Today techs Half-Yearly Outcomes

today techs

Octopus Titan VCT plc

Half-Yearly Outcomes

Octopus Titan VCT plc (‘Titan’ or ‘the Firm’) pronounces the half-yearly outcomes for the six months ended 30 June 2022.

Titan’s mission is to spend money on the individuals, concepts and industries that will change the world.

Highlights

  HY2022 HY2021 FY2021
Web belongings (£’000) £1,180,101   £1,275,105 £1,373,041
(Loss)/revenue after tax (£’000) £(148,242) £218,580 £216,557
NAV/share 91.3p 113.9p 105.7p
NAV + cumulative dividends 186.3p 197.9p 197.7p
Whole return (p)1 (11.4)p 19.9p 19.7p
Whole return %2 (10.8)% 20.5% 20.3%
Dividends paid within the yr 3.0p 3.0p 11.0p
Dividend yield %3 2.8% 3.0% 11.3%
Dividend declared 2.0p 8.0p 3.0p
  1. Whole return is another efficiency measure, calculated as motion in NAV per share within the interval plus dividends paid within the interval.
  2. Whole return % is another efficiency measure, calculated as complete return/opening NAV.
  3. Dividend yield is another efficiency measure, calculated as dividends paid/opening NAV.

Interim Administration Report

Chair’s assertion
I’m happy to current the unaudited half-yearly report for Titan for the six months ended 30 June 2022, in my first letter to you as Chair, having taken over from John Hustler in June 2022.

The online asset worth (NAV) per share at 30 June 2022 was 91.3p which, adjusting for dividends paid of three.0p per share in Could 2022, represents a web lower of 11.4p per share from 31 December 2021. The Whole Worth (NAV plus cumulative dividends paid per share since launch) on the finish of the interval was 186.3p (31 December 2021: 197.7p). This decline is, after all, disappointing however displays the tough world macro setting we at the moment are dealing with and follows a report yr in 2021 when it comes to each exit proceeds and complete return. The Octopus crew is carefully monitoring the portfolio to assist help the businesses we spend money on by means of these tougher occasions. Regardless of the current lower in NAV, the tax-free annual compound return for the unique shareholders since Titan’s launch in October 2007 is 4.9%.

We have been happy to boost over £200 million in our most up-to-date fundraise which closed in November 2021 and, on 17 June 2022, we introduced our intention to launch a brand new provide for subscription later this calendar yr.

As at 30 June 2022, we had uninvested money reserves of virtually £204 million1 (£381 million as at 31 December 2021) to permit us to help our present portfolio of 117 corporations, in addition to make new investments into early-stage, excessive development companies which we imagine embody the targets of the VCT scheme.

Within the six months to 30 June 2022, we utilised £212.2 million of our money sources, comprising £77.5 million in new and follow-on investments, £28.9 million in dividends, £18.3 million in share buybacks and £87.5 million in funding supervisor charges and different working prices (of which £63.9 million was the 2021 efficiency incentive charge). Collectively, this utilised 56% of our money and money equivalents at 31 December 2021.

Dividends
As shareholders will know, our goal is to pay an annual dividend of 5.0p per share, supplemented by particular dividends when acceptable. Following cautious consideration, I’m happy to verify that the Titan Board has now determined to declare an interim dividend of two.0p per share (2021: 2.0p per share supplemented by a particular dividend of 6.0p per share), which will probably be paid on 22 December 2022 to shareholders on the register as at 9 December 2022.

In case you are one of many 27% of shareholders who make the most of the Dividend Reinvestment Scheme (DRIS), your dividend will probably be receivable in Titan shares. This is a superb technique to obtain your funding targets for these of you preferring the capital worth of your funding to develop.

Principal dangers and uncertainties
The Board continues to evaluation the chance setting wherein Titan operates frequently. There have been no important modifications to the important thing dangers which have been described on pages 46 to 49 of the annual report for the yr ended 31 December 2021. Directionally, nevertheless, dangers are seen to be rising slightly than decreasing, within the classes of funding efficiency, financial and valuation.

Outlook
The financial backdrop of 2022 may be very completely different to that which now we have skilled over the past three years, even when contemplating the Covid-19 pandemic. The realities of the battle in Ukraine, value of residing disaster, excessive inflation charges and central banks elevating rates of interest will proceed to have a big impression throughout all markets, together with that for early-stage enterprise investments. Nevertheless, because of the help from our shareholders by means of the latest fundraises and the variety of the portfolio when it comes to sector, stage and classic, Titan is nicely positioned and we’re reassured that over 85% of the portfolio corporations have greater than 12 months money runway obtainable to them to help them by means of this extra turbulent interval. The Board believes Titan is ready of power to navigate the present scenario, and in reality make the most of alternatives as they current themselves.

We proceed to imagine that change also can create alternatives, particularly for early-stage, agile companies providing new applied sciences. We additionally know from expertise that most of the most profitable corporations in historical past have been based in recessionary environments. Within the quick time period, some portfolio corporations will face elevated headwinds which would require extra devoted help to navigate: the Octopus crew is nicely positioned to supply this with its Expertise crew and 39 robust funding crew to supply direct steerage and help. The long-term view of early-stage enterprise capital stays extraordinarily optimistic. We imagine that innovation will proceed at tempo, because of the highly effective mixture of outstanding entrepreneurs, skilled expertise and ache factors not being appropriately addressed by the established order. We are going to proceed to try to again the individuals, concepts and industries that may change the world.

Even throughout these turbulent occasions, I’m happy to report that Titan has accomplished 4 worthwhile disposals within the yr up to now: one partial and two full disposals within the six months to June 2022, and a full disposal submit the reporting interval. Every are coated in additional element within the Portfolio Supervisor’s report. Titan invested £77.5 million in new and follow-on alternatives within the six months to 30 June 2022, which brings the full variety of corporations within the portfolio to 117 at 30 June 2022.

The variety and quantity of thrilling new investments accomplished, and the upcoming pipeline of alternatives, is testomony to the work the funding crew continues to place into sourcing, securing and dealing with such companies efficiently. VCTs have lengthy offered a compelling alternative for UK traders to offer funding for companies in a tax-efficient approach, and we stay up for Titan persevering with to take action within the coming yr.

On behalf of shareholders and different Board members, I wish to take this chance to thank John for his insightful contributions and dedication to the Board all through his fifteen yr tenure as Chair. I’d additionally wish to thank the Board and the Octopus crew on behalf of all shareholders for his or her laborious work.

Tom Chief
Chair

20 September 2022

  1. The money reserves embrace £10.6 million of money at financial institution, £88.3 million of cash market funds and £104.8 million of company bonds as set out within the stability sheet.

Portfolio Supervisor’s evaluation

Deal with efficiency

The NAV of 91.3p per share at 30 June 2022 represents a lower in NAV of 11.4p per share versus a NAV of 105.7p per share as at 31 December 2021 (when adjusted for dividends paid within the interval). This decline in NAV is disappointing, particularly after such robust efficiency in 2021, nevertheless, the long-term alternative supplied by early-stage enterprise continues to be extraordinarily compelling.

The efficiency over the 5 years to 30 June 2022 is proven under:

  Yr
ended
31
October
2017 
Yr
ended
31
October
2018
Interval1 ended
31
December 2019
Yr
ended
31
December 2020
Yr
ended
31
December 2021
Interval
ended
30
June
2022
NAV, p 96.4 93.1 95.2 97.0 105.7 91.3
Cumulative dividends paid, p 66.0 71.0 76.0 81.0 92.0 95.0
Whole worth, p 162.4 164.1 171.2 178.0 197.7 186.3
Whole return 3.6% 1.8% 7.6% 7.1% 20.3% (10.8)%
Dividend yield 5.1% 5.2% 5.4% 5.3% 11.3% 2.8%
Equal dividend yield for a better fee tax payer 7.6% 7.7% 8.0% 7.8% 16.8% 4.2%
  1. Notice, the interval to December 2019 was 14 months.

The lower in NAV over the six-month interval has largely been pushed by the downward valuation motion of £196 million, throughout 36 corporations within the now 117-strong portfolio. 4 corporations, nevertheless, account for a collective lower in valuation of £124 million. The enterprise that contributed most importantly to this downward motion was Cazoo, which listed on the New York Inventory Trade in August 2021 and whose share worth has declined by virtually 90% because the begin of the yr. That being mentioned, from a buying and selling viewpoint, Cazoo has carried out nicely, delivering revenues of £668 million in 2021 (representing over 300% year-on-year development), and forecasting revenues of virtually £1.5 billion for 2022 (representing virtually 125% year-on-year development). The corporate introduced a Enterprise Realignment Plan in June 2022, which is able to see them prioritise capital effectivity whereas working in the direction of profitability within the UK market by late 2023, with out requiring any additional fairness funding.

Different important destructive valuation actions have been recognised at Chronext and The Plum Information, which have been affected by a tougher fundraising marketplace for corporations with business-to-consumer enterprise fashions. Lastly, ManyPets, Titan’s single largest funding, has seen its worth drop within the interval regardless of very robust underlying efficiency, with this decline being pushed by a softening of the valuation multiples of comparable corporations, which has been mirrored within the holding worth of the corporate.

Conversely, 36 corporations noticed a rise in valuation within the interval, delivering a collective enhance in valuation of £69 million. These valuation will increase mirror companies today techs which have efficiently concluded additional funding rounds, grown revenues or met sure necessary milestones. This additional evidences that, even in occasions of financial decline, there are alternatives obtainable for corporations to thrive, and Titan’s numerous portfolio permits a number of avenues to be explored. We set out on the following web page the fee and valuation of the highest 15 holdings, which account for about 51% of the worth of the portfolio.

The loss on Titan’s money and money equal investments was £11.7 million within the six months to 30 June 2022 (2021: lack of £1.5 million), primarily pushed by honest worth actions within the company bond portfolio. The Board’s goal for these investments is to generate enough returns by means of the cycle to cowl prices, at restricted threat to capital.

Prime 15 investments

 

Firm

Price

Valuation
at 30 June 2022

Funding focus

1 ManyPets £10.0m £130.7m Fintech
2 Permutive £19.0m £55.1m Enterprise-to-business software program
3 Amplience £12.4m £39.8m Enterprise-to-business software program
4 Stop Genius £12.9m £33.3m Well being
5 Large Well being £12.9m £29.4m Well being
6 Token £13.2m £20.0m Fintech
7 vHive £8.0m £19.6m Deep tech
8 Pores and skin + Me £4.0m £19.0m Well being
9 Orbex £4.5m £18.7m Deep tech
10 Ometria £11.5m £18.0m Enterprise-to-business software program
11 Sofar Sounds £11.5m £17.2m Client
12 Zenith Maintain co £9.0m £17.1m Client
13 Elliptic £7.7m £16.8m Fintech
14 Olio £6.0m £16.7m Client
15 Glofox1 £1.8m £16.1m Well being
  1. Glofox has since been disposed as on the date of this report.

Deal with disposals

We’re happy to report that within the interval Titan accomplished two full worthwhile disposals (Digital Shadows and BehavioSec), one partial worthwhile realisation (Amplience) and an further full disposal (Glofox) accomplished after the interval finish in August 2022. In complete, these disposals will return £48 million to Titan in money, shares and/or deferred quantities, with £44 million of this having been obtained already.

There have additionally been two disposals made at a loss (Fluidly bought to OakNorth and Trouva was acquired by Made.com). In combination, these losses generated negligible proceeds in comparison with an funding value of £13 million. Sadly, having been unsuccessful in securing additional funding and having explored and exhausted all obtainable choices, Whirli was positioned into administration. The underperformance of a portfolio firm is all the time disappointing for Octopus and shareholders alike, however it’s a key attribute of a enterprise capital portfolio, and we imagine the profitable disposals will proceed to considerably outweigh the losses over the medium time period.

The next desk exhibits dividends paid and disposal proceeds over the past 5 monetary years and the present interval of 30 June 2022:

  Yr ended
31
October 2017
Yr ended
31
October 2018
Interval1 ended
31 December 2019
Yr ended
31 December 2020
Yr ended
31 December 2021
Interval ended
30
June
2022
Whole
Dividends (£’000) 22,272 24,178 33,187 46,037 101,976 28,945 256,595
Disposal proceeds2 (£’000) 9,362 22,367 26,334 23,915 221,504 32,510 335,992
  1. Notice, the interval to 30 December 2019 was 14 months.
  2. Notice, this desk consists of proceeds obtained within the interval.

Deal with investments

VCT qualifying standing

Shoosmiths LLP offers each the Board and Octopus with recommendation regarding ongoing compliance with HMRC guidelines and rules regarding VCTs and has suggested that Titan continues to be in compliance with the circumstances laid down by HMRC for sustaining approval as a VCT.

As at 30 June 2022, 100% of the portfolio (as measured by HMRC guidelines) was invested in VCT-qualifying investments, considerably above the present VCT-qualifying threshold of 80%.

VCT sundown clause

We proceed to work with MPs, authorities and key stakeholders to both prolong the sundown clause past the present date of April 2025 or to put the scheme on a extra everlasting footing by eradicating the clause. We articulate that it is very important give an early sign earlier than the sundown clause deadline to offer certainty to traders, fund managers and VCT boards given VCT funding is essential to the portfolio corporations the VCTs help and the success of the VCTs themselves.

VCTs are important to the colourful entrepreneurial financial system within the UK and when the federal government final reviewed the scheme in 2017 as a part of the Affected person Capital Overview, they have been clear on how beneficial VCTs are.

Valuations

Under illustrates the break up of valuation methodology (proven as a share of portfolio worth and variety of corporations). ‘Exterior worth’ consists of valuations primarily based on funding rounds that sometimes accomplished within the final 12 months to the interval finish or shortly after the interval finish and exits of corporations the place phrases have been issued with an acquirer. ‘Multiples’ is predominantly used for valuations which are primarily based on a a number of of revenues for portfolio corporations. The place there’s uncertainty across the potential outcomes obtainable to an organization, a chance weighted ‘situation evaluation’ is taken into account.

Valuation methodology – by worth:

  • Exterior worth 56%
  • Multiples 39%
  • State of affairs evaluation 3%
  • Quoted 1%
  • Exit proceeds 1%

Valuation methodology – by variety of corporations:

  • Exterior worth 56%
  • Multiples 27%
  • State of affairs evaluation 10%
  • Quoted 2%
  • Exit proceeds 5%

New and follow-on investments

Titan accomplished follow-on investments into 14 corporations and made 14 new investments. Collectively, these totalled £77.5 million (made up of £22.2 million invested into the present portfolio and £55.3 million into new corporations). The whole worth of the invested portfolio was £922.3 million, as at 30 June 2022.

Deal with outlook

The decline in Titan’s NAV is disappointing, particularly having loved constant development over the past ten years, and significantly robust development over the previous three years. Nevertheless, it’s reflective of recent headwinds and a valuation setting related to the worldwide macro-economic scenario. Titan’s unquoted portfolio corporations are valued in accordance with UK GAAP accounting requirements and the Worldwide Personal Fairness and Enterprise Capital (IPEV) valuation tips. This implies we worth the portfolio at honest worth, which is the worth we count on individuals can be keen to purchase or promote an asset for, assuming that they had all the knowledge obtainable we do; are educated events with no pre-existing relationship; and that the transaction is carried out beneath the conventional course of enterprise. A number of of Titan’s portfolio corporations have been affected by the challenges the financial backdrop has created – with prices rising and shopper confidence and spending declining, and valuations have been reappraised according to all these elements. Nevertheless, as Titan invests in early-stage companies with excessive development potential, historical past has confirmed that a lot of most of these corporations thrive in difficult durations as obstacles to adopting new applied sciences reduce, there’s a larger acceptance of change and expertise availability improves. Though now we have entered what’s extensively believed to be a tougher funding and exit setting, now we have been reassured by the continued fundraising success of our portfolio corporations, in addition to the worthwhile realisations which have taken place thus far in 2022, which we focus on additional on this report.

We proceed to satisfy with, and spend money on, extraordinary companies led by formidable entrepreneurs throughout all our 5 funding themes at completely different levels of their development journey.

To have the ability to help the deployment fee and variety of corporations within the portfolio, the crew has scaled throughout 2022 with 15 new funding professionals becoming a member of the crew and ten further operational employees, that means the Ventures crew now totals 86 everlasting workers. Included on this quantity is our in-house Expertise crew which continues to supply their experience to portfolio corporations searching for help to scale and develop. That is particularly related throughout the turbulent and aggressive market circumstances wherein they’re all working.

The crew is dedicated to backing numerous groups and really believes range is a key driving issue for a enterprise to succeed. As such, now we have just lately printed our intention to ensure 30% of all new founder pitches will probably be by companies led or co-led by a girl by 2025, rising to 50% by 2027. We’re happy that according to this dedication, the Ventures crew at the moment has equal illustration between female and male members of employees. We additionally want to empower our portfolio corporations to raised perceive their environmental impression, particularly round carbon emissions. As such, now we have supplied them complimentary entry to a carbon accounting and administration instrument to allow reporting round key metrics and to feed into carbon discount plans.

The previous six months have been a interval of immense change on a worldwide scale, and Titan has understandably been affected by this. Nevertheless, we’re reassured by the worthwhile realisations which have accomplished this yr, the extraordinary entrepreneurs we proceed to satisfy and spend money on, and the drive and keenness of our crew. We imagine this mix will present Titan with the alternatives it wants for continued success in the future.

Administrators’ tasks assertion

The Administrators verify that to the most effective of their data:

  • the half-yearly monetary statements have been ready in accordance with ‘Monetary Reporting Customary 104: Interim Monetary Reporting’ issued by the Monetary Reporting Council;
  • the half-yearly monetary statements give a real and honest view of the belongings, liabilities, monetary place and revenue or lack of the Firm;
  • the half-yearly report features a honest evaluation of the knowledge required by the Monetary Companies Authority Disclosure and Transparency Guidelines, being:
    • now we have disclosed a sign of the necessary occasions which have occurred throughout the first six months of the monetary yr and their impression on the condensed set of monetary statements;
    • now we have disclosed an outline of the principal dangers and uncertainties for the remaining six months of the yr; and
    • now we have disclosed an outline of associated celebration transactions which have taken place within the first six months of the present monetary yr, which will have materially affected the monetary place or efficiency of the Firm throughout that interval and any modifications within the associated celebration transactions described within the final annual report that would accomplish that.

On behalf of the Board

Tom Chief
Chair

20 September 2022

Revenue assertion

  Unaudited Unaudited Audited
  Six months to 30 June 2022 Six months to 30 June 2021 Yr to 31 December 2021
  Income Capital Whole Income Capital Whole Income Capital Whole
  £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
(Loss)/achieve on disposal of mounted asset investments (472) (472) 34,475 34,475 76,520 76,520
(Loss)/achieve on valuation of mounted asset investments (127,603) (127,603) 251,697 251,697 232,864 232,864
(Loss) on valuation of present asset investments (11,724) (11,724) (57) (57) (1,475) (1,475)
Funding earnings 438 438 504 504 500 500
Funding administration charge (567) (10,772) (11,339) (474) (9,007) (9,481) (1,033) (19,635) (20,668)
Efficiency charge (55,632) (55,632) (63,943) (63,943)
Different bills (3,527) (3,527) (2,991) (2,991) (7,295) (7,295)
International alternate translation 5,985 5,985 65 65 54 54
(Loss)/revenue earlier than tax (3,656) (144,586) (148,242) (2,961) 221,541 218,580 (7,828) 224,385 216,557
Tax
(Loss)/revenue after tax (3,656) (144,586) (148,242) (2,961) 221,541 218,580 (7,828) 224,385 216,557
(Loss)/earnings per share – fundamental and diluted (0.3)p (11.2)p (11.5)p (0.3)p 20.2p 19.9p (0.7)p 20.0p 19.3p
  • The ‘Whole’ column of this assertion is the revenue and loss account of the Firm; the supplementary income return and capital return columns have been ready beneath steerage printed by the Affiliation of Funding Firms.
  • All income and capital gadgets within the above assertion derive from persevering with operations.
  • The Firm has just one class of enterprise and derives its earnings from investments made in shares and securities and from financial institution and cash market funds.

Titan has no different complete earnings for the interval.

The accompanying notes kind an integral a part of the half-yearly report.

Stability sheet

  Unaudited Unaudited Audited
  As at 30 June 2022 As at 30 June 2021 As at 31 December 2021
  £’000 £’000 £’000 £’000 £’000 £’000
Fastened asset investments   922,316   1,024,358   1,005,353
Present belongings:            
Company bonds 104,775   91,385   110,247  
Money at financial institution 10,588   40,822   182,514  
Functions money1 407   363   2,630  
Debtors 55,310   87,129   53,443  
Cash market funds 88,297   88,125   88,126  
    259,377   307,824   436,960
Present liabilities (1,592)   (57,077)   (69,272)  
Web present belongings   257,785   250,747   367,688
Web belongings   1,180,101   1,275,105   1,373,041
Share capital   129,209   111,925   129,850
Share premium   212,313   621,152   201,163
Particular distributable reserve   585,828   100,392   642,873
Capital redemption reserve   11,597   8,015   9,759
Capital reserve realised   (21,711)   (44,689)   (14,122)
Capital reserve unrealised   296,808   509,704   439,790
Income reserve   (33,943)   (31,394)   (36,272)
Whole fairness shareholders’ funds   1,180,101   1,275,105   1,373,041
Web asset worth per share   91.3p   113.9p   105.7p
  1. Money held however not but allotted.

The statements have been accredited by the Administrators and authorised for situation on 20 September 2022 and are signed on their behalf by:

Tom Chief
Chair

today techs

Assertion of modifications in fairness

  Share capital £’000 Share premium £’000 Particular distributable reserve1
£’000
Capital redemption reserve £’000 Capital reserve realised1 £’000 Capital reserve unrealised £’000 Income reserve1 £’000 Whole
£’000
As at 1 January 2022 129,850 201,163 642,873 9,759 (14,122) 439,790 (36,272) 1,373,041
Complete earnings for the interval:                
Administration charges allotted as capital expenditure (10,772) (10,772)
Present yr loss on disposal of mounted asset investments (472) (472)
Loss on honest worth of mounted asset investments (127,603) (127,603)
Loss on honest worth of present asset investments (11,724) (11,724)
Loss after tax (3,656) (3,656)
Efficiency charge
Whole complete earnings for the interval (11,244) (139,327) (3,656) (154,227)
                 
Contributions by and distributions to homeowners:                
Share situation (consists of DRIS) 1,197 11,204 12,401
Share situation prices (54) (54)
Repurchase of personal shares (1,838) (18,345) 1,838 (18,345)
Dividends paid (consists of DRIS) (38,700) (38,700)
Whole contributions by and distributions to homeowners (641) 11,150 (57,045) 1,838 (44,698)
                 
Different actions:                
Prior yr mounted asset good points now realised 3,655 (3,655)
International alternate translation 5,985 5,985
Whole different actions 3,655 (3,655) 5,985 5,985
Stability as at
30 June 2022
129,209 212,313 585,828 11,597 (21,711) 296,808 (33,943) 1,180,101
  1. Reserves obtainable for distribution.
  Share capital £’000 Share premium £’000 Particular distributable reserve1
£’000
Capital redemption reserve £’000 Capital reserve realised1 £’000 Capital reserve unrealised £’000 Income reserve1 £’000 Whole
£’000
As at 1 January 2021 107,502 564,308 150,007 6,377 (66,167) 309,706 (28,498) 1,043,235
Complete earnings for the interval:                
Administration charges allotted as capital expenditure (9,007) (9,007)
Present yr achieve on disposal of mounted asset investments 34,475 34,475
Present yr good points on disposal of present asset today techs investments
Features on honest worth of mounted asset investments 251,697 251,697
Losses on honest worth of present asset investments (57) (57)
Loss after tax (2,961) (2,961)
Efficiency charge (55,632) (55,632)
Whole complete earnings for the interval (30,164) 251,640 (2,961) 218,515
                 
Contributions by and distributions to homeowners:                
Share situation (consists of DRIS) 6,061 56,844 64,612
Share situation prices (1,707) (1,707)
Repurchase of personal shares (1,638) (15,986) 1,638 (15,986)
Dividends paid (consists of DRIS) (33,629) (33,629)
Whole contributions by and distributions to homeowners 4,423 56,844 (49,615) 1,638 13,290
                 
Different actions:                
Prior yr mounted asset good points now realised 51,642 (51,642)
International alternate translation 65 65
Whole different actions 51,642 (51,642) 65 65
Stability as at
30 June 2021
111,925 621,152 100,392 8,015 (44,689) 509,704 (31,394) 1,275,105
  1. Reserves obtainable for distribution.
  Share capital £’000 Share premium £’000 Particular distributable reserve1
£’000
Capital redemption reserve £’000 Capital reserve realised1 £’000 Capital reserve unrealised £’000 Income reserve1 £’000 Whole
£’000
As at 1 January 2021 107,502 564,308 150,007 6,377 (66,167) 309,706 (28,498) 1,043,235
Complete earnings for the yr:                
Administration charges allotted as capital expenditure (19,635) (19,635)
Present yr achieve on disposal of mounted asset investments 76,520 76,520
Achieve on honest worth of mounted asset investments 232,864 232,864
Loss on honest worth of present asset investments (1,475) (1,475)
Loss after tax (7,828) (7,828)
Efficiency charge (63,943) (63,943)
Whole complete earnings for the yr (7,058) 231,389 (7,828) 216,503
          today techs vertical-align: middle; vertical-align: bottom ; “>       
Contributions by and distributions to homeowners:                
Share situation (consists of DRIS) 25,730 264,963 290,693
Share situation prices (6,956) (6,956)
Repurchase of personal shares (3,382) (34,519) 3,382 (34,519)
Dividends paid (consists of DRIS) (93,767) (42,202) (135,969)
Whole contributions by and distributions to homeowners 22,348 258,007 (128,286) 3,382 (42,202) 113,249
                 
Different actions:                
Share premium cancellation (621,152) 621,152
Switch between reserves
Prior yr mounted asset good points now realised 101,305 (101,305)
International alternate translation 54 54
Whole different actions (621,152) 621,152 101,305 (101,305) 54 54
Stability as at
31 December 2021
129,850 201,163 642,873 9,759 (14,122) 439,790 (36,272) 1,373,041
  1. Reserves can be found for distribution.

The accompanying notes kind an integral a part of the monetary statements.

Money movement assertion

  Unaudited Unaudited Audited
  Six months to Six months to Yr to
  30 June 30 June 31 December
  2022 2021 2021
  £’000 £’000 £’000
Reconciliation of revenue to money flows from working actions      
(Loss)/revenue earlier than tax (148,242) 218,580 216,557
Improve in debtors (1,867) (786) (28)
Improve/(lower) in collectors (65,457) 36,672 46,600
Loss on valuation of present asset investments 11,724 57 1,475
Loss/(achieve) on disposal of mounted asset investments 472 (34,475) (76,520)
Loss/(achieve) on valuation of mounted asset investments 127,603 (251,697) (232,864)
Outflow from working actions (75,767) (31,649) (44,780)
Money flows from investing actions      
Buy of present asset investments (6,252) (1,560) (21,840)
Buy of mounted asset investments (77,548) (52,434) (142,831)
Sale of mounted asset investments 32,510 54,782 220,324
(Outflow)/influx from investing actions (51,290) 788 55,653
Money flows from financing actions      
Software inflows allotted (2,223) (3,250) (983)
Buy of personal shares (18,345) (15,986) (34,519)
Web proceeds from share points 2,592 54,365 249,744
Dividends paid (web of DRIS) (28,945) (25,089) (101,976)
(Outflow)/influx from financing actions (46,921) 10,040 112,266
(Lower)/enhance in money and money equivalents (173,978) (20,821) 123,139
Opening money and money equivalents 273,270 150,131 150,131
Closing money and money equivalents 99,292 129,310 273,270
Money and money equivalents comprise      
Money at financial institution 10,588 40,822 182,514
Functions money 407 363 2,630
Cash market funds 88,297 88,125 88,126
  99,292 129,310 273,270

Condensed notes to the half-yearly report

1. Foundation of preparation

The unaudited half-yearly outcomes which cowl the six months to 30 June 2022 have been ready in accordance with the Monetary Reporting Council’s (FRC) Monetary Reporting Customary 104 Interim Monetary Reporting (March 2018) and the Assertion of Beneficial Observe (SORP) for Funding Firms re-issued by the Affiliation of Funding Firms in July 2022.

2. Publication of non-statutory accounts

The unaudited half-yearly outcomes for the six months ended 30 June 2022 don’t represent statutory accounts inside the that means of Part 415 of the Firms Act 2006 and haven’t been delivered to the Registrar of Firms. The comparative figures for the yr ended 31 December 2021 have been extracted from the audited monetary statements for that yr, which have been delivered to the Registrar of Firms. The impartial auditor’s report on these monetary statements, in accordance with chapter 3, half 16 of the Firms Act 2006, was unqualified. This half-yearly report has not been reviewed by the Firm’s auditor.

3. Earnings per share

The (loss)/earnings per share is predicated on 1,293,940,509 Strange shares (30 June 2021: 1,097,460,102 and 31 December 2021: 1,122,053,322), being the weighted common variety of shares in situation throughout the interval. There aren’t any doubtlessly dilutive capital devices in situation and so no diluted returns per share figures are related. The essential and diluted earnings per share are subsequently similar.

4. Web asset worth per share

  30 June 30 June 31 December
  2022 2021 2021
  £’000 £’000 £’000
Web belongings (£) 1,180,101 1,275,105 1,373,041
Shares in situation 1,292,086,596 1,119,250,514 1,298,498,396
Web asset worth per share 91.3p 113.9p 105.7p

5. Dividends

The interim dividend declared of two.0p per share for the six months ending 30 June 2022 will probably be paid on 22 December 2022 to these shareholders on the register as at 9 December 2022.

On 17 Could 2022, a 3.0p second interim dividend referring to the 2021 monetary yr was paid.

6. Buybacks and allotments

Through the six months ended 30 June 2022, the Firm purchased again 18,378,101 Strange shares at a weighted common worth of 99.8p per share (six months ended 30 June 2021: 16,386,650 Strange shares at a weighted common worth of 97.6p per share; yr ended 31 December 2021: 33,816,980 Strange shares at a weighted common worth of 102.1p per share).

Through the six months to 30 June 2022, 11,966,301 shares have been issued at a weighted common worth of 104.6p per share (six months ended 30 June 2021: 60,613,066 shares at a weighted common worth of 109.5p per share; yr ended 31 December 2021: 257,291,278 shares at a weighted common worth of 116.6p per share).

7. Associated celebration transactions

Octopus act because the Portfolio Supervisor of the Firm. Beneath the administration settlement, Octopus obtain a charge of two.0% each year of the web belongings of the Firm for the funding administration companies, however in respect of funds raised by the Firm beneath the 2018 Provide and thereafter (and topic to the Firm having a money reserve of 10% of its NAV), the annual administration cost on uninvested money would be the decrease of both (i) the precise return that the Firm receives on its money and funds which are the equal of money topic to a 0% flooring and (ii) 2%. Through the interval, the Firm incurred administration charges of £11,339,000 payable to Octopus (30 June 2021: £9,481,000; 31 December 2021: £20,668,000), which have been totally settled by 30 June 2022.

Octopus present non-investment companies to the Firm and receives a charge for these companies which is capped on the decrease of (i) 0.3% each year of the Firm’s NAV or (ii) the administration and accounting prices of the Firm for the yr ended 31 December 2020 with inflation will increase according to the Client Worth Index. Through the interval, the Firm incurred non-investment companies charges of £921,600 payable to Octopus (30 June 2021: £845,000; 31 December 2021: £1,723,000), which have been totally settled by 30 June 2022.

As well as, Octopus are entitled to performance-related incentive charges. The motivation charges have been designed to ensure that there have been important tax-free dividend funds made to shareholders in addition to robust efficiency when it comes to capital and earnings development, earlier than any performance-related charge fee was made. There have been no efficiency charges accrued for the six months to 30 June 2022 (30 June 2021: £55.6 million; 31 December 2021: £63.9 million).

Octopus obtained £0.03 million within the six months to 30 June 2022 (six months ended 30 June 2021: £0.06 million; yr ended 31 December 2021: £0.1 million) in regard to association and monitoring charges in relation to investments made by the Firm.

Titan owns Zenith Holding Firm Restricted, which owns a share in Zenith LP, a fund managed by Octopus.

A number of members of the Octopus funding crew maintain non-executive directorships as a part of their monitoring roles in Titan’s portfolio corporations, however they don’t have any controlling pursuits in these corporations.

Mr Cooper, a Non-Government Director of Titan, can be Chair of Octopus Capital Ltd and owns shares in Octopus Capital Ltd, which is the mother or father firm of Octopus Investments Restricted. The administrators obtained the next dividends from Titan:

  Interval to Interval to Yr to
  30 June 30 June 31 December
  2022 2021 2021
Tom Chief (Chair) 692 431 2,148
Matt Cooper 63,103 56,660 207,754
Jane O’Riordan 3,408 2,675 11,347
Lord Rockley 575 1,427
Gaenor Bagley 267 713
John Hustler1 3,542 3,074 11,983
  1. John Hustler stepped down as a Director on 14 June 2022.

8. Voting rights and fairness administration
The next desk exhibits the proportion voting rights held by Titan of every of the highest ten investments held in Titan, on a completely diluted foundation.

  % voting rights
Investments held by Titan
Purchased By Many Restricted (buying and selling as ManyPets) 7.5%
Permutive Inc. 17.8%
Amplience Restricted 21.0%
Digital Therapeutics (buying and selling as Stop Genius) 16.5%
Large Well being Restricted 11.7%
Token.IO Ltd 13.4%
vHive Tech Ltd 19.0%
Mr & Mrs Oliver Ltd (buying and selling as Pores and skin+Me) 17.0%
Orbital Categorical Launch Restricted (buying and selling as Orbex) 10.9%
Ometria Restricted 12.9%

9. Publish stability sheet occasions
The next occasions occurred between the stability sheet date and the signing of this half-yearly report:

  • Six new investments accomplished totalling £14.9 million.
  • Six follow-on investments accomplished totalling £6.7 million.
  • Full disposal of Zappy Restricted (buying and selling as Glofox) in August 2022.
  • A ultimate order to cancel Share Premium amounting to £212.3 million and Capital Redemption Reserve amounting to £11.6 million was granted on 5 July 2022.
  • Following approval on the AGM on 14 June 2022, a ultimate order as granted on 5 July 2022 confirming the discount within the nominal worth of the Firm’s issued share capital from 10p per extraordinary share to 0.1p per extraordinary today techs share.

10. Half-Yearly Report

The unaudited half-yearly report for the six months ended 30 June 2022 will shortly be obtainable to view at octopustitanvct.com.

For additional info please contact:

Rachel Peat  
Octopus Firm Secretarial Companies Restricted
Tel: +44 (0)80 0316 2067

LEI: 213800A67IKGG6PVYW75

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