REG - Puma Alpha VCT PLC - Half-year Report
25/11/2022 17:45
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RNS Number : 6907H Puma Alpha VCT PLC 25 November 2022
Highlights
· Over £6.5m of new shares issued during the period
· Successful exit of investment in Tic Trac, realising a 1.9x
return on funds invested
Chairman's Statement
Your Board is pleased to present the half-yearly report for Puma Alpha VCT plc
('the Company') for the period to 31 August 2022.
Fundraising
We are happy to report that at the period end the Company received shareholder
approval to allow the VCT to raise further funds. This will allow the VCT to
add further diversification, spread fixed costs over a wider base and
crucially, exploit investment opportunities arising from the current economic
environment.
Despite this being a time of great uncertainty, the Company's offer of tax
advantaged investment into well-run, innovative, scale-up businesses is
chiming with investors. As a recently established VCT, unburdened by a high
proportion of assets in an illiquid legacy portfolio, Puma Alpha VCT can
respond with agility to the economic environment. There is an opportunity now
to invest into businesses that have proven they can withstand the pandemic,
and will be valued more advantageously than in recent years
We believe the Company's sector agnostic investment mandate and ability to
co-invest with other Puma funds has also resonated with investors. This
combination delivers portfolio diversification and enables swifter deployment
of funds, giving investors access to a wider pool of investments.
Investment Portfolio
Since the last report and accounts, the Company has made one new investment of
£0.50m into MUSO, an antipiracy software company servicing media companies,
and follow-on investments to Dymag, Le Col and Everpress (all alongside other
Puma managed funds).The Company has over 73% of its current NAV invested in
qualifying investments and with additional funds now being raised, the Company
will be in a position to take advantage of the better entry valuations
provided by the current environment.
Cameramatics has been a notable performer, recording a strong year of trade
and positive momentum in gaining significant contract wins which has
contributed to an increase in the NAV of the company. During the period, the
Company sold its position in TicTrac to realise a 1.9x return on total funds
invested. The Investment Manger continues to see a good number of potential
opportunities a year. Allocation of non-qualifying holdings will continue to
be considered by the Investment Manager as appropriate.
Net Asset Value
The Company's NAV stood at 126.13p at the period end of 31 August 2022. This
represents a downward revaluation of -£0.9m in the valuation of the
investment portfolio for the period under review, a reflection of the
challenges faced by the portfolio companies in the current environment. The
Company has not to date held listed equities or other liquidity management
tools outside cash, so has not suffered from the associated volatility.
VCT Qualifying Status
PricewaterhouseCoopers LLP ("PwC") provides the Board and the Investment
Manager with advice on the ongoing compliance with HMRC rules and regulations
concerning VCTs and has reported no issues in this regard for the Company to
date. PwC and other specialist advisors will continue to assist the Investment
Manager in establishing the status of potential investments as qualifying
holdings. PwC will continue to monitor rule compliance and maintaining the
qualifying status of the Company's holdings in the future.
Outlook
Market conditions and investor sentiment continue to be badly impacted by a
combination of geo-political events, especially the war in Ukraine, and a
global economic downturn. This has been exacerbated by an unstable political
and economic environment in the UK where the policy framework to deliver
growth is not fully settled. This has led to an increase in uncertainty and
volatility coupled with a reduction in liquidity and activity. Rapidly rising
inflation, especially in the energy sector, will inevitably lead to continued
upward pressure on interest rates and/or pressure on governments to reduce
spending, and markets are still adjusting to this change in conditions.
Nevertheless, difficult conditions always present opportunities for agile
businesses focused on resilient sectors. This VCT is in a position to adapt
quickly to a volatile economic environment when developing its portfolio.
Notwithstanding the many short-term uncertainties, the UK continues to benefit
from an active and well-established SME market in which the Manager has a
strong reputation as a provider of capital. This applies especially to
well-managed, later-stage SMEs where bank lending, despite some policy
support, continues to remain challenging for even the best of these
businesses. This, alongside the institutional support the Manager is able to
offer, continues to make for a compelling equity offer from the Company. The
ongoing uncertainty and volatility place added emphasis on the Company's
ability to focus efforts on sectors that are well placed to navigate the
current headwinds. We are confident that we have the team to do this and
assemble a portfolio capable of delivering attractive returns to shareholders.
Egmont Kock
Chairman
25 November 2022
INVESTMENT MANAGER'S REPORT
Investments
Qualifying Investments
Deazy
Deazy is a platform that enables enterprise and PE/VC backed growth companies
to hire high quality software developers, through intelligently matching
developers with project requirements. Founded in 2016, Puma Funds invested
£5m of equity into Deazy in December 2021, to enable the business to scale
its commercial teams, so that it could accelerate its growth plans.
Deazy has concentrated its efforts on scaling the growth team and tightening
the focus of its target market. The benefits of these initiatives are starting
to deliver positive results for the company. Deazy continues to drive value
from its existing customers and is exploring how it can solve more pain points
for its customers going forward.
Deazy has been accepted into Tech Nation's Upscale 8.0 programme which helps
the UK's most promising tech companies to accelerate their growth and unlock
the key to scaling successfully. In addition, Deazy has been accepted onto
Boardwave - the leading community of software leaders. The company has also
been shortlisted for a number of awards this year including:
· Finalist for the Great British Entrepreneurs Awards -
· UK IT Awards Finalist (Innovation and Entrepreneurship category) -
· Awarded LDC 'Ones to watch' (part of 'Top 50 Most Ambitious
Entrepreneurs').
Our investment view
"Deazy continues to scale its revenues and we have worked closely with the
company to
refine its strategy to accelerate this growth. Deazy has enhanced its
organisation structure, thereby, putting the company into a strong position to
scale off for the year ahead."
Kelvin Reader
Investment Manager, Puma Private Equity
31 August 2022 28 February 2022
Total investment from Puma funds £5.00m £5.00m
Alpha VCT investment participation £1.00m £1.00m
Equity Valuation £1.00m £1.00m
MOIC (Multiple of Investment Cost) 1.00x 1.00x
Everpress
Everpress is an online platform that connects consumers to unique and
sustainable products from independent designers. It started with a simple
mission - to support grassroots creators and reduce waste in fashion. Today,
it provides a full-service solution through which creators can upload their
designs and create campaigns - using the platform's toolkit to choose garment
types, sale duration and prices - before launching to a global audience via
Everpress' website. Campaigns are run on a pre-order basis and garments are
only produced once purchased, eliminating excess stock and wastage.
Everpress is well-placed to capitalise on market trends such as the growth of
online shopping, which has been accelerated by the pandemic, along with
increasing awareness of ethical fashion and consumers' desire to support
grassroots businesses. Everpress delivered its best ever campaign in June 22
working alongside a top creator to raise awareness of Pride with the creator
donating their proceeds from the campaign to charity.
Everpress has also recently received confirmation that it is now a B Corp
having recently received its final accreditation after three years work.
Our investment view
"By providing a premium service and sustainable offering, Everpress continues
to attract top tier creators across a range of industries who see the platform
as a valuable part of their own fan engagement strategy. Consumer confidence
does remain low which will impact discretionary spending, however the
management team has reacted quickly and positively to the changing environment
to deliver long term stability for the company"
Ben Leslie
Investment Manager, Puma Private Equity
31 August 2022 28 February 2022
Total investment from Puma funds £6.34m £3.20m
Alpha VCT investment participation £2.10m £0.90m
Equity Valuation £2.10m £0.90m
MOIC (Multiple of Investment Cost) 1.00x 1.00x
Le Col
Le Col has a very clear ambition to be the pre-eminent performance cycling
apparel company in the world. Founded by former professional cyclist Yanto
Barker, Le Col is based in the UK and exports to 65 countries and operates a
factory in Italy which enables control of its manufacturing and supply chain.
2022 has been, and continues to be, a very challenging trading environment for
ecommerce brands, with Le Col's domestic UK market being particularly
impacted. After strong 65% year-on-year growth for Le Col in 2021, it has had
to work hard against serious headwinds to maintain revenues in 2022 at just
below the prior year, whilst also managing increased supply
chain & operating costs.
Puma VCT 13 and Puma Alpha VCT have provided Le Col with an additional
substantial investment that allows Le Col to continue its growth objectives
despite the economic climate, in particular US growth which continues to be
positive year-on-year, along with further expansion into Marketplaces and
Retail distribution.
The majority of this latest investment came from Puma VCT 13 with additional
participation from Puma Alpha VCT. This has allowed Puma VCT 13 to increase
its share of proceeds. However, Puma Alpha VCT has been diluted by the
additional funds received from Puma VCT 13 resulting in a decrease in its
share of proceeds at these valuations.
Le Col continues to be a great British success story that's grown fast to take
a leading position in performance cycle wear in the market. This year Le Col
launched its new World Tour Team sponsorship with BORA- Hansgrohe. Team BORA -
Hansgrohe had early success in the cycling 2022 season with Jai Hindley
winning the Giro. Le Col also continued
to sponsor female cycling team, Team Le Col Wahoo, who took part in the
inaugural Tour de
France Femmes avec Zwift in 2022.
Le Col has also recently expanded its clothing range with the addition of
sports shorts and t-shirts. Lightweight, sweat-wicking and breathable, the Le
Col workout collection uses performance fabrics so that users stay dry during
their workouts.
Our investment view
"The cost-of-living crisis remains challenging for online, direct to consumer
focused businesses. We are confident that the brand Le Col has built, and its
positioning in the performance cycling apparel market, will stand the Company
in good stead to weather the difficult macro environment."
Harriet Rosethorn
Investment Manager, Puma Private Equity
1
https://www.cyclist.co.uk/news/8285/cycling-has-increased-by-200-since-lockdown-government-reports
(https://www.cyclist.co.uk/news/8285/cycling-has-increased-by-200-since-lockdown-government-reports)
31 August 2022 28 February 2022
Total investment from Puma funds £8.88m £6.35m
Alpha VCT investment participation £1.22m £0.72m
Equity Valuation £2.22m £2.48m
MOIC (Multiple of Investment Cost) 1.82x 3.45x
CameraMatics (formerly known as MySafeDrive Limited)
CameraMatics provides award-winning fleet risk management solutions for
businesses, designed from a deep understanding of the customer's need. Working
across Ireland, the UK and US, the business is positioned at the forefront of
fleet and vehicle safety technology. Its disruptive solution incorporates
artificial intelligence, machine learning, camera technology, vision systems
and telematics to help fleet operators reduce risks and drive new safety
standards.
Since the implementation of the Direct Vision Standard (DVS) in the UK, which
assesses how much an HGV driver can see directly through windows, CameraMatics
has seen an uptick in sales.
Similar DVS initiatives are being launched across the US and this is helping
to drive product awareness and adoption. The company is currently undergoing
several pilot projects with large logistics firms in the UK and the US, each
of which has the potential to lead to very large customer contracts.
The company has been recognised for its performance; CameraMatics' CEO, Mervyn
O'Callaghan, was chosen by the Irish government body, Enterprise Ireland, as
their High Potential Start Up (HPSU) Founder of the Year 2021.
Our investment view
"CameraMatics has established well in the UK and Ireland and has some
fantastic growth opportunities in the US. Macroeconomic Mega-trends such as
ESG awareness and road safety are interacting extremely positively with
CameraMatics' core product leading to a potentially exciting year ahead."
Jonathan Wyles
Investment Director, Puma Private Equity
31 August 2022 28 February 2022
Total investment from Puma funds £4.72m £4.72m
Alpha VCT investment participation £1.59m £1.59m
Equity Valuation £4.46m £3.89m
MOIC (Multiple of Investment Cost) 2.80x 2.44x
Dymag
Dymag is a British designer and manufacturer of high performance car and
motorbike wheels, which was founded in 1974 by Max Bostrom. The company has
been making carbon motorcycle wheels since 1995, and carbon-hybrid automotive
wheels since 2004, and considers itself a racing and road pioneer. The
business continues to grow its presence, both in aftermarket wheels using
relationships with several leading US distributors, and through project work
with several leading performance "original equipment manufacturers" (OEMs).
Dymag has faced challenges during the pandemic with its operating environment
and production capacity, but nonetheless, sales have grown substantially from
prior years, with the company recording a 22% year-on-year increase in revenue
to date in 2022. This follows a 70% increase in revenue in 2021. The
company's three major revenue lines (carbon auto barrels sold to distributors,
carbon wheels sold directly to niche OEMs and Tuners, and aluminium motorcycle
wheels) have all grown strongly over the period.
Further, increased marketing efforts have led to a growing sales pipeline and
a substantial confirmed order book. Margin improvement, however, remains
challenging and the company has further to go to establish a consistent
level of profitability.
Dymag is in an attractive and expanding market with a technically advanced
product with large barriers to entry. The evidence of wider market adoption of
carbon technology continues apace, as does the market's willingness to value
carbon wheel manufacturers. The business remains capital intensive and so, in
order to build on the progress that the business has achieved to date, post
period end the Company invested a further £0.4m into Dymag.
Our investment view
"Dymag has consistently grown production capacity in a difficult operating
environment leading to the growth in revenues in past periods. Demand remains
strong for Dymag's core product, especially in the US - the company is
investing in people and capacity to fulfil this demand. We expect the growth
in revenue to continue over the next year."
Jonathan Wyles
Investment Director, Puma Private Equity
31 August 2022 28 February 2022
Total investment from Puma funds £9.60m £8.00m
Alpha VCT investment participation £1.53m £1.13m
Equity Valuation £1.56m £1.18m
MOIC (Multiple of Investment Cost) 1.02x 1.04x
Ron Dorff
Ron Dorff is a well-respected premium bodywear brand, having been awarded Best
Sportswear Brand of 2022 by the Robb Report, and one of the top 10 underwear
brands for men by GQ Magazine. It counts Tom Daley and Michael Fassbender
amongst others, as brand ambassadors. It also recently launched a
collaboration with Neil Patrick Harris with the Dad/Papa capsule collection.
Having launched in 2012, Ron Dorff has six own-brand stores between London,
Paris, New York, Fire Island and Berlin, and a network of high-end wholesale
partners globally. It runs an 'omnichannel' sales approach, using its stores
and wholesale partners to support significant sales through its own website,
with sales to over 80 countries.
Trading has bounced back strongly following two years of disruption and
lockdowns delivering strong revenue growth in the period.
The company has recruited strongly following our investment hiring a new COO,
CMO and Wholesale Director in the last 12 months.
Our investment view
"Ron Dorff continues to perform positively demonstrating the quality of the
products which strongly resonates with the core customer base. The management
team remain the driving force behind the brand successfully breaking into the
US with two store openings and launching A-list collaborations that both
extend the brands reach and drive- up brand equity."
Ben Leslie
Investment Manager, Puma Private Equity
31 August 2022 28 February 2022
Total investment from Puma funds £5.27m £5.27m
Alpha VCT investment participation £1.08m £1.08m
Equity Valuation £1.40m £1.48m
MOIC (Multiple of Investment Cost) 1.30x 1.35x
Connectr
Connectr is an award-winning HR Tech Platform that enables employers to
attract, hire and retain underrepresented talent, delivering improvements in
diversity and inclusion for the employer and improving social mobility in the
wider workforce as a result.
Connectr's digital mentoring platform is a scalable digital solution for
career development. The platform is well-suited to the distanced working
practices which continue to be widespread even after the pandemic's
restrictions have eased. Trading throughout the period for both digital and
in-person services has been strong.
Customers include some of the world's most influential companies including
Deloitte, Cisco, the NHS, Thalys, Vodafone and National Grid to help recruit
young people from a wider range of social backgrounds than typically
achieved through traditional channels.
Connectr recently won "Innovation of the Year" category at the British HR
Awards and was awarded "Highly commended" for Candidate Experience solution at
the TIARA Talent Tech Stars awards.
Our investment view
"In the current economic climate, employers are acutely aware of the need to
attract, retain and engage talent. Connectr's dual product offering for
candidates and employees positions the company strongly to meet the needs of
their customers as their own strategy evolves through recruitment and
retention cycles. The wider people tech space remains buoyant and there are a
number of possible routes available to the company as it grows."
Ben Leslie
Investment Manager, Puma Private Equity
31 August 2022 28 February 2022
Total investment from Puma funds £8.70m £8.70m
Alpha VCT investment participation £1.65m £1.65m
Equity Valuation £2.37m £2.78m
MOIC (Multiple of Investment Cost) 1.44x 1.68x
MUSO TNT Limited
MUSO is a data company that provides a complete and trusted view of global
piracy and unlicensed media consumption. MUSO's technology measures hundreds
of billions of visits to piracy websites each year and provides unrivalled
consumption and audience data that allows rights-holders to better protect
their content from piracy but also increase their revenues. This data is used
by companies across the media and entertainment space to protect their
existing IP, develop and execute market-leading content strategies and connect
with audiences of unlicensed content.
Demand for MUSO's data is being driven by a 25% increase in general digital
piracy year-on-year, when comparing H1 of 2021 to H1 of 2022.
In a recent update, CEO Andy Chatterley stated that that company now measures
piracy across 388,000 TV and film titles on the torrent network and unlicensed
streaming websites. In the first six months of 2022, the company tracked more
than 105 billion visits to piracy websites, and TV consumption accounts for
47.1% of its total numbers.
It's unique and transformative data is fast becoming a must have data-currency
for entertainment companies and is already used by the likes of Amazon
Studios, National Association of Theatre Owners (NATO), NOS, Lionsgate, MNRK
(formally eOne Music), Sony Interactive Entertainment Europe, and more.
Our investment view
"With growth in piracy continuing, media and entertainment companies are
actively seeking to understand audience consumption habits and protect their
existing IP. MUSO's rich data set has unparalleled reach and, having been
built over a number of years, a wealth of historical data in which to assess
trends. Its client list is testament to this, and we are confident that the
business will continue to attract and retain the leading names in the media
and entertainment space."
Harriet Rosethorn
Investment Manager, Puma Private Equity
31 August 2022 28 February 2022
Total investment from Puma funds £3.20m -
Alpha VCT investment participation £0.50m -
Equity Valuation £0.50m -
MOIC (Multiple of Investment Cost) 1.00x -
Ostmodern
Ostmodern has been at the forefront of innovation in digital product
development for over 10 years, creating video platforms for some of the
world's leading media, broadcast and sport brands, including Formula One (F1).
Drawing on this expertise, Ostmodern developed their own powerful media CMS
platform, Skylark, which they are now selling independently of their
consultancy services.
The company has reorganised the Skylark team and has brought in a new Managing
Director for Skylark. The new Managing Director has taken ownership of the
Skylark division and has adapted the go-to-market strategy to focus on
partnerships with agencies and complementary technology solutions. The Skylark
product continues to evolve making it easier to integrate with complementary
technology solutions, thereby, making it more attractive for partners to work
with Skylark.
The services side of the business has brought in a new Head of Client Growth
to drive new client growth and develop revenue expansion with existing
customer relationships.
Our investment view
"The company has faced challenges in scaling Skylark over the past year. We
have worked closely with management to respond to some of the challenges faced
and are encouraged by the decision to bring in a new Managing Director of
Skylark. We have already seen positive developments resulting from this
decision. In the current macroeconomic environment, the Board is focused on
driving the overall business to profitability."
Kelvin Reader
Investment Manager, Puma Private Equity
31 August 2022 28 February 2022
Total investment from Puma funds £2.00m £2.00m
Alpha VCT investment participation £0.90m £0.90m
Equity Valuation £0.68m £0.92m
MOIC (Multiple of Investment Cost) 0.76x 1.02x
Tictrac Exit
Tictrac provides large enterprises, including blue-chip insurance companies
and health organisations, with software and services that allow businesses to
learn more about their customer and employee's health and wellbeing. Puma
exited the investment in May 2022 as part of an acquisition by Canada's
Dialogue Health Technologies, that provided a 1.9x money multiple and 37%
internal rate of return on investment.
The initial investment was completed around two weeks after the first wave of
Covid hit the UK, just as the country was entering its lockdown period. Puma
Private Equity worked with the Company across a turbulent macro environment to
deliver an attractive exit for its stake.
Puma Private Equity worked in partnership with the Tictrac team throughout the
period of investment, helping them execute a number of their strategic
ambitions, including:
· Helping management across all key hires
· Helping the company define and refine the strategy, including
assessing and testing additional sales channels for the company's technology
· Working with the company on building effective customer success
strategies, gathering the correct customer insights to ensure customer
satisfaction and retention
· Navigating the sales process with management and introducing them
to the advisor that led them through the process
Our investment view
"It's been an exciting journey supporting Tictrac over the past two years.
This type of business plays an increasingly important role in society,
especially as companies focus more on how they support the health and
wellbeing of their employees, something which has become even more relevant
through the pandemic. We have been consistently impressed with Tictrac's
ability to heighten health and wellbeing engagement, which in turn will help
alleviate some of the pressures our health services continue to face.
"We're pleased that Puma Private Equity has played a part in their growth, and
that we have been able to realise a fantastic return for our investors within
a relatively short space of time. We're committed to helping businesses
achieve their full potential - working in partnership with management to
unlock growth - and Tictrac is a fantastic example of this. This deal provides
a bigger home for the Tictrac solution, management and customers, and this
should be the start of an exciting new journey with Dialogue. We wish them the
very best of success."
Rupert West
Managing Director, Puma Private Equity
At exit 28 February 2022
Total investment from Puma funds £5.00m £5.00m
Alpha VCT investment participation £0.60m £0.60m
Equity Valuation £1.16m £1.15m
MOIC (Multiple of Investment Cost) 1.93x 1.92x
Investment Strategy
The Company is now invested into nine businesses across a diverse range of
sectors, and we hope to further diversify the portfolio over the coming
months. We remain focused on generating strong returns for the Company, whilst
balancing these returns with maintaining an appropriate risk exposure.
Overall, we are confident that the Company is well positioned to deliver
attractive returns to shareholders in the medium to long term.
Puma Investment Management Limited
25 November 2022
Income Statement (unaudited)
For the period ended 31 August 2022
Period ended Period ended Period ended
31 August 2022
31 August 2021
28 February 2022
Note Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
(Loss)/gain on investments - (918) (918) - 1,297 1,297 - 4,051 4,051
Income 15 15 6 6
15 (918) (903) - 1,297 1,297 6 4,051 4,057
Investment management fees 4 (53) (160) (213) (56) (98) (154) (71) (212) (283)
Performance fees 6 - - - - (26) (26) - (519) (519)
Other expenses (131) - (131) (98) - (98) (224) - (224)
(184) (160) (344) (154) (124) (278) (295) (731) (1,026)
Profit/(loss) before taxation (169) (1,078) (1,247) (154) 1,173 1,019 (289) 3,320 3,031
Taxation - - - - - - - - -
Profit/(loss) and total comprehensive income for the period (169) (1,078) (1,247) (154) 1,173 1,019 (289) 3,320 3,031
Basic and diluted
Profit/(loss) per Ordinary Share (pence) 2 (1.06p) (6.78p) (7.84p) (1.39p) 10.59p 9.20p (2.48p) 28.51p 26.03p
The total column of this statement is the profit and loss of the Company.
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the period.
Balance Sheet (unaudited)
As at 31 August 2022
Note 31 August 2022 31 August 2021 28 February 2022
£'000 £'000 £'000
Fixed Assets
Investments 7 16,279 10,301 15,753
Current Assets
Prepayments 590 67 124
Cash 6,080 4,421 1,980
6,670 4,488 2,104
Creditors - amounts falling due within one year (383) (137) (654)
Net Current Assets 6,287 4,351 1,450
Net Assets 22,566 14,652 17,203
Capital and Reserves
Called up share capital 179 119 126
Share premium account 1,277 11,741 12,271
Capital reserve - realised (439) (230) (836)
Capital reserve - unrealised 4,707 3,428 6,182
Revenue reserve 16,843 (405) (540)
Equity Shareholders' Funds 22,566 14,652 17,203
Net Asset Value per Ordinary Share 3 126.13p 120.86p 136.48p
Diluted Net Asset Value per Ordinary Share 3 126.13p 120.86p 136.48p
Cash Flow Statement (unaudited)
For the period ended 31 August 2022
Period ended Period ended Period ended
31 August 2022
31 August 2021
28 February 2022
£'000 £'000 £'000
Operating activities
Profit after tax (1,247) 1,019 3,031
Loss/(gain) on investments 918 (1,297) (4,051)
Increase in debtors (467) (39) (95)
(Decrease)/increase in creditors (272) 103 621
Net cash used in operating activities (1,068) (214) (494)
Cash flow from investing activities
Purchase of investments (2,600) (1,027) (3,725)
Proceeds from disposal of investments 1,157 - -
Net cash used in investing activities (1,443) (1,027) (3,725)
Cash flow from financing activities
Issue of shares 6,897 3,746 4,277
Share issue costs (286) (144) (138)
Net cash generated from financing activities 6,611 3,602 4,139
Net increase/(decrease) in cash and cash equivalents 4,100 2,361 (80)
Cash and cash equivalents at the beginning of the period 1,980 2,060 2,060
Cash and cash equivalents at the end of the period 6,080 4,421 1,980
Statement of Changes in Equity (unaudited)
For the period ended 31 August 2022
Called up share capital Share premium account Capital reserve - realised Capital reserve - unrealised Revenue reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
Balance as at 1 March 2021 86 8,172 (105) 2,131 (251) 10,033
Shares issued in the period 33 3,713 - - - 3,746
Expense of share issue - (144) - - - (144)
Total comprehensive income for the period - - (125) 1,297 (154) 1,018
Balance as at 31 August 2021 119 11,741 (230) 3,428 (405) 14,653
Shares issued in the period 7 524 - - - 531
Expenses of share issues - 6 - - - 6
Total comprehensive income for the period - - (606) 2,754 (135) 2,013
Balance as at 28 February 2022 126 12,271 (836) 6,182 (540) 17,203
Shares issued in the period 53 6,844 - - - 6,897
Expense of share issue - (286) - - - (286)
Shares premium cancelled in the period - (17,552) - - 17,552 -
Reclass realised gain on investments - - 551 (551) - -
Total comprehensive income for the period - - (154) (924) (169) (1,247)
Balance as at 31 August 2022 179 1,277 (439) 4,707 16,843 22,566
Notes to the Interim Report
For the period ended 31 August 2021
1. Accounting Policies
The financial statements have been prepared under the historical cost
convention, modified to include the revaluation of fixed asset investments,
and in accordance with applicable Accounting Standards and with the Statement
of Recommended Practice, "Financial Statements of Investment Trust Companies
and Venture Capital Trusts" ("SORP") and in accordance with the Financial
Reporting Standard 102 ("FRS102").
2. Return per Ordinary Share
The total loss per share of 7.84p is based on the loss for the period of
£1,247,000 and the weighted average number of shares in issue for the period
ended 31 August 2022 of 15,902,760.
3. Net asset value per share
As at 31 August 2022 As at 31 August 2021 As at 28 February 2022
Net assets 22,566,000 14,652,000 17,203,000
Shares in issue 17,891,434 12,122,822 12,604,822
Net asset value per share
Basic 126.130p 120.86p 136.48p
Diluted 126.130p 120.86p 136.48p
4. Management fees
The Company pays the Investment Manager an annual management fee of 2% of the
Company's net assets. The fee is payable quarterly in arrears. The annual
management fee is allocated 75% to capital and 25% to revenue.
5. Financial information provided
The financial information for the period ended 31 August 2022 has not been
audited and does not comprise full financial statements within the meaning of
Section 423 of the Companies Act 2006. The interim financial statements have
been prepared on the same basis as will be used to prepare the annual
financial statements.
6. Management Performance Incentive Arrangement
On 5 July 2019, the Company entered into an Agreement with the Investment
Manager such that they will be entitled to a performance incentive fee payable
in relation to each accounting period, subject to the Performance Value per
Share being at least 120p at the end of the relevant period. The amount of the
performance incentive fee will be equal to 20% of the amount by which the
Performance Value per Share at the end of an accounting period exceeds the
High Water Mark (being the higher of 120p and the highest Performance Value
per Share at the end of any previous accounting period), and multiplied by the
number of Shares in issue at the end of the relevant period.
The performance incentive structure provides a strong incentive for the
Investment Manager to ensure that the Company performs well, enabling the
Board to approve distributions as high and as soon as possible.
The accrued profit and loss expense for the period in relation to this
Agreement is £nil.
7. Investment portfolio summary
Valuation Cost Gain/(loss) Valuation as a % of Net Assets
As at 31 August 2022 £'000 £'000 £'000
Qualifying Investments
Ostmodern ('ABW Group Limited') 684 900 (216) 3%
Deazy Limited 1,000 1,000 - 4%
Dymag Group Limited 1,560 1,530 30 7%
Everpress Limited 2,100 2,100 - 9%
Le Col Holdings Limited 2,220 1,219 1,001 10%
Muso TNT limited 500 500 - 2%
Connectr Limited 2,373 1,650 723 11%
CameraMatics ('MySafeDrive Limited') 4,441 1,695 2,746 20%
Ron Dorff ('NQOCD Consulting Limited') 1,401 1,079 322 6%
Total Qualifying Investments 16,279 11,673 4,605 73%
Total Investments 16,279 11,673 73%
Balance of Portfolio 6,287 27%
Net Assets 22,566 100%
( )
Of the investments held at 31 August 2022, all are incorporated in England
and Wales.
Copies of this Interim Statement will be made available on the website:
http://www.pumainvestments.co.uk/pages/view/investors-information-vcts
(http://www.pumainvestments.co.uk/pages/view/investors-information-vcts)
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