Puma VCT 13 PLC

Half-year Report

RNS Number : 0848J
Puma VCT 13 PLC
30 November 2018
 
 
Puma VCT 13 plc

Interim Report

 

For the period ended 31 August 2018

 

 

 

Officers and Professional Advisers

 

 

Directors

Auditor

David Buchler (Chairman)

Stephen Hazell-Smith

Graham Shore

 

RSM UK Audit LLP

Chartered Accountants

25 Farringdon Street

London EC4A 4AB

Secretary

Eliot Kaye

 

Registered Number

10376236

 

 

Sponsors and Solicitors

Howard Kennedy

No 1 London Bridge

London SE1 9BG

 

Registered Office

Bond Street House

14 Clifford Street

London W1S 4JU

 

Investment Manager

Puma Investment Management Limited

Bond Street House

14 Clifford Street

London W1S 4

 

Administrator

PI Administration Services Limited

Bond Street House

14 Clifford Street

London W1S 4JU

 

Bankers

Metro Bank plc

One Southampton Row

London

WC1B 5HA

 

The Royal Bank of Scotland plc

London City Office

PO Box 412

62-63 Threadneedle Street

London

EC2R 8LA

 

VCT Tax Advisor

PricewaterhouseCoopers LLP

1 Embankment Place

London WC2N 6RH

 

 

Registrar

SLC Registrars

42-50 Hersham Road

Walton-on-Thames

Surrey

KT12 1RZ

 

Custodian

Pershing Securities Limited

1 Canada Square

London

E14 5AL

 

 

 

 

 

 

 

 

Chairman's Statement

 

Highlights 

 

·    Fund raising of just over £12m completed to date

·    Fund recently opened for new investment and is the only limited-life VCT currently open on the market - just £3m of investment capacity remaining

·    Several qualifying investment opportunities in various stages of analysis and execution

 

Introduction

 

I am pleased to present the first interim report for Puma VCT 13 plc (the "Company") for the period to 31 August 2018. The Board welcomes its new shareholders and thanks them for their investment.

 

The Company successfully completed its first fund raising of £10.4m through the issuance of ordinary share capital and was admitted for listing on the Premium Market of the London Stock Exchange on 2 July 2018. The Board are pleased to advise that a follow-on offer for subscription of up to £5 million was launched during the period.  Over £2.5 million has already been raised, of which £1.9 million has been allotted as shares in October 2018.

 

The Investment Manager, Puma Investments, now has just under £100 million of VCT money under management in this and other Puma VCTs and a well-established, experienced VCT team to manage the Company's deal flow.

 

Results and Net Asset Value ('NAV')

 

The NAV per share at the period end was 95.38p. This initial NAV per share primarily reflects the initial funds raised less the costs of flotation.  

 

Investments

 

The Investment Manager is in legal process with a number of qualifying opportunities as discussed further in the Outlook section below. 

 

To manage the Company's liquidity, £1.7 million was invested in a diverse portfolio of listed equities during the period which broadly held their value up to the end of the period despite market turbulence.  Since then further investments in listed equities have been made and the last published NAV per share for the company, as at 31 October 2018, was 92.39p.

 

 

 

VCT Qualifying Status

 

PricewaterhouseCoopers LLP ("PwC") provides the Board and the Investment Manager with advice on the ongoing compliance with HMRC rules and regulations concerning VCTs and has reported no issues in this regard for the Company to date.  PwC also assists the Investment Manager in establishing the status of investments as qualifying holdings and will continue to assist the Investment Manager in monitoring rule compliance.

 

Principal Risks and Uncertainties

 

Although the economy in the UK continues to improve, it remains fragile, especially in light of the ongoing Brexit negotiations.  The consequences of this for the Company's investment portfolio constitute the principal risk and uncertainty for the Company in the second half of the year.

 

Outlook

 

The Investment Manager has a strong pipeline of companies which are suitable for investment. There are many suitable companies which are well-managed, in good market positions and which need our finance. We therefore believe the Company is well positioned to assemble a portfolio to deliver attractive returns to shareholders in the medium to long term.

 

 

 

David Buchler

Chairman

30 November 2018

 

 

Income Statement (unaudited)

For the period ended 31 August 2018

 

 

 

Period ended
 31 August 2018

Period ended
 28 February 2018

 

Note

Revenue

Capital

Total

Revenue

Capital

Total

 

 

£'000

£'000

£'000

£'000

£'000

£'000

Loss on investments

 

-

(18)

(18)

-

-

-

Income

 

3

-

3

-

-

-

 

 

 

 

 

 

 

 

 

 

3

(18)

(15)

-

-

-

 

 

 

 

 

 

 

 

Investment management fees

4

(20)

(59)

(79)

-

-

-

Other expenses

 

(83)

-

(83)

(8)

-

(8)

 

 

 

 

 

 

 

 

 

 

(103)

(59)

(162)

(8)

-

(8)

 

 

 

 

 

 

 

 

Return/(loss) on ordinary activities before taxation

 

(100)

(77)

(177)

(8)

-

(8)

Tax on return on ordinary activities

 

-

-

-

-

-

-

 

 

 

 

 

 

 

 

Return/(loss) on ordinary activities after tax attributable to equity shareholders

 

(100)

(77)

(177)

(8)

-

(8)

 

 

 

 

 

 

 

 

Basic and diluted

 

 

 

 

 

 

 

Return/(loss) per  Ordinary Share (pence)

2

(1.10p)

(0.84p)

(1.94p)

(0.10p)

-

(0.10p)

 

 

 

The total column of this statement is the profit and loss of the Company.  All revenue and capital items in the above statement derive from continuing operations.  No operations were acquired or discontinued in the period.

 

Balance Sheet (unaudited)

As at 31 August 2018

               

 

Note

As at
31 August 2018

As at
28 February 2018

 

 

£'000

£'000

Fixed Assets

 

 

 

Investments

6

1,679

-

 

 

 

 

Current Assets

 

 

 

Prepayments

 

220

18

Cash

 

8,045

-

 

 

8,265

18

Creditors - amounts falling due within one year

 

(18)

(20)

 

 

 

 

Net Current Assets

 

8,247

(2)

 

 

 

 

 

 

 

 

Net Assets

 

9,926

(2)

 

 

 

 

Capital and Reserves

 

 

 

Called up share capital

 

104

6

Share premium account

 

10,007

-

Capital reserve - realised

 

(59)

-

Capital reserve - unrealised

 

(18)

-

Revenue reserve

 

(108)

(8)

 

 

 

 

Equity Shareholders' Funds

 

9,926

(2)

 

 

 

 

 

 

 

 

Net Asset Value per Ordinary Share

3

95.38p

(0.03p)

 

 

 

 

Diluted Net Asset Value per Ordinary Share

3

95.38p

(0.03p)

 

Cash Flow Statement (unaudited)

For the period ended 31 August 2018

 

 

Period ended
 31 August 2018

Period ended
 28 February 2018

 

£'000

£'000

 

 

 

Operating activities

 

 

Loss on ordinary activities after tax

(177)

(8)

Loss on investments

21

-

Increase in debtors

(209)

-

(Decrease)/increase in creditors

(2)

8

 

 

 

Net cash used in operating activities

(367)

-

 

 

 

Cash flow from investing activities

 

 

Purchase of investments

(1,700)

-

 

 

 

Net cash used in investing activities

(1,700)

-

 

 

 

Cash flow from financing activities

 

 

Proceeds received from issue of ordinary share capital

10,331

-

Expenses paid for issue of share capital

(219)

-

 

 

 

Net cash used from financing activities

10,112

-

 

 

 

Net increase in cash and cash equivalents

8,045

-

Net cash at start of the period

-

-

 

 

 

Cash and cash equivalents at the period end

8,045

-

 

 

 

 

 

 

 

Reconciliation of Movements in Shareholders' Funds (unaudited)

For the period ended 31 August 2018

 

 

 

Called up share capital

Share premium account

Capital reserve - realised

Capital reserve - unrealised

Revenue reserve

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

Balance as at 31 August 2017

4

-

-

-

-

4

Shares issued in the period

2

-

-

-

-

2

Total recognised losses for the period

-

-

-

-

(8)

(8)

 

 

 

 

 

 

 

Balance as at 28 February 2018

6

-

-

-

(8)

(2)

 

 

 

 

 

 

 

Shares cancelled in the period

(6)

-

-

-

-

(6)

Shares issued in the period

104

10,227

-

-

-

10,331

Expense of share issue

-

(220)

-

-

-

(220)

Total recognised (losses) for the period

-

-

(59)

(18)

(100)

(177)

 

 

 

 

 

 

 

Balance as at 31 August 2018

104

10,007

(59)

(18)

(108)

9,926

 

 

Notes to the Interim Report

For the period ended 31 August 2018

 

1.             Accounting Policies

 

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of fixed asset investments, and in accordance with applicable Accounting Standards and with the Statement of Recommended Practice, "Financial Statements of Investment Trust Companies and Venture Capital Trusts" ("SORP") and in accordance with the Financial Reporting Standard 102 ("FRS102").

 

2.             Return per Ordinary Share

 

The total loss per share of 1.94p is based on the loss for the period of £177,000 and the weighted average number of shares in issue as at 31 August 2018 of 9,105,088 calculated from the date of the first receipt of proceeds from the issue of ordinary share capital.

 

3.             Net asset value per share

 

 

As at
31 August 2018

As at
28 February 2018

Net assets

9,926,000

(2,000)

Shares in issue

10,406,560

7,500,002

 

 

 

Net asset value per share

 

 

Basic

95.38p

(0.03p)

Diluted

95.38p

(0.03p)

 

 

4.             Management fees

 

The Company pays the Investment Manager an annual management fee of 2% of the Company's net assets.  The fee is payable quarterly in arrears.  The annual management fee is allocated 75% to capital and 25% to revenue.

 

 

5.             Financial information provided

 

The financial information for the period ended 31 August 2018 has not been audited and does not comprise full financial statements within the meaning of Section 423 of the Companies Act 2006. The interim financial statements have been prepared on the same basis as will be used to prepare the annual financial statements.

 

 

Notes to the Interim Report continued

For the period ended 31 August 2018

 

 

6.             Investment portfolio summary

               

 

Valuation

Cost

Gain/(loss)

Valuation as a % of Net Assets

As at 31 August 2018

£'000

£'000

£'000

 

 

 

 

 

 

Qualifying Investments

 

 

 

 

Total Qualifying Investments

-

-

-

0%

 

 

 

 

 

Non-Qualifying Investments

 

 

 

 

Total Non-Qualifying Investments

-

-

-

0%

 

 

 

 

 

Liquidity Management Investments

 

 

 

 

Barclays plc

94

97

(3)

1%

British Land Company plc

98

98

0

1%

Chemring Group plc

98

99

(1)

1%

Diageo plc

98

99

(1)

1%

Discoverie Group plc

98

98

(0)

1%

Dixons Carphone plc

96

99

(3)

1%

Firstgroup plc

95

97

(2)

1%

GVC Holdings plc

99

100

(1)

1%

Headlam Group plc

97

98

(1)

1%

ITE Group plc

100

99

1

1%

McColl's Retail Group plc

105

104

1

1%

Norcros plc

97

98

(1)

1%

Prudential plc

97

98

(1)

1%

PZ Cussons plc

98

98

(0)

1%

Revolution Bars Group plc

113

120

(7)

1%

Sports Direct International plc

98

99

(1)

1%

Volution Group plc

98

98

(0)

1%

 

 

 

 

 

Total Liquidity Management Investments

1,679

1,700

(21)*

17%

 

 

 

 

 

Total  Investments

1,679

1,700

(21)

17%

Balance of Portfolio

8,247

8,247

-

83%

 

 

 

 

 

Net Assets

9,926

9,947

(21)

100%

 

 

 * Transaction costs on listed equities have been capitalised and form part of the gain/loss on investment, however they have been analysed as "other expenses" in the Income Statement.

 

 

 

Copies of this Interim Statement will be made available on the website: http://www.pumainvestments.co.uk/pages/view/investors-information-vcts


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