Part disposal of holding in Northcoders Group plc
7 January 2022
Vela Technologies plc
("Vela" or "the Company")
Part disposal of holding in Northcoders Group plc
The Board of Vela (AIM: VELA), an AIM quoted investing company focused on early stage and pre-IPO disruptive technology investments, announces the disposal of part of Vela's holding in Northcoders Group plc ("Northcoders"). On 5 January 2022 the Company sold 25,000 shares at a price of £2.40 per share and on 6 January 2022 sold 50,000 shares at a price of £2.45 per share, generating aggregate gross proceeds of £182,500 for the Company ("the Disposal").
The Company originally invested £750,000 in Northcoders' IPO funding round in July 2021 via subscription for 416,666 ordinary shares at a price of £1.80 per share. The Disposal reflects a net profit (after costs) of £46,398.
Following the Disposal, Vela holds 341,666 shares in Northcoders, representing 4.9 per cent. of Northcoders' share capital. The proceeds of the Disposal will be used by the Company to make further investments in line with the Company's investing policy.
Northcoders, headquartered in Manchester, is an independent provider of training programmes for software coding. It offers a range of training and software development solutions to individual and corporate customers. Northcoders' offering includes 'bootcamp' training courses, government funded apprenticeships, bespoke training courses and software development solutions. Northcoders' proprietary IP in its platform allows Northcoders to streamline and automate elements of the delivery of its courses.
For the six month period ended 30 June 2021, Northcoders generated a profit before taxation of £0.018 million (12 months ending 31 December 2020: loss before taxation of £1.245 million). Northcoders' net liabilities as at 30 June 2021 were £0.51 million.
James Normand, Executive Director of Vela, commented:
"The increase in Northcoders' share price has borne out Vela's assessment of Northcoders at the time of its investment in July. The investment has increased in value by more than 40% in less than six months. Vela has taken advantage of unsolicited approaches in order to lock in part of this gain. It remains, however, a supportive and committed investor in Northcoders; and is confident that, as appreciation of Northcoders' business model broadens within the investment community, Vela's residual holding (an equity interest which remains at nearly 5%) will continue to form a profitable part of Vela's investment portfolio.
It is a key part of Vela's investment strategy to crystallise capital gains whenever appropriate; and so the Board is always alert to the opportunity to take advantage of such opportunities."
For further information, please contact:
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Vela Technologies plc Brent Fitzpatrick, Non-Executive Chairman James Normand, Executive Director
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Tel: +44 (0) 7421 728875 |
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Allenby Capital Limited (Nominated Adviser and Joint Broker) |
Tel: +44 (0) 20 3328 5656 |
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Nick Athanas/Piers Shimwell
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Peterhouse Capital Limited (Joint Broker) |
Tel: +44 (0) 20 7469 0930 |
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Lucy Williams / Duncan Vasey / Eran Zucker
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About Vela Technologies
Vela Technologies plc (AIM: VELA) is an investing company focused on early stage and pre-IPO long term disruptive technology investments. Vela's investee companies have either developed ways of utilising technology or are developing technology with a view to disrupting the businesses or sector in which they operate. Vela Technologies will also invest in already-listed companies where valuations offer additional opportunities.
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