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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Braveheart Investment Group Plc | LSE:BRH | London | Ordinary Share | GB00B13XV322 | ORD 2P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 6.50 | 6.00 | 7.00 | 6.50 | 6.50 | 6.50 | 642 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Management Services | 51k | 1.59M | 0.0249 | 2.61 | 4.14M |
From Apr 2022 to Apr 2024
TIDMBRH
RNS Number : 0671P
Braveheart Investment Group plc
16 June 2022
Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain.
16 June 2022
Braveheart Investment Group plc
("Braveheart", the "Company" or the "Group")
Final Results for the year ended 31 March 2022 & Notice of AGM
Braveheart Investment Group plc (AIM: BRH) announces its audited annual results for the financial year ended 31 March 2022, highlights of which are set out below:
Hot Features
Premium
-- Earnings per share of 3.10 pence per share (2021: 36.30 pence per share)
-- Funds raised of GBP2.5 million before expenses during the year
-- Additional investment into Phase Focus Limited
-- Continued progress at Paraytec Limited
For further information:
Braveheart Investment Group plc Tel: 01738
587555
Trevor Brown, Chief Executive Officer
Allenby Capital Limited (Nominated Tel: 020
Adviser and Joint Broker) 3328 5656
David Worlidge / James Reeve / George
Payne
Peterhouse Capital Limited (Joint Tel: 020
Broker) 7469 0936
Heena Karani / Lucy Williams
Chief Executive Officer's Report
I am pleased to report to shareholders for the year ended 31 March 2022.
Overview
Group strategy continues to be application of the Board's expertise and financial resources to those existing and newly acquired businesses which the Board consider have the greatest potential for outperformance. Details of these investments together with operational updates about each of these companies follow below.
Portfolio and Strategic Investments
As in previous years we have continued to divide our investments into two categories, namely our Strategic Investments and Portfolio Investments. Each of the Strategic Investments, of which there were five at the end of the year under review, is summarised below in this annual report. The Portfolio Investments are direct investments into third party companies that were made by Braveheart from 2002 until the summer of 2015 (the 'Portfolio Investments'). There are investments into a total of 13 different companies within the Portfolio Investments as at 31 March 2022. Sentinel Medical Limited is held in the accounts at GBP33, the original cost of Braveheart's shareholding holding. This investment has been moved out of Strategic Investments and into Portfolio Investments, until the business reaches a point where it is determined to have significant value. Therefore, at the end of the period under review there were investments into a total of 18 companies. We will continue to manage the Portfolio Investments with a view to seeking exits wherever possible.
Strategic Investments Overview
Paraytec Limited ( Braveheart owns 100% per cent of the company)
Paraytec Limited ("Paraytec") develops high performance specialist detectors for the analytical and life sciences instrumentation markets. In addition, the company has undertaken a programme with the University of Sheffield to develop a rapid test for identifying cancer and pathogens, including viruses.
As reported within our RNS on 15 November 2021, Paraytec has continued to refine the platform technology that underpins its proposed fast, sensitive COVID-19 test. The platform technology (product reference "CX300") comprises a low-cost instrument that utilises intense fluorescent light to detect small specific pathogens or cells in a biological sample.
Although the market for COVID-19 tests has dramatically changed in recent months, the Company believes there will continue to be a significant long-term global market for point-of-care COVID-19 testing. In addition, it is clear that Paraytec's technology platform has the potential for many other applications, and these are primarily the focus of interest in ongoing discussions with potential licensees and acquirers.
Paraytec has recently received ethical and HRA approval to proceed with a clinical study at the Sheffield Teaching Hospitals NHS Foundation Trust. This study will collect specimens from COVID-19 positive participants for up to ten days and monitor the ability of the Paraytec test to follow the course of infection by comparison with the culture of SARS-CoV-2 virus from the specimens. The test performance will also be compared with PCR (polymerase chain reaction) and lateral flow tests. If successful, the Directors believe these results will be a powerful demonstration of the accuracy and uniqueness of the Paraytec test.
Professor Carl Smythe's team has established a CAT 3 laboratory at the University of Sheffield to support the development of the CX300 technology platform. This will allow the research team to study a wide range of pathogens that cause infectious diseases, including COVID-19. Potential acquirers have focused their interest on a range of applications for the CX300, so the Paraytec team will now concentrate on developing multiple tests, including those previously commenced in bladder cancer and bacteraemia that causes sepsis.
Phasefocus Holdings Limited (Braveheart owns 42.67 per cent of the company)
Phasefocus Holdings Limited ("Phasefocus"), a spin-out from the University of Sheffield, has developed a series of patented computational imaging and analysis techniques that have a wide range of applications including live cell imaging, engineering metrology and electron microscopy. The company's novel method for high fidelity quantitative imaging and microscopy is known in the scientific literature as "ptychography".
Phasefocus's flagship product, Livecyte(TM) , allows researchers and biotechnology companies to characterise the dynamic behaviour of live cells in ways previously not possible. Livecyte integrates Phasefocus's patented label-free Quantitative Phase Imaging technology with state-of-the-art automatic cell tracking algorithms. This enables users to automatically characterize growth, morphology and motility of large populations of cells in a 96-well plate assay format.
Since moving to a distribution sales model in 2019, partnerships with a wide range of distributors have resulted in a marked increase in awareness of the company's products in the marketplace. The reach of distributors, such as Cytena (part of the BICO group, formerly CELLINK Inc.) and SinsiTech in China, has helped Phasefocus enter new territories and has led to a rapid growth in revenues.
In the company's financial year ended 31 December 2021, revenue increased by more than 125% over the prior year. The company's head count also increased by more than 10% in 2021. To enable the company to keep up with production demand, in March 2022 Phasefocus opened an expanded production facility in Nottingham Science Park, Nottingham, UK. The new facility has more than four times the floor space of the previous production facility, with room to expand further as demand grows in future years.
Kirkstall Limited (Braveheart owns 80% of the company)
Kirkstall Limited ("Kirkstall") operates in the market known as 'organ-on-a-chip', where it has developed Quasi Vivo(R), a system of chambers for cell and tissue culture in laboratories. Its patented technology is used by researchers in the growing 'organ-on-a-chip' market, where academia and drug development companies need to maintain living cells in a nutrient flow.
With most of Europe's university research laboratories operating fully again following relaxation of restrictions on non-COVID related research, Kirkstall has seen a steady upturn in sales enquiries and orders for its Quasi Vivo(R) products. The versatility and uniqueness of these products has been able to attract attention into wider application areas including inhalation toxicity, parasitic infections, nanotechnology, biosystem ecologies.
There has also been increased interest in its products from non-European countries including USA, China, India and Singapore in the field of non-animal micro-physiological in vitro models.
In the last year, the company identified three new peer reviewed publications from research teams utilising Kirkstall's Quasi Vivo (R) system. Kirkstall is a strong supporter of such research, as publications like these are an excellent marketing tool.
The first study involved the evaluation of drug absorption via gastrointestinal tract tissue and was conducted at Sheffield Hallam University in collaboration with the Croda Group. The research is the result of Kirkstall's partnership with Animal Free Research UK that started two years ago to support human-relevant science and the principle of the replacement of animals in research. https://doi.org/10.3390/pharmaceutics14020364
The second study was conducted by the research group of Berthold Huppertz at the Medical University of Graz, Austria. The study involved ex vivo human placental tissue and concluded that Kirkstall's Quasi Vivo (R) system is the most native-like in vitro system that can be used to simulate blood flow from the mother to placenta and back, and thus can enable novel and more physiological study designs. https://doi.org/10.3390/ijms22147464
The third study was conducted by the group of Louise Carson, School of Mechanical and Aerospace Engineering, Queens University Belfast. The group utilised the Quasi Vivo (R) system to develop an in vitro model to evaluate long term biocompatibility of bone substitute biopolymer constructs. 10.1016/j.actbio.2021.07.049
Since September 2021, Kirkstall's Quasi Vivo(R) system has been on public display at the Francis Crick Institute, London at their 'Outwitting Cancer' exhibition. www.crick.ac.uk/whats-on/exhibitions/outwitting-cancer/outwitting-cancer-exhibition
A new Quasi Vivo(R)(TM) platform with advanced fluid flow is in late stage development at Kirkstall. The system is a complete redesign, incorporating new features which the directors of Kirkstall believe are highly desired by both pharmaceutical and academic users. Prototypes are currently undergoing user testing by Kirkstall's partners in the CyGenTig European consortium, in which new techniques are under development for the production of engineered tissues by optogenetics, aiming to build replacement human organs by controlling individual cell growth using coloured laser light.
Autins Group plc (Braveheart owns 8.7% of the company)
During the period, Braveheart invested in Autins Group plc ("Autins") (AIM: AUTG) through market purchases of shares. Autins specialises in solving acoustic and thermal problems in the automotive industry and other specialist applications. In particular, the company's leading product Neptune, a non-woven microfibre web, is produced by a mixture of engineered polyester fibre and melt-blown polypropylene. This material outperforms traditional automotive insulation and is gaining traction in office and flooring acoustics applications.
The Board considers that this investment fits well in its portfolio of advanced technology businesses and seeks to identify opportunities with Autins that will benefit both companies.
Velocity Composites plc (Braveheart owns 4.13% of the company)
In September 2021, Braveheart acquired 4.13% of Velocity Composites plc ("Velocity") (AIM: VEL) through the purchase of shares. Velocity is a leading supplier of advanced composite material kits to the Aerospace sector. Velocity Composites' clients include multi-national manufacturers of composite parts and assemblies, who in turn deliver to the world's leading civil and military aircraft manufacturers. The Airbus A320, A330, A350, A380, Eurofighter Typhoon, F35 Joint Strike Fighter, Boeing 737, Boeing 787 and V22 Osprey are all constructed using parts manufactured from Velocity's kits.
The Board considers that this investment fits well in its portfolio of advanced technology businesses.
Outlook
We have entered our new financial year acutely aware of the geo-political and macro-economic challenges the world is facing. However, we are hopeful that this turbulence will also present interesting new investment opportunities and we will be positioned to respond as events unfold.
Financial Review
During the year we continued the comprehensive review of our cost base and continued to reduce the central costs.
Income Statement
Fee-based revenue was generated by Braveheart Investment Group Plc. The principal revenue from the Group's operations comprises investment management fees, with total revenue during the year being GBP43,000 (2021: GBP60,000). Revenue derived from strategic subsidiary undertakings has decreased by GBP64,000 from GBP205,000 in 2021 to GBP141,000 in 2022. Finance income was GBPNil (2021: GBPNil), this being interest on outstanding loan notes within the directly held portfolio.
As at 31 March 2022, the total number of directly held investments in the portfolio of Strategic Investments and the Portfolio Investments was 18 companies (2021: 19), of which two have been consolidated into Braveheart's accounts. The fair value of the directly held portfolio, excluding the two companies now consolidated into the Company's accounts, was GBP4,716,080 (2021: GBP613,847). During the year the group made investments of GBP1,467,000 into three portfolio companies, Autins Group Plc, Velocity Composites Plc and Phase Focus Holdings Limited. This excludes investments made into investments that are controlled by the Group. Two investments (being Kirkstall and Paraytec) that are considered as Strategic Investments by the Board are now deemed to be 'controlled' by the Company and as a result of this, those companies have been consolidated into Braveheart's accounts (but remain categorised by management as Strategic Investments). At the year end, the value of these two investments was GBP220,622 (2021: GBP220,622), although the value in the consolidation in terms of goodwill stands at GBP205,775 (2021: GBP205,775, two companies). Therefore, the fair value of the directly held portfolio (Strategic Investments and Portfolio Investments and including the two investments that have now been consolidated into the Company's accounts) was GBP4,921,855 (2021: GBP819,622).
Total income for the year ended 31 March 2022, including realised gains and unrealised revaluation gains and losses, was GBP2,937,000 (2021: GBP16,562,000).
The average number of employees remained at 7 during the period under review. The number of employees working within the Group, excluding employees of Kirkstall and Paraytec, was 4 during the year under review (2021: 3). Employee benefits expense was GBP636,000 (2021: GBP1,341,000). Other operating and finance costs decreased to GBP753,000 (2021: GBP954,000).
The total profit after tax decreased to GBP1,442,000 (2021: GBP13,907,000), equivalent to a basic profit per share of 3.10 pence (2021: 36.30 pence).
Financial Position
The Group's net assets of GBP6,607,000 (2021: GBP2,564,000), include goodwill of GBP206,000 (2021: GBP206,000).
The carrying value of goodwill was reviewed during the year. The income method was not deemed appropriate for the companies under review due to the difficulty of projecting the future income of these companies, so market value approach was considered more appropriate.
At the year end the Group had cash balances of GBP1,894,000 (2021: GBP2,143,000 (including discontinued operations)). There were no material borrowings.
A summary analysis of the Group's performance is as follows:
2022 2021
GBP'000 GBP'000
============================================= ========== ==============
Investment management revenue and sales 186 269
Finance income - -
============================================= ========== ==============
Income before portfolio movements 186 269
============================================= ========== ==============
Profit on disposal of investments 60 7,690
Profit on sale of subsidiary - 8,931
Change in fair value of investments, gain
on disposal of investments and movement in
contingent liability 2,691 (329)
============================================= ========== ==============
Total income of continuing activities 2,937 16,561
============================================= ========== ==============
Employee benefits expense (including share-
based payments) (636) (1,341)
Impairment of goodwill - (63)
Other operating and finance costs (755) (955)
============================================= ========== ==============
Total costs on continuing activities (1,391) (2,359)
Profit before tax - continuing 1,546 14,202
Loss on discontinued operations - (69)
Tax (104) (226)
============================================= ========== ==============
Total profit and total comprehensive profit
for the year 1,442 13,907
--------------------------------------------- ---------- --------------
Opening cash balance 2,143 685
Investment in portfolio companies (1,467) (250)
Proceeds from sale of equity investments 246 17,346
Amount paid to BBB (171) -
Dividends paid - (15,859)
Warrants and share options exercised 7 867
Funds raised - net of share issue costs 2,416 641
Other activities (1,280) (1,287)
Closing cash balance 1,894 2,143
============================================ =========== ==============
Net assets 6,607 2,564
============================================ =========== ==============
Key Performance Indicators (KPIs)
The KPIs we use to monitor business performance have been changed in order to better reflect the emphasis that the Board has placed upon the development of the Strategic Investments as the best way to increase shareholder value over the short and medium term. Given the nature of our business these KPI's remain as, primarily, financial measures. They are:
2022 2021
------
Cash ('GBP000) 1,894 2,143
Share price (pence) 17.75 70.50
Income ('GBP000) 186 269
Value of investments 4,716 614
---------------------- ------ ------
On behalf of the Board
Trevor E Brown
Chief Executive Officer
15 June 2022
Consolidated Statement of comprehensive INCOME for the year ended 31 March 2022
2022 2021
Notes GBP GBP
Revenue from contracts with customers 2 185,814 268,725
Change in fair value of investments 2,690,598 (329,083)
Profit on disposal of investments 4 60,414 7,690,287
Profit on sale of subsidiary 4 - 8,931,434
Total income 2,936,826 16,561,363
------------------------------------------- ------ ------------ ------------
Employee benefits expense (636,141) (1,340,954)
Impairment of goodwill 7 - (62,543)
Other operating costs (752,449) (953,791)
------------------------------------------- ------ ------------ ------------
Total operating costs (1,388,590) (2,357,288)
------------------------------------------- ------ ------------ ------------
Finance costs (2,349) (1,745)
Finance income 138 150
------------------------------------------- ------ ------------ ------------
Total costs (1,390,801) (2,358,883)
------------------------------------------- ------ ------------ ------------
Profit before tax 1,546,025 14,202,480
=========================================== ====== ============ ============
Tax (104,048) (226,367)
Profit from continuing operations 1,441,977 13,976,113
------------------------------------------- ------ ------------ ------------
Loss from discontinued operations, net of
tax - (69,350)
Total profit and total comprehensive loss
for the year 1,441,977 13,906,763
------------------------------------------- ------ ------------ ------------
Profit attributable to :
Equity holders of the parent 1,453,804 13,936,436
Non-controlling interest (11,827) (29,673)
------------------------------------------- ------ ------------ ------------
1,441,977 13,906,763
------------------------------------------- ------ ------------ ------------
Earnings per share Pence Pence
- basic 5 3.10 36.30
- diluted 5 2.82 35.25
consolidated statement of financial position as at 31 March 2022
2022 2021
Notes GBP GBP
ASSETS
Non-current assets
Property, plant and equipment 1,776 2,166
Intangible assets 26,103 28,152
Goodwill 205,775 205,775
Investments at fair value through
profit or loss 4,716,080 613,847
4,949,734 849,940
----------------------------------- ------ ---------- ----------
Current assets
Inventory 90,113 98,441
Trade and other receivables 123,412 105,772
Cash and cash equivalents 8 1,893,931 2,142,866
------------------------------------ ------ ---------- ----------
2,107,456 2,347,079
----------------------------------- ------ ---------- ----------
Total assets 7,057,190 3,197,019
==================================== ====== ========== ==========
LIABILITIES
Current liabilities
Trade and other payables (272,432) (591,079)
Deferred income (7,025) (41,843)
------------------------------------ ------ ---------- ----------
(279,457) (632,922)
----------------------------------- ------ ---------- ----------
Non-current liabilities
Deferred taxation (170,398) -
------------------------------------ ------ ---------- ----------
Total liabilities (449,855) (632,922)
==================================== ====== ========== ==========
Net assets 6,607,335 2,564,097
------------------------------------ ------ ---------- ----------
EQUITY
Called up share capital 1,044,807 766,148
Share premium reserve 4,371,343 2,226,671
Share based payment reserve 309,835 137,200
Retained earnings 899,202 (559,897)
------------------------------------ ------ ---------- ----------
Equity attributable to owners
of the Parent 6,625,187 2,570,122
Non-controlling interest (17,852) (6,025)
------------------------------------ ------ ---------- ----------
Total equity 6,607,335 2,564,097
------------------------------------ ------ ---------- ----------
Consolidated Statement of CAsh flows for the year ended 31 March 2022
2022 2021
GBP GBP
Operating activities
Profit for the year 1,441,977 13,906,763
Adjustments to reconcile profit before tax
to net cash flows from operating activities
Share based payment 177,930 400,148
(Increase) / Decrease in the fair value movements
of investments (2,690,598) 329,083
Profit on disposal of subsidiary - (8,931,434)
Profit on disposal of equity investments (60,414) (7,690,287)
Fees taken from investment proceeds - 78,419
Bonus in lieu of cash - 300,000
Non-controlling interest on disposal - (92,673)
Investment movement owed to BBB 41,265 (15,528)
Depreciation and amortisation 12,919 11,755
Impairment of goodwill - 62,543
Interest income (138) (150)
Taxation 170,398 (4,136)
Decrease in inventory 8,328 39,253
Increase in trade and other receivables (17,640) (8,400)
(Decrease) / Increase in trade and other payables (353,465) 330,225
----------------------------------------------------- ------------ -------------
Cash flow from operating activities (1,269,438) (1,284,419)
----------------------------------------------------- ------------ -------------
Investing activities
Proceeds from sale of investments 245,871 17,346,338
Amount paid to BBB (170,887) -
Purchase of investments (1,467,469) (250,000)
Purchase of intangibles (9,834) (5,549)
Purchase of tangibles (646) (1,124)
Interest received 138 150
----------------------------------------------------- ------------ -------------
Net cash flow from investing activities (1,402,827) 17,093,951
----------------------------------------------------- ------------ -------------
Financing activities
Dividends paid - (15,859,160)
Warrants and share options exercised 7,480 866,980
Funds raised, net of share issue costs 2,415,850 640,623
Net cash flow from financing activities 2,423,330 (14,351,557)
----------------------------------------------------- ------------ -------------
Net (decrease) / increase in cash and cash
equivalents (248,935) 1,457,975
Cash and cash equivalents at the beginning
of the year 2,142,866 684,891
----------------------------------------------------- ------------ -------------
Cash and cash equivalents at the end of the
year 1,893,931 2,142,866
----------------------------------------------------- ------------ -------------
Consolidated Statement of ChAnges in Equity for the year ended 31 March 2022
Share
Called Share based Retained
up Share Premium payment Earnings/ Non-controlling Total
Capital Reserve Reserve (Deficit) Total interest Equity
GBP GBP GBP GBP GBP GBP GBP
At 1 April 2020 561,555 91,657 - 1,043,955 1,697,167 79,572 1,776,739
---------------------- ---------- ----------- ---------- ------------- ------------- ---------------- -------------
Profit and total
comprehensive profit
for the year - - - 13,936,436 13,936,436 (29,673) 13,906,763
Allotment of shares 204,593 2,135,014 - - 2,339,607 - 2,339,607
Dividend paid - - - (15,859,160) (15,859,160) - (15,859,160)
Non-controlling
interest on disposal - - - 55,924 55,924 (55,924) -
Share based payments - - 400,148 - 400,148 - 400,148
Transfer to retained
earnings - - (262,948) 262,948 - - -
---------------------- ---------- ----------- ---------- ------------- ------------- ---------------- -------------
Transactions with
owners, recognised
directly in equity 204,593 2,135,014 137,200 (1,603,852) 872,955 (85,597) 787,358
====================== ========== =========== ========== ============= ============= ================ =============
At 1 April 2021 766,148 2,226,671 137,200 (559,897) 2,570,122 (6,025) 2,564,097
====================== ========== =========== ========== ============= ============= ================ =============
Profit and total
comprehensive profit
for the year - - - 1,453,804 1,453,804 (11,827) 1,441,977
Allotment of shares 278,659 2,228,822 - - 2,507,481 - 2,507,481
Cost of shares
issued - (84,150) - - (84,150) - (84,150)
Share based payments - - 177,930 - 177,930 - 177,930
Transfer to retained
earnings - - (5,295) 5,295 - - -
---------------------- ---------- ----------- ---------- ------------- ------------- ---------------- -------------
Transactions with
owners, recognised
directly in equity 278,659 2,144,672 172,635 1,459,099 4,055,065 (11,827) 4,043,238
---------------------- ---------- ----------- ---------- ------------- ------------- ---------------- -------------
At 31 March 2022 1,044,807 4,371,343 309,835 899,202 6,625,187 (17,852) 6,607,335
---------------------- ---------- ----------- ---------- ------------- ------------- ---------------- -------------
Notes to the financial statements for the year ended 31 March 2022
1 Corporate information
The Group and Company financial statements of Braveheart Investment Group plc (the Company) for the year ended 31 March 2022 were authorised for issue by the Board of Directors on 15 June 2022 and the statements of financial position were signed on the Board's behalf by Trevor Brown.
Braveheart Investment Group plc is a public company incorporated in the United Kingdom under the Companies Act 2006 limited by shares. The address of the registered office is detailed at the back of this report. The nature of the Group's operations and its principal activities are set out in the Strategic Report and Directors' Report. The Company is registered in Scotland. The Company's ordinary shares are traded on the AIM market of the London Stock Exchange.
While the financial information included in this announcement has been prepared in accordance with International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs. The Group has also published full financial statements that comply with IFRSs available on its website and to be circulated shortly.
The financial information set out in the announcement does not constitute the company's statutory accounts for the years ended 31 March 2022 or 2021. The financial information for the year ended 31 March 2021 is derived from the statutory accounts for that year, which were prepared under IFRSs, on which the auditors gave a qualified report, and which have been delivered to the Registrar of Companies.
The financial information for the year ended 31 March 2022 is derived from the statutory accounts for that year, which were prepared under IFRSs, on which the auditors have given an unqualified report that did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006, and which will be delivered to the Registrar of Companies.
2 Accounting policies
Basis of preparation
The Group and Company financial statements have been prepared in accordance with UK-adopted international accounting standards in accordance with the requirements of the Companies Act 2006 and in accordance with the requirements of the AIM rules. The principal accounting policies adopted by the Group and by the Company are set out in the following notes.
The consolidated financial statements have been prepared on a historical cost basis, except where otherwise indicated. The financial statements are presented in sterling and all values are rounded to the nearest pound (GBP) except where otherwise indicated.
3 Revenue from contracts with customers
Revenue is attributable to the principal activities of the Group. In 2022 and 2021, all revenue arose within the United Kingdom.
2022 2021
GBP GBP
Investment management 1,500 3,600
Consultancy 43,090 59,634
Sale of goods 33,537 54,333
Grant income 74,984 111,181
Royalties 32,703 39,977
------------------------ -------- --------
185,814 268,725
----------------------- -------- --------
Of the revenue stated above, GBP43,090 (2021: GBP59,634) related to The Lachesis Seed Fund Limited Partnership.
The group derives revenue from the transfer of goods and services over time and at a point in time in the following major product lines:
Investment Grant
management Consultancy Sale of goods income Royalties Total
2022
Timing of
revenue recognition
At a point
in time 1,500 - 33,537 74,984 - 110,021
Over time - 43,090 - - 32,703 75,793
============ ============ ================== ======== ========== ==========
1,500 43,090 33,537 74,984 32,703 185,814
============ ============ ================== ======== ========== ==========
2021
Timing of
revenue recognition
At a point
in time 3,600 - 54,333 111,181 - 169,114
Over time - 59,634 - - 39,977 99,611
============ ============ ================== ======== ========== ==========
3,600 59,634 54,333 111,181 39,977 268,725
============ ============ ================== ======== ========== ==========
4 Profit on sale of investment and subsidiary
During the previous year, the company disposed of its shareholding in Pharm 2 Farm Limited in exchange for 310,354,815 shares in Remote Monitored Systems Plc. The sale was completed on 5 November 2020, and the group made a profit of GBP8,931,434 on the initial investment of GBP225,000.
The group also sold 519,992,405 shares in Remote Monitored Systems Plc for GBP17,424,757. The shares were acquired during the previous year through a share for share exchange, cash investment and the sale of Pharm 2 Farm Limited. The consideration of these various transactions was GBP9,734,470, resulting in a profit on disposal of GBP7,690,287.
5 Earnings per share
Basic earnings per share has been calculated by dividing the profit attributable to equity holders of the parent by the weighted average number of ordinary shares in issue during the year.
The calculations of profit per share are based on the following profit and numbers of shares in issue:
2022 2021
GBP GBP
Profit for the year 1,441,977 13,906,763
----------------------------------------------- ----------- -----------
Weighted average number of ordinary shares in No. No.
issue:
For basic profit per ordinary share 46,870,999 38,307,451
Potentially dilutive ordinary shares 4,596,000 1,140,000
----------------------------------------------- ----------- -----------
For diluted earnings per ordinary share 51,466,999 39,447,451
----------------------------------------------- ----------- -----------
Dilutive earnings per share adjusts for share options granted where the exercise price is less than the average price of the ordinary shares during the period. At the current year end there were 4,596,000 (2021: 1,140,000) potentially dilutive ordinary shares.
The diluted loss per Ordinary Share is calculated by adjusting the weighted average number of Ordinary shares outstanding to consider the impact of options, warrants and other dilutive securities.
6 Investments at fair value through profit or loss
Level 1 Level 2 Level 3
Equity Equity Equity
investments investments Debt investments investments Debt investments
in quoted in unquoted in unquoted in unquoted in unquoted
companies companies companies companies companies Total
GBP GBP GBP GBP GBP GBP
At 1 April 2020 - - - 724,402 - 724,402
Additions at Cost 9,734,470 - - 203,000 - 9,937,470
Disposals (9,734,470) - - - - (9,734,470)
Amount owed to
creditors - - - 15,528 - 15,528
Change in Fair Value - - - (329,083) - (329,083)
--------------------- ------------- ------------- ----------------- ------------- ----------------- ------------
At 1 April 2021 - - - 613,847 - 613,847
Additions at Cost 1,420,534 - - 46,935 - 1,467,469
Disposals - - - (48,274) - (48,274)
Amount owed to
creditors - - - (7,560) - (7,560)
Change in Fair Value (286,680) - - 2,977,278 - 2,690,598
--------------------- ------------- ------------- ----------------- ------------- ----------------- ------------
At 31 March 2022 1,133,854 - - 3,582,226 - 4,716,080
--------------------- ------------- ------------- ----------------- ------------- ----------------- ------------
Included in the balance above are investments that would be owed to the British Business Bank through the Revenue Share Agreement. At the year end, an amount of GBP31,043 would be due to the British Business Bank on disposal. This liability is shown in the accounts within other creditors.
As at 31 March 2022, the group total value of investments in companies was GBP4,716,080 (2021: GBP613,847). The group total change in fair value during the year was a profit of GBP2,690,598 (2021: loss GBP329,083).
Investments, which is made up of equity investments, are designated on initial recognition as financial assets at fair value through profit or loss. This measurement basis is consistent with the fact that the Group's performance in respect of its portfolio investments is evaluated on a fair value basis in accordance with an established investment strategy. When investments are recognised initially, they are measured at fair value.
After initial recognition the fair value of listed investments is determined by reference to bid prices at the close of business on the reporting date. Unlisted equity investments are measured at fair value by the directors in compliance with the principles of the International Private Equity and Venture Capital Guidelines, updated and effective December 2015, as recommended by the European Venture Capital Association. The fair value of unlisted equity investments is determined using the most appropriate of the valuation methodologies set out in the guidelines. These include using recent arm's length market transactions; reference to the current market value of another instrument, which is substantially the same; earnings or profit multiples; indicative offers; discounted cash flow analysis and pricing models.
The Group classifies its investments using a fair value hierarchy. Classification within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant investment as follows:
-- Level 1 - valued using quoted prices in active markets for identical assets;
-- Level 2 - valued by reference to valuation techniques using observable inputs other than quoted prices included within Level 1; and
-- Level 3 - valued by reference to valuation techniques using inputs that are not based on observable market data.
The fair values of quoted investments are based on bid prices in an active market at the reporting date. All unquoted investments have been classified as Level 3 within the fair value hierarchy, their respective valuations having been calculated using a number of valuation techniques and assumptions, notwithstanding that the basis of the valuation methodology preferred by the Group is 'price of most recent investment'. To reflect the potential impact of alternative assumptions and a lack of liquidity in these holdings, a discount of 15% has been applied to all Level 3 valuations. When using the DCF valuation method, reasonably possible alternative assumptions could have a material effect on the fair valuation of investments.
The methodologies used in the year are broken down as follows:
% of portfolio
valued
on this
Methodology Description Inputs Adjustments basis
-------------- ----------------------- ----------------------- -------------------------------- ------------------
A liquidity discount
is applied, typically
Used for unquoted 15%. Where last
investments where funding round is
there has been greater than twelve
a funding round, months then further
generally within The price of the discounts ranging
the last twelve most recent between 0% and 100%
Fund Raising months investment are applied. 26%
-------------- ----------------------- ----------------------- -------------------------------- ------------------
Used for investments Earnings multiples
which we can are applied to
determine the earnings of
a set of listed the company to
companies with determine the A liquidity discount
similar enterprise is applied, typically
Earnings characteristics value 15% 0%
-------------- ----------------------- ----------------------- -------------------------------- ------------------
The fair value
of debt investment
is deemed to be
cost less any
Debt/Loan impairment Impairment provision
notes Loan investments provision if deemed necessary 0%
-------------- ----------------------- ----------------------- -------------------------------- ------------------
Used where an
investment
is in a sales
process, A discount between
a price has been 5% - 10% is applied
agreed but the Contracted proceeds to reflect any uncertain
Indicative transaction has or best estimate adjustments to expected
offers not yet settled of expected proceeds proceeds 74%
-------------- ----------------------- ----------------------- -------------------------------- ------------------
Long term cash
flows are discounted
at a rate considered
appropriate for
Used for companies the business, A liquidity discount
Discounted with long-term typically is applied, typically
cash flow cash flows 9% - 12.5% 15% 0%
-------------- ----------------------- ----------------------- -------------------------------- ------------------
Group Group
Change in fair value in the year: 2022 2021
GBP GBP
Fair value gains 2,982,077 11,895
Fair value losses (291,479) (340,978)
------------------------------------------------------------------------------ -------------- ----------------
2,690,598 (329,083)
------------------------------------------------------------------------------ -------------- ----------------
The gain in the year came from the uplift of the valuation in Phase Focus.
Details of investments where the nominal value of the holding in the undertaking is 20% or more of any class of share are as follows:
Caledonia Portfolio Realisations Limited ('CPR') holds a 20% aggregate shareholding in Verbalis Limited ('Verbalis'), a design and production of automated language translation systems company . Neither CPR nor the Company is represented on the Board or within management of Verbalis and in the opinion of the directors, this shareholding does not entitle the Company to exert a significant or dominant influence over Verbalis. The carrying value of Verbalis is GBPnil (2021: GBPnil).
The Company holds a 6.43% aggregate holding on Gyrometric Systems Limited, this company has developed a patent protected system of hardware and software to accurately monitor the vibrations in rotating shafts. During the year Braveheart announced that it and Remote Monitored Systems plc ("RMS") had entered into a share purchase agreement with the founders of Gyrometric Systems Limited to return of control of Gyrometric to the founders of the company, David Orton, Dr Paul Orton and Dr Janet Poliakoff. Under the terms of the reorganisation, Braveheart's 19.5% interest in Gyrometric was reduced to 6.43% and Braveheart wrote off a loan of GBP39,200. The carrying value of Gyrometric is GBP1 (2021: GBP1).
The Company holds a 42% aggregate holding on Phase Focus Holdings Limited, has developed a series of patented computational imaging techniques that have a wide range of applications including live cell imaging, engineering metrology and electron microscopy. The Company is represented on the Board and in the opinion of the directors, this shareholding nor the representative entitles the Company to exert a significant or dominant influence over Phase Focus. The carrying value of Phase Focus is GBP3,418,573 (2021: GBP389,913).
The Company holds a 38% aggregate holding on Sentinel Medical Limited, this company is developing a point of care diagnostic device for bladder cancer detection and monitoring . The Company is represented on the Board and in the opinion of the directors, this shareholding nor the representative entitles the Company to exert a significant or dominant influence over Sentinel. The carrying value of Sentinel is GBP33 (2021: GBP33).
The registered addresses for these entities are as follows:
Verbalis Limited Frostineb Cottage, Fala, Pathhead, Midlothian, EH37 5TB
Gyrometric Systems Limited Dockholme Lock Cottage, 380 Bennett Street, Long Eaton, Nottingham, NG10 4JF
Phase Focus Holdings Limited 125 Wood Street, London, United Kingdom, EC2V 7AW Sentinel Medical Limited York House, Outgang Lane, Osbaldwick, York, England, YO19 5UP
7 Goodwill
Paraytec Kirkstall Pharm 2 Total
Farm
GBP GBP GBP GBP
Cost - At 31 March
2020 571,137 944,409 131,359 1,646,905
Disposals - - (131,359) (131,359)
Cost - At 31 March
2021 571,137 944,409 - 1,515,546
Disposals - -
======================= ========== ========== ========== ============
Cost - At 31 March
2022 571,137 944,409 - 1,515,546
======================= ========== ========== ========== ============
Impairment - At 31
March 2020 (365,362) (881,866) - (1,247,228)
Impairment (62,543)- - (62,543)
Impairment - 31 March
2021 (365,362) (944,409) - (1,309,771)
Impairment - - - -
Impairment - 31 March
2022 (365,362) (944,409) - (1,309,771)
======================= ========== ========== ========== ============
Net Book Value - At
1 April 2022 205,775 - - 205,775
======================= ========== ========== ========== ============
Net Book Value - At
1 April 2021 205,775 - - 205,775
======================= ========== ========== ========== ============
The income approach was not deemed a reliable method for valuing the goodwill of Paraytec and Kirkstall. Therefore, the market value method was used in order to ascertain the value of goodwill at the year end.
8 Cash and cash equivalents
2022 2021
GBP GBP
Cash at bank and on hand 1,893,931 2,142,866
========================== ========== ==========
Cash balances are held with HSBC Bank plc and Bank of Scotland plc and earn interest at floating rates based on daily bank deposit rates.
9 Posting of audited results for the year ended 31 March 2022 and Notice of AGM
The Company is pleased to announce that it expects to post its audited report and accounts for the year ended 31 March 2022 to shareholders shortly. It is also posting notice of its annual general meeting ("Notice of AGM"), to be held on 13 July 2022 at 10.30 am. Copies of the final report and accounts and the Notice of AGM will also be available to view on the Company's website shortly, at http://www.braveheartgroup.co.uk/.
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END
FR SFSEDIEESESM
(END) Dow Jones Newswires
June 16, 2022 02:00 ET (06:00 GMT)
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