Forward Partners Grp - Interim results six months to 30 June 2022
22/09/2022 07:00
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RNS Number : 2295A Forward Partners Group PLC 22 September 2022
Forward Partners Group plc
("Forward Partners" or "the Group")
INTERIM RESULTS COVERING THE SIX MONTHS TO 30 JUNE 2022
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 2022.
Financial highlights
● Venture Portfolio of 48 active companies with a Fair Value of
£94.9m, inclusive of £6.3m new investments. This represents a decline in
Fair Value of 23.9% exclusive of new investments. Our previous guidance was
that Fair Value would be no less than £92.0m, a decline of 26.4%.
● Operating profit before tax for the period of £24.9m net loss,
predominantly driven by the unrealised £28.0m Venture Portfolio Value decline
and a £7.3m reversal of the Carried Interest charge.
● NAV per share was 85 pence (104 pence as at 31 December 2021).
● Cash position of £22.6m which enables the Group to support its
portfolio and maintain its investment rate for the foreseeable future.
Portfolio highlights
● 14 investments made by Forward Ventures in the period totalling
£6.3m.
○ Two new investments in high-growth, B2B focused early-stage
technology companies - Baselime and Sonrai, totalling £1.4m.
○ 12 follow on investments in existing portfolio companies totalling
£4.9m.
● Over 80% of the Top 15(1) portfolio investments are either
profitable, anticipated to be on the path to break even without the need for
further fund-raising, or have 18 months or more cash runway.(2)
● Top 15 holdings generated a weighted H1 2022 versus H1 2021 average
revenue growth of 107% as at 30 June 2022. Growth is forecast to continue in
the second half with an outcome of 40-60% for the full year.(2)
● The Top 15 portfolio investments account for 62.3% of Venture
Portfolio Value, with the most valuable company (Gravity Sketch) accounting
for 9.5%. 29 of the 48 portfolio companies are B2B oriented.
Post period highlights
● Follow on investments into a further four portfolio companies
totalling £1.3m.
● Wind down of non-core subsidiary Forward Advances underway as of 24
August 2022. For Advances, losses this financial year, including wind-down
costs and default provision are anticipated to total circa £2.8m.
Outlook
The fundamentals of our portfolio remain strong and we remain confident in
their exit potential. The Group expects challenging macroeconomic and market
conditions to endure for the rest of the year and as a consequence, related
valuation pressure could continue.
Nic Brisbourne, CEO at Forward Partners, commented:
"I'm pleased to report that the underlying performance of our portfolio
remains strong, despite the regrettable downward pressure on valuations in the
first half. The decrease in Fair Value was primarily driven by valuation
headwinds experienced by high-growth tech companies the world over for nearly
a year now. Happily, growth at our portfolio companies remains robust, balance
sheets are in good shape, and our exit theses remain valid, albeit likely
delayed.
Putting 2022 into context, the startup ecosystem has enjoyed a decades-long
bull run driven by the ever-increasing pace of change. Our excitement for
venture capital and commitment to Forward Partners is rooted in the belief
that entrepreneurs will continue to solve the world's problems for years to
come.
Finally, this has been a difficult period, and I would like to finish by
saying "thank you" - to the Forward team and portfolio CEOs for their grit and
hard work, and to our shareholders for their patience. Better times lie
ahead."
The Company's Interim Report for the period ending 30 June 2022 is available
on Forward Partners' website at http://forwardpartners.com/.
NOTES:
(1) Top 15 portfolio investments denote the most valuable companies held in
Forward's Venture portfolio by Fair Value at a point in time. Except where
otherwise noted in this release, we refer to the Top 15 as at 31 December 2021
to provide a meaningful basis for comparison. At that time, the Top 15
comprised Ably, Gravity Sketch, Makers, Spoke, Patch, Snaptrip, Cazoo, Robin
AI, Apexx, Juno, KoruKids, Cherryz, Koyo Loans, Lexoo and Counting Up. The Top
15 will be updated in Forward's final year results.
(2) Management estimates as of 12 August 2022. 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. Revenue growth average weighted by the
Fair Value of portfolio companies as 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)
Neil Patel
Lauren Kettle
Cara Murphy
H/Advisors Maitland (Financial PR) forwardpartners@maitland.co.uk
Sam Turvey Tel: +44 (0) 207 379 5151
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,
equity-free revenue-based financing through Forward Advances 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
(https://forwardpartners.com) .
Strategic report
Summary
As we enter our tenth year of investing, I am pleased to present Forward's
interim results for the six-month period to 30 June 2022.
When we published our annual report, I wrote that 2021 was a remarkable year
for Forward, for venture capital and for European tech - with London breaking
away from the pack as Europe's leading tech hub. But 2022 is different. These
are difficult times with historically high inflation and interest rates
weighing heavily on the economy, and I'm disappointed to report a 23.9%
decline in the Fair Value of our portfolio over the first half of the year. I
am pleased to say, however, that the companies within the portfolio are in
good health, with a high proportion of our Top 15 investments enjoying strong
revenue growth and strong balance sheets. The decline in valuation is largely
due to valuation pressures emanating from the correction in technology growth
stocks that started in 2021.
At times like this, it's important to remember that venture capital is a
long-term game. The ever-increasing pace of change will continue to drive
innovation from larger companies to startups and many great businesses are
forged during recessions. Moreover, we expect to hold our investments for 7-10
years or more and will therefore almost certainly encounter at least one
period like the one we find ourselves in now.
Our efforts in the short term, therefore, remain focused on making sure that
our portfolio companies have the best chance of emerging as real winners from
the difficult time ahead whilst also selectively making new investments. While
we are seeing an increasing number of high-quality opportunities and
valuations are coming off from the highs seen last year, we also deem that
fundraising risk remains high. Hence, we are waiting for greater certainty on
the availability of next-round capital before increasing the rate at which we
make new investments. We made two new investments within the period (announced
in our July Portfolio Update) and a further is at terms, post-period.
We have had to make difficult decisions this half year too. At Advances, the
economy has had a profound impact. Declining fortunes of our target customers
and intense competition in the revenue-based finance market combined to
severely limit our future growth opportunities. As previously announced, in
August we resolved to wind down the subsidiary that we launched as a startup
in 2020. This decision reduces our forecast expenditure over 2022, even after
wind-down costs, improving the strength of our balance sheet and increasing
our capacity to invest in early-stage technology businesses.
Looking ahead, we may continue to face valuation pressures in the short term,
but we are confident Forward is in a good position to prosper in the months
and years to come.
Financial performance
The Fair Value of Forward's venture portfolio (the gross value of the Group's
investments in the funds before deductions for carried interest liability) as
at 30 June 2022 was £94.9m (31 December 2021: £117.1m), a decline of 23.9%
over the period, exclusive of new investments. These results are a slight
improvement on our previous guidance that Fair Value would be not less than
£92.0m, a decline of 26.4%.
Realisations during H1 were £0.5m from the third-party exit of Somo.
As anticipated in our final year results, the valuations at which we hold our
portfolio companies have fallen as a result of macroeconomic challenges - and
a significant proportion of that downward pressure has been related to
valuation dynamics rather than business performance. We have been hurt by
three compounding factors which by our estimation account for over 80% of the
H1 net decline. Firstly, many companies have chosen to delay fundraising,
which has resulted in greater weight being put on comparables analysis when
valuing the key assets in the Ventures portfolio. Secondly, this valuation
method takes revenue multiples from a basket of comparable companies that are
trading at significantly lower share prices than last year. Thirdly, at lower
valuations, the preferred share structures common in technology startups come
into play, disproportionately affecting us as an early-stage investor. This
compounding effect, however, will unwind to our advantage when times improve.
Ventures portfolio in robust health
The Forward Ventures portfolio remains in good health. We are pleased that our
Top 15 portfolio investments by Fair Value are on course to deliver weighted
average revenue growth of 40-60% over the course of 2022. These investments
have strong balance sheets too. Over 80% are profitable, or are anticipated to
be on the path to break even without the need for further fundraising, or have
18 months or more cash runway. Most of them, however, hope not to wait that
long and are poised to raise capital and accelerate growth as soon as the
markets open. This approach maximises optionality when considering investment
options and valuation targets.
Ventures deployment on track
Forward Ventures remains active in the market and our investment team
continues to seek opportunities that leverage applied AI and marketplace
operating models, whilst exploring further investments in the rapidly growing
area of Web3. Our investment plan is on track to deliver four to eight new
Ventures investments in the current financial year, with two investments
totalling £1.4m completed in new companies so far, and a further one proposed
investment at terms, post-period end.
We have seen a good volume of deals, once again exceeding our target of 2000
per half-year and allowing us to focus on quality rather than quantity. We saw
2274 investment opportunities in the period, up 19% on H2 2021. The Ventures
team met with 353 of these and progressed 46 to the final stages of
assessment. The quality of the companies within this pipeline has been
particularly exciting for the Ventures team. We attribute our continued
success in attracting a high volume of quality leads to the increasing
visibility of our brand and the initiatives that we have run to identify and
attract deals throughout the period. Funding Lab, for instance, is our new,
highly focused accelerator programme that provides intensive coaching to
companies in preparation for a raise. In July, the programme attracted just
under 500 applications. Of the resulting cohort of 12 companies, the Ventures
team took two through to the final stages of assessment.
Advances winds down
On 24 August 2022 we announced our decision to conduct a managed wind-down of
Forward Advances. The subsidiary was established as a startup inside Forward
in 2020 to meet the demand of the fast-growing alternative funding market,
separate to venture capital. The venture had a strong start, originating
£14.9m in loan financing since inception. However, upon review, the Group
determined that the current macroeconomic environment and the low margins
necessary for Advances to compete in the alternative funding market limit
opportunities for future growth and would limit potential shareholder returns.
In the half-year to 30 June 2022, Advances generated revenues of £0.3m and
recorded losses after tax of £1.4m, with total originations of £4.1m.
Advances book value at 30 June was £1.9m net of a £0.3m provision.
Repayments from outstanding Advances remain in line with forecasts, and losses
this financial year, including wind-down costs, are anticipated to total
£2.8m. While no further loans will be originated, current Advances customers
will be fully serviced for the duration of their contracts.
Outlook
The case for early-stage venture investment hasn't changed and the Forward
Partners mission remains the same: to build the UK's leading and most admired
early-stage investment firm. Our belief that entrepreneurs are solving the
world's problems transcends the economic cycle and we continue to want to help
as many of them succeed as possible.
As you might expect, we continually monitor the external environment and
consider whether we should increase or decrease our rate of capital
deployment. In particular, we look at the volume of quality opportunities we
see and assess what we call fundraising risk - the likely demand from new
investors to lead the next round of investment at an attractive valuation. At
the time of writing, we are seeing a high volume of quality opportunities, but
we are waiting for more evidence that next-round investors will be there
before considering whether to increase our pace of investment. We understand
that many of these next-round investors have raised funds relatively recently
and there is a large amount of dry powder in the market, but it is still
unclear how quickly that capital will be deployed or how much of it will be
used to support existing portfolio companies.
We remain optimistic that we will continue to see good quality deals at
attractive valuations (though to note - Web3 has come down less than our other
investment areas). Until fundraising risk improves, our approach will be to
seek businesses that not only have strong growth potential, but which don't
rely on raising significantly larger rounds of financing in the future. We
will, of course, maintain our disciplined approach to the management and
valuation of our portfolio and we will continue to only deploy capital into
companies that meet our strict investment criteria.
We believe that our portfolio is well-positioned for the next period too.
Revenue growth is the biggest driver of valuation growth at startups, whilst
weak balance sheets put valuations at risk. We're pleased to note that many of
our companies are increasing revenue fast and hold strong reserves. We believe
that most will not only make it through this period but come out of it
stronger and more clearly positioned as the leaders in their markets.
At Group level, we have taken steps to ensure that we are appropriately
resourced to support our portfolio through the potentially lean years ahead
and can invest appropriately in the back office required to operate
effectively as a listed business. Additionally, our expenses are under
continual review to ensure we operate with maximum efficiency and we will
conduct an end-to-end assessment in the coming months ahead of our 2023
budgeting cycle.
To summarise, we operate in a market with exciting long-term growth potential,
have many great companies in our portfolio, and our balance sheet is strong.
Valuation pressures may have a further negative effect on the Fair Value of
our portfolio in the near term, but we are seeing an increasing number of
indications that it may not be too long before we get back to growth.
Nic Brisbourne
Chief Executive Officer
Portfolio review
At 30 June 2022, Forward Partners' portfolio consisted of 48 active companies,
with a Ventures Portfolio Value (the gross value of the Group's investment
holding before deductions for carried interest) of £94.9m (vs 31 December
2021: £117.1m). Exclusive of new investments, this represents a 23.9%
decline.
Portfolio
The Forward portfolio has been constructed to maximise risk-adjusted growth by
balancing upside potential, the chance of failure, likely holding period and
concentration risk.
Historically, Venture's investment strategy has focused on three key operating
models: applied AI, eCommerce and marketplace. At 30 June 2022, these
represented 31.3%, 16.7% and 33.3% of the portfolio respectively. Our Top 15
portfolio investments accounted for 62.3% of Ventures Portfolio Value with the
largest holding, Gravity Sketch representing 9.5%. As we move through 2022,
we're excited to introduce Web3 and the decentralised technology that
underpins as a new investment focus, to replace eCommerce. We have already
developed a strong proprietary deal flow and have built a growing pipeline of
deals within this new area.
Forward defines its list of Top 15 core holdings by Fair Value on an annual
basis on 31 December and publishes this list in its final year results. Except
where otherwise noted, in this release, we refer to the Top 15 at 31 December
2021 to provide a meaningful basis for comparison. At 31 December 2021, the
Top 15 core holdings were Ably, Gravity Sketch, Makers, Spoke, Patch,
Snaptrip, Cazoo, Robin AI, Apexx, Juno, KoruKids, Cherryz, Koyo Loans, Lexoo
and Counting Up.
At 30 June 2022, the Top 15 by Fair Value were Gravity Sketch, Spoke, Koyo
Loans, Makers, Robin, Apexx, Juno, Koru Kids, OutThink, Ably, Ahauz, Patch,
Virtuoso, Snaptrip, Big Health.
Key positive movements include OutThink - a £2.6m increase in Fair Value;
Koyo Loans - a £2.0m increase in Fair value plus a £0.5m follow on
investment, and Ahauz - a £1.8m increase in Fair Value. Conversely, we saw
notable valuation declines at Ably - a £8.8m decrease in Fair Value; Cazoo -
a £4.3m decrease in Fair Value and Cherryz - a £3.5m decrease in Fair Value.
Post period end we have now exited our entire holding in Cazoo and remain
hopeful that Ably and Cherryz will return to valuation growth in the next 6 -
12 months.
Investments
£6.3m was invested by Forward Ventures between 1 January 2022 and 30 June
2022 of which £1.4m was invested in two new portfolio companies and £4.9m
invested into 12 existing portfolio companies in follow-on rounds.
New investments
-- Current period to 30 June 2022
● Baselime. Forward Partners invested £0.4m into serverless
technology company Baselime as part of the company's £1.5m round, led by Arc,
Sequoia's catalyst for outlier founders.
● Sonrai. Forward Partners invested £1.0m into Sonrai, an analytics
platform that leverages AI to speed up drug and healthcare developments as
part of the company's £2.2m round, alongside Techstart Ventures.
-- Post period end
● There have been no new investments in the period following 30 June
2022 to publication.
Follow-on investments
-- Current period to 30 June 2022
● 12 follow on investments at promising existing portfolio companies
totalling £4.9m. (Apexx, Fy, Gravity Sketch, Highr, KoruKids, Koyo Loans,
Makers, Patch, Plyable, Robin AI, Silico and Spoke).
-- Post period end
● Follow on investments into portfolio companies OutThink, Breedr,
Apexx and Lyvly totalling £1.3m.
Realisations
-- Current period
The Group achieved one realisation in the period between 1 January 2022 to 30
June 2022 totalling £0.5m.
● Somo. Forward Partners realised £0.5m through the exit of Somo, a
digital product agency.
-- Post period end
There has been one realisation in the period following 30 June 2022 to
publication, totalling £0.6m.
● Cazoo. Forward Partners disposed of 91% of its holding in online car
retailer Cazoo Group Limited in July 2022, realising £0.6m. The remaining 9%
holding was sold in August, realising less than £0.1m.
Top 15 Portfolio Companies by valuation
Figures shown below, including total investment, Ventures Portfolio Value and
illustrative return, are unaudited and correct as at 30 June 2022. The Top 15
investments cover 62.3% of the portfolio by Fair Value.
Fair Value Invested Realised Delta Fair Value
31/12/21 30/06/22
£m £m £m £m £m
⥈ Gravity Sketch 8.4 0.7 - - 9.1
⥈ Spoke 5.2 0.3 - 0.6 6.1
⥈ Koyo Loans 3.3 0.5 - 2.0 5.8
⥈ Makers 8.3 0.4 - (2.9) 5.8
⥈ Robin 4.7 0.9 - - 5.6
⥈ Apexx 4.7 0.2 - - 4.9
⥈ Juno 4.5 - - - 4.5
⥈ KoruKids 3.9 0.5 - - 4.4
⥈ Ably 12.9 - - (8.8) 4.1
⥈ Patch 5.2 0.3 - (2.5) 3.0
⥈ Snaptrip 5.0 - - (2.3) 2.7
↠ Lexoo 3.2 - - (2.1) 1.1
↠ Counting Up 2.8 - - (1.7) 1.1
↠ Cazoo 4.9 - - (4.3) 0.6
↠ Cherryz 3.7 - - (3.5) 0.2
↞ OutThink 1.6 - - 2.5 4.1
↞ Ahauz 1.6 - - 1.9 3.5
↞ Virtuoso 2.7 - - - 2.7
↞ Big Health 2.5 - - - 2.5
Remaining portfolio 28.0 2.5 (0.5) (6.9) 23.1
Ventures Portfolio Value 117.1 6.3 (0.5) (28.0) 94.9
Carried Interest (11.3) 7.3 (4.0)
Net Ventures Portfolio Value 105.8 6.3 (0.5) (20.7) 90.9
⥈ Part of the Top 15 in December 2021 and June 2022
↠ New to the Top 15 as at June 2022
↞ No longer part of the Top 15 as at June 2022
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 London in 2014 by Oluwaseyi Sosanya and Daniela
Paredes with the 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.
Recent news
● In April 2022, Gravity Sketch announced the successful completion of
a $25m funding round ($33m final close). Forward participated with a further
£0.7m in this Series A, led by Accel alongside Google Ventures.
● Gravity Sketch launched LandingPad Collab, which allows users to
create personalised spaces for real-time collaboration.
Total invested: £1.9m | Fair Value: £9.1m | Fair Value / Investment: 4.7x
| FD Category C
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 4.7/5.
Recent news
● Post-period in March 2022, Spoke launched a crowdfunding round on
Seedrs which reached £3.7m (248% of the £1.5m target) with 24 days left.
● The company has annual gross revenues of over £18m and 75%
year-on-year growth. • In May, Spoke announced ITV's subscription of £2
million in convertible loan notes.
● Spoke will use ITV's media investment to launch a TV advertising
campaign running alongside major sporting events.
Total invested: £2.5m | Fair Value: £6.1m | Fair Value / Investment: 2.4x
| FD Category C
Koyo Loans
Koyo uses open banking and applied AI to offer personal loans to consumers who
lack traditional historical credit data, without excessive fees for credit.
Established in 2018 by Thomas Olszewski, Koyo is on a mission to provide loans
that are personal and transparent, to those who have little or no options
through no fault of their own. Koyo has a Trustpilot score of 4.9, with 96% of
their 983 reviews being five stars.
Recent news
● In September 2021, Koyo closed a $50m Series A of equity and debt
led by Force Over Mass. We participated in the round, alongside Seedcamp,
Frontline Ventures and Matt Robinson (founder of GoCardless).
● The company is using the funding to provide access to competitively
priced credit, when most traditional leaders have been scaling back lending.
Total invested: £2.5m | Fair Value: £5.8m | Fair Value / Investment: 2.3x
| FD Category C
Makers
Makers are creating a new generation of tech talent through courses and
apprenticeships. By combining an academy and a recruitment agency, they've
turned over 1,700 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 boot camp review site
SwitchUp.
Recent news
● Over 35% of Makers engineers are female, two times higher than the
industry average.
● July marked the third year of Maker's Women in Software Power List
in partnership with Google for Startups UK and Computer Weekly.
● The company is now working with three of the world's four largest
technology companies.
Total invested: £1.5m | Fair Value: £5.8m | Fair Value / Investment: 3.9x
| FD Category E
Robin AI
Robin AI is a legal-tech company that provides companies, scale-ups and funds
with a solution to improve contracts through software, machine learning and a
team of world-class legal professionals. Established in 2019 by Richard
Robinson, Robin developed from Richard's personal experience as a lawyer.
Recent news
● Robin AI raised £2.5m in December 2021 in a seed extension round,
with participation from the Softbank Emerge Program, Tom Blomfield (the
founder of Monzo) and existing investors.
● The company increased revenues by more than 10x between the seed
investment in March and the seed extension in December.
Total invested: £1.4m | Fair Value: £5.6m | Fair Value / Investment: 4.0x
| FD Category D
Apexx
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. The team has grown to 41 people working across 3 countries, serving
clients like ASOS, Avon, Xe, eShopworld and Air Seychelles.
Recent news
● Apexx has continued to push forward its "buy now pay later" (BNPL)
product, now integrated with 10 BNPL providers.
● Apexx now has over 120 integrated partners and operates across more
than 70 countries.
● In August 2021, Apexx announced four new global brands as customers:
Atome, LayBuy, Sezzle and Tamara.
● Apexx have expanded sales operations to cover the USA, with two FTEs
now hired.
● The company won payment innovation of the year at the 2021 FS Tech
awards.
Total invested: £1.8m | Fair Value: £4.9m | Fair Value / Investment: 2.7x
| 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, more
cost-efficient services. Revenues more than doubled in 2020.
Recent news
● Juno launched a closed beta 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.
● Juno holds a 4.6 rating on Trustpilot, with 79% of its 527 reviews
being five stars.
● LendInvest, the UK's leading property finance platform appointed
Juno to their buy-to-let legal panel.
Total invested: £2.3m | Fair Value: £4.5m | Fair Value / Investment: 1.9x
| FD Category D
Koru Kids
Koru Kids is a childcare marketplace that connects parents with vetted
part-time nannies. Established in 2016 by Rachel Carrell, the company has
delivered over 1,000,000 hours of childcare to families and works with over
10,000 nannies across the UK. It holds a TrustPilot rating of 4.8/5.
Recent news
● Koru Kids launched a home nursery service, allowing carers to take
care of children in their home and teach a varied curriculum following the
early years foundation stage (EYFS) framework.
● The platform now has more than 25 home nursery sites, with more
being added as carers are trained.
Total invested: £2.2m | Fair Value: £4.4m | Fair Value / Investment: 2.0x
| FD Category B
Ably
Ably is an edge messaging platform to power live and collaborative
experiences. It is building better real-time infrastructure for the internet.
Established in 2016 by Matthew O'Riordan and Paddy Byers, the company is
trusted by brands like HubSpot, Toyota, and Webflow to power shared live
experiences like business-critical chat, order delivery tracking, or document
collaboration for millions of simultaneously connected devices around the
world.
Recent news
● Ably won the Best Use of API Gateway Integration, Best API Business
Model (for the second year in a row), and Best Overall SME Dev Portal at the
2021 DevPortal Awards.
● The senior team was strengthened with the addition of a CTO from
Microsoft, COO from Facebook, and Chief Customer Officer from Spacemaker AI.
● On 30 June, Ably announced a successful raise of $70m led by Insight
Partners and Dawn Capital. They're using the funding to strengthen the UK
team, expanding it from 65 to 125 employees by the end of 2022 to drive
innovation and scale.
Total invested: £1.7m | Fair Value: £4.1m | Fair Value / Investment: 2.4x
| FD Category B
Patch
Patch is one of the leading online UK direct-to-consumer plant stores.
Established in 2015 by Freddie Blackett, Patch helps people who need plants
most - those who live and work in the city - to choose and care for plants in
their homes and workplace. The company has attracted over 250,000 customers.
They hold a 4.8/5 rating on Trustpilot and an audience of 240,000 plant fans
on Instagram. Patch was recently voted 28th in start-ups.co.uk '100 to watch'.
Recent news
● Patch opened a new fulfilment centre to reduce delivery times and
logistics costs.
● The company exhibited at the Chelsea Flower Show in collaboration
with The Edible Bus Stop.
● The team also launched the Patch Plant Hotel to take care of
customers' plants while they are on holiday.
● Patch was a finalist in The Institute of Customer Services UK
Customer Satisfaction Awards 2021 and won the award for Best Use of Voice of
the Customer at the 2021 Engage Awards.
● In 2021, Patch plant doctors helped 12,000 customers diagnose
problems with their plants.
● Patch won a silver gilt medal at the 2021 Chelsea Flower Show for
their studio: the Pharmacy of House Plants.
Total invested: £1.4m | Fair Value: £3.0m | Fair Value / Investment: 2.1x
| 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
● Snaptrip raised a £2.1m round in May 2021, led by Bestport
Ventures, which the company used to acquire Last Minute Cottages.
● The team aim to grow their position as the UK's biggest and best
last-minute self-catering brand. • Post-period in March 2022, Snaptrip
acquired Independent Cottages for a seven-figure fee. This is 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.
Total invested: £0.6m | Fair Value: £2.7m | Fair Value / Investment: 4.4x
| FD Category D
Lexoo
Lexoo is a technology-driven legal outsourcing solution. Founded in 2014, the
company has grown to deliver legal services to companies worldwide through a
network of more than 1,100 lawyers in 70 countries. Tackling transparency and
efficiency in the legal market, the team leverages technology driven processes
to unlock capacity, efficiency and improve stakeholder engagement. Lexoo holds
a rating of 4.6/5 on Trustpilot.
Recent news
● Lexoo was recognised as one of the top 25 LegalTech Companies of
2021 by TechRound.
● More recently, it onboarded Trustpilot as a client, and launched a
credits-based subscription model to drive recurring revenue from an ad-hoc
client base.
● The company will also soon launch its new product line, offering
GDPR assessments as a recurring service.
● Going into 2022, the business has been putting in place the
foundations to scale, expanding its customer acquisitions team and adding more
in-house lawyers.
Total invested: £1.5m | Fair Value: £1.1m | Fair Value / Investment: 0.8x
| FD Category E
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 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: £1.1m | Fair Value / Investment: 1.1x
| FD Category B
Cherryz
Cherryz is an online discount retailer of low price fast-moving consumer goods
and general merchandise. Its app brings consumers through a user journey that
combines the convenience of online shopping with the favourable low prices of
discount stores. Cherryz is focused on a growing online grocery sector and
creating shopping (vs. buying) experiences on mobile devices - trends that
have both accelerated through the Covid-19 pandemic. Cherryz hold a Trustpilot
rating of 4.4/5.
Recent news
● Increased headcount from 25 to 70.
● Tripled the size of our fulfilment operations.
● Invested in machine learning in order to deliver a more personalised
customer experience.
Total invested: £1.8m | Fair Value: £0.2m | Fair Value / Investment: 0.1x
| FD Category B
Interim Financial Review
The six-month period ended 30 June 2022 was largely business as usual for
Forward Ventures as it continued to deploy cash into exciting new investment
opportunities. My first three months, since joining in late March 2022, saw a
focus on our annual reporting, along with forecasting to ensure the Group was
able to make strategic decisions to ensure its continued success over the long
term.
Forward Ventures
The Ventures Portfolio Value (the gross value of the Group's investment
holding before deductions for carried interest liability) at 30 June 2022 was
£94.9m (31 December 2021 £117.1m), representing a total decline of 23.9%
excluding new investments through the period. The £22.2m net movement
includes a Ventures capital deployment of £6.3m across 14 companies in both
new and follow-on rounds; £0.5m of realisation of Somo and a Fair Value
decrease of £28.0m. The Fair Value reduction is largely attributable to
market headwinds and downward pressure on comparable valuations and
liquidation preferences impacting earlier stage investors such as Forward
Partners. As market headwinds dissipate, liquidation preferences will have a
reduced weight on our Fair Value calculation.
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, £95.4m (£0.5m relating
to an investment in the Carried Interest Partner) and ash of £22.6m. Net
assets as at 30 June 2022 were £114.8m (31 December 2021 £139.6m), resulting
in a Net Asset Value (NAV) per share of 85 pence (31 December 2021 104 pence).
The Group currently holds a £5m revolving credit facility for the benefit of
Forward Advances. At 30 June 2022, this facility was drawn down by £1m, which
has not changed since year-end. Following the decision in August 2022 to wind
down the subsidiary, the facility will be fully repaid by the year-end.
The Group will always seek to maintain sufficient cash availability for a
period greater than 12 months.
Consolidated Statement of Comprehensive Income
Income recognised for the half year to 30 June 2022 comprise a loss from
investment valuations of £28.0m, Studio fee income of £0.1m and fees and fee
income of £0.3m from the Forward Advances loan business.
Operating expenses were £4.5m in the period which was principally
attributable to staff and office costs. A credit to the Income Statement of
£7.3m was recognised as a result of the decrease in the carried interest
returns accrued by the scheme's members.
Finance costs are the interest and fees attributable to the TriplePoint loan
facility of which only £1.0m has been drawn down.
Post-period end
Forward Advances
On 24 August 2022, we announced our decision to conduct a managed wind down of
Forward Advances. The subsidiary was established as a startup inside Forward
during 2020 to meet the demand of the fast-growing alternative funding market,
separate to venture capital. The venture had a strong start, originating
£14.9m since inception. However, upon review, the Group determined that the
current macroeconomic environment and the low margins necessary for Advances
to compete in the alternative funding market limited opportunities for future
growth and cash generation in the short to medium term.
In the half year to 30 June 2022, Advances generated revenues of £0.3m and
recorded losses after tax of £1.4m, with total originations of £4.1m. The
Advances book value at 30 June was £1.9m net of a £0.3m provision.
Repayments from outstanding Advances remain in line with forecasts, and losses
this financial year, including wind-down costs, are not expected to exceed
£2.8m. While no further loans will be originated, current Advances customers
will be fully serviced for the duration of their contracts.
Realisations
Since the period ended our entire Cazoo holding has been realised for a total
of £0.6m. As a result, the Group no longer holds any listed assets within its
portfolio.
New Investments
Follow-on investments in Apexx, Breedr, Lyvly and OutThink totalling £1.3m
have been deployed since the interim date.
Lloyd Smith
Chief Financial Officer
Forward Partners Group Plc
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2022
Note Period Ended 30.06.21
Period Ended 30.06.22 (restated)
£'000 £'000
Fair value change in gains on investments held at fair value through the 4 (28,010) 18,513
profit and loss
Profit/(Loss) on disposal of investments (41) -
Revenue 2 367 463
Total Income (27,666) 18,976
Administrative expenses (4,453) (1,909)
Carried Interest Charge 7,347 (3,956)
Depreciation and amortisation (56) (99)
Total Operating Expense 2,838 (5,964)
(Loss)/Profit from operations (24,826) 13,112
Finance costs (82) (3)
(Loss)/Profit before taxation (24,928) 13,009
Corporation tax expense - -
(Loss)/Profit for the year after tax attributable to owners (24,928) 13,009
of the parent
Other comprehensive income - -
Total comprehensive (loss)/income attributable to owners
of the parent (24,928) 13,100
Basic and diluted Earnings per Share from continuing operations 5 (19)p 10p
Accounting policies and notes on pages 21 to 30 form part of these financial
statements.
Forward Partners Group Plc
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2022
31.12.21
Note 30.06.22 (audited)
£'000 £'000
Non-Current Assets
Intangible assets 62 71
Financial assets held at fair value through the profit or loss 4 95,377 117,597
Property, plant and equipment 36 35
Right of use assets - 37
95,475 117,740
Current Assets
Trade and other receivables 715 1,411
Financial assets held at amortised cost 4 1,031 1,499
Financial assets held at fair value through the profit or loss 4 915 804
Cash and cash equivalents 22,588 31,066
25,249 34,780
Total Assets 120,724 152,520
Current Liabilities
Trade and other payables 1,044 682
Lease Liabilities 6 30
1,050 712
Non-Current Liabilities
Deferred tax liabilities 9 9
Financial liabilities 945 934
Lease Liabilities - -
Provision for carried interest 3,942 11,288
4,896 12,231
Total Liabilities 5,946 12,943
Net Assets 114,778 139,577
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)
Non-controlling interest - -
Retained earnings 15,630 40,429
114,778 139,577
Basic and diluted NAV per share 5 85p 104p
The financial statements were approved and authorised for issue by the board
of directors on 21 September 2022, and were signed on its behalf by:
Lloyd Smith
Director
Accounting policies and notes on pages 21 to 30 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 2022
Non- Controlling Interest
Share Share Merger Reserve £'000 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
Profit 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
Non- Controlling Interest
Share Share Merger Reserve £'000 Retained
Capital Premium £'000 Earnings Total
£'000 £'000 £'000 £'000
Balance at 1 January 2021 - - 49,372 20,368 11,962 81,702
Profit for year attributable to equity holders - - - - 13,009 13,009
Share capital issuance 50 - - - - 50
Change in merger reserve arising on reorganisation - - 28,101 (20,368) (317) 7,416
Balance at 30 June 2021 (restated) 50 - 77,473 - 24,654 102,177
Accounting policies and notes on pages 21 to 30 form part of these financial
statements.
Forward Partners Group Plc
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 30 June 2022
30.06.22 30.06.21
Note £'000 £'000
Cash flows from operating activities
(Loss)/Profit before tax (24,928) 13,009
Adjustments to reconcile operating profit to net cash flows used in operating
activities
Revaluation of investments held at fair value through the profit and loss 28,010 (18,513)
Loss on disposal of fixed assets 41 -
Depreciation and amortisation 56 99
Share-based payments 129 -
Finance expense 82 3
Decrease in trade and other receivables 692 274
Increase in loans receivable 358 -
Decrease in trade and other payables (6,981) 3,729
Net cash used in operating activities (2,541) (1,399)
Tax received/(paid) - -
Net cash outflows from operating activities (2,541) (1,399)
Cash flows used in investing activities
Purchase of investments (6,294) (6,088)
Proceeds from disposals 463 34
Purchase of property, plant and equipment (11) (8)
Net cash outflows from investing activities (5,842) (6,063)
Cash flows used in financing activities
Proceeds from borrowings 11 -
Interest paid (82) -
Repayments of leasing liabilities (24) (90)
Change in investment in Fund I & II - 7,416
Gross proceeds from issue of share capital - 50
Net cash (outflow)/inflow from financing activities (95) 7,376
Net decrease in cash and cash equivalents (8,478) (86)
Cash and cash equivalents at beginning of year 31,066 503
Cash and cash equivalents at end of year 22,588 417
Accounting policies and notes on pages 21 to 30 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 2022, were authorised for issue in accordance with a resolution of the
directors on 21 September 2022. 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 2022 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 2021.
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 2021. 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 2022, but do not have an impact
on the interim condensed consolidated financial statements of the Group.
2. REVENUE
30.06.22 30.06.21
£'000 £'000
Fees on Advances 259 -
Investment Fees 27 11
From external customers 81 452
Total revenue 367 463
3. SEGMENT INFORMATION
The following tables present revenue and profit information for the Group's
operating segments for the six months ended 30 June 2022 and 2021,
respectively:
Year ended 30 June 2022 Revenue Depreciation Operating Net Profit/(loss) Taxation Deferred Profit/(loss)
profit/(loss) interest before tax taxation after tax
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Advances 259 (10) (1,356) (82) (1,438) - - (1,438)
Studio* 81 (38) (104) - (104) - - (104)
Ventures** (28,024) (8) (30,082) - (30,082) - - (30,082)
(27,684) (18) (31,542) (82) (31,624) - - (31,624)
Forward Partners Group Plc - - 6,696 - 6,696 - - 6,696
Total (27,684) (56) (24,846) (82) (24,928) - - (24,928)
Year ended 30 June 2021 Revenue Depreciation Operating Net Profit/(loss) Taxation Deferred Profit/(loss)
profit/(loss) interest before tax taxation after tax
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Advances - - - - - - - -
Studio 452 (2) (15) - (15) - - (15)
Ventures* 18,524 (97) 16,983 (3) 16,980 - - 16,980
18,976 (99) 16,968 (3) 16,965 - - 16,965
Forward Partners Group Plc - - (3,956) - (3,956) - - (3,956)
Total 18,976 (99) 13,012 (3) 13,009 - - 13,009
*The Studio design services were also utilised by the Advances segment
throughout the first part of 2021 until it became an operating subsidiary of
the Group.
**The Advances segment was held as an investment up to 18 July 2021. On 19
July 2021 the Advances segment became an operating subsidiary of the Group.
The table below shows assets and liabilities by subsidiary, exclusive of
inter-company balances, as at 30 June 2022 and 31 December 2021, respectively:
Non-current Non- current Current Total Current Non-current Total Net
As at 30 June 2022 asset assets assets assets liabilities liabilities liabilities operating
additions assets
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Advances - 70 3,377 3,447 (120) (946) (1,066) 2,381
Studio 4 10 307 317 (201) (2) (203) 114
Ventures 6,302 94,895 3,971 98,866 (404) (5) (409) 98,457
6,306 94,975 7,655 102,630 (725) (953) (1,678) 100,952
Forward Partners Group Plc - 500 17,594 18,094 (325) (3,943) (4,268) 13,826
Total 6,306 95,475 25,249 120,724 (1,050) (4,896) (5,946) 114,778
Net assets 114,778
Non-current Non- current Current Total Current Non-current Total Net
As at 31 December 2021 asset assets assets assets liabilities liabilities liabilities operating
additions assets
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Advances 85 76 4,823 4,899 (97) (935) (1,032) 3,867
Studio - 37 396 433 (294) - (294) 139
Ventures 11,907 117,627 404 118,031 (229) - (229) 117,801
11,992 117,740 5,623 123,363 (620) (934) (1,554) 121,807
Forward Partners Group Plc - - 29,157 29,157 (92) (11,296) (11,387) 17,770
Total 11,992 117,740 34,780 152,520 (712) (12,231) (12,942) 139,577
Net assets 139,577
4. FINANCIAL ASSETS AND LIABILITIES
The carrying amounts of financial assets and financial liabilities in each
category as at 30 June 2022 and 31 December 2021 are as follows:
Year ended 30 June 2022 Amortised Cost
£'000 FVPL Total
£'000 £'000
Financial Assets
Non-current financial assets - 95,377 95,377
Current financial assets 1,031 915 1,946
Trade and other receivables 715 - 715
Cash and cash equivalents 22,588 - 22,588
24,334 96,292 120,626
Financial liabilities
Trade and other payables 1,044 - 1,044
Lease liabilities 6 - 6
Deferred tax 9 - 9
Non-current financial liabilities 945 3,942 4,887
( ) 2,004 3,942 5,946
Year ended 31 December 2021 Amortised Cost
£'000 FVPL Total
£'000 £'000
Financial Assets
Non-current financial assets - 117,597 117,597
Current financial assets 1,499 804 2,303
Trade and other receivables 1,408 - 1,408
Cash and cash equivalents 31,066 - 31,066
33,973 118,401 152,374
Financial liabilities
Trade and other payables 679 - 679
Lease liabilities 30 - 30
Deferred tax 9 - 9
Non-current financial liabilities 934 11,288 12,222
( ) 1,652 11,288 12,940
The methods used to measure financial assets and liabilities reported at fair
value are consistent with those used as part of the 31 December 2021
accounts.
Non-current financial assets include £0.5m pertaining to the value of the
carried interest partner holdings.
Current financial assets relate entirely to loans receivable by the Group. At
30 June 2022 there were £339k (2021: £256k) impaired loans receivables.
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.
Non-current financial assets 31.12.21
30.06.22 (audited)
£'000 £'000
At 1 January 117,597 86,625
Additions 6,294 11,899
Realisations (504) (8,174)
Unrealised gains on the revaluation of investments (28,010) 27,247
At 30 June/31 December 95,377 117,597
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 the
profit & 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 Valuation (IPEVCV) guidelines December 2018 as well as the IPEV Board,
Special Valuation Guidance issued on 31 March 2020 in response to the Covid-19
crisis as described in the accounting policies and significant accounting
judgements sections of this report.
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 the profit or loss
30 June 2022 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Non-current 617 - 94,760 95,377
Current - - 915 915
617 - 95,675 96,292
31 December 2021 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Non-current 4,869 - 112,728 117,597
Current - - 804 804
Total 4,869 - 113,532 118,401
Financial liabilities - interest-bearing loans and borrowings
30 June 2022 Interest rate Maturity 30.06.22
% £'000
Current interest-bearing loans and borrowings
Lease liabilities 4.50% 2022 6
Total current interest-bearing loans and borrowings 6
Non-current interest-bearing loans and borrowings
Secured bank loan 11.75% 2024 945
Total non-current interest-bearing loans and borrowings 945
Total interest-bearing loans and borrowings 951
31 December 2021 Interest rate Maturity 31.12.21
% £'000
Current interest-bearing loans and borrowings
Lease liabilities 4.50% 2022 30
Total current interest-bearing loans and borrowings 30
Non-current interest-bearing loans and borrowings
Secured bank loan 11.75% 2024 934
Total non-current interest-bearing loans and borrowings 934
Total interest-bearing loans and borrowings 964
Secured bank loan
The loan is a £5.0m revolving facility provided by Triple Point Advancr
Leasing PLC under an agreement signed on 15 July 2021. The loan is repayable
on the third anniversary of the loan, by 15 July 2024. The loan can only be
used to finance loans made by Forward Partners Venture Advance Limited to
customers up to a maximum of 80% of the origination value.
The facility is secured by a fixed and floating charge over the Group's
subsidiary, Forward Partners Venture Advance Limited in favour of Triple Point
Advancr Leasing Plc.
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.
30.06.2021
30.06.2022 (restated)
Profit/(loss) attributable to equity holders of the Group (£'000) (24,928) 13,009
Weighted average number of ordinary shares in issue 134,613,117 134,613,117
Basic earnings per share (pence per share) (19) 10
The basic and diluted EPS are the same as there are no dilutive financial
instruments.
31.12.2021
30.06.2022 (audited)
Net assets (£'000) 114,778 139,577
Weighted average number of ordinary shares in issue 134,613,117 134,613,117
NAV* per share (pence per share) 85 104
*NAV (Net Asset Value)
6. RESTATEMENT OF PRIOR YEAR INTERIM BALANCES
Forward Partners Group plc holds investments in Forward Partners 1 L.P.,
Forward Partners II L.P., and Forward Partners III L.P. which was acquired in
mid-2021. In preparing the 2021 interim financial information, these
investments were accounted for under the acquisition method under IFRS 3. At
year end, it was noted that these investments should have been accounted for
under merger accounting. Prior year interim balances have been restated to
reflect the correct accounting treatment, including an adjustment to
reclassify the value of carried interest from the funds.
In addition, prior year consolidated balances included Forward Partners
Venture Advance Ltd ("Forward Advances") which was acquired by the Group on 19
July 2021. The restated consolidated balances for June 2021 have excluded any
amounts from Forward Advances.
The following tables shows the impact of the correction of accounting for
investments held from acquisition accounting to merger accounting on the June
2021 Statement of Comprehensive Income and Statement of Financial Position.
Consolidated Statement of Comprehensive Income 30.06.2021 Restatements/ Adjustments 30.06.2021
(unaudited) £'000 (restated)
£'000 £'000
Fair value change in gains on investments held at fair value through the 14,573 3,940 18,513
profit and loss
Revenue 1,404 (941) 463
Other income 228 (228) -
Total Income 16,205 18,976
Administrative expenses (2,260) 351 (1,909)
Carried interest charge - (3,956) (3,956)
Depreciation and amortisation (16) (83) (99)
Total Operating Expense (2,276) (5,964)
Profit from operations 13,929 - 13,012
Finance costs - (3) (3)
Profit before taxation 13,929 13,009
Corporation tax expense - -
Profit for the year after tax attributable to owners of the parent 13,929 13,009
Other comprehensive income - -
Total comprehensive income attributable to owners of the parent 13,929 13,009
Consolidated Statement of Financial Position 30.06.2021 31.12.21 30.06.2021
(unaudited) (restated)
£'000 £'000
Non-Current Assets
Intangible assets 1,210 (1,210) -
Financial assets held at fair value through the profit or loss 98,936 12,254 111,190
Property, plant and equipment 50 (12) 38
Right of Use Asset 119 8 127
100,315 111,355
Current Assets
Trade and other receivables 321 (12) 309
Current Financial assets held at FVPL 2,438 (2,438) -
Cash and cash equivalents 412 5 417
3,169 726
Total Assets 103,484 112,081
Current Liabilities
Trade and other payables 1,242 (1,056) 186
Lease Liabilities < 1yr 118 - 118
1,360 304
Non-Current Liabilities
Deferred tax liabilities 6 - 6
Provision for carried interest - 9,594 9,594
6 9,600
Total Liabilities 1,366 9,904
Net Assets 102,118 102,177
Capital and reserves attributable to equity holders of the Group
Called up share capital 981 (931) 50
Share premium account 75,936 (75,936) -
Non-controlling interest 20,368 (20,368) -
Merger reserve - 77,473 77,473
Retained earnings 4,835 19,819 24,654
102,120 102,177
7. DIVIDENDS
No dividends were paid during the year (2021: Nil).
8. RELATED PARTY DISCLOSURES
Transactions with key management personnel
During the period, key management invoiced the group NIL for consultancy
services (2021: £10k). The amount owed to key management at the balance sheet
date is NIL (2021: 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 2022 and 2021 were
as follows:
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
Period ended 30.06.21
Short term employee benefits Post-employment benefits Total
Salary Benefits Pension
£'000 £'000 £'000 £'000
Executive directors 182 5 10 197
Other Group entity directors 180 - 5 185
Total 362 5 15 382
The remuneration of the non-executive directors was as follows:
30.06.22 30.06.21
£'000 £'000
Total 95 32
During the six-months period, Jonathan Mckay Management LLP, a service company
of the Chairman, invoiced the Group NIL (2021 - £10k) for consultancy
services. The amount owed to Jonathan Mckay Management LLP at the balance
sheet date is NIL (2021 - NIL).
The Group operates a carried interest scheme. The senior management and
related parties were entitled to Carried interest of £4,548,755 (2021:
£1,845,732). 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.
9. ULTIMATE CONTROLLING PARTY
Forward Partners Group Plc, incorporated in England and Wales, is the ultimate
parent company of the Group. The ultimate beneficiary, and the largest
shareholder is Blackrock International Limited, which holds 70.4% of the
issued share capital of Forward Partners Group Plc.
10. EVENTS AFTER THE REPORTING DATE
On 24 August 2022 the Group commenced the wind down of Forward Partners
Venture Advance Ltd. The entity is expected to continue to operate for the
purposes of recovering its receivables and settling creditor balances.
No further 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 year ended 31 December 2021
DIRECTORS: Matthew Bradley (resigned 7 June 2022)
Nicholas Brisbourne
Susanne Given
Jonathan Mckay
Christopher Smith
Lloyd Smith (appointed 21 March 2022)
SECRETARY: Allen Browning (resigned 7 June 2022)
Lloyd Smith (appointed 7 June 2022)
REGISTERED OFFICE & BUSINESS ADDRESS Huckletree Shoreditch, Alphabeta Building, 18 Finsbury Square, London, EC2A
1AH
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
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