Quarterly Investment Update

RNS Number : 5994F

Vela Technologies PLC

08 November 2022

 

8 November 2022

Vela Technologies plc

("Vela" or "the Company")

Quarterly Investment Update

The Board of Vela (AIM:VELA), an AIM-quoted investing company focused on early-stage and pre-IPO disruptive technology investments, is pleased to provide an update for the quarter ended 30 September 2022.

Key numbers as at 30 September 2022:

· Net assets per share at 30 September were 0.039p (30 June 2022 - 0.041p).

·     Vela's portfolio comprised a total of 13 active investments (30 June 2022 - 13).  Two of these investments were unquoted, ten were quoted, and the final investment was the interest in future royalties from the Covid-19 remedy being developed by St George's Street Capital ('SGSC') (which is held in the balance sheet as a financial asset).

· The fair value of the investment portfolio was £5,808,000 (30 June 2022 - £5,972,000).

· The change in the value of the investment portfolio reflects disposals of investments valued at £89,000 at 30 June 2022 (generating profits of £35,000) and a net decrease in the fair value of the remaining investments of £75,000.

· Vela had cash balances totalling £505,000 as at 30 September 2022 (30 June 2022 - £631,000).

The figures contained within this quarterly investment update at 30 September 2022 and 30 June 2022 are taken from unaudited management information.

Investments traded on a recognised stock market are valued using the accounting policies outlined in the notes to the annual financial statements.  Unlisted investments and other financial assets are stated at the values attributed to them in the audited balance sheet as at 31 March 2022, unless there has been a transaction since that date which suggests a materially different valuation.

Key developments in the quarter:

· The Board provided a strategic update on 2 September 2022 outlining its plans for future investments and confirming the reinstatement of its previous strategy under which the Company will consider, inter alia, larger corporate transactions. Full details are noted in Vela's announcement dated 2 September 2022 and, as stated by Vela in this announcement, the position remains that Vela has not engaged in discussions on any potential transactions of this type.

· Final audited results for the year ended 31 March 2022 were published on 28 September 2022.

· Vela sold 50,000 shares in Cornerstone FS PLC ("Cornerstone"), 25,000 shares in Northcoders Group plc ("Northcoders") and 60,000 shares in EnSilica plc ("EnSilica") for aggregate cash proceeds of £124,000.

Key developments in investee companies in the quarter:

· On 6 July IamFire plc announced that it had acquired, from Community Social Investment Limited (formerly WeShop Limited) for £250,000, an option to subscribe for convertible loan notes in WeShop Holdings Limited (formerly Boanerges Limited). Further details are noted in Vela's announcement dated 6 July 2022.

· On 3 August EnSilica announced a trading update for the year ended 31 May 2022. EnSilica reported that both revenue and adjusted EBITDA were expected to be ahead of market expectations for the period. EnSilica subsequently released its full year results on 17 October 2022.

· On 9 August Northcoders announced that it had secured £4 million of funding from the Department of Education Skills Bootcamp. This funding will enable Northcoders to provide training scholarships on its market-leading coding bootcamp.

· On 25 August Rural Broadband Solutions PLC announced that Stiperstones and Woolston in Shropshire were the first locations to have fibre-to-the-premises (FTTP) technology rolled out.

· On 6 September EnSilica announced it had entered into a contract for a significant industrial ASIC supply project with a leading European industrial OEM.  The forecast contract value is worth in excess of US$30 million over seven years.

· On 20 September Northcoders published its interim results for the six months ended 30 June 2022. These interim results showed revenue more than doubling compared to the prior comparative period. Northcoders also announced that it remained on track to deliver full year targets, with Q3 2022 trading continuing at record levels.

· On 27 September Cornerstone announced unaudited results for the six months ended 30 June 2022 which showed significant growth in revenue and an expansion of operations.

Developments since 30 September 2022:

· On 25 October the Company held its 2022 AGM.  All resolutions put to shareholders were passed.

Investment portfolio

At 30 September 2022 the Company's portfolio of investments was valued at £5,808,000 and comprised equity or loan interests in the following 13 companies:

· Community Social Investment Limited (formerly WeShop Limited)

· Cornerstone FS PLC

· Aeristech Limited

· EnSilica plc

· Igraine PLC

· Kanabo Group Plc

· MTI Wireless Edge Ltd.

· Mode Global Holdings plc

· Rural Broadband Solutions PLC

· Northcoders Group plc

· Skillcast Group plc

· St George Street Capital Limited

· TruSpine Technologies plc

The Company also holds a legacy investment in an unquoted company, being DTL (UK) Limited (formerly Disruptive Tech Limited), the value of which was written down to zero some years ago and which continues to be ascribed no value.

Since the publication of the last quarterly update on 22 July 2022, the Board of Vela has met with the boards of the following investee companies:

· Aeristech Limited

· Cornerstone FS PLC

· EnSilica plc

· Igraine PLC

· Skillcast Group plc

Executive Director, James Normand commented:

"Along with the stock market as a whole, valuations in the Company's quoted investment portfolio have drifted lower during the quarter. The Board remains of the view that such depressed valuations are unjustifiably low and therefore considers there to be good opportunities for future gains."

For further information, please contact:

Vela Technologies plc Brent Fitzpatrick, Non-Executive Chairman James Normand, Executive Director	Tel: [phone]
Allenby Capital Limited (Nominated Adviser)	Tel: [phone]
Nick Athanas / Piers Shimwell
Peterhouse Capital Limited (Broker)	Tel: [phone]
Lucy Williams / Duncan Vasey / Eran Zucker
Novus Communications (PR and IR Adviser)	Tel: [phone]
Alan Green / Jacqueline Briscoe

About Vela Technologies

Vela Technologies plc (AIM: VELA) is an investing company focused on early stage and pre-IPO long term disruptive technology investments. Vela's investee companies have either developed ways of utilising technology or are developing technology with a view to disrupting the businesses or sector in which they operate. Vela Technologies will also invest in already-listed companies where valuations offer additional opportunities.

 

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