TIDMPIRI
RNS Number : 6777U
Pires Investments PLC
31 July 2020
31 July 2020
Pires Investments PLC
("Pires" or the "Company")
Unaudited interim results for the six months ended 30 April
2020
Pires Investments plc (AIM: PIRI), the investment company
focused on next generation technology, is pleased to announce its
unaudited interim results for the six-month period ended 30 April
2020.
Highlights
-- Investment of GBP1.1 million in Sure Valley Ventures ("SVV")
-- Return of EUR803,000 achieved from the sale of Artomatix, one
of the companies within the SVV portfolio, representing a 60%
return on the initial SVV investment
-- Placing to raise gross proceeds of GBP1.06 million from both
new and existing investors to support the Company's technology
strategy
-- Direct investment of EUR250,000 in Getvisibility, an
artificial intelligence data management and security company
-- Increase in value of other portfolio investments, such as VR
Education Holdings plc (AIM: VRE) and Admix
-- New SVV investments made during the period, including Buymie,
the artificial intelligence based same day grocery delivery company
and Getvisibility, as well as a follow-on investment in Admix which
has developed a programmatic monetisation platform for gaming and
other entertainment developers
-- Cash at period end was GBP0.4 million , increasing to a current figure of GBP1.1 million
Chairman's Statement
The six-month period to 30 April 2020 was extremely busy for
Pires. In November 2019, the Company invested GBP1.1 million to
acquire a 13% interest in SVV, a venture capital fund focused on
investing in the software technology sector with a specific focus
on artificial intelligence ("AI"), the internet of things ("IoT")
and augmented and virtual reality ("AR/VR"). SVV has a portfolio of
12 investee companies at different stages of development spanning
these sectors. The details of the portfolio companies are set out
below:
Artificial intelligence
Getvisibility An artificial intelligence security company
addressing the substantial problem faced by
corporations in storing, sorting, accessing
and protecting data.
------------------------------------------------------
Nova Leah An artificial intelligence cyber-security
assessment and protection platform for connected
medical devices.
------------------------------------------------------
Buymie An artificial intelligence-based same day
grocery delivery company.
------------------------------------------------------
Internet of things
------------------------------------------------------
Wia Provides a platform solution for smart buildings,
helping people get back to work post Covid-19.
------------------------------------------------------
Cameramatics Platform enabling transport fleet managers
to reduce risk, increase driver safety and
comply with growing industry governance and
compliance.
------------------------------------------------------
Ambisense Provides sensors and an analysis platform
to allow real-time gas and environmental monitoring.
------------------------------------------------------
AR/VR
------------------------------------------------------
VR Education A virtual reality company which has transformed
how training and education are delivered and
consumed globally.
------------------------------------------------------
Admix A platform enabling the monetisation of interactive
programmatic brand placements in, for example,
video games.
------------------------------------------------------
Warducks A game development studio known for the production
of leading games and is soon to launch an
AR game that could be the next Pokémon
Go.
------------------------------------------------------
VividQ A deep tech software company which has developed
a framework for real-time 3D holographic displays
for use in heads-up displays and AR headsets
and glasses.
------------------------------------------------------
Volograms A reality capture and volumetric video company.
------------------------------------------------------
Other
------------------------------------------------------
NDRC Arclabs Fund Accelerator to source and develop start-up
opportunities for potential SVV investment.
------------------------------------------------------
This portfolio provides Pires with exposure to some key,
cutting-edge and rapidly growing technology sectors.
The investment in SVV has already prov ed to be successful for
Pires with a realisation and a cash distribution being achieved
soon after the investment, as a result of the sale of one of the
portfolio companies, Artomatix. This company uses AI software
technology that can substantially reduce the cost of creation for
animated films, video games and other applications. Artomatix was
sold at a valuation some 500% of the price of the original
investment in the company. Additionally, a number of the portfolio
companies have increased in value during the period. This
revaluation is principally based on subsequent funding rounds which
have taken place at higher valuations than at the time of the
initial investment.
Pires also made a direct investment of EUR250,000 in
Getvisibility, an artificial intelligence security company
addressing the substantial and increasing problem faced by
corporations in storing, sorting, accessing and protecting
data.
Further progress has also continued to be made since the period
end. Following the progress made by VR Education, which is listed
on AIM, SVV realised the value of its original investment through
the partial disposal of its holding, thereby returning around
GBP65,000 to the Company. This is the second cash realisation to be
made from the Company's investment in SVV in the seven months since
the initial investment. SVV has retained the balance of its holding
in VR Education and this company's share price , has also increased
further since the period end. In addition, the valuation of Buymie
has increased by some 200% since the original investment in April
2020, as part of a second round of investment of EUR5.8 million
into this company, in which SVV participated. Furthermore, SVV has
recently made a new investment in Volograms Limited, a company
whose technology enables consumers to create their own immersive AR
and VR content for use in apps, social media and VR headsets with a
particular application in the mobile VR market which is expected to
grow significantly.
For the period under review, the Company reported a loss before
taxation of GBP427,068 (six months ended 30 April 2019: profit
before taxation of GBP659,048) and net assets of GBP3,078,269 as at
the period end (31 October 2019: GBP2,564,582). The profit or loss
for the Company takes into account unrealised gains/losses in the
portfolio of quoted equity investments which are marked to market
which substantially explains the recent profit volatility, plus any
return from and adjustment to the carrying value of our unlisted
investments, which now comprise much the greater part of our
portfolio and are almost all in the technology sector. During the
period, the Company's residual holding in Eco (Atlantic Oil &
Gas) Limited ("Eco"), which has now been substantially disposed of,
reduced in value compared to the significant profits realised in
previous periods. Meanwhile, gains were made from the Company's
technology investments, principally driven by the sale of Artomatix
which has provided a 60% return on Pires original investment in
SVV. As at the period end, over 90% of the Company's net asset
value comprised cash, placing proceeds and technology-related
investments.
Although the Company's net assets have increased over the
period, we do not believe that this fairly represents the Company's
financial potential, given the scope for significant valuation
uplift of the companies within the portfolio. This is clearly
demonstrated by the gains, both realised and unrealised, that have
been achieved to date from the portfolio. Furthermore, it is worth
reiterating that realisations that are achieved within the SVV
portfolio result in cash distributions to the Company and are not
retained within the fund.
During the period, the Company undertook a placing to raise
gross proceeds of GBP1.06 million from both existing and new
investors, including the well-known technology investor Chris
Akers. All the cash from the placing was received post the period
end.
With regard to Covid-19, we have been fortunate in our ability
to be trading as normal. Furthermore, based on respected VC market
research firm Dealroom, who have evaluated the effect of the
pandemic on various industries, we firmly believe that the
investments we have made are well positioned against this backdrop.
Our investment strategy is focused on high-tech businesses with
significant potential for accelerated growth across sectors such as
AI, IoT and AR/VR . We remain encouraged by the progress made to
date by each of our portfolio companies and the outlook for the
respective sectors in which they operate.
In summary, our investment in the technology sector have already
proven to have been successful, with a substantial amount of our
original investment already having been returned to the Company.
Going forward, the Company is very well positioned to become a
leading next generation technology investment company with an
interest in a portfolio of high-growth technology companies that
have the potential for significant growth.
Peter Redmond
Chairman
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries:
Pires Investments plc
Peter Redmond, Chairman Tel: +44 (0) 20 3368 8961
Nicholas Lee, Director
Nominated Adviser
Cairn Financial Advisers LLP Tel: +44 (0) 20 7213 0880
Liam Murray/Ludovico Lazzaretti
Joint broker
Peterhouse Capital Limited Tel: +44 (0) 20 7469 0935
Lucy Williams/Duncan Vasey
Joint broker
Mirabaud Securities Limited Tel: +44 (0) 20 3167 7221
Peter Krens
Financial media and PR
Yellow Jersey Tel: +44 (0) 20 3004 9512
Sarah Hollins
Henry Wilkinson
Annabel Atkins
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 April 2020
Unaudited Unaudited Audited
6 months 6 months Year
ended ended Ended
30-Apr 30-Apr 31-Oct
2020 2019 2019
Continuing activities GBP GBP GBP
Notes
Revenue
Investment income - - -
Other income 327 291 1,368
Total revenue 327 291 1,368
(Losses) / Gains on investments
held at fair value through profit
or loss (261,023) 764,994 1,151,997
Operating expenses (166,046) (106,237) (287,855)
----------- ---------- -------------
Operating profit from continuing
activities (427,068) 659,048 865,510
Profit before taxation from
continuing activities (427,068) 659,048 865,510
Tax - - -
Profit for the period from continuing
activities (427,068) 659,048 865,510
----------- ---------- -------------
Profit for the period and total
comprehensive income attributable
to equity holders of the Company (427,068) 659,048 865,510
=========== ========== =============
Basic (loss)/ profit per share 3
Equity holders
Basic and diluted (0.64)p 1.46p 1.64p
UNAUDITED STATEMENT OF FINANCIAL POSITION
As at 30 April 2020
Unaudited Unaudited Audited
As at As at As at
30-Apr 30-Apr 31-Oct
2020 2019 2019
GBP GBP GBP
Notes
NON-CURRENT ASSETS
Property, plant - - -
and equipment
Investment in subsidiaries 1 1 1
TOTAL NON CURRENT
ASSETS 1 1 1
CURRENT ASSETS
Investments 1,683,989 1,477,056 1,165,409
Trade and other
receivables 1,030,584 15,876 11,307
Cash and cash equivalents 400,168 932,864 1,426,799
------------- ------------- -------------
TOTAL CURRENT ASSETS 3,114,741 2,425,796 2,603,315
------------- ------------- -------------
TOTAL ASSETS 3,114,742 2,425,797 2,603,616
============= ============= =============
EQUITY
Called up share
capital 11,996,156 11,996,156 11,996,156
Shares to be issued 132,500 - -
Share premium account 4,249,081 4,249,081 4,249,081
Share premium account 808,255 - -
for shares to be
issued
Retained earnings (14,272,390) (14,051,784) (13,845,322)
Capital redemption
reserve 164,667 164,667 164,667
------------- ------------- -------------
TOTAL EQUITY 4 3,078,269 2,358,120 2,564,582
LIABILITIES
CURRENT LIABILITIES
Trade and other
payables 36,473 67,677 38,934
------------- ------------- -------------
TOTAL LIABILITIES
AND CURRENT LIABILITIES 36,473 67,677 38,934
TOTAL EQUITY AND
LIABILITIES 3,114,742 2,425,797 2,603,516
============= ============= =============
UNAUDITED CASH FLOW STATEMENT
For the six months ended 30 April 2020
Unaudited Unaudited Audited
6 months 6 months Year ended
ended ended ended
30-Apr 30-Apr 31-Oct
2020 2019 2019
GBP GBP GBP
Cash flows from operating
activities (427,068) 659,048 865,510
Depreciation - - -
Realised (gain) on disposal
of investments (284,081) (120,060) (419,198)
Fair value movement in
investments 545,430 (644,934) (732,799)
Finance income (327) (291) (1,368)
(Increase)/decrease in
receivables (1,019,277) (4,519) 50
Increase/(decrease) in
payables (2,461) (71,618) (100,361)
Net cash absorbed by
operating activities (1,187,783) (182,374) (388,166)
Cash flows from investing
activities
Payments to acquire investments (1,699,909) - -
Proceeds of sale of investments 919,980 317,464 1,106,114
Finance income received 327 291 1,368
Net cash from investing
activities (779,602) 317,755 1,017,482
Cash flows from financing
activities
Proceeds receivable from
shares to be issued 940,755 749,455 749,455
Net cash from financing
activities 940,755 749,455 749,455
Net increase/(decrease)
in cash and cash equivalents
during the period (1,026,631) 884,836 1,378,771
Cash and cash equivalents
at beginning of the period 1,426,799 48,028 48,028
Cash and cash equivalents
at end of the period 400,168 932,864 1,426,799
Notes to the Unaudited Interim Report
1. GENERAL INFORMATION
Pires Investments plc (the "Company") is a company domiciled in
England whose registered office address is 9(th) Floor, 107
Cheapside, London EC3V 6DN. The condensed interim financial
statements of the Company for the six months ended 30 April 2020 is
that of the Company only.
The condensed interim financial statements do not constitute
statutory accounts as defined in Section 434 of the Companies Act
2006.
The financial information for the year ended 31 October 2019 has
been extracted from the statutory accounts for that period which
were prepared in accordance with International Financial Reporting
Standards ("IFRS"). The auditors' report on the statutory accounts
was unqualified. A copy of those financial statements has been
filed with the Registrar of Companies.
The financial information for the six months ended 30 April 2019
and 2020 was also prepared in accordance with IFRS.
The condensed interim financial statements do not include all of
the information required for full annual financial statements.
The condensed interim financial statements were authorised for
issue on 30 July 2020.
2. BASIS OF ACCOUNTING
The financial statements are unaudited and have been prepared on
the historical cost basis in accordance with International
Financial Reporting Standards as adopted by the EU ("IFRS") using
the same accounting policies and methods of computation as were
used in the annual financial statements for the year ended 31
October 2019. As permitted, the interim report has been prepared in
accordance with the AIM rules for Companies and is not compliant in
all respects with IAS 34 Interim Financial Statements. The
condensed interim financial statements do not include all the
information required for full annual financial statements and hence
cannot be construed as in full compliance with IFRS.
3. PROFIT / LOSS PER SHARE
The calculation of the basic loss per share is based on the
following data:
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
30-Apr 30-Apr 31-Oct
2020 2019 2019
GBP GBP GBP
(Loss)/ Profit on continuing activities
after tax (427,068) 659,048 865,510
Basic and fully diluted
Basic and fully diluted earnings per share have been computed
based on the following data:
Number of shares
Weighted average number of ordinary
shares for the period 66,472,465 45,238,999 52,900,940
Basic earnings per share from
continuing activities (p) (0.64) 1.46 1.64
There were no dilutive instruments that would give rise to diluted
earnings per share.
4. STATEMENT OF CHANGES IN EQUITY
Share Capital Shares to Share Premium Capital Retained Earnings Total
be issued Redemption
Reserve
GBP GBP GBP GBP GBP GBP
At 1 November
2018 11,914,727 - 3,581,055 164,667 (14,710,832) 949,617
Issue of Share
Capital 81,429 668,026 749,455
Profit for the
6 months ended
30 April 2019 - - - - 659,048 659,048
----------
At 30 April
2019 11,996,156 - 4,249,081 164,667 (14,051,784) 2,358,120
Profit for the
6 months ended
31 October 2019 - - - - 206,462 206,462
----------
At 31 October
2019 11,996,156 - 4,249,081 164,667 (13,845,322) 2,564,582
Shares to be
issued - 940,755 - - - 940,755
Loss for the
6 months ended
30 April 2020 - - - - (427,068) (427,068)
----------
At 30 April
2020 11,996,156 940,755 4,249,081 164,667 (14,272,390) 3,078,269
============= ---------- ============= =========== ================= =========
5. DISTRIBUTION OF INTERIM REPORT
Copies of the Interim Report for the six months ended 30 April
2020 are available on the Company's website,
www.piresinvestments.com .
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements re ect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR SDLFMSESSEIW
(END) Dow Jones Newswires
July 31, 2020 02:00 ET (06:00 GMT)
Grafico Azioni Mindflair (LSE:MFAI)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Mindflair (LSE:MFAI)
Storico
Da Apr 2023 a Apr 2024
