Seneca Growth Capital Vct Share Discussion Threads

[jonwig] 06/10/2012 14:30

sbp - yesss... except that SCLP is pure speed, whilst HYG are carrying a load of coal on their backs.

The more SCLP increases, the less the load, but a complete loss for SCLP (unthinkable? - no) would still see HYG with the bag of coal.

And coal, of course, might still make some money.

[stupidboypike] 06/10/2012 09:29

comparing HYG and SCLP you could believe that HYG is underpriced! I would be buying if I had funds.



Best regards SBP

[rivaldo] 05/10/2012 14:41

SCLP at 49p now, so HYG's NAV up to 128p.

[stupidboypike] 02/10/2012 11:58

rivaldo, jonwig, many thanks. After holding these for around 10 years who knows they could even come good!!! Best regards SBP

[jonwig] 02/10/2012 11:42

LoL ... I thought I'd seen my quote somewhere before!

The curse of BBs - never say things only once.

[rivaldo] 02/10/2012 10:59

Stupidboypike, it's all outlined in simple terms in post 46 and 47 so is easy to remember :o))

SCLP is certainly moving nicely, and HYG remains at a healthy discount to around 118p NAV. Let's hope it continues - I suspect SCLP is going to be a volatile and exciting ride :o))

[jonwig] 02/10/2012 10:05

sbp - 2011 AR p24 has:

The Directors are also entitled to participate in a
performance bonus calculated as 20% of sums
returned to shareholders by way of dividends and
capital distributions of whatever nature, which in
aggregate exceeds the sum of 80p per share (including
dividends paid to date, i.e. 21.25p, but excluding any
sums returned to shareholders from HMRC in the year
of subscription). At 31 December 2011, no performance
fee was payable (2010: nil). The Board is also entitled to
be repaid all reasonable travelling, subsistence and
other expenses incurred by them respectively whilst
conducting their duties as Directors.

To date, they've paid out 21.25p in dividends and nothing in the form of capital distribution.
Unless I've misunderstood, the performance fee kicks in only when cash is returned to shareholders, and has to reach 80p aggregate ahead of that.

[stupidboypike] 02/10/2012 09:39

rivaldo, don't forget the management have a high incentive (20%?) which effectively cuts into the NAV at these levels. Can't remember the details, anyone else?

Best regards SBP

[rivaldo] 02/10/2012 09:35

SCLP at 44p now, so HYG's NAV would be up to 118p.

[macmoss] 01/10/2012 18:43

Surprised to see no rise in share price in view of Scancell holding, and the almost 21% rise at the close. I have shares in Scancell, and added to holding yesterday. Naturally I wish I had bought more than I did!

[rivaldo] 01/10/2012 10:10

SCLP now 36p, so HYG's NAV probably around 102p.

[rivaldo] 10/9/2012 15:08

SCLP up to 34p. Given that HYG's results noted that at 32p HYG's NAV would be 94p, the NAV must now be around 98p.

[rivaldo] 03/9/2012 14:02

Wow - I was certainly right about Immunobiology being overvalued! I can't see the quoted holding EKG going very far either at the current valuation - I'd rather they sold it and reinvested in unquoteds at more reasonable valuations.

I came across this recent summary of HYG by Michael Walters - quite useful:

[jonwig] 30/8/2012 07:25

H1 results this morning.

Apart from SCLP they seem to be optimistic about OR Productivity and Hallmarq Veterinary.

They also seem quite keen to get back to paying 5p dividends at some point. But they can't afford them - I hope they don't sacrifice promising investments just to pay out some cash.

I may have missed something subtle, but there don't seem to be any corporate actions in prospect.

[rivaldo] 24/8/2012 13:48

Usefiul post here which confirms that HYG will release their resuults next week and that they still hold 14.8m Scancell shares (i.e they haven't top-sliced, I'm glad to say):

[rivaldo] 20/8/2012 08:59

One would expect a large discount to HYG's now around 140p NAV considering SCLP's likely volatility.

However, given the relative illiquidity of HYG it's possible that any discount will narrow to a much smaller level if there's reasonable demand for HYG's shares.

Anyway, it's going to be an interesting ride :o))

[jonwig] 20/8/2012 08:34

Timbo - yes, I read your highlighting of that, but didn't comment as I've no idea how 'normal' such things are in the VCT universe.

In any event, the majority of holders of VCT shares might be only too pleased if their BoD were in a position to claim a big bonus!

[timbo003] 20/8/2012 08:25

Jonwig, I guess they do, I think 50% is now about right given that they do not have a buy back policy and the BOD are now getting 20% of any increase in NAV due their generous management incentives

[jonwig] 20/8/2012 08:21

Absent much trading in HYG, I guess market-makers have a 50% discount rule of thumb on this.

[rivaldo] 20/8/2012 08:19

SCLP has rocketed above 40p - HYG's NAV is now around 135p methinks.

[timbo003] 17/8/2012 16:18

Rivaldo, Thanks for hat, I had forgotten about DXS, perhaps they will not now need to raise more funds if that money is now banked.

Given the recent events with Scancell, I have just been revisiting the incentive scheme for the directors, which looks exceedingly generous:

www.sharemark.com/files/reports/report_435.pdf

The Directors are also entitled to participate in a performance bonus calculated as 20% of sums returned to shareholders by way of dividends and capital distributions of whatever nature, which in aggregate exceeds the sum of 80p per share (including dividends paid to date, i.e. 21.25p, but excluding any sums returned to shareholders from HMRC in the year of subscription). At 31 December 2011, no performance fee was payable (2010: nil).

So, if Scancell were sold for say £1/share (i.e. around £200M), Hygea would receive around £15M. If they decided to then distribute £12M of that proceeds and retain £3M in the VCT for further investments, then the shareholders would get 100% of the first 59p/share distributed (i.e. £4.8M), they would then only get 80% of the remaining £7.2M, ie £5.8M (72p/share) and the BOD would pocket £1.4M between them (equivalent to about 17p/share). Thereafter (presumably for evermore), the BOD get 20% of all future dividends. This does seem like an exceptionally good deal for the directors.

What seems to set it apart from most other VCT incentive schemes (for VCT managers), is that it does not reset each year. which means shareholders pay a very heavy price once 80p has been distributed

[rivaldo] 17/8/2012 14:24

Apologies for all the posts, but this is quite exciting for a change :o))

SCLP now up above 32p....HYG's NAV now closing in on 120p or so methinks.

[rivaldo] 17/8/2012 11:58

SCLP is above 28p now.

I also note that Northern Venture Trust in their quarter to 30th June received another tranche of consideration from the DXS earn-out:



HYG mentioned in their 10th May IMS that they may receive another £300,000 from the DXS earn-out. It may well be that this has now been received given the Northern Venture RNS - this alone would be another 3.7p of NAV.