Octopus Titan VCT plc : Final Results
Octopus Titan VCT plc (formerly Octopus Titan VCT 2 plc)
Annual Report & Accounts for the year ended 31 October 2014
Final Results
9 January 2015
Octopus Titan VCT plc ("Titan"), managed by Octopus Investments Limited ("Octopus"), today announces the final results for the year ended 31 October 2014.
These results were approved by the Board of Directors on 9 January 2015.
You may, in due course, view the Annual Report in full at www.octopusinvestments.com.
Octopus Titan VCT plc is a venture capital trust which aims to provide shareholders with attractive tax-free dividends and long-term capital growth by investing in a diverse portfolio of predominately unquoted companies and is managed by Octopus Investments Limited.
Financial Summary
| As at 31 October 2014 | As at 31 October 2013 | |
| Net assets (£'000s) | 32,876 | 20,924 |
| Return on ordinary activities after tax (£'000s) | 3,734 | 2,093 |
| Net asset value (NAV) per share | 101.4 | 95.2p |
| Cumulative dividends paid since launch | 47.5p | 42.5p |
| NAV plus cumulative dividends paid to 31 October 2014 | 148.9 | 137.7p |
| Total dividends for the year | 5.0p | 5.0p |
On 28 October 2014, an interim dividend for the period from 1 May 2014 to 31 October of 2.5p per share was announced to be paid on 21 November 2014. This replaced the final dividend.
Key Dates
Annual General Meeting 4 March 2015 (2.30 pm at 33 Holborn, London, EC1N 2HT)
Half-yearly results to 30 April 2015 published June 2015
Annual results to 31 October 2015 announced December 2015
Annual Report and financial statements published January/February 2016
Chairman's Statement
I am pleased to present the annual results for Octopus Titan VCT plc (formerly Octopus Titan VCT 2 plc) for the year ended 31 October 2014. As I am sure shareholders will realise, these accounts relate to the period prior to the merger and change of name. Our Company merged with our sister companies (Octopus Titan VCTs 1, 3, 4 and 5) on 27 November to create the largest VCT with almost £170 million of assets and a portfolio of 46 companies, at which time the name of the Company was changed to Octopus Titan VCT plc. The size of the Company has subsequently increased in size to circa £187m of assets.
Since all the shareholders of the Octopus Titan family of VCTs are now shareholders in this Company, the report and accounts will also be sent to those shareholders who were not shareholders in Octopus Titan VCT 2 plc prior to the merger. This report represents Titan 2 only to 31 October 2014 since the merger occurred post year end. The interim accounts for the period to 30 April 2015 will be the first set of accounts for the merged Fund. Every shareholder is entitled to vote at our Annual General Meeting on 4 March 2015.
Performance
The Net Asset Value ('NAV') per share at 31 October 2014 was 101.4p (2013: 95.2p) representing a total return for the year of 11.2p per share, being an increase in NAV of 6.2p and dividends paid during the year of 5.0p (2013: 5.0p) per share. We are delighted with this total return of 11.7% which represents a strong performance and builds on the total return of 7.7% last year.
One notable achievement for the Titan VCTs was the winning of the 2014 VCT of the Year Award at the Investor All Star Awards - a particular achievement for our Investment Manager.
Investment Portfolio
The Company made 19 new investments and 10 follow-on investments in the year which totalled £6.5 million taking the number of portfolio companies to 38 as at 31 October 2014. This, along with an overall uplift in valuation of £5.4 million, took the total portfolio value to £27.5 million. This compares to a portfolio value of £15.9 million as at 31 October 2013 and represents an increase in size of 71.9%.
The investment portfolio has continued to mature and has had another strong year of performance. Shareholders will recall that the Company's holdings in Calastone, Natured Delivered (Graze) and Zoopla Property Group were transferred into a separate company, with the Company continuing to hold an interest in them via its holding in Zenith Holding Company Limited ("Zenith"), in order to realise value for further investment in new and existing portfolio companies at earlier stages of development as well as ensuring that we did not breach VCT qualifying conditions in relation to these holdings. The holdings in these portfolio companies owned by Octopus Titans 1 and 3 were also transferred as well as Octopus Titan 3's holding in Secret Escapes and this has allowed our Company to share in the success of Secret Escapes. Our holding in Zenith has continued to show a strong uplift in value, not least due to the successful flotation of Zoopla, and represents an uplift of £1.2 million in the year. In addition to the success shown by Zenith, we are also delighted with the performance of the Company's holding in Touchtype, which has also benefitted the Company through a significant increase in its value.
Unfortunately, given the nature of funding small companies, there are a few investments that have fallen short of expectations and where we have taken valuation write downs in the year. Your Investment Manager is working hard alongside these companies to assist them to realise their potential or limit investment losses.
Further information can be seen in the Investment Manager's review on pages X to X including the pie charts showing that we have a well diversified portfolio. 'Other', which accounts for 31% of the portfolio, relates to the holding in Zenith Holding Company Limited as discussed above.
Board
As a result of the merger, I am pleased to welcome Mark Hawkesworth, the former Chairman of Octopus Titan VCT 3 plc, and Jane O'Riordan, the former Chairman of Octopus Titan VCT 5 plc, to the Board of the newly merged Company. They bring with them a great wealth of knowledge and experience of our enlarged Company from their respective former funds. I am also pleased that Matt Cooper continues as a Director of the Company thus retaining his considerable experience. I also want to take this opportunity to thank Mark Faulkner, who resigned as a Director of the Company at the merger date, for his tremendous contribution to the Board during the first seven years of the Company's life. Resolutions to appoint Mark Hawkesworth and Jane O'Riordan as well as the re-appointment of Matt Cooper will be proposed at the forthcoming AGM.
Dividend and Dividend Policy
It remains your Board's policy to strive to maintain a regular dividend, whilst retaining the appropriate level of liquidity in the Company. Following the merger, the Company is targeting regular tax-free annual dividends of at least 4.0p per share, increasing to 5.0p per share within two years. As shareholders will be aware, the Company has paid two interim dividends of 2.5p in respect of the current financial year (on 24 July and 21 November 2014) taking the total dividends declared and paid for the year to 5.0p per share (2013: 5.0p per share). No final dividend is proposed in respect of the 2014 financial year.
Fund raise and Buybacks
As mentioned in the interim report, the Company successfully raised £10.4m net of costs during the year. The majority of the funds raised are being used to make new investments and to support existing portfolio companies, where the Investment Manager sees the opportunity for further growth.
The Board announced a further opportunity to invest in the Company to raise up to £50 million (with a facility to raise a further £20 million) on 16 September 2014. On 1 December 2014, £14.3 million was allotted and on 22 December 2014 a further £3.1 million was allotted, both net of costs. I would like to thank all shareholders who have supported the fund raising and welcome new shareholders. Your Board is quietly confident that we will achieve our fund-raising target, thus providing significant funds to invest in the strong pipeline of new and follow on investments which our Investment Manager is seeing.
During the period, the Company repurchased 832,464 shares. Further details can be found in Note 14 of the accounts. The Board continues to buy back shares from shareholders at up to a 5% discount to NAV. The Board will continue to monitor the volume of shares bought back and at present intends to maintain the existing limit of the share capital that it buys back and cancels each year at 5%. This policy will continue to operate at the Board's discretion. However, it is the Board's intention that shareholders should be able to sell their shares back to the Company, in the absence of an active secondary market, since we believe that this share buy-back policy enhances the Company's attractiveness as an investment for both existing and new shareholders.
VCT Qualifying Status
PricewaterhouseCoopers LLP provides both the Board and the Investment Manager with advice concerning ongoing compliance with HMRC 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 for 70% of the portfolio to remain continually invested in qualifying investments. As at 31 October 2014, over 88% of the Company (as measured by HMRC rules) was invested in VCT qualifying investments.
Annual General Meeting ("AGM")
The Company's Annual General Meeting will take place on 4 March 2015 and will be held at the new offices of Octopus Investments Limited, 33 Holborn, London, EC1N 2HT.
Outlook
Following the merger of the five Octopus Titan funds, our Company had net assets of £169.3 million invested in 46 portfolio companies, which includes liquid resources of £21.8 million. As previously stated, we are seeking up to £70 million in the current fundraising of which we have already received and allotted £17.4 million net of expenses. We therefore hope to have a Company with assets of well in excess of £200 million by the end of the current tax year.
Your Board views the outlook for our Company with confidence. The current portfolio contains a number of exciting companies which will require further funding rounds and our aim is to ensure we can take full advantage of the opportunities through our expected increase in liquid funds. We anticipate that these funds will be increased by realisations in the foreseeable future given the increase in Merger & Acquisition activity by large companies.
Cognisant of the VCT regulations, we expect the portfolio to grow in size but our investment companies require considerable input from our Investment Manager and so we would not expect the overall number of portfolio companies to increase significantly in the future. Our Investment Manager's strength lies in the identification of early stage companies, which we continue to support as they prove their business models, and this will continue. It is also our aim to ensure that we have a diverse portfolio so that the Company minimises the risk of unpredictable economic events to any one sector. More detail of our strategy can be found in the Strategic Report on page X.
We believe this strategy will allow us to achieve significant capital growth and, as already mentioned, it is our aim to distribute this by way of an annual dividend supplemented by special distributions as and when realisations allow.
I would like to thank all our shareholders for supporting us and also for approving our merger. We are now, by some measure, the largest VCT and this will not only attract good opportunities but also reduce the unnecessary administration and cost of running five sister funds. I would also like to thank both the investment and administration teams at Octopus who have worked so hard to achieve both the performance and merger over the course of the year as well as the retiring Directors of the merged companies. These are exciting times for the Company and our Investment Manager.
I hope to see as many shareholders as possible at our AGM on 4 March in London where we will give an update of our Company and future plans.
John Hustler
Chairman
9 January 2015
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 eight VCTs, including this VCT, and manage over £450 million in the VCT sector. Octopus has over 300 employees.
Investment Strategy Implementation
The Company invests in companies that we believe have great potential, but which need financial support in order to realise their potential. Each company that we target has the opportunity to create a large business by taking a relatively modest market share, given the size of the markets that they address. We are particularly interested in businesses that are led by excellent management teams and which focus on innovation through technology. Based on this investment strategy we have created a balanced portfolio spanning multiple industries and business sectors.
Having reached the level of invested funds required by HMRC, our focus has now shifted to managing the portfolio and optimising growth in the investee companies whilst also seeking to add new investments where appropriate. The current portfolio of holdings following the merger encompasses investments in 46 companies (44 unquoted and two quoted). In aggregate, these investments employed just under 500 people and had a turnover of approximately £22 million at the point of initial investment. In 2013, an average of three years after initial investment, they employed 1,100 people and had revenues of over £175 million. Now, they employ over 1,900 people and their turnover is estimated to be more than £230 million in 2014.
As Investment Manager, we typically invest in a significant minority equity stakes in these qualifying Companies. These investments provide the financial capital for the businesses to build and grow their operations with the objective being either to float or to sell these businesses at some point in the future. These entrepreneurial early stage businesses, often developing innovative new products and services, frequently face challenges as they seek to establish themselves in their market. The amount of capital we initially deploy is typically intended to be only the first investment that we will make into a business, prior to seeing if the company meets or exceeds its initial milestones.
If the business is unsuccessful in meeting these initial milestones, we strive to minimise the financial exposure of the Company to the business, to mitigate the risk of what is commonly referred to as "good money after bad".
Other businesses which meet some, but not necessarily all, of their milestones will require more time to prove their concept. As such these businesses may be reduced in value prior to our making a further investment. This is intended to give them an opportunity to progress further and prove more convincingly their business models.
Finally, there are those that meet and exceed the expectations initially set. It is these businesses in which we actively seek to increase our investment exposure as they prove their ability to create significant and valuable businesses.
Our investment approach requires us to maintain liquidity in the Company in order to ensure adequate resources are available to support further portfolio funding needs as they arise. This liquidity should be further enhanced following the current Prospectus offer for new shares as described in the Chairman's Statement, and it is an important feature of our investment strategy, with the primary objective being to deliver sustainable returns to shareholders.
Performance
The following graph represents the performance of the Company in the last five years since 31 October 2009 in NAV, dividends paid and Total Return (NAV plus cumulative dividends paid):
The Total Return has seen a significant increase since 31 October 2011 as shown on the graph, from 95.0p to 148.9p. This represents an increase of 56.7% in value in the last three years. Additionally the dividends paid between 31 October 2011 and 2014 were 44.0 pence per share representing a significant cash return to investors. A further 2.5p per share was then paid on 21 November 2014.
The discrete performance over the last 5 years is represented below:
| 31/10/2010 | 31/10/2011 | 31/10/2012 | 31/10/2013 | 31/10/2014 | |
| NAV, p | 94.9 | 91.5 | 121.9 | 95.2 | 101.4 |
| Dividends paid, p | 2 | 3.5 | 6 | 42.5 | 47.5 |
| Total return, p | 96.9 | 95.0 | 127.9 | 137.7 | 148.9 |
| Discreet performance | (0.2%) | (2.0%) | 34.6% | 7.7% | 8.1% |
We have previously mentioned the 'J-curve' where the Company initially suffers from standard running costs reducing the value of the Company until the portfolio is sufficiently established and begins to mature. This is when the uplift from the portfolio then exceeds the running costs and drives value in the Company. The following graph shows the cumulative total return since 30 April 2008 which displays the 'J-curve'. We believe that the Company has successfully come through the initial phases of the J-curve and is now in its growth phase.
Portfolio Review
As at 31 October 2014 the NAV was 101.4p per share, compared to 95.2p per share as at 31 October 2013 which represents a total return of 11.2p per share being an increase in NAV of 6.2p and dividends paid during the year of 5.0p (2013: 5.0p) per share. This represents a considerable increase of 11.7% (2013: 7.7%). The performance of the portfolio continued to be strong this year with a number of portfolio companies having uplifts in fair value.
In particular Zenith Holding Company, which owns a stake in Calastone, Zoopla Property Group, Nature Delivered (Graze) and Secret Escapes, through its interest in the Zenith fund, performed very well with the individual investment holdings delivering significant growth. As previously reported, these holdings were sold to Zenith in order to maintain the qualifying status of the VCT, deliver cash back to the Company and ensure that a stake could be held by the Company so that it may continue to share in the growth of the underlying assets. At the year end, Zenith comprised 30.7% of the total net assets of the Company.
As expected with the nature of the businesses we invest in, some of the portfolio companies have fallen behind expectations and budgets resulting in reductions in fair value of the companies. We work closely with the management teams of these companies to realise their potential or limit investment losses.
The Company now holds over 88% of its assets in qualifying holdings from an HMRC perspective and we continue to work with each portfolio business as they develop in their respective markets.
New and follow-on investments
Your Investment Manager is always looking for opportunities to invest in new companies where capital growth can be achieved. The Company made 19 new investments in the year totalling £3.5 million taking the total number of portfolio companies to 38 as at 31 October 2014. This was then increased to 46 at the time of the merger. These investments are in a variety of different sectors further diversifying the portfolio.
We have built a strong portfolio but it is important to support the companies where appropriate to allow them to invest for growth and alleviate working capital pressure. During the year, ten follow-on investments totalling £3.0 million were made.
Post year end
Subsequent to the year end, the company merged with Octopus Titan VCTs 1, 3, 4 and 5 which increased the net assets to £169.3 million. Further to this, £14.33 million and £3.1 million were allotted on 1 and 22 December 2014 net of expenses.
Further details can be seen in Note 17.
Outlook
The merger of the five Titan funds is a big step forward for the Investment Manager, the shareholders and the investee companies. This will improve efficiencies and streamline costs and the administrative burdens providing more time to focus on and help build these companies.
We are confident that the established portfolio will continue to take advantage of economic conditions with many of the entrepreneurs looking to disrupt markets through innovation. Our primary focus is to support and build those companies within the portfolio but we also intend to add new opportunities to the portfolio.
The growth within the portfolio, and the performance of the Company, is very pleasing and with the more positive economic backdrop, we are optimistic that the portfolio will continue to grow and generate further increases in the Total Return of the Company, which will be distributed to shareholders through regular and special tax-free dividends.
If you have any questions on any aspect of your investment, please call one of the Octopus Ventures team on 0800 316 2295.
Alex Macpherson
Octopus Investments Limited
9 January 2015
Investment Portfolio
| Fixed asset investments | Sector | Investment cost as at 31 October 2014 (£'000) | Movement in fair value to 31 October 2014 (£'000) | Fair value as at 31 October 2014 (£'000) | Movement in fair value in year to 31 October 2014 (£'000) | % voting rights held by the Company | % equity held by all funds managed by Octopus |
| Zenith Holding Company Limited | Generalist | 4,895 | 5,191 | 10,086 | 1,988 | 33.30% | 100.00% |
| TouchType Limited | Telecommunications | 1,226 | 3,051 | 4,277 | 2,044 | 5.28% | 19.04% |
| Getlenses Limited | Consumer lifestyle and wellbeing | 824 | 636 | 1,460 | 547 | 5.89% | 15.63% |
| UltraSoC Limited | Technology | 1,162 | (14) | 1,148 | (59) | 14.21% | 58.66% |
| Zynstra Limited | Technology | 873 | 50 | 923 | 50 | 3.02% | 20.18% |
| Uniplaces Limited | Consumer lifestyle and wellbeing | 585 | 298 | 883 | 298 | 6.99% | 35.15% |
| Semafone Limited | Telecommunications | 636 | 241 | 877 | 540 | 5.82% | 37.68% |
| Aframe Media Group Limited | Media | 775 | (70) | 705 | (70) | 3.58% | 33.19% |
| Surrey NanoSystems Limited | Technology | 485 | 219 | 704 | 176 | 4.19% | 14.26% |
| e-Therapeutics plc | Consumer lifestyle and wellbeing | 632 | (9) | 623 | (84) | 0.91% | 3.28% |
| Other investments | 7,909 | (2,143) | 5,766 | (13) | N/a | N/a | |
| Total fixed asset investments | 20,002 | 7,450 | 27,452 | 5,417 | |||
| Money market securities | 5,701 | - | 5,701 | - | |||
| Cash at bank | 443 | - | 443 | - | |||
| Total investments | 26,146 | 7,450 | 33,596 | 5,417 | |||
| Debtors less creditors | (720) | ||||||
| Total net assets | 32,876 |
The top 10 investments detailed in the table represent 79.0% by value of the investment portfolio and account for an uplift in valuation of £5,430,000 for the year. This accounts for the material movements within the investment portfolio. The other 28 investments had a combined decrease in fair value of £13,000 during the year of which 19 are new investment companies with 18 held at cost.
Valuation Methodology
Initial valuation
Financial assets are measured at fair value. The best estimate of the initial fair value of a financial asset that is either quoted or not quoted in an active market is the transaction price (i.e. cost).
Subsequent valuation
Further funding rounds are a good indicator of subsequent fair value and this measure is used where appropriate. Subsequent adjustment to the fair value of unquoted investments can be made using sector multiples based on information as at 31 October 2014, where applicable. In some cases the multiples can be compared to specific companies, especially where a particular sector multiple does not appear appropriate.
In accordance with the IPEVC valuation guidelines, investments made within 12 months are usually kept at cost unless performance indicates that fair value has changed.
Quoted investments are valued at market bid price. No discounts are applied.
If you would like to find out more regarding the IPEVC valuation guidelines, please visit their website at: www.privateequityvaluation.com.
Review of Investments
During the year 10 follow-on investments were made, amounting to £3.0 million and 19 new investments amounting to £3.4 million.
Quoted and unquoted investments are valued in accordance with the accounting policy set out in accounting Note 1 which takes account of current industry guidelines for the valuation of venture capital portfolios and is compliant with IPEVC Valuation guidelines and current financial reporting standards.
Listed below are details of the Company's ten largest investments by value.
Zenith Holding Company Limited
Zenith Holding Company has a holding in Octopus Zenith LP, an Octopus managed fund, which holds stakes in Secret Escapes, Zoopla Property Group, Nature Delivered (Graze) and Calastone, which were formerly held by Titan 1-3.
Founded in April 2007, Graze is the UK's first company to deliver healthy and nutritionally balanced food by post, straight to the home or office. Graze promotes a varied and balanced diet through facilitating the intake of a wide variety of smaller portions of natural, high energy foods throughout the day, allowing for a healthier approach to eating delicious foods. Customers can select Graze boxes created by the company's team of nutrition specialists to place orders for personalised assortments of foods to match their specific tastes and needs including health, diet and indulgent treats. The company has offices in the UK and the US.
Calastone is the global fund transaction network. More than 700 customers in 18 domiciles are processing domestic and cross-border across Calastone's multi-award winning transaction network, benefiting from the cost and risk reduction opportunities transaction automation can offer. Calastone is part of Fintech50 and European Fintech, ranked in the top 50 of The Sunday Times Hiscox Tech Track 100, and is one of the UK Government Tech City Future Fifty companies, recognised for high growth and transforming industries.
Launched in 2008, Zoopla Property Group Plc owns and operates some of the UK's leading online property brands including Zoopla.co.uk and Primelocation.com. Over 16,500 estate agent and lettings agent branches across the UK advertise on the company's websites each month, in addition to all the leading new homes developers, attracting over 40 million visitors a month and generating over 2 million enquiries per month for the member estate/letting agents and property developers. In addition to operating its own websites, Zoopla Property Group Plc exclusively powers the property search facility on a number of the UK's biggest websites including The Times, The Telegraph, Independent, Evening Standard, The Daily Mail, Homes & Property, AOL, MSN, Homes24 and many more.The Company successfully listed on the Premium main market of the London Stock Exchange on 23 June 2014.
Secret Escapes offers exclusive rates (up to 70% off) on members-only flash sales for luxury travel. All of the hotels and holidays are hand-picked by a team of travel experts and while the flash sales are live on Secret Escapes, members will be guaranteed a rate cheaper than anywhere else online. Secret Escapes has offices in London, Sweden, Poland, Germany and the US.
Initial investment date: June 2013
Cost: £4,895,000
Valuation: £10,086,000
Last submitted audited accounts: n/a
Turnover n/a
Profit before tax: n/a
Net assets: n/a
Swiftkey (TouchType Limited)
Founded in London in 2008, Swiftkey's mission is to build technology that makes it easy for everyone to create
and communicate on mobile. The company is best known for SwiftKey Keyboard, its 'mind-reading' touchscreen
keyboard app, which was Google Play's number one paid app in 2012 and 2013. SwiftKey shifted its business model in 2014 and launched the SwiftKey Keyboard as a free app on both the Google (android) and Apple (iOS) operating systems, achieving significant user growth on both platforms.
Initial investment date: August 2010
Cost: £1,226,000
Valuation: £4,277,000
Voting rights held by the Company: 5.28%
Equity held by all funds managed by Octopus: 19.04%
Last submitted group accounts: 31 December 2013 (abbreviated)
Turnover not disclosed
Profit / Loss before tax: not disclosed
Net Assets: £3,723,098
Getlenses Limited
Getlenses Group Ltd trades as Vision Direct. Vision Direct is the UK's largest, most trusted online retailer of contact lenses, solutions and eye care products with over 1.65 million orders fulfilled around the world and more than 700,000 customers. Since being founded by Opticians in 1998, it has been saving customers up to 45% on high quality contact lenses from the world's leading brands, including Acuvue, Focus Dailies and Air Optix. Today, VisionDirect.co.uk has grown to establish offices in Amsterdam, London and York, employing almost 100 members of staff, with sister sites in Spain, Italy, Holland and Ireland.
Initial investment date: September 2009
Cost: £824,000
Valuation: £1,460,000
Voting rights held by the Company: 5.89%
Equity held by all funds managed by Octopus: 15.63%
Last submitted group accounts: 31 August 2013
Turnover £10,354,475
Profit / Loss before tax: £73,382
Net assets: £4,910,844
UltraSoC Technologies Limited
UltraSoC Technologies Ltd is a pioneering technology start-up based in Cambridge (UK), the world-renowned centre for high-tech innovation. The company has developed unique silicon intellectual property to solve the current crisis in multiprocessor software debug, and is poised to deliver overwhelming benefits across the ecosystem by enabling electronic products to be debugged as a complete system. The company has a world-class engineering and commercial team and is actively engaging the industry. Its unique and innovative debugging technology will be used in embedded electronic systems increasingly used in many everyday products from cars to mobile phones.
Initial investment date: September 2010
Cost: £1,162,000
Valuation: £1,148,000
Voting rights held by the Company: 14.21%
Equity held by all funds managed by Octopus: 58.66%
Last submitted audited group accounts: 31 December 2013 (abbreviated)
Turnover not disclosed
Profit / Loss before tax: not disclosed
Net assets: £886,458
Zynstra Limited
Zynstra delivers cloud managed IT infrastructure for SMEs on a subscription based model, available with the installation of minimal hardware. By leveraging hybrid cloud technologies, Zynstra offers the services of a corporate-grade IT infrastructure at an affordable cost. Zynstra aims to make setting up an IT infrastructure as simple as plugging in a set top box. Zynstra works with Managed Service Providers (MSPs) and Communication Service Providers (CSPs) who re brand the service and resell it through their distribution channels.
Initial investment date:
Cost: £873,000
Valuation: £923,000
Voting rights held by the Company: 3.02%
Equity held by all funds managed by Octopus: 20.18%
Last submitted audited accounts: 30 November 2013 (abbreviated)
Turnover not disclosed
Profit / Loss before tax: not disclosed
Net assets: £2,288,809
Uniplaces Limited
Uniplaces is the international online marketplace for student accommodation, providing verified, high quality listings that allows students to discover, book and pay for their accommodation online, marketing a wide variety of properties from privately rented accommodation to professionally managed student residences.
Student accommodation has historically been a fragmented and localised market hindered by the limitations of offline transactions, an expensive and time consuming rental process, and a lack of clear, reliable information for the student. Uniplaces has developed a secure and user-friendly website, dramatically simplifying the process of finding and booking accommodation for students while ensuring marketing costs for providers are kept to a minimum and occupancy rates are maximised. The service has proved particularly useful for international students looking for a more convenient and secure way to arrange their accommodation before they arrive. The Uniplaces platform is now live in three cities; London, Lisbon and Madrid. It currently has 15,000 rooms listed and has booked over 110,000 nights of accommodation. Its customers are made up of 72 nationalities.
Initial investment date: October 2013
Cost: £585,000
Valuation: £883,000
Voting rights held by the Company: 6.99%
Equity held by all funds managed by Octopus: 35.15%
Last submitted audited accounts: N/A
Semafone Limited
Based in London, Semafone was founded in 2009 by a consortium of call centre professionals, who were instrumental in the development of its fraud prevention software for use in call centres. It aims to secure sensitive data passed over the phone, including bank details, personal identification data and credit/debit card transactions. Without interrupting caller and agent dialogue, customers input their card details via the telephone keypad, eliminating the need to read out the card number and three digit security number to the phone operator therefore removing the risk of operator fraud. Semafone has secured valued customers such as Sky, the John Lewis Partnership, Argos, Specsavers and the Manchester Airports Group.
Initial investment date:
Cost: £636,000
Valuation: £877,000
Voting rights held by the Company: 5.82%
Equity held by all funds managed by Octopus: 37.68%
Last submitted audited accounts: 31 December 2013
Turnover £3,836,550
Profit /Loss before tax: (£405,990)
Net assets: £447,433
Aframe Media Group Limited
Aframe is a cloud asset management solution and tagging service with capabilities in collaboration, review and approval and archive. Aframe software and websites run on Aframe owned servers, so data is stored on Aframe dedicated storage arrays. Communication and transfers occur over Aframe networks. Video streaming is a feature that enables users of the system to preview clips and sequences.
Initial investment date: September 2013
Cost: £775,000
Valuation: £705,000
Voting rights held by the Company: 3.58%
Equity held by all funds managed by Octopus: 33.19%
Last submitted audited group accounts: 31 December 2013 (abbreviated)
Turnover not disclosed
Profit/ Loss before tax: not disclosed
Net assets: £2,446,301
Surrey NanoSystems Limited
Surrey NanoSystems has developed a leading technology portfolio addressing the needs of the global nanoelectronics sector. Its proven technologies deliver precise, ordered nanomaterial structures for advanced manufacturing processes, meeting the scaling challenges of the semiconductor industry. Surrey NanoSystems works with its partners to deliver practical nano-materials and technologies to the semiconductor, renewable-energy and clean technology industries. This partnering approach facilitates the migration of materials and processes developed on Surrey NanoSystems bespoke research platforms to production-ready tooling. Surrey NanoSystems' development systems and structure-synthesis methodologies are also commercially available to researchers investigating carbon nanotubes (CNTs), nanowires, graphene and vapour-condensed nanoparticles.
As a spin-off from its work in applying nanomaterials to semiconductor device fabrication, Surrey NanoSystems has also developed Vantablack®, which is revolutionary in its ability to be applied to light-weight, temperature-sensitive structures such as aluminium whilst absorbing 99.96% of incident radiation, believed to be the highest-ever recorded. Vantablack is the result of applying Surrey NanoSystems' patented low-temperature carbon nanotube growth process to the UK Technology Strategy Board's 'Space for Growth' programme, working alongside the National Physical Laboratory and Enersys' ABSL Space Products division. Vantablack has the highest thermal conductivity and lowest mass-volume of any material that can be used in high-emissivity applications. It has virtually undetectable levels of outgassing and particle fallout, thus eliminating a key source of contamination in sensitive imaging systems. It withstands launch shock, staging and long-term vibration, and is suitable for coating internal components, such as apertures, baffles, cold shields and Micro Electro Mechanical Systems (MEMS) -type optical sensors
Initial investment date: July 2009
Cost: £485,000
Valuation: £704,000
Voting rights held by the Company: 4.19%
Equity held by all funds managed by Octopus: 14.26%
Last submitted group accounts: 30 June 2013 (Abbreviated)
Turnover not disclosed
Loss before tax: not disclosed
Net assets: £3,802,250
e-Therapeutics plc
e-Therapeutics is an AIM-quoted drug discovery and development company. It pioneered and exploits 'network pharmacology' to evaluate swiftly and accurately how medicines interact with cells in the body. This approach optimises the probability of identifying drug candidates with desirable efficacy and minimal side effects. Network pharmacology has many applications, and is particularly suited to addressing complex diseases in which current treatment options are few and ineffective. e-Therapeutics' current drug discovery programmes are focused mainly on areas of high unmet medical need, such as neurodegeneration and oncology. Four drugs resulting from e-Therapeutics' earlier discovery projects are now in clinical development.
Initial investment date: March 2009
Cost: £632,000
Valuation: £623,000 (bid price)
Voting rights held by the Company: 0.91%
Equity held by all funds managed by Octopus: 3.28%
Last submitted audited group accounts: 31 January 2014
Turnover £nil
Loss before tax: (£6,102,000)
Net assets: £44,618,000
Income Statement | ||||||
| Year to 31 October 2014 | ||||||
| Revenue | Capital | Total | ||||
| Notes | £'000 | £'000 | £'000 | |||
| Gain on disposal of fixed asset investments | 10 | - | 8 | 8 | ||
| Gain on disposal of current asset investments | - | - | - | |||
| Fixed asset investment holding gains | 10 | - | 5,417 | 5,417 | ||
| Current asset investment holding gains | - | - | - | |||
| Other income | 2 | 62 | - | 62 | ||
| Investment management fees | 3 | (105) | (314) | (419) | ||
| Performance fee | 3 | - | (903) | (903) | ||
| Other expenses | 4 | (431) | - | (431) | ||
| Return on ordinary activities before tax | (474) | 4,208 | 3,734 | |||
| Taxation on return on ordinary activities | 6 | - | - | - | ||
| Return on ordinary activities after tax | (474) | 4,208 | 3,734 | |||
| Earnings per share - basic and diluted | 8 | (1.6)p | 14.5p | 12.9p | ||
- 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.
The Company has no recognised gains or losses other than the results for the period as set out above.
The accompanying notes form an integral part of the financial statements.
Income Statement | ||||||
| Year to 31 October 2013 | ||||||
| Revenue | Capital | Total | ||||
| Notes | £'000 | £'000 | £'000 | |||
| Realised gain on disposal of current asset investments | - | 670 | 670 | |||
| Loss on disposal of current asset investments | - | 91 | 91 | |||
| Fixed asset investment holding gains | - | 2,359 | 2,359 | |||
| Current asset investment holding gains | - | - | - | |||
| Other income | 2 | 316 | - | 316 | ||
| Investment management fees | 3 | (107) | (321) | (428) | ||
| Performance fee | 3 | - | (538) | (538) | ||
| Other expenses | 4 | (377) | - | (377) | ||
| Return on ordinary activities before tax | (168) | 2,261 | 2,093 | |||
| Taxation on return on ordinary activities | 6 | - | - | - | ||
| Return on ordinary activities after tax | (168) | 2,261 | 2,093 | |||
| Earnings per share - basic and diluted | 8 | (0.8)p | 11.2p | 10.4p | ||
- 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.
The Company had no recognised gains or losses other than the results for the period as set out above.
The accompanying notes form an integral part of the financial statements.
Reconciliation of Movements in Shareholders' Funds | ||
| Year ended 31 October 2014 | Year ended 31 October 2013 | |
| £'000 | £'000 | |
| Shareholders' funds at start of year | 20,924 | 21,361 |
| Return on ordinary activities after tax | 3,734 | 2,093 |
| Issue of equity (net of expenses) | 10,413 | 4,580 |
| Purchase of own shares | (729) | (598) |
| Dividends paid | (1,466) | (6,512) |
| Shareholders' funds at end of year | 32,876 | 20,924 |
The accompanying notes form an integral part of the financial statements.
Balance Sheet | |||||
| As at 31 October 2014 | As at 31 October 2013 | ||||
| Notes | £'000 | £'000 | £'000 | £'000 | |
| Fixed asset investments* | 10 | 27,452 | 15,970 | ||
| Current assets: | |||||
| Debtors | 11 | 240 | 1,758 | ||
| Money market funds and other deposits* | 12 | 5,701 | 331 | ||
| Cash at bank | 443 | 3,394 | |||
| 6,384 | 5,483 | ||||
| Creditors: amounts falling due within one year | 13 | (960) | (529) | ||
| Net current assets | 5,424 | 4,954 | |||
| Net assets | 32,876 | 20,924 | |||
| Called up equity share capital | 14 | 3,244 | 2,198 | ||
| Share premium | 15 | 9,284 | 5,816 | ||
| Special distributable reserve | 15 | 15,173 | 11,552 | ||
| Capital redemption reserve | 15 | 181 | 98 | ||
| Capital reserve - losses on disposals | 15 | (358) | 1,518 | ||
| - holding gains | 15 | 6,503 | 419 | ||
| Revenue reserve | 15 | (1,151) | (677) | ||
| Total equity shareholders' funds | 32,876 | 20,924 | |||
| Net asset value per share | 9 | 101.4 | 95.2 | ||
*Held at fair value through profit or loss
The statements were approved by the Directors and authorised for issue on 9 January 2015 and are signed on their behalf by:
John Hustler
Chairman
Company No: 6397765
The accompanying notes form an integral part of the financial statements.
Cash Flow Statement | |||
| Year to 31 October 2014 | Year to 31 October 2013 | ||
| Notes | £'000 | £'000 | |
| Net cash inflow/(outflow) from operating activities | 258 | (1,959) | |
| Financial investment: | |||
| Purchase of fixed asset investments | 10 | (6,433) | (10,240) |
| Sale of fixed asset investments | 10 | 376 | 16,475 |
| Management of liquid resources: | |||
| Purchase of current asset investments | (8,070) | (5,506) | |
| Sale of current asset investments | 2,700 | 6,978 | |
| Taxation | - | - | |
| Dividends paid | 7 | (1,466) | (6,512) |
| Financing: | |||
| Issue of shares | 10,940 | 4,910 | |
| Cost of share issue | (527) | (330) | |
| Purchase of own shares | 14 | (729) | (598) |
| (Decrease)/increase in cash resources at bank | (2,951) | 3,218 | |
The accompanying notes form an integral part of the financial statements.
Reconciliation of Return before Taxation to Cash Flow from Operating Activities | |||
| Year to 31 October 2014 | Year to 31 October 2013 | ||
| £'000 | £'000 | ||
| Return on ordinary activities before tax | 3,734 | 2,093 | |
| Gain on disposal of fixed asset investments | (8) | (91) | |
| (Gain)/loss on disposal of current asset investments | - | (670) | |
| Gain on valuation of fixed asset investments | (5,417) | (2,359) | |
| Decrease/(increase) in debtors | 1,596 | (274) | |
| Increase/(decrease) in creditors | 353 | (658) | |
| Inflow/(outflow) from operating activities | 258 | (1,959) | |
Reconciliation of Net Cash Flow to Movement in Net Funds | |||
| Year to 31 October 2014 | Year to 31 October 2013 | ||
| £'000 | £'000 | ||
| (Decrease)/increase in cash at bank | (2,951) | 3,218 | |
| Increase/(decrease) in cash equivalents | 5,370 | (1,381) | |
| Opening net cash resources | 3,725 | 1,888 | |
| Net funds at 31 October | 6,144 | 3,725 | |
Net funds at 31 October comprised:
| Year to 31 October 2014 | Year to 31 October 2013 | |
| £'000 | £'000 | |
| Cash at bank | 443 | 3,394 |
| Money market funds | 5,701 | 331 |
| Net funds at 31 October | 6,144 | 3,725 |
The accompanying notes form an integral part of the financial statements.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Octopus Titan VCT plc via Globenewswire
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