Sketch, Makers, Spoke, Patch, Snaptrip, Cazoo, Robin AI, Apexx, Juno, KoruKids, Cherryz, Koyo Loans, Lexoo and Counting Up. The Top 15 will be updated in Forward's final year results.

² Management estimates as of 12 August 2022. These are based on portfolio company forecasts and assume no further material deterioration in the economy or public technology stocks that the Company utilises in comparable valuations. Where Management expects funding rounds to close soon and that completion is extremely likely to occur, then the runway analysis is made on the basis that the round is closed. Revenue growth average weighted by the Fair Value of portfolio companies as at 31 December 2021.

ENDS

Enquiries Forward Partners Group plc Nic Brisbourne, Chief Executive Officer	via H/ Advisors Maitland
Liberum Capital Limited (Nominated Adviser and Broker) Neil Patel Lauren Kettle Cara Murphy	Tel: [phone]
H/Advisors Maitland (Financial PR) Sam Turvey Alistair de Kare-Silver	[e-mail] Tel: [phone]

About Forward Partners

Founded in 2013, Forward Partners is an established and respected London-based venture capital firm, specialising in supporting high growth, early-stage technology businesses in the UK.

The Group brings together venture capital provider Forward Ventures, equity-free revenue-based financing through Forward Advances and highly specialised growth support from Forward Studio. This model supports founders to build stronger businesses faster to provide better outcomes for companies and investors alike.

The Group makes equity investments in early-stage, high growth UK companies, and from inception to its admission to London's AIM market in July 2021 had made over 60 unique investments and built a portfolio with an Initial Portfolio NAV in excess of £100m. It holds a nine-year track record of making venture capital investments, and targets underlying NAV growth of 20% per annum over the cycle.

The management team brings together highly experienced venture capitalists, entrepreneurs, and expert consultants. Since 2015, Forward Partners has been backed by BlackRock, one of the largest institutional investors in the world. The Group receives over 4,000 start-up funding applications every year.

For more information, visit https://forwardpartners.com .

Strategic report

Summary

As we enter our tenth year of investing, I am pleased to present Forward's interim results for the six-month period to 30 June 2022.

When we published our annual report, I wrote that 2021 was a remarkable year for Forward, for venture capital and for European tech - with London breaking away from the pack as Europe's leading tech hub. But 2022 is different. These are difficult times with historically high inflation and interest rates weighing heavily on the economy, and I'm disappointed to report a 23.9% decline in the Fair Value of our portfolio over the first half of the year. I am pleased to say, however, that the companies within the portfolio are in good health, with a high proportion of our Top 15 investments enjoying strong revenue growth and strong balance sheets. The decline in valuation is largely due to valuation pressures emanating from the correction in technology growth stocks that started in 2021.

At times like this, it's important to remember that venture capital is a long-term game. The ever-increasing pace of change will continue to drive innovation from larger companies to startups and many great businesses are forged during recessions. Moreover, we expect to hold our investments for 7-10 years or more and will therefore almost certainly encounter at least one period like the one we find ourselves in now.

Our efforts in the short term, therefore, remain focused on making sure that our portfolio companies have the best chance of emerging as real winners from the difficult time ahead whilst also selectively making new investments. While we are seeing an increasing number of high-quality opportunities and valuations are coming off from the highs seen last year, we also deem that fundraising risk remains high. Hence, we are waiting for greater certainty on the availability of next-round capital before increasing the rate at which we make new investments. We made two new investments within the period (announced in our July Portfolio Update) and a further is at terms, post-period.

We have had to make difficult decisions this half year too. At Advances, the economy has had a profound impact. Declining fortunes of our target customers and intense competition in the revenue-based finance market combined to severely limit our future growth opportunities. As previously announced, in August we resolved to wind down the subsidiary that we launched as a startup in 2020. This decision reduces our forecast expenditure over 2022, even after wind-down costs, improving the strength of our balance sheet and increasing our capacity to invest in early-stage technology businesses.

Looking ahead, we may continue to face valuation pressures in the short term, but we are confident Forward is in a good position to prosper in the months and years to come.

Financial performance

The Fair Value of Forward's venture portfolio (the gross value of the Group's investments in the funds before deductions for carried interest liability) as at 30 June 2022 was £94.9m (31 December 2021: £117.1m), a decline of 23.9% over the period, exclusive of new investments. These results are a slight improvement on our previous guidance that Fair Value would be not less than £92.0m, a decline of 26.4%.

Realisations during H1 were £0.5m from the third-party exit of Somo.

As anticipated in our final year results, the valuations at which we hold our portfolio companies have fallen as a result of macroeconomic challenges - and a significant proportion of that downward pressure has been related to valuation dynamics rather than business performance. We have been hurt by three compounding factors which by our estimation account for over 80% of the H1 net decline. Firstly, many companies have chosen to delay fundraising, which has resulted in greater weight being put on comparables analysis when valuing the key assets in the Ventures portfolio. Secondly, this valuation method takes revenue multiples from a basket of comparable companies that are trading at significantly lower share prices than last year. Thirdly, at lower valuations, the preferred share structures common in technology startups come into play, disproportionately affecting us as an early-stage investor. This compounding effect, however, will unwind to our advantage when times improve.

Ventures portfolio in robust health

The Forward Ventures portfolio remains in good health. We are pleased that our Top 15 portfolio investments by Fair Value are on course to deliver weighted average revenue growth of 40-60% over the course of 2022. These investments have strong balance sheets too. Over 80% are profitable, or are anticipated to be on the path to break even without the need for further fundraising, or have 18 months or more cash runway. Most of them, however, hope not to wait that long and are poised to raise capital and accelerate growth as soon as the markets open. This approach maximises optionality when considering investment options and valuation targets.

Ve ntures deployment on track

Forward Ventures remains active in the market and our investment team continues to seek opportunities that leverage applied AI and marketplace operating models, whilst exploring further investments in the rapidly growing area of Web3. Our investment plan is on track to deliver four to eight new Ventures investments in the current financial year, with two investments totalling £1.4m completed in new companies so far, and a further one proposed investment at terms, post-period end.

We have seen a good volume of deals, once again exceeding our target of 2000 per half-year and allowing us to focus on quality rather than quantity. We saw 2274 investment opportunities in the period, up 19% on H2 2021. The Ventures team met with 353 of these and progressed 46 to the final stages of assessment. The quality of the companies within this pipeline has been particularly exciting for the Ventures team. We attribute our continued success in attracting a high volume of quality leads to the increasing visibility of our brand and the initiatives that we have run to identify and attract deals throughout the period. Funding Lab, for instance, is our new, highly focused accelerator programme that provides intensive coaching to companies in preparation for a raise. In July, the programme attracted just under 500 applications. Of the resulting cohort of 12 companies, the Ventures team took two through to the final stages of assessment.

Advances winds down

On 24 August 2022 we announced our decision to conduct a managed wind-down of Forward Advances. The subsidiary was established as a startup inside Forward in 2020 to meet the demand of the fast-growing alternative funding market, separate to venture capital. The venture had a strong start, originating £14.9m in loan financing since inception. However, upon review, the Group determined that the current macroeconomic environment and the low margins necessary for Advances to compete in the alternative funding market limit opportunities for future growth and would limit potential shareholder returns.

In the half-year to 30 June 2022, Advances generated revenues of £0.3m and recorded losses after tax of £1.4m, with total originations of £4.1m. Advances book value at 30 June was £1.9m net of a £0.3m provision. Repayments from outstanding Advances remain in line with forecasts, and losses this financial year, including wind-down costs, are anticipated to total £2.8m. While no further loans will be originated, current Advances customers will be fully serviced for the duration of their contracts.

Outlook

The case for early-stage venture investment hasn't changed and the Forward Partners mission remains the same: to build the UK's leading and most admired early-stage investment firm. Our belief that entrepreneurs are solving the world's problems transcends the economic cycle and we continue to want to help as many of them succeed as possible.

As you might expect, we continually monitor the external environment and consider whether we should increase or decrease our rate of capital deployment. In particular, we look at the volume of quality opportunities we see and assess what we call fundraising risk - the likely demand from new investors to lead the next round of investment at an attractive valuation. At the time of writing, we are seeing a high volume of quality opportunities, but we are waiting for more evidence that next-round investors will be there before considering whether to increase our pace of investment. We understand that many of these next-round investors have raised funds relatively recently and there is a large amount of dry powder in the market, but it is still unclear how quickly that capital will be deployed or how much of it will be used to support existing portfolio companies.

We remain optimistic that we will continue to see good quality deals at attractive valuations (though to note - Web3 has come down less than our other investment areas). Until fundraising risk improves, our approach will be to seek businesses that not only have strong growth potential, but which don't rely on raising significantly larger rounds of financing in the future. We will, of course, maintain our disciplined approach to the management and valuation of our portfolio and we will continue to only deploy capital into companies that meet our strict investment criteria.

We believe that our portfolio is well-positioned for the next period too. Revenue growth is the biggest driver of valuation growth at startups, whilst weak balance sheets put valuations at risk. We're pleased to note that many of our companies are increasing revenue fast and hold strong reserves. We believe that most will not only make it through this period but come out of it stronger and more clearly positioned as the leaders in their markets.

At Group level, we have taken steps to ensure that we are appropriately resourced to support our portfolio through the potentially lean years ahead and can invest appropriately in the back office required to operate effectively as a listed business. Additionally, our expenses are under continual review to ensure we operate with maximum efficiency and we will conduct an end-to-end assessment in the coming months ahead of our 2023 budgeting cycle.

To summarise, we operate in a market with exciting long-term growth potential, have many great companies in our portfolio, and our balance sheet is strong. Valuation pressures may have a further negative effect on the Fair Value of our portfolio in the near term, but we are seeing an increasing number of indications that it may not be too long before we get back to growth.

Nic Brisbourne

Chief Executive Officer

Portfolio review

At 30 June 2022, Forward Partners' portfolio consisted of 48 active companies, with a Ventures Portfolio Value (the gross value of the Group's investment holding before deductions for carried interest) of £94.9m (vs 31 December 2021: £117.1m). Exclusive of new investments, this represents a 23.9% decline.

Portfolio

The Forward portfolio has been constructed to maximise risk-adjusted growth by balancing upside potential, the chance of failure, likely holding period and concentration risk.

Historically, Venture's investment strategy has focused on three key operating models: applied AI, eCommerce and marketplace. At 30 June 2022, these represented 31.3%, 16.7% and 33.3% of the portfolio respectively. Our Top 15 portfolio investments accounted for 62.3% of Ventures Portfolio Value with the largest holding, Gravity Sketch representing 9.5%. As we move through 2022, we're excited to introduce Web3 and the decentralised technology that underpins as a new investment focus, to replace eCommerce. We have already developed a strong proprietary deal flow and have built a growing pipeline of deals within this new area.

Forward defines its list of Top 15 core holdings by Fair Value on an annual basis on 31 December and publishes this list in its final year results. Except where otherwise noted, in this release, we refer to the Top 15 at 31 December 2021 to provide a meaningful basis for comparison.At 31 December 2021, the Top 15 core holdings were Ably, Gravity Sketch, Makers, Spoke, Patch, Snaptrip, Cazoo, Robin AI, Apexx, Juno, KoruKids, Cherryz, Koyo Loans, Lexoo and Counting Up.

At 30 June 2022, the Top 15 by Fair Value were Gravity Sketch, Spoke, Koyo Loans, Makers, Robin, Apexx, Juno, Koru Kids, OutThink, Ably, Ahauz, Patch, Virtuoso, Snaptrip, Big Health.

Key positive movements include OutThink - a £2.6m increase in Fair Value; Koyo Loans - a £2.0m increase in Fair value plus a £0.5m follow on investment, and Ahauz - a £1.8m increase in Fair Value. Conversely, we saw notable valuation declines at Ably - a £8.8m decrease in Fair Value; Cazoo - a £4.3m decrease in Fair Value and Cherryz - a £3.5m decrease in Fair Value. Post period end we have now exited our entire holding in Cazoo and remain hopeful that Ably and Cherryz will return to valuation growth in the next 6 - 12 months.

Investments

£6.3m was invested by Forward Ventures between 1 January 2022 and 30 June 2022 of which £1.4m was invested in two new portfolio companies and £4.9m invested into 12 existing portfolio companies in follow-on rounds.

New investments

-- Current period to 30 June 2022

● Baselime. Forward Partners invested £0.4m into serverless technology company Baselime as part of the company's £1.5m round, led by Arc, Sequoia's catalyst for outlier founders.

● Sonrai. Forward Partners invested £1.0m into Sonrai, an analytics platform that leverages AI to speed up drug and healthcare developments as part of the company's £2.2m round, alongside Techstart Ventures.

-- Post period end

● There have been no new investments in the period following 30 June 2022 to publication.

Follow-on investments

-- Current period to 30 June 2022

● 12 follow on investments at promising existing portfolio companies totalling £4.9m. (Apexx, Fy, Gravity Sketch, Highr, KoruKids, Koyo Loans, Makers, Patch, Plyable, Robin AI, Silico and Spoke).

-- Post period end

● Follow on investments into portfolio companies OutThink, Breedr, Apexx and Lyvly totalling £1.3m.

Realisations

-- Current period

The Group achieved one realisation in the period between 1 January 2022 to 30 June 2022 totalling £0.5m.

● Somo. Forward Partners realised £0.5m through the exit of Somo, a digital product agency.

-- Post period end

There has been one realisation in the period following 30 June 2022 to publication, totalling £0.6m.

● Cazoo. Forward Partners disposed of 91% of its holding in online car retailer Cazoo Group Limited in July 2022, realising £0.6m. The remaining 9% holding was sold in August, realising less than £0.1m.

Top 15 Portfolio Companies by valuation 

Figures shown below, including total investment, Ventures Portfolio Value and illustrative return, are unaudited and correct as at 30 June 2022. The Top 15 investments cover 62.3% of the portfolio by Fair Value.

	Fair Value 31/12/21	Invested	Realised	Delta	Fair Value 30/06/22
	£m	£m	£m	£m	£m
⥈ Gravity Sketch	8.4	0.7	-	-	9.1
⥈ Spoke	5.2	0.3	-	0.6	6.1
⥈ Koyo Loans	3.3	0.5	-	2.0	5.8
⥈ Makers	8.3	0.4	-	(2.9)	5.8
⥈ Robin	4.7	0.9	-	-	5.6
⥈ Apexx	4.7	0.2	-	-	4.9
⥈ Juno	4.5	-	-	-	4.5
⥈ KoruKids	3.9	0.5	-	-	4.4
⥈ Ably	12.9	-	-	(8.8)	4.1
⥈ Patch	5.2	0.3	-	(2.5)	3.0
⥈ Snaptrip	5.0	-	-	(2.3)	2.7
↠ Lexoo	3.2	-	-	(2.1)	1.1
↠ Counting Up	2.8	-	-	(1.7)	1.1
↠ Cazoo	4.9	-	-	(4.3)	0.6
↠ Cherryz	3.7	-	-	(3.5)	0.2
↞ OutThink	1.6	-	-	2.5	4.1
↞ Ahauz	1.6	-	-	1.9	3.5
↞ Virtuoso	2.7	-	-	-	2.7
↞ Big Health	2.5	-	-	-	2.5
Remaining portfolio	28.0	2.5	(0.5)	(6.9)	23.1
Ventures Portfolio Value	117.1	6.3	(0.5)	(28.0)	94.9
Carried Interest	(11.3)			7.3	(4.0)
Net Ventures Portfolio Value	105.8	6.3	(0.5)	(20.7)	90.9

⥈ Part of the Top 15 in December 2021 and June 2022

↠ New to the Top 15 as at June 2022

↞ No longer part of the Top 15 as at June 2022

Portfolio update

Note: FD Category represents fully diluted interest shares categorised as follows: Cat A: 0-5%, Cat B: 6-10%, Cat C: 11-15%, Cat D: 16-25%, Cat E: >25%.

Gravity Sketch

Gravity Sketch was founded in London in 2014 by Oluwaseyi Sosanya and Daniela Paredes with the vision to revolutionise the way physical products are designed, developed, and brought to market. Today, the company is a leading innovator in the digital design industry, offering intuitive 3D design software for cross-disciplinary teams to create, collaborate, and review in an entirely new way, addressing a market worth an estimated $10bn in 2022.

Recent news

● In April 2022, Gravity Sketch announced the successful completion of a $25m funding round ($33m final close). Forward participated with a further £0.7m in this Series A, led by Accel alongside Google Ventures.

● Gravity Sketch launched LandingPad Collab, which allows users to create personalised spaces for real-time collaboration.

Total invested : £1.9m | Fair Value: £9.1m | Fair Value / Investment: 4.7x  | FD Category  C

Spoke

Spoke is a direct-to-consumer eCommerce company that provides better fitting, better-looking men's clothes. Established in 2013, the company has over 200,000 customers to date. It has been featured in GQ and Esquire and holds a Trustpilot rating of 4.7/5 .

Recent news

● Post-period in March 2022, Spoke launched a crowdfunding round on Seedrs which reached £3.7m (248% of the £1.5m target) with 24 days left.

● The company has annual gross revenues of over £18m and 75% year-on-year growth. • In May, Spoke announced ITV's subscription of £2 million in convertible loan notes.

● Spoke will use ITV's media investment to launch a TV advertising campaign running alongside major sporting events.

Total invested : £2.5m | Fair Value: £6.1m | Fair Value / Investment: 2.4x  | FD Category  C

Koyo Loans

Koyo uses open banking and applied AI to offer personal loans to consumers who lack traditional historical credit data, without excessive fees for credit. Established in 2018 by Thomas Olszewski, Koyo is on a mission to provide loans that are personal and transparent, to those who have little or no options through no fault of their own. Koyo has a Trustpilot score of 4.9, with 96% of their 983 reviews being five stars.

Recent news

● In September 2021, Koyo closed a $50m Series A of equity and debt led by Force Over Mass. We participated in the round, alongside Seedcamp, Frontline Ventures and Matt Robinson (founder of GoCardless).

● The company is using the funding to provide access to competitively priced credit, when most traditional leaders have been scaling back lending.

Total invested : £2.5m | Fair Value: £5.8m | Fair Value / Investment: 2.3x  | FD Category  C

Makers

Makers are creating a new generation of tech talent through courses and apprenticeships. By combining an academy and a recruitment agency, they've turned over 1,700 people into junior software engineers and placed them in over 300 businesses, including Google, Tesco, Starling Bank, and the BBC. Makers hold a rating of 4.7/5 from customers on boot camp review site SwitchUp.

Recent news

● Over 35% of Makers engineers are female, two times higher than the industry average.

● July marked the third year of Maker's Women in Software Power List in partnership with Google for Startups UK and Computer Weekly.

● The company is now working with three of the world's four largest technology companies.

Total invested : £1.5m | Fair Value: £5.8m | Fair Value / Investment: 3.9x  | FD Category  E

Robin AI

Robin AI is a legal-tech company that provides companies, scale-ups and funds with a solution to improve contracts through software, machine learning and a team of world-class legal professionals. Established in 2019 by Richard Robinson, Robin developed from Richard's personal experience as a lawyer.

Recent news

● Robin AI raised £2.5m in December 2021 in a seed extension round, with participation from the Softbank Emerge Program, Tom Blomfield (the founder of Monzo) and existing investors.

● The company increased revenues by more than 10x between the seed investment in March and the seed extension in December.

Total invested : £1.4m | Fair Value: £5.6m | Fair Value / Investment: 4.0x  | FD Category  D

Apexx

Apexx's platform allows merchants to connect via a simple API to the world's payment ecosystem, increasing conversion at lower cost and powering digital payments. The team has grown to 41 people working across 3 countries, serving clients like ASOS, Avon, Xe, eShopworld and Air Seychelles.

Recent news

● Apexx has continued to push forward its "buy now pay later" (BNPL) product, now integrated with 10 BNPL providers.

● Apexx now has over 120 integrated partners and operates across more than 70 countries.

● In August 2021, Apexx announced four new global brands as customers: Atome, LayBuy, Sezzle and Tamara.

● Apexx have expanded sales operations to cover the USA, with two FTEs now hired.

● The company won payment innovation of the year at the 2021 FS Tech awards.

Total invested : £1.8m | Fair Value: £4.9m | Fair Value / Investment: 2.7x  | FD Category  B

Juno

Juno brings together legal expertise with software and AI to offer conveyancing that's clear, convenient and reliable. Established in 2017 by Etienne Pollard and Henry Hadlow, their vision is to make the legal side of home buying simpler, clearer and faster - and for Juno to become the UK's largest and most trusted property law firm. The founders saw an opportunity in a fragmented, people-intensive legal and conveyancing sector. Their disruptive solution takes a data-driven approach to drive better, faster, more cost-efficient services. Revenues more than doubled in 2020.

Recent news

● Juno launched a closed beta of its AI-enabled legal service to complete property purchases, targeting 10x-faster-than-average completions.

● The company also launched a new buy-to-let remortgaging product, targeting a 5x speed-up versus the industry average.

● Juno holds a 4.6 rating on Trustpilot, with 79% of its 527 reviews being five stars.

● LendInvest, the UK's leading property finance platform appointed Juno to their buy-to-let legal panel.

Total invested : £2.3m | Fair Value: £4.5m | Fair Value / Investment: 1.9x  | FD Category  D

Koru Kids

Koru Kids is a childcare marketplace that connects parents with vetted part-time nannies. Established in 2016 by Rachel Carrell, the company has delivered over 1,000,000 hours of childcare to families and works with over 10,000 nannies across the UK. It holds a TrustPilot rating of 4.8/5.

Recent news

● Koru Kids launched a home nursery service, allowing carers to take care of children in their home and teach a varied curriculum following the early years foundation stage (EYFS) framework.

● The platform now has more than 25 home nursery sites, with more being added as carers are trained.

Total invested : £2.2m | Fair Value: £4.4m | Fair Value / Investment: 2.0x  | FD Category  B

Ably

Ably is an edge messaging platform to power live and collaborative experiences. It is building better real-time infrastructure for the internet. Established in 2016 by Matthew O'Riordan and Paddy Byers, the company is trusted by brands like HubSpot, Toyota, and Webflow to power shared live experiences like business-critical chat, order delivery tracking, or document collaboration for millions of simultaneously connected devices around the world.

Recent news

● Ably won the Best Use of API Gateway Integration, Best API Business Model (for the second year in a row), and Best Overall SME Dev Portal at the 2021 DevPortal Awards.

● The senior team was strengthened with the addition of a CTO from Microsoft, COO from Facebook, and Chief Customer Officer from Spacemaker AI.

● On 30 June, Ably announced a successful raise of $70m led by Insight Partners and Dawn Capital. They're using the funding to strengthen the UK team, expanding it from 65 to 125 employees by the end of 2022 to drive innovation and scale.

Total invested : £1.7m | Fair Value: £4.1m | Fair Value / Investment: 2.4x  | FD Category  B

Patch

Patch is one of the leading online UK direct-to-consumer plant stores. Established in 2015 by Freddie Blackett, Patch helps people who need plants most - those who live and work in the city - to choose and care for plants in their homes and workplace. The company has attracted over 250,000 customers. They hold a 4.8/5 rating on Trustpilot and an audience of 240,000 plant fans on Instagram. Patch was recently voted 28th in start-ups.co.uk '100 to watch'.

Recent news

● Patch opened a new fulfilment centre to reduce delivery times and logistics costs.

● The company exhibited at the Chelsea Flower Show in collaboration with The Edible Bus Stop.

● The team also launched the Patch Plant Hotel to take care of customers' plants while they are on holiday.

● Patch was a finalist in The Institute of Customer Services UK Customer Satisfaction Awards 2021 and won the award for Best Use of Voice of the Customer at the 2021 Engage Awards.

● In 2021, Patch plant doctors helped 12,000 customers diagnose problems with their plants.

● Patch won a silver gilt medal at the 2021 Chelsea Flower Show for their studio: the Pharmacy of House Plants.

Total invested : £1.4m | Fair Value: £3.0m | Fair Value / Investment: 2.1x  | FD Category  D

Snaptrip

Snaptrip is a marketplace that helps people to discover the best last-minute cottage holiday deals in the UK. Founded in 2014 by Dan Harrison and Matthew Fox, Snaptrip has grown to offer over 60,000 professionally managed cottages from big-name partners. They hold a rating of 4.4/5 on Trustpilot.

Recent news

● Snaptrip raised a £2.1m round in May 2021, led by Bestport Ventures, which the company used to acquire Last Minute Cottages.

● The team aim to grow their position as the UK's biggest and best last-minute self-catering brand. • Post-period in March 2022, Snaptrip acquired Independent Cottages for a seven-figure fee. This is the company's second acquisition in 12 months following the acquisition of Hot Tub Hideaways in Summer 2021.

● Snaptrip now operates a family of brands, including Dog-Friendly Cottages, Last Minute Cottages and Big Cottages, giving it access to several targeted markets.

Total invested : £0.6m | Fair Value: £2.7m | Fair Value / Investment: 4.4x  | FD Category  D

Lexoo

Lexoo is a technology-driven legal outsourcing solution. Founded in 2014, the company has grown to deliver legal services to companies worldwide through a network of more than 1,100 lawyers in 70 countries. Tackling transparency and efficiency in the legal market, the team leverages technology driven processes to unlock capacity, efficiency and improve stakeholder engagement. Lexoo holds a rating of 4.6/5 on Trustpilot.

Recent news

● Lexoo was recognised as one of the top 25 LegalTech Companies of 2021 by TechRound.

● More recently, it onboarded Trustpilot as a client, and launched a credits-based subscription model to drive recurring revenue from an ad-hoc client base.

● The company will also soon launch its new product line, offering GDPR assessments as a recurring service.

● Going into 2022, the business has been putting in place the foundations to scale, expanding its customer acquisitions team and adding more in-house lawyers.

Total invested : £1.5m | Fair Value: £1.1m | Fair Value / Investment: 0.8x  | FD Category  E

Counting Up

Countingup is the UK's #1 SME banking app with built-in accounting features. Their vision is to become a "financial hub" for micro businesses in the U.K. and beyond. The company was established in 2017 by Tim Fouracre, who previously founded cloud accounting software Clear Books. It combines a business bank account with bookkeeping features to help automate the filing of accounts - a major time sink and pain-point for an underserved market of sole traders and small businesses. The company now boasts over 34,000 business customers.

Recent news

● In March 2021, Countingup closed a £9.1M Series A investment led by Framework Venture Partners, in conjunction with Gresham House Ventures and Sage Group.

Total invested : £1.1m | Fair Value: £1.1m | Fair Value / Investment: 1.1x  | FD Category  B

Cherryz

Cherryz is an online discount retailer of low price fast-moving consumer goods and general merchandise. Its app brings consumers through a user journey that combines the convenience of online shopping with the favourable low prices of discount stores. Cherryz is focused on a growing online grocery sector and creating shopping (vs. buying) experiences on mobile devices - trends that have both accelerated through the Covid-19 pandemic. Cherryz hold a Trustpilot rating of 4.4/5.

Recent news

● Increased headcount from 25 to 70.

● Tripled the size of our fulfilment operations.

● Invested in machine learning in order to deliver a more personalised customer experience.

Total invested : £1.8m | Fair Value: £0.2m | Fair Value / Investment: 0.1x  | FD Category  B

Interim Financial Review

The six-month period ended 30 June 2022 was largely business as usual for Forward Ventures as it continued to deploy cash into exciting new investment opportunities. My first three months, since joining in late March 2022, saw a focus on our annual reporting, along with forecasting to ensure the Group was able to make strategic decisions to ensure its continued success over the long term.

Forward Ventures

The Ventures Portfolio Value (the gross value of the Group's investment holding before deductions for carried interest liability) at 30 June 2022 was £94.9m (31 December 2021 £117.1m), representing a total decline of 23.9% excluding new investments through the period. The £22.2m net movement includes a Ventures capital deployment of £6.3m across 14 companies in both new and follow-on rounds; £0.5m of realisation of Somo and a Fair Value decrease of £28.0m. The Fair Value reduction is largely attributable to market headwinds and downward pressure on comparable valuations and liquidation preferences impacting earlier stage investors such as Forward Partners. As market headwinds dissipate, liquidation preferences will have a reduced weight on our Fair Value calculation.

Consolidated Statement of Financial Position

The nature of the Group's business means that the balance sheet primarily consists of its Financial Assets held at Fair Value, £95.4m (£0.5m relating to an investment in the Carried Interest Partner) and ash of £22.6m. Net assets as at 30 June 2022 were £114.8m (31 December 2021 £139.6m), resulting in a Net Asset Value (NAV) per share of 85 pence (31 December 2021 104 pence).

The Group currently holds a £5m revolving credit facility for the benefit of Forward Advances. At 30 June 2022, this facility was drawn down by £1m, which has not changed since year-end. Following the decision in August 2022 to wind down the subsidiary, the facility will be fully repaid by the year-end.

The Group will always seek to maintain sufficient cash availability for a period greater than 12 months.

Consolidated Statement of Comprehensive Income

Income recognised for the half year to 30 June 2022 comprise a loss from investment valuations of £28.0m, Studio fee income of £0.1m and fees and fee income of £0.3m from the Forward Advances loan business.

Operating expenses were £4.5m in the period which was principally attributable to staff and office costs. A credit to the Income Statement of £7.3m was recognised as a result of the decrease in the carried interest returns accrued by the scheme's members.

Finance costs are the interest and fees attributable to the TriplePoint loan facility of which only £1.0m has been drawn down.

Post-period end

Forward Advances

On 24 August 2022, we announced our decision to conduct a managed wind down of Forward Advances. The subsidiary was established as a startup inside Forward during 2020 to meet the demand of the fast-growing alternative funding market, separate to venture capital. The venture had a strong start, originating £14.9m since inception. However, upon review, the Group determined that the current macroeconomic environment and the low margins necessary for Advances to compete in the alternative funding market limited opportunities for future growth and cash generation in the short to medium term.

In the half year to 30 June 2022, Advances generated revenues of £0.3m and recorded losses after tax of £1.4m, with total originations of £4.1m. The Advances book value at 30 June was £1.9m net of a £0.3m provision. Repayments from outstanding Advances remain in line with forecasts, and losses this financial year, including wind-down costs, are not expected to exceed £2.8m. While no further loans will be originated, current Advances customers will be fully serviced for the duration of their contracts.

Realisations

Since the period ended our entire Cazoo holding has been realised for a total of £0.6m. As a result, the Group no longer holds any listed assets within its portfolio.

New Investments

Follow-on investments in Apexx, Breedr, Lyvly and OutThink totalling £1.3m have been deployed since the interim date.

Lloyd Smith

Chief Financial Officer

Forward Partners Group Plc

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the six months ended 30 June 2022

 

	Note		Period Ended 30.06.22 £'000		Period Ended 30.06.21 (restated) £'000
Fair value change in gains on investments held at fair value through the profit and loss	4		(28,010)		18,513
Profit/(Loss) on disposal of investments			(41)		-
Revenue	2		367		463
Total Income			(27,666)		18,976
Administrative expenses			(4,453)		(1,909)
Carried Interest Charge			7,347		(3,956)
Depreciation and amortisation			(56)		(99)
Total Operating Expense			2,838		(5,964)
(Loss)/Profit from operations			(24,826)		13,112
Finance costs			(82)		(3)
(Loss)/Profit before taxation			(24,928)		13,009
Corporation tax expense			-		-
(Loss)/Profit for the year after tax attributable to owners			(24,928)		13,009
of the parent
Other comprehensive income			-		-
Total comprehensive (loss)/income attributable to owners
of the parent			(24,928)		13,100
Basic and diluted Earnings per Share from continuing operations	5		(19)p		10p

Accounting policies and notes on pages 21 to 30 form part of these financial statements.

Forward Partners Group Plc

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 June 2022

	Note		30.06.22 £'000		31.12.21 (audited) £'000
Non-Current Assets
Intangible assets			62		71
Financial assets held at fair value through the profit or loss	4		95,377		117,597
Property, plant and equipment			36		35
Right of use assets			-		37
			95,475		117,740
Current Assets
Trade and other receivables			715		1,411
Financial assets held at amortised cost	4		1,031		1,499
Financial assets held at fair value through the profit or loss	4		915		804
Cash and cash equivalents			22,588		31,066
			25,249		34,780
Total Assets			120,724		152,520
Current Liabilities
Trade and other payables			1,044		682
Lease Liabilities			6		30
			1,050		712
Non-Current Liabilities
Deferred tax liabilities			9		9
Financial liabilities			945		934
Lease Liabilities			-		-
Provision for carried interest			3,942		11,288
			4,896		12,231
Total Liabilities			5,946		12,943
Net Assets			114,778		139,577
Capital and reserves attributable to equity holders of the Group
Called up share capital			1,346		1,346
Share premium account			130,991		130,991
Merger reserve			(33,189)		(33,189)
Non-controlling interest			-		-
Retained earnings			15,630		40,429
			114,778		139,577
Basic and diluted NAV per share	5		85p		104p

The financial statements were approved and authorised for issue by the board of directors on 21 September 2022, and were signed on its behalf by:

Lloyd Smith

Director

Accounting policies and notes on pages 21 to 30 form part of these financial statements.

Forward Partners Group Plc

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30 June 2022

	Share Capital £'000		Share Premium £'000		Merger Reserve £'000		Non- Controlling Interest £'000		Retained Earnings £'000		Total £'000
Balance at 1 January 2022 (audited)	1,346		130,991		(33,189)		-		40,429		139,577
Profit for year attributable to equity holders	-		-		-		-		(24,928)		(24,928)
Options granted and awards exercised	-		-		-		-		129		129
Balance at 30 June 2022	1,346		130,991		(33,189)		-		15,630		114,778

	Share Capital £'000		Share Premium £'000		Merger Reserve £'000		Non- Controlling Interest £'000		Retained Earnings £'000		Total £'000
Balance at 1 January 2021	-		-		49,372		20,368		11,962		81,702
Profit for year attributable to equity holders	-		-		-		-		13,009		13,009
Share capital issuance	50		-		-		-		-		50
Change in merger reserve arising on reorganisation	-		-		28,101		(20,368)		(317)		7,416
Balance at 30 June 2021 (restated)	50		-		77,473		-		24,654		102,177

Accounting policies and notes on pages 21 to 30 form part of these financial statements.

Forward Partners Group Plc

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

for the six months ended 30 June 2022

	Note		30.06.22 £'000		30.06.21 £'000
Cash flows from operating activities
(Loss)/Profit before tax			(24,928)		13,009
Adjustments to reconcile operating profit to net cash flows used in operating activities
Revaluation of investments held at fair value through the profit and loss			28,010		(18,513)
Loss on disposal of fixed assets			41		-
Depreciation and amortisation			56		99
Share-based payments			129		-
Finance expense			82		3
Decrease in trade and other receivables			692		274
Increase in loans receivable			358		-
Decrease in trade and other payables			(6,981)		3,729
Net cash used in operating activities			(2,541)		(1,399)
Tax received/(paid)			-		-
Net cash outflows from operating activities			(2,541)		(1,399)
Cash flows used in investing activities
Purchase of investments			(6,294)		(6,088)
Proceeds from disposals			463		34
Purchase of property, plant and equipment			(11)		(8)
Net cash outflows from investing activities			(5,842)		(6,063)
Cash flows used in financing activities
Proceeds from borrowings			11		-
Interest paid			(82)		-
Repayments of leasing liabilities			(24)		(90)
Change in investment in Fund I & II			-		7,416
Gross proceeds from issue of share capital			-		50
Net cash (outflow)/inflow from financing activities			(95)		7,376
Net decrease in cash and cash equivalents			(8,478)		(86)
Cash and cash equivalents at beginning of year			31,066		503
Cash and cash equivalents at end of year			22,588		417

Accounting policies and notes on pages 21 to 30 form part of these financial statements.

General information

The consolidated financial statements of Forward Partners Group Plc and its subsidiaries (collectively, the Group), for the six-month period 1 January to 30 June 2022, were authorised for issue in accordance with a resolution of the directors on 21 September 2022. Forward Partners Group Plc (the Company or the parent) is a limited company incorporated and domiciled in England and Wales and whose shares are publicly traded on AIM a sub-market of the London Stock Exchange. The address of the registered office is given at the end of this report.

1.  ACCOUNTING POLICIES

Basis of preparation of financial statements

The Group's interim condensed financial statements for the six months ended 30 June 2022 have been prepared in accordance with IAS 34 Interim Financial Reporting. The financial statements have been prepared under the historical cost convention except as noted below.

Accounting standards require the directors to consider the appropriateness of the going concern basis when preparing the financial statements. The directors confirm that they consider that the going concern basis remains appropriate as the Group has adequate resources to continue in operational existence for the foreseeable future based upon forecasts.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2021.

New standards, interpretations and amendments adopted by the Group

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2021. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

Several amendments apply for the first time in 2022, but do not have an impact on the interim condensed consolidated financial statements of the Group.

2.  REVENUE

			30.06.22		30.06.21
			£'000		£'000
Fees on Advances			259		-
Investment Fees			27		11
From external customers			81		452
Total revenue			367		463

3.  SEGMENT INFORMATION

The following tables present revenue and profit information for the Group's operating segments for the six months ended 30 June 2022 and 2021, respectively:

Year ended 30 June 2022	Revenue	Depreciation	Operating profit/(loss)	Net interest	Profit/(loss) before tax	Taxation	Deferred taxation	Profit/(loss) after tax
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Advances	259	(10)	(1,356)	(82)	(1,438)	-	-	(1,438)
Studio*	81	(38)	(104)	-	(104)	-	-	(104)
Ventures**	(28,024)	(8)	(30,082)	-	(30,082)	-	-	(30,082)
	(27,684)	(18)	(31,542)	(82)	(31,624)	-	-	(31,624)
Forward Partners Group Plc	-	-	6,696	-	6,696	-	-	6,696
Total	(27,684)	(56)	(24,846)	(82)	(24,928)	-	-	(24,928)

Year ended 30 June 2021	Revenue	Depreciation	Operating profit/(loss)	Net interest	Profit/(loss) before tax	Taxation	Deferred taxation	Profit/(loss) after tax
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Advances	-	-	-	-	-	-	-	-
Studio	452	(2)	(15)	-	(15)	-	-	(15)
Ventures*	18,524	(97)	16,983	(3)	16,980	-	-	16,980
	18,976	(99)	16,968	(3)	16,965	-	-	16,965
Forward Partners Group Plc	-	-	(3,956)	-	(3,956)	-	-	(3,956)
Total	18,976	(99)	13,012	(3)	13,009	-	-	13,009

*T he Studio design services were also utilised by the Advances segment throughout the first part of 2021 until it became an operating subsidiary of the Group.

**The Advances segment was held as an investment up to 18 July 2021. On 19 July 2021 the Advances segment became an operating subsidiary of the Group.

The table below shows assets and liabilities by subsidiary, exclusive of inter-company balances, as at 30 June 2022 and 31 December 2021, respectively:

As at 30 June 2022		Non-current asset additions	Non- current assets	Current assets	Total assets	Current liabilities	Non-current liabilities	Total liabilities	Net operating assets
		£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Advances		-	70	3,377	3,447	(120)	(946)	(1,066)	2,381
Studio		4	10	307	317	(201)	(2)	(203)	114
Ventures		6,302	94,895	3,971	98,866	(404)	(5)	(409)	98,457
		6,306	94,975	7,655	102,630	(725)	(953)	(1,678)	100,952
Forward Partners Group Plc		-	500	17,594	18,094	(325)	(3,943)	(4,268)	13,826
Total		6,306	95,475	25,249	120,724	(1,050)	(4,896)	(5,946)	114,778
Net assets									114,778

As at 31 December 2021		Non-current asset additions	Non- current assets	Current assets	Total assets	Current liabilities	Non-current liabilities	Total liabilities	Net operating assets
		£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Advances		85	76	4,823	4,899	(97)	(935)	(1,032)	3,867
Studio		-	37	396	433	(294)	-	(294)	139
Ventures		11,907	117,627	404	118,031	(229)	-	(229)	117,801
		11,992	117,740	5,623	123,363	(620)	(934)	(1,554)	121,807
Forward Partners Group Plc		-	-	29,157	29,157	(92)	(11,296)	(11,387)	17,770
Total		11,992	117,740	34,780	152,520	(712)	(12,231)	(12,942)	139,577
Net assets									139,577

4.  FINANCIAL ASSETS AND LIABILITIES

The carrying amounts of financial assets and financial liabilities in each category as at 30 June 2022 and 31 December 2021 are as follows:

Year ended 30 June 2022	Amortised Cost £'000	FVPL £'000	Total £'000
Financial Assets
Non-current financial assets	-	95,377	95,377
Current financial assets	1,031	915	1,946
Trade and other receivables	715	-	715
Cash and cash equivalents	22,588	-	22,588
	24,334	96,292	120,626
Financial liabilities
Trade and other payables	1,044	-	1,044
Lease liabilities	6	-	6
Deferred tax	9	-	9
Non-current financial liabilities	945	3,942	4,887
	2,004	3,942	5,946

Year ended 31 December 2021	Amortised Cost £'000	FVPL £'000	Total £'000
Financial Assets
Non-current financial assets	-	117,597	117,597
Current financial assets	1,499	804	2,303
Trade and other receivables	1,408	-	1,408
Cash and cash equivalents	31,066	-	31,066
	33,973	118,401	152,374
Financial liabilities
Trade and other payables	679	-	679
Lease liabilities	30	-	30
Deferred tax	9	-	9
Non-current financial liabilities	934	11,288	12,222
	1,652	11,288	12,940

The methods used to measure financial assets and liabilities reported at fair value are consistent with those used as part of the 31 December 2021 accounts. 

Non-current financial assets include £0.5m pertaining to the value of the carried interest partner holdings.

Current financial assets relate entirely to loans receivable by the Group. At 30 June 2022 there were £339k (2021: £256k) impaired loans receivables.  The maximum exposure to credit risk at the year-end is the fair value of each class of receivable. The Group does not hold any collateral as security.

Non-current financial assets		30.06.22 £'000		31.12.21 (audited) £'000
At 1 January		117,597		86,625
Additions		6,294		11,899
Realisations		(504)		(8,174)
Unrealised gains on the revaluation of investments		(28,010)		27,247
At 30 June/31 December		95,377		117,597

IFRS 13 requires certain disclosures which require the classification of financial assets and financial liabilities measured at fair value using a fair value hierarchy that reflects the significance of the inputs used in making the fair value measurement.

Disclosure of fair value measurements by level is according to the following fair value measurement hierarchy:

● level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

● level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the assets or liabilities, either directly or indirectly; and

● level 3 inputs are unobservable inputs for the assets or liabilities.

The Non-current financial assets are all recognised at fair value through the profit & loss. The assets represent the portfolio company investments held through the groups limited partnership fund subsidiaries. The Group's finance team performs the valuations of the funds' portfolio investments with the assistance of the investment manager for financial reporting purposes. Valuation techniques are based on the International Private Equity and Venture Capital Valuation (IPEVCV) guidelines December 2018 as well as the IPEV Board, Special Valuation Guidance issued on 31 March 2020 in response to the Covid-19 crisis as described in the accounting policies and significant accounting judgements sections of this report.

The following table provides an analysis of the financial assets held by the partnership, which are measured subsequent to initial recognition, at fair value.

Financial assets at fair value through the profit or loss

30 June 2022	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Non-current	617	-	94,760	95,377
Current	-	-	915	915
	617	-	95,675	96,292

31 December 2021	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Non-current	4,869	-	112,728	117,597
Current	-	-	804	804
Total	4,869	-	113,532	118,401

Financial liabilities - interest-bearing loans and borrowings

30 June 2022	Interest rate	Maturity	30.06.22
	%		£'000
Current interest-bearing loans and borrowings
Lease liabilities	4.50%	2022	6
Total current interest-bearing loans and borrowings			6
Non-current interest-bearing loans and borrowings
Secured bank loan	11.75%	2024	945
Total non-current interest-bearing loans and borrowings			945
Total interest-bearing loans and borrowings			951

31 December 2021	Interest rate	Maturity	31.12.21
	%		£'000
Current interest-bearing loans and borrowings
Lease liabilities	4.50%	2022	30
Total current interest-bearing loans and borrowings			30
Non-current interest-bearing loans and borrowings
Secured bank loan	11.75%	2024	934
Total non-current interest-bearing loans and borrowings			934
Total interest-bearing loans and borrowings			964

Secured bank loan

The loan is a £5.0m revolving facility provided by Triple Point Advancr Leasing PLC under an agreement signed on 15 July 2021. The loan is repayable on the third anniversary of the loan, by 15 July 2024.  The loan can only be used to finance loans made by Forward Partners Venture Advance Limited to customers up to a maximum of 80% of the origination value.

The facility is secured by a fixed and floating charge over the Group's subsidiary, Forward Partners Venture Advance Limited in favour of Triple Point Advancr Leasing Plc.

5.  EARNINGS PER SHARE & NAV PER SHARE

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Group by the weighted average number of ordinary shares in issue during the year.

	30.06.2022		30.06.2021 (restated)
Profit/(loss) attributable to equity holders of the Group (£'000)	(24,928)		13,009
Weighted average number of ordinary shares in issue	134,613,117		134,613,117
Basic earnings per share (pence per share)	(19)		10

The basic and diluted EPS are the same as there are no dilutive financial instruments.

	30.06.2022		31.12.2021 (audited)
Net assets (£'000)	114,778		139,577
Weighted average number of ordinary shares in issue	134,613,117		134,613,117
NAV* per share (pence per share)	85		104

*NAV (Net Asset Value)

6.  RESTATEMENT OF PRIOR YEAR INTERIM BALANCES

Forward Partners Group plc holds investments in Forward Partners 1 L.P., Forward Partners II L.P., and Forward Partners III L.P. which was acquired in mid-2021. In preparing the 2021 interim financial information, these investments were accounted for under the acquisition method under IFRS 3. At year end, it was noted that these investments should have been accounted for under merger accounting. Prior year interim balances have been restated to reflect the correct accounting treatment, including an adjustment to reclassify the value of carried interest from the funds.

In addition, prior year consolidated balances included Forward Partners Venture Advance Ltd ("Forward Advances") which was acquired by the Group on 19 July 2021. The restated consolidated balances for June 2021 have excluded any amounts from Forward Advances.

The following tables shows the impact of the correction of accounting for investments held from acquisition accounting to merger accounting on the June 2021 Statement of Comprehensive Income and Statement of Financial Position.

Consolidated Statement of Comprehensive Income	30.06.2021 (unaudited) £'000	Restatements/ Adjustments £'000	30.06.2021 (restated) £'000
Fair value change in gains on investments held at fair value through the profit and loss	14,573	3,940	18,513
Revenue	1,404	(941)	463
Other income	228	(228)	-
Total Income	16,205		18,976
Administrative expenses	(2,260)	351	(1,909)
Carried interest charge	-	(3,956)	(3,956)
Depreciation and amortisation	(16)	(83)	(99)
Total Operating Expense	(2,276)		(5,964)
Profit from operations	13,929	-	13,012
Finance costs	-	(3)	(3)
Profit before taxation	13,929		13,009
Corporation tax expense	-		-
Profit for the year after tax attributable to owners of the parent	13,929		13,009
Other comprehensive income	-		-
Total comprehensive income attributable to owners of the parent	13,929		13,009

Consolidated Statement of Financial Position	30.06.2021 (unaudited) £'000	31.12.21	30.06.2021 (restated) £'000
Non-Current Assets
Intangible assets	1,210	(1,210)	-
Financial assets held at fair value through the profit or loss	98,936	12,254	111,190
Property, plant and equipment	50	(12)	38
Right of Use Asset	119	8	127
	100,315		111,355
Current Assets
Trade and other receivables	321	(12)	309
Current Financial assets held at FVPL	2,438	(2,438)	-
Cash and cash equivalents	412	5	417
	3,169		726
Total Assets	103,484		112,081
Current Liabilities
Trade and other payables	1,242	(1,056)	186
Lease Liabilities < 1yr	118	-	118
	1,360		304
Non-Current Liabilities
Deferred tax liabilities	6	-	6
Provision for carried interest	-	9,594	9,594
	6		9,600
Total Liabilities	1,366		9,904
Net Assets	102,118		102,177
Capital and reserves attributable to equity holders of the Group
Called up share capital	981	(931)	50
Share premium account	75,936	(75,936)	-
Non-controlling interest	20,368	(20,368)	-
Merger reserve	-	77,473	77,473
Retained earnings	4,835	19,819	24,654
	102,120		102,177

7.  DIVIDENDS

No dividends were paid during the year (2021: Nil).

8.  RELATED PARTY DISCLOSURES

Transactions with key management personnel

During the period, key management invoiced the group NIL for consultancy services (2021: £10k). The amount owed to key management at the balance sheet date is NIL (2021: NIL).

Key Management Personal Compensation

The remuneration of the executive directors of Forward Partners Group Plc, from all Group companies for the six months period 30 June 2022 and 2021 were as follows:

	Period ended 30.06.22
	Short term employee benefits			Post-employment benefits	Total
	Salary	Benefits		Pension
	£'000	£'000		£'000	£'000
Executive directors	216	5		9	230
Other Group entity directors	253	11		3	267
Total	469	16		12	497

	Period ended 30.06.21
	Short term employee benefits			Post-employment benefits	Total
	Salary	Benefits		Pension
	£'000	£'000		£'000	£'000
Executive directors	182	5		10	197
Other Group entity directors	180	-		5	185
Total	362	5		15	382

The remuneration of the non-executive directors was as follows:

		30.06.22		30.06.21
		£'000		£'000
Total		95		32

During the six-months period, Jonathan Mckay Management LLP, a service company of the Chairman, invoiced the Group NIL (2021 - £10k) for consultancy services. The amount owed to Jonathan Mckay Management LLP at the balance sheet date is NIL (2021 - NIL).

The Group operates a carried interest scheme. The senior management and related parties were entitled to Carried interest of £4,548,755 (2021: £1,845,732). No amounts have been paid out, these are their entitlements as at the year end, assuming all the investments were converted to cash at that point, less estimated selling costs.

9.  ULTIMATE CONTROLLING PARTY

Forward Partners Group Plc, incorporated in England and Wales, is the ultimate parent company of the Group. The ultimate beneficiary, and the largest shareholder is Blackrock International Limited, which holds 70.4% of the issued share capital of Forward Partners Group Plc.

10.  EVENTS AFTER THE REPORTING DATE

On 24 August 2022 the Group commenced the wind down of Forward Partners Venture Advance Ltd. The entity is expected to continue to operate for the purposes of recovering its receivables and settling creditor balances.

No further adjusting or significant non-adjusting events have occurred between the 30 June reporting date and the date of authorisation.

Forward Partners Group Plc

COMPANY INFORMATION

for the year ended 31 December 2021

DIRECTORS:	Matthew Bradley (resigned 7 June 2022) Nicholas Brisbourne Susanne Given Jonathan Mckay Christopher Smith Lloyd Smith (appointed 21 March 2022)
SECRETARY:	Allen Browning (resigned 7 June 2022) Lloyd Smith (appointed 7 June 2022)
REGISTERED OFFICE & BUSINESS ADDRESS	Huckletree Shoreditch, Alphabeta Building, 18 Finsbury Square, London, EC2A 1AH
REGISTERED NUMBER:	13244370 (England and Wales)
AUDITOR:	Grant Thornton UK LLP 30 Finsbury Square London EC2A 1AG
SOLICITORS:	Gowling WLG (UK) LLP 4 More London Riverside London SE1 2AU
REGISTRARS:	Equiniti Limited Highdown House Yeoman Way Worthing West Sussex BN99 3HH
NOMINATED ADVISER & BROKER:	Liberum Capital Limited Ropemaker Place 25 Ropemaker Street London EC2Y 9LY
BANKERS	Barclays Bank Plc 1 Churchill Place London E14 5HP

 

END

 

 

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