REG - Acceler8 Ventures - Full Year Results for the period ended 31 Dec 2023
24/04/2024 07:00
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RNS Number : 7748L Acceler8 Ventures PLC 24 April 2024
24 April 2024
ACCELER8 VENTURES PLC
("AC8" or the "Company")
Full Year Results for the period ended 31 December 2023
Acceler8 Ventures Plc (LSE: AC8) has today published its Annual Report and
Financial Statements for the period ended 31 December 2023 (the "Annual
Report").
In accordance with Listing Rule 9.6.1 copies of the Annual Report have been
submitted to the FCA and will shortly be available to view on the Company's
website at https://acceler8.ventures (https://acceler8.ventures) and for
inspection from the National Storage Mechanism
at: https://data.fca.org.uk/#/nsm/nationalstoragemechanis
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) m
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
LEI: 2138004B1HKZP1OR2C72
Enquiries
Tessera Investment Management Limited
Tony Morris +44 (0) 7742 189145
Chairman's Statement
I am pleased to present the financial results for Acceler8 Ventures Plc
("AC8", the "Company") and its subsidiary (together the "Group") for the year
ended 31 December 2023.
Since establishing the Company we have reviewed a number of opportunities. We
like to spend time getting to know the key people within our target companies
as well as spending time understanding the business in order that we can make
a proper contribution to its development going forward. We prefer to take our
time to be thorough rather than rush into a deal for the sake of getting one
done and this might be frustrating for investors expecting action.
Markets in the last few years have been shocking for smaller companies but
there are signs that things are stirring, and we have definitely seen an
uptick in opportunities to consider these past few months.
I thank our shareholders for their support and patience and very much hope
that during the course of this year that we will be in a position to present a
good opportunity for investors to consider.
David Williams
Chairman
23 April 2024
Report of the Directors
The Directors of the Company present their report for the year ended 31
December 2023.
PRINCIPAL ACTIVITY AND BUSINESS REVIEW
For the financial year ended 31 December 2023, the Group and Company's
principal activities were that of a holding group and company, respectively.
The Group and Company have actively pursued their strategy through the
sourcing and assessment of acquisition and investment opportunities across
gaming, media and entertainment, software and technology, industrials and
business services sectors.
RESULTS
During the year, AC8 recorded a loss of £55,236 (2022: loss of £185,117) and
the loss per share was £0.07 (2022: loss per share of £0.25), reflecting
moderate monthly operating expenses of the Group. The Group and Company had
cash reserves at the end of the year of £160,441 (2022: £244,948), and net
assets of £113,802 (2022: £168,725) and £113,735 (2022: £168,658)
respectively.
DIVIDENDS
At this point in the Company's development, it does not anticipate declaring
any dividends in the foreseeable future. As such, the Directors do not
recommend the payment of a dividend for the year.
FUTURE DEVELOPMENTS
The Directors expect to continue to execute the Group's strategy in sourcing
and assessing acquisition and investment opportunities across its stated
sectors of focus.
KEY PERFORMANCE INDICATORS
The Board continues to focus on maximising shareholder value through pursuing
its acquisition strategy.
As such, the Board will identify and develop appropriate key performance
indicators after an acquisition has been completed.
GOING CONCERN
The Directors, having made due and careful enquiry, are of the opinion that
the Group and Company have adequate working capital to execute their
operations over the next 12 months (the "going concern period"). The Group and
Company's unaudited cash balance as at 12 April 2024 was £112,117. Excluding
the consummation of any investment or acquisition which will likely require
specific funding, the Group and Company have adequate resources available to
fund the on-going forecast operating expenses during the going concern period
as a result of the Group and the Company's current unaudited cash balance, as
well as the provision of a letter of financial support provided by the
Directors to the Group. Having also performed additional stress testing on the
forecasts, the Directors are comfortable there are also sufficient mitigating
actions on the incurring of expenditure within the business that could be
taken, to ensure the business can meet its ongoing liabilities as they fall
due. The Directors, therefore, have made an informed judgement at the time of
approving the financial statements, that there is a reasonable expectation
that the Group and Company have adequate resources to continue in operational
existence for the foreseeable future. As a result, the Directors have adopted
the going concern basis of accounting in preparing the annual financial
statements (see Note 2).
RISK MANAGEMENT
In order to execute the Group's strategy, the Company and its subsidiaries
will be exposed to both financial and non-financial risks. The Board has
overall responsibility for the Group's risk management and it is the Board's
role to consider whether those risks identified by management are acceptable
within the Group's strategy and risk appetite. The Board therefore
periodically reviews the principal risks and considers how effective and
appropriate the controls that management has in place to mitigate the risk
exposure are and will make recommendations to management accordingly.
As the Company had not completed an investment or acquisition in the year, it
has limited financial statements and/or historical financial data, and limited
trading history. As such, the Company during the year was subject to the risks
and uncertainties associated with an early-stage acquisition company,
including the risk that the Company will not achieve its investment objectives
and that the value of any investment or acquisition could decline and may
result in the partial or complete loss of capital invested. The past
performance of investee companies or assets managed by the Directors will not
necessarily be a guide to future business, results of operations, financial
condition or prospects of the Company.
In order to mitigate against these risks, the Directors continue to undertake
thorough due diligence on investment opportunities and acquisition targets, to
a level considered reasonable and appropriate by the Company on a case-by-case
basis, including the potential commissioning of third-party specialist reports
as appropriate. Following completion of any investment or acquisition, it is
intended that any investments or assets will be overseen by the Directors and
assisted by the Company's professional advisers.
Financial Risk Management
The Directors consider the Group to be exposed to the following financial
risks:
a. Price risk: the price paid for securities is subject to market
movement that may have an impact on the operations of the Group when raising
finance;
b. Cash flow interest rate risk: the Group has cash balances which
exposed it to movement in the market interest rates; and
c. Liquidity risk: the Group manages its cash requirements through
detailed forecasting and planning for the amount and timing of payments and
receipts of interest income, to ensure cash resources are available when
required.
Given the relatively small size and operation of the Group in the year, the
Directors have not delegated the responsibility of risk monitoring to a
sub-committee of the Board, but closely monitor the risks on a periodic basis.
The Directors consider their exposure in the financial year to have been low.
Refer to Note 15 for assessment of the risks arising from financial
instruments.
Non-financial Risk Management
The non-financial risk factors for the year ended 31 December 2023 did not
materially change from those set out in AC8's Prospectus dated 14 July 2021.
GREENHOUSE GAS EMISSIONS, ENERGY CONSUMPTION AND ENERGY EFFICIENCY
As the Company has not completed its first acquisition and has only two
Directors, limited travel and no premises, the Directors do not consider any
disclosure under the Task Force on Climate-related Financial Disclosures is
required at this juncture, however the Company will continue to review this
position as it executes its investment and acquisition strategy.
POLITICAL CONTRIBUTIONS
The Company has made no political contributions during the year.
CHARITABLE DONATIONS
The Company has made no charitable donations during the year.
POST BALANCE SHEET EVENTS
There have been no post balance sheet events. See Note 21.
SHARE CAPITAL
Details of the Company's share capital is set out in Note 16. The Company's
share capital consists of one class of ordinary share, which does not carry
rights to fixed income. As at 31 December 2023, there were 750,000 ordinary
shares of 1p par value each in issue.
SIGNIFICANT SHAREHOLDERS
As at 12 April 2024, the Company had been advised of the following notifiable
interests (whether directly or indirectly held) in voting rights:
Name Shareholding Percentage
David Williams 275,000 36.7%
Giles Willits 100,000 13.3%
Hargreaves Lansdown (Nominees) Limited 69,778 9.3%
Bank of New York Nominees Limited 65,900 8.8%
Helen Johnson 37,500 5.0%
Transact Nominees Limited 30,000 4.0%
David Morris 25,000 3.3%
Tessera Investment Management Limited 25,000 3.3%
As at 12 April 2024, the Directors in aggregate held 375,000 ordinary shares,
which represents 50.0 per cent. of the Company's issued share capital.
COMPANY DIRECTORS
The Directors during the year and summaries of their experience are set out
below.
David Williams Non-Executive Chairman (aged 71)
David has over 39 years' experience in investment markets, serving as Chairman
in executive and non-executive capacities for a number of public and private
companies. He has overseen the development of these companies, raising in
excess of £1 billion of capital to support both organic and acquisitive
growth initiatives.
David was the original founder of Marwyn Capital LLP, the award-winning
investment management company. David was also formerly Chairman of
Entertainment One Ltd. (LSE: ETO), Zetar plc, and Oxford BioDynamics Plc (AIM:
OBD), and Non-Executive Director of Breedon Group plc (LSE: BREE). He
currently serves as Non-Executive Chairman of the AIM-quoted cyber security
business, Shearwater Group plc (AIM: SWG) and Main Market listed Red Capital
Plc (LSE: REDC) and is a Non-Executive Director of Bay Capital Plc (LSE: BAY).
Giles Willits Non-Executive Director (age 57)
Giles has more than 21 years' experience in senior leadership and financial
roles in multiple household name businesses. He was recently appointed Chief
Investment Officer of Intuitive Investments Group plc (LSE: IIG), an
investment company concentrating on fast growing and/or high potential
technology and life sciences businesses. Prior to this, Giles was Chief
Financial Officer and board director of IG Design Group plc (AIM: IGR), the
world's largest consumer gift packaging organisation.
Previously Giles was Chief Financial Officer of Entertainment One Ltd. (LSE:
ETO), having joined prior to its admission to trading on AIM in 2007, during
which time the business grew organically and through acquisitions to a market
capitalisation of over £1 billion, becoming a FTSE250 premium listed
organisation. He was also formerly Director of Group Finance at J Sainsbury
plc and qualified as a chartered accountant at PricewaterhouseCoopers.
During his extensive career, Giles has completed numerous corporate
acquisitions as part of buy-and-build strategies, acquiring private and
publicly listed companies, stepping companies up from AIM to the Main Market,
as well as leading on equity and debt financings in support of organic growth
and acquisition activity.
The Directors who held office during the year and their beneficial interest in
the share capital of the Company at 31 December 2023 were as follows:
31 December 2023
David Williams 275,000
Giles Willits 100,000
375,000
DIRECTORS REMUNERATION
The Chairman and Non-Executive Director are each entitled to fees of £20,000
each per annum for their respective roles within the Company, as per their
service agreements entered into on 13 July 2021. There are no other benefits
paid to Directors outside of their service fees, save for ordinary course
reimbursable expenses properly incurred in the performing of their duties as
Directors. The Company does not operate a pension scheme.
31 December
Benefits 2023
Salary in kind Total
Director £ £ £
David Williams 20,000 - 20,000
Giles Willits 20,000 - 20,000
Giles Willits - additional salary cost in relation to prior periods 3,464 - 3,464
43,464 - 43,464
In addition to the Directors' fee entitlements outlined above, the Directors
are also participants in the Subco Incentive Scheme as detailed below.
SUBCO INCENTIVE SCHEME
The Directors believe that the success of the Company will depend to a high
degree on the future performance of key employees and advisers in executing
and supporting the Company's growth strategy. The Company has therefore
established equity-based incentive arrangements which are, and will continue
to be, an important means of retaining, attracting and motivating key
employees, consultants and advisers, and also for aligning the interests of
the Directors with those of shareholders.
On 27 May 2021, the Group created a new Subco Incentive Scheme within its
wholly owned subsidiary Acceler8 Ventures Subco Limited. Under the terms of
the Subco Incentive Scheme, scheme participants are only rewarded if a
predetermined level of shareholder value is created over a three to five year
period or upon a change of control of the Company or Subco (whichever occurs
first), calculated on a formula basis by reference to the growth in market
capitalisation of the Company, following adjustments for the issue of any new
ordinary shares and taking into account dividends and capital returns
("Shareholder Value"), realised by the exercise by the beneficiaries of a put
option in respect of their shares in Subco and satisfied either in cash or by
the issue of new ordinary shares at the election of the Company.
Under these arrangements in place, participants are entitled up to 15 per
cent. of the Shareholder Value created, subject to such Shareholder Value
having increased by at least 12.5 per cent. per annum compounded over a period
of between three and five years from Admission, or following a change of
control of the Company or Subco.
In order to implement the Subco Incentive Scheme, the Company as sole
shareholder of Subco, approved the creation of a new share class in Subco (the
"B Shares"). At the same time the Subco's existing ordinary shares were
redesignated A Shares. The B Shares do not have voting or dividend rights.
On 27 May 2021, David Williams, Chairman of the Company, Giles Willits, a
Non-Executive Director of the Company, and Kathleen Long and Anthony Morris,
Directors of Tessera Investment Management Limited ("Tessera"), became the
first participants in the Subco Incentive Scheme ("Founder Participants"), and
as such, the proportion of Shareholder Value attaching to the Subco Incentive
Scheme is 2.9 per cent. of a total cap of 15 per cent.
The Founder Participants and their respective holdings are outlined below.
Subco
Participant B shares held
David Williams 1,667
Giles Willits 24,000
Kathleen Long 1,667
Anthony Morris 1,666
29,000
There were no new incentives granted under the Subco Incentive Scheme during
2023.
CORPORATE GOVERNANCE
As a Jersey company and a company with a Standard Listing on the London Stock
Exchange, the Company is not required to comply with the provisions of the UK
Corporate Governance Code 2018. Furthermore, there is no applicable regime of
corporate governance to which the directors of a Jersey company must adhere
over and above the general fiduciary duties and duties of care, skill and
diligence imposed on such directors under Jersey law. Notwithstanding this,
the Directors are committed to maintaining high standards of corporate
governance and will be responsible for carrying out the Company's objectives
and implementing its business strategy.
All investment, acquisition, divestment and other strategic decisions are
considered and determined by the Board. At present, the Board reviews
investment and acquisition opportunities on an as required basis, and meets
regularly with its Strategic Advisor to discuss possible inorganic growth
opportunities, as well as monitor deal flow and investment and acquisitions in
progress, and review the Company's strategy to ensure that it remains aligned
to the delivery of shareholder value. Those investment and acquisition
opportunities that are assessed by the Board (with support from its Strategic
Advisor) are considered in light of the investment and acquisition criteria as
detailed in the Company's Admission Document. In addition, as part of the
investment and acquisition screening process, the Company will augment Board
and Strategic Advisor capability on a case by case basis as required with
industry and operating partner input, where deep domain expertise can be
accessed. The Board provides leadership within a framework of prudent and
effective controls. The Board has established the corporate governance values
of the Company and has overall responsibility for setting the Company's
strategic aims, defining the business plan and strategy and managing the
financial and operational resources of the Company.
In this regard, the Board, so far as is practicable given the Company's size
and stage of its development, has voluntarily adopted the QCA Code as its
chosen corporate governance framework. There are certain provisions of the QCA
Code which the Company will not adhere to currently, and their adoption will
be delayed until such time as the Directors believe it is appropriate to do
so. It is anticipated that this will occur concurrently with the Company's
first material investment or acquisition.
Following such an acquisition, the Company will seek to develop its corporate
governance position, and will address key differences to the QCA Code.
Specifically, it is anticipated this will include:
i. the augmentation of the Board with suitably qualified
additional executive and non-executive directors including independents;
ii. the implementation of audit, remuneration and nomination
committees with appropriate terms of reference;
iii. a formalised annual evaluation and review process covering the
Board and Committees, including succession planning;
iv. the publication of KPIs;
v. the development of a corporate and social responsibility policy;
and
vi. an enhanced risk management and governance framework tailored to
the operating assets and strategic direction of the enlarged entity.
ROLE OF THE BOARD
The Board is responsible for the management of the business of the Group,
setting the strategic direction of the Group and establishing the policies of
the Group. It is the Directors' responsibility to oversee the financial
position of the Group and monitor the business and affairs of the Group, on
behalf of the shareholders, to whom they are accountable. The primary duty of
the Directors is to act in the best interests of the Group and Company at all
times. The Board also addresses issues relating to internal control and the
Group's approach to risk management and has formally adopted an
anti-corruption and bribery policy.
The Group does not have a separate investing committee and therefore the Board
as a whole will be responsible for sourcing acquisitions and ensuring that
opportunities are in conformity with the Group's strategy.
The Group holds four formal Board meetings a year, with unscheduled meetings
as matters arise which require the attention of the Board. Formal Board
meetings are timed to link to key events in the Group's corporate calendar.
Outside the scheduled and unscheduled meetings of the Board, the Directors
maintain frequent contact with each other to keep them fully briefed on the
Group's operations.
INTERNAL CONTROLS
The Board acknowledges its responsibility for establishing and monitoring the
Group's systems of internal control. Although no system of internal control
can provide absolute assurance against material misstatement or loss, the
Group's systems are designed to provide the Directors with reasonable
assurance that problems can be identified on a timely basis and dealt with
appropriately.
The Group maintains an appropriate process for financial reporting. The annual
budget is reviewed and approved by the Board before being formally adopted.
Other key procedures that have been established and which are designed to
provide effective control are as follows:
Management structure - The Board meets regularly on a formal and informal
basis to discuss all issues affecting the Group.
Investment appraisal - The Group has a robust framework for investment
appraisal and approval is required by the Board, where appropriate.
Share dealing and inside information - the Company has adopted a share dealing
code regulating trading and confidentiality of inside information for the
Directors and other persons discharging managerial responsibilities (and their
persons closely associated) which contains provisions appropriate for a
company whose shares are admitted to trading on the Official List
(particularly relating to dealing during closed periods which will be in line
with the Market Abuse Regulation). The Company takes all reasonable steps to
ensure compliance by the Directors and any relevant employees with the terms
of that share dealing code.
The Board reviews the effectiveness of the systems of internal control and
considers the major business risks and the control environment. No significant
deficiencies have come to light during the year and no weaknesses in internal
financial control have resulted in any material losses, or contingencies which
would require disclosure, as recommended by the guidance for Directors on
reporting on internal financial control.
The Directors are focused on careful management of the Group's cash and
financial resources through Board level approvals. At such time that the Group
completes an acquisition, the Directors anticipate that the Group's financial
position and prospects procedures regime will be updated and expanded as
necessary to cater for the nature of the Group's business following completion
of its inaugural investment or acquisition.
BOARD EVALUATION
In the year, the Board evaluation process was limited to an ongoing informal
evaluation of the performance of the Board by each Director. This will be
replaced by a formal, annual evaluation process once the Group has completed
its first acquisition.
EXTERNAL ADVISERS
The Board accessed the following external advisers during the year and post
the year end:
Mayer Brown International LLP and Ogier (Jersey) LLP - legal
Tessera Investment Management Limited - capital markets and M&A
JTC Plc - company secretarial, governance and regulatory filings
CONFLICTS OF INTEREST
A Director has a duty to avoid a situation in which he or she has, or can
have, a direct or indirect interest that conflicts, or possibly may conflict,
with the interests of the Company. The Board has satisfied itself that there
are no conflicts of interest where the Directors have appointments on the
Boards of, or relationships with, companies outside the Company. Furthermore,
the Board requires Directors to declare all appointments and other situations
which could result in a possible conflict of interest, and therefore believes
it has a robust framework to deal with any conflict of interest should it
arise.
RELATIONS WITH SHAREHOLDERS
The Chairman is the Group's principal spokesperson with investors, fund
managers, the press and other interested parties. As well as the Annual
General Meeting with shareholders, the other Director may give formal
presentations at investor road shows following the announcement of interim
and full year results.
Notice of this year's Annual General Meeting will shortly be sent to
shareholders.
DISCLOSURE OF INFORMATION TO THE AUDITOR
So far as the Directors are aware, there is no relevant audit information of
which the Group and Company's independent auditor is unaware, and each
Director has taken all the steps that he ought to have taken as a Director
in order to make himself aware of any relevant audit information and to
establish that the Group and Company's independent auditor is aware of that
information.
The Directors confirm to the best of their knowledge that:
· the financial statements, prepared in accordance with the
relevant financial reporting framework, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Group and
Company and the undertakings included in the consolidation taken as a whole;
· the Chairman's Statement and Report of the Directors
includes a fair review of the development and performance of the business and
the position of the Group and Company and the undertakings included in the
consolidation taken as a whole, together with a description of the principal
risks and uncertainties that they face; and
· the annual report and accounts, taken as a whole, are fair,
balanced and understandable and provide the information necessary for
shareholders to assess the Group and Company's position and performance,
business model and strategy.
INDEPENDENT AUDITOR
The independent auditor, MHA, will be proposed for re-appointment at the
forthcoming Annual General Meeting.
ON BEHALF OF THE BOARD
David Williams
Chairman
23 April 2024
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Directors' report and the
financial statements in accordance with applicable law and regulations.
Jersey Company law requires the directors to prepare financial statements for
each financial year. Under that law the Directors have elected to prepare the
consolidated financial statements in accordance with International Financial
Reporting Standards as adopted by the United Kingdom ("IFRS") and the Company
financial statements in accordance with FRS 101 "Reduced disclosure
Framework", the Financial Reporting Standard applicable in the UK. Under
company law, the Directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state of affairs
of the Group and Company and of the profit or loss of the Group for that year.
In preparing these financial statements, the Directors are required to:
· select suitable accounting policies and then apply them
consistently;
· make judgements and estimates that are reasonable and
prudent;
· state whether the Group financial statements have been
prepared in accordance with IFRS as adopted by the United Kingdom;
· state whether the Company financial statements have been
prepared in accordance with FRS 101 "Reduced disclosure framework"; and
· prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will continue in
business.
The Directors are responsible for keeping proper accounting records that are
sufficient to show and explain the Group and Company's transactions and
disclose with reasonable accuracy at any time the financial position of the
Group and Company and enable them to ensure that the financial statements
comply with the Companies (Jersey) Law 1991. They are also responsible for
safeguarding the assets of the Group and Company and hence for taking
reasonable steps for the prevention and detection of fraud and other
irregularities.
The maintenance and integrity of the Group's website is the responsibility of
the Directors. The work carried out by the independent auditors does not
involve the consideration of these matters and, accordingly, the independent
auditors accept no responsibility for any changes that may have occurred in
the accounts since they were initially presented on the website. Legislation
in Jersey governing the preparation and dissemination of the accounts and the
other information included in annual reports may differ from legislation in
other jurisdictions.
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2023
2023 2022
Note £ £
Administrative expenses (156,347) (185,232)
Other operating income 6 99,980 -
Operating loss 6 (56,367) (185,232)
Interest receivable 8 1,131 115
Loss on ordinary activities before taxation (55,236) (185,117)
Taxation charge 9 - -
Loss and total comprehensive loss for the year (55,236) (185,117)
Loss per share
Basic and diluted 10 (£0.07) (£0.25)
Loss attributable to:
Owners of the parent company (55,236) (185,117)
Non-controlling interests - -
All activities in both the current and the prior period relate to continuing
operations.
The notes below form part of these consolidated financial statements.
Consolidated Statement of Financial Position
As at 31 December 2023
31 December 31 December 31 December 31 December
2023 2023 2022 2022
Note £ £ £ £
Current assets
Cash and cash equivalents 12 160,441 244,948
Other receivables 13 169 -
Prepayments 13 6,886 6,866
Total current assets 167,496 251,814
Total assets 167,496 251,814
Current liabilities
Trade and other payables 14 53,694 83,089
Total current liabilities 53,694 83,089
Total liabilities 53,694 83,089
Total net assets 113,802 168,725
Equity
Issued share capital 16 7,500 7,500
Share premium 17 729,598 729,598
Capital redemption reserve 17 2 2
Share-based payment reserve 19 772 459
Non-controlling interest 17 67 67
Retained deficit 17 (624,137) (568,901)
Total equity 113,802 168,725
The consolidated financial statements were approved and authorised for issue
by the Board on 23 April 2024 and were signed on its behalf by:
David Williams
Chairman
The notes below form part of these consolidated financial statements.
Consolidated Statement of Changes in Equity
For the year ended 31 December 2023
Share-
Capital based Non-
Share Share redemption payment controlling Retained
capital premium reserve reserve interest deficit Total
Note £ £ £ £ £ £ £
At 31 December 2021 7,500 729,598 2 146 67 (383,784) 353,529
Loss for the year - - - - - (185,117) (185,117)
Transactions with owners in their capacity as owners:
Share-based payment charge 19 - - - 313 - - 313
At 31 December 2022 7,500 729,598 2 459 67 (568,901) 168,725
Loss for the year - - - - - (55,236) (55,236)
Transactions with
owners in their
capacity as owners:
Share-based payment charge 19 - - - 313 - - 313
At 31 December 2023 7,500 729,598 2 772 67 (624,137) 113,802
The notes below form part of these consolidated financial statements.
Consolidated Statement of Cash Flows
For the year ended 31 December 2023
2023 2022
£ £
Operating activities
Loss before taxation (55,236) (185,117)
Adjustments for:
Share-based payment charge 313 313
Operating cash flows before changes in working capital (54,923) (184,804)
Increase in trade and other receivables (189) (5,697)
(Decrease)/increase in trade and other payables (29,395) 3,009
Net cash outflows from operating activities (84,507) (187,492)
Net decrease in cash and cash equivalents (84,507) (187,492)
Cash and cash equivalents at beginning of the year 244,948 432,440
Cash and cash equivalents at end of the year 160,441 244,948
As the Group does not have any financing liabilities outside of working
capital and has no cashflows from financing activities in both periods
presented, no separate net debt reconciliation has been presented within these
consolidated financial statements.
The notes below form part of these consolidated financial statements.
Notes forming part of the Consolidated Financial Statements
For the year ended 31 December 2023
1 General information
The Company is a public limited company incorporated and domiciled in Jersey,
whose shares are publicly traded on the Main Market of the London Stock
Exchange. The Company is the parent company of Acceler8 Ventures Subco Limited
(a private company under the laws of Jersey with registered number 134587),
and together form the "Group".
The address of its registered office is 28 Esplanade, St. Helier, Channel
Islands, JE2 3QA, Jersey.
The Group has been incorporated for the purpose of identifying suitable
acquisition opportunities in accordance with the Group's investment and
acquisition strategy with a view to creating shareholder value. The Group will
retain a flexible investment and acquisition strategy which will, subject to
appropriate levels of due diligence, enable it to deploy capital in target
companies by way of minority or majority investments, or full acquisitions
where it is in the interests of shareholders to do so. This will include
transactions with target companies located in the UK and internationally.
2 Material accounting policies
The accounting policies set out below have, unless otherwise stated, been
applied consistently to all periods presented in theses consolidated financial
statements.
The principal policies adopted in the preparation of the consolidated
financial statements are as follows:
(a) Basis of preparation
While the financial information included in this preliminary announcement has
been prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards, this announcement does not itself
contain sufficient information to comply with those standards. The Company
expects to publish full financial statements that comply with International
Financial Reporting Standards in April 2024.
The consolidated financial statements are prepared on the historical cost
basis.
The comparative figures presented cover the year ended to 31 December 2022.
(b) Basis of consolidation
The consolidated financial statements present the results of the Company and
its subsidiaries (the "Group") as if they formed a single entity. Intercompany
transactions and balances between Group companies are therefore eliminated in
full.
Where the Group has control over a Company, it is classified as a subsidiary.
The Group controls a Company if all three of the following elements are
present: power over the Company, exposure to variable returns from the
Company, and the ability of the Group to use its power to affect those
variable returns. Control is reassessed whenever facts and circumstances
indicate that there may be a change in any of these elements of control.
The consolidated financial statements incorporate the results of business
combinations using the acquisition method. In the consolidated statement of
financial position, the acquiree's identifiable assets, liabilities and
contingent liabilities are initially recognised at their fair values at the
acquisition date. The acquisition related costs are included in the
consolidated statement of comprehensive income on an accruals basis. The
results of acquired operations are included in the consolidated statement of
comprehensive income from the date on which control is obtained.
(c) Functional and presentational currency
The Group's functional and presentational currency for these financial
statements is the pound sterling.
(d) Going concern
The Directors, having made due and careful enquiry, are of the opinion that
the Group and Company have adequate working capital to execute their
operations over the next 12 months (the "going concern period"). The Group and
Company's unaudited cash balance as at 12 April 2024 was £112,117. Excluding
the consummation of any investment or acquisition, which will likely require
specific funding, the Group and Company have adequate resources available to
fund the on-going forecast operating expenses during the going concern period
as a result of the Group and the Company's current unaudited cash balance, as
well as the provision of a letter of financial support provided by the
Directors to the Group. Having also performed additional stress testing on the
forecasts, the Directors are comfortable there are also sufficient mitigating
actions on the incurring of expenditure within the business that could be
taken, to ensure the business can meet its ongoing liabilities as they fall
due. The Directors, therefore, have made an informed judgement at the time of
approving the financial statements, that there is a reasonable expectation
that the Group and Company have adequate resources to continue in operational
existence for the foreseeable future. As a result, the Directors have adopted
the going concern basis of accounting in preparing the annual financial
statements.
(e) Interest receivable
Interest receivable is recognised on a time-proportion basis using the
effective interest rate method.
(f) Employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis
and are expensed as the related service is provided. A liability is recognised
for the amount expected to be paid under short-term cash bonus or
profit-sharing plans if the Group has a present legal or constructive
obligation to pay this amount as a result of past service provided by the
employee and the obligation can be estimated reliably.
(g) Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax
is recognised in the income statement except to the extent that it relates to
items recognised in other comprehensive income or directly in equity, in which
case it is recognised in other comprehensive income or equity respectively.
Current tax is the expected tax payable or receivable on the taxable income or
loss for the year, using tax rates and laws enacted or substantively enacted
at the statement of financial position date.
Deferred tax is provided on temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts
used for taxation purposes. The following temporary differences are not
provided for: the initial recognition of goodwill; the initial recognition of
assets or liabilities that affect neither accounting nor taxable profit other
than in a business combination, and differences relating to investments in
subsidiaries to the extent that they will probably not reverse in the
foreseeable future. The amount of deferred tax provided is based on the
expected manner of realisation or settlement of the carrying amount of assets
and liabilities, using tax rates and laws enacted or substantively enacted at
the statement of financial position date.
A deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the temporary
difference can be utilised.
(h) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and short-term deposits with
an original maturity of three months or less from inception, held for meeting
short term commitments.
(i) Equity
Equity comprises of share capital, share premium, capital redemption reserve,
share-based payment reserve, non-controlling interest and retained deficit.
Share capital is measured at the par value.
Share premium and retained deficit represent balances conventionally
attributed to those descriptions. The transaction costs relating to the issue
of shares was deducted from share premium.
The Capital redemption reserve is made up on amounts arising from the
cancellation of the deferred shares.
Share-based payment reserve includes the cumulative share-based payment
charged to equity.
Non-controlling interest reserve arises out of amounts due to holders of the B
shares in Acceler8 Ventures Subco Limited.
(j) Financial assets and liabilities
The Group's financial assets and liabilities comprise cash and cash
equivalents and accruals. Financial assets are stated at amortised cost less
provision for expected credit losses. Financial liabilities are stated at
amortised cost.
(k) Share-based payments
The Group operates an equity-settled share-based payment plan. The fair value
of the employee services received in exchange for the grant of options is
recognised as an expense over the vesting period, based on the Group's
estimate of awards that will eventually vest, with a corresponding increase in
equity as a share-based payment reserve.
This plan includes market-based vesting conditions for which the fair value at
grant date reflects and are therefore not subsequently revisited. The fair
value is determined using a binomial model.
(l) Related party transactions
The Group discloses transactions with related parties which are not wholly
owned with the same group. It does not disclose transactions with members of
the same group that are wholly owned.
(m) Accounting standards issued
The following amendments to standards were issued and adopted in the year,
with no material impact on the financial statements (all effective for annual
periods beginning on or after 1 January 2023):
● IFRS 17 - Insurance Contracts
● Amendments to IAS 1 - Presentation of Financial Statements and
IFRS Practice Statement 2 - Making Materiality Judgements: Disclosure of
material accounting policies
● Amendment to IAS 8 - Accounting Policies, Changes in Accounting
Estimates and Errors: Definition of accounting estimates
● Amendment to IAS 12 - Income Taxes: Deferred tax assets and
liabilities arising from a single transaction
● Amendment to IAS 12 - Income Taxes: International tax reform and
temporary exception for deferred tax assets and liabilities related to the
OECD pillar two income taxes
There were no other new accounting standards issued that have been adopted in
the year.
(n) Standards in issue but not yet effective
At the date of authorisation of these financial statements there were
amendments to standards which were in issue, but which were not yet effective,
and which have not been applied. The principal ones are detailed below. The
Directors do not expect the adoption of these amendments to standards to have
a material impact on the financial statements.
Effective for periods beginning on or after 1 January 2024:
● Amendment to IFRS 16 - Leases: Leases on sale and leaseback
● Amendment to IAS 1 - Presentation of Financial Statements:
Non-current liabilities with covenants
● Amendments to IAS 7 - Statement of Cash Flows and IFRS 7 -
Financial Instruments: Supplier finance
Effective for periods beginning on or after 1 January 2025:
● Amendments to IAS 21 - The Effects of Changes in Foreign Exchange
Rates: Lack of exchangeability
3 Accounting estimates and judgements
In preparing the consolidated financial statements, the Directors have to make
judgments on how to apply the Group's accounting policies and make estimates
about the future. The Directors do not consider there to be any critical
judgments that have been made in arriving at the amounts recognised in the
consolidated financial statements with the exception of the valuation of
share-based payments. Please see Note 19 for further details.
4 Employees
Staff costs, including Directors, consist of:
2023 2022
£
£
Wages and salaries 43,464 40,000
43,464 40,000
2023 2022
Number
Number
The average number of employees, including Directors, during the year was: 2 2
5 Directors' remuneration
The Company Directors are considered the only key management personnel and
their remuneration was as follows:
2023 2022
£
£
Directors' emoluments 43,464 40,000
43,464 40,000
Of the Directors' emoluments recognised in the current year, £40,000 relates
to remuneration for qualifying services in the current year and £3,464
relates to remuneration for qualifying services in prior periods that have
been recognised in the current year.
6 Operating loss
2023 2022
£
£
This has been arrived at after charging/ (crediting):
Professional services (24,737) 112,229
Fees payable to the Company's independent auditor for the audit of the parent 20,000 22,000
and consolidated accounts
An amount of £99,980 recognised within the operating loss for the year
relates to a payment received by the Company under a cost indemnity
arrangement (the "Cost Indemnity") in place with a counterparty, over which a
director of the Company has significant influence due to common directorships.
Pursuant to the Cost Indemnity, the counterparty agreed to repay certain
transaction expenses incurred by the Company in the event that an acquisition
of the counterparty by the Company was not successfully concluded. This has
resulted in an overall credit within the "professional services" category of
administrative expenses in the year.
7 Adjusted earnings before interest, tax, depreciation and amortisation
(Adjusted EBITDA)
2023 2022
£
£
Loss before tax (55,236) (185,117)
Interest receivable (1,131) (115)
EBITDA loss (56,367) (185,232)
Share-based payment charge 313 313
Adjusted EBITDA loss (56,054) (184,919)
8 Interest receivable
2023 2022
£
£
Bank interest receivable 1,131 115
9 Taxation
2023 2022
£
£
Jersey corporation tax
Corporation tax on loss for the year - -
Total taxation on loss on ordinary activities - -
2023 2022
£
£
Loss before tax (55,236) (185,117)
Tax for financial service companies at 10% (2022: 10%) (5,524) (18,512)
Effect of:
Tax losses on which a deferred tax asset has not been recognised 5,524 18,512
Total taxation on loss on ordinary activities - -
Deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which the deductible temporary
differences and carry forward tax losses/credits can be utilised. Accordingly,
the Group has not recognised deferred tax assets in respect of deductible
temporary differences and carry forward tax losses as at 31 December 2023 and
31 December 2022 respectively, as it is not probable at year end that relevant
taxable profits will be available in future based on the current activities of
the Group as a holding group. There are no expiry dates on these tax losses as
at the year end. The unrecognised deferred tax asset is summarised below:
Tax losses and unrecognised deferred tax asset carried forward
2023 2022
£
£
Cumulative temporary differences and carry forward tax losses 624,137 568,901
Unrecognised deferred tax asset on above at 10% (based on the enacted tax rate 62,414 56,890
at the date of signing the financial statements)
10 Earnings per share
Earnings per share ("EPS") is calculated by dividing the loss after tax for
the year by the weighted average number of shares in issue for the year, these
figures being as follows:
2023 2022
£
£
Loss used in basic and diluted EPS, being loss after tax (55,236) (185,117)
Adjustments:
Share-based payment charge 313 313
Adjusted earnings used in adjusted EPS (54,923) (184,804)
The Subco Incentive Scheme share options (Note 19) have not been included in
the diluted EPS on the basis that they are anti-dilutive, however they may
become dilutive in future periods.
2023 2022
Number
Number
Weighted average number of ordinary shares of 1p each used as the denominator 750,000 750,000
in calculating basic and diluted EPS
Earnings/(loss) per share
Basic and diluted (£0.07) (£0.25)
Adjusted - basic and diluted (£0.07) (£0.25)
11 Subsidiaries
The Company directly owns the ordinary share capital of its subsidiary
undertakings as set out below:
Subsidiary Nature of Country of Proportion of Proportion of
business incorporation A ordinary B ordinary
shares held shares held
by Company by Company
Acceler8 Ventures Subco Limited Intermediate holding company Jersey, Channel Islands 100 per cent. 0 per cent.
The address of the registered office of Acceler8 Ventures Subco Limited (the
"Subco") is 28 Esplanade, St. Helier, Channel Islands, JE2 3QA, Jersey. The
Subco was incorporated on 25 March 2021.
The A ordinary shares have full voting rights, full rights to participate in a
dividend and full rights to participate in a distribution of capital. The B
ordinary shares have been issued pursuant to the Company's Subco Incentive
Scheme.
12 Cash and cash equivalents
2023 2022
£
£
Cash and cash equivalents 160,441 244,948
160,441 244,948
13 Trade and other receivables
2023 2022
£
£
Other receivables 169 -
Prepayments 6,886 6,866
7,055 6,866
14 Trade and other payables
Current trade and other payables 2023 2022
£
£
Accruals 53,694 83,089
53,694 83,089
15 Financial instruments
The Group's financial assets and liabilities comprise cash and cash
equivalents, other receivables and accruals. The carrying value of all
financial assets and liabilities equals fair value given their short-term
nature.
Financial assets measured
at amortised cost
2023 2022
£ £
Current financial assets
Cash and cash equivalents 160,441 244,948
Other receivables 169 -
160,610 244,948
Financial liabilities measured
at amortised cost
2023 2022
£ £
Current financial liabilities
Accruals 53,694 83,089
53,694 83,089
Credit risk
The Group's credit risk is wholly attributable to its cash balance. All cash
balances are held at a reputable bank in Jersey. The credit risk from its cash
and cash equivalents is deemed to be low due to the nature and size of the
balances held.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its
financial obligations as they fall due.
The Group's approach to liquidity risk is to ensure that sufficient liquidity
is available to meet foreseeable requirements and to invest funds securely and
profitably.
The following table details the contractual maturity of financial liabilities
based on the dates the liabilities are due to be settled:
Financial liabilities:
Less 2 to 5 Years More Total
than 1 year
£
than 5 years
£
£
£
Accruals 53,694 - - 53,694
At 31 December 2023 53,694 - - 53,694
Accruals 83,089 - - 83,089
At 31 December 2022 83,089 - - 83,089
16 Share capital
Allotted, called up and fully paid
2023 2022 2023 2022
Number
Number
£
£
Ordinary shares of 1p each: 750,000 750,000 7,500 7,500
At 31 December 2023 750,000 750,000 7,500 7,500
All shares are equally eligible to receive dividends and the repayment of
capital and represent one vote at the shareholders' meeting of the Company.
Following a sub-division and re-designation of share capital in 2021, the
issued share capital of the Company included 198 deferred shares of a par
value of £0.01 each. On 21 May 2021, in accordance with article 5B of the
Articles, the Company redeemed for nil consideration the deferred shares. Any
amounts standing to the credit of any nominal or share premium account
relating to deferred shares that were redeemed were credited to a capital
reserve of the Company (see Note 17) and are available for use in accordance
with the Companies Law.
17 Reserves
Share premium and retained earnings represent balances conventionally
attributed to those descriptions. The transaction costs relating to the issue
of shares was deducted from share premium.
Capital redemption reserve includes amounts in relation to deferred shared
capital.
The Group having no regulatory capital or similar requirements, its primary
capital management focus is on maximising earnings per share and therefore
shareholder return.
The non-controlling interests reserves arises out of amounts due to holders of
the B shares in Acceler8 Ventures Subco Limited.
The Directors have proposed that there will be no final dividend in respect of
2023 (2022: £Nil).
18 Share Incentive Plan
On 14 July 2021, the Group created a Subco Incentive Scheme within its wholly
owned subsidiary Acceler8 Ventures Subco Limited ("Subco"). Under the terms of
the Subco Incentive Scheme, scheme participants are only rewarded if a
predetermined level of shareholder value is created over a three to five year
period or upon a change of control of the Company or Subco (whichever occurs
first), calculated on a formula basis by reference to the growth in market
capitalisation of the Company, following adjustments for the issue of any new
Ordinary shares and taking into account dividends and capital returns
("Shareholder Value"), realised by the exercise by the beneficiaries of a put
option in respect of their shares in Subco and satisfied either in cash or by
the issue of new ordinary shares at the election of the Company.
Under these arrangements in place, participants are entitled to up to 15 per
cent. of the Shareholder Value created, subject to such Shareholder Value
having increased by at least 12.5 per cent. per annum compounded over a period
of between three and five years from admission or following a change of
control of the Company or Subco.
19 Share-based payments
The Subco Incentive Scheme detailed in Note 18 is an equity-settled share
option plan which allows employees and advisors of the Group to sell their B
shares to the company in exchange for a cash payment or for shares in the
Company (at the Company's election) if certain conditions are met.
These conditions include good and bad leaver provisions and that growth in
Shareholder Value of 12.5 percent compound per annum is delivered over a
three to five year period for the scheme to vest. This second condition is
therefore a market condition which has been taken into account in the
measurement at grant date of the fair value of the options.
The weighted average exercise price of the outstanding B share options is
£Nil which have a weighted average contractual life of 2 years 9 months.
29,000 B share options were issued in the nine-month period to 31 December
2021, all of which were outstanding at the current year end. No B share
options were exercised in the current or prior period. No B share options have
expired during the current or prior period.
The Group recognised £313 (2022: £313) of expenditure in the statement of
total comprehensive income in relation to equity-settled share-based payments
in the year.
The fair value of options granted is determined by applying a binominal model.
The expense is apportioned over the vesting period of the option and is based
on the number which are expected to vest and the fair value of these options
at the date of grant.
The inputs into the binomial model in respect of options granted in 2021 are
as follows:
Opening share price £1
Expected volatility of share price 16.67%
Expected life of options 5 years
Risk-free rate 0.71%
Target increase in share price per annum 12.5%
Fair value of options 5.397p
Expected volatility was estimated by reference to the average 5-year
volatility of the FTSE SmallCap Index.
The target increase in Shareholder Value is laid out in the Articles of
Association of the Subco and represents the compounded target annual increase
in market capitalisation (adjusted for capital raises and dividends) that
needs to be met between the third and fifth anniversary of the Group's
admission onto the Main Market of the London Stock Exchange in order for the
scheme to vest.
The Group did not enter into any share-based payment transactions with parties
other than employees and advisors during the current or prior period.
20 Related party transactions
Transactions with key management personnel
Key management personnel comprise the Directors and executive officers. The
remuneration of the individual Directors is disclosed in the Report of the
Directors.
An amount of £99,980 recognised within the operating loss for the year
relates to a payment received by the Group under a cost indemnity arrangement
(the "Cost Indemnity") in place with a counterparty, over which a director of
the Group has significant influence due to common directorships. Pursuant to
the Cost Indemnity, the counterparty agreed to repay certain transaction
expenses incurred by the Group in the event that an acquisition of the
counterparty by the Group was not successfully concluded. This has resulted in
an overall credit within the "professional services" category of
administrative expenses in the year.
Other transactions - Group
On 14 May 2021, the Group entered into an arm's length strategic advisory
agreement with Tessera (a company which is a shareholder in the Company)
pursuant to which Tessera has agreed to provide strategic and general
corporate advice, and acquisition and capital raising transaction support
services to the Group.
Tessera will be paid a success fee on completion on the first acquisition, at
an amount to be agreed between Tessera and the Group. Following completion of
the first acquisition, Tessera will provide services as requested by the Group
and will charge a fixed daily rate or monthly retainer fee depending on the
volume of such services. As at 31 December 2023, £Nil (2022: £1,011) was
owed to Tessera by the Group.
21 Post balance sheet events
There are no events subsequent to the reporting date which would have a
material impact on the financial statements.
22 Contingent liabilities
There are no contingent liabilities at the reporting date which would have a
material impact on the financial statements.
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. END FR MZGZDZFFGDZZRecent news on Acceler8 Ventures
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