We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Octopus Titan Vct Plc | LSE:OTV2 | London | Ordinary Share | GB00B28V9347 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 59.50 | 58.00 | 61.00 | 59.50 | 59.50 | 59.50 | 19,745 | 08:00:08 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Investors, Nec | -289.65M | -319.22M | -0.2062 | -2.89 | 921.23M |
Hot Features
Premium
TIDMOTV2
Octopus Titan VCT plc ("Titan" and "the Company")
Annual Report and Accounts for the period ended 31 December 2019
Titan today announces the final results for the period to 31 December
2019 as below.
These results were approved by the Board of Directors on 16 April 2020.
You may view the Annual Report in full at
https://www.globenewswire.com/Tracker?data=Tl3OmNx-jFvqbvyETGgTsqXzTtUHqD1TMnz66WDai5f0YHzID-oUmBP74KGAHlUw0GL9iLtDyEk_abZWtobY2vebeuap6I7nc2uqL1ugWpxQ9Atk5Hak1EEpz1luuw1c
www.octopusinvestments.com shortly. All other statutory information will
also be found there.
Octopus Titan VCT plc ('Titan' or 'the Company') is a venture capital
trust ('VCT') which aims to provide shareholders with attractive
tax-free dividends and long-term capital growth by investing in a
diverse portfolio of predominantly unquoted companies. The Company is
managed by Octopus Investments Limited ('Octopus' or 'Portfolio
Manager') and Octopus AIF Management Limited (the 'Manager').
Financial Summary
As at 31 December As at 31 October
2019 2018
------------------------------------- ------------------- ------------------
Net assets (GBP'000) 905,840 609,402
------------------------------------- ------------------- ------------------
Profit after tax (GBP'000) 67,280 11,231
------------------------------------- ------------------- ------------------
Net asset value ('NAV') per share 95.2p 93.1p
------------------------------------- ------------------- ------------------
Cumulative dividends paid since
launch 76.0p 71.0p
------------------------------------- ------------------- ------------------
NAV plus cumulative dividends paid
('Total Value') 171.2p 164.1p
------------------------------------- ------------------- ------------------
Total return* 7.1p 1.7p
------------------------------------- ------------------- ------------------
Total return** 7.6% 1.8%
------------------------------------- ------------------- ------------------
Dividends paid in the period 5.0p 5.0p
------------------------------------- ------------------- ------------------
Interim dividend declared*** 3.0p 3.0p
------------------------------------- ------------------- ------------------
*Total return is an alternative performance measure calculated as
movement in NAV per share in the period plus dividends paid in the
period, divided by the NAV per share at the beginning of the period.
**Calculated as total return/opening NAV.
***Payable on 30 April 2020 to those shareholders on the share register
on 14 April 2020.
Key Dates
Final dividend payment date 30
April 2020
Annual General Meeting 26 May 2020
Interim Results to 30 June 2020 published September
2020
Chairman's Statement
I am pleased to present the annual results for Octopus Titan VCT for the
fourteen months ended 31 December 2019. As we announced on 12 July 2019,
the Company's accounting reference date was changed from 31 October to
31 December to better align with our fundraise schedule.
Whilst the commentary presented below refers primarily to the position
at 31 December, shareholders will be aware that since that date the
world has experienced the Coronavirus pandemic. Octopus Titan VCT has
already felt the effects of this situation and the full consequences
upon our Company will not be fully identified for some time. However, we
have reviewed the portfolio twice in March and April in advance of
recent share allotments and this has led to our announcing a reduction
in the NAV per share from 95.2p to 91.0p at 2 April 2020.
As part of the interim review process, the Portfolio Manager carries out
a detailed assessment of the portfolio, which will include the impact of
the Coronavirus pandemic on the valuations. There could be a significant
downward impact on a number of valuations and some portfolio companies
may enter administration. This is kept under continual review by the
Portfolio Manager and we expect to announce the interim results in
September.
Further references to the effects of the Coronavirus pandemic are
included later in my statement and elsewhere in the Annual Report and
Accounts.
The NAV at 31 December 2019 was 95.2p, a net increase of 7.1p per share
from 31 October 2018. The Total Value (NAV plus cumulative dividends
paid per share since launch) at the end of the period was 171.2p (31
October 2018: 164.1p). The tax-free annual compound return for the
original shareholders since Titan's launch in October 2007 is now 5.2%.
We were delighted to have raised GBP231 million in last year's fundraise
which closed on 30 April 2019. On 16 September 2019, we launched a new
offer to raise up to GBP120 million, with an over-allotment facility of
up to GBP50 million. Following our recent allotments, and subsequent
closing of the Offer on 9 April, we are pleased to have raised GBP124
million. We now have cash reserves of GBP295 million which will help us
withstand the impact of potential macro shocks including Brexit and the
effects of Coronavirus, and to continue to support our portfolio of
approximately 80 companies whilst also allowing us to invest in new
early stage high growth businesses which embody the overall objectives
of the VCT scheme. We would like to take this opportunity to welcome all
new shareholders and to thank all existing shareholders for their
continued support.
In the fourteen months to 31 December 2019, we utilised GBP201 million
of our cash resources, comprising GBP128 million in new and follow-on
investments, GBP33 million in dividends, GBP18 million in share buybacks
and GBP22 million in investment management fees and other running costs
which, together, accounted for the utilisation of 114% of our cash and
cash equivalents at 31 October 2018.
Investment Portfolio Review
I am pleased to report a net uplift in the value of the portfolio of
GBP104 million since 31 October 2018, excluding additions but including
gains and losses on disposals, representing a 24% return on the value of
the portfolio at the start of the period. This includes the sales of
Zynstra to NCR Corporation, which represented a significant uplift in
value during the period.
During the fourteen months to 31 December 2019, the uplift in valuation
has been driven by the strength of performance of a number of companies
in the portfolio. In particular, Bought By Many, Elliptic, Depop and
Permutive have all achieved material increases in value. Collectively,
43 investee companies drove an uplift of GBP154 million. Many of our
portfolio companies have made great progress over this period and hit
exciting milestones. More detail on some of these achievements can be
found in the Portfolio Manager's Review.
In the period, as mentioned above, Titan has benefitted from the sale of
Zynstra to NCR Corporation for GBP100 million in December 2019. We first
invested in Zynstra in 2013 and participated in all subsequent funding
rounds. The realisation of Titan's investment in Zynstra yielded
proceeds of GBP23.9 million (compared to a cost of GBP8.3 million), a
small proportion of which is deferred and expected to be paid within 24
months. Since 31 December, we have also realised our investment in We
Got POP (Pop Global Limited), which was acquired by Entertainment
Partners, and BridgeU, which was acquired by Kaplan UK. We Got POP and
BridgeU represent our first realisations from female-led management
teams. We are pleased to be able to add these successes to our history
of profitable realisations.
Conversely, as is to be expected, 29 companies saw a collective decrease
in valuation of GBP50 million. The significant contributors were Systum,
MyTomorrows, Uniplaces and Picsoneye (Edgify) where performance has been
more challenging. 8 of these 29 companies saw a reduction in value of 5%
or less, typically due to modest downward trends in valuation factors in
the relevant sectors as a result of broader macro issues rather than
individual company's performance. The Portfolio Manager believes that a
number of these businesses have the potential to overcome the issues
they face and return to their ambitious growth plans, notwithstanding
the unknown impact of the Coronavirus pandemic. The Portfolio Manager
continues to work with these companies to help them achieve their
ambitions and, where appropriate, this will include providing further
funding to ensure the business has sufficient capital to execute on its
strategy. This can be seen in the cases of both Patch and MyTomorrows,
where Titan invested further during the period despite Titan's holdings
in the companies being valued at less than cost at the period end.
Unfortunately, Swoon (Sourceable Limited) was placed into Administration
in December 2019, having failed to secure terms for further funding or
an acceptable offer for acquisition despite considerable efforts from
the management team and Octopus.
Turning to investments made during the fourteen months to 31 December
2019, GBP50 million was invested into 14 new companies (further detailed
in the Portfolio Manager's Review) and GBP77 million was invested into
48 follow-on investments as listed below. We are delighted that the
volume and quality of investment opportunities was so strong during this
period.
In addition, there have been five new investments and nine follow-on
investments totalling GBP40.1 million, since 31 December 2019. The new
investments were into: Digital Therapeutics, a company creating
Cognitive Behavioural Therapy based programmes to tackle harmful
addictions; Skew, which aims to become the leading provider of financial
data, tools and services related to cryptoassets for institutional
investors; Stackin, an SMS-based recommendation engine that combines
financial education and personalised financial product advice; Quantum
Motion Technology, a spin out from the University of Oxford and UCL to
exploit ground-breaking research and IP in quantum computing; and
TaxScouts, which automates large parts of the tax returns process so
consumers can do returns in a few clicks at a low cost.
Performance Incentive fees
Titan's performance since 31 October 2018 has meant that a performance
fee of GBP17 million has been charged. The performance fee is calculated
as 20% on all gains above the High Water Mark, the highest total value
as at previous year ends, of 164.1p as at 31 October 2018. See Note 19
of the financial statements for further details.
Dividends
Following careful consideration, I am pleased to confirm that the Board
has decided to declare a second interim dividend of 3.0p per share in
respect of the current financial year, which will be paid on 30 April
2020 to shareholders on the register as at 14 April 2020, resulting in
dividends for the period of 5.0p per share. This represents a tax-free
yield of 5.4% on the opening NAV. As shareholders will know, our
ambition is to pay an annual dividend of 5.0p per share, supplemented by
special dividends when appropriate.
As shareholders will have seen in our announcement on 30 March, we have
suspended the Dividend Reinvestment Scheme (DRIS) in relation to this
interim dividend in view of the current market conditions and potential
valuation uncertainties surrounding Coronavirus. The Board intends to
reinstate this facility as soon as practical. To clarify, this means
that even if you are one of the 28% of shareholders who usually take
advantage of the DRIS, in this instance, you will receive your dividend
as cash rather than additional shares in Titan.
Fundraise and Buybacks
As previously stated, Titan successfully raised GBP231 million (GBP223
million net of up-front fees) during the period, excluding funds raised
through the DRIS. The Board announced a further fundraise of up to
GBP120 million (plus a potential over-allotment facility of a further
GBP50 million), giving new and existing shareholders the opportunity to
invest into Titan. On 13 December, GBP28 million (GBP27.2 million net of
costs) was allotted under this offer and additional unallocated
applications received to 31 December amounted to over GBP5.5 million.
Having considered the strength of inflows and the market environment,
on 30 March, the Board confirmed that up to GBP15 million of the
over-allotment facility of up to GBP50 million may be used in relation
to this offer, increasing the maximum amount that could be raised to
GBP135 million. In March and April, a further GBP66 million (GBP64
million net of costs) was allotted, and the Offer subsequently closed on
9 April having raised a total of GBP124 million. As always, we would
like to thank shareholders for their ongoing support, particularly
during the recent challenging macro environment.
During the period, Titan repurchased 20.2 million shares (representing
3.1% of the share capital as at 31 October 2018). Further details can be
found in Note 14 of the financial statements. The Board continues to buy
back shares from shareholders at no greater than a 5% discount to NAV,
subject to a maximum of 5% of the share capital in any one year.
VCT Qualifying Status
PricewaterhouseCoopers LLP (PwC) provides both the Board and Octopus
with advice concerning ongoing compliance with HMRC rules and
regulations concerning VCTs and have advised that Titan continues to
comply with the conditions laid down by HMRC for maintaining approval as
a VCT.
As at 31 December 2019, over 96% of the portfolio (as measured by HMRC
rules) was invested in VCT-qualifying investments, significantly above
the 80% current VCT-qualifying threshold.
Annual General Meeting ('AGM')
As a Board, we have been deliberating the potential impact of the
Coronavirus outbreak on the arrangements for our forthcoming Annual
General Meeting ("AGM"). These arrangements will evolve, and we will
keep shareholders updated of any changes through regulatory
announcements and on our Manager's website at
www.octopusinvestments.com/coronavirus-updates. Formal notices will also
be sent to shareholders by their preferred method (e-mail or post).
We are required by law to hold an AGM within 15 months of the previous
AGM, therefore a lengthy postponement or adjournment is not possible in
this case. Our AGM will therefore be held at noon on 26 May 2020, at 33
Holborn, London, EC1N 2HT. We are putting in place contingency
arrangements which mean that the meeting is unlikely to follow the same
format as in previous years, but will still meet the minimum legal
requirements for an AGM. As a result, there will be no presentation from
the Manager at the AGM though we plan to offer an alternative format and
date for this when there is better visibility on what will be
permissible and practical due to the Coronavirus measures.
Full details of the business to be conducted at the AGM are given in the
Notice of the Meeting on pages 68 and 69 of the Annual Report and
Accounts. In proposing Resolution 8, we are taking the opportunity to
seek authority to issue a further 20% of the share capital which may
alleviate the need for a further General Meeting in the autumn to
authorise our expected 2020/21 fundraise.
Shareholders' views are important, and the Board encourages shareholders
to vote on the resolutions within the Notice of Annual General Meeting
on pages 68 and 69 of the Annual Report and Accounts using the proxy
form, or electronically at www.investorcentre.co.uk/eproxy. The Board
has carefully considered the business to be approved at the AGM and
recommends shareholders to vote in favour of all the resolutions being
proposed.
In light of the current Coronavirus stay at home measures in the UK, the
AGM will be run as a closed meeting and shareholders will not be able to
attend in person. Shareholders attempting to attend the AGM will be
refused entry. However, we encourage shareholders to submit their votes
by proxy, rather than attending in person.
We always welcome questions from our shareholders at the AGM but this
year, to ensure we are able to respond to any questions you may have for
either the Portfolio Manager or Titan VCT Board, please send these via
email to TitanAGM@Octopusinvestments.com. All questions received will be
included on the website along with the relevant replies at
www.octopusinvestments.com/our-products/octopus-titan-vct.
Principal Risks and Uncertainties
The Board continues to regularly review the risk environment in which
Titan operates. Other than the impact of the Coronavirus pandemic, there
have been no significant changes to the key risks described on pages 9
and 10 of the Annual Report and Accounts. In addition, the Coronavirus
pandemic has presented the Company with additional immediate risks in
respect of the performance and valuation of portfolio companies as well
as potential risks such as future fundraising.
Outlook
We are delighted at the successful fundraise and the positive response
to the current offer from both new and existing shareholders. While the
General Election in December 2019 resulted in a majority government, and
should offer more political stability in the UK, the macro environment
remains uncertain in the near term following the Coronavirus pandemic
which has caused so much disruption, and the Brexit transition period
(to end on 31 December 2020).
As shareholders will have seen, we reduced the NAV per share on 10 March
and again on 2 April prior to recent allotments and buybacks. Obviously,
a number of our investee companies have been negatively affected by
these events, especially those in the travel sector, and it will take
time to fully understand the long-term impact of Coronavirus on such
businesses. However, change can represent opportunity and enterprising
management teams can reap rewards. As such, a number of the companies
Titan has invested in are also thriving. Having reviewed the portfolio
in detail, we announced the NAV as at 2 April was 91.0p per share, and
this was therefore used for all share allotments in April. Our Manager
continues to work closely with the companies in our portfolio to
mitigate the impact of the current pandemic and maximise the chances of
success for those able to take up new opportunities.
Our fundraising offer, which has now closed having raised GBP124 million,
means that we have GBP295 million in cash and cash equivalents. This
will allow us to continue to support the most promising companies in our
portfolio, as well as back the UK and Europe's pioneering entrepreneurs
intent on building world changing businesses. The investment team's
focus on the 'pods'; Future of Health, Future of Money and Deep Tech has
deepened over the last year. The Future of Health pod is helping the
pioneers who are improving lives through digital health, tackling
'taboo' issues and creating essential software to power health systems.
The Future of Money pod is looking to back the companies that will
transform the way we exchange and allocate resources as a society. And
finally, the Deep Tech pod is focusing on the tools and technologies
that will power the next industrial revolution. These include human
computer interface, edge and quantum computing, robotics and synthetic
biology. Regardless of the pod, all opportunities being considered by
Octopus for investment for Titan have technology or a tech-enabled
offering in common. The power of this specialisation is starting to show
as each pod has been able to develop a deep understanding of these areas
and proactively search for the most exciting, early stage opportunities
in these verticals. The team has also been working closely with
universities across the UK to ensure it is building relationships and
sourcing new technology at its earliest stage. Shareholders can read
more on this in "Research to Riches", a fascinating piece of research
published by Octopus Ventures in November 2019 which included an
entrepreneurial impact ranking of universities (available at
www.octopusventures.com/entrepreneurial-impact-ranking-2019).
Despite disappointing news from some investee companies in the last year,
the Board remains positive about the prospects of the existing
portfolio. The companies we have invested into have ambitious goals; we
look forward to working with Octopus to help optimise their chances of
success in future and hope to see further profitable realisations in the
coming years as a result. As previously counselled, as investments are
made at such an early point in a company's life cycle, successful
realisations are expected to take time to come to fruition, while some
of these companies will not be as successful and some may fail. However,
I am pleased to say that our failure rate to date has been below the
historic rate normally seen for early stage/start-up technology
ventures.
We believe that the UK has the opportunity to remain a key
entrepreneurial hub in Europe post-Brexit and Coronavirus. VCTs have
long provided a compelling opportunity for UK investors to provide
funding for such businesses in a tax-efficient way and, with a new
government in place, we look forward to their ongoing support for small
businesses as well as the VCT scheme.
Regardless of the changing macro environment, Octopus Ventures continues
to work closely with the portfolio, providing practical mentoring to the
entrepreneurs we invest in, giving them skills and contacts to increase
the likelihood that they will succeed. They work with the entrepreneurs
by holding workshops on strategy, advising on sales and marketing plans,
as well as providing connections to other companies who could help. They
also believe strongly that the quality of the team can make or break a
young business. To achieve this, they have hired an expert on start-up
'talent' in 2019, solely focused on partnering and supporting our
portfolio company leaders. This initiative has helped those leaders to
build the optimal teams around them to succeed and has proved so
valuable to the portfolio that Octopus is now expanding the resource, as
well as that of the investment team, to allow it to best originate, make,
manage and realise investments on behalf of Titan. The Octopus Ventures
team now numbers over 30, spanning investment, portfolio, talent and
operational expertise.
I would like to conclude by thanking both the Board and the Octopus
Ventures team on behalf of all shareholders for their hard work, without
which our Company would not continue to achieve such performance.
John Hustler
Chairman
16 April 2020
Portfolio Manager's Review
Thanks to Shareholders
We continue to be delighted by the support from investors and the
resulting success of the fundraising which closed in April 2019. Further,
we have already seen significant inflows for the fundraise launched in
September 2019, which closed on 9 April 2020 having raised GBP124
million. We'd like to take this opportunity to thank existing
shareholders and welcome new shareholders for their support in our
fundraising efforts.
Personal Service
At Octopus, we focus on both managing your investments and providing
investors with regular and open communication. Our updates are designed
to keep you informed about the progress of your investment.
Octopus was established in 2000 and has a strong commitment to both
smaller companies and to VCTs. We currently manage four VCTs, including
Titan, and manage over GBP1.2 billion in the VCT sector.
Investment Strategy
Octopus Ventures helps pioneers change the world. The pioneers we back
with investments from Titan VCT dare to reimagine the Future of Health,
the Future of Money, and Deep Tech by creating new markets or radically
improving traditional industries. The quality of our deal flow means
that we are typically in a position to select the most talented teams
leading technology or technology-enabled businesses to achieve this. The
opportunity here is significant as back in 2010, there were only two
European technology companies formed since 2000 valued at more than a
billion dollars. By 2014, it had risen to 30, and in 2019, there were
over 80, with more than 25 of them based in the UK. With second and
third places held by Germany (with 11 such companies) and Israel (with
nine), this makes the UK the largest producer of billion-dollar
companies in Europe by some margin. Titan provides VCT investors with
potential exposure to exciting investment opportunities.
We're proud to have seen a number of successes in the portfolio over
previous years from which shareholders have benefitted from multiple
high-profile exits, which have enabled Titan to pay out tax-free
dividends (both regular and special), including Zoopla, SwiftKey, Magic
Pony, GetOptics, Tails.com and partial exits from Secret Escapes and
Graze. This period we were delighted to have completed the exit from
Graze and exited Zynstra to NCR Corporation, which were followed by the
exits of both We Got POP and BridgeU post period end. By executing on
our strategy of investing in unusually talented entrepreneurs addressing
large markets and industries ripe for disruption, we have created a
diverse portfolio for Titan of approximately 80 companies spanning
multiple industries and business sectors.
Within the VCT rules of a maximum annual investment of GBP10 million per
company and a lifetime limit of GBP20 million for Knowledge Intensive
companies (which most Titan portfolio companies qualify as), we
typically look to invest in significant minority equity stakes in these
companies, first investing a relatively modest amount at the early
stages of a company's lifecycle, and typically investing further as the
portfolio companies develop and perform well against the milestones we
agree with management teams on an ongoing basis. Our investment provides
the capital for businesses to grow their operations and build their
product suite and/or market reach. We usually expect to realise our
investments through trade sales (for example, to a larger technology
company such as Amazon, Google or Microsoft, all acquirers of former
Titan portfolio companies), private equity sales or IPO. Our view is
that if we continue to identify, support and realise investments from
category leading businesses, the returns we can generate for Titan
shareholders can be significant, particularly with the UK continuing to
show such leadership for successful entrepreneurism in Europe.
Many portfolio companies meet and exceed the expectations initially set.
In these situations, we actively seek to increase our investment
exposure as the company demonstrates its ability to create a significant
and valuable business. Recent examples here include Bought By Many,
Elliptic, DePop and Permutive, amongst others, where we have proactively
looked to invest further in subsequent rounds of funding and increase
our ownership stake, with the intent of maximising the impact of a
positive realisation on Titan's returns.
Whilst many of our investments go on to become successful companies and
sometimes household names, it is inevitable that some companies will not
perform. We typically look to take a board seat when we make an
investment which enables us to closely monitor progress and bring in the
appropriate support from within our team or wider network to help each
portfolio company reach its potential. In situations where a company is
performing less well and not meeting the pre-agreed milestones, we will
consider a variety of courses of action. We may work with the company to
help them secure funding from a new investor and still invest alongside
that investor to maintain Titan's holding in the business. This helps a
company to build the company's potential sources of help and funding
which can help maximise its chances for success. In other cases, we may
have to make more difficult decisions. Where performance and progress
continue to lag behind expectations, we may decide not to invest further,
and will seek to recover value where possible.
Performance
The Total Value has seen a significant increase since Titan's first year
end (31 October 2008) as shown on the graph, from 89.9p to 171.2p at 31
December 2019. This represents an increase of 90% in value since the
first full year of Titan, and dividends paid or announced since
inception of 76.0p. Since launch, a total of over GBP143 million has
been distributed back to Titan shareholders as tax free dividends.
As at 31 December 2019, the NAV was 95.2p per share, compared to 93.1p
per share as at 31 October 2018 which represents an increase in NAV of
7.1p per share after adding back dividends paid during the period of
5.0p (2018: 5.0p) per share. This represents an increase of 7.6% (2018:
1.8%). The performance of the portfolio has continued to be strong this
year with uplifts in fair value which totalled over GBP154 million.
Downward revaluations in the period totalled GBP50 million. In aggregate,
the value of the portfolio, excluding new and follow-on investments in
the year, increased by 24%.
The performance over the five years to 31 December 2019 (where the most
recent year represents a fourteen month period) is shown below:
31/10/2015 31/10/2016 31/10/2017 31/10/2018 31/12/2019
----------------------------- ---------- ---------- ---------- ---------- ----------
NAV, p 102.7 97.9 96.4 93.1 95.2
----------------------------- ---------- ---------- ---------- ---------- ----------
Dividends paid, p 52.0 61.0 66.0 71.0 76.0
----------------------------- ---------- ---------- ---------- ---------- ----------
Total value, p 154.7 158.9 162.4 164.1 171.2
----------------------------- ---------- ---------- ---------- ---------- ----------
Total return 5.7% 4.1% 3.6% 1.8% 7.6%
----------------------------- ---------- ---------- ---------- ---------- ----------
Dividend yield 4.4% 8.8% 5.1% 5.2% 5.4%
----------------------------- ---------- ---------- ---------- ---------- ----------
Equivalent dividend yield
for a higher rate tax payer 6.6% 13.0% 7.6% 7.7% 8.0%
----------------------------- ---------- ---------- ---------- ---------- ----------
There has been an increase in valuation of Titan's cash and cash
equivalent investments of GBP1.8 million in the period to 31 December
2019. Shareholders may recall that it was decided in 2018 to take less
risk with the cash and cash equivalent investments for the foreseeable
future, with the objective of these investments generating sufficient
returns to cover costs, at limited risk to capital. The allocation
across these products is reviewed regularly by the Titan Board and may
include investments into other products managed by Octopus (though this
was not the case in the period).
To take account of the Coronavirus outbreak, which has arisen since the
31 December 2019, the Board reviewed the portfolio as at 10 March 2020
and decided to apply a 25% discount to the equity valuations as at 31
December 2019, for portfolio companies operating in the travel sector.
This resulted in a revised NAV of 93.8p per share, which was used for
the allotment on 11 March 2020.
The Board also declared a further interim dividend of 3.0p per share the
period ended 31 December 2019. The record date for the dividend is 14
April 2020 with payment to be made on 30 April 2020. It is not
anticipated that any further dividends will be declared in respect of
this period.
Further to this, the Board reviewed the portfolio as at 2 April 2020.
This resulted in a revised NAV of 91.0p per share which was used for the
allotments on 3, 4 and 7 April 2020, and was the basis for the share
buyback on 9 April 2020. This NAV change reflects valuation adjustments
across the portfolio, which is carried at fair value. These valuation
adjustments are largely related to portfolio companies operating in the
travel sector, as advised by the Portfolio Manager and approved by the
Board.
We have increased our dialogue with our portfolio companies and continue
to provide them with operational support, advice, including financial
planning and in relation to accessing various elements of the
Government's financial assistance packages, as well as other measures to
mitigate the impact of current trading conditions. Titan is also able to
provide further funding to the portfolio where appropriate given its
significant cash holdings, which as at 2 April 2020 totalled GBP295
million, held in cash and cash equivalents.
Portfolio Review
The current portfolio encompasses investments in 81 companies (79
unquoted and two quoted, excluding two companies in liquidation and two
in administration, but including the two underlying companies in
Zenith).
Portfolio Active Inactive
--------------------- ------ --------
31/10/2018 71 5
--------------------- ------ --------
Additions 14 -
--------------------- ------ --------
Disposals (3) (2)
--------------------- ------ --------
Liquidations
and administrations (3) 3
--------------------- ------ --------
31/12/2019 79 6
--------------------- ------ --------
The progress made by many of the portfolio companies in the last
fourteen months has been impressive. Within the portfolio, some
particular highlights include:
-- Big Health won the Impact Award at the Employer Health Innovation
Roundtable (EHIR);
-- By Miles, the pay-by-mile car insurance provider, launched a "connected
car" insurance policy specifically for Tesla drivers in December. The new
insurance product pulls real-time mileage information directly from a car
owner's Tesla account and uses the distance they have driven to price
their insurance each month. It claims to be the first car insurance
policy to take data from a car without the need for a "black box" or
aftermarket device;
-- Cazoo, the latest venture from Alex Chesterman, who previously founded
Zoopla, launched its offering in December 2019 and sold GBP10
million-worth of cars in its first eight weeks. It is set to transform
how 8 million used cars are bought each year by putting the entire
process online and offering home delivery, much like buying any other
product today. The company announced a GBP100 million funding round in
March 2020;
-- DeadHappy, the life insurance provider with a difference, launched and
was listed sixth in Forbes's top 15 Social Media Campaigns of 2019. The
success of a social marketing campaign ultimately depends on how
appealing the audience finds it and if it feels the need to engage with
the brand as a result of the campaign;
-- Blockchain analytics company Elliptic added XRP, the native currency of
the Ripple payment network, to its risk management suite in November and
identified $400 million in XRP transactions linked to illicit activity,
including scams, theft and money laundering. Elliptic has made its name
monitoring the bitcoin network and providing data, including suspicious
patterns, and analytics services to financial institutions and law
enforcement agencies. The crypto businesses and financial institutions it
works with will now be able to screen XRP transactions for links to
criminal activity and sanctioned entities;
-- Elvie develops products to improve women's lives through smarter
technology. It launched its silent breast pump during the year which
proved so popular the waiting list ran to over 10,000 people and the
company won both Venture-funded Business of the Year and Women in
Business Award at the Startup Awards at the end of 2018;
-- Sofar Sounds was voted as the number two most innovative music company in
the world in 2019 according to Fast Company. Sofar also announced its $25
million funding round led by Battery Ventures, joined by Union Square
Ventures;
-- Token.io, an open banking platform that helps banks remain compliant and
generate new revenue streams, was selected by Mastercard to power the
connectivity layer of its Open Banking Hub. It also won Fintech Startup
of the Year at the FStech Awards;
-- Trouva, an online marketplace for independent boutiques, raised $22
million in further funding. The funding will be used to fuel its
international growth; and
-- Zynstra, which has developed an intelligent software infrastructure for
retail stores to virtualise their back and front office store, won awards
for both Infrastructure Innovation of the Year and UK Innovation and
Entrepreneurship at the UK IT Industry Awards in November, a major event
with over 1200 people in attendance and 30 awards made. It was also
acquired by NCR Corporation in December 2019 (more detail below).
Disposals
Titan made two full disposals in the fourteen-month period (Zynstra and
Bowman Power). Graze was also disposed of from the Zenith Holding
Company portfolio in February 2019.
We are delighted to have successfully realised our investment in Zynstra
in December 2019. Zynstra has developed a pioneering intelligent
software infrastructure for enterprises and retail stores to virtualise
back and front office technology including traditional and next
generation Point-of-Sale (POS), and was acquired by NCR Corporation for
GBP100 million in December 2019. NCR is a global enterprise technology
company for the retail, hospitality and banking industries, and is
listed on the New York Stock Exchange with a market cap of more than $4
billion. We first invested into Zynstra as part of their seed round in
2013, and are proud to have been part of their journey to exit to NCR.
The realisation of Titan's investment in Zynstra resulted in proceeds of
GBP23.9 million (vs a cost of GBP8.3 million), a small proportion of
which is expected to be held back, and paid within 24 months.
This adds to the successful acquisition of Graze by Unilever N.V in
February 2019. Launched in 2007, the business delivers healthy snacks
through the post. Having first invested in 2009 and making partial
disposals in 2012 and 2013, Titan realised its remaining holding in
Graze.com (held via Zenith Holding Company) as part of the Unilever
transaction.
Both Graze and Zynstra are great examples of businesses Titan only
gained access to due to Octopus's propriety deal flow channels -- the
founding team of Zynstra included a founder of LOVEFiLM.com, while
Zynstra was introduced by one of the founding team of SwiftKey, both
companies the Octopus Ventures team had previously invested in.
Unfortunately, despite all our and the managements teams' efforts, both
MIRACL and Swoon have been placed into Administration during the period.
Both had received significant investment from Titan, but due to a
combination of factors, struggled to secure further funding from third
parties to enable them to execute on their growth plans and were no
longer able to continue trading. It is always disappointing for
shareholders when such action has to be taken, but is an inevitable risk
associated with a venture capital portfolio. This risk is increasingly
apparent in light of the Coronavirus pandemic.
Bowman Power has struggled with customer challenges and delayed orders
for some years. As a result, we agreed terms to realise our investment
at a significant loss versus cost.
New and follow-on investments
Titan completed 48 follow-on investments in the fourteen month period
into 36 existing portfolio companies and made 14 new investments,
together totalling GBP127 million (comprising GBP77 million invested
into the existing portfolio and GBP50 million into new companies).
Following this, the portfolio totals GBP640 million as at 31 December
2019. This compares to a twelve month period in 2018 when Titan made 20
new investments and 25 follow-on investments, together totalling GBP123
million.
As previously reported, we have proactively increased the size of the
Octopus investment team over the last 5 years to enable us to increase
the rate of new investments and appropriately manage the growing
portfolio. With this additional resource, the team has also refined its
focus towards technology and technology-enabled businesses in our three
key areas of the Future of Health, Future of Money and Deep Tech.
Having visibility over the best available deals in the market is largely
due to the increasing prominence of Octopus in supporting many of the
fastest growth technology businesses in Europe (e.g. Swiftkey and
Zoopla) which in turn makes Octopus an increasingly attractive
investment partner for technology entrepreneurs looking to build global
businesses. The investment team receives thousands of investment
opportunities each year and is in the privileged position of being able
to diligence these in order to identify the small number of deals that
will be taken to Investment Committee ahead of making an investment.
Given the health of the underlying portfolio and the cash requirement to
scale these businesses, we have good visibility into the opportunity to
invest further into companies we already know and understand. It is for
this reason that the majority of funds raised will be invested in
follow-on deals. The funds raised during the period have given us the
capability to ensure we continue to invest sufficiently into the highest
quality investment opportunities we are seeing in the market, including
those already in our portfolio, and we are on target to deploy the
capital raised in line with our budget.
A few technical changes to VCT qualification rules have been introduced
in recent years, such as VCTs having to invest at least 30% of funds
raised into qualifying holdings within 12 months from 6 April 2018, and
the proportion of funds that VCTs must hold in qualifying investments
rising from 70% to 80% from 6 April 2019. Given Titan's current
qualifying proportion of over 96% and its current and intended
investment rate, these changes have not had a material impact on Titan
and we do not anticipate they will do so. From 6 April 2018, it was also
announced that "Knowledge Intensive" companies (i.e. those that have a
high proportion of Research & Development or innovation spend) are able
to raise up to GBP10 million each year from VCTs and EIS, up from GBP5
million previously. Titan typically invests in knowledge intensive
companies and so has benefitted from this change.
The 14 new investments in the fourteen months to December 2019 are
comprised of:
-- Aire Labs: a technology platform that allows lenders to serve more
customers by automating the data collection for those with thin credit
files, removing the traditional costly human interaction previously
required to assess these individuals;
-- AudioTelligence: real time audio processing technology;
-- By Miles: a pay-per-mile car insurance provider;
-- Cazoo: an online platform which allows consumers to purchase used cars
and arrange any finance necessary. Cazoo is founded by Alex Chesterman,
Founder and CEO of Zoopla Property Group and previously at LOVEFiLM;
-- Cred Investments: an online marketplace that will enable professional
athletes to sell a share of their future salary and endorsement to their
fans;
-- Gleam: direct-to-consumer, personalised acne treatment;
-- Glofox: gym management software for boutique fitness studios;
-- Inrupt: is working to bring Sir Tim Berners-Lee's distributed data
ownership model that is Solid into the mainstream, by building enterprise
tools for companies who need to use customer data;
-- Mosaic Smart Data: a data analytics tool for professionals in the capital
markets to help improve investment decisions;
-- Ometria: Customer retention marketing platform for retailers;
-- Systum: a business and inventory management platform for wholesale
distributors;
-- ThirdEye Labs: a software solution for retailers to leverage existing
security cameras to understand what is happening in store in real time to
help prevent theft, stock shortages and queues;
-- Unmade: a fashion software company that limits waste by manufacturing on
demand; and
-- vHive: an artificial intelligence solution that enables enterprises to
deploy autonomous drone hives for the acquisition, management and
processing of field data.
Subsequent to the year end five new investments and nine follow-on
investments were made, totalling GBP40 million. Further details can be
seen in Note 17 of the financial statements.
Supporting our portfolio companies
Backing entrepreneurs and helping them reach their ambitions goes well
beyond just providing finance. We give them a platform to succeed,
providing practical support to the companies, helping them find and hire
the right people and introducing them to valuable contacts, among other
activities.
Since Titan was launched, we've built the Octopus Ventures team, which
manages the Titan portfolio, from five people to more than 40, including
our Operating Partners. In 2018, Octopus increased its resource
commitment to manage Titan by expanding the investment team by nearly
50% to 17 people, as well as adding further portfolio and operational
support to make sure we continue to be able to make new investments and
manage the expanding portfolio. Octopus Ventures now has a combined
investment experience of 150 years and brings together a wide range of
specialist skills and individual insights.
Early-stage companies often need nurturing. So, we don't just make an
investment, we also actively participate in the company's growth
journey. Usually someone from Octopus Ventures sits on the board of the
company they invest into, which allows them to play a prominent role in
the company's ongoing development and supporting those teams through the
often perilous activity of company building.
Some of the ways we help the entrepreneurs we back include holding
workshops on strategy, advising on sales and marketing plans, as well as
providing connections to other companies who may be helpful. We know
that, as with many companies, the quality of the team can make or break
a business. We have often introduced people who go on to become key
members of senior management teams within our portfolio companies -- for
example, in the case of SwiftKey, we introduced the CFO, COO and
Chairman to the business. With talented management teams being so
crucial to the success of early stage companies, we've created a group
focussed on start-up 'talent'. The group of three (one of which is based
in New York) is focused on partnering and supporting our portfolio
company leaders with building and developing the teams around them.
We're also in a great position to help companies expand internationally.
Octopus Ventures itself is spread between offices in London and New York,
so we can better help companies understand both the opportunities and
challenges of expanding globally.
The team is also bolstered by a group of Operating Partners, a select
group of entrepreneurs and business experts who offer expertise in areas
such as CEO leadership, sales and international expansion. They are
based in London, San Francisco, Shanghai and Singapore and their purpose
is to help Titan portfolio companies reach their full potential and
achieve their global ambitions.
This combined approach can be a useful tool for winning the most
competitive deals and proving our value beyond simply investment.
Outlook
The rapid development of the Coronavirus pandemic has spread fear and
disrupted global economic activity. Central banks have been swift to
reduce interest rates and Governments have announced unprecedented
peacetime financial support and stimulus in response.
The impact has been felt across the portfolio and will continue to be
felt for months to come. The challenges are numerous, and are
experienced in a variety of ways; from the reduction in demand for
products and services, to the disruptions associated with the transition
to remote working. Some companies are being more significantly affected
than others, notably those in the travel and leisure sectors, but on the
positive side, companies that are at a structural advantage versus
incumbent competitors are experiencing record trading (i.e. ecommerce,
and digital-first services).
Many companies in the portfolio are well funded having recently closed
large funding rounds, or are in the final stages of completing those
rounds. We continue to work very closely with all of the portfolio
companies to plan appropriately, take necessary action, assess potential
funding requirements and to engage with existing funders early.
We are at a time of maximum uncertainty with regards to the Coronavirus.
It is currently too early to accurately predict the effects on the
portfolio and the economy more broadly, but we will continue to work
with our portfolio companies as they navigate this challenging
environment and provide further follow on funding where appropriate.
Stepping back from the immediate concerns, we feel it is important to
remind our investors of the quality and maturity of the entrepreneurial
ecosystem in the UK and across Europe. We remain excited by the
opportunities presenting themselves, and our more recent focus on the
Future of Health, the Future of Money and Deep Tech has allowed us to
deepen our knowledge of and access to some of the most exciting and
pioneering companies within this ecosystem. Regardless of sector,
technology remains a driving force behind many businesses as they look
to disrupt, replace or reinvent industries. The UK remains one of the
most exciting markets to start, scale and exit a technology business,
despite some of the ongoing political uncertainty following the UK's
exit from the European Union in January 2020 and the Coronavirus
pandemic. While some companies can struggle in such an environment, many
can also successfully seize the opportunities afforded to small
businesses such as those in the Titan portfolio, with many ultimately
able to thrive where other larger incumbents may stumble. However, as is
always the case when investing in small businesses, it is likely the
portfolio will see some turbulence as well as success, as has been seen
during the course of the last fourteen months. Ensuring Titan's investee
companies continue to have sufficient funds to drive for growth and
capitalize on any appropriate new prospects, as well as providing
support through our own team and wider network of experienced advisors
continues to be important to the potential future success of our
companies.
Often early stage companies need more than just access to funding to
achieve such success. As detailed in our report, we offer a suite of
assistance which is highly valued by the teams seeking funding for their
ambitious ideas, and not only helps add value to the existing companies
in the portfolio in a practical way, but also helps attract and secure
some of the best investment opportunities in the market. As a result,
we're proud to be known as a trusted and valued partner for
entrepreneurs intent on building global businesses valued in the
billions, and this in turn helps Titan win competitive investment
opportunities. Whilst there are a number of portfolio companies which
have been very successful already and delivered significant value to
Titan and its shareholders, we are confident many more have the
potential to at least equal that success.
Valuation Methodology
Overview
Each unquoted portfolio investment will be valued at least twice a year,
usually at the Titan interim and year end dates (30 June and 31 December,
respectively), although this may vary according to fund raising
schedules. The portfolio investments are valued in accordance with
International Private Equity and Venture Capital (IPEV) valuation
guidelines - December 2018. This means the investments are valued at
fair value. The value of the unquoted portfolio investments will be
combined with the value of the quoted portfolio investments, together
with the value of the Company's other assets, investments and
liabilities to generate the overall Net Asset Value of the Company.
General Principles
For all investment companies, we will consider several triangulated
valuation methodologies including recent funding rounds, relevant
trading comparables, recent M&A comparables and investment comparables
to inform the company valuation, and may adjust up or down accordingly.
For companies that have raised funds within the previous 12 months of
the valuation point, the price of the most recent funding round may be
an indicator of fair value. However, it may be appropriate to update
this value, even if less than 12 months since the last investment, if
this value is no longer deemed to be fair value. This may include both
downward revisions reflecting underperformance, or valuation increases.
The investment costs and amounts invested in the year for each portfolio
company are tabulated below.
Investment Portfolio
Amount invested
Investment cost in
as at the year ending
31 December 2019 31 December 2019
Fixed asset investments Sector (GBP'000)(1) (GBP'000)
---------------------------------- -------------------- ----------------- -----------------
LHE Holdings Limited (trading Fintech and
as Property Partner) Insurance 13,600 1,243
---------------------------------- -------------------- ----------------- -----------------
AI, Robotics &
Wave Optics Limited Hardware 13,576 -
---------------------------------- -------------------- ----------------- -----------------
Amplience Limited(3) Business Services 13,499 -
---------------------------------- -------------------- ----------------- -----------------
Sofar Sounds Limited Consumer and Social 10,918 3,214
---------------------------------- -------------------- ----------------- -----------------
Fintech and
Bought By Many Limited Insurance 9,978 3,954
---------------------------------- -------------------- ----------------- -----------------
Permutive Inc. Business Services 9,839 7,975
---------------------------------- -------------------- ----------------- -----------------
Digital Shadows Ltd Security 9,702 3,479
---------------------------------- -------------------- ----------------- -----------------
Streethub Limited (trading
as Trouva) Consumer and Social 9,233 3,757
---------------------------------- -------------------- ----------------- -----------------
Zenith Holding Company Limited(2) Other 8,963 -
---------------------------------- -------------------- ----------------- -----------------
AI, Robotics &
UltraSoC Technologies Limited Hardware 8,856 495
---------------------------------- -------------------- ----------------- -----------------
Ometria Limited Business Services 8,800 8,800
---------------------------------- -------------------- ----------------- -----------------
Life Science,
Katalyst Inc Health & Wellbeing 8,769 3,949
---------------------------------- -------------------- ----------------- -----------------
DePop Limited(3) Consumer and Social 8,766 3,766
---------------------------------- -------------------- ----------------- -----------------
Appear Here Limited Business Services 8,509 4,695
---------------------------------- -------------------- ----------------- -----------------
Uniplaces Limited Consumer and Social 8,434 813
---------------------------------- -------------------- ----------------- -----------------
Fintech and
CurrencyFair Limited(3) Insurance 8,381 830
---------------------------------- -------------------- ----------------- -----------------
Zynstra Limited Business Services 8,317 -
---------------------------------- -------------------- ----------------- -----------------
Life Science,
Big Health Limited Health & Wellbeing 8,269 4,993
---------------------------------- -------------------- ----------------- -----------------
Sourceable Limited (trading
as Swoon Editions) Consumer and Social 8,148 1,191
---------------------------------- -------------------- ----------------- -----------------
AI, Robotics &
Smartkem Limited Hardware 7,768 2,994
---------------------------------- -------------------- ----------------- -----------------
Chronext AG Consumer and Social 7,708 -
---------------------------------- -------------------- ----------------- -----------------
PLU&M limited Consumer and Social 7,500 4,000
---------------------------------- -------------------- ----------------- -----------------
AI, Robotics &
Surrey NanoSystems Limited Hardware 6,918 -
---------------------------------- -------------------- ----------------- -----------------
Life Science,
Antidote Technologies Ltd Health & Wellbeing 6,650 1,554
---------------------------------- -------------------- ----------------- -----------------
Chiaro Technology Limited Life Science,
(trading as Elvie)(3) Health & Wellbeing 6,417 1,820
---------------------------------- -------------------- ----------------- -----------------
Communications
Iovox Limited and Infrastructure 6,263 991
---------------------------------- -------------------- ----------------- -----------------
Fintech and
Token.IO Ltd Insurance 6,221 1,384
---------------------------------- -------------------- ----------------- -----------------
Context-Based 4Casting (C-B4)
Ltd Business Services 6,096 -
---------------------------------- -------------------- ----------------- -----------------
Communications
Conversocial Limited and Infrastructure 6,064 1,898
---------------------------------- -------------------- ----------------- -----------------
Communications
Origami Energy Limited(3) and Infrastructure 5,533 -
---------------------------------- -------------------- ----------------- -----------------
Artesian Solutions Limited Business Services 5,481 -
---------------------------------- -------------------- ----------------- -----------------
Seatfrog UK Holdings Limited Consumer and Social 5,300 1,800
---------------------------------- -------------------- ----------------- -----------------
Cazoo Limited(3) Consumer and Social 5,000 5,000
---------------------------------- -------------------- ----------------- -----------------
Systum Inc Business Services 5,000 5,000
---------------------------------- -------------------- ----------------- -----------------
Allplants Limited Consumer and Social 5,000 -
---------------------------------- -------------------- ----------------- -----------------
Fintech and
Elliptic Enterprises Limited Insurance 4,913 2,829
---------------------------------- -------------------- ----------------- -----------------
Communications
OpenSignal Inc and Infrastructure 4,862 -
---------------------------------- -------------------- ----------------- -----------------
Life Science,
Michelson Diagnostics Limited Health & Wellbeing 4,795 -
---------------------------------- -------------------- ----------------- -----------------
Casual Speakers Limited
(trading as Jolt) Consumer and Social 4,770 1,604
---------------------------------- -------------------- ----------------- -----------------
Impatients N.V. (trading Life Science,
as MyTomorrows) Health & Wellbeing 4,705 954
---------------------------------- -------------------- ----------------- -----------------
Picsoneye Segmentation Innovation AI, Robotics &
Limited (trading as Pixoneye) Hardware 4,700 500
---------------------------------- -------------------- ----------------- -----------------
Olio Exchange Limited Consumer and Social 4,500 1,000
---------------------------------- -------------------- ----------------- -----------------
The Faction Collective SA
(trading as Faction) Consumer and Social 4,461 1,494
---------------------------------- -------------------- ----------------- -----------------
Memrise Inc Consumer and Social 4,375 -
---------------------------------- -------------------- ----------------- -----------------
Secret Escapes Limited(3,4) Consumer and Social 4,256 -
---------------------------------- -------------------- ----------------- -----------------
BridgeU Corporation Business Services 4,195 -
---------------------------------- -------------------- ----------------- -----------------
Patch Gardens Limited Consumer and Social 4,172 2,072
---------------------------------- -------------------- ----------------- -----------------
Eve Sleep Plc Consumer and Social 4,151 1,758
---------------------------------- -------------------- ----------------- -----------------
Life Science,
HeyGleam Health & Wellbeing 4,000 4,000
---------------------------------- -------------------- ----------------- -----------------
AI, Robotics &
AudioTelligence Limited Hardware 4,000 4,000
---------------------------------- -------------------- ----------------- -----------------
Glofox Business Services 3,812 3,812
---------------------------------- -------------------- ----------------- -----------------
Life Science,
Medisafe Project Limited Health & Wellbeing 3,664 778
---------------------------------- -------------------- ----------------- -----------------
Communications
Semafone Limited and Infrastructure 3,594 -
---------------------------------- -------------------- ----------------- -----------------
AI, Robotics &
vHive Tech Ltd Hardware 3,500 3,500
---------------------------------- -------------------- ----------------- -----------------
Behaviometrics AB Security 3,336 -
---------------------------------- -------------------- ----------------- -----------------
AI, Robotics &
Dogtooth Technologies Limited Hardware 3,278 -
---------------------------------- -------------------- ----------------- -----------------
Unmade Ltd Consumer and Social 3,000 3,000
---------------------------------- -------------------- ----------------- -----------------
Fintech and
By Miles Limited Insurance 2,872 2,872
---------------------------------- -------------------- ----------------- -----------------
Ecrebo Limited(3) Business Services 2,857 -
---------------------------------- -------------------- ----------------- -----------------
Fintech and
Mosaic Smart Data Limited Insurance 2,780 2,780
---------------------------------- -------------------- ----------------- -----------------
Fintech and
Dead Happy Limited Insurance 2,700 1,200
---------------------------------- -------------------- ----------------- -----------------
AI, Robotics &
Metrasens Limited Hardware 2,688 -
---------------------------------- -------------------- ----------------- -----------------
Life Science,
e-Therapeutics plc Health & Wellbeing 2,415 -
---------------------------------- -------------------- ----------------- -----------------
Communications
Inrupt Inc. and Infrastructure 2,372 2,372
---------------------------------- -------------------- ----------------- -----------------
AI, Robotics &
Bowman Power Limited Hardware 2,305 -
---------------------------------- -------------------- ----------------- -----------------
Fluidly Limited Business Services 2,299 899
---------------------------------- -------------------- ----------------- -----------------
Communications
Trafi Limited(3) and Infrastructure 2,288 -
---------------------------------- -------------------- ----------------- -----------------
Pop Global Limited (trading
as We Got Pop) Business Services 2,100 600
---------------------------------- -------------------- ----------------- -----------------
Streetbees.com Limited Business Services 2,086 259
---------------------------------- -------------------- ----------------- -----------------
CRED Investment Holdings Fintech and
Limited Insurance 2,000 2,000
---------------------------------- -------------------- ----------------- -----------------
AI, Robotics &
Phoelex Ltd Hardware 1,525 -
---------------------------------- -------------------- ----------------- -----------------
Mush Limited Consumer and Social 1,500 -
---------------------------------- -------------------- ----------------- -----------------
Thirdeye Labs Limited Security 1,500 1,500
---------------------------------- -------------------- ----------------- -----------------
Segura Systems Limited(3) Business Services 1,470 -
---------------------------------- -------------------- ----------------- -----------------
Fintech and
Aire Labs Limited Insurance 1,332 1,332
---------------------------------- -------------------- ----------------- -----------------
Fintech and
Multiply AI Limited Insurance 1,283 283
---------------------------------- -------------------- ----------------- -----------------
Life Science,
GTN Ltd Health & Wellbeing 800 -
---------------------------------- -------------------- ----------------- -----------------
AI, Robotics &
Slamcore Limited Hardware 750 -
---------------------------------- -------------------- ----------------- -----------------
Fintech and
M10 Insurance 626 626
---------------------------------- -------------------- ----------------- -----------------
Intrepid Owls Limited (trading
as Rest-Less) Consumer and Social 550 -
---------------------------------- -------------------- ----------------- -----------------
Excession Technologies Limited Security 298 -
---------------------------------- -------------------- ----------------- -----------------
AI, Robotics &
Phasor Inc. Hardware 250 -
---------------------------------- -------------------- ----------------- -----------------
Total fixed asset investments 418,157 127,618
-------------------------------------------------------- ----------------- -----------------
(1) Investment cost reflects the amount invested into each investee
company from Titan's 1 -- 5 before the 2014 merger and from Titan after
the merger. This is different to the book cost which includes the
holding gains/(losses) on assets which transferred from Titan's 1, 3, 4
and 5 to Titan 2 (now Titan) during the 2014 merger, as Titan purchased
these assets at fair value.
(2) Owns stakes in Secret Escapes Limited and Calastone Limited.
(3) These companies have also been invested into by other funds managed
by Octopus.
(4) The figures for Secret Escapes relate to Titan's direct investment
only.
Review of Investments
Listed below are details of Titan's ten largest investments by value.
Zenith Holding Company Limited
Zenith Holding Company has a holding in Octopus Zenith LP, an Octopus
managed fund, which holds stakes in Calastone and Secret Escapes, which
were formerly held by Titan 1-3 prior to the merger of the five Titan
VCTs in November 2014. Following the merger, Zenith Holding Company
became a 100% owned investment of Titan.
-- Founded in 2007, Calastone is a financial technology
company. Its mission is to make markets friction-free
by connecting trading partners through its global
fund transaction network. More than 1,400 customers
in 34 countries of domicile are now processing
domestic and cross border transactions via Calastone,
benefitting from the cost and risk reduction
opportunities transaction automation can offer. Its
purpose is to use smart technology solutions and
industry collaboration to enable global distribution,
reduce operational risk, and enhance client
profitability. Calastone is part of Fintech50, ranked
in The Sunday Times Hiscox Tech Track 100 and is one
of the UK Government Tech City's Future Fifty
companies, recognised for high growth and
transforming industries. Calastone has offices in
London, Luxembourg, Hong Kong, Sydney, Taiwan and
Singapore.
-- Founded in 2009, Secret Escapes is an online travel
club. Members of Secret Escapes may purchase luxury
holidays at significant discounts. Members have the
opportunity to purchase for a limited period of time
(less than seven days) but can choose when to stay at
a particular hotel over an extended period of time.
The business has offices in London, Sweden, Spain,
Poland, Germany, Singapore and the US, has over 50
million customers globally and operates in 21
countries.
-- Following the sale of Zenith's remaining shares in
ZPG in February 2017, Titan no longer has an
investment in ZPG.
-- Following the sale of Zenith's remaining shares in
Graze.com in February 2019, Titan no longer has an
investment in Graze.com.
------------------------------------------------------------------------------
Country of incorporation: The Cayman Islands
Initial investment date: June 2013
Investment cost: GBP8,963,000
Valuation: GBP45,116,000
Last submitted accounts: 31 October 2018
Loss before tax: GBP(7,000)
Net assets: GBP21,000
------------------------------------------- -------------------------------
Amplience Limited
Amplience helps retailers generate profitable growth through improved
online shopping experiences using smartphones, tablet and desktop computers.
The Amplience Media Platform allows retailers to create campaign and
product media that increases customer engagement, sales and average
order values.
Over 200 leading UK, European and US brands, including Argos, Tesco,
Shop Direct Group (Littlewoods.com), LK Bennett, Jimmy Choo, Tom Ford,
Labelux and Halfords, report significant benefits from using Amplience.
These include saving up to 90% on campaign and product media production,
conversion rate increases of up to 200% and a 20% increase in average
order values.
-----------------------------------------------------------------------------------
Initial investment date: December 2010
Investment cost: GBP13,499,000
Valuation: GBP44,880,000
Last submitted group accounts: 30 June 2019
Consolidated turnover: GBP8,914,292
Consolidated loss before GBP(9,222,618)
tax: GBP(2,370,881)
Consolidated net assets:
-------------------------------------------------- -----------------------------
Secret Escapes
Secret Escapes provides an online vacation booking service that aims
to be an exciting, enjoyable and stress-free experience. It handpicks
the best hotels and holidays, making exclusive offers available to
its members. The company guarantees that its 'flash sale' prices, which
are available for limited periods, will be better than anywhere else
online during that period. The business operates in the US, Europe
and Asia.
The Company has been impacted by the Coronavirus worldwide pandemic
being in the travel industry. The management team is reacting well
despite the challenging situation and the Portfolio Manager has taken
the measures to reflect this in the latest valuation.
------------------------------------------------------------------------------
Initial investment date: April 2011
Investment cost: GBP4,256,000
Valuation: GBP38,937,000
Last submitted accounts: 31 December 2018
Consolidated turnover: GBP121,227,000
Consolidated loss before GBP(9,975,000)
tax: Not disclosed
Consolidated net assets:
-------------------------------------------- ------------------------------
Bought By Many
Bought By Many is an award-winning insurtech company with a specific
focus on providing better pet insurance for everyone. Bought by Many
designed their unique policies based on more than 40,000 comments from
pet owners. Their stream-lined customer experience and commitment to
treating customers fairly has resulted in them being voted the UK's
most trusted pet insurance company.
-----------------------------------------------------------------------------
Initial investment date: October 2016
Investment cost: GBP9,978,000
Valuation: GBP26,360,000
Last submitted accounts: 31 March 2019
Turnover: Not disclosed
Loss before tax: Not disclosed
Net assets: GBP10,233,204
---------------------------------------------- ---------------------------
DePop Limited
DePop is a free to download mobile and tablet app on which you can
sell unique items including art, vintage and luxury fashion, illustrations,
books, records and trainers.
----------------------------------------------------------------------------------
Initial investment date: January 2018
Investment cost: GBP8,766,000
Valuation: GBP23,883,000
Last submitted accounts: 31 December 2018
Turnover: Not disclosed
Loss before tax: Not disclosed
Net assets: GBP10,073,389
-------------------------------------------- ----------------------------------
Wave Optics Limited
WaveOptics designs a critical component, known as a waveguide, for
Augmented Reality (AR) glasses. AR superimposes a computer-generated
image on a user's view of the real world. AR glasses are used in industrial
applications, such as on-site maintenance and repairs, manufacturing
and logistics. But it is hoped there will be a large consumer market
once the technology is sufficiently mature.
----------------------------------------------------------------------------------
Initial investment date: December 2015
Investment cost: GBP13,576,000
Valuation: GBP23,078,000
Last submitted accounts: 31 December 2018
Turnover: GBP1,367,465
Loss before tax: GBP(10,970,644)
Net assets: GBP18,928,133
-------------------------------------------- ----------------------------------
Cazoo
Cazoo's aim is to deliver the best selection, value and experience
for used car buyers. It will provide consumers with a transparent,
no-pressure buying environment where they can simply and seamlessly
buy and finance a used car entirely online.
--------------------------------------------------------------------------
Initial investment date: November 2018
Investment cost: GBP5,000,000
Valuation: GBP21,250,000
Last submitted accounts: None
Turnover: Not disclosed
Profit before tax: Not disclosed
Net assets: Not disclosed
-------------------------------------------- --------------------------
Conversocial
Conversocial is a customer engagement platform for 'always-on' mobile,
social consumers. The company is delivering a unified approach to new
types of customer interaction by enabling hundreds of global brands,
to answer questions from people instantly. This helps companies to
build stronger relationships with their customers. Customers now expect
brands to engage across multiple channels, such as Facebook Messenger,
Twitter, SMS, Instagram, Google Play Store Reviews and YouTube. Conversocial
allows brands to do this seamlessly through one single platform.
-----------------------------------------------------------------------------------
Initial investment date: May 2013
Investment cost: GBP6,064,000
Valuation: GBP18,559,000
Last submitted accounts: 31 December 2018
Turnover: Not disclosed
Profit before tax: Not disclosed
Net assets: GBP16,551,214
-------------------------------------------- -----------------------------------
Permutive
Permutive collects user event data and uses it to target specific marketing
messages, or to trigger specific actions. For example, if a user has
clicked on three links, it then prompts them to sign up for an email
subscription. Permutive is currently targeting large online publishers,
in addition to e-commerce businesses where there is pressure to increase
marketing efficiency.
----------------------------------------------------------------------------------
Initial investment date: May 2015
Investment cost: GBP9,839,000
Valuation: GBP15,830,000
Last submitted group accounts: 31 December 2018
Consolidated turnover: Not disclosed
Consolidated loss before Not disclosed
tax: GBP(3,442,929)
Consolidated net assets:
------------------------------------------------ ------------------------------
Trouva
Trouva is an online tool for products that are sold at independent
retailers' shops. It offers services to reserve online, pick up in-store,
as well as same-day and nationwide delivery. The company aggregates
and displays local independent retailers across London, allowing consumers
to browse the retailers' offerings. This is done under the Trouva consumer
brand.
---------------------------------------------------------------------------------
Initial investment date: December 2013
Investment cost: GBP9,234,000
Valuation: GBP13,871,000
Last submitted accounts: 31 July 2018
Turnover: Not disclosed
Profit before tax: Not disclosed
Net liabilities: GBP302,627
----------------------------------------------- ------------------------------
If you have any questions on any aspect of your investment, please call
one of the Octopus team on 0800 316 2295.
Octopus Ventures Team
16 April 2020
NON-STATUTORY ACCOUNTS
The financial information set out below does not constitute the
Company's statutory accounts for the periods ended 31 December 2019 or
31 October 2018 but is derived from those accounts. Statutory accounts
for the year ended 31 October 2018 have been delivered to the Registrar
of Companies and statutory accounts for the period ended 31 December
2019 will be delivered to the Registrar of Companies in due course. The
Auditor has reported on those accounts; their reports were (i)
unqualified, (ii) did not include a reference to any matters to which
the Auditor drew attention by way of emphasis without qualifying their
report and (iii) did not contain a statement under Section 498 (2) or
(3) of the Companies Act 2006. The text of the Auditor's reports can be
found in the Company's full Annual Report and Accounts at
https://www.globenewswire.com/Tracker?data=Tl3OmNx-jFvqbvyETGgTsqXzTtUHqD1TMnz66WDai5dpVhGeJJDly1WB26BKMIJ4l6WngRlomSSO8sEM322cwwvfegOTlM5P7uEm9FssxF-6D6vHrWwdpErlkWpclq8v
www.octopusinvestments.com
Income Statement
Period to 31 December
2019 Year to 31 October 2018
-------------------------------- ---------------------------------- ----------------------------------
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Gains on disposal of
fixed asset investments -- 15,626 15,626 -- 2,985 2,985
-------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
(Losses)/gains on disposal
of current asset investments -- (368) (368) -- 3,155 3,155
-------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Fixed asset investments
holding gains -- 88,302 88,302 -- 29,749 29,749
-------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Current asset investments
holding gains/(losses) -- 1,006 1,006 -- (7,161) (7,161)
-------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Investment income 1,535 -- 1,535 595 -- 595
-------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Investment management
fees (784) (14,890) (15,674) (2,734) (8,202) (10,936)
-------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Performance fee -- (16,965) (16,965) -- (2,805) (2,805)
-------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Other expenses (6,058) - (6,058) (4,256) -- (4,256)
-------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
FX translation - (124) (124) -- (95) (95)
-------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
(Loss)/profit before
tax (5,307) 72,587 67,280 (6,395) 17,626 11,231
-------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Tax -- -- -- -- -- --
-------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
(Loss)/profit after
tax (5,307) 72,587 67,280 (6,395) 17,626 11,231
-------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
(Loss)/earnings per
share -- basic and diluted (0.6)p 8.6p 8.0p (1.1)p 2.9p 1.8p
-------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
-- The 'Total' column of this statement is the profit and loss
account of the Company; the supplementary revenue return and capital
return columns have been prepared under guidance published by the
Association of Investment Companies.
-- All revenue and capital items in the above statement derive from
continuing operations.
-- The Company has only one class of business and derives its income
from investments made in shares and securities and from bank and money
market funds.
Titan has no other comprehensive income for the period.
Balance Sheet
As at 31 December
2019 As at 31 October 2018
----------------------------- ---------------------- -----------------------
GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- ---------- ---------- ---------- -----------
Fixed asset investments 640,109 434,897
----------------------------- ---------- ---------- ---------- -----------
Current assets:
----------------------------- ---------- ---------- ---------- -----------
Money market funds 149,210 72,679
----------------------------- ---------- ---------- ---------- -----------
Corporate bonds 80,325 61,581
----------------------------- ---------- ---------- ---------- -----------
Applications cash* 5,565 57,679
----------------------------- ---------- ---------- ---------- -----------
Cash at bank 52,763 42,210
----------------------------- ---------- ---------- ---------- -----------
Debtors 2,985 2,850
----------------------------- ---------- ---------- ---------- -----------
290,848 236,999
----------------------------- ---------- ---------- ---------- -----------
Current liabilities (25,117) (62,494)
----------------------------- ---------- ---------- ---------- -----------
Net current assets 265,731 174,505
----------------------------- ---------- ---------- ---------- -----------
Net assets 905,840 609,402
----------------------------- ---------- ---------- ---------- -----------
Share capital 95,161 65,467
----------------------------- ---------- ---------- ---------- -----------
Share premium 559,972 299,804
----------------------------- ---------- ---------- ---------- -----------
Capital redemption reserve 4,074 2,056
----------------------------- ---------- ---------- ---------- -----------
Special distributable
reserve 106,915 169,637
----------------------------- ---------- ---------- ---------- -----------
Capital reserve realised (45,705) 11,245
----------------------------- ---------- ---------- ---------- -----------
Capital reserve unrealised 209,089 79,428
----------------------------- ---------- ---------- ---------- -----------
Revenue reserve (23,666) (18,235)
----------------------------- ---------- ---------- ---------- -----------
Total equity shareholders'
funds 905,840 609,402
----------------------------- ---------- ---------- ---------- -----------
NAV per share 95.2p 93.1p
----------------------------- ---------- ---------- ---------- -----------
(*) Cash held but not yet allotted.
The statements were approved by the Directors and authorised for issue
on 16 April 2020 and are signed on their behalf by:
John Hustler
Chairman
Company No: 6397765
Statement of Changes in Equity
Capital Special Capital Capital
redemption distributable reserve reserve Revenue
Share capital Share premium reserve reserve(*) realised(*) unrealised reserve(*) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
As at 01 November
2017 44,899 114,404 1,071 211,122 2,284 70,668 (11,745) 432,703
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Comprehensive
income for the
year:
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Management fees
allocated as
capital expenditure -- -- -- -- (8,202) -- -- (8,202)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Current year
gain on disposal
of fixed asset
investments -- -- -- -- 2,985 -- -- 2,985
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Current year
gain on disposal
of current asset
investments -- -- -- -- 3,155 -- -- 3,155
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Gains on fair
value of fixed
asset investments -- -- -- -- -- 29,749 -- 29,749
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Losses on fair
value of current
asset investments -- -- -- -- -- (7,161) -- (7,161)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Loss after tax -- -- -- -- -- -- (6,395) (6,395)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Performance fee -- -- -- -- (2,805) -- -- (2,805)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Total comprehensive
income for the
year -- -- -- -- (4,867) 22,588 (6,395) 11,326
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Contributions
by and distributions
to owners:
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Share issue (includes
DRIS)** 21,553 185,400 -- -- -- -- -- 206,953
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Repurchase of
own shares (985) -- 985 (8,889) -- -- -- (8,889)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Dividends paid
(includes DRIS) -- -- -- (32,596) -- -- -- (32,596)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Total contributions
by and distributions
to owners 20,568 185,400 985 (41,485) -- -- -- 165,468
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Other movements:
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Prior year fixed
asset gains now
realised -- -- -- -- 8,868 (8,868) -- --
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Prior year current
asset gains now
realised -- -- -- -- 4,960 (4,960) -- --
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
FX translation -- -- -- -- -- -- (95) (95)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Total other movements -- -- -- -- 13,828 (13,828) (95) (95)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Balance as at
31 October 2018 65,467 299,804 2,056 169,637 11,245 79,428 (18,235) 609,402
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
(*) Reserves are available for distribution.
(**) This is net of allotment fees of GBP9.9m.
Capital Special Capital Capital
redemption distributable reserve reserve Revenue
Share capital Share premium reserve reserve(*) realised(*) unrealised reserve(*) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
As at 01 November
2018 65,467 299,804 2,056 169,637 11,245 79,428 (18,235) 609,402
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Comprehensive
income for the
year:
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Management fees
allocated as
capital expenditure -- -- -- -- (14,890) -- -- (14,890)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Current year
gain on disposal
of fixed asset
investments -- -- -- -- 15,626 -- -- 15,626
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Current year
losses on disposal
of current asset
investments -- -- -- -- (368) -- -- (368)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Gains on fair
value of fixed
asset investments -- -- -- -- -- 88,302 -- 88,302
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Gains on fair
value of current
asset investments -- -- -- -- -- 1,006 -- 1,006
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Loss after tax -- -- -- -- -- -- (5,307) (5,307)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Performance fee -- -- -- -- (16,965) -- -- (16,965)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Total comprehensive
income for the
year -- -- -- -- (16,597) 89,308 (5,307) 67,404
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Contributions
by and distributions
to owners:
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Share issue (includes
DRIS)** 31,712 260,168 -- -- -- -- -- 291,880
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Repurchase of
own shares (2,018) -- 2,018 (17,597) -- -- -- (17,597)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Dividends paid
(includes DRIS) -- -- -- (45,125) -- -- -- (45,125)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Total contributions
by and distributions
to owners 29,694 260,168 2,018 (62,722) -- -- -- 229,158
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Other movements:
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Prior year fixed
asset losses
now realised -- -- -- -- (38,010) 38,010 -- --
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Prior year current
asset losses
now realised -- -- -- -- (2,343) 2,343 -- --
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
FX translation -- -- -- -- -- -- (124) (124)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Total other movements -- -- -- -- (40,353) 40,353 (124) (124)
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
Balance as at
31 December 2019 95,161 559,972 4,074 106,915 (45,705) 209,089 (23,666) 905,840
---------------------- ------------- ------------- ----------- -------------- ------------ ----------- ----------- --------
(*) Reserves are available for distribution.
(**) This is net of allotment fees of GBP6.6m.
Cash Flow Statement
Period to 31 December Year to 31 October
2019 2018
GBP'000 GBP'000
------------------------------------ ----------------------- --------------------
Reconciliation of profit to cash
flows from operating activities
------------------------------------ ----------------------- --------------------
Profit before tax 67,280 11,231
------------------------------------ ----------------------- --------------------
(Increase)/decrease in debtors (135) 2,971
------------------------------------ ----------------------- --------------------
Increase/(decrease) in creditors 14,737 (321)
------------------------------------ ----------------------- --------------------
Losses/(gains) on disposal of
current assets 368 (3,155)
------------------------------------ ----------------------- --------------------
(Gains)/losses on valuation of
current assets (1,006) 7,161
------------------------------------ ----------------------- --------------------
Gains on disposal of fixed asset
investments (15,626) (2,985)
------------------------------------ ----------------------- --------------------
Gains on valuation of fixed asset
investments (88,302) (29,749)
------------------------------------ ----------------------- -------------------- Outflow from operating activities (22,684) (14,847) ------------------------------------ ----------------------- -------------------- Cash flows from investing activities ------------------------------------ ----------------------- -------------------- Purchase of current asset investments (79,319) (46,000) ------------------------------------ ----------------------- -------------------- Sale of current asset investments 61,213 84,897 ------------------------------------ ----------------------- -------------------- Purchase of fixed asset investments (127,618) (122,739) ------------------------------------ ----------------------- -------------------- Sale of fixed asset investments* 26,334 22,367 ------------------------------------ ----------------------- -------------------- Outflow from investing activities (119,390) (61,475) ------------------------------------ ----------------------- -------------------- Cash flows from financing activities ------------------------------------ ----------------------- -------------------- Movement in applications account (52,114) 18,407 ------------------------------------ ----------------------- -------------------- Dividends paid (net of DRIS) (33,187) (24,178) ------------------------------------ ----------------------- -------------------- Purchase of own shares (17,597) (8,889) ------------------------------------ ----------------------- -------------------- Net proceeds from share issues 279,942 198,535 ------------------------------------ ----------------------- -------------------- Inflow from financing activities 177,044 183,875 ------------------------------------ ----------------------- -------------------- Increase in cash and cash equivalents 34,970 107,553 ------------------------------------ ----------------------- -------------------- Opening cash and cash equivalents 172,568 65,015 ------------------------------------ ----------------------- -------------------- Closing cash and cash equivalents 207,538 172,568 ------------------------------------ ----------------------- -------------------- Cash and cash equivalents comprise ------------------------------------ ----------------------- -------------------- Cash at bank 52,763 42,210 ------------------------------------ ----------------------- -------------------- Applications cash 5,565 57,679 ------------------------------------ ----------------------- -------------------- Money market funds 149,210 72,679 ------------------------------------ ----------------------- -------------------- Closing cash and cash equivalents 207,538 172,568 ------------------------------------ ----------------------- -------------------- *This includes the distribution from Zenith of GBP2.16 million following the part disposal of Graze.
(END) Dow Jones Newswires
April 16, 2020 12:51 ET (16:51 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
1 Year Octopus Titan Vct Chart |
1 Month Octopus Titan Vct Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
