REG - Sure Ventures PLC - Unaudited Interim Report 30th September 2021
08/12/2021 08:00
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RNS Number : 8366U Sure Ventures PLC 08 December 2021
Sure Ventures
plc
Unaudited Interim Report and Financial Statements
For the six months ended 30 September 2021
Company Number: 10829500
Table of Contents
1 Chairman's Statement
2 Investment Manager's Report
3 Interim Management Report
4 Alternative Performance Measures (APMs)
5 Financial Statements
Condensed Statement of Comprehensive Income
Condensed Statement of Financial Position
Condensed Statement of Changes in Equity
Condensed Statement of Cash Flows
Notes to the Condensed Interim Financial Statements
1 Chairman's Statement
Chairman's Statement
Dear Shareholders.
On behalf of my fellow directors, I am delighted to present the interim results of Sure Ventures plc (the 'Company') for the six months ended 30 September 2021.
FINANCIAL PERFORMANCE
The Company's performance for the half year to 30 September 2021 returned an
impressive net asset value ('NAV') total return per share of +16.47% (31
September 2020 +3.43%). This positive performance was due to a combination of
an uplift in the valuation of VividQ Limited ("VividQ"), that completed its
seed extension funding round during the period, and is held both as a direct
and an indirect investment, a Series A funding round uplift for Ambisense
Limited, and the continued improvement in the share price performance of the
two listed investments of ENGAGE XR Holdings plc (formerly known as VR
Education Holdings plc) ("ENGAGE") and Immotion Group plc ("Immotion"). Other
contributory factors to the strong performance in the period include the
realised gain from the sale of a part of the ENGAGE shareholding, a position
that has been strategically reduced to the value of the Company's original
investment in ENGAGE and also the receipt of final escrow funds from the
Company's first successful exit of Artomatix Limited, a transaction that
closed in December 2019 and which realised a x5 gain on the initial investment
in a 14-month timeframe.
In the period to 30 September 2021 the Company's NAV attributable to
shareholders grew steadily to £6.45m with only a limited marketing strategy
being employed by the Investment Manager. During recent weeks the Company's
share price has dipped to trade at small discount to its last published NAV,
however the Company considers this to be a temporary anomaly and believes in
the growth potential of its investment portfolio and that further positive
news in the coming one to two quarters will see a normalisation of the share
price premium to its NAV.
Portfolio Update
The Company's holdings comprise its 25.9% investment in Sure Valley Ventures.
This is a Sub-Fund of Suir Valley Fund ICAV (the 'Fund') to which the Company
has made a total commitment of €7m (increasing its initial commitment from
€4.5m in September 2019). As well as these investments the Company directly
holds - Immotion, which is a listed immersive virtual reality ('VR")
entertainment group and VividQ, a privately owned deep technology company
pioneering the application of holography in augmented reality ('AR') and VR.
The Fund portfolio includes one listed entity, ENGAGE a developer of VR
software and immersive experiences with a specific focus on education, and as
at the year end, a further thirteen privately held companies in the AR, VR,
internet of things ('IoT') and artificial intelligence ('AI') space, having
concluded its first successful portfolio company exit in December 2019 for x5
return of the original investment.
During the period the Fund announced one additional investment in Zefone
Limted t/a Smarttech247 (September 2021), an award-winning managed detection
and response company and a market leader in security operations, adding to the
diverse and well-balanced composition of the Fund's portfolio of investee
companies.
Further information on the investment portfolio is provided in the report of
the Investment Manager which follows this statement.
COMMITMENTS AND FUNDING
As previously mentioned, in 2019 the Company announced an increase in
subscription to the Fund of €2.5m taking its total commitment to €7m,
thereby increasing its share in the Fund from 21.6% to 25.9%. This commitment
was made shortly before the Fund closed to new subscribers validating the
Company's belief that the Fund portfolio is at a mature stage and, with
several investee companies preparing for further funding rounds, there is
demonstrable potential for further uplifts to occur from initial valuations.
Several of these funding rounds are currently in the negotiation stage and the
Company expects to announce further updates in the next one or two quarters
and, in a post interim results event, on 27 October 2021 the Company was
pleased to announce the completion of the Series B funding round raising
US$25m for Admix Limited at a significant uplift to its initial investment in
this exciting company which is on track to generate an impressive tenfold
increase in revenue growth.
The Company believes that it will have sufficient access to funding to meet
its commitments to the Fund over the term of the Fund's investment cycle,
through a combination of available cash, anticipated subscriptions and access
to undrawn facilities.
Investment Environment
The Company is impressed by how the Investment Manager has navigated through
the past eighteen months in a challenging investment environment as it has
steadily grown the investment portfolio with other complimentary businesses in
diverse sectors. Its experienced team continues to provide advice and guidance
to its investee companies and it is a validation of Investment Manager's
comprehensive investment filter processes that the performance of the
portfolio has largely been unaffected to the downside by COVID-19, and certain
companies such as Buymie, Admix and Ambisense have benefitted from accelerated
growth as a consequence of the COVID-19 environment. However, whilst the
portfolio has largely been insulated by the effects of COVID-19, the Company
and the Investment Manger continue to remain vigilant of the risks associated
with the pandemic.
It is anticipated that the latest development in VR/AR technology, the
metaverse will narrow the gap even further between the physical and digital
world. As new communal spaces are created and are able not only to provoke
social relationships, but provide a greater dependency on remote working, the
replicated office setting, accessible from home engineers an engaging
environment for professional communications. Perhaps with a newfound
acceptance for telecommuting, this is the start of a mass consensus forming
around VR/AR, and its further benefits within business.
Dividend
During the year to 30 September 2021, the Company has not declared a dividend
(30 September 2020: £nil). Pursuant to the Company's dividend policy the
directors intend to manage the Company's affairs to achieve shareholder
returns through capital growth rather than income. The Company does not expect
to receive a material amount of dividends or other income from its direct or
indirect investments. It should not be expected that the Company will pay a
significant annual dividend, if any.
Gearing
The Company may deploy gearing of up to 20% of net asset value (calculated at
the time of borrowing) to seek to enhance returns and for the purposes of
capital flexibility and efficient portfolio management. The Company's gearing
is expected to primarily comprise bank borrowings but may include the use of
derivative instruments and such other methods as the Board may determine.
During the period to 31 March 2021 the Company did not employ any borrowing
(31 March 2020: £nil).
The Board will continue to review the Company's borrowing, in conjunction with
the Investment Manager on a regular basis pursuant with the Company's overall
cash management and investment strategy.
CAPITAL RAISING
On 8 June 2021, the Company announced a placing of 662,500 ordinary shares
that were admitted to trading on the Specialist Fund Segment of the London
Stock Exchange on 14 June 2021, under the existing ISIN: GB00BYWYZ460, taking
the total shares in admission as at 30 September 2021 to 6,013,225.
The Investment Manager's Report following this Statement gives further detail
on the affairs of the Company. The Board is confident of the long-term
prospects for the Company in pursuit of its investment objectives.
Outlook
The announcement of the Admix funding round in October is a particularly
pleasing development which will positively impact the December 2021 NAV given
the significant uplift in valuation. Additionally, there are further funding
rounds in negotiation which we anticipate will translate into an excellent
calendar year for the Company and the Investment Manager. And as the chosen
investment verticals attract a greater following, the Company, as an early
mover into this space, believes that the diverse and seasoned portfolio it has
created is extremely well placed to benefit from an increased investor focus
on this sector, which in turn it believes will bring deserved rewards to its
shareholders.
Perry Wilson
Chairman
1 December 2021
2 Investment Manager's Report
Investment Manager's Report
The company
Sure Ventures plc (the "Company") was established to enable investors to gain access to early stage technology companies in the three exciting and expansive market verticals of augmented reality and virtual reality (AR/VR), artificial intelligence (AI) and the internet of things (IoT).
The Company gains access to deal flow ordinarily reserved for venture capital
funds and ultra-high net worth angel investors, establishing a diversified
software-centric portfolio with a clear strategy. Listing the fund on the
London Stock Exchange offers investors:
· Relative liquidity
· A quoted share price
· A high level of corporate governance.
It is often too expensive, too risky and too labour intensive for investors to
build a portfolio of this nature themselves. We are leveraging the diverse
skillsets of an experienced management team who have the industry network to
gain access to quality deal flow, the expertise to complete extensive due
diligence in target markets and the entrepreneurial skills to help these
companies to mature successfully. Those investing in the Company will get
exposure to Sure Valley Ventures which in turn makes direct investments in the
above sectors in the UK & Ireland.
Augmented Reality & Virtual Reality
The AR/VR market is evolving at a rapid pace. Significant investment in
hardware capability and headset development has been made by major industry
players such as Facebook (through its Oculus division), Microsoft, Sony
(through its PlayStation division), HTC, Samsung and others. This investment
has ignited a new and exciting industry within the technology sector. Hardware
manufacturers and AR/VR users are now searching for software
capabilities/support and content, and we believe that exposure to this
industry via the Fund and direct investment into software companies in the
space will offer significant upside potential for investors. Through our
network of technology accelerators, angel investor partners and industry
contacts in the AR/VR space, we expect to have a strong chance of discovering
the industry leaders of tomorrow.
Internet of Things
The Internet of Things (IoT) as a segment of the market is a broad investment
area; it is defined as the interconnection, via the internet, of computing
devices embedded in everyday objects, enabling them to send and receive data.
The global growth and advancement of internet coverage, the increased speed
and capability of connectivity and the mass market penetration of
smartphones/tablet sales has created significant opportunities for software
companies. Businesses from many industries are embracing the efficiencies,
cost savings and the "direct to consumer" penetration this technological
advancement has offered. We see continued growth in this area and believe that
investor returns will benefit from exposure to the space.
Artificial Intelligence
According to the market research firm Tractica, the global artificial
intelligence software market is expected to experience massive growth in the
coming years, with revenues increasing from around US$9.5 billion in 2018 to
an expected US$118.6 billion by 2025 1 . The overall AI market includes a wide
array of applications such as natural language processing, robotic process
automation, and machine learning. McKinsey did an analysis comparing the value
created by advanced analytics versus AI and machine learning across common
enterprise use cases. McKinsey found that 82% of enterprises adopting machine
learning and AI have gained a financial return from their investments. For
companies across all industries, the median return on investment from
cognitive technologies is 17%.
1 Tractica 2019
PORTFOLIO BREAKDOWN
On 6 February 2018 the Company entered into a €4.5m commitment to Sure
Valley Ventures (the "Fund"), the sole sub-fund of Suir Valley Funds ICAV and
its investment was equalised into the Fund at that date. On 31 August 2019 a
further €2.5m was committed to the Fund, taking the total investment in Sure
Valley Ventures to €7m. The first drawdown was made on 5 March 2018 and as
at 30 September 2021, a total of €4,754,357 had been drawn down against this
commitment.
On 26 April 2019 the Company made a direct investment of £500,000 into VividQ
Limited, a deep tech start up with world leading expertise in 3D holography.
This investment represents the second direct investment of the Company,
alongside Immotion Group PLC, which was announced on 24th April 2018. As
detailed in the Statement of Position included in the following financial
statements, these two investments alongside the Fund investment represent the
entire portfolio of Sure Ventures plc as at 30 September 2021.
On 8 June 2021, the Company announced a placing of 662,500 ordinary shares.
The ordinary shares were admitted to trading on the Specialist Fund Segment of
the London Stock Exchange on 14 June 2021, under the existing ISIN:
GB00BYWYZ460, taking the total shares in admission as at 30 September 2021 to
6,013,225.
suir valley Funds ICAV
Suir Valley Funds ICAV (the ''ICAV'') is a close-ended Irish collective
asset-management vehicle with segregated liability between sub-funds
incorporated in Ireland pursuant to the Irish Collective Asset-management
Vehicles Act 2015 and constituted as an umbrella fund insofar as the share
capital of the ICAV is divided into different series with each series
representing a portfolio of assets comprising a separate sub-fund.
The ICAV was registered on 18 October 2016 and authorised by the Central Bank
of Ireland as a qualifying investor alternative investment fund ("QIAIF") on
10 January 2017. The initial sub-fund of the ICAV is Sure Valley Ventures, or
("the Fund"), which had an initial closing date of 1 March 2017. The Fund
invests in a broad range of software companies with a focus on companies in
the AR/VR, AI and IoT sectors.
As at 30 September 2021 the Fund had commitments totaling €27m and had made
sixteen direct investments into companies spanning the AR/VR, AI and IoT
sectors. One of these investments was sold in 2019, giving the Fund its first
realised gain on exit of around 5X return on investment. On 12 March 2018,
Immersive VR Education Limited, the Fund's first investment, completed a
flotation on the London Stock Exchange (AIM) and the Dublin Stock Exchange
(ESM). The public company is now called VR Education Holdings PLC - ticker
VRE. VRE was the first software company to list on the ESM since that market's
inception. In July 2020, following an improvement in share price, the sub-Fund
decided to sell sufficient shares to recover its initial investment. This
resulted in a realised gain of €73k being payable to Sure Ventures PLC,
along with its share of the initial investment, and some Escrow Funds from the
aforementioned exit. The final Escrow payment from the sale was settled in
July 2021, seeing another €151k flowing to the PLC. Total distributions from
the sub-Fund to the PLC as at 30 September 2021 was €1,759,630.
performance
In the period to 30 September 2021 the Company's performance continued to
improve, as it returned a net asset value of £1.07/unit, representing a 16%
uplift from the audited March-21 NAV of 92p. The NAV improvement is largely a
result of the ICAV NAV seeing similar gains, as more portfolio companies
complete follow-on funding rounds at increased valuations, and hence large
unrealised gains being booked. The two direct investments have also improved,
with Immotion Group PLC, closing the period at 6,7p, up from 5.05p at year
end, and VividQ closing a new funding round to give Sure Ventures PLC an
unrealised gain of 59% on its initial holding. Given the lack of revenue to
support the ongoing operational costs of the PLC, these unrealised gains are
key to maintaining a steady NAV, until the point that we see more exits and
realised gains.
FutuRe Investment OUTLOOK
The Fund has achieved one very positive realised gain, recovered its full
investment in its listed portfolio company, as well as seeing number a of
unrealised gains across the portfolio. The Fund continues to have access to
quality deals in our chosen high growth sectors. The portfolio of current
investments is continuing to mature, with more companies completing series A
funding rounds, which has started to provide the NAV growth that was set out
to achieve from inception.
We remain confident in the future outlook of the Company in the forthcoming
financial year and in line with the prospectus, reserve the right to make
further direct investments provided there is sufficient working capital to do
so.
Shard Capital AIFM LLP
Investment Manager
18 November 2021
3 Interim Management Report
Interim Management Report
The report below together with the Chairman's Statement, Investment Manager's
report and related party disclosures in the notes to the financial statements
constitute the Interim Management Report for the six months ended 30 September
2021.
Principal risks and uncertainties
The principal risks and uncertainties associated with the Company's business
are divided into the following main areas:
· Operational risks, including risks associated with reliance on
third party service providers, reliance on key individuals at the Investment
Manager and fluctuations in the market price of the Company's shares;
· Investment risks, including risks associated with the investment
objective, borrowing and liquidity of investments; and
· Regulatory risks, including risks associated with maintenance of
investment trust status and compliance with applicable legislative
obligations.
The above risks are described further in the Company's Annual Report for the
year ended 31 March 2021 together with measures that have been put in place to
mitigate and manage those risks.
In the view of the directors, the principal risks and uncertainties reported
in the latest Annual Report for the year ended 31 March 2021 remain unchanged
and will be applicable to the remaining six months of the financial year.
COVID-19 pandemic
The effects of COVID-19 continue to cause some market volatility and have had
an effect on the Company through price volatility of the Company's
investments. The ongoing economic and broader impacts of COVID-19 will have an
effect on the financial statements and operations in the future, though it is
not possible to quantify likely impacts at this stage.
The Board and the Investment Manager continue to closely monitor developments
on a regular basis and have invoked internal controls and risk management
procedures to mitigate any related risk that may arise.
Going concern
The Board and the Investment Manager believe that the operational viability
and going concern status of the Company remains intact and will continue for
the next financial 12 months ahead and foreseeable future. The Board has no
concerns in regards to the ongoing existence of the Company.
The Board is also satisfied that the key service providers have the ability to
continue to operate efficiently in a remote or virtual working environment.
Statement of Directors' Responsibilities
The directors confirm that, to the best of their knowledge that:
a) the condensed set of unaudited financial statements contained within the
half-yearly financial report have been prepared in accordance with
International Accounting Standard ("IAS") 34, Interim Financial Reporting as
required by the Disclosure and Transparency Rule 4.2.4R, and give a true and
fair view of the assets, liabilities and financial position of the Company;
b) the Interim Management Report includes a fair review, as required by
Disclosure and Transparency Rule 4.2.7R, of important events that have
occurred during the first six months of the financial year, their impact on
the condensed set of unaudited financial statements, and a description of the
principal risks and perceived uncertainties for the remaining six months of
the financial year; and
c) the Interim Management Report includes a fair review of the information
concerning related parties' transactions as required by Disclosure and
Transparency Rule 4.2.8R.
For and on behalf of the board of directors
Perry Wilson
Chairman
1 December 2021
4 Alternative Performance Measures (APMs)
Alternative Performance Measures (APMs)
APMS are often used to describe the performance of investment companies
although they are not specifically defined under IFRS. Calculations for APMs
used by the Company are shown below.
Ongoing charges
A measure expressed as a percentage of average net assets, of the regular,
recurring annual costs of running an investment company, calculated in
accordance with the AIC methodology.
Year ended 31 September 2021
Average NAV (£'000) a £6,484
Recurring costs b £452
b/a 6.96%
Premium
The amount, expressed as a percentage, by which the share price is more than
the NAV per share.
As at 30 September 2021
NAV per ordinary share a 107.22p
Share price b 103p
(b-a)/a (3.94%)
Total return
A measure of performance that includes both income and capital returns. This
takes into account capital gains and reinvestment of any dividends paid out by
the Company, with reinvestment on ex-dividend date
Year ended 31 March 2021 NAV Share price
Opening as at 31 March 2021 (p) A 92.06 105.00
Closing at 30 September 2021 (p) B 107.22 103.00
Dividend reinvestment factor C 1 1
Adjusted closing (d = b x c ) D 107.22 103.00
Total return (d-a) / a 16.47% (1.90%)
5 Financial Statements
Condensed Statement of Comprehensive Income
For the six months ended 30 September 2021 (unaudited)
Revenue Capital Total
£
£
£
Income
Other net changes in fair value on financial assets at fair value through 912,687 912,687
profit or loss
-
Other income - 128,800 128,800
Total net income - 1,041,487 1,041,487
Expenses
Custodian, secretarial and administration fees (48,259) - (48,259)
Other expenses (101,100) - (101,100)
Total operating expenses (149,359) - (149,359)
Profit / (Loss) before Taxation and after finance costs (149,359) 1,041,487 892,128
Taxation - - -
Profit / (Loss) after taxation (149,359) 1,041,487 892,128
Earnings per share (2.48) 17.32 14.84
For the six months ended 30 September 2020 (unaudited)
Revenue Capital Total
£
£
£
Income
Other net changes in fair value on financial assets at fair value through 231,188 231,188
profit or loss
-
Other income - 79,883 79,883
Total net income - 311,071 311,071
Expenses
Custodian, secretarial and administration fees (43,095) - (43,095)
Other expenses (103,819.98) - (103,819.98)
Total operating expenses (146,915) - (146,915)
Profit / (Loss) before Taxation and after finance costs (146,915) 311,071 164,156
Taxation - - -
Profit / (Loss) after taxation (146,915) 311,071 164,156
Earnings per share (2.74) 5.81 3.07
The total comprehensive income and expense for the period is attributable to
shareholders of the Company. The accompanying notes on pages 18 to 20 form
part of these condensed interim financial statements.
Condensed Statement of Financial Position
As at 30 September
2020
Notes 30 September 2021 31 March 2021
(unaudited) (audited)
£
£
Non-current assets
Investments held at fair value through profit or loss 7 5,269,757 3,724,611
5,269,757 3,724,611
Current assets
Cash and cash equivalents 1,213,838 1,255,199
1,213,838 1,255,199
Total assets 6,483,595 4,979,810
Current liabilities
Other payables (36,328) (54,046)
(36,328) (54,046)
Total assets less current liabilities 6,447,267 4,925,764
Total net assets 6,447,267 4,925,764
Shareholders' funds
Ordinary share capital 8 60,132 53,507
Share premium 5,768,780 5,146,030
Revenue reserves (1,175,869) (1,026,510)
Capital reserves 1,794,224 752,737
Total shareholders' funds 6,447,267 4,925,764
Net asset value per share 107.22p 92.06p
The accompanying notes on pages 18 to 20 form part of these condensed interim
financial statements.
The financial statements on pages 14 to 17 were approved by the board of
directors and authorised for issue on 1 December 2021.
They were signed on its behalf by:
Perry Wilson, Chairman
Condensed Statement of Changes in Equity
For the six months ended 30 September 2021 (unaudited)
Ordinary Share Revenue Capital Total Total
Share Premium Reserves Reserves Reserves Equity
Capital
£ £ £ £ £ £
For the year ended 31 March 2021 53,507 5,146,030 (1,026,510) 752,737 (273,773) 4,925,764
Ordinary shares issued 6,625 655,875 - - - 662,500
Ordinary shares issue costs - (33,125) - - - (33,125)
Profit / (Loss) after taxation - - (149,359) 1,041,487 892,128 892,128
Dividends paid in the period - - - - - -
Balance at 30 60,132 5,768,780 (1,175,869) 1,794,224 618,355 6,447,267
September 2021
For the six months ended 30 September 2020 (unaudited)
Ordinary Share Revenue Capital Total Total
Share Premium Reserves Reserves Reserves Equity
Capital
£ £ £ £ £ £
For the year ended 31 March 2020 48,699 4,699,588 223,375 (461,743) (238,368) 4,509,919
Ordinary shares issued 4,750 470,250 - - - 475,000
Ordinary shares issue costs - (23,750) - - - (23,750)
Profit / (Loss) after taxation - - (146,915) 311,071 164,156 164,156
Dividends paid in the period - - - - - -
Balance at 30 53,449 5,146,088 76,460 (150,672) (74,212) 5,125,325
September 2020
The accompanying notes on pages 18 to 20 form part of these condensed interim
financial statements.
Condensed Statement of Cash Flows
For the six months ended 30 September 2021
30 September 2021 30 September 2020
(unaudited) (unaudited)
£ £
Cash flows from operating activities:
Profit / (Loss) after taxation 892,128 164,156
Adjustments for:
Decrease in receivables - 5,330
Decrease in payables (17,718) (264,932)
Unrealised Profit on foreign exchange (23,856) (66,576)
(Profit) / Loss on sale of investment (2,773) 1,790
Net changes in fair value on financial assets at fair value through profit or
loss
(885,336) (156,338)
Net cash (outflow) from operating activities
(37,555) (316,570)
Cash flows from investing activities:
Purchase of investments (894,541) (424,828)
Sale of investments 261,360 66,913
Net cash (outflow) from investing activities (633,181) (357,915)
Cash flows from financing activities:
Proceeds from issue of ordinary shares 662,500 475,000
Share issue costs (33,125) -23,750
Net cash inflow from financing activities 629,375 451,250
Net change in cash and cash equivalents (41,361) (223,235)
Cash and cash equivalents at the beginning of the period 1,255,199 1,700,601
Net cash and cash equivalents 1,213,838 1,477,366
The accompanying notes on pages 18 to 20 form part of these condensed interim
financial statements.
Notes to the Condensed Interim Financial Statements
1) General information
Sure Ventures plc (the "Company") is a company incorporated in England and
Wales (registration number: 10829500) on 21 June 2017, commencing trading on
19 January 2018 upon listing. The registered office of the Company is 23rd
Floor, 20 Fenchurch Street, London, United Kingdom, EC3M 3BY.
The Company is an investment company within the meaning of section 833 of the
Companies Act 2006.
The Company operates as an investment trust in accordance with Chapter 4 of
Part 24 of the Corporation Tax Act 2010 and the Investment Trust (Approved
Company) (Tax) Regulations 2011. In the opinion of the directors, the Company
has conducted its affairs so that it is able to maintain its status as an
investment trust. Approval of The Company's application for approval as an
investment trust was received from HMRC on 22 November 2018, applicable from
the accounting period commencing 1 April 2018.
The Company is an externally managed closed-ended investment company with an
unlimited life and has no employees.
The information set out in these unaudited condensed interim financial
statements for the period ended 30 September 2021 does not constitute
statutory accounts as defined in section 435 of Companies Act 2006.
Comparative figures 31 March 2021 are derived from the financial statements
for that period. The financial statements for the period ended 31 March 2021
have been delivered to the Registrar of Companies and contain an unqualified
audit report and did not contain a statement under emphasis of matter or
statements under section 498(2) or (3) of the Companies Act 2006. The
financial statements of the Company for the year ended 31 March 2021 are
available upon request from the Company's registered office at 23(rd) Floor,
20 Fenchurch Street, London, United Kingdom, EC3M 3BY.
2) Basis of accounting
The financial statements of the Company have been prepared in accordance with
International Financial Reporting Standards (IFRS) and IFRIC interpretations
(IFRS IC) as adopted by the European Union. They do not include all the
information required for the full annual financial statements, and should be
read in conjunction with the annual financial statements of the Company for
the period ended 31 March 2021. The principal accounting policies adopted in
the preparation of the financial information in these unaudited condensed
interim financial statements are unchanged from those used in the Company's
financial statements for the year ended 31 March 2021. This report does not
itself contain sufficient information to comply with IFRS.
3) Estimates
The preparation of the unaudited condensed interim financial statements
requires management to make judgement, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets and
liabilities, income and expenses. Actual results may differ from these
estimates.
In preparing these unaudited condensed interim financial statements, the
significant judgement made by management in applying the Company's accounting
policies and the key sources of estimation were the same as those that applied
to the Company financial statements as at and for the period ended 31 March
2021.
4) Financial risk management
The Company's financial risk management objectives and policies are consistent
with those disclosed in the Company financial statements as at and for the
year ended 31 March 2021.
5) Taxation
As an investment trust the Company is exempt from corporation tax on capital
gains. The Company's revenue income is subject to tax, but offset by any
interest distribution paid, which has the effect of reducing that corporation
tax to nil. This means the interest distribution may be taxable in the hands
of the Company's shareholders.
6) Earnings per Share
For the six months period ended 30 September 2021 Revenue Capital Total
pence
pence
pence
Earnings per ordinary share (2.48)p 17.32p 14.84p
For the financial period ended 31 from March 2021
Earnings per ordinary share (5.21)p 4.55p (0.66)p
The calculation of the above is based on revenue return loss of (£149,359)
(31 March 2021: loss (£278,639)), capital return profit of £1,041,487 (31
March 2021: profit £243,234) and total return profit of £892,128 (31 March
2021: loss (£35,405)) and weighted average number of ordinary shares of
6,013,225 (31 March 2021: 5,350,725) as at 30 September 2021.
7) INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
As at 30 September 2021 As at 31 March 2021
£
£
Opening cost
Opening fair value 3,724,611 3,078,560
Purchases at cost 894,541 534,171
Sale (261,360) (66,913)
Cost at fair value measurement
Realised gain/(loss) 2,773 (1,790)
Unrealised gain 885,336 300,079
Unrealised gain/(loss) on foreign exchange 23,856 (119,496)
Closing fair value 5,269,757 3,724,611
8) Ordinary Share Capital
The table below details the issued share capital of the Company as at the date
of the Financial Statements.
Issued and allotted No. of shares No. of shares Ordinary Share Capital Ordinary Share Capital
31 March
30 September
30 September 2021 31 March 2021
2021
£
£
2021
Ordinary shares of 1 penny each 6,013,225 5,350,725 60,132 53,507
On incorporation, the issued share capital of the Company was £0.01
represented by one ordinary share of £0.01. Redeemable preference shares of
50,000 were also issued with a nominal value of £1 each, of which 25% were
paid. The redeemable shares were issued to enable the Company to obtain a
certificate of entitlement to conduct business and to borrow under section 761
of the Companies Act 2006. The redeemable shares were redeemed on listing from
the proceeds of the issue of the new ordinary shares upon admission on 19
January 2018.
The following table details the subscription activity for the period ended 30
September 2021.
30 September 2021 31 March 2021
Balance as at 31 March 2021 5,350,725 4,869,956
Ordinary shares issued 662,500 480,769
Balance as at 30 September 2021 6,013,225 5,350,725
During the period ended 30 September 2021, all proceeds from this issue was
received (31 March 2021 all proceeds from this issue was received)
9) Related Party Transactions and Transactions with the Manager
Directors - There were no contracts subsisting during or at the end of the
period in which a director of the Company is or was interested and which are
or were significant in relation to the Company's business. There were no other
transactions during the period with the directors of the Company. The
directors do not hold any ordinary shares of the Company.
At 30 September 2021, there was £1,437 (31 March 2021: £1,441) payable in
respect of directors fees and expenses.
Manager - Shard Capital AIFM LLP (the 'Manager'), a UK-based company
authorised and regulated by the Financial Conduct Authority, has been
appointed the Company's manager and authorised investment fund manager for the
purposes of the Alternative Investment Fund Managers Directive. Details of the
services provided by the manager and the fees paid are given in the prospectus
dated 17 November 2017.
During the period the Company incurred £40,673 and was rebated the full
amount (31 March 2021 £63,311) of fees and at 30 September 2021, there was
£nil (31 March 2021: nil) payable to the manager.
During the period the Company paid £33,125 (31 March 2021: £23,750) of
placement fees to Shard Capital Partners LLP.
During the period the Company paid £6,000 (31 March 2020: £12,000) of
advisory fees to Shard Capital Partners LLP.
10) SubsequENT EVENTS
There was no subsequent events which would require disclosure in the financial
statements.
For further information, please visit www.sureventuresplc.com
(http://www.sureventuresplc.com/) or contact:
Gareth Burchell Sure Ventures plc +44 (0) 20 7186 9918
Notes to Editors
Sure Ventures plc listed on the London Stock Exchange in January 2018 giving
retail investors access to an asset class that is usually dominated by private
venture capital funds. Sure Ventures is focusing on companies in the UK,
Republic of Ireland and other European countries, making seed and series A
investments in companies with first rate management teams, products which
benefit from market validation with target revenue run rates of at least
£400,000 over the next 12 months. Website: https://www.sureventuresplc.com/
(https://www.sureventuresplc.com/)
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