Last checked at 3 May 2022 07:00
3 May 2022
Vela Technologies PLC
("Vela" or "the Company")
Quarterly Investment Update and Change of Broker
The Board of Vela (AIM:VELA), an AIM-quoted investing company focused on early-stage and pre-IPO disruptive technology investments, announces its quarterly update for the quarter ended 31 March 2022.
Investments traded on a recognised stock market are valued using the accounting policies outlined in the notes to the annual financial statements. Unlisted investments and other financial assets are stated at the values attributed to them in the audited balance sheet as at 31 March 2021, unless there has been a transaction since that date which suggests a materially different valuation.
Key numbers as at 31 March 2022*:
· Vela's portfolio comprised a total of 12 active investments (31 December 2021 - 10). Two of these investments were unquoted, eight were quoted, one was held by way of an unsecured convertible loan note and the final investment is an interest in future royalties from the Covid-19 remedy being developed by St George Street Capital Limited ('SGSC') (which is held in the balance sheet as a financial asset).
· The fair value of the investment portfolio was £5,616,000 (31 December 2021 - £4,925,000).
· The change in the value of the investment portfolio reflects investments during the quarter of £1,180,000, disposals of £183,000 and a reduction in its fair value of £307,000.
· Vela had cash balances totalling £949,000 (31 December 2021 - £2,195,000).
\* The financial information contained within this quarterly investment update as at 31 March 2022 is taken from unaudited management information.
Key developments in the quarter:
· In January Vela made an investment of £750,000 in EnSilica Limited via an unsecured convertible loan note (see announcement dated 17 January 2022) in anticipation of an IPO for EnSilica in the first half of 2022.
· Also in January, Vela crystallised a gain on approximately 20% of its shareholding in Northcoders Group plc, showing at that point a return of 40% in the six month period of Vela's ownership. The market price of Northcoders' shares continues to perform well and, at the date of this announcement, is showing a c60% increase on Vela's purchase price.
· In March 2022 the board noted an update from SGSC in relation to the drug trial for the AZD1656 Covid-19 drug resulting in active engagement with commercial partners (see announcement dated 7 March 2022).
· In March 2022 Vela acquired a 28.8% interest in Igraine PLC for £430,705 for cash consideration at a price of 1.8p per Igraine share (see announcement dated 30 March 2022).
Key developments in investee companies:
· In January Cornerstone FS PLC reported an annual growth in revenue of 38% (subject to audit) for the year ended 31 December 2021.
· In February 2022 Skillcast Group Plc announced a positive trading update for the year ended 31 December 2021. The Skillcast board expects turnover (subject to audit) to be no less than £8.3m (2020: £7.3m), the revenue growth being underpinned by strong growth of 29% in recurring subscription revenue alongside a stable performance from professional services.
· In March 2022 Mode Global Holdings plc announced changes to its board. Rita Lui was appointed as CEO. She will be responsible for driving Mode forward, focussing on its long-term vision to become a disruptor that bridges fintech and crypto. Jonathon Conway, its existing Chief Technology Officer, was appointed to the executive board.
Developments since 31 March 2022:
· In April 2022, in order to improve and supplement shareholder communications, Novus Communications Limited was appointed as Vela's PR and IR adviser.
· In April 2022 Cornerstone FS PLC reported its highest ever quarterly revenue for Q1.
· In April 2022 Northcoders Group plc published strong maiden results for the year ended 31 December 2021 with revenue increasing by 124% to £3.0m (FY 2020: £1.2m).
INVESTMENTS
As at 31 March 2022 the Company's portfolio of investments was valued at £5,616,000 and comprised equity or loan interests in the following 12 companies:
· WeShop Limited
· Cornerstone FS PLC
· Aeristech Limited
· EnSilica Limited
· Igraine PLC
· Kanabo Group Plc
· MTI Wireless Edge Limited
· Mode Global Holdings plc
· Rural Broadband Solutions PLC
· Northcoders Group plc
· Skillcast Group plc
· St George Street Capital Limited
Since the last quarterly update the board of Vela has met with the boards of the following investee companies:
· Aeristech Limited
· EnSilica Limited
· Igraine PLC
· MTI Wireless Edge Limited
· Northcoders Group plc
The Company also holds a legacy investment in an unquoted company, being Disruptive Tech Limited, which was written down to zero some years ago and which continues to be ascribed no value.
Change of broker
The Company also announces that Peterhouse Capital Limited is now the Company's sole broker (having previously been the Company's joint broker) with immediate effect. Allenby Capital Limited remains nominated adviser to the Company.
For further information, please contact:
Vela Technologies plc Brent Fitzpatrick, Non-Executive Chairman James Normand, Executive Director
| Tel: +44 (0) 7421 728875 |
Allenby Capital Limited (Nominated Adviser) | Tel: +44 (0) 20 3328 5656 |
Nick Athanas / Piers Shimwell
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Peterhouse Capital Limited (Broker) | Tel: +44 (0) 20 7469 0930 |
Lucy Williams / Duncan Vasey / Eran Zucker
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Novus Communications (PR and IR Adviser) | Tel: +44 (0) 20 7448 9839 |
Alan Green / Jacqueline Briscoe
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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.