REG - Triple Point Venture - Results for the six months ended 31 August 2023
24/10/2023 07:00
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RNS Number : 0200R Triple Point Venture VCT PLC 24 October 2023
24 October 2023
Triple Point Venture VCT Plc
(the "Company")
RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2023
The Directors of Triple Point Venture VCT plc are pleased to announce the
unaudited results for the six months ended 31 August 2023.
You may view the Interim Report in due course on the Triple Point
website: www.triplepoint.co.uk (http://www.triplepoint.co.uk/) . Please note
that page numbers in this announcement are in reference to the Interim Report.
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT
Triple Point Investment Management LLP Tel: 020 7201 8989
(Investment Manager)
Ian McLennan
Belinda Thomas
The Company's LEI is 213800AOOAQA5XQDEA89
Further information on the Company can be found on its website
https://www.triplepoint.co.uk/current-vcts/triple-point-venture-vct-plc/s2539/
(https://www.triplepoint.co.uk/current-vcts/triple-point-venture-vct-plc/s2539/)
NOTES:
The Company is a Venture Capital Trust incorporated in July 2010 and was
established to fund small and medium sized enterprises. The Investment Manager
is Triple Point Investment Management LLP.
Financial Summary
Six months ended 31 August 2023
Unaudited Venture Shares A Shares B Shares Total
Net assets £'000 53,541 - - 53,541
Net asset value per share Pence 99.61 - -
Loss before tax £'000 (1,377) - - (1,377)
Loss per share Pence (2.71) - -
Cumulative return to shareholders (p)
Net asset value per share 99.61 - -
Total dividends paid 9.00 - -
Net asset value plus dividends paid (Total Return)(1) 108.61 - -
Year ended 28 February 2023
Venture Shares A Shares B Shares Total
Net assets £'000 43,654 94 69 43,817
Net asset value per share (NAV) Pence 102.17 1.00 1.00
Loss before tax £'000 (3,273) (275) 2,183 (1,365)
Earnings/(loss) per share Pence (8.47) (2.83) 32.31
Cumulative return to Shareholders (p)
Net asset value per share 102.17 1.00 1.00
Total dividends paid 9.00 115.92 99.00
Net asset value plus dividends paid (Total Return)(1) 111.17 116.92 100.00
Six months ended 31 August 2022
Unaudited Venture Shares A Shares B Shares Total
Net assets £'000 42,708 1,293 5,407 49,408
Net asset value per share Pence 107.99 13.32 80.00
Profit/(loss) before tax £'000 (2,147) 2 2,109 (36)
Earnings/(loss) per share Pence (5.94) 0.02 32.31
Cumulative return to shareholders (p)
Net asset value per share 107.99 13.22 80.00
Total dividends paid 6.00 106.50 20.00
Net asset value plus dividends paid (Total Return)(1) 113.99 119.72 100.00
(1) Total Return is made up from the current Net Asset Value plus Dividends
paid to date. Total Return is defined as an Alternative Performance Measure
("APM"). Total Return, calculated by reference to the cumulative dividends
paid plus net asset value (excluding tax reliefs received by Shareholders), is
the primary measure of performance in the VCT industry.
( )
Triple Point Venture VCT plc ("the Company") is a Venture Capital Trust
("VCT"). The Investment Manager is Triple Point Investment Management LLP
("TPIM" and "Triple Point"). The Company was incorporated in July 2010.
· Venture Shares: On 29 July 2023 the fourth Venture Share Class
offer closed having raised gross proceeds of £14.97 million with a total of
14,205,221 Venture Shares being issued. This takes gross proceeds raised to
date to £57.48 million and 54,243,600 Venture Shares have now been issued.
· A Ordinary Shares ("A Shares"): As at the date of this report,
the A Ordinary Shares have been cancelled and are no longer in existence. The
A Share Class was wound up earlier during the period (further information is
below).
· B Ordinary Shares ("B Shares"): As at the date of this report,
the B Ordinary Shares have been cancelled and are no longer in existence. The
B Share Class was wound up earlier during the period (further information is
below).
Key Highlights
· Venture Shares Cumulative Dividends Paid: 9.00p (Nil Venture
dividends paid during the period(3)).
· Net Asset Value per Venture Share: 99.61p (Period ended 28
February 2023: 102.17p).
· Total Return per Venture Share(2): 108.61p (Total Return for the
Venture Share Class includes cumulative dividends paid of 9 pence per Venture
share(3)).
· Fundraising: £14.97m (into the Venture Share Class offer which
closed on 29 July 2023).
· Ongoing Charges Ratio: 3% (The ongoing charges ratio is a ratio
of annualised ongoing charges expressed as a percentage of average net asset
values throughout the period (2023: 3.21%)).
( )(2)Total Return is made up from the current Net Asset Value plus Dividends
paid to date. Total Return is defined as an Alternative Performance Measure
("APM"). Total Return, calculated by reference to the cumulative dividends
paid plus net asset value (excluding tax reliefs received by Shareholders), is
the primary measure of performance in the VCT industry.
( )
( ) (3)A dividend of 2p per share was paid to Shareholders following the
period end on 4 September 2023.
Chair's Statement
I am writing to present the Interim Report for the Company for the period
ended 31 August 2023.
The Company now has a single share class investing in early-stage venture
opportunities. The portfolio has continued to grow through the period, having
made five new qualifying investments and eight follow-on investments, at a
total value of of £7.18 million. Further information on the Company's
investment portfolio can be found below and in the Investment Manager's Review
on pages 12 to 19. During the period, the Company's name was changed to Triple
Point Venture VCT Plc, following shareholders approval at the Company's Annual
General Meeting held on 19 July 2023.
Offer for Subscription of Venture Shares
The recent Offer for Subscription of Venture Shares closed on 29 July 2023.
The Board are pleased to announce that the offer raised £14.97 million and
resulted in the issuance of 14,205,221 new Venture Shares. On behalf of the
Board, I would like to welcome all new Shareholders and to thank the existing
Shareholders for their continued support.
The Board and the Investment Manager believe that the level of Venture
investment opportunity in our chosen sectors continues to be promising. The
Company has announced that it is seeking to raise a further £10 million (with
a £20 million over-allotment facility), to continue investing in early-stage
businesses with strong, long-term growth potential. The offer for subscription
opened on 22 September 2023 and will close on 31 July 2024 or earlier if fully
subscribed.
Venture Shares
The Company's funds at 31 August 2023 were 70% deployed in a portfolio of VCT
qualifying and non-qualifying unquoted investments. It continues to meet
comfortably the condition that 80% of new funds raised must be invested into
qualifying investments by the year-end of the period two years after the funds
are allotted.
Since inception, £35.9 million has been deployed into 48 qualifying growth
companies, making a meaningful impact to support innovation and employment in
the wider UK economy. In the last year, jobs within our portfolio companies
has risen from 1,200 to 1,400. We have judiciously continued to support a
number of our existing portfolio companies with follow-on funding during the
period; the Company has now provided almost £9.5m in follow-on funding to 19
portfolio companies.
There were thirteen investments made in the half-year period under review
including five new investments and eight follow-on investments into existing
portfolio companies, reflecting the maturing of our earlier cohorts of
investments. While all these investments involved software services or
platforms, the sub-sectors that we have backed range across FinTech, Digital
Health, HR Tech, Hospitality and Data Analytics.
While we do not separate out Artificial Intelligence ("AI") as a distinct
sector, within the portfolio there are a number of companies, such as Channel,
where AI is intrinsic to the software that they offer to their customers, but
there are far more investee companies, such as Aptem and Nory, where AI is
being used to enhance efficiencies and information around their existing core
products.
More detail on these investments can be found in the Investment Manager's
Review on pages 12 to 19.
In the six month period to 31 August 2023, a loss of 2.71 pence per share was
recorded. We are pleased to report that 5 portfolio companies successfully
achieved higher valuations when raising additional funding during the period,
reflecting their continued revenue growth or product development achievements.
At the same time, however, there have been several unrealised fair valuation
reductions made during the period in light of the continuing challenging
global macro and fund-raising environments for early-stage businesses and, of
course, individual portfolio companies' commercial performance. Despite the
significant recovery in large, listed technology share prices this calendar
year, valuations of venture-backed start-ups remained under pressure except in
certain niche sectors such as Artificial Intelligence which attracted
considerable investor excitement.
The rising interest rates and bond yields since early 2022 had a direct impact
on the start-up ecosystem in March 2023 when they contributed to the collapse
of Silicon Valley Bank ("SVB") a crucial provider of loans to start ups in the
UK as well as the USA. While a number of our portfolio companies held accounts
with SVB UK, the prompt acquisition of SVB's UK business by HSBC meant there
was no impact on our investees access to liquidity. The Investment Manager
worked with a number of portfolio businesses to add diversification to their
banking relationships. There was also very limited further impact from SVB on
the broader macro environment, with the UK economy remaining sluggish (but so
far avoiding technical recession). While inflationary pressures have eased
slightly in the period, short term interest rates continued their rise in the
UK, US and EU suggesting that the economic backdrop will remain challenging
for a little longer.
Macro stories have been a big theme during the early years of the Venture
Portfolio yet, in the long run, what will matter most for our returns to
investors are the bottom-up fundamentals of our portfolio companies and how
succesful they can be in carving out innovative new business niches for
themselves. Since its launch in September 2018, we have been pleased to see
the Venture portfolio demonstrate resilience despite being buffeted by a wide
variety of external factors such as higher interest rates, the Russia-Ukraine
invasion and the energy inflation shock, lower tech sector valuation multiples
and, before that, the Covid-19 lockdowns.
Funding has remained available for good businesses, but the more demanding
external environment has prompted start-up founders and their investors to
focus on value-for-money rather than the growth-at-any-price approach of
2021.
As we have said before, a period of adversity can represent a period of
opportunity for investors. We remain of this view and Triple Point report that
they continue to see a good flow of new opportunities for seed stage
investment, while the existing portfolio remains well positioned for future
growth. The Investment Manager has deployed all the funds raised from offers
prior to 2022 in a timely manner and has successfully deployed 69% of the
funds raised in the 2022 Offer into Qualifying Investments to date,
comfortably exceeding the 30% investment requirement.
Both the Board and the Investment Manager believe ESG considerations are
important, and they are taken into account through the Company's investment
process. Whilst early-stage companies do not always have the scale or
resources to adopt the full scale of ESG initiatives open to large corporates,
we always check the processes and policies they do have in place to ensure
that they are proportionate to their size and activities.
Wind down and Cancellation of the A and B Share Classes
The period under review included the wind down and cancellation of the A and B
Share Classes, as approved by Shareholders at the Company's general meeting
held on 9 February 2023 and the A and B Share Class meetings held on 1 March
2023. The cancellations were effective on 30 March 2023, and all funds
including nominal capital, have now been returned to the A and B Share Class
Shareholders.
From 12 September 2023, the Investment Manager was appointed as the Company's
Alternative Investment Fund Manager ("AIFM") and is now responsible for risk
management and portfolio management. Therefore, the Investment Manager has
full discretion under the Investment Management Agreement to make investments
in accordance with the Company's Investment Policy from time to time. In
addition, the Company has appointed a depositary(4) Indos Financial Limited,
and their details can be found on page 37. There are no changes to Triple
Point's fees as a result of their appointment as AIFM. Further details can be
found in Note 6.
(4) Following TPIM's appointment as AIFM and as required under the Alternative
Investment Fund Management Directive, the Company has appointed a depositary
which is an independent third party that is responsible for the safekeeping of
assets of the Company, performing the cash flow monitoring and the oversight
duties of the Company.
Outlook
The mediocre macro environment seems likely to continue for the time being.
What is less certain is when core inflation will come down to central bank
targets catalysing expectations for lower interest rates and an easing in the
venture funding market and improvement in valuations. The Investment Manager
continues to monitor portfolio developments carefully, particularly regarding
investee liquidity, given the currently more challenging fund raising
environment.
Regardless, we expect that the cost-effective software solutions which our
portfolio specialises in are likely to remain in demand, leaving the existing
portfolio well positioned for future growth.
The Board will continue to consider dividends for Venture Shareholders,
subject to realised profits, legal requirements and liquidity. I am delighted
to report that a dividend of 2 pence per share was paid to Shareholders on 4
September 2023 bringing total dividends paid to 11 pence. The Board expects
that a further dividend will be paid later in the financial year.
The Company has recently announced the launch of an offer for subscription of
new Venture Shares, for subscription in the 2023/2024 and 2024/2025 tax years.
To thank our supporters, existing Shareholders will be eligible to receive a
loyalty bonus of a 1% reduction in the costs of the Offer for applications
received over the offer period. More information can be found in the
Prospectus issued on 22 September 2023 on the Triple Point website
www.triplepoint.co.uk (http://www.triplepoint.co.uk) .
As referred to in the Company's latest annual report, investors should remain
aware that NAV volatility may remain high and will be impacted by trends in
global venture capital valuations as well as the portfolio companies'
underlying commercial performance.
We have a full pipeline of new investments for the next six months including
three investments that are in the process of deal execution. The new fundraise
will allow the Company to continue to support its existing portfolio of
investments, as well as to pursue new investment opportunities as they are
identified. The Company will continue to target significant capital growth by
investing in early-stage innovative companies with a particular focus on the
business-to-business ("B2B") technology sector, and we remain excited about
the opportunities ahead.
If you have any questions about your investment, please do not hesitate to
contact Triple Point on 020 7201 8990.
Jane Owen
Chair
23 October 2023
Investment Manager's Review
Sector Analysis
During the period there have been changes to the Unquoted Investment
Portfolio. The Company has made investments into five new companies, examples
of which can be seen on page 14 of the Investment Manager's Review. There
were also eight follow-on deployments into existing portfolio companies.
The sector composition of the Unquoted Investment Portfolio can be broken down
as follows:
Investment Portfolio
Venture Share Class
We have the pleasure in presenting our interim review for the six months ended
31 August 2023.
Review & Future Developments
With the Bank of England having raised interest rates 14 times in a row to a
15-year high and other major central banks on a similar path, the fundraising
environment has become gradually more testing for many start-up founders and
CEOs as many venture funds have been deploying capital at a slower rate and
non-venture specialist funds have reduced their participation in the sector.
That has had an impact on the valuation as well as the availability of capital
for some start-ups. We have started to see a few more down-rounds, where
founders and investors accept that, in order to raise further funds,
valuations set for the new funds may be lower than 2020-21 levels.
This has in some senses presented us with an opportunity: there is no shortage
of companies with innovative business ideas seeking funds and some areas of
the venture funding market have become less competitive offering us the
possibility of investing the VCT's funds in growth areas at somewhat more
compelling valuations than previously. Thus, we continue to see a healthy
pipeline of potential investment opportunities. On the other hand, some of
our existing portfolio companies have decided to delay fundraising over the
last year or so, and stretched their cash runway by reducing costs, or at
least reducing the growth of costs. We are also willing financial supporters
of existing portfolio companies that have demonstrated that they can grow
revenues significantly while maintaining cost discipline in these more
straitened times.
Venture Shares
The Venture Share Class was initially launched in September 2018 and has
raised gross proceeds of £57.5m to date.
The Investment Manager's Venture team began investing in the Venture portfolio
in April 2019 and as at 31 August 2023 has completed 48 unique investments in
predominantly B2B technology firms serving sectors spanning across Fintech,
Healthcare, Logistics, HR Tech, Middleware, Insure-tech, Proptech, Cyber
Security, Education, Telecommunications and Content & Design.
In the six months to 31 August 2023 the team has invested a total of £7.2m.
This includes five new investments (Modo Energy, Virtual Science, Fertifa,
Nory and Statement) and eight follow-on investments (Trumpet, Scan.com,
Channel, Kamma, Knok, Konfir, Semble, and SonicJobs). More information about
these companies can be found below. Follow-on investments, when compared to
investments in new companies, have increased in this period from 26% to 44% of
total investments made. This increase is a function of the VCT's maturing
portfolio given that venture-backed businesses typically raise new funds every
18-24 months or so.
£35.9 million of capital has been deployed to date, in both qualifying and
non-qualifying investments.
We note one exit over the period of Localz, which was acquired by Descartes
Systems Group in April. Despite having a strong team, Localz growth had
stalled somewhat and the best thing for the business and its investors was to
introduce a well-capitalised business partner in Descartes, despite the exit
valuation delivering a small loss for the VCT.
Overall, the portfolio has continued to make good commercial progress during
the period. Revenue across the portfolio continues to grow, with approximately
40% of the companies in the portfolio last year growing revenues by over 100%
year-on-year. We are also pleased to report that despite the more demanding
fundraising environment, many of our portfolio companies continue to attract
new investment from third-party investors. Several portfolio companies
successfully raised additional funding at a higher valuation, showing real
quality in the underlying portfolio.
During the period, there have been a number of portfolio companies which have
not met our expectations. We have therefore reduced the fair value of
investments where we believe that growth rates are not sufficient to offset
market valuation declines or the risks associated with reduced cash runway for
individual companies. In relation to some portfolio companies, which
benefitted from the very positive valuation climate for fundraising completed
in 2021, we have continued to maintain varying fair-value downward adjustments
which we have now held for some time and review regularly.
Beyond the Company's venture investments, a majority of the VCT's liquid funds
awaiting deployment have been invested in money market funds and a corporate
bond fund. In today's higher interest rate environment this improves the
return on the Company's cash (relative to bank deposits) whilst complying with
VCT rules on sources of income.
Investments during the period:
As mentioned above, during the period, the Company has made five new
qualifying investments and eight follow-on investments. Their businesses are
described briefly below:
New investments
Modo Energy: Modo have created a complete and popular platform for market and
asset performance data regarding energy storage assets such as
industrial-scale batteries.
Fertifa: Fertifa's platform helps employers to provide services to employees
around i) fertility & family forming; ii) menopause; and iii) men's
reproductive health.
Nory: Nory provides AI-enabled software for hospitality businesses to manage
their business and restaurant operations. The product currently has 3 core
components: automated workforce management, inventory management and
performance insights & predictive forecasting.
Statement: Statement is a new SME payment provider switching service, being
built to capitalise on the fact that overcharging of small business by card
payment processing providers is very common.
Virtual Science: Virtual Science enables international pharmaceutical
companies to roll out hybrid advisory boards across the world and analyse
video and text feedback for insights in days - rather than weeks with medical
writers.
Follow-on investments in existing portfolio companies
Scan.com: Scan.com are building the infrastructure layer to connect the global
diagnostic imaging market, aiming to solve the lack of price transparency for
imaging, long waiting lists and reliance on archaic workflows. The company's
monthly B2B scan volume has grown over 22 times year-on-year to 335.
Trumpet: Trumpet is building a platform to transform the entire B2B sales
process from pitch to onboarding. Trumpet's platform enables sales
organisations to easily create online sales microsites or "Pods" personalised
to each customer.
Channel: Channel is a next-generation Business Intelligence tool to enable
anybody within an organisation to make data queries of specialist software
which usually requires some coding skills. This is enabled by using the
generative powers of large language models.
Kamma: Kamma is a data company with an engine that processes geospatial and
regulatory data. The engine maps properties by address, provides on demand
regulatory data relating to an address, and visually overlays data on
properties, to help assess the wider regulatory risk associated with an
individual property or portfolio.
Knok Health: Knok is a telemedicine solution for virtual consultations that
provides a combination of triage, scheduling, record keeping, and integration
with healthcare providers. Knok Healthcare's product, Panacea, aims to be the
reference white label provider for virtual consultations.
Konfir: Konfir is an Application Programming Interface ("API") led
verification platform that enables instant employment history and prior income
checks. Konfir provides fast, safe and cost-effective access to employment and
income data available through integrations with payroll APIs, direct
relationships with payroll / payment providers and Open Banking technology.
Semble: Semble is a cloud-based clinic management system, which helps
healthcare practices manage all aspects of their administration in one place.
Their software allows medical practices to manage patient data and electronic
health records, manage their appointments and other practise management
functions. Having grown rapidly in the UK, Semble are expanding into
France.
SonicJobs: SonicJobs is an app-based job search platform specialising in roles
in blue collar industries including hospitality, retail, beauty, logistics,
health and social care. SonicJobs differentiates itself from other job sites
by the ease with which a candidate can apply for a role via their platform.
Company Spotlight: Modo Energy
Modo Energy
Battery storage technology helps by making the energy grid more stable,
increasing the usage of renewable energy sources, handling periods of high
energy demand, offering backup power during emergencies, and lowering carbon
emissions.
The Team
Based in Birmingham, Modo Energy was founded in 2019 with a simple mission:
"to transform the energy industry through transparency of data". Modo's
leadership team has strong expertise in this sector. CEO Quentin Scrimshire
was previously Head of Energy Storage at Kiwi Power. Before this, he spent
four years as an Engineer at Centrica, where he worked on battery energy
storage projects. Tim Overton, Modo's Chief Operating Officer previously spent
six years as an engineer with Fichtner, an energy engineering consultancy.
The Product
Modo gathers independent data from more than 15 separate sources to provide
companies with focused and actionable insights on energy markets and energy
asset performance, helping to accelerate the renewable shift in energy grids.
Modo's databases have multiple uses, including within financial reporting, for
insurance claims within the energy sector, helping asset managers to assess
potential acquisitions, energy market forecasting, and educating company staff
around energy markets.
The Market
Due to the rising demand for cleaner energy sources as countries across the
world attempt to achieve net zero carbon emissions, the global market for
battery storage is predicted to reach around $16 billion by 20304. With an
estimated 30x more energy storage needed to meet decarbonisation goals, Modo
is well positioned within its market.
Outlook
We are continuing to gradually expand the portfolio based on three core
beliefs at the heart of the investment strategy for the Company:
· It pays to invest early - the Company typically invests at
Seed-stage investment rounds when a company's annual revenues are usually
under £1m per annum and at which point the company's valuation is relatively
low. This increases the potential return when compared with investing in more
mature companies whose investment risk may be lower but business valuations
higher.
· Focusing on business-to-business ("B2B") companies; allows us to
have thorough due diligence conversations with the existing (or prospective)
customers of potential new investees, and our research suggests there are far
more successful exits of B2B companies than consumer focused companies.
· Diversification is key to reduce risk. The Company combines
diversification in three main areas: diversifying across 48 (and growing)
individual portfolio companies; sector diversification - we invest in
portfolio companies across several different business sectors within the B2B
theme; company age diversification - earlier "vintages" of investee companies
mature over time and mix with newer investments so that the portfolio covers
various stages of the venture lifecycle.
Despite economic growth forecasts remaining modest and interest rates likely
to remain high over the next year, we have a healthy pipeline of new and
follow-on investment opportunities for the Company on which we are currently
performing due diligence. As we write there are three investments that are in
the process of deal execution.
As mentioned in the Chair's Statement on pages 7 to 10, we recently launched a
new offer for subscription on 22 September 2023, which will allow us to
continue to support our portfolio companies, as well as to pursue new
investment opportunities as they arise and leverage some of the fixed cost
base of the Company.
If you have any questions, please do not hesitate to call us on 020 7201 8990.
Ian McLennan
Partner
For Triple Point Investment Management LLP
23 October 2023
Investment Portfolio Summary
For the six months ended 31 August 2023
Unaudited 31 August 2023 Audited 28 February 2023
Cost Valuation Cost Valuation
£'000 % £'000 % £'000 % £'000 %
Unquoted qualifying holdings 34,167 69.64 37,479 71.55 27,725 59.73 31,498 62.74
Non-Qualifying holdings 471 0.96 481 0.92 471 1.01 481 0.96
Financial assets at fair value through profit or loss 34,638 70.60 37,960 72.46 28,196 60.74 31,979 63.70
Cash and cash equivalents 14,425 29.40 14,425 27.54 18,222 39.26 18,222 36.30
49,063 100.00 52,385 100.00 46,418 100.00 50,201 100.00
Qualifying Holdings
Unquoted
Venture Investments
Ably Real Time 1,312 2.67 3,153 6.02 1,312 2.83 3,153 6.28
Semble (previously HeyDoc) 1,760 3.59 2,374 4.53 760 1.64 1,374 2.74
Pelago (previously Quit Genius) 1,245 2.54 2,265 4.32 1,245 2.68 2,565 5.11
Ryde 2,000 4.08 2,000 3.82 1,988 4.28 1,988 3.96
Vyne Technologies 1,752 3.57 1,981 3.78 1,752 3.77 3,233 6.44
Modo Energy 1,500 3.06 1,862 3.55 - - - -
Veremark 910 1.85 1,529 2.92 910 1.96 1,529 3.05
Scan.com 1,300 2.65 1,500 2.86 800 1.72 1,000 1.99
AeroCloud 1,500 3.06 1,500 2.86 1,500 3.23 1,500 2.99
Channel (previously Rhubarb) 700 1.43 1,489 2.84 400 0.86 400 0.80
Nory 1,527 3.11 1,462 2.79 - - - -
Counting Up 920 1.88 1,044 1.99 920 1.98 1,044 2.08
OutThink 1,000 2.04 1,000 1.91 1,000 2.15 1,000 1.99
PetsApp 1,000 2.04 1,000 1.91 1,000 2.15 1,000 1.99
Biorelate 1,000 2.04 1,000 1.91 1,000 2.15 1,000 1.99
Fertifa 1,000 2.04 1,000 1.91 - - - -
Airly 987 2.01 947 1.81 987 2.13 999 1.99
Kamma 800 1.63 902 1.72 500 1.08 200 0.40
Konfir 800 1.63 838 1.60 500 1.08 519 1.03
Tickitto 1,000 2.04 800 1.53 1,000 2.15 800 1.59
Knok 684 1.39 796 1.52 513 1.11 640 1.27
SonicJobs 600 1.22 788 1.50 450 0.97 638 1.27
Pixie 915 1.86 686 1.31 915 1.97 915 1.82
Crowd Data 500 1.02 500 0.95 500 1.08 500 1.00
Aptem (previously MWS) 150 0.31 441 0.84 150 0.32 441 0.88
Payaable (t/a Nook) 343 0.70 438 0.84 343 0.74 438 0.87
Adepto 300 0.61 410 0.78 300 0.65 432 0.86
Exate 500 1.02 400 0.76 500 1.08 400 0.80
Stepex 499 1.02 399 0.76 499 1.08 399 0.79
Ramp 309 0.63 309 0.59 308 0.66 308 0.61
Konstructly 300 0.61 300 0.57 300 0.65 300 0.60
Shenval 860 1.75 264 0.50 860 1.85 292 0.58
Visibly Tech 300 0.61 240 0.46 300 0.65 300 0.60
Learnerbly 200 0.41 235 0.45 200 0.43 200 0.40
Catalyst 224 0.46 224 0.43 224 0.48 224 0.45
Trumpet 220 0.45 220 0.42 120 0.26 120 0.24
Realforce (previously Adfenix) 799 1.63 213 0.41 799 1.72 638 1.27
Virtual Science AI 182 0.37 182 0.35 - - - -
Artifical Artists 150 0.31 150 0.29 150 0.32 150 0.30
Seedata 150 0.31 150 0.29 150 0.32 150 0.30
Statement 150 0.31 150 0.29 - - - -
Expression Insurance 1,000 2.04 118 0.23 1,000 2.15 118 0.24
Sealit 200 0.41 100 0.19 200 0.43 100 0.20
Bkwai 250 0.51 91 0.17 250 0.54 91 0.18
Augnet 300 0.61 29 0.06 300 0.65 100 0.20
Aventus 70 0.14 - - 70 0.15 - -
Localz - - - - 750 1.62 300 0.60
34,167 69.64 37,479 71.55 27,725 59.73 31,498 62.74
Investment Portfolio 31 August 2023 28 February 2023
Cost Valuation Cost Valuation
£'000 % £'000 % £'000 % £'000 %
Non-Qualifying Holdings
Unquoted
Hydroelectric Power
Modern Power Generation Ltd 471 0.96 481 0.92 471 1.01 481 0.96
471 0.96 481 0.92 471 1.01 481 0.96
Principal Risks and Uncertainties
The Directors seek to mitigate its principal risks by regularly reviewing
performance and monitoring progress and compliance. In the mitigation and
management of these risks, the Directors carry out a robust assessment of the
Company's emerging and principal risks, including those that would threaten
its business model, future performance, solvency or liquidity and reputation.
The main areas of risk identified by them, along with the risks to which the
Company is exposed through its operational and investing activities, are
detailed below.
VCT Qualifying Status Risk The Company is always required to observe the
conditions laid down in the Income Tax Act 2007 for the maintenance of
approved VCT status. The loss of such approval could lead to the Company
losing its exemption from corporation tax on capital gains, to investors being
liable to pay income tax on dividends received from the Company and, in
certain circumstances, to investors being required to repay the initial income
tax relief on their investment.
Mitigation: The Investment Manager keeps the Company's VCT qualifying status
under continual review and reports to the Board at Board Meetings. The Board
has appointed Philip Hare & Associates LLP to undertake an independent VCT
status monitoring role. Any new Venture investments are reviewed by legal
advisers, and their opinion sought on whether the investment is likely to be a
qualifying investment.
Investment Risk the Company's VCT qualifying investments will be held in small
and medium-sized unquoted companies which, by their nature, entail a higher
level of risk and lower liquidity than investments in large, quoted companies.
This could make it difficult to realise investments in line with the relevant
strategy.
Mitigation: The Directors and Investment Manager aim to limit the risk
attached to the portfolio by careful selection and timely realisation of
investments, by carrying out rigorous due diligence procedures and by
maintaining a spread of holdings in terms of industry sector and geographical
location. The Board reviews the investment portfolio with the Investment
Manager on a regular basis. Where possible, a member of the Investment Manager
team holds a seat on the board of the portfolio companies. This enables the
Investment Manager to observe and offer guidance to the portfolio company when
and where this may be required. TPIM has developed a wide industry network and
strong pipeline which is reviewed quarterly by the Board. The Company aims to
mitigate some of the risks typically associated with venture capital investing
by proactively working with businesses with the potential for high growth that
are actively solving problems for established corporates, increasing their
chances of success.
Financial Risk as a VCT the Company is exposed to market price risk, credit
risk, fair value risk, liquidity risk, inflation risk and interest rate risk.
As most of the Company's investments will involve a medium to long-term
commitment and will be relatively illiquid, the Directors consider that it is
inappropriate to finance the Company's activities through borrowing, other
than for short-term liquidity.
Mitigation: The key elements of financial risk are discussed in more detail in
the 2023 Annual Report available at
https://www.triplepoint.co.uk/current-vcts/triple-point-venture-vct-plc/s2539/.
At the reporting date, the Company had no borrowings and substantial cash on
the balance sheet.
Failure of Internal Controls Risk Controls designed to ensure that the
Company's assets are safeguarded and that proper accounting records are
maintained.
Mitigation: The Board regularly reviews the system of internal controls, both
financial and non-financial, operated by the Company and its Manager.
Emerging Risks
Climate Change and Related Legislation Triple Point as Investment Manager is
committed to sound management of climate risk and opportunity, to ensure the
long-term protection of asset value through reduction of exposure to the risk
and also to contribute to essential carbon reduction requirements. The
Investment Manager is in the process of setting Net Zero targets across its
entire portfolio, which will cover the Company's assets. The intention is to
follow the most up to date guidance from the Science Based Targets Initiative
("SBTi"). . Climate Change or related legislation is considered unlikely to
have a major near-term impact on the Company, as the vast majority of the
portfolio is made up of a diversified range of software-based businesses.
Each prospective new company holding is considered with regard to how it may
be impacted by climate change and how this could in turn affect future growth.
Where appropriate the team may also access a specialist physical climate risk
assessment tool to determine possible climate risk mitigation requirements
prior to investment.
Economic Conditions A further deterioration in macroeconomic conditions, such
as such as a severe recession, encompassing slow growth, high unemployment and
rising inflation ("stagflation"),could have both a direct and indirect impact
on existing portfolio companies, particularly in
the event that investor risk appetite declines, as this would make it harder
to secure new venture funds or other capital, which is often necessary for
their continued long-term operations.
This could impact investee companies' performance and valuation metrics,
ability to raise new funds (and the valuation of such raises), and ability to
grow. Any sustained deterioration of trust, liquidity or capital in the
banking sector could have a material impact on existing portfolio companies
given their reliance on existing cash reserves to fund regular outgoings.
The Company is monitoring closely to evaluate the impact on both the
Company and the investee companies.
Directors' Responsibility Statement
The Directors have prepared the Interim Report for the Company in accordance
with International Financial Reporting Standards ("IFRS").
In preparing the Interim Report for the six month period to 31 August 2023,
the Directors confirm that to the best of their knowledge this condensed set
of financial statements has been prepared in accordance with the UK adopted
International Accounting Standard 34 "Interim Financial Reporting" and that
the Chair's Statement on pages 7 to 10 includes a fair review of the
information required by DTR 4.2.7 and DTR 4.2.8 of the Disclosure and
Transparency rules of the United Kingdom's Financial Conduct Authority namely:
a) the Interim Financial Report includes a fair review of important events
during the period and their effect on the Financial Statements and a
description of specific risks and uncertainties for the remainder of the
accounting period;
b) the Interim Financial Report gives a true and fair view in accordance
with IFRS of the assets, liabilities, financial position and of the results of
the Company for the period and complies with IFRS and the Companies Act
2006;
c) the Interim Financial Report includes a fair review of related party
transactions and changes therein. There were no related party transactions for
the accounting period, as defined in International Accounting Standards; and
d) the Directors believe that the Company has sufficient financial resources
to manage its business risks in the current uncertain economic outlook.
This Interim Financial Report has not been audited or reviewed by the
auditors.
Jane Owen
Chair
23 October 2023
Unaudited Statement of Comprehensive Income
For the six months ended 31 August 2023
Unaudited Audited Unaudited
Six months ended Year ended Six months ended
31 August 2023 28 February 2023 31 August 2022
Note
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investment income 5 290 - 290 213 - 213 78 - 78
Realised (losses) / gains on investment - (450) (450) - 1,013 1,013 - 2,342 2,342
Investment holding losses - (462) (462) - (826) (826) - (1,631) (1,631)
Investment return 290 (912) (622) 213 187 400 78 711 789
Investment management fees 6 48 431 479 113 1,014 1,127 81 724 805
Other expenses 276 - 276 638 - 638 223 (203) 20
324 431 755 751 1,014 1,765 304 521 825
(Loss)/profit before taxation (34) (1,343) (1,377) (538) (827) (1,365) (226) 190 (36)
Taxation 8 - - - - - - - 74 74
(Loss)/profit after taxation (34) (1,343) (1,377) (538) (827) (1,365) (226) 264 38
Total comprehensive (loss)/income (34) (1,343) (1,377) (538) (827) (1,365) (226) 264 38
Basic & diluted earnings per share
A Shares - - - 0.10p (2.93p) (2.83p) 0.14p (0.12p) 0.02p
B Shares - - - (1.44p) 33.75p 32.31p (0.94p) 33.25p 32.31p
Venture Shares 9 (0.07p) (2.64p) (2.71p) (1.17p) (7.30p) (8.47p) (0.48p) (5.46p) (5.94p)
The total column of this statement is the Statement of Comprehensive Income of
the Company prepared in accordance with International Financial Reporting
Standards ("IFRS"). The supplementary revenue return and capital columns have
been prepared in accordance with the Association of Investment Companies
Statement of Recommended Practice ("AIC SORP"). All revenue and capital items
in the above statement derive from continuing operations. This Statement of
Comprehensive Income includes all recognised gains and losses. The
accompanying notes are an integral part of this statemet
Unaudited Balance Sheet
At 31 August 2023
Company No: 07324448
Unaudited Audited Unaudited
31 August 2023 28 February 2023 31 August 2022
Note £'000 £'000 £'000
Non-current assets
Financial assets at fair value through profit or loss 10 37,960 31,979 31,928
Deferred proceeds 300 - -
38,260 31,979 31,928
Current assets
Receivables 1,312 667 1,453
Cash and cash equivalents 11 14,425 18,222 16,656
15,737 18,889 18,109
Total assets 53,997 50,868 50,037
Current liabilities
Payables and accrued expenses 456 7,035 687
Current taxation payable - 16 (58)
456 7,051 629
Net assets 53,541 43,817 49,408
Equity attributable to equity holders
Share capital 12 538 593 561
Share premium 14,660 3,497 -
Share redemption reserve 174 9 (11)
Special distributable reserve 37,503 37,675 45,412
Capital reserve 2,437 3,780 4,871
Revenue reserve (1,771) (1,737) (1,425)
Total equity 53,541 43,817 49,408
Shareholders' funds
Net asset value per A Share - 1.00p 13.22p
Net asset value per B Share - 1.00p 80.00p
Net asset value per Venture Share 14 99.61p 102.17p 107.99p
31 August 2023
28 February 2023
31 August 2022
Note
£'000
£'000
£'000
Non-current assets
Financial assets at fair value through profit or loss
10
37,960
31,979
31,928
Deferred proceeds
300
-
-
38,260
31,979
31,928
Current assets
Receivables
1,312
667
1,453
Cash and cash equivalents
11
14,425
18,222
16,656
15,737
18,889
18,109
Total assets
53,997
50,868
50,037
Current liabilities
Payables and accrued expenses
456
7,035
687
Current taxation payable
-
16
(58)
456
7,051
629
Net assets
53,541
43,817
49,408
Equity attributable to equity holders
Share capital
12
538
593
561
Share premium
14,660
3,497
-
Share redemption reserve
174
9
(11)
Special distributable reserve
37,503
37,675
45,412
Capital reserve
2,437
3,780
4,871
Revenue reserve
(1,771)
(1,737)
(1,425)
Total equity
53,541
43,817
49,408
Shareholders' funds
Net asset value per A Share
-
1.00p
13.22p
Net asset value per B Share
-
1.00p
80.00p
Net asset value per Venture Share
14
99.61p
102.17p
107.99p
The statements were approved by the Directors and authorised for issue on 23
October 2023 and are signed on their behalf by:
Jane Owen
Chair
23 October 2023
The accompanying notes are an integral part of this statement.
Unaudited Statement of Changes in Shareholders' Equity
For the six months ended 31 August 2023
Issued Capital Share Premium Share Redemption Reserve Special Distributable Reserve Capital Reserve Revenue Reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Six months ended 31 August 2023
Opening balance 593 3,497 9 37,675 3,780 (1,737) 43,817
Issue of share capital 110 11,457 - - - - 11,567
Cost of issue of shares - (294) - - - - (294)
Buy back of own shares (165) - 165 (172) - - (172)
Transactions with owners (55) 11,163 165 (172) - - 11,101
Total comprehensive loss for the period - - - - (1,343) (34) (1,377)
Balance at 31 August 2023 538 14,660 174 37,503 2,437 (1,771) 53,541
The Capital Reserve consists of:
Investment holding gains 3,983
Other realised losses (1,546)
2,437
Year ended 28 February 2023
Opening balance 430 26,328 7 5,052 4,607 (1,199) 35,225
Issue of share capital 165 18,587 - - - - 18,752
Cost of issue of shares - (461) - - - - (461)
Buy back of own shares (2) - 2 (211) - - (211)
Conversion of share premium - (40,957) - 40,957 - - -
Dividends paid/payable - - - (8,123) - - (8,123)
Transactions with owners 163 (22,831) 2 32,623 - - 9,957
Total comprehensive loss for the period - - - - (827) (538) (1,365)
Balance at 28 February 2023 593 3,497 9 37,675 3,780 (1,737) 43,817
The Capital Reserve consists of:
Investment holding gains 4,445
Other realised losses (665)
3,780
Issued Capital Share Premium Share Redemption Reserve Special Distributable Reserve Capital Reserve Revenue Reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Six months ended 31 August 2022
Opening balance 430 26,328 7 5,052 4,607 (1,199) 35,225
Issue of share capital 131 15,097 - - - - 15,228
Cost of issue of shares - (386) - - - - (386)
Buy back of own shares - - (18) - - - (18)
Dividends paid - - - (679) - - (679)
Conversion of share premium - (41,039) - 41,039 - - -
Transactions with owners 131 (26,328) (18) 40,360 - - 14,145
Total comprehensive loss for the period - - - - 264 (226) 38
Balance at 31 August 2022 561 - (11) 45,412 4,871 (1,425) 49,408
The Capital Reserve consists of:
Investment holding gains 3,843
Other realised gains 1,028
4,871
The capital reserve represents the proportion of Investment Management fees
charged against capital and realised/unrealised gains or losses on the
disposal/revaluation of investments. The unrealised capital reserve is not
distributable. The special distributable reserve was created on court
cancellation of the share premium account. The revenue reserve, realised
capital reserve and special distributable reserve under company law are
distributable by way of dividend.
At 31 August 2023 the total reserves available for distribution under the
Companies Act are £34,186,000 (28 February 2023: £35,273,000). This consists
of the special distributable reserve less the realised capital loss and less
the revenue loss.
At 31 August 2023 the total reserves available for distribution under the VCT
rules are £3,388,143 (28 February 2023: £3,560,976). To maintain VCT status,
amounts in the special distributable reserve are not distributable until after
the 3rd accounting period following the relevant allotments of Share capital.
Unaudited Statement of Cash Flows
For the six months ended 31 August 2023
Unaudited Audited Unaudited
Six months ended Year ended Six months ended
31 August 2023 28 February 2023 31 August 2022
£'000 £'000 £'000
Cash flows from operating activities
Loss before taxation (1,377) (1,365) (36)
Loss / (gain) arising on the disposal of investments during the period 450 (1,013) (2,342)
Loss arising on the revaluation of investments at the period end 462 826 1,631
Adjustment for: Interest on cash deposits (175) (66) -
Cash flow utilised in operations (640) (1,618) (747)
Increase in receivables (646) (391) (1,177)
Decrease in payables (320) (488) (578)
Net cash flows from operating activities (1,606) (2,497) (2502)
Adjustment for non-cash items:
Foreign exchange gain - - (200)
Increase/(decrease) in taxation (16) 1 -
Net cash flows from operating activities (1,622) (2,496) (2,702)
Cash flows from investing activities
Purchase of financial assets at fair value through profit or loss (7,192) (11,381) (4,880)
Disposal of financial assets at fair value through profit or loss - 9,570 3,846
Interest on cash deposits 175 66 -
Net cash flows from investing activities (7,017) (1,745) (1,034)
Cash flows from financing activities
Issue of shares* 11,274 18,086 14,842
Share buy-back & cancellation (172) (211) (18)
Dividends paid (6,260) (1,659) (679)
Net cash flows from financing activities 4,842 16,216 14,145
Net (decrease)/increase in cash and cash equivalents (3,797) 11,975 10,409
Reconciliation of net cash flow to movements in cash and cash equivalents
Cash and cash equivalents at 1 March 2023 18,222 6,247 6,247
Net (decrease)/increase in cash and cash equivalents (3,797) 11,975 10,409
Cash and cash equivalents at 31 August 2023 14,425 18,222 16,656
* Net of share issue cost and dividend re-investment
The accompanying notes are an integral part of this statement.
Condensed Notes to the Unaudited Interim Financial Statements
For the six months ended 31 August 2023
1. Corporate information
The Unaudited Interim Report of the Company for the six months ended 31 August
2023 was authorised for issue in accordance with a resolution of the Directors
on 23 October 2023.
The Company applied for listing on the London Stock Exchange on 24 December
2010.
Triple Point Venture VCT plc is incorporated and domiciled in United Kingdom
and registered in England and Wales. The address of the Company's registered
office, which is also its principal place of business, is 1 King William
Street, London, EC4N 7AF.
The Company is required to nominate a functional currency, being the currency
in which the Company predominately operates. The functional and reporting
currency is pounds sterling (£), reflecting the primary economic environment
in which the Company operates.
The principal activity of the Company is investment. The Company's investment
strategy is to offer combined exposure to cash or cash-based funds and venture
capital investments focused on companies with contractual revenues from
financially secure counterparties.
Final returns of capital to the A and B Shareholders totalling £0.92 million
and £5.4 million respectively were distributed during the period and the A
and B share classes were cancelled effective 30 March 2023.
2. Basis of preparation and accounting
policies
Basis of preparation
The Unaudited Interim Report of the Company for the six months ended 31 August
2023 has been prepared in accordance with IAS 34: Interim Financial Reporting.
The same accounting policies and methods of computation are followed in the
Interim Financial Report as were followed in the most recent Financial
Statements. It does not include all the information required for full
Financial Statements and should be read in conjunction with the Financial
Statements for the year ended 28 February 2023.
Estimates
In the application of the Company's accounting policies, the Directors are
required to make judgements, estimates and assumptions that affect the
reported amounts of assets, liabilities, income and expenses. It is possible
that actual results may differ from these estimates.
The estimates and underlying assumptions underpinning our investments are
reviewed on an ongoing basis by both the Board and the Investment Manager.
Revisions to any accounting estimates are recognised in the period in which
the estimate is revised if the revision affects only that period, or in the
period of the revision and future periods if the revision affects both current
and future periods.
Going Concern
The Company's business activities, together with the factors likely to affect
its future development, performance and position, are set out in the
Investment Manager's Review. The Company faces a number of risks and
uncertainties, as set out above on pages 22 to 23
The Company continues to meet day-to-day liquidity needs through its cash
resources and income from its investment portfolio and cash and cash
equivalents. The Company's revenue comes predominantly from interest earned on
its cash and liquid resources and from the investments in the Hydropower
company, Shenval and Modern Power Generation ("MPG"), a small lending
business.
The major cash outflows of the Company continue to be the payment of
dividends to Shareholders, costs relating to the funding of investments and
investment management fees due to the Investment Manager. Dividends and new
investments are discretionary and, in a time of stress the Investment Manager
may allow the Company to defer payment of management fees.
The Directors have reviewed cash flow projections which show the Company has
sufficient financial resources to meet its obligations for at least 12 months
from the date of this report. Accordingly, the Directors continue to adopt the
going concern basis in preparing the financial statements.
3. Segmental reporting
The Directors are of the opinion that the Company only has a single operating
segment of business, being investment activity.
4. Significant risk changes in the current reporting period
The Company has reviewed its exposure to climate related and other emerging
business risks, but has not identified any new significant risks that could
impact the financial performance or position of the Company as at 31 August
2023.
For a detailed discussion about the Company's performance please refer to the
Chairmans statement on pages 7 to 10. The financial position of the Company
can be found on pages 26 to 29.
5. Investment income
Unaudited Audited Unaudited
Six months ended 31 August 2023 Year Ended 28 February 2023 Six months ended 31 August 2022
Total Total Total
£'000 £'000 £'000
Interest receivable on bank balances 175 34 44
Loan interest 55 179 34
Other investment income 60 - -
290 213 78
6. Investment management fees
Unaudited Six months ended
31 August 2023 Audited Year ended Unaudited Six months ended
28 February 2023 31 August 2022
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Management fees 48 431 479 113 1,014 1,127 81 724 805
Total management fees 48 431 479 113 1,014 1,127 81 724 805
TPIM provides investment management services to the Company under an
Investment Management Agreement dated 12 September 2023.
From 12 September 2023, the Investment Manager was appointed AIFM and is now
responsible for risk management and portfolio management. The Investment
Manager has full discretion under the Investment Management Agreement to make
investments in accordance with the Company's Investment Policy from time to
time.
The agreement provides for an investment management fee of 2.00% per annum of
net assets, payable quarterly in arrears. The appointment shall continue for
a period of at least six years from the date of first admission of Venture
Shares.
Performance fee
Triple Point earns a performance fee if the total return (net asset value plus
distributions made) to holders of the Venture Shares exceeds their net initial
subscription price by an annual threshold of 3% per annum, calculated on a
compound basis. To the extent that the total return exceeds the threshold
over the relevant period then a performance incentive fee of 20% of the excess
is payable to Triple Point. Performance fees are assessed based on the VCT's
audited year-end valuations (i.e. in February each year) and will be accrued
in the accounts of the Company. High water marks apply.
7. Directors' remuneration
Unaudited Audited Unaudited
Six months ended 31 August 2023 Year ended 28 February 2023 Six months ended 31 August 2022
Total Total Total
£'000 £'000 £'000
Jane Owen 13 24 9
Chad Murrin* 8 19 8
Jamie Brooke 5 - -
Tim Clarke** - 7 6
Julian Bartlett 11 20 8
37 70 31
*Resigned as a Director effective 19 July 2023
**Resigned as a Director effective 14 July 2022
The only remuneration received by the Directors was their Directors' fees. The
Company has no employees other than the Non-Executive Directors.
8. Taxation
Unaudited Audited Unaudited
Six months 31 August 2023 Year ended 28 February 2023 Six months 31 August 2022
Total Total Total
£'000 £'000 £'000
Loss on ordinary activities before tax (1,377) (1,365) (36)
Corporation tax @ 25% (28 Feb 2023 - 19%) (344) (259) (8)
Effect of:
Capital losses/(gains) not taxable 228 (35) (135)
Disallowed expenditure - 10 4
Unrelieved tax losses arising in the period (457) (3) -
Excess management expenses on which deferred tax not recognised 573 287 65
Tax charge/(credit) for the period - - (74)
Capital gains and losses are exempt from corporation tax due to the Company's
status as a Venture Capital Trust.
Investment companies which have been approved by HM Revenue & Customs
under section 1158 of the Corporation Tax Act 2010 are exempt from tax on
capital gains. The Directors are of the opinion that the Company has complied
with the requirements for maintaining investment trust status for the
purposes of section 1158 of the Corporation Tax Act 2010. The Company has not
provided for deferred tax on any capital gains or losses arising on the
revaluation of investments.
9. Earnings per share
The loss per share is 2.71p and is based on a loss from ordinary activities
after tax of £1,377,000 and on the weighted average number of Venture Shares
in issue during the period of 50,754,091.
10. Financial assets at fair value through profit or loss
Venture Shares Total
£'000 £'000
Six months ended 31 August 2023:
Opening cost 27,512 27,512
Opening investment holding gains 4,467 4,467
Opening fair value at 1 March 2023 31,979 31,979
Purchases at cost 7,193 7,193
Disposal Proceeds (300) (300)
Realised loss on disposal (450) (450)
Investment holding losses (462) (462)
Closing fair value at 31 August 2023 37,960 37,960
Closing cost 34,638 34,638
Closing investment holding gains 3,322 3,322
A Shares B Shares Venture Shares Total
£'000 £'000 £'000 £'000
Year ended 28 February 2023:
Opening cost 860 6,105 17,785 24,750
Opening investment holding gains/(losses) (94) (2,040) 7,366 5,232
Opening fair value at 1 March 2022 766 4,065 25,151 29,982
Purchases at cost - - 11,381 11,381
Disposal proceeds (233) (6,656) (2,681) (9,570)
Adjustments between Share Classes (246) - 245 (1)
Realised (loss)/gain on disposal (130) 551 592 1,013
Investment holding (losses)/gains (157) 2,040 (2,709) (826)
Closing fair value at 28 February 2023 - - 31,979 31,979
Closing cost - - 27,512 27,512
Closing investment holding gains - - 4,467 4,467
A Shares B Shares Venture Shares Total
£'000 £'000 £'000 £'000
Six months ended 31 August 2022:
Opening cost 860 6,105 17,785 24,750
Opening investment holding gains/(losses) (94) (2,040) 7,366 5,232
Opening fair value at 1 March 2022 766 4,065 25,151 29,982
Purchases at cost - - 4,880 4,880
Disposal proceeds (233) (1,096) (2,518) (3,847)
Realised (loss)/gain on disposal 233 91 2,018 2,342
Investment holding (losses)/gains (233) 2,474 (3,670) (1,429)
Closing fair value at 31 August 2022 533 5,534 25,861 31,928
Closing cost 860 5,100 22,165 28,125
Closing investment holding gains/(losses) (327) 434 3,696 3,803
11. Cash and cash equivalents
Cash and cash equivalents consist of deposits held with The Royal Bank of
Scotland plc, as well as investments in the Vanguard UK Short-Term Bond Index
Fund and the BlackRock Sterling ICS Liquidity Funds.
12. Share Capital
Ordinary shares of £0.01.
Six months ended 31 August 2023
As at 1 March 2023 No of V shares No of A shares No of B shares Total Shares Amount £'000
42,720,246 9,777,285 6,758,795 59,256,326 593
Allotted during the period
20 March 2023 5,831,295 - - 5,831,295 58
4 April 2023 2,093,574 - - 2,093,574 21
5 April 2023 464,579 - - 464,579 5
24 April 2023 161,021 - - 161,021 2
6 July 2023 1,138,499 - - 1,138,499 11
28 July 2023 1,347,801 - - 1,347,801 13
Shares bought back and cancelled
10 March 2023 - (9,777,285) - (9,777,285) (97)
10 March 2023 - - (6,758,795) (6,758,795) (68)
4 August 2023 (6,958) - - (6,958) -
Ordinary Share Capital 31 August 2023 53,750,057 - - 53,750,057 538
Year ended 28 February 2023
As at 1 March 2022 No of V Shares No of A Shares No of B Shares Total Shares Amount
£'000
26,445,431 9,777,285 6,758,795 42,981,511 430
Allotted during the period
1 March 2022 3,034,337 - - 3,034,337 30
15 March 2022 1,172,794 - - 1,172,794 12
1 April 2022 4,067,490 - - 4,067,490 41
5 April 2022 1,698,756 - - 1,698,756 17
8 July 2022 1,755,825 - - 1,755,825 18
27 July 2022 698,271 - - 698,271 7
29 July 2022 692,265 - - 692,265 7
5 September 2022 196,331 - - 196,331 2
4 November 2022 1,308,744 - - 1,308,744 13
13 December 2022 1,859,708 - - 1,859,708 19
Shares bought back and cancelled
18 August 2022 (17,665) - - (17,665) (1)
18 November 2022 (192,041) - - (192,041) (2)
Ordinary Share Capital 28 February 2023 42,720,246 9,777,285 6,758,795 59,256,326 593
Six months ended 31 August 2022
As at 1 March 2022 No of V Shares No of A Shares No of B Shares Total Shares Amount
£'000
26,445,431 9,777,285 6,758,795 42,981,511 430
Allotted during the period
1 March 2022 3,034,337 - - 3,034,337 30
15 March 2022 1,172,794 - - 1,172,794 12
1 April 2022 4,067,490 - - 4,067,490 41
5 April 2022 1,698,756 - - 1,698,756 17
8 July 2022 1,755,825 - - 1,755,825 1
27 July 2022 698,271 - -- 698,271 7
29 July 2022 692,265 - 692,265 7
Shares bought back and cancelled
18 August 2022 (17,665) - - (18,408) -
Ordinary Share Capital 31 August 2022 39,547,504 9,777,285 6,758,795 56,083,584 561
Final returns to the A and B Shareholders totalling £0.92 million and £5.4
million respectively were distributed during the period and the A and B share
classes were cancelled effective 30 March 2023.
13. Dividends
Six Months ended 31 August 2023 Year ended 28 February 2023 Six Months ended 31 August 2022
£'000 £'000 £'000
V Share Dividend 3.00p per share - 1,187 -
A Share Dividend 9.42p per share - 921 -
B Share Dividend 10.00p per share - 676 -
B Share Dividend 79.00p per share - 5,339 -
Total Dividend Paid - 8,123 -
The Board announced an interim dividend of 2p per share, equivalent to £0.88m
to Shareholders. The dividend was paid on 4 September 2023 to Shareholders on
the register at the close of business on 4 August 2023 and as a result is not
included in the table above.
14. Net asset value per share
Six months ended 31 August 2023 Year ended 28 February 2023 Six months ended 31 August 2022
Net asset value per share (p) Venture Shares 99.61 102.17 107.99
The net asset value per share for the Venture Shares is 99.61p and is
calculated on net assets of £53,541,000 divided by the 53,750,057 Venture
Shares in issue as at 31 August 2023.
15. Ongoing Charges Ratio (annualised)
Six months to 31 August 2023 Year to 28 February 2023 Six months to 31 August 2022
Management fee (£'000) 479 1,127 442
Other operating expenses (£'000) 276 347 219
Total management fee and other operating expenses (£'000) 755 1,474 661
Average net assets (£)* 50,340,318 45,917,974 43,903,182
Ongoing Charges ratio (annualised) 3.00% 3.21% 3.00%
The annualised ongoing charges represent the total expense for the year with
the exclusion of performance fees payable to Triple Point Investment
Management LLP. TPV's annual running costs will continue to be capped at 3.5%
of TPV's NAV (excluding VAT and also any performance fees payable to TPIM).
Any excess will be met by TPIM by way of a reduction in investment management
fees.
*Average net assets is calculated from overall average of quarterly net asset
value.
16. Related party
transactions
There were no related party transactions during the period as defined in
International Accounting Standards.
17. Post balance sheet events
The following events occurred between the balance sheet date and the signing
of this interim report:
On 4 September 2023 a dividend of 2 pence per share, totalling £0.88m, was
paid to holders of Venture Shares excluding shares allotted under the dividend
reinvestment scheme.
On 12 September 2023, TPIM was appointed as the Company's AIFM. Further
details can be found in the Chair's Statement on page 9.
Shareholder Information
Directors
Jane Owen
Julian Bartlett
Jamie Brooke
Administrator, Company Secretary and Registered Office
Hanway Advisory Limited
1 King William Street
London
EC4N 7AF
Registered Number
07324448
Investment Manager
Triple Point Investment Management LLP
1 King William Street
London
EC4N 7AF
Tel: 020 7201 8989
Independent Auditor
BDO LLP
55 Baker Street
London
W1U 7EU
Solicitors
Howard Kennedy LLP
No. 1 London Bridge
London
SE1 9BG
Registrars
Computershare Investor Services plc
The Pavilions
Bridgwater Road
Bristol
BS99 6ZY
VCT Taxation Advisers
Philip Hare & Associates LLP
6 Snow Hill
London
EC1A 2AY
Bankers
The Royal Bank of Scotland
plc
54 Lime
Street
London
EC3M 7NQ
Depositary
Indos Financial Limited
The Scalpel,
18th Floor,
52 Lime Street,
London
EC3M 7AF
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