Half-year Report
Octopus Titan VCT plc ("Titan" and "the Company")
Unaudited half-yearly report for the six months ended 30 April 2019
Company number: 06397765
Today the Company announces the half-yearly results for the six month period to 30 April 2019 as below.
These results were approved by the Board of Directors on 19 June 2019.
You may view the Half-yearly Report in full at www.octopusinvestments.com shortly. All other statutory information will also be found there.
Octopus Titan VCT plc is a venture capital trust ('VCT') which aims to provide shareholders with attractive tax-free dividends and long-term capital growth by investing in a diverse portfolio of predominantly unquoted companies. The Company is managed by Octopus Investments Limited ('Octopus' or 'Portfolio Manager') and Octopus AIF Management Limited (the 'Manager').
Financial Summary
| Six months to 30 April 2019 | Six months to 30 April 2018 | Year to 31 October 2018 | |
| Net assets (£’000s) | 828,061 | 617,759 | 609,402 |
| Profit after tax (£’000s) | 22,016 | 6,603 | 11,231 |
| NAV | 92.4p | 94.3p | 93.1p |
| Cumulative dividends paid since launch | 74.0p | 69.0p | 71.0p |
| Total Value | 166.4p | 163.3p | 164.1p |
| Total Return* | 2.3p | 0.9p | 1.7p |
| Total Return %** | 2.5% | 0.9% | 1.8% |
| Dividends paid in the period | 3.0p | 3.0p | 5.0p |
| Dividends declared in respect of the period | 2.0p | 2.0p | 5.0p |
*Calculated as the change in NAV in the period plus dividends paid in the period.
**Calculated as total return/opening NAV.
***The 2.0p interim dividend will be paid on 15 November 2019 to shareholders on the register as at 25 October 2019.
Chairman's Statement
I am pleased to present the unaudited half-yearly report for Octopus Titan VCT for the six months ended 30 April 2019.
We were delighted to have raised over £231 million before expenses in our fund raising which closed to new applications on 30 April 2019. Following this, we raised a further £7 million from the shares allotted through the dividend reinvestment scheme associated with the dividend paid at the end of April. With Titan’s net assets now totalling some £828 million, we remain committed to investing in early stage high growth businesses which embody the overall objectives of the VCT scheme. We would like to take this opportunity to welcome all new shareholders and to thank all existing shareholders for their continued support.
As is to be expected following such a large fundraising, we now have un-invested cash, totalling over £312 million as at 30 April 2019 (compared to £176 million as at October 2018, excluding shareholders’ funds awaiting allotment). This gives us confidence in our ability to continue to make new investments and support our existing portfolio of 75 high-growth businesses for the immediate future, many of which need further funding to achieve their ambitious plans. In the six-month period to 30 April 2019, we have deployed a total of £94 million comprising £51 million in new and follow-on investments, £27 million in dividends (including the dividend re-investment scheme (DRIS) shares allotted), £7 million in share buybacks and £9 million in running costs. Together, this therefore accounted for the deployment of 53% of the cash or cash equivalents we had available as at October 2018.
The increase in NAV in the period was 2.3p per share and the Total Value (NAV plus cumulative dividends paid per share since launch) at the end of the period is 166.4p, following the payment of a dividend in April of 3.0p per share. This return brings the tax-free annual compound return to original shareholders to 5.2% since Titan’s launch in 2007.
The transactions within the portfolio are summarised in the Investment Portfolio Review section of my Statement and detailed further in Investment Portfolio on page 8, but I would particularly like to highlight the acquisition of Graze.com by Unilever N.V in February. Launched in 2007, the business delivers healthy snacks through the post. Having first invested in 2009 and disposing parts of this in 2012 and 2013, Titan realised its remaining holding in Graze.com (held via Zenith Holding Company) in February 2019 following Unilever’s acquisition of its holding company. In total, the investment into Graze.com has yielded proceeds of £17.6m over its lifetime for Titan (vs a cost of £2.4m), including a small amount expected to be paid later this year. Graze is a great example of a business Titan only gained access to due to Octopus’s propriety deal flow channels – the founding team included a founder of LOVEFiLM.com, another investee company the Octopus investment team had invested in. We are pleased to be able to add this success to our history of profitable realisations.
Results
The Net Asset Value at 30 April 2019 was 92.4p, a net increase of 2.3p per share from 31 October 2018 after accounting for the dividend of 3.0p per share which was paid in April.
Investment Portfolio Review
I am pleased to report a net uplift in the value of the portfolio of £35.9 million during the period, excluding additions and disposals, representing an 8.3% return on the value of the portfolio at the start of the period.
We set out below the cost and valuation of the top ten holdings which account for over 43% of the value of the portfolio. In total the portfolio now consists of 75 companies, of which three have been added since 30 April representing a further investment of £10.3 million.
| Investments | ??Investment cost at 30 April 2019* (£’000)?? | Valuation at 30 April 2019 (£’000) |
| Amplience Limited | 13,499 | 44,880 |
| Secret Escapes Limited | 4,256 | 37,615 |
| Zenith Holding Company Limited** | 8,963 | 36,882 |
| Wave Optics Limited | 13,576 | 23,645 |
| DePop Limited | 6,000 | 16,418 |
| Conversocial Limited | 6,064 | 16,232 |
| Big Health Limited | 8,269 | 13,647 |
| Chiaro Technology Limited (trading as Elvie) | 6,417 | 12,916 |
| Bought By Many Limited | 9,978 | 12,304 |
| PLU&M limited (trades as Plum Guide) | 7,500 | 10,883 |
| Total | 84,522 | 225,422 |
* Investment cost reflects the amount invested into each investee company from Titan's 1 - 5 before the 2014 merger and from Titan after the merger. This is different to the book cost which includes the holding gains and losses on assets which transferred from Titan's 1, 3, 4 & 5 to Titan 2 (now Titan) during the merger, as Titan purchased these assets at fair value.
**Zenith Holding Company holds shares in Calastone and Secret Escapes inherited from Titans 1&2.
During the six months to 30 April 2019, the uplift in valuation has been driven by the strength of performance of a number of companies in the portfolio in aggregate. In particular, Amplience Limited, Conversocial Limited, Depop Limited, Elvie (Chiaro Limited) and Permutive Inc have all achieved increases in value. Collectively, 36 investee companies drove an uplift of £60.4 million. Conversely, as is to be expected, 19 companies saw a collective decrease in valuation of £24.5 million; this includes Swoon (Sourceable Limited), Property Partner (LHE Holdings Ltd) and Uniplaces Limited where performance has been more challenging, and the current valuations have been adjusted accordingly in line with the valuation policy. Our Manager believes that a number of these businesses may have the potential to overcome the issues they face and return to their ambitious growth plans; they are, therefore, continuing to work with them to achieve this. Where appropriate, this includes providing further funding to ensure the business has sufficient capital to execute on its strategy. This can be seen in the cases of both Swoon (Sourceable Limited) and Uniplaces Limited, where Titan invested further during the period despite Titan’s holdings in the companies being valued at less than cost as at period end.
In the same period, Titan has benefitted from the acquisition of Graze.com as previously detailed.
In contrast, unfortunately MIRACL was placed into Liquidation in January, having failed to secure terms for further funding or an acceptable offer for acquisition despite considerable efforts as reported in the annual report and accounts. The valuation of Titan’s holding in MIRACL had been adjusted to zero as at October 2018, which was also prior to any allotments under the recent Share Offer.
Turning to investments made during the period, £13 million was invested into five new companies (listed below) and £38 million was invested into 24 follow-on investments as listed on page 8. As anticipated by Octopus, given the volume and quality of investment opportunities available in the UK and Europe, this continued high investment rate is encouraging to see.
We have been pleased to welcome the following companies to the portfolio during the period:
- Cazoo Limited: an online platform which will allow consumers to purchase used cars and arrange any finance necessary. Cazoo is founded by Alex Chesterman, Founder and CEO of Zoopla Property Group and previously at LOVEFiLM. We are delighted to have the opportunity to back Alex for the third time;
- By Miles Limited: a pay-per-mile car insurance provider;
- Thirdeye Labs Limited: a software solution for retailers to leverage existing security cameras to understand what is happening in store in real time to help prevent theft, stock shortages and queues;
- Mosaic Smart Data Limited: a data analytics tool for professionals in the capital markets to help improve investment decisions; and
- Aire Labs Ltd: a technology platform that allows lenders to serve more customers by automating the data collection for those with lower credit scores, removing the traditional costly human interaction previously required to assess these individuals.
Furthermore, since 30 April 2019, three more new and eight follow-on investments have been made, amounting to £21.3 million. The new investments were into Glofox Limited, a studio management software platform designed for boutique gyms and fitness studios, vHive Limited, which has developed a software platform which enables businesses to deploy autonomous drones to acquire and manage field data, and Unmade Limited, a software-as-a-service platform which enables fashion and sports brands to offer customisable design to their consumers.
Dividends
As shareholders will know, our ambition is to pay an annual dividend of 5.0p per share, supplemented by special dividends when appropriate and in the case of particularly profitable realisations. Following careful consideration, I am pleased to confirm that your Board has now decided to declare an interim dividend of 2.0p (2018 2.0p) per share in respect of the current financial year, which will be paid on 15 November 2019 to shareholders on the register as at
25 October 2019.
We have been pleased to achieve our ambition in respect of dividends whilst maintaining our NAV above 90p. This has been achieved notwithstanding the expansion of the portfolio, which in itself is a challenge due to the likely incidence of losses during the early stages of holding investee companies. A number of shareholders have intimated that they prefer to hold Titan shares for capital appreciation rather than current yield. I would, however, point out that this is best achieved by reinvesting their dividends through the Dividend Reinvestment Scheme whereby shareholders receive new shares at NAV without any cost of acquisition together with 30% upfront tax relief, an opportunity currently taken up by 29% of shareholders. To underline this opportunity, an investment of £10,000 in December 2014, where all dividends were reinvested, would now be worth £14,966 (including tax relief) as compared to £14,035 had dividends been paid in cash.
Since individual circumstances may differ, shareholders should consult their financial advisers, but we believe this could be a compelling proposition for many shareholders. For further information, please contact Octopus on 0800 316 2295 or via email at clientrelations@octopusinvestments.com.
Investment Management Agreement and Accounting and Administration Agreement
As reported in the annual report to October 2018, new terms for the investment management (IMA) and administration agreements (AA) between Octopus and Titan came into force during the period following approval by shareholders at the General Meeting in December 2018.
These changes, which were fully set out in the annual report, are intended to further enhance alignment between Titan and Octopus and have led to a combined saving of some £500,000 for the six months to 30 April 2019.
Given this directly contributes to a reduction of Titan’s running costs, we believe these changes are very positive, and hope they have been welcomed by shareholders.
VCT Qualifying Status
PricewaterhouseCoopers LLP (PwC) provides both the Board and Octopus with advice concerning ongoing compliance with HMRC rules and regulations concerning VCTs. The Board has been advised that Titan continues to be in compliance with the conditions laid down by HMRC for maintaining approval as a VCT.
As at 30 April 2019, over 97% of the portfolio (as measured by HMRC rules) was invested in VCT-qualifying investments as reviewed and confirmed by PwC, significantly above the 70% current VCT-qualifying threshold, which will increase to 80% from 1 November 2019.
Principal Risks and Uncertainties
The Board continues to regularly review the risk environment in which Titan operates. There have been no significant changes to the key risks which were fully described on pages 9 and 10 of the Annual Report for the year ended 31 October 2018 and the Board does not anticipate there will be significant changes to these risks for the remaining six months of the financial year.
Outlook
The last six months have, once again, been a busy period for Titan.
We are delighted by another very positive response to Titan’s most recent fundraising efforts, and excited about the ability this gives us to continue to support both the most compelling opportunities within the portfolio, as well as the brightest new technology businesses and entrepreneurial teams emerging from the UK and Europe.
While the macro environment remains somewhat uncertain in the medium term, Octopus Ventures continues to work closely with the portfolio to help ensure the companies are as well prepared as possible to face the challenges which may arise as a result. Your Board and our Manager continue to believe that, while change can be testing, it can also bring great opportunity for entrepreneurial companies and we remain confident that many of Titan’s investee companies have the ability to take advantage of such opportunities.
Bearing in mind this landscape, following your Board’s review of the non-qualifying portfolio with Octopus in early 2018, we have made a number of further adjustments including consolidating all cash or cash equivalent assets, and disposing of Titan’s holding in FP Octopus UK Micro Cap Growth Fund. We have done this with the aim of reducing the risk profile associated with this part of Titan’s assets.
In 2018, Octopus increased its resource commitment to manage Titan by expanding the Octopus Ventures investment team by nearly 50% as well as adding further portfolio and operational support to ensure it continues to be able to make new investments and manage the expanding portfolio. Alongside this, to enhance its ability to attract the best entrepreneurs, the team has also refined its focus towards technology and tech-enabled businesses in the three key areas of industry, money and health, with the aim of backing the next generation of pioneering entrepreneurs. This has allowed the team to seek out the best in class opportunities in these three areas in the most efficient manner, as well as enhance their specialist skills and knowledge.
In the meantime, while there have been some challenges, your Board remains positive about the prospects of the existing portfolio and Octopus’s work with them to optimise value for our shareholders. As a result, while the cash reserves of the fund are currently healthy, we have confidence in Octopus’s ability to deploy this in the coming 12-18 months into both new companies and the current extensive portfolio. In view of the continuing expansion of both the number of companies in the portfolio and the underlying investee companies themselves, we currently expect to announce a further fundraising later this year.
I would like to conclude by thanking both the Board and our dedicated team from Octopus Ventures, on behalf of all shareholders, for their hard work, without which our investment strategy would not achieve the success we are seeing.
John Hustler
Chairman
19 June 2019
Investment Portfolio
| Investments | Sector | Investment cost at 30 April 2019* (£’000) | Amount invested in the six months ending 30 April 2019 (£’000) |
| Wave Optics Limited | AI, Robotics & Hardware | 13,576 | - |
| Amplience Limited | Business Services | 13,499 | - |
| LHE Holdings Limited (trades as Property Partner) | Fintech and Insurance | 12,600 | 243 |
| Bought By Many Limited | Fintech and Insurance | 9,978 | 3,954 |
| Zenith Holding Company Limited** | Consumer and Social | 8,963 | - |
| UltraSoC Technologies Limited | AI, Robotics & Hardware | 8,856 | 495 |
| Sofar Sounds Limited | Consumer and Social | 8,705 | 1,000 |
| Appear Here Limited | Business Services | 8,509 | 4,695 |
| Uniplaces Limited | Consumer and Social | 8,434 | 813 |
| CurrencyFair Limited | Fintech and Insurance | 8,381 | 830 |
| Zynstra Limited | Business Services | 8,317 | - |
| Big Health Limited | Life Science, Health & Wellbeing | 8,269 | 4,993 |
| Sourceable Limited (trades as Swoon Editions) | Consumer and Social | 8,148 | 1,191 |
| Chronext AG | Consumer and Social | 7,708 | - |
| PLU&M limited (trades as Plum Guide) | Consumer and Social | 7,500 | 4,000 |
| Surrey NanoSystems Limited | AI, Robotics & Hardware | 6,918 | - |
| Katalyst Inc | Life Science, Health & Wellbeing | 6,736 | 1,916 |
| Chiaro Technology Limited (trading as Elvie) | Life Science, Health & Wellbeing | 6,417 | 1,820 |
| Iovox Limited | Communications and Infrastructure | 6,263 | 991 |
| Digital Shadows Inc. | Security | 6,223 | - |
| Token, Inc | Fintech and Insurance | 6,221 | 1,384 |
| Context-Based 4Casting (C-B4) Ltd | Business Services | 6,096 | - |
| Conversocial Limited | Communications and Infrastructure | 6,064 | 1,898 |
| DePop Limited | Consumer and Social | 6,000 | 1,000 |
| Antidote Technologies Ltd | Life Science, Health & Wellbeing | 5,872 | 777 |
| Smartkem Limited | AI, Robotics & Hardware | 5,770 | 996 |
| Origami Energy Limited | Communications and Infrastructure | 5,533 | - |
| Artesian Solutions Limited | Business Services | 5,481 | - |
| Streethub Limited (trading as Trouva) | Consumer and Social | 5,476 | - |
| Cazoo Limited | Consumer and Social | 5,000 | 5,000 |
| Allplants Limited | Consumer and Social | 5,000 | - |
| OpenSignal Inc | Communications and Infrastructure | 4,862 | - |
| Michelson Diagnostics Limited | Life Science, Health & Wellbeing | 4,795 | - |
| Impatients N.V. (trades as myTomorrows) | Life Science, Health & Wellbeing | 4,705 | 954 |
| Memrise Inc | Consumer and Social | 4,375 | - |
| Secret Escapes Limited | Consumer and Social | 4,256 | - |
| Picsoneye Segmentation Innovation Limited (trading as Pixoneye) | AI, Robotics & Hardware | 4,200 | - |
| BridgeU Inc. | Business Services | 4,195 | - |
| Eve Sleep Plc | Consumer and Social | 4,151 | 1,758 |
| The Faction Collective SA (trading as Faction) | Consumer and Social | 4,034 | 1,066 |
| Semafone Limited | Communications and Infrastructure | 3,594 | - |
| Seatfrog UK Holdings Limited | Consumer and Social | 3,500 | - |
| Olio Exchange Limited | Consumer and Social | 3,500 | - |
| Behaviometrics AB | Security | 3,336 | - |
| Dogtooth Technology Limited | AI, Robotics & Hardware | 3,278 | - |
| Casual Speakers Limited (trading as Jolt) | Consumer and Social | 3,166 | - |
| Medisafe Project Limited | Life Science, Health & Wellbeing | 2,886 | - |
| By Miles Limited | Fintech and Insurance | 2,872 | 2,872 |
| Ecrebo Limited | Business Services | 2,857 | - |
| Mosaic Smart Data Limited | Fintech and Insurance | 2,780 | 2,780 |
| Metrasens Limited | AI, Robotics & Hardware | 2,688 | - |
| e-Therapeutics plc | Life Science, Health & Wellbeing | 2,415 | - |
| Bowman Power Limited | AI, Robotics & Hardware | 2,305 | - |
| Fluidly Limited | Business Services | 2,299 | 899 |
| Trafi Limited | Communications and Infrastructure | 2,288 | - |
| Patch Gardens Limited | Consumer and Social | 2,100 | - |
| Streetbees.com Limited | Business Services | 2,086 | 259 |
| Elliptic Enterprise Limited | Fintech and Insurance | 2,084 | - |
| Permutive Inc. | Business Services | 1,863 | - |
| Phoelex Ltd | AI, Robotics & Hardware | 1,525 | - |
| Dead Happy Limited | Fintech and Insurance | 1,500 | - |
| Mush Limited | Consumer and Social | 1,500 | - |
| Thirdeye Labs Limited | Security | 1,500 | 1,500 |
| Pop Global Limited (trading as We Got Pop) | Business Services | 1,500 | - |
| Segura Systems Limited | Business Services | 1,470 | - |
| Aire Labs Limited | Fintech and Insurance | 1,332 | 1,332 |
| Rook Wealth Limited (trades as Multiply) | Fintech and Insurance | 1,000 | - |
| GTN Ltd | Life Science, Health & Wellbeing | 800 | - |
| Slamcore Limited | AI, Robotics & Hardware | 750 | - |
| Intrepid Owls Limited (trading as Rest-Less) | Consumer and Social | 550 | - |
| Excession Technologies Limited | Security | 298 | - |
| Phasor Inc. | AI, Robotics & Hardware | 250 | - |
| Total | 341,958 | 51,416 |
*Investment cost reflects the amount invested into each investee company from Titan's 1 - 5 before the 2014 merger and from Titan after the merger. This is different to the book cost which includes the holding gains and losses on assets which transferred from Titan's 1, 3, 4 & 5 to Titan 2 (now Titan) during the merger, as Titan purchased these assets at fair value.
**Owns stakes in Secret Escapes Limited and Calastone Limited.
Income Statement
| Unaudited Six months to 30 April 2019 | Unaudited Six months to 30 April 2018 | Audited Year to 31 October 2018 | |||||||
| Revenue £’000 | Capital £’000 | Total £’000 | Revenue £’000 | Capital £’000 | Total £’000 | Revenue £’000 | Capital £’000 | Total £’000 | |
| Gains on disposal of fixed asset investments | – | 66 | 66 | – | 2,945 | 2,945 | – | 2,985 | 2,985 |
| (Loss)/gains on disposal of current asset investments | – | (368) | (368) | – | 3,739 | 3,739 | – | 3,155 | 3,155 |
| Gain on valuation of fixed asset investments | – | 35,937 | 35,937 | – | 14.300 | 14,300 | – | 29,749 | 29,749 |
| Loss on valuation of current asset investments | – | – | – | – | (6,058) | (6,058) | – | (7,161) | (7,161) |
| Investment income* | (129) | – | (129) | 190 | – | 190 | 595 | – | 595 |
| Investment management fees** | (303) | (5,745) | (6,048) | (1,201) | (3,604) | (4,805) | (2,734 | (8,202) | (10,936) |
| Performance fee | – | (5,182) | (5,182) | – | (1,592) | (1,592) | – | (2,805) | (2,805) |
| Other expenses | (2,211) | – | (2,211) | (1,850) | – | (1,850) | (4,256) | – | (4,256) |
| FX translation | – | (49) | (49) | – | (266) | (266) | – | (95) | (95) |
| Profit/(loss) before tax | (2,643) | 24,659 | 22,016 | (2,861) | 9,464 | 6,603 | (6,395) | 17,626 | 11,231 |
| Tax | – | – | – | – | – | – | – | – | – |
| Profit/(loss) after tax | (2,643) | 24,659 | 22,016 | (2,861) | 9,464 | 6,603 | (6.395) | 17,626 | 11,231 |
| Earnings per share – basic and diluted | (0.4)p | 3.5p | 3.1p | (0.5)p | 1.7p | 1.2p | (1.1)p | 2.9p | 1.8p |
*Due to write-offs of interest on loan investments, the net loan interest income figure is a negative amount.
**The split of management fees between revenue and capital has been updated in the current period, see Note 7 of the half-yearly report.
· The 'Total' column of this statement is the profit and loss account of the Company; the supplementary revenue return and capital return columns have been prepared under guidance published by the Association of Investment Companies.
· All revenue and capital items in the above statement derive from continuing operations.
· The Company has only one class of business and derives its income from investments made in shares and securities and from bank and money market funds.
Titan has no other comprehensive income for the period.
Balance Sheet
| Unaudited As at 30 April 2019 | Unaudited As at 30 April 2018 | Audited As at 31 October 2018 | ||||
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Fixed asset investments | 522,249 | 364,442 | 434,897 | |||
| Current assets: | ||||||
| Investments | – | 76,269 | 61,581 | |||
| Cash at bank | 29,306 | 93,202 | 42,210 | |||
| Applications cash* | 108 | 300 | 57,679 | |||
| Debtors | 3,810 | 16,122 | 2,850 | |||
| Money market funds | 283,034 | 72,466 | 72,679 | |||
| 316,258 | 258,359 | 236,999 | ||||
| Current liabilities | (10,446) | (5,042) | (62,494) | |||
| Net current assets | 305,812 | 253,317 | 174,505 | |||
| Net assets | 828,061 | 617,759 | 609,402 | |||
| Share capital | 89,618 | 65,479 | 65,467 | |||
| Share premium | 504,763 | 295,277 | 299,804 | |||
| Capital redemption reserve | 2,809 | 1,495 | 2,056 | |||
| Special distributable reserve | 136,417 | 186,106 | 169,637 | |||
| Capital reserve realised | (2,327) | 9,405 | 11,245 | |||
| Capital reserve unrealised | 117,708 | 74,869 | 79,428 | |||
| Revenue reserve | (20,927) | (14,872) | (18,235) | |||
| Total equity shareholders’ funds | 828,061 | 617,759 | 609,402 | |||
| Net asset value per share | 92.4p | 94.3p | 93.1p | |||
*Cash held but not yet allotted.
The statements were approved by the Directors and authorised for issue on 19 June 2019 and are signed on their behalf by:
John Hustler
Chairman
Statement of Changes in Equity
| Share capital £’000 | Share premium £’000 | Capital redemption reserve £’000 | Special distributable reserve* £’000 | Capital reserve realised* £’000 | Capital reserve unrealised £’000 | Revenue reserve* £’000 | Total £’000 | |
| As at 1 November 2018 | 65,467 | 299,804 | 2,056 | 169,637 | 11,245 | 79,428 | (18,235) | 609,402 |
| Share issue (includes DRIS)** | 24,904 | 204,959 | – | – | – | – | – | 229,863 |
| Repurchase of own shares | (753) | – | 753 | (6,611) | – | – | – | (6,611) |
| Revenue loss after tax | – | – | – | – | – | – | (2,643) | (2,643) |
| Management fees allocated as capital expenditure | – | – | – | – | (5,745) | – | – | (5,745) |
| Current year gains on disposal of fixed asset investments | – | – | – | – | 66 | – | – | 66 |
| Current year gains on disposal of current asset investments | – | – | – | – | (368) | – | – | (368) |
| Prior year current assets gains now realised | – | – | – | – | (2,343) | 2,343 | – | – |
| Gains on fair value of fixed asset investments | – | – | – | – | – | 35,937 | – | 35,937 |
| Dividends paid (includes DRIS) | – | – | – | (26,609) | – | – | – | (26,609) |
| Performance fee | – | – | – | – | (5,182) | – | – | (5,182) |
| FX translation | – | – | – | – | – | – | (49) | (49) |
| Balance as at 30 April 2019 | 89,618 | 504,763 | 2,809 | 136,417 | (2,327) | 117,708 | (20,927) | 828,061 |
*Reserve is available for distribution.
**This is net of allotment fees of £6.6m.
| Share capital £’000 | Share premium £’000 | Capital redemption reserve £’000 | Special distributable reserve* £’000 | Capital reserve realised* £’000 | Capital reserve unrealised £’000 | Revenue reserve* £’000 | Total £’000 | |
| As at 1 November 2017 | 44,899 | 114,404 | 1,071 | 211.122 | 2,284 | 70,668 | (11,745) | 432,703 |
| Share issue (includes DRIS)** | 21,004 | 180,873 | – | – | – | – | – | 201,877 |
| Repurchase of own shares | (424) | – | 424 | (3,905) | – | – | – | (3,905) |
| Revenue loss after tax | – | – | – | – | – | – | (2,861) | (2,861) |
| Management fees allocated as capital expenditure | – | – | – | – | (3,604) | – | – | (3,604) |
| Current year gains on disposal of fixed asset | – | – | – | – | 2,945 | – | – | 2,945 |
| Current year gains on disposal of current assets | – | – | – | – | 3,739 | – | – | 3,739 |
| Prior year fixed asset losses now realised | – | – | – | – | (1,382) | 1,382 | – | – |
| Prior year current assets gains now realised | – | – | – | – | 5,423 | (5,423) | – | – |
| Gains on fair value of fixed asset investments | – | 14,300 | – | 14,300 | ||||
| Gains on fair value of current asset investments | – | (6,058) | (6,058) | |||||
| Dividends paid (includes DRIS) | – | – | – | (19,519) | – | – | – | (19,519) |
| Performance fee | – | – | – | (1,592) | – | – | – | (1,592) |
| FX translation | – | – | – | – | – | – | (266) | (266) |
| Balance as at 30 April 2018 | 65,479 | 295,277 | 1,495 | 186,106 | 9,405 | 74,869 | (14,872) | 617,759 |
*Reserve is available for distribution.
**This is net of allotment fees of £4.2m.
| Share capital £’000 | Share premium £’000 | Capital redemption reserve £’000 | Special distributable reserve* £’000 | Capital reserve realised* £’000 | Capital reserve unrealised £’000 | Revenue reserve* £’000 | Total £’000 | |
| As at 1 November 2017 | 44,899 | 114,404 | 1,071 | 211,122 | 2,284 | 70,668 | (11,745) | 432,703 |
| Share issue (includes DRIS)** | 21,553 | 185,400 | – | – | – | – | – | 206,953 |
| Repurchase of own shares | (985) | – | 985 | (8,889) | – | – | – | (8,889) |
| Revenue loss after tax | – | – | – | – | – | – | (6,395) | (6,395) |
| Management fees allocated as capital expenditure | – | – | – | – | (8,202) | – | – | (8,202) |
| Current year gain on disposal of fixed assets | – | – | – | – | 2,985 | – | – | 2,985 |
| Current year gain on disposal of current assets | – | – | – | – | 3,155 | – | – | 3,155 |
| Prior year fixed asset gains now realised | – | – | – | – | 8,868 | (8,868) | – | – |
| Prior year current assets gains now realised | – | – | – | – | 4,960 | (4,960) | – | – |
| Gains on fair value of fixed asset investments | – | – | – | – | – | 29,749 | – | 29,749 |
| Gains on fair value of current asset investments | – | – | – | – | – | (7,161) | – | (7,161) |
| Dividends paid (includes DRIS) | – | – | – | (32,596) | – | – | – | (32,596) |
| Performance fee | – | – | – | – | (2,805) | – | – | (2,805) |
| FX translation | – | – | – | – | – | – | (95) | (95) |
| Balance as at 31 October 2018 | 65,467 | 299,804 | 2,056 | 169,637 | 11,245 | 79,428 | (18,235) | 609,402 |
*Reserve is available for distribution.
**This is net of allotment fees of £4.2m.
Cash Flow Statement
| Unaudited Six months to 30 April 2019 £’000 | Unaudited Six months to 30 April 2018 £’000 | Audited Year to 31 October 2018 £’000 | |
| Reconciliation of profit to cash flows from operating activities | |||
| Profit before tax | 22,016 | 6,603 | 11,231 |
| (Increase)/decrease in debtors | (960) | (10,301) | 2,971 |
| Increase/(decrease) in creditors | 5,523 | (394) | (321) |
| Losses/(gains) on disposal of current asset investments | 368 | (3,739) | (3,155) |
| Gains on valuation of current asset investments | – | 6,058 | 7,161 |
| Gains on disposal of fixed asset investments | (66) | (2,945) | (2,985) |
| Gains on valuation of fixed asset investments | (35,937) | (14,300) | (29,749) |
| Outflow from operating activities | (9,056) | (19,018) | (14,847) |
| Cash flows from investing activities | |||
| Purchase of current asset investments | – | (46,000) | (46,000) |
| Sale of current asset investments | 61,213 | 71,896 | 84,897 |
| Purchase of fixed asset investments | (51,416) | (54,892) | (122,739) |
| Sale of fixed asset investments | 67 | 9,486 | 22,367 |
| Inflow/(Outflow) from investing activities | 9,864 | (19,510) | (61,475) |
| Cash flows from financing activities | |||
| Applications Inflows allotted | (57,571) | (38,972) | 18,407 |
| Purchase of own shares | (6,611) | (3,905) | (8,889) |
| Net proceed from share issues | 222,772 | 196,849 | 198,535 |
| Dividends Paid (net of DRIS) | (19,518) | (14,491) | (24,178) |
| Inflow from financing activities | 139,072 | 139,481 | 183,875 |
| Increase in cash and cash equivalents | 139,880 | 100,953 | 107,553 |
| Opening cash and cash equivalents | 172,568 | 65,015 | 65,015 |
| Closing cash and cash equivalents | 312,448 | 165,968 | 172,568 |
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