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Octopus TitanVCT PLC (OTV2)

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Monday 28 September, 2020

Octopus TitanVCT PLC

Half-year report

Half-year report

Octopus Titan VCT plc ("Titan" and "the Company")

Unaudited half-yearly report for the six months ended 30 June 2020

Company number: 06397765

Today the Company announces the half-yearly results for the six month period to 30 June 2020 as below.

These results were approved by the Board of Directors on 28 September 2020.

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 June 2020
Six months to
30 April 2019
Year to
31 December 2019
Net assets (£’000s) 906,218 828,061 905,840
(Loss)/profit after tax (£’000s) (26,016) 22,016 67,280
NAV 89.5p 92.4p 95.2p
Cumulative dividends paid since launch 79.0p 74.0p 76.0p
Total Value 168.5p 166.4p 171.2p
Total Return* (2.7)p 2.3p 7.1p
Total Return %** (2.8)% 2.5% 7.6%
Dividends paid in the period 3.0p 3.0p 5.0p
Dividends declared in respect of the period*** 2.0p 2.0p 3.0p

*Calculated as the change in NAV in the period plus dividends paid in the period.

**Calculated as total return/opening NAV.

***This will be paid on 11 December 2020 to shareholders on the register as at 27 November 2020.

Chairman's Statement

I am pleased to present the unaudited half-yearly report for Octopus Titan VCT for the six months ended 30 June 2020.

We were delighted to have raised over £124 million before expenses in our fund raising which closed to new applications on 09 April 2020. This level of support from our investors is particularly appreciated in the face of the Coronavirus pandemic which has dominated the macro environment in 2020 so far. Our net assets now total £906 million demonstrating how important the VCT scheme is in helping create and develop the new technology businesses on which the UK’s future depends.

As has become typical following fund raising, we now have significant un-invested cash, totalling over £237 million as at 30 June 2020 (compared to £282 million as at December 2019). This gives us confidence in our ability to support our existing portfolio of more than 80 high-growth businesses in the short to medium term as well as make new investments. Despite the macro environment, many of our businesses have thrived during this challenging period, while others may need further funding to help weather the storm Coronavirus continues to present. In the six-month period to 30 June 2020, we have utilised a total of £121 million of cash, comprising £53 million in new and follow-on investments, £30 million in dividends, £7 million in share buybacks and £31 million in running costs (of which, £18m was the 2019 performance incentive fee). Together, this accounted for the deployment of 43% of the cash or cash equivalents we had available as at December 2019. Following this period of investing, we are confident that the majority of our investee companies have sufficient capital to see them through the medium-term disruption caused by Coronavirus.

Since 31 December, Octopus Titan VCT has felt the effects of the Coronavirus pandemic and the full consequences upon our Company may not be fully identified for some time yet. However, we reviewed the portfolio in March and April in advance of share allotments relating to the most recent share offer, and this led to our announcing a reduction in the NAV per share from 95.2p as at December to 91.0p at 2 April 2020.

The Net Asset Value at 30 June 2020 was 89.5p, a net decrease of 2.7p per share from 31 December 2019 and a net increase of 1.5p per share from 2 April (adjusting both for the payment of a second interim dividend later in April of 3.0p per share). The Total Value (NAV plus cumulative dividends paid per share since launch) at the end of the period is 168.5p. This return brings the tax-free annual compound return to original shareholders to 4.9% since Titan’s launch in 2007.

In March 2020, the International Private Equity and Venture Capital Guidelines were updated with special valuation guidance in relation to Coronavirus. This stated that fair value is based on what is known and knowable at the measurement date, and our valuations take account of the new guidance.

As you will appreciate, the half year results are unaudited. However, in light of the Coronavirus related significant uncertainties surrounding the valuation of unlisted companies, Octopus and the Board have also engaged our auditors, BDO, to undertake a review of the valuations of the largest 25 holdings by value, similar to the review process conducted across the portfolio at the previous year end, and we have considered their comments in determining the NAV at 30 June 2020.

Investment Portfolio Review

Unfortunately, we are reporting a net decrease in the value of the portfolio of £15.7 million during the period, excluding additions and disposals, representing a 2.4% loss 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 39% of the value of the portfolio. In total the portfolio now consists of over 80 companies, of which three companies mentioned below have been added since 30 June representing a further investment of £9.0 million.

Investments Investment cost at 30 June 2020*
(£’000)
Valuation at
30 June 2020
(£’000)
Amplience Limited  13,499  47,428
Zenith Holding Company Limited**  8,963  36,454
DePop Limited  8,766  32,666
Bought By Many Limited  9,978  31,419
Wave Optics Limited  13,576  23,078
Chiaro Technology Limited (trading as Elvie)  6,417  21,983
Cazoo Limited  5,000  21,250
Permutive Inc.  9,839  20,947
Big Health Limited  8,269  14,107
Streethub Limited  9,233  13,871
Total  93,540  263,203

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 and 3.

During the six months to 30 June 2019, 33 investee companies collectively drove an uplift of £55.0 million. In particular, Chiaro, Depop, Bought By Many and Streetbees have all achieved increases in value. Conversely, as is to be expected,  particularly given the major impact the pandemic has had on the global economy, 24 companies saw a collective decrease in valuation of £70.7 million; this includes Secret Escapes, Conversocial, Faction and Property Partner where performance has been more challenging. In some cases, this decreased performance is almost entirely due to the impact of the pandemic, while in others there are ongoing trading difficulties to overcome. Our Manager believes that a number of these businesses 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.

Given the fundamental change brought on by Coronavirus, Octopus carried out a full re-budgeting and re-forecasting process with the entire portfolio during the period. Swift and considered actions from the management teams have allowed these companies to weather a prolonged period of disruption. Measures to extend their cash runways, combined with additional funding where appropriate, have meant that we are now in a position where our portfolio is arguably as well capitalised as it has ever been.

In the same period, Titan has benefitted from the acquisition of UltraSoC by Siemens in June. UltraSoC is a pioneering company that delivers monitoring and self-analytics technology for use in the silicon chips (SoCs) that power today’s consumer electronic, computing and communications products. We first invested in UltraSoC in 2010, participated in a number of subsequent funding rounds, and the realisation yielded proceeds of £11 million (compared to a cost of £9 million), a small proportion of which is deferred and expected to be paid within 18 months. We are pleased to be able to add this success to our history of realisations.

Turning to investments made during the period, £23.2 million was invested into 6 new companies (listed below) and £29.6 million was invested into 16 follow-on investments as listed below. As anticipated by Octopus, given the volume and quality of investment opportunities available in the UK and Europe, this continued high investment rate into new companies, while also providing ongoing financial support to the existing portfolio, is encouraging to see.

We have been pleased to welcome the following companies to the portfolio during the period:  

  • Digital Therapeutics (trading as QuitGenius): a high-intensity digital behaviour change program that helps employees and their family members kick addictive behaviours;
  • Quantum Motion Technologies: A quantum computing company founded to commercialise world-leading silicon spin technology and architectures developed at UCL and Oxford University;
  • Skew: Aiming to become the leading provider of financial data, tools and services related to crypto assets for sophisticated financial institutions;
  • Stackin’: A personal finance service focused on the under-served, that lets anyone save and invest from the ground up;
  • TaxScouts: Combining online automation with certified human accountants to help people prepare their self-assessment tax submission for a flat, fixed fee; and
  • Vitesse: a market-leading settlement and liquidity management system to hold funds and deliver international payments globally using domestic, in-country processing.

Furthermore, since 30 June 2020, three more new and four follow-on investments have been made, amounting to £17.3 million. The new investments were into Thought River (a contract pre-screening automation tool targeted toward in-house legal teams and private law firms), Ori Biotech (a full stack platform for scalable biomanufacturing of cell and gene therapy), and Katkin (personalised, fresh and perfectly portioned meal plans for cats).

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, and despite all of the challenges of Coronavirus, I am pleased to confirm that your Board has now decided to declare an interim dividend of 2.0p (2019 2.0p) per share in respect of the current financial year, which will be paid on 11 December 2020 to shareholders on the register as at 27 November 2020.

As shareholders will have seen in our announcement on 30 March, we suspended the Dividend Reinvestment Scheme (DRIS) in relation to the interim dividend in respect of the 14 month period to December 2019 in view of the market conditions and potential valuation uncertainties surrounding Coronavirus. The Board has decided to reinstate this facility in respect of the interim dividend declared in this report. To clarify, this means if you are one of the 28% of shareholders who take advantage of the DRIS, your dividend will be receivable in Titan shares. This is an excellent way for those of you who prefer the capital value of your investment to grow to achieve your investment objectives.

Shareholders will also note that it is expected the next share buyback will take place in late October 2020, following the announcement of these interim results.

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 June 2020, over 96% of the portfolio (as measured by HMRC rules) was invested in VCT-qualifying investments as reviewed and confirmed by PwC, significantly above the 80% current VCT-qualifying threshold.

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 December 2019 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 been a challenging period for many, but thanks to so much support from our shareholders through the most recent fund raise, Titan has been in a position of strength to weather this storm. Octopus Ventures acted swiftly, and ultimately the portfolio has reacted impressively to an unprecedented situation. 

As discussed in the Annual Report & Accounts to December 2019, we reduced the NAV per share on 10 March 2020 and again on 2 April 2020 prior to the most recent allotments and buybacks. As is to be expected, a number of our investee companies have been negatively affected by macro events. While it will take time to fully understand the long-term impact of Coronavirus on such businesses, many are already showing signs of recovery.

We continue to believe change can also create opportunity, from which enterprising management teams can reap rewards. We are delighted to see a number of the companies Titan has invested in are also thriving. For example: with people spending more time at home, Patch saw demand for its plants increase by 500%; as physical stores were forced to close, Trouva’s platform proved to be a lifeline for many independent boutiques, enabling 70% of them to continue trading online; Depop, the online fashion marketplace, also benefited from 40% of its community spending more time online and has experienced all-time high revenues as a result; and Elvie, Bought by Many, and Trouva were also recently featured in the Sunday Times Tech 100. In addition, Octopus Ventures has invested (or agreed to invest) into a number of new businesses since December. As always, Octopus Ventures considers each company and opportunity on a case-by-case basis and taking into account a number of factors, which now, of course, includes the potential medium to long-term impact of Coronavirus on the sector the business operates in. The team continues to work closely with the companies in our portfolio to mitigate the impact of the current environment and maximise the chances of success for those able to take up new opportunities.

Looking forward, we now have £228 million in cash and cash equivalents to help us to continue to support the most promising companies in our portfolio, as well as backing the UK and Europe’s pioneering entrepreneurs intent on building world changing businesses. To support this, Octopus is again increasing the Octopus Ventures investment team significantly and adding further operational support to ensure it continues to be able to make new investments and manage the expanding portfolio appropriately.

Alongside this and following the successful introduction of a few key areas of investment focus for technology and tech-enabled businesses in 2018, the team is also adding two new ‘pods’. Consumer and Growth will join Future of Health, Future of Money and Deep Tech to further enhance the team’s ability to attract the best entrepreneurs across a diverse range of sectors, with the aim of backing the next generation of pioneering entrepreneurs. This approach has allowed the team to seek out the best in class opportunities in these specific areas in the most efficient manner, as well as enhance their specialist skills and knowledge. In the meantime, while there have been various challenges, some of which are ongoing, 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 portfolio, and therefore, as announced in June, we intend to launch a new fundraise shortly.

We believe that the UK has the opportunity to remain a key entrepreneurial hub in Europe post-Brexit and Coronavirus. VCTs have long provided a compelling opportunity for UK investors to  provide funding for such businesses in a tax-efficient way and, with a new government in place, we look forward to their ongoing support for small businesses as well as the VCT scheme.

I would like to conclude by thanking both the Board and the Octopus Ventures team on behalf of all shareholders for their ongoing work and efforts to maximise value for shareholders, despite the macro environment.

John Hustler
Chairman
28 September 2020

Investment Portfolio

Investments Sector Investment cost at

30 June 2020*

 (£’000)
Amount invested in the six months ending 30 June 2020

(£’000)
LHE Holdings Limited (trades as Property Partner) Fintech and Insurance  13,600  -  
Wave Optics Limited AI, Robotics & Hardware  13,576  -  
Amplience Limited Business Services  13,499  -  
Katalyst Inc Life Science, Health & Wellbeing  11,924  3,155
Permutive Inc. Business Services  11,839  2,000
Sofar Sounds Limited Consumer and Social  10,918  -  
Smartkem Limited AI, Robotics & Hardware  10,753  2,985
Big Health Limited Life Science, Health & Wellbeing  10,571  2,302
PLU&M limited Consumer and Social  10,500  3,000
UltraSoC Technologies Limited AI, Robotics & Hardware  9,996  1,140
Bought By Many Limited Fintech and Insurance  9,978  -  
Digital Shadows Ltd Security  9,702  -  
Uniplaces Limited Consumer and Social  9,304  870
Streethub Limited (trading as Trouva) Consumer and Social  9,233  -  
Zenith Holding Company Limited** Consumer and Social  8,963  -  
Ometria Limited Business Services  8,800  -  
DePop Limited Consumer and Social  8,766  -  
Appear Here Limited Business Services  8,509  -  
CurrencyFair Limited Fintech and Insurance  8,381  -  
Chronext AG Consumer and Social  7,708  -  
Antidote Technologies Ltd Life Science, Health & Wellbeing  7,708  1,058
Surrey NanoSystems Limited AI, Robotics & Hardware  6,918  -  
Stackin Inc Fintech and Insurance  6,840  6,840
By Miles Limited Fintech and Insurance  6,732  3,860
Digital Therapeutics Life Science, Health & Wellbeing  6,494  6,494
Chiaro Technology Limited (trading as Elvie) Life Science, Health & Wellbeing  6,417  -  
Iovox Limited Communications and Infrastructure  6,263  -  
Token.IO Ltd Fintech and Insurance  6,221  -  
Context-Based 4Casting (C-B4) Ltd Business Services  6,096  -  
Conversocial Limited Communications and Infrastructure  6,064  -  
Phoelex Ltd AI, Robotics & Hardware  6,025  4,500
Picsoneye Segmentation Innovation Limited (trading as Pixoneye) AI, Robotics & Hardware  5,808  1,108
Origami Energy Limited Communications and Infrastructure  5,533  -  
Artesian Solutions Limited Business Services  5,481  -  
Seatfrog UK Holdings Limited Consumer and Social  5,300  -  
Allplants Limited Consumer and Social  5,150  150
Cazoo Limited Consumer and Social  5,000  -  
Systum Inc Business Services  5,000  -  
Elliptic Enterprises Limited Fintech and Insurance  4,913  -  
OpenSignal Inc Communications and Infrastructure  4,862  -  
Michelson Diagnostics Limited Life Science, Health & Wellbeing  4,795  -  
Casual Speakers Limited (trading as Jolt) Consumer and Social  4,770  -  
Impatients N.V. (trading as MyTomorrows) Life Science, Health & Wellbeing  4,705  -  
Olio Exchange Limited Consumer and Social  4,500  -  
The Faction Collective SA (trading as Faction) Consumer and Social  4,461  -  
Memrise Inc Consumer and Social  4,375  -  
Secret Escapes Limited Consumer and Social  4,256  -  
Patch Gardens Limited Consumer and Social  4,172  -  
Eve Sleep Plc Consumer and Social  4,151  -  
HeyGleam Life Science, Health & Wellbeing  4,000  -  
AudioTelligence Limited AI, Robotics & Hardware  4,000  -  
Positron Technologies Limited Fintech and Insurance  4,000  4,000
Glofox Business Services  3,812  -  
Medisafe Project Limited Life Science, Health & Wellbeing  3,664  -  
Semafone Limited Communications and Infrastructure  3,594  -  
vHive Tech Ltd AI, Robotics & Hardware  3,500  -  
Behaviometrics AB Security  3,336  -  
Dogtooth Technologies Limited AI, Robotics & Hardware  3,278  -  
Unmade Ltd Consumer and Social  3,000  -  
Trafi Limited Communications and Infrastructure  2,965  677
Ecrebo Limited Business Services  2,857  -  
Mosaic Smart Data Limited Fintech and Insurance  2,780  -  
Skew Fintech and Insurance  2,713  2,713
Dead Happy Limited Fintech and Insurance  2,700  -  
Metrasens Limited AI, Robotics & Hardware  2,688  -  
Vitesse PSP Ltd Fintech and Insurance  2,679  2,679
Slamcore Limited AI, Robotics & Hardware  2,550  1,800
Inrupt Inc. Communications and Infrastructure  2,372  -  
Fluidly Limited Business Services  2,299  -  
Streetbees.com Limited Business Services  2,086  -  
Excession Technologies Limited Security  298  –
CRED Investment Holdings Limited Fintech and Insurance  2,000  -  
Thirdeye Labs Limited Security  1,500  -  
Mush Limited Consumer and Social  1,500  -  
Quantum Motion Technologies Limited AI, Robotics & Hardware  1,498  1,498
Segura Systems Limited Business Services  1,470  -  
Aire Labs Limited Fintech and Insurance  1,332  -  
Multiply AI Limited Fintech and Insurance  1,283  -  
e-Therapeutics plc Life Science, Health & Wellbeing  679  -  
M10 Fintech and Insurance  626  -  
Intrepid Owls Limited Consumer and Social  550  -  
Excession Technologies Limited Security  298  -  
Phasor Inc. AI, Robotics & Hardware  250  -  
Total   443,389 52,829

*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 June 2020
Unaudited
Six months to 30 April 2019
Audited
Year to 31 December 2019
  Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
(Losses)/gains on disposal of
fixed asset investments
(672) (672) 66 66 15,626 15,626
Losses on disposal of current asset investments (368) (368) (368) (368)
(Losses)/gains on valuation of fixed asset investments (15,680) (15,680) 35,937 35,937 88,302 88,302
(Losses)/gains on valuation of current asset investments (66) (66) 1,006 1,006
Investment income* 274 274 (129) (129) 1,535 1,535
Investment management fees (381) (7,230) (7,611) (303) (5,745) (6,048) (784) (14,890) (15,674)
Performance fee (5,182) (5,182) (16,965) (16,965)
Other expenses (2,418) (2,418) (2,211) (2,211) (6,058) (6,058)
FX translation 157 157 (49) (49) (124) (124)
(Loss)/profit before tax (2,525) (23,491) (26,016) (2,643) 24,659 22,016 (5,307) 72,587 67,280
Tax
(Loss)/profit after tax (2,525) (23,491) (26,016) (2,643) 24,659 22,016 (5,307) 72,587 67,280
(Loss)/earnings per share – basic and diluted (0.3)p (2.4)p (2.7)p (0.4)p 3.5p 3.1p (0.6)p 8.6p 8.0p

*Due to write-offs of interest on loan investments, the net loan interest income figure at 30 April 2019 was a negative amount.

·     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 June 2020
Unaudited
As at 30 April 2019
Audited
As at 31 December 2019
  £’000 £’000 £’000 £’000 £’000 £’000
Fixed asset investments   663,587   522,249   640,109
Current assets:            
Corporate bonds 86,456     80,325  
Cash at bank 4,105   29,306   52,763  
Applications cash* 26   108   5,565  
Debtors 5,839   3,810   2,985  
Money market funds 147,114   283,034   149,210  
  243,540   316,258   290,848  
Current liabilities (909)   (10,446)   (25,117)  
Net current assets   242,631   305,812   265,731
             
Net assets   906,218   828,061   905,840
             
Share capital   101,272   89,618   95,161
Share premium   616,952   504,763   559,972
Capital redemption reserve   4,879   2,809   4,074
Special distributable reserve   69,413   136,417   106,915
Capital reserve realised   (47,811)   (2,327)   (45,705)
Capital reserve unrealised   187,547   117,708   209,089
Revenue reserve   (26,034)   (20,927)   (23,666)
Total equity shareholders’ funds   906,218   828,061   905,840
Net asset value per share   89.5p   92.4p   95.2p

*Cash held but not yet allotted.

The statements were approved by the Directors and authorised for issue on 28 September 2020 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 01 January 2020  95,161 559,972 4,074 106,915 (45,705) 209,089 (23,666) 905,840
Comprehensive income for the year:                
Management fees  –  –  –  – (7,230)  – (381) (7,611)
Current year gain on disposal of fixed asset investments  –  –  –  – (672)  –  – (672)
Losses on fair value of fixed asset investments  –  –  –  –  – (15,680)  – (15,680)
Losses on fair value of current asset investments  –  –  –  –  – (66)  – (66)
Loss after tax  –  –  –  –  –  – (2,144) (2,144)
Total comprehensive loss for the period  –  –  –  – (7,902) (15,746) (2,525)  (26,173)
Contributions by and distributions to owners:                
Share issue**  6,916 56,980  –  –  –  –  –  63,896
Repurchase of own shares (805)  –  805 (7,008)  –  –  – (7,008)
Dividends paid  –  –  – (30,494)  –  –  – (30,494)
Total contributions by and distributions
to owners
6,111  56,980  805 (37,502)  –  –  – 26,394
Other movements:                
Prior year fixed asset gains now realised  –  –  –  –  5,796 (5,796)  –  –
FX translation  –  –  –  –  –  – 157 157
Total other movements  –  –  –  – 5,796 (5,796) 157 157
Balance as at 30 June 2020  101,272 616,952  4,879 69,413 (47,811) 187,547 (26,034)  906,218

*Reserve is available for distribution.

**This is net of allotment fees of £9.9 million.

  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 01 November 2018  65,467  299,804  2,056  169,637  11,245  79,428 (18,235)  609,402
Comprehensive income for the year:                
Management fees (5,745) (303) (6,048)
Current year gain on disposal of fixed asset investments  66  66
Current year losses on disposal of current asset investments (368) (368)
Gains on fair value of fixed asset investments  35,937  35,937
Loss after tax (2,340) (2,340)
Performance fee (5,182) (5,182)
Total comprehensive income for the period  –  – (11,229)  35,937 (2,643)  22,065
Contributions by and distributions to owners:                
Share issue (includes DRIS)**  24,904  204,959  229,863
Repurchase of own shares (753)  753 (6,611) (6,611)
Dividends paid (includes DRIS) (26,609) (26,609)
Total contributions by and distributions
to owners
 24,151  204,959  753 (33,220)  –  196,643
Other movements:                
Prior year current asset losses now realised (2,343)  2,343
FX translation (49) (49)
Total other movements (2,343)  2,343 (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 £6.6 million.

  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 01 November 2018  65,467  299,804  2,056  169,637  11,245  79,428 (18,235)  609,402
Comprehensive income for the year:                
Management fees  –  –  –  – (14,890)  – (784) (15,674)
Current year gain on disposal of fixed asset investments  –  –  –  –  15,626  –  –  15,626
Current year losses on disposal of current asset investments  –  –  –  – (368)  –  – (368)
Gains on fair value of fixed asset investments  –  –  –  –  –  88,302  –  88,302
Gains on fair value of current asset investments  –  –  –  –  –  1,006  –  1,006
Loss after tax  –  –  –  –  –  – (4,523) (4,523)
Performance fee  –  –  – (16,965)  –  – (16,965)
Total comprehensive income for the year  –  –  –  – (16,597)  89,308 (5,307)  67,404
Contributions by and distributions to owners:                
Share issue (includes DRIS)**  31,712  260,168  –  –  –  –  –  291,880
Repurchase of own shares (2,018)  –  2,018 (17,597)  –  –  – (17,597)
Dividends paid (includes DRIS)  –  –  – (45,125)  –  –  – (45,125)
Total contributions by and distributions
to owners
 29,694  260,168  2,018 (62,722)  –  –  –  229,158
Other movements:                
Prior year fixed asset losses now realised  –  –  –  – (38,010) 38,010  –  –
Prior year current asset losses now realised  –  –  –  – (2,343)  2,343  –  –
FX translation  –  –  –  –  –  – (124) (124)
Total other movements  –  –  –  – (40,353) 40,353 (124) (124)
Balance as at 31 December 2019  95,161  559,972  4,074  106,915 (45,705)  209,089 (23,666)  905,840

*Reserve is available for distribution.

**This is net of allotment fees of £6.6 million.

Cash Flow Statement

  Unaudited

Six months to

30 June 2020

£’000
Unaudited

Six months to

30 April 2019

£’000
Audited

Period to

31 December 2019

£’000
Reconciliation of profit to cash flows from operating activities      
(Loss)/profit before tax (26,016) 22,016 67,280
Increase in debtors (2,854) (960) (135)
Increase/(decrease) in creditors (18,669) 5,523 14,737
Losses on disposal of current asset investments   –  368 368
Losses/(gains) on valuation of current asset investments 66  – (1,006)
Losses/(gains) on disposal of fixed asset investments 672 (66) (15,626)
Losses/(gains) on valuation of fixed asset investments 15,680 (35,937) (88,302)
Outflow from operating activities (31,121) (9,056) (22,684)
       
Cash flows from investing activities      
Purchase of current asset investments  (6,197)  – (79,319)
Sale of current asset investments  –  61,213  61,213
Purchase of fixed asset investments (52,827) (51,416) (127,618)
Sale of fixed asset investments 12,997  67 26,334
Inflow/(Outflow) from investing activities (46,027) 9,864 (119,390)
       
Cash flows from financing activities      
Applications Inflows allotted (5,539) (57,571)  (52,114)
Purchase of own shares (7,008) (6,611) (17,597)
Net proceed from share issues 63,896  222,772 279,942
Dividends Paid (net of DRIS) (30,494) (19,518) (33,187)
Inflow from financing activities 20,855  139,072 177,044
       
(Decrease)/Increase in cash and cash equivalents (56,293) 139,880 34,970
Opening cash and cash equivalents 207,538  172,568 172,568
Closing cash and cash equivalents 151,245 312,448 207,538
       
Cash and cash equivalents comprise      
Cash at Bank  4,105  29,306  52,763
Applications cash  26  108  5,565
Money Market Funds  147,114  283,034  149,210
   151,245  312,448  207,538




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