Interim Results

Forward Partners Group PLC

28 September 2023

 

Forward Partners Group plc

("Forward Partners" or "the Company")

INTERIM RESULTS

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 2023.

Financial highlights

●	Portfolio Fair Value of £76.9m (31 December 2022: £80.0m) inclusive of new investments.
●	Fair value decline of 5.4% exclusive of realisations and new investments.
●	NAV per share of 67.0p (31 December 2022: 71.8p).
●	Cash at 30 June 2023 of £14.1m (31 December 2022: £17.2m).
●	Net Operating Expenses reduced to £1.8m for H1, down from £4.1m in the same period last year.

Portfolio highlights

●	Forward's Top 151 companies by Fair Value delivered a 12-month weighted average revenue growth of 133.1% in the first half2.
●	71.2% by Fair Value of the Top 15 portfolio companies have 18 months or more cash runway, are on the path to break even without the need for further fund-raising or are profitable3.
●	Five investments made into five businesses:
	○	Two new investments totalling £0.7m into motor finance platform Vision Funding and a 'federated learning' AI platform (to be announced following final close of their round).
	○	Three follow-on investments totalling £0.5m.
●	£0.1m realisations in the period representing deferred consideration from the Somo exit completed in 2022.

Post-period review

●	Post-period, a further new deal of £0.5m into a Web3-powered alternative asset platform and a £0.1m follow-on round into portfolio company Uplearn completed.
●	Strong deal flow, particularly from early-stage companies leveraging generative AI. 1,657 deals assessed in the first half with 196 taken through to meeting and in-depth assessment stage.
●	Portfolio embraces generative AI technology. 41.6% of companies by Fair Value are classified as AI.

Outlook

Underlying portfolio performance was once again strong in H1 2023 and we remain confident in the exit potential of our investments. However, the venture capital and exit markets remain subdued and we are seeing fewer realisations than anticipated at the time of our IPO. At our current rate of investment and expenses the Group has sufficient cash runway into late 2024. In response, the Board is considering a range of options to maximise the considerable shareholder value in the company.

Nic Brisbourne, CEO at Forward Partners, commented:

"While the environment in which we operate remains tough, there are signs that things are beginning to stabilise. We are encouraged by the substantially smaller reduction in Portfolio Fair Value in the half versus the full year, which itself was an improvement on H1 2022.

Our portfolio remains strong, with many of our investee companies continuing to grow revenues at an impressive rate while maintaining healthy financial positions. The potential within our portfolio is significant and we remain confident in our ability to deliver attractive returns when the window for exits reopens.

In the near-term, while Forward has sufficient funding to see it through the majority of 2024 without compromising its approach, accurately pinpointing when a meaningful market recovery will take place remains difficult. Hence, the Board is considering a range of options to ensure Forward maximises returns for investors."

NOTES:

¹ Top 15 portfolio investments denote the most valuable companies held in Forward's portfolio by Fair Value at a point in time. Except where otherwise noted in this release, we refer to the Top 15 cohort as at 31 December 2022 to provide a meaningful basis for comparison. At that time, the Top 15 comprised Gravity Sketch, Robin AI, Spoke, Makers, OutThink, Ably, Apexx, Breedr, Juno, KoruKids, Snaptrip, Plyable, Silico, Patch (Arena) and Koyo. Following the wind-down of Koyo in the first half, it will be omitted from portfolio calculations. The Top 15 is updated in Forward's final year results.

² Revenue growth average weighted by the 30 June 2023 Fair Value of the Top 15 portfolio companies at 31 December 2022.

³ Management estimates as of 21 September 2023. 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.

Enquiries

Forward Partners Group plc	Via Alma PR
Nic Brisbourne, CEO
Lloyd Smith, CFO and Company Secretary
Liberum Capital Limited	Tel: [phone]
(Nominated Adviser and Broker)
Chris Clarke
Lauren Kettle
Cara Murphy
Alma PR	Email: [e-mail]
(Financial PR Adviser)	Tel: [phone]
David Ison
Andy Bryant
Will Ellis Hancock

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. It holds a ten-year track record of making venture capital investments and receives over 4,000 start-up funding applications every year.

The Group brings together venture capital with highly specialised growth support from Forward's Studio. This model supports founders to build stronger businesses faster to provide better outcomes for companies and investors alike.

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.

For more information and insights into Forward's portfolio, subscribe to Forward's email newsletter 'Forward Thinking' or visit www.forwardpartners.com.

STRATEGIC REPORT

Summary

While the market remains subdued, there are encouraging signs of stabilisation. The reduction in Portfolio Fair Value this half was substantially smaller than at the year end, which was in turn significantly smaller than the fall we saw in H1 2022. As previously flagged, the key contributors to the decline were our decision to write off the Koyo Loans investment and continued weakness in the venture capital and exit markets.

The first half was another period in which we continued to make new investments, with generally strong performance across many of our portfolio companies and continued tailwinds for the startup ecosystem. Early-stage venture capital remains an attractive market to be in and Forward has a strong portfolio with the capacity to generate significant realisations over time, particularly as the amount of dry powder in the market and new funds being raised augurs well for a rapid recovery once sentiment turns.

With the market for exits remaining challenging, we are not seeing the flow of realisations that we expected would improve our cash position. With our current rates of investment and expenses the Group is funded to late 2024.  In response, the Board is considering a range of options to maximise the considerable shareholder value in the company.

Financial performance

The Fair Value of Forward's venture portfolio at 30 June 2023 was £76.9m (31 December 2022: £80.0m), a decline of 5.4% over the period, exclusive of new investments.

Our cash balance reduced by £3.0m over the first half, £1.1m due to investments and £1.9m due to expenses. Post period end we have made two investments totalling £0.6m.

Portfolio update

Our Top 15 portfolio investments by Fair Value continue to grow, delivering a 12-month weighted average revenue growth of 133.1% in H1 2023.

These investments have strong balance sheets too. 71.2% by Fair Value of the Top 15 portfolio companies have 18 months or more cash runway, are on the path to breakeven without the need for further fund-raising or are profitable. During the period, we completed two further investments. We deployed £200k via a Convertible Loan Note (CLN) into Vision Funding (visionfunding.co.uk), a company building a platform that helps car dealers to connect buyers with the right motor finance for their needs, and a further £0.5m investment as part of its £2.4m seed round into an AI-driven predictive analytics platform for industrial machinery. Post-period, Forward invested £0.5m as part of a £2.5m round into a Web3-powered alternative asset investing platform.

Market context

At the beginning of the period we observed a positive shift in venture capital investor sentiment. However, since the collapse of Silicon Valley Bank in March the mood has been up and down without significantly improving. Overall UK VC investment levels are down 58% on a year ago (according to Pitchbook). While there is significant variability between sectors, interest in companies exploiting generative AI, a key focus for Forward, has remained very strong.

Pleasingly, several London-based VC firms have announced new funds in recent months and there is still a lot of dry powder waiting to be invested. Moreover, individual partners are keen to get back to making new investments and building their track records. This sentiment has persisted for a while, suggesting that the VC market is waiting for a catalyst to emerge before increasing investment levels. Possible catalysts include an opening of the IPO window and clear signs that interest rates have peaked. 

Forward's portfolio positioned to capitalise on Generative AI advancements

Forward's portfolio includes 17 businesses now classified as AI*. At 30 June 2023, the Company had invested £31.9m in these holdings, representing 41.6% of the portfolio's Fair Value, totalling £76.9m.

Last year, we spoke of our enthusiasm for AI. This year, we've witnessed its swift evolution. The UK has gained prominence within the space: not only is it a leading global startup hub, it is the third largest global ecosystem for AI-oriented startups. Leading companies including OpenAI, Google and StabilityAI now have major operations here. We have also seen generative AI become a staple for tech companies. Our companies are embracing it in both products and operations, and we're seeing a wave of innovative startups using it to craft remarkable products and experiences.

The market is evolving rapidly, moving from hype to pragmatic enthusiasm. We are already seeing companies that rode the hype wave without building competitive advantage are starting to falter as platform companies like OpenAI are moving up the value chain to capture revenue opportunities. However, the businesses with strong defensive moats are continuing to thrive.

As shared in the Company's July Portfolio update, advances in generative AI are opening opportunities for whole new product categories and enabling early-stage companies to develop products faster and more efficiently. Our deal flow has been transformed and we are encouraging fast adoption of generative AI within our portfolio.

Adding value

Through this period, we have remained dedicated to empowering UK-based founders and early-stage companies. Our studio team has been instrumental in supporting our portfolio companies. The team delivered a total of 37 projects across almost 30% of our portfolio by Fair Value, including recruiting senior hires, salary benchmarking, and coaching. As always, our Investment team worked closely with our founders and their boards to guide and support their growth strategy.

We have shared regular business insights with almost 10,000 entrepreneurs each fortnight via our email newsletter 'The Forward Fortnightly"; hosted a range of public and private events including "Forward Partners Live" and nurtured a high-potential cohort of founders through our 'Funding Lab' accelerator programme in July.

Outlook

While we navigate short-term challenges, venture capital remains an attractive asset class - particularly at the early stage where company growth and value creation are fastest. Our confidence in our investments remains high, and the portfolio has once again enjoyed rapid growth. We expect to see further stabilisation in the market, and as the market recovers, the dry powder from new and existing later-stage funds will be deployed into companies like those within our portfolio. We're mindful that this may take time and will likely slow down exits and realisations. Though Forward holds cash reserves to see the business through at least the next 12 months, our priority now is exploring options to improve our position.

Nic Brisbourne

Chief Executive Officer

27 September 2023

* Previously the Company categorised its portfolio as 'Applied AI', 'Marketplaces', 'eCommerce' and 'Other' according to their primary line of business. However, many of the companies classified as 'Marketplaces', 'eCommerce' and 'Other' make extensive use of AI in their products and after feedback from investors, reporting will now simply specify the percentage of the portfolio that offers AI exposure, defined as businesses that are either applying AI or have a generative AI product in market or near launch. This 'AI exposure' metric covers 41.6% of the portfolio as of today. The increase from the 40% of the portfolio categorised as 'Applied AI' reported in Forward's 2022 results is partly due to the inclusion of companies previously held in other categories and partly because AI companies are growing more rapidly than other companies in the portfolio.  

PORTFOLIO REVIEW

At 30 June 2023, Forward Partners' portfolio consisted of 43 active companies.

The  Fair Value of Forward's venture portfolio (the gross value of the Group's investment holding before deductions for carried interest) was £76.9m (vs 31 December 2022: £80.0m), a 5.4% decline exclusive of realisations and new investments.

Additional movements in the period result from £0.1m in portfolio realisations (reducing the size of the portfolio) and new investments of £1.2m (increasing the size of the portfolio). The portfolio companies by valuation' table provides further detail on Fair Value movements within the portfolio.

Portfolio

Our portfolio has been constructed to maximise risk-adjusted returns by balancing upside potential, chance of failure, likely holding period and concentration risk.

Forward has historically invested in three key operating models: applied AI, marketplaces and eCommerce (recently replacing the latter with Web3). At 30 June 2023, these represented 41.6%, 10.2% and 24.7% of the portfolio respectively. The top fifteen core holdings as at 31 December represented 71.9% of portfolio Fair Value, with the largest holding, Gravity Sketch representing 12.8%.

At 30 June 2023, Forward Partners' portfolio Top 15 holdings by Fair Value were Gravity Sketch, Robin, Spoke, OutThink, Ably, Makers, Apexx, Juno, Snaptrip, Breedr, KoruKids, Counting Up, Up Learn, Virtuoso and Plyable. Please note that we refer to the Top 15 cohort at 31 December 2022 to provide a meaningful basis for comparison for calculation unless otherwise notes. At that time, the Top 15 comprised Gravity Sketch, Robin AI, Spoke, Makers, OutThink, Ably, Apexx, Breedr, Juno, KoruKids, Snaptrip, Plyable, Silico, Patch (Arena) and Koyo. Following the wind-down of Koyo in the first half, it will be omitted from portfolio calculations. The Top 15 is updated in Forward's final year results.

Investments

In the period from 1 January 2023 to 30 June 2023, Forward Partners invested £1.2m of which £0.7m was invested in two new portfolio companies and £0.5m invested into three existing portfolio companies through follow-on rounds.

New investments

-- Current period to 30 June 2023

●	Vision Funding (https://www.visionfunding.co.uk). Forward Partners invested £200k via a Convertible Loan Note (CLN) in Vision's pre-seed round. The company is building a platform that helps car dealers to connect buyers with the right motor finance for their needs.
●	AI platform - to be announced. Forward Partners invested £0.5m into an AI platform as part of its £2.4m seed round, alongside other investors.

-- Post period end

●	Alternative investment platform - to be announced. Forward Partners invested £0.5m into a Web3-enabled investment platform as part of its £2.5m seed round, alongside MiddleGame Ventures and others investors.

Follow-on investments

-- Current period to 30 June 2023

●	Three follow-on investments into portfolio company PocDoc (https://pocdoc.co), Clustermarket (https://clustermarket.com) and Fy (https://www.iamfy.co) totalling £0.5m.

-- Post period end

●	1 follow-on investment into portfolio company Uplearn (https://uplearn.co.uk) totalling £0.1m.

Realisations

●	£0.1m realisations in the period representing deferred consideration from the Somo exit completed in 2022.

Top 15 Portfolio Companies by valuation  

Figures shown below, including total investment, Portfolio Fair Value and illustrative return, are correct as at 30 June 2023. The Top 15 investments at 31 December 2022 cover 71.9% of the portfolio by Fair Value.

	Fair Value 31/12/22	Invested	Realised	Delta	Fair Value 30/06/23
	£m	£m	£m	£m	£m
⥈ Gravity Sketch	7.6	0.0	0.0	2.2	9.8
⥈ Robin	6.2	0.0	0.0	2.0	8.2
⥈ Spoke	6.1	0.0	0.0	-0.3	5.8
⥈ OutThink	4.6	0.0	0.0	0.7	5.3
⥈ Ably	4.0	0.0	0.0	0.5	4.5
⥈ Makers	5.1	0.0	0.0	-1.4	3.7
⥈ Apexx	3.6	0.0	0.0	-0.2	3.4
⥈ Juno	3.5	0.0	0.0	-0.6	2.9
⥈ Snaptrip	2.6	0.0	0.0	0.0	2.6
⥈ Breedr	3.6	0.0	0.0	-1.3	2.3
⥈ KoruKids	3.2	0.0	0.0	-0.9	2.3
⥈ Plyable	2.3	0.0	0.0	-0.3	2.0
↠ Counting Up	1.1	0.0	0.0	1.1	2.2
↠ Up Learn	1.6	0.0	0.0	0.6	2.2
↠ SpotQA_Virtuoso	1.8	0.0	0.0	0.4	2.2
↞ Patch	1.9	0.0	0.0	-0.2	1.7
↞ Silico	2.2	0.0	0.0	-1.5	0.7
↞ Koyo Loans	2.3	0.0	0.0	-2.3	0.0
Remaining portfolio	16.7	1.2	-0.4	-2.4	15.1
Portfolio Value	80.0	1.2	-0.4	-3.9	76.9

⥈ Part of the Top 15 in December 2022 and June 2023

↠ New to the Top 15 as at June 2023

↞ No longer part of the Top 15 as at June 2023

 

 

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 2014. Their 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. It holds a rating of 4.5/5 on G2.

Recent news

●	In June 2023, Gravity Sketch was selected as one of the 10 UK recipients of the Google for Startups Black Founders Fund 2023.
●	In the same month, the company released Gravity 6.0. This update provides designers with new collaboration tools to communicate and improve their creative ideas.
●	In April 2022, Gravity Sketch announced the completion of a $33m funding round. Forward participated with a further £0.7m in this Series A led by Accel alongside Google Ventures.

Total invested: £1.9m | Fair Value: £9.8m | Fair Value / Investment: 5.1x  | FD Category  C

Robin AI

Robin AI is a legal-tech company that combines software, generative AI, machine learning and a team of world-class legal professionals, to deliver solutions to radically improve the speed and reduce the cost of agreeing simple contracts. Established in 2019 by Richard Robinson, the company was inspired by Richard's personal experiences as a lawyer. It holds a rating of 4.5/5 on G2.

Recent news

●	In July 2023, Robin AI launched their Copilot feature, a generative AI search tool that allows clients to extract information from across their company's contracts.
●	In June 2023, the company was selected for the "Ones to Watch" feature in this year's edition of The Sunday Times 100. This list celebrates Britain's fastest-growing private companies, with just 8 shortlisted.
●	In February 2023, the company announced a $10.5 million round led by Plural, the VC co-founded by Taavet Hinrikus - co-founder and ex-Chairman of Wise, with further participation from Forward, Episode 1 and angel investors including Tom Blomfield  - ex CEO and President of Monzo. Forward has been an investor since 2019.

Total invested: £1.7m | Fair Value: £8.2m | Fair Value / Investment: 4.9x  | FD Category  D

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 4.6/5.

Recent news

●	In June 2022, Spoke completed a £5m crowdfunding round on Seedrs, deemed the platform's largest campaign of the year.
●	In May 2021, Spoke announced a media-for-equity deal with ITV. Since then, the company has been advertising alongside major sporting events, news programmes, films and top drama shows, including The Six Nations, ITV News, James Bond and The Brit Awards.

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

OutThink

OutThink is the world's first cybersecurity human risk management platform. Founded in 2019 by Flavius Plesu, the Company provides next-generation security awareness training to large and complex organisations across the world. It has been developed specifically to identify and measure human risk and affect behaviour change. OutThink holds a rating of 5/5 on Gartner.

Recent news

●	In May 2023, the company was named one of the top 20 finalists in the European Deep Tech Scaleups category of the EIT Digital Competition. This recognition highlights the company's innovation in the deep technology industry.
●	In February 2023, OutThink was named in Sifted's "Cybersecurity Startups to Watch" list.
●	In October 2022, the company announced the completion of a $10m round, led by AlbionVC. The company will use the funding to expand its leadership expertise and accelerate international distribution as its solution continues to gain market traction.

Total invested: £1.6m | Fair Value: £5.3m | Fair Value / Investment: 3.4x  | FD Category  D

 

Ably

Ably is a realtime platform that powers live and collaborative experiences. Established in 2016 by Matthew O'Riordan and Paddy Byers, the company is trusted by brands like HubSpot, Toyota, and Webflow to power business-critical chat, order delivery tracking and document collaboration across millions of simultaneously connected devices around the world. Ably holds a rating of 4.7/5 on G2.

Recent news

●	In July 2023, Ably was acknowledged in the G2 2023 Summer Report winning awards for Best Support, High Performer, and Highest User Adoption.
●	In June 2023, Ably joined the Datadog partner network, offering seamless monitoring capabilities to Ably Enterprise customers.
●	In February 2023, Ably launched a Next.js Starter Kit on Vercel Templates Marketplace to help front-end developers get started, rapidly building Next.js apps with real time features.
●	In June 2021, Ably announced a successful raise of $70m led by Insight Partners and Dawn Capital.

Total invested: £1.7m | Fair Value: £4.5m | Fair Value / Investment: 2.6x  | FD Category  B

 

Makers

Makers is creating a new generation of tech talent by identifying high-potential career switchers who possess no background in tech, training them in software development, then placing them in industry-leading companies. Makers has trained 3,000 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 bootcamp review site SwitchUp.

Recent news

●	In July 2023, Makers became a B Corporation, joining the worldwide movement for a more inclusive, equitable, and sustainable economy. In the same month it also partnered with Tech She Can to empower small businesses, social enterprises, and charities through a new levy-sharing initiative. This new initiative prioritises diversity and social impact by offering fully-funded tech apprenticeships to upskill teams.
●	In June 2023, the company reopened the Women in Software Awards for its fifth year. The awards are dedicated to supporting and promoting women in technology.
●	In December 2022, the company announced the completion of a £7m round led by BGF.

Total invested: £1.5m | Fair Value: £3.7m | Fair Value / Investment: 2.5x  | FD Category  E

Apexx Global

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. Established in 2015 by Rodney Bain, Peter Keenan and Toreson Lloyd, the team has grown to 41 people working across three countries, serving clients that include ASOS, Avon, Xe, eShopworld and Air Seychelles.

Recent news

●	In March 2023, APEXX Global raised $25m to expand its presence in North America and enhance its leading payment orchestration platform.
●	Apexx now has over 120 integrated partners and operates across more than 70 countries.

Total invested: £2.3m | Fair Value: £3.4m | Fair Value / Investment: 1.5x  | 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, and more cost-efficient services. It holds a Trustpilot rating of 4.9/5.

Recent news

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

Total invested: £2.4m | Fair Value: £2.9m | Fair Value / Investment: 1.2x  | 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

●	In March 2022, Snaptrip acquired Independent Cottages. This was 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.
●	The company was profitable last year and is expected to continue to be in the short to medium term.

Total invested: £0.6m | Fair Value: £2.6m | Fair Value / Investment: 4.2x  | FD Category  D

Breedr

Breedr is a platform that helps farmers to manage, buy and sell livestock. Founded in 2018 by Ian Wheal, their solution boosts efficiency, output and returns whilst reducing the carbon footprint of farms by up to 28%. Their solution has grown into a network of thousands of farmers with over half a million animals on the platform. 

Recent news

●	In July 2023, the Dunbia Group announced their partnership with Breedr on the Low Carbon Beef Project, DEFRA funded initiative delivered by Innovate UK.
●	In May 2023, Breedr, announced a new partnership with the University of Georgia on the Next Generation Agriculture (NextGA) project, backed by the National Science Foundation.
●	In March 2022, Breedr announced a $16m Series A round led by Investbridge Capital, with participation from LocalGlobe and Forward Partners.

Total invested: £1.4m | Fair Value: £2.3m | Fair Value / Investment: 1.6x  | FD Category  C

Koru Kids

Koru Kids is a childcare marketplace that connects parents with vetted part-time nannies and childminders. Established in 2016 by Rachel Carrell, the company has delivered over 1 million hours of childcare to families and works with over 10,000 nannies across the UK. It holds a TrustPilot rating of 4.5/5.

Recent news

●	In November 2022, London VC Nesta announced Koru Kids as one of the first investments from their newly secured £50M fund.
●	In October 2022, Research commissioned by Koru Kids, in conjunction with The Fatherhood Institute examined the current state of UK paternity leave. Its results were widely covered by the UK media, including The Guardian, The Independent and The Evening Standard.
●	In August 2022, Koru Kid's Home Nursery Service was awarded the highest possible grade at registration.

Total invested: £2.2m | Fair Value: £2.3m | Fair Value / Investment: 1.1x  | FD Category  B

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 September 2023, the company welcomed Tom Platt as Chief Executive Officer. Previously the Chief Operating Officer at TotallyMoney, a leading consumer finance app, Tom spearheaded its growth to five million customers.
●	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: £2.2m | Fair Value / Investment: 2.1x  | FD Category  B

Uplearn

Up Learn is a smart learning platform for independent study that uses AI and neuroscience to helps schools and students get better results. The company was founded in 2016 by Andrew Mitson and Guy Riese. It uses machine learning to construct a personalised learning experience that is tailored to each student's strengths and weaknesses.

●	In September 2023, UpLearn customers reported higher attainment for A level students. Athena Learning Trust reported that students in Up Learn subjects achieved A*/As at twice the rate of students studying non Up Learn subjects.
●	In September 2023, the company announced that UpLearn courses would soon be available for GCSE subjects.

Total invested: £1.2m | Fair Value: £2.2m | Fair Value / Investment: 1.8x  | FD Category  C

Virtuoso

Virtuoso is a test automation platform for software businesses. The company is pioneering the next generation of codeless, intelligent testing, by combining Robotic Process Automation, AI/ML, and Natural Language Programming to deliver an unrivaled authoring experience, while reducing test maintenance to near zero. It holds a G2 rating of 4.6/5.

Recent news

●	In July 2023, Virtuoso announced their strategic partnership with TTC, bringing together their expertise in the software assurance domain.
●	In September 2022, Virtuoso was cited by Forrester report as the leading platform in the continuous automation testing (CAT) landscape.

Total invested: £1.3m | Fair Value: £2.2m | Fair Value / Investment: 1.7x  | FD Category  D

Plyable

Plyable is the world's leading custom composite mold producer. Its platform delivers the highest quality precision molds up to 45% faster using advanced AI technology coupled with industry experts. Founded in 2012 by Martin Oughton and Adam Lofts, Plyable is used by leading automotive and aeronautics companies including McLaren, Mercedes and Boeing.

Recent news

●	In June 2023, Plyable achieved recognition as a member of Boeing Aerospace Xelerated portfolio. As a cohort 1 graduate from the Boeing-backed accelerator program, Plyable's composite tooling automation platform proved its potential as a digital startup capable of advancing the aerospace industry.
●	In March 2023, Plyable were nominated for The 2023 JEC Composites Startup Booster Award.
●	In October 2022, Plyable secured a $3.2m round Led by Maven Capital Partners, supported by composite industry leaders Solvay with participation from Forward Partners.

Total invested: £1.1m | Fair Value: £2.0m | Fair Value / Investment: 1.8x  | FD Category  D

 

Interim Financial Review

The first half of 2023 has seen some improvement in market multiples for some sections of the technology market. Consequently, the downward market pressures on our portfolio valuations are easing. Our portfolio continues to deliver strong revenue growth.

In 2022, Forward's investment strategy focused on the portfolio, providing follow-on investments to ensure that our key companies maintained strong balance sheets with sufficient cash runways. During H1 there has been a noticeable reduction in these follow-on rounds as many of these companies are now in a good position and focus on our investments that are expected to generate the greatest returns.

At Forward, I've sought to instil a strong cost-conscious culture that is focused on attention to detail. I'm pleased to report a reduction in net operating expenses for the first half of £1.8m, down from £4.1m in the same period last year. This is a consequence of both the winding down of Forward Advances, our revenue-based financing product, alongside reducing headcount in the remaining Group.

Valuations

The Fair Value of Forward's Portfolio at the half-year is £76.9m (31 December 2022: £80.0m), a 5.4% year-on-year decline excluding new investments and realisations. 2.9% of the total portfolio value decline this period is accountable to the write-off of Koyo, which had a value of £2.3m at the year end as a consequence of the company moving its loan book into run-off.

Realisations

£0.1m realisations were made in the period resulting from deferred consideration from the Somo exit in 2022.

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 (the Net Asset value of the investment funds) and its Cash. Net assets at 30 June 2022 were £90.5m (2022: £96.7m), resulting in a Net Asset Value (NAV) per share of 67.0 pence. The Group's Net assets are substantially made up of its investments in the portfolio. The Fair Value of the funds on the balance sheet at the half year is £76.9m (2022: £80.0m).

Cash at 30 June 2023 was £14.1m, versus £17.1m at 31 December 2022, meaning £3.0m spent on new and follow on investments of £1.2m, net operating expenses of £1.9m and £0.1m of realisations. The Group will always seek to maintain sufficient cash to meet its obligations for a minimum period of 12 months. The Group does not hold any institutional debt on its balance sheet.

Consolidated Statement of Comprehensive Income

The largest movement on the consolidated statement of comprehensive income is the Fair Value change in the value of the portfolio companies being an unrealised loss of £4.4m (H1'22: unrealised loss of £28.0m). 

Revenue generated by the Studio was £214k (H1 '22: £81k).

Net operating expenses decreased to £1.8m for the first half (H1 '22: £4.1m), predominantly as a result of the company's reducing headcount and the wind-down of Forward Advances.

Advances

In August 2022, Forward announced a managed wind-down of its subsidiary Forward Partners Venture Advance Limited ("Advances"). The business is continuing to trade, but is now collecting minimal payments and related fee income from two outstanding debtors. We are therefore close to completing the managed wind-down of the subsidiary. Accordingly, once trading ceases a capital reduction will be undertaken and the cash will be distributed to the parent company, after which we expect to place it into a Members Voluntary Liquidation.

Outlook

The valuation of the portfolio, excluding new investments, realisations and 2.9% attributable to the Koyo write-off, reduced by 2.5%. The previous declines in six monthly periods were 15.1% and 23.9% for H2 2022 and H1 2022 respectively. The valuation dates over the last 18 months demonstrate the decline in value has slowed substantially. At this stage it is too early to say whether valuations will move upwards, but we remain cautiously optimistic.

Liquidation preferences tend to be introduced in the later funding rounds for start-up companies. Consequently, market headwinds cause greater downward pressure on valuations for early stage investors such as Forward and less so for later stage investors. Meaning, when market comparables are down, Forward takes a larger reduction in its valuations. However, as values increase, Forward will experience greater gains as the impact of liquidation preferences unwind.

Net operating expenses are expected to be in the region of £4m to £4.5m for the full year, which is a substantial reduction of the £7.7m incurred in 2022. Post period, the Group's cash balance will be £12.5m at the end of September 2023.

My main focus over the next few weeks and months will be reviewing the utilisation of cash within the Group. The Group will always seek to maintain sufficient cash to meet its obligations for a minimum period of 12 months.

Lloyd Smith

Chief Financial Officer

27 September 2023

Forward Partners Group Plc

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the six months ended 30 June 2023

 

	Note		Period Ended 30.06.23 £'000		Period Ended 30.06.22 £'000
Fair value change in gains on investments held at fair value through profit and loss	4		(4,354)		(28,010)
Profit/(Loss) on disposal of investments			126		(41)
Revenue	2		220		367
Total Income			(4,008)		(27,684)
Administrative expenses			(2,112)		(4,324)
Total Operating Expense			(2,112)		(4,324)
Loss from operations			(6,120)		(32,008)
Finance costs			-		(82)
Carried Interest Charge			-		7,347
Depreciation and amortisation			(6)		(56)
Share-based payments			(62)		(129)
Loss before taxation			(6,188)		(24,928)
Corporation tax expense			-		-
Loss for the year after tax attributable to owners of the parent			(6,188)		(24,928)
Other comprehensive income			-		-
Total comprehensive loss attributable to owners of the parent			(6,188)		(24,928)
Basic and diluted Earnings per Share from continuing operations	5		(5)p		(19)p

Accounting policies and notes on pages 17 to 24 form part of these financial statements.

Forward Partners Group Plc

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 June 2023

	Note		30.06.23 £'000		31.12.22 (audited) £'000
Non-Current Assets
Financial assets held at fair value through profit or loss	4		76,863		80,003
Property, plant and equipment			15		21
Deferred tax asset			24		24
			76,902		80,048
Current Assets
Trade and other receivables			169		208
Financial assets held at amortised cost	4		-		28
Financial assets held at fair value through profit or loss	4		-		67
Cash and cash equivalents			14,139		17,188
			14,308		17,491
Total Assets			91,210		97,539
Current Liabilities
Trade and other payables			672		875
			672		875
Total Liabilities			672		875
Net Assets			90,538		96,664
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)
Share-based payment reserve			205		143
Retained earnings			(8,815)		(2,627)
			90,538		96,664
Basic and diluted NAV per share	5		67p		72p

The financial statements were approved and authorised for issue by the board of directors on 27 September 2023, and were signed on its behalf by:

Lloyd Smith

Director

Accounting policies and notes on pages 17 to 24 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 2023

	Share Capital £'000		Share Premium £'000		Merger Reserve £'000		Share Based Payment Reserve £'000		Retained Earnings £'000		Total £'000
Balance at 1 January 2023 (audited)	1,346		130,991		(33,189)		143		(2,627)		96,664
Loss for year attributable to equity holders	-		-		-		-		(6,188)		(6,188)
Options granted and awards exercised	-		-		-		62		-		62
Balance at 30 June 2023	1,346		130,991		(33,189)		205		(8,815)		90,538

	Share Capital £'000		Share Premium £'000		Merger Reserve £'000		Share Based Payment Reserve £'000		Retained Earnings £'000		Total £'000
Balance at 1 January 2022 (audited)	1,346		130,991		(33,189)		-		40,429		139,577
Loss 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

Accounting policies and notes on pages 17 to 24 form part of these financial statements.

Forward Partners Group Plc

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

for the six months ended 30 June 2023

	Note		30.06.23 £'000		30.06.22 £'000
Cash flows from operating activities
(Loss) before tax			(6,188)		(24,928)
Adjustments to reconcile operating loss to net cash used in operating activities
Revaluation of investments held at fair value through profit and loss			4,354		28,010
(Gain)/Loss on disposal of fixed assets			(126)		41
Depreciation and amortisation			6		56
Share-based payments			62		129
Finance expense			-		82
Decrease in trade and other receivables			40		692
Increase in loans receivable			95		358
Decrease in trade and other payables			(204)		(6,981)
Net cash used in operating activities			(1,961)		(2,541)
Tax paid			-		-
Net cash outflows from operating activities			(1,961)		(2,541)
Cash flows used in investing activities
Purchase of investments			(1,214)		(6,294)
Proceeds from disposals			126		463
Purchase of property, plant and equipment			-		(11)
Net cash outflows from investing activities			(1,088)		(5,842)
Cash flows used in financing activities
Proceeds from borrowings			-		11
Interest paid			-		(82)
Repayments of leasing liabilities			-		(24)
Net cash outflow from financing activities			-		(95)
Net decrease in cash and cash equivalents			(3,049)		(8,478)
Cash and cash equivalents at beginning of the period			17,188		31,066
Cash and cash equivalents at end of the period			14,139		22,588

Accounting policies and notes on pages 17 to 24 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 2023, were authorised for issue in accordance with a resolution of the directors on 27 September 2023. 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 2023 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 2022.

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 2022. 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 2023, but do not have an impact on the interim condensed consolidated financial statements of the Group.

2.     REVENUE

			30.06.23		30.06.22
			£'000		£'000
Fees on Advances			6		259
Investment Fees			-		27
From external customers			214		81
Total revenue			220		367

3.     SEGMENT INFORMATION

The following tables present revenue and profit information for the Group's operating segments for the six months ended 30 June 2023 and 2022, respectively:

Year ended 30 June 2023	Revenue	Operating loss*	Depreciation	Net interest	oss before tax	Taxation	Deferred taxation	Loss after tax
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Ventures	(4,228)	(5,832)	(6)	-	(5,838)	-	-	(5,838)
Studio	214	(95)	-	-	(95)	-	-	(95)
Advances	6	(21)	-	-	(21)	-	-	(21)
	(4,008)	(5,948)	(6)	-	(5,954)	-	-	(5,954)
Forward Partners Group Plc	-	(234)	-	-	(234)	-	-	(234)
Total	(4,008)	(6,182)	(6)	-	(6,188)	-	-	(6,188)

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

*  For the purposes of this note, Operating profit/(loss) is presented net of carried interest credit/charge and share based payments.

3.     SEGMENT INFORMATION (continued)

The table below shows assets and liabilities by subsidiary, exclusive of inter-company balances, as at 30 June 2023 and 31 December 2022, respectively:

As at 30 June 2023		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
Ventures		1,214	76,894	10,516	87,410	(425)	-	(425)	86,985
Studio		-	7	1,614	1,621	(98)	-	(98)	1,523
Advances		-	1	894	895	(76)	-	(76)	819
		1,214	76,902	13,024	89,926	(599)	-	(599)	89,327
Forward Partners Group Plc		-	-	1,284	1,284	(73)	-	(73)	1,211
Total		1,214	76,902	14,308	91,210	(672)	-	(672)	90,538
Net assets									90,538

As at 31 December 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
Ventures		9,726	80,032	4,546	84,578	(8,276)	-	(8,276)	76,302
Studio		6	14	386	400	(1,603)	-	(1,603)	(1,203)
Advances		-	2	936	938	(98)	-	(98)	840
		9,732	80,048	5,868	85,916	(9,977)	-	(9,977)	75,939
Forward Partners Group Plc		-	-	11,623	11,623	9,102	-	9,102	20,725
Total		9,732	80,048	17,491	97,539	(875)	-	(875)	96,664
Net assets									96,664

4.     FINANCIAL ASSETS AND LIABILITIES

The carrying amounts of financial assets and financial liabilities in each category as at 30 June 2023 and 31 December 2022 are as follows:

Year ended 30 June 2023	Amortised Cost £'000	FVPL £'000	Total £'000
Financial Assets
Non-current financial assets	-	76,863	76,863
Deferred tax asset	24	-	24
Current financial assets	-	-	-
Trade and other receivables	169	-	169
Cash and cash equivalents	14,139	-	14,139
	14,332	76,863	91,195
Financial liabilities
Trade and other payables	672	-	672
Non-current financial liabilities	-	-	-
	672	-	672

Year ended 31 December 2022	Amortised Cost £'000	FVPL £'000	Total £'000
Financial Assets
Non-current financial assets	-	80,003	80,003
Deferred tax asset	24	-	24
Current financial assets	28	67	95
Trade and other receivables	208	-	208
Cash and cash equivalents	17,188	-	17,188
	17,448	80,070	97,518
Financial liabilities
Trade and other payables	875	-	875
Non-current financial liabilities	-	-	-
	875	-	875

The methods used to measure financial assets and liabilities reported at fair value are consistent with those used as part of the 31 December 2022 accounts. 

Current financial assets relate entirely to loans receivable by the Group. At 30 June 2023 the loans receivable by the Group have been fully provided for and have a net realisable value of NIL. 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.

4.     FINANCIAL ASSETS AND LIABILITIES (continued)

Non-current financial assets		30.06.23 £'000		31.12.22 (audited) £'000
At 1 January		80,003		117,597
Additions		1,214		9,714
Realisations		-		(1,108)
Unrealised gains on the revaluation of investments		(4,354)		(46,200)
At 30 June/31 December		76,863		80,003

The Additions include £700k (2022: £2,410k) in new venture investments.

During the period, the Group received £124k as deferred consideration for investments fully disposed in 2022 and £2k from the disposal of an investment previously written down to Nil. As the net book value of the assets was Nil, no amounts are presented in the reconciliation table above. The full amount of £126k has been recognised as profit on the disposal of investments.

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 profit or 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 ("IPEV") Valuation Guidelines December 2022 as well as the IPEV Board, Special Valuation Guidance issued on 31 March 2020 in response to the Covid-19 crisis ("IPEV Guidelines") as described in the accounting policies and significant accounting judgements sections of this report.

4.     FINANCIAL ASSETS AND LIABILITIES (continued)

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 profit or loss

30 June 2023	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Non-current	-	-	76,863	76,863
Current	-	-	-	-
	-	-	76,863	76,863

31 December 2022	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Non-current	-	-	80,003	80,003
Current	-	-	67	67
Total	-	-	80,070	80,070

Financial liabilities - interest-bearing loans and borrowings

Secured bank loan

The Group had a revolving loan facility of £5.0m provided by Triple Point Advancr Leasing PLC under an agreement signed on 15 July 2021. The facility was secured by a fixed and floating charge over the Group's subsidiary, Forward Partners Venture Advance Ltd in favour of Triple Point Advancr Leasing Plc.

The facility was repaid in full on 30 November 2022.

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.

	30.06.2023		30.06.2022
Profit/(loss) attributable to equity holders of the Group (£'000)	(6,188)		(24,928)
Weighted average number of ordinary shares in issue	134,613,117		134,613,117
Basic earnings per share (pence per share)	(5)		(19)

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

	30.06.2023		31.12.2022 (audited)
Net assets (£'000)	90,538		96,664
Weighted average number of ordinary shares in issue	134,613,117		134,613,117
NAV* per share (pence per share)	67		72

*NAV (Net Asset Value)

6.     DIVIDENDS

No dividends were paid during the year (2022: Nil).

7.     RELATED PARTY DISCLOSURES

Transactions with key management personnel

There were no transactions with key management personnel occurring in the year (2022: 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 2023 and 2022 were as follows:

	Period ended 30.06.23
	Short term employee benefits			Post-employment benefits	Total
	Salary	Benefits		Pension
	£'000	£'000		£'000	£'000
Executive directors	151	4		6	161
Other Group entity directors	129	12		1	142
Total	280	16		7	303

	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

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

		30.06.23		30.06.22
		£'000		£'000
Total		108		95

The Group operates a carried interest scheme. The senior management and related parties were entitled to Carried interest of NIL (2022: NIL). 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.

8.     ULTIMATE CONTROLLING PARTY

Forward Partners Group Plc, incorporated in England and Wales, is the ultimate parent company of the Group. The ultimate controlling party is Blackrock International Limited, which holds 70.4% of the issued share capital of Forward Partners Group Plc through various funds it manages.

9.     EVENTS AFTER THE REPORTING DATE

No 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 interim date 30 June 2023

DIRECTORS:	Nicholas Brisbourne Susanne Given Jonathan Mckay Christopher Smith Lloyd Smith
SECRETARY:	Lloyd Smith
REGISTERED OFFICE & BUSINESS ADDRESS	124 City Road, London, England, EC1V 2NX
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 HSBC UK Alphabeta 14-18 Finsbury Square London EC2A 1BR

Glossary of Terms

"Admission"	The admission of the Enlarged Share Capital to trading on AIM and such admission becoming effective in accordance with the AIM Rules for Companies.
"Advances"	As per definition for "Forward Advances"
"Act"	The UK Companies Act 2006.
"AI"	Artificial intelligence.
"AIM"	AIM, the market of that name operated by the London Stock Exchange.
"AIM Rules"	the AIM Rules for Companies and the AIM Rules for Nominated Advisers.
"AIM Rules for Companies"	The AIM Rules for Companies issued by the London Stock Exchange governing admission to and the operation of AIM, as amended or re-issued from time to time.
"AIM Rules for Nominated Advisers"	The AIM Rules for Nominated Advisers issued by the London Stock Exchange setting out the eligibility, ongoing responsibilities and certain disciplinary matters in relation to nominated advisers, as amended or re-issued from time to time.
"APMs"	The Group assesses our performance using a variety of measures that are not specifically defined under IFRS and are therefore termed Alternative Performance Measures (APMs). The APMs that we use may not be directly comparable with those used by other companies. The Group considers the following to be APMs, which are defined elsewhere in the glossary: Average Portfolio Company Revenue Growth, Deal Flow Diversity, Employee Happiness, Studio Customer Satisfaction, Venture Portfolio Value, Ventures Deal Flow.
"Audit and Valuation Committee"	The audit and valuation committee of the Board.
"Average Portfolio Company Revenue Growth"	Average revenue growth of our top 15 holdings, weighted by the Group's fair value of each asset.
"Board"	The board of directors of the Company from time to time
"Company" or "Group"	Forward Partners Group plc, a company incorporated in England and Wales with registered number 13244370 and having its registered office at Huckletree Shoreditch, Alphabeta Building, 18 Finsbury Square, London EC2A 1AH.
"Deal Flow Diversity"	Deal flow diversity describes the gender and ethnicity split of all deals that reach the 'first meeting' stage of our Ventures investment process.
"Directors" or "Board"	The directors of the Company from time to time, but whose names as at the date of this document appear within the Directors Report section of this document.
"ECL"	Expected Credit Loss
"Employee Happiness"	Employee happiness is defined as the percentage of employees who state in monthly surveys that working at Forward makes them happy.
"ESG policy"	Environmental, social and governance
"Executive Directors"	The executive directors of the Company at the date of this document.
"FCA"	The UK Financial Conduct Authority.
"Forward Advances"	Forward Partners Venture Advance Ltd, a company incorporated in England and Wales with registered number 12401240 and having its registered office at Huckletree Shoreditch, Alphabeta Building, 18 Finsbury Square, London EC2A 1AH. The division of the Company focused on providing flexible revenue-based financing to digital businesses.
"Forward Partners" or "Forward"	The Company or any of its subsidiaries, such as Forward Partners Management (as applicable).
"Forward Partners Management"	Forward Partners Management Company Limited, a private limited company registered in England and Wales with registered number 08819822 and having its registered office at Huckletree Shoreditch, Alphabeta Building, 18 Finsbury Square, London EC2A 1AH.
"Forward Studio"	A division of the Group focused on providing strategic and executional services to Forward Ventures' and Forward Advances' portfolio companies.
"Forward Ventures"	A division of the Group focused on providing capital to high growth, early-stage technology businesses in exchange for an equity stake in such businesses.
"Grant Thornton"	Grant Thornton UK LLP, a limited liability partnership registered in England and Wales with registered number OC307742 and having its registered office at 30 Finsbury Square, London, England, EC2A 1AG.
"Gross IRR"	The internal rate of return expressed before deduction of fees and other expenses.
"Group"	The Company and its subsidiaries from time to time and, for the purposes of this document, including Forward Partners Management and its subsidiaries and subsidiary undertakings.
"IFRS" or "IFRSs"	International Financial Reporting Standards, as adopted for use in the United Kingdom (and in respect of financial periods commencing before 1 January 2021, as adopted for use in the European Union).
"Liberum"	Liberum Capital Limited, a company incorporated in England and Wales with registered number 05912554 and having its registered office at Level 12, Ropemaker Place, 25 Ropemaker Street, London EC2Y 9LY.
"Net Asset Value" or "NAV"	The value, as at any date, of the assets of the Company after deduction of all liabilities determined in accordance with the accounting policies adopted by the Company from time to time.
"Nominated Adviser"	Liberum in its capacity as Nominated Adviser to the Company for the purposes of the AIM Rules.
"Non-executive Directors"	The non-executive directors of the Company at the date of this document.
"Originations"	New loans made to customers before interest is applied.
"Studio Customer Satisfaction"	The Studio team's customer satisfaction score describes the average rating provided by Studio team customers on a scale of 1 (very unsatisfied) to 5 (very satisfied).
"QCA Code"	The corporate governance code for small and mid-size quoted companies published by the Quoted Companies Alliance from time to time.
"Registrar"	Equiniti Limited of Corporate Advice, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA.
"Remuneration and Nominations Committee"	The remuneration and nominations committee of the Board.
"SME"	Small and medium enterprises.
"Startup"	A high growth, early-stage technology business.
"Studio"	As per definition for "Forward Studio"
"VAT"	UK value added tax.
"Ventures"	As per definition for "Forward Ventures"
"Ventures Deal Flow"	Ventures deal flow describes the total number of deals screened by the Ventures team.
"Venture Portfolio Value"	The fair value of the Portfolio as at the date of reporting, calculated in accordance with the Group's Valuation Policy.

 

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