TIDMSURE
RNS Number : 2813H
Sure Ventures PLC
31 July 2019
SURE VENTURES PLC / ISIN: GB00BYWYZ460 / Ticker: SURE / Market:
SFS / Sector: Investment
31 July 2019
Sure Ventures plc ('Sure Ventures' or 'the Company')
Final Results
Sure Ventures plc, a venture capital fund which invests in early
stage software companies in the rapidly growing tech verticals of
augmented reality ('AR'), virtual reality ('VR'), and Internet of
Things ('IoT') and Artificial Intelligence (AI) in fintech sectors,
is pleased to announce its annual results for the first full year
investment for the year ending 31 March 2019.
The Company's annual report and audited financial statements
will be posted to shareholders shortly and will be made available
on the Company's website www.sureventuresplc.com.
Overview
-- Advanced strategy of generating shareholder value through
investing in early stage technology companies in the rapidly
growing sectors of AR/VR, AI, IoT and FinTech
-- Directly invested in Immotion Plc
-- Directly invested in VividQ Ltd, a UK-based deep technology
software company pioneering the application of holography in AR/VR
and consumer electronic display
-- Maintained 22.17% interest in the Sure Valley Ventures
subfund providing exposure to a diverse, balanced portfolio of ten
early stage technology companies including VR Education, listed on
the London Stock Exchange
-- Appointment of Perry Wilson as Chairman and Non-Executive
Director and St. John Agnew as Non-Executive Director further
enhancing the Company's well developed network
Chairman's Statement
Dear Shareholders,
On behalf of my fellow directors, I am delighted to present the
annual results for Sure Ventures plc (the "Company") for the first
full year investment for the year ending 31 March 2019.
Financial Performance
In the year to 31 March 2019 the Company's performance was
broadly in line with expectations, returning a net asset value of
-9.87%, which can be explained largely by the fall in share prices
of the two listed portfolio investments, Immotion plc and VR
Education Holdings plc. Immotion plc is a directly held investment
that has subsequently recovered since 31 March 2019 year end price
(5.125p) and is now trading close to its IPO issue price (currently
9.40p). VR Education is held through the Company's investment in
the Sure Valley Ventures sub fund of Sure Valley Funds ICAV (the
"Fund'), being the only listed investment held in the Fund's
portfolio and it continues to trade around its year end closing
price (currently 9.00p).
The investee companies within the Fund's portfolio, in which the
Company maintains an interest of 22.17%, have grown throughout the
year and now stand at ten across a diverse, balanced range of early
stage software ventures in the augmented reality (AR), virtual
reality (VR), internet of things (IoT), financial technology
(FinTech) and artificial intelligence (AI) space.
The Company's share price continues to trade at a premium in
excess of 20% of the last published net asset value, which we
believe supports the growth potential of the Company's investments
and demonstrates an understanding among shareholders of the
Company's investment rationale and investment horizon.
Portfolio Update
In the year to 31 March 2019 Sure Valley added investments in
five early stage technology companies, to complement the portfolio
of investments in five companies held as at 31 March 2018. Of these
ten companies, nine remain privately owned with each investment
being held at the initial seed investment valuation, with the
exception of WarDucks which successfully raised EUR3.3m in March
2019 in a Series A funding round led by EQT Ventures leading to a
x4 uplift in valuation of the original investment.
In addition to the existing direct investment in Immotion plc, a
second direct investment by the Company of GBP500,000 was announced
in April 2019 in Vivid Q Limited, a Cambridge, UK-based deep
technology software company pioneering the application of
holography in AR/VR and consumer electronics display.
Further detail is provided in the Investment Manager's Report
and the Business Review which follows this statement.
Dividend
During the Period to 31 March 2019, the Company has not declared
a dividend (31 March 2018 - GBPnil). 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. The Company does not expect to receive a
material amount of dividends or other income from its direct or
indirect investments. During the year ended 31 March 2019, 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 31 March 2019 the Company did not employ any borrowing
(31 March 2018 - 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
In the year to 31 March 2019 the Company raised additional gross
proceeds of GBP1,278,480, bringing the total ordinary shares in
issuance as at the year end to 4,564,748. On 7 June 2019 the
Company announced a raising of further gross proceeds of GBP293,000
by way of a private placement and following this latest admission,
the Company has 4,808,026 ordinary shares in issue.
The Investment Manager's Report and Business Review following
this Statement give 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 objective and believes that the robust
deal pipeline will result in additional transactions that will
complement the Company's existing investments.
Board
I am very pleased to have been appointed Chairman and
Non-Executive Director of the Company in December 2018 and in the
short period of my engagement the Company has continued to identify
new, exciting and innovative investment opportunities through its
well-developed network. Furthermore, we welcome St. John Agnew as a
Non-Executive Director to the board who replaced Chris Boody on 14
June 2019 due to Mr Boody's ongoing commitments to a global
technology business. Mr Agnew brings a wealth of experience in
investment management, is a lawyer by training and has served in
other Non-Executive and trustee roles. Gareth Burchell continues in
his role as a Non-Executive Director of the Company, which he has
held since the Company's inception.
Perry Wilson
Chairman
24 July 2019
Statement of Comprehensive Income
For the year ended 31 March 2019
2019 2018
Notes Revenue Capital Total Revenue Capital Total
GBP GBP GBP GBP GBP GBP
------ ---------- ---------- ---------- ---------- -------- ----------
Income
------ ---------- ---------- ---------- ---------- -------- ----------
Other net changes in fair value
on financial assets at fair value
through profit or loss 4 - (188,802) (188,802) - 44,980 44,980
------ ---------- ---------- ---------- ---------- -------- ----------
Interest income 3,174 - 3,174 - - -
------ ---------- ---------- ---------- ---------- -------- ----------
Rebate management fee 50,960 - 50,960 - - -
------ ---------- ---------- ---------- ---------- -------- ----------
Total net income 54,134 (188,802) (134,668) - 44,980 44,980
------ ---------- ---------- ---------- ---------- -------- ----------
Expenses
------ ---------- ---------- ---------- ---------- -------- ----------
Management fee 5 (11,197) (34,996) (46,193) (1,155) (3,611) (4,766)
------ ---------- ---------- ---------- ---------- -------- ----------
Custodian, secretarial and
administration
fees (84,603) - (84,603) (19,850) - (19,850)
------ ---------- ---------- ---------- ---------- -------- ----------
Other expenses 6 (208,467) - (208,467) (230,282) - (230,282)
------ ---------- ---------- ---------- ---------- -------- ----------
Total operating expenses (304,267) (34,996) (339,263) (251,287) (3,611) (254,898)
------ ---------- ---------- ---------- ---------- -------- ----------
Loss / profit before Taxation and
after finance costs (250,133) (223,798) (473,931) (251,287) 41,369 (209,918)
------ ---------- ---------- ---------- ---------- -------- ----------
Taxation 7 - - - - - -
------ ---------- ---------- ---------- ---------- -------- ----------
Loss / profit after taxation (250,133) (223,798) (473,931) (251,287) 41,369 (209,918)
------ ---------- ---------- ---------- ---------- -------- ----------
Earnings per share 8 (5.48)p (4.90)p (10.38)p (7.59)p 1.25p (6.34)p
------ ---------- ---------- ---------- ---------- -------- ----------
The total column of this statement represents the Statement of
comprehensive income prepared in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the European
Union. The supplementary revenue return and capital return columns
are both prepared under guidance issued by the Association of
Investment Companies. All items in the above statement derive from
continuing operations.
The Company does not have any income or expense that is not
included in net loss for the year. Accordingly, the net loss for
the year is also the Total Comprehensive Income for the year, as
defined in IAS1 (revised).
Statement of Financial Position
As at 31 March 2019 Company No. 10829500
Notes 31 March 31 March
2019 2018
GBP GBP
Non-current assets
------ ---------- ------------------------
Investments held at fair value through
profit or loss 9 1,700,900 739,258
------ ---------- ------------------------
1,700,900 739,258
------ ---------- ------------------------
Current assets
------ ---------- ------------------------
Receivables 10 - 689,713
------ ---------- ------------------------
Cash and cash equivalents 2,139,842 1,663,505
------ ---------- ------------------------
2,139,842 2,353,218
------ ---------- ------------------------
Total assets 3,840,742 3,092,476
------ ---------- ------------------------
Current liabilities
------ ---------- ------------------------
Other payables 11 (50,654) (43,316)
------ ---------- ------------------------
(50,654) (43,316)
------ ---------- ------------------------
Total assets less current liabilities 3,790,088 3,049,160
------ ---------- ------------------------
Total net assets 3,790,088 3,049,160
------ ---------- ------------------------
Shareholders' funds
------ ---------- ------------------------
Ordinary share capital 12 45,647 33,100
------ ---------- ------------------------
Share premium 12 4,428,290 3,225,978
------ ---------- ------------------------
Revenue reserves (501,420) (251,287)
------ ---------- ------------------------
Capital reserves (182,429) 41,369
------ ---------- ------------------------
Total shareholders' funds 3,790,088 3,049,160
------ ---------- ------------------------
Net asset value per share 13 83.03p 92.12p
------ ---------- ------------------------
Statement of Changes in Equity
For the year ended 31 March 2019
Ordinary Share Revenue Capital Total Total
Share Premium Reserves Reserves Reserves Equity
Capital GBP GBP GBP GBP GBP
GBP
Balance at 1
April 2018 33,100 3,225,978 (251,287) 41,369 (209,918) 3,049,160
--------- ---------- ---------- ---------- ---------- ----------
Ordinary shares
issued 12,547 1,265,933 - - - 1,278,480
--------- ---------- ---------- ---------- ---------- ----------
Ordinary shares
issue costs - (63,621) - - - (63,621)
--------- ---------- ---------- ---------- ---------- ----------
Loss after taxation - - (250,133) (223,798) (473,931) (473,931)
--------- ---------- ---------- ---------- ---------- ----------
Dividends paid - - - - - -
in the year
--------- ---------- ---------- ---------- ---------- ----------
Balance at 31
March 2019 45,647 4,428,290 (501,420) (182,429) (683,849) 3,790,088
--------- ---------- ---------- ---------- ---------- ----------
For the period from 21 June 2017 (date of incorporation) to 31
March 2018
Ordinary Share Revenue Capital Total Total
Share Premium Reserves Reserves Reserves Equity
Capital GBP GBP GBP GBP GBP
GBP
Balance at 21 - - - - - -
June 2017
--------- ---------- ---------- ---------- ---------- ----------
Ordinary shares
issued 33,100 3,276,900 - - - 3,310,000
--------- ---------- ---------- ---------- ---------- ----------
Ordinary shares
issue costs - (50,922) - - - (50,922)
--------- ---------- ---------- ---------- ---------- ----------
(Loss) / Profit
after taxation - - (251,287) 41,369 (209,918) (209,918)
--------- ---------- ---------- ---------- ---------- ----------
Dividends paid - - - - - -
in the period
--------- ---------- ---------- ---------- ---------- ----------
Balance at 31
March 2018 33,100 3,225,978 (251,287) 41,369 (209,918) 3,049,160
--------- ---------- ---------- ---------- ---------- ----------
As at 31 March 2019 the Company had distributable reserves of
GBPnil (2018: GBPnil) for the payment of future dividends. The
distributable reserves are the revenue reserves GBPnil (2018:
GBPnil), realised capital reserves (GBPnil) (2018: (GBPnil)) and
the special distributable reserves (GBPnil) (2018: (GBPnil)).
Statement of Cash Flows
For the year ended 31 March 2019
Notes For the year For the period
ended from 21 June
31 March 2017 (date
2019 of incorporation)
GBP to 31 March
2018
GBP
Cash flows from operating activities:
------ ------------- -------------------
(Loss) after taxation (473,931) (209,918)
------ ------------- -------------------
Adjustments for:
------ ------------- -------------------
Decrease in receivables 689,713 -
------ ------------- -------------------
Increase in payables 11 7,338 43,316
------ ------------- -------------------
Unrealised (loss) on foreign exchange 9 26,593 6,875
------ ------------- -------------------
Net changes in fair value on financial
assets at fair value through profit
or loss 9 162,209 (51,855)
------ ------------- -------------------
Net cash inflow/(outflow) from operating
activities 411,922 (211,582)
------ ------------- -------------------
Cash flows from investing activities:
------ ------------- -------------------
Purchase of investments 9 (2,650,429) (694,278)
------ ------------- -------------------
Sales of investments 9 1,499,985 -
------ ------------- -------------------
Net cash (outflow) from investing
activities (1,150,444) (694,278)
------ ------------- -------------------
Cash flows from financing activities*:
------ ------------- -------------------
Proceeds from issue of ordinary shares 1,278,480 2,620,287
------ ------------- -------------------
Share issue costs (63,621) (50,922)
------ ------------- -------------------
Net cash inflow from financing activities 1,214,859 2,569,365
------ ------------- -------------------
Net change in cash and cash equivalents 476,337 1,663,505
------ ------------- -------------------
Cash and cash equivalents at the 1,663,505 -
beginning of the year/period
------ ------------- -------------------
Net cash and cash equivalents 2,139,842 1,663,505
------ ------------- -------------------
*The Company has no borrowings or liabilities from financing
activities.
Notes to the Financial Statements:
1) Principal Accounting Policies
Basis of accounting
The financial statements of Sure Ventures plc (the "Company")
have been prepared in accordance with International Financial
Reporting Standards (IFRS) and IFRIC interpretations (IFRS IC) as
adopted by the European Union and the Companies Act 2006 applicable
to companies reporting under IFRS.
The principal accounting policies adopted by the Company are set
out below. Where presentational guidance set out in the Statement
of Recommended Practice ('SORP') for investment trusts issued by
the Association of Investment Companies ('AIC') in January 2017 is
consistent with the requirements of IFRS, the directors have sought
to prepare the financial statements on a basis compliant with the
recommendations of the SORP.
All values are rounded to the nearest pound unless otherwise
indicated.
Foreign Currency
The presentation currency of the Company is pounds sterling, the
financial statements are prepared in this currency in accordance
with the Company's prospectus. The Company is required to nominate
a functional currency, being the currency in which the Company
predominantly operates. The board has determined that sterling is
the Company's functional currency.
Foreign exchange gains and losses relating to the financial
assets and liabilities carried at fair value through profit or loss
are presented in the statement of comprehensive income within
'other net changes in fair value on financial assets and financial
liabilities at fair value through profit or loss'.
Presentation of Statement of comprehensive income
In order to better to reflect the activities of an investment
trust company and in accordance with guidance issued by the AIC,
supplementary information which analyses the Statement of
comprehensive income between items of a revenue and capital nature
has been presented alongside the Statement of comprehensive
income.
Income
Dividend income from investments is recognised when the
Company's right to receive payment has been established, normally
the ex-dividend date.
Interest income in profit or loss in the Statement of
Comprehensive Income includes bank interest. Interest income is
recognised on an accruals basis.
Capital income, all changes in fair value are recognised in
profit or loss in the Statement of Comprehensive Income as net gain
on investment at fair value through profit or loss.
Expenses
All expenses are accounted for on the accruals basis. In respect
of the analysis between revenue and capital items presented within
the Statement of Comprehensive Income, all expenses have been
presented as revenue items except as follows:
-- Transaction costs which are incurred on the purchases or
sales of investments designated as fair value through profit or
loss are expensed to capital in the Statement of Comprehensive
Income.
-- Expenses are split and presented partly as capital items
where a connection with the maintenance or enhancement of the value
of the investments held can be demonstrated and, accordingly, the
management fee for the financial year has been allocated 24.24%
(2018: 24.24%) to revenue and 75.76% (2018: 75.76%) to capital
(Investment held at fair value through profit or loss to the net
asset value of the Company), in order to reflect the directors'
long term view of the nature of the expected investment returns of
the Company.
Capital Reserves
Increases and decreases in the valuation of investments and
realised/unrealised foreign exchange gain/(loss) held at the year
end are accounted for in the capital reserves.
Taxation
In line with the recommendations of the SORP, the allocation
method used to calculate tax relief on expenses presented against
capital returns in the supplementary information in the Statement
of comprehensive income is the 'marginal basis'. Under this basis,
if taxable income is capable of being entirely offset by expenses
in the revenue column of the statement of comprehensive income,
then no tax relief is transferred to the capital return column.
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in
the computation of taxable profit and is accounted for using the
Statement of Financial Position liability method. Deferred tax
liabilities are recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which
deductible temporary differences can be utilised.
Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled or the asset is
realised. Deferred tax is charged or credited in the revenue return
column of the Statement of comprehensive income, except when it
relates to items charged or credited directly to equity, in which
case the deferred tax is also dealt with in equity.
Investment trusts which have approval under Part 24, Chapter 4
of the Corporation Tax Act 2010 are not liable for taxation on
capital gains.
Classification
Financial assets and financial liabilities
In accordance with IFRS, the Company has designated its
investments as financial assets at fair value through profit or
loss.
i) Financial assets at fair value through profit or loss
The Company has designated all of its investments upon initial
recognition as "financial assets at fair value through profit or
loss". Their performance is evaluated on a fair value basis, in
accordance with the risk management and investment strategies of
the Fund, as set out in the Company's supplement to the
Prospectus.
ii) Financial assets at amortised cost
Financial assets that are classified as "financial assets at
amortised cost" include cash and cash equivalents and
receivables.
iii) Financial liabilities at fair value through profit or loss
Financial liabilities that are not at fair value through profit
or loss include other payables.
Derecognition
Financial assets are derecognised when the rights to receive
cash flows from the financial assets have expired or where the
group has transferred substantially all risks and rewards of
ownership. If substantially all the risks and rewards have been
neither retained nor transferred and the group has retained
control, the assets continue to be recognised to the extent of the
group's continuing involvement. Financial liabilities are
derecognised when they are extinguished.
Investments
All investments held by the Company have been designated at fair
value through profit or loss ('FVPL') but are also described in
these financial statements as investments held at fair value, and
are valued in accordance with the International Private Equity and
Venture Capital Valuation Guidelines ('IPEVCV') issued in December
2018 as endorsed by the British Private Equity and Venture Capital
Association.
Purchases and sales of unlisted investments are recognised when
the contract for acquisition or sale becomes unconditional.
Receivables
Receivables do not carry any interest and are short term in
nature. They are initially stated at their nominal value and
reduced by appropriate allowances for estimated irrecoverable
amounts (if any).
Cash and cash equivalents
Cash and cash equivalents (which are presented as a single class
of asset on the Statement of Financial Position) comprise cash at
bank and in hand and deposits with an original maturity of three
months or less. The carrying value of these assets approximates
their fair value.
Payables
Payables are non-interest bearing.
Dividends
Interim dividends are recognised in the year in which they are
paid. Final dividends are recognised when they have been approved
by shareholders.
New standards, amendments and interpretations effective from 1
January 2018
The following standards, amendments and interpretations, which
became effective in January 2018, are relevant to the Company.
IFRS 9, 'Financial instruments'
International Financial Reporting Standards 9 ("IFRS 9")
effective for annual periods beginning on or after 1 January 2018,
specifies how an entity should classify and measure financial
assets and liabilities, including some hybrid contracts.
IFRS 9 was issued by the International Accounting Standards
Board ("IASB") in July 2014 and replaced International Accounting
Standards 39 Financial Instruments - Recognition and Measurement
("IAS 39").
IFRS 9 improves and simplifies the approach for classification
and measurement of financial assets compared with the requirements
of IAS 39. Most of the requirements in IAS 39 for classification
and measurement of financial liabilities were carried forward
unchanged. IFRS 9 applies a consistent approach to classifying
financial assets and replaces the numerous categories of financial
assets in IAS 39, each of which had its own classification
criteria.
The Company has applied IFRS 9, Financial instruments ("IFRS 9")
retrospectively but the application of IFRS 9 has not resulted in a
restatement of comparative information. The Company has taken an
exemption not to restate comparative information. IFRS 9 has
resulted in changes to the classification of financial assets as
disclosed in Note 9 (b) ; there has been no impact on the carrying
values of financial instruments and the Company's accounting
policies related to liabilities and derivatives financial
instruments that are not used as hedging instruments.
i) Classification and measurements of financial assets and financial liabilities
IFRS 9 largely retains the existing requirements in IAS 39 for
the classification and measurement of financial liabilities.
However, it eliminates the previous IAS 39 categories for financial
assets of held to maturity, loans and receivables and available for
sale.
Under IFRS 9, on initial recognition, a financial asset is
classified as measured at: Fair value through profit or loss
(FVTPL), Fair Value through other comprehensive income (FVOCI) and
amortised cost.
The classification of financial assets under IFRS 9 is generally
based on the business model in which a financial asset is managed
and its contractual cash flow characteristics.
The Company has classified its financial assets at FVTPL and
amortised cost.
Financial assets and liabilities at fair value through profit or
loss
A financial asset and liabilities at FVTPL is initially measured
at fair value. These assets and liabilities are subsequently
measured at fair value. Net gains and losses, including any
interest or dividend income, are recognised in profit or loss. On
initial recognition, the Company may irrevocably designate a
financial asset that otherwise meets the requirements to be
measured at amortised cost as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise
arise.
A financial asset (unless it is a trade receivable without a
significant financing component that is initially measured at the
transaction price) is initially measured at fair value plus, for an
item not at FVTPL, transaction costs that are directly attributable
to its acquisition.
The financial assets and liabilities are subsequently measured
at fair value. Net gains and losses, including any interest or
dividend income, are recognised in profit or loss.
On initial recognition of an equity investment that is not held
for trading, the Company may irrevocably elect to present
subsequent changes in the investment's fair value in OCI. This
election is made on an investment-by-investment basis.
On subsequent measurement of financial assets;
-- debt investments at FVOCI are measured at fair value.
Interest income calculated using the effective interest method,
foreign exchange gains and losses and impairment are recognised in
profit or loss. Other net gains and losses are recognised in OCI.
On derecognition, gains and losses accumulated in OCI are
reclassified to profit or loss.
-- equity investment at FVOCI are measured at fair value.
Dividends are recognised as income in profit or loss unless the
dividend clearly represents a recovery of part of the cost of the
investment. Other net gains and losses are recognised in OCI and
are never reclassified to profit or loss.
Financial assets held at amortised cost
A financial asset is measured at amortised cost if it meets both
of the following conditions and is not designated as at FVTPL:
-- it is held within a business model whose objective is to hold
assets to collect contractual cash flows; and
-- its contractual terms give rise on specified dates to cash
flows that are solely payments of principal and interest on the
principal amount outstanding.
These assets are subsequently measured at amortised cost using
the effective interest method. The amortised cost is reduced by
impairment losses. Interest income, foreign exchange gains and
losses and impairment are recognised in profit or loss. Any gain or
loss on derecognition is recognised in profit or loss.
Measurement category under IAS 39 and IFRS 9
The following table and the accompanying notes below explain the
original measurement categories under IAS 39 and the new
measurement categories under IFRS 9 for each class of the Company's
financial assets as at 1 January 2018.
Original Original
Classification New Classification carrying Carrying
under IAS under IFRS amount under amount under
Note 39 9 IAS 39 IFRS 9
Financial assets GBP GBP
------ ----------------- -------------------- --------------
Unquoted equity Designated Mandatorily
assets (i) as at FVTPL at FVTPL 739,258 739,258
------ ----------------- -------------------- -------------- --------------
Loans and Amortised
Cash and cash equivalents (ii) receivables cost* 1,663,505 1,663,505
------ ----------------- -------------------- -------------- --------------
Loans and Amortised
Receivables (ii) receivables cost* 689,713 689,713
------ ----------------- -------------------- -------------- --------------
Total financial
assets 3,092,476 3,092,476
-------------- --------------
* No impairment was recognised on the amortised cost
classification on the original carrying amount value under IFRS 9
on transition.
The classification of financial liabilities has not changed
under the transition from IAS 39 to IFRS 9.
(i) Under IAS 39, these Unquoted equity assets were designated
as at FVTPL because they were managed on a fair value basis and
their performance was monitored on this basis. These assets have
been classified as mandatorily measured at FVTPL under IFRS 9.
(ii) Cash and cash equivalents and receivables, that were
classified as loans and receivables under IAS 39 are now classified
at amortised cost.
(ii) Impairment of financial assets
IFRS 9 replaces the 'incurred loss' model in IAS 39 with an
'expected credit loss' (ECL) model. The new impairment model
applies to financial assets the Company has measured at amortised
cost. Under IFRS 9, credit losses are recognised earlier than under
IAS 39.
The financial assets at amortised cost consist of cash and cash
equivalents.
Under IFRS 9, loss allowances are measured on either of the
following bases:
-- 12-month ECLs: these are ECLs that result from possible
default events within the 12 months after the reporting date;
and
-- lifetime ECLs: these are ECLs that result from all possible
default events over the expected life of a financial instrument
The Company measures loss allowances at an amount equal to
lifetime ECLs, except for the following, which are measured as
12-month ECLs:
-- debt securities that are determined to have low credit risk at the reporting date; and
-- other debt securities and bank balances for which credit risk
(i.e. the risk of default occurring over the expected life of the
financial instrument) has not increased significantly since initial
recognition.
When determining whether the credit risk of a financial asset
has increased significantly since initial recognition and when
estimating ECLs, the Company considers reasonable and supportable
information that is relevant and available without undue cost or
effort. This includes both quantitative and qualitative information
and analysis, based on the Company's historical experience and
informed credit assessment and including forward-looking
information.
The maximum period considered when estimating ECLs is the
maximum contractual period over which the Company is exposed to
credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses.
Credit losses are measured as the present value of all cash
shortfalls (i.e. the difference between the cash flows due to the
entity in accordance with the contract and the cash flows that the
Company expects to receive).
ECLs are discounted at the effective interest rate of the
financial asset.
Credit-impaired financial assets
At each reporting date, the Company assesses whether financial
assets carried at amortised cost are credit-impaired. A financial
asset is 'credit-impaired' when one or more events that have a
detrimental impact on the estimated future cash flows of the
financial asset have occurred.
Presentation of impairment
Loss allowances for financial assets measured at amortised cost
are deducted from the gross carrying amount of the assets.
Impairment losses on other financial assets are presented under
'finance costs', similar to the presentation under IAS 39, and not
presented separately in the statement of profit or loss and OCI due
to materiality considerations.
iii) Transition
Changes in accounting policies resulting from the adoption of
IFRS 9 have been applied retrospectively, except as described
below.
-- The Company has taken an exemption not to restate comparative
information for prior periods with respect to classification and
measurement (including impairment) requirements.
-- The following assessments have been made on the basis of the
facts and circumstances that existed at the date of initial
application.
o The determination of the business model within which a
financial asset is held.
o The designation and revocation of previous designations of
certain financial assets and financial liabilities as measured at
FVTPL.
-- If an investment in a debt security had low credit risk at
the date of initial application of IFRS 9, then the Company has
assumed that the credit risk on the asset had not increased
significantly since its initial recognition.
IFRS 15 Revenue from Contracts with Customers
IFRS 15, 'Revenue from contracts with customers' deals with
revenue recognition and establishes principles for reporting useful
information to users of financial statements about the nature,
amount, timing and uncertainty of revenue and cash flows arising
from an entity's contracts with customers. It is effective from 1
January 2018. Revenue is recognised when a customer obtains control
of a good or service and thus has the ability to direct the use and
obtain the benefits from the good or service. The standard replaces
IAS 18, 'Revenue' and IAS 11, 'Construction contracts' and related
interpretations Management have considered the impact of IFRS 15 on
the provision of services and management income that fall under the
scope of IFRS 15 and has had no impact on the Company in the
financial period as there is no revenue to be recognised but may do
so in the future.
There are no other standards, amendments to standards or
interpretations that are effective for annual periods beginning on
1 January 2018 that have a material effect on the financial
statements of the Company.
Adoption of New and Revised Standards
The International Accounting Standards Board has issued the
following standards, which may be relevant to the Company's
reporting but which have not yet been applied and have an effective
date after the date of these financial statements:
New Standards, Amendments and Interpretations
Standards, amendments and interpretations to existing standards
that become effective in future accounting periods and have not
been adopted by the Company are as follows:
IFRS Effective for annual periods beginning on or after
IFRS 16 - Leases 1 January 2019
IFRS 16 Leases
The directors do not anticipate that the adoption of this
standard and interpretations will have a material impact on the
financial statements in the period of initial application.
Other future developments include the International Accounting
Standards Board ('IASB') undertaking a comprehensive review of
existing IFRSs. The Company will consider the financial impact of
these new standards as they are finalised.
CAPITAL STRUCTURE
Share Capital
Ordinary shares are classed as equity. The ordinary shares in
issue have a nominal value of one penny and carry one vote
each.
Share Premium
This reserve represents the difference between the issue price
of shares and the nominal value of shares at the date of issue, net
of related issue costs.
Capital Reserve
Unrealised gains and losses on investments held at the year end
arising from movements in fair value are taken to the capital
reserve.
Revenue Reserve
Net revenue profits and losses of the Company.
2) Significant Accounting Judgements, Estimates and
Assumptions
The preparation of financial statements in conformity with IFRS
as adopted in the EU requires the Company to make judgements,
estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of income
and expenses during the reporting year. Although these estimates
are based on the directors' best knowledge of the amount, actual
results may differ ultimately from those estimates.
The areas requiring a higher degree of judgement or complexity
and areas where assumptions and estimates are significant to the
financial statements are in relation to investments at fair value
through profit or loss described below.
Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the
period in which the estimates are revised and in any future periods
affected.
Equity Investments
The unquoted equity assets are valued on periodic basis using
techniques including a market approach, costs approach and/or
income approach. The valuation process is collaborative, involving
the finance and investment functions within the manager with the
final valuations being reviewed by the manager's valuation
committee.
Shareholders should note that increases or decreases in any of
the inputs in isolation may result in higher or lower fair value
measurements. Changes in fair value of all investments held at fair
value are recognised in the Statement of comprehensive income as a
capital item. On disposal, realised gains and losses are also
recognised in the Statement of comprehensive income. IFRS 9 was
adopted but did not have a material impact on the Company.
3) Segmental Reporting
The Company's board and the Investment Manager consider
investment activity in selected Equity Assets as the single
operating segment of the Company, being the sole purpose for its
existence. No other activities are performed.
The directors are of the opinion that the Company is engaged in
a single segment of business and operations of the Company are
wholly in the United Kingdom.
4) Income
For the year For the period
ended from 21 June
31 March 2017 (date
2019 of incorporation)
GBP to 31 March
2018
GBP
Investment income
------------- -------------------
Investments at fair value through profit
or loss (151,451) 51,855
------------- -------------------
Total investment income (151,451) 51,855
------------- -------------------
Unrealised loss on translation of investments (37,351) (6,875)
------------- -------------------
Total(loss)/ income (188,802) 44,980
------------- -------------------
5) Management and Performance Fee
Management Fee
The management fee is payable quarterly in advance at a rate
equal to 1/4 of 1.25% per month of net asset value (the "Management
Fee"). The aggregate fee payable on this basis must not exceed
1.25% of the net assets of the Company in any year.
From the period from first admission, the management fee payable
was based on 1.25% of the net asset value.
Performance Fee
The Manager is entitled to a performance fee, which is
calculated in respect of each twelve month period starting on 1
April and ending on 31 March in each calendar year ('Calculation
Period'), and the nal Calculation Period shall end on the day on
which the management agreement is terminated or, if earlier, the
business day immediately preceding the day on which the Company
goes into liquidation.
The Manager is entitled to receive a performance fee equal to
15% of any excess returns over a high watermark, subject to
achieving a hurdle rate of 8% in respect of each performance
period. There was no performance fee payable during the period.
6) Other Expenses
For the year For the
ended period from
31 March 2019 21 June
GBP 2017 (date
of incorporation)
to 31 March
2018
GBP
Auditor's remuneration - audit fees 20,000 20,000
--------------- -------------------
Directors' fees 67,324 21,509
--------------- -------------------
Organisation expense - 150,801
--------------- -------------------
VAT Expense 22,283 27,821
--------------- -------------------
Legal and other professional 48,362 8,984
--------------- -------------------
Listing fees 39,719 -
--------------- -------------------
Service Fee Expense 6,846 -
--------------- -------------------
Other expenses 3,933 1,167
--------------- -------------------
Total Other expenses 208,467 230,282
--------------- -------------------
All expenses are inclusive of VAT where applicable. Further
details on directors' fees can be found in the directors'
remuneration report on page 33.
7) Taxation
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 (2018: nil). This
means the interest distribution may be taxable in the hands of the
Company's shareholders.
Any change in the Company's tax status or in taxation
legislation generally could affect the value of investments held by
the Company, affect the Company's ability to provide returns to
shareholders, lead the Company to lose its exemption from UK
Corporation tax on chargeable gains or alter the post-tax returns
to shareholders. It is not possible to guarantee that the Company
will remain a non-close company, which is a requirement to maintain
status as an investment trust, as the ordinary shares are freely
transferable. The Company, in the event that it becomes aware that
it is a close company, or otherwise fails to meet the criteria for
maintaining investment trust status, will as soon as reasonably
practicable, notify shareholders of this fact.
The Company has obtained this approval from HM Revenue &
Customs.
Factors affecting taxation charge for the year
The taxation charge for the year is lower than the standard rate
of UK corporation tax of 19.00% (2018: 19.00%). A reconciliation of
the taxation charge based on the standard rate of UK corporation
tax to the actual taxation charge is shown below.
31 March 2019 Revenue Capital Total
GBP GBP GBP
Return on ordinary activities
before taxation (250,133) (223,798) (473,931)
---------- ---------- ----------
Return on ordinary activities
before taxation multiplied by
the standard rate of UK corporation
tax of 19% (47,525) (42,522) (90,047)
---------- ---------- ----------
Effects of:
---------- ---------- ----------
Excess management expenses not
utilised 47,525 42,522 90,047
---------- ---------- ----------
Interest distributions paid in - - -
respect of the year
---------- ---------- ----------
Total tax charge in income statement - - -
---------- ---------- ----------
31 March 2018 Revenue Capital Total
GBP GBP GBP
Return on ordinary activities before
taxation (251,287) 41,369 (209,919)
---------- -------- ----------
Return on ordinary activities before
taxation multiplied by the standard
rate of UK corporation tax of 19% (47,745) 7,860 (39,885)
---------- -------- ----------
Effects of:
---------- -------- ----------
Excess management expenses not utilised 47,745 (7,860) (39,885)
---------- -------- ----------
Interest distributions paid in respect - - -
of the period
---------- -------- ----------
Total tax charge in income statement - - -
---------- -------- ----------
Overseas taxation
The Company may be subject to taxation under the tax rules of
the jurisdictions in which it invests, including by way of
withholding of tax from interest and other income receipts.
Although the Company will endeavour to minimise any such taxes this
may affect the level of returns to shareholders.
8) Earnings per Share
For the financial year ended 31 Revenue Capital Total
from March 2019 pence pence pence
Earnings per ordinary share (5.48)p (4.90)p (10.38)p
-------- -------- ---------
The calculation of the above is based on revenue returns of
(GBP250,133), capital returns of (GBP223,798) and total returns of
(GBP473,931) and number of ordinary shares of 4,564,748 as at 31
March 2019.
For the financial period ended Revenue Capital Total
31 from March 2018 pence pence pence
Earnings per ordinary share (7.59)p 1.25p (6.34)p
-------- -------- --------
The calculation of the above is based on revenue returns of
(GBP251,287) capital returns of GBP41,369 and total returns of
(GBP209,919) and number of ordinary shares of 3,310,000 as at 31
March 2018.
9) Investments at Fair Value Through Profit or Loss
(a) Movements in the year
As of 31 As of 31
March 2019 March 2018
GBP GBP
Opening cost
------------ ------------
Opening fair value 739,258 -
------------ ------------
Purchases at cost 2,740,917 694,278
------------ ------------
Sale (1,590,473) -
------------ ------------
Cost at fair value measurement - 51,855
------------ ------------
Realised gain 3,400 -
------------ ------------
Unrealised (loss) (165,609) -
------------ ------------
Unrealised (loss) on foreign exchange (26,593) (6,875)
------------ ------------
Closing fair value at 31 March 2019 and 2018 1,700,900 739,258
------------ ------------
(b) Accounting classifications and fair values
IFRS 13 requires the Company to classify its financial
instruments held at fair value using a hierarchy that reflects the
significance of the inputs used in the valuation methodologies.
These are as follows:
Level 1 - quoted prices in active markets for identical
investments;
Level 2 - other significant observable inputs (including quoted
prices for similar investments, interest rates, prepayments, credit
risk, etc.); and
Level 3 - significant unobservable inputs (including the
Company's own assumptions in determining the fair value of
investments).
The following sets out the classifications used as at 31 March
2019 in valuing the Company's investments:
Carrying amount Fair value
------------------------------------------------------ -------------------------------------------
Financial
assets at Other Total
Mandatorily amortised financial carrying Level
31 March 2019 at FVTPL cost liabilities amount Level 1 2 Level 3 Total
--------------- ------------ ----------- --------------- ---------- ---------- ------- ---------- ----------
GBP GBP GBP GBP GBP GBP GBP GBP
------------ ----------- --------------- ---------- ---------- ------- ---------- ----------
Investments in
quoted equity
assets 412,204 - - 412,204 412,204 - - 412,204
Investments in
unquoted
equity
assets 1,288,696 - - 1,288,696 - - 1,288,696 1,288,696
1,700,900 - - 1,700,900 412,204 - 1,288,696 1,700,900
--------------- ------------ ----------- --------------- ---------- ---------- ------- ---------- ----------
Financial
assets not
measured
at fair value
Cash and cash
equivalents - 2,139,842 - 2,139,842 2,139,842 - - 2,139,842
- 2,139,842 - 2,139,842 2,139,842 - - 2,139,842
--------------- ------------ ----------- --------------- ---------- ---------- ------- ---------- ----------
Financial
liabilities
not
measured at
fair value
Other payables - - 50,654 50,654 - 50,654 - 50,654
- - 50,654 50,654 - 50,654 - 50,654
--------------- ------------ ----------- --------------- ---------- ---------- ------- ---------- ----------
Carrying amount Fair value
------------------------------------------------------- ------------------------------------------
FVTPL -
designated Other Total
at fair Loans and financial carrying Level
31 March 2018* value receivables liabilities amount Level 1 2 Level 3 Total
--------------- ------------ ------------- -------------- ---------- ---------- -------- -------- ----------
GBP GBP GBP GBP GBP GBP GBP GBP
Investments in
unquoted
equity
assets 739,258 - - 739,258 - - 739,258 739,258
739,258 - - 739,258 - - 739,258 739,258
--------------- ------------ ------------- -------------- ---------- ---------- -------- -------- ----------
Financial
assets not
measured
at fair value
Cash and cash
equivalents - 1,663,505 - 1,663,505 1,663,505 - - 1,663,505
Receivables - 689,713 - 689,713 - 689,713 - 689,713
---------- -------- -------- ----------
- 2,353,218 - 2,353,218 1,663,505 689,713 - 2,353,218
--------------- ------------ ------------- -------------- ---------- ---------- -------- -------- ----------
Financial
liabilities
not
measured at
fair value
Management fee
payable - - 4,766 4,766 - 4,766 - 4,766
Other payables - - 38,550 38,550 - 38,550 - 38,550
- - 43,316 43,316 - 43,316 - 43,316
--------------- ------------ ------------- -------------- ---------- ---------- -------- -------- ----------
* The Company has initially applied IFRS 9 at 1 January 2018.
Under the transition methods chosen, comparative information is not
restated.
10) Receivables
31 March 31 March
2019 2018
GBP GBP
Prepayments - -
---------- ---------
Other receivables - 689,713
---------- ---------
Total receivables - 689,713
---------- ---------
The above receivables do not carry any interest and are short
term in nature. The directors consider that the carrying values of
these receivables approximate their fair value.
11) Other Payables
31 March 31 March
2019 2018
GBP GBP
Management fee payable - 4,766
--------- ---------
Accruals and deferred income 50,654 38,550
--------- ---------
Total other payables 50,654 43,316
--------- ---------
The above payables do not carry any interest and are short term
in nature. The directors consider that the carrying values of these
payables approximate their fair value.
12) 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
31 March GBP 31 March GBP
2019 2018
Ordinary shares of 1
penny each 4,564,748 45,647 3,310,000 33,100
-------------- ------- -------------- -------
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% was 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
year ended 31 March 2019.
31 March 31 March
2019 2018
Balance as at 1 April 2018 3,310,000 -
---------- ----------
Ordinary shares issued 1,254,748 3,310,000
---------- ----------
Balance as at 31 March 2019 4,564,748 3,310,000
---------- ----------
During the year ended 31 March 2019, all proceeds from this
issue was received (2018: GBP689,713 remained receivable).
13) Net Asset Value per Ordinary Share
Year ended 31 March Year ended 31 March
2019 2018
Year ended 31 March Net asset Net assets Net asset Net assets
2019 value per attributable value per attributable
ordinary GBP ordinary GBP
share share
Pence Pence
----------- -------------- ----------- --------------
Ordinary shares of
1 penny each 83.03p 3,790,088 92.12p 3,049,160
----------- -------------- ----------- --------------
The net asset value per ordinary share is based on net assets at
the year ended of GBP3,790,088 (2018: GBP3,049,160) and on
4,564,748 (2018: 3,310,000) ordinary shares in issue at the year
end.
14) Contingent Liabilities and Capital Commitments
The Company may invest in Suir Valley Ventures or other
collective investment vehicles, subscriptions to which are made on
a commitment basis. The Company will be expected to make a
commitment that may be drawn down, or called, from time to time at
the discretion of the manager of the Fund or other collective
investment vehicle. The Company will usually be contractually
obliged to make such capital call payments and a failure to do so
would usually result in the Company being treated as a defaulting
investor by the Fund or other collective investment vehicle.
The Company's has to satisfy capital calls on its commitments
and will do through a combination of reserves, and where applicable
the realisation, of Cash and Cash Equivalents and Liquid
Investments (as each expression is defined in the prospectus dated
17 November 2017), anticipated future cash flows to the Company,
the use of borrowings and, potentially, further issues of
Shares.
As of 31 March 2019, the Company had outstanding commitments in
relation to the Fund in the amount of EUR2.9 million (2018: EUR3,8
million).
15) Related Party Transactions and Transactions with the
Manager
Directors - The remuneration of the directors is set out in the
directors' Remuneration Report on page 34. There were no contracts
subsisting during or at the end of the year 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 year with the directors of the Company. The
directors do not hold any ordinary shares of the Company.
At 31 March 2019, there was GBP1,192 (2018: GBP203) payable to
the directors for 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 Note 5.
During the year the Company incurred GBP46,193 (2018: GBP4,767)
of fees and at 31 March 2018, there was GBPnil (2018: GBP4,767)
payable to the Manager.
During the year the Company paid GBP63,621 (2018: GBP50,922) of
placement fees to Shard Capital Partners LLP.
During the year the Manager paid GBPnil (2018: GBP12,000) to the
advisor in relation to the flotation.
16) Financial Risk Management
The Company's investment objective is to achieve capital growth
for investors pursuant to the investment policy outlined in the
prospectus, this involves certain inherent risks. The main
financial risks arising from the Company's financial instruments
are market risk, credit risk and liquidity risk. The board reviews
and agrees policies for managing each of these risks as summarised
below.
Market risk
Market risk is the risk that the fair value of future cash flows
of a financial instrument will fluctuate. Market risk comprises
three types of risk, price risk, interest rate risk and currency
risk.
Price risk - the risk that the fair value or future cash flows
of financial instruments will fluctuate because of changes in
market prices (other than those arising from interest rate risk or
currency risk);
Interest rate risk - the risk that the fair value or future cash
flows of financial instruments will fluctuate because of changes in
market interest rates; and
Currency risk - the risk that the fair value or future cash
flows of financial instruments will fluctuate because of changes in
foreign exchange rates.
The Company's exposure, sensitivity to and management of each of
these risks is described below. Management of market risk is
fundamental to the Company's investment objective. The investment
portfolio is continually monitored to ensure an appropriate balance
of risk and reward within the parameters of the investment
restrictions outlined in the prospectus.
(a) Price risk
Price risk arises mainly from uncertainty about future prices of
financial instruments used in the Company's business. It represents
the potential loss the Company might suffer through holding market
positions in the face of price movements (other than those arising
from interest rate risk or currency risk) specifically in equity
investments purchased in pursuit of the Company's investment
objective, held at fair value through the profit and loss.
As at 31 March 2019 and 2018 the Company held one direct private
equity investment in the participating shares of Suir Valley
Ventures, a sub-fund of Suir Valley Funds ICAV.
As at 31 March 2019 and 2018 the investment in Suir Valley
Ventures is valued at the net asset value of the sub-fund, as
calculated by its administrator.
At 31 March 2019, had the fair value of investments strengthened
by 10% with all other variables held constant, net assets
attributable to holders of participating shares would have
increased by GBP170,090 (2018: GBP73,925). A 10% weakening of the
market value of investments against the above would have resulted
in an equal but opposite effect on the above financial statement
amounts to the amounts shown above, on the basis that all other
variables remain constant. Actual trading results may differ from
this sensitivity analysis and the difference may be material.
(b) Interest rate risk
Interest rate risk arises from the possibility that changes in
interest rates will affect future cash flows or the fair values of
financial instruments.
The Company's currently employs no borrowings.
The Company finances its operations mainly through its share
capital and reserves, including realised gains on investments.
Exposure of the Company's financial assets and liabilities to
floating interest rates (giving cash flow interest rate risk when
rates are reset) and fixed interest rates (giving fair value risk)
as at 31 March 2019 and 31 March 2018 is shown below:
31 March 2019 31 March 2018
Financial instrument Floating Fixed or Total Floating Fixed or Total
Rate Administered GBP Rate Administered GBP
GBP Rate GBP Rate
GBP GBP
---------- -------------- ---------- --------- -------------- ----------
Cash and cash
equivalents - 2,139,842 2,139,842 - 1,663,505 1,663,505
--------- -------------- ---------- --------- -------------- ----------
Total exposure - 2,139,842 2,139,842 - 1,663,505 1,663,505
--------- -------------- ---------- --------- -------------- ----------
An administered rate is not like a floating rate, movements in
which are directly linked to LIBOR. The administered rate can be
changed at the discretion of the lender.
(c) Currency risk
As at 31st March 2019 the Company's largest investment is
denominated in euros whereas its functional and presentation
currency is pounds sterling. Consequently, the Company is exposed
to risks that the exchange rate of its currency relative to euros
may change in a manner that has an adverse effect on the fair value
of the Company's assets.
At the reporting date the carrying value of the Company's
financial assets and liabilities held in individual foreign
currencies as a percentage of its net assets were as follows:
Foreign currency exposure as a percentage 31 March 31 March
of net assets 2019 2018
Euros 34% 24%
--------- ---------
Sensitivity analysis
If the euro exchange rates increased/decreased by 10% against
pounds sterling, with all other variables held constant, the
increase/decrease in the net asset attributable to the Company
arising from a change financial assets at fair value through profit
or loss, which are denominated in euros, would have been +/-
GBP128,870 (2018: GBP73,925).
17) Credit risk
Credit risk is the risk that one party to a financial instrument
will cause a financial loss for the other party by failing to
discharge an obligation.
The Company's credit risks arise principally through cash
deposited with banks, which is subject to risk of bank default.
The Company ensures that it only makes deposits with
institutions with appropriate financial standing.
Due to the low credit risk of the financial assets at amortised
cost, the ECL was determined to be immaterial and no impairment was
recognised on the Fund in the period ended 31 March 2019.
Liquidity risk
Liquidity risk is the risk that the Company will have difficulty
in meeting its obligations in respect of financial liabilities as
they fall due.
The Company manages its liquid resources to ensure sufficient
cash is available to meet its expected contractual commitments. It
monitors the level of short-term funding and balances the need for
access to short-term funding, with the long-term funding needs of
the Company.
Capital Management
The Company's capital is represented by ordinary shares and
reserves.
The Company's primary objectives in relation to the management
of capital are:
-- to maximise the long-term capital growth for its shareholders
pursuant to its investment objective;
-- to ensure its ability to continue as a going concern.
The Company manages its capital structure and liquidity
resources to meet its obligations as described above.
Borrowing limits
Pursuant to the prospectus dated 17 November 2017 the Company
can deploy gearing up to 20% of the net asset value of the Company
(calculated at the time of borrowing) to seek to enhance returns
and for the purpose of capital flexibility and efficient portfolio
management. During the year ended 31st March 2019 and period ended
31st March 2018 the Company employed no gearing.
18) Ultimate Controlling Party
It is the opinion of the directors that there is no ultimate
controlling party.
19) Events after the Reporting Period
On 26 April 2019 Sure Ventures PLC announced a direct investment
of GBP500,000 in VividQ Limited, a UK-based deep tech software
company pioneering the application of holography in AR/VR and
consumer electronics display.
On 4 June 2019 Suir Valley, a sub-Fund of Suir Valley Funds
ICAV, of which Sure Ventures PLC has committed EUR 4.5m, changed
its name to Sure Valley Ventures.
On 7 June 2019 Sure Ventures PLC issued an additional 305,208
ordinary shares at a price of GBP0.96 per share, taking the total
shares in issue to 4,869,956.
On 14 June 2019 Chris Boody resigned as a Non-Executive Director
and St. John Agnew was appointed as a Non-Executive Director.
S
For further information, please visit www.sureventuresplc.com or
contact:
+44 (0) 20 7186
Gareth Burchell Sure Ventures plc 9918
Melissa Hancock/ Gaby St Brides Partners (Financial +44 (0) 20 7236
Jenner PR) 1177
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. The Company
aims to provide investors with a diversified exposure to three
rapidly-growing markets: augmented reality/virtual reality,
Artificial Intelligence and Internet of Things. 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/
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
FR RMMBTMBBJTPL
(END) Dow Jones Newswires
July 31, 2019 02:02 ET (06:02 GMT)
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