Half-year report and dividend declaration

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Octopus Titan VCT plc (“Titan” and “the Company”)

Unaudited half-yearly report for the six months ended 30 June 2021

Company number: 06397765

Today the Company announces the half-yearly results for the six month period to 30 June 2021 as below.

These results were approved by the Board of Directors on 28 September 2021.

You may view the Half-yearly Report in full at octopustitanvct.com shortly. All other statutory information will also be found there.

Octopus Titan VCT plc is a venture capital trust (‘VCT’) which aims to provide shareholders with attractive tax-free dividends and long-term capital growth by investing in a diverse portfolio of predominantly unquoted companies. The Company is managed by Octopus Investments Limited (‘Octopus’ or ‘Portfolio Manager’) and Octopus AIF Management Limited (the ‘Manager’).

Financial Summary

  Six months to

30 June 2021

Six months to

30 June 2020

Year to
31 December 2020
Net assets (£’000s) 1,275,105 906,218 1,043,235
(Loss)/profit after tax (£’000s) 218,580 (26,016) 75,323
NAV 113.9p 89.5 p 97.0p
Cumulative dividends paid since launch 84.0p 79.0p 81.0p
Total Value 197.9p 168.5p 178.0p
Total Return* 19.9p (2.7)p 6.8p
Total Return %** 20.5% (2.8)% 7.1%
Dividends paid in the period 3.0p 3.0p 5.0p
Dividends declared in respect of the period*** 8.0p 2.0p 3.0p

*Calculated as the change in NAV in the period plus dividends paid in the period.

**Calculated as total return/opening NAV.

***This includes an interim dividend of 2.0p per share supplemented by a special dividend of 6.0p per share, and will be paid on 20 December 2021 to shareholders on the register as at 2 December 2021.

Chairman’s Statement

I am pleased to present the unaudited half-yearly report for Octopus Titan VCT (‘Titan’) for the six months ended 30 June 2021.

The Net Asset Value (‘NAV’) at 30 June 2021 was 113.9p which, adjusting for dividends paid, represents a 19.9p (20.5%) increase from 31 December 2020 and a 8.4p (8.0%) increase since the last released NAV on 23 April 2021. The Total Value (NAV plus cumulative dividends paid per share since launch) at the end of the period was 197.9p (31 December 2020: 178.0p). The tax-free annual compound return for the original shareholders since Titan’s launch in October 2007 is now 5.8%.

Despite the challenges in the macro environment, we were pleased to raise £120 million in our most recent fundraise which closed on 3 March 2021, and, on 18 June 2021, we announced our intention to launch a new offer in the near future. As of 30 June 2021, we have uninvested cash reserves of £220 million to allow us to support our existing portfolio of more than 90 companies, as well as make new investments into early-stage, high growth businesses which we believe embody the objectives of the VCT scheme.

In the six months to 30 June 2021, we have utilised £125 million of our cash resources, comprising £52 million in new and follow-on investments, £25 million in dividends, £16 million in share buybacks and £32 million in investment management fees and other running costs (of which £18 million was the 2020 performance incentive fee). Together, this utilised 53% of our cash and cash equivalents at 31 December 2020.

Investment Portfolio Review

I am pleased to report a net uplift in the value of the portfolio of £286 million since 31 December 2020, excluding additions and disposals, representing a 35% return on the value of the portfolio at the start of the year. Octopus and the Board engaged our auditors, BDO, to undertake a review of the valuations of the largest 25 holdings by value, similar to the review process conducted across the entire portfolio at the previous year end, and we have considered their comments in determining the NAV at 30 June 2021. We set out below the cost and valuation of the top ten holdings which account for over 55% of the value of the portfolio.

Investments Investment cost at
30 June 2021*
(£’000)
Valuation at
30 June 2021
(£’000)
Bought By Many Limited 9,978 126,960
Cazoo Limited 5,000 121,991
DePop Limited 8,766 97,361
Amplience Limited 13,634 59,956
Permutive Inc. 11,839 43,152
Chronext AG 7,708 32,157
Digital Therapeutics 6,494 22,754
Chiaro Technology Limited 6,417 22,062
Big Health Limited 10,571 20,775
Elliptic Enterprises Limited 4,913 19,710
Total 85,320 566,878

In the case of Amplience, it reflects the amount invested from Titan’s 1-5 before the 2014 merger and from Titan after the merger. This is different to the book cost which includes the holding gains and losses on assets which transferred from Titans 1, 3, 4 and 5 to Titan 2 (now Titan) during the merger, as Titan received these assets at fair value.

During the six months, the uplift in valuation has been driven by the strength of performance of a number of companies in the portfolio, including in particular, Bought By Many, Cazoo, Chronext, Depop, Permutive and WaveOptics. Collectively, 40 investee companies drove an uplift of £323 million, including valuation uplifts on companies disposed of in the period. Many of our portfolio companies have made great progress over this period and hit exciting milestones, including launching new partnerships, entering new markets and rolling out new products. For example, Bought By Many raised $350 million of additional funding at a valuation of $2 billion in June, and (post period end) Cazoo listed on the New York Stock Exchange in August, valuing the group at $8 billion, both incredible achievements. Titan first invested in Cazoo in November 2018 and the value of our holding has increased by more than 24 times based on the value of the business upon its listing in August.

Titan has also benefitted from an impressive number of exits during the period including: Skew being sold to Coinbase Global Inc. in April; the acquisition of WaveOptics by Snap Inc. for over $500 million in May; and in June Depop announced its acquisition by Etsy for $1.625 billion (which completed in July) and Semafone was majority acquired by Livingbridge enabling Titan to realise its investment, also completing in July. Collectively, these companies received investment of £31 million from Titan and the combined realised consideration totalled £207 million (in cash, shares and/or deferred amounts), with some further details on each below:

  • WaveOptics: Titan first invested in WaveOptics in December 2015 and then further in 2017 and 2018 to support the company’s design and development of a set of components for use in Augmented Reality (AR) glasses that allow for the creation of AR displays. Its acquisition by Snap Inc, best known for its mobile application Snapchat, represented one of the UK’s largest ever deep tech acquisitions in history;
  • Depop: Etsy, the e-commerce company focussing on handmade and vintage items, acquired Depop, a mobile-first marketplace connecting those looking to buy and sell streetwear, for $1.625 billion to enhance its offering as the resale home for Gen Z consumers. Titan first invested in Depop in January 2018 and further invested in 2019;
  • Skew: Titan invested in Skew, which has built a data and trading platform to help financial institutions participate in the crypto market, in 2020 and it was acquired by Coinbase Global Inc., an early client; and
  • Semafone: The leading provider of Payment Card Industry Data Security Standard compliance solutions for payment and data security for call and contact centres, first received investment from Titan in 2010 and undertook a number of further funding rounds. Titan’s investment was realised through the company’s transaction with Livingbridge at a valuation equal to 8.5x our initial investment price. Post period end, we also saw the exit of Conversocial to Verint Systems Inc. for $50 million in August.

Conversely, as is to be expected when investing in early-stage companies, 31 companies saw a collective decrease in valuation of £37 million. The significant contributors were Trouva, Dead Happy, Property Partner, Stackin and Streetbees where trading performance has been more challenging for various reasons, including, in some cases, the sector being affected by the Coronavirus pandemic and/or adapting to Brexit legislation changes. 12 of these 31 companies saw a reduction in value of 5% or less, typically due to fluctuations in the FX rates or net cash levels in the companies. Octopus believes that a number of these businesses have the potential to overcome the issues they face and return to their ambitious growth plans and continues to work with these companies to help them achieve their ambitions. Where appropriate, this will include providing further funding to ensure the business has sufficient capital to execute on its strategy.

Unfortunately, having been unsuccessful in securing further funding and having explored and exhausted all other options, Systum Inc. was placed into liquidation in the period. Slightly out of the reporting period, Titan also realised its investments in Mush, through a sale to Mumsnet, and Property Partner was acquired by Better HoldCo Inc. both at a loss, but these transactions will allow the businesses to continue and potentially thrive under new corporate ownership. The disposal value of these holdings was reflected in the period end valuations. While it is disappointing to see unprofitable realisations in the portfolio, we continue to expect some such losses when making investments into early stage, high risk, but potentially high growth businesses and remain confident that the high performers in the portfolio should outweigh the failures.

Turning to investments made during the six months to 30 June 2021, £46.5 million was invested into 10 new companies and £5.9 million was invested in seven follow-on investments into existing portfolio companies. At the year end, the portfolio comprised 91 technology or tech-enabled companies, across the five investment focussed pods.

We have been pleased to welcome the following companies to the portfolio during the period:

  • Avione, which aims to help retail investors create wealth by giving them the ability to invest into a leveraged long-term portfolio of public equities;
  • CoMind, which is building the next generation non-invasive Brain Computer Interface;
  • Ibex, which has developed a clinical-grade, artificial intelligence-based solution for rapid, accurate, and objective cancer diagnostics and analysis in histopathology (the microscopic study of tissue with the aim of informing a medical diagnosis);
  • iSize, a software platform to optimise video quality while substantially reducing the video size and therefore bandwidth making it cheaper and quicker to transmit;
  • Legl, a cloud platform offering an operating system for legal businesses;
  • Overture, which is developing a suite of products to improve and automate key parts of assisted reproductive technology, which refers to medical procedures used primarily to address infertility;
  • Raylo, a subscription-based business for new and refurbished electronic devices, offering insurance and upgrades through the same subscription;
  • Sprout.ai, which offers insurers a claims automation and fraud filtering software system;
  • Taster, a family of delivery-only restaurant brands bringing unique street foods to European consumers; and
  • XYZ Reality, a cloud-based engineering-grade augmented reality software platform and hardware for the construction industry.

Furthermore, since 30 June 2021, eleven new and six follow-on investments have been completed, amounting to £29.5 million. The new investments were into:

  • Anansi, delivers automated insurance products for ecommerce businesses;
  • Collectv, a fresh food end-to-end supply chain business connecting food-service operators directly with produce suppliers;
  • Nanosyrinx, which has used synthetic biology principles to develop a targeted biologic therapeutic delivery platform, opening a new range of targets for drug development;
  • Walking on Earth, which is building a holistic health platform for the workforce;
  • Integrated Finance, which helps fintech companies connect various parts of their financial services stack through a single integration;
  • Mojo Men, a sexual wellbeing platform for men;
  • Commazero, an open banking bulk payment system;
  • Pngme, which is aiming to be the source of data to build a complete consumer financial profile for banks, fintechs, and credit bureaus;
  • Troglo, a digital clinic to address some of the most important and underserved areas for health and wellbeing in the LGBTQIA+ community;
  • Hapi, which is aiming to empower every family to build financial freedom for their children and transfer wealth to the next generation in the most seamless, tax efficient manner possible; and
  • Imophoron is building a novel vaccine development platform to make vaccines that are stable at temperatures of up to 50°C, tackling the cold-chain problem in the vaccines industry.

Dividends

As shareholders will know, our ambition is to pay an annual dividend of 5.0p per share, supplemented by special dividends when justified through particularly profitable realisations. Following careful consideration, I am pleased to confirm that your Board has now decided to declare an interim dividend of 2.0p (2020 2.0p) per share supplemented by a special dividend of 6.0p per share in respect of the current financial year, which will be paid on 20 December 2021 to shareholders on the register as at 2 December 2021. This represents a tax-free yield of 8% on the opening NAV. The announcement of the payment of a special dividend is a demonstration of the extraordinary performance of some of the portfolio companies and the successful exits which have completed over the period.

If you are one of the 27% of shareholders who take advantage of the Dividend Reinvestment Scheme (DRIS), your dividend will be receivable in Titan shares. This is an excellent way for those of you who prefer the capital value of your investment to grow to achieve your investment objectives.

As shareholders will be aware, since inception, we have paid 84p in dividends per share, excluding the interim and special dividends mentioned above. After undertaking a review of outstanding dividends, it has shown that there is a significant sum of unclaimed dividends. As such, if shareholders are in any doubt whether they have received all dividends due to them, they should visit the Computershare Investor Centre at: www.investorcentre.co.uk. Here you will also be able to view your full dividend history, download dividend confirmations for each dividend paid after 2017, download any income tax certificates (from both dividends and allotments after 2017), view your current dividend preferences and add your bank mandate details if you have not done so already. Alternatively, you can contact Computershare by calling 0370 703 6324.

Principal Risks and Uncertainties

The Board continues to regularly review the risk environment in which Titan operates. There have been no significant changes to the key risks which are fully described on pages 22 to 24 of the Annual Report for the year ended 31 December 2020. The Board does not anticipate there will be significant changes to these risks.

VCT Qualifying Status

PricewaterhouseCoopers LLP (PwC) provides both the Board and Octopus with advice concerning ongoing compliance with HMRC rules and regulations concerning VCTs and have advised that Titan continues to be in compliance with the conditions laid down by HMRC for maintaining approval as a VCT.

As at 30 June 2021, over 92% of the portfolio (as measured by HMRC rules) was invested in VCT-qualifying investments, significantly above the 80% current VCT-qualifying threshold.

Outlook

I am pleased to be able to announce such an impressive uplift in NAV over the last six months, as well as the payment of a special dividend. This is a credit to both the investment team’s experience and the portfolio’s resilience and ability to adapt in rapidly changing circumstances. The Coronavirus pandemic has created an extremely challenging environment, especially in certain sectors such as travel, retail and leisure; however, it has also offered opportunities. This can be seen with the number and range of exciting new investments made, as well as the remarkable array of realisations successfully completed over the past six months, as companies look to enhance their technology offerings, enter new markets or seek better ways to work and do business. As already announced, we intend to issue a prospectus to raise further funds and details are expected to be announced later in the Autumn.

Our most recent fundraising offer, and the completion of the aforementioned successful exits, mean that we have £220 million in cash and cash equivalents as at 30 June 2021. This will allow us to move towards our target for all cash outlays, excluding investments, to be funded by realisations, as well as to continue to support the most promising companies in our portfolio and back the people, ideas and industries that will change the world. To support this ambitious goal, Octopus has increased the investment and operational support team to ensure it continues to be able to make new investments and manage the expanding portfolio appropriately.

As described in the annual report to December 2020, when investing into new companies and some of those already in the portfolio, it was to be expected that Titan would invest along with funds from Octopus’ new Enterprise Investment Scheme (EIS) service, Octopus Ventures EIS, launched in Autumn 2020. In March 2021, the first such co-investment was completed, and as at 30 June 2021, 6 of these co-investments have been made in total, all of which have been into new companies to the portfolio. As a reminder, Titan will retain its pre-emption rights, including rights of first refusal, on all existing holdings. We are pleased with how Octopus is managing this process in accordance with the allocation policy which has been agreed with the Board.

One of the challenges the team faces is the competitive nature of the investment market, as more Venture Capital firms look to enter the early-stage space. New businesses with exceptional management teams and leading technologies regularly receive multiple offers of investment. The pod structure that Octopus has in place, allowing team members to be experts in their specific area of focus, as well as the additional value the Portfolio Talent team can offer to entrepreneurs, puts Octopus in a strong position to be able to stand out in such a competitive market. The diversity and volume of exciting new deals completed in the last six months and the upcoming pipeline of investment opportunities is testament to the work the investment team continues to put into sourcing, securing and working with such business successfully. VCTs have long provided a compelling opportunity for UK investors to provide funding for such businesses in a tax-efficient way, and we look forward to Titan continuing to do so in the coming year.

I would like to conclude by thanking both the Board and the Octopus team on behalf of all shareholders for their hard work, without which our fund would not continue to achieve such performance.

John Hustler
Chairman
28 September 2021

Investment Portfolio

Investments Pod Investment cost at
30 June 2021*
(£’000)
Amount invested in the six months ending 30 June 2021
(£’000)
Amplience Limited B2B Software 13,634
LHE Holdings Limited (trading as Property
Partner)
Fintech 13,600
Permutive Inc. B2B Software 11,839
Sofar Sounds Limited Consumer 11,400 482
Smartkem Limited Deep tech 10,753
Big Health Limited Health 10,571
PLU&M limited Consumer 10,500
Streethub Limited (trading as Trouva) Consumer 10,363
Bought By Many Limited Fintech 9,978
Digital Shadows Ltd B2B Software 9,702
Uniplaces Limited Consumer 9,491 188
Zenith Holding Company Limited** Consumer 8,963
Ometria Limited B2B Software 8,800
DePop Limited Consumer 8,766
Appear Here Limited Consumer 8,509
XYZ Reality Limited Consumer 8,500 8,500
Token.IO Ltd Fintech 8,422
CurrencyFair Limited Fintech 8,381
Antidote Technologies Ltd Health 8,251
Seatfrog UK Holdings Limited Consumer 7,800
Chronext AG Consumer 7,708
Iovox Limited B2B Software 7,206
Ibex Medical Analytics Health 7,148 7,148
Surrey NanoSystems Limited Deep tech 6,918
Stackin Inc Fintech 6,840
By Miles Limited Fintech 6,732
Allplants Limited Consumer 6,650
Digital Therapeutics (trading as Quit Genius) Health 6,494
Chiaro Technology Limited (trading as Elvie) Health 6,417
Context-Based 4Casting (C-B4) Ltd B2B Software 6,096
Casual Speakers Limited (trading as Jolt) Consumer 6,069 1,300
Conversocial Limited B2B Software 6,064
Phoelex Ltd Deep tech 6,025
Sprout.ai Limited Fintech 6,000 6,000
Origami Energy Limited Deep tech 5,947 414
Overture Life, Inc Health 5,813 5,813
Picsoneye Segmentation Innovation Limited (trading as Pixoneye) Deep tech 5,808
Artesian Solutions Limited B2B Software 5,481
Memrise Inc Consumer 5,144
Cazoo Limited Consumer 5,000
Vitesse PSP Ltd Fintech 5,000 2,321
Elliptic Enterprises Limited Fintech 4,913
OpenSignal Inc B2B Software 4,862
Michelson Diagnostics Limited Health 4,795
Impatients N.V. (trading as MyTomorrows) Health 4,705
Orbital Express Launch Limited Deep tech 4,550
Olio Exchange Limited Consumer 4,500
ThoughtRiver Limited Deep tech 4,500
Raylo Group Limited Fintech 4,500 4,500
The Faction Collective SA Consumer 4,461
We Farm Consumer 4,350
Secret Escapes Limited Consumer 4,256
Behaviometrics AB Deep tech 4,229
Patch Gardens Limited Consumer 4,172
Eve Sleep Plc Consumer 4,151
Mr & Mrs Oliver Ltd (trading as Skin+Me) Health 4,000
The Justice Platform Inc (trading as Legl) B2B Software 4,000 4,000
AudioTelligence Limited Deep tech 4,000
Positron Technologies Limited Fintech 4,000
vHive Tech Ltd Deep tech 3,996
Glofox B2B Software 3,812
Altitude Angel Ltd Deep tech 3,800
Dead Happy Limited Fintech 3,700
AllTaster Limited t/a Taster Consumer 3,684 3,684
Medisafe Project Limited Health 3,664
CoMind Technologies Limited Deep tech 3,375 3,375
Dogtooth Technologies Limited Deep tech 3,278
Anikin Ltd Consumer 3,000
Whirli Limited Consumer 3,000
Unmade Ltd Deep tech 3,000
Trafi Limited Deep tech 2,965
Ecrebo Limited B2B Software 2,857
Metrasens Limited Deep tech 2,819
Mosaic Smart Data Limited Fintech 2,780
iSize Limited Deep tech 2,625 2,625
Slamcore Limited Deep tech 2,550
CRED Investment Holdings Limited Fintech 2,500 500
Inrupt Inc. Fintech 2,372
Fluidly Limited B2B Software 2,299
Streetbees.com Limited B2B Software 2,086
Uniq Health Limited Health 1,900
Ori Biotech Health 1,548
Thirdeye Labs Limited Deep tech 1,500
Quantum Motion Technologies Limited Deep tech 1,498
Segura Systems Limited B2B Software 1,470
Aire Labs Limited Fintech 1,332
Intrepid Owls Limited (trading as Rest-Less) Fintech 1,285 735
Multiply AI Limited Fintech 1,283
Avione Saving & Investment Ltd Fintech 850 850
Minimum Corporation Fintech 759
M10 Fintech 626
Excession Technologies Limited Deep tech 298
Total   486,238 52,435

*Investment cost reflects the amount invested into each investee company from Titan’s 1 – 5 before the 2014 merger and from Titan after the merger. This is different to the book cost which includes the holding gains and losses on assets which transferred from Titan’s 1, 3, 4 & 5 to Titan 2 (now Titan) during the merger, as Titan purchased these assets at fair value.

**Owns stake in Secret Escapes Limited.

Income Statement

  Unaudited
Six months to 30 June 2021
Unaudited
Six months to 30 June 2020
Audited
Year to 31 December 2020
  Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Gains/(losses) on disposal of
fixed asset investments
34,475 34,475 (672) (672) 3,783 3,783
Gains on disposal of current asset investments
Gains/(losses) on valuation of fixed asset investments 251,697 251,697 (15,680) (15,680) 104,930 104,930
(Losses)/gains on valuation of current asset investments (57) (57) (66) (66) 4,352 4,352
Investment income 504 504 274 274 843 843
Investment management fees (474) (9,007) (9,481) (381) (7,230) (7,611) (764) (14,508) (15,272)
Performance fee (55,632) (55,632) (18,402) (18,402)
Other expenses (2,991) (2,991) (2,418) (2,418) (5,070) (5,070)
FX translation 65 65 157 157 159 159
(Loss)/profit before tax (2,961) 221,541 218,580 (2,525) (23,491) (26,016) (4,991) 80,314 75,323
Tax
(Loss)/profit after tax (2,961) 221,541 218,580 (2,525) (23,491) (26,016) (4,991) 80,314 75,323
(Loss)/earnings per share – basic and diluted (0.3)p 20.2p 19.9p (0.3)p (2.4)p (2.7)p (0.5)p 8.3p 7.8p

·     The ‘Total’ column of this statement is the profit and loss account of the Company; the supplementary revenue return 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.

Titan has no other comprehensive income for the period.

Balance Sheet

  Unaudited
As at 30 June 2021
Unaudited
As at 30 June 2020
Audited
As at 31 December 2020
  £’000 £’000 £’000 £’000 £’000 £’000
Fixed asset investments   1,024,358   663,587   820,699
Current assets:            
Corporate bonds 91,385   86,456   89,882  
Cash at bank 40,822   4,105   9,348  
Applications cash* 363   26   3,613  
Debtors 87,129   5,839   6,178  
Money market funds 88,125   147,114   137,170  
  307,824   243,540   246,191  
Current liabilities (57,077)   (909)   (23,655)  
Net current assets   250,747   242,631   222,536
             
Net assets   1,275,105   906,218   1,043,235
             
Share capital   111,925   101,272   107,502
Share premium   621,152   616,952   564,308
Special distributable reserve   100,392   69,413   150,007
Capital redemption reserve   8,015   4,879   6,377
Capital reserve realised   (44,689)   (47,811)   (66,167)
Capital reserve unrealised   509,704   187,547   309,706
Revenue reserve   (31,394)   (26,034)   (28,498)
Total equity shareholders’ funds   1,275,105   906,218   1,043,235
Net asset value per share   113.9p   89.5p   97.0p

*Cash held but not yet allotted.

The statements were approved by the Directors and authorised for issue on 28 September 2021 and are signed on their behalf by:

John Hustler
Chairman

Statement of Changes in Equity

  Share capital
£’000
Share premium
£’000
Capital redemption reserve
£’000
Special distributable reserve*
£’000
Capital reserve realised*
£’000
Capital reserve unrealised
£’000
Revenue reserve*
£’000
Total
£’000
As at 1 January 2021 107,502 564,308 6,377 150,007 (66,167) 309,706 (28,498) 1,043,235
Comprehensive income for the period:                
Management fees allocated as capital expenditure (9,007) (9,007)
Current year gain on disposal of fixed asset investments 34,475 34,475
Current year gains on disposal of current asset investments
Gains on fair value of fixed asset investments 251,697 251,697
Losses on fair value of current asset investments (57) (57)
Loss after tax (2,961) (2,961)
Performance fee (55,632) (55,632)
Total comprehensive income for the period (30,164) 251,640 (2,961) 218,515
Contributions by and distributions to owners:                
Share issue (includes DRIS)** 6,061 56,844 62,905
Repurchase of own shares (1,638) 1,638 (15,986) (15,986)
Dividends paid (includes DRIS) (33,629) (33,629)
Total contributions by and distributions
to owners
4,423 56,844 1,638 (49,615) 13,290
Other movements:                
Prior year fixed asset gains now realised 51,642 (51,642)
FX translation 65 65
Total other movements 51,642 (51,642) 65 65
Balance as at 30 June 2021 111,925 621,152 8,015 100,392 (44,689) 509,704 (31,394) 1,275,105

*Reserves available for distribution.

**This is net of allotment fees of £1.7 million.

  Share capital
£’000
Share premium
£’000
Capital redemption reserve
£’000
Special distributable reserve*
£’000
Capital reserve realised*
£’000
Capital reserve unrealised
£’000
Revenue reserve*
£’000
Total
£’000
As at 1 January 2020 95,161 559,972 4,074 106,915 (45,705) 209,089 (23,666) 905,840
Comprehensive income for the period:                
Management fees allocated as capital expenditure (7,230) (7,230)
Current year gain on disposal of fixed asset investments (672) (672)
Losses on fair value of fixed asset investments (15,680) (15,680)
Losses on fair value of current asset investments (66) (66)
Loss after tax (2,525) (2,525)
Total comprehensive loss for the period (7,902) (15,746) (2,525) (26,173)
Contributions by and distributions to owners:                
Share issue** 6,916 56,980 63,896
Repurchase of own shares (805) 805 (7,008) (7,008)
Dividends paid (30,494) (30,494)
Total contributions by and distributions
to owners
6,111 56,980 805 (37,502) 26,394
Other movements:                
Prior year fixed asset gains now realised 5,796 (5,796)
FX translation 157 157
Total other movements 5,796 (5,796) 157 157
Balance as at 30 June 2020 101,272 616,952 4,879 69,413 (47,811) 187,547 (26,034) 906,218

*Reserves available for distribution.

**This is net of allotment fees of £9.9 million.

  Share capital
£’000
Share premium
£’000
Capital redemption reserve
£’000
Special distributable reserve*
£’000
Capital reserve realised*
£’000
Capital reserve unrealised
£’000
Revenue reserve*
£’000
Total
£’000
As at 1 January 2020  95,161   559,972   4,074   106,915  (45,705)   209,089  (23,666)   905,840 
Comprehensive income for the year:                
Management fees allocated as capital expenditure  –   –   –   –  (14,508)   –   –  (14,508) 
Current year gain on disposal of fixed asset investments  –   –   –   –   3,783   –   –   3,783 
Current year losses on disposal of current asset investments  –   –   –   –   –   –   –   – 
Gains on fair value of fixed asset investments  –   –   –   –   –   104,930   –   104,930 
Gains on fair value of current asset investments  –   –   –   –   –   4,352   –   4,352 
Loss after tax  –   –   –   –   –   –  (4,991)  (4,991) 
Performance fee  –   –   –  –  (18,402)   –   –  (18,402) 
Total comprehensive income for the year  –   –   –   –  (29,127)   109,282  (4,991)   75,164 
Contributions by and distributions to owners:                
Share issue (includes DRIS)**  14,644   118,740   –   –   –   –   –   133,384 
Repurchase of own shares (2,303)   –   2,303  (19,994)   –   –   –  (19,994) 
Dividends paid (includes DRIS)  –   –   –  (51,318)   –   –   –  (51,318) 
Total contributions by and distributions to owners  12,341   118,740   2,303  (71,312)   –   –   –   62,072 
Other movements:                
Share premium cancellation  –  (114,404)   –   114,404   –   –   –   – 
Transfer between reserves  –   –   –   –   6,402  (6,402)   –   – 
Prior year fixed asset gains now realised  –   –   –   –   2,263  (2,263)   –   – 
Prior year current asset losses now realised   –   –   –   –   –   –   –   – 
Foreign exchange translation  –   –   –   –   –   –   159   159 
Total other movements  –  (114,404)   –   114,404   8,665  (8,665)   159   159 
Balance as at
31 December 2020
 107,502   564,308   6,377   150,007  (66,167)   309,706  (28,498)   1,043,235 

*Reserves available for distribution.

**This is net of allotment fees of £3.5 million.

Cash Flow Statement

  Unaudited
Six months to
30 June 2021
£’000
Unaudited
Six months to
30 June 2020
£’000
Audited
Year to
31 December 2020
£’000
Reconciliation of profit to cash flows from operating activities      
Profit/(loss) before tax 218,580 (26,016) 75,323
Increase in debtors (786) (2,854) (3,193)
Increase/(decrease) in creditors 36,672 (18,669) 490
Gains on disposal of current asset investments
Losses/(gains) on valuation of current asset investments 57 66 (4,352)
(Gains)/losses on disposal of fixed asset investments (34,475) 672 (3,783)
(Gains)/losses on valuation of fixed asset investments (251,697) 15,680 (104,930)
Outflow from operating activities (31,649) (31,121) (40,445)
       
Cash flows from investing activities      
Purchase of current asset investments (1,560) (6,197) (5,205)
Sale of current asset investments
Purchase of fixed asset investments (52,434) (52,827) (95,792)
Sale of fixed asset investments 29,782 12,997 23,915
Zenith distribution 25,000
Inflow/(outflow) from investing activities 788 (46,027) (77,082)
       
Cash flows from financing activities      
Applications Inflows allotted (3,250) (5,539) (1,952)
Purchase of own shares (15,986) (7,008) (19,994)
Net proceeds from share issues 54,365 63,896 128,103
Dividends Paid (net of DRIS) (25,089) (30,494) (46,037)
Inflow from financing activities 10,040 20,855 60,120
       
(Decrease)/Increase in cash and cash equivalents (20,821) (56,293) (57,407)
Opening cash and cash equivalents 150,131 207,538 207,538
Closing cash and cash equivalents 129,310 151,245 150,131
       
Cash and cash equivalents comprise      
Cash at Bank 40,822 4,105 9,348
Applications cash 363 26 3,613
Money Market Funds 88,125 147,114 137,170
  129,310 151,245 150,131

For further information please contact:

Katherine Fyfe
Octopus Company Secretarial Services Limited
+44 (0)20 7710 2800

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