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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Thames Ventures Vct 2 Plc | LSE:D467 | London | Ordinary Share | GB00BWX53D91 | DP67 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% | 24.00 | 0.00 | 00:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Investment Advice | -8.67M | -10.16M | -0.1030 | -9.37 | 23.65M |
From Dec 2023 to Dec 2024
TIDMD467
Thames Ventures VCT 2 plc
LEI: 21380035MV1VRYEXPR95
Half Yearly Results
21 December 2023
Financial Highlights
Hot Features
Premium
Audited
31
Unaudited Unaudited March
30 September 2023 30 September 2022 2023
pence pence pence
Ventures Share pool
---------------------- ------------------ ------------------ ----------
Net Asset Value per
Ventures Share 50.1 68.5 59.4
---------------------- ------------------ ------------------ ----------
Cumulative
distributions 9.25 8.0 8.0
---------------------- ------------------ ------------------ ----------
Total Return per
Ventures Share 59.35 76.5 67.4
---------------------- ------------------ ------------------ ----------
Healthcare Share pool
---------------------- ------------------ ------------------ ----------
Net Asset Value per
Healthcare Share 52.3 71.7 61.6
---------------------- ------------------ ------------------ ----------
Cumulative
distributions 10.0 8.75 8.75
---------------------- ------------------ ------------------ ----------
Total Return per
Healthcare Share 62.3 80.45 70.35
---------------------- ------------------ ------------------ ----------
AIM Share pool
---------------------- ------------------ ------------------ ----------
Net Asset Value per
AIM Share 100.7 99.0 101.1
---------------------- ------------------ ------------------ ----------
Cumulative
distributions - - -
---------------------- ------------------ ------------------ ----------
Total Return per AIM
Share 100.7 99.0 101.1
---------------------- ------------------ ------------------ ----------
DSO D Share pool
---------------------- ------------------ ------------------ ----------
Net Asset Value per
DSO D Share 2.7 2.6 2.6
---------------------- ------------------ ------------------ ----------
Cumulative
distributions 102.0 102.0 102.0
---------------------- ------------------ ------------------ ----------
Adjusted for
Performance Incentive
estimate(1) - - -
---------------------- ------------------ ------------------ ----------
Total Return per DSO D
Share 104.7 104.6 104.6
---------------------- ------------------ ------------------ ----------
DP67 Share pool
---------------------- ------------------ ------------------ ----------
Net Asset Value per
DP67 Share 25.4 24.4 24.8
---------------------- ------------------ ------------------ ----------
Cumulative
distributions (since
original launch) 67.8 67.8 67.8
---------------------- ------------------ ------------------ ----------
Total Return per DP67
Share 93.2 92.2 92.6
---------------------- ------------------ ------------------ ----------
1. Based on Total Return to Shareholders at 30 September 2023, no
Performance Incentive is expected to become due to management.
Chairman's Statement
Introduction
I present the Company's unaudited Half-Yearly Financial Report for the six months ended 30 September 2023.
Following an eventful year ended 31 March 2023, with the main Investment Manager changing from Downing LLP to Foresight Group LLP, the six-month period ended 30 September 2023 has been more settled from a management perspective. However, performance during the period has been disappointing, with the UK investment environment continuing to remain challenging.
Although the UK has managed to avoid a recession so far, real GDP growth has been sluggish. Inflation has remained stubbornly high, which has led to a series of interest rate increases, albeit a recent sharp decline in UK inflation rates might provide a glimpse of hope. However, heightened nervousness in the financial markets and recent changes to banks' capital adequacy rules are beginning to reduce the level of funding available for smaller businesses. Understandably, consumer and business confidence in the UK remains fragile, and this has been reflected in some of the portfolio performance for the six-month period ended 30 September 2023.
Evergreen Share pool review
Ventures Share pool
During the period, the Ventures Share pool made one follow-on investment of GBP0.2 million and received total exit proceeds of GBP2.2 million. This is against a backdrop of continuing challenges in the UK economy. The Ventures Share class Total Return stood at 59.35p as at 30 September 2023. This is a decrease of 8.05p or 11.9% in Total Return over the period, after adjusting for the dividend of 1.25p per Ventures Share, paid on 29 September 2023.
The NAV decrease over the period is predominantly driven by regulatory factors, with the VCT unable to participate in the recent funding round for Cornelis Networks Inc. due to restrictions resulting from the VCT rules around the gross assets test of the portfolio company. Limitless Limited also suffered due to the lead investor remaining on the UK sanctions list. As a result, both companies experienced valuation reductions in the period.
In June, we exited Imagen returning GBP1.7 million, with a further distribution of GBP138k received post period end. There was also a distribution of capital reserves following the sale of Maverick Pubs (Holdings) Limited real estate development company. The investment in Downing Strategic Micro-Cap Investment Trust plc fell in value during the period, broadly in line with the trend for small cap stocks.
A more detailed review of the Ventures Share pool is included in the Ventures Investment Manager's Report on pages 5 to 8.
Healthcare Share pool
The Healthcare Share pool continues to be managed by Downing LLP, although we hope to move the management to Foresight in due course to align with the Ventures share pool. During the period, the Healthcare Share pool made one follow-on investment of GBP0.25 million in Cambridge Respiratory Innovations Limited (now trading as Tidal Sense). Proceeds of GBP0.4 million were generated from two exits completed in the period, DiA Imaging Analysis Limited and an immaterial partial sale of shares in listed company, GENinCode plc.
As at 30 September 2023, the Healthcare Share pool Total Return stood at 62.3p. This is a decrease of 8.05p or 11.4% in Total Return over the period, after adjusting for the dividend of 1.25p per Healthcare Share, paid on 29 September 2023.
The NAV decrease over the period is largely attributable to the fall in the valuation of the two companies which are marked to market: Arecor Therapeutics plc and GENinCode plc. Based on their quoted share prices as at 30 September 2023, Arecor and GENinCode showed unrealised valuation losses totalling GBP1.2 million for the period. Share market liquidity for both businesses is limited, amplifying the AIM market share price falls and volatility as the general economic climate deteriorates. Additionally, Congenica Limited has been written down to nil resulting in an unrealised valuation loss of GBP865,000. This is again driven by regulatory factors, with the VCT unable to participate in a funding round which closed following the period-end, materially impacting the Company's position. The remaining investments in the Healthcare portfolio showed a net increase in valuation of GBP0.2 million for the period.
A more detailed review of the Healthcare Share pool is included in the Investment Manager's Report on pages 9 to 10.
AIM Share pool
Downing continues to provide management services in respect of the AIM Share pool for an interim period.
At the period end, NAV stood at 100.7p. Total Return at 30 September 2023 stood at 100.7p per Share, a 0.4p or 0.4% decrease from 101.1p as at 31 March 2023.
The deal flow for VCT qualifying AIM raises has been disappointing as IPOs have dried up and market sentiment has not supported new fundraises, against a backdrop of deteriorating general economic conditions. However, the Manager continues to see all new qualifying secondary and imminent IPOs and is using this time to conduct enhanced due diligence on potential investments. There were no additions or disposals in the period.
Planned Exit Share pools
As with the AIM Share pool, Downing LLP continues to provide investment management services in respect of the investments held by the planned exit share pools.
DSO D Share pool
The exit from the two final assets in this Share pool completed during the period with GBP39,000 of liquidation proceeds received.
At the period end, NAV stood at 2.7p. Total Return at 30 September 2023 stood at 104.7p per Share, an increase of 0.1p or 0.1% from 104.6p as at 31 March 2023.
A more detailed review of the DSO D Share pool is included in the Investment Manager's Report on pages 13 to 14.
DP67 Share pool
The DP67 Share pool holds two remaining investments of value. At the period end, NAV stood at 25.4p. Total Return at 30 September 2023 stood at 93.2p per Share, an increase of 0.6p or 0.6% from 92.6p as at 31 March 2023.
The DP67 Share pool has significant exposure to the hospitality sector and progress towards achieving an exit continues to be slow in the aftermath of the pandemic and a particularly challenging economic backdrop. Having said this, the portfolio is performing well and, for this reason, the Manager is hopeful that it will be able to secure exits in 2024, giving the market a chance to recover.
A more detailed review of the DP67 Share pool is included in the Investment Manager's Report on pages 15 to 16.
Dividends
On 29 September 2023, the Company paid dividends in respect of the year ended 31 March 2023 of 1.25p per Ventures Share and 1.25p per Healthcare Share. This brings the total dividends paid to date on each of the Ventures and Healthcare Share pools, to 9.25p and 10.0p respectively.
Dividends in respect of the Ventures and Healthcare Share classes are paid once a year, typically in September. Both share classes target a dividend level of at least 4% of NAV per annum, but as I reported in the 31 March 2023 annual report, the final dividends paid in September 2023 were reduced from their normal levels, following a lower than expected fund raise last year. The Board continues to take a prudent view and be cautious with the Company's uninvested funds.
For the DSO D Share pool, a final dividend will be declared shortly to return funds to Shareholders and the share pool will then be wound up in the coming months. For the DP67 Share pool, the next and final dividends will be declared once further realisations have taken place.
The AIM Share class has no target dividend and is unlikely to pay any dividend in these early years of its life.
Special Administration of the Company's Custodian of Quoted Assets
Since March 2022, the Company has used IBP Markets Limited ("IBP") as custodian for its quoted investments, with exposure across the Ventures, Healthcare and AIM Share classes. Appointing a custodian is a requirement of the FCA, and IBP is an FCA authorised and regulated wholesale broker, providing custody services and access to equity and fixed income securities for non-retail clients (which includes the Company). On 13 October 2023, the FCA published a supervisory notice under section 55L(3)(a) of the Financial Services and Markets Act 2000, imposing certain restrictions on IBP. On the same date, IBP applied to the High Court and special administrators were appointed. The special administrators have yet to publish an estimated outcome statement and therefore the full impact is currently unknown. The Manager is actively collaborating with the special administrators to reach a resolution and will communicate with Shareholders when further information becomes available. Whilst this is being resolved, the Company is unable to trade on the quoted market.
The Manager is in regular dialogue with the special administrators. The outcome remains subject to change particularly as additional claims may be made on custody assets and client money and there remains a risk to the positions. However, considering the information made available to the Company at the date of this report, there is currently little indication that there will be a materially adverse impact to Shareholders with respect to the custody assets. The position with respect to client money remains to be determined, but total cash at IBP relates to the Healthcare Share pool and represented 0.2% of NAV as at 30 September.
Share buybacks
As noted in the most recent annual report, the Board does not expect to undertake share buybacks in the Ventures, Healthcare and AIM share pools for a period while discussions continue with the Manager as to how the Company can best achieve its objectives for Shareholders. We hope to be in a position to notify Shareholders of future plans shortly, once clarity is obtained on the IBP situation noted above.
As the focus for the two remaining Planned Exit Share pools is on returning funds to Shareholders via distributions, the Company will not undertake any further buybacks in respect of those share classes.
Fundraising
With the uncertainty brought about by the special administration of the custodian of the Company's quoted stocks, we have not been in a position to launch a fundraise so far this year. Once clarity is achieved on the IBP situation (hopefully in the coming weeks), the Board will be able to consider options for fundraising and will communicate this with Shareholders.
Sunset clause
A "sunset clause" applies to the current approved scheme for EIS and VCT tax reliefs. This clause provides that income tax relief will expire on subscriptions made for VCT shares on or after 6 April 2025, unless the legislation is amended to make the scheme permanent, or the "sunset clause" is extended.
The Chancellor confirmed in the autumn statement that the government remains committed to ensuring early-stage, innovative companies have access to the investment they need to grow and develop. As a result it was announced on 22 November 2023 that the government will legislate to extend the Enterprise Investment Scheme ('EIS') and Venture Capital Trusts ('VCT') to 2035.
Change of Company Secretary and Registered Office
I am pleased to announce that Foresight Group LLP was appointed as Company Secretary effective from 12 September 2023, succeeding Grant Whitehouse. I would like to take this opportunity to thank Grant for his many years of dedication and service to the Company.
Outlook
Although there are now significant challenges for businesses in most sectors, the Board believes that young growth companies still have the ability to offer attractive rewards to investors. The Board hopes to see the Ventures investment team continue to leverage the full benefits of the regional office network and other resources of Foresight Group and to identify suitable new potential investments to further diversify the portfolios, while also closely monitoring and supporting the existing investments.
I look forward to updating all Shareholders in my statement with the Annual Report, which we expect to publish in July 2024.
Sir Aubrey Brocklebank Bt.
Chairman
21 December 2023
Investment Manager's Report - Ventures Share Pool
Introduction
We present our review of the investment portfolio for the Ventures Share pool for the six months to 30 September 2023.
This Investment Manager's Report is split into two sections comprising this overview and a review of the portfolio. Overview of Liquidity Investments within the Ventures Share class is detailed on page 6.
Where the Ventures Share pool has invested alongside the Healthcare Share pool, further valuation commentary can be found within the Investment Manager's Report for the Healthcare Share pool, on page 9.
Net Asset Value and results
As at 30 September 2023, the NAV of a Ventures Share stood at 50.1p, a decrease of 8.05p from 31 March 2023, after adding back the dividend of 1.25p which was paid during the period.
The return on ordinary activities for the Ventures Share pool for the period was a loss of GBP4.3 million, comprising a revenue loss of GBP0.3 million and a capital loss of GBP4.0 million.
The Total Return to Shareholders as at 30 September 2023 was 59.35p.
Portfolio Overview
As at 30 September 2023, the Ventures Share pool held a portfolio of 34 ventures investments and one liquidity investment, with a total carrying value of GBP21.7 million.
Portfolio Performance
Overall, several larger valuation uplifts in the Ventures Share pool were outweighed by a number of valuation decreases during the period, resulting in a net valuation decrease of GBP4.1 million across the portfolio.
The carrying value of the liquidity investment has been adjusted to reflect its quoted price as at 30 September 2023. This resulted in a valuation decrease of GBP131,000 for the half-year period.
Investment activity
There was one investment made during the period. GBP0.2 million was invested into an existing portfolio company, Cambridge Touch Technologies Limited, a company developing pressure sensitive multi touch technology.
There were no investments made into new companies during the period, however, shortly after the period-end, GBP0.1 million was invested in a new company, Inoviv Limited. Inoviv has a long-term data play in drug discovery and trials, having developed novel precision biomarker technology which helps pharmaceutical customers run drug trials more efficiently. This investment will enable Inoviv to further accelerate their commercial plans, including facilitating the development of tests across more diseases.
Exits
There were three full exits in the period, being Imagen Limited, a Software as a Service ("SaaS") video management platform which holds both current and archive footage for major sporting organisations and news outlets. The company was sold for initial cash consideration of GBP1.7 million at a gain over cost of GBP0.7 million. There is also GBP0.2 million of deferred consideration taking total proceeds to GBP1.9 million and a total gain over cost of GBP0.9 million.
There was also GBP450,000 received in relation to the exit of Maverick Pubs (Holdings) Limited. This was a distribution of capital reserves following the sale of this real estate development company. Maverick Pubs (Holdings) was seeking to build quality freehold pubs in and around London, however it was adversely impacted by the COVID pandemic, being forced to shut sites, and the subsequent impact of the UK economic downturn. Costs invested were GBP1.0 million, therefore losses realised were GBP550,000.
Finally, Live Better With Limited was formally dissolved on 25 July 2023.
Portfolio valuation
During the period, the portfolio of the Ventures Share pool decreased in value by a net movement of GBP3.8 million. Nine companies in the portfolio recorded a combined valuation gain of GBP1.0 million in the period. However this was offset by a number of companies reporting combined valuation losses totalling GBP4.8 million. This is driven by regulatory reasons in relation to Cornelis and Limitless (further detail below) and by the ongoing challenges for businesses operating in the UK with associated restriction on access to capital. The GBP1.0 million of uplift in valuation over the period is driven by the following investments.
Carbice Limited (GBP354,000), the developer of a suite of products based on its carbon material called Carbice Carbon which is primarily used as thermal management solutions to enable greater thermal conductivity, has continued to progress well during the period, with recurring revenues continuing to grow and continued progress on fundraising.
FundingXchange Limited (GBP353,000), an SME funding platform and B2B technology provider which enables online lending. After a challenging twelve months, this company has negotiated additional funding to deliver its growth plan. The valuation of this investment has therefore been uplifted to reflect this.
Cambridge Touch Technologies Limited (GBP116,000), a company developing pressure sensitive multi touch technology. The value of this investment was uplifted to reflect the valuation of the round which completed during the period.
Offsetting these valuation uplifts, are a number of valuation decreases across the portfolio.
Cornelis Networks, Inc. (GBP2.8 million) is a technology provider delivering purpose-built high-performance fabrics for High Performance Computing, Analytics and Artificial Intelligence to leading commercial, scientific, academic, and government organizations. The valuation decreased to reflect a funding round which closed in the period in which Thames Ventures VCT 2 Plc was unable to participate due to the company not meeting the gross assets test to be VCT-qualifying. Not participating led to a significant dilution of the Company's stake which has been reflected in the movement in valuation.
Limitless Limited (GBP625,000), the developer of a crowdsourced customer service platform, was subject to a valuation reduction as a result of one of the co-investors being on the UK Sanctions List giving rise to a funding risk.
Congenica Limited (GBP605,000), has developed a genomics-based diagnostic decision support platform which helps doctors identify rare diseases in patients. This company is co-invested by the Ventures and Healthcare Share class. Further valuation commentary can be found within the Investment Manager's Report for the Healthcare Share pool, on page 9.
CommerceIQ Inc. (GBP394,000), the pioneer in helping brands win on retail ecommerce channels. Their unified platform applies machine learning and automation across marketing, supply chain, and sales operations to help brands gain market share profitably. This valuation movement is simply a reflection of current market conditions. The company continues to perform well growing revenues during the period and supported by a very strong balance sheet.
There are a number of smaller valuation movements which partially offset one another for the half-year period, ultimately resulting in an additional net decrease in value of GBP243,000.
Liquidity investments
The Ventures Share pool holds one non-qualifying investment in Downing Strategic Micro-Cap Investment Trust plc ("DSM"). This decreased in value by GBP131,000 over the period. Whilst this is disappointing, it is broadly in line with market conditions, and the valuation decrease continues to narrow over the prior period.
Outlook
The six months to 30 September 2023 has experienced challenging market conditions, with inflation and global interest rates still high, which has had an inevitable impact on the portfolio.
Further to this, there have been a number of events impacting the valuation of investments in the Ventures portfolio which have been unavoidable, as noted with Cornelis Networks and Limitless above.
Despite this, we continue to see improved performance from certain more resilient portfolio companies and anticipate this will continue. Further to this, the economic situation has recently seen its first glimpse of hope with the UK's annual inflation rate falling sharply in October, its lowest level for two years. This being said, we are cognisant that the market has been, and will continue to be, challenging for younger companies to use capital efficiently in order to generate growth. The portfolio companies that survive this economic turbulence may be better placed than beforehand, due to tighter cost and cash management.
We continue to add the skills and experience to our team that is suited to these ongoing market conditions in terms of supporting portfolio companies as well as converting new investment opportunities.
Thames Ventures VCT Team
Foresight Group LLP
21 December 2023
Review of Investments -- Ventures Share Pool
The following investments were held at 30 September 2023:
Cost as Valuation
at as at 30 Additions Valuation
30 September September / (disposals) movement % of
2023 2023 in period in period portfolio
Portfolio of investments GBP'000 GBP'000 GBP'000s GBP'000
Virtual Class Limited (Third
Space Learning) 1,053 2,088 - (111) 8.1%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Ayar Labs Inc 764 1,867 - 27 7.2%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Rated People Limited 1,582 1,743 - (78) 6.8%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Hackajob Limited 1,284 1,654 - (11) 6.4%
---------------------------------- ------------- ---------- -------------- ---------- ----------
CommerceIQ Inc 1,749 1,337 - (394) 5.2%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Ecstase Limited (t/a ADAY) 1,000 1,000 - - 3.9%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Masters of Pie Limited 886 928 - 52 3.6%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Cambridge Touch Technologies
Limited 1,159 921 200 116 3.6%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Trinny London Limited 219 897 - (37) 3.5%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Parsable Inc 766 764 - 11 3.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Carbice Corporation Inc 656 760 - 354 2.9%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Upp Technologies Group Limited 1,136 756 - (167) 2.9%
---------------------------------- ------------- ---------- -------------- ---------- ----------
FVRVS Limited (t/a Fundamental
VR) 787 678 - - 2.6%
---------------------------------- ------------- ---------- -------------- ---------- ----------
FundingXchange Limited 1,050 629 - 353 2.4%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Arecor Therapeutics plc^ 418 625 - (197) 2.4%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Vivacity Labs Limited 493 490 - - 1.9%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Bulbshare Limited 249 449 - 22 1.7%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Maestro Media Limited 340 419 - - 1.6%
---------------------------------- ------------- ---------- -------------- ---------- ----------
MIP Discovery Limited 300 300 - - 1.2%
---------------------------------- ------------- ---------- -------------- ---------- ----------
DSTBTD Limited (Trading as
Distributed) 275 275 - - 1.1%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Audioscenic Limited 200 200 - - 0.8%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Destiny Pharma plc^ 500 159 - 71 0.6%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Cornelis Networks Inc 1,402 115 - (2,759) 0.4%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Limitless Technology Limited 757 78 - (625) 0.3%
---------------------------------- ------------- ---------- -------------- ---------- ----------
London City Shopping Centre
Limited* 118 - - - 0.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Glisser Limited 200 - - - 0.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Odysian (Holdings) Limited 387 - - - 0.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Lineten Limited 400 - - - 0.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Congenica Limited 734 - - (605) 0.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Hummingbird Technologies Limited 750 - - - 0.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Channel Mum Limited 757 - - - 0.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Ormsborough Limited 900 - - - 0.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Empiribox Limited 1,563 - - - 0.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Lignia Wood Company Limited 1,778 - - - 0.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Imagen Limited - - (1,746) 43 0.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Maverick Pubs (Holdings) Limited - - (450) 6 0.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Live Better With Limited - - - - 0.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
26,612 19,132 (1,996) (3,929) 74.1%
--------------------------------- ------------- ---------- -------------- ---------- ----------
Liquidity investment
--------------------------------- ------------- ---------- -------------- ---------- ----------
Downing Strategic Micro-Cap
Investment Trust plc*^ 4,269 2,570 - (131) 10.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
30,881 21,702 (1,996) (4,060) 84.1%
--------------------------------- ------------- ---------- -------------- ---------- ----------
Cash at bank and in hand 4,105 15.9%
---------------------------------- ------------- ---------- -------------- ---------- ----------
Total investments 25,807 100.0%
---------------------------------- ------------- ---------- -------------- ---------- ----------
*non-qualifying investment
^listed and traded on the London Stock Exchange
Investment movements for the period ended 30 September 2023
Cost
Additions GBP'000
Cambridge Touch Technologies Limited 200
------------------------------------- -------
200
------------------------------------- -------
Valuation Valuation
at movement in Realised
Cost 31 March 2023 Proceeds period gain/(loss)
Disposals GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Imagen Limited 1,000 1,703 1,746 43 746
------------------------- ------- -------------- -------- ------------ ------------
Maverick Pubs (Holdings)
Limited 1,000 444 450 6 (550)
------------------------- ------- -------------- -------- ------------ ------------
Live Better With Limited 1,211 - - - (1,211)
------------------------- ------- -------------- -------- ------------ ------------
3,211 2,147 2,196 49 (1,015)
------------------------- ------- -------------- -------- ------------ ------------
Investment Manager's Report -- Healthcare Share Pool
1.
Introduction
We present a review of the investment portfolio and activity for the Healthcare Share pool over the six-month period to 30 September 2023. As noted earlier in this report, although Foresight Group is now the primary Investment Manager for the Company, Downing LLP continues to be the Investment Manager of the Healthcare Share pool.
Net Asset Value and results
As at 30 September 2023, the NAV of the Healthcare Shares stood at 52.3p per Share, a decrease of 8.05p per Share from 31 March 2023 after adding back the dividend of 1.25p which was paid during the period. The majority of the fall was from the decrease in the value of Congenica Limited and quoted investments in the portfolio.
The loss on ordinary activities for the Healthcare Share pool for the period was GBP2.0 million, comprising a revenue loss of GBP150,000 and a capital loss of GBP1.9 million. The Total Return to Healthcare Shareholders, as at 30 September 2023, was 62.3p per Share.
Portfolio Overview
As at 30 September 2023, the Healthcare Share pool held a portfolio of 13 ventures investments and one liquidity investment, with a combined value of GBP10.3 million.
The valuation movements during the period are discussed in more detail in the following sections of this Investment Manager's Report.
Portfolio Performance
There were a number of valuation movements in the Healthcare ventures portfolio during the period, resulting in a net valuation decrease of GBP1.9 million.
The carrying value of the liquidity investment has been adjusted to reflect the quoted prices as at 30 September 2023. This resulted in a valuation decrease of GBP22,000 for the period.
Investment activity
During the period, GBP250,000 was invested in Cambridge Respiratory Innovations Limited, an existing portfolio company which provides AI-driven respiratory diagnostic and monitoring technologies.
Exits
DiA Imaging Analysis Limited was exited during the period returning GBP393,000 to the Company and we continue to recognise GBP103,000 of deferred consideration related to the exit.
A total of 234,676 GENinCode plc shares have been sold during the period, leaving 6,132,642 remaining at 30 September 2023. The remaining shares have experienced a decrease in value from GBP0.17 per share to GBP0.10 per share. The combined result is a fall in net valuation of GBP438,000. This is 75% off its 2021 high and representative of the malaise within small-cap healthcare stocks since 2021.
Portfolio valuation
There were a number of valuation movements within the portfolio over the period.
Congenica Limited is behind plan as a result of the slower than expected uptake of genomic sequencing and analysis as a routine part of healthcare. Post period-end, Congenica Limited secured funding which resulted in the Company's position being materially impacted. The Company was unable to participate as Congenica Limited is no longer VCT-qualifying. As a result, the valuation of the holding has been written down to GBPnil, a reduction of GBP865,000 in the period.
Arecor Therapeutics plc is quoted on AIM and valued at GBP1.90 per share at 30 September 2023. This is a decrease of GBP0.60 per share over the period causing a fall in valuation of GBP724,000. The stock is 50% lower than its post-IPO highs in 2021. Despite this, we remain impressed by progress and expect upcoming clinical data to provide a platform for a substantial rerating.
Following the completion of the sale of Adaptix Limited to Avingtrans Plc, the VCT has now become a holder of Avingtrans Plc shares. The Avingtrans Plc shares are quoted on the AIM market and valued at GBP4.10 per share providing an uplift in valuation of GBP237,000 in the period.
Destiny Pharma Plc, which is listed on the AIM market, is valued at GBP0.50 per share at 30 September 2023. This is an increase of GBP0.23 per share over the period, which results in an uplift in valuation of GBP108,000. During the period both the chair and CEO were changed, and markets appear to have viewed this positively.
Liquidity investments
The Healthcare Share pool holds a non-qualifying investment in Downing Strategic Micro-Cap Investment Trust plc ("DSM"). This decreased in value by GBP22,000 over the period.
Outlook
The market environment for the small companies that make up the Healthcare portfolio continues to be challenging, putting pressure on both the ability to build investment rounds and the valuation of those rounds that do come together. There is no evidence of this changing as we enter 2024 and as a result, we are working closely with management teams and existing co-investors in the portfolio companies to ensure that sufficient capital is available to allow these companies to continue to grow.
Downing LLP
21 December 2023
Review of Investments -- Healthcare Share Pool
The following investments were held at 30 September 2023:
Valuation
Cost as at as at 30 Valuation
30 September September Additions Movement % of
2023 2023 / (disposals) in period portfolio
Portfolio of investments GBP'000 GBP'000 GBP'000 GBP'000
Arecor Therapeutics plc^ 1,533 2,291 - (724) 18.4%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
Open Bionics Limited 1,000 1,428 - - 11.4%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
FVRVS Limited (t/a Fundamental
VR) 1,324 1,169 - - 9.4%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
Cambridge Respiratory Innovations
Limited 1,050 1,050 250 - 8.4%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
Invizius Limited 927 998 - - 8.0%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
Closed Loop Medicine Limited 650 650 - - 5.2%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
GENinCode plc^ 1,158 583 (30) (438) 4.7%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
The Electrospinning Company Limited 478 544 - - 4.4%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
Qkine Limited 303 379 - - 3.0%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
MIP Discovery Limited 300 300 - - 2.4%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
Destiny Pharma plc^ 750 239 - 108 1.9%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
Adaptix Limited 1,056 237 - 237 1.9%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
Congenica Limited 1,184 - - (865) 0.0%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
DiA Imaging Analysis Limited - - (393) (171) 0.0%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
Live Better With Limited - - - - 0.0%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
11,713 9,868 (173) (1,853) 79.1%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
Liquidity Investments
----------------------------------------- ------------- ---------- -------------- ---------- ----------
Downing Strategic Micro-Cap Investment
Trust plc*^ 729 439 - (22) 3.5%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
12,442 10,307 (173) (1,875) 82.6%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
Cash at bank and in hand 2,172 17.4%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
Total investments 12,479 100.0%
----------------------------------------- ------------- ---------- -------------- ---------- ----------
*non-qualifying investment
^listed and traded on the London Stock Exchange
Investment movements for the period ended 30 September 2023
Cost
Additions GBP'000
Cambridge Respiratory Innovations Limited 250
------------------------------------------ -------
250
------------------------------------------ -------
Valuation Valuation
at 31 March movement Realised
Cost 2023 Proceeds in period gain/(loss)
Disposals GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
DiA Imaging
Analysis 415 564 393 (171) (22)
------------------- ------- ------------ -------- ---------- ------------
GENinCode plc^ 44 39 30 (9) (14)
------------------- ------- ------------ -------- ---------- ------------
Live Better With
Limited 1,106 - - - (1,106)
------------------- ------- ------------ -------- ---------- ------------
1,565 603 423 (180) (1,142)
------------------- ------- ------------ -------- ---------- ------------
^listed and traded on the London Stock Exchange
Investment Manager's Report - AIM Share Pool
Introduction
Further to our report included in the Annual Report, there has been no new activity during the six -month period ended 30 September 2023. The AIM Share pool holds two investments in a money market and income fund, which were made to generate some yield on the Share pool's assets while options on the longer-term deployment of the funds is being considered.
Net Asset Value
As at 30 September 2023, the NAV of an AIM Share stood at 100.7p, a small decrease of 0.4p as running costs slightly outweighed the yield on the investments over the period.
Outlook
As mentioned in the Chairman's Statement, the AIM Share Class holds its two investments with the Company's main custodian, IBP Markets Limited, where a special administrator has been appointed by the FCA to review the business and restrictions have been put in place on investment transactions. While this is ongoing, any Board decisions about the future strategy of the Share class have been put on hold. Currently VCT-qualifying opportunities in the AIM market remain limited and the share pool is very small. No new investments are being sought while the situation with the custodian persists and before conclusions on the future strategy have been reached.
Downing LLP
21 December 2023
Review of Investments -- AIM Share PoolDP67
The following investments were held at 30 September 2023:
Valuation
Cost as as at 30 Valuation
at 30 September September Additions movement % of
2023 2023 / (disposals) in period portfolio
Portfolio of investments GBP'000 GBP'000 GBP'000 GBP'000
BlackRock Cash D Acc* 1,157 1,199 - 27 43.7%
--------------------------- ---------------- ---------- -------------- ---------- ----------
Vanguard FTSE U.K. Equity
Income Index Fund* 643 721 - - 26.3%
--------------------------- ---------------- ---------- -------------- ---------- ----------
1,800 1,920 - 27 70.0%
-------------------------- ---------------- ---------- -------------- ---------- ----------
Cash at bank and in hand 826 30.0%
--------------------------- ---------------- ---------- -------------- ---------- ----------
Total investments 2,746 100.0% --------------------------- ---------------- ---------- -------------- ---------- ----------
*non qualifying investment
Investment movements for the period ended 30 September 2023
There were no additions or disposals during the period.
Investment Manager's Report -- DSO D Share Pool
Introduction
Proceeds from the two remaining investments in this Share Pool were received in the six-month period ended 30 September 2023. The focus is now on returning funds to DSO D Shareholders ahead of formally winding up the Share pool.
Net Asset Value and results
The Net Asset Value ("NAV") per DSO D Share at 30 September 2023, stood at 2.7p, an increase from 2.6p at 31 March 2023.
Total Return stands at 104.7p per Share compared to initial cost to Shareholders, net of income tax relief, of 70.0p per Share.
The gain on ordinary activities after taxation for the period was GBP15,000, comprising a revenue loss of GBP7,000 and a capital gain of GBP22,000.
Ventures investments
As at 31 March 2023, the DSO D Share pool held two investments, Pearce and Saunders Limited and Pearce and Saunders DevCo Limited, with a total value of GBP16,000. The final pub was sold some time ago and an Insolvency Practitioner was appointed to distribute funds via a liquidation.
During the six-month period ended 30 September 2023, final distributions were made returning GBP39,000 in liquidation proceeds from Pearce & Saunders Limited. There were no further distributions from Pearce and Saunders DevCo Limited. Both investments have been treated as disposed at the period end.
Outlook
Having now realised the remaining investments in the DSO D Share pool, the focus is on returning funds to Shareholders ahead of formally winding up the Share pool. The process of completing this is underway and a final distribution will be paid to Shareholders in early 2024.
Foresight Group LLP
21 December 2023
Review of investments - DSO D Share Pool
The following investments were held at 30 September 2023:
Valuation
Cost as as at 30 Valuation
at 30 September September Additions movement % of
2023 2023 / (disposals) in period portfolio
Portfolio of investments GBP'000 GBP'000 GBP'000 GBP'000
Pearce and Saunders
Limited - - (39) 39 0.0%
-------------------------- ---------------- ---------- -------------- ---------- ----------
Pearce and Saunders DevCo
Limited* - - - (16) 0.0%
-------------------------- ---------------- ---------- -------------- ---------- ----------
- - (39) 23 0.0%
-------------------------- ---------------- ---------- -------------- ---------- ----------
Cash at bank and in hand 167 100.0%
-------------------------- ---------------- ---------- -------------- ---------- ----------
Total investments 167 100.0%
-------------------------- ---------------- ---------- -------------- ---------- ----------
* non-qualifying investment
Investment movements for the period ended 30 September 2023
There were no additions during the period.
Valuation Valuation
at 31 March movement Realised
Cost 2023 Proceeds in period gain/(loss)
Disposals GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Pearce & Saunders Ltd 255 - 39 39 (216)
-------------------------- ------- ------------ -------- ---------- ------------
Pearce and Saunders Devco
Limited* 19 16 - (16) (19)
-------------------------- ------- ------------ -------- ---------- ------------
274 16 39 23 (235)
-------------------------- ------- ------------ -------- ---------- ------------
* non-qualifying investment
Investment Manager's Report - DP67 Share Pool
Introduction
The process of realising the investments and returning funds to DP67 Shareholders continues. The market remains challenging and therefore the process continues to be slow, especially with the remaining assets all in the hospitality sector.
Net Asset Value and results
The Net Asset Value ("NAV") per DP67 Share at 30 September 2023 stood at 25.4p, an increase of 0.6p over the period. Total Return stands at 93.2p per DP67 Share, compared to initial cost to Shareholders, net of income tax relief, of 70.0p per Share.
The gain on ordinary activities after taxation for the period was GBP68,000, comprising a revenue gain of GBP77,000 and a capital loss of GBP9,000.
We continue to try to work towards achieving optimal returns for Shareholders from the remaining investments in the DP67 Share pool.
Ventures investments
As at 30 September 2023, the DP67 Share pool held a portfolio of two active investments, with a total value of GBP1.1 million.
Portfolio activity
During the six-month period ended 30 September 2023, Yamuna Renewables Limited was formally removed from the Share pool following the dissolution of the Company. This investment was held at GBPnil value.
There were no realisations during the period.
Portfolio valuation
The DP67 portfolio valuation was unchanged during the period.
Cadbury House Holdings is performing well but the current market for hotel and conference centre assets is subdued. Therefore, the Manager recognises that it is best to be patient in pursuit of a good valuation and cash realisation. The DP67 Share pool's holding value of this investment as at 30 September 2023 is GBP0.8 million, in line with 31 March 2023 valuation, with interest accrued of GBP1.1 million, which is recognised in full. This has provided the Share pool with GBP97,000 of income during the six-month period ended 30 September 2023.
Outlook
The challenge continues to be achieving an exit from Cadbury House Holdings Limited at an acceptable valuation. We strongly believe it is in the best interests of Shareholders not to sell at undervalue even if this means the final exit takes longer, which is proving to be the case.
The process of placing Gatewales Limited into liquidation has begun and liquidation proceeds, equal to the holding value, are anticipated to be received once this is complete.
Final dividends will be paid once the remaining realisations have taken place.
Foresight Group LLP
21 December 2023
Review of Investments -- DP67 Share PoolDP67
The following investments were held at 30 September 2023:
Valuation
Cost as as at 30 Valuation
at 30 September September Additions movement % of
2023 2023 / (disposals) in period portfolio
Portfolio of investments GBP'000 GBP'000 GBP'000 GBP'000
Cadbury House Holdings Ltd 1,409 791 - - 42.0%
----------------------------- ---------------- ---------- -------------- ---------- ----------
Gatewales Limited* 344 344 - - 18.3%
----------------------------- ---------------- ---------- -------------- ---------- ----------
London City Shopping Centre
Limited^ 99 - - - 0.0%
----------------------------- ---------------- ---------- -------------- ---------- ----------
Yamuna Renewables Limited - - - - 0.0%
----------------------------- ---------------- ---------- -------------- ---------- ----------
1,852 1,135 - - 60.3%
---------------------------- ---------------- ---------- -------------- ---------- ----------
Cash at bank and in hand 748 39.7%
----------------------------- ---------------- ---------- -------------- ---------- ----------
Total investments 1,883 100.0%
----------------------------- ---------------- ---------- -------------- ---------- ----------
*partially qualifying investment
^non qualifying investment
Investment movements for the period ended 30 September 2023
There were no additions during the period.
Valuation Valuation
at 31 March movement Realised
Cost 2023 Proceeds in period gain/(loss)
Disposals GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Yamuna Renewables
Limited 400 - - - (400)
------------------- ------- ------------ -------- ---------- ------------
400 - - - (400)
------------------- ------- ------------ -------- ---------- ------------
Unaudited Income Statement
for the six months ended 30 September 2023
Year
ended
Six months ended Six months ended 31 Mar
30 Sep 2023 30 Sep 2022 2023
Revenue Capital Total Revenue Capital Total Total
Company GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Income 120 - 120 158 - 158 284
------------------------------------ ------- ------- ------- ---------------- ------- ------ ----------------
Losses on investments - (5,621) (5,621) - (17) (17) (6,307)
------------------------------------ ------- ------- ------- ------- ------- ------- ------ ------- -------
120 (5,621) (5,501) 158 (17) 141 (6,023)
------------------------------------ ------- ------- ------- ------- ------- ------- ------ ------- -------
Investment management
fees (262) (262) (524) (168) (168) (336) (944)
------------------------------------ ------- ------- ------- ------- ------- ------- ------ ------- -------
Other expenses (218) - (218) (512) - (512) (689)
------------------------------------ ------- ------- ------- ------- ------- ------- ------ ------- -------
Loss on ordinary activities
before tax (360) (5,883) (6,243) (522) (185) (707) (7,656)
------------------------------------ ------- ------- ------- ------- ------- ------- ------ ------- -------
Tax on total comprehensive
income and ordinary
activities - - - - - - -
------------------------------------ ------- ------- ------- ------- ------- ------- ------ ------- -------
Loss attributable to
equity Shareholders,
being total comprehensive
income for the period (360) (5,883) (6,243) (522) (185) (707) (7,656)
------------------------------------ ------- ------- ------- ------- ------- ------- ------ ------- -------
Basic and diluted return/(loss)
per Share:
------------------------------------ ------- ------- ------- ------- ------- ------- ------ ------- -------
Ventures Share (0.5)p (7.6)p (8.1)p (0.5)p 3.9p 3.4p (6.5)p
------------------------------------ ------- ------- ------- ------- ------- ------- ------ ------- -------
Healthcare Share (0.7)p (7.9)p (8.6)p (0.7)p (9.1)p (9.8)p (21.4)p
------------------------------------ ------- ------- ------- ------- ------- ------- ------ ------- -------
AIM Share (0.9)p 0.5p (0.4)p (0.5)p (0.2)p (0.7)p 3.9p
------------------------------------ ------- ------- ------- ------- ------- ------- ------ ------- -------
DSO D Share (0.1)p 0.3p 0.2p 0.3p (0.3)p - (0.1)p
------------------------------------ ------- ------- ------- ------- ------- ------- ------ ------- -------
DP67 Share 0.7p (0.1)p 0.6p (1.4)p (1.0)p (2.4)p (2.0)p
------------------------------------ ------- ------- ------- ------- ------- ------- ------ ------- -------
A Statement of Total Recognised Gains and Losses has not been prepared as all gains and losses are recognised in the Income Statement as noted above.
Unaudited Income Statement
Analysed by Share pool
for the six months ended 30 September 2023
Year
ended
Six months ended Six months ended 31 Mar
30 Sep 2023 30 Sep 2022 2023
Revenue Capital Total Revenue Capital Total Total
Ventures Share pool GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Income 23 - 23 27 - 27 64
--------------------------- ------- ------- ------- ------- ------- ------- -------
(Losses)/gains on
investments - (3,899) (3,899) - 1,993 1,993 (2,401)
--------------------------- ------- ------- ------- ------- ------- ------- -------
23 (3,899) (3,876) 27 1,993 2,020 (2,337)
--------------------------- ------- ------- ------- ------- ------- ------- -------
Investment management
fees (151) (151) (302) (95) (95) (190) (556)
--------------------------- ------- ------- ------- ------- ------- ------- -------
Other expenses (127) - (127) (160) - (160) (280)
--------------------------- ------- ------- ------- ------- ------- ------- -------
(Loss)/profit on ordinary
activities before
tax (255) (4,050) (4,305) (228) 1,898 1,670 (3,173)
--------------------------- ------- ------- ------- ------- ------- ------- -------
Tax on total comprehensive
income and ordinary
activities - - - - - - -
--------------------------- ------- ------- ------- ------- ------- ------- -------
(Loss)/profit attributable
to equity Shareholders,
being total comprehensive
income for the period (255) (4,050) (4,305) (228) 1,898 1,670 (3,173)
--------------------------- ------- ------- ------- ------- ------- ------- -------
Year
ended
Six months ended Six months ended 31 Mar
30 Sep 2023 30 Sep 2022 2023
Revenue Capital Total Revenue Capital Total Total
Healthcare Share pool GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Income - - - - - - 4
---------------------------- ------- ------- ------- ------- ------- ------- -------
Losses on investments - (1,772) (1,772) - (1,876) (1,876) (3,857)
---------------------------- ------- ------- ------- ------- ------- ------- -------
- (1,772) (1,772) - (1,876) (1,876) (3,853)
---------------------------- ------- ------- ------- ------- ------- ------- -------
Investment management
fees (89) (89) (178) (62) (62) (124) (322)
---------------------------- ------- ------- ------- ------- ------- ------- -------
Other expenses (61) - (61) (85) - (85) (115)
---------------------------- ------- ------- ------- ------- ------- ------- -------
Loss on ordinary activities
before tax (150) (1,861) (2,011) (147) (1,938) (2,085) (4,290)
---------------------------- ------- ------- ------- ------- ------- ------- -------
Tax on total comprehensive
income and ordinary
activities - - - - - - -
---------------------------- ------- ------- ------- ------- ------- ------- -------
Loss attributable
to equity Shareholders,
being total comprehensive
income for the period (150) (1,861) (2,011) (147) (1,938) (2,085) (4,290)
---------------------------- ------- ------- ------- ------- ------- ------- -------
Year
ended
Six months ended Six months ended 31 Mar
30 Sep 2023 30 Sep 2022 2023
Revenue Capital Total Revenue Capital Total Total
AIM Share pool GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Income - - - - - - -
--------------------------- ------- ------- ------- ------- ------- ------- -------
Gains on investments - 27 27 - - - 93
--------------------------- ------- ------- ------- ------- ------- ------- -------
- 27 27 - - - 93
--------------------------- ------- ------- ------- ------- ------- ------- -------
Investment management
fees (12) (12) (24) (6) (6) (12) (36)
--------------------------- ------- ------- ------- ------- ------- ------- -------
Other expenses (13) - (13) (8) - (8) (21)
--------------------------- ------- ------- ------- ------- ------- ------- -------
Loss/(profit) on ordinary
activities before
tax (25) 15 (10) (14) (6) (20) 36
--------------------------- ------- ------- ------- ------- ------- ------- -------
Tax on total comprehensive
income and ordinary
activities - - - - - - -
--------------------------- ------- ------- ------- ------- ------- ------- -------
Loss/(profit) attributable
to equity Shareholders,
being total comprehensive
income for the period (25) 15 (10) (14) (6) (20) 36
--------------------------- ------- ------- ------- ------- ------- ------- -------
Year
ended
Six months ended Six months ended 31 Mar
30 Sep 2023 30 Sep 2022 2023
Revenue Capital Total Revenue Capital Total Total
DSO D Share pool GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Income - - - 24 - 24 24
--------------------------- ------- ------- ------- ------- ------- ------- -------
Gains/(losses) on
investments - 23 23 - (27) (27) (27)
--------------------------- ------- ------- ------- ------- ------- ------- -------
- 23 23 24 (27) (3) (3)
--------------------------- ------- ------- ------- ------- ------- ------- -------
Investment management
fees (1) (1) (2) - - - (2)
--------------------------- ------- ------- ------- ------- ------- ------- -------
Other expenses (6) - (6) (1) - (1) (3)
--------------------------- ------- ------- ------- ------- ------- ------- -------
(Loss)/profit on ordinary
activities before
tax (7) 22 15 23 (27) (4) (8)
--------------------------- ------- ------- ------- ------- ------- ------- -------
Tax on total comprehensive
income and ordinary
activities - - - - - - -
--------------------------- ------- ------- ------- ------- ------- ------- -------
(Loss)/profit attributable
to equity Shareholders,
being total comprehensive
income for the period (7) 22 15 23 (27) (4) (8)
--------------------------- ------- ------- ------- ------- ------- ------- -------
Year
ended
Six months ended Six months ended 31 Mar
30 Sep 2023 30 Sep 2022 2023
Revenue Capital Total Revenue Capital Total Total
DP67 Share pool GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Income 97 - 97 107 - 107 192
--------------------------- ------- ------- ------- ------- ------- ------- -------
Losses on investments - - - - (107) (107) (115)
--------------------------- ------- ------- ------- ------- ------- ------- -------
97 - 97 107 (107) - 77
--------------------------- ------- ------- ------- ------- ------- ------- -------
Investment management
fees (9) (9) (18) (5) (5) (10) (28)
--------------------------- ------- ------- ------- ------- ------- ------- -------
Other expenses (11) - (11) (258) - (258) (270)
--------------------------- ------- ------- ------- ------- ------- ------- -------
Profit/(loss) on ordinary
activities before
tax 77 (9) 68 (156) (112) (268) (221)
--------------------------- ------- ------- ------- ------- ------- ------- -------
Tax on total comprehensive
income and ordinary
activities - - - - - - -
--------------------------- ------- ------- ------- ------- ------- ------- -------
Profit/(loss) attributable
to equity Shareholders,
being total comprehensive
income for the period 77 (9) 68 (156) (112) (268) (221)
--------------------------- ------- ------- ------- ------- ------- ------- -------
Unaudited Balance Sheet
as at 30 September 2023
Company number: 06789187
As at 31
As at 30 September As at 30 September March
2023 2022 2023
Company Note GBP'000 GBP'000 GBP'000
Fixed assets
-------------------- ------------------ ------------------ --------
Investments 10 35,064 48,181 43,157
-------------------- ------------------ ------------------ --------
Current assets
-------------------- ------------------ ------------------ --------
Debtors 2,270 1,729 2,510
-------------------- ------------------ ------------------ --------
Cash at bank and
in hand 8,018 10,290 6,082
-------------------- ------------------ ------------------ --------
10,288 12,019 8,592
-------------------- ------------------ ------------------ --------
Creditors: amounts
falling due
within one year (621) (679) (1,214)
-------------------- ------------------ ------------------ --------
Net current assets 9,667 11,340 7,378
-------------------- ------------------ ------------------ --------
Net assets 44,731 59,521 50,535
-------------------- ------------------ ------------------ --------
Capital and reserves
-------------------- ------------------ ------------------ --------
Called up share
capital 118 120 117
-------------------- ------------------ ------------------ --------
Capital redemption
reserve 4 58 4
-------------------- ------------------ ------------------ --------
Special reserve 49,523 21,904 50,483
-------------------- ------------------ ------------------ --------
Share premium
account 1,398 31,726 -
-------------------- ------------------ ------------------ --------
Funds held in
respect of shares
not yet allotted - 8 -
-------------------- ------------------ ------------------ --------
Revaluation
reserve (3,045) 5,696 93
-------------------- ------------------ ------------------ --------
Capital reserve --
realised 1,382 3,943 4,127
-------------------- ------------------ ------------------ --------
Revenue reserve (4,649) (3,934) (4,289)
-------------------- ------------------ ------------------ --------
Total equity
Shareholders'
funds 44,731 59,521 50,535
-------------------- ------------------ ------------------ --------
Basic and diluted Net
Asset Value per
Share:
------------------------
Ventures Share 50.1p 68.5p 59.4p
-------------------- ------------------ ------------------ --------
Healthcare Share 52.3p 71.7p 61.6p
-------------------- ------------------ ------------------ --------
AIM Share 100.7p 99.0p 101.1p
-------------------- ------------------ ------------------ --------
DSO D Share 2.7p 2.6p 2.6p
-------------------- ------------------ ------------------ --------
DP67 Share 25.4p 24.4p 24.8p
-------------------- ------------------ ------------------ --------
At 30 September 2023, there was an inter-share debtor/creditor of GBP313,000, which has been eliminated on aggregation.
Unaudited Balance Sheet
Analysed by Share pool
as at 30 September 2023
As at 31
As at 30 September As at 30 September March
2023 2022 2023
Ventures Share pool GBP'000 GBP'000 GBP'000
Fixed assets
------------------------
Investments 21,702 32,596 27,758
------------------------ ------------------ ------------------ --------
Current assets
------------------------ ------------------ ------------------ --------
Debtors 1,205 523 925
------------------------ ------------------ ------------------ --------
Cash at bank and in
hand 4,105 4,910 3,430
------------------------ ------------------ ------------------ --------
5,310 5,433 4,355
------------------------ ------------------ ------------------ --------
Creditors: amounts
falling due within
one year (365) (288) (730)
------------------------ ------------------ ------------------ --------
Net current assets 4,945 5,145 3,625
------------------------ ------------------ ------------------ --------
Net assets 26,647 37,741 31,383
------------------------ ------------------ ------------------ --------
Capital and reserves
------------------------ ------------------ ------------------ --------
Called up share
capital 67 69 67
------------------------ ------------------ ------------------ --------
Capital redemption
reserve 3 58 3
------------------------ ------------------ ------------------ --------
Special reserve 31,373 15,012 32,039
------------------------ ------------------ ------------------ --------
Share premium account 237 19,901 -
------------------------ ------------------ ------------------ --------
Funds held in respect
of shares not yet
allotted - 1 -
------------------------ ------------------ ------------------ --------
Revaluation reserve (1,830) 4,443 1,170
------------------------ ------------------ ------------------ --------
Capital reserve --
realised 613 1,552 1,665
------------------------ ------------------ ------------------ --------
Revenue reserve (3,816) (3,295) (3,561)
------------------------ ------------------ ------------------ --------
Total equity
Shareholders' funds 26,647 37,741 31,383
------------------------ ------------------ ------------------ --------
As at 31
As at 30 September As at 30 September March
2023 2022 2023
Healthcare Share
pool GBP'000 GBP'000 GBP'000
---------------------
Fixed assets
--------------------- --------------------- ------------------ --------
Investments 10,307 13,782 12,355
--------------------- --------------------- ------------------ --------
Current assets
--------------------- --------------------- ------------------ --------
Debtors 109 10 455
--------------------- --------------------- ------------------ --------
Cash at bank and in
hand 2,172 2,596 860
--------------------- --------------------- ------------------ --------
2,281 2,606 1,315
--------------------- --------------------- ------------------ --------
Creditors: amounts
falling due within
one year (280) (212) (221)
--------------------- --------------------- ------------------ --------
Net current assets 2,001 2,394 1,094
--------------------- --------------------- ------------------ --------
Net assets 12,308 16,176 13,449
--------------------- --------------------- ------------------ --------
Capital and
reserves
--------------------- --------------------- ------------------ --------
Called up share
capital 29 29 28
--------------------- --------------------- ------------------ --------
Capital redemption
reserve 1 - 1
--------------------- --------------------- ------------------ --------
Special reserve 15,101 6,877 15,395
--------------------- --------------------- ------------------ --------
Share premium
account 1,161 9,132 -
--------------------- --------------------- ------------------ --------
Funds held in
respect of shares
not yet allotted - 7 -
--------------------- --------------------- ------------------ --------
Revaluation reserve (1,118) 1,881 (295)
--------------------- --------------------- ------------------ --------
Capital reserve --
realised (859) (18) 177
--------------------- --------------------- ------------------ --------
Revenue reserve (2,007) (1,732) (1,857)
--------------------- --------------------- ------------------ --------
Total equity
Shareholders'
funds 12,308 16,176 13,449
--------------------- --------------------- ------------------ --------
AIM Share pool
---------------------------------------------------
Fixed assets
--------------------------------------------------- ----- ----- -----
Investments 1,920 - 1,893
--------------------------------------------------- ----- ----- -----
Current assets
--------------------------------------------------- ----- ----- -----
Debtors 1 2 2
--------------------------------------------------- ----- ----- -----
Cash at bank and in hand 826 2,689 850
--------------------------------------------------- ----- ----- -----
827 2,691 852
--------------------------------------------------- ----- ----- -----
Creditors: amounts falling due within one year (31) (21) (19)
--------------------------------------------------- ----- ----- -----
Net current assets 796 2,670 833
--------------------------------------------------- ----- ----- -----
Net assets 2,716 2,670 2,726
--------------------------------------------------- ----- ----- -----
Capital and reserves
--------------------------------------------------- ----- ----- -----
Called up share capital 3 3 3
--------------------------------------------------- ----- ----- -----
Special reserve 2,673 - 2,673
--------------------------------------------------- ----- ----- -----
Share premium account - (8) -
--------------------------------------------------- ----- ----- -----
Funds held in respect of shares not yet allotted - 2,693 -
--------------------------------------------------- ----- ----- -----
Revaluation reserve 120 - 93
--------------------------------------------------- ----- ----- -----
Capital reserve -- realised (12) - -
--------------------------------------------------- ----- ----- -----
Revenue reserve (68) (18) (43)
--------------------------------------------------- ----- ----- -----
Total equity Shareholders' funds 2,716 2,670 2,726
--------------------------------------------------- ----- ----- -----
As at 31
As at 30 September As at 30 September March
2023 2022 2023
DSO D Share pool GBP'000 GBP'000 GBP'000
------------------------
Fixed assets
------------------------ ------------------ ------------------ --------
Investments - 16 16
------------------------ ------------------ ------------------ --------
Current assets
------------------------ ------------------ ------------------ --------
Debtors 64 112 21
------------------------ ------------------ ------------------ --------
Cash at bank and in
hand 167 87 176
------------------------ ------------------ ------------------ --------
231 199 197
------------------------ ------------------ ------------------ --------
Creditors: amounts
falling due within
one year (16) (11) (13)
------------------------ ------------------ ------------------ --------
Net current assets 215 188 184
------------------------ ------------------ ------------------ --------
Net assets 215 204 200
------------------------ ------------------ ------------------ --------
Capital and reserves
------------------------ ------------------ ------------------ --------
Called up share
capital 8 8 8
------------------------ ------------------ ------------------ --------
Special reserve 422 423 422
------------------------ ------------------ ------------------ --------
Revaluation reserve - (258) (258)
------------------------ ------------------ ------------------ --------
Capital reserve --
realised (214) 22 22
------------------------ ------------------ ------------------ --------
Revenue reserve (1) 9 6
------------------------ ------------------ ------------------ --------
Total equity
Shareholders' funds 215 204 200
------------------------ ------------------ ------------------ --------
DP67 Share pool
-------------------------------------------------
Fixed assets
------------------------------------------------- ----- ----- -----
Investments 1,135 1,787 1,135
------------------------------------------------- ----- ----- -----
Current assets
------------------------------------------------- ----- ----- -----
Debtors 1,204 1,082 1,107
------------------------------------------------- ----- ----- -----
Cash at bank and in hand 748 8 766
------------------------------------------------- ----- ----- -----
1,952 1,090 1,873
------------------------------------------------- ----- ----- -----
Creditors: amounts falling due within one year (242) (147) (231)
------------------------------------------------- ----- ----- -----
Net current assets 1,710 943 1,642
------------------------------------------------- ----- ----- -----
Net assets 2,845 2,730 2,777
------------------------------------------------- ----- ----- -----
Capital and reserves
------------------------------------------------- ----- ----- -----
Called up share capital 11 11 11
------------------------------------------------- ----- ----- -----
Special reserve (46) (400) (46)
------------------------------------------------- ----- ----- -----
Revaluation reserve (217) (370) (617)
------------------------------------------------- ----- ----- -----
Capital reserve -- realised 1,854 2,387 2,263
------------------------------------------------- ----- ----- -----
Revenue reserve 1,243 1,102 1,166
------------------------------------------------- ----- ----- -----
Total equity Shareholders' funds 2,845 2,730 2,777
------------------------------------------------- ----- ----- -----
Statement of Changes in Equity
for the six months ended 30 September 2023
Funds
held in
Called respect
up Capital Share of shares
share redemption Special premium not yet Revaluation Capital Revenue
capital reserve reserve account allotted reserve reserve - realised reserve Total
Company GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------- --------- -------------------
At 31 March 2022 113 58 24,063 29,284 7 6,995 3,769 (3,412) 60,877
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
Total comprehensive
income - - - - - (6,448) (331) (877) (7,656)
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
Transfer between
reserves* - - (2,540) - - (454) 2,994 - -
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
Unallotted shares - - - - (7) - - - (7)
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
Transactions with
owners
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
Dividend paid - - - - - - (2,305) - (2,305)
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
Cancellation of
share premium - (58) 31,785 (31,727) - - - - -
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
Purchase of own
shares (4) 4 (2,825) - - - - - (2,825)
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
Issue of shares 8 - - 2,500 - - - - 2,508
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
Share issue costs - - - (57) - - - - (57)
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
At 31 March 2023 117 4 50,483 - - 93 4,127 (4,289) 50,535
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
Total comprehensive
income - - - - - (3,138) (2,745) (360) (6,243)
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
Transactions with
owners
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
Dividend paid - - (960) - - - - - (960)
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
Issue of shares 1 - - 1,412 - - - - 1,413
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
Share issue costs - - - (14) - - - - (14)
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
At 30 September 2023 118 4 49,523 1,398 - (3,045) 1,382 (4,649) 44,731
---------------------- -------- ----------- -------- -------- --------- ----------- ------------------- -------- -------
* A transfer of GBPnil (year ended 31 March 2023: GBP454,000) representing previously recognised realised gains and losses on disposal of investments during the period has been made between the Revaluation Reserve and the Capital reserve - realised. A transfer of GBPnil (year ended 31 March 2023: GBP2,540,000) representing the total of: realised losses on the disposal of investments, cumulative impairment losses, capital expenses and capital dividends in the period, has been made between the Capital Reserve - realised and the Special reserve.
Unaudited Statement of Cash Flows
for the six months ended 30 September 2023
Ventures Healthcare AIM DSO D DP67
Share Share Share Share Share
pool pool pool pool pool Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cash flow from operating activities
------------------------------------- -------- ---------- ------- ------- ------- -------
(Loss)/return on ordinary activities
before taxation (4,305) (2,011) (10) 15 68 (5,631)
------------------------------------- -------- ---------- ------- ------- ------- -------
Losses/(gains) on investments 3,899 1,772 (27) (23) - 5,009
------------------------------------- -------- ---------- ------- ------- ------- -------
(Decrease)/increase in creditors (365) 59 12 3 11 (280)
------------------------------------- -------- ---------- ------- ------- ------- -------
(Increase)/decrease in debtors (235) 6 1 (43) (97) (368)
------------------------------------- -------- ---------- ------- ------- ------- -------
Net cash outflow from operating
activities (1,006) (174) (24) (48) (18) (1,270)
------------------------------------- -------- ---------- ------- ------- ------- -------
Corporation tax paid - - - - - -
------------------------------------- -------- ---------- ------- ------- ------- -------
Net cash outflow generated from
operating activities (1,006) (174) (24) (48) (18) (1,270)
------------------------------------- -------- ---------- ------- ------- ------- -------
Cash flow from investing activities
------------------------------------- -------- ---------- ------- ------- ------- -------
Purchase of investments (200) - - - - (200)
------------------------------------- -------- ---------- ------- ------- ------- -------
Proceeds from disposal of investments 2,196 423 - 39 - 2,658
------------------------------------- -------- ---------- ------- ------- ------- -------
Proceeds from deferred consideration 114 195 - - - 309
------------------------------------- -------- ---------- ------- ------- ------- -------
Net cash inflow from investing
activities 2,110 618 - 39 - 2,767
------------------------------------- -------- ---------- ------- ------- ------- -------
Net cash inflow/(outflow) before
financing 1,104 444 (24) (9) (18) 1,497
------------------------------------- -------- ---------- ------- ------- ------- -------
Cash flows from financing activities
------------------------------------- -------- ---------- ------- ------- ------- -------
Issue of share capital 237 1,176 - - - 1,413
------------------------------------- -------- ---------- ------- ------- ------- -------
Cost of issue of share capital - (14) - - - (14)
------------------------------------- -------- ---------- ------- ------- ------- -------
Equity dividends paid (666) (294) - - - (960)
------------------------------------- -------- ---------- ------- ------- ------- -------
Net cash (outflow)/inflow from
financing activities (429) 868 - - - 439
------------------------------------- -------- ---------- ------- ------- ------- -------
Net change in cash 675 1,312 (24) (9) (18) 1,936
------------------------------------- -------- ---------- ------- ------- ------- -------
Cash and cash equivalents at
start of the year 3,430 860 850 176 766 6,082
------------------------------------- -------- ---------- ------- ------- ------- -------
Cash and cash equivalents at
end of the year 4,105 2,172 826 167 748 8,018
------------------------------------- -------- ---------- ------- ------- ------- -------
Cash and cash equivalents comprise
------------------------------------- -------- ---------- ------- ------- ------- -------
Cash at bank and in hand 4,105 2,172 826 167 748 8,018
------------------------------------- -------- ---------- ------- ------- ------- -------
Total cash and cash equivalents 4,105 2,172 826 167 748 8,018
------------------------------------- -------- ---------- ------- ------- ------- -------
Unaudited Statement of Cash Flows
for the six months ended 30 September 2022
Ventures Healthcare DSO D DP67
Share Share AIM Share Share Share
pool pool pool pool pool Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
-------------------------------- -------- ---------- --------- ------- ------- -------
Return/(loss) on ordinary
activities before taxation 1,670 (2,085) (20) (4) (268) (707)
-------------------------------- -------- ---------- --------- ------- ------- -------
(Gains)/losses on investments (1,993) 1,876 - 27 107 17
-------------------------------- -------- ---------- --------- ------- ------- -------
(Decrease)/increase in creditors (202) (98) - (9) 23 (286)
-------------------------------- -------- ---------- --------- ------- ------- -------
Decrease/(increase) in debtors 1,278 623 602 (51) 136 2,588
-------------------------------- -------- ---------- --------- ------- ------- -------
Net cash inflow/(outflow)
from operating activities 753 316 582 (37) (2) 1,612
-------------------------------- -------- ---------- --------- ------- ------- -------
Corporation tax paid - - - - - -
-------------------------------- -------- ---------- --------- ------- ------- -------
Net cash inflow/(outflow)
from operating activities 753 316 582 (37) (2) 1,612
-------------------------------- -------- ---------- --------- ------- ------- -------
Cash flow from investing
activities
-------------------------------- -------- ---------- --------- ------- ------- -------
Purchase of investments (3,457) (805) - - - (4,262)
-------------------------------- -------- ---------- --------- ------- ------- -------
Proceeds from disposal of
investments 4,113 1,092 - - - 5,205
-------------------------------- -------- ---------- --------- ------- ------- -------
Net cash inflow from investing
activities 656 287 - - - 943
-------------------------------- -------- ---------- --------- ------- ------- -------
Net cash inflow/(outflow)
before financing 1,409 603 582 (37) (2) 2,555
-------------------------------- -------- ---------- --------- ------- ------- -------
Cash flows from financing
activities
-------------------------------- -------- ---------- --------- ------- ------- -------
Repurchase of shares (551) (243) - - - (794)
-------------------------------- -------- ---------- --------- ------- ------- -------
Issue of share capital 1,276 552 678 - - 2,506
-------------------------------- -------- ---------- --------- ------- ------- -------
Cost of issue of share capital (28) (12) (17) - - (57)
-------------------------------- -------- ---------- --------- ------- ------- -------
Funds held in respect of shares
not yet allotted (1) 2 - - - 1
-------------------------------- -------- ---------- --------- ------- ------- -------
Equity dividends paid (1,516) (789) - - - (2,305)
-------------------------------- -------- ---------- --------- ------- ------- -------
Net cash (outflow)/inflow
from financing activities (820) (490) 661 - - (649)
-------------------------------- -------- ---------- --------- ------- ------- -------
Net change in cash 589 113 1,243 (37) (2) 1,906
-------------------------------- -------- ---------- --------- ------- ------- -------
Cash and cash equivalents
at start of the year 4,321 2,483 1,446 124 10 8,384
-------------------------------- -------- ---------- --------- ------- ------- -------
Cash and cash equivalents
at end of the year 4,910 2,596 2,689 87 8 10,290
-------------------------------- -------- ---------- --------- ------- ------- -------
Cash and cash equivalents comprise -------------------------------- -------- ---------- --------- ------- ------- ------- Cash at bank and in hand 4,910 2,596 2,689 87 8 10,290 -------------------------------- -------- ---------- --------- ------- ------- ------- Total cash and cash equivalents 4,910 2,596 2,689 87 8 10,290 -------------------------------- -------- ---------- --------- ------- ------- -------
Notes to the Unaudited Financial Statements
1. General Information
Thames Ventures VCT 2 plc ("the Company") is a Venture Capital Trust established under the legislation introduced in the Finance Act 1995 and is domiciled in the United Kingdom and incorporated in England and Wales.
2. Basis of accounting
The unaudited half-yearly financial results cover the six months to 30 September 2023 and have been prepared in accordance with the accounting policies set out in the statutory accounts for the year ended 31 March 2023, which were prepared in accordance with the Financial Reporting Standard 102 ("FRS 102") and the Statement of Recommended Practice "Financial Statements of Investment Trust Companies" issued in July 2022 ("SORP").
3. The Company has only one class of business and derives its income from investments made in shares, securities and bank deposits.
4. The comparative figures are in respect of the six months ended 30 September 2022 and the year ended 31 March 2023 respectively.
5. Net Asset Value per share at the period end has been calculated on the number of shares in issue at the period end as follows:
Ventures Shares* 53,236,858 Healthcare Shares* 23,555,015 AIM Shares 2,695,803 DSO D Shares 7,867,247 DP67 Shares 11,192,136
*Excludes Management Shares
6. Return per share for the period has been calculated on the weighted average number of shares in issue in the period as follows:
Ventures Shares* 53,223,619 Healthcare Shares* 23,479,184 AIM Shares 2,695,803 DSO D Shares 7,867,247 DP67 Shares 11,192,136
*Excludes Management Shares
7. The unaudited financial statements set out herein do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 and have not been delivered to the Registrar of Companies.
8. Dividends
Six months ended 30 September 2023
Pence per Revenue Capital Total
Share GBP'000 GBP'000 GBP'000
Ventures Shares
------------------------------------------ -------- -------- --------
Paid - 666 666
------------------------------- --------- -------- -------- --------
Final (year ended 31 March
2023) 1.25 - 666 666
------------------------------- --------- -------- -------- --------
Healthcare Shares
------------------------------------------ -------- -------- --------
Paid - 294 294
------------------------------- --------- -------- -------- --------
Final (year ended 31 March
2023) 1.25 - 294 294
------------------------------- --------- -------- -------- --------
9. Reserves
31 Mar
30 Sep 2023 30 Sep 2022 2023
GBP'000 GBP'000 GBP'000
---------------------------------------
Capital redemption reserve 4 58 4
--------------------------------------- ----------- ----------- -------
Special reserve 49,523 21,904 50,483
--------------------------------------- ----------- ----------- -------
Share premium account 1,398 31,726 -
--------------------------------------- ----------- ----------- -------
Funds held in respect of shares not yet
allotted - 8 -
--------------------------------------- ----------- ----------- -------
Revaluation reserve (3,045) 5,696 93
--------------------------------------- ----------- ----------- -------
Capital reserve -- realised 1,382 3,943 4,127
--------------------------------------- ----------- ----------- -------
Revenue reserve (4,649) (3,934) (4,289)
--------------------------------------- ----------- ----------- -------
44,613 59,401 50,418
--------------------------------------- ----------- ----------- -------
The Revenue reserve, Special reserve and Capital reserve - realised are distributable reserves and are reduced by revaluation losses of GBP17.4 million. Distributable reserves at 30 September 2023 were GBP28.8 million.
10. Fixed assets -- investments
Liquidity Quoted VC Unquoted
investments investments VC investments Total
GBP'000 GBP'000 GBP'000 GBP'000
Opening cost at 1 April 2023 6,798 4,403 40,774 51,975
Unrealised (losses)/gains at
1 April 2023 (1,743) 704 906 (133)
------------------------------ ------- ------------ --------------- -------
Unrealised foreign exchange
gains at 1 April 2023 - - 226 226
------------------------------ ------- ------------ --------------- -------
Realised losses arising on
permanent fair value change
at 1 April 2023 - - (8,911) (8,911)
------------------------------ ------- ------------ --------------- -------
Opening fair value at 1 April
2023 5,055 5,107 32,995 43,157
------------------------------ ------- ------------ --------------- -------
Movements in the period:
------------------------------ ------- ------------ --------------- -------
Purchased at cost - - 450 450
------------------------------ ------- ------------ --------------- -------
Disposals -- proceeds - (30) (2,628) (2,658)
------------------------------ ------- ------------ --------------- -------
-- realised losses on
disposals(*) - (14) (2,778) (2,792)
------------------------------ ------- ------------ --------------- -------
Unrealised foreign exchange
gains - - 59 59
------------------------------ ------- ------------ --------------- -------
Unrealised losses(*) (126) (1,166) (1,860) (3,152)
------------------------------ ------- ------------ --------------- -------
Closing value at 30 Sept 2023 4,929 3,897 26,238 35,064
------------------------------ ------- ------------ --------------- -------
Closing cost at 30 Sept 2023 6,798 4,359 35,818 46,975
------------------------------ ------- ------------ --------------- -------
Unrealised losses at 30 Sept
2023 (1,869) (462) (3,672) (6,003)
------------------------------ ------- ------------ --------------- -------
Unrealised foreign exchange
gains at 30 Sept 2023 - - 285 285
------------------------------ ------- ------------ --------------- -------
Realised losses arising on
permanent fair value change
at 30 Sept 2023 - - (6,193) (6,193)
------------------------------ ------- ------------ --------------- -------
Closing value at 30 Sept 2023 4,929 3,897 26,238 35,064
------------------------------ ------- ------------ --------------- -------
*Losses on investments in the Income Statement include realised gains relating to the deferred consideration receipt from ADC Biotechnology Limited (GBP309,000).
*Losses on investments in the Income Statement also include unrealised gains which are a result of the deferred consideration debtor decrease of GBP45,000. The debtor movement reflects the recognition of amounts receivable in respect of DIA Imaging Analysis Limited (GBP103,000) and Imagen Limited (GBP156,000), offset by receipts in respect of ADC Biotechnology Limited (GBP309,000) and an FX uplift made against balances in respect of Efundamentals Group Limited (GBP5,000).
The fair value of investments is determined using the detailed accounting policy as shown in the audited financial statements for the year ended 31 March 2023. The Company has categorised its financial instruments using the fair value hierarchy as follows:
Level 1 Reflects financial instruments quoted in an active market (quoted companies, investment funds and fixed interest bonds);
Level 2 Reflects financial instruments that have prices that are observable either directly or indirectly; and
Level 3 Reflects financial instruments that use valuation techniques that are not based on observable market data (investments in unquoted shares and loan note investments).
30 September 2023 31 March 2023
Level Level Level Level Level Level
1 2 3 Total 1 2 3 Total
-------------- ------- ------- ------- ------- ------- ------- ------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- ------- ------- ------- ------- ------- ------- ------- -------
Liquidity
investments 4,929 - - 4,929 5,055 - - 5,055
-------------- ------- ------- ------- ------- ------- ------- ------- -------
Quoted equity 3,897 - - 3,897 5,107 - - 5,107
-------------- ------- ------- ------- ------- ------- ------- ------- -------
Unquoted loan
notes - - 2,013 2,013 - - 2,013 2,013
-------------- ------- ------- ------- ------- ------- ------- ------- -------
Unquoted
equity - - 24,225 24,225 - - 30,982 30,982
-------------- ------- ------- ------- ------- ------- ------- ------- -------
8,826 - 26,238 35,064 10,162 - 32,995 43,157
-------------- ------- ------- ------- ------- ------- ------- ------- -------
11. Risk and uncertainties
Under the Disclosure and Transparency Directive, the Board is required in the Company's half-year results to report on the principal risks and uncertainties facing the Company over the remainder of the financial year.
The Board has concluded that the key risks facing the Company over the remainder of the financial period are as follows:
(i) compliance risk of failure to maintain approval as a VCT; (ii) market, liquidity and counterparty risk associated with Private Equity investments; and (iii) investment risk associated with investing in small and immature businesses.
The Company's compliance with the VCT regulations is continually monitored by the Manager, who reports regularly to the Board on the current position. The Company also retains Philip Hare & Associates LLP ("Philip Hare") to provide regular reviews and advice in this area. The Board considers that this approach reduces the risk of a breach of the VCT regulations.
In order to make VCT qualifying investments, the Company has to invest in small businesses which are often immature. It also has a limited period in which it must invest the majority of its funds into VCT qualifying investments. The Manager follows a rigorous process in vetting and carefully structuring new investments, including taking a charge over the assets of the business wherever possible and, after an investment is made, closely monitoring the business.
12. Going concern
The Directors have reviewed the Company's financial resources at the period end and conclude that the Company is well placed to manage its business risks.
The Board confirms that it is satisfied that the Company has adequate resources to continue in business for the foreseeable future. For this reason, the Board believes that the Company continues to be a going concern and that it is appropriate to apply the going concern basis in preparing the financial statements.
13. Contingent liability
As outlined in the Chairman's Statement, since March 2022, the Company has used IBP Markets Limited ("IBP") as custodian for its quoted investments, with exposure across the Ventures, Healthcare and AIM Share classes. IBP is an FCA authorised and regulated wholesale broker, providing custody services and access to equity and fixed income securities for non-retail clients (which includes the Company). On 13 October 2023, the FCA published a supervisory notice under section 55L(3)(a) of the Financial Services and Markets Act 2000, imposing
certain restrictions on IBP. On the same date, IBP applied to the High Court and special administrators were appointed. The special administrators have yet to publish an estimated outcome statement and therefore the full impact is currently unknown. The Manager is actively collaborating with the special administrators to reach a resolution and will communicate with Shareholders when further information becomes available.
The Manager is in regular dialogue with the special administrators. The outcome remains subject to change particularly as additional claims may be made on custody assets and client money and there remains a risk to the positions. However, considering the information made available to the Company at the date of this report, there is currently little indication that there will be a materially adverse impact to Shareholders with respect to the custody assets. The position with respect to client money remains to be determined, but total cash at IBP relates to the Healthcare Share pool and represented 0.2% of NAV as at 30 September.
14. The Directors confirm that, to the best of their knowledge, the Half-Yearly Report has been prepared in accordance with the "Statement: Half-Yearly Financial Reports" issued by the UK Accounting Standards Board as well as in accordance with FRS 104 Interim Financial Reporting, and the half-yearly financial report includes a fair review of the information required by:
1. DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication
of important events that have occurred during the first six months of the
financial year and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties
for the remaining six months of the year; and
2. DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position
or performance of the entity during that period, and any changes in the
related party transactions described in the last annual report that could
do so.
15. Copies of the Half-Yearly Report will be sent to Shareholders shortly. Further copies can be obtained from the Company's registered office or downloaded from
www.foresightgroup.eu/products/thames-ventures-vct-2-plc
End
(END) Dow Jones Newswires
December 21, 2023 10:34 ET (15:34 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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