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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Endeavour Mining Plc | LSE:EDV | London | Ordinary Share | GB00BL6K5J42 | ORD USD0.01 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1,728.00 | 1,727.00 | 1,729.00 | 1,743.00 | 1,712.00 | 1,726.00 | 404,199 | 16:35:14 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 2.51B | -57.3M | -0.2324 | -126.85 | 7.27B |
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Elderstreet Draper Esprit VCT plc
Half-Yearly Report for the six months ended 30 September 2018
Legal Entity Identifier: 2138003I9Q1QPDSQ9Z97
Recent performance summary
30 Sept 31 Mar 30 Jun
2018 2018 2017
Pence Pence Pence
Net asset value per share 60.1 57.5 61.6
Cumulative distributions paid per share 99.0 99.0 97.5
Total return per share 159.1 156.5 159.1
======= ====== ======
CHAIRMAN'S STATEMENT
I am pleased to present the Half-Yearly Report for the Company for the
six months ended 30 September 2018.
The Company has been an active investor over the period, co-investing
with Draper Esprit funds under the management arrangements that have
been in place for the last two years.
Net asset value, results and dividends
At 30 September 2018, the Company's Net Asset Value ("NAV") per share
stood at 60.1p, an increase of 2.6p or 4.6% since 31 March 2018.
The return on activities after taxation for the period was GBP1.6
million (June 2017: GBP75,000), comprising a revenue return of
GBP262,000 (June 2017: GBP271,000) and a capital gain of GBP1.4 million
(June 2017: capital loss of GBP196,000).
An interim dividend of 1.5p per share will be paid on 29 March 2019, to
Shareholders on the register as at 8 March 2019.
Venture capital investments
Investment activity
During the period the Company made one follow-on and four new
investments totalling GBP3.5 million.
The Company invested GBP912,000 in Endomagnetics Limited (trading as
Endomag). Endomag has developed a minimally-invasive surgical guidance
system, which can locate early-stage and impalpable tumours and help
determine whether a cancer has spread. The system has been used in over
30,000 procedures across 300 hospitals in 30 countries and is the
subject of 12 clinical publications, all confirming its efficacy
compared with current standards.
GBP860,000 was invested in Pod Point Holding Limited, trading as Pod
Point, a leading provider of electric vehicle charging points in the UK.
The Company has manufactured and sold over 40,000 charging points to
date, for installation at locations including Sainsbury's, Gatwick
Airport and Heathrow Airport. It has also recently announced a major
partnership with Tesco and Volkswagen.
GBP793,000 in Evonetix Limited, a Company developing a DNA chip to
accurately synthesise long sequences of DNA with high accuracy,
eliminating the requirement for post-synthesis correction. The Company
recently announced a partnership with LioniX International to enable DNA
synthesis on a large scale.
GBP756,000 in IXL PremFina Limited, trading as PremFina, a business
developing software solutions for insurance brokers to better connect
them with their customers, whilst also facilitating the provision of
"own-brand" premium finance.
A follow-on investment of GBP211,000 was made into Access Intelligence
plc, a leading provider of communications and reputation management
software. The VCT, along with other existing investors, partook in a
further placing of shares in Access Intelligence plc, in order to fund
further development of its Vuelio platform, which has more than 1,500
customers. As at the date of this report, the VCT had invested a further
GBP340,000 in connection with a subsequent placing of shares, also
alongside existing Shareholders. This additional capital is being used
to fund the acquisition of Response Resource Limited, a company with a
product which is complementary to Vuelio.
During the period the Manager presented a number of new investment
opportunities to the Board, which have been approved and have
subsequently completed or are expected to complete over the coming
months. The Board has committed to four of these new deals, totalling
GBP3 million, alongside Draper Esprit funds, and completion is subject
to receiving HMRC approval. After the period end, funds have been
committed to two further deals totalling GBP1.1 million.
Investment realisations
The Company made one partial realisation and two full realisations
during the period, generating total proceeds of GBP694,000 and an
overall gain over carrying value of GBP83,000.
The partial disposal was in respect of Fulcrum Utilities Limited. The
majority of the VCT's shareholding was acquired in July 2010, and as the
share price has grown significantly since that time, the Board and
Manager saw an opportunity to provide some further liquidity for the
Company, whilst also realising a large profit on a relatively small
proportion of the Company's overall shareholding. The partial disposal
generated proceeds of GBP633,000 and realised a profit over cost of
GBP519,000.
Lyalvale Property Limited was dissolved during the period. As the VCT's
investment in the business had been valued at GBPnil as at 31 March
2018, the dissolution had no impact on the NAV during the period. The
Company continues to hold an investment in Lyalvale Express Limited,
which is discussed below.
The Company also realised its entire holding in Sparesfinder Limited,
resulting in a gain over opening value of GBP27,000.
Investment valuations
At the period end, the Company held a portfolio of 28 venture capital
investments, valued at GBP25.0 million.
The Board reviewed the valuation of the unquoted investments as at 30
September 2018 and adjustments have been made accordingly.
The investment in Street Team Software Limited (Verve), the operator of
a peer-to-peer event marketing platform, was uplifted in value by GBP1.5
million as at 30 September 2018, following strong performance.
Lyalvale Express Limited, the leading producer of shotgun ammunition in
the UK, was reduced in value by GBP1.1 million during the period. The
valuation reduction is attributable to a decline in sales volumes for
the period to October 2018, in light of volatility in the market for
their product. Whilst the investment has been reduced in value, the
revised valuation still represents an unrealised gain, over cost, of
GBP941,000.
Furthermore, the VCT received dividend income of GBP168,000 from the
company during the period.
The valuations of the quoted venture capital investments are driven by
their prevailing market prices as at 30 September 2018. The most notable
movement from 31 March 2018 was in relation to Access Intelligence plc.
The company published several positive updates in the period, which has
caused the share price to increase, resulting in a valuation uplift of
GBP1.2m.
The portfolio as a whole generated a net valuation uplift of GBP1.6
million during the period. The Board and Manager are satisfied with this
performance and believe that there are opportunities for further growth
in the portfolio.
Fundraising
The Company launched an offer for subscription in December 2017, which
closed on 31 May 2018 having raised gross proceeds of GBP3.9 million.
Share buybacks
The Company has a policy of buying in shares that become available in
the market at approximately a 7.5% discount to the latest published Net
Asset Value, subject to regulatory and liquidity constraints.
In line with this policy, during the period the Company purchased
795,000 shares for cancellation for an aggregate consideration of
GBP435,000, equating to an average price of 54.7p per share.
Any Shareholders who are considering selling their Shares will need to
use a stockbroker. Such Shareholders should ask their stockbroker to
register their interest in selling their shares with Shore Capital, who
act as the Company's corporate broker.
Distributable reserves
In order to maintain the distributable reserves of the Company, the
Board sought the approval of Shareholders, at the recent AGM, to cancel
the balance on the Share Premium account. This process was formally
completed in October 2018 and will be reflected in the Balance Sheet in
Annual Report to 31 March 2019.
Outlook
This has been a busy period for the Company in terms of new investment
activity. There are now a significant number of new young businesses in
the portfolio which will require close monitoring and support to ensure
that the successful ones are properly nurtured and, where it becomes
clear that a business is unlikely to be successful, appropriate action
is taken in a timely manner.
I look forward to updating Shareholders in the next Annual Report, which
will be issued in July.
David Brock
Chairman
SUMMARY OF INVESTMENT PORTFOLIO as at 30 September 2018
Valuation % of
movement portfolio
Cost Valuation in period by value
GBP'000 GBP'000 GBP'000
Top ten venture capital
investments
Fords Packaging Topco
Limited 2,433 5,766 - 13.8%
Access Intelligence plc* 2,544 4,448 1,226 10.7%
Lyalvale Express Limited 1,915 2,856 (1,048) 6.8%
Street Team Software Limited 1,286 2,736 1,450 6.6%
Fulcrum Utility Services
Limited* 386 1,994 45 4.8%
IESO Digital Health 1,500 1,500 - 3.6%
Endomagnetics Limited 912 912 - 2.2%
Pod Point Holding Limited 860 860 - 2.1%
Evonetix Limited 793 793 - 1.9%
IXL PremFina Limited 756 756 - 1.8%
------- ----------- --------- --------
13,385 22,621 1,673 54.3%
Other venture capital
investments 12,729 2,768 (34) 6.6%
------- ----------- --------- --------
26,114 25,389 1,639 60.9%
------- ---------
Cash at bank and in hand 16,352 39.1%
Total investments 41,741 100.0%
----------- --------
All venture capital investments are unquoted unless otherwise stated.
* Quoted on AIM
SUMMARY OF INVESTMENT MOVEMENTS for the six months ended 30 September
2018
Additions
GBP'000
Venture capital investments
Endomagnetics Limited 912
Pod Point Holding Limited 860
Evonetix Limited 793
IXL PremFina Limited 756
Access Intelligence PLC * 211
-------
3,532
=======
* Quoted on AIM
Disposals
Value at Profit Realised
1 April vs (loss)/
Cost 2018 Proceeds cost gain
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Quoted investments
Fulcrum Utilities Limited 114 576 633 519 56
Venture capital
investments
Sparesfinder Limited 104 34 61 (43) 27
Lyalvale Property Limited 300 - - (300) -
------- -------- ---------- ------- --------
404 34 61 (343) 27
------- -------- ---------- ------- --------
518 610 694 176 83
======= ======== ========== ======= ========
UNAUDITED BALANCE SHEET
as at 30 September 2018
30 Sept 30 Jun 31 March
2018 2017 2018
Note GBP'000 GBP'000 GBP'000
Fixed assets
Investments 25,389 16,901 20,828
Current assets
Debtors 97 358 84
Cash at bank and in hand 16,352 20,357 15,987
------ ------ -------
16,449 20,715 16,071
Creditors: amounts falling due within
one year (191) (192) (179)
------ ------ -------
Net current assets 16,258 20,523 15,892
------ ------ -------
Net assets 41,647 37,424 36,720
====== ====== =======
Capital and reserves
Called up share capital 7 3,463 3,035 3,194
Capital redemption reserve 9 572 495 533
Share premium 9 25,625 19,776 22,054
Merger Reserve 9 1,828 1,828 1,828
Special reserve 9 (928) 1,722 452
Capital reserve - unrealised 9 6,993 2,432 5,515
Capital reserve - realised 9 4,019 8,115 3,331
Revenue reserve 9 75 21 (187)
------ ------ -------
Equity shareholders' funds 6 41,647 37,424 36,720
====== ====== =======
Basic and diluted net asset value per 6 60.1p 61.6p 57.5p
share
UNAUDITED INCOME STATEMENT for the six months ended 30 September 2018
Period ended
Six months ended Six months ended 31 March
30 Sept 2018 30 Jun 2017 2018
Revenue Capital Total Revenue Capital Total Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Income 491 - 491 470 - 470 673
Gains/(losses) on investments
Realised - 84 84 - 740 740 406
Unrealised - 1,639 1,639 - (817) (817) (1,480)
----- ------ ------ ----- ----- ----- -------- ---
491 1,723 2,214 470 (77) 393 (401)
Investment management fees (92) (275) (367) (58) (175) (233) (794)
Other expenses (137) (75) (212) (141) 56 (85) (457)
----- ------ ------ ----- ----- ----- -------- ---
Return on ordinary activities
before tax 262 1,373 1,635 271 (196) 75 (1,652)
Tax on total comprehensive income
and ordinary activities - - - - - - -
Return attributable to equity
shareholders 4 262 1,373 1,635 271 (196) 75 (1,652)
===== ====== ====== ===== ===== ===== ======== ===
Basic and diluted return per share 4 0.4p 2.0p 2.4p 0.7p (0.5p) 0.2p (2.9p)
All Revenue and Capital items in the above statement are derived from
continuing operations. The total column within the Income Statement
represents the profit and loss account of the Company.
UNAUDITED STATEMENT OF CHANGES IN EQUITY for the six months ended 30
September 2018
Called up Capital Capital Capital
Share Redemption Share Merger Special Reserve- reserve- Revenue
capital reserve premium reserve reserve unrealised realised reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 30 June
2017 3,035 495 19,776 1,828 1,722 2,432 8,115 21 37,424
Total
comprehensive
income - - - - - (1,014) (534) (179) (1,727)
Transfer
between
reserves - - - - (752) 4,097 (3,749) 404 -
Transactions
with owners
Issue of new
shares 197 - 2,278 - - - - - 2,475
Share Issue
costs - - - - (94) - - - (94)
Purchase of
own shares (38) 38 - - (424) - - - (424)
Dividends paid - - - - - - (501) (433) (934)
------ --- ----------- -------- -------- ------ -------- --- ------- ----- ------
At 31 March
2018 3,194 533 22,054 1,828 452 5,515 3,331 (187) 36,720
Total
comprehensive
income - - - - - 1,639 (266) 262 1,635
Transfer
between
reserves - - - - (793) (161) 954 - -
Transactions
with owners
Issue of new
shares 308 - 3,571 - - - - - 3,879
Share Issue
costs - - - - (153) - - (153)
Purchase of
own shares (39) 39 - - (434) - - - (434)
Dividends paid - - - - - - - - -
------ --- ----------- -------- -------- ------ -------- --- ------- ----- --- ------
At 30
September
2018 3,463 572 25,625 1,828 (928) 6,993 4,019 75 41,647
====== === =========== ======== ======== ====== ======== === ======= ===== === ======
UNAUDITED STATEMENT OF CASH FLOWS for the six months ended 30 September
2018
Six months Six months Period
ended ended ended
30 Sept 30 Jun 31 March
2018 2017 2018
GBP'000 GBP'000 GBP'000
Cash flow from operating activities
1,635 75 (1,652)
(Gains)/Losses on investments (1,722) 77 1,074
Decrease/(increase) in debtors 42 (15) 258
(Decrease)/increase in creditors (3) 38 26
Net cash (outflow)/inflow generated from operating
activities (48) 175 (294)
------- ------- --- -------
(3,532) (475) (5,572)
694 4,266 4,439
Net cash (outflow)/inflow from investing activities (2,838) 3,791 (1,133)
------- ------- --- -------
Proceeds from share issue 3,879 15,517 17,992
Share issue costs (193) (404) (498)
Purchase of own shares (435) (112) (536)
Equity dividends paid - (912) (1,846)
Net cash inflow from financing activities 3,251 14,089 15,112
------- --- ------- --- -------
Increase in cash 365 18,055 13,685
======= === ======= === =======
Net movement in cash
Beginning of period 15,987 2,302 2,302
Net cash inflow 365 18,055 13,685
------- --- ------- --- -------
End of period 16,352 20,357 15,987
======= === ======= === =======
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS for the six months ended 30
September 2018
1. The unaudited half yearly results cover the six months to 30
September 2018 and have been prepared in accordance with the Statement
of Recommended Practice "Financial Statements of Investment Trust
Companies and Venture Capital Trusts" revised January 2009 and in
accordance with the accounting policies set out in the statutory
accounts for the year ended 31 March 2018, which were prepared in
accordance with the United Kingdom Generally Accepted Accounting
Practice (United Kingdom accounting standards and applicable law),
including Financial Reporting Standard 102, the financial reporting
standard applicable in the UK and Republic of Ireland.
1. The Company has only one class of business and derives its income from
investments made in shares, securities and bank deposits.
2. The comparative figures are in respect of the six months ended 30 June
2017 and the fifteen months ended 31 March 2018 respectively.
4. Basic and diluted return per share
Six Six Period
months months ended
ended ended 31 March
30 Sept 2018 30 Jun 2017 2018
Return per share based on:
Net revenue gain for the
period (GBP'000) 262 271 92
============= =========== ==========
Capital return per share
based on:
Net capital gain for the
period (GBP'000) 1,373 (196) (1,744)
============= =========== ==========
Weighted average number of
shares 69,412,617 41,615,341 57,026,412
============= =========== ==========
5. Dividends
Period ended
Six months ended 31 March
30 September 2018 2018
Per share Revenue Capital Total Total
pence GBP'000 GBP'000 GBP'000 GBP'000
Payable
2019 Interim 1.5p - 1,039 1,039 -
2018 Final 1.5p 210 829 1,039 -
------- ------- ------- ------------
210 1,868 2,078 -
======= ======= ======= ============
Paid in the period
2018 Interim 1.5p - - - 934
2016 Final 1.5p - - - 912
------- ------- ------- ------------
- - - 1,846
======= ======= ======= ============
6. Basic and diluted net asset value per share
Six months Six months Period
ended ended Ended
30 Sept 2018 30 Jun 2017 31 Mar 2018
Net asset value per share
based on:
Net assets (GBP'000) 42,647 37,424 36,720
============= ============ ============
Number of shares in issue at
the period end 69,249,111 60,716,778 63,884,554
============= ============ ============
Net asset value per share 60.1p 61.6p 57.5p
============= ============ ============
7. Called up share capital
Six months Six months Period
ended ended Ended
30 Sept 2018 30 Jun 2017 31 Mar 2018
Ordinary shares of 5p each
Number of shares in issue at
the period end 69,249,111 60,716,778 63,884,554
============= ============ ============
Nominal value (GBP'000) 3,463 3,035 3,194
============= ============ ============
During the period the Company allotted 6,159,557 Ordinary Shares of 5p
each ("Ordinary Shares") under an Offer for Subscription that launched
in December 2017, at an average price of 60.5p per share. Gross proceeds
received thereon were GBP3.9 million, with issue costs in respect of the
offer amounting to GBP153,000.
During the period, the Company purchased 795,000 shares for cancellation
for an aggregate consideration of GBP435,000, at an average price of
54.7p per share (approximately equal to a 5.4% discount to the most
recently published NAV at the time of purchase) and representing 1.2% of
the share capital in issue as at 1 April 2018.
8. Investment commitments
Since the end of the tax year the VCT has committed to four new
investments totalling GBP5 million as part of the co-investment
agreement alongside Draper Esprit funds. Completion of these investments
is contingent on receiving VCT clearance from HMRC. Two of these deals
are in healthtech, one in fintech, and one in an affiliate marketing
software business. Total funds committed by all parties involved in
these four investment rounds was over GBP50 million.
9. Reserves
The special reserve is available to the Company to enable the purchase
of its own shares in the market without affecting its ability to pay
dividends and allows the Company to write back realised capital losses
arising on disposals and impairments.
Distributable reserves are calculated as follows:
Six Six
months months Period
ended ended ended
30 Sept 30 Jun 31 Mar
2018 2017 2018
GBP'000 GBP'000 GBP'000
Special reserve (928) 1,722 452
Capital reserve - realised 4,019 8,115 3,331
Revenue reserve 76 21 (187)
Merger reserve -- distributable element 423 423 423
Unrealised losses
-- excluding unrealised unquoted gains 288 (1,781) (788)
------ ------ -------
3,878 8,500 3,231
====== ====== =======
The Company has categorised its financial instruments using the fair
value hierarchy as follows:
Level 1 Reflects financial instruments quoted in an active market (fixed
interest investments, and investments in shares quoted on either the
Main or AIM Markets);
Level 2 Reflects financial instruments that have prices that are
observable either directly or indirectly; and
Level 3 Reflects financial instruments that use valuation techniques
that are not based on observable market data (unquoted equity
investments and loan note investments).
Six months ended 30 Sept 2018 Period ended 31 Mar 2018
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
AIM
quoted
shares 6,019 - 367 6,386 5,332 - 181 5,513
Loan
notes - - 1,230 1,230 - - 1,230 1,230
Unquoted
shares - - 17,773 17,773 - - 14,085 14,085
------- ------- ------- ------- ------- ------- ------- -------
6,019 - 19,370 25,389 5,332 - 15,496 20,828
======= ======= ======= ======= ======= ======= ======= =======
In October 2018, the balances on the share premium account and the
capital redemption reserve were cancelled and added to the special
reserve, contributing an additional GBP26.2 million to distributable
reserves. The VCT regulations place some restrictions on the use of
these reserves during the first three to four years after the funds on
which they arose were raised.
10. Risks and uncertainties
Under the Disclosure and Transparency Directive, the Board is required
in the Company's half-yearly results to report on principal risks and
uncertainties facing the Company over the remainder of the financial
year.
The Board has concluded that the key risks facing the Company over the
remainder of the financial period are as follows:
* investment risk associated with investing in small and immature
businesses;
* liquidity risk arising from investing mainly in unquoted businesses;
and
* failure to maintain approval as a VCT.
In all cases the Board is satisfied with the Company's approach to these
risks. As a VCT, the Company is forced to have significant exposure to
relatively immature businesses. This risk is mitigated to some extent by
holding a well-diversified portfolio.
With a reasonably illiquid venture capital investment portfolio, the
Board ensures that it maintains an appropriate proportion of its assets
in cash and liquid instruments.
The Company's compliance with the VCT regulations is continually
monitored by the Administration Manager, who regularly reports to the
Board on the current position. The Company also retains Philip Hare and
Associates LLP to provide regular reviews and advice in this area. The
Board considers that this approach reduces the risk of a breach of the
VCT regulations to a minimal level.
The Company has considerable financial resources at the period end and
holds a diversified portfolio of investments. As a result, the Directors
believe that the Company is well placed to manage its business risks
successfully despite the current uncertain economic outlook.
The Directors have concluded that the Company has adequate resources to
continue in operational existence for the foreseeable future. Thus, they
continue to adopt the going concern basis of accounting in preparing the
financial statements.
1. The Directors confirm that, to the best of their knowledge, the
half-yearly financial statements have been prepared in accordance with
the "Statement: Half-Yearly Financial Reports" issued by the UK
Accounting Standards Board as well as in accordance with FRS 104 Interim
Financial Reporting and the half-yearly financial report includes a fair
review of the information required by:
1. DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first
six months of the current financial year and their impact on the
condensed set of financial statements, and a description of the
principal risks and uncertainties for the remaining six months of
the year; and
2. DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first six
months of the current financial year and that have materially
affected the financial position or performance of the entity
during that period, and any changes in the related party
transactions described in the last annual report that could do
so.
2. The unaudited financial statements set out herein do not constitute
statutory accounts within the meaning of Section 434 of the Companies Act
2006 and have not been delivered to the Registrar of Companies. The
figures for the period ended 31 March 2018 have been extracted from the
financial statements for that period, which have been delivered to the
Registrar of Companies; the Auditor's report on those financial
statements was unqualified.
3. Copies of the unaudited half-yearly results will be sent to Shareholders
shortly. Further copies can be obtained from the Company's registered
office or downloaded from www.elderstreet.com and www.downing.co.uk.
(END) Dow Jones Newswires
December 31, 2018 02:00 ET (07:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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