Oxford Technology Oxford Technology Venture Capital Trust Plc : Half-year Report
19 Settembre 2019 - 8:00AM
UK Regulatory
TIDMOXT
Oxford Technology Venture Capital Trust Plc
Unaudited Half-Yearly Report
For the period
1 March 2019 to 31 August 2019
Financial Headlines
6 Months Ended Year Ended
31 August 2019 28 February 2019
Net Assets at Period End GBP2.690m GBP2.693m
Net Asset Value per Share 49.5p 49.6p
Cumulative Dividend per Share 55.0p 55.0p
Total NAV Return per Share 104.5p 104.6p
Share Price at Period End
(Mid-Market) 35.0p 35.0p
Earnings per Share (0.1)p (2.8)p
------------------------------ --------------- -----------------
Company Number: 3276063
Registered Address: Magdalen Centre, Oxford Science Park, Oxford OX4 4GA
Statement on behalf of the Board
I am pleased to present the unaudited results for the six month period
ended 31 August 2019.
Results and Dividend
The Company's net asset value (NAV) per share has reduced fractionally
by 0.1p from 49.6p at 28 February 2019 to 49.5p at 31 August 2019. Some
minor changes in valuation within the unquoted portfolio netted off to
create this -- essentially flat -- outcome for the period.
The Directors are actively reviewing the financing needs of the Company.
There is a continued expectation of a growth in dividends from the
profitable companies in the VCT's portfolio, though with a degree of
uncertainty around the timing of cash inflows to the VCT due to
portfolio-specific market conditions.
The unquoted portfolio is unlikely to need additional equity funding and,
in any case, the VCT would likely be limited by VCT rules from making
equity investments into its existing portfolio companies.
I am also pleased to report that the Company has agreed a reduction in
its ongoing management fees. The Company's investment manager is now
charging an ongoing fee of 0.5% of NAV per annum, a 50% reduction.
Several of the directors have also agreed to a partial waiver of their
directors' remuneration, which will reduce the total annual spend on
directors' emoluments to GBP16,000, a 22% reduction. These changes have
been backdated to the start of the current financial reporting period,
i.e. 1 March 2019.
Portfolio Review
Select Technology represents over two thirds of the portfolio. It
distributes high quality document management software via its global
channel partners while adding significant value through its development
team by providing integrations or bespoke solutions. Select
Technology's sales grew to just over GBP7m in the year to July 2019 and
the company recorded a small profit. The industry has been undergoing
considerable changes as various mergers, acquisitions and consolidations
have been taking place, introducing a degree of uncertainty regarding
the immediate near term. Nevertheless, Select is optimistic about its
future prospects.
Scancell, the Company's AIM quoted investment, continues to make
progress, and makes up just over a sixth of the portfolio. It has
announced approval to start the UK Phase 2 SCIB1 trial and has begun
screening potential patients. It has also started the first joint
programme on its AvidiMab anti-glycan antibody technology, having
partnered with an unnamed large pharma on glycans: AvidiMab antibodies
target sugars rather than proteins on the cell surface. Scancell raised
GBP3.9 million through the issue of new shares to Vulpes Life Science
Fund in June. The money will support the transition of Modi-1 to the
clinic. Vulpes now owns 16.67% of Scancell -- Martin Diggle from Vulpes
was appointed to the board, which we believe increases the chance of a
successful outcome for this investment.
OT1 was the first investor in Getmapping in 1999; Getmapping is just
over 8% of the portfolio. The company combines aerial photography with
street level lidar imagery to produce complete 3D immersive models of
cities. The company is based in the UK and South Africa where the
processing of the raw data takes place, and its imagery covers the UK,
and many other cities in Africa, Europe the US and the Middle East.
Sales grew again last year, though there are no guarantees that growth
can be sustained -- the company operates in a challenging market.
However, Getmapping has ambitious plans for expansion, recently moving
to new offices and focusing particularly on selling 'solutions', which
enable customers of different types to make profitable use of
Getmapping's data.
OT1 was the original investor in BioCote in 1997. Today the business
provides its anti-microbial coating to more than 70 customers around the
world and has recently moved to new and larger premises on its
industrial estate. Sales were GBP2.3m in the last financial year -- a
new high -- and BioCote has been paying a regular dividend in recent
years. BioCote is almost 6% of the portfolio.
Liquidity
The Company has adequate liquidity to meet its obligations. The
Directors are not proposing to pay a dividend at this present time.
VCT qualifying status
The Board has procedures in place to ensure that the Company continues
to comply with the conditions laid down by HMRC for maintaining approval
as a VCT. The Directors are closely assessing the implications of
meeting the new 80% qualifying holding limit required to be in place by
29 February 2020 (as at 31 August 2019, OT1 is at 88%, comfortably
within the current 70% qualifying holding limit). Despite the cushion,
OT1's small size makes balancing the needs of prudent management of the
Company and meeting the various VCT qualifying tests all the more
challenging.
Presentation of half-yearly report
In order to reduce the length of this report, we have omitted details of
the Company's objectives and investment strategy, its Advisers and
Registrar and how to buy and sell shares in the Company. These details
are all included in the Annual Reports, which together with previous
half-yearly reports, are available for viewing on the Oxford Technology
website.
Outlook
Your Directors continue to monitor changes to VCT legislation, and their
potential impact on both the VCT and its investee companies. Recent rule
changes to tax efficient investment schemes are not expected to have any
material impact on the current portfolios or on current investors as the
VCT is fully invested. Likewise, whilst the impact of Brexit remains
unclear, your Directors do not expect its eventual outcome to have a
material impact on portfolio valuations.
In recent communications with shareholders, the Board has set out its
preference to expand the asset base of the Company by raising funds with
a new manager. The uptick in interest in 'business as usual' VCT venture
and growth investing has resulted in these listed retail investment
vehicles becoming of more interest to mainstream fund managers who do
not already have a VCT as part of their 'waterfront'. We continue to
believe your VCT is an appropriate structure to hold your Company's
investments, albeit it would be preferable to have a larger asset base
to share the operating costs. We have had detailed conversations with
potential parties, but to date, we have not been in a position to agree
terms. We have always made clear that there is no certainty such an
opportunity can be found but the Directors will continue seeking such
opportunities.
In any event, your Board and Investment Manager continue to work
together so as to best position your VCT such that -- when valuations
and liquidity allow -- holdings can be exited and proceeds distributed
to shareholders, whilst keeping a keen eye on keeping costs as low as
possible in the interim.
Finally, I would like to take this opportunity to thank shareholders,
many of whom we were able to welcome to our AGM in July, for their
continued support.
Alex Starling
Chairman
18 September 2019
Investment Portfolio as at 31 August 2019
Net Cost
of % Equity % Equity
investment Carrying value at 31/08/19 Change in value for the held held All % Net
Company Description GBP'000 GBP'000 6 month period GBP'000 OT1 OTVCTs assets
------------------ ------------- ---------- -------------------------- ----------------------- -------- -------- ------
Select -- STL Photocopier
Management Ltd interfaces 488 1,834 97 30.0 58.6 68.2
------------------ ------------- ---------- -------------------------- ----------------------- -------- -------- ------
Scancell Cancer
(bid price 6.8p) therapeutics 344 468 (14) 1.4 2.7 17.4
------------------ ------------- ---------- -------------------------- ----------------------- -------- -------- ------
Aerial
Getmapping photography 518 227 (73) 3.7 3.7 8.4
------------------ ------------- ---------- -------------------------- ----------------------- -------- -------- ------
Bactericidal
BioCote additives 85 158 7 6.6 6.6 5.9
------------------ ------------- ---------- -------------------------- ----------------------- -------- -------- ------
Total Investments 1,435 2,687 17 99.9
--------------------------------- ---------- -------------------------- ----------------------- -------- -------- ------
Other Net Assets 3 0.1
--------------------------------- ---------- -------------------------- ----------------------- -------- -------- ------
Net Assets 2,690 100
--------------------------------- ---------- -------------------------- ----------------------- -------- -------- ------
Responsibility Statement of the Directors in respect of the half-yearly
report
We confirm that to the best of our knowledge:
-- the half-yearly financial statements have been prepared in accordance
with the statement "Interim Financial Reporting" issued by the Financial
Reporting Council;
-- the half-yearly report includes a fair review of the information required
by the Financial Services Authority Disclosure and Transparency Rules,
being:
-- an indication of the important events that have occurred during the first
six months of the financial year and their impact on the condensed set of
financial statements.
-- a description of the principal risks and uncertainties for the remaining
six months of the year.
-- a description of related party transactions that have taken place in the
first six months of the current financial year that may have materially
affected the financial position or performance of the Company during that
period and any changes in the related party transactions described in the
last annual report that could do so.
On behalf of the Board:
Alex Starling
Chairman
18 September 2019
Income Statement
Six months to 31 Aug 2019 Six months to 31 Aug 2018 Year to 28 Feb 2019
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------------------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Unrealised (loss)/ gain on valuation of fixed asset
investments - 17 17 - (40) (40) - (93) (93)
Investment income 10 - 10 7 - 7 24 - 24
Investment management fees (2) (5) (7) (4) (11) (15) (7) (21) (28)
Other expenses (23) - (23) (27) - (27) (54) - (54)
---------------------------------------------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Return on ordinary activities
before tax (15) 12 (3) (24) (51) (75) (37) (114) (151)
Taxation on ordinary activities - - - - - - - - -
---------------------------------------------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Return on ordinary activities
after tax (15) 12 (3) (24) (51) (75) (37) (114) (151)
---------------------------------------------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Earnings per share -- basic and diluted (0.3)p 0.2p (0.1)p (0.5)p (0.9)p (1.4)p (0.7)p (2.1)p (2.8)p
---------------------------------------------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
There was no other Comprehensive Income recognised during the year.
The 'Total' column of the Income Statement is the Profit and Loss
Account of the Company, the supplementary Revenue and Capital return
columns have been prepared under guidance published by the Association
of Investment Companies.
All Revenue and Capital items in the above statement derive from
continuing operations.
The Company has only one class of business and derives its income from
investments made in shares and securities and from bank and money market
funds.
Balance Sheet
As at 31 Aug As at 31 Aug As at 28 Feb
2019 2018 2019
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------- ------- ------- ------- ------- ------- --------
Fixed asset investments
(At fair value through profit and loss) 2,687 2,723 2,670
Current assets:
Debtors 8 21 2
Creditors: Amounts falling due within one
year (21) (19) (12)
Cash at Bank 16 44 33
----------------------------------------- ------- ------- ------- ------- ------- --------
Net current assets 3 46 23
Net assets 2,690 2,769 2,693
----------------------------------------- ------- ------- ------- ------- ------- --------
Called up equity share capital 543 543 543
Share premium 176 176 176
Unrealised capital reserve 1,252 1,288 1,235
Profit and Loss account reserve 719 762 739
Total equity shareholders' funds 2,690 2,769 2,693
Net asset value per share 49.5p 51.0p 49.6p
----------------------------------------- ------- ------- ------- ------- ------- --------
Statement of Changes in Equity
Share Share Profit & Loss
Capital Premium Unrealised Capital Reserve Reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------ ------- ------- -------------------------- ------------- --------
As at 1
March 2018 543 176 1,328 797 2,844
Revenue
return on
ordinary
activities
after tax - - - (24) (24)
Expenses
charged to
capital - - - (11) (11)
Current
period
losses on
fair value
of
investments - - (40) - (40)
Balance as
at 31
August
2018 543 176 1,288 762 2,769
------------ ------- ------- -------------------------- ------------- --------
As at 1
March 2018 543 176 1,328 797 2,844
Revenue
return on
ordinary
activities
after tax - - - (37) (37)
Expenses
charged to
capital - - - (21) (21)
Current
period
losses on
fair value
of
investments - - (93) - (93)
Balance as
at 28
February
2019 543 176 1,235 739 2,693
------------ ------- ------- -------------------------- ------------- --------
As at 1
March 2019 543 176 1,235 739 2,693
Revenue
return on
ordinary
activities
after tax - - - (15) (15)
Expenses
charged to
capital - - - (5) (5)
Current
period
gains on
fair value
of
investments - - 17 - 17
Balance as
at 31
August
2019 543 176 1,252 719 2,690
------------ ------- ------- -------------------------- ------------- --------
Statement of Cash Flows
Six
months
to 31 Year to
Six months to 31 Aug Aug 28 Feb
2019 2018 2019
GBP'000 GBP'000 GBP'000
---------------------------------------------- -------------------- ------- -------
Cash flows from operating activities
Return on ordinary activities before tax (3) (75) (151)
Adjustments for:
Increase in debtors (6) (19) -
Increase in creditors 9 7 -
(Gain)/Loss on valuation of fixed asset
investments (17) 40 93
---------------------------------------------- -------------------- ------- -------
Outflow from operating
activities (17) (47) (58)
---------------------------------------------- -------------------- ------- -------
Cash flows from investing activities
Purchase of fixed asset investments - - -
Disposal of investments - - -
---------------------------------------------- -------------------- ------- -------
Total cash flows from investing activities - - -
Cash flows from financing activities
Dividends paid - - -
---------------------------------------------- -------------------- ------- -------
Total cash flows from financing activities - - -
Decrease in cash and cash equivalents (17) (47) (58)
Opening cash and cash equivalents 33 91 91
Closing cash and cash equivalents 16 44 33
---------------------------------------------- -------------------- ------- -------
Notes to the Half-Yearly Report
1. Basis of preparation
The unaudited half-yearly results which cover the six months to 31
August 2019 have been prepared in accordance with the Financial
Reporting Council's (FRC) Financial Reporting Standard 104 Interim
Financial Reporting ('FRS 104') and the Statement of Recommended
Practice (SORP) for Investment Companies re-issued by the Association of
Investment Companies in November 2014. Details of the accounting
policies and valuation methodologies are included in the Annual Report.
2. Publication of non-statutory accounts
The unaudited half-yearly results for the six months ended 31 August
2019 do not constitute statutory accounts within the meaning of Section
415 of the Companies Act 2006. The comparative figures for the year
ended 28 February 2019 have been extracted from the audited financial
statements for that year, which have been delivered to the Registrar of
Companies. The independent auditor's report on those financial
statements, in accordance with chapter 3, part 16 of the Companies Act
2006, was unqualified. This half-yearly report has not been reviewed by
the Company's auditor.
3. Earnings per share
The calculation of earnings per share for the period is based on the
return attributable to shareholders divided by the weighted average
number of shares in issue during the period. There are no potentially
dilutive capital instruments in issue and, therefore, no diluted returns
per share figures are relevant.
4. Net asset value per share
The net asset value per share is based on the net assets at the period
end divided by the number of shares in issue at that date (5,431,655 in
each case).
5. Principal risks and uncertainties
The Company's assets consist of equity and fixed interest investments,
cash and liquid resources. Its principal risks are therefore market risk,
credit risk and liquidity risk. Other risks faced by the Company include
economic, loss of approval as a Venture Capital Trust, investment and
strategic, regulatory, reputational, operational and financial risks.
These risks, and the way in which they are managed, are described in
more detail in the Company's Annual Report and Accounts for the year
ended 28 February 2019. The Company's principal risks and uncertainties
have not changed materially since the date of that report.
6. Related party transactions
OT1 Managers Ltd, a wholly owned subsidiary, provides investment
management services to the Company for a fee of 0.5% of net assets per
annum. As outlined in the Chairman's statement, in the year to 28
February 2019, the fee was 1%.
7. Copies of this statement are available from Oxford Technology
Management, Magdalen Centre, Oxford Science Park, Oxford OX4 4GA and on
the Company's website.
Board Directors: Alex Starling, Robin Goodfellow, Richard Roth and David
Livesley
Investment Manager: OT1 Managers Ltd with services contracted to Oxford
Technology Management Ltd
Website: www.oxfordtechnologyvct.com/vct1.html
(END) Dow Jones Newswires
September 19, 2019 02:00 ET (06:00 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Grafico Azioni Oxford Technology Ventur... (LSE:OXT)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Oxford Technology Ventur... (LSE:OXT)
Storico
Da Apr 2023 a Apr 2024
