Latest Results

Final results for the year ended 30 September 2021

 

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The Board of Asimilar Group plc (AIM: ASLR), the investment company focused on technology opportunities in the fields of big data, machine learning, telematics and the Internet of Things, is pleased to announce the Group's audited results for the year ended 30 September 2021.

Highlights

  • Profit after tax of £26.7 million (2020: £0.4 million)
  • Basic earnings per share of 23.29p (2020: 0.41p)
  • Total net assets of £41.5 million (2020: £10.6 million)
  • £5 million investment into Dev Clever at 10p per share
  • Further investment in other existing portfolio companies, including Audioboom, SeeQuestor, Magic Media Works, Gfinity and Sparkledun
  • Raised £7.3 million cash through the exercise of warrants in the Company, and the sale of Dev Clever options and warrants

Post year end developments

There have been a number of positive post period end developments in respect of the Group's portfolio companies.  Dev Clever Holdings plc ("Dev Clever"), the Group's largest holding by carrying value, continues to progress its acquisition of Veative Labs Pte Ltd (Singapore) ("Veative") and its shares are currently suspended pending completion and FCA approval of its prospectus.  All Active Asset Capital Ltd ("AAA") has completed its acquisition of Mesh Holdings plc, resulting in Asimilar now holding 24 million shares in AAA.  AAA has announced a number of interesting developments and opportunities.  Audioboom's share price has increased materially with its latest closing mid price of £18.75 per share (30 September 2021: £10.20 per share).

AQSE Growth Market

The Board  today announces its intention to seek admission of its shares to trading on the Access Segment of the AQSE Growth Market.  The Board believes in the opportunities offered by the AQSE Growth Market to improve liquidity in nascent companies and in the investment companies that invest in them. It also provides greater optionality to the Board going forwards, should the Company decide to cancel the admission of its shares to trading on AIM, in terms of reducing operating costs and taking advantage of a market regime which may be more fitting to an investment company.  This includes reducing the risk that investment opportunities are missed and shareholders' interests thereby affected.  The Company's shares will continue to trade on AIM and the Board will continue to assess the dual-listing structure.  Any proposal to cancel the admission to AIM would be subject to shareholder approval.

John Taylor, the Chairman of the Company, commented: "I am delighted to present these excellent results for the year in review.  The Board remains very optimistic on the opportunities our portfolio companies are presented with in the coming months and believes several have the potential to make material advances in 2022.  We very much look forward to updating the market with news on a number of fronts."

Introduction

I am pleased to present the annual report and consolidated financial statements for Asimilar Group plc ("Asimilar", "the Group", or "the Company"), for the financial year ended 30 September 2021.

Technology is at the foundation of our investment criteria. We invest in businesses that develop purpose-built technology and possess the operational expertise to scale and generate positive returns for shareholders.  We back founders that have a dedicated passion and competency for creating and engineering premium customer experiences through technology, content and product innovation.

As an investment business we evaluate a significant pipeline of potential investment opportunities based on the principles of our stated investment criteria.  Before investing, the board always evaluates the opportunities diligently and takes valued input from key shareholders and our investor partners on the value potential of the investment opportunities. 

The board has evaluated a number of options to maintain positive momentum and capitalise on new opportunities in the market that we believe are in the best interests of shareholders.  It has executed a number of follow on and new investments as a result.

Investment Strategy

At our last Annual General Meeting, held on 18 August 2021, shareholders approved a broadening of our investment policy to include a wider array of technology based businesses, whilst still focusing primarily on the sub-sectors of Big Data, Machine Learning, Telematics and Internet of Things.  It also removed the stated intention of only considering businesses that are generating positive cash flows, or are likely to do so imminently, so that investments in earlier stage, high growth, disruptive companies could be considered.

Financial Review

Total comprehensive income for the year was £26,705,635 (2020: £392,329). Unrealised gains on investments were £25,687,510 (2020: loss £1,778,363) and realised gains on investments were £2,202,000 (2020 impairment gains: £5,728). Cash at the bank at the year-end was £600,090 (2020: £709,819).

As at 30 September 2021, total assets were £43,735,675 (2020: £12,547,890) and the net fair value of investments held was £43,040,104 (2020: £8,794,403).  Total net assets were £41,474,640 (2020: £10,591,255) which represents 35.94 (2020: 11.60) pence per share.

Investment Portfolio

Asimilar has developed a portfolio approach to its investments.  The Board will assess new investments as well as reinforcing existing investments in portfolio companies where it has assessed there are opportunities to enhance shareholder value.  In order to expose our investors to the potential returns that we believe they demand, such investments should be regarded as at the highest end of the risk spectrum.  A brief summary of our investments and developments within them is outlined below:

Dev Clever Holdings Plc ("Dev Clever")

Dev Clever Holdings Plc, together with its wholly owned subsidiary Dev Clever Limited, is a software and technology group based in Tamworth, United Kingdom, specialising in the use of lightweight integrations of cloud-based gamification and VR technologies to deliver rich customer engagement experiences across both the commercial and education sectors.  In January 2019, Dev Clever listed on the Standard List of the London Stock Exchange.

The interest in Dev Clever is held via Asimilar's wholly owned subsidiary, Asimilar Investments Limited ("AIL"), based in Jersey.

On 3 September 2020, AIL exercised its right to subscribe for 17,500,000 shares in the capital of Dev Clever at a price of 10 pence per Dev Clever share for an aggregate subscription amount of £1.75 million in accordance with the terms of the amended Dev Clever Investment Agreement.

On 1 December 2020, AIL announced its intention to exercise the second tranche of the Dev Clever option. This became unconditional on 26 January 2021 resulting in a further investment of £2,000,000 for 20 million new shares.

On 25 February 2021, the Group announced that it had assigned the right to subscribe for 30 million shares in Dev Clever to Sitius Limited ("Sitius") for a cash consideration of £3 million.  In addition, AIL assigned some 15 million of the warrants to subscribe for new Dev Clever shares at 25p each to Sitius for a further cash consideration of £500,000.  Asimilar also announced on 1 March 2021 AIL's intention to use the proceeds from these assignments to complete its subscription for a further 30 million shares in Dev Clever at 10p per share which was completed on 18 March 2021.

At 30 September 2021, AIL held 70,000,000 ordinary shares in Dev Clever representing approximately 12.2% of Dev Clever's issued share capital. The carrying value of this investment was £26,950,000.  Asimilar Group Plc also held an additional 2,300,000 shares at a carrying value of £885,500.  AIL retains a warrant to subscribe for 35 million new ordinary shares in Dev Clever at 25 pence per Dev Clever share. 

On 24 December 2021, Dev Clever announced that trading in its ordinary shares was to be suspended pending the approval by the FCA of the acquisition of Veative by Dev Clever.

Mesh Holdings Plc ("MESH")

MESH is an unlisted investment business that aims to incubate emerging technology brands.  On 3 August 2020 Asimilar announced that it had reached an agreement with MESH whereby the Company received a consideration of 24 million MESH shares in return for the assignment of Asimilar's right to subscribe for up to 32% of the share capital of Sentiance N.V. ("Sentiance").

MESH holds a number of technology investments including Sentiance N.V.  Asimilar's holding of 24m shares accounted for 8.89% of MESH's issued share capital and was carried at a valuation of £984,000 as at 30 September 2021.

Sentiance is an emerging and leading organisation within behavioural, ethical artificial intelligence and machine learning with its "Motion Intelligence" and "Behavioural Change Platform" technologies. Sentiance has announced new partnerships, extended partnerships and contracts with well- known international businesses, including several within the Fortune 500.

On 29 November 2021 the Court approved a scheme of arrangement whereby All Active Asset Capital Limited ("AAA"), a private company previously listed on AIM, acquired 100% of MESH on the basis of one new AAA share for one MESH share. As a result, Asimilar now holds 24 million AAA shares representing approximately 1.3% of AAA's issued share capital. It is expected that a 'grey market' trading facility for AAA shares will be put in place within Q1 of 2022 as AAA seeks to attain a listing on an international recognised stock exchange. 

Audioboom Group plc ("Audioboom")

Audioboom is a global leader in podcasting with more than 100 million downloads each month from 30 million unique listeners around the world.  Audioboom was ranked as the fourth largest podcast publisher in the US by Triton Digital in January 2022.

Audioboom's ad-tech and monetisation platform underpins a scalable content business that provides commercial services for a premium network of 250 top tier podcasts.

In its quarterly update to 30 September 2021 Audioboom announced revenues for the nine months of $39.7m, up 117% for the same period in 2020 ($18.3m).  Its nine month adjusted EBITDA of $1.2m compared to a $1.6m loss for the same nine month period in 2020.

As at 30 September 2021 Asimilar held 155,000 (2020: 53,400) shares in Audioboom which represents 0.99% (2020: 0.34%) of the issued share capital.  The investment was valued at £1,575,920 at 30 September 2021 based on an Audioboom share price of £10.20. 

Magic Media Works Ltd ("Magic Media")

Magic Media  is a music entertainment technology business.  The company's mission is to bring families together through shared music entertainment experiences, making every home a connected home.

ROXi, which was launched by Magic Media in 2017, is the world's first 'made for TV' music entertainment product, delivering music entertainment experiences that allow consumers to listen, sing, dance and play together at home.

ROXi is backed by celebrity curators Kylie Minogue, Robbie Williams and Sheryl Crow and delivers its unique interactive experience through the stylish ROXi Console as well as through major Smart TV and Pay TV platforms, including Sky.

Offering unlimited music, karaoke-style singing, global radio access, an ambient sound machine and ROXi's unique music trivia game, Name That Tune, ROXi is highly differentiated and popular with its target market of older, family consumers.  The company has global rights agreements with the major labels (Universal Music Group, Sony Music Group, Warner Music Group) and major independents including Merlin Music, providing customers with one year's access to a premium music catalogue of over 55 million music tracks.

On 8 September 2020 Sky Q launched the ROXi music service, bringing an entertaining mix of unlimited music, music games, radio and karaoke to the living room, all in one place.

The partnership means that the ROXi music entertainment experience is now available on the Sky Q Pay TV platform, without the need for any additional hardware.

The launch of "ROXi on Sky Q" is part of a wider strategy to provide the ROXi experience on all major Smart TV and Pay TV platforms, with Sky having been the first European rollout partner. Roxi is now available on Fire TV, Google TV and Android TV.

On 7 December 2020 Asimilar invested a further £298,204 in Magic Media via a subscription to 298,204 loan notes of £1.00 each. 

On 23 June 2021 Asimilar took up its pre-emption rights and invested a further £693,564 in loan notes of £1.10 each.

Interest will be paid on the Loan Notes at 5%, payable annually in arrears on the anniversary of the Loan Note subscription.  The Loan Notes expire on 31 January 2026.  Magic Media can elect to satisfy the interest through the issuance of further Loan Notes or shares to the Loan Note holder.  Each Loan Note has a separate warrant attached which gives the holder the right to subscribe for a share in Magic Media at £1.10 for the 693,564 Loan Notes and at £1.00 for the 298,204 Loan Notes at any time during the life of the Loan Note ("Warrant").  The exercise of the Warrants can be carried out by offsetting the exercise subscription due against the outstanding loan amount, effectively resulting in a cashless exercise.

At 30 September 2021 Asimilar held 1,646,682 shares which represents 6.13% (2020: 7.4%) of the issued share capital. Asimilar also holds £1,491,768 in convertible loan notes, 928,717 warrants and has options over a further 95,000 ordinary shares in Magic Media.  The carrying value of this investment was £3,352,295 at 30 September 2021.

Simplestream Limited ("Simplestream")

Simplestream is an award winning provider of best in class, next generation TV solutions to some of the biggest players in the broadcast, sports and media industry.  Clients include A&E Networks, AMC Networks, Channel 4, Nova TV Sony Traceplay, QVC TV, Box Nation, Little Dot Studios and At The Races amongst others.

New customers taken on during the year were GB News, Digital Theatre and Craftsy. The company delivered the Paralympic Games on Channel 4's website and over its OTT platform.

Simplestream's cloud-based Media Manager platform provides broadcasters and rights owners with an end-to-end technology services eco-system, with a full range of multi-platform TV and video distribution products including low latency online simulcasts of TV channels, real-time sports highlights clipping, broadcaster catch-up services, social video syndication and subscriber management services.

Simplestream's technology platform also provides multi-channel and multi-territory front-end templated applications for a complete range of connected devices including mobiles, tablets, connected TVs and fast-growing over the top (OTT) platforms such as Amazon Fire TV, Apple TV and Roku. In the UK Simplestream's "Hybrid TV" solution is used by leading broadcasters to power "catchup" services on Freeview, Freesat, YouView and EETV.

Simplestream delivers services across Europe, the US, Africa and the Far East with further international expansion planned for 2022.

At 30 September 2021 Asimilar held 9,943 (2020: 9,943) shares in Simplestream, which represents 6.71% (2020: 6.71%) on a fully diluted basis and a Convertible Loan Note of £21,000.  The carrying value of this investment at 30 September 2021 is £856,212.

Gfinity plc ("Gfinity")

Gfinity is a world-leading esports solutions provider. It focuses on designing, developing and delivering esports solutions for e-games publishers, rights holders and brands. It has contracts and partnership arrangements with EA Games, Microsoft, FIFA, Formula 1 and Indycar.

During the year the company grew its Gfinity Digital Media group ("GDM") through the acquisition of three digital media assets focused on the gaming industry; EpicStream in December 2020, Stock Informer in August 2021 and SiegeGG Corporation in September 2021.  These transactions have strengthened the company's Digital Media offering and improved the company's ability to offer broader and more in depth content to its dedicated fans.

On 23 August 2021 the company completed a fundraise of £3.3m through an accelerated bookbuild.

At 30 September 2021 Asimilar held 5,962,500 (2020: 400,000) shares in Gfinity which represent 0.5% (2020: 0.05%) of the issued share capital.  The carrying value of this investment at 30 September 2021 is £224,462.

Sparkledun Limited ("Sparkeldun")

Sparkledun is a private company which, through its trading subsidiary, Fast to Fibre Limited ("Fast to Fibre"), has rights to exploit a patented process for the extraction of the inner core of telecoms and power cables, allowing the insertion of fibre optic without the need for excavation or other disruptive techniques.

The Fast to Fibre commercial proposition is to reduce the cost of fibre optic deployment particularly in difficult to access areas such as urban and city centres, thereby increasing the pace of adoption in line with government targets around the world to provide ultra-fast internet access. Fast to Fibre has successfully completed several trials in a variety of geographical locations and complex situations and is now progressing a number of major commercial opportunities in the UK, Europe, North America and India.

On 31 March 2021, Asimilar agreed to invest a further £300,044 for 5,047 new ordinary shares. This was part of a fund raise of £2.7 million to fund growth, marketing and R&D.

At 30 September 2021 Asimilar held 8,307 (2020: 3,260) ordinary shares of £1.00 each in the issued share capital of Sparkeldun, which represents 4% (2020: 1.88%) of its issued share capital.  The carrying value of this investment was £493,851 at 30 September 2021.

SeeQuestor Limited ("SeeQuestor")

SeeQuestor brings together leaders in cyber security and computer vision to deliver an Artificial Intelligence ("AI") tool to comb through some of the estimated 1.5 trillion hours of CCTV footage produced per year, harnessing what the Directors believe to be world leading AI technology and affordable supercomputing to turn terabytes of video into actionable intelligence.

SeeQuestor has two main products available: SeeQuestor 'Post-Event' which allows teams to comb through archives of video footage to find persons of interest or vehicles,  helping to solve investigations in a fraction of the time that would otherwise be needed; and SeeQuestor 'iCCTV' which monitors surveillance cameras in real-time. Use cases range from homeland security to smart cities, airports, industrial and mining operations.

The SeeQuestor 'Post-Event' product has been used successfully to solve crimes by 20 police forces in the UK and overseas. Having successfully completed a number of pilots in the field through 2019, SeeQuestor 'iCCTV' is now being deployed at scale to secure sensitive events and sites in several countries.

On 9 November 2020, Asimilar Investments Limited ("AIL") invested a further £250,000 for 16,892 new equity shares in addition to the 47,018 already held.

0n 31 December 2020 AIL invested a further £250,000 for new equity shares and was also granted a 1 for 1 warrant to subscribe for further new ordinary shares in SeeQuestor.  These warrants have also been applied on a one for one basis to the previous investment of £250,000 made on 9 November 2020.  The warrants were exercised in December 2021. 

The holding of SeeQuestor shares totalled 80,802 as at 30 September 2021, representing 7.08% of the issued share capital of SeeQuestor, and the carrying value of the investment was £970,138.

Low 6 Limited

Low6 Limited has developed an app for "pool betting" gameplay designed for Millennials to compete against each other rather than traditionally pitted against 'the House'.  Distribution is through multi-channel platform technology. Gameplay is available via 'Global network' or 'Ring-fenced geo-specific' tenants and/or locations.

On 2 October 2020 Asimilar converted £60,000 of Convertible Loan Notes into 4,408 shares.  On 19 December 2020 Asimilar exercised the warrants it held to bring the total investment in Low 6 Limited to 6,612 shares, representing some 0.01% of the issued share capital.   The carrying value of the investment was £119,993 at year end.

Zeelo Limited

Zeelo Limited's ambition is to build the world's leading smart mobility platform for organizations, enabling access to safe and sustainable transportation for everyday journeys. It seeks to use technology and data to provide flexible and cost efficient transportation programmes in public transit deserts.  This includes the smart provision and procurement of shared transport for businesses and providing employees with a safer commute to work and in education getting students to schools and colleges safely and competitively.  It also gives transport operators access to new business via a digitised service.

Zeelo has grown very impressively over 2021 in terms of journeys taken on the platform and significant revenue and the Board is confident it will realise the value of its investment in the near term.

On 4 August 2021 Asimilar invested £301,850 for 122 A preference shares which represents 0.01% of the issued share capital.  The carrying value of this investment was £301,850 at 30 September 2021.

Asimilar Investments Limited ("AIL") formerly Intrinsic Capital (Jersey) Limited

On 30 August 2020 Asimilar acquired Asimilar Investments Limited ("AIL"), formerly Intrinsic Capital (Jersey) Limited ("ICJL") in order to allow Asimilar to manage its portfolio with the benefit of the more benign capital gains tax regime available in Jersey in respect of some of its current and future investments.

AIL was a party to an investment agreement with Dev Clever Holdings Plc ("Dev Clever"), as announced by Dev Clever on 13 May 2020, giving AIL a right to subscribe for up to 100,000,000 ordinary shares in Dev Clever at a price of 10 pence per Dev Clever share (the "Dev Clever Investment Agreement").  Following the exercise of all of these subscription rights, AIL would have been entitled to exercise a warrant to subscribe for up to 50,000,000 additional Dev Clever shares at a price of 25 pence per Dev Clever Share (the "Dev Clever Warrant").

At the date of acquisition AIL had exercised part of the option and invested £250,000 for 2,500,000 of Dev Clever shares.

Under the terms of the acquisition agreement of AIL,  the Company acquired the entire issued share capital of AIL in return for the issuance of 1,000,000 new Asimilar ordinary shares credited as fully paid ("Consideration Shares"). In addition Mark Horrocks, the sole owner of AIL, was granted warrants to subscribe for up to 9,000,000 Asimilar ordinary shares in 2 tranches of up to 4,500,000 warrants per tranche.  Each tranche was exercisable for two years after the relevant price criteria in Dev Clever having been reached.  The relevant price criteria are the mid-market closing price of Dev Clever Shares for a period of five consecutive Business Days being or exceeding (i) 28 pence; and (ii) 55 pence respectively. The number of warrants which Mr Horrocks will be able to exercise will be proportional to the number of shares in Dev Clever subscribed for by the Company or AIL pursuant to the Dev Clever Investment Agreement at the date of exercise of such warrants.

On 29 March 2021, the Company announced that the mid-market closing price of shares in Dev Clever had exceeded 28 pence for a period of five consecutive Business Days.  Therefore 70 per cent of the first tranche of 4,500,000 warrants in Asimilar (equating to 3,150,000 warrants) issued to Mark Horrocks have vested.  The 3,150,000 warrants are exercisable at 0.01 pence per Asimilar ordinary share until 29 March 2023.

COVID -19 statement

The continuing global presence of coronavirus COVID-19 during the year continued to impact on the markets and business activity. The board has been in discussions, where possible, with its investee companies to better understand the impact on their business and actions taken to protect the businesses.

Our investee companies have carried out risk assessments and successfully implemented a number of actions to protect their workers and businesses.

Share issues

During the year Asimilar Group Plc issued new shares as a result of the exercise of various warrants as follows:

  • 2,760,000 5p warrants were exercised raising funds of £138,000.
  • 1,562,500  30p warrants were exercised raising funds of £3,468,750.

The following warrants were issued during the year (in addition to the 3,150,000 warrants issued to Mark Horrocks referred to above):

  • 1,000,000 director warrants to Mark Horrocks with an exercise price of 30p per share.
  • 6,000,000  warrants to Sitius relating to the disposal of the DevClever Option and Warrants with an exercise price of 50p per share.
  • 250,000  director warrants to Michael Preen with an exercise price of 60p per share.

Post Year End Transactions

On 29 October 2021 All Active Asset Capital Limited ("AAA") completed its acquisition of MESH.   Asimilar now holds 24m shares in AAA which represented 1.3% of AAA's issued share capital. AAA currently holds 185,917 shares of AAQUA N.V. which represents 32.5% of the issued share capital of AAQUA NV and 28,000 shares of Sentiance N.V. which represents 25.3% of the current issued share capital of that company.

AAA is a technology investing company, previously listed on AIM. It is pursuing a strategy of investing in opportunities within the global technology, software and Artificial Intelligence space, seeking to expose investors to a portfolio of potential future market leaders.  It has announced its intention to re-list on a recognised international exchange and ahead of that, to enable a 'grey market' trading facility in its shares during 2022.

AAQUA is a new social and community platform, centred around passions, connecting like-minded people, fans, icons, creators and brands through a federated network of passion communities. AAQUA's plan is to reshape the social media experience along more positive and inclusive lines by empowering peer-level communities, celebrating authentic and purposeful connections, and unleashing the power of co-creation. 

Sentiance is a Belgian intelligence-driven data science and behaviour change company. Sentiance's technology is designed to turn motion data into contextual insights and uses behavioural change techniques to personalise engagement for safer and sustainable mobility and well-being experiences.

On 24 December 2021, Dev Clever announced that trading in its ordinary shares were to be suspended pending the approval by the FCA of the acquisition of Veative Labs Pte Ltd (Singapore) by Dev Clever.

On 31 December, AIL exercised its SeeQuestor warrants and invested £337,840 for a further 33,784 new shares to bring its total holding to 67,568 and total Group holding to 114,586.

On 22 February 2022, the Company issued 240,000 new ordinary shares as a result of a warrant exercise.

Investment Strategy

The shareholders approved amendments to the investing strategy at the Company's latest AGM held in July 2021.  As a result the Board broadened its investing policy to encompass the broader technology sector whilst remaining primarily focused on opportunities within Big Data, Machine Learning, Telematics and Internet of Things. It also removed the stated intention of only considering businesses that are generating positive cash flows or are likely to so imminently, so that investments in earlier stage, high growth, disruptive companies can be considered. The full text of the amended investing policy is as follows:

The Company's Investing Policy is to invest in businesses which have some or all of the following characteristics:

  • strong management with a proven track record;
  • ready for investment without the need for material re-structuring by the Company
  • via an injection of new finances or specialist management, the Company can enhance the prospects and therefore the future value of the investment;
  • able to benefit from the Directors existing network of contacts; and
  • the potential to deliver significant returns for the Company.

Asimilar Group Plc will invest in the technology and software sectors and aims to focus primarily on opportunities in the Big Data, Machine Learning, Telematics and Internet of Things areas.

Whilst the Directors are principally focused on making investments in private businesses, they do not rule out investments in listed businesses if this presents, in their judgment, the best opportunity for Shareholders.

The Company intends to be an active investor in situations where the Company can make a clear contribution to the progress and development of the investment. In respect of other more substantial investment opportunities, the Directors expect the Company to be more of a passive investor.

The Directors believe that their broad collective experience together with their extensive network of contacts assists them in the identification, evaluation and funding of appropriate investment opportunities. When necessary, other external professionals will be engaged to assist in the due diligence on prospective targets and their management teams. The Directors will also consider appointing additional directors with relevant experience if required.

There exists no limit on the number of projects into which the Company may invest, and the Company's financial resources may be invested in a number of propositions or in just one investment, which may be deemed to be a reverse takeover pursuant to Rule 14 of the AIM Rules. Where the Company builds a portfolio of related assets it is possible that there may be cross-holdings between such assets. The Company does not currently intend to fund any investments with debt or other borrowings but may do so if appropriate.

The Company's primary objective is that of securing for the Shareholders the best possible value consistent with achieving, over time, both capital growth and income for Shareholders through developing profitability coupled with dividend payments on a sustainable basis.

Outlook

The Board will continue to pursue and evaluate opportunities that meet the investment criteria. It remains very optimistic on the opportunities our portfolio companies are presented with in the coming months and believe several have the potential to make material advances in 2022.  We very much look forward to updating the market with news on a number of fronts.

I would like to thank our shareholders and advisors for sharing our vision and supporting the Board.

 

 

John Taylor
Chairman
Date: 18 March 2022

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2021

  

2021

2020

 

Notes

£

£

    
    

Revenue

5

14,000

14,000

Other income

5

-

1,140,000

Realised gains on investment disposals

 

2,202,000

-

Administrative expenses

 

(800,536)

(1,043,099)

Fair value gain on asset acquisition

18

-

1,694,436

(Losses) / Gains from remeasurement of derivative financial liabilities

16

(459,900)

436,500

Sundry income

 

43,414

5,728

Remeasurement to fair value of investments in financial assets

12,13

25,687,510

(1,778,363)

  

------------------

------------------

OPERATING PROFIT BEFORE FINANCING ACTIVITIES

 

26,686,488

469,202

    
    

Finance income

6

20,377

49,945

Finance cost

6

(1,229)

(126,818)

  

------------------

------------------

PROFIT BEFORE TAX

8

26,705,635

392,329

    

Tax charge

10

-

-

  

------------------

------------------

PROFIT AFTER TAX

 

26,705,635

392,329

  

------------------

------------------

    
    
    

Earnings per share (pence per share)

   

Basic earnings

12

23.29p

0.41p

  

=========

=========

Diluted earnings

12

19.23p

0.28p

  

=========

=========

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 30 SEPTEMBER 2021

    

2021

2020

 Notes  ££

ASSETS

     

Non-current assets

     

Investments in financial assets held at fair value

13  36,312,4235,771,908
    

--------------------

--------------------
    

36,312,423

5,771,908
    --------------------

--------------------

      

Current assets

     

Investments in financial assets held at fair value

13  6,727,6813,022,495

Financial assets held at amortised cost

13  -2,771,426

Trade and other receivables

14  95,481182,242

Cash and cash equivalents

   600,090709,819
    ----------------------------------------
    7,423,2526,685,982
    ----------------------------------------
      
TOTAL ASSETS   43,735,67512,457,890
    ====================
      

EQUITY AND LIABILITIES

     

Current liabilities

     

Trade and other payables

15  131,635197,135
      
Derivative financial liabilities held at fair value16  2,129,4001,669,500
    ----------------------------------------
    2,261,0351,866,635
    ----------------------------------------
      

Total liabilities

     

 

     

Equity

     

Share capital

17  

5,214,709

5,213,277

Share premium account

17  

17,932,954

14,327,636

Merger relief reserve

17  

279,900

279,900

Warrant reserve

17  

157,813

157,813

Retained earnings

17  

17,889,264

(9,387,371)

 

   ---------------------

---------------------

 

     

Total equity

   41,474,64010,591,255

 

   ------------------------------------------

TOTAL EQUITY AND LIABILITIES

   

43,735,675

12,457,890

 

   

==========

==========

The financial statements were approved and authorised for issue by the board of directors on 18 March 2022 and were signed below on its behalf by

 

John Taylor
Chairman

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2021

  

Share

Merger

   
 

Share

Premium

Relief

Retained

Warrant

 
 

Capital

Account

Reserve

Earnings

Reserve

Total

 

£

£

 

£

 

£

       

At 1 October 2019

5,207,754

7,864,973

-

(10,104,200)

-

2,968,527

       

Total comprehensive income for the year

-

-

-

392,329

-

392,329

Share based payments

-

-

-

324,500

-

324,500

Issue of warrants

-

-

-

-

157,813

157,813

       

Transactions with owners

      

Shares issued

5,523

6,580,097

279,900

-

-

6,865,520

Cost of new issue

-

(117,434)

-

-

-

(117,434)

 

-----------------

------------------

------------------

--------------------

--------------------

------------------

At 1 October 2020

5,213,277

14,327,636

279,900

(9,387,371)

157,813

10,591,255

       

Total comprehensive income for the year

-

-

-

26,705,635

-

26,705,635

Share based payments

-

-

-

571,000

-

571,000

       
       

Transactions with owners

      

Shares issued

1,432

3,605,318

-

-

-

3,606,750

 

       
       
 

-----------------

------------------

-------------------

--------------------

--------------------

------------------

At 30 September 2021

5,214,709

17,932,954

279,900

17,889264

157,813

41,474,640

 

=========

==========

==========

===========

===========

=========

Share capital

Represents the par value of shares in issue.

Share premium

Represents amounts subscribed for share capital in excess of its nominal value, net of directly attributable issue costs.

Merger relief reserve

Represents premium on shares issued in connection with the acquisition of Intrinsic Capital Jersey Limited, recognised in accordance with S162 of the Companies Act 2006.

Retained earnings

Represents accumulated losses to date.

Warrant reserve

Represents the fair value of placing warrants issued.

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2021

    

2021

2020

    

£

£

Operating activities

     

Profit for the year

   

26,705,636

392,329

Adjustments for:

     

(Increase) / decrease in trade and other receivables

   

86,761

(112,776)

Decrease in trade and other payables

   

(65,500)

(80,310)

Net finance cost

   

(19,148)

(42,655)

Unrealised losses / (gain) on remeasurement to fair value

   

(25,687,510)

1,364,364

Gain on sale of investments

   

(2,202,000)

-

Fair value gain on asset acquisition

   

-

(1,694,436)

Share based payments

   

571,000

324,500

Other income (non-cash transaction)

   

-

(1,140,000)

    

-------------------

-------------------

Net cash generated / (used) in activities

   

(610,761)

(988,984)

    

-------------------

-------------------

Investing activities

     

Payments to acquire investments

   

(9,570,755)

(2,453,901)

Proceeds from sale of investments

   

3,674,463

-

Loans repaid / (advanced)

   

2,771,426

(2,722,422)

Finance income received

   

19,148

941

    

-------------------

-------------------

Net cash used in investing activities

 

(3,105,718)

(5,175,382)

    

-------------------

-------------------

Financing activities

     

Net proceeds from issue of shares

   

3,606,750

6,625,899

Cash arising on acquisition of ICJL

   

-

5,871

    

------------------

------------------

Net cash generated from financing activities

   

3,606,750

6,631,770

    

-------------------

-------------------

      
      

Net increase / (decrease) in cash and cash equivalents

 

(109,729)

 

467,404

     

Cash and cash equivalents at the start of the year

 

709,819

 

242,415

    

------------------

------------------

Cash and cash equivalents at the end of the year

   

600,090

709,819

    

------------------

------------------

Cash and cash equivalents consist of:

     

Cash and cash equivalents

   

600,090

709,819

    

=========

=========

 

Notes

The notes are available in the PDF download.

Page last up-dated: 21 March 2022