Vela Technologies - Quarterly Investment Update
27/01/2025 07:00
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RNS Number : 7624U Vela Technologies PLC 27 January 2025
27 January 2025
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, today announces an
investment update for the quarter ended 31 December 2024.
Key numbers as at 31 December 2024
· The value of Vela's total assets (including cash) decreased
by £385,000 during the quarter to £2,670,000 from £3,055,000 (quarter to 30
September 2024 - an increase of £251,000).
· The fair value of the investment portfolio (excluding cash)
at 31 December 2024 was £2,623,000 (30 September 2024 - £2,952,000).
· During the quarter, a loss of £10,000 was realised on sales
of investments and there was a net unrealised loss of £276,000 on the
remaining listed investments.
· During the quarter, Vela subscribed £50,000 for a
convertible loan note in Igraine PLC (the first tranche of the minimum
£200,000 commitment announced on 21 October 2024).
· Vela's cash balance stood at £47,000 (30 September 2024 -
£103,000).
Comment
James Normand, Executive Director, commented: "Any evidence of a more
favourable future for the small-cap public markets remains hidden. Vela's
Board is pursuing the course of action referenced in the last quarterly
report; that is to take 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 31 December 2024:
Holdings at Quarter to 31 December 2024 Holdings at 31 December 2024
30 September 2024
Fair value (£) Sales Acquisitions Unrealised profit (loss) No. of % of equity Fair value (£)
shares
Proceeds Profit (loss)
Shares
Listed in the UK
On the main market
R8 Capital Investments plc 14,000 - - - - 620,581 < 1 14,000
On AIM
Northcoders Group plc 695,000 - - - (61,000) 347,499 4.3 634,000
EnSilica plc 342,000 21,000 (6,000) - (68,000) 566,707 < 1 247,000
Skillcast Group plc 268,000 - - - (26,000) 575,676 < 1 242,000
Finseta plc 150,000 72,000 (4,000) - (5,000) 200,000 < 1 69,000
Tribe Technology PLC 139,000 - - - (116,000) 3,125,000 1.3 23,000
Ethernity Networks Ltd 1,000 - - - (1,000) 350,000 < 1 -
On AQSE
TruSpine Technologies plc 51,000 - - - 12,000 6,000,000 3.9 63,000
Igraine PLC 60,000 - - - 30,000 23,928,080 27.7 90,000
Global Connectivity plc 15,000 - - - (8,000) 1,200,000 < 1 7,000
1,735,000 93,000 (10,000) - (243,000) 1,389,000
Listed overseas
On NASDAQ
Conduit Pharmaceuticals Inc 89,000 - - - (33,000) 1,005,760 1.0 56,000
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
Igraine PLC 50,000 - - - 50,000
Hamak Gold Limited 300,000 - - - - - - 300,000
300,000 50,000 350,000
Total investments 2,952,000 93,000 (10,000) 50,000 (276,000) 2,623,000
Cash 103,000 47,000
Total assets 3,055,000 2,670,000
Net assets per share (pence) 0.0161 0.0141
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
(announced by Vela on 28 November 2024)
EnSilica Plc ("EnSilica")
At its AGM on 28 November 2024 EnSilica's chairman reported that the company
continued to generate strong contract momentum and that he expected EnSilica
to continue to trade in line with consensus market expectations for the year
ending 31 May 2025. On 6 December 2024 EnSilica announced the signing of a
contract that it expected to generate income of US$30 million over 10 years.
Skillcast Group plc ("Skillcast")
In a trading update announced on 23 January 2025, Skillcast reported unaudited
figures for 2024 which showed an 18% increase in revenue (to £13.3 million),
EBITDA of c. £0.5 million and a net cash position at the year-end of £9.1
million. The company states that it expects continued growth in annual
recurring revenue and EBITDA margins in 2025.
Tribe Technology PLC ("Tribe")
On 19 December 2024 Tribe announced that, in order to secure the funding
required to finance the working capital consequences of additional software
development and testing, it would be proposing to shareholders the
cancellation of the company's AIM listing. Later in December, Tribe announced
that Charlie King, its founder and CEO, had stepped down from the Board with
immediate effect.
Tribe's shares were suspended from trading on AIM on 2 January 2025 because it
had not published its financial statements for the year ended 30 June 2024
within six months of the year-end, as required by the AIM Rules; and on 21
January 2025 Tribe published a notice of a meeting of shareholders to approve
the proposed delisting. This meeting is to be held on 12 February.
Community Social Investment Limited ("CSIL")
Vela's ability to realise its interest in CSIL is dependent upon the sale or
listing of WeShop Holdings Limited ("WeShop"). On 24 December 2024, WeCap plc,
WeShop's parent company, announced that WeShop had submitted a draft
Registration Statement to the SEC relating to the proposed direct listing of
its ordinary shares. This announcement made a specific reference to the
presumed intention of CSIL to distribute in specie its only asset, being
shares in WeShop. The announcement did not suggest a timetable to listing.
Aeristech Limited ("Aeristech")
There has been no news from Aeristech since it reported to shareholders in
October 2024 that it had satisfied conditions set by a prospective major
funder and/or buyer to allow it to conduct due diligence on the company. The
filing of Aeristech's financial statements for the year ended 31 March 2024 is
overdue, as is the filing of its annual confirmation statement.
Igraine PLC ("Igraine")
On 13 December Igraine announced that it had made a maiden investment in
battery storage business, GEM Energia Limited, following the signing of the
exclusive investment agreement that it announced on 21 October 2024. This and
subsequent investments in accordance with this agreement are being financed
through a convertible loan note drawdown arrangement with Vela. A further
£50,000 drawdown on this arrangement has been made since the end of the
quarter.
Other activities
· On 18 December 2024 Vela published its interim report for the half
year ended 30 September 2024. This report reflected the results outlined in
the quarterly updates published in August and November 2024.
· Since the publication of the last quarterly update on 28 November
2024, the Board of Vela has spoken to or met with representatives of the
following investee companies:
o Aeristech Limited
o Finseta plc
o Igraine PLC
o Hamak Gold Limited
· Under the terms of the investment in the convertible loan note
("CLN") 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. Vela has made a number
of announcements since then explaining that it had yet to receive any such
payments. Vela is hopeful that it will be in a position shortly to conclude
discussions with the Hamak board concerning a mutually beneficial longer-term
solution.
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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