Risk warning: The value of investments and derived income can fall. Investors may get back less than they invested.

Portfolio Company Update re: Getvisibility

RNS Number : 1870X | Sure Ventures PLC | 22 July 2024

Sure Ventures PLC-Portfolio Company Update

Getvisibility: Generative AI launch and integration with Open AI

Getvisibility is an AI data visibility and security company and is part of the Sure Valley Ventures portfolio (Sure Valley Ventures Fund 1 ICAV) and as a reminder to investors, Sure Ventures PLC owns 25.9% of the fund, as part of its portfolio.

As previously announced, Getvisibility has developed an AI-powered platform for data discovery, classification, security and governance. The technology is underpinned by Artificial Intelligence models (AI) and the strength of the technology forged a partnership with Forcepoint back in 2022, to launch a joint product powered by the Getvisibility platform.

Forcepoint is a global leading American multinational software company, headquartered in Austin Texas, that develops security software & data protection, cloud access securityfirewall and cross-domain solutions. Forcepoint has revenues in excess of US $680m , has 2,000 plus employees and is owned by Francisco Partners (US $41.9bn AUM).

On the 18th of July 2024 Forcepoint announced a new GenAI Security Solution and a collaboration with OpenAI, using Getvisibility’s cutting-edge AI technology. The new launch is set to transform the data security landscape by providing end-to-end visibility into how and where sensitive data is being used. The technology will integrate with some of the top Large Language Model (LLM) providers and puts Getvisibility and its partners in a unique position in the market to help organisations gain control of their GenAI security.

AI’s widespread use and data demands, coupled with cyber threats like ransomware, make privacy and regulatory compliance increasingly complex. This newly launched solution empowers businesses and government agencies to securely leverage GenAI innovations, accelerating their AI transformation while maintaining stringent data security and compliance standards.

 

Forcepoint has also been announced as one of the first security vendors to integrate with OpenAI’s ChatGPT Enterprise Compliance API. Available today, Forcepoint DSPM, which is powered by Getvisibility, uses this API to give businesses unparalleled visibility into how ChatGPT Enterprise is being used throughout their organisation.  This compliance integration with OpenAI is a significant achievement, as it demonstrates Forcepoint and Getvisibility’s capabilities in the AI security space.

Getvisibility has experienced significant traction in the last six months, reaching the milestone of 250 customers across 39 countries with multi-million ARR. They recently launched their GenAI readiness suite which allows organisations to test and contextualise and protect their data before they share it with large language models. Working with some of the top LLM provides to integrate into their platforms puts Getvisibility in a unique position in the market to help organisations gain control of their GenAI security. Sure Valley Ventures initially invested in Getvisibility in March 2020.

 

Gareth Burchell-Director quote:

“This is significant news, and I would like to congratulate the Getvisibility team for the progress made in the fast growing and exciting space of AI cyber security. Partnering with Forcepoint, which is a multibillion-dollar company and now the integration with OpenAI, who are an US $80bn company, is testament to the sophistication of the technology they have developed”.

For further information, please visit www.sureventuresplc.com or contact:

Gareth Burchell

Sure Ventures plc

+44 (0) 20 7186 9918

Infinite Reality agrees to acquire Landvault, Sure Valley Ventures Fund 1 (ICAV) Company for $450,000,000

RNS Number : 7663V |Sure Ventures PLC | 10 July 2024

Sure Ventures PLC is pleased to announce that Infinite Reality (“iR”) has agreed to acquire Landvault for US$450 million in an all-share transaction.  Landvault is a portfolio company of the Sure Valley Ventures Fund (“SVV1”).

SVV1 has a 7% shareholding in Landvault and Sure Ventures PLC owns 25.9% of Sure Valley Ventures (“SVV1”). The purchase consideration for Landvault would comprise new shares in iR and it is expected that this company will be seeking a listing on Nasdaq in Q3 2024 through a combination with its SPAC partner, Newbury Street Acquisition Corp.

Based on the figures set out above, this disposal has the potential to generate proceeds for Sure Ventures PLC of circa $ 8.3 million depending on the value of iR shares, a circa 470% uplift on SVV1’s  carrying value of Landvault as at end of March 2024.

Furthermore, iR has also today announced a US$350 million minority investment from a private multi-family office focused on global technology, media, and real estate, increasing iR’s valuation to $5.1 billion. Further details will become available once iR publishes details of its proposed listing on Nasdaq, although there can be no guarantee that a listing of iR will ultimately take place.

iR is an innovation company powering the next generation of digital media and ecommerce through AI and immersive technologies. iR’s virtual worlds enable brands and creators to fully control how they distribute content, engage audiences, and monetize their creations while maintaining ownership of their data. With deep expertise in Hollywood production and extended reality (“XR”), iR is redefining the infinite possibilities of connected digital environments in the modern age. iR’s portfolio of brands includes the Drone Racing League, XR production facility Thunder Studios, creator talent management firm TalentX, and digital marketing agency Fearless Media.

The company is backed by a number of investors including RSE Ventures, Liberty Media, Lux Capital, Lerer Hippeau, MGM, CAA, T-Mobile Ventures, Courtside VC, Exor, Terracap, IAC, Live Nation, DJ and producer Steve Aoki, rock band Imagine Dragons, NBA player Rudy Gobert, Interscope Records, and more. For more information, go to theinfinitereality.com.

This represents a significant uplift in value within SVV1 fund and will have a significant impact on our NAV for this quarter, which will be announced towards the end of July. The SVV1 portfolio has maturing companies that are now at the stage of looking for realisation and this highlights the talent of the team, the value being created and the potential uplift available to shareholders.

Gareth Burchell-Sure Ventures PLC

“This is a major development for the Landvault leadership team, the Sure Valley Ventures Investment team and Sure Ventures PLC shareholders and board. This type of news illustrates the significant value creation at play from one portfolio company, the Sure Valley team have created a diverse portfolio, with numerous other potential exits of this magnitude”.

For further information, please visit www.sureventuresplc.com or contact:

Gareth Burchell

Sure Ventures plc

+44 (0) 20 7186 9918

TR-1: Standard form for notification of major holdings

RNS Number : 1673S | Sure Ventures PLC | 12 July 2022

TR-1: Standard form for notification of major holdings

NOTIFICATION OF MAJOR HOLDINGS (to be sent to the relevant issuer and to the FCA in Microsoft Word format if possible) i

1a. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached ii: Sure Ventures plc
1b. Please indicate if the issuer is a non-UK issuer (please mark with an “X” if appropriate)
Non-UK issuer  
2. Reason for the notification (please mark the appropriate box or boxes with an “X”)
An acquisition or disposal of voting rights  
   
  X
   
3. Details of person subject to the notification obligation iv
Name Pires Investments plc
City and country of registered office (if applicable) UK
4. Full name of shareholder(s) (if different from 3.) v
Name  
City and country of registered office (if applicable)  
5. Date on which the threshold was crossed or reached vi: 10/06/2022
6. Date on which issuer notified (DD/MM/YYYY): 12/07/2022
7. Total positions of person(s) subject to the notification obligation
  % of voting rights attached to shares (total of 8. A) % of voting rights through financial instruments(total of 8.B 1 + 8.B 2) Total of both in % (8.A + 8.B) Total number of voting rights held in issuer (8.A + 8.B) vii
Resulting situation on the date on which threshold was crossed or reached 23.3% Nil 23.3% 1,501,000
Position of previous notification (if applicable) 28.0% Nil 28.0%  
8. Notified details of the resulting situation on the date on which the threshold was crossed or reached viii
A: Voting rights attached to shares
Class/type ofsharesISIN code (if possible) Number of voting rights ix % of voting rights
Direct(DTR5.1) Indirect (DTR5.2.1) Direct(DTR5.1) Indirect(DTR5.2.1)
GB00BYWYZ460 1,501,000 Nil 23.3% Nil
         
         
SUBTOTAL 8. A 1,501,000 23.3%
 
B 1: Financial Instruments according to DTR5.3.1R (1) (a)
Type of financial instrument Expirationdate x Exercise/Conversion Period xi Number of voting rights that may be acquired if the instrument is exercised/converted. % of voting rights
         
         
         
    SUBTOTAL 8. B 1    
B 2: Financial Instruments with similar economic effect according to DTR5.3.1R (1) (b)
Type of financial instrument Expirationdate x Exercise/Conversion Period xi Physical or cash Settlement xii Number of voting rights % of voting rights
           
           
           
      SUBTOTAL 8.B.2    
9. Information in relation to the person subject to the notification obligation (please mark the applicable box with an “X”)
Person subject to the notification obligation is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuer xiii X
Full chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held starting with the ultimate controlling natural person or legal entity (please add additional rows as necessary) xiv  
Name xv % of voting rights if it equals or is higher than the notifiable threshold % of voting rights through financial instruments if it equals or is higher than the notifiable threshold Total of both if it equals or is higher than the notifiable threshold
       
       
       
       
       
10. In case of proxy voting, please identify:
Name of the proxy holder  
The number and % of voting rights held  
The date until which the voting rights will be held  
11. Additional information xvi
 
Place of completion UK
Date of completion 18 July, 2022

Issue of Equity & Change of Address

RNS Number : 5423N | Sure Ventures PLC | 01 June 2022

Issue of Equity & Change of Address

Sure Ventures plc (“the Company”) is pleased to announce that it has raised gross proceeds of £ 475,000 by way of a private placing.  The Ordinary Shares have been issued at 107.5p a share which was the closing mid-price on the 31st of May 2022.

The money will be used for further investments, follow-on investment in Suir Valley Ventures (ICAV) and general working capital purposes.  

Application has been made in respect of Ordinary Shares to be admitted to trading on the Specialist Funds Segment of the Main Market of London Stock Exchange plc (“Admission”).  Admission will become effective and dealings in the Ordinary Shares will commence at 8:00 a.m. (London time) on and around the 10th June 2022.

Following Admission, the Company will have 6,455,085 Ordinary Shares in issue. The total number of voting rights of the Company will be 6,455,085. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company.  

The Board would also like to announce that our registered address has now changed to:

International House
36-38 Cornhill
London
EC3V 3NG 

For further information, please contact:

Issuer

 

Sure Ventures plc

Gareth Burchell

0207 186 9900

 

Placing Agent

 

 

Shard Capital Partners LLP

Damon Heath

0207 186 9900

Q1 2022 Portfolio Update

RNS Number : 7744L | Sure Ventures PLC | 7 May 2022

 

Portfolio Update Q1 2022 and Director commentary

 

Sure Ventures is a London listed venture capital fund which invests in early stage software companies in the rapidly growing technology areas of Augmented Reality (‘AR’), Virtual Reality (‘VR’), Internet of Things (‘IoT’) and Artificial Intelligence (AI). We are pleased to provide an update on the Company’s investment portfolio.

SURE VALLEY VENTURES FUND

Sure Ventures made a €7million commitment to Sure Valley Ventures Fund (‘Sure Valley’) representing an interest in Sure Valley of approximately 25.9%. This commitment was made at a price of €1.00 per share. The current NAV of the Sure Valley Ventures ICAV is €1.47 which is a 9.99% increase from its NAV as at Q4 2021.

Sure Valley has several investments across the AI, AR, VR and IoT sectors and the major contributing factors and commentary on underlying companies that has driven this NAV calculation are as follows:

Getvisibility

Getvisibility successfully raised €10 million in equity from new investors Alpha Intelligence Capital (“AIC”), a global venture capital firm which invests in deep artificial intelligence/machine learning technology-based companies and Fortino Capital Partners (“Fortino”), a leading B2B software venture capital and growth equity firm.  

Certain existing investors, including Sure Valley Ventures and Pires have also made follow-on investments alongside AIC and Fortino and other additional new investors. As part of this funding round, Sure Ventures PLC invested a further 310,773 Euros from existing cash resources as part of the follow-on round.

Getvisibility has made significant progress in both winning customers and identifying customer needs, in what is clearly a requirement that has become “front and centre” to commercial operations across the globe. This round of funding, based on the post funding round valuation of Getvisibility, provides a 4x uplift to our original investment and has been responsible for the NAV uplift.

VIVIDQ

VividQ announced the launch of its latest cutting-edge technology, unveiled for the first time at the SID Display Week Conference in San Jose, California. VividQ’s Alpha Optical Engine Demonstrator displays high-resolution 3D visuals (60 PPD) with excellent contrast and realistic focal depth using Computer-Generated Holography (CGH), the process of engineering light in software.

This new technology allows device manufacturers to test and evaluate VividQ’s innovations in Computer generated holography (CGH) against their AR display specifications and image quality requirements. VividQ is collaborating with device manufacturers from the US, Japan and China to integrate CGH into the next generation of AR devices soon to be available on the market.

 Listed holdings

Equity markets have been volatile, and both Engage XR (EXR.L) and Immotion PLC (IMMO.L) traded lower on a quarter-on-quarter basis. The AIFM are happy with both positions and are long term investors. Both listed entities are producing strong revenue growth and market adoption.

During the quarter Immotion PLC signed a three-year agreement for the installation of a 24 seat Gorilla Trek VR Theatre at Pittsburgh Zoo & PPG Aquarium. The company also announced full year results showing Revenues for the year increasing by 230% to £9,391,000 and the Group achieved a full year positive adjusted EBITDA[5] result for the first time since its inception of £908,000 (2020: £1,690,000 negative).

ENGAGE XR is also performing well despite the market volatility and Engage platform revenue comprises 72% of total Group revenue. Since the Group’s interim results, ENGAGE has continued to grow, including the recent signing of a contract with one of the world’s leading professional services groups to use the platform. Annual ENGAGE revenue compound annual growth rate (CAGR) is in excess of 100%.

SURE VALLEY VENTURES ENTERPRISE CAPITAL FUND

During the quarter Sure Ventures PLC also made a commitment of £5m to the Sure Valley Ventures Capital Fund. The fund has launched, and the first investment was made in a company called RETìníZE on the 16th of March 2022.

Retinize are developing an innovative software product called Animotive that is harnessing the latest VR technologies to transform the 3D animation production process. The proceeds of the seed round will drive the next two-year step in its growth and the global rollout of Animotive.

The seed round, led by the SVV Software Fund’s £1 million investment, marks the first investment from this fund which recently announced its first close of £85 million, which included a cornerstone £50 million investment from the British Business Bank, an investment arm of the UK Government.

 

Sure Ventures PLC NAV

The funding round secured by Getvisability has had a significant impact on the Company’s NAV and despite a decline in value of the listed assets, the NAV of Sure Ventures PLC has grown from 118.34p a share to 128.9p a share, which represents a 8.923% uplift quarter on quarter.

 

 

Forward looking statement & Director comment

When calculating the NAV for both Sure Valley Ventures and Sure Ventures PLC we do not re-rate an unlisted investee company valuation unless there is a funding round priced by another investor. The nature and stage of the software companies that we invest requires patience and we are now starting to see these businesses mature at a strong pace. This quarter has seen another portfolio company complete a follow on round with a 4x original cash uplift and we look forward to updating the market with progress of our portfolio as it continues to grow.

Gareth Burchell comment 

“Sure Valley Ventures and its portfolio of deep technology companies continue to perform in what are difficult economic circumstances. The speed at which some of the growth is starting to come through has the team excited for the future. The NAV is beginning to reflect some of the achievements of our founders and we look forward to updating shareholders with further progress”

 

For further information, please visit www.sureventuresplc.com or contact:

Gareth Burchell

Sure Ventures plc

+44 (0) 20 7186 9918

Notes to Editors

Sure Ventures plc listed on the London Stock Exchange in January 2018 giving retail investors access to an asset class that is usually dominated by private venture capital funds. Sure Ventures is focusing on companies in the UK, Republic of Ireland and other European countries, making seed and series A investments in companies with first rate management teams, products which benefit from market validation with target revenue run rates of at least £400,000 over the next 12 months. Website: https://www.sureventuresplc.com/

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RETìníZE Investment

RNS Number : 9569E | Sure Ventures PLC | 16 March 2022

Sure Ventures plc (‘Sure Ventures’ or ‘the Company’)

First investment of the Sure Valley Ventures UK Software Technology Fund

 

Sure Ventures plc, a London listed venture capital fund which invests in early-stage software companies in the rapidly growing technology areas of Augmented Reality (‘AR’), Virtual Reality (‘VR’), Internet of Things (‘IoT’) and Artificial Intelligence (AI), is pleased to announce its first investment call from Sure Valley Ventures UK Software technology fund.

Further to the Company’s announcement on 2 March 2022, RETìníZE Limited (“RETìníZE”), the award-winning creative-tech company based in Belfast, Northern Ireland, has successfully raised £2 million in a seed round led by the SVV Software Fund.

RETìníZE is developing an innovative software product called Animotive that is harnessing the latest VR technologies to transform the 3D animation production process. The proceeds of the seed round will drive the next two-year step in its growth and the global rollout of Animotive.

The seed round, led by the SVV Software Fund’s £1 million investment, marks the first investment from this fund which recently announced its first close of £85 million, which included a cornerstone £50 million investment from the British Business Bank, an investment arm of the UK Government.

Other investors in the round, from the UK, USA, Ireland and the Netherlands, include:

  • TechStart Ventures – leading investor of seed capital across Scotland and Northern Ireland, following on from their 2019 pre-seed investment in ​RETìníZE
  • VGC Partners – London based investor building great companies at the intersection of physical and digital commerce
  • Clarendon/Co-fund NI – equity fund based in Northern Ireland that co-invest with business angels and private investors
  • Lonely Horse Investments – investor association based in the Netherlands
  • Bertram van Munster & Elise Doganieri – multi Emmy award-winning producers behind the CBS hit show “the Amazing Race”
  • Ben Morrow – Senior Product Manager, Adobe Aero (Adobe’s AR creation tool)

The SVV Software Fund is a newly established venture capital fund, investing in a range of private UK software companies with a focus on companies in the Metaverse, Artificial Intelligence and Cybersecurity sectors. The fund is run by the same SVV team which has been highly successful in achieving several cash realisations from, and upward revaluations of, companies in the SVV portfolio.

Gareth Burchell Quote: “Really pleased with the first investment made by the SVV software fund and RETìníZE fits in perfectly with the strategy of the fund. This is creative technology at its best and the £1m seed round will allow the team to rollout their ground-breaking VR animation process on a global basis. The round brings with it a number of highly regarded co-investors, which I believe is testament to the experience, capability and skill that the team at RETìníZE possess”.

Enquiries: Sure Ventures PLC – Gareth Burchell – Director – 0207 186 9951

Corporate Broker: Damon Heath – Shard Capital – 0207 186 9952

Investment in Sure Valley UK Software Tech Fund

RNS Number : 3470D | Sure Ventures PLC | 02 March 2022

Sure Ventures plc (‘Sure Ventures’ or ‘the Company’)

Investment in Sure Valley Ventures UK Software Technology Fund Alongside the British Business Bank

Sure Ventures plc, a London listed venture capital fund which invests in early stage software companies in the rapidly growing technology areas of Augmented Reality (‘AR’), Virtual Reality (‘VR’),  Internet of Things (‘IoT’) and Artificial Intelligence (AI), is pleased to announce that it has agreed to invest, alongside the British Business Bank (“BBB”), in a new venture capital fund, the Sure Valley Ventures UK Software Technology Fund (the “New SVV Fund”).

Highlights

  • The principal investor in the New SVV Fund is the British Business Bank, an investment arm of the UK Government.  The first close of this fund will amount to £85 million, with the BBB investing up to £50 million and other investors (“Private Investors”), including Sure Ventures PLC, investing up to £35 million over the 10-year life of the fund.
  • The New SVV Fund will invest in a range of private UK software companies with a focus on companies in the Immersive Technology and Metaverse sectors, including Augmented and Virtual Reality, Artificial Intelligence, the Internet of Things and Security.
  • Sure Ventures PLC, will initially be investing circa £90,000, in the New SVV Fund on first close in order to fund the New SVV Fund’s first investment which has already been identified.   It expects to invest up to £5 million in total over the life of the New SVV Fund which would equate to a circa 5.9% interest.
  • The New SVV Fund will be managed by the same Sure Valley Ventures fund (“SVV”) team which, to date, has been highly successful in achieving a number of cash realisations from, and upward revaluations of, companies in the SVV portfolio.
  • The profit share arrangements within the New SVV Fund are designed to encourage the involvement of Private Investors alongside the BBB, meaning that Sure Ventures PLC and the other Private Investors would expect to receive a significantly enhanced profit share of the total return generated by the fund compared to industry standard.
  • This investment will enable Sure Ventures PLC shareholders to gain exposure to exciting, fast growing venture capital investments through a listed company structure with the expectation of an enhanced return which would otherwise be difficult for such investors to achieve.
  • The Company has several sources available to fund this investment over the coming years. These would include a combination of potential realisations from SVV Fund 1, an Equity Subscription Agreement and Loan Agreement, funds from future subscriptions and receipts generated from any sales of listed investments.

Comment from Gareth Burchell

Given the market conditions, raising £35m privately and attracting investment from an organisation such as the British Business Bank is testament to the success and talent of the Sure Valley Ventures team.

The Board recognise this is a very attractive investment opportunity for shareholders in Sure Ventures given that the New SVV Fund is a larger size than SVV Fund 1 which will allow for a more diverse investment portfolio and the structure of the new fund provides for enhanced returns to investors, when compared to the more traditional structure of SVV Fund 1. The existing team from SVV will continue to manage the new fund having demonstrated a proven track record from the returns to date achieved from managing SVV Fund 1.

Fund 2 has been created as part of the BBB’s Enterprise Capital Funds programme that only accepts a very limited number of fund managers on to the programme, so this is a clear validation of the quality of the investment team at SVV”

The British Business Bank (BBB) and Enterprise Capital Funds

The BBB is the largest domestic backer of venture capital funds in the UK. Established in 2006, the Enterprise Capital Funds (“ECF”) programme helps those looking to operate in the UK market to raise venture capital funds specifically targeting early-stage small businesses believed to have long-term growth potential.

The ECF programme combines private and public money to make equity investments into high growth businesses. The aim is to increase the supply of equity to UK growth companies and to lower the barriers to entry for fund managers looking to operate in the venture capital market.  The BBB’s ECF programme only accepts a very limited number of fund managers on to its programme i.e. some 24 fund management groups over the last 16 years since the programme started in 2006.

The BBB specifically invests alongside venture capital funds on terms which improve the outcome for the co-investors. The reason for this clear advantage is simply to encourage venture capital funds to operate in a part of the market where smaller businesses may not be able to access the growth capital they need.

Other well-known fund managers that have been involved with the BBB ECF programme include Dawn Capital, Notion Capital, Amadeus Capital Partners, IQ Capital, and Episode 1.

Details of the New SVV Fund

The New SVV Fund is expected to complete its first close with total investment commitments of £85 million, of which £50 million will be invested by the BBB with the balance of £35 million coming from Private Investors, including financial institutions and family offices. The total investment may, however, increase to £95 million, with the Private Investors investing up to £45 million. Sure Ventures PLC’s investment allocation of £5 million will, however, not be required to increase in these circumstances.

Sure Ventures PLC’s investment commitment over the life of the New SVV Fund will be drawn down in tranches as and when funds are required for investment over the 10 year life of the fund. However, as is similar to the existing SVV fund, any realisations of its investments will be distributed to investors at the time of realisation (as is common with funds of this nature) therefore the return on this investment is expected to be received throughout the life of the fund.

The New SVV Fund will invest in a range of private UK software companies with a focus on companies in the Immersive Technology and Metaverse sectors, including Augmented and Virtual Reality, Artificial Intelligence, the Internet of Things and Security and is aligned with Sure Ventures PLC’s investment strategy.

The Sure Valley Ventures UK Software Technology Fund has been created under the partnership, Sure Valley Ventures Enterprise Capital LP (“Partnership”).  The Partnership has been constituted under an agreement between Sure Valley General Partner Limited (“GP”) and Sure Valley Ventures Founder LLP (“FP”) to carry on the business of an investor and, in particular, of identifying, negotiating, making, monitoring and realising investments and to carry out all functions and acts in connection therewith.

Shard Capital AIFM LLP has been selected by the GP to act as the Alternative Investment Fund Manager (AIFM) of the Partnership and has been appointed by the Partnership to (i) admit Investors to the Partnership and thereafter to operate the Partnership and manage its investments, and (ii) act as Alternative Investment Fund Manager (as defined in the AIFMD) to the Partnership.

The role of Sure Valley Ventures Limited shall include sourcing investors and deal flow for the Partnership, advising the Manager on making investments, and arranging deals in investments for the Partnership. If Sure Valley Ventures Limited or another Associate of the General Partner becomes an Authorised Person permitted under FSMA to act as Manager of the Partnership, it is intended that Sure Valley Ventures Limited or its Associate (as applicable) shall be appointed as AIFM of the Partnership.

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

 

Enquiries: Sure Ventures PLC

Gareth Burchell: Director – 0207 186 9951

Corporate Broker: Damon heath

Shard Capital: 0207 186 9952

Portfolio Update Q4 2021

RNS Number : 1587B | Sure Ventures PLC | 09 February 2022

Sure Ventures plc (‘Sure Ventures’ or ‘the Company’)

Portfolio Update Q4 2021 and Director commentary

 

Sure Ventures is a London listed venture capital fund which invests in early stage software companies in the rapidly growing technology areas of Augmented reality (‘AR’), Virtual reality (‘VR’), Internet of Things (‘IoT’) and Artificial Intelligence (AI). We are pleased to provide an update on the Company’s investment portfolio.

 

SURE VALLEY VENTURES FUND

Sure Ventures made a €7million commitment to Sure Valley Ventures Fund (‘Sure Valley’) representing an interest in Sure Valley of approximately 25.9%. This commitment was made at a price of €1.00 per share. The current NAV of the Sure Valley Ventures ICAV is 134 EUR.

Sure Valley has several investments across the AI, AR, VR and IoT sectors and the major contributing factors and commentary on underlying companies that has driven this NAV calculation are as follows:

 

Admix

On October the 26th 2021 we announced that Admix raised $25m in a series B funding round. This deal closed within the reporting quarter and had a significant uplift on the NAV of the fund. This new funding round represented a 1500% increase to the initial valuation that the original investment was made by the fund management team.

The Series B round allows Admix to scale up its In-Play solution and bridge the gap between brands, creators and advertisers worldwide. Admix are making excellent progress with the execution of that scale-up strategy and it is on track to deliver 1000% year-on-year revenue growth. This new capital is set to fund Admix’s evolution as a set of monetisation tools for the new creator economy, and its second critical phase of product development that will set standards in the formative metaverse

 

Cameramatics

On the 30th of December 2021 CameraMatics successfully raised a total of €3.9 million in additional growth funding from existing investors Sure Valley Ventures, Puma and Enterprise Ireland after achieving 90% increase in valuation since January 2021. 

The proceeds of the funding round will be used to expand CameraMatics’ sales and marketing teams, help fund its global expansion and scale in line with the strong levels of growth that the company is experiencing. 

CameraMatics states that it has seen a 167% growth in recurring revenue in the last 12 months and expects opportunities in its current pipeline to further accelerate its growth after a year which saw them win founder of the year, emerging company of the year and most recently shortlisted for the European future Unicorn award coming up in 2022. The Future Unicorn Award aims at celebrating scale-ups from across Europe that have the potential to become the future European tech giants

 

Nova leah

Nova Leah has announced the closing of its seed investment round led by Northwell Holdings & Ventures, the for-profit venture investment arm of Northwell Health, New York State’s largest healthcare provider. The investment includes additional funding from existing investors Kernel Capital and SVV. Nova Leah plans to use the funds to significantly expand its market opportunity and global reach.

In recent years, healthcare delivery organisations around the world have experienced increasingly significant disruption to the provision of medical care as a result of security threats. Nova Leah has won international awards for its cloud-based security product SelectEvidence® which ensures that connected medical devices are continuously assessed for cybersecurity vulnerabilities.

 

Listed holdings

Equity markets in the last quarter of 2021 were volatile and the two listed entities that play part of the calculation of our NAV are Engage XR Holdings PLC and Immotion PLC. Immotion PLC moved from 6.7p in September 2021 to 5.35p at the end of December 2021. Engage Xr Holdings from 18.35p to 16.35p in the same reporting period.

 

Sure Ventures PLC NAV

The funding rounds completed in Admix, Cameramatics and Nova Leah had a strong impact on our NAV and a 10.37% uplift in what was a tough quarter for the tech sector is very pleasing. Our NAV now stands at 118.34p and is trading at a 13.09% discount to the market price as at 09th of February 2022. 

 

Forward looking statement & Director comment

When calculating our NAV both Sure Valley Ventures and Sure Ventures PLC do not re-rate an unlisted investee company valuation unless there is a funding round priced by another investor. The nature and stage of the software companies that we invest requires patience and we are now starting to see these businesses mature at a strong pace. The funding rounds of Admix, Cameramatics and Nova Leah should act as a demonstration of what that next stage of growth can mean to investors and the pace at which our NAV can grow now these businesses are maturing. We look forward to keeping the market up to date and would remind investors that we have a portfolio of 16 businesses that are performing well and reaching the next stage of their growth cycle.

 

Gareth Burchell comment    

“Sure Valley Ventures has created a portfolio of award winning, deep technology companies in exciting and fast-paced areas of the software market. Watching these companies mature, the hard work and commitment of the founders and the talent that they possess is very inspiring. We will continue to update investors with news flow and look forward to an exciting 2022”.

 

For further information, please visit www.sureventuresplc.com or contact:

Gareth Burchell

Sure Ventures plc

+44 (0) 20 7186 9918

Unaudited Interim Report 30th September 2021

RNS Number : 8366U | Sure Ventures PLC | 08 December 2021

Sure Ventures plc
Unaudited Interim Report and Financial Statements

For the six months ended 30 September 2021

Company Number: 10829500

 

Table of Contents

  1. Chairman’s Statement
  2. Investment Manager’s Report
  3. Interim Management Report
  4. Alternative Performance Measures (APMs)
  5. Financial Statements
  • Condensed Statement of Comprehensive Income
  • Condensed Statement of Financial Position
  • Condensed Statement of Changes in Equity
  • Condensed Statement of Cash Flows
  • Notes to the Condensed Interim Financial Statements

 

1. Chairman’s Statement

Chairman’s Statement

 Dear Shareholders.

On behalf of my fellow directors, I am delighted to present the interim results of Sure Ventures plc (the ‘Company’) for the six months ended 30 September 2021.

FINANCIAL PERFORMANCE

The Company’s performance for the half year to 30 September 2021 returned an impressive net asset value (‘NAV’) total return per share of +16.47% (31 September 2020 +3.43%). This positive performance was due to a combination of an uplift in the valuation of VividQ Limited (“VividQ”), that completed its seed extension funding round during the period, and is held both as a direct and an indirect investment, a Series A funding round uplift for Ambisense Limited, and the continued improvement in the share price performance of the two listed investments of ENGAGE XR Holdings plc (formerly known as VR Education Holdings plc) (“ENGAGE”) and Immotion Group plc (“Immotion”). Other contributory factors to the strong performance in the period include the realised gain from the sale of a part of the ENGAGE shareholding, a position that has been strategically reduced to the value of the Company’s original investment in ENGAGE and also the receipt of final escrow funds from the Company’s first successful exit of Artomatix Limited, a transaction that closed in December 2019 and which realised a x5 gain on the initial investment in a 14-month timeframe.

In the period to 30 September 2021 the Company’s NAV attributable to shareholders grew steadily to £6.45m with only a limited marketing strategy being employed by the Investment Manager. During recent weeks the Company’s share price has dipped to trade at small discount to its last published NAV, however the Company considers this to be a temporary anomaly and believes in the growth potential of its investment portfolio and that further positive news in the coming one to two quarters will see a normalisation of the share price premium to its NAV.

PORTFOLIO UPDATE

The Company’s holdings comprise its 25.9% investment in Sure Valley Ventures. This is a Sub-Fund of Suir Valley Fund ICAV (the ‘Fund’) to which the Company has made a total commitment of €7m (increasing its initial commitment from €4.5m in September 2019). As well as these investments the Company directly holds – Immotion, which is a listed immersive virtual reality (‘VR”) entertainment group and VividQ, a privately owned deep technology company pioneering the application of holography in augmented reality (‘AR’) and VR. The Fund portfolio includes one listed entity, ENGAGE a developer of VR software and immersive experiences with a specific focus on education, and as at the year end, a further thirteen privately held companies in the AR, VR, internet of things (‘IoT’) and artificial intelligence (‘AI’) space, having concluded its first successful portfolio company exit in December 2019 for x5 return of the original investment.

During the period the Fund announced one additional investment in Zefone Limted t/a Smarttech247 (September 2021), an award-winning managed detection and response company and a market leader in security operations, adding to the diverse and well-balanced composition of the Fund’s portfolio of investee companies.

Further information on the investment portfolio is provided in the report of the Investment Manager which follows this statement.

COMMITMENTS AND FUNDING

As previously mentioned, in 2019 the Company announced an increase in subscription to the Fund of €2.5m taking its total commitment to €7m, thereby increasing its share in the Fund from 21.6% to 25.9%. This commitment was made shortly before the Fund closed to new subscribers validating the Company’s belief that the Fund portfolio is at a mature stage and, with several investee companies preparing for further funding rounds, there is demonstrable potential for further uplifts to occur from initial valuations.

Several of these funding rounds are currently in the negotiation stage and the Company expects to announce further updates in the next one or two quarters and, in a post interim results event, on 27 October 2021 the Company was pleased to announce the completion of the Series B funding round raising US$25m for Admix Limited at a significant uplift to its initial investment in this exciting company which is on track to generate an impressive tenfold increase in revenue growth.

The Company believes that it will have sufficient access to funding to meet its commitments to the Fund over the term of the Fund’s investment cycle, through a combination of available cash, anticipated subscriptions and access to undrawn facilities.

INVESTMENT ENVIRONMENT

The Company is impressed by how the Investment Manager has navigated through the past eighteen months in a challenging investment environment as it has steadily grown the investment portfolio with other complimentary businesses in diverse sectors. Its experienced team continues to provide advice and guidance to its investee companies and it is a validation of Investment Manager’s comprehensive investment filter processes that the performance of the portfolio has largely been unaffected to the downside by COVID-19, and certain companies such as Buymie, Admix and Ambisense have benefitted from accelerated growth as a consequence of the COVID-19 environment. However, whilst the portfolio has largely been insulated by the effects of COVID-19, the Company and the Investment Manger continue to remain vigilant of the risks associated with the pandemic.

It is anticipated that the latest development in VR/AR technology, the metaverse will narrow the gap even further between the physical and digital world. As new communal spaces are created and are able not only to provoke social relationships, but provide a greater dependency on remote working, the replicated office setting, accessible from home engineers an engaging environment for professional communications. Perhaps with a newfound acceptance for telecommuting, this is the start of a mass consensus forming around VR/AR, and its further benefits within business.

DIVIDEND

During the year to 30 September 2021, the Company has not declared a dividend (30 September 2020: £nil). Pursuant to the Company’s dividend policy the directors intend to manage the Company’s affairs to achieve shareholder returns through capital growth rather than income. The Company does not expect to receive a material amount of dividends or other income from its direct or indirect investments. It should not be expected that the Company will pay a significant annual dividend, if any.

GEARING

The Company may deploy gearing of up to 20% of net asset value (calculated at the time of borrowing) to seek to enhance returns and for the purposes of capital flexibility and efficient portfolio management. The Company’s gearing is expected to primarily comprise bank borrowings but may include the use of derivative instruments and such other methods as the Board may determine. During the period to 31 March 2021 the Company did not employ any borrowing (31 March 2020: £nil).

The Board will continue to review the Company’s borrowing, in conjunction with the Investment Manager on a regular basis pursuant with the Company’s overall cash management and investment strategy.

CAPITAL RAISING

On 8 June 2021, the Company announced a placing of 662,500 ordinary shares that were admitted to trading on the Specialist Fund Segment of the London Stock Exchange on 14 June 2021, under the existing ISIN: GB00BYWYZ460, taking the total shares in admission as at 30 September 2021 to 6,013,225.

The Investment Manager’s Report following this Statement gives further detail on the affairs of the Company. The Board is confident of the long-term prospects for the Company in pursuit of its investment objectives.

Outlook

The announcement of the Admix funding round in October is a particularly pleasing development which will positively impact the December 2021 NAV given the significant uplift in valuation. Additionally, there are further funding rounds in negotiation which we anticipate will translate into an excellent calendar year for the Company and the Investment Manager. And as the chosen investment verticals attract a greater following, the Company, as an early mover into this space, believes that the diverse and seasoned portfolio it has created is extremely well placed to benefit from an increased investor focus on this sector, which in turn it believes will bring deserved rewards to its shareholders.

Perry Wilson

Chairman
1 December 2021

 

2. Investment Manager’s Report

Investment Manager’s Report

THE COMPANY

Sure Ventures plc (the “Company”) was established to enable investors to gain access to early stage technology companies in the three exciting and expansive market verticals of augmented reality and virtual reality (AR/VR), artificial intelligence (AI) and the internet of things (IoT).

The Company gains access to deal flow ordinarily reserved for venture capital funds and ultra-high net worth angel investors, establishing a diversified software-centric portfolio with a clear strategy. Listing the fund on the London Stock Exchange offers investors:

  • Relative liquidity
  • A quoted share price
  • A high level of corporate governance.

It is often too expensive, too risky and too labour intensive for investors to build a portfolio of this nature themselves. We are leveraging the diverse skillsets of an experienced management team who have the industry network to gain access to quality deal flow, the expertise to complete extensive due diligence in target markets and the entrepreneurial skills to help these companies to mature successfully. Those investing in the Company will get exposure to Sure Valley Ventures which in turn makes direct investments in the above sectors in the UK & Ireland.

 

Augmented Reality & Virtual Reality

The AR/VR market is evolving at a rapid pace. Significant investment in hardware capability and headset development has been made by major industry players such as Facebook (through its Oculus division), Microsoft, Sony (through its PlayStation division), HTC, Samsung and others. This investment has ignited a new and exciting industry within the technology sector. Hardware manufacturers and AR/VR users are now searching for software capabilities/support and content, and we believe that exposure to this industry via the Fund and direct investment into software companies in the space will offer significant upside potential for investors. Through our network of technology accelerators, angel investor partners and industry contacts in the AR/VR space, we expect to have a strong chance of discovering the industry leaders of tomorrow.

 

Internet of Things

The Internet of Things (IoT) as a segment of the market is a broad investment area; it is defined as the interconnection, via the internet, of computing devices embedded in everyday objects, enabling them to send and receive data. The global growth and advancement of internet coverage, the increased speed and capability of connectivity and the mass market penetration of smartphones/tablet sales has created significant opportunities for software companies. Businesses from many industries are embracing the efficiencies, cost savings and the “direct to consumer” penetration this technological advancement has offered. We see continued growth in this area and believe that investor returns will benefit from exposure to the space.

 

Artificial Intelligence

According to the market research firm Tractica, the global artificial intelligence software market is expected to experience massive growth in the coming years, with revenues increasing from around US$9.5 billion in 2018 to an expected US$118.6 billion by 2025[1]. The overall AI market includes a wide array of applications such as natural language processing, robotic process automation, and machine learning. McKinsey did an analysis comparing the value created by advanced analytics versus AI and machine learning across common enterprise use cases. McKinsey found that 82% of enterprises adopting machine learning and AI have gained a financial return from their investments. For companies across all industries, the median return on investment from cognitive technologies is 17%.

[1]  Tractica 2019

 

PORTFOLIO BREAKDOWN

On 6 February 2018 the Company entered into a €4.5m commitment to Sure Valley Ventures (the “Fund”), the sole sub-fund of Suir Valley Funds ICAV and its investment was equalised into the Fund at that date. On 31 August 2019 a further €2.5m was committed to the Fund, taking the total investment in Sure Valley Ventures to €7m. The first drawdown was made on 5 March 2018 and as at 30 September 2021, a total of €4,754,357 had been drawn down against this commitment.

On 26 April 2019 the Company made a direct investment of £500,000 into VividQ Limited, a deep tech start up with world leading expertise in 3D holography. This investment represents the second direct investment of the Company, alongside Immotion Group PLC, which was announced on 24th April 2018. As detailed in the Statement of Position included in the following financial statements, these two investments alongside the Fund investment represent the entire portfolio of Sure Ventures plc as at 30 September 2021.

On 8 June 2021, the Company announced a placing of 662,500 ordinary shares. The ordinary shares were admitted to trading on the Specialist Fund Segment of the London Stock Exchange on 14 June 2021, under the existing ISIN: GB00BYWYZ460, taking the total shares in admission as at 30 September 2021 to 6,013,225.

SUIR VALLEY FUNDS ICAV

Suir Valley Funds ICAV (the ”ICAV”) is a close-ended Irish collective asset-management vehicle with segregated liability between sub-funds incorporated in Ireland pursuant to the Irish Collective Asset-management Vehicles Act 2015 and constituted as an umbrella fund insofar as the share capital of the ICAV is divided into different series with each series representing a portfolio of assets comprising a separate sub-fund.

The ICAV was registered on 18 October 2016 and authorised by the Central Bank of Ireland as a qualifying investor alternative investment fund (“QIAIF”) on 10 January 2017. The initial sub-fund of the ICAV is Sure Valley Ventures, or (“the Fund”), which had an initial closing date of 1 March 2017. The Fund invests in a broad range of software companies with a focus on companies in the AR/VR, AI and IoT sectors.

As at 30 September 2021 the Fund had commitments totaling €27m and had made sixteen direct investments into companies spanning the AR/VR, AI and IoT sectors. One of these investments was sold in 2019, giving the Fund its first realised gain on exit of around 5X return on investment. On 12 March 2018, Immersive VR Education Limited, the Fund’s first investment, completed a flotation on the London Stock Exchange (AIM) and the Dublin Stock Exchange (ESM). The public company is now called VR Education Holdings PLC – ticker VRE. VRE was the first software company to list on the ESM since that market’s inception. In July 2020, following an improvement in share price, the sub-Fund decided to sell sufficient shares to recover its initial investment. This resulted in a realised gain of €73k being payable to Sure Ventures PLC, along with its share of the initial investment, and some Escrow Funds from the aforementioned exit. The final Escrow payment from the sale was settled in July 2021, seeing another €151k flowing to the PLC. Total distributions from the sub-Fund to the PLC as at 30 September 2021 was €1,759,630.

PERFORMANCE

In the period to 30 September 2021 the Company’s performance continued to improve, as it returned a net asset value of £1.07/unit, representing a 16% uplift from the audited March-21 NAV of 92p. The NAV improvement is largely a result of the ICAV NAV seeing similar gains, as more portfolio companies complete follow-on funding rounds at increased valuations, and hence large unrealised gains being booked. The two direct investments have also improved, with Immotion Group PLC, closing the period at 6,7p, up from 5.05p at year end, and VividQ closing a new funding round to give Sure Ventures PLC an unrealised gain of 59% on its initial holding. Given the lack of revenue to support the ongoing operational costs of the PLC, these unrealised gains are key to maintaining a steady NAV, until the point that we see more exits and realised gains.

FUTURE INVESTMENT OUTLOOK

The Fund has achieved one very positive realised gain, recovered its full investment in its listed portfolio company, as well as seeing number a of unrealised gains across the portfolio. The Fund continues to have access to quality deals in our chosen high growth sectors. The portfolio of current investments is continuing to mature, with more companies completing series A funding rounds, which has started to provide the NAV growth that was set out to achieve from inception.

We remain confident in the future outlook of the Company in the forthcoming financial year and in line with the prospectus, reserve the right to make further direct investments provided there is sufficient working capital to do so.

Shard Capital AIFM LLP

Investment Manager

18 November 2021

 

 

3  Interim Management Report

Interim Management Report

The report below together with the Chairman’s Statement, Investment Manager’s report and related party disclosures in the notes to the financial statements constitute the Interim Management Report for the six months ended 30 September 2021.

Principal risks and uncertainties

The principal risks and uncertainties associated with the Company’s business are divided into the following main areas:

  • Operational risks, including risks associated with reliance on third party service providers, reliance on key individuals at the Investment Manager and fluctuations in the market price of the Company’s shares;
  • Investment risks, including risks associated with the investment objective, borrowing and liquidity of investments; and
  • Regulatory risks, including risks associated with maintenance of investment trust status and compliance with applicable legislative obligations.

The above risks are described further in the Company’s Annual Report for the year ended 31 March 2021 together with measures that have been put in place to mitigate and manage those risks.

In the view of the directors, the principal risks and uncertainties reported in the latest Annual Report for the year ended 31 March 2021 remain unchanged and will be applicable to the remaining six months of the financial year.

COVID-19 PANDEMIC

The effects of COVID-19 continue to cause some market volatility and have had an effect on the Company through price volatility of the Company’s investments. The ongoing economic and broader impacts of COVID-19 will have an effect on the financial statements and operations in the future, though it is not possible to quantify likely impacts at this stage.

The Board and the Investment Manager continue to closely monitor developments on a regular basis and have invoked internal controls and risk management procedures to mitigate any related risk that may arise.

GOING CONCERN

The Board and the Investment Manager believe that the operational viability and going concern status of the Company remains intact and will continue for the next financial 12 months ahead and foreseeable future. The Board has no concerns in regards to the ongoing existence of the Company.

The Board is also satisfied that the key service providers have the ability to continue to operate efficiently in a remote or virtual working environment.

 

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The directors confirm that, to the best of their knowledge that:

  1. a) the condensed set of unaudited financial statements contained within the half-yearly financial report have been prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting as required by the Disclosure and Transparency Rule 4.2.4R, and give a true and fair view of the assets, liabilities and financial position of the Company;
  2. b) the Interim Management Report includes a fair review, as required by Disclosure and Transparency Rule 4.2.7R, of important events that have occurred during the first six months of the financial year, their impact on the condensed set of unaudited financial statements, and a description of the principal risks and perceived uncertainties for the remaining six months of the financial year; and
  3. c) the Interim Management Report includes a fair review of the information concerning related parties’ transactions as required by Disclosure and Transparency Rule 4.2.8R.

For and on behalf of the board of directors

 

Perry Wilson

Chairman

1 December 2021

 

4    Alternative Performance Measures (APMs)

Alternative Performance Measures (APMs)

APMS are often used to describe the performance of investment companies although they are not specifically defined under IFRS. Calculations for APMs used by the Company are shown below.

ONGOING CHARGES

A measure expressed as a percentage of average net assets, of the regular, recurring annual costs of running an investment company, calculated in accordance with the AIC methodology.

Year ended 31 September 2021

 

Average NAV (£’000) a £6,484
Recurring costs b £452
b/a 6.96%

PREMIUM

The amount, expressed as a percentage, by which the share price is more than the NAV per share.

As at 30 September 2021

 

NAV per ordinary share a 107.22p
Share price b 103p
(b-a)/a (3.94%)

TOTAL RETURN

A measure of performance that includes both income and capital returns. This takes into account capital gains and reinvestment of any dividends paid out by the Company, with reinvestment on ex-dividend date

Year ended 31 March 2021

 

NAV Share price
Opening as at 31 March 2021 (p) A 92.06 105.00
Closing at 30 September 2021 (p) B 107.22 103.00
Dividend reinvestment factor C 1 1
Adjusted closing (d = b x c ) D 107.22 103.00
Total return (d-a) / a 16.47% (1.90%)

 

5 Financial Statements

Condensed Statement of Comprehensive Income

For the six months ended 30 September 2021 (unaudited)

    Revenue

£

Capital
£
Total
£
Income
Other net changes in fair value on financial assets at fair value through profit or loss  

912,687 912,687
Other income 128,800 128,800
Total net income 1,041,487 1,041,487
 
Expenses
Custodian, secretarial and administration fees (48,259) (48,259)
Other expenses (101,100) (101,100)
Total operating expenses (149,359) (149,359)
 
Profit / (Loss) before Taxation and after finance costs (149,359) 1,041,487 892,128
Taxation
Profit / (Loss) after taxation (149,359) 1,041,487 892,128
 
Earnings per share (2.48) 17.32 14.84

 

For the six months ended 30 September 2020 (unaudited)

    Revenue

£

Capital
£
Total
£
Income
Other net changes in fair value on financial assets at fair value through profit or loss  

231,188 231,188
Other income 79,883 79,883
Total net income 311,071 311,071
 
Expenses
Custodian, secretarial and administration fees (43,095) (43,095)
Other expenses (103,819.98) (103,819.98)
Total operating expenses (146,915) (146,915)
 
Profit / (Loss) before Taxation and after finance costs (146,915) 311,071 164,156
Taxation
Profit / (Loss) after taxation (146,915) 311,071 164,156
 
Earnings per share (2.74) 5.81 3.07

 

The total comprehensive income and expense for the period is attributable to shareholders of the Company. The accompanying notes on pages 18 to 20 form part of these condensed interim financial statements.

Condensed Statement of Financial Position

As at 30 September 2020                                                                                             

  Notes 30 September 2021

(unaudited)

£

31 March 2021

(audited)
£

Non-current assets
Investments held at fair value through profit or loss 7 5,269,757 3,724,611
  5,269,757 3,724,611
 
Current assets
Cash and cash equivalents 1,213,838 1,255,199
  1,213,838 1,255,199
 
Total assets 6,483,595 4,979,810
 
Current liabilities
Other payables (36,328) (54,046)
  (36,328) (54,046)
 
Total assets less current liabilities 6,447,267 4,925,764
 
Total net assets 6,447,267 4,925,764
Shareholders’ funds
Ordinary share capital 8 60,132 53,507
Share premium 5,768,780 5,146,030
Revenue reserves (1,175,869) (1,026,510)
Capital reserves 1,794,224 752,737
Total shareholders’ funds 6,447,267 4,925,764
 
Net asset value per share   107.22p 92.06p

 

The accompanying notes on pages 18 to 20 form part of these condensed interim financial statements.

The financial statements on pages 14 to 17 were approved by the board of directors and authorised for issue on 1 December 2021.

 

They were signed on its behalf by:

Perry Wilson, Chairman
Condensed Statement of Changes in Equity

For the six months ended 30 September 2021 (unaudited)

  Ordinary

Share

Capital

£

Share

Premium

 

£

Revenue

Reserves

 

£

Capital

Reserves

 

£

Total

Reserves

 

£

Total

Equity

 

£

For the year ended 31 March 2021 53,507 5,146,030 (1,026,510) 752,737 (273,773) 4,925,764
Ordinary shares issued  6,625  655,875 662,500
Ordinary shares issue costs (33,125) (33,125)
Profit / (Loss) after taxation (149,359) 1,041,487 892,128 892,128
Dividends paid in the period
Balance at 30

September 2021

60,132 5,768,780 (1,175,869) 1,794,224 618,355 6,447,267

 

For the six months ended 30 September 2020 (unaudited)

  Ordinary

Share

Capital

£

Share

Premium

 

£

Revenue

Reserves

 

£

Capital

Reserves

 

£

Total

Reserves

 

£

Total

Equity

 

£

For the year ended 31 March 2020  48,699  4,699,588  223,375  (461,743)  (238,368)  4,509,919
Ordinary shares issued 4,750 470,250 475,000
Ordinary shares issue costs (23,750) (23,750)
Profit / (Loss) after taxation (146,915) 311,071 164,156 164,156
Dividends paid in the period
Balance at 30

September 2020

53,449 5,146,088 76,460 (150,672) (74,212) 5,125,325

 

The accompanying notes on pages 18 to 20 form part of these condensed interim financial statements.

 

Condensed Statement of Cash Flows

For the six months ended 30 September 2021

    30 September 2021

(unaudited)

£

30 September 2020

(unaudited)

£

Cash flows from operating activities:
Profit / (Loss) after taxation 892,128 164,156
Adjustments for:
Decrease in receivables 5,330
Decrease in payables (17,718) (264,932)
Unrealised Profit on foreign exchange (23,856) (66,576)
(Profit) / Loss on sale of investment (2,773) 1,790
Net changes in fair value on financial assets at fair value through profit or loss  

(885,336)

 

(156,338)

Net cash (outflow) from operating activities  

(37,555)

 

(316,570)

 
Cash flows from investing activities:
Purchase of investments (894,541) (424,828)
Sale of investments 261,360 66,913
Net cash (outflow) from investing activities (633,181) (357,915)
 
Cash flows from financing activities:
Proceeds from issue of ordinary shares 662,500  475,000
Share issue costs (33,125)  -23,750
Net cash inflow from financing activities 629,375 451,250
 
Net change in cash and cash equivalents (41,361) (223,235)
 

Cash and cash equivalents at the beginning of the period

 

1,255,199

 

1,700,601

Net cash and cash equivalents   1,213,838 1,477,366

 

The accompanying notes on pages 18 to 20 form part of these condensed interim financial statements.

Notes to the Condensed Interim Financial Statements

1)  GENERAL INFORMATION

Sure Ventures plc (the “Company”) is a company incorporated in England and Wales (registration number: 10829500) on 21 June 2017, commencing trading on 19 January 2018 upon listing. The registered office of the Company is 23rd Floor, 20 Fenchurch Street, London, United Kingdom, EC3M 3BY.

The Company is an investment company within the meaning of section 833 of the Companies Act 2006.

The Company operates as an investment trust in accordance with Chapter 4 of Part 24 of the Corporation Tax Act 2010 and the Investment Trust (Approved Company) (Tax) Regulations 2011. In the opinion of the directors, the Company has conducted its affairs so that it is able to maintain its status as an investment trust. Approval of The Company’s application for approval as an investment trust was received from HMRC on 22 November 2018, applicable from the accounting period commencing 1 April 2018.

The Company is an externally managed closed-ended investment company with an unlimited life and has no employees.

The information set out in these unaudited condensed interim financial statements for the period ended 30 September 2021 does not constitute statutory accounts as defined in section 435 of Companies Act 2006. Comparative figures 31 March 2021 are derived from the financial statements for that period. The financial statements for the period ended 31 March 2021 have been delivered to the Registrar of Companies and contain an unqualified audit report and did not contain a statement under emphasis of matter or statements under section 498(2) or (3) of the Companies Act 2006. The financial statements of the Company for the year ended 31 March 2021 are available upon request from the Company’s registered office at 23rd Floor, 20 Fenchurch Street, London, United Kingdom, EC3M 3BY.

2)  BASIS OF ACCOUNTING

The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRIC interpretations (IFRS IC) as adopted by the European Union. They do not include all the information required for the full annual financial statements, and should be read in conjunction with the annual financial statements of the Company for the period ended 31 March 2021. The principal accounting policies adopted in the preparation of the financial information in these unaudited condensed interim financial statements are unchanged from those used in the Company’s financial statements for the year ended 31 March 2021. This report does not itself contain sufficient information to comply with IFRS.

3)  ESTIMATES

The preparation of the unaudited condensed interim financial statements requires management to make judgement, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing these unaudited condensed interim financial statements, the significant judgement made by management in applying the Company’s accounting policies and the key sources of estimation were the same as those that applied to the Company financial statements as at and for the period ended 31 March 2021.

4)  FINANCIAL RISK MANAGEMENT

The Company’s financial risk management objectives and policies are consistent with those disclosed in the Company financial statements as at and for the year ended 31 March 2021.

5)  TAXATION

As an investment trust the Company is exempt from corporation tax on capital gains. The Company’s revenue income is subject to tax, but offset by any interest distribution paid, which has the effect of reducing that corporation tax to nil. This means the interest distribution may be taxable in the hands of the Company’s shareholders.

6)  EARNINGS PER SHARE

For the six months period ended 30 September 2021 Revenue
pence
Capital
pence
Total
pence
Earnings per ordinary share (2.48)p 17.32p 14.84p

For the financial period ended 31 from March 2021
Earnings per ordinary share (5.21)p 4.55p (0.66)p

 

The calculation of the above is based on revenue return loss of (£149,359) (31 March 2021: loss (£278,639)), capital return profit of £1,041,487 (31 March 2021: profit £243,234) and total return profit of £892,128 (31 March 2021: loss (£35,405)) and weighted average number of ordinary shares of 6,013,225 (31 March 2021: 5,350,725) as at 30 September 2021.

7)  INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

  As at 30 September 2021

£

As at 31 March 2021
£
Opening cost
Opening fair value 3,724,611 3,078,560
 
Purchases at cost 894,541 534,171
Sale (261,360) (66,913)
Cost at fair value measurement
Realised gain/(loss) 2,773 (1,790)
Unrealised gain 885,336 300,079
Unrealised gain/(loss) on foreign exchange 23,856 (119,496)
Closing fair value 5,269,757 3,724,611

 

8)  ORDINARY SHARE CAPITAL

The table below details the issued share capital of the Company as at the date of the Financial Statements.

Issued and allotted No. of shares

30 September

 2021

No. of shares
31 March
 2021

 

Ordinary Share Capital

30 September 2021
£

Ordinary Share Capital

31 March 2021
£

Ordinary shares of 1 penny each 6,013,225 5,350,725 60,132 53,507

On incorporation, the issued share capital of the Company was £0.01 represented by one ordinary share of £0.01.  Redeemable preference shares of 50,000 were also issued with a nominal value of £1 each, of which 25% were paid. The redeemable shares were issued to enable the Company to obtain a certificate of entitlement to conduct business and to borrow under section 761 of the Companies Act 2006. The redeemable shares were redeemed on listing from the proceeds of the issue of the new ordinary shares upon admission on 19 January 2018.

The following table details the subscription activity for the period ended 30 September 2021.

  30 September 2021 31 March 2021
Balance as at 31 March 2021 5,350,725 4,869,956
Ordinary shares issued 662,500 480,769
Balance as at 30 September 2021 6,013,225 5,350,725

 

During the period ended 30 September 2021, all proceeds from this issue was received (31 March 2021 all proceeds from this issue was received)

9)  RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH THE MANAGER

Directors – There were no contracts subsisting during or at the end of the period in which a director of the Company is or was interested and which are or were significant in relation to the Company’s business. There were no other transactions during the period with the directors of the Company. The directors do not hold any ordinary shares of the Company.

At 30 September 2021, there was £1,437 (31 March 2021: £1,441) payable in respect of directors fees and expenses.

Manager – Shard Capital AIFM LLP (the ‘Manager’), a UK-based company authorised and regulated by the Financial Conduct Authority, has been appointed the Company’s manager and authorised investment fund manager for the purposes of the Alternative Investment Fund Managers Directive. Details of the services provided by the manager and the fees paid are given in the prospectus dated 17 November 2017.

During the period the Company incurred £40,673 and was rebated the full amount (31 March 2021 £63,311) of fees and at 30 September 2021, there was £nil (31 March 2021: nil) payable to the manager.

During the period the Company paid £33,125 (31 March 2021: £23,750) of placement fees to Shard Capital Partners LLP.

During the period the Company paid £6,000 (31 March 2020: £12,000) of advisory fees to Shard Capital Partners LLP.

10)  SUBSEQUENT EVENTS

 

There was no subsequent events which would require disclosure in the financial statements.

For further information, please visit www.sureventuresplc.com or contact:

 

Gareth Burchell Sure Ventures plc +44 (0) 20 7186 9918

Notes to Editors

Sure Ventures plc listed on the London Stock Exchange in January 2018 giving retail investors access to an asset class that is usually dominated by private venture capital funds.  Sure Ventures is focusing on companies in the UK, Republic of Ireland and other European countries, making seed and series A investments in companies with first rate management teams, products which benefit from market validation with target revenue run rates of at least £400,000 over the next 12 months.  Website: https://www.sureventuresplc.com/

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Unaudited Interim Report 30th September 2021

Released 08:00:03 08 December 2021

RNS Number : 8366U

Sure Ventures PLC

08 December 2021

 

Sure Ventures plc
Unaudited Interim Report and Financial Statements

For the six months ended 30 September 2021

Company Number: 10829500

 

Table of Contents

  1. Chairman’s Statement
  2. Investment Manager’s Report
  3. Interim Management Report
  4. Alternative Performance Measures (APMs)
  5. Financial Statements
  6. Condensed Statement of Comprehensive Income
  7. Condensed Statement of Financial Position
  8. Condensed Statement of Changes in Equity
  9. Condensed Statement of Cash Flows
  10. Notes to the Condensed Interim Financial Statements

 

1 Chairman’s Statement

 

Chairman’s Statement

 Dear Shareholders.

On behalf of my fellow directors, I am delighted to present the interim results of Sure Ventures plc (the ‘Company’) for the six months ended 30 September 2021.

FINANCIAL PERFORMANCE

The Company’s performance for the half year to 30 September 2021 returned an impressive net asset value (‘NAV’) total return per share of +16.47% (31 September 2020 +3.43%). This positive performance was due to a combination of an uplift in the valuation of VividQ Limited (“VividQ”), that completed its seed extension funding round during the period, and is held both as a direct and an indirect investment, a Series A funding round uplift for Ambisense Limited, and the continued improvement in the share price performance of the two listed investments of ENGAGE XR Holdings plc (formerly known as VR Education Holdings plc) (“ENGAGE”) and Immotion Group plc (“Immotion”). Other contributory factors to the strong performance in the period include the realised gain from the sale of a part of the ENGAGE shareholding, a position that has been strategically reduced to the value of the Company’s original investment in ENGAGE and also the receipt of final escrow funds from the Company’s first successful exit of Artomatix Limited, a transaction that closed in December 2019 and which realised a x5 gain on the initial investment in a 14-month timeframe.

In the period to 30 September 2021 the Company’s NAV attributable to shareholders grew steadily to £6.45m with only a limited marketing strategy being employed by the Investment Manager. During recent weeks the Company’s share price has dipped to trade at small discount to its last published NAV, however the Company considers this to be a temporary anomaly and believes in the growth potential of its investment portfolio and that further positive news in the coming one to two quarters will see a normalisation of the share price premium to its NAV.

PORTFOLIO UPDATE

The Company’s holdings comprise its 25.9% investment in Sure Valley Ventures. This is a Sub-Fund of Suir Valley Fund ICAV (the ‘Fund’) to which the Company has made a total commitment of €7m (increasing its initial commitment from €4.5m in September 2019). As well as these investments the Company directly holds – Immotion, which is a listed immersive virtual reality (‘VR”) entertainment group and VividQ, a privately owned deep technology company pioneering the application of holography in augmented reality (‘AR’) and VR. The Fund portfolio includes one listed entity, ENGAGE a developer of VR software and immersive experiences with a specific focus on education, and as at the year end, a further thirteen privately held companies in the AR, VR, internet of things (‘IoT’) and artificial intelligence (‘AI’) space, having concluded its first successful portfolio company exit in December 2019 for x5 return of the original investment.

During the period the Fund announced one additional investment in Zefone Limted t/a Smarttech247 (September 2021), an award-winning managed detection and response company and a market leader in security operations, adding to the diverse and well-balanced composition of the Fund’s portfolio of investee companies.

Further information on the investment portfolio is provided in the report of the Investment Manager which follows this statement.

 

COMMITMENTS AND FUNDING

As previously mentioned, in 2019 the Company announced an increase in subscription to the Fund of €2.5m taking its total commitment to €7m, thereby increasing its share in the Fund from 21.6% to 25.9%. This commitment was made shortly before the Fund closed to new subscribers validating the Company’s belief that the Fund portfolio is at a mature stage and, with several investee companies preparing for further funding rounds, there is demonstrable potential for further uplifts to occur from initial valuations.

Several of these funding rounds are currently in the negotiation stage and the Company expects to announce further updates in the next one or two quarters and, in a post interim results event, on 27 October 2021 the Company was pleased to announce the completion of the Series B funding round raising US$25m for Admix Limited at a significant uplift to its initial investment in this exciting company which is on track to generate an impressive tenfold increase in revenue growth.

The Company believes that it will have sufficient access to funding to meet its commitments to the Fund over the term of the Fund’s investment cycle, through a combination of available cash, anticipated subscriptions and access to undrawn facilities.

INVESTMENT ENVIRONMENT

The Company is impressed by how the Investment Manager has navigated through the past eighteen months in a challenging investment environment as it has steadily grown the investment portfolio with other complimentary businesses in diverse sectors. Its experienced team continues to provide advice and guidance to its investee companies and it is a validation of Investment Manager’s comprehensive investment filter processes that the performance of the portfolio has largely been unaffected to the downside by COVID-19, and certain companies such as Buymie, Admix and Ambisense have benefitted from accelerated growth as a consequence of the COVID-19 environment. However, whilst the portfolio has largely been insulated by the effects of COVID-19, the Company and the Investment Manger continue to remain vigilant of the risks associated with the pandemic.

It is anticipated that the latest development in VR/AR technology, the metaverse will narrow the gap even further between the physical and digital world. As new communal spaces are created and are able not only to provoke social relationships, but provide a greater dependency on remote working, the replicated office setting, accessible from home engineers an engaging environment for professional communications. Perhaps with a newfound acceptance for telecommuting, this is the start of a mass consensus forming around VR/AR, and its further benefits within business.

DIVIDEND

During the year to 30 September 2021, the Company has not declared a dividend (30 September 2020: £nil). Pursuant to the Company’s dividend policy the directors intend to manage the Company’s affairs to achieve shareholder returns through capital growth rather than income. The Company does not expect to receive a material amount of dividends or other income from its direct or indirect investments. It should not be expected that the Company will pay a significant annual dividend, if any.

GEARING

The Company may deploy gearing of up to 20% of net asset value (calculated at the time of borrowing) to seek to enhance returns and for the purposes of capital flexibility and efficient portfolio management. The Company’s gearing is expected to primarily comprise bank borrowings but may include the use of derivative instruments and such other methods as the Board may determine. During the period to 31 March 2021 the Company did not employ any borrowing (31 March 2020: £nil).

The Board will continue to review the Company’s borrowing, in conjunction with the Investment Manager on a regular basis pursuant with the Company’s overall cash management and investment strategy.

CAPITAL RAISING

On 8 June 2021, the Company announced a placing of 662,500 ordinary shares that were admitted to trading on the Specialist Fund Segment of the London Stock Exchange on 14 June 2021, under the existing ISIN: GB00BYWYZ460, taking the total shares in admission as at 30 September 2021 to 6,013,225.

The Investment Manager’s Report following this Statement gives further detail on the affairs of the Company. The Board is confident of the long-term prospects for the Company in pursuit of its investment objectives.

Outlook

The announcement of the Admix funding round in October is a particularly pleasing development which will positively impact the December 2021 NAV given the significant uplift in valuation. Additionally, there are further funding rounds in negotiation which we anticipate will translate into an excellent calendar year for the Company and the Investment Manager. And as the chosen investment verticals attract a greater following, the Company, as an early mover into this space, believes that the diverse and seasoned portfolio it has created is extremely well placed to benefit from an increased investor focus on this sector, which in turn it believes will bring deserved rewards to its shareholders.

Perry Wilson

Chairman
1 December 2021

 

2 Investment Manager’s Report

Investment Manager’s Report

THE COMPANY

Sure Ventures plc (the “Company”) was established to enable investors to gain access to early stage technology companies in the three exciting and expansive market verticals of augmented reality and virtual reality (AR/VR), artificial intelligence (AI) and the internet of things (IoT).

The Company gains access to deal flow ordinarily reserved for venture capital funds and ultra-high net worth angel investors, establishing a diversified software-centric portfolio with a clear strategy. Listing the fund on the London Stock Exchange offers investors:

  • Relative liquidity
  • A quoted share price
  • A high level of corporate governance.

It is often too expensive, too risky and too labour intensive for investors to build a portfolio of this nature themselves. We are leveraging the diverse skillsets of an experienced management team who have the industry network to gain access to quality deal flow, the expertise to complete extensive due diligence in target markets and the entrepreneurial skills to help these companies to mature successfully. Those investing in the Company will get exposure to Sure Valley Ventures which in turn makes direct investments in the above sectors in the UK & Ireland.

 

Augmented Reality & Virtual Reality

The AR/VR market is evolving at a rapid pace. Significant investment in hardware capability and headset development has been made by major industry players such as Facebook (through its Oculus division), Microsoft, Sony (through its PlayStation division), HTC, Samsung and others. This investment has ignited a new and exciting industry within the technology sector. Hardware manufacturers and AR/VR users are now searching for software capabilities/support and content, and we believe that exposure to this industry via the Fund and direct investment into software companies in the space will offer significant upside potential for investors. Through our network of technology accelerators, angel investor partners and industry contacts in the AR/VR space, we expect to have a strong chance of discovering the industry leaders of tomorrow.

 

Internet of Things

The Internet of Things (IoT) as a segment of the market is a broad investment area; it is defined as the interconnection, via the internet, of computing devices embedded in everyday objects, enabling them to send and receive data. The global growth and advancement of internet coverage, the increased speed and capability of connectivity and the mass market penetration of smartphones/tablet sales has created significant opportunities for software companies. Businesses from many industries are embracing the efficiencies, cost savings and the “direct to consumer” penetration this technological advancement has offered. We see continued growth in this area and believe that investor returns will benefit from exposure to the space.

Artificial Intelligence

According to the market research firm Tractica, the global artificial intelligence software market is expected to experience massive growth in the coming years, with revenues increasing from around US$9.5 billion in 2018 to an expected US$118.6 billion by 2025[1]. The overall AI market includes a wide array of applications such as natural language processing, robotic process automation, and machine learning. McKinsey did an analysis comparing the value created by advanced analytics versus AI and machine learning across common enterprise use cases. McKinsey found that 82% of enterprises adopting machine learning and AI have gained a financial return from their investments. For companies across all industries, the median return on investment from cognitive technologies is 17%.

[1]  Tractica 2019

 

PORTFOLIO BREAKDOWN

On 6 February 2018 the Company entered into a €4.5m commitment to Sure Valley Ventures (the “Fund”), the sole sub-fund of Suir Valley Funds ICAV and its investment was equalised into the Fund at that date. On 31 August 2019 a further €2.5m was committed to the Fund, taking the total investment in Sure Valley Ventures to €7m. The first drawdown was made on 5 March 2018 and as at 30 September 2021, a total of €4,754,357 had been drawn down against this commitment.

On 26 April 2019 the Company made a direct investment of £500,000 into VividQ Limited, a deep tech start up with world leading expertise in 3D holography. This investment represents the second direct investment of the Company, alongside Immotion Group PLC, which was announced on 24th April 2018. As detailed in the Statement of Position included in the following financial statements, these two investments alongside the Fund investment represent the entire portfolio of Sure Ventures plc as at 30 September 2021.

On 8 June 2021, the Company announced a placing of 662,500 ordinary shares. The ordinary shares were admitted to trading on the Specialist Fund Segment of the London Stock Exchange on 14 June 2021, under the existing ISIN: GB00BYWYZ460, taking the total shares in admission as at 30 September 2021 to 6,013,225.

SUIR VALLEY FUNDS ICAV

Suir Valley Funds ICAV (the ”ICAV”) is a close-ended Irish collective asset-management vehicle with segregated liability between sub-funds incorporated in Ireland pursuant to the Irish Collective Asset-management Vehicles Act 2015 and constituted as an umbrella fund insofar as the share capital of the ICAV is divided into different series with each series representing a portfolio of assets comprising a separate sub-fund.

The ICAV was registered on 18 October 2016 and authorised by the Central Bank of Ireland as a qualifying investor alternative investment fund (“QIAIF”) on 10 January 2017. The initial sub-fund of the ICAV is Sure Valley Ventures, or (“the Fund”), which had an initial closing date of 1 March 2017. The Fund invests in a broad range of software companies with a focus on companies in the AR/VR, AI and IoT sectors.

As at 30 September 2021 the Fund had commitments totaling €27m and had made sixteen direct investments into companies spanning the AR/VR, AI and IoT sectors. One of these investments was sold in 2019, giving the Fund its first realised gain on exit of around 5X return on investment. On 12 March 2018, Immersive VR Education Limited, the Fund’s first investment, completed a flotation on the London Stock Exchange (AIM) and the Dublin Stock Exchange (ESM). The public company is now called VR Education Holdings PLC – ticker VRE. VRE was the first software company to list on the ESM since that market’s inception. In July 2020, following an improvement in share price, the sub-Fund decided to sell sufficient shares to recover its initial investment. This resulted in a realised gain of €73k being payable to Sure Ventures PLC, along with its share of the initial investment, and some Escrow Funds from the aforementioned exit. The final Escrow payment from the sale was settled in July 2021, seeing another €151k flowing to the PLC. Total distributions from the sub-Fund to the PLC as at 30 September 2021 was €1,759,630.

PERFORMANCE

In the period to 30 September 2021 the Company’s performance continued to improve, as it returned a net asset value of £1.07/unit, representing a 16% uplift from the audited March-21 NAV of 92p. The NAV improvement is largely a result of the ICAV NAV seeing similar gains, as more portfolio companies complete follow-on funding rounds at increased valuations, and hence large unrealised gains being booked. The two direct investments have also improved, with Immotion Group PLC, closing the period at 6,7p, up from 5.05p at year end, and VividQ closing a new funding round to give Sure Ventures PLC an unrealised gain of 59% on its initial holding. Given the lack of revenue to support the ongoing operational costs of the PLC, these unrealised gains are key to maintaining a steady NAV, until the point that we see more exits and realised gains.

FUTURE INVESTMENT OUTLOOK

The Fund has achieved one very positive realised gain, recovered its full investment in its listed portfolio company, as well as seeing number a of unrealised gains across the portfolio. The Fund continues to have access to quality deals in our chosen high growth sectors. The portfolio of current investments is continuing to mature, with more companies completing series A funding rounds, which has started to provide the NAV growth that was set out to achieve from inception.

We remain confident in the future outlook of the Company in the forthcoming financial year and in line with the prospectus, reserve the right to make further direct investments provided there is sufficient working capital to do so.

Shard Capital AIFM LLP

Investment Manager

18 November 2021

 

3  Interim Management Report

Interim Management Report

The report below together with the Chairman’s Statement, Investment Manager’s report and related party disclosures in the notes to the financial statements constitute the Interim Management Report for the six months ended 30 September 2021.

Principal risks and uncertainties

The principal risks and uncertainties associated with the Company’s business are divided into the following main areas:

  • Operational risks, including risks associated with reliance on third party service providers, reliance on key individuals at the Investment Manager and fluctuations in the market price of the Company’s shares;
  • Investment risks, including risks associated with the investment objective, borrowing and liquidity of investments; and
  • Regulatory risks, including risks associated with maintenance of investment trust status and compliance with applicable legislative obligations.

The above risks are described further in the Company’s Annual Report for the year ended 31 March 2021 together with measures that have been put in place to mitigate and manage those risks.

In the view of the directors, the principal risks and uncertainties reported in the latest Annual Report for the year ended 31 March 2021 remain unchanged and will be applicable to the remaining six months of the financial year.

 

COVID-19 PANDEMIC

The effects of COVID-19 continue to cause some market volatility and have had an effect on the Company through price volatility of the Company’s investments. The ongoing economic and broader impacts of COVID-19 will have an effect on the financial statements and operations in the future, though it is not possible to quantify likely impacts at this stage.

The Board and the Investment Manager continue to closely monitor developments on a regular basis and have invoked internal controls and risk management procedures to mitigate any related risk that may arise.

 

GOING CONCERN

The Board and the Investment Manager believe that the operational viability and going concern status of the Company remains intact and will continue for the next financial 12 months ahead and foreseeable future. The Board has no concerns in regards to the ongoing existence of the Company.

The Board is also satisfied that the key service providers have the ability to continue to operate efficiently in a remote or virtual working environment.

 

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The directors confirm that, to the best of their knowledge that:

 

  1. a) the condensed set of unaudited financial statements contained within the half-yearly financial report have been prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting as required by the Disclosure and Transparency Rule 4.2.4R, and give a true and fair view of the assets, liabilities and financial position of the Company;

 

  1. b) the Interim Management Report includes a fair review, as required by Disclosure and Transparency Rule 4.2.7R, of important events that have occurred during the first six months of the financial year, their impact on the condensed set of unaudited financial statements, and a description of the principal risks and perceived uncertainties for the remaining six months of the financial year; and
  2. c) the Interim Management Report includes a fair review of the information concerning related parties’ transactions as required by Disclosure and Transparency Rule 4.2.8R.

 

For and on behalf of the board of directors

 

Perry Wilson

Chairman

1 December 2021

 

 

4    Alternative Performance Measures (APMs)

Alternative Performance Measures (APMs)

APMS are often used to describe the performance of investment companies although they are not specifically defined under IFRS. Calculations for APMs used by the Company are shown below.

ONGOING CHARGES

A measure expressed as a percentage of average net assets, of the regular, recurring annual costs of running an investment company, calculated in accordance with the AIC methodology.

Year ended 31 September 2021

 

Average NAV (£’000) a £6,484
Recurring costs b £452
b/a 6.96%

PREMIUM

The amount, expressed as a percentage, by which the share price is more than the NAV per share.

As at 30 September 2021

 

NAV per ordinary share a 107.22p
Share price b 103p
(b-a)/a (3.94%)

TOTAL RETURN

A measure of performance that includes both income and capital returns. This takes into account capital gains and reinvestment of any dividends paid out by the Company, with reinvestment on ex-dividend date

Year ended 31 March 2021

 

NAV Share price
Opening as at 31 March 2021 (p) A 92.06 105.00
Closing at 30 September 2021 (p) B 107.22 103.00
Dividend reinvestment factor C 1 1
Adjusted closing (d = b x c ) D 107.22 103.00
Total return (d-a) / a 16.47% (1.90%)

 

5 Financial Statements

Condensed Statement of Comprehensive Income

For the six months ended 30 September 2021 (unaudited)

Revenue

£

Capital
£
Total
£
Income
Other net changes in fair value on financial assets at fair value through profit or loss  

912,687 912,687
Other income 128,800 128,800
Total net income 1,041,487 1,041,487
Expenses
Custodian, secretarial and administration fees (48,259) (48,259)
Other expenses (101,100) (101,100)
Total operating expenses (149,359) (149,359)
Profit / (Loss) before Taxation and after finance costs (149,359) 1,041,487 892,128
Taxation
Profit / (Loss) after taxation (149,359) 1,041,487 892,128
Earnings per share (2.48) 17.32 14.84

 

For the six months ended 30 September 2020 (unaudited)

Revenue

£

Capital
£
Total
£
Income
Other net changes in fair value on financial assets at fair value through profit or loss  

231,188 231,188
Other income 79,883 79,883
Total net income 311,071 311,071
Expenses
Custodian, secretarial and administration fees (43,095) (43,095)
Other expenses (103,819.98) (103,819.98)
Total operating expenses (146,915) (146,915)
Profit / (Loss) before Taxation and after finance costs (146,915) 311,071 164,156
Taxation
Profit / (Loss) after taxation (146,915) 311,071 164,156
Earnings per share (2.74) 5.81 3.07

 

The total comprehensive income and expense for the period is attributable to shareholders of the Company. The accompanying notes on pages 18 to 20 form part of these condensed interim financial statements.

Condensed Statement of Financial Position

As at 30 September 2020

Notes 30 September 2021

(unaudited)

£

31 March 2021

(audited)
£

Non-current assets
Investments held at fair value through profit or loss 7 5,269,757 3,724,611
5,269,757 3,724,611
Current assets
Cash and cash equivalents 1,213,838 1,255,199
1,213,838 1,255,199
Total assets 6,483,595 4,979,810
Current liabilities
Other payables (36,328) (54,046)
(36,328) (54,046)
Total assets less current liabilities 6,447,267 4,925,764
Total net assets 6,447,267 4,925,764
Shareholders’ funds
Ordinary share capital 8 60,132 53,507
Share premium 5,768,780 5,146,030
Revenue reserves (1,175,869) (1,026,510)
Capital reserves 1,794,224 752,737
Total shareholders’ funds 6,447,267 4,925,764
Net asset value per share 107.22p 92.06p

 

The accompanying notes on pages 18 to 20 form part of these condensed interim financial statements.

The financial statements on pages 14 to 17 were approved by the board of directors and authorised for issue on 1 December 2021.

 

They were signed on its behalf by:

Perry Wilson, Chairman
Condensed Statement of Changes in Equity

For the six months ended 30 September 2021 (unaudited)

Ordinary

Share

Capital

£

Share

Premium

 

£

Revenue

Reserves

 

£

Capital

Reserves

 

£

Total

Reserves

 

£

Total

Equity

 

£

For the year ended 31 March 2021 53,507 5,146,030 (1,026,510) 752,737 (273,773) 4,925,764
Ordinary shares issued  6,625  655,875 662,500
Ordinary shares issue costs (33,125) (33,125)
Profit / (Loss) after taxation (149,359) 1,041,487 892,128 892,128
Dividends paid in the period
Balance at 30

September 2021

60,132 5,768,780 (1,175,869) 1,794,224 618,355 6,447,267

 

For the six months ended 30 September 2020 (unaudited)

Ordinary

Share

Capital

£

Share

Premium

 

£

Revenue

Reserves

 

£

Capital

Reserves

 

£

Total

Reserves

 

£

Total

Equity

 

£

For the year ended 31 March 2020  48,699  4,699,588  223,375  (461,743)  (238,368)  4,509,919
Ordinary shares issued 4,750 470,250 475,000
Ordinary shares issue costs (23,750) (23,750)
Profit / (Loss) after taxation (146,915) 311,071 164,156 164,156
Dividends paid in the period
Balance at 30

September 2020

53,449 5,146,088 76,460 (150,672) (74,212) 5,125,325

 

The accompanying notes on pages 18 to 20 form part of these condensed interim financial statements.

 

Condensed Statement of Cash Flows

For the six months ended 30 September 2021

30 September 2021

(unaudited)

£

30 September 2020

(unaudited)

£

Cash flows from operating activities:
Profit / (Loss) after taxation 892,128 164,156
Adjustments for:
Decrease in receivables 5,330
Decrease in payables (17,718) (264,932)
Unrealised Profit on foreign exchange (23,856) (66,576)
(Profit) / Loss on sale of investment (2,773) 1,790
Net changes in fair value on financial assets at fair value through profit or loss  

(885,336)

 

(156,338)

Net cash (outflow) from operating activities  

(37,555)

 

(316,570)

Cash flows from investing activities:
Purchase of investments (894,541) (424,828)
Sale of investments 261,360 66,913
Net cash (outflow) from investing activities (633,181) (357,915)
Cash flows from financing activities:
Proceeds from issue of ordinary shares 662,500  475,000
Share issue costs (33,125)  -23,750
Net cash inflow from financing activities 629,375 451,250
Net change in cash and cash equivalents (41,361) (223,235)
 

Cash and cash equivalents at the beginning of the period

 

1,255,199

 

1,700,601

Net cash and cash equivalents 1,213,838 1,477,366

 

The accompanying notes on pages 18 to 20 form part of these condensed interim financial statements.

Notes to the Condensed Interim Financial Statements

1)  GENERAL INFORMATION

Sure Ventures plc (the “Company”) is a company incorporated in England and Wales (registration number: 10829500) on 21 June 2017, commencing trading on 19 January 2018 upon listing. The registered office of the Company is 23rd Floor, 20 Fenchurch Street, London, United Kingdom, EC3M 3BY.

The Company is an investment company within the meaning of section 833 of the Companies Act 2006.

The Company operates as an investment trust in accordance with Chapter 4 of Part 24 of the Corporation Tax Act 2010 and the Investment Trust (Approved Company) (Tax) Regulations 2011. In the opinion of the directors, the Company has conducted its affairs so that it is able to maintain its status as an investment trust. Approval of The Company’s application for approval as an investment trust was received from HMRC on 22 November 2018, applicable from the accounting period commencing 1 April 2018.

The Company is an externally managed closed-ended investment company with an unlimited life and has no employees.

The information set out in these unaudited condensed interim financial statements for the period ended 30 September 2021 does not constitute statutory accounts as defined in section 435 of Companies Act 2006. Comparative figures 31 March 2021 are derived from the financial statements for that period. The financial statements for the period ended 31 March 2021 have been delivered to the Registrar of Companies and contain an unqualified audit report and did not contain a statement under emphasis of matter or statements under section 498(2) or (3) of the Companies Act 2006. The financial statements of the Company for the year ended 31 March 2021 are available upon request from the Company’s registered office at 23rd Floor, 20 Fenchurch Street, London, United Kingdom, EC3M 3BY.

2)  BASIS OF ACCOUNTING

The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRIC interpretations (IFRS IC) as adopted by the European Union. They do not include all the information required for the full annual financial statements, and should be read in conjunction with the annual financial statements of the Company for the period ended 31 March 2021. The principal accounting policies adopted in the preparation of the financial information in these unaudited condensed interim financial statements are unchanged from those used in the Company’s financial statements for the year ended 31 March 2021. This report does not itself contain sufficient information to comply with IFRS.

3)  ESTIMATES

The preparation of the unaudited condensed interim financial statements requires management to make judgement, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing these unaudited condensed interim financial statements, the significant judgement made by management in applying the Company’s accounting policies and the key sources of estimation were the same as those that applied to the Company financial statements as at and for the period ended 31 March 2021.

4)  FINANCIAL RISK MANAGEMENT

The Company’s financial risk management objectives and policies are consistent with those disclosed in the Company financial statements as at and for the year ended 31 March 2021.

5)  TAXATION

As an investment trust the Company is exempt from corporation tax on capital gains. The Company’s revenue income is subject to tax, but offset by any interest distribution paid, which has the effect of reducing that corporation tax to nil. This means the interest distribution may be taxable in the hands of the Company’s shareholders.

6)  EARNINGS PER SHARE

For the six months period ended 30 September 2021 Revenue
pence
Capital
pence
Total
pence
Earnings per ordinary share (2.48)p 17.32p 14.84p
For the financial period ended 31 from March 2021
Earnings per ordinary share (5.21)p 4.55p (0.66)p

 

The calculation of the above is based on revenue return loss of (£149,359) (31 March 2021: loss (£278,639)), capital return profit of £1,041,487 (31 March 2021: profit £243,234) and total return profit of £892,128 (31 March 2021: loss (£35,405)) and weighted average number of ordinary shares of 6,013,225 (31 March 2021: 5,350,725) as at 30 September 2021.

7)  INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

As at 30 September 2021

£

As at 31 March 2021
£
Opening cost
Opening fair value 3,724,611 3,078,560
Purchases at cost 894,541 534,171
Sale (261,360) (66,913)
Cost at fair value measurement
Realised gain/(loss) 2,773 (1,790)
Unrealised gain 885,336 300,079
Unrealised gain/(loss) on foreign exchange 23,856 (119,496)
Closing fair value 5,269,757 3,724,611

 

8)  ORDINARY SHARE CAPITAL

The table below details the issued share capital of the Company as at the date of the Financial Statements.

Issued and allotted No. of shares

30 September

2021

No. of shares
31 March2021
Ordinary Share Capital

30 September 2021
£

Ordinary Share Capital

31 March 2021
£

Ordinary shares of 1 penny each 6,013,225 5,350,725 60,132 53,507

On incorporation, the issued share capital of the Company was £0.01 represented by one ordinary share of £0.01.  Redeemable preference shares of 50,000 were also issued with a nominal value of £1 each, of which 25% were paid. The redeemable shares were issued to enable the Company to obtain a certificate of entitlement to conduct business and to borrow under section 761 of the Companies Act 2006. The redeemable shares were redeemed on listing from the proceeds of the issue of the new ordinary shares upon admission on 19 January 2018.

The following table details the subscription activity for the period ended 30 September 2021.

30 September 2021 31 March 2021
Balance as at 31 March 2021 5,350,725 4,869,956
Ordinary shares issued 662,500 480,769
Balance as at 30 September 2021 6,013,225 5,350,725

 

During the period ended 30 September 2021, all proceeds from this issue was received (31 March 2021 all proceeds from this issue was received)

9)  RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH THE MANAGER

Directors – There were no contracts subsisting during or at the end of the period in which a director of the Company is or was interested and which are or were significant in relation to the Company’s business. There were no other transactions during the period with the directors of the Company. The directors do not hold any ordinary shares of the Company.

At 30 September 2021, there was £1,437 (31 March 2021: £1,441) payable in respect of directors fees and expenses.

Manager – Shard Capital AIFM LLP (the ‘Manager’), a UK-based company authorised and regulated by the Financial Conduct Authority, has been appointed the Company’s manager and authorised investment fund manager for the purposes of the Alternative Investment Fund Managers Directive. Details of the services provided by the manager and the fees paid are given in the prospectus dated 17 November 2017.

During the period the Company incurred £40,673 and was rebated the full amount (31 March 2021 £63,311) of fees and at 30 September 2021, there was £nil (31 March 2021: nil) payable to the manager.

During the period the Company paid £33,125 (31 March 2021: £23,750) of placement fees to Shard Capital Partners LLP.

During the period the Company paid £6,000 (31 March 2020: £12,000) of advisory fees to Shard Capital Partners LLP.

10)  SUBSEQUENT EVENTS

 

There was no subsequent events which would require disclosure in the financial statements.

 

 

For further information, please visit www.sureventuresplc.com or contact:

 

Gareth Burchell Sure Ventures plc +44 (0) 20 7186 9918

Notes to Editors

Sure Ventures plc listed on the London Stock Exchange in January 2018 giving retail investors access to an asset class that is usually dominated by private venture capital funds.  Sure Ventures is focusing on companies in the UK, Republic of Ireland and other European countries, making seed and series A investments in companies with first rate management teams, products which benefit from market validation with target revenue run rates of at least £400,000 over the next 12 months.  Website: https://www.sureventuresplc.com/