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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| SuperSeed Capital Limited | AQSE:WWW | Aquis Stock Exchange | Ordinary Share | GG00BL594H32 | Ordinary shares |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 85.00 | 80.00 | 90.00 | 85.00 | 85.00 | 85.00 | 0.00 | 07:01:06 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Oct 2023 to Apr 2024
TIDMWWW
RNS Number : 1884U
SuperSeed Capital Limited
22 November 2023
SUPERSEED CAPITAL LIMITED
(the "Company")
Q3 2023 AND NINE MONTHSED 30 SEPTEMBER 2023 RESULTS
Two successful exits in Q3 2023 delivered distributions of GBP486,301 - 23% of the fair value of investments.
These two exits delivered a combined IRR exceeding 78%.
SuperSeed Capital Limited, a company established as a venture capital fund of funds for early-stage AI/SaaS companies, announces results for Q3 and the nine months ending 30 September 2023. The Company invests in technology-led innovation, primarily through funds managed by SuperSeed Ventures LLP (the "Investment Manager"). The Company's principal investment to date is in SuperSeed II LP (the "Fund").
Financial Highlights for Q3 2023:
-- NAV per share is flat in Q3. YTD it has grown by 15% YTD to reach GBP1.12p. -- IRR on portfolio investments since IPO is at 30%. -- The Company received net cash of GBP 435,238 from investments in Q3.
Portfolio and Investment Highlights:
-- The Fund successfully sold its positions in Techsembly and Garvis, with both transactions closing in Q3. This led to distributions to the Company of GBP486,301 and combined IRR on the two investments exceeding 78%. The Company will utilise the majority of these proceeds to make a prepayment to the Fund in respect of future capital commitments, in order to benefit from a better rate of return on cash in the Fund than can be obtained by the Company.
-- Portfolio SAAS revenue growth continued in Q3 2023, although at a slower pace than earlier in the year with revenue across the portfolio of the Fund up by 9% over the previous quarter. This was below expectations, and we expect quarter-on-quarter portfolio revenue growth to increase back above 20% for Q4.
-- One new AI/SaaS companies added to the portfolio - Verisian, a next-generation data analysis platform for clinical drug data. One further investment was also agreed in Q3 and is expected to close in Q4.
Outlook for Q4 2023:
-- Continued strong investment activity, with the Fund expecting to make between two and four further investments in the AI/SaaS space in Q4 2023.
Mads Jensen, Managing Partner of the Investment Manager, commented:
"The Fund's underlying portfolio has continued to perform strongly and is well-positioned for further growth in the remainder of 2023. Due to the high quality of our portfolio we continue to have strong M&A interest, recently evidenced by the exit of Techsembly and Garvis less than a year from our investment."
For more information, please contact:
SuperSeed Capital Limited +44(0) 203 405 3060 Mads Jensen, Investment Manager VSA Capital - AQSE Corporate Adviser and Broker +44(0) 203 005 5000 Corporate Finance: Simon Barton / Alex Cabral ----------------------------------------------- --------------------
About SuperSeed Capital Limited
SuperSeed exists to back Europe's best B2B SaaS founders at the earliest stages, and to help them build great companies. In the short term, our portfolio companies enable their customers to drive revenue growth and efficiency savings using next-generation software and AI. In the long-term, they have an opportunity to create category defining global technology companies. SuperSeed focuses on the fundamentals by helping founders build good companies with strong unit economics and sensible distribution models.
Forward-looking statements
This announcement contains statements that are or may be forward-looking statements. All statements other than statements of historical facts included in this announcement may be forward-looking statements, including statements that relate to the Company's future prospects, developments and strategies. The Company does not accept any responsibility for the accuracy or completeness of any information reported by the press or other media, nor the fairness or appropriateness of any forecasts, views or opinions express by the press or other media regarding the Group. The Company makes no representation as to the appropriateness, accuracy, completeness or reliability of any such information or publication.
Forward-looking statements are identified by their use of terms and phrases such as "believe", "targets", "expects", "aim", "anticipate", "projects", "would", "could", "envisage", "estimate", "intend", "may", "plan", "will" or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements in this announcement are based on current expectations and are subject to known and unknown risks and uncertainties that could cause actual results, performance and achievements to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements. Factors that may cause actual results to differ materially from those expressed or implied by such forward looking statements include, but are not limited to, those described in the Risk Management Framework section of the Company's most recent Annual Report. These forward-looking statements are based on numerous assumptions regarding the present and future business strategies of the Group and the environment in which it is and will operate in the future. All subsequent oral or written forward-looking statements attributed to the Company or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. Each forward-looking statement speaks only as at the date of this announcement. Except as required by law, regulatory requirement, the Listing Rules and the Disclosure Guidance and Transparency Rules, neither the Company nor any other party intends to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
Investment Manager's Review
Q3 Investor Update:
Following a solid start to 2023, Q3 saw stock markets take a pause. S&P500 topped on July 31st, and the bellwether index has had a bumpy ride over the third quarter. After hitting a peak, it fell about 10% until it started rallying again at the end of October, bringing the index to within a few percentage points of the 2023 high on November 17th.
The US Fed Funds rate has been flat since the middle of July, as central bankers wait for the economy to digest rate rises. While everyone has been awaiting the upcoming US recession over the summer, signs are now that this recession might be averted. A consensus is starting to form that the Fed might just manage to hit the narrow landing strip between recession and renewed inflation. The S&P500 has responded with a 10% bump since the end of October.
The context is that the US economy has responded defiantly to calls for recession, clocking up an impressive 4.9% annualised growth in Q3. At the same time, US inflation is now down to 3.2%, down from a high of 9.1% in June of 2022. US real estate debt still looks a bit scary (especially on the commercial side), but there is a distinct possibility that the economy could avert recession and enjoy a soft landing. So far, so good.
At the same time, there is still plenty of geopolitical tension. Biden generally had a positive summit with Xi Jinping (perhaps marred by that last-minute "dictator" gaffe). But the US is still working to decouple from China, and we've seen massive US investments in manufacturing capacity for semiconductors, electric vehicles and batteries. On top of that, the war in Ukraine remains unresolved. And as we entered Q4, Hamas' dreadful October 7th attacks on Israel have re-ignited a new vector for geopolitical instability.
There is still plenty of uncertainty to go around.
Advances in AI:
Geopolitics aside, the AI revolution keeps accelerating. The speed of improvement has been phenomenal, as has the impact we've already seen across numerous sectors. At this point, there is no doubt that we have a transformative new foundational technology on our hands. The only questions now are how best to apply this for good, while managing the potential bad. HM Government has tried to be on the front foot with the recent AI Summit. We still have some doubts as to whether the UK (or the US) government will be able to effectively regulate AI without taking a sledgehammer to innovation. Like everyone else, we are watching the rapidly developing situation closely.
SuperSeed progress in Q3
New Investments:
Verisian - SaaS / Data and Analytics for Drug Testing and approval
Developing and getting new drugs to market is a complicated process. The clinical trial phase itself can take years. And once results have been submitted for approval, it can take a further 6-10 months before the FDA gives the green light.
Due to the complexity of medical test data, pharma companies spend a lot of resources creating the statistical analysis that underpins the submission to the FDA. The analysis process is so complicated that it can delay the FDA submission by six months - even after all the clinical trials have been completed. And it doesn't help that the majority of this work is done with SAS - a statistics software package originating in the 1970s.
The business context is that the patent clock is ticking on new drugs while the statisticians perform their analysis and create their reports. Losing six months of a patent for a blockbuster drug can mean a loss of billions of dollars in revenue.
Verisian founders Tomas Sabat and Henning Kuich know this problem first-hand. Henning was previously a computational scientist at pharma giant Bayer, where he saw directly how inefficient the drug data analysis process is. And Thomas is a world leader in next-generation databases who was previously in the founding team at database company TypeDB.
Tomas and Henning have launched Verisian to create the next-generation data analysis platform for clinical drug data. We are excited for the impact they can have in helping pharma companies get life-saving drugs to market faster.
Exits:
In Q2, SuperSeed had an opportunity to conclude the sale of two of our positions by exiting Techsembly and Garvis.
Both companies had delivered solid commercial results over the past year, and this led to M&A interest from US corporate buyers. Following in-depth analysis and discussions at the board level, a decision was made to sell in both instances, allowing SuperSeed II to book a significant profit despite a short holding period.
We typically look to hold for 5-7 years when we invest. While these exits were slightly different to the default holding period, they are testaments to the quality of the companies in the portfolio. We wish both sets of founders the best possible success in the years ahead.
Portfolio revenue:
Portfolio revenue growth slowed in Q3. Annually recurring revenue was up 9% on the previous quarter (41% on an annualised basis), somewhat lower than the 20-odd per cent we had expected.
Some of this was down to macroeconomic factors and general market slowdown. However, the issues were also partly executional in nature, with deals slipping into Q4. As such, we expect a bounce-back in Q4, with revenue growth back in the 20-odd percentage range.
Outlook for the rest of 2023:
With a Q3 skewed towards exits (two companies sold and one new investment made), we have a brimming investment pipeline for Q4. We expect to make 2-4 new investments before the end of the year.
On a more general note, we keep being amazed by the incredible work done by our portfolio teams and the new founders we meet. AI is bringing so much opportunity to our industry. It is a great time to be investing in technology.
Change of Auditor
The Company further announces that following a formal tender process led by the Investment Manager, the Board has approved the appointment of PKF Littlejohn LLP ("PKF") as the Company's auditor for the financial year ending 31 December 2023 and thereafter.
Grant Thornton Limited ("Grant Thornton") has ceased to be the Company's auditor for the reason that the Board had decided, in conjunction with the Investment Manager to engage with PKF, who can complete audit processes for both the Company and the Fund, to avoid unnecessary duplication of audit works.
Grant Thornton was terminated as auditor with effect from 10 October 2023 and has confirmed to the Company that there are no matters connected with its ceasing to hold office that need to be brought to the attention of the members or creditors of the Company.
The Board would like to thank Grant Thornton for its professional and diligent service to the Company as auditor since the Company's inception.
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SuperSeed Capital Limited
Condensed Statement of Comprehensive Income
for the period 1 January 2023 to 30 September 2023
1 July 2023 1 April 1 January 1 January
2023 2023 2022
to to to to
30 September 30 June 30 September 30 September
2023 2023 2023 2022
GBP GBP GBP GBP
Income
Investment income - 696 1,024 204
Realised gain on investments
held at fair value through
profit or loss 188,903 - 221,955 -
Unrealised gain/(loss)
on investments held at
fair value through profit
or loss (161,071) 201,489 220,973 180,401
Other income 1,692 1 1,694 2,206
Total income 29,524 202,186 445,646 182,811
------------- -------- ------------- -------------
Expenses
Establishment costs - - - 153,028
Administration fees 7,613 7,613 22,837 19,932
Audit fees 5,798 5,734 17,203 15,707
Directors' fees 4,500 4,500 13,500 13,500
Legal & professional fees 11,724 16,142 40,049 28,333
Loan interest - - 134 -
Regulatory fees 3,322 3,836 12,509 10,599
Sundry expenses 279 295 1,277 1,151
Total expenses 33,236 38,120 107,509 242,250
------------- -------- ------------- -------------
Total gain/(loss) and
comprehensive income for
the period (3,712) 164,066 338,137 (59,439)
============= ======== ============= =============
Basic earnings per share (0.0016) 0.0692 0.1440 (0.0330)
Diluted earnings per
share (0.0015) 0.0628 0.1381 (0.0330)
Operating profit/(loss)
excluding establishment
costs for the period (3,712) 164,066 338,137 93,589
============= ======== ============= =============
Basic operating profit
excl. establishment costs
per share (0.0016) 0.0692 0.1440 0.0520
Diluted operating profit
excl. establishment costs
per share (0.0015) 0.0628 0.1381 0.0520
All the above items are derived from
continuing operations.
SuperSeed Capital Limited
Condensed Statement of Financial Position
as at 30 September 2023
30 September 30 June 2023 31 December
2023 2022
GBP GBP GBP
Non-current assets
Investments 2,144,932 2,542,337 1,799,616
Total non-current assets 2,144,932 2,542,337 1,799,616
------------- ------------- ------------
Current assets
Trade and other receivables 92,363 104,685 11,025
Cash and cash equivalents 432,261 20,546 235,089
Total current assets 524,624 125,231 246,114
------------- ------------- ------------
Total assets 2,669,556 2,667,568 2,045,730
============= ============= ============
Current liabilities
Trade and other payables 17,691 11,991 21,745
------------- ------------- ------------
Total current liabilities 17,691 11,991 21,745
------------- ------------- ------------
Total liabilities 17,691 11,991 21,745
============= ============= ============
Net assets 2,651,865 2,655,577 2,023,985
============= ============= ============
Equity
Share capital 2,369,743 2,369,743 2,080,000
Retained earnings 282,122 285,834 (56,015)
Total equity 2,651,865 2,655,577 2,023,985
------------- ------------- ------------
Net asset value per
ordinary share 1.1191 1.1206 0.9731
SuperSeed Capital Limited
Condensed Statement of Changes in Equity
for the period 1 January 2023 to 30 September 2023
Share Capital Retained Total
Earnings
GBP GBP GBP
Ordinary Shares issued on incorporation 1 - 1
Issue of Ordinary Shares 1,999,999 - 1,999,999
Total comprehensive loss for
the period - (102,481) (102,481)
Balance as at 30 September 2022 2,000,000 (102,481) 1,897,519
-------------- ---------- ----------
Share Capital Retained Total
Earnings
GBP GBP GBP
Balance as at 1 January 2023 2,080,000 (56,015) 2,023,985
Issue of Ordinary Shares 289,743 - 289,743
Total comprehensive profit for
the period - 338,137 338,137
Balance as at 30 September 2023 2,369,743 282,122 2,651,865
-------------- ---------- ----------
SuperSeed Capital Limited
Condensed Statement of Cash Flows
for the period 1 January 2023 to 30 September 2023
1 July 2023 1 January 1 January
2023 2022
to to to
30 September 30 September 30 September
2023 2023 2022
GBP GBP GBP
Cash flows used in operating
activities
Net cash flow used in operating
activities (23,523) (110,274) (272,130)
Cash flows used in investing
activities
Net cash flow used in investing
activities 435,238 307,580 (1,399,042)
Cash flows from financing
activities
Net cash flow from financing
activities - (134) 2,000,000
Net movement in cash and
cash equivalents during the
period 411,715 197,172 328,828
Cash and cash equivalents
at the beginning of the period 20,546 235,089 -
Cash and cash equivalents
at the end of the period 432,261 432,261 328,828
============= ============= =============
SuperSeed Capital Limited
Investment Analysis
for the period 1 January 2023 to 30 September 2023
30 September 31 December
2023 2022
GBP GBP
Cost 1,663,379 1,539,035
Cumulative movement in value 481,554 260,581
Fair value 2,144,932 1,799,616
============= ============
Investment fair value can be further
analysed as follows:
1 July 2023 1 January 6 October
2023 2021
to to to
30 September 30 September 31 December
2023 2023 2022
GBP GBP GBP
Cost
Cost at beginning of the period 1,899,714 1,539,035 -
Cost of investment - settled 61,063 727,643 1,539,035
Cost of investment - sold (297,398) (603,298) -
Total cost of investment 1,663,380 1,663,379 1,539,035
============= ============= ============
Fair value movement
Fair value adjustment at beginning
of the period 642,624 260,581 -
Revaluation of underlying
investments (161,071) 220,973 260,581
481,553 481,554 260,581
============= ============= ============
Fair value of investments 2,144,932 2,144,932 1,799,616
============= ============= ============
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END
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November 22, 2023 02:00 ET (07:00 GMT)
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