Forward Partners Grp - Full Year Trading Update
27/02/2023 07:00
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RNS Number : 0552R Forward Partners Group PLC 27 February 2023
Forward Partners Group plc
("Forward Partners" or "the Group")
Full Year Trading Update
Forward Partners Group plc (LSE: FWD), the London-based investment firm
specialising in supporting high-growth, early-stage technology businesses,
provides an update on trading for the year to 31 December 2022 ahead of its
full-year results.
Forward's portfolio performed well in 2022, but as previously communicated and
in common with other VC funds, it experienced a significant decline in NAV.
The decline was largely due to valuation headwinds due to public market and
macroeconomic pressures.
Highlights
● Portfolio Fair Value (unaudited) slightly ahead of expectations at not less
than £79.0m (31 December 2021 £117.1m). This represents a year-on-year
decrease of 39.9% exclusive of new and follow-on investments.
● Portfolio demonstrates momentum. Companies continue to raise, albeit at a
slower rate than 2021. Good news in the year included Koyo expanding their
credit facility to £100m and completing £5m equity raise; Outthink
completing a seed-stage $10m raise; Makers completing a £7m raise; Spoke
raising £5m from over 1,500 investors in the most successful Seedrs campaign
of 2022 and Gravity Sketch raising a $33m Series A led by Accel.
● Strong portfolio revenue growth revenue. Top 15* holdings generated weighted
average revenue growth of 77% for the full year, ahead of 40-60% growth
expectations outlined at the half-year.
● Portfolio companies have strong balance sheets. 84% of the Top 15* portfolio
investments have 18 months or more cash runway, are anticipated to be on the
path to break-even without the need for further fundraising or are
profitable.**
● Cash position of £17.2m which enables the Group to continue to support its
portfolio and maintain its investment rate of at least four new companies per
year for the foreseeable future.
● NAV per share is expected to be not less than 71.0 pence per share. Cash per
share is 12.8 pence.
Nic Brisbourne, CEO at Forward Partners, commented: "2022 has been a year of
challenge and change for tech firms and their investors across the globe and
the companies within our portfolio faced significant headwinds. Despite the
pressure on valuations many of them still grew rapidly. The recovery remains
fragile, but we are encouraged by the signs of improvement in the market, with
investors becoming more active and increased optimism amongst our CEOs. We
remain confident in our portfolio and the potential for value creation within
the UK's technology sector."
NOTES
* Top 15 portfolio investments denote the most valuable companies held in
Forward's Venture portfolio by Fair Value. For ease of reference, we refer to
the Top 15 on 31 December 2021. At that time, the Top 15 comprised Ably,
Gravity Sketch, Makers, Spoke, Patch, Snaptrip, Robin AI, Apexx, Juno,
KoruKids, Cherryz, Koyo Loans, Lexoo and Counting Up. Cazoo is no longer
counted, following the realisation of Forward's holding in 2022. The Top 15
will be updated at the publication of the full-year results.
** Management estimates as of 31 January 2023. These are based on portfolio
company forecasts and assume no further material deterioration in the economy.
Revenue growth average weighted by the Fair Value of portfolio companies at 31
December 2021.
ENDS
Enquiries
Forward Partners Group plc via H/Advisors Maitland
Nic Brisbourne, Chief Executive Officer
Liberum Capital Limited Tel: +44 20 3100 2222
(Nominated Adviser and Broker)
Chris Clarke
Lauren Kettle
Cara Murphy
H/Advisors Maitland forwardpartners@h-advisors.global
(Financial PR) Tel: +44 (0) 207 379 5151
Sam Turvey
Alistair de Kare-Silver
About Forward Partners
Founded in 2013, Forward Partners is an established and respected London-based
venture capital firm, specialising in supporting high growth, early-stage
technology businesses in the UK.
The Group brings together venture capital provider Forward Ventures and highly
specialised growth support from Forward Studio. This model supports founders
to build stronger businesses faster to provide better outcomes for companies
and investors alike.
The Group makes equity investments in early-stage, high-growth UK companies,
and from inception to its admission to London's AIM market in July 2021 had
made over 60 unique investments and built a portfolio with an Initial
Portfolio NAV in excess of £100m. It holds a nine-year track record of making
venture capital investments, and targets underlying NAV growth of 20% per
annum over the cycle.
The management team brings together highly experienced venture capitalists,
entrepreneurs, and expert consultants. Since 2015, Forward Partners has been
backed by BlackRock, one of the largest institutional investors in the world.
The Group receives over 4,000 start-up funding applications every year.
For more information, visit https://forwardpartners.com.
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