Annual Financial Report

Octopus Apollo VCT plc  
Final Results
15 May 2020
Octopus Apollo VCT plc, managed by Octopus Investments Limited, today announces the final results for the year ended 31 January 2020.
These results were approved by the Board of Directors on 15 May 2020.
You may, in due course, view the Annual Report in full at www.octopusinvestments.com. All other statutory information can also be found there.

	Year to 31 January 2020	Year to 31 January 2019
Net assets (£’000)	132,373	119,024
Profit/(loss) after tax (£’000)	4,144	(1,183)
Net asset value (“NAV”) per share (p)	45.7	47.1
Cumulative dividends paid since launch (p)	74.1	71.1
NAV per share plus cumulative dividends paid (p)	119.8	118.2
Total return %*	3.4	(0.8)
Dividends per share paid in the year (p)	3.0	3.1
Proposed final dividend (p)**	1.1	1.5

^*Total Return is an alternative performance measure calculated as movement in NAV in the period plus dividends paid in the period, divided by the NAV at the beginning of the period.

^**The final proposed dividend of 1.1p per Ordinary share for the year ended 31 January 2020 will, subject to shareholder approval at the Annual General Meeting, be paid on 7 September 2020 to all Ordinary shareholders on the register on 14 August 2020.

Key Dates

Annual General Meeting                                                                    9 July 2020
                                                                                                          4:00 pm at 33 Holborn, London, EC1N 2HT

Final dividend payment date                                                              7 September 2020

Interim results to 31 July 2020 published                                         September 2020

Chairman’s Statement

Performance
I am pleased to present the annual results for Apollo for the year ended 31 January 2020. The NAV plus cumulative dividends as at 31 January 2020 was 119.8p, an increase of 1.6p per share from 31 January 2019. On a total return basis, after adding back the 3.0p of dividends paid in the year, the NAV as a percentage of total return has increased to 3.4% compared to a negative return of 0.8% in the prior year. Further details of the year’s performance are highlighted in the Investment Manager’s Review later in this report.

Whilst the commentary presented below refers primarily to the position at 31 January 2020, shareholders will be aware that as we approached this year end, the world has experienced the Coronavirus pandemic. Octopus Apollo VCT has already felt the effects of this situation and the full consequences upon our Company will not be fully quantified for some time. However, we have reviewed the portfolio since the year end in advance of recent share allotments and this has led to our announcing a reduction in the NAV per share from 45.7p to 42.9p on 2 April 2020, a reduction of 6.1%

As part of the ongoing review process, the Investment Manager will carry out a detailed assessment of the portfolio for the interim results, which will include the impact of the Coronavirus pandemic on the valuations. There could be further changes to a number of valuations. We expect to announce the interim results in September.

Further references to the effects of the Coronavirus pandemic are included later in my statement and elsewhere in the Annual Report and Accounts.

Investment Activity
In the year under review the Company invested £29.3 million, including £19.1 million into five new investments and £10.2 million in follow-on capital to existing investee companies to continue their growth plans. Further details on these can be found in the Investment Manager’s report. There were five exits of portfolio companies during the year generating total proceeds to the Company of £17.8 million, resulting in a net gain of £4.9 million in the year. Out of this, £1.6 million related to interest repayments and £0.1 million of retention payments due at a later point.

Dividend and Dividend Policy
It is your Board’s policy to maintain a regular dividend flow where possible in order to take advantage of the tax-free distributions a VCT is able to provide, and work towards the targeted 5% annual dividend yield policy.

Following careful consideration around the Coronavirus pandemic, I am pleased to confirm that the Board has proposed a final dividend of 1.1p per share in respect of the year ended 31 January 2020. This is in addition to the 1.5p interim dividend paid on the 9 January 2020, and will bring the total dividends declared to 2.6p for the year. As in previous years, dividends will first be paid out of any revenue reserves, with any remaining balance to be paid from the special distributable reserve. The dividend will be payable on 7 September 2020 to shareholders on the register at 14 August 2020.

Dividend Reinvestment Scheme (DRIS)
In common with a number of VCTs, the Company has a dividend reinvestment scheme which was introduced in November 2014. This is an attractive scheme for investors who do not need income, but would prefer to benefit from additional income tax relief on their re-invested dividend.

During the year to 31 January 2020 3,391,234 shares were issued under the DRIS, returning £1.5 million to the Company.

Share Buybacks
Your Company has continued to buy back and cancel shares as required. Subject to shareholder approval of Resolution 10 at the forthcoming Annual General Meeting (AGM) this facility will remain in place to provide liquidity to investors who may wish to sell their shares. Details of the share buybacks undertaken during the year can be found in the Directors’ Report.

Dividends, whether paid in cash or re-invested under the DRIS, and share buybacks are at the discretion of the Board, and in light of the present circumstances, may be reviewed when necessary.

VCT Regulations Status
PwC provides both the Board and Manager with advice concerning ongoing compliance with HMRC’s rules and regulations concerning VCTs. The Board has been advised that the Company is in compliance with the conditions laid down by HMRC for maintaining approval as a VCT.

A key requirement is to maintain at least a 70% qualifying investment level which, at 31 January 2020, was at 100%. As per the regulations, the required investment level in qualifying assets will rise to 80% for VCTs with accounting periods beginning after 6 April 2019. For Apollo, this therefore now increases the qualifying level to 80% from 1 February 2020 for it to maintain its VCT status.

Further information on VCT regulation is detailed in the Directors’ Report.

Annual General Meeting
Your Board has been deliberating the potential impact of the Coronavirus outbreak on the arrangements for our forthcoming Annual General Meeting (“AGM”). We are required by law to hold an AGM within 15 months of the previous AGM, therefore a lengthy postponement or adjournment is not possible. Hence our AGM will be held at 4:00 pm on 9 July 2020, at 33 Holborn, London, EC1N 2HT.

In light of the current Coronavirus ‘stay at home’ measures in the UK, and given that the Company’s Articles of Association do not allow for a “virtual” meeting, the AGM will be run as a closed meeting and shareholders will not be able to attend in person. Shareholders attempting to attend the AGM will be refused entry. The meeting will still comply with the minimum legal requirements for an AGM.

Shareholders will be updated of any changes through regulatory announcements and on our Manager’s website at www.octopusinvestments.com/coronavirus-updates. Formal notices will be sent to shareholders by their preferred method (e-mail or post) and shareholders are encouraged to submit their votes by proxy, as they will not be able to do so in person.

Full details of the business to be conducted at the AGM are given in the Notice of the Meeting. Resolution 12 proposes a change to the Company’s Articles of Association that will allow shareholders to participate remotely in future AGMs.

We always welcome questions from our  shareholders  at  the AGM but this year, to ensure we are able to respond to any questions you may have for either the Portfolio Manager or Apollo VCT Board, please send these via email to [e-mail] by 5:00 pm on 2 July 2020. All questions received will be included on the website along with the relevant replies at www.octopusinvestments.com/our-products/venture-capital-trusts/octopus-apollo-vct/.

.

Outlook and future prospects
We continue to be optimistic about the Company’s future investment prospects and its current diverse portfolio, even while the macro environment remains uncertain in the near term following the Coronavirus pandemic which has caused so much disruption.

As discussed previously, we reduced the NAV per share on 2 April 2020 prior to recent allotments and buybacks as a result of the pandemic. Obviously, a number of our investee companies have been negatively affected by these events, and it will take time to fully understand the long-term impact of Coronavirus on such businesses. However, change can represent opportunity and enterprising management teams can reap rewards. As such, some of the companies Apollo has invested in are also thriving.

As a result of its significant emphasis on origination activities, the investment team has completed five new investments during the year and expects to be able to continue with further new investment activity in 2020, with one follow-on investment of £2.5 million made since year end.

This position has led myself and the Board to the decision that it is in the interest of shareholders for the Company to raise additional funds. The Board currently expects that further fundraising will take place later in the current financial year, and we will release details when available. This will allow the investment team to continue making investments on behalf of the Company, helping to further diversify the assets and create opportunities for future growth. I look forward to addressing all shareholders when the documentation is released in May, with a Chairman’s Statement outlining further details and why I am excited for the opportunity ahead of us.

.

Murray Steele
Chairman
15 May 2020

Investment Manager’s Review

Personal Service
At Octopus we focus on both managing your investments and keeping you informed throughout the investment process. We are committed to providing our investors with regular and open communication. Our updates are designed to keep you informed about the progress of your investment.

Octopus was established in 2000 and has a strong commitment to both smaller companies and to VCTs. We currently manage four VCTs, including Apollo, and manage over £1.2 billion of assets in the VCT sector.

Investment Policy
The majority of companies in which Apollo invests operate in sectors where there is a strong opportunity for growth. Ideally, we invest in companies that have recurring or repeating revenues from financially sound customers. We also seek to invest into companies that will provide an opportunity for the VCT to realise its investment typically within three to five years.

Performance
The Company made a total return per share of 3.4% in the year to 31 January 2020. Whilst the NAV per share decreased from 47.1p to 45.7p, 3.0p of dividends were paid over the period, bringing cumulative dividends paid to date to 74.1p and the total return (NAV plus cumulative dividends) to 119.8p per share.

In the first six months of the year, the Company reported a total return per share of 1.3%, after adding back the 1.5p of dividends paid during that period. The second half of the year generated a positive total return of 2.1% during this period after adding back 1.5p of dividends. This results in an overall positive level performance with a total return per share of 3.4% during the financial year.

As seen through the Top 10 Investments in the year, the performance during the year was largely attributable to strong performance in the new investments made in recent years. This was offset by adverse fair value movements on a portion of the legacy portfolio, discussed in the Portfolio Review below.

The Coronavirus outbreak began to adversely affect the UK and world economy at large after the year end date, and therefore did not have a significant impact at the balance sheet date. Since year end, the Investment Manager reviewed the portfolio on 2 April 2020 along with the Board and assessed the latest position of all the underlying portfolio companies. This resulted in a revised unaudited NAV of 42.9p per share which was used for the allotment on 4 April, 8 April and 5 May 2020, and the basis for the share buyback on 9 April and 30 April 2020. This unaudited NAV change reflects valuation adjustments across the portfolio, which are carried out at fair value. 

Portfolio Review
As at 31 January 2020 the Company’s portfolio was comprised of 50 portfolio companies with a total valuation of £104.5 million. This represents 79.0% of the net assets of the fund with 22.9% of the net assets held as cash or liquid assets at the year-end. The portfolio includes nine quoted AIM investments (3.9% of net assets), nine Octopus Titan VCT plc (an Octopus managed VCT) co-investments (5.2% of net assets), with the balance (69.9% of net assets) being Apollo only investments in private companies.

During the year, the value of the invested portfolio increased by £1.6 million, excluding additions and disposals. The modest increase is as a result of positive valuation movements across a number of recent investments in the portfolio including the fund’s investment in N2JB Limited (trading as Natterbox), Ubisecure Holdings Limited and an older portfolio holding, Anglo European Group. These increases were offset by negative valuation adjustments during the year from the three Reserve Power companies, namely Kabardin Ltd, Valloire Power Ltd and Red Poll Power Ltd which had a £4.8 million valuation decrease on the portfolio as a result of adverse regulatory changes driving a reduction in revenues on these assets. In addition, the fund’s older investments into Italian solar assets also resulted in a £3.4 million valuation decrease, due to delayed connections and reduced outlook for power prices on these assets. As a result of the Coronavirus outbreak, we also reflected a 25% discount to the holding equity value of Secret Escapes, being a travel company which was directly impacted.

As part of liquidity management during the previous year the Company invested £18.1 million in the Octopus Portfolio Manager (“OPM”) funds. During the current year £5.0 million was withdrawn to fund new investments, dividends and share buybacks taking total holdings at 31 January 2020 to £13.6 million, at year end valuations. Octopus has waived its management fees in relation to OPM.

The Company’s investment portfolio is set out below. It continues to hold appropriate investments to meet VCT requirements.

Investment Activity
During the year, the Company disposed of five investments for total sale proceeds of £17.8 million (excluding any interest or retention payments). In the year, we saw a net gain of £4.9 million as a result of a number of successful exits of Coupra, Synnovia, City Pantry and Zynstra. Included in this figure is also a loss of £0.7 million in the year on the disposal of Tanganyika Heat Limited.

ing the year, the Company disposed of six investments for total sale proceeds of £1.7 million. This resulted in a loss of £0.5m on the total cost of £2.2 million. In addition, the Company received £0.5 million of further deferred sale proceeds from disposals in previous years, resulting in a net profit of nil over cost on these investments in the year. Positive gains recognised in the majority of the disposals were offset by a £1.1 million loss recognised on the sale of Yu Group plc and a £0.4 million loss on MIRACL Limited which went into liquidation during the period.

The Company made the following new investments during the year:

• Fuse £5.0 million – a B2B integrated learning platform that allows enterprises to create and share content to promote employee learning, peer-to-peer knowledge sharing and internal communication;
• Rotolight £4.6 million – a designer and producer of LED lighting, which sells patent-protected flash and lighting products to photographers, filmmakers and broadcasters;
• Veeqo £3.3 million – a B2B cloud-based provider of omni- channel inventory and warehouse management software for the e-commerce sector;
• One Team Logic £3.2 million – a B2B cloud-based provider of safeguarding software into the schools, sports associations and local authorities segments; and
• Fiscaltec £3.0 million – a B2B cloud-based software provider of technology which helps to detect supplier fraud, manage invoicing risks and aid compliance.

In addition to the new investments above, the Company invested £10.2 million in follow-on capital to existing investee companies to continue their growth plans.

Since the year end, the Company has also made one further investment of £2.5 million.

Outlook and Future Prospects
Whilst the outcome of the Brexit process and recent re-election of the current Government in December 2019 has led to an improvement in certain areas of political uncertainty, the recent global pandemic caused by the Coronavirus has meant that uncertainty has heightened in an economic sense. The rapid development of the Coronavirus pandemic since the Octopus Apollo VCT year end has spread fear and disrupted global economic activity. Central banks have been swift to reduce interest rates and Governments have announced unprecedented peacetime financial support and stimulus in response.

The impact has been closely monitored across the portfolio and will continue to be felt for months to come. The challenges are numerous and are experienced in a variety of ways; from the reduction in demand for products and services, to the disruptions associated with the transition to remote working. The nature of the current investment portfolio and the characteristics of the businesses that the Company supports are largely contracted recurring revenue business models, which means that several assets will be insulated from any direct impact from the pandemic and are therefore well-positioned to be more resilient (e.g. they are not like businesses which have seen revenues fall dramatically due to the social distancing measures imposed, such as businesses in the travel, leisure or retail sectors), although we note that credit risk over receivables may increase as a result of the pandemic. The effect of the pandemic on portfolio companies such as Secret Escapes has already been considered in the report.

We therefore remain optimistic about the Company’s future investment prospects and its current diverse portfolio. The investment team is conscious that there is the potential for a wider general-market downturn as a result of a slowdown in economic activity directly caused by the pandemic that may arise during the coming year and beyond, and is closely assessing the impact on its portfolio companies and on the fund itself. The investment team has continued to create a healthy pipeline of new growth capital investments that meet the investment criteria of the Company owing to its origination activities during the previous year. This level of investment activity, as noted in the Chairman’s Statement, supports the rationale for further future fundraising to ensure that the Company has sufficient capital available for the investment team to make new investments to support further diversification of the investment portfolio and any potential follow-on investments being made into existing assets.

If you have any questions on any aspect of your investment, please call one of the team on 0800 316 2295.

Richard Court
Octopus Investments Limited
7 May 2019

Investment Portfolio

Top 10 Investments	Sector	Investment cost as at 31 January 2020 £’000	Total movement in fair value since investment £’000	Fair value as at 31 January 2020 £’000	Movement in fair value in year to 31 January 2020 £’000	% equity held by Apollo VCT	% equity held by all funds managed by Octopus
Natterbox Limited	Technology	7,990	4,296	12,286	3,885	9.0	9.0
Healthcare and Services Technology Limited	Healthcare	7,186	1,310	8,496	114	10.0	10.0
Ubisecure Limited	Technology	4,950	2,176	7,126	1,951	30.0	30.0
Anglo European Group Limited	Manufacturing	5,000	1,952	6,952	1,856	26.7	26.7
Simply Cook Limited	Consumer Goods	6,750	–	6,750	–	23.5	23.5
Rotolight Group Limited	Consumer Goods	4,600	777	5,377	777	18.8	18.8
Countrywide Healthcare Services Limited	Healthcare	2,675	2,682	5,357	389	20.7	20.7
Fuse Universal Limited	Technology	5,000	169	5,169	169	0.0	0.0
Veeqo Limited	Technology	3,300	395	3,695	395	19.7	19.7
One Team Logic Limited	Technology	3,200	178	3,378	178	15.5	15.5
Other*		50,873	(10,925)	39,948	(8,073)
Total investments		101,524	3,010	104,534	1,641
Current asset investments				13,649
Cash at bank				16,637
Debtors less creditors				(2,447)
Net assets				132,373

^*Other comprises the remaining 40 investments whose valuation is outside the top 10: Acquire Your Business Limited, Angelico Solar Limited, Artesian Solutions Limited, Augean plc, Barrecore Limited, Behaviometrics AB, Bramante Solar Limited, British Country Inns plc, Canaletto Solar Limited, Cello Group plc, CurrencyFair Limited, Dyscova Limited, Ecrebo Limited, EKF Diagnostics Holdings plc, Ergomed plc, Eve Sleep plc, Fiscaltec, Hasgrove Limited, Kabardin Limited, Leonardo Solar Limited, Luther Pendragon Limited, Mi-Pay Group plc, Modigliani Solar Limited, Nektan plc, Origami Energy Limited, Oxifree Group Holding Limited, Pirlo Solar Limited, Red Poll Power Limited, Renalytix plc, Secret Escapes Limited, Segura Systems Limited, Sourceable Limited, Superior Heat Limited, Tintoretto Solar Limited, Tiziano Solar Limited, Trafi Limited, Triumph Holdings Limited, Valloire Power Limited, Vertu Motors plc and Winnipeg Heat Limited.

.

Directors’ Responsibilities Statement

The Directors are responsible for preparing the Strategic Report, the Directors’ Report, the Directors’ Remuneration Report and the Financial Statements in accordance with applicable law and regulations. They are also responsible for ensuring that the Annual Report and Accounts include information required by the Listing Rules of the Financial Conduct Authority.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable laws) including FRS 102 – “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs and profit or loss of the Company for that period.

In preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;
• make judgments and accounting estimates that are reasonable and prudent;
• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business; and
• prepare a Strategic Report, a Directors’ Report and Directors’ Remuneration Report which comply with the requirements of the Companies Act 2006.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements and the Directors’ Remuneration Report comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as each of the Directors is aware:

• there is no relevant audit information of which the Company’s auditor is unaware; and
• the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The Directors are responsible for preparing the annual report in accordance with applicable law and regulations. Having taken advice from the Audit Committee, the Directors consider the annual report and the financial statements, taken as a whole, provide the information necessary to assess the Company’s position performance, business model and strategy and is fair, balanced and understandable.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors confirm that, to the best of their knowledge:

• the financial statements, prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS 102, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and
• the Annual Report and Accounts (including the strategic report), give a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

On behalf of the Board

Murray Steele
Chairman
15 May 2020

NON-STATUTORY ACCOUNTS
The financial information set out below does not constitute the Company's statutory accounts for the years ended 31 January 2020 or 31 January 2019 but is derived from those accounts. Statutory accounts for the year ended 31 January 2019 have been delivered to the Registrar of Companies and statutory accounts for the year ended 31 January 2020 will be delivered to the Registrar of Companies in due course. The Auditor has reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the Auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006. The text of the Auditor's reports can be found in the Company's full Annual Report and Accounts at www.octopusinvestments.com.

Income Statement

		Year ended 31 January 2020			Year ended 31 January 2019
		Revenue £’000	Capital £’000	Total £’000	Revenue £’000	Capital £’000	Total £’000
Realised gain/(loss) on disposal of fixed asset investments		-	4,872	4,872	–	(531)	(531)
Realised gain/(loss) on disposal of current asset investments		-	46	46	–	(127)	(!27)
Change in fair value of fixed asset investments		-	1,641	1,641	–	302	302
Change in fair value of current asset investments		-	261	261	–	–	–
Investment income		3,309	-	3,309	3,469	139	3,608
Investment management fees		(559)	(3,411)	(3,970)	(545)	(1,634)	(2,179)
Other expenses		(2,015)	-	(2,015)	(2,256)	–	(2,256)
Profit/(loss) before tax		735	3,409	4,144	668	(1,851)	(1,183)
Tax on return on ordinary activities		-	-	-	–	–	–
Profit/(loss) after tax		735	3,409	4,144	668	(1,851)	(1,183)
Earnings per share – basic and diluted		0.3p	1.3p	1.6p	0.3p	(0.7)p	(0.4)p

• The ‘Total’ column of this statement is the profit and loss account of the Company; the revenue return and capital return columns have been prepared under guidance published by the Association of Investment Companies
• All revenue and capital items in the above statement derive from continuing operations
• The Company has only one class of business and derives its income from investments made in shares and securities and from bank and money market funds

The Company has no other comprehensive income for the period.

Balance Sheet

		As at 31 January 2020		As at 31 January 2019
		£’000	£’000	£’000	£’000
Fixed asset investments			104,534		86,538
Current assets:
Investments		13,649		18,342
Debtors		1,982		2,580
Cash at bank		16,637		13,203
		32,268		34,125
Creditors: amounts falling due within one year		(4,429)		(1,639)
Net current assets			27,839		32,486
Net assets			132,373		119,024
Share capital			28,994		25,250
Share premium			70,947		53,256
Special distributable reserve			16,975		29,602
Capital redemption reserve			5,046		3,914
Capital reserve realised			5,714		7,698
Capital reserve unrealised			4,697		(696)
Total shareholders' funds			132,373		119,024
Net asset value per share – basic and diluted			45.7p		47.1p

The statements were approved by the Directors and authorised for issue on 15 May 2020 and are signed on their behalf by:

Murray Steele
Chairman
Company number: 05840377

Statement of Changes in Equity

	Share Capital £’000	Share Premium £’000	Special distributable reserves* £’000	Capital redemption reserve £’000	Capital reserve realised* £’000	Capital reserve unrealised £’000	Revenue reserve £’000	Translation reserve £’000	Total £’000
As at 1 February 2019	25,250	53,256	29,602	3,914	7,698	(696)	–	–	119,024
Total comprehensive income for the year	–	–	–	–	1,507	1,902	735	-	4,144
Contributions by and distributions to owners:
Repurchase and cancellation of own shares	(1,132)	–	(5,017)	1,132	–	–	–	–	(5,017)
Issue of shares	4,876	18,376	–	–	–	–	–	–	23,252
Share issue cost	–	(685)	–	–	–	–	–	–	–
Dividends paid	–	–	(7,610)	–	–	–	(735)	–	(8,345)
Total contributions by and distributions to owners:	3,744	17,691	(12,627)	1,132	–	–	(735)	–	9,205
Other movements:
Prior year holding gains now realised	–	–	–	–	(3,491)	3,491	–	–	–
Total other movements	-	–	-	–	(3,491)	3,491	–	–	–
Balance as at 31 January 2020	28,994	70,947	16,975	5,046	5,714	4,697	–	-	132,373

	Share Capital £’000	Share Premium £’000	Special distributable reserves* £’000	Capital redemption reserve £’000	Capital reserve realised* £’000	Capital reserve unrealised £’000	Revenue reserve £’000	Translation reserve £’000	Total £’000
As at 1 February 2018	25,748	52,162	40,489	3,125	9,445	(602)	–	10	130,377
Total comprehensive income for the year	–	–	–	–	(2,153)	302	668	–	(1,183)
Contributions by and distributions to owners:
Repurchase and cancellation of own shares	(789)	–	(3,649)	789	–	–	–	–	(3,649)
Issue of shares	291	1,094	–	–	–	–	–	–	1,385
Dividends paid	–	–	(7,238)	–	–	–	(668)	–	(7,906)
Total contributions by and distributions to owners:	(498)	1,094	(10,887)	789	–	–	(668)	–	(10,170)
Other movements:
Prior year holding gains now realised	–	–	–	–	396	(396)	–	–	–
Cancellation of Deferred Shares – D shares	–	–	–	–	10	–	–	(10)	–
Total other movements	-	-	-	–	406	(396)	–	(10)	–
Balance as at 31 January 2019	25,250	53,256	29,602	3,914	7,698	(696)	–	–	119,024

*Included in these reserves is an amount of of £22,689,000 (2019: £36,604,000) which is considered distributable to shareholders.

Cash Flow Statement

		Year to 31 January 2020 £’000	Year to 31 January 2019 £’000
Cash from operating activities
Profit/(loss) after tax		4,144	(1,183)
Adjustments for:
Decrease/(increase) in debtors		598	(506)
Increase/(decrease) in creditors		2,790	(308)
(Gain)/loss on disposal of fixed assets		(4,872)	531
(Gain)/loss on disposal of current assets		(46)	127
Gain on valuation of fixed asset investments		(1,641)	(302)
Gain on valuation of current asset investments		(261)	–
In-specie dividend		-	(139)
Cash from operations		712	(1,780)
Cash flows from investing activities
Purchase of fixed asset investments		(29,277)	(17,509)
Proceeds on sale of current asset investments		5,000	35,000
Proceeds on sale of fixed asset investments		17,794	2,207
Net cash flows from investing activities		(6,483)	19,698
Cash flows from financing activities
Purchase of own shares		(5,017)	(3,649)
Net proceeds from share issues		21,042	–
Dividends paid (net of DRIS)		(6,820)	(6,521)
Net cash flows from financing activities		9,205	(10,170)
Increase in cash and cash equivalents		3,434	7,748
Opening cash and cash equivalents		13,203	5,455
Closing cash and cash equivalents		16,637	13,203

Post Balance Sheet Events
The following events occurred between the Balance Sheet date and the signing of these financial statements:

•      The Company invested a total of £2.5 million into one follow-on investment.