TIDMAMAT
RNS Number : 8926O
Amati AIM VCT PLC
06 October 2023
Amati AIM VCT plc (the "Company")
Legal Entity Identifier: 213800HAEDBBK9RWCD25
Half-yearly Report for the six months ended 31 July 2023
Highlights
Investment Objective
The investment objective of Amati AIM VCT plc (the "Company") is
to generate tax free capital gains and income on investors' funds,
through investment primarily in AIM-traded companies. The Company
will manage its portfolio to comply with the requirements of the
rules and regulations applicable to Venture Capital Trusts. The
Company's policy is to hold a diversified portfolio across a broad
range o sectors to mitigate risk.
Dividend Policy
The Board aims to pay annual dividends of around 5% of the
Company's Net Asset Value at its immediately preceding financial
year end, subject to distributable reserves and cash resources and
with the authority to increase or decrease this level at the
directors' discretion.
Key Data
6 months 6 months Year
ended ended
31/07/23 31/07/22 ended
(unaudited) (unaudited) 31/01/23
(audited)
---------------------------------------- --------------- -------------- -------------
Net Asset Value ("NAV") GBP166.4m GBP222.5m GBP201.3m
Shares in issue 151,201,269 151,939,444 151,548,993
NAV per share 110.0p 146.5p 132.8p
Share price 102.5p 136.5p 123.5p
Market capitalisation GBP155.0m GBP207.4m GBP187.2m
Share price discount to NAV 6.8% 6.8% 7.0%
NAV Total Return (assuming re-invested
dividends) -14.6% -16.4% -22.2%
Numis Alternative Markets Total
Return Index* -11.3% -16.4% -20.7%
Ongoing charges** 2.0% 2.0% 1.9%
Dividends paid and declared in respect
of the year 2.5p 3.5p 7.0p
---------------------------------------- --------------- -------------- -------------
* Numis Alternative Markets Index is included as a comparator
benchmark for performance as this index includes all companies
listed on qualifying UK alternative markets
** Ongoing charges calculated in accordance with the Association
of Investment Companies' ("AIC's") guidance
Table of investor returns to 31 July 2023
Numis Alternative
NAV Total Markets Total
Return with Return
dividends Index
Date re-invested
------------------------------------ ----------------- -------------- ------------------
NAV following re-launch of the
VCT under management of Amati 9 November
Global Investors ("Amati") 2011* 104.5% 16.2%
------------------------------------ ----------------- -------------- ------------------
NAV following appointment of Amati
as Manager of the VCT, which was
known as ViCTory VCT at the time 25 March 2010 114.5% 19.5%
------------------------------------ ----------------- -------------- ------------------
*Date of the share capital reconstruction when the NAV was
re-based to approximately 100p per share.
A table of historic returns is included below.
Chairman's Statement
Overview
In the first half of 2023, markets continued to be hostile for
early-stage businesses on AIM, especially for those requiring to
raise further capital. In addition, the sharp rise in interest
rates and inflationary environment have created more difficult
trading conditions for some of the larger, more mature companies.
Consequently, this has impacted negatively on performance, with
several of the larger holdings in the portfolio being de-rated.
The number of companies raising money on AIM was much reduced,
as often happens during periods of market stress. However, GBP8.8m
was invested in new qualifying investments during the period. This
was across a mixture of IPO and secondary fund raises on AIM,
including three small follow-on investments into companies already
held, and one investment in a pre-IPO company. Details of these
investments are provided in the Fund Manager's Review. Cash levels
have remained high as the Manager made some sales from the
qualifying portfolio, amounting to GBP8.3m. Cash is being actively
managed with exposure to both money market funds and
interest-bearing bank deposits, in order to maximise income whilst
new investments are being sought.
Investment Performance and Dividend
The NAV total return for the period was -14.6%, which compares
to a return of -11.3% for the Numis Alternative Markets Index. Full
details are provided in the Fund Manager's Review.
The Board aims to pay annual dividends of around 5% of the
Company's Net Asset Value at its immediately preceding year end,
subject to the Company's available distributable reserves and cash
resources, and with the authority to increase or decrease this
level at the Directors' discretion. In line with this, the Board is
declaring an interim dividend of 2.5p per share, to be paid on 24
November 2023 to shareholders on the register on 20 October 2023.
The ex-dividend date will be 19 October 2023.
Corporate Developments
In June, the Company held its AGM and the Manager's Investor
Afternoon for a second year at Barber-Surgeons' Hall. The day was
well attended and a recording of the event remains available to
view on the Manager's website at:
https://www.amatiglobal.com/storage/1203/Amati-AIM-VCT-Annual-Report.pdf
.
With cash levels remaining high and the rate of new investments
still running at relatively low levels, the Board is not planning
to raise funds in the current financial year, although the Dividend
Re-investment Scheme (DRIS) remains open to shareholders who wish
to make use of it. The last day for the Dividend Re-investment
Scheme elections will be 8 November 2023.
VCT Legislation
The current VCT legislation contains a "Sunset Clause" which
effectively brings income tax relief to an end for new
subscriptions after 5 April 2025. This was agreed in 2015 by the UK
government to secure ongoing EU approval of the VCT and EIS
schemes, which have been a crucial source of funding for new and
innovative businesses in the UK. It has always been the case that
the extension of the scheme was bound up with the resolution of
issues around the Northern Ireland Protocol and potentially
achieving a further ratification of the schemes from the EU, so
that they can also continue to operate in Northern Ireland after
2025.
The Chancellor of the Exchequer had previously set out an
intention to continue the scheme and the subsequent publication of
the Windsor Framework on 27 February 2023 left the removal of the
Sunset Clause solely within the control of HM Treasury. Since then,
there have been no updates from the Government, but on 24 July
2023, the Treasury Committee published its Report on Venture
Capital calling for the Government to take urgent action to detail
and implement an extension. The Report contained other
recommendations around continued support for the VCT and EIS
sectors to encourage greater social inclusion within the Venture
Capital sector.
Outlook
Whilst the high rate of inflation in the UK now seems to be
easing, the rapid rise in interest rates during 2023 has tightened
liquidity conditions everywhere. This now requires a period of
adjustment, as market prices respond to what has been a very abrupt
end to the era of cheap money amidst the advent of war, potential
shortages of natural resources and a rising wave of sanctions on
international trade. None of this lessens the need for innovative
new businesses to underpin the future growth of the economy and
maintain competitiveness. However, it makes it harder for such
businesses to find funding and tends to slow down sales cycles,
making it more expensive for them to scale up. This makes the role
of VCTs more important than ever, being pools of capital which are
able to continue to invest in tougher times and support businesses
over the longer term. The need for clarity on the future of VCT
schemes is becoming ever more critical. Tougher markets also tend
to be good for the long run returns from new investments, so it is
to be hoped that the ability to continue investing will stand the
Company in good stead in the years to come. It is encouraging that
new opportunities for qualifying investments are appearing on AIM,
albeit in smaller numbers than previously.
Fiona Wollocombe
Chairman
5 October 2023
For any matters relating to your shareholding in the Company,
dividend payments, or the Dividend Re-investment Scheme, please
contact The City Partnership on 01484 240 910, or by email at
registrars@city.uk.com. For any other matters please contact Amati
Global Investors ("Amati") on 0131 503 9115 or by email at
info@amatiglobal.com .
Amati maintains an informative website for the Company -
www.amatiglobal.com - on which monthly investment updates,
performance information, and past company reports can be found.
Fund Manager's Review
Market Review
Russia's ongoing invasion of Ukraine and the daily horrors it
brings continues to weigh on investor sentiment, with additional
concerns about the ongoing potential for China to become more
bellicose and for Russia to continue to provoke political mayhem in
its spheres of influence abroad. In stock markets, headlines have
been dominated by the global fight against inflation with the US
Federal Reserve, the European Central Bank and the Bank of England
all simultaneously continuing to increase interest rates rapidly
from historically low levels. This 'normalisation' of policy
created a number of disruptions along the way. There was a notable
bump in the road in the US banking system with the collapse of SVB
Bank in March, closely followed by First Republic Bank and
Signature Bank. Of even greater importance was the subsequent
unravelling of Credit Suisse. However, the contagion effects of
these failures have been limited, with UBS riding to the rescue of
Credit Suisse and the US banks being bailed out by larger, better
capitalised institutions.
In this tightening environment government bond yields have
continued to rise globally, most notably in the US and the UK,
where interest rate rises have been most pronounced. The outlook
for global growth has deteriorated somewhat but most major
economies are bumping along the bottom and recession has largely
been avoided so far. The most notable change has been a marked
deterioration in Chinese growth prospects and this has led to falls
in commodities such as copper and iron ore. Other key commodities
such as gold and oil have been broadly flat in the period.
In recent months there has been some evidence that inflation is
now being brought under control, with the June G20 inflation rate
having fallen to 4.6%. The economic picture in the UK remains more
troubled and we continue to lag behind other leading economies in
the battle against inflation. However, the trend is finally heading
in the right direction, with key indicators such as the Price
Producer Index, food, construction materials and money supply all
beginning to head firmly downwards. Indeed, many commentators now
believe that Prime Minister Sunak will achieve his wish of sub-5%
inflation before the end of 2023. Investor anxiety over rising
interest rates has also begun to reduce somewhat, with rate
expectations now beginning to roll over. Gilt yields have risen
back to levels that we saw during the mini Budget crisis of last
September. While rising yields have supported a steady recovery in
sterling against both the Euro and the US Dollar, this time around
fiscal credibility has been maintained albeit government finance is
under pressure.
Global markets have recovered their poise in 2023, focused on
strong rallies in the handful of the world's largest tech companies
listed in the US. By contrast, the UK equity market remained in the
doldrums with the FT All Share index returning a paltry 0.6% over
the period. AIM continues to lag significantly, falling by 11% over
the six months, reflecting ongoing risk-aversion and tougher
trading conditions slowing down the growth of the more mature
companies. Liquidity at the lower end of the UK market remains
somewhat problematic and market sentiment towards UK equities is
fragile. There were continued outflows from open-ended UK equity
funds, continuing the weak trend of recent years, and there are
considerable challenges in re-establishing the UK market as an
attractive place for companies to list and raise capital. However,
we do detect a greater commitment from the Chancellor, the FCA and
others to address these increasingly urgent problems.
Performance Review
Over the rst half of the year the NAV Total Return fell by
14.6%, underperforming its benchmark which declined by 11.3%.
An environment of limited risk appetite amongst investors
continued to affect stock market liquidity, and this
disproportionately impacted share prices for even the largest
capitalisation companies within the portfolio. This was the case
for our biggest holding, video gaming services provider Keywords
Studios ("Keywords"), which fell by 38% in the period despite
reporting 10% organic growth and stable margins in its rst half
trading update at the end of the period, expecting this to continue
in its second half. This followed concerns that Generative Arti
cial Intelligence ("GenAI"), a technology for machine-created data
content such as text, images, sounds and animation, could be a
signi cant disruptor to the company's creative, testing and
localisation businesses. The shares have been sold short by some
hedge funds. It is too early to tell exactly how GenAI will impact
the video games industry, given the complex legal issues around IP
ownership, but it is likely that Keywords will be well placed to
adopt the best practices and unlikely that GenAI will lead to such
ef ciency gains that the market for the kinds of outsourced
services that Keywords provides diminishes. Another holding
impacted by GenAI fears was digital learning and talent management
specialist Learning Technologies, where machine-created education
is seen by some as a competitive threat. A greater in uence on the
share price, however, has been a slowdown in project-based and
transactional work amongst the company's nancial services and
technology clients. On the other hand, longer term contracts and
Software-as-a-Service ("SaaS") revenues have proven more robust in
softer economic conditions. The shares fell by 47%. Whilst GenAI
will undoubtedly have an eventual impact across the whole economy,
the precise business winners and losers from this technology will
likely emerge gradually, as was the case with the dot.com
revolution more than twenty years ago.
Polarean Imaging , the medical imaging specialist, which nally
received FDA approval for its drug device combination product,
XENOVIEW, last December, is pursuing a strategy of strategic
partnerships with pharmaceutical companies, magnetic resonance
imaging specialists, and Contract Research Organisations, in order
to fund commercial applications for its technology. This will
require additional equity funding, and this acted as an overhang on
the company's shares which fell by 50% in the period.
Other negative contributors included recently oated EnSilica and
Northcoders. Ensilica specialises in the design and supply of
Application Speci c Integrated Circuits ("ASICs") to a range of
automotive, satellite and industrial automation customers. After a
successful listing in May of last year, the shares initially
outperformed on the back of a series of contract awards. This new
business run rate exceeded original expectations, which prompted a
follow-on, non-qualifying placing in March to raise working
capital. The placing discount has since acted as a cap on the share
price, which fell by 36% across the period. Northcoders provides
training courses for IT novices and junior software engineers, in a
UK market where there is an acute shortage of coders and
developers. Recent interim results show revenues up over 50%,
driven by a number of contracts with large corporate clients, plus
further funding secured from the Department for Education. This
provides good forward visibility to the business. The share price
peaked late last year but has subsequently retrenched, falling 37%
in the period driven by limited liquidity and some small
selling.
Other weak performances included Velocys, the sustainable fuels
technology company, which fell by 65% as its shares suffered
headwinds from ongoing discussions to raise additional funding for
its US manufacturing facility. Whilst over GBP6m was raised in
June, a larger amount of GBP12m from a strategic investor is still
to be nalised; Eneraqua Technologies, a supplier of specialist
energy and water ef ciency solutions, fell by 62% having missed its
forecast revenues for nancial year 2023 but still reported a more
than 50% increase year on year. The miss was caused by local
authority and housing association clients re-prioritising their
capital budgets due to expensive re cladding commitments. This
meant some larger utility replacement projects were pushed into
2024, but they were not cancelled; and Aptamer, a developer of
custom binders for the life sciences industry, which sought
additional funding as customers delayed research projects and
ambitious forecasts for revenues moved out of reach. This funding
was completed late in the period, but poor investor appetite for
loss-making companies saw the shares fall by 96%. In February,
having realised that unquoted company Flylogix was unlikely to
resolve its operational issues with ying drones out over the North
Sea for methane emissions testing, we agreed with the company and
BP Ventures, the other principal investor in the business, that the
company be put into administration in order to protect the cash
remaining on the balance sheet. We expect this to return 20-25% of
our investment and wrote the equity and loan down accordingly.
The greatest positive contributor over the period was autonomous
vehicle specialist, Aurrigo International ("Aurrigo"). A successful
otation last September was followed up with positive operational
news. An initial agreement with Singapore's Changi Airport to
develop baggage handling technology has progressed to a formal
partnership to trial and test prototype Auto-Dolly and Auto-Dolly
Tug vehicles, together with Auto-Sim airport simulation software.
This multi-year partnership will allow Aurrigo to showcase its
technology to other airports and provides a solid platform for
future growth. The rapid recovery of global aviation to almost
pre-pandemic activity levels, is driving demand for ef ciencies,
decarbonisation, and solutions to staff shortages, all issues which
Aurrigo's products address. The company's original business in
automotive engineering design continues to generate solid revenues.
The shares gained 56%.
Following a disappointing period of trading, video games
developer and publisher Frontier Developments rebounded with its
shares rising 21% in the period. A full year update in June, whilst
in line with previous downgraded guidance, incorporated better
performance from the existing games portfolio. However, a strategic
decision was taken to cease all third-party title publishing after
poor results, and an exceptional charge for this caused an overall
loss. Frontier is now returning to its core business of in-house
games development and has two signi cant releases scheduled; a
Formula 1 Manager game and a real-time strategy game based on the
Warhammer Age of Sigmar IP.
SRT Marine Systems ("SRT") , the provider of maritime
surveillance, monitoring and management systems, made several
contract announcements during the period and achieved an
oversubscribed non-qualifying capital raise to fund working
capital. With applications in law enforcement, search & rescue,
sheries management and environmental monitoring, SRT has a growing
order book. The shares rose by 20%.
Other positive contributors included Glantus, the accounts
payable analytics software provider, which announced improved
trading and then a private equity bid approach, and its shares rose
by 111%; Equals, the FX payment services specialist, which
continues to trade strongly as it shifts its focus from consumer to
business customers, generating stronger growth and higher margins
and which saw its shares rise by 16%; Kinovo, the provider of
property services to the social housing sector, saw its shares rise
by 30% having announced several contract wins involving energy ef
ciency, re safety, electrical wiring and related building works;
and Creo Medical, the surgical endoscopy device specialist, whose
technology is seeing increasing adoption helped by an
oversubscribed, non-qualifying fund raise in February, in which the
TB Amati UK Listed Smaller Companies Fund participated. Its shares
rose by 64%.
Portfolio Activity
Over the course of the period under review, the Company made
four new investments and three follow-on investments. The new
investments comprised one Initial Public Offering ("IPO"), one
pre-IPO investment and two investments into companies already
quoted on AIM.
The Company participated in the otation of Fadel Partners, a
developer of cloud-based software for brand compliance and
royalties' management. Fadel's customers are licensors and
licensees across a range of markets covering media, entertainment,
publishing, consumer brands and technology. The products
incorporate sophisticated image and video recognition powered by AI
search tools. The business is long established, and has been
recently pro table, but is now entering a new growth phase which
will involve losses as it moves to build substantial global
revenues. An unquoted investment was made in 2 Degrees, alongside
Maven Capital Partners. The company provides large corporates and
their suppliers with an online SaaS platform to measure, manage and
reduce carbon within supply chains, thereby helping to achieve the
Green House Gas Protocol Scope 3 emissions standard. The platform
includes a planning tool and AI-driven recommendations for best
practices to reduce carbon. Current markets are in food retail and
automotive, with signi cant scope to grow beyond this.
Investments through secondary placings in existing AIM companies
involved Itaconix and Cordel. The former is a US developer of a
plant-based polymer used to decarbonise everyday consumer products.
The company has been on AIM since 2012, but only achieved
commercial breakthrough in 2020 with a bio-polymer ingredient for
dishwasher detergent. Close to 150 consumer products now use
Itaconix ingredients, involving major retailers such as Amazon,
Walmart, Aldi and Tesco. With opportunities to grow into personal
hygiene and beauty products, the company is forecast to breakeven
in its current nancial year. Cordel oated on AIM in 2018, and a
year later acquired its current business activity which is an AI
analytical software platform to automate inspection and management
of rail infrastructure. Using highly accurate Light Detection and
Ranging sensors mounted onto train rolling stock, the technology
replaces human surveying of vegetation infringements,
infrastructure clearances, crossings, drainage and ballast, in
order to meet regulatory requirements and prevent accidents.
Commercial success to date includes contracts with Network Rail,
Angel Trains and Amtrak. The company is forecast to breakeven in
the current nancial year.
A total of GBP7.9m was invested in these new investments in the
period. Three follow-on investments, totalling GBP0.9m, were made
in antibody developer Fusion Antibodies, re safety product
specialist Zenova, and sustainable biopesticides formulator Eden
Research. In each case, these were part of institutional placings
to provide working capital. The position in Amryt Pharmaceuticals
was sold following the recommended offer in January by Chiesi
Farmaceutici S.p.A. to acquire the company. Angle, the liquid
biopsy developer, was also sold on concerns that its technology
could be superseded by alternative circulating tumour DNA
diagnostics. The share price has fallen materially since then.
After strong performance from the shares, the opportunity was taken
to reduce our large holding in AB Dynamics, the designer and
supplier of testing and simulation technology to the automotive
industry. This crystallised GBP1.6m in gains. Allergy Therapeutics,
Bonhill, Falanx and Itsarm (formerly In the Style) were all exited
as they had become sub-scale positions.
Outlook
Post the period end, AIM has continued to exhibit weakness, as
markets remain wary about the near-term trajectory of key economic
indicators. Whilst investors continue to fear the impact of an
overtightening of interest rates by central banks, the current
picture in the UK is one of moderating in ationary pressures,
broadly robust employment levels, and better than anticipated GDP
growth. There have also been some signs of a return of bid
activity, but the dead hand of sustained redemptions from UK equity
funds continues to negatively impact stock market liquidity and
momentum.
With almost all yardsticks pointing to the relative
undervaluation of smaller companies within the UK market, and the
UK's cheapness in a global context, alongside concerns about
falling IPO activity, there are growing demands for policy measures
to improve the attractiveness of a UK listing. This has resulted in
the Chancellor's recent call for de ned contribution pension funds
to allocate at least 5% to unlisted equities (the de nition of
which includes AIM quoted stocks) by 2030. More detail on this will
be contained within the Chancellor's Autumn Statement, but there is
the potential for this reform to create a structural ow of investor
funds into smaller UK public equities. Should this measure become
more targeted and emphasise the UK government's priorities towards
growth sectors such as technology, life sciences and renewables,
then it might prove bene cial to the Company's investment
universe.
In early August, the Company made two further material
investments involving the IPO of an engineering oil sensor
developer, Tan Delta , and a follow-on placing in existing holding,
Velocity Composites , to fund working capital for its growing
pipeline of contracts to supply advanced aircraft material. This is
an encouraging start to the second half of the year and continues
to utilise the available cash balance within the portfolio. Whilst
weak stock market conditions are a headwind to investment
performance, they also provide attractively valued opportunities
for the Company to continue backing innovative growth
companies.
Dr Paul Jourdan, David Stevenson and Scott McKenzie
Amati Global Investors
5 October 2023
Investment Portfolio
as at 31 July 2023
Original Fair
Amati Value
VCT bookcost Movement
at 4 Aggregate in Market
May 2018(#) Cost* Cost** Valuation year*** Cap Dividend % of net
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBPm Sector Yield(NTM) assets
----------------- ------ -------------------------------- --------------------- ----------- ----------- ---------- -------- -------------- ------------ ----------
TB Amati
UK Smaller
Companies
Fund 3,331 6,581 9,912 11,715 (941) - Financials 2.7% 7.0
Keywords Information
Studios plc 1,3 323 4,851 5,174 8,955 (5,479) 1,392.8 Technology 0.2% 5.4
AB Dynamics
plc 1 151 1,721 1,872 5,902 51 415.1 Industrials 0.4% 3.6
Aurrigo
International
plc 1 - 2,019 2,019 5,258 1,968 52.1 Industrials - 3.2
Learning
Technologies Information
Group plc 1,3 780 3,771 4,551 5,175 (4,499) 593.0 Technology 2.2% 3.1
Polarean Health
Imaging plc 1 - 4,899 4,899 4,716 (4,808) 42.8 Care - 2.8
Frontier
Developments Communication
plc 1 341 4,357 4,698 3,659 642 231.7 Services - 2.2
Water
Intelligence
plc 2 180 1,038 1,218 3,585 (1,059) 76.4 Industrials - 2.2
Health
MaxCyte Inc. 1 449 1,536 1,985 3,510 (1,203) 360.7 Care - 2.1
Ensilica Information
plc 1 - 2,450 2,450 3,038 (1,715) 48.4 Technology - 1.8
Top Ten 33,223 38,778 55,513 (17,043) 33.4
----------------- ------ -------------------------------- --------------------- ----------- ----------- ---------- -------- -------------- ------------ ----------
Fadel Partners, Information
Inc 1 - 3,000 3,000 3,000 - 29.1 Technology - 1.8
Sosandar Consumer
plc 1 - 1,872 1,872 2,958 (225) 58.8 Discretionary - 1.8
Craneware Health
plc 2,3 298 3,601 3,899 2,922 (129) 480.2 Care 2.3% 1.8
Chorus
Intelligence
Limited
Ordinary Information
Shares 1,4 - 301 301 151 - - Technology - 0.1
Chorus
Intelligence
Limited 10%
Convertible Information
Loan Notes 1,4 - 2,699 2,699 2,699 - - Technology - 1.6
GB Group Information
plc 2 236 2,967 3,203 2,828 (1,149) 3,067.0 Technology 1.9% 1.7
Solid State
plc 2 260 260 520 2,688 (21) 147.4 Industrials 1.6% 1.6
Consumer
Nexteq plc 2 419 3,777 4,196 2,353 (488) 89.8 Discretionary 2.7% 1.4
Saietta Group Consumer
plc 1,3 - 5,100 5,100 2,307 (268) 44.3 Discretionary - 1.4
SRT Marine Information
Systems plc 1 709 465 1,174 2,117 346 105.7 Technology - 1.3
Northcoders Consumer
Group plc 1 - 2,111 2,111 2,093 (1,212) 15.2 Discretionary - 1.2
Top Twenty 59,376 66,853 81,629 (20,189) 49.1
----------------- ------ -------------------------------- --------------------- ----------- ----------- ---------- -------- -------------- ------------ ----------
Diaceutics Health
plc 1 - 1,557 1,557 2,049 (102) 84.5 Care - 1.2
2 Degrees Information
Limited A1 1 - 1,867 1,867 1,867 - - Technology - 1.1
2 Degrees Information
Limited A2 1 133 133 133 - - Technology - 0.1
Intelligent
Ultrasound Health
plc 1 - 2,194 2,194 1,982 (176) 29.4 Care - 1.2
Brooks Macdonald
Group plc 2,3 - 1,154 1,154 1,902 (72) 346.0 Financials 4.1% 1.1
Accesso
Technology Information
Group plc 1,3 - 221 221 1,665 (144) 311.8 Technology - 1.0
Arecor
Therapeutics Health
plc 1 - 1,910 1,910 1,604 (253) 58.2 Care - 1.0
Itaconix
plc 1 - 2,000 2,000 1,529 (471) 26.3 Industrials - 0.9
Belvoir Group
plc 1 404 379 783 1,512 64 70.8 Real Estate 5.2% 0.9
Equals Group
plc 1 - 1,137 1,137 1,472 208 183.9 Financials - 0.9
Clean Power
Hydrogen
plc 1 - 2,500 2,500 1,306 (28) 63.0 Industrials - 0.8
Eden Research
plc 1 - 1,056 1,056 1,005 63 22.9 Materials - 0.6
Health
Ixico plc 1 - 1,367 1,367 927 (195) 9.2 Care - 0.5
Kinovo plc 2 - 1,681 1,681 927 215 26.7 Industrials - 0.5
Velocys plc 1 - 2,248 2,248 869 (1,614) 26.6 Energy - 0.5
Cordel Group Information
plc 1 - 915 915 839 (76) 11.0 Technology - 0.5
Byotrol plc
Ordinary
shares 1,4 511 348 859 450 (50) 8.2 Materials - 0.3
Byotrol plc
9% Convertible
loan notes 1,4 - 350 350 350 (3) - Materials - 0.2
One Media
iP Group Communication
plc 1 - 1,240 1,240 797 (266) 10.0 Services - 0.5
Eneraqua
plc 1 - 1,955 1,955 776 (1,270) 36.5 Industrials 1.4% 0.5
Property
Franchise
Group plc
(The) 2 155 197 352 767 59 83.9 Real Estate 5.4% 0.5
Getech Group
plc 1 - 1,700 1,700 757 (325) 6.6 Energy - 0.5
Flylogix
Limited
Ordinary Information
shares 1,4 - 300 300 - - - Technology - -
Flylogix
Limited 10%
Convertible Information
loan notes 1,4 - 2,700 2,700 625 - - Technology - 0.4
Block Energy
plc 1 - 3,000 3,000 614 51 8.3 Energy - 0.4
Glantus Holdings Information
plc 1 - 3,000 3,000 559 294 9.7 Technology - 0.3
Information
Netcall plc 2 - 110 110 551 (31) 144.3 Technology 0.9% 0.3
Hardide plc 1 695 1,666 2,361 497 (90) 6.5 Materials - 0.3
Velocity
Composites
plc 1 496 307 803 483 (161) 15.5 Industrials - 0.3
Elexsys Energy
Ordinary Information
shares 1,4 - 200 200 - - - Technology - -
Elexsys Energy
8% Convertible Information
loan notes 1,4 - 1,800 1,800 450 (450) - Technology - 0.3
Science in Consumer
Sport plc 2 804 1,135 1,939 431 45 25.0 Staples - 0.3
Creo Medical Health
Group plc 1,3 - 1,613 1,613 413 161 115.6 Care - 0.2
Verici Dx Health
Limited 1 - 800 800 400 (40) 17.0 Care - 0.2
Zenova Group
plc 1 - 900 900 346 (218) 4.8 Materials - 0.2
Strip Tinning
Holdings
plc 1 - 1,054 1,054 285 (57) 7.7 Industrials - 0.2
Fusion
Antibodies Health
plc 1 565 1,829 2,394 209 (895) 3.7 Care - 0.1
Brighton
Pier Group Consumer
plc (The) 1 314 175 489 171 (99) 16.8 Discretionary - 0.1
MyCelx
Technologies
Corporation 1 440 205 645 170 48 9.7 Industrials - 0.1
Rosslyn Data
Technologies Information
plc 1 614 1,308 1,922 159 (88) 1.5 Technology - 0.1
Rua Life
Sciences Health
plc 1 - 930 930 155 (298) 4.4 Care - 0.1
Synectics Information
plc 2 - 342 342 143 (27) 18.7 Technology 3.7% 0.1
Health
Anpario plc 2 19 109 128 94 (694) 49.3 Care 5.4% 0.1
Trellus Health Health
plc 1 - 700 700 88 (52) 8.1 Care - 0.1
Aptamer Group Health
plc 1 - 3,672 3,676 47 (1,146) 1.0 Care - -
Merit Group Communication
plc 1 - 596 596 30 9 10.1 Services - -
FireAngel
Safety
Technology Consumer
Group plc 1 - 690 690 19 (36) 9.1 Discretionary - -
Investments
held at nil
value 691 - - - -
Total
investments 116,626 129,815 114,053 (28,399) 68.6
----------------- ------ -------------------------------- --------------------- ----------- ----------- ---------- -------- -------------- ------------ ----------
Money market
funds
Royal London
Short Term
Money Market
Fund 18,325 18,325 18,370 45
Goldman Sachs
Sterling
Liquid Reserves
Fund 9,868 9,868 9,868
Northern
Trust Global
The Sterling
Fund 9,868 9,868 9,868
----------------- ------ -------------------------------- --------------------- ----------- ----------- ---------- -------- -------------- ------------ ----------
Total money
market funds 38,061 38,061 38,106 22.9
----------------- ------ -------------------------------- --------------------- ----------- ----------- ---------- -------- -------------- ------------ ----------
Other net
current assets 14,224 8.5
----------------- ------ -------------------------------- --------------------- ----------- ----------- ---------- -------- -------------- ------------ ----------
Net assets 166,383 100.0
----------------- ------ -------------------------------- --------------------- ----------- ----------- ---------- -------- -------------- ------------ ----------
(1) Qualifying holdings.
(2) Part qualifying holdings.
(3) These investments are also held by other funds managed by Amati.
(4) The investments of Ordinary Shares and Convertible loan notes: Flylogix Limited ("Flylogix")
consists of 392 Ordinary Shares in Flylogix at fair value of nil and 10% Convertible Loan
Notes at fair value of GBP625,000. Flylogix was placed into administration on 2 March 2023.
The fair value of the investment held is the amount reasonably expected to be receivable from
the administrator. Elexsys Energy plc ("Elexsys") consists of 202,737 Ordinary Shares in Elexsys
at fair value of nil and 8% Convertible Loan Notes at fair value of GBP450,000. Interest at
8% on the convertible loan notes in Elexsys is being accrued and the interest receivable of
GBP120,000 to the Balance Sheet date has been accrued. If Elexsys is admitted to AIM with
a minimum equity raise of GBP5m, the Convertible Loan Notes are convertible into Ordinary
Shares after listing. Chorus Intelligence Limited ("Chorus") consists of 232 Ordinary Shares
in Chorus at fair value of GBP150,000 and 10% Convertible Loan Notes at fair value of GBP2,699,000.
Interest at 10% on the convertible loan notes in Chorusis being accrued and the interest receivable
of GBP372,000 to the Balance Sheet date is accrued. Byotrol plc ("Byotrol") consists of 25,000,001
Ordinary Shares in Byotrol at fair value of GBP450,000 and 9% Convertible Loan Notes at fair
value of GBP350,000. Interest at 9% on the convertible loan notes in Byotrol is being paid
with GBP16,000 received in the period and GBP3,000 accrued at the Balance Sheet date.
# This column shows the original book cost of the investments acquired from Amati VCT plc
on 4 May 2018.
*This column shows the bookcost to the Company as a result of market trades and events.
**This column shows the aggregate book cost to the Company either as a result of trades and
events or asset acquisition.
***This column shows the movement in fair value, the unrealised gains/(losses) on investments
during the year, see notes 1 and 8 below for further details.
NTM Next twelve months consensus estimate (Source: Refinitiv, Fidessa and Amati Global Investors)
The Manager rebates the management fee of 0.75% on TB Amati UK Smaller Companies Fund and
this is included in the yield.
All holdings are in ordinary shares unless otherwise stated.
Investments held at nil value: Celoxica Holdings plc(1) , Leisurejobs.com Limited(1) (previously
The Sportweb.com Limited), Rated People Limited(1), Sorbic International plc, TCOM Limited(1),
VITEC Global Limited(1).
As at 31 July 2023 the percentage of the Company's portfolio held in qualifying holdings for
the purposes of Section 274 of the Income and Corporation Taxes Act is 88.33%.
Principal and Emerging Risks
The Company's assets consist of equity (66%), xed interest
investments including convertible loan notes (2%), money market
funds (23%) and cash (9%). Its principal risks include investment
risk, venture capital approval risk, compliance risk, internal
control risk, nancial risk, economic risk, operational risk and
concentration risk. These risks and the ways in which they are
managed are described in Principal and Emerging Risks and notes 15
to 18 to the Financial Statements in the Company's Report and
Financial Statements for the year ended 31 January 2023. The war
between Russia and Ukraine continues to cause economic uncertainty.
Ongoing high levels of in ation and increased interest rates aimed
at reducing in ation cause stress to investee companies and affect
the ability of companies to raise nance in the market. The
Company's principal and emerging risks have not changed materially
since the date of that report.
Going Concern
The condensed financial statements have been prepared on a going
concern basis (Note 2 below).
Statement of Directors' Responsibilities
in respect of the half-yearly financial report
We confirm that to the best of our knowledge:
-- the condensed set of financial statements which has been
prepared in accordance with FRS 104 "Interim Financial Reporting"
gives a true and fair view of the assets, liabilities, financial
position and profit or loss of the Company;
-- the Chairman's Statement and Fund Manager's Review
(constituting the interim management report) include a true and
fair review of the information required by DTR4.2.7R of the
Disclosure Guidance 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;
-- the Statement of Principal and Emerging Risks above is a fair
review of the information required by DTR4.2.7R, being a
description of the principal risks and uncertainties for the
remaining six months of the year; and
-- the nancial statements include a fair review of the
information required by DTR4.2.8R of the Disclosure Guidance and
Transparency Rules, being related party transactions that have
taken place in the rst six months of the current nancial year and
that have materially affected the nancial position or performance
of the Company during that period, and any changes in the related
party transactions described in the last annual report that could
do so (Note 10 below).
For and on behalf of the Board
Fiona Wollocombe
Chairman
5 October 2023
Income Statement (unaudited)
for the six months ended 31 July 2023
Six months ended Six months ended Year ended
31 July 2023 31 July 2022 31 January 2023
----- ------------------------------ ------------------------------ ------------------------------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- --------- --------- -------- --------- --------- -------- --------- ---------
Loss on
investments - (28,903) (28,903) - (40,980) (40,980) - (55,748) (55,748)
Investment
income 6 1,486 - 1,486 489 - 489 1,810 - 1,810
Investment
management
fee (376) (1,127) (1,503) (497) (1,490) (1,987) (930) (2,788) (3,718)
Other expenses (283) - (283) (309) - (309) (588) - (588)
Profit/(loss)
on ordinary
activities
before
taxation 827 (30,030) (29,203) (317) (42,470) (42,787) 292 (58,536) (58,244)
Taxation on - - -
ordinary
activities - - - - - -
--------------- ----- -------- --------- --------- -------- --------- --------- -------- --------- ---------
Profit/(loss)
and total
comprehensive
income
attributable
to
shareholders 827 (30,030) (29,203) (317) (42,470) (42,787) 292 (58,536) (58,244)
--------------- ----- -------- --------- --------- -------- --------- --------- -------- --------- ---------
Basic and
diluted
earnings
/(loss) per
ordinary
share 4 0.55p (19.89)p (19.34)p (0.21)p (28.63)p (28.84)p 0.19p (38.99)p (38.80)p
--------------- ----- -------- --------- --------- -------- --------- --------- -------- --------- ---------
The total column of this Income Statement represents the profit
and loss account of the Company. The supplementary revenue and
capital columns have been prepared in accordance with The
Association of Investment Companies' Statement of Recommended
Practice. There is no other comprehensive income other than the
results for the period discussed above. Accordingly a Statement of
Total Comprehensive Income is not required.
All the items above derive from continuing operations of the
Company.
The accompanying notes are an integral part of the
statement.
Statement of Changes in Equity (unaudited)
Non-distributable reserves Distributable reserves
------------------------------------------------------------------ ----------------------------------------------------
Capital Capital
Share Share Merger redemption reserve Special Capital reserve Revenue Total
capital premium reserve reserve (non-distributable) reserve (distributable) reserve reserves
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- --------- --------- --------- ----------- -------------------- --------- ----------------- --------- -----------
For the six
months ended
31 July 2023
Opening balance
as at 1
February
2023 7,578 940 425 908 12,918 177,385 3,108 (1,981) 201,281
---------------- --------- --------- --------- ----------- -------------------- --------- ----------------- --------- -----------
(Loss)/profit
and total
comprehensive
income for the
period - - - - (28,407) - (1,623) 827 (29,203)
---------------- --------- --------- --------- ----------- -------------------- --------- ----------------- --------- -----------
Total
comprehensive
income for the
period 7,578 940 425 908 (15,489) 177,385 1,485 (1,154) 172,078
Contributions
by and
distributions
to
shareholders:
Repurchase of
shares (62) - - 62 - (1,401) - - (1,401)
Shares issued 44 937 - - - - - - 981
Dividends paid - - - - - (5,275) - - (5,275)
(18) 937 - 62 - (6,676) - - (5,695)
Closing balance
as at 31 July
2023 7,560 1,877 425 970 (15,489) 170,709 1,485 (1,154) 166,383
---------------- --------- --------- --------- ----------- -------------------- --------- ----------------- --------- -----------
For the six months ended 31 July 2022
Opening balance
as at 1
February
2022 6,836 109,545 425 819 80,666 57,160 (6,104) (2,273) 247,074
---------------- --------- --------- --------- ----------- -------------------- --------- ----------------- --------- -----------
(Loss)/profit
and total
comprehensive
income for the
period - - - - (54,543) - 12,073 (317) (42,787)
---------------- --------- --------- --------- ----------- -------------------- --------- ----------------- --------- -----------
Total
comprehensive
income for the
period 6,836 109,545 425 819 26,123 57,160 5,969 (2,590) 204,287
Contributions
by and
distributions
to
shareholders:
Repurchase of
shares (36) - - 36 - (1,044) - - (1,044)
Shares issued 795 25,396 - - - - - - 26,191
Costs of share
issues - (116) - - - - - - (116)
Dividends paid - - - - - (6,803) - - (6,803)
---------------- --------- --------- --------- ----------- -------------------- --------- ----------------- --------- -----------
759 25,280 - 36 - (7,847) - - 18,228
Closing balance
as at 31 July
2022 7,595 134,825 425 855 26,123 49,313 5,969 (2,590) 222,515
---------------- --------- --------- --------- ----------- -------------------- --------- ----------------- --------- -----------
The accompanying notes are an integral part of the
statement.
Non-distributable reserves Distributable reserves
------------------------------------------------------------------- ----------------------------------------------------
Capital Capital
Share Share Merger redemption reserve Special Capital reserve Revenue Total
capital premium reserve reserve (non-distributable) reserve (distributable) reserve reserves
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- --------- ---------- --------- ----------- -------------------- --------- ----------------- --------- -----------
For the year ended 31
January
2023
Opening balance
as at 1
February
2022 6,836 109,545 425 819 80,666 57,160 (6,104) (2,273) 247,074
(Loss)/profit
and total
comprehensive
income for the
year - - - - (67,748) - 9,212 292 (58,244)
---------------- --------- ---------- --------- ----------- -------------------- --------- ----------------- --------- -----------
Total
comprehensive
income for the
year 6,836 109,545 425 819 12,918 57,160 3,108 (1,981) 188,830
Contributions
by and
distributions
to
shareholders:
Repurchase of
shares (89) - - 89 - (2,451) - - (2,451)
Shares issued 831 26,351 - - - - - - 27,182
Costs of share
issues - (132) - - - - - - (132)
Dividends paid - - - - - (12,110) - - (12,110)
Cancellation
of share
premium - (134,824) - - - 134,824 - - -
Expenses in
relation
to
cancellation
of share
premium
accounts - - - - - (38) - - (38)
---------------- --------- ---------- --------- ----------- -------------------- --------- ----------------- --------- -----------
742 (108,605) - 89 - 120,225 - - 12,451
Closing balance
as at 31
January
2023 7,578 940 425 908 12,918 177,385 3,108 (1,981) 201,281
---------------- --------- ---------- --------- ----------- -------------------- --------- ----------------- --------- -----------
The accompanying notes are an integral part of the
statement.
Condensed Balance Sheet (unaudited)
as at 31 July 2023
31 July 31 July 31 January
2023 2022 2023
Note GBP'000 GBP'000 GBP'000
Fixed assets
Investments held at fair value 8 114,053 157,405 142,354
--------------------------------------- ----- -------- -------- -----------
Current assets
Debtors 732 160 329
Cash and cash equivalents 53,109 66,058 59,595
Total current assets 53,841 66,218 59,924
--------------------------------------- ----- -------- -------- -----------
Current liabilities
Creditors: amounts falling due within
one year (1,511) (1,108) (997)
--------------------------------------- ----- -------- -------- -----------
(1,511) (1,108) (997)
-------- -------- -----------
Net current assets 52,330 65,110 58,927
Total assets less current liabilities 166,383 222,515 201,281
--------------------------------------- ----- -------- -------- -----------
Capital and reserves
Called-up share capital* 9 7,560 7,595 7,578
Share premium account* 1,877 134,825 940
Reserves 156,946 80,095 192,763
Equity shareholders' funds 166,383 222,515 201,281
Net asset value per share 5 110.0p 146.5p 132.8p
--------------------------------------- ----- -------- -------- -----------
* These reserves are not distributable.
The accompanying notes are an integral part of the balance
sheet.
Statement of Cash Flows (unaudited)
for the six months ended 31 July 2023
Six months Six months Year
ended ended ended
31 July 31 July 31 January
2023 2022 2023
GBP'000 GBP'000 GBP'000
------------------------------------------- ----------- ----------- -----------
Cash flows from operating activities
Investment income received 1,031 275 1,299
Investment management fees paid (1,655) (2,088) (3,910)
Other operating costs (295) (292) (572)
Net cash outflow from operating
activities (919) (2,105) (3,183)
----------- ----------- -----------
Cash flows from investing activities
Purchases of investments (8,116) (9,438) (12,422)
Sale of investments 8,244 27,774 31,166
Net cash inflow from investing activities 128 18,336 18,744
Net cash (outflow)/inflow before
financing (791) 16,231 15,561
-------------------------------------------- ----------- ----------- -----------
Cash flows from financing activities
Proceeds of share issues* - 24,931 24,931
Issue costs - (101) (132)
Share buy-backs (1,401) (1,294) (2,701)
Equity dividend paid (4,294) (5,542) (9,859)
Expenses in relation to cancellation
of share premium account - - (38)
Net cash (outflow)/inflow from
financing activities (5,695) 17,994 12,201
(Decrease)/increase in cash (6,486) 34,225 27,762
-------------------------------------------- ----------- ----------- -----------
Opening cash & cash equivalents 59,595 31,833 31,833
Closing cash & cash equivalents 53,109 66,058 59,595
----------- ----------- -----------
(*Adjusted to exclude non-cash dividends re-invested under the
Dividend Re-investment Scheme)
The accompanying notes are an integral part of the
statement.
Notes to the Financial Statements (unaudited)
for the six months ended 31 July 2023
1. Basis of Accounting
The Half-yearly nancial Report covers the six months ended 31
July 2023. The condensed nancial statements for this six month
period have been prepared in accordance with FRS 104 ("Interim
nancial reporting") and on the basis of the same accounting
policies as set out in the Company's Annual Report and Financial
Statements for the year ended 31 January 2023.
The comparative gures for the nancial year ended 31 January 2023
have been extracted from the latest published audited Annual Report
and Financial Statements. Those accounts have been reported on by
the Company's auditor and lodged with the Registrar of Companies.
The report of the auditor was (i) unquali ed, (ii) did not include
a reference to any matters to which the auditors drew attention by
way of emphasis without qualifying their report, and (iii) did not
contain a statement under section 498 (2) or (3) of the Companies
Act 2006.
The nancial information set out in this report has not been
audited and does not comprise full nancial statements within the
meaning of Section 434 of the Companies Act 2006. No statutory
accounts in respect of any period after 31 January 2023 have been
reported on by the Company's auditors.
2. Going concern
The nancial statements have been prepared on a going concern
basis and on the basis that approval as an investment trust company
will continue to be met.
The Directors have made an assessment of the Company's ability
to continue as a going concern and are satis ed that the Company
has the resources to continue in business for the foreseeable
future, being a period of at least 12 months from the date these
nancial statements were approved.
In making the assessment, the Directors of the Company have
considered the likely impacts of international and economic
uncertainties on the Company, operations and the investment
portfolio. These include, but are not limited to, the war in
Ukraine, political and economic instability in the UK and in
ationary pressures.
The Directors noted the Company's cash balance exceeds any short
term liabilities, it holds a portfolio of listed investments and is
able to meet the obligations of the Company as they fall due. The
surplus cash enables the Company to meet any funding requirements
and nance future additional investments. The Company is a closed
end fund, where assets are not required to be liquidated to meet
day to day redemptions.
The Directors have completed stress tests assessing the impact
of changes in market value and income with associated cash flows.
In making this assessment, they have considered plausible downside
scenarios. These tests have been 'stressed' for inflation, as well
as a severe but plausible and sudden downturn in market conditions
in which asset value and income are significantly impaired. The
conclusion was that in a plausible downside scenario the Company
could continue to meet its liabilities. Whilst the economic future
is uncertain, and the Directors believe that it is possible the
Company could experience further reductions in income and/or market
value, the opinion of the Directors is that this should not be to a
level which would threaten the Company's ability to continue as a
going concern.
The Directors are not aware of any material uncertainties that
may cast significant doubt upon the Company's ability to continue
as a going concern, having taken into account the liquidity of the
Company's investment portfolio and the Company's financial position
in respect of its
cash flows and investment commitments (of which there are none
of significance). Therefore, the financial statements have been
prepared on the going concern basis.
3. Segmental reporting
The directors are of the opinion that the Company is engaged in
a single segment of business, being investment business.
4. Earnings per share
Six months Six months ended 31 July Year ended 31 January
ended 31 July 2023 2022 2023
--------- ---------------------------------- ---------------------------------- -----------------------------------
Basic Basic Basic
and and and
diluted diluted diluted
Net Earnings Net Earnings Net Earnings
profit/ Weighted per profit/ Weighted per profit/ Weighted per
(loss) Average share (loss) Average share (loss) Average share
GBP'000 shares pence GBP'000 shares pence GBP'000 shares pence
--------- --------- ------------ --------- --------- ------------ --------- ---------- ------------ ---------
Revenue 827 0.55p (317) (0.21p) 292 0.19p
Capital (30,030) (19.89)p (42,470) (28.63p) (58,536) (38.99p)
--------- --------- ------------ --------- --------- ------------ --------- ---------- ------------ ---------
Total (29,203) 150,971,319 (19.34)p (42,787) 148,351,595 (28.84p) (58,244) 150,110,568 (38.80p)
--------- --------- ------------ --------- --------- ------------ --------- ---------- ------------ ---------
5. Net Asset Value ("NAV") per share
31 July 2023 31 July 2022 31 January 2023
---------- ---------------------------------- ---------------------------------- ----------------------------------
NAV NAV NAV
Net per Net per Net per
assets Ordinary share assets Ordinary share assets Ordinary share
GBP'000 shares pence GBP'000 shares pence GBP'000 shares pence
---------- --------- ------------ --------- --------- ------------ --------- --------- ------------ ---------
Ordinary
shares 166,383 151,201,869 110.0p 222,515 151,939,444 146.5p 201,281 151,548,993 132.8p
---------- --------- ------------ --------- --------- ------------ --------- --------- ------------ ---------
6. Income
Six months Six months ended Year ended
ended
31 July 2023 31 July 2022 31 January
2023
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------ ------------------------- ---------------------------- -----------------------
Dividends from UK
companies 425 478 843
Dividends from money
market funds 430 - -
UK loan stock interest 221 - 447
Interest from deposits 410 11 519
Other income - - 1
------------------------------------ -------------------------
1,486 489 1,810
------------------------------------ ------------------------- ---------------------------- -----------------------
7. Dividends
Six months Six months Year
ended ended ended
31 July 31 July 31 January
2023 2022 2023
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
--------------------------------- -------------- -------------- ------------
Final dividend for the year
ended 31 January 2023 of 3.50p
per share paid on 21 July
2023 5,275 - -
Interim dividend for the year
ended 31 January 2023 of 3.50p
per share paid on 25 November
2022 - - 5,307
Final dividend for the year
ended 31 January 2022 of 4.50p
per share paid on 23 July
2021 - 6,803 6,803
--------------------------------- -------------- -------------- ------------
5,275 6,803 12,110
--------------------------------- -------------- -------------- ------------
8. Investments
Level 1
Traded on Level 3 Unquoted
AIM investments Total
GBP'000 GBP'000 GBP'000
----------------------------------------------------------- ----------- ----------------- ---------
Opening cost as at 1 February
2023 120,593 9,071 129,664
Opening investment holding
gains 17,246 (4,328) 12,918
Opening unrealised loss recognised
in realised reserve (228) - (228)
-----------------------------------------------------------
Opening fair value as at 1
February 2023 137,611 4,743 142,354
----------------------------------------------------------- ----------- ----------------- ---------
Analysis of transactions during
the period:
Purchases at cost 6,214 2,677 8,891
Disposals - proceeds received (8,263) (5) (8,268)
* realised loss on disposals (1,038) (10) (1,048)
* unrealised losses during the period (27,370) (506) (27,876)
-----------------------------------------------------------
Closing fair value as at
31 July 2023 107,154 6,899 114,053
----------------------------------------------------------- ----------- ----------------- ---------
Closing cost at 31 July 2023 118,097 11,718 129,815
Closing investment holding
losses as at 31 July 2023 (10,715) (4,819) (15,534)
Closing unrealised loss recognised
in realised reserve at 31
July 2023 (228) - (228)
-----------------------------------------------------------
Closing fair value as at
31 July 2023 107,154 6,899 114,053
----------------------------------------------------------- ----------- ----------------- ---------
Equity shares 107,154 2,775 109,929
Convertible loan notes - 4,124 4,124
----------------------------------------------------------- ----------- ----------------- ---------
Closing fair value as at
31 July 2023 107,154 6,899 114,053
----------------------------------------------------------- ----------- ----------------- ---------
There have been no level 2 investments during the period.
The Company measures fair values using the following fair value
hierarchy into which the fair value measurements are categorised. A
fair value measurement is categorised in its entirety on the basis
of the lowest level input that is signi cant to the fair value
measurement of the relevant asset as follows:
Level 1 - the unadjusted quoted price in an active market for
identical assets or liabilities that the entity can access at the
measurement date.
The Company's Level 1 investments are AIM traded companies and
fully listed companies.
Level 2 - inputs other than quoted prices included within Level
1 that are observable (i.e. developed using market data) for the
asset or liability, either directly or indirectly.
When the Company holds Level 2 assets they are valued using
models with signi cant observable market parameters.
Level 3 - inputs are unobservable (i.e. for which market data is
unavailable) for the asset or liability.
Level 3 fair values are measured using a valuation technique
that is based on data from an unobservable market. Discussions are
held with management, statutory accounts, management accounts and
cash ow forecasts are obtained, and fair value is based on
multiples of sales and earnings.
The valuation techniques used by the Company are explained in
the Annual Report and Financial Statements for the year ended 31
January 2023.
9. Called Up Share Capital
Ordinary shares (5p shares) 2023 2023
Number GBP'000*
------------------------------ ------------ ----------
Allotted, issued and fully
paid at 1 February 151,548,993 7,578
Issued during the period 882,833 44
Repurchase of own shares for
cancellation (1,230,557) (62)
------------------------------ ------------ ----------
At 31 July 151,201,269 7,560
------------------------------ ------------ ----------
(* Nominal value)
During the period to 31 July 2023, 882,833 Ordinary Shares (31
July 2022: 15,912,822; 31 January 2023: 16,617,329) were issued for
a net consideration of GBP981,000 (31 July 2022: GBP26,075,000; 31
January 2023: GBP27,050,000).
During the period to 31 July 2023, 1,230,557 Ordinary Shares (31
July 2022: 694,175; 31 January 2023: 1,789,133) were bought back
and cancelled for an aggregate consideration of GBP1,401,000 (31
July 2022: GBP1,044,000; 31 January 2023: GBP2,451,000).
10. Related parties
The Company retains Amati Global Investors as its Manager. The
number of ordinary shares in the Company (all of which are held
bene cially) by certain members of the management team are:
31 July
2023 shares
held
----------------- -------------
Paul Jourdan* 615,606
David Stevenson 26,753
(* includes 25,562 shares held by a Person Closely Associated to
Paul Jourdan)
Save as disclosed above there is no con ict of interest between
the Company, the duties of the directors, the duties of the
directors of the Manager and their private interests and other
duties.
11. Post balance sheet events
642,867 of the Company's shares have been bought back between 31
July 2023 and the date of this report.
Shareholder Information
Share price
The Company's shares are listed on the London Stock Exchange.
The bid price of the Company's shares can be found on Amati Global
Investors' website:
https://www.amatiglobal.com/fund/amati-aim-vct/fund-overview
Net Asset Value per Share
The Company normally announces its net asset value on a weekly
basis. Net asset value per share information can be found on Amati
Global Investors' website:
https://www.amatiglobal.com/fund/amati-aim-vct/fund-overview
Financial calendar
------------------- -------------------------------------------
31 January 2024 Year end
April 2024 Announcement of final results for the year
ended 31 January 2024
June 2024 Annual General Meeting
------------------- -------------------------------------------
Dividends
As disclosed in the Annual Report, the Company has now moved to
paying all cash dividends by bank transfer rather than by cheque.
Shareholders have the following options available for future
dividends:
-- Complete a bank mandate form and receive dividends via direct
credit to a UK domiciled bank account
-- Re-invest the dividends for additional shares in the Company
through the Dividend Re-investment Scheme (DRIS)
Shareholders who wish to complete a bank mandate form are
advised to contact The City Partnership on 01484 240910 or by
email: registrars@city.uk.com.
Shareholders may also register their bank account details and
register for the Dividend Re-investment Scheme themselves in the
Amati Investor Hub at https://amati-aim-vct.cityhub.uk.com.
Dividend Re-Investment Scheme
Shareholders who wish to have future dividends reinvested in the
Company's shares should contact The City Partnership (UK) Ltd on
01484 240 910 or email registrars@city.uk.com.
Shareholders may also register for the Dividend Re-investment
Scheme themselves in the Amati Investor Hub at
https://amati-aim-vct.cityhub.uk.com/
Table of Historic Returns from launch to 31 July 2023
attributable to shares issued by VCTs which have made up Amati AIM
VCT
Numis
NAV Total NAV Total Alternative
Return with Return Markets
dividends with dividends Total Return
Launch date Merger date re-invested not re-invested Index
---------------------- ---------------- --------------- -------------- ------------------ --------------
Singer & Friedlander
AIM 3 VCT ('C' 8 December
shares) 4 April 2005 2005 18.7% 10.2% -2.5%
Amati VCT plc 24 March 2005 4 May 2018 90.1% 59.7% -6.0%
Invesco Perpetual 8 November
AIM VCT 30 July 2004 2011 5.1% -14.3% 19.5%
Singer & Friedlander 29 January
AIM 3 VCT* 2001 n/a 8.2% 0.4% -30.0%
Singer & Friedlander 29 February 22 February
AIM 2 VCT 2000 2006 -17.1% -22.9% -64.3%
Singer & Friedlander 28 September 22 February
AIM VCT 1998 2006 -43.4% -25.2% 8.8%
---------------------- ---------------- --------------- -------------- ------------------ --------------
*Singer & Friedlander AIM 3 VCT changed its name to ViCTory
VCT on 22 February 2006, to Amati VCT 2 on 8 November 2011 and to
Amati AIM VCT on 4 May 2018.
Corporate Information
Directors Registrar
Fiona Wollocombe (Chairman) The City Partnership (UK) Limited
Julia Henderson The Mending Rooms
Brian Scouler Park Valley Mills
Meltham Road
Huddersfield
all of: HD4 7BH
8th Floor
100 Bishopsgate
London
EC2N 4AG
Secretary Auditor
LDC Nominee Secretary Limited BDO LLP
8th Floor, 100 Bishopsgate 55 Baker Street
London London
EC2N 4AG W1U 7EU
Fund Manager Solicitors
Amati Global Investors Limited Dickson Minto W.S.
8 Coates Crescent 16 Charlotte Square
Edinburgh Edinburgh
EH3 7AL EH2 4DF
VCT Status Adviser Bankers
Philip Hare & Associates LLP The Bank of New York Mellon
SA/NV
6 Snow Hill London Branch
London 160 Queen Victoria Street
EC1A 2AY London
EC4V 4LA
For enquiries relating to share certificates, shareholdings,
dividends or the Dividend Re-investment Scheme, please contact:
The City Partnership (UK) Limited
on +44 (0) 1484 240910
or email: registrars@city.uk.com
For enquiries relating to subscriptions and for general
enquiries, please contact:
Amati Global Investors
on +44 (0) 131 503 9115
or email: info@amatiglobal.com
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on this announcement (or
any other website) is incorporated into, or forms part of, this
announcement.
For further information, please contact the investor line at
Amati Global Investors on 0131 503 9115 or by email at
info@amatiglobal.com
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END
IR FSWFMIEDSEIS
(END) Dow Jones Newswires
October 06, 2023 02:00 ET (06:00 GMT)
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