Half-year Report
29/11/2022 17:42
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RNS Number : 9911H Puma VCT 13 PLC 29 November 2022
HIGHLIGHTS
· Return per share of 2.42p for the six months to 31 August 2022
· Successful exit of investment in Tic Trac, realising a 1.9x return on
funds invested
· £15.20m of new shares issued during the period
· Interim dividend of 5.5p per share declared, payable in December 2022
CHAIRMAN'S STATEMENT
Your Board is pleased to present the half-yearly report for Puma VCT 13 plc
('the Company') for the period to 31 August 2022.
FUNDRAISING
We are happy to report that following the period end, shareholder approval was
received to allow the VCT to raise further funds. This will put the VCT in a
strong position to exploit investment opportunities arising from the current
economic environment, add further diversification, and spread fixed costs over
a wider base. This VCT is now open for fund raising and the market reaction to
date has been positive.
INVESTMENT PORTFOLIO
Since the last report and accounts the Company has made one new investment of
£2.36m 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 68% of its current NAV invested in
qualifying investments, however, 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 economic environment.
Influencer has been a notable performer, recording an impressive year of trade
which has contributed to an increase in the NAV of the company. There has been
good performance and strong revenue growth widely across the portfolio, with
Cameramatics and Ron Dorff also notable.
During the period, the Company sold its position in TicTrac to realise a 1.9x
return on total funds invested. Your board expects a substantial portion of
the proceeds of this realisation to be paid out as a dividend, towards the end
of 2022.
NET ASSET VALUE
The Company's NAV stood at 136.33p at the period end of 31 August 2022. The
Company recorded a profit for the period of £1.1m. This arose from upward
revaluations across the majority of holdings - with particular increases in
relation to Influencer and Cameramatics. The Company continues to hold a
small proportion of its NAV in listed equities as part of its liquidity
management strategy, the valuation of which has now recovered after the
initial impact of the Covid-19 pandemic. Allocation of funds to such holdings
will continue to be considered by the Investment Manager as appropriate.
DIVIDENDS
The Company's stated intention is to pay annual dividends in the range of 4p
to 6p per share, subject to available distributable reserves and cash.
The Company paid a first interim dividend for the current year of 4.5p per
share in March 2022, and I am pleased to confirm that your Board is now
declaring a further interim dividend of 5.5p per share, taking total dividends
in the year to 10p, well ahead of the stated annual dividend target. The
further dividend has been declared in reflection of the successful exit of our
holding in TicTrac during the period, and approximates the distribution of the
proceeds from the exit. The dividend will be payable on 23 December 2022 to
shareholders on the register as at 9 December 2022.
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
The last two years have been challenging for business, as well as health
generally. As we exit the Covid environment we now face new challenges, with
global inflation, geopolitical tension, and extremely low consumer confidence.
But the businesses which withstood the challenges presented by the pandemic
have learned much from the experience and will understand how to benefit even
from tough environments. As demonstrated by the Company's own portfolio there
can be real successes in the aftermath of the pandemic. The manager who has a
strong reputation as a provider of capital to well managed, later stage
businesses, is very encouraged by the flow and quality of prospective
qualifying investments. A number of opportunities are currently in
consideration and we remain confident of meeting our ongoing qualifying
holding tests as a VCT, and delivering good returns for our shareholders.
David Buchler
Chairman
29 November 2022
INVESTMENT MANAGER'S REPORT
Investments
Qualifying Investments
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
VCT 13 investment participation £1.96m £1.96m
Equity Valuation £3.26m £2.83m
MOIC (Multiple of Investment Cost) 1.66x 1.45x
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
VCT 13 investment participation £2.90m £2.90m
Equity Valuation £2.90m £2.90m
MOIC (Multiple of Investment Cost) 1.00x 1.00x
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
VCT 13 investment participation £3.46m £2.26m
Equity Valuation £3.29m £1.78m
MOIC (Multiple of Investment Cost) 0.95x 0.78x
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.
Le Col's sales have grown strongly since the initial investment by Puma
managed funds - driven by a boom in sales owing to consumer trends and an
increased focus on exercise during the pandemic where levels of cycling in the
UK increased by 200%(1). Le Col's international presence is expanding, with
online sales growing in both the US and Europe, most notably in Germany,
France and Italy.
Le Col's kit is renowned for its performance credentials, and features across
the professional cycling arena. 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)
x
(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
VCT 13 investment participation £4.14m £2.52m
Equity Valuation £8.33m £5.05m
MOIC (Multiple of Investment Cost) 2.01x 2.00m
Hot Copper
Brewhouse & Kitchen is the largest brewpub brand in the UK, distinctive
for brewing their own unique craft beers onsite and running a participatory
experience with beer tasting and brewing masterclasses. The Company invested
into Knott End Pub Company ("Knott End") in 2017, as a franchisee to the
Brewhouse & Kitchen brand, to provide growth capital for the further
build-out of the overall Brewhouse & Kitchen branded estate.
In December 2020, Knott End was merged with two other Brewhouse & Kitchen
franchise companies into which other Puma managed funds had previously
invested. This resulted in the Company holding shares in Hot Copper Pub
Company Limited ("Hot Copper"), the company vehicle that led the merger. As a
result, it has exposure to a larger, more diverse, mostly freehold estate
underpinned by a substantial free-cash buffer.
The Hot Copper group has concentrated its efforts on underperforming sites,
with individual sites being allocated to senior managers to assist in
increasing the performance of these pubs. The Hot Copper group continues to
face a challenging trading environment with staff shortages, cost inflation
(wages and utilities) and the general cost of living pressure on its
consumers. The announcement (8 September 2022) from Government to cap average
energy bills for individuals and similar support for businesses is welcomed by
the industry, as this will reduce the impact of forecasted high energy
costs.
In a recent update, CEO Kris Gumbrell, stated that the Brewhouse & Kitchen
group was in "great health" with trading ahead of 2019 levels.
Our investment view
"Management has performed well in a challenging trading environment to put the
business in a good position to navigate future demanding trading conditions.
Management is focused on driving efficiencies in the business and capturing
further market share with some smaller providers expected to exit the market
due to adverse trading conditions."
Kelvin Reader
Investment Manager, Puma Private Equity
31 August 2022 28 February 2022
Total investment from Puma funds £20.20m £20.20m
VCT 13 investment participation £0.85m £0.85m
Equity Valuation £0.33m £0.27m
MOIC (Multiple of Investment Cost) 0.38x 0.32x
Influencer Holdings Limited
Influencer is a data-driven global influencer marketing business. Since the
company started in 2017, it has built an impressive client list including
Google, Amazon, Levi's, Starbucks, SharkNinja and PrettyLittleThing, and has
strong relationships with agencies MediaCom, Ogilvy and Havas.
Over the last year, Influencer's growth has continued. The Company has
launched offices in New York, Dubai and Manchester. It was also named as a
TikTok marketing partner, with Influencer gaining access to TikTok's
first-party data for its clients across their creator and paid advertising
campaigns.
The business continues to work with leading brands, post period end it has won
several new clients, including Polaroid, Vodafone, Aldi, Pernod Ricard, and
Randox Health.
In November 2022, Influencer launched its groundbreaking new app, Waves for
Creators. The new app perfectly rounds its creator-to-advertiser side
offering, with Waves for Creators directly syncing with its existing
end-to-end platform aimed at brands (Waves for Brands). This is the first time
an influencer marketing company has optimised both platform and app for direct
syncing and will allow creators to accept campaigns directly in-app and to
upload content for brands to approve in seconds. Waves for Brands has already
enabled advertisers such as Google, Vodafone, SharkNinja, and Levi's to
achieve faster activation speeds.
Our investment view
"Influencer marketing is fast becoming a staple part of an advertisers
marketing budget. Influencer is uniquely poised to take advantage of this
trend, having operated in the space for five years. The team has a wealth of
expertise in the sector and is supported by Influencer's proprietary
end-to-end influencer marketing platform. Influencer is well placed to
continue its strong growth journey."
Harriet Rosethorn
Investment Manager, Puma Private Equity
31 August 2022 28 February 2022
Total investment from Puma funds £3.00m £3.00m
VCT 13 investment participation £1.80m £1.80m
Equity Valuation £9.66m £8.87m
MOIC (Multiple of Investment Cost) 5.37x 4.93x
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
VCT 13 investment participation £0.81m £0.81m
Equity Valuation £1.11m £1.16m
MOIC (Multiple of Investment Cost) 1.37x 1.43x
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
VCT 13 investment participation £0.50m £0.50m
Equity Valuation £0.38m £0.51m
MOIC (Multiple of Investment Cost) 0.76x 1.02x
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's 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
"Despite a challenging consumer environment, Everpress continues to
demonstrate the value that lies within the online creator economy. 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
VCT 13 investment participation £3.51m £1.50m
Equity Valuation £3.51m £1.51m
MOIC (Multiple of Investment Cost) 1.00x 1.00x
Open House
Open House owns and operates a family of popular dining and drinking venues in
some of London's most progressive neighbourhoods. Open House was launched in
2015 by the team behind Cubitt House, a group of highly successful gastropubs
in central London that were later sold to a private equity group.
The hospitality sector has continued to trade through challenging times, given
its significant exposure to wage costs, staff availability, food prices and
energy prices. The team at Open House has been agile and creative in
addressing these matters, but many are national or international matters and
cannot be completely ameliorated.
During the period the roof terrace of The Broadcaster in London's White City
opened, to considerable acclaim and press recognition. It has quickly
developed into a pivotal part of the unit's reputation and is a very stylish
and enjoyable space. It has also contributed significantly to sales.
The flagship unit near King's Cross, The Lighterman, continues to anchor trade
and performed well over the summer, although naturally it was impacted
adversely during tube and train strikes. The unit in Fitzrovia, now relaunched
as The Arber Garden following a small refurbishment and repositioning to a
more casual offer, has had some success with events bookings but is still
seeing lighter footfall than was hoped, as office occupancy around Fitzrovia
remains down on peak.
Open House is engaged in extensive business planning with an eye on more cash
constrained consumers but is also exploring growth opportunities where new
sites could be acquired on favourable terms.
Our investment view
"The experience of this management team has really shown during the very
challenging trading patterns we've seen over the past few years. Uncertainly
for the sector continues, and such low consumer confidence is of course a
concern, but the quality of the units Open House operates does set them
apart."
Rupert West
Managing Director, Puma Private Equity
31 August 2022 28 February 2022
Total investment from Puma funds £5.00m £5.00m
VCT 13 investment participation £1.80m £1.80m
Equity Valuation £2.10m £2.29m
MOIC (Multiple of Investment Cost) 1.17x 1.27x
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
VCT 13 investment participation £5.00m £5.00m
Equity Valuation £8.27m £8.97m
MOIC (Multiple of Investment Cost) 1.65x 1.79x
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 -
VCT 13 investment participation £2.36m -
Equity Valuation £2.36m -
MOIC (Multiple of Investment Cost) 1.00x -
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 38%
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
Total Investment £5.00m
VCT 13 Participation £1.85m
Sector Software Computer Services
Location London
Established 2010
Expansion Europe, Asia & US
At exit 28 February 2022
Total investment from Puma funds £5.00m £5.00m
VCT 13 investment participation £1.85m £1.85m
Equity Valuation £3.55m £3.55m
MOIC (Multiple of Investment Cost) 1.9x 1.9x
Liquidity management investments
To manage the Company's liquidity, a portion of the Company's funds are
invested in a diverse portfolio of listed equities.
This portfolio is managed by the Investment Manager's listed equities team
which during the period was run by Dr Stuart Rollason. Dr Rollason is a highly
experienced small and mid-cap fund manager with over 20 years in the industry,
including spells at Kestrel Partners LLP, Bluehone and ISIS Asset Management.
He was formerly an Extel-rated Research Analyst in Medical Technology and
Biotech at Beeson Gregory, Panmure Gordon and Nomura, and began his career as
a medical doctor practising in the NHS, before moving into research at Oxford
University.
The Company's listed equity portfolio is focussed on UK centric stocks which
are listed on the main board of the London Stock Exchange. At the start of
the pandemic, the Company's portfolio experienced high levels of volatility
and material falls in value in line with markets generally, as previously
reported. At the period end, the portfolio had recovered much of the early
pandemic losses but remained at a valuation 10% down on original cost.
Investment Strategy
We are pleased to have invested the Company's funds in a diverse range of
businesses to date. With the re-opening of the fund raise, we hope to further
diversify the portfolio and take advantage of lower valuations for new
investments over the coming months. We remain focused on generating strong
returns for shareholders, whilst balancing these returns with maintaining an
appropriate risk exposure. Overall, we remain confident that our portfolio is
well-positioned to deliver positive returns to shareholders.
Puma Investment Management Limited
29 November 2022
Income Statement (unaudited)
For the period ended 31 August 2022
Period ended Period ended Year 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
Gain on investments - 1,899 1,899 - 2,581 2,581 - 12,189 12,189
Income 113 - 113 15 - 15 52 - 52
113 1,899 2,012 15 2,581 2,596 52 12,189 12,241
Investment management fees 4 (160) (479) (639) (76) (228) (304) (175) (525) (700)
Performance fees 6 - - - - (188) (188) - (1,897) (1,897)
Other expenses (225) - (225) (141) - (141) (340) - (340)
(385) (479) (864) (217) (416) (633) (515) (2,422) (2,937)
Profit/(loss) before taxation (272) 1,420 1,148 (202) 2,165 1,963 (463) 9,767 9,304
Taxation - - - - - - - - -
Profit/(loss) and total comprehensive income for the period (272) 1,420 1,148 (202) 2,165 1,963 (463) 9,767 9,304
Basic and diluted
return/(loss) per Ordinary Share (pence) 2 (0.57p) 2.99p 2.42p (0.86p) 9.20p 8.34p (1.77p) 37.48p 35.71p
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 As at As at As at
31 August 2022
31 August 2021
28 February 2022
£'000 £'000 £'000
Fixed Assets
Investments 7 46,736 20,533 41,228
Current Assets
Prepayments 567 69 109
Cash 19,782 11,379 13,184
20,349 11,448 13,293
Creditors - amounts falling due within one year (947) (324) (2,169)
Net Current Assets 19,402 11,124 11,124
Net Assets 66,138 31,657 52,352
Capital and Reserves
Called up share capital 22 14 20
Share premium account 29,801 - 15,187
Capital reserve - realised (978) 1,931 (2,216)
Capital reserve - unrealised 16,171 6,072 15,989
Revenue reserve 21,122 23,640 23,372
Equity Shareholders' Funds 66,138 31,657 52,352
Net Asset Value per Ordinary Share 3 136.33p 129.84p 143.53p
Diluted Net Asset Value per Ordinary Share 3 136.33p 129.84p 143.53p
David Buchler
Chairman
29 November 2022
Cash Flow Statement (unaudited)
For the period ended 31 August 2022
Period ended Period ended Year ended
31 August 2022
31 August 2021
28 February 2022
£'000 £'000 £'000
Operating activities
Profit after tax 1,148 1,963 9,304
Gain on investments (1,899) (2,581) (12,189)
Increase in debtors (461) (6) (44)
(Decrease)/increase in creditors (1,222) (537) 1,308
Net cash used for operating activities (2,434) (1,161) (1,621)
Cash flow from investing activities
Purchase of investments (7,173) (1,681) (12,771)
Proceeds from disposal of investments 3,567 5,067 5,067
Net cash generated from/(used in) investing activities (3,606) 3,386 (7,704)
Cash flow from financing activities
Issue of shares 15,195 7,026 22,388
Share issue costs (579) (268) (427)
Purchase of own shares - - (17)
Dividends paid to shareholders (1,978) - (1,831)
Net cash generated from financing activities 12,638 6,758 20,113
Net increase in cash and cash equivalents 6,598 8,983 10,788
Cash and cash equivalents at the beginning of the period 13,184 2,396 2,396
Cash and cash equivalents at the end of the period 19,782 11,379 13,184
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 11 17,736 (1,695) 7,533 (649) 22,936
Total comprehensive income for the period - - 491 1,674 (212) 1,953
Issue of shares 3 7,023 - - - 7,026
Share issue cost - (258) - - - (258)
Shares premium cancelled in the period - (24,501) - - 24,501 -
Prior year fixed asset gains now realised - - 3,135 (3,135) - -
Balance as at 31 August 2021 14 - 1,931 6,072 23,640 31,657
Issue of shares 6 15,356 - - - 15,362
Share issue cost - (169) - - - (169)
Repurchase of own shares - - - - (17) (17)
Dividends paid - - (1,831) - - (1,831)
Total comprehensive income for the period - - (2,316) 9,917 (251) 7,350
Balance as at 28 February 2022 20 15,187 (2,216) 15,989 23,372 52,352
Shares issued in the period 2 15,193 - - - 15,195
Expense of share issue - (579) - - - (579)
Dividends paid - - - - (1,978) (1,978)
Reserve movement - - 1,698 (1,698) - -
Total comprehensive income for the period - - (460) 1,881 (272) 1,148
Balance as at 31 August 2022 22 29,801 (978) 16,172 21,122 66,138
Notes to the Interim Report
For the period ended 31 August 2022
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 return per share of 2.42p is based on the profit for the period of
£1,148,000 and the weighted average number of shares in issue for the period
ended 31 August 2022 of 47,546,586.
3. Net asset value per share
As at As at As at
31 August 2022
31 August 2021
28 February 2022
Net assets 66,138,000 31,657,000 52,352,000
Shares in issue 48,513,552 24,381,151 36,474,129
Net asset value per share
Basic 136.33p 129.84p 143.53p
Diluted 136.33p 129.84p 143.53p
4. Investment 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 8 December 2016, the Company entered into an Agreement with the Investment
Manager and members of the investment management team (together "the
Management Team") such that the Management Team will be entitled in aggregate
to share in 20 per cent of the performance in relation to each accounting
period as determined from the audited annual accounts for that period, subject
to the Performance Value per share exceeding the High Water Mark (being the
higher of 110p and the highest Performance Value per Share at the end of any
previous accounting period).
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') 379 500 (121) 1.0%
Connectr Limited 8,266 5,016 3,250 12.0%
Deazy Limited 2,900 2,900 - 4.0%
Dymag Group Limited 3,292 3,463 (171) 5.0%
Everpress Limited 3,514 3,514 0 5.0%
Hot Copper Pub Company Limited 326 847 (521) 0.0%
Influencer Limited 9,664 1,800 7,864 15.0%
Le Col Holdings Limited 8,328 4,141 4,187 13.0%
CameraMatics ('MySafeDrive Limited') 3,191 1,963 1,228 5.0%
Ron Dorff ('NQOCD Consulting Limited') 1,113 812 301 2.0%
Open House London Limited 2,100 1,800 300 3.0%
Muso TNT Limited 2,361 2,361 - 4.0%
Total Qualifying Investments 45,433 29,116 16,317 69.0%
Liquidity Management Investments
Barclays Plc 106 116 (10) 0.2%
Chemring Group Plc 106 70 36 0.2%
Diageo Plc 122 89 33 0.2%
Discoverie Group Plc 125 63 62 0.2%
Dixons Carphone Plc 43 109 (66) 0.1%
Headlam Group Plc 71 121 (50) 0.0%
ITV Group Plc 48 82 (34) 0.1%
Jackson Financial Inc 5 - 5 0.0%
Legal & General Group Plc 93 96 (3) 0.1%
Lloyds Banking Group Plc 110 74 36 0.2%
Provident Financial Plc 35 119 (84) 0.1%
Prudential Plc 69 133 (64) 0.1%
PZ Cussons Plc 78 94 (16) 0.1%
Royal Dutch Shell Plc 115 124 (9) 0.1%
Volution Group Plc 125 88 37 0.2%
WPP Plc 52 67 (15) 0.1%
Total Liquidity Management Investments 1,303 1,445 (142) 2.0%
Total Investments 46,736 30,561 16,175 71.0%
Balance of Portfolio 19,402 29.0%
Net Assets 66,138 100.0%
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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