Forward Partners Grp - Interim Results
28/09/2023 07:00
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RNS Number : 9189N Forward Partners Group PLC 28 September 2023
Forward Partners Group plc
("Forward Partners" or "the Company")
INTERIM RESULTS
Forward Partners Group plc (LSE: FWD) the London-based investment firm
specialising in supporting high-growth, early-stage technology businesses,
announces its interim results for the period to 30 June 2023.
Financial highlights
● Portfolio Fair Value of £76.9m (31 December 2022: £80.0m) inclusive of new
investments.
● Fair value decline of 5.4% exclusive of realisations and new investments.
● NAV per share of 67.0p (31 December 2022: 71.8p).
● Cash at 30 June 2023 of £14.1m (31 December 2022: £17.2m).
● Net Operating Expenses reduced to £1.8m for H1, down from £4.1m in the same
period last year.
Portfolio highlights
● Forward's Top 15(1) companies by Fair Value delivered a 12-month weighted
average revenue growth of 133.1% in the first half(2).
● 71.2% by Fair Value of the Top 15 portfolio companies have 18 months or more
cash runway, are on the path to break even without the need for further
fund-raising or are profitable(3).
● Five investments made into five businesses:
○ Two new investments totalling £0.7m into motor finance platform Vision
Funding and a 'federated learning' AI platform (to be announced following
final close of their round).
○ Three follow-on investments totalling £0.5m.
● £0.1m realisations in the period representing deferred consideration from the
Somo exit completed in 2022.
Post-period review
● Post-period, a further new deal of £0.5m into a Web3-powered alternative
asset platform and a £0.1m follow-on round into portfolio company Uplearn
completed.
● Strong deal flow, particularly from early-stage companies leveraging
generative AI. 1,657 deals assessed in the first half with 196 taken through
to meeting and in-depth assessment stage.
● Portfolio embraces generative AI technology. 41.6% of companies by Fair Value
are classified as AI.
Outlook
Underlying portfolio performance was once again strong in H1 2023 and we
remain confident in the exit potential of our investments. However, the
venture capital and exit markets remain subdued and we are seeing fewer
realisations than anticipated at the time of our IPO. At our current rate of
investment and expenses the Group has sufficient cash runway into late 2024.
In response, the Board is considering a range of options to maximise the
considerable shareholder value in the company.
Nic Brisbourne, CEO at Forward Partners, commented:
"While the environment in which we operate remains tough, there are signs that
things are beginning to stabilise. We are encouraged by the substantially
smaller reduction in Portfolio Fair Value in the half versus the full year,
which itself was an improvement on H1 2022.
Our portfolio remains strong, with many of our investee companies continuing
to grow revenues at an impressive rate while maintaining healthy financial
positions. The potential within our portfolio is significant and we remain
confident in our ability to deliver attractive returns when the window for
exits reopens.
In the near-term, while Forward has sufficient funding to see it through the
majority of 2024 without compromising its approach, accurately pinpointing
when a meaningful market recovery will take place remains difficult. Hence,
the Board is considering a range of options to ensure Forward maximises
returns for investors."
NOTES:
(1) Top 15 portfolio investments denote the most valuable companies held in
Forward's portfolio by Fair Value at a point in time. Except where otherwise
noted in this release, we refer to the Top 15 cohort as at 31 December 2022 to
provide a meaningful basis for comparison. At that time, the Top 15 comprised
Gravity Sketch, Robin AI, Spoke, Makers, OutThink, Ably, Apexx, Breedr, Juno,
KoruKids, Snaptrip, Plyable, Silico, Patch (Arena) and Koyo. Following the
wind-down of Koyo in the first half, it will be omitted from portfolio
calculations. The Top 15 is updated in Forward's final year results.
(2) Revenue growth average weighted by the 30 June 2023 Fair Value of the Top
15 portfolio companies at 31 December 2022.
(3) Management estimates as of 21 September 2023. These are based on portfolio
company forecasts and assume no further material deterioration in the economy
or public technology stocks that the Company utilises in comparable
valuations. Where Management expects funding rounds to close soon and that
completion is extremely likely to occur then the runway analysis is made on
the basis that the round is closed.
Enquiries
Forward Partners Group plc Via Alma PR
Nic Brisbourne, CEO
Lloyd Smith, CFO and Company Secretary
Liberum Capital Limited Tel: +44 (0)20 3100 2222
(Nominated Adviser and Broker)
Chris Clarke
Lauren Kettle
Cara Murphy
Alma PR Email: forward@almapr.co.uk
(Financial PR Adviser) Tel: +44 (0)20 3405 0205
David Ison
Andy Bryant
Will Ellis Hancock
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. It holds a ten-year track record of making
venture capital investments and receives over 4,000 start-up funding
applications every year.
The Group brings together venture capital with highly specialised growth
support from Forward's Studio. This model supports founders to build stronger
businesses faster to provide better outcomes for companies and investors
alike.
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.
For more information and insights into Forward's portfolio, subscribe to
Forward's email newsletter 'Forward Thinking'
(https://www.forwardpartners.com/forward-thinking-investor-newsletter) or
visit www.forwardpartners.com (http://www.forwardpartners.com/) .
STRATEGIC REPORT
Summary
While the market remains subdued, there are encouraging signs of
stabilisation. The reduction in Portfolio Fair Value this half was
substantially smaller than at the year end, which was in turn significantly
smaller than the fall we saw in H1 2022. As previously flagged, the key
contributors to the decline were our decision to write off the Koyo Loans
investment and continued weakness in the venture capital and exit markets.
The first half was another period in which we continued to make new
investments, with generally strong performance across many of our portfolio
companies and continued tailwinds for the startup ecosystem. Early-stage
venture capital remains an attractive market to be in and Forward has a strong
portfolio with the capacity to generate significant realisations over time,
particularly as the amount of dry powder in the market and new funds being
raised augurs well for a rapid recovery once sentiment turns.
With the market for exits remaining challenging, we are not seeing the flow of
realisations that we expected would improve our cash position. With our
current rates of investment and expenses the Group is funded to late 2024.
In response, the Board is considering a range of options to maximise the
considerable shareholder value in the company.
Financial performance
The Fair Value of Forward's venture portfolio at 30 June 2023 was £76.9m (31
December 2022: £80.0m), a decline of 5.4% over the period, exclusive of new
investments.
Our cash balance reduced by £3.0m over the first half, £1.1m due to
investments and £1.9m due to expenses. Post period end we have made two
investments totalling £0.6m.
Portfolio update
Our Top 15 portfolio investments by Fair Value continue to grow, delivering a
12-month weighted average revenue growth of 133.1% in H1 2023.
These investments have strong balance sheets too. 71.2% by Fair Value of the
Top 15 portfolio companies have 18 months or more cash runway, are on the path
to breakeven without the need for further fund-raising or are profitable.
During the period, we completed two further investments. We deployed £200k
via a Convertible Loan Note (CLN) into Vision Funding (visionfunding.co.uk), a
company building a platform that helps car dealers to connect buyers with the
right motor finance for their needs, and a further £0.5m investment as part
of its £2.4m seed round into an AI-driven predictive analytics platform for
industrial machinery. Post-period, Forward invested £0.5m as part of a £2.5m
round into a Web3-powered alternative asset investing platform.
Market context
At the beginning of the period we observed a positive shift in venture capital
investor sentiment. However, since the collapse of Silicon Valley Bank in
March the mood has been up and down without significantly improving. Overall
UK VC investment levels are down 58% on a year ago (according to Pitchbook).
While there is significant variability between sectors, interest in companies
exploiting generative AI, a key focus for Forward, has remained very strong.
Pleasingly, several London-based VC firms have announced new funds in recent
months and there is still a lot of dry powder waiting to be invested.
Moreover, individual partners are keen to get back to making new investments
and building their track records. This sentiment has persisted for a while,
suggesting that the VC market is waiting for a catalyst to emerge before
increasing investment levels. Possible catalysts include an opening of the IPO
window and clear signs that interest rates have peaked.
Forward's portfolio positioned to capitalise on Generative AI advancements
Forward's portfolio includes 17 businesses now classified as AI*. At 30 June
2023, the Company had invested £31.9m in these holdings, representing 41.6%
of the portfolio's Fair Value, totalling £76.9m.
Last year, we spoke of our enthusiasm for AI. This year, we've witnessed its
swift evolution. The UK has gained prominence within the space: not only is it
a leading global startup hub, it is the third largest global ecosystem for
AI-oriented startups. Leading companies including OpenAI, Google and
StabilityAI now have major operations here. We have also seen generative AI
become a staple for tech companies. Our companies are embracing it in both
products and operations, and we're seeing a wave of innovative startups using
it to craft remarkable products and experiences.
The market is evolving rapidly, moving from hype to pragmatic enthusiasm. We
are already seeing companies that rode the hype wave without building
competitive advantage are starting to falter as platform companies like OpenAI
are moving up the value chain to capture revenue opportunities. However, the
businesses with strong defensive moats are continuing to thrive.
As shared in the Company's July Portfolio update, advances in generative AI
are opening opportunities for whole new product categories and enabling
early-stage companies to develop products faster and more efficiently. Our
deal flow has been transformed and we are encouraging fast adoption of
generative AI within our portfolio.
Adding value
Through this period, we have remained dedicated to empowering UK-based
founders and early-stage companies. Our studio team has been instrumental in
supporting our portfolio companies. The team delivered a total of 37 projects
across almost 30% of our portfolio by Fair Value, including recruiting senior
hires, salary benchmarking, and coaching. As always, our Investment team
worked closely with our founders and their boards to guide and support their
growth strategy.
We have shared regular business insights with almost 10,000 entrepreneurs each
fortnight via our email newsletter 'The Forward Fortnightly"; hosted a range
of public and private events including "Forward Partners Live" and nurtured a
high-potential cohort of founders through our 'Funding Lab' accelerator
programme in July.
Outlook
While we navigate short-term challenges, venture capital remains an attractive
asset class - particularly at the early stage where company growth and value
creation are fastest. Our confidence in our investments remains high, and the
portfolio has once again enjoyed rapid growth. We expect to see further
stabilisation in the market, and as the market recovers, the dry powder from
new and existing later-stage funds will be deployed into companies like those
within our portfolio. We're mindful that this may take time and will likely
slow down exits and realisations. Though Forward holds cash reserves to see
the business through at least the next 12 months, our priority now is
exploring options to improve our position.
Nic Brisbourne
Chief Executive Officer
27 September 2023
* Previously the Company categorised its portfolio as 'Applied AI',
'Marketplaces', 'eCommerce' and 'Other' according to their primary line of
business. However, many of the companies classified as 'Marketplaces',
'eCommerce' and 'Other' make extensive use of AI in their products and after
feedback from investors, reporting will now simply specify the percentage of
the portfolio that offers AI exposure, defined as businesses that are either
applying AI or have a generative AI product in market or near launch. This 'AI
exposure' metric covers 41.6% of the portfolio as of today. The increase from
the 40% of the portfolio categorised as 'Applied AI' reported in Forward's
2022 results is partly due to the inclusion of companies previously held in
other categories and partly because AI companies are growing more rapidly than
other companies in the portfolio.
PORTFOLIO REVIEW
At 30 June 2023, Forward Partners' portfolio consisted of 43 active companies.
The Fair Value of Forward's venture portfolio (the gross value of the
Group's investment holding before deductions for carried interest) was £76.9m
(vs 31 December 2022: £80.0m), a 5.4% decline exclusive of realisations and
new investments.
Additional movements in the period result from £0.1m in portfolio
realisations (reducing the size of the portfolio) and new investments of
£1.2m (increasing the size of the portfolio). The portfolio companies by
valuation' table provides further detail on Fair Value movements within the
portfolio.
Portfolio
Our portfolio has been constructed to maximise risk-adjusted returns by
balancing upside potential, chance of failure, likely holding period and
concentration risk.
Forward has historically invested in three key operating models: applied AI,
marketplaces and eCommerce (recently replacing the latter with Web3). At 30
June 2023, these represented 41.6%, 10.2% and 24.7% of the portfolio
respectively. The top fifteen core holdings as at 31 December represented
71.9% of portfolio Fair Value, with the largest holding, Gravity Sketch
representing 12.8%.
At 30 June 2023, Forward Partners' portfolio Top 15 holdings by Fair Value
were Gravity Sketch, Robin, Spoke, OutThink, Ably, Makers, Apexx, Juno,
Snaptrip, Breedr, KoruKids, Counting Up, Up Learn, Virtuoso and Plyable.
Please note that we refer to the Top 15 cohort at 31 December 2022 to provide
a meaningful basis for comparison for calculation unless otherwise notes. At
that time, the Top 15 comprised Gravity Sketch, Robin AI, Spoke, Makers,
OutThink, Ably, Apexx, Breedr, Juno, KoruKids, Snaptrip, Plyable, Silico,
Patch (Arena) and Koyo. Following the wind-down of Koyo in the first half, it
will be omitted from portfolio calculations. The Top 15 is updated in
Forward's final year results.
Investments
In the period from 1 January 2023 to 30 June 2023, Forward Partners invested
£1.2m of which £0.7m was invested in two new portfolio companies and £0.5m
invested into three existing portfolio companies through follow-on rounds.
New investments
-- Current period to 30 June 2023
● Vision Funding (https://www.visionfunding.co.uk
(https://www.visionfunding.co.uk) ). Forward Partners invested £200k via a
Convertible Loan Note (CLN) in Vision's pre-seed round. The company is
building a platform that helps car dealers to connect buyers with the right
motor finance for their needs.
● AI platform - to be announced. Forward Partners invested £0.5m into an AI
platform as part of its £2.4m seed round, alongside other investors.
-- Post period end
● Alternative investment platform - to be announced. Forward Partners invested
£0.5m into a Web3-enabled investment platform as part of its £2.5m seed
round, alongside MiddleGame Ventures and others investors.
Follow-on investments
-- Current period to 30 June 2023
● Three follow-on investments into portfolio company PocDoc (https://pocdoc.co
(https://pocdoc.co) ), Clustermarket (https://clustermarket.com
(https://clustermarket.com) ) and Fy (https://www.iamfy.co
(https://www.iamfy.co) ) totalling £0.5m.
-- Post period end
● 1 follow-on investment into portfolio company Uplearn (https://uplearn.co.uk
(https://uplearn.co.uk) ) totalling £0.1m.
Realisations
● £0.1m realisations in the period representing deferred consideration from the
Somo exit completed in 2022.
Top 15 Portfolio Companies by valuation
Figures shown below, including total investment, Portfolio Fair Value and
illustrative return, are correct as at 30 June 2023. The Top 15 investments at
31 December 2022 cover 71.9% of the portfolio by Fair Value.
Fair Value Invested Realised Delta Fair Value
31/12/22 30/06/23
£m £m £m £m £m
⥈ Gravity Sketch 7.6 0.0 0.0 2.2 9.8
⥈ Robin 6.2 0.0 0.0 2.0 8.2
⥈ Spoke 6.1 0.0 0.0 -0.3 5.8
⥈ OutThink 4.6 0.0 0.0 0.7 5.3
⥈ Ably 4.0 0.0 0.0 0.5 4.5
⥈ Makers 5.1 0.0 0.0 -1.4 3.7
⥈ Apexx 3.6 0.0 0.0 -0.2 3.4
⥈ Juno 3.5 0.0 0.0 -0.6 2.9
⥈ Snaptrip 2.6 0.0 0.0 0.0 2.6
⥈ Breedr 3.6 0.0 0.0 -1.3 2.3
⥈ KoruKids 3.2 0.0 0.0 -0.9 2.3
⥈ Plyable 2.3 0.0 0.0 -0.3 2.0
↠ Counting Up 1.1 0.0 0.0 1.1 2.2
↠ Up Learn 1.6 0.0 0.0 0.6 2.2
↠ SpotQA_Virtuoso 1.8 0.0 0.0 0.4 2.2
↞ Patch 1.9 0.0 0.0 -0.2 1.7
↞ Silico 2.2 0.0 0.0 -1.5 0.7
↞ Koyo Loans 2.3 0.0 0.0 -2.3 0.0
Remaining portfolio 16.7 1.2 -0.4 -2.4 15.1
Portfolio Value 80.0 1.2 -0.4 -3.9 76.9
⥈ Part of the Top 15 in December 2022 and June 2023
↠ New to the Top 15 as at June 2023
↞ No longer part of the Top 15 as at June 2023
PORTFOLIO UPDATE
Note: FD Category represents fully diluted interest shares categorised as
follows: Cat A: 0-5%, Cat B: 6-10%, Cat C: 11-15%, Cat D: 16-25%, Cat E:
>25%.
Gravity Sketch
Gravity Sketch was founded in 2014. Their vision: to revolutionise the way
physical products are designed, developed and brought to market. Today, the
company is a leading innovator in the digital design industry, offering
intuitive 3D design software for cross-disciplinary teams to create,
collaborate, and review in an entirely new way, addressing a market worth an
estimated $10bn in 2022. It holds a rating of 4.5/5 on G2.
Recent news
● In June 2023, Gravity Sketch was selected as one of the 10 UK recipients of
the Google for Startups Black Founders Fund 2023
(https://blog.google/around-the-globe/google-europe/black-founders-fund-uk-2023/)
.
● In the same month, the company released Gravity 6.0
(https://www.gravitysketch.com/blog/updates/gravity-sketch-6-0/) . This update
provides designers with new collaboration tools to communicate and improve
their creative ideas.
● In April 2022, Gravity Sketch announced the completion of a $33m funding
round. Forward participated with a further £0.7m in this Series A led by
Accel alongside Google Ventures.
Total invested: £1.9m | Fair Value: £9.8m | Fair Value / Investment: 5.1x
| FD Category C
Robin AI
Robin AI is a legal-tech company that combines software, generative AI,
machine learning and a team of world-class legal professionals, to deliver
solutions to radically improve the speed and reduce the cost of agreeing
simple contracts. Established in 2019 by Richard Robinson, the company was
inspired by Richard's personal experiences as a lawyer. It holds a rating of
4.5/5 on G2.
Recent news
● In July 2023, Robin AI launched their Copilot feature
(https://www.robinai.co.uk/post/copilot-your-legal-ai-assistant) , a
generative AI search tool that allows clients to extract information from
across their company's contracts.
● In June 2023, the company was selected for the "Ones to Watch" feature in this
year's edition of The Sunday Times 100
(https://www.thetimes.co.uk/article/uk-start-ups-to-watch-sunday-times-100-p8p2bstjp)
. This list celebrates Britain's fastest-growing private companies, with just
8 shortlisted.
● In February 2023, the company announced a $10.5 million round
(https://sifted.eu/articles/wise-monzo-founders-generative-ai-news/) led by
Plural, the VC co-founded by Taavet Hinrikus
(https://www.linkedin.com/in/taavethinrikus/) - co-founder and ex-Chairman of
Wise, with further participation from Forward, Episode 1 and angel investors
including Tom Blomfield (https://www.linkedin.com/in/tomblomfield) - ex CEO
and President of Monzo. Forward has been an investor since 2019.
Total invested: £1.7m | Fair Value: £8.2m | Fair Value / Investment: 4.9x
| FD Category D
Spoke
Spoke is a direct-to-consumer eCommerce company that provides better-fitting,
better-looking men's clothes. Established in 2013, the company has over
200,000 customers to date. It has been featured in GQ and Esquire and holds a
Trustpilot rating of 4.6/5.
Recent news
● In June 2022, Spoke completed a £5m crowdfunding round on Seedrs, deemed the
platform's largest campaign of the year.
● In May 2021, Spoke announced a media-for-equity deal with ITV. Since then, the
company has been advertising alongside major sporting events, news programmes,
films and top drama shows, including The Six Nations, ITV News, James Bond and
The Brit Awards.
Total invested: £2.5m | Fair Value: £5.8m | Fair Value / Investment: 2.3x
| FD Category C
OutThink
OutThink is the world's first cybersecurity human risk management platform.
Founded in 2019 by Flavius Plesu, the Company provides next-generation
security awareness training to large and complex organisations across the
world. It has been developed specifically to identify and measure human risk
and affect behaviour change. OutThink holds a rating of 5/5 on Gartner.
Recent news
● In May 2023, the company was named one of the top 20 finalists in the European
Deep Tech Scaleups category of the EIT Digital Competition. This recognition
highlights the company's innovation in the deep technology industry.
● In February 2023, OutThink was named in Sifted's "Cybersecurity Startups to
Watch" list.
● In October 2022, the company announced the completion of a $10m round, led by
AlbionVC. The company will use the funding to expand its leadership expertise
and accelerate international distribution as its solution continues to gain
market traction.
Total invested: £1.6m | Fair Value: £5.3m | Fair Value / Investment: 3.4x
| FD Category D
Ably
Ably is a realtime platform that powers live and collaborative experiences.
Established in 2016 by Matthew O'Riordan and Paddy Byers, the company is
trusted by brands like HubSpot, Toyota, and Webflow to power business-critical
chat, order delivery tracking and document collaboration across millions of
simultaneously connected devices around the world. Ably holds a rating of
4.7/5 on G2.
Recent news
● In July 2023, Ably was acknowledged in the G2 2023 Summer Report winning
awards for Best Support, High Performer, and Highest User Adoption.
● In June 2023, Ably joined the Datadog partner network, offering seamless
monitoring capabilities to Ably Enterprise customers.
● In February 2023, Ably launched a Next.js Starter Kit on Vercel Templates
Marketplace to help front-end developers get started, rapidly building Next.js
apps with real time features.
● In June 2021, Ably announced a successful raise of $70m led by Insight
Partners and Dawn Capital.
Total invested: £1.7m | Fair Value: £4.5m | Fair Value / Investment: 2.6x
| FD Category B
Makers
Makers is creating a new generation of tech talent by identifying
high-potential career switchers who possess no background in tech, training
them in software development, then placing them in industry-leading companies.
Makers has trained 3,000 people into junior software engineers and placed them
in over 300 businesses, including Google, Tesco, Starling Bank, and the BBC.
Makers hold a rating of 4.7/5 from customers on bootcamp review site SwitchUp.
Recent news
● In July 2023, Makers became a B Corporation, joining the worldwide movement
for a more inclusive, equitable, and sustainable economy. In the same month it
also partnered with Tech She Can to empower small businesses, social
enterprises, and charities through a new levy-sharing initiative. This new
initiative prioritises diversity and social impact by offering fully-funded
tech apprenticeships to upskill teams.
● In June 2023, the company reopened the Women in Software Awards for its fifth
year. The awards are dedicated to supporting and promoting women in
technology.
● In December 2022, the company announced the completion of a £7m round led by
BGF.
Total invested: £1.5m | Fair Value: £3.7m | Fair Value / Investment: 2.5x
| FD Category E
Apexx Global
Apexx's platform allows merchants to connect via a simple API to the world's
payment ecosystem, increasing conversion at lower cost and powering digital
payments. Established in 2015 by Rodney Bain, Peter Keenan and Toreson Lloyd,
the team has grown to 41 people working across three countries, serving
clients that include ASOS, Avon, Xe, eShopworld and Air Seychelles.
Recent news
● In March 2023, APEXX Global raised $25m to expand its presence in North
America and enhance its leading payment orchestration platform.
● Apexx now has over 120 integrated partners and operates across more than 70
countries.
Total invested: £2.3m | Fair Value: £3.4m | Fair Value / Investment: 1.5x
| FD Category B
Juno
Juno brings together legal expertise with software and AI to offer
conveyancing that's clear, convenient and reliable. Established in 2017 by
Etienne Pollard and Henry Hadlow, their vision is to make the legal side of
home buying simpler, clearer and faster - and for Juno to become the UK's
largest and most trusted property law firm. The founders saw an opportunity in
a fragmented, people-intensive legal and conveyancing sector. Their disruptive
solution takes a data-driven approach to drive better, faster, and more
cost-efficient services. It holds a Trustpilot rating of 4.9/5.
Recent news
● Juno launched the next iteration of its AI-enabled legal service to complete
property purchases, targeting 10x-faster-than-average completions.
● The company also launched a new buy-to-let remortgaging product, targeting a
5x speed-up versus the industry average.
● LendInvest, the UK's leading property finance platform, appointed Juno to
their buy-to-let legal panel.
Total invested: £2.4m | Fair Value: £2.9m | Fair Value / Investment: 1.2x
| FD Category D
Snaptrip
Snaptrip is a marketplace that helps people to discover the best last-minute
cottage holiday deals in the UK. Founded in 2014 by Dan Harrison and Matthew
Fox, Snaptrip has grown to offer over 60,000 professionally managed cottages
from big-name partners. They hold a rating of 4.4/5 on Trustpilot.
Recent news
● In March 2022, Snaptrip acquired Independent Cottages. This was the company's
second acquisition in 12 months following the acquisition of Hot Tub Hideaways
in summer 2021.
● Snaptrip now operates a family of brands, including Dog-Friendly Cottages,
Last Minute Cottages and Big Cottages, giving it access to several targeted
markets.
● The company was profitable last year and is expected to continue to be in the
short to medium term.
Total invested: £0.6m | Fair Value: £2.6m | Fair Value / Investment: 4.2x
| FD Category D
Breedr
Breedr is a platform that helps farmers to manage, buy and sell livestock.
Founded in 2018 by Ian Wheal, their solution boosts efficiency, output and
returns whilst reducing the carbon footprint of farms by up to 28%. Their
solution has grown into a network of thousands of farmers with over half a
million animals on the platform.
Recent news
● In July 2023, the Dunbia Group announced their partnership with Breedr on the
Low Carbon Beef Project, DEFRA funded initiative delivered by Innovate UK.
● In May 2023, Breedr, announced a new partnership with the University of
Georgia on the Next Generation Agriculture (NextGA) project, backed by the
National Science Foundation.
● In March 2022, Breedr announced a $16m Series A round led by Investbridge
Capital, with participation from LocalGlobe and Forward Partners.
Total invested: £1.4m | Fair Value: £2.3m | Fair Value / Investment: 1.6x
| FD Category C
Koru Kids
Koru Kids is a childcare marketplace that connects parents with vetted
part-time nannies and childminders. Established in 2016 by Rachel Carrell, the
company has delivered over 1 million hours of childcare to families and works
with over 10,000 nannies across the UK. It holds a TrustPilot rating of 4.5/5.
Recent news
● In November 2022, London VC Nesta announced Koru Kids as one of the first
investments from their newly secured £50M fund.
● In October 2022, Research commissioned by Koru Kids, in conjunction with The
Fatherhood Institute examined the current state of UK paternity leave. Its
results were widely covered by the UK media, including The Guardian, The
Independent and The Evening Standard.
● In August 2022, Koru Kid's Home Nursery Service was awarded the highest
possible grade at registration.
Total invested: £2.2m | Fair Value: £2.3m | Fair Value / Investment: 1.1x
| FD Category B
Counting Up
Countingup is the UK's #1 SME banking app with built-in accounting features.
Their vision is to become a "financial hub" for micro businesses in the U.K.
and beyond. The company was established in 2017 by Tim Fouracre, who
previously founded cloud accounting software Clear Books. It combines a
business bank account with bookkeeping features to help automate the filing of
accounts - a major time sink and pain-point for an underserved market of sole
traders and small businesses. The company now boasts over 34,000 business
customers.
Recent news
● In September 2023, the company welcomed Tom Platt as Chief Executive Officer.
Previously the Chief Operating Officer at TotallyMoney, a leading consumer
finance app, Tom spearheaded its growth to five million customers.
● In March 2021, Countingup closed a £9.1M Series A investment led by Framework
Venture Partners, in conjunction with Gresham House Ventures and Sage Group.
Total invested: £1.1m | Fair Value: £2.2m | Fair Value / Investment: 2.1x
| FD Category B
Uplearn
Up Learn is a smart learning platform for independent study that uses AI and
neuroscience to helps schools and students get better results. The company was
founded in 2016 by Andrew Mitson and Guy Riese. It uses machine learning to
construct a personalised learning experience that is tailored to each
student's strengths and weaknesses.
● In September 2023, UpLearn customers reported higher attainment for A level
students. Athena Learning Trust reported that students in Up Learn subjects
achieved A*/As at twice the rate of students studying non Up Learn subjects.
● In September 2023, the company announced that UpLearn courses would soon be
available for GCSE subjects.
Total invested: £1.2m | Fair Value: £2.2m | Fair Value / Investment: 1.8x
| FD Category C
Virtuoso
Virtuoso is a test automation platform for software businesses. The company is
pioneering the next generation of codeless, intelligent testing, by combining
Robotic Process Automation, AI/ML, and Natural Language Programming to deliver
an unrivaled authoring experience, while reducing test maintenance to near
zero. It holds a G2 rating of 4.6/5.
Recent news
● In July 2023, Virtuoso announced their strategic partnership with TTC,
bringing together their expertise in the software assurance domain.
● In September 2022, Virtuoso was cited by Forrester report as the leading
platform in the continuous automation testing (CAT) landscape.
Total invested: £1.3m | Fair Value: £2.2m | Fair Value / Investment: 1.7x
| FD Category D
Plyable
Plyable is the world's leading custom composite mold producer. Its platform
delivers the highest quality precision molds up to 45% faster using advanced
AI technology coupled with industry experts. Founded in 2012 by Martin Oughton
and Adam Lofts, Plyable is used by leading automotive and aeronautics
companies including McLaren, Mercedes and Boeing.
Recent news
● In June 2023, Plyable achieved recognition as a member of Boeing Aerospace
Xelerated portfolio. As a cohort 1 graduate from the Boeing-backed accelerator
program, Plyable's composite tooling automation platform proved its potential
as a digital startup capable of advancing the aerospace industry.
● In March 2023, Plyable were nominated for The 2023 JEC Composites Startup
Booster Award.
● In October 2022, Plyable secured a $3.2m round Led by Maven Capital Partners,
supported by composite industry leaders Solvay with participation from Forward
Partners.
Total invested: £1.1m | Fair Value: £2.0m | Fair Value / Investment: 1.8x
| FD Category D
Interim Financial Review
The first half of 2023 has seen some improvement in market multiples for some
sections of the technology market. Consequently, the downward market pressures
on our portfolio valuations are easing. Our portfolio continues to deliver
strong revenue growth.
In 2022, Forward's investment strategy focused on the portfolio, providing
follow-on investments to ensure that our key companies maintained strong
balance sheets with sufficient cash runways. During H1 there has been a
noticeable reduction in these follow-on rounds as many of these companies are
now in a good position and focus on our investments that are expected to
generate the greatest returns.
At Forward, I've sought to instil a strong cost-conscious culture that is
focused on attention to detail. I'm pleased to report a reduction in net
operating expenses for the first half of £1.8m, down from £4.1m in the same
period last year. This is a consequence of both the winding down of Forward
Advances, our revenue-based financing product, alongside reducing headcount in
the remaining Group.
Valuations
The Fair Value of Forward's Portfolio at the half-year is £76.9m (31 December
2022: £80.0m), a 5.4% year-on-year decline excluding new investments and
realisations. 2.9% of the total portfolio value decline this period is
accountable to the write-off of Koyo, which had a value of £2.3m at the year
end as a consequence of the company moving its loan book into run-off.
Realisations
£0.1m realisations were made in the period resulting from deferred
consideration from the Somo exit in 2022.
Consolidated Statement of Financial Position
The nature of the Group's business means that the balance sheet primarily
consists of its Financial Assets held at Fair Value (the Net Asset value of
the investment funds) and its Cash. Net assets at 30 June 2022 were £90.5m
(2022: £96.7m), resulting in a Net Asset Value (NAV) per share of 67.0 pence.
The Group's Net assets are substantially made up of its investments in the
portfolio. The Fair Value of the funds on the balance sheet at the half year
is £76.9m (2022: £80.0m).
Cash at 30 June 2023 was £14.1m, versus £17.1m at 31 December 2022, meaning
£3.0m spent on new and follow on investments of £1.2m, net operating
expenses of £1.9m and £0.1m of realisations. The Group will always seek to
maintain sufficient cash to meet its obligations for a minimum period of 12
months. The Group does not hold any institutional debt on its balance sheet.
Consolidated Statement of Comprehensive Income
The largest movement on the consolidated statement of comprehensive income is
the Fair Value change in the value of the portfolio companies being an
unrealised loss of £4.4m (H1'22: unrealised loss of £28.0m).
Revenue generated by the Studio was £214k (H1 '22: £81k).
Net operating expenses decreased to £1.8m for the first half (H1 '22:
£4.1m), predominantly as a result of the company's reducing headcount and the
wind-down of Forward Advances.
Advances
In August 2022, Forward announced a managed wind-down of its subsidiary
Forward Partners Venture Advance Limited ("Advances"). The business is
continuing to trade, but is now collecting minimal payments and related fee
income from two outstanding debtors. We are therefore close to completing the
managed wind-down of the subsidiary. Accordingly, once trading ceases a
capital reduction will be undertaken and the cash will be distributed to the
parent company, after which we expect to place it into a Members Voluntary
Liquidation.
Outlook
The valuation of the portfolio, excluding new investments, realisations and
2.9% attributable to the Koyo write-off, reduced by 2.5%. The previous
declines in six monthly periods were 15.1% and 23.9% for H2 2022 and H1 2022
respectively. The valuation dates over the last 18 months demonstrate the
decline in value has slowed substantially. At this stage it is too early to
say whether valuations will move upwards, but we remain cautiously optimistic.
Liquidation preferences tend to be introduced in the later funding rounds for
start-up companies. Consequently, market headwinds cause greater downward
pressure on valuations for early stage investors such as Forward and less so
for later stage investors. Meaning, when market comparables are down, Forward
takes a larger reduction in its valuations. However, as values increase,
Forward will experience greater gains as the impact of liquidation preferences
unwind.
Net operating expenses are expected to be in the region of £4m to £4.5m for
the full year, which is a substantial reduction of the £7.7m incurred in
2022. Post period, the Group's cash balance will be £12.5m at the end of
September 2023.
My main focus over the next few weeks and months will be reviewing the
utilisation of cash within the Group. The Group will always seek to maintain
sufficient cash to meet its obligations for a minimum period of 12 months.
Lloyd Smith
Chief Financial Officer
27 September 2023
Forward Partners Group Plc
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2023
Period Ended 30.06.23 Period Ended 30.06.22
£'000 £'000
Note
Fair value change in gains on investments held at fair value through profit 4
and loss
(4,354) (28,010)
Profit/(Loss) on disposal of investments 126 (41)
Revenue 2 220 367
Total Income (4,008) (27,684)
Administrative expenses (2,112) (4,324)
Total Operating Expense (2,112) (4,324)
Loss from operations (6,120) (32,008)
Finance costs - (82)
Carried Interest Charge - 7,347
Depreciation and amortisation (6) (56)
Share-based payments (62) (129)
Loss before taxation (6,188) (24,928)
Corporation tax expense - -
Loss for the year after tax attributable to owners of the parent (6,188) (24,928)
Other comprehensive income - -
Total comprehensive loss attributable to owners of the parent (6,188) (24,928)
Basic and diluted Earnings per Share from continuing operations 5 (5)p (19)p
Accounting policies and notes on pages 17 to 24 form part of these financial
statements.
Forward Partners Group Plc
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2023
31.12.22
30.06.23 (audited)
Note £'000 £'000
Non-Current Assets
Financial assets held at fair value through profit or loss 4 76,863 80,003
Property, plant and equipment 15 21
Deferred tax asset 24 24
76,902 80,048
Current Assets
Trade and other receivables 169 208
Financial assets held at amortised cost 4 - 28
Financial assets held at fair value through profit or loss 4 - 67
Cash and cash equivalents 14,139 17,188
14,308 17,491
Total Assets 91,210 97,539
Current Liabilities
Trade and other payables 672 875
672 875
Total Liabilities 672 875
Net Assets 90,538 96,664
Capital and reserves attributable to equity holders of the Group
Called up share capital 1,346 1,346
Share premium account 130,991 130,991
Merger reserve (33,189) (33,189)
Share-based payment reserve 205 143
Retained earnings (8,815) (2,627)
90,538 96,664
Basic and diluted NAV per share 5 67p 72p
The financial statements were approved and authorised for issue by the board
of directors on 27 September 2023, and were signed on its behalf by:
Lloyd Smith
Director
Accounting policies and notes on pages 17 to 24 form part of these financial
statements.
Forward Partners Group Plc
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2023
Share Based Payment Reserve
£'000
Share Share Merger Reserve Retained
Capital Premium £'000 Earnings Total
£'000 £'000 £'000 £'000
Balance at 1 January 2023 (audited) 1,346 130,991 (33,189) 143 (2,627) 96,664
Loss for year attributable to equity holders - - - - (6,188) (6,188)
Options granted and awards exercised - - - 62 - 62
Balance at 30 June 2023 1,346 130,991 (33,189) 205 (8,815) 90,538
Share Based Payment Reserve
£'000
Share Share Merger Reserve Retained
Capital Premium £'000 Earnings Total
£'000 £'000 £'000 £'000
Balance at 1 January 2022 (audited) 1,346 130,991 (33,189) - 40,429 139,577
Loss for year attributable to equity holders - - - - (24,928) (24,928)
Options granted and awards exercised - - - - 129 129
Balance at 30 June 2022 1,346 130,991 (33,189) - 15,630 114,778
Accounting policies and notes on pages 17 to 24 form part of these financial
statements.
Forward Partners Group Plc
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 30 June 2023
30.06.23 30.06.22
Note £'000 £'000
Cash flows from operating activities
(Loss) before tax (6,188) (24,928)
Adjustments to reconcile operating loss to net cash used in operating
activities
Revaluation of investments held at fair value through profit and loss 4,354 28,010
(Gain)/Loss on disposal of fixed assets (126) 41
Depreciation and amortisation 6 56
Share-based payments 62 129
Finance expense - 82
Decrease in trade and other receivables 40 692
Increase in loans receivable 95 358
Decrease in trade and other payables (204) (6,981)
Net cash used in operating activities (1,961) (2,541)
Tax paid - -
Net cash outflows from operating activities (1,961) (2,541)
Cash flows used in investing activities
Purchase of investments (1,214) (6,294)
Proceeds from disposals 126 463
Purchase of property, plant and equipment - (11)
Net cash outflows from investing activities (1,088) (5,842)
Cash flows used in financing activities
Proceeds from borrowings - 11
Interest paid - (82)
Repayments of leasing liabilities - (24)
Net cash outflow from financing activities - (95)
Net decrease in cash and cash equivalents (3,049) (8,478)
Cash and cash equivalents at beginning of the period 17,188 31,066
Cash and cash equivalents at end of the period 14,139 22,588
Accounting policies and notes on pages 17 to 24 form part of these financial
statements.
General information
The consolidated financial statements of Forward Partners Group Plc and its
subsidiaries (collectively, the Group), for the six-month period 1 January to
30 June 2023, were authorised for issue in accordance with a resolution of the
directors on 27 September 2023. Forward Partners Group Plc (the Company or the
parent) is a limited company incorporated and domiciled in England and Wales
and whose shares are publicly traded on AIM a sub-market of the London Stock
Exchange. The address of the registered office is given at the end of this
report.
1. ACCOUNTING POLICIES
Basis of preparation of financial statements
The Group's interim condensed financial statements for the six months ended 30
June 2023 have been prepared in accordance with IAS 34 Interim Financial
Reporting. The financial statements have been prepared under the historical
cost convention except as noted below.
Accounting standards require the directors to consider the appropriateness of
the going concern basis when preparing the financial statements. The directors
confirm that they consider that the going concern basis remains appropriate as
the Group has adequate resources to continue in operational existence for the
foreseeable future based upon forecasts.
The interim condensed consolidated financial statements do not include all the
information and disclosures required in the annual financial statements, and
should be read in conjunction with the Group's annual consolidated financial
statements as at 31 December 2022.
New standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the interim condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual consolidated financial statements for the
year ended 31 December 2022. The Group has not early adopted any standard,
interpretation or amendment that has been issued but is not yet effective.
Several amendments apply for the first time in 2023, but do not have an impact
on the interim condensed consolidated financial statements of the Group.
2. REVENUE
30.06.23 30.06.22
£'000 £'000
Fees on Advances 6 259
Investment Fees - 27
From external customers 214 81
Total revenue 220 367
3. SEGMENT INFORMATION
The following tables present revenue and profit information for the Group's
operating segments for the six months ended 30 June 2023 and 2022,
respectively:
Year ended 30 June 2023 Operating Net oss Deferred Loss
Revenue loss* Depreciation interest before tax Taxation taxation after tax
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Ventures (4,228) (5,832) (6) - (5,838) - - (5,838)
Studio 214 (95) - - (95) - - (95)
Advances 6 (21) - - (21) - - (21)
(4,008) (5,948) (6) - (5,954) - - (5,954)
Forward Partners Group Plc - (234) - - (234) - - (234)
Total (4,008) (6,182) (6) - (6,188) - - (6,188)
Year ended 30 June 2022 Operating Net Profit/(loss) Deferred Profit/(loss)
Revenue profit/(loss)* Depreciation interest before tax Taxation taxation after tax
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Ventures (28,024) (30,082) (8) - (30,082) - - (30,082)
Studio 81 (104) (38) - (104) - - (104)
Advances 259 (1,356) (10) (82) (1,438) - - (1,438)
(27,684) (31,542) (56) (82) (31,624) - - (31,624)
Forward Partners Group Plc - 6,696 - - 6,696 - - 6,696
Total (27,684) (24,846) (56) (82) (24,928) - - (24,928)
* For the purposes of this note, Operating profit/(loss) is presented net of
carried interest credit/charge and share based payments.
3. SEGMENT INFORMATION (continued)
The table below shows assets and liabilities by subsidiary, exclusive of
inter-company balances, as at 30 June 2023 and 31 December 2022, respectively:
Non-current Non- current Net
As at 30 June 2023 asset assets Current Total Current Non-current Total operating
additions assets assets liabilities liabilities liabilities assets
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Ventures 1,214 76,894 10,516 87,410 (425) - (425) 86,985
Studio - 7 1,614 1,621 (98) - (98) 1,523
Advances - 1 894 895 (76) - (76) 819
1,214 76,902 13,024 89,926 (599) - (599) 89,327
Forward Partners Group Plc - - 1,284 1,284 (73) - (73) 1,211
Total 1,214 76,902 14,308 91,210 (672) - (672) 90,538
Net assets 90,538
Non-current Non- current Net
As at 31 December 2022 asset assets Current Total Current Non-current Total operating
additions assets assets liabilities liabilities liabilities assets
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Ventures 9,726 80,032 4,546 84,578 (8,276) - (8,276) 76,302
Studio 6 14 386 400 (1,603) - (1,603) (1,203)
Advances - 2 936 938 (98) - (98) 840
9,732 80,048 5,868 85,916 (9,977) - (9,977) 75,939
Forward Partners Group Plc - - 11,623 11,623 9,102 - 9,102 20,725
Total 9,732 80,048 17,491 97,539 (875) - (875) 96,664
Net assets 96,664
4. FINANCIAL ASSETS AND LIABILITIES
The carrying amounts of financial assets and financial liabilities in each
category as at 30 June 2023 and 31 December 2022 are as follows:
Year ended 30 June 2023 Amortised Cost
£'000 FVPL Total
£'000 £'000
Financial Assets
Non-current financial assets - 76,863 76,863
Deferred tax asset 24 - 24
Current financial assets - - -
Trade and other receivables 169 - 169
Cash and cash equivalents 14,139 - 14,139
14,332 76,863 91,195
Financial liabilities
Trade and other payables 672 - 672
Non-current financial liabilities (-) (-) (-)
( ) 672 - 672
Year ended 31 December 2022 Amortised Cost
£'000 FVPL Total
£'000 £'000
Financial Assets
Non-current financial assets - 80,003 80,003
Deferred tax asset 24 - 24
Current financial assets 28 67 95
Trade and other receivables 208 - 208
Cash and cash equivalents 17,188 - 17,188
17,448 80,070 97,518
Financial liabilities
Trade and other payables 875 - 875
Non-current financial liabilities - - -
( ) 875 - 875
The methods used to measure financial assets and liabilities reported at fair
value are consistent with those used as part of the 31 December 2022
accounts.
Current financial assets relate entirely to loans receivable by the Group. At
30 June 2023 the loans receivable by the Group have been fully provided for
and have a net realisable value of NIL. The maximum exposure to credit risk at
the year-end is the fair value of each class of receivable. The Group does not
hold any collateral as security.
4. FINANCIAL ASSETS AND LIABILITIES (continued)
Non-current financial assets 31.12.22
30.06.23 (audited)
£'000 £'000
At 1 January 80,003 117,597
Additions 1,214 9,714
Realisations - (1,108)
Unrealised gains on the revaluation of investments (4,354) (46,200)
At 30 June/31 December 76,863 80,003
The Additions include £700k (2022: £2,410k) in new venture investments.
During the period, the Group received £124k as deferred consideration for
investments fully disposed in 2022 and £2k from the disposal of an investment
previously written down to Nil. As the net book value of the assets was Nil,
no amounts are presented in the reconciliation table above. The full amount of
£126k has been recognised as profit on the disposal of investments.
IFRS 13 requires certain disclosures which require the classification of
financial assets and financial liabilities measured at fair value using a fair
value hierarchy that reflects the significance of the inputs used in making
the fair value measurement.
Disclosure of fair value measurements by level is according to the following
fair value measurement hierarchy:
● level 1 inputs are quoted prices (unadjusted) in active markets
for identical assets or liabilities that the entity can access at the
measurement date;
● level 2 inputs are inputs other than quoted prices included within
level 1 that are observable for the assets or liabilities, either directly or
indirectly; and
● level 3 inputs are unobservable inputs for the assets or
liabilities.
The Non-current financial assets are all recognised at fair value through
profit or loss. The assets represent the portfolio company investments held
through the groups limited partnership fund subsidiaries. The Group's finance
team performs the valuations of the funds' portfolio investments with the
assistance of the investment manager for financial reporting purposes.
Valuation techniques are based on the International Private Equity and Venture
Capital ("IPEV") Valuation Guidelines December 2022 as well as the IPEV Board,
Special Valuation Guidance issued on 31 March 2020 in response to the Covid-19
crisis ("IPEV Guidelines") as described in the accounting policies and
significant accounting judgements sections of this report.
4. FINANCIAL ASSETS AND LIABILITIES (continued)
The following table provides an analysis of the financial assets held by the
partnership, which are measured subsequent to initial recognition, at fair
value.
Financial assets at fair value through profit or loss
30 June 2023 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Non-current - - 76,863 76,863
Current - - - -
- - 76,863 76,863
31 December 2022 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Non-current - - 80,003 80,003
Current - - 67 67
Total - - 80,070 80,070
Financial liabilities - interest-bearing loans and borrowings
Secured bank loan
The Group had a revolving loan facility of £5.0m provided by Triple Point
Advancr Leasing PLC under an agreement signed on 15 July 2021. The facility
was secured by a fixed and floating charge over the Group's subsidiary,
Forward Partners Venture Advance Ltd in favour of Triple Point Advancr Leasing
Plc.
The facility was repaid in full on 30 November 2022.
5. EARNINGS PER SHARE & NAV PER SHARE
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Group by the weighted average number of ordinary shares
in issue during the year.
30.06.2023 30.06.2022
Profit/(loss) attributable to equity holders of the Group (£'000) (6,188) (24,928)
Weighted average number of ordinary shares in issue 134,613,117 134,613,117
Basic earnings per share (pence per share) (5) (19)
The basic and diluted EPS are the same as there are no dilutive financial
instruments.
31.12.2022
30.06.2023 (audited)
Net assets (£'000) 90,538 96,664
Weighted average number of ordinary shares in issue 134,613,117 134,613,117
NAV* per share (pence per share) 67 72
*NAV (Net Asset Value)
6. DIVIDENDS
No dividends were paid during the year (2022: Nil).
7. RELATED PARTY DISCLOSURES
Transactions with key management personnel
There were no transactions with key management personnel occurring in the year
(2022: Nil).
Key Management Personal Compensation
The remuneration of the executive directors of Forward Partners Group Plc,
from all Group companies for the six months period 30 June 2023 and 2022 were
as follows:
Period ended 30.06.23
Short term employee benefits Post-employment benefits Total
Salary Benefits Pension
£'000 £'000 £'000 £'000
Executive directors 151 4 6 161
Other Group entity directors 129 12 1 142
Total 280 16 7 303
Period ended 30.06.22
Short term employee benefits Post-employment benefits Total
Salary Benefits Pension
£'000 £'000 £'000 £'000
Executive directors 216 5 9 230
Other Group entity directors 253 11 3 267
Total 469 16 12 497
The remuneration of the non-executive directors was as follows:
30.06.23 30.06.22
£'000 £'000
Total 108 95
The Group operates a carried interest scheme. The senior management and
related parties were entitled to Carried interest of NIL (2022: NIL). No
amounts have been paid out, these are their entitlements as at the year end,
assuming all the investments were converted to cash at that point, less
estimated selling costs.
8. ULTIMATE CONTROLLING PARTY
Forward Partners Group Plc, incorporated in England and Wales, is the ultimate
parent company of the Group. The ultimate controlling party is Blackrock
International Limited, which holds 70.4% of the issued share capital of
Forward Partners Group Plc through various funds it manages.
9. EVENTS AFTER THE REPORTING DATE
No adjusting or significant non-adjusting events have occurred between the 30
June reporting date and the date of authorisation.
Forward Partners Group Plc
COMPANY INFORMATION
for the interim date 30 June 2023
DIRECTORS: Nicholas Brisbourne
Susanne Given
Jonathan Mckay
Christopher Smith
Lloyd Smith
SECRETARY: Lloyd Smith
REGISTERED OFFICE & BUSINESS ADDRESS 124 City Road, London, England, EC1V 2NX
REGISTERED NUMBER: 13244370 (England and Wales)
AUDITOR: Grant Thornton UK LLP
30 Finsbury Square
London
EC2A 1AG
SOLICITORS: Gowling WLG (UK) LLP
4 More London Riverside
London
SE1 2AU
REGISTRARS: Equiniti Limited
Highdown House
Yeoman Way
Worthing
West Sussex
BN99 3HH
NOMINATED ADVISER & BROKER: Liberum Capital Limited
Ropemaker Place
25 Ropemaker Street
London
EC2Y 9LY
BANKERS Barclays Bank Plc
1 Churchill Place
London
E14 5HP
HSBC UK
Alphabeta
14-18 Finsbury Square
London
EC2A 1BR
Glossary of Terms
"Admission" The admission of the Enlarged Share Capital to trading on AIM and such
admission becoming effective in accordance with the AIM Rules for Companies.
"Advances" As per definition for "Forward Advances"
"Act" The UK Companies Act 2006.
"AI" Artificial intelligence.
"AIM" AIM, the market of that name operated by the London Stock Exchange.
"AIM Rules" the AIM Rules for Companies and the AIM Rules for Nominated Advisers.
"AIM Rules for Companies" The AIM Rules for Companies issued by the London Stock Exchange governing
admission to and the operation of AIM, as amended or re-issued from time to
time.
"AIM Rules for Nominated Advisers" The AIM Rules for Nominated Advisers issued by the London Stock Exchange
setting out the eligibility, ongoing responsibilities and certain disciplinary
matters in relation to nominated advisers, as amended or re-issued from time
to time.
"APMs" The Group assesses our performance using a variety of measures that are not
specifically defined under IFRS and are therefore termed Alternative
Performance Measures (APMs). The APMs that we use may not be directly
comparable with those used by other companies. The Group considers the
following to be APMs, which are defined elsewhere in the glossary: Average
Portfolio Company Revenue Growth, Deal Flow Diversity, Employee Happiness,
Studio Customer Satisfaction, Venture Portfolio Value, Ventures Deal Flow.
"Audit and Valuation Committee" The audit and valuation committee of the Board.
"Average Portfolio Company Revenue Growth" Average revenue growth of our top 15 holdings, weighted by the Group's fair
value of each asset.
"Board" The board of directors of the Company from time to time
"Company" or "Group" Forward Partners Group plc, a company incorporated in England and Wales with
registered number 13244370 and having its registered office at Huckletree
Shoreditch, Alphabeta Building, 18 Finsbury Square, London EC2A 1AH.
"Deal Flow Diversity" Deal flow diversity describes the gender and ethnicity split of all deals that
reach the 'first meeting' stage of our Ventures investment process.
"Directors" or "Board" The directors of the Company from time to time, but whose names as at the date
of this document appear within the Directors Report section of this document.
"ECL" Expected Credit Loss
"Employee Happiness" Employee happiness is defined as the percentage of employees who state in
monthly surveys that working at Forward makes them happy.
"ESG policy" Environmental, social and governance
"Executive Directors" The executive directors of the Company at the date of this document.
"FCA" The UK Financial Conduct Authority.
"Forward Advances" Forward Partners Venture Advance Ltd, a company incorporated in England and
Wales with registered number 12401240 and having its registered office at
Huckletree Shoreditch, Alphabeta Building, 18 Finsbury Square, London EC2A
1AH. The division of the Company focused on providing flexible revenue-based
financing to digital businesses.
"Forward Partners" or "Forward" The Company or any of its subsidiaries, such as Forward Partners Management
(as applicable).
"Forward Partners Management" Forward Partners Management Company Limited, a private limited company
registered in England and Wales with registered number 08819822 and having its
registered office at Huckletree Shoreditch, Alphabeta Building, 18 Finsbury
Square, London EC2A 1AH.
"Forward Studio" A division of the Group focused on providing strategic and executional
services to Forward Ventures' and Forward Advances' portfolio companies.
"Forward Ventures" A division of the Group focused on providing capital to high growth,
early-stage technology businesses in exchange for an equity stake in such
businesses.
"Grant Thornton" Grant Thornton UK LLP, a limited liability partnership registered in England
and Wales with registered number OC307742 and having its registered office at
30 Finsbury Square, London, England, EC2A 1AG.
"Gross IRR" The internal rate of return expressed before deduction of fees and other
expenses.
"Group" The Company and its subsidiaries from time to time and, for the purposes of
this document, including Forward Partners Management and its subsidiaries and
subsidiary undertakings.
"IFRS" or "IFRSs" International Financial Reporting Standards, as adopted for use in the United
Kingdom (and in respect of financial periods commencing before 1 January 2021,
as adopted for use in the European Union).
"Liberum" Liberum Capital Limited, a company incorporated in England and Wales with
registered number 05912554 and having its registered office at Level 12,
Ropemaker Place, 25 Ropemaker Street, London EC2Y 9LY.
"Net Asset Value" or "NAV" The value, as at any date, of the assets of the Company after deduction of all
liabilities determined in accordance with the accounting policies adopted by
the Company from time to time.
"Nominated Adviser" Liberum in its capacity as Nominated Adviser to the Company for the purposes
of the AIM Rules.
"Non-executive Directors" The non-executive directors of the Company at the date of this document.
"Originations" New loans made to customers before interest is applied.
"Studio Customer Satisfaction" The Studio team's customer satisfaction score describes the average rating
provided by Studio team customers on a scale of 1 (very unsatisfied) to 5
(very satisfied).
"QCA Code" The corporate governance code for small and mid-size quoted companies
published by the Quoted Companies Alliance from time to time.
"Registrar" Equiniti Limited of Corporate Advice, Aspect House, Spencer Road, Lancing,
West Sussex BN99 6DA.
"Remuneration and Nominations Committee" The remuneration and nominations committee of the Board.
"SME" Small and medium enterprises.
"Startup" A high growth, early-stage technology business.
"Studio" As per definition for "Forward Studio"
"VAT" UK value added tax.
"Ventures" As per definition for "Forward Ventures"
"Ventures Deal Flow" Ventures deal flow describes the total number of deals screened by the
Ventures team.
"Venture Portfolio Value" The fair value of the Portfolio as at the date of reporting, calculated in
accordance with the Group's Valuation Policy.
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