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5 Mar 2019 07:00
Augmentum Fintech Plc - Company Update and Capital Markets DayAugmentum Fintech Plc - Company Update and Capital Markets Day
PR Newswire
London, March 5
5 March 2019
Augmentum Fintech plc
Company Update and Capital Markets Day
Augmentum Fintech plc (LSE: AUGM) (“Augmentum” or the “Company”), the UK’s only publicly listed fintech venture capital fund, today announces an update on its progress, ahead of its Capital Markets Day being held today:
The portfolio now comprises investments in fifteen fintech companies, including nine made since the Company’s IPO. Since the IPO, more than 500 opportunities with a combined value of over £1 billion have been reviewed, and 90% of the deals where the Company has offered term sheets have been secured. Having deployed £32.4m since the IPO, and with £15 million earmarked for follow-on investments into the existing portfolio, the Company has now substantially fully committed the net cash proceeds of the IPO. The Company has a pipeline of investment opportunities in excess of £300 million across all target sectors and geographies, and intends to continue to grow its portfolio.Portfolio
The portfolio has continued to perform well. Key milestones since the Interim Results include Tide (in partnership with Clearbank) being awarded £60 million from the Banking Competition Remedies process in February 2019; Zopa being granted its banking licence (with restrictions) in December 2018; and interactive investor agreeing to acquire Alliance Trust Savings (subject to regulatory approval) in October 2018 which brings together the two largest fixed price retail investment platforms.
Since the Interim Results on 26 November 2018 the Company has invested a further £17.4 million into new and exciting portfolio companies. Additions to the portfolio include: iwoca (the challenger SME lender (£7.5 million)); Farewill (the all-in-one financial and legal services platform for dealing with death (£4.0 million)); Onfido (a leading global provider of online identity verification (£4.0 million)); and, an additional £1.0 million into Tide.
| Portfolio as at 30 September 2018 | ||
| Fair value of holding at 30 September 2018 £m | % of portfolio | |
| Zopa | 22.0 | 30.8 |
| BullionVault | 8.4 | 11.8 |
| Monese | 5.9 | 8.3 |
| Interactive Investor | 4.7 | 6.6 |
| Tide | 3.0 | 4.2 |
| Unmortgage | 2.5 | 3.5 |
| Previse | 2.0 | 2.8 |
| Duedil | 2.0 | 2.8 |
| Seedrs | 1.9 | 2.7 |
| SRL Global | 1.5 | 2.1 |
| 30 September 2018 Total | 53.9 | 75.6 |
| Portfolio additions since 30 September 2018 | ||
| Cost £m | % of portfolio | |
| iwoca | 7.5 | 10.5 |
| Farewill | 4.0 | 5.6 |
| Onfido | 4.0 | 5.6 |
| Tide | 1.0 | 1.4 |
| Other | 0.9 | 1.3 |
| Total Additions | 17.4 | 24.4 |
| Total Portfolio | 71.3 | 100.0 |
Deployment
Based on fair values of investments at 30 September 2018 and the cost of additional investments since that date, the portfolio stands at £71.3 million. At the 30 September 2018 NAV this makes the Company 73% invested. There is clear visibility on several follow-on opportunities within the existing portfolio, which we estimate will total in the region of £15 million. As a consequence, the Company has now substantially fully committed the net cash proceeds from the IPO.
Pipeline
The pipeline currently has approximately £300 million of opportunities across all target sectors and geographies, which continues to grow. There is clear demand for patient capital with sector focus and expertise in the fintech market, and the Company expects to issue further ordinary shares in due course in order to continue the growth in its portfolio.
Capital Markets Day
The Company is today hosting a capital markets day for investors and analysts in the City of London, and John Glen MP, the Economic Secretary to the Treasury and City Minister, will be speaking at the opening of the event.
No material new information will be provided at the event.
Commenting, Tim Levene, CEO of Augmentum Fintech, said: “We set out to establish Augmentum Fintech plc as one of Europe’s preeminent investors in the fintech space. In less than a year we believe that we have achieved that. We have now substantially fully committed the initial proceeds from the IPO, across a portfolio that represents the very best in European fintech.
“Augmentum remains the only UK listed fund that exclusively invests in the fintech sector, and as a closed-end fund we are able to provide patient capital. This means that we can commit to support fintech companies at a crucial stage in their early development.
“The wider UK capital markets’ lack of exposure to fintech venture capital remains a challenge for the sector’s ecosystem. Augmentum has created a structure that gives investors a more straightforward opportunity to access this emerging asset class through investment in a public company.”
Ends
For further information, please contact:
Augmentum +44 (0)7802 362088Nigel Szembel nigel@augmentum.vc
Fidante Capital +44 (0)20 7832 0900Tom SkinnerNick Donovan
Peel Hunt +44 (0)20 7418 8900Luke SimpsonLiz Yong
Notes
About Augmentum Fintech plc:
Augmentum Fintech plc is one of Europe’s leading venture capital investors focusing exclusively on the fintech sector. Augmentum invests in fast growing fintech businesses that are disrupting the banking, insurance, asset management and wider financial services sectors. Augmentum is the only listed fintech-focused venture capital firm in the UK, having launched on the main market of the London Stock Exchange in 2018, giving businesses access to patient capital and support, unrestricted by conventional fund timelines.
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