TIDMSURE
RNS Number : 8356G
Sure Ventures PLC
30 November 2020
Sure Ventures plc ('Sure Ventures' or 'the Company')
Unaudited Interim Report and Financial Statements
For the six months ended 30 September 2020
Sure Ventures plc is a London listed venture capital fund which
invests in early stage software companies in the rapidly growing
technology areas of augmented reality ('AR'), virtual reality
('VR'), Internet of Things ('IoT') and Artificial Intelligence
(AI). We are pleased to provide its Unaudited Interim Results to
September 2020.
SURE VALLEY VENTURES FUND
Sure Ventures made a EUR7million commitment to Sure Valley
Ventures Fund ('Sure Valley') representing an interest in Sure
Valley of approximately 25.9%. This commitment was made at a price
of EUR1.00 per share. The current NAV of the Sure Valley Ventures
ICAV is 1.004 Euros.Sure Valley has several investments across the
AI, AR, VR and IoT sectors.
CHAIRMANS STATEMENT
Dear Shareholders.
On behalf of my fellow directors, I am delighted to present the
interim results of Sure Ventures plc (the 'Company') for the six
months ended 30 September 2020.
FINANCIAL PERFORMANCE
The Company's performance for the half year to 30 September 2020
continues to be broadly in line with expectations producing a net
asset value return of +3.43% (30 September 2018 +0.08%) and a life
to date performance of -4.21%, which takes into account the
Company's initial formation costs incurred at incorporation as well
as ongoing operational costs. Throughout the period the Company
experienced one significant uplift in an underlying portfolio
valuation as a result of a completed funding round, booked profit
on a partial holding of one its two listed holdings by selling
stock to the value of the original investment, as well as
experiencing some volatility in the Company's other listed holding,
in what continues to be a challenging environment for investment
managers globally. During the period total shareholders' funds
continued to grow steadily by over GBP600k to GBP5.125m as at 30
September 2020.
PORTFOLIO UPDATE
The Company's holdings comprise its 25.9% investment in Sure
Valley Ventures Sub-Fund of Suir Valley Fund ICAV (the 'Fund') to
which the Company has made a total commitment of EUR7m (increasing
its initial commitment from EUR4.5m in September 2019), as well as
investments the Company holds directly - in Immotion Group plc
('Immotion'), a listed immersive virtual reality ('VR")
entertainment group and VividQ Limited, a privately owned deep
technology company pioneering the application of holography in
augmented reality ('AR') and VR. The Fund portfolio includes one
listed entity, VR Education Holdings plc ('VR Education') a
developer of VR software and immersive experiences with a specific
focus on education, and as at 30 September, a further twelve
privately held companies in the AR, VR, internet of things ('IoT')
and artificial, intelligence ('AI') space, including the Fund's
investment in VividQ held alongside the Company's direct
investment.
During the period the Fund announced the following additional
portfolio investments:
-- Buymie Technologies, an AI app-based home grocery delivery
service currently available in Dublin and Bristol allowing shoppers
to order from a selection of local stores including Tesco, Lidl and
Dunnes Stores in Ireland and the Co-op and Asda in the UK, enabling
grocery orders to be delivered by a personal shopper in as little
as one hour. The Fund invested in Buymie's Seed round, followed by
a Series A round less than three months later in June 2020 at a
valuation representing a x2 uplift of the initial investment.
-- Volograms Limited, a reality capture and volumetric video
company that allows users to capture volumetric holograms of
individuals that can then be incorporated in AR and VR creative
content for use in apps, social media and VR headsets. The mobile
AR market is forecast to grow from 1bn devices in 2019 to 2.5bn
compatible devices in 2024, representing potential revenue growth
from US$8bn to US$60bn.
These two additional investments bring their own unique
qualities and add to the already diverse and well-balanced
composition of the Fund's portfolio of investee companies.
The half year also featured extremely positive developments from
several of the investee companies including VR Education, which was
given a substantial boost on the announcement that HTC had taken a
stake in the company and entered into strategic partnership
agreements for the distribution and licence of the company's Engage
platform. On the back of this news the Fund sold stock to the value
of its original investment but continue to retain equity to the
equivalent of 4.38% of VR Education.
VividQ also entered into a tie-up with the major technology
player Arm, with the announcement of a collaboration enabling the
integration of holographic display in AR wearables and to make
VividQ's software compatible with Arm Mali graphic processing
units. VividQ represents the Company's largest exposure by virtue
of its direct investment and investment held in the Fund and the
move by Arm further endorses VividQ's technology.
Further information on the investment portfolio is provided in
the report of the Investment Manager which follows this
statement.
COMMITMENTS AND FUNDING
As previously mentioned, the Company has increased its
subscription to the Fund by EUR2.5m from its original investment of
EUR4.5m taking its total commitment to EUR7m, thereby increasing
its share in the Fund from 21.6% to 25.9%. This commitment was made
shortly before the Fund closed to new subscribers validating the
Company's belief that the Fund portfolio is now at a mature stage
and, with a number of investee companies preparing for further
funding rounds, there is demonstrable potential for further uplifts
to occur from initial valuations.
The Company believes that it will have sufficient access to
funding to meet its commitments to the Fund over the term of the
Fund's investment cycle, through a combination of available cash,
anticipated subscriptions and access to undrawn facilities.
INVESTMENT ENVIRONMENT
COVID-19 continues to have an impact on global economies and
whilst positive recoveries have been witnessed in many global stock
markets, particularly in recent weeks on the welcome news of the
development and rollout of effective vaccines, the investment
environment is likely remain challenging for a while to come.
However, the Company is confident that the Investment Manager will
continue to identify new businesses in which to invest within the
Company's chosen verticals of AR, VR, IoT and AI. Furthermore, the
Company and Investment Manager remain vigilant of risks associated
with COVID-19 and its effect on the portfolio companies.
DIVID
During the half year to 30 September 2020, the Company has not
declared a dividend (30 September 2019: GBPnil), in line with its
dividend policy. Pursuant to the Company's dividend policy the
directors intend to manage the Company's affairs to achieve
shareholder returns through capital growth rather than income.
During the six month period ending 30 September, the Company
received income following a distribution from the Fund in respect
of the partial sale of its holding of VR Education equity and the
Board considered that the working capital requirements and
anticipated draw down cycle of their current commitments did not
allow for sufficient excess liquidity as to declare a special
dividend.
The Company does not expect to receive a material amount of
dividends or other income from its direct or indirect investments.
It should not be expected that the Company will pay a significant
annual dividend, if any.
GEARING
The Company may deploy gearing of up to 20% of net asset value
(calculated at the time of borrowing) to seek to enhance returns
and for the purposes of capital flexibility and efficient portfolio
management. The Company's gearing is expected to primarily comprise
bank borrowings but may include the use of derivative instruments
and such other methods as the Board may determine. During the
period to 30 September 2020 the Company did not employ any
borrowing (30 September 2019: GBPnil).
The Board will continue to review the Company's borrowing, in
conjunction with the Company's Investment Manager on a regular
basis pursuant with the Company's overall cash management and
investment strategy.
OUTLOOK
Several investee companies remain at different stages of Series
A fundraising and upon completion the Company anticipates further
positive announcements to this effect within the next one-two
quarters. The investment pipeline remains robust and the Company
anticipates news in the near term of further portfolio additions,
subject to the completion of the Investment Manager's rigorous
filter process and satisfactory due diligence.
As noted in my Chairman's Statement that accompanied the annual
report for the year ending 31 March 2020, COVID-19 has forced
structural changes in the way that tasks are performed in the
workplace, in education and in entertainment. With physical
restrictions again being implemented by lockdown measures designed
to combat the spread of the virus, the Company believes that its
portfolio of investee companies and its investment strategy
continue to be well placed to benefit from new technologies being
adopted increasingly in our day-to-day lives.
SUBSCRIPTIONS
Following a subscription of 230,769 ordinary shares in July
2020, the total shares in admission as at 30 September 2020 stood
at 5,350,725.
The Investment Manager's Report following this Statement gives
further detail on the affairs of the Company. The Board is
confident of the long-term prospects for the Company in pursuit of
its investment objectives
Perry Wilson
Chairman
INVESTMENT MANAGEMENT REPORT
Sure Ventures plc (the "Company") was established to enable
investors to gain access to early stage technology companies in the
three exciting and expansive market verticals of augmented reality
and virtual reality (AR/VR), artificial intelligence (AI) and the
internet of things (IoT).
The Company gains access to deal flow ordinarily reserved for
venture capital funds and ultra-high net worth angel investors,
establishing a diversified software-centric portfolio with a clear
strategy. Listing the fund on the London Stock Exchange offers
investors:
-- Relative liquidity
-- A quoted share price
-- A high level of corporate governance.
It is often too expensive, too risky and too labour intensive
for investors to build a portfolio of this nature themselves. We
are leveraging the diverse skillsets of an experienced management
team who have the industry network to gain access to quality deal
flow, the expertise to complete extensive due diligence in target
markets and the entrepreneurial skills to help these companies to
mature successfully. Those investing in the Company will get
exposure to Sure Valley Ventures which in turn makes direct
investments in the above sectors in the UK & Ireland.
Augmented Reality & Virtual Reality
The AR/VR market is evolving at a rapid pace. The market is
expected to grow into a US$298 billion industry by 2023 growing at
a CAGR of over 60% during the forecast time frame [1]. Significant
investment in hardware capability and headset development has been
made by major industry players such as Facebook (through its Oculus
division), Microsoft, Sony (through its PlayStation division), HTC,
Samsung and others. This investment has ignited a new and exciting
industry within the technology sector. Hardware manufacturers and
AR/VR users are now searching for software capabilities/support and
content, and we believe that exposure to this industry via the Fund
and direct investment into software companies in the space will
offer significant upside potential for investors. Through our
network of technology accelerators, angel investor partners and
industry contacts in the AR/VR space, we expect to have a strong
chance of discovering the industry leaders of tomorrow.
Internet of Things
The Internet of Things (IoT) as a segment of the market is a
broad investment area; it is defined as the interconnection, via
the internet, of computing devices embedded in everyday objects,
enabling them to send and receive data. The market was estimated to
be worth US$212 billion dollars by the end of 2019 and is predicted
to reach a size of US$1.6 trillion by 2025[2]. The global growth
and advancement of internet coverage, the increased speed and
capability of connectivity and the mass market penetration of
smartphones/tablet sales has created significant opportunities for
software companies. Businesses from many industries are embracing
the efficiencies, cost savings and the "direct to consumer"
penetration this technological advancement has offered. We see
continued growth in this area and believe that investor returns
will benefit from exposure to the space.
Artificial Intelligence
According to the market research firm Tractica, the global
artificial intelligence software market is expected to experience
massive growth in the coming years, with revenues increasing from
around US$9.5 billion in 2018 to an expected US$118.6 billion by
2025[3]. The overall AI market includes a wide array of
applications such as natural language processing, robotic process
automation, and machine learning. McKinsey did an analysis
comparing the value created by advanced analytics versus AI and
machine learning across common enterprise use cases. McKinsey found
that 82% of enterprises adopting machine learning and AI have
gained a financial return from their investments. For companies
across all industries, the median return on investment from
cognitive technologies is 17%. AI and machine learning have the
potential to create an additional US$2.6T in value by 2020 in
Marketing and Sales, and up to US$2.0T in manufacturing and supply
chain planning.
[1] ARC market research Sep 2019
[2] Statista 2019
[3] Tractica 2019
PORTFOLIO BREAKDOWN
On 6 February 2018 the Company entered into a EUR4.5m commitment
to Sure Valley Ventures (the "Fund"), the sole sub-fund of Suir
Valley Funds ICAV and its investment was equalised into the Fund at
that date. On 31 August 2019 a further EUR2.5m was committed to the
Fund, taking the total investment in Sure Valley Ventures to EUR7m.
The first drawdown was made on 5 March 2018 and as at 30 September
2020, a total of EUR3,595,468 had been drawn down against this
commitment.
On 26 April 2019 the Company made a direct investment of
GBP500,000 into VividQ Limited, a deep tech start up with world
leading expertise in 3D holography. This investment represents the
second direct investment of the Company, alongside Immotion Group
PLC, which was announced on 24th April 2018. As detailed in the
Statement of Position included in the following financial
statements, these two investments alongside the Fund investment
represent the entire portfolio of Sure Ventures plc as at 30
September 2020.
On 3 July 2020, the Company announced a placing of 230,769
ordinary shares which were admitted to trading on the Specialist
Fund Segment of the London Stock Exchange on 9 June 2010, under the
existing ISIN: GB00BYWYZ460, taking the total shares in admission
as at 30 September 2020 to 5,350,725.
SUIR VALLEY FUNDS ICAV
Suir Valley Funds ICAV (the "ICAV") is a close-ended Irish
collective asset-management vehicle with segregated liability
between sub-funds incorporated in Ireland pursuant to the Irish
Collective Asset-management Vehicles Act 2015 and constituted as an
umbrella fund insofar as the share capital of the ICAV is divided
into different series with each series representing a portfolio of
assets comprising a separate sub-fund.
The ICAV was registered on 18 October 2016 and authorised by the
Central Bank of Ireland as a qualifying investor alternative
investment fund ("QIAIF") on 10 January 2017. The initial sub-fund
of the ICAV is Sure Valley Ventures, or the Fund, which had an
initial closing date of 1 March 2017. The Fund invests in a broad
range of software companies with a focus on companies in the AR/VR,
AI and IoT sectors.
As at 30 September 2020 the Fund had commitments totalling
EUR27m and had made thirteen direct investments into companies
spanning the AR/VR, AI and IoT sectors. One of these investments
was sold in the prior year, giving the Fund its first realised gain
on exit of around 5X return on investment. On 12 March 2018,
Immersive VR Education Limited, the Fund's first investment,
completed a flotation on the London Stock Exchange (AIM) and the
Dublin Stock Exchange (ESM). The public company is now called VR
Education Holdings PLC - ticker VRE. VRE was the first software
company to list on the ESM since that market's inception. Following
an increase in the share price of VRE, in June 2020 the Fund sold
3.3m of its 13.8m holding in order to fully recover the costs of
its initial investment.
PERFORMANCE
In the period to 30 September 2020 the Company's performance was
broadly in line with expectations, returning a net asset value of
GBP0.96 per unit, which is an increase of GBP0.03 from the 31 March
2020 audited year end figure. This can largely be explained by the
positive performance in Sure Valley Ventures Fund. The NAV has also
benefitted slightly from an increased share price in Immotion Group
PLC, closing the period at 3.05p (March 2020: 1.85p) which, whilst
improved, continues to suffer as a result of the recent Covbid-19
pandemic.
FUTURE INVESTMENT OUTLOOK
The Fund has achieved one very positive realised gain and more
recently realised some additional gains by recovering its initial
investment in VRE, as well as a number of unrealised gains across
the portfolio and continues to have access to quality deals in our
chosen high growth sectors. The portfolio of current investments is
now beginning to mature and approach series A funding rounds, which
if successful, will begin to provide the NAV growth that was set
out to achieve from inception.
We remain confident in the future outlook of the Company in the
forthcoming financial year and in line with the prospectus, reserve
the right to make further direct investments provided there is
sufficient working capital to do so.
Shard Capital AIFM LLP
Investment Manager
24 November 2020
INTERIM MANAGEMENT REPORT
The report below together with the Chairman's Statement,
Investment Manager's report and related party disclosures in the
notes to the financial statements constitute the Interim Management
Report for the six months ended 30 September 2020.
Principal risks and uncertainties
The principal risks and uncertainties associated with the
Company's business are divided into the following main areas:
-- Operational risks, including risks associated with reliance
on third party service providers, reliance on key individuals at
the Investment Manager and fluctuations in the market price of the
Company's shares;
-- Investment risks, including risks associated with the
investment objective, borrowing and liquidity of investments;
and
-- Regulatory risks, including risks associated with maintenance
of investment trust status and compliance with applicable
legislative obligations.
The above risks are described further in the Company's Annual
Report for the year ended 31 March 2020 together with measures that
have been put in place to mitigate and manage those risks.
In the view of the directors, the principal risks and
uncertainties reported in the latest Annual Report for the year
ended 31 March 2020 remain unchanged and will be applicable to the
remaining six months of the financial year.
COVID-19 pandemic
In the first quarter of 2020, the World Health Organization
declared a global health pandemic due to the spread of the
"COVID-19" virus. The effects of COVID-19 are causing significant
market volatility and have had an effect on the Company through
price volatility of the Company's investments. The ongoing economic
and broader impacts of COVID-19 will have an effect on the
financial statements and operations in the future, though it is not
possible to quantify likely impacts at this stage.
The Board and the Investment Manager continue to closely monitor
developments on a regular basis and have invoked internal controls
and risk management procedures to mitigate any related risk that
may arise.
Going concern
The Board and the Investment Manager believe that the
operational viability and going concern status of the Company
remains intact and will continue for the next financial 12 months
ahead and foreseeable future. The Board has no concerns in regards
to the ongoing existence of the Company.
The Board is also satisfied that the key service providers have
the ability to continue to operate efficiently in a remote or
virtual working environment.
Statement of Directors' Responsibilities
The directors confirm that, to the best of their knowledge
that:
a) the condensed set of unaudited financial statements contained
within the half-yearly financial report have been prepared in
accordance with International Accounting Standard ("IAS") 34,
Interim Financial Reporting as required by the Disclosure and
Transparency Rule 4.2.4R, and give a true and fair view of the
assets, liabilities and financial position of the Company;
b) the Interim Management Report includes a fair review, as
required by Disclosure and Transparency Rule 4.2.7R, of important
events that have occurred during the first six months of the
financial year, their impact on the condensed set of unaudited
financial statements, and a description of the principal risks and
perceived uncertainties for the remaining six months of the
financial year; and
c) the Interim Management Report includes a fair review of the
information concerning related parties' transactions as required by
Disclosure and Transparency Rule 4.2.8R.
For and on behalf of the board of directors
Perry Wilson
Chairman
ALTERNATIVE PERFORMANCE MEASURES (APMs)
APMS are often used to describe the performance of investment
companies although they are not specifically defined under IFRS.
Calculations for APMs used by the Company are shown below.
Ongoing charges
A measure expressed as a percentage of average net assets, of
the regular, recurring annual costs of running an investment
company, calculated in accordance with the AIC methodology.
Period ended 31 September 2020
Average NAV (GBP'000) a GBP5,094
----- ---------
Recurring costs (GBP'000) b GBP341.3
----- ---------
b/a 6.70%
-------------------------------------- ---------
Premium
The amount, expressed as a percentage, by which the share price
is more than the NAV per share.
As at 30 September 2020
NAV per ordinary share a 95.79p
--------- -------
Share price b 97.0p
--------- -------
(b-a)/a 1.26%
----------------------------------- -------
Total return
A measure of performance that includes both income and capital
returns. This takes into account capital gains and reinvestment of
any dividends paid out by the Company, with reinvestment on
ex-dividend date
Year ended 31 March 2020 NAV Share price
Opening as at 31 March 2020
(p) A 92.61 95.00
--- ------ ------------
Closing at 30 September 2020
(p) B 95.79 97.00
--- ------ ------------
FINANCIAL STATEMENTS
For the six months ended 30 September 2020 (unaudited)
Revenue Capital Total
GBP GBP GBP
========== ========
Income
=========================================== ========== ======== ==========
Other net changes in fair value
on financial assets at fair value
through profit or loss - 231,188 231,188
============================================ ========== ======== ==========
Other income - 79,883 79,883
============================================ ========== ======== ==========
Total net income - 311,071 311,071
============================================ ========== ======== ==========
Expenses
=========================================== ========== ======== ==========
Custodian, secretarial and administration
fees (43,095) - (43,095)
============================================ ========== ======== ==========
Other expenses (103,820) - (103,820)
============================================ ========== ======== ==========
Total operating expenses (146,915) - (146,915)
============================================ ========== ======== ==========
Profit / (Loss) before Taxation
and after finance costs (146,915) 311,071 164,156
============================================ ========== ======== ==========
Taxation - - -
=========================================== ========== ======== ==========
Profit / (Loss) after taxation (146,915) 311,071 164,156
============================================ ========== ======== ==========
Earnings per share (2.75)p 5.81p 3.07p
============================================ ========== ======== ==========
For the six months ended 30 September 2019 (unaudited)
Revenue Capital Total
GBP GBP GBP
========== ========
Income
=========================================== ========== ======== ==========
Other net changes in fair value on
financial assets at fair value through
profit or loss - 111,913 111,913
============================================ ========== ======== ==========
Other income - - -
=========================================== ========== ======== ==========
Total net income - 111,913 111,913
============================================ ========== ======== ==========
Expenses
=========================================== ========== ======== ==========
Management fee - - -
=========================================== ========== ======== ==========
Custodian, secretarial and administration
fees (42,478) - (42,478)
============================================ ========== ======== ==========
Other expenses (88,033) - (88,033)
============================================ ========== ======== ==========
Total operating expenses (130,511) - (130,511)
============================================ ========== ======== ==========
(Loss) / Profit before Taxation and
after finance costs (130,511) 111,913 (18,598)
============================================ ========== ======== ==========
Taxation - - -
=========================================== ========== ======== ==========
(Loss) / Profit after taxation (130,511) 111,913 (18,598)
============================================ ========== ======== ==========
Earnings per share (2.68)p 2.30p (0.38)p
============================================ ========== ======== ==========
The total comprehensive income and expense for the period is
attributable to shareholders of the Company. The accompanying notes
on pages 19 to 21 form part of these condensed interim financial
statements.
Condensed Statement of Financial Position
As at 30 September 2020
Notes 30 September 31 March 2020
2020
(unaudited) (audited)
GBP GBP
====== =============
Non-current assets
======================================= ====== ============= ==============
Investments held at fair value
through profit or loss 7 3,657,599 3,078,560
======================================= ====== ============= ==============
3,657,599 3,078,560
======================================= ====== ============= ==============
Current assets
======================================= ====== ============= ==============
Receivables 13,290 18,620
======================================= ====== ============= ==============
Cash and cash equivalents 1,477,366 1,700,601
======================================= ====== ============= ==============
1,490,656 1,719,221
======================================= ====== ============= ==============
Total assets 5,148,255 4,797,781
======================================= ====== ============= ==============
Current liabilities
======================================= ====== ============= ==============
Other payables (22,930) (287,862)
======================================= ====== ============= ==============
(22,930) (287,862)
======================================= ====== ============= ==============
Total assets less current liabilities 5,125,325 4,509,919
======================================= ====== ============= ==============
Total net assets 5,125,325 4,509,919
======================================= ====== ============= ==============
Shareholders' funds
======================================= ====== ============= ==============
Ordinary share capital 8 53,449 48,699
======================================= ====== ============= ==============
Share premium 5,146,088 4,699,588
======================================= ====== ============= ==============
Revenue reserves 76,460 223,375
======================================= ====== ============= ==============
Capital reserves (150,672) (461,743)
======================================= ====== ============= ==============
Total shareholders' funds 5,125,325 4,509,919
======================================= ====== ============= ==============
Net asset value per share 95.79p 92.61p
======================================= ====== ============= ==============
The accompanying notes on pages 19 to 21 form part of these
condensed interim financial statements.
The financial statements on pages 15 to 18 were approved by the
board of directors and authorised for issue on 24(th) November
2020.
Perry Wilson ,
Chairman
Condensed Statement of Changes in Equity
For the six months ended 30 September 2020 (unaudited)
Ordinary Share Revenue Capital Total Total
Share Premium Reserves Reserves Reserves Equity
Capital GBP GBP GBP GBP GBP
GBP
========= =========== ========== =========== ===========
For the year
ended 31 March
2020 48,699 4,699,588 223,375 (461,743) (238,368) 4,509,919
================= ========= =========== ========== =========== =========== ===========
Ordinary shares
issued 4,750 470,250 - - - 475,000
================= ========= =========== ========== =========== =========== ===========
Ordinary shares
issue costs - (23,750) - - - (23,750)
================= ========= =========== ========== =========== =========== ===========
Profit / (Loss)
after taxation - - (146,915) 311,071 164,156 164,156
================= ========= =========== ========== =========== =========== ===========
Dividends paid - - - - - -
in the period
================= ========= =========== ========== =========== =========== ===========
Balance at 30
September 2020 53,449 5,146,088 76,460 (150,672) 74,212 5,125,325
================= ========= =========== ========== =========== =========== ===========
For the six months ended 30 September 2019 (unaudited)
Ordinary Share Revenue Capital Total Total
Share Premium Reserves Reserves Reserves Equity
Capital GBP GBP GBP GBP GBP
GBP
========= ========== ========== ========== ==========
For the year ended
31 March 2019 45,647 4,428,290 (501,420) (182,429) (683,849) 3,790,088
==================== ========= ========== ========== ========== ========== ==========
Ordinary shares
issued 3,052 290,186 - - - 293,000
==================== ========= ========== ========== ========== ========== ==========
Ordinary shares
issue costs - (18,650) - - - (18,650)
==================== ========= ========== ========== ========== ========== ==========
(Loss) / Profit
after taxation - - (130,511) 111,913 (18,598) (18,598)
==================== ========= ========== ========== ========== ========== ==========
Dividends paid - - - - - -
in the period
==================== ========= ========== ========== ========== ========== ==========
Balance at 30
September 2019 48,699 4,699,588 (631,931) (70,516) (702,447) 4,045,840
==================== ========= ========== ========== ========== ========== ==========
CONDENSED STATEMENT OF CASHFLOWS
For the six months ended 30 September 2020
30 September 30 September
2020 2019
(unaudited) (unaudited)
GBP GBP
==== =============
Cash flows from operating activities:
=========================================== ==== ============= =============
Profit / (Loss) after taxation 164,156 (18,598)
================================================= ============= =============
Adjustments for:
=========================================== ==== ============= =============
Decrease in receivables 5,330 (6,900)
================================================= ============= =============
Decrease in payables (264,932) 1,522
================================================= ============= =============
Unrealised Profit on foreign exchange (66,576) (45,187)
================================================= ============= =============
Loss on sale of investment 1,790 -
=========================================== ==== ============= =============
Net changes in fair value on financial
assets at fair value through profit
or loss (156,338) (68,570)
================================================= ============= =============
Net cash (outflow) from operating
activities (316,570) (137,732)
================================================= ============= =============
Cash flows from investing activities:
=========================================== ==== ============= =============
Purchase of investments (424,828) (827,937)
================================================= ============= =============
Sale of investments 66,913 -
=========================================== ==== ============= =============
Net cash (outflow) from investing
activities (357,915) (827,937)
================================================= ============= =============
Cash flows from financing activities:
=========================================== ==== ============= =============
Proceeds from issue of ordinary shares 475,000 293,000
================================================= ============= =============
Share issue costs (23,750) (18,650)
================================================= ============= =============
Net cash inflow from financing activities 451,250 274,350
================================================= ============= =============
Net change in cash and cash equivalents (223,235) (691,319)
================================================= ============= =============
Cash and cash equivalents at the
beginning of the period 1,700,601 2,139,842
================================================= ============= =============
Net cash and cash equivalents 1,477,366 1,448,523
================================================= ============= =============
The accompanying notes on pages 19 to 21 form part of these
condensed interim financial statements.
Notes to the Condensed Interim Financial Statements
1) General information
Sure Ventures plc (the "Company") is a company incorporated in
England and Wales (registration number: 10829500) on 21 June 2017,
commencing trading on 19 January 2018 upon listing. The registered
office of the Company is 23rd Floor, 20 Fenchurch Street, London,
United Kingdom, EC3M 3BY.
The Company is an investment company within the meaning of
section 833 of the Companies Act 2006.
The Company operates as an investment trust in accordance with
Chapter 4 of Part 24 of the Corporation Tax Act 2010 and the
Investment Trust (Approved Company) (Tax) Regulations 2011. In the
opinion of the directors, the Company has conducted its affairs so
that it is able to maintain its status as an investment trust.
Approval of The Company's application for approval as an investment
trust was received from HMRC on 22 November 2018, applicable from
the accounting period commencing 1 April 2018.
The Company is an externally managed closed-ended investment
company with an unlimited life and has no employees.
The information set out in these unaudited condensed interim
financial statements for the period ended 30 September 2020 does
not constitute statutory accounts as defined in section 435 of
Companies Act 2006. Comparative figures 31 March 2020 are derived
from the financial statements for that period. The financial
statements for the period ended 31 March 2020 have been delivered
to the Registrar of Companies and contain an unqualified audit
report and did not contain a statement under emphasis of matter or
statements under section 498(2) or (3) of the Companies Act 2006.
The financial statements of the Company for the year ended 31
March
2020 are available upon request from the Company's registered
office at 23(rd) Floor, 20 Fenchurch Street, London, United
Kingdom, EC3M 3BY.
Basis of accounting
The financial statements of the Company have been prepared in
accordance with International Financial Reporting Standards (IFRS)
and IFRIC interpretations (IFRS IC) as adopted by the European
Union. They do not include all the information required for the
full annual financial statements, and should be read in conjunction
with the annual
financial statements of the Company for the period ended 31
March 2020. The principal accounting policies adopted in the
preparation of the financial information in these unaudited
condensed interim financial statements are
unchanged from those used in the Company's financial statements
for the year ended 31 March 2020. This report does not itself
contain sufficient information to comply with IFRS.
3) Estimates
The preparation of the unaudited condensed interim financial
statements requires management to make judgement, estimates and
assumptions that affect the application of accounting policies and
the reported amounts of assets and liabilities, income and
expenses. Actual results may differ from these estimates.
In preparing these unaudited condensed interim financial
statements, the significant judgement made by management in
applying the Company's accounting policies and the key sources of
estimation were the same as those that applied to the Company
financial statements as at and for the period ended 31 March
2020.
4) Financial risk management
The Company's financial risk management objectives and policies
are consistent with those disclosed in the Company financial
statements as at and for the year ended 31 March 2020.
As an investment trust the Company is exempt from corporation
tax on capital gains. The Company's revenue income is subject to
tax, but offset by any interest distribution paid, which has the
effect of reducing that corporation tax to nil. This means the
interest distribution may be taxable in the hands of the Company's
shareholders.
Earnings per Share
For the six months period ended Revenue Capital Total
30 September 2020 pence pence pence
======== ========
Earnings per ordinary share (2.75)p 5.81p 3.07p
================================= ======== ======== =======
For the financial period ended 31 from March 2020
Earnings per ordinary share 14.88p (5.74)p 9.15p
================================= ======== ======== =======
The calculation of the above is based on revenue return loss of
GBP146,915 (31 March 2020: profit GBP724,795), capital return
profit of GBP311,071 (31 March 2020: loss GBP279,314) and total
return profit of GBP164,156 (31 March 2020: profit GBP445,481) and
weighted average number of ordinary shares of 5,350,725 (31 March
2020: 4,869,956) as at 30 September 2020.
INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
As at 30 September As at 31
2020 March 2020
GBP GBP
===================
Opening cost
===================================== =================== ============
Opening fair value 3,078,560 1,700,900
===================================== =================== ============
Purchases at cost 424,828 1,894,014
===================================== =================== ============
Sale (66,913) (279,301)
===================================== =================== ============
Cost at fair value measurement
===================================== =================== ============
Realised loss (1,790) (22,136)
===================================== =================== ============
Unrealised gain/(loss) 156,338 (291,347)
===================================== =================== ============
Unrealised gain on foreign exchange 66,576 76,430
===================================== =================== ============
Closing fair value 3,657,599 3,078,560
===================================== =================== ============
8) Ordinary Share Capital
The table below details the issued share capital of the Company
as at the date of the Financial Statements.
Issued and allotted No. of shares No. of shares Ordinary Share Ordinary
30 September 31 March Capital Share Capital
2020 2020 30 September 31 March
2020 2020
GBP GBP
============== ============== ===============
Ordinary shares of
1 penny each 5,350,725 4,869,956 53,507 48,699
===================== ============== ============== =============== ===============
On incorporation, the issued share capital of the Company was
GBP0.01 represented by one ordinary share of GBP0.01. Redeemable
preference shares of 50,000 were also issued with a nominal value
of GBP1 each, of which 25% were paid. The redeemable shares were
issued to enable the Company to obtain a certificate of entitlement
to conduct business and to borrow under section 761 of the
Companies Act 2006. The redeemable shares were redeemed on listing
from the proceeds of the issue of the new ordinary shares upon
admission on 19 January 2018.
The following table details the subscription activity for the
period ended 30 September 2020.
30 September 31 March
2020 2020
=============
Balance as at 31 March 2020 4,869,956 4,564,748
================================= ============= ==========
Ordinary shares issued 480,769 305,208
================================= ============= ==========
Balance as at 30 September 2020 5,350,725 4,869,956
================================= ============= ==========
During the period ended 30 September 2020, all proceeds from
this issue was received (31 March 2020 all proceeds from this issue
was received)
9) Related Party Transactions and Transactions with the
Manager
Directors - There were no contracts subsisting during or at the
end of the period in which a director of the Company is or was
interested and which are or were significant in relation to the
Company's business. There were no other transactions during the
period with the directors of the Company. The directors do not hold
any ordinary shares of the Company.
At 30 September 2020, there was GBPnil (31 March 2020: GBP1,473)
payable in respect of directors fees and expenses.
Manager - Shard Capital AIFM LLP (the 'Manager'), a UK-based
company authorised and regulated by the Financial Conduct
Authority, has been appointed the Company's manager and authorised
investment fund manager for the purposes of the Alternative
Investment Fund Managers Directive. Details of the services
provided by the manager and the fees paid are given in the
prospectus dated 17 November 2017.
During the period the Company incurred GBP31,938 and was rebated
the full amount (31 March 2020 GBP55,495) of fees and at 30
September 2020, there was GBPnil (31 March 2020: nil) payable to
the manager.
During the period the Company paid GBP23,750 (31 March 2020:
GBP18,650) of placement fees to Shard Capital Partners LLP.
During the period the Company paid GBP6,000 (31 March 2020:
GBP12,000) of advisory fees to Shard Capital Partners LLP.
10) SubsequENT EVENTS
There was no subsequent events which would require disclosure in
the financial statements.
For further information, please visit www.sureventuresplc.com or
contact:
Gareth Burchell Sure Ventures plc +44 (0) 20 7186 9918
Notes to Editors
Sure Ventures plc listed on the London Stock Exchange in January
2018 giving retail investors access to an asset class that is
usually dominated by private venture capital funds. Sure Ventures
is focusing on companies in the UK, Republic of Ireland and other
European countries, making seed and series A investments in
companies with first rate management teams, products which benefit
from market validation with target revenue run rates of at least
GBP400,000 over the next 12 months. Website:
https://www.sureventuresplc.com/
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END
IR MZMZMGLKGGZM
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November 30, 2020 02:00 ET (07:00 GMT)
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