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30 Nov 2018 12:16
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
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Sponsors and Solicitors Howard Kennedy No 1 London Bridge London SE1 9BG
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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 |
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Registrar SLC Registrars 42-50 Hersham Road Walton-on-Thames Surrey KT12 1RZ
| Custodian Pershing Securities Limited 1 Canada Square London E14 5AL
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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
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| Period ended 31 August 2018 | Period ended 28 February 2018 | ||||
| Note | Revenue | Capital | Total | Revenue | Capital | Total |
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| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
Loss on investments |
| - | (18) | (18) | - | - | - |
Income |
| 3 | - | 3 | - | - | - |
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| 3 | (18) | (15) | - | - | - |
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Investment management fees | 4 | (20) | (59) | (79) | - | - | - |
Other expenses |
| (83) | - | (83) | (8) | - | (8) |
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| (103) | (59) | (162) | (8) | - | (8) |
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Return/(loss) on ordinary activities before taxation |
| (100) | (77) | (177) | (8) | - | (8) |
Tax on return on ordinary activities |
| - | - | - | - | - | - |
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Return/(loss) on ordinary activities after tax attributable to equity shareholders |
| (100) | (77) | (177) | (8) | - | (8) |
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Basic and diluted |
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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 at31 August 2018 | As at28 February 2018 |
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| £'000 | £'000 |
Fixed Assets |
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Investments | 6 | 1,679 | - |
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Current Assets |
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Prepayments |
| 220 | 18 |
Cash |
| 8,045 | - |
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| 8,265 | 18 |
Creditors - amounts falling due within one year |
| (18) | (20) |
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Net Current Assets |
| 8,247 | (2) |
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Net Assets |
| 9,926 | (2) |
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Capital and Reserves |
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Called up share capital |
| 104 | 6 |
Share premium account |
| 10,007 | - |
Capital reserve - realised |
| (59) | - |
Capital reserve - unrealised |
| (18) | - |
Revenue reserve |
| (108) | (8) |
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Equity Shareholders' Funds |
| 9,926 | (2) |
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Net Asset Value per Ordinary Share | 3 | 95.38p | (0.03p) |
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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 |
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Operating activities |
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Loss on ordinary activities after tax | (177) | (8) |
Loss on investments | 21 | - |
Increase in debtors | (209) | - |
(Decrease)/increase in creditors | (2) | 8 |
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Net cash used in operating activities | (367) | - |
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Cash flow from investing activities |
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Purchase of investments | (1,700) | - |
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Net cash used in investing activities | (1,700) | - |
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Cash flow from financing activities |
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Proceeds received from issue of ordinary share capital | 10,331 | - |
Expenses paid for issue of share capital | (219) | - |
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Net cash used from financing activities | 10,112 | - |
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Net increase in cash and cash equivalents | 8,045 | - |
Net cash at start of the period | - | - |
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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 |
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Balance as at 31 August 2017 | 4 | - | - | - | - | 4 |
Shares issued in the period | 2 | - | - | - | - | 2 |
Total recognised losses for the period | - | - | - | - | (8) | (8) |
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Balance as at 28 February 2018 | 6 | - | - | - | (8) | (2) |
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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) |
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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 at31 August 2018 | As at28 February 2018 |
Net assets | 9,926,000 | (2,000) |
Shares in issue | 10,406,560 | 7,500,002 |
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Net asset value per share |
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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 |
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Qualifying Investments |
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Total Qualifying Investments | - | - | - | 0% |
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Non-Qualifying Investments |
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Total Non-Qualifying Investments | - | - | - | 0% |
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Liquidity Management Investments |
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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% |
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Total Liquidity Management Investments | 1,679 | 1,700 | (21)* | 17% |
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Total Investments | 1,679 | 1,700 | (21) | 17% |
Balance of Portfolio | 8,247 | 8,247 | - | 83% |
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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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