REG - Puma VCT 13 PLC - Annual Financial Report
24/05/2022 07:00
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RNS Number : 5152M Puma VCT 13 PLC 24 May 2022
HIGHLIGHTS
· Strong portfolio performance leading to an 17.76p per share increase
in Net Asset Value
· £22.4m raised in new equity through full subscription of the further
fund-raising offer
· Funds raised in the period are already 42% invested in qualifying
holdings, 12% above the HMRC requirement of 30% for 28 February 2023, with all
funds raised in prior periods having met their 80% qualifying investment
target.
· Successful exit of TicTrac on 3 May 2022, delivering a 1.9x cash
return.
CHAIRMAN'S STATEMENT
Introduction
I am pleased to present the fourth report and financial statements for Puma
VCT 13 plc ('the Company') for the year to 28 February 2022.
Overview
The Company's Net Asset Value ("NAV") per share at the end of the year stood
at 143.53p, an uplift of 17.76p (14.1%) from the same point in the previous
year. This gain has arisen from a strong performance across a broad range of
the Company's qualifying investments, which is particularly encouraging given
the prevailing market conditions. Eight of the Company's qualifying holdings
were written up in value, with two held at cost. Two of the Company's
qualifying holdings were marked down in value and there was a small loss on
the Company's non-qualifying holdings of listed securities. These movements,
together with running costs, accounted for the overall NAV movement. The
Company's profit for the year was £9.3m (2021: £4.4m).
Fundraising
During the year, the company undertook a further fundraising. The Company
raised £22.4m during the year, with a further £14.8m raised after the year
end meaning that the new offer has been fully subscribed. This gives the
Company material additional deployable funds and will help spread fixed costs
over a wider shareholder base. This leaves the Company in a good position to
continue to develop a robust portfolio. The Company intends to re-open for
another fundraising in the second half of the current year.
Investment Activity and Portfolio
We are pleased to report that 2021-22 has been an active year for the Company
with seven qualifying investments in this period, made alongside other
Puma-managed funds. These investments were: £2.90m into Deazy, a software
developer marketplace platform; £1.96m into Cameramatics, an international
fleet and vehicle safety technology provider; £1.51m into Everpress, an
e-Commerce marketplace for independent designers; £0.81m into Ron Dorff, a
premium athleisure wear brand; a follow-on investment of £3.22m into
Connectr (rebranded from MyKindaFuture), a Human Resources technology company;
a follow-on investment of £0.83m into Dymag, a manufacturer of specialist car
and motorbike wheels; and a follow-on investment of £1.50m into Le Col, an
ecommerce business selling premium cycling apparel. This brings the overall
number of qualifying investments to twelve.
Within the portfolio, the Company's holdings in Cameramatics, Ostmodern and
Ron Dorff have generated valuation gains as the positions were adjusted from
being held at cost to being held at market value. In all cases, the Company
benefits from a defensive investment structure which has helped secure value.
Connectr has continued to perform strongly and was written up accordingly,
also benefitting from a favourable investment structure. Influencer, an
influencer marketing business, has
had an extremely strong performance with growth year on year of more than
200%. Together with positive sector movements, this has enabled a large write
up in the value.
TicTrac, the Company's health and wellness app investment, has also been
written up in value, aided by the highly favourable deal structure the
Investment Manager secured and prospects of a profitable sale. I am delighted
to announce that, post year end, the Company successfully exchanged on a
transaction to exit this position and realise gains. This transaction
delivered a cash multiple of twice investment for the Company, equating to a
38% p.a. IRR.
Two of the Company's qualifying holdings had smaller write-ups in value. Le
Col has continued to perform well year on year, but revenue growth in the
latter half has come with higher discounting. Open House, a pub business, has
been impacted by the Covid-19 pandemic and the ensuing policy responses. Of
their three sites, The Lighterman is trading strongly, another has recently
been rebranded to The Arber Garden and is trading well after its relaunch.
Lastly, a new site in White City, The Broadcaster, has opened successfully
with good month on month growth.
Hot Copper (formerly Knott End Pub Company), a pub business, has also been
impacted by the Covid-19 pandemic and the ensuing policy responses and was
written down to a conservative value. However, the business is robustly
capitalised and has a strong, seasoned management team which remains
optimistic about their long-term prospects.
A second business to be written down in value was Dymag. Whilst its pipeline
of orders has grown substantially in recent months, meeting demand continues
to be impacted by supply chain and internal production delays.
Post the balance sheet date, Dymag entered into a new strategic partnership
with Hankuk Carbon Co. Ltd, in order to mass manufacture their
state-of-the-art carbon composite wheels for the automotive industry. The
partnership is expected to rapidly scale-up carbon composite wheel production,
bringing higher volumes and cost efficiencies for the world's leading auto
Original Equipment Manufacturers.
Net Asset Value ("NAV")
The NAV per share at the year end was 143.53p (2021: 125.77p). This figure
reflects the initial funds raised less the costs of issue adjusted for
movements in the value of the listed equities and running costs of the
Company, plus audited adjustments in the carrying value of the qualifying
positions.
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, monitoring rule compliance and maintaining the qualifying
status of the Company's holdings in the future.
Outlook
With new funds now available for deployment the Company has the opportunity to
be proactive as the economy and society recover from the pandemic, investing
in businesses which have shown resilience after the pandemic and are well
positioned to grow in the new climate. Further lockdowns in China and the
ongoing war in Ukraine, along with other economic events, have undoubtedly had
an impact. However, despite this, we look to the future with confidence. The
UK benefits from an active and dynamic sector of small and medium enterprises
and as this Company's own portfolio shows, whilst there will be losers from
the pandemic and its aftermath, there will also be winners.
The Manager has a strong reputation as a provider of capital to well-managed,
later-stage businesses and at the time of writing, we are encouraged by the
flow of prospective qualifying investments which are under consideration. The
investment team is currently in the execution phase with three further
potential investments and confident that we will continue to make good
progress in executing our investment strategy and, meeting our ongoing
qualifying holding tests as a VCT.
David Buchler
Chairman
23 May 2022
INVESTMENT MANAGER'S REPORT
Introduction
I'm delighted to see so much progress and value creation within the Company's
portfolio over the last twelve months and believe this is further validation
of our extremely hands-on approach to portfolio management.
There is no doubt that working to help our portfolio companies as much as
possible contributes towards more powerful and consistent results and exits.
This is further evidenced by the recent realisation of the Company's holding
in TicTrac, which was acquired by the listed Canadian telehealth business,
Dialogue, in May 2022. The sale of TicTrac provided an attractive money
multiple and a positive Internal Rate of Return for our investors.
I do however need to add some caution when considering the current investment
horizon as we remain in a particularly uncertain and challenging investment
environment. As I cautioned last year, the Covid era was "not a 'conventional'
recession", and the levels of government support we saw, left several
companies alive, but weak, with very stretched working capital positions. Much
of the economy remains far from robust and it is now also being exposed to
several additional interrelated shocks, including inflation, supply-chain
disruption and conflict.
The economic ramifications of the current geopolitical conflict are, and will
be, profound. In deciding to weaponise the privilege of running the global
reserve currency and freeze Russian dollar assets, the US has made a very
material move on the world stage. Surprisingly this has not been discussed
widely in the mainstream press, but in taking such action, the US has
effectively denied Russia access to Russian dollar holdings, thereby
signalling that they were the US's dollars all along.
We believe that such a move will dissuade China from depositing spare funds in
US Treasuries, and subsidising consumers in the West through a depressed
exchange rate (and correspondingly cheap exports). In the medium term that
might boost the reshoring of manufacturing in the West, but in the near term
is going to further exacerbate inflationary pressures and the squeeze on
lower-income consumers.
Such a clear signal from the US may also hasten attempts by China to develop a
rival international settlement currency. These risks accelerating a split
between a Western economic sphere and a Chinese economic sphere - the
implications of which would be felt across global trade, supply chain
management, logistics and tech. We believe it would also have permanent cost
implications for Western producers and consumers.
Increased fuel prices, caused generally by co-ordinated global energy demand
post-Covid and specifically by the response to the war in Ukraine, seem to
have finally driven widespread focus on the conversion to renewable energy
sources. Whilst this may have multiple benefits in the medium to long term, in
the near term it will yet again exacerbate inflationary pressures from
increased demand coupled with supply-chain disruption; as a simple example,
carbon fibre - typically used for lightweighting manufactured consumer goods -
is being diverted for military use, just as it is being called on for wind
turbine manufacture.
And whilst much of our society has now appeared to have 'moved on' from the
Covid pandemic, sadly it remains very much with us. Whilst the UK has had a
fairly successful vaccination-and-exposure policy, we are seeing friction
between surging demand and labour force shortages. Hospitality, travel,
logistics and construction have all experienced operational challenges in
recent months, and this will not improve for some time.
For China, holding on to its zero Covid policy and implementing a series of
rolling lockdowns of real severity is going to become more challenging as the
rest of the world opens us. And with China still such a large manufacturing
hub, this cannot help but cause supply-chain disruption to Western producers
and in turn, yet more inflation.
We see inflation from labour shortages (Covid), inflation from energy prices
(demand and conflict), and inflation from supply-chain friction (conflict,
response to conflict, Covid). Yet the outlook is not as simple as diverting
all our investment activity to gold miners (not permitted within the VCT
rules). On a medium to long-term basis, we are still investing amidst some
powerful deflationary forces - and when investing into illiquid private
companies, you'd better have an eye on the medium to long term - if not for
your own holding period, then for the people you want to sell the positions
to.
The world's population is getting older, and not just in the West. Ageing is
very real for China as well. As populations age, spending is diverted to
saving (and then controlled dis-saving through retirement) and to healthcare.
This is not incompatible with inflation but is a severe dampener to it
(exemplified by the Japanese experience ever since 1990).
In summary, we are looking at an uncertain and high-risk backdrop. For new
investment activity, we will maintain a genuine multi-sector investment
approach, but will add consumer-facing positions selectively - retaining our
bias toward premium (higher-margin) offers. For B2B offers we will be looking
for businesses that have a clear cost-saving proposition. As ever, we will
work extremely closely with the companies we back and help them hone their
sales messages and sales team structures to maximise their growth.
Rupert West
Managing Director
Successful realisation Pure Cremation
Pure Cremation has been the driving force behind the UK-wide adoption of
direct cremations, a straightforward and flexible alternative to traditional
funerals, enabling loved ones to hold a more personal event to commemorate
the deceased's life, away from a crematorium.
INITIAL INVESTMENT
Puma VCT 13 invested £1.3m as part of a £2.35m investment round by Puma
funds into Pure Cremation in December 2018. The purpose of the investment was
to boost marketing activities and bring in additional key senior hires to
help grow the business.
At the time of investment, Pure Cremation was an established business with
strong revenue growth, a clear pathway to profitability and a robust business
plan.
Pure Cremation had already received a total of £5m of investment from other
Puma VCTs in order to build its own purpose-built crematorium.
INVESTMENT PERIOD
Puma Private Equity - the private equity division of Puma Investment
Management Limited - worked in partnership with the Pure Cremation team
throughout the period of investment, helping them execute a number of their
strategic ambitions, including:
• Expansion to Scotland and Northern Ireland
• Implementation of a comprehensive hiring plan and other
organisational changes
• Expansion of marketing activities
• Building scalable processes, systems and reporting
frameworks to support growth
Puma made a number of key introductions during this time, including to the
company's now well-established Finance Director.
SUCCESSFUL REALISATION
Pure Cremation revenues grew nearly 10x over the holding period and the
company moved into profitability. Puma Private Equity helped the company
explore the abundance of strategic options available to it, including meeting
with potential acquirors. An exit was secured for the Puma VCT funds in June
2021, with Puma VCT 13 achieving a 4x money multiple on its investment,
resulting in an IRR of 71%. Distribution of the realised gains from this exit
has resulted in two interim dividend payments, collectively returning 11p per
share to investors between December 2021 and March 2022.
Looking to conquer the US
Ron Dorff
In 2020, the Puma Funds invested £3.59m into men's athleisure wear business,
Ron Dorff. Aligning Swedish functionality with French style, Ron Dorff is
a well-respected premium bodywear brand, having been voted one of the three
best swimwear brands for men in 2020 by Vogue magazine. In February 2022, Puma
Funds made a further investment of £1.67m, to enable the business to continue
its overseas expansion, particularly in the US.
SECTOR OVERVIEW
According to the latest research from McKinsey, global fashion sales are on
track to pick up some momentum this year, as restrictions start to ease, and
consumers are freer
to travel and resume their social lives in many key markets around the world.1
While Ron Dorff has been affected by the pandemic like many other premium
fashion brands, it is in a strong position to capitalise on any uptick in
consumer demand, given the investments made over the last two years in both
its people and its underlying capability.
During the pandemic, while Ron Dorff physical stores were closed, the business
had strong sales online, which were boosted by investments into a new
ecommerce web platform, designed to optimise the shopping experience for
customers in all countries. When Ron Dorff physical stores were able to
re-open, the business had its strongest sales months throughout the summer.
Sales from the retail store in Earlham Street, London, and in concession
stores in Paris, were particularly good. In 2021, Ron Dorff opened further
stores in the Royal Exchange, London, and Lower Manhattan, New York, and
recently announced it plans to open three further stores in the US.
KEY PLANS FOR THE FUTURE
Ron Dorff has exciting plans for 2022 and beyond, including the opening of
additional stores in US in areas with high e-commerce led demand.
It also has a number of collaborations in the pipeline, including Edge Beauty
for its first fragrance range, to broaden both range and appeal. It is further
investing. in its ecommerce platform, with a view to optimising online sales
further during 2022.
£5.26m Investment (VCT 13 participation £0.8m)
SUSTAINABILITY
Ron Dorff has set ambitious sustainability and ethical goals for the years
ahead. From the people making the products to the fabrics it uses, right
through to how it minimises transport around the globe and its overall impact
on climate.
Whenever possible, Ron Dorff ensures the fabrics it uses are recycled and can
be easily recycled in the future. Recycled polyester in its swimwear, recycled
wool in its knitwear, recycled paper in its shopping bags and online boxes,
are just a few examples.
Supplies to Ron Dorff are always sourced as close as possible to its warehouse
outside Paris. 90% of production is made in France (accessories), Italy
(knitwear), Portugal (underwear, swimwear and sportswear) and Sweden (body
care). All production is transported by train or by truck. In addition, Ron
Dorff works only with transportation partners that are able to disclose the
carbon footprint of freight, and it is actively working on reducing the
environmental impact of transport.
All European suppliers working with Ron Dorff respect the rigorous labour laws
of the European Union. Suppliers outside the EU all adhere to Ron Dorff's
global code of labour practices for suppliers. The code stipulates minimum
requirements for working conditions, based on the International Labour
Organization (ILO) and UN principles. This includes the right of all workers
to join trade unions, the right to a living wage, reasonable hours of work,
safe working conditions and a legally binding employment contract. Child
labour and all forms of discrimination are strictly banned.
WHY WE'VE INVESTED
Since inception, Ron Dorff has delivered year-on-year revenue growth with
successful expansion into international markets, as well as a number of
collaborations and strategic partnerships. While recent years have been more
challenging, revenues have remained strong and stable, and the investment into
ecommerce has enabled it to increase online sales by more than 50%.
The investments we have made - which include an additional investment of
£1.67m in February 2022 - have enabled Ron Dorff to deliver on its targeted
growth plan, with expansion firmly focused on the US.
Ron Dorff has a clear path to exit, with the potential to maximise global
expansion being
a particularly attractive opportunity.
MANAGEMENT TEAM
Ron Dorff has invested in a highly seasoned team, who bring a wealth of
experience from across the fashion and digital world, including:
CEO - Claus Lindorff. Claus founded Ron Dorff in 2012. Previously he was
Managing Director at BETC Luxe.
Chief Marketing Officer - Caroline Pannhasiri. Caroline joined from The
Kooples.
Head of E-commerce and Digital - Ibrahim Rahni. Ibrahim joined from Serge
Blanco.
Designing more personalised clothing
Everpress
In August 2021, Puma Funds invested £3.2m into Everpress, an online platform
that connects consumers to unique and sustainable products from independent
designers. Everpress 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.
SECTOR OVERVIEW
There has been a huge growth in online shopping in recent years, along with an
increasing awareness of ethical fashion and consumers' desire to support
grassroots businesses. A recent report by McKinsey, suggested that more and
more people were buying clothing online before the pandemic, and that
"behaviours that started before 2020 have become an established, even
dominant, preference". It goes on to suggest that there has been a secular
shift in shopping patterns, with the result being that ecommerce is expected
to account for 50% of purchasing in the UK clothing market in 2022, compared
with 35% in 2021.
Everpress is well-placed to capitalise on the growth of online shopping, which
has been accelerated by the pandemic, along with increasing awareness of
ethical fashion.
WHY WE'VE INVESTED
The business has shown an impressive growth trajectory: since 2017 revenues
have grown 70% year-on-year on average, and the business has matured from five
employees in 2016 to over 40 today. There is a strong management team in
place, and a clear business plan in a growing sector. We believe there is
significant opportunity to improve the creator and buyer experience, and we
are already working with Everpress on investments to improve its product.
MANAGEMENT TEAM
CEO - Alex Econs. Experienced entrepreneur with a background in graphic design
and applying technology to improve sustainability within the industry.
Chief Operating Officer- Simon Backhouse. Simon previously worked at Fiorucci,
ASOS, Arcadia.
SUSTAINABILITY
Sustainability is at the heart of Everpress. It was formed to support the
creator economy and democratise fashion, and it has paid out more than £6m to
individual artists using its platform since inception. Its campaigns are run
solely on a pre-order basis, so that garments are only produced once
purchased, eliminating excess stock and wastage. This approach is estimated to
have saved over 336 million litres of water and 124,000 T-shirts from
landfill. Its lack of 'seasonality' and the need to produce changing lines for
changing times of the year, is one of the core principles behind the Ellen
MacArthur Foundation, 'Make Fashion Circular' campaign. In addition, Everpress
moved to 100% sustainable packaging in January 2021, with 90% of its garments
sourced from ethical suppliers. Its goal is to increase this to 100% within
the next 12 months, along with becoming climate and water-positive by 2025.
Everpress has also started the B Corp application process.
KEY PLANS FOR THE FUTURE
Everpress has exciting plans for the future, which includes onboarding more
creators with a high following, and building out new tools to enable them to
sell directly to their own audiences.
Given the current macro-economic uncertainties, the company has pushed back
some of its growth plans, including US expansion, and for the remainder of
this year will focus efforts on incremental improvements to product, processes
and communication.
£3.2m Investment (VCT 13 participation £1.5m)
Continuing the development of a premium London venue collection
Open House
Open House is an independent hospitality business that seeks to create iconic
drinking and dining destinations in London's most progressive neighbourhoods.
The founding team behind the business are hugely experienced, having
previously run the Cubit House Group pub chain, which has units in Pimlico,
Chelsea and Belgravia, and they sold at a material profit, to fund the start
of Open House.
In 2019, Puma Funds invested £5m to help the team secure venues in major
redevelopment areas in London. At the time of the investment, the business ran
The Lighterman in King's Cross (Granary Square) and Percy & Founders in
Fitzrovia. It was looking to secure new venues in areas that were being
positioned as new centres for retail, hospitality and day-to-day life. The
investment has helped Open House to develop its existing properties and create
a new venue - The Broadcaster at Wood Green.
SECTOR OVERVIEW
The hospitality sector has been one of the most heavily affected by the
restrictions imposed under the Covid-19 pandemic, and many businesses have
suffered heavy financial losses as a result. Revenues in recent months have
improved significantly, now that people are returning to work and socialising
once more. However, the short-term outlook for the sector remains mixed.
Recruitment and retention of good-quality staff are challenging, particularly
since many left the sector during 2020/21. Recent months have seen
improvements in vacancy rates, particularly in London, but significant
increases in inflation have naturally led to rising wage costs. In addition,
with the ongoing political tensions in Eastern Europe, food, beverage and
utility prices are rising rapidly, and these costs will need to be passed on
to consumers. A recent survey by UK Hospitality among 340 businesses across
the UK, indicated that prices would need to rise by an average of 10% this
year, to cover the huge increases in overheads faced by the industry.
It is not yet known whether such price rises will significantly affect demand.
Forecasts suggest that while the value of the pub and bar market fell by
£13.9bn (61%) in 2020, the market is expected to grow by 51.8% in 2022,
reaching a value of £22.4bn. The market is not seeing any significant
consolidation yet, and while various organisations have raised funds
specifically for acquisition in the pub sector, stock remains relatively
limited.
WHY WE'VE INVESTED
Open House has a very clear positioning, backed by a highly talented and
experienced leadership team, who have a strong track record of generating
consistent positive cash flow. Its focused and pragmatic business plan - while
tested fully during the pandemic - shows a clear growth trajectory, and it has
continued to deliver on key milestones during this difficult period. While the
business was not exempt from the challenges brought about by Covid, one of its
properties has just opened following an extensive refurbish, and the latest
property is well ahead of trading expectations. We believe it is building up a
very sellable group.
AWARDS WON
The Lighterman: 'Pub of the Year' - Top 10 Accreditation, The London Lifestyle
Awards (2020/21)
The Lighterman: 'Certificate of Achievement - High Quality Food', Hardens
(2021)
The Lighterman: 'Dining Pub of the Year', The Good Pub Guide (2021, winner)
Percy & Founders: 'Restaurant of the Year', The London Lifestyle Awards
(2020, shortlisted as one of 5 finalists)
The Lighterman: 'LABC Building Excellence Regional Awards', (2017, winner)
The Lighterman: 'Top bar/pub food', Harden's (2017, voted No 2 for service, No
1 for ambience and No 1 for overall experience)
The Lighterman: 'Pub of the Year', The London Lifestyle Awards (2017, winner)
The Lighterman: New London Awards, Commendation for Hotels & Hospitality
(2017)
SUSTAINABILITY
Open House takes sustainability seriously, and always seeks to source its
supplies from local or sustainable resources.
As a minimum, all food suppliers hold a BRCGS certificate, which guarantees
the standardisation of all food sourcing quality, safety and operations, and
ensures Open House acts sustainably, as well as providing protection for the
end-consumer. All suppliers are also Red Tractor certified, meaning the food
has been responsibly sourced, safely produced, and comes from crops and
animals that have been well cared for- which is good for both customers
and British farmers.
The Open House overall beverage philosophy has always been to work with small,
craft and local suppliers as much as possible. Beers are sourced from
UK-based small craft breweries, including Braybrooke, Crate, Five Points,
Harbour. About 90% of Open House wines comes from organic wine producers - the
main suppliers being Bancroft, Dynamic Vines and A&B Vinters. As well as
organic wines, 70% is also classed as biodynamic, where the wines are made
by farming all components of the vineyard as one whole entity, eliminating the
use of chemicals and using natural materials and composts.
Over the last year, Open House has concreted its relationship with small,
local and craft suppliers, having opted for East London Liquor Co as its house
pour. All Open House's gins are UK-based, and its whisky is predominantly from
the UK. And all juices are made fresh, with no additives, from its fruit and
veg supplier, 2-serve, which is based in New Covent Garden Market, just a
short distance from all Open House venues, again reducing emissions from
transport.
In addition, Open House works closely with LemonAid & ChariTea - all its
drinks are certified organic, meaning they are better for the environment and
better for the customer. Over the last few years, Open House has worked with
The Felix Project, a London-based food redistribution charity, which sets out
to feed those in London without access to food (1.5 million adults in London
struggle to afford to eat every day, and 400,000 children are at risk of
missing the next meal). Open House has donated staff time to the project, as
well as sending food that would normally go to waste; this was especially the
case during the pandemic, and the team were on-hand to help distribute the
food.
KEY PLANS FOR THE FUTURE
At King's Cross and White City, the team have proved their ability to
contribute to the 'place making' being undertaken at some of the most
significant city redevelopment sites in the world. Given the current
macro-economic uncertainty, they are continuing to look at additional
opportunities, and are keen to obtain key new sites on favourable terms.
£5m Investment (VCT 13 participation £1.8m)
Building belonging across the world
Connectr (formerly MyKindaFuture)
Connectr is a market-leading HR tech platform that provides smart mentoring
software to improve employee recruitment, retention and attainment. It was
born out of a desire to help organisations improve D&I in their workforce,
and Connectr's software has been developed to address key challenges in our
labour markets: namely under-representation of minority and disadvantaged
groups, skill shortages and increasing employee attrition rates.
Puma initially invested £2.75m in August 2019 to support Connectr to develop
its core product. Following impressive revenue growth in the following two
years, Puma invested a further £6m across two investment rounds (October 2020
and December 2021) to capitalise on the expansion opportunities available to
the company.
SECTOR OVERVIEW
The Parker Review was set up to improve levels of diversity and inclusion at
large companies in the UK. First published in 2017, the report set a target
for every FTSE 100 company to have at least one director from a minority
ethnic group on its board by 2021, with FTSE 250 companies given until 2024.
This created a large pipeline of organisations looking to improve levels of
diversity at board level, and throughout the wider organisation. The report
highlighted the need for mentoring programmes as a tool that can "bring down
ethnic barriers and empower talent".
Recent analysis suggests progress is being made - certainly within larger
organisations. According to EY 89 FTSE 100 companies had ethnic diversity on
their boards (December 2021), compared to 74 in November 2020.1 Indeed,
research by FRC/Cranfield has also highlighted that the Black Lives Matter
movement has shifted the quality of the conversation, so that actions and
initiatives are being reviewed with increased scrutiny. Mentoring programmes
are now increasingly seen as "important elements of the overall approach to
ensuring the greater representation of ethnically diverse individuals at
senior levels".
SUSTAINABILITY
Connectr's sole purpose is to help improve rates of diversity and inclusion
across the global workforce. The purpose runs through everything it does, and
it seeks to champion that at first hand, by offering under-represented groups
meaningful employment itself.
AWARDS WON
Shortlisted in the British HR Awards 2022 in the Technology Company of the
Year and Innovation of the Year categories.
MANAGEMENT TEAM
CEO - Will Akerman. Experienced founder with a track record of scaling and
delivering exits.
Chief Operating Officer - Rachel Morar. Rachel joined in 2013, background in
corporate and third sector sales.
Chief Revenue Officer - Mark Edgeworth. Mark joined Connectr in 2022 from
BeMyEye and has a track record of scaling SaaS sales and marketing
functions.
Chief Finance Office - Ashley Taylor. Ashley has 12 years of experience in
senior finance positions.
WHY WE'VE INVESTED
Connectr is led and managed by a highly experienced team, that offer a
credible and pragmatic voice in a market that is becoming increasingly
noisy. In recent months it has increased its focus at board level for a
coherent D&I strategy that sits around its core platform, and is focused
on providing comprehensive metrics that show where improvements are being
made. Clients are seeing strong ROI on programmes being delivered by Connectr,
including: 67% reduction in candidate renege rate, 41% increase in diversity
of hires, 85% average user engagement rate.
It has already partnered with multiple blue- chip global employers to increase
the diversity in the workforce, e.g. GE on its Next Engineers programme,
National Grid, Heathrow.
KEY PLANS FOR THE FUTURE
Connectr has had a number of notable blue-chip wins in the last year,
including GSK, LinkedIn and the NHS, and has a strong pipeline of
opportunities for growth both in the UK and internationally.
It also has product extension plans for a number of clients that grow with the
employee lifecycle - from graduate to executive. It has already launched a new
workplace mentoring platform ("Connectr
for Employees") with the first clients onboarded
and using the platform.
Connectr is in a growing sector, and has a number of clear exit routes
available to it at the appropriate time.
Build and scale world class streaming products
Ostmodern
Ostmodern is a digital product specialist and creative technology company. The
team collaborates with businesses to develop unique digital products and
services. It has produced bespoke rich media and video-on-demand for many
high-profile clients across the world, including Fox, ITV and hayU.
Building on the management's expertise in the video-on-demand sector,
Ostmodern has developed a Video Management System (VMS), Skylark, to enable
content owners to better manage and commercialise their video content. In
December 2020, Puma Funds invested £2m in Ostmodern, to enable it to further
develop the Skylark product and continue its transition from a service
provider to a productised offering; the ultimate goal being to provide an
affordable and easy-to-plug-in VMS to a wider range of content owners. The
investment has also helped the company to establish a sales structure to
commercialise the product internationally.
SECTOR OVERVIEW
Ostmodern is a specialist in the management of digital video - a market that
emerged with the first wave of video-on- demand in the mid-2000s. The growth
of digital content consumption, amplified in part by the pandemic, has
disrupted sectors that were traditionally serviced in person, and are
increasingly being serviced through video. The market is now enjoying new
waves of rapid growth, with a proliferation of streaming platforms and media
devices, and increasing demand from sectors outside the traditional
broadcasters, such as education, fitness and corporate training courses.
SUSTAINABILITY
As part of our investment, we have worked closely with management to help
nurture company culture and ensure that the company's vision permeates through
the organisation to all employees.
We have looked to establish clear reporting lines and dashboards, to help the
board better monitor performance across all functions.
KEY PLANS FOR THE FUTURE
The next 12 months will be about achieving product market fit and driving key
strategic partnerships.
The company also intends to deliver a number of product development updates,
including faster integration and reducing server costs for clients when using
Skylark.
WHY WE'VE INVESTED
The pandemic has accelerated the use of digital across many facets of daily
life, and content owners are increasingly looking to commercialise their
content. Sectors such as sports, education and retail are expected to move in
a similar direction to media companies, thereby significantly increasing the
serviceable market for Ostmodern.
Ostmodern is a relatively established business, with an experienced senior
management team. While the pandemic affected buying cycles and delayed the
expected revenue growth, the company adapted its go-to-market strategy, and
has maintained a healthy pipeline of clients for both its product and services
offerings.
During this period, our investment has enabled the business to further develop
the product, reduce onboarding costs, standardise the product framework, and
establish a sales and marketing structure, to better position its message to
the target market and ramp up sales.
MANAGEMENT TEAM
Chief Revenue Officer - Taylor Riese. Taylor has sought to set up a scalable
B2B sales structure to sell the Skylark product. He joined in July 2021, with
ten years of commercial experience with Verizon, where he was MD of EMEA and
India sales.
The company has also hired two new sales representatives to cover EMEA and
APAC.
Head of Marketing - Lasharna Turner. Lasharna joined in August 2021, to set up
an omni-channel marketing function. Lasharna joined with sector experience, to
establish product messaging, improve the company's understanding of its target
market, and work closely with the new sales team to optimise lead generation.
Driving new standards in vehicle safety
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. It has
offered a 100% return on investment within seven months on average. 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.
In 2021, Puma Funds invested £4.72 m into CameraMatics, with the investment
primarily focused on supporting the additional expansion of the US branch of
CameraMatics, and driving forward its offering to large enterprise customers,
following recent successes in the UK.
SECTOR OVERVIEW
According to Fortune Business Insights, the global fleet management software
market was valued at $18.2bn in 2021, and is projected to grow to $67.38bn by
2029.2 This is fuelled in part by the growth in online shopping, but also the
need to reduce fleet costs. Demand for management software and services that
enable fleet managers to better optimise fleet delivery, maintenance and
safety is expected to see sustained growth to support more optimised supply
chains, and reduce economic and environmental impacts.
MANAGEMENT TEAM
In addition to the existing team, key hires have been made in the following
areas:
Chief Operating Officer - Darren O'Donohoe. Previously worked at Digicel
Head of UK Sales - Elliot Goff
Previously worked at The Vehicle Group
Head of US Sales - Michael Menolascino. Previously worked at SmartDrive
Marketing Director - Richard J Moore Previously worked at Inmarsat
SUSTAINABILITY
Understanding a fleet's operating costs and related carbon emissions is not
always straight forward. Techniques to reduce the number of vehicle journeys
rely on actionable data insights and identifying effective practical steps to
take to encourage drivers to drive more economically, which aren't always
obvious. The CameraMatics cloud translates the big data from an array of
vehicular sensors, a bespoke suite of fitted high-definition smart cameras and
edge compute devices into actionable insights. These enable the following
environmental benefits:
• Route optimisation and associated reduction in fuel
costs
• Reduced vehicular wear & tear, and associated
reduction in servicing and parts.
CameraMatics has also recently been selected by the Bord na Móna to take
part in its 'Accelerate Green' programme, for businesses focusing on
sustainability and climate action.
WHY WE'VE INVESTED
CameraMatics provides a scalable customer-centric solution for fleet managers
solving day-to-day issues that have been identified and resolved through
CameraMatic's deep industry experience and knowledge. This focus on the key
customer - the managers of commercial fleets - and the problems that they face
is a key USP for the business. It has a consistent track record of winning
large enterprise contracts, that utilise its scalable technology platform to
solve real-world issues; and the further easing of travel restrictions has
also improved sales performance.
Recently, the company announced that Maritime Transport Limited, one of the
largest transport and logistics operators in the UK, has chosen CameraMatics
as its Fleet Safety and Telematics Partner.
AWARDS WON
2021 Technology Ireland Emerging Company of the Year 2022 - Nominated for EU
Future Unicorn Award.
CameraMatics Co-Founder and CEO, Mervyn O'Callaghan has been named
'Founder of the Year' 2021 by Enterprise Ireland as part of its prestigious
High Performance Start-Up (HPSU) programme.
CameraMatics was a Finalist in the Business Car Awards 2021, shortlisted for
the Risk Management and Safety Award.
Prestige Awards 2021 Technology Solutions Specialist of the Year.
KEY PLANS FOR THE FUTURE
The business has made large investments into the Sales and Marketing teams in
2021, and the sales and order pipeline is growing strongly. The plan for 2022
and beyond is to continue the international expansion.
£4.72m Investment (VCT 13 participation £1.96m)
Matching the growing demand for software talent
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. It also
sought to double down on the functionality of its platform, and further build
out its own software development teams.
SECTOR OVERVIEW
Given the continued penetration of all things digital into all aspects of
our business and professional lives, it's no surprise that globally there
continues to be a shortage of access to skilled software developers.
According to the Recruitment & Employment Confederation (REC),
programmers and software development professionals is the third highest
occupation with worker shortages
in the UK, and both Brexit and the pandemic did little but increase the demand
further for this talent pool in the UK.
In addition, the introduction of IR35 tax legislation, to identity all those
contractors who were working as 'disguised' employees, has further reduced the
available freelance software resources when companies need them. Platforms
such as Deazy's, that enable talent to be searched and matched to projects,
have seen a surge in demand.
MANAGEMENT TEAM
Deazy has recently recruited an experienced Chief Product Officer - Chris
Dawson, from Zoopla- to sustain the delivery of a market-leading platform
experience, and explore additional opportunities to drive revenue expansion
through the platform.
WHY WE'VE INVESTED
Deazy has demonstrated strong product/market fit within its current market,
achieving impressive revenue growth of 270% in 2021 - with December 2021
being its highest grossing month to date. The company has done this by growing
with existing customers and expanding into new segments, with increased
stickiness and margin as a result.
Deazy operates in a market with strong fundamentals driven by the shortage in
supply of software developers. It has a differentiated approach from its
competitors, in terms of how it aggregates supply. It achieves this through
working with delivery partners instead of freelancers, and it's attractive,
since it enables organic scale, given delivery partners can build out their
teams to service more demand from Deazy's customers.
It is our belief that the experienced management team have a clear
understanding of their target customers' needs and how to scale up the
delivery partner ecosystem, and we are therefore backing a clear and coherent
growth strategy.
SUSTAINABILITY
Deazy is committed to smashing stereotypes, breaking inequality, and rejecting
discrimination. As a tech business it is really proud to showcase its female
talent. The majority female product team is a rare sight in the tech industry,
which is made up of 75% men, and the organisation is providing lots of support
to help women succeed in tech and provide role models for the industry.
KEY PLANS FOR THE FUTURE
Deazy is continuing to develop further its platform in 2022, to enhance its
operating efficiency and develop new features to assist in capturing further
value from customers. It is also building out its sales and customer success
teams to drive new sales as well and expanding revenue from existing clients.
Deazy will look to target customers where higher margins can be achieved.
£5m Investment (VCT 13 participation £2.9m)
Riding high from demand for performance cycling apparel
Le Col
Le Col has a very clear ambition to be the pre-eminent performance cycling
apparel company in the world. In 2018, Puma Funds invested £2.35m to support
Le Col's initial growth plans, and following continued strong performance, a
further £4m was invested in 2020 and February 2022. This additional
investment was to fuel the company's overseas expansion as well as its sales
and marketing efforts, which have significantly raised the brand's profile
over the last two years.
SECTOR OVERVIEW
According to research published by the Bicycle Association, the UK cycling
market was worth £2.31bn in 2020 - an increase of 45% over 2019. Cycling has
seen a renaissance since the Covid-19 pandemic struck, given much of the
leisure sector was closed for a considerable period and people looked to
alternative options for their exercise. According to Mintel, more than 1
million extra adults starting cycling in 2020, and there was a 57% rise in the
number of children cycling in the summer of 2020 compared to the previous
year, so we are seeing rising participation rates among adults and children,
which have continued throughout the pandemic.
In addition, fuelled by the growing interest in climate change and reducing
our carbon footprint, the e-bike market has also seen sales surge, with Forbes
suggesting that in European countries,
by 2030 17 million e-bikes will be sold a year, which is more than twice the
number of passenger cars being registered currently in the EU.
Overall, the cycling sector in terms of participants as well as participation
rates looks to be on the increase, which is good news for organisations such
as Le Col.
KEY PLANS FOR THE FUTURE
Le Col continues to invest heavily in its product, with additional line
extensions, as well as more R&D into materials and cuts that help improve
the performance cycling kit. Even the smallest changes can make a difference
to how long and how fast riders can go, which in trials and events can have
significant impacts on results.
Le Col is also looking to continue its international expansion, with
investment into the US and Europe in particular, where the overall cycling
markets are continuing to grow.
£6.35m Investment (VCT 13 participation £2.52m)
SUSTAINABILITY
Le Col has worked on several projects that encourage people to cycle and to
live a more active and healthier lifestyle. Recently it offered a financial
discount on its products, when people completed 250 minutes of recorded
activity within a challenge period, and it regularly works with Strava on
incentivising exercise and challenging yourself to do more activity.
Le Col is also passionate about women's cycling, and helping deliver female
riders to the biggest stages in the sport. It has recently tripled its
investment in cycling team Le Col - Wahoo - who will be participating in the
Women's Tour de France in 2022, and has agreed investment for a further two
years, so the team can continue to build.
MANAGEMENT TEAM
The team have secured a number of new hires including:
Head of Product Development Jennifer Choi, (ex Rapha).
Digital Director - Andrew Longley (ex Asics, Ben Sherman).
WHY WE'VE INVESTED
Le Col has seen explosive growth over recent years - fuelled in part by
renewed interest in the cycling sector, but also because of the quality of its
product, which has helped deliver results, particularly for competitive
cycling. The business has an impressive management team who are helping the
business scale effectively, and its investment in brand and sponsorship is
starting to pay dividends, with an increase in brand awareness and salience.
Le Col has signed a number of high- profile brand ambassadors, including
Victoria Pendleton and Bradley Wiggins, and has secured a number of strategic
partnerships - including with McLaren, to develop high-performance materials
that deliver a step change in aero- cycling apparel.
Le Col will also be returning to the cycling World Tour this year, with a new
deal to become the technical clothing provider for Bora-Hansgrohe, in a deal
that sees the two parties embark on a three-year journey together.
Engaging employees for a healthier future
TicTrac
Tictrac is a provider of wellbeing software and services that are designed to
engage, inform and enable businesses to take better care of their employees'
health and wellbeing.
It provides exclusive content to its users, as well as taking information from
their wearable fitness trackers to give targeted feedback and action plans.
Tictrac has gathered powerful evidence that use of its platform reduces
sedentary behaviour among large workforces, with associated positive outcomes
for engagement and wellbeing. Tictrac's main customers are large insurance
companies, such as Aviva, Allianz, Prudential, Generali Employee Benefits and
Bupa Hong Kong.
In 2020, Puma Funds invested £5m in Tictrac, to capitalise on the technology
investments made, and build out its distribution and content provision. On 3
May 2022, the Company successfully exchanged on a sale of this position and
realise gains. This generated a cash multiple of nearly twice investment
for the Company, equating to a 38% p.a. IRR.
SECTOR OVERVIEW
There is no doubt that the pandemic brought about change to many industries,
but none more so than those dedicated to employee health and wellbeing. The
toll that the pandemic took on many people's mental health, as well as the
changing nature of most office work, have led many employers to reassess the
wellbeing benefits they provide, and greater focus is now being placed on
holistic and mental health and wellbeing. In a recent survey by JLL, 86% of
employers in the UK stated they were changing their approach to employee
health and wellbeing as a result of Covid-19, and more than half of US
companies are now providing dedicated mental and emotional health programmes;
50% of companies in Asia Pacific are enhancing their healthcare benefits.
In addition, a number of companies are now increasingly looking at data and
wearable tech, to see how they can better support their workforce. Apps that
can track cognitive function and help deliver personalised insights,
competitions that seek to incentivise collective health and wellbeing, along
with tailored health programmes and digital coaching, are all being considered
by companies, large and small. It's no wonder then, that some forecasters
estimate the market for employee wellness software to be worth $370m by 2026.
SUSTAINABILITY
Tictrac's sole purpose is to drive better engagement in people's health and
wellness; it has a huge amount of data from a number of large organisations it
works with. It suggests huge successes in terms of employee wellbeing,
including:
· 65% increase in completed health assessment.
· 52% uptake of customers onboarded to wellness programmes.
· 40% increase in health engagement.
WHY WE'VE INVESTED
Tictrac offers a complete health and wellness solution, which has been
specifically designed to meet the needs of its customers and their employees.
Over the last few years the company has built strong relationships with a
number of large insurers, and is continuing to build out its offering to
include more bespoke content and additional services.
The founders have assembled a strong management team, which they continue to
add to with new specialist skills, and they have gained a strong foothold in
an industry that has seen a surge in interest in recent years.
Tictrac continues to win new clients - Howdens was a notable win in 2021- and
it has a number of pipeline developments with clients across Europe and Asia.
MANAGEMENT TEAM
Tictrac has made a number of new hires recently, including the appointment of
James Henson as Chief Product and Technology Officer. James previously worked
at Just Eat, BorrowMyDoggy and Moonpig.
AWARDS
• Innovator of the Year, British Small Business Awards
2018
• Hottest Health Tech Start-up Finalist, European Tech
Start-up Awards 2018
KEY PLANS FOR THE FUTURE
Tictrac plans to continue building upon its established relationships with the
large insurers. As employee benefits programmes become more holistic and
further embedded into organisations beyond the key pension/life/health
insurance provision, the ability to provide meaningful engagement and data
with employees' health will be key.
£5m Investment (VCT 13 participation £1.85m)
POST BALANCE SHEET EVENT
The Puma Private Equity team successfully realised its position held in
TicTrac on 3 May 2022, delivering a 1.9x cash return.
Designed for high performance
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).
Puma Funds have made a number of investments into Dymag: £3.6m in December
2018, £1.2m in February 2020, £1.7m in October 2020 and £1.5m in October
2021. These investments have been made to improve scale and reduce production
costs - particularly of carbon- hybrid automotive wheels, which are seeing
significant demand growth.
SECTOR OVERVIEW
Removing surplus weight from vehicle components, or "lightweighting" as it is
known, is very important in automotive technology. It interacts well with two
current global megatrends - emissions reductions, and the global push towards
electric vehicles (EVs). Lighter vehicles use less fuel, and EVs are powered
by large, heavy batteries, meaning that any weight saving amongst the rest of
the vehicle components is a premium.
Lightweight wheels can allow substantial weight savings in other parts of a
vehicle, due to the principal of "un-sprung mass". Wheels are un-sprung mass,
and 1kg of weight saved in the wheels of a vehicle can allow up to 8kg to be
reduced elsewhere. This multiplier of up to 8x increases the premium on the
wheels.
Given these dynamics, the carbon wheels market is estimated to grow at over
32.3% CAGR between 2020 and 2026.
SUSTAINABILITY
Lightweighting is an important part of emissions reduction for internal
combustion powered vehicles, and also a critical step for the enhancement of
electric vehicle technology.
KEY PLANS FOR THE FUTURE
During what was a challenging time during the Covid pandemic, Dymag won over
20 niche OEM wheel projects in the UK and USA, and signed long-term supply
contracts for BX-F™ carbon rims with 14 aftermarket wheel brands worldwide.
Its focus continues to be on securing strategic distribution, and it is
working on several other niche wheel brand deals in Switzerland, the UK and
Latin America, which will they are aiming to announce later this year.
£8m Investment (VCT 13 participation £2.26m)
WHY WE'VE INVESTED
Dymag is a notable player in its rapidly growing field. It has a
well-protected suite of intellectual property around its technology and
manufacturing processes, which acts as a substantial barrier to entry for
competitors.
Dymag is seeing revenue growth, as its customer base and channels to market
increase. YOY growth is averaging 35% over the past two years: impressive,
given the restrictions of supply chain throughout the Covid-19 pandemic
environment.
Puma Funds' investments into Dymag have supported an ongoing process of
driving efficiencies in production processes to lower unit cost, including
relocation to a new factory in Chippenham, which was open and fully
operational by mid-February 2021. Investment has also been used to develop a
more sophisticated sales and marketing function, to increase the product range
and to reduce dependence on external suppliers.
Dymag is well positioned to capitalise on the predicted growth in the carbon
wheels market.
MANAGEMENT TEAM
Investments into the management team have been made throughout the life of the
investment.
Tom de Lange joined as CEO in October 2019 from Dyson, and is a key part of
moving the company forward.
Tom Ellaway - joined in March 2022 as Head of Sales and Marketing.
Additional hires have also been made into the finance and manufacturing teams,
and a Manufacturing Director has accepted an offer, due to start in Q3.
These hires have been made to ensure efficiency and quality standards remain
constant as the company moves to multiple shift patterns.
Continuing to build more meaningful connections
Influencer
Influencer is a data-driven marketing solution that specialises in delivering
campaigns across social media platforms. 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.
Puma Funds invested £3m in August 2019 to drive innovations on its
proprietary social media platform - Waves - and help the organisation expand
its global presence. Waves is leading the way in terms of simplifying the
influencer marketing process for both brands and creators, and Influencer
recently announced that it had been appointed an official TikTok Marketing
Partner, and will be able to integrate with its Creator Market place API.
SECTOR OVERVIEW
Influencer marketing continues to grow as a marketing channel, and the sector
is forecast to be worth more than $16.4bn in 2022. Increasingly, brands are
seeking to connect more deeply and on a wider range of topics with their
audiences, and research has highlighted that 75% of brand marketers intend
to dedicate a budget specifically to influencer marketing in 2022.
Brand endorsement by public figures, after all, is not a new phenomenon.
History is littered with examples of celebrities lending their 'brand' to
other organisations - from David Beckham (Brietling, Sainsbury's, Samsung,
H&M and Coty) to Roger Federer (Gillette, Rolex, Uniqlo). Social media
platforms have, however, enabled those that are relatively 'unknown' to enter
the arena, and to amass regular viewers that offer the same level of
broadcasting potential and influence as celebrities. A good example is Molly
Mae Hague (Beauty Works and PrettyLittleThing), who having taken part in a TV
programme has amassed so many followers, she is commanding six-figure deals
to endorse brands across a range of channels. Influencer marketing enables
brands to deliver content to target audiences effectively and measurably.
WHY WE'VE INVESTED
While influencer marketing is undoubtedly growing, as we head into uncertain
economic times, the ability to ensure your brand spend is measurable and
accountable is essential. Influencer
has a robust platform that enables brands to measure more effective ROI on
their use of social channels.
Influencer is backed by award-winning entrepreneurs: Ben Jeffries, who leads
the company as CEO, and YouTuber and creator Caspar Lee, who serves as Chief
Visionary Officer. Caspar brings great understanding of the creator landscape,
and ensures the company attracts the best creators, as well as working with
leading brands. Together they lead a highly motivated and highly skilled
management team, whose knowledge and understanding of the fast-moving sector
has been hugely impressive.
At the point Puma Funds was invested, the revenue growth was 420% and despite
the many challenges faced by the Covid-19 pandemic, the company grew nearly x3
in 2021-22. Ben, Caspar and the wider Influencer team's knowledge of the
influencer marketing space, is pivotal in being able to capitalise on the
continued growth this sector is experiencing.
Influencer has built a great reputation in the UK, and is using this to
springboard its growth in the US, the Middle East and Europe, where there
remains significant potential to build a strong client base.
Following the investment Puma Funds made in 2019, Influencer was named an
official Facebook and Instagram Marketing Partner. Not only does this
establish Influencer as a leader in the influencer marketing space, but it
also means the business will be able to distribute content directly through
the Facebook and Instagram networks and their wider digital portfolios.
The business has grown to more than 70 people, and has opened offices in Dubai
and New York, alongside its base in London.
MANAGEMENT TEAM
Since our investment, Influencer has made a number of key hires to its
leadership team, including:
Chief Finance Officer - Suzanne Burrows. Suzanne is a very experienced CFO,
with multiple years serving in finance roles in the media space.
Chief Product Officer - Rafael Franco. Rafael has a vast amount of tech
experience in the adtech space (previously at Unruly).
Group Operations - Alice Judge-Talbot Alice has experience managing key
accounts across marketing agencies including uding Billion Dollar Boy.
Carly Ash as Chief People Officer and Olly Gosling as Strategy Director.
SUSTAINABILITY
As a relatively young company, Influencer was designed to be an inclusive
workplace from Day 1. The team believe that the diversity of their workforce
should reflect the communities they serve, and they aim to provide inclusive
and accessible services for all. They have also worked hard to outline the
steps they can take as an organisation to continue to improve, and have made a
number of public pledges in this regard.
AWARDS WON
Influencer has won a number of awards, including:
• Listed as one of Campaigns 2021 Best Places to Work
• Listed as 11th in the MarTech 50
• Shortlisted as Influencer Marketing Agency of the Year
at the Blogosphere Awards 2021
KEY PLANS FOR THE FUTURE
Influencer is making healthy profits, which it is using to continue to invest
in its Wave platform, so that it can refine its campaign performance and
evidence the efficiencies of influencer marketing campaigns, which is pivotal
as we head into more turbulent times.
It is also investing heavily in its sales and distribution, and has grown a
number of key accounts and strategic partnerships with agencies and brands
across its network.
£3m Investment (VCT 13 participation £1.8m)
Brewing to the next level
Hot Copper
The Hot Copper Pub Company merged with two Brewhouse and Kitchen franchisee
companies, which were backed by Puma managed funds, in December 2020.
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.
Puma Funds invested £20.2 million to provide growth capital for the build out
of the overall Brewhouse & Kitchen branded estate.
SECTOR OVERVIEW
The hospitality sector has been one of the most heavily affected by the
restrictions imposed under the Covid-19 pandemic, and many businesses have
suffered heavy financial losses as a result. Revenues in recent months have
improved significantly, now that people are returning to work and
socialising once more. However, the short-term outlook for the sector remains
mixed.
Recruitment and retention of good-quality staff are challenging, particularly
since many left the sector during 2020/21. Recent months have seen
improvements in vacancy rates, particularly in London, but significant
increases in inflation have naturally led to rising wage
inflation. In addition, with the ongoing political tensions in Eastern Europe,
food, beverage and utility prices are rising rapidly, and these costs will
need to be passed on to consumers. A recent survey by UKHospitality among 340
businesses across the UK, indicated that prices would need
to rise by an average of 10% this year, to cover the huge increases in
overheads faced by the industry.
It is not yet known whether such price rises will significantly affect demand.
Forecasts suggest that while the value of the pub and bar market fell by
£13.9bn (61%) in 2020, the
market is expected to grow by 51.8% in 2022, reaching a value of £22.4bn. The
market is not seeing any significant consolidation yet, and while various
organisations have raised funds specifically for acquisition in the pub
sector, stock remains relatively limited.
KEY PLANS FOR THE FUTURE
As the sector continues to see increases in footfall and overall per head
spend, management are focused on managing the costs of rising inflation.
£20.2m Investment (VCT 13 participation £0.85m)
WHY WE'VE INVESTED
Unlike others, the company owns the freehold on a number of its sites, so the
overall value of the organisation is underpinned by assets. The management
team is highly experienced, and despite the challenges of Covid 19, they were
successful in managing their cash resources effectively. Revenues during
May-November 2021 were up 2.5% compared to the same period pre-pandemic which
is impressive given the number of localised lockdowns and sites being forced
to close from staff shortages throughout the period.
Hot Copper is well capitalised to navigate a demanding trading environment,
and the current focus is on managing rising utility and supplier prices to
ensure any price rises are as low as possible.
MANAGEMENT TEAM
Jody Bennett commenced in November 2021, as Head of People with considerable
experience and most recently covered a similar role in the hospitality sector
with The Liberation Group.
AWARDS
UK best pub employer, UK Publican Awards 2021/22.
SUSTAINABILITY
The company has made significant investments to improve its sustainability and
environmental impact and is on a journey of continuous improvement. It has
made real inroads into reductions in energy usage including the launch of
MinuteView - an Energy Performance Portal - for immediate real time tracking
of energy use data within the business and they have recycled more than 66,000
litres of oil. during the last 12 months. They are installing high power and
low energy consumption grills across the entire state. The expectation is that
this will deliver an 8.59% savings in gas consumption and an 18 month return
on capital employed.
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 is run by Dr Stuart Rollason. Dr Rollason is a highly experienced small
and mid-cap Fund Manager with over 20 years in the industry. His most recent
experience prior to joining the Investment Manager was with Kestrel Partners
LLP. Prior to that, he managed a UK smaller company investment trust at
Bluehone and £230m of UK smaller company pension assets at 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. The Company's
portfolio experienced recovery of the material falls owing to the pandemic
during the period, the tail end of the period saw a rise in uncertainty due to
geopolitical and macroeconomic factors which resulted in a slowdown in the
portfolios gains, largely in line with the markets. From a position at the
beginning of the year where the Company held £1.36 million of listed
equities, by the year end this holding had increased to £1.53 million after
£31k of disposals, £39k of acquisitions and £166k of gains (some realised,
some not realised).
Puma Investment Management Limited
23 May 2023
Investment Portfolio Summary
As at 28 February 2022
Valuation Cost Gain/(loss) Valuation as a % of Net Assets
£'000 £'000 £'000
Qualifying Investment - Unquoted
Ostmodern (ABW Group Limited) 509 500 9 1%
Connectr Limited 8,973 5,016 3,957 17%
Deazy Limiyted 2,900 2,900 - 6%
Dymag Group Limited 1,775 2,263 (488) 3%
Everpress Limited 1,514 1,514 (0) 3%
Hot Copper Pub Company Limited 269 847 (578) 1%
Influencer Limited 8,867 1,800 7,067 17%
Le Col Holdings Limited 5,047 2,528 2,519 10%
CameraMatics (MySafeDrive Limited) 2,839 1,963 876 5%
Ron Dorff (NQOCD Consulting Limited) 1,166 812 354 2%
Open House London Limited 2,293 1,800 493 4%
TicTrac Limited 3,548 1,850 1,698 7%
Total Qualifying Investments 39,699 23,793 15,906 76%
Liquidity Management
Barclays Plc 118 116 2 0.2%
Chemring Group Plc 105 70 35 0.3%
Diageo Plc 121 89 32 0.3%
Discoverie Group Plc 127 63 64 0.3%
Dixons Carphone Plc 63 109 (46) 0.2%
Headlam Group Plc 103 121 (18) 0.2%
ITV Group Plc 83 82 1 0.2%
Jackson Financial Inc 6 - 6 0.1%
Legal & General Group Plc 103 96 7 0.2%
Lloyds Banking Group Plc 121 74 47 0.3%
Provident Financial Plc 58 119 (61) 0.2%
Prudential Plc 86 133 (47) 0.2%
PZ Cussons Plc 85 94 (9) 0.2%
Royal Dutch Shell Plc 99 124 (25) 0.2%
Volution Group Plc 177 88 89 1.0%
WPP Plc 74 67 7 0.2%
Total Liquidity Management investments 1,529 1,445 83 3%
Total Investments 41,228 25,238 15,989 79%
Balance of Portfolio 11,125 11,125 21%
Net Assets 52,353 36,364 15,989 100%
Of the investments held at 28 February 2022, all are incorporated in England
and Wales, except MySafeDrive Limited which was incorporated in Ireland.
Strategic Report
The Directors present their Strategic Report of the Company for the year ended
28 February 2022.
The purpose of the report is to inform members of the company and help them
assess how the
directors have performed their duty to promote the success of the company.
PRINCIPAL ACTIVITIES AND STATUS
The Company was incorporated on 15 September 2016. The principal activity of
the Company is the making of investments in qualifying and non-qualifying
holdings of shares or securities. The Company is an investment company within
the meaning of Section 833 of the Companies Act 2006. The Company has been
granted provisional approval by the Inland Revenue under Section 274 of the
Income Tax Act 2007 as a Venture Capital Trust. The Directors have managed,
and continue to manage, the Company's affairs in such a manner as to comply
with Section 274 of the Income Tax Act 2007.
The Company's ordinary shares of 0.0005p each have been listed on the Official
List of the UK Listing Authority since 2 July 2018.
BUSINESS MODEL AND STRATEGY
The Company operates as a VCT to enable its shareholders to benefit from tax
reliefs available. The Directors aim to maximise tax free distributions to
shareholders by way of dividends paid out of income received from investments
and capital gains received following successful realisations. The Company's
strategy is set out in the Investment Policy set out below.
INVESTMENT POLICY
Puma VCT 13 plc seeks to achieve its overall investment objective (of
proactively managing the assets of the fund with an emphasis on realising
gains in the medium term) to maximise distributions from capital gains and
income generated from the Company's assets. It intends to do so whilst
maintaining its qualifying status as a VCT, by pursuing the following
Investment Policy:
· The Company may invest in a mix of qualifying and non-qualifying
assets.
· The qualifying investments may be quoted on AIM or a similar market
or be unquoted companies.
· The Company may invest in a diversified portfolio of growth
orientated qualifying companies which seek to raise new capital on flotation
or by way of a secondary issue.
· The Company has the ability to structure deals to invest in private
companies with an asset-backed focus to reduce potential capital loss.
· The Company had to have in excess of 80% of its assets invested in
qualifying investments as defined for VCT purposes by 28 February 2022.
The portfolio of non-qualifying investments will be managed with the intention
of generating a positive return. Subject to the Board and Investment Manager's
view from time to time of desirable asset allocation, it will comprise quoted
and unquoted investments (direct or indirect) in cash or cash equivalents,
secured loans, bonds, equities, vehicles investing in property and funds of
funds or on cash deposit.
A full text of the Company's investment policy can be found within the
Company's prospectus at www.pumainvestments.co.uk
(http://www.pumainvestments.co.uk) .
PRINCIPAL RISKS AND UNCERTAINTIES
The Board have carried out a robust assessment of the Company's emerging and
principal risks, including those that might threaten the Company's business
model, future performance, solvency or liquidity and reputation. The Board
receives regular reports from the Investment Manager and uses this information
along with their own knowledge and experience to identify any emerging risks,
so that appropriate procedures can be put in place to manage or mitigate such
risks.
The principal risks facing the Company relate to its investment activities,
specifically market price risk, as well as interest rate risk, credit risk and
liquidity risk. An explanation of these risks and how they are managed is
contained in note 14 to the financial statements. Additional risks faced by
the Company are listed below.
Market Conditions
There is a risk that the ongoing pandemic, together with the recent
geo-political and economic events, can have an impact the prospects of certain
of the Company's investments. The Investment Manager maintains close contact
with all investee companies to endeavour to mitigate the risk as far as
possible. Further details of the investments are set out in the Investment
Manager's Report.
Investment Risk
Inappropriate stock selection leading to underperformance in absolute and
relative terms is a risk which the Investment Manager and the Board mitigate
by reviewing performance throughout the year and formally at Board meetings.
There is also a regular review by the Board of the investment mandate and
long-term investment strategy and monitoring of whether the Company should
change its investment strategy.
Regulatory Risk
The Company operates in a complex regulatory environment and faces a number of
related risks. A breach of s274 of the Income Tax Act 2007 could result in the
Company being subject to capital gains on the sale of investments. A breach of
the VCT Regulations could result in the loss of VCT status and consequent loss
of tax relief currently available to shareholders. Serious breach of other
regulations, such as the UKLA Listing Rules and the Companies Act 2006 could
lead to suspension from the Stock Exchange.
The Board receives quarterly reports in order to monitor compliance with
regulations.
In addition, to the principal risks explained above, the principal uncertainty
that may affect the Company relate to material changes to the VCT regulations.
The Board continue to monitor this and will take appropriate action if
required.25
RISK MANAGEMENT
The Company's investment policy allows for a large proportion of the Company's
assets to be held in unquoted investments. These investments are not publicly
traded so there is not a liquid market for them. Therefore, these investments
may be difficult to realise.
The Company manages its investment risk within the restrictions of maintaining
its qualifying VCT status by using the following methods:
· the active monitoring of its investments by the Investment Manager
and the Board;
· seeking Board representation associated with each investment, if
possible;
· seeking to hold larger investment stakes by co-investing with other
companies managed by the Investment Manager,
· so as to gain more influence over the investment;
· ensuring a spread of investments is achieved.
BUSINESS REVIEW AND FUTURE DEVELOPMENTS
The Company's business review and future developments are set out in the
Chairman's Statement, the Investment Manager's Report and Investment Portfolio
Summary.
KEY PERFORMANCE INDICATORS
At each board meeting, the Directors consider a number of performance measures
to assess the Company's success in meeting its objectives. The Board believes
the Company's key performance indicators are movement in NAV per ordinary
share and Total Return per ordinary share. The Board considers that the
Company has no non-financial key performance indicators.
In addition, the Board considers the Company's compliance with the Venture
Capital Trust Regulations to ensure that it will maintain its VCT status. An
analysis of the Company's key performance indicators and the performance of
the Company's portfolio and specific investments is included in the Chairman's
Statement, the Investment Manager's Report and the Investment Portfolio
Summary.
VIABILITY STATEMENT
The Directors have conducted a robust assessment of the principal risks facing
the Company including those that would threaten its business model, future
performance, solvency or liquidity. This is summarised above. The Directors
have assessed the prospects of the Company for the three-year period from the
balance sheet date. This is a period for which developments are considered to
be reasonably foreseeable. This review included consideration of compliance
with VCT regulations, the Company's current financial position and expected
cash flows for the period and the current economic outlook, including the
ongoing impact of Covid-19.
Based on this review and the fact that the Company's listed shares are held
for liquidity purposes and will be sold as and when required, the Directors
have concluded that there is a reasonable expectation that they will have
access to adequate cash resources to enable the Company to continue in
operation and meet its liabilities as they fall due over the three-year period
to 28 February 2025.
SECTION 172 STATEMENT - DUTY TO PROMOTE THE SUCCESS OF THE COMPANY
Section 172 of the Companies Act requires directors of a company to act in the
way they consider, in good faith, would be most likely to promote the
success of the company for the benefit of its members as a whole, and in doing
so have regard (amongst other matters) to:
a) the likely consequences of any decision in the long term,
b) the interests of the company's employees,
c) the need to foster the company's business relationships with
suppliers, customers and others,
d) the impact of the company's operations on the community and
the environment,
e) the desirability of the company maintaining a reputation for
high standards of business conduct, and
f) the need to act fairly as between members of the company.
This section of the Strategic Report also sets out the disclosures required in
respect how the company engages with suppliers, customers and others in a
business relationship with the company.
The company does not have any employees and delegates day to day operations to
service providers. The Board's principal concern is to focus on the needs and
priorities of its shareholders as well as considering the wider community
including the company's service providers and its investee companies (as
disclosed in the Investment Manager's Report). The Board consider that the
company's shareholders are its customers and its suppliers are the service
providers.
The Annual Report as a whole sets out how the Board promotes the success of
the company for the benefit of its shareholders. The Board is focused on high
standards of business conduct and recognises the need to act fairly between
shareholders.
The Board engages with the investment manager at every board meeting to ensure
that there is a close and constructive working relationship and a good
understanding of the investee companies. The company also engages regularly
with its other service providers. The Board ensures that the interests of
current and potential stakeholders and the impact of the company's investments
on the wider community and the environment are taken into account when
decisions are made.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Strategic Report, the
Directors' Report, the Directors' Remuneration Report, and the financial
statements in accordance with applicable lawand regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law, the Directors have elected to prepare the
financial statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102
"The Financial Reporting Standard applicable in the UK and Republic of
Ireland", and applicable law). Under company law, the Directors must not
approve the financial statements unless they are satisfied that they give a
true and fair view of the state of affairs of the Company and of the profit or
loss of the Company for that period. In preparing those financial statements,
the directors are required to:
a) select suitable accounting policies and then apply them
consistently;
b) make judgements and accounting estimates that are reasonable
and prudent;
c) state whether applicable UK Accounting Standards (comprising
FRS 102 "The Financial
Reporting Standard applicable in the UK and Republic of Ireland", and
applicable law). have been followed, subject to any material departures
disclosed and explained in the financial statements;
d) prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the company will continue in
business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the financial statements and the Directors'
Remuneration Report comply with the Companies Act 2006. They are also
responsible for safeguarding the assets of the Company and hence for taking
reasonable steps for the prevention and detection of fraud and other
irregularities.
DIRECTORS' STATEMENT PURSUANT TO THE DISCLOSURE AND TRANSPARENCY RULES
Each of the Directors, whose names and functions are listed in the Directors'
Biographies, confirms that, to the best of each person's knowledge:
a) the financial statements, prepared in accordance with
United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards, comprising FRS 102 "The Financial Reporting Standard
applicable in the UK and Republic of Ireland" , and applicable law), give a
true and fair view of the assets, liabilities, financial position and profit/
(loss) of the Company; and
b) the Chairman's Statement, Investment Manager's Report, the
Strategic Report and Directors' Report contained in the Annual Report include
a fair review of the development and performance of the business and the
position of the Company together witha description of the principal risks and
uncertainties that it faces.
DIRECTORS' STATEMENT REGARDING ANNUAL REPORT AND ACCOUNTS
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website. The
financial statements are published on www.pumainvestments.co.uk, a website
maintained by the Investment Manager.
Legislation in the United Kingdom regulating the preparation
and dissemination of the financial statements may differ from legislation in
other jurisdictions.
ELECTRONIC PUBLICATION
The financial statements are published on www.pumainvestments. co.uk, a
website maintained by the Investment Manager. Legislation in the United
Kingdom regulating the preparation
and dissemination of the financial statements may differ from legislation in
other jurisdictions.
On behalf of the Board.
David Buchler
Chairman
23 May 2022
Income Statement
For the year ended 28 February 2022
Year ended 28 February 2022 Year ended 28 February 2021
Note Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gain on disposal of investments 8 (b) - 12,189 12,189 - 5,660 5,660
Investment income 2 52 - 52 21 - 21
52 12,189 12,241 21 5,660 5,681
Investment management fee 3 (175) (525) (700) (86) (257) (343)
Performance fee 3 - (1,897) (1,897) - (717) (717)
Other expenses 4 (340) - (340) (203) (1) (204)
(515) (2,422) (2,937) (289) (975) (1,264)
(Loss)/profit before tax (463) 9,767 9,304 (268) 4,685 4,417
Tax 5 - - - - - -
(Loss)/profit after tax (463) 9,767 9,304 (268) 4,685 4,417
(Loss)/earnings per share - basic and diluted 6 (1.77p) 37.48p 35.71p (1.68p) 29.35p 27.67p
All items in the above statement derive from continuing operations.
There are no gains or losses other than those disclosed in the Income
Statement.
The total column of this statement is the Statement of Total Comprehensive
Income of the Company prepared in accordance with FRS 102 'The Financial
Reporting Standard applicable in the UK and Republic of Ireland'. The
supplementary revenue and capital columns are prepared in accordance with the
Statement of Recommended Practice, 'Financial Statements of Investment Trust
Companies and Venture Capital Trusts' issued by the Association of Investment
Companies.
Balance Sheet
Note As at As at
28 February 2022
28 February 2021
£'000 £'000
Fixed assets
Investments 8 41,228 21,336
Current assets
Debtors 9 109 65
Cash 13,184 2,396
13,293 2,461
Current liabilities 10 (2,169) (861)
Net current assets 11,124 1,600
Net assets 52,352 22,936
Capital and Reserves
Share capital 12 20 11
Share premium 15,187 17,736
Capital reserve realised (2,216) (1,695)
Capital reserve unrealised 15,989 7,533
Revenue reserve 23,372 (649)
Total equity shareholders' funds 52,352 22,936
NAV per ordinary share 13 143.53p 125.77p
The financial statements were approved and authorised for issue by the Board
of Directors on 23 May 2022 and were signed on their behalf by:
David Buchler
Chairman
Statement of Cash Flows
Year ended 28 February 2022 Year ended 28 February 2021
£'000 £'000
Reconciliation of profit to cash flows from operating activities
Profit before tax 9,304 4,417
Gain on disposal of investments (12,189) (5,660)
(Decrease)/increase in debtors (44) 138
Increase in creditors 1,308 766
Outflow from operating activities (1,621) (339)
Cash flows from investing activities
Purchase of investments (12,771) (2,580)
Proceeds on sale of investments 5,067 337
Outflow from investment activities (7,704) (2,243)
Cash flows from financing activities
Share issues 22,388 3,091
Share issue costs (427) (206)
Purchase of own shares (17) -
Dividends paid to shareholders (1,831) -
Inflow from financing activities 20,113 2,885
Increase in cash and cash equivalents 10,788 303
Opening cash and cash equivalents 2,396 2,093
Closing cash and cash equivalents 13,184 2,396
Statement of Changes in Equity
Called up share capital Share premium account Capital reserve - realised Capital reserve - unrealised Revenue reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
As at 1 March 2020 10 14,852 (649) 1,802 (381) 15,634
Comprehensive income for the year (1,044) 5,729 (268) 4,417
Issue of shares 1 3,090 - - - 3,091
Share issue cost - (206) - - - (206)
Reserves movement - - (2) 2 - -
Balance as at 28 February 2021 11 17,736 (1,695) 7,533 (649) 22,936
Comprehensive income for the period - - 491 1,674 (212) 1,953
Issue of shares 3 7,023 - - - 7,026
Share issue cost - (258) - - - (258)
Share premium cancellation - (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
Dividends paid - - (1,831) - - (1,831)
Comprehensive income for the period - - (2,316) 9,917 (251) 7,350
Issue of shares 6 15,356 - - - 15,362
Share issue cost - (169) - - - (169)
Repurchase of own shares - - - - (17) (17)
Balance as at 28 February 2022 20 15,187 (2,216) 15,989 23,372 52,352
*Included in these reserves is an amount of £21.2 million (2021: nil) which
is considered to be distributable to shareholders.
The Capital reserve-realised includes gains/losses that have been realised in
the year due to the sale of investments, net of related costs. The Capital
reserve-unrealised represents the investment holding gains/losses and shows
the gains/losses on investments still held by the Company not yet realised by
an asset sale.
Share premium represents premium on shares issued less issue costs.
The revenue reserve represents the cumulative revenue earned less cumulative
distributions.
1. Accounting Policies
Accounting convention
Puma VCT 13 plc ("the Company") was incorporated in England on 15 September
2016 and is registered and domiciled in England and Wales. The Company's
registered number is 10376236. The
registered office is Cassini House, 57 St James's Street, London SW1A 1LD. The
Company is a public limited company (limited by shares) whose shares are
listed on LSE with a premium listing. The
Company's principal activities and a description of the nature of the
Company's operations are disclosed in the Strategic Report.
The financial statements have been prepared under the historical cost
convention, modified to include investments at fair value, and in accordance
with the requirements of the Companies Act 2006,
including the provisions of the Large and Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008 and with FRS 102 'The Financial
Reporting Standard applicable in the UK and Republic of Ireland' ("FRS 102")
and the Statement of Recommended Practice, 'Financial Statements of Investment
Trust Companies and Venture Capital Trusts' issued in October 2019 by the
Association of Investment Companies ("the SORP"). Monetary amounts in these
financial statements are rounded to the nearest whole £1,000, except where
otherwise indicated.
Going concern
The Directors have considered a period of 12 months from the date of this
report for the purposes of determining the Company's going concern status
which has been assessed in accordance with the guidance issued by the
Financial Reporting Council. The Directors have a reasonable expectation that
the Company has adequate resources to continue in operational existence for
the foreseeable future and believe that it is appropriate to continue to apply
the going concern basis in preparing the financial statements. This is
appropriate as the Company's listed shares are held for liquidity purposes and
will be sold as and when required to ensure the Company has adequate cash
reserves to meet the Company's running costs.
Investments
All investments are measured at fair value. They are all held as part of the
Company's investment portfolio and are managed in accordance with the
investment policy.
Listed investments are stated at bid price at the reporting date.
Unquoted investments are stated at fair value by the Directors with reference
to the International Private Equity and Venture Capital Valuation Guidelines
("IPEV") as follows:
· Investments which have been made within the last twelve months or
where the investee company is in the early stage of development will usually
be valued at either the price of recent investment or cost except where the
company's performance against plan is significantly different from
expectations on which the investment was made, in which case a different
valuation methodology will be adopted.
· Investments in debt instruments will usually be valued by applying a
discounted cash flow methodology based on expected future returns of the
investment, to arrive at the fair value.
· Alternative methods of valuation such as multiples or net asset value
may be applied in specific circumstances if considered more appropriate.
· Realised surpluses or deficits on the disposal of investments are
taken to realised capital reserves, and unrealised surpluses and deficits on
the revaluation of investments are taken to unrealised capital reserves.
Realised surpluses or deficits on the disposal of investments are taken to
realised capital reserves, and unrealised surpluses and deficits on the
revaluation of investments are taken to unrealised capital reserves.
Income
Dividends receivable on listed equity shares are brought into account on the
ex-dividend date. Dividends receivable on unquoted equity shares are brought
into account when the Company's right to receive payment is established and
there is no reasonable doubt that payment will be received. Interest
receivable is recognised wholly as a revenue item on an accruals basis.
Performance fees
As approved at the General Meeting in the year, performance fee arrangements
for Puma Investments and members of the investment management team have been
amended. The performance incentive fee payable in relation to each accounting
period (as determined from the audited annual accounts for that period) is now
subject to the Performance Value per share being at least 110p at the end of
the relevant period. Performance Value per Share is calculated as the total of
the net asset value, the performance incentive fees previously paid or accrued
by the Company for all previous accounting periods and the cumulative amount
of dividends paid by the Company before the relevant accounting reference
date, with the aggregate amount of these divided by the number of Ordinary
Shares in issue in the Company on the relevant date (excluding the Performance
Incentive Shares).
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 110p and the highest
Performance Value per Share at the end of any previous accounting period),
multiplied by the number of relevant Ordinary Shares in issue at the end of
the relevant period (excluding any Performance Incentive Shares). That amount
will be allocated, at the discretion of the Investment Manager, between the
Investment Manager itself and the Management Team.
At each balance sheet date, the Company accrues for any performance fee
payable based on the calculation set out above.
Expenses
All expenses (inclusive of VAT) are accounted for on an accruals basis.
Expenses are charged wholly to revenue, with the exception of:
· expenses incidental to the acquisition or disposal of an investment
charged to capital; and
· the investment management fee, 75% of which has been charged to
capital to reflect an element which is, in the directors' opinion,
attributable to the maintenance or enhancement of the value of the Company's
investments in accordance with the Board's expected long-term split of return;
and
· the performance fee which is allocated proportionally to revenue and
capital based on the respective contributions to the Net Asset Value.
Taxation
Corporation tax is applied to profits chargeable to corporation tax, if any,
at the applicable rate for the year. The tax effect of different items of
income/gain and expenditure/loss is allocated between capital and revenue
return on the marginal basis as recommended by the SORP.
Deferred tax is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date, where transactions or
events that result in an obligation to pay more, or right to pay less, tax in
the future have occurred at the balance sheet date. This is subject to
deferred tax assets only being recognised if it is considered more likely than
not that there will be suitable taxable profits from which the future reversal
of the underlying timing differences can be deducted. Timing differences are
differences arising between the Company's taxable profits and its results as
stated in the financial statements which are capable of reversal in one or
more subsequent periods. Deferred tax is measured on a non-discounted basis at
the tax rates that are expected to apply in the periods in which timing
differences are expected to reverse, based on tax rates and laws enacted or
substantively enacted at the balance sheet date.
Reserves
Realised losses and gains on investments, transaction costs, the capital
element of the investment management fee and taxation are taken through the
Income Statement and recognised in the Capital Reserve - Realised on the
Balance sheet. Unrealised losses and gains on investments and the capital
element of the performance fee are also taken through the Income Statement and
are recognised in the Capital Reserve - Unrealised.
Debtors
Debtors include other debtors and accrued income which is recognised at
amortised cost, equivalent to the fair value of the expected balance
receivable.
Creditors
Creditors are initially measured at the transaction price and subsequently
measured at amortised cost, being the transaction price less any amounts
settled.
Dividends
Final dividends payable are recognised as distributions in the financial
statements when the Company's liability to make payment has been established.
The liability is established when the dividends proposed by the Board are
approved by the Shareholders. Interim dividends are recognised when paid.
Key accounting estimates and assumptions
The Company makes estimates and assumptions concerning the future. The
resulting accounting estimates and assumptions will, by definition, seldom
equal the related actual results. The estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of
assets within the next financial year relate to the fair value of unquoted
investments, especially due to the ongoing impact of COVID-19. Further
details of the unquoted investments are disclosed in the Investment Manager's
Report and notes 8 and 14 to the financial statements.
2. Income
Year ended 28 February 2022 Year ended 28 February 2021
£'000 £'000
Income from investments
Qualifying interest income 20 -
Dividends received 32 21
52 21
3. Investment Management and Performance Fees
Year ended 28 February 2022 Year ended 28 February 2021
£'000 £'000
Investments management fee 700 343
Performance fee (see note 11) 1,897 717
2,597 1,060
Puma Investment Management Limited ("Puma Investments") has been appointed
as the Investment Manager of the Company for an initial period of five years,
which can be terminated by not less than twelve months' notice, given at any
time by either party, on or after the fifth anniversary. The Board is
satisfied with the performance of the Investment Manager. Under the terms of
this agreement Puma Investments will be paid an annual fee of 2% of the Net
Asset Value payable quarterly in arrears calculated on the relevant quarter
end NAV of the Company. These fees commenced on 19 March 2018 (the date of the
first share allotment). These fees are capped, the Investment Manager having
agreed to reduce its fee (if necessary to nothing) to contain total annual
costs (excluding performance fee and trail commission) to 3.5% the Company's
net assets. Total costs this year were 2% of the Company's net assets as at 28
February 2022 (2021: 3.5%).
In addition to the investment manager fees disclosed above, during the year,
Puma Investments Management Limited charged fees of £315,634 (2021: £92,746)
as commission for share issue costs.
4. Other expenses
Year ended 28 February 2022 Year ended 28 February 2021
£'000 £'000
Accounting and administration services 120 60
Directors' fees 61 60
Social security costs 8 4
Auditor's fees for statutory audit 54 33
Transaction costs - 1
Other expenses 97 46
340 204
Puma Investments provides accounting and administrative services to VCT 13,
payable quarterly in advance. The fee is calculated as 0.35% of VCT 13's NAV,
using the latest published NAV and the number of shares in issue at each
quarter end.
Directors' fees paid in year are disclosed in the Directors' Remuneration
Report. Company has no employees other than non-executive Directors (2021:
none). The average number of non-executive Directors during the year was 3
(2021: 3).
Auditor's fees of £45,000 (2021: £27,500) has been grossed up in the table
above to be inclusive of VAT. No non-audit services were provided by the
Company's auditor in the year (2021: £270 for iXBRL tagging of the year ended
28 February 2021 financial statements).
5. Tax
Year ended 28 February 2022 Year ended 28 February 2021
£'000 £'000
Factors affecting tax charge for the period
Profit before tax 9,304 4,417
Current tax at 19% (2021: 19%) 1,768 839
Gains on investments (2,316) (1,075)
Tax losses carried forward 548 236
- -
Capital returns are not taxable as the Company is exempt from tax on realised
capital gains whilst it continues to comply with the VCT regulations, so no
corporation tax is recognised on capital gains or losses. Due to the intention
to continue to comply with the VCT regulations, the Company has not provided
for deferred tax on any realised or unrealised capital gains and losses. No
deferred tax asset
has been recognised in respect of the tax losses carried forward due to the
uncertainty as to recovery.
6. Basic and diluted return/(loss) per Ordinary Share
Year ended 28 February 2022
Revenue Capital Total
£'000 £'000 £'000
Comprehensive income for the year (463,000) 9,767,000 9,304,000
Weighted average number of shares in issue for the year 29,951,765 29,951,765 29,951,765
Less: weighted average number of management incentive shares (see note 11) (3,895,834) (3,895,834) (3,895,834)
Weighted average number of shares for purposes of return/(loss) per share 26,055,931 26,055,931 26,055,931
calculations
(Loss)/return per share (1.77)p 37.48p 35.71p
Year ended 28 February 2021
Revenue Capital Total
£'000 £'000 £'000
Total comprehensive income for the year (268,000) 4,685,000 4,417,000
Weighted average number of shares in issue for the year 19,858,132 19,858,132 19,858,132
Less: weighted average number of management incentive shares (see note 11) (3,895,834) (3,895,834) (3,895,834)
Weighted average number of shares for purposes of return/(loss) per share 15,962,298 15,962,298 15,962,298
calculations
(Loss)/return per share (1.68)p 29.35p 27.67p
7. Dividends
During the year, an interim dividend of 6.5p per Ordinary share was paid from
Capital reserves realised in relation year ended 28 February 2022 totalling
£1.8 million, the Directors do not propose a final dividend in relation to
the year ended 28 February 2022 (2021: £nil). The Directors declared an
interim dividend of 4.5p per Ordinary share in relation to the year ended 28
February 2023, the dividend was paid on 24 March 2022 totalling £2.0
million.
8. Investments
(a) Movements in investments Qualifying venture capital investments Non-qualifying investments Total
£'000 £'000 £'000
Book cost at 1 March 2021 12,358 1,445 13,803
Net unrealised at 1 March 2021 7,623 (90) 7,533
Valuation at 01 March 2021 19,981 1,355 21,336
Purchases at cost 12,732 38 12,771
Disposals:
Proceeds (5,036) (32) (5,067)
Realised net gains/(losses) on disposals 585 12 597
Net unrealised 11,436 155 11,591
Valuation at 28 February 2022 39,699 1,528 41,228
Book cost at 28 February 2022 23,793 1,445 25,238
Net unrealised gains at 28 February 2022 15,906 83 15,989
Valuation at 28 February 2022 39,699 1,528 41,228
(b) Gains/(losses) on investments
Year ended 28 February 2022 Year ended 28 February 2021
£'000
Realised gains/(losses) on investment 597 (69)
Unrealised gains/(losses) in period 11,592 5,729
12,189 5,660
The Company received £5.1 million (2021: £337,000) from investments sold in
the year. The book cost of these investments when they were purchased was
£1.3 million (2021: £407,000). The Company's investments are revalued each
year, so until they are sold any unrealised gains or losses are included in
the fair value of the investments.
(c) Quoted and unquoted investments
Market value as at 28 February 2022 Market value as at 28 February 2021
£'000 £'000
Quoted investments 1,529 1,355
Unquoted investments 39,699 19,981
41,228 21,336
Further details of these investments (including the unrealised gains in the
year) are disclosed in the Chairman's Statement, Investment Manager's Report,
Investment Portfolio Summary and Significant Investments.
9. Debtors
As at 28 February 2022 As at 28 February 2021
£'000 £'000
Other debtors 90 65
Accrued income 19 -
109 65
Other debtors includes cash held by the company's brokers of £84,000 (2021:
£60,000).
10. Current liabilities - Creditors
As at 28 February 2022 As at 28 February 2021
£'000 £'000
Accruals 2,156 848
Redeemable preference shares 13 13
2,169 861
Redeemable preference shares were issued for total consideration £12,500 to
Puma Investment Management Limited, being one quarter paid up, so as to enable
the Company to obtain a certificate under s.761 of the Companies Act 2006.
Each of the redeemable preference shares carries the right to a fixed,
cumulative, preferential dividend of 0.1% per annum (exclusive of any imputed
tax credit available to shareholders) on the nominal amount thereof but
confers no right to vote except as otherwise agreed by the holders of a
majority of the Shares. On a winding-up, the redeemable preference shares
confer the right to be paid the nominal amount paid on such shares. The
redeemable preference shares are redeemable at par at any time by the Company
and by the holder. Each redeemable preference share which is redeemed, shall,
thereafter be cancelled without further resolution or consent.
11. 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 aggregate excess on any amounts realised by the
Company in excess of £1.05 per Ordinary Share, the Performance Target. This
agreement was amended by a deed of variation on 28 June 2018 to extend the
terms to cover the extended fundraising period.
Following approval by shareholders, on 18 November 2020 this agreement was
amended by a deed of variation. Under the new agreement, Puma Investments and
members of the investment management team will be entitled to a performance in
relation to each accounting period as determined from the audited annual
accounts for that period, subject to the Performance Value per share being at
least 110p at the end of the relevant period. Performance Value per Share is
calculated as the total of the net asset value, the performance incentive fees
previously paid or accrued by the Company for all previous accounting periods
and the cumulative amount of dividends paid by the Company before the relevant
accounting reference date, with the aggregate amount of these divided by the
number of Ordinary Shares in issue in the Company on the relevant date
(excluding the Performance Incentive Shares).
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 110p and the highest
Performance Value per Share at the end of any previous accounting period),
multiplied by the number of relevant Ordinary Shares in issue at the end of
the relevant period (excluding any Performance Incentive Shares). That amount
will be allocated, at the discretion of the Investment Manager, between the
Investment Manager itself and the Management Team.
Under the previous performance incentive arrangement (set out above) 3,895,834
Ordinary Shares are held by the Investment Manager and members of the
investment management team ("Performance Incentive Shares"). Under the terms
of the incentive arrangement, all rights to dividends will be waived except,
amounts payable under the new performance incentive fee will, where possible,
be paid as a dividend through these Performance Incentive Shares.
Under the new agreement, a performance fee of £1,897,000 (2021: £717,000)
has been calculated under the terms of the new performance incentive
arrangement. This is calculated as 20% of the amount by which the Performance
Value exceeds the High Water Mark (129.71p), divided by the number of shares
in issue. The shares in issue for this calculation exclude the 3,895,834
Performance Incentive Shares under the previous arrangement.
12. Called Up Share Capital
As at 28 February 2022 As at 28 February 2021
£'000 £'000
Allotted, called up and fully paid: 20 11
40,369,963 (2021: 22,132,844) Ordinary shares of 0.05p each
Allotted, called up and partly paid: 13 13
50,000 (2021: 50,000) Redeemable preference shares of £1 each
During the year, 18,251,319 shares were issued at an average price of 122.66p
per share (2021: 2,653,672 shares were issued at an average price of 116.5p
per share). The consideration received for these shares was £22.4 million
(2021: £3.1 million).
On 23 February 2022 the Company repurchased 14,200 Ordinary shares.
Following the period end, a further 11,908,313 shares were issued at an
average price of 123.97p. The consideration received for these shares was
£14.8 million.
13. Net Asset Value per Ordinary Share
As at As at
28 February 2022
28 February 2021
Net assets 52,352,000 22,936,000
Number of shares in issue 40,369,963 22,132,844
Less: management incentive shares (see note 11) (3,895,834) (3,895,834)
Number of shares in issue for purposes of Net
Asset Value per share calculation 36,474,129 18,237,010
Net asset value per share
Basic 143.53p 125.77p
14. Financial Instruments
The Company's financial instruments comprise its investments, cash balances,
debtors and certain creditors. The fair value of all of the Company's
financial assets and liabilities is represented by the carrying value in the
Balance Sheet. Excluding cash balances, the Company held the following
categories of financial instruments at 28 February 2022:
As at 28 February 2022 As at 28 February 2021
£'000 £'000
Financial assets at fair value through profit 38,747 21,336
or loss
Financial assets that are debt instruments measured at amortised cost 2,591 65
Financial liabilities measured at amortised cost (2,169) (861)
39,169 20,540
Management of risk
The main risks the Company faces from its financial instruments are market
price risk, being the risk that the value of investment holdings will
fluctuate as a result of changes in market prices caused by factors other than
interest rate or currency movements, liquidity risk, credit risk and interest
rate risk. The Board regularly reviews and agrees policies for managing each
of these risks. The Board's policies for managing these risks are summarised
below and have been applied throughout the year.
Credit risk
Credit risk is the risk that the counterparty to a financial instrument will
fail to discharge an obligation or commitment that it has entered into with
the Company. The Investment Manager monitors counterparty risk on an ongoing
basis. The Company's maximum exposure to credit risk is as follows:
Credit risk As at 28 February 2022 As at 28 February 2021
£'000 £'000
Cash 13,184 2,396
Interest, dividends and other receivables 2,591 65
Investments in loans, loan notes and bonds 2,481 -
18,256 2,461
Credit risk arising on the sale of investments is considered to be small due
to the short settlement and the contracted agreements in place with the
settlement lawyers.
The cash held by the Company at the year-end is held in RBS. Bankruptcy or
insolvency of the bank may cause the Company's rights with respect to the
receipt of cash held to be delayed or limited. The Board monitors the
Company's risk by reviewing regularly the financial position of the bank and
should the credit quality of RBS deteriorate significantly, the Investment
Manager will, on instruction of the Board, move the cash holdings to another
bank.
Credit risk associated with interest, dividends and other receivables are
predominantly covered by the investment management procedures. Other
receivables as at 28 February 2022 was mainly cash held by the company's
brokers, that is subject to reviews consistent with the banks noted above.
Investments in loans and loan notes comprises a fundamental part of the
Company's venture capital investments, therefore credit risk in respect of
these assets is managed within the Company's main investment procedures.
Market price risk
Market price risk arises mainly from uncertainty about future prices of
financial instruments held by the Company. It represents the potential loss
the Company might suffer through holding investments in the face of price
movements. The Investment Manager actively monitors market prices and
reports to the Board, which meets regularly in order to consider investment
strategy.
The Company's strategy on the management of market price risk is driven by the
Company's investment policy as outlined in the Strategic Report. The
management of market price risk is part of the
investment management process. The portfolio is managed with an awareness of
the effects of adverse price movements through detailed and continuing
analysis, with an objective of maximising overall returns to shareholders.
Holdings in unquoted investments may pose higher price risk than quoted
investments. Some of that risk can be mitigated by close involvement with
the management of the investee companies along with review of their trading
results.
4% (2021: 6%) of the Company's investments are quoted investments and 96%
(2021: 94%) are unquoted investments.
Liquidity risk
Details of the Company's unquoted investments are provided in the Investment
Portfolio summary. By their nature, unquoted investments may not be readily
realisable and the Board considers exit strategies for these investments
throughout the period for which they are held. As at the year end, the Company
had no borrowings.
The Company's liquidity risk associated with investments is managed on an
ongoing basis by the Investment Manager in conjunction with the Directors and
in accordance with policies and procedures in place as described in the
Strategic Report and the Directors' Report. The Company's overall liquidity
risks are monitored on a quarterly basis by the Board. The Company maintains
access to sufficient cash resources to pay accounts payable and accrued
expenses.
Fair value interest rate risk
The benchmark that determines the interest paid or received on the current
account is the Bank of England base rate, which was 0.5% at 28 February 2022
(2021: 0.1%).
Cash flow interest rate risk
The Company has exposure to interest rate movements primarily through its cash
deposits which track the Bank of England base rate.
Interest rate risk profile of financial assets
The following analysis sets out the interest rate risk of the Company's
financial assets as at 28 February 2022.
Rate status Average interest rate Period until maturity Total
£'000
Cash at bank - RBS Floating 0.00% - 13,184
Loan and Loan notes Fixed 10.00% 53 months 2,481
Balance of assets Non-interest bearing - 38,587
54,522
The following analysis sets out the interest rate risk of the Company's
financial assets as at 28 February 2021.
Rate status Average interest rate Period until maturity Total
£'000
Cash at bank - RBS Floating 0.00% - 2,396
Balance of assets Non-interest bearing - 21,401
23,797
Foreign currency risk
The reporting currency of the Company is Sterling. The Company has not held
any non-Sterling investments during the year.
Fair value hierarchy
Financial assets and liabilities measured at fair value are disclosed using a
fair value hierarchy that reflects the significance of the inputs used in
making the fair value measurements, as follows:
· Level 1 - Fair value is measured using the unadjusted quoted price in
an active market for identical assets.
· Level 2 - Fair value is measured using inputs other than quoted
prices that are observable using market data.
· Level 3 - Fair value is measured using unobservable inputs.
Fair values have been measured at the end of the reporting year as follows:
2022 2021
£'000 £'000
Level 1
Investments listed on LSE 1,529 1,355
Level 3
Unquoted investments 39,699 19,981
41,228 21,336
The Level 3 investments have been valued in line with the Company's accounting
policies and IPEV guidelines. This comprises of both loan an equity
instruments, which are considered to be one instrument due to them being bound
together when assessing the portfolio's returns to the shareholders.
Further details of these investments are provided in the Significant
Investments section of the Annual Report.
15. Capital management
The Company's objectives when managing capital are to safeguard the Company's
ability to continue as a going concern, so that it can provide an adequate
return to shareholders by allocating its capital to assets commensurate with
the level of risk.
The Company must have an amount of capital, at least 80% (as measured under
the tax legislation) of which must be, and remain, invested in the relatively
high risk asset class of small UK companies within three years of that capital
being subscribed.
The Company accordingly has limited scope to manage its capital structure in
the light of changes in economic conditions and the risk characteristics of
the underlying assets. Subject to this overall constraint upon changing the
capital structure, the Company may adjust the amount of dividends paid to
shareholders, issue new shares, or sell assets to maintain a level of
liquidity to remain a going concern.
The Board has the opportunity to consider levels of gearing, however there are
no current plans to do so. It regards the net assets of the Company as the
Company's capital, as the level of liabilities is small, and the management of
those liabilities is not directly related to managing the return to
shareholders.
16. Contingencies, Guarantees and Financial Commitments
There were no commitments, contingencies or guarantees of the Company at the
year-end (2021: none).
17. Controlling Party
In the opinion of the Directors there is no immediate or ultimate controlling
party.
18. Post Balance Sheet Events
As detailed in note 12, since the year end 11,908,313 ordinary shares have
been issued for cash consideration of £14.8 million.
An interim dividend of 4.5p per Ordinary share in relation to the year ended
28 February 2023 was paid on 24 March 2022 totalling £2.0 million.
On 3 May 2022, the VCT realised it position in Tictrac Limited for total
proceeds of £3.6 million.
The financial information set out in this announcement does not constitute the
Company's statutory financial statements in accordance with section 434
Companies Act 2006 for the year ended 28 February 2022 but has been extracted
from the statutory financial statements for the year ended 28 February 2022
which were approved by the Board of Directors on 23 May 2022 and will be
delivered to the Registrar of Companies. The Independent Auditor's Report on
those financial statements was unqualified and did not contain any emphasis of
matter nor statements under s 498(2) and (3) of the Companies Act 2006.
The statutory accounts for the year ended 28 February 2021 have been delivered
to the Registrar of Companies and received an Independent Auditors report
which was unqualified and did not contain any emphasis of matter nor
statements under s 498(2) and (3) of the Companies Act 2006.
Copies of the full annual report and financial statements for the year ended
28 February 2022 will be available to the public at the registered office of
the Company at Cassini House, 57 St James's Street, London, SW1A 1LD and will
be available for download from
https://www.pumainvestments.co.uk/pages/view/investors-information-vcts.
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