Vela Technologies - Quarterly Investment Update
28/11/2024 12:19
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RNS Number : 0620O Vela Technologies PLC 28 November 2024
28 November 2024
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
report an investment update for the quarter ended 30 September 2024.
Key numbers as at 30 September 2024
· The value of Vela's total assets (including cash) increased by
£251,000 during the quarter to £3,055,000 from £2,804,000 (quarter to 30
June 2024 - a decrease of £2,737,000).
· The fair value of the investment portfolio (excluding cash) at 30
September 2024 was £2,952,000 (30 June 2024 - £2,747,000).
· During the quarter, a profit of £28,000 was realised on sales
of investments and there was a net unrealised gain of £20,000 on the
remaining listed investments.
· During the quarter Vela issued shares to Hamak Gold Limited
in return for a £300,000 convertible loan note.
· Vela's cash balance stood at £103,000 (30 June 2024 -
£57,000).
Comment
James Normand, Executive Director, commented: "The markets stubbornly fail to
reflect the excellent results posted by certain of Vela's principal UK listed
investee companies. Vela's Board has concluded that the Company can no longer
simply wait for the long-expected upturn in markets. It is therefore actively
taking opportunities to realise a proportion of its existing investment
portfolio, where it can do so without crystallising material losses, with the
intention of recycling the proceeds into investment opportunities that offer
the prospect of more favourable returns."
Changes in the investment portfolio during the quarter
The following table sets out the changes in the investment portfolio during
the quarter ended 30 September 2024:
30 June 2024 at Quarter to 30 September 2024 30 September 2024
fair value
(Sales) and purchases Realised profit on sales Unrealised profit (loss) No. of % of equity Fair value
shares
Shares
Listed in the UK
On the main market
R8 Capital Investments plc 14,000 - - - 620,581 < 1 14,000
(formerly Mode
Global Holdings plc)
On AIM
Northcoders Group plc 740,000 - - (45,000) 347,499 4.3 695,000
EnSilica plc 290,000 (22,000) 4,000 74,000 616,707 < 1 342,000
Skillcast Group plc 244,000 (19,000) 7,000 43,000 575,676 < 1 268,000
Finseta plc 150,000 - - - 400,000 < 1 150,000
Tribe Technology PLC 128,000 - - 11,000 3,125,000 1.3 139,000
Ethernity Networks Ltd 2,000 - - (1,000) 350,000 < 1 1,000
MTI Wireless Edge Ltd 74,000 (74,000) 17,000 - - - -
On AQSE
TruSpine Technologies plc 72,000 - - (21,000) 6,000,000 3.9 51,000
Igraine PLC 66,000 - - (6,000) 23,928,080 27.7 60,000
Global Connectivity plc 15,000 - - - 1,200,000 < 1 15,000
1,795,000 (115,000) 28,000 55,000 1,735,000
Listed overseas
NASDAQ
Conduit Pharmaceuticals Inc 124,000 - - (35,000) 1,005,760 1.0 89,000
Unlisted
Community Social 427,000 - - - 71,429 < 1 427,000
Investment Limited
(formerly WeShop Limited)
Aeristech Limited 401,000 - - - 145,833 1.0 401,000
828,000 - - - 828,000
Convertible loan stock
Hamak Gold Limited 300,000 - - - - 300,000
Total investments 2,747,000 185,000 28,000 20,000 2,952,000
Cash 57,000 103,000
Total assets 2,804,000 3,055,000
Net assets per share (pence) 0.0169 0.0161
The figures contained within this quarterly investment update 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 2024, unless
there has been a transaction since that date which suggests a materially
different valuation.
Key developments in principal investee companies since the last report (30
August 2024)
Northcoders Group plc ("Northcoders")
Northcoders published its half-year results (to 30 June 2024) which showed a
26% increase in revenue, a gross margin improvement from 62% to 67%, a
ten-fold increase in underlying adjusted EBITDA (to £0.4 million) and a
strong balance sheet with cash of £1.3 million. Northcoders' Board is
confident in the company's ability to deliver full year revenue and profits in
line with market expectations. In November Northcoders announced that its
consultancy brand, 'Counter', had been accepted onto the UK government's
public sector digital marketplace which opens up for the company new
opportunities in the public sector.
EnSilica Plc ("EnSilica")
EnSilica has made a number of announcements of valuable contracts that it has
secured in the period. In November EnSilica announced its final results (for
the year ended 31 May 2024), reporting 23% growth in revenue and an increase
in EBITDA of £0.1 million to £1.7 million. Cash balances increased to £5.2
million following successful completion of an equity fundraising. In November
EnSilica also announced a new enlarged and less costly debt facility of up to
£9 million.
Skillcast Group PLC ("Skillcast")
Skillcast published its half-year results (to 30 June 2024) which showed a 27%
growth in annualised recurring revenue, a £0.8 million improvement in EBITDA
and continued growth in cash balances (to £8.3 million).
Conduit Pharmaceuticals Inc. ("Conduit")
There have been no significant developments and no interim reports from
Conduit on the investigations into improper share dealing that it instigated
and announced in August 2024. Conduit continues to trade and has recently
announced the appointment to the Board of Simon Fry, an experienced investment
banking executive.
Community Social Investments Limited ("CSIL")
The ability for Vela to realise its interest in CSIL is dependent upon the
sale or listing of WeCap plc ("WeCap"). In November 2024, WeCap announced
that it had cleared an important obstacle to its listing process. The
announcement did not suggest a timetable to listing.
Aeristech Limited ("Aeristech")
Aeristech reported to shareholders in October that it had satisfied conditions
set by a prospective major funder and/or buyer to allow it to conduct due
diligence on the company. This is currently in train. The Vela board
understands that Aeristech's business continues to grow in revenue and in
profitability.
Other activities
· Since the publication of the last quarterly update in August 2024,
the Board of Vela has spoken to or met with representatives of the following
investee companies:
o Northcoders Group plc
o TruSpine Technologies plc
o Aeristech Limited
o Conduit Pharmaceuticals Inc
o Igraine PLC
o Hamak Gold Limited
· Vela made one investment in the quarter (in Hamak Gold Limited
("Hamak")) and, since the quarter-end, a further investment in an existing
investee company (Igraine PLC). These are detailed in announcements made by
the Company at the time.
· Under the terms of the investment in the convertible loan note in
Hamak, Hamak undertook to redeem £75,000 of the CLN at a minimum rate of
£10,000 per month from 31 July 2024 onwards. On 21 October 2024 Vela
announced that it had yet to receive any such payments and was in discussions
with the Hamak board in order to reach a mutually beneficial longer-term
solution. These discussions continue.
· Vela's management team has had, and continues to have, discussions
with a number of prospective investee companies and any investments that arise
from these will be announced at the appropriate time. There can be no
guarantee that any of these discussions will lead to any investments being
made by Vela.
For further information, please contact:
Vela Technologies plc Tel: +44 (0) 7950 389469
Brent Fitzpatrick, Non-Executive Chairman
James Normand, Executive Director
Allenby Capital Limited (Nominated Adviser) Tel: +44 (0) 20 3328 5656
Nick Athanas / Piers Shimwell
Peterhouse Capital Limited (Broker) Tel: +44 (0) 20 7469 0930
Novus Communications (PR and IR Adviser) Tel: +44 (0) 20 7448 9839
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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