Edge Performance VCT PLC Quarterly Update (3675C)

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RNS Number : 3675C

Edge Performance VCT PLC

16 January 2015

16 January 2015

Edge Performance VCT plc (the "Company")

QUARTERLY UPDATE

for the period from 1 September 2014 to 30 November 2014

The Company presents a quarterly update for the period from 1 September 2014 to 30 November 2014.

Dividends

On 7 November 2014, the Company paid the following dividends:

   --       7p per F Share, bringing cumulative dividends paid per F Share to 28p; 
   --       7p per G Share, bringing cumulative dividends paid per G Share to 21p; and 
   --       7p per I Share, bringing cumulative dividends paid per I Share to 14p. 

After the end of the quarter, the Company declared an interim dividend of 16p per E Share, which was paid on 30 December 2014, and which has brought total cumulative dividends per E Share to 44p.

These dividends mean that the Company's total distributions to shareholders since 2007 are approaching GBP45 million.

During the quarter, the Company also declared a further interim dividend of 3.5p per H Share, to be paid on 8 May 2015, which will bring cumulative dividends per H Share to 10.5p.

Portfolio

New investments

During the period from 1 September 2014 to 30 November 2014, the Company made the following portfolio investments, all from the H Share fund:

-- On 1 September 2014, the Company invested GBP225,000 in Intent HQ Holdings Limited, as part of an overall GBP3.56 million funding round, which is described in more detail in the Investment Manager's review in the Company's published half-yearly report for the six months ended 31 August 2014.

-- On 18 September 2014, the Company invested GBP500,000 in Lean Forward Limited, a new TV-based entertainment and "lite" betting service. This investment, which was part of a total investment round in Lean Forward of GBP8 million, has resulted in the Company holding 4.15% of the issued share capital of Lean Forward.

-- On 10 October 2014, the Company completed a follow-on investment of GBP192,832 in digital advertising business Mirriad Limited, and now holds 10.8% of the issued share capital of Mirriad.

-- On 24 November 2014, the Company invested GBP750,000 in deltaDNA Limited, a video games analytics business which provides "free-to-play" games developers and publishers with the means to retain customers and improve monetisation. The Company holds 12.4% of the issued share capital of deltaDNA.

Realisations

In the quarter, the Investment Manager continued the process of realising the E Share fund's investments in three live events companies, Pepper Promotions Limited, Lads On Tour Limited and Cloudroom Music Limited. These realisations were completed in December 2014, after the end of the quarter, and resulted in total proceeds received by the Company of GBP2.52 million, in addition to GBP0.3 million received by the Company from these investments in April 2014.

The distributable net proceeds of these three realisations were paid to E shareholders by way of the 16p dividend paid on 30 December 2014, as mentioned above.

Following these realisations, the remaining portfolio of each of the C Share, D Share and E Share funds consists of Coolabi Group Limited and Intent HQ Holdings Limited.

In October 2014, a number of the live events companies in which the F Share and G Share funds have invested partially redeemed the loan notes held by the Company, resulting in the receipt by the Company of GBP2.78 million for the F Share fund and GBP0.33 million for the G Share fund.

Treasury holdings

As at 30 November 2014, the Company held GBP7,478,074 in cash and near-cash, in accordance with the Company's investment policy.

Net asset values per share

as at 30 November 2014

 
                                                    Net asset 
                                                    value total 
                                      Net asset     return per 
  Share                  Shares in     value per     share (p) 
  class    Net assets      issue       share (p)         * 
--------  -----------  ------------  -----------  ------------- 
           (GBP'000) 
--------  -----------  ------------  -----------  ------------- 
 C                687     9,330,098         7.36          75.36 
--------  -----------  ------------  -----------  ------------- 
 D              5,385    19,172,500        28.09          87.09 
--------  -----------  ------------  -----------  ------------- 
 E **           5,082     9,801,952        51.85          79.85 
--------  -----------  ------------  -----------  ------------- 
 F             16,647    29,379,532        56.66          84.66 
--------  -----------  ------------  -----------  ------------- 
 G             14,159    24,056,803        58.86          79.86 
--------  -----------  ------------  -----------  ------------- 
 H              8,135     9,474,517        85.86          92.86 
--------  -----------  ------------  -----------  ------------- 
 I             11,754    15,766,414        74.55          88.55 
--------  -----------  ------------  -----------  ------------- 
 Total         61,848   116,981,816 
--------  -----------  ------------  -----------  ------------- 
 
 
 *    The net asset value total return per share 
       is the aggregate of (a) total dividends per 
       share paid prior to 30 November 2014 and (b) 
       the net asset value per share as at 30 November 
       2014. It does not take into account the benefit 
       of any income tax relief obtained by the shareholder. 
 **   As a result of the 16p dividend paid on 30 
       December 2014, the adjusted net asset value 
       per E Share since that date is 35.85p; the 
       net asset value total return per E Share remains 
       as shown above. 
 

Valuation of portfolio

Under the Company's valuation policy, venture capital investments in the Company's portfolio are normally valued at cost for the first 12 months from the date of investment. Thereafter, an appropriate basis of valuation will be used, in line with the International Private Equity and Venture Capital Valuation Guidelines. Unquoted investments in the portfolio are normally revalued bi-annually, as at the Company's half-year end (31 August) and the Company's year end (28 February), but the valuations are reviewed as 31 May and 30 November in each year, to ensure that the most recent valuations remain reflective of the fair value of each investment as at that date.

In respect of those investments held by the Company as at 31 August 2014, the directors of the Company are of the opinion that the previously published valuations as at 31 August 2014 remained appropriate as at 30 November 2014.

Those investments made after 31 August 2014 have been valued at cost as at 30 November 2014, as explained above.

The process of valuing the Company's portfolio of investments as at 28 February 2015 will commence shortly.

Fundraising

On 4 November 2014, the Company published a prospectus for a further offer for subscription for H Shares, its 'evergreen' share class. The offer closes on 2 April 2015 in respect of the 2014/15 tax year, and on 8 June 2015 in respect of the 2015/16 tax year (unless extended by the directors of the Company).

The Company is not aware of any significant event or transaction which has occurred between 1 September 2014 and 16 January 2015 which has had a material effect on the financial position of the Company and which has not been detailed above.

16 January 2015

For further information, please contact:

   --       City Partnership, Company Secretary:  0131 243 7210 
   --       Edge Investments, Investment Manager:  020 7317 1300 

This information is provided by RNS

The company news service from the London Stock Exchange

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