REG - Vela Technologies - Quarterly Investment Update

Vela TechnologiesAnnouncement

10/02/2023 07:00

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RNS Number : 5148P  Vela Technologies PLC  10 February 2023

10 February 2023

Vela Technologies plc

("Vela" or "the Company")

Quarterly Investment Update

The Board of Vela (AIM:VELA), an AIM-quoted investing company focused on
early-stage and pre-IPO disruptive technology investments, is pleased to
report an update for the quarter ended 31 December 2022.

Executive Director, James Normand, commented:

"I am pleased to report that Vela's gross asset value increased by 8.3% during
the quarter ended 31 December 2022. This was largely attributable to a rise in
the quoted price for EnSilica's shares in this period, which we believe
reflects the market's recent greater appreciation of the commercial prospects
of the business which prompted us to invest in the company at the pre-IPO
stage a year ago. We have taken the opportunity to crystallise some of this
appreciation by selling about one third of our investment in EnSilica,  As a
result Vela's cash resources have been replenished, thus putting the Company
in a position where it can take advantage of promising investment
opportunities that continue to be shown to us."

Key numbers as at 31 December 2022*:

·     The value of Vela's total assets increased during the quarter by
£532,000 (8.3%) to £6,933,000.

·   Vela's portfolio comprised a total of 13 active investments (30
September 2022 - 13).  Two of these investments were unquoted, ten were
quoted, and the final investment was the interest in future royalties from the
Covid-19 remedy being developed by St George's Street Capital Limited (which
is held in the balance sheet as a financial asset).

·     The fair value of the investment portfolio was £6,068,000 (30
September 2022 - £5,896,000).

·     The change in the value of the investment portfolio reflects
disposals of investments valued at £254,000 at 30 September 2022 (generating
a realised profit of £133,000), a further investment of £100,000 in
Northcoders Group plc ('Northcoders') and a net unrealised increase in the
fair value of the investment portfolio of £327,000.

·     Vela's cash balances increased to £864,000 as at 31 December 2022
(30 September 2022 - £646,000).

*The figures contained within this quarterly investment update at 31 December
2022 and at 30 September 2022 are taken from unaudited management information.

Investments traded on a recognised stock market are valued using the
accounting policies outlined in the notes to the annual financial
statements.  Unlisted investments and other financial assets are stated at
the values attributed to them in the audited balance sheet as at 31 March
2022, unless there has been a transaction since that date which suggests a
materially different valuation.

Key developments in the quarter:

·      The Company held its annual general meeting on 25 October 2022
and all resolutions were duly passed.

·      In order to maintain Vela's percentage interest in this thriving
business, a further investment of £100,000 was made in Northcoders in
November 2022 as part of a secondary placing by that company.

·      During the quarter Vela sold an aggregate of 565,000 shares in
EnSilica plc ('EnSilica'), generating gross proceeds of £387,000 and a
realised profit of £133,000.

·      Antony Laiker resigned from the board on 20 October 2022.

Key developments in investee companies in the quarter:

·      On 17 October EnSilica announced strong results for the year
ended 31 May 2022, reporting an increase of 77% in turnover. In addition,
EnSilica announced two new contracts with existing customers on 12 December
worth $3.6 million.

·      On 29 November MTI Wireless Edge Ltd reported a significant
contract win worth $0.75 million.

·      On 21 November Northcoders announced that it had successfully
completed a placing (in which Vela made a further investment).

·      On 14 December Northcoders announced a significant contract win
with R(2) Factory, part of Rolls Royce, worth £0.45 million.

·      Cornerstone FS PLC implemented a change of senior management
(announced on 11 October) and revised its business plan. On 11 January 2023 a
trading update for the year ended 31 December 2022 was announced and indicated
a turnround in its fortunes, with unaudited turnover ahead of market
expectations.

·      On 26 January 2023 Skillcast Group plc published a positive
trading update for the year ended 31 December 2022 and expressed confidence
that it continues to expect to achieve the objectives set out at the time of
its admission to AIM in December 2021.

Developments since 31 December 2022:

·      On 20 January 2023 Vela invested £49,000 in Ethernity Networks
Limited.

·      On 26 January 2023 Mode Global Holdings plc announced the
cessation of activities, following the collapse of the crypto-currency
markets. The residual management is endeavouring to salvage some value for
shareholders.

Investment portfolio

At 31 December 2022 the Company's portfolio of investments was valued at
£6,068,000 and comprised equity or loan interests in the following 13
companies:

·      Community Social Investment Limited (formerly WeShop Limited)

·      Cornerstone FS PLC

·      Aeristech Limited

·      EnSilica plc

·      Igraine PLC

·      Kanabo Group Plc

·      MTI Wireless Edge Ltd.

·      Mode Global Holdings plc

·      Rural Broadband Solutions PLC

·      Northcoders Group plc

·      Skillcast Group plc

·      St George Street Capital Limited

·      TruSpine Technologies plc

Since the publication of the last quarterly update on 8 November 2022, the
Board of Vela has met with representatives of the following investee
companies:

·      Aeristech Limited

·      Cornerstone FS PLC

·      EnSilica plc

·      Igraine PLC

·      MTI Wireless Edge Ltd

·      Skillcast Group plc

·      St George Street Capital Limited

Vela has continued to explore opportunities to realise the value in its 8%
economic interest in the Covid-19/diabetes drug AZD1656, which remains in the
course of development and commercialisation by St George Street Capital
Limited.

 

For further information, please contact:

 Vela Technologies plc                        Tel: +44 (0) 7421 728875

 Brent Fitzpatrick, Non-Executive Chairman

 James Normand, Executive Director

 Allenby Capital Limited (Nominated Adviser)  Tel: +44 (0) 20 3328 5656
 Nick Athanas / Piers Shimwell

 Peterhouse Capital Limited (Broker)          Tel: +44 (0) 20 7469 0930
 Lucy Williams / Duncan Vasey / Eran Zucker

 Novus Communications (PR and IR Adviser)     Tel: +44 (0) 20 7448 9839
 Alan Green / Jacqueline Briscoe

 

About Vela Technologies

Vela Technologies plc (AIM: VELA) is an investing company focused on early
stage and pre-IPO long term disruptive technology investments. Vela's
investee companies have either developed ways of utilising technology or are
developing technology with a view to disrupting the businesses or sector in
which they operate. Vela Technologies will also invest in already-listed
companies where valuations offer additional opportunities.

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