TIDMSUPP
RNS Number : 6407Q
Schroder UK Public Private Tst plc
22 June 2020
For release 22 June 2020
Schroder UK Public Private Trust plc
Announcement of Net Asset Value as at 31 March 2020
Schroder UK Public Private Trust plc (the 'Company') today
announces its net asset value ('NAV') as at 31 March 2020.
Summary
-- NAV of 46.12 pence per share, a reduction of 6.7% (31
December 2019: 49.46 pence per share), primarily as a result of the
impact COVID-19 on valuations.
-- Net debt of GBP105.4 million, down GBP5 million from 31 December 2019.
-- The impact of COVID-19 on the portfolio has been varied.
However, the portfolio has 58% in healthcare companies, with a
number aiding in the fight to overcome the pandemic.
-- Schroders (the 'Portfolio Manager') continues to provide
support to the businesses in the portfolio to help them navigate
the COVID-19 crisis, and continues to focus on adjusting position
sizes towards a more balanced portfolio whilst reducing the
debt.
Introduction
The outbreak of the COVID-19 pandemic in the first quarter of
2020 has had wide-reaching implications for both public and private
companies globally. The economic fallout has been felt across
global markets with valuations, as evidenced by the Company's Q1
2020 NAV, reflecting the initial impact of the pandemic.
The Portfolio Managers have been actively assessing the impact
of the economic downturn across the portfolio and working to ensure
the Company can best support its underlying portfolio companies.
Over the quarter, as the extent of disruption from COVID-19 became
evident, the Portfolio Managers have sought to protect the
portfolio through active engagement with portfolio company
management teams, boards and co-investors.
The impact of COVID-19 has varied mainly by region and industry,
the specific business model of a company and its financing
situation. However, the portfolio has a high proportion of
healthcare companies, which is a key strength at this point in time
and represents 58% of gross asset value ('GAV') as at 31 March
2020. This includes a number of companies in the portfolio that are
actively aiding in the fight to overcome the COVID-19 pandemic.
Net Asset Value
Value movements (GBPm) Quoted* Unquoted Net Debt Other NAV
Value at 31.12.19 134.3 426.8 (110.7) (1.0) 449.4
-------- --------- --------- ------ -------
+ Investments - - - - -
-------- --------- --------- ------ -------
- Realisations (0.7) (6.5) 7.2 - -
-------- --------- --------- ------ -------
+/- Fair value gains/(losses) (20.9) (25.5) - - (46.4)
-------- --------- --------- ------ -------
+/- FX gains/(losses) 1.3 16.3 - - 17.6
-------- --------- --------- ------ -------
+/- Costs and other
movements - - (1.9) 0.4 (1.5)
-------- --------- --------- ------ -------
Value at 31.03.20 114.0 411.1 (105.4) (0.6) 419.1
-------- --------- --------- ------ -------
*As in the FY2019 annual report, Rutherford Health is reported
as a quoted holding despite being fair value priced by Link Fund
Solutions, the company's AIFM.
The NAV as at 31 March 2020 was GBP419.1 million or 46.12 pence
per share. This reflects a decrease of 6.7% compared with the NAV
as at 31 December 2019 and falls in-line with the Company's NAV
impact guidance provided in note 23 of the annual report.
The contribution to the NAV total return of -6.7% can be broken
down in to:
-- Quoted holdings* -4.7%
-- Unquoted holdings -5.7%
-- FX impact +3.9%
-- Costs and other movements -0.3%
During the quarter the Company's quoted holdings saw a sharp
decline of 15.6% in value mainly as a result of the COVID-19 global
market sell-off. In comparison, the FTSE AIM All-Share Index
declined by 28.8% (Source: LSE website) during the same period. The
largest single contributor to performance in the quoted holdings
was Autolus Therapeutics whose listed share price fell 55.6%, but
has since recovered closer to its level as at 31(st) December
2019.
The Company's unquoted holdings were relatively less impacted
over the period, decreasing in value by 6.0%. The most notable
contributors to performance in the unquoted holdings was from
downward valuation adjustments implemented by the AIFM to various
holdings, particularly in the Financials sector, to reflect the
impact of COVID-19.
During the period, the portfolio also benefited from the decline
in the value of sterling relative to the US dollar by 6.4% which
resulted in an appreciation of the value of the Company's
dollar-denominated assets.
As part of the Portfolio Managers' previously stated intention
to move the portfolio toward a greater balance of sectors, company
stages and position sizes, the Company completed several
realisations over the quarter. This included the partial
realisation of the Company's holding in Oxford Nanopore as part of
a strongly supported fundraise at an attractive valuation (see
portfolio highlights below for further details). The Company also
completed the full realisation of its holding in Yoyo Wallet as
part of the second stage of a transaction agreed in 2019.
In line with the Board's commitment to reducing gearing over
time, some of these funds were used to pay down the Company's
gearing facility. Net borrowing now stands at GBP105.4 million or
25.1% of NAV.
*As in the FY2019 annual report, Rutherford Health is reported
as a quoted holding despite being fair value priced by the
AIFM.
Top 10
The below table outlines the Company's top 10 holdings as at 31
March 2020 and 31 December 2019. Values are provided by Link Fund
Services in co-ordination with IHS Markit.
Portfolio Company Value at 31 Mar Value at 31 % of 31 March % of 31 Dec
2020 (GBP'000) Dec 2019 (GBP'000) 2020 (Gross 2019 (Gross
Assets) Assets)
Rutherford Health 80,811 80,811 15.4% 14.4%
--------------- ------------------- ------------- ------------
Atom Bank 73,934 80,866 14.1% 14.4%
--------------- ------------------- ------------- ------------
Oxford Nanopore 68,706 74,847 13.1% 13.3%
--------------- ------------------- ------------- ------------
Benevolent Al 33,507 33,507 6.4% 6.0%
--------------- ------------------- ------------- ------------
Immunocore 25,676 24,032 4.9% 4.3%
--------------- ------------------- ------------- ------------
Carrick Therapeutics 18,780 17,578 3.6% 3.1%
--------------- ------------------- ------------- ------------
Inivata 18,006 18,006 3.4% 3.2%
--------------- ------------------- ------------- ------------
Mission Therapeutics 16,718 15,648 3.2% 2.8%
--------------- ------------------- ------------- ------------
Mafic 15,425 11,753 2.9% 2.1%
--------------- ------------------- ------------- ------------
Industrial Heat 15,388 14,403 2.9% 2.6%
--------------- ------------------- ------------- ------------
Source: AIFM, Link Fund Solutions, as at 31(st) March 2020.
Value changes are reflective of a combination of valuation
adjustments, FX movements and realisations over the quarter.
Outlook
As 2020 progresses, the Portfolio Managers will continue to
focus on the two key objectives highlighted by the board in the
Company's annual report. Namely, the Portfolio Managers will
continue to provide support to businesses within the portfolio in
their operational decision-making to help them navigate the
COVID-19 crisis and to maximise any opportunities that the crisis
has created. Secondly, there remains a focus on adjusting position
sizes towards a more balanced portfolio, whilst reducing the debt.
Additions to the portfolio are envisaged once the debt has been
further reduced.
Portfolio Highlights
Rutherford Health: Announced progress in meeting the rising
demand for proton beam therapy, the issuance of further equity and
a landmark framework agreement with NHS SBS
In February 2020, Rutherford announced that its centers have
treated over 100 patients with proton beam therapy and trained over
65 oncologists in the treatment of proton therapy to meet the
rising demand for the pioneering treatment in the UK. Through Q1,
and in order to support the company's continued scale-up, the
company completed a further drawdown of GBP17.1m from LF Equity
Income Fund (formerly LF Woodford Equity Income Fund) as part of
its existing commitment.
In May 2020, Rutherford announced that it had entered into a
framework agreement with NHS Shared Business Services ("NHS SBS"),
under which it is able to provide cancer treatment services on
demand by any NHS Trust at a pre-agreed set of prices. The
agreement lasts for two years with an option to extend for a
further two years and covers the complete range of services that
Rutherford offers, including radiotherapy, systemic anti-cancer
therapy (chemotherapy), proton beam therapy and diagnostic
services.
Atom Bank: Approved for accreditation from the British Business
Bank as a CBILS lender
In May 2020, Atom Bank announced that it has been approved for
accreditation as a new lender by the British Business Bank to offer
secured loans through the Government-backed Coronavirus Business
Interruption Lending Scheme (CBILS). Atom has since been offering
eligible businesses secured loans from GBP100,000 up to GBP5
million through the 200+ independent brokers that are registered to
work with Atom.
Oxford Nanopore: Announced GBP157.9 million in investment and
share sales, and the advanced development of LamPORE for rapid,
highly scalable, low-cost COVID-19 detection
In January 2020, Oxford Nanopore Technologies announced that it
had raised GBP29.3 million in new capital and additionally
facilitated the sale of GBP80.2 million in secondary shares,
resulting in total gross proceeds of GBP109.5 million. These funds
were raised internationally and include both new investors and
existing shareholders, from the US, Europe and Asia/Pacific.
Post 31 March 2020, Oxford Nanopore further announced that it is
in advanced development of a new generation of end-to-end test
(assay), known as LamPORE, for the detection of SARS-CoV-2, the
virus that causes COVID-19. The test is based on Oxford Nanopore's
DNA/RNA sequencing technology, in combination with a simple,
sample-preparation method which seeks to understand whether a
sample currently contains the SARS-CoV-2 virus (rather than
detecting antibodies that may indicate a previous infection).
LamPORE is the first assay that the company has developed in-house
with intended use in diagnostic applications, subject to relevant
authorisations that are currently being pursued. Oxford Nanopore is
planning to deploy LamPORE for COVID-19 in a regulated setting
initially on GridION and soon after on its portable MinION Mk1C
device.
In addition, the company completed a further closing of its
fundraise to secure an additional GBP48.4 million in new
capital.
BenevolentAI: Identified Baricitinib as potential treatment for
2019-nCoV acute respiratory disease
In February 2020, Benevolent published two papers in The Lancet
outlining how its proprietary knowledge graph, queried by a suite
of AI algorithms, enabled the rapid identification of a potential
therapeutic candidate for COVID-19. Its scientists re-examined the
affinity and selectivity of all the drugs in its knowledge graph to
identify already approved drugs with both anti-viral and
anti-inflammatory properties. Its research suggested that
Baricitinib, an already approved drug for rheumatoid arthritis
developed by Eli Lilly and Incyte, could be used to inhibit both
viral entry into cells and the human inflammatory response strongly
associated with the terminal phase of COVID-19 infection.
Post period end, in April 2020, it was announced by Eli Lilly
that Baricitinib would enter late stage phase 3 clinical trials as
a potential treatment for COVID-19.
Immunocore: Secured $130 million Series B Financing and
announced first clinical trial of IMC-F106C
In March 2020, Immunocore announced the completion of its Series
B private financing round, led by General Atlantic, generating more
than $130 million with participation from new and existing
investors. The proceeds will enable Immunocore to further expand
and accelerate its rapidly growing clinical stage pipeline of
ImmTAX(TM) molecules that includes three oncology programs in
MAGE-A4 (in collaboration with Genentech), NYESO-1 (in
collaboration with GlaxoSmithKline), and the lead program
tebentafusp (IMCgp100), which is in pivotal clinical studies as a
potential treatment for patients with metastatic uveal melanoma.
The proceeds will also allow the company to advance two wholly
owned clinical-stage internal programs for chronic Hepatitis B and
for PRAME, a target expressed in a wide range of tumours.
In May 2020, Immunocore announced the start of the
first-in-human clinical trial of IMC-F106C, the fourth bispecific
developed using the company's innovative ImmTAC(R) technology
platform. The IMC-F106C program is focused on targeting tumours
that express PRAME, a cancer-testis antigen (CTA) that is highly
expressed in a broad range of solid and hematologic malignancies.
The trial is designed to study the safety and preliminary activity
of IMC-F106C as a monotherapy and in combination with a checkpoint
inhibitor in patients with PRAME-expressing cancers.
Inivata: Announced strategic collaboration and investment from
NeoGenomics
In May 2020, Inivata announced the formation of a strategic
collaboration with NeoGenomics, Inc (NASDAQ: NEO), for the
commercialisation of its InVisionFirst(R)-Lung liquid biopsy test
in the United States. NeoGenomics is an established US-based cancer
diagnostics and services company with significant commercial reach
and scale making it a highly complementary partner to advance the
commercialisation of InVisionFirst-Lung. Inivata's liquid biopsy
test offers competitive sensitivity with results being delivered
within seven calendar days from blood draw, and has already
received reimbursement for US Medicare patients with advanced
non-small cell lung cancer (NSCLC).
Inivata and NeoGenomics also announced that they will seek
opportunities for collaboration with biopharmaceutical companies
around Inivata's liquid biopsy platform. These collaborations are
intended to further accelerate the roll-out across Inivata's range
of leading liquid biopsy products including RaDaR(TM), the newly
launched highly sensitive personalised assay for the detection of
residual disease and recurrence. This product complements the use
of other tests, including InVisionFirst-Lung, and is initially
being utilised in clinical trial settings where it has the
potential to increase the speed of patient recruitment through more
accurate selection.
As part of the collaboration, NeoGenomics is also making a $25
million equity investment in Inivata to take a minority
shareholding with an option to buy the company outright. The new
funding will be used to enable the acceleration of the company's
innovative liquid biopsy products, including further development
work on RaDaR.
Autolus Therapeutics: Released encouraging additional data
showcasing clinical progress of programmed T Cell therapy pipeline
in blood cancers and announced closing of $80m public offering
In January 2020, Autolus announced additional data regarding its
ongoing Phase 1/2 clinical trial of its next-generation programmed
T cell therapy, AUTO3, to treat adults with relapsed/refractory
diffuse large B cell lymphoma. In that same month, the company also
completed a public offering raising gross proceeds of $80
million.
In April 2020, Autolus announced that the U.S. Food and Drug
Administration (FDA) had accepted the Investigational New Drug
(IND) application for AUTO1, its lead CAR T product candidate for
the treatment of adults with acute lymphoblastic leukaemia. The
active IND allows initiation of the US sites in the company's first
pivotal study, AUTO1-AL1. The AUTO1-AL1 study clinical trial
application was approved by the MHRA in January 2020 and the first
site opened in the UK in March of this year.
Evofem Biosciences: U.S. FDA Approved Phexxi(TM), the first and
only non-hormonal prescription gel for the prevention of
pregnancy
In May 2020, Evofem announced that the U.S. Food and Drug
Administration (FDA) had approved Phexxi(TM) vaginal gel for the
prevention of pregnancy in females of reproductive potential for
use as an on-demand method of contraception. Phexxi is the first
non-hormonal, on-demand, vaginal pH regulator contraceptive
designed to maintain vaginal pH within the normal range of 3.5 to
4.5 - an acidic environment that is inhospitable to sperm. The
company expects to launch Phexxi in early September alongside the
Phexxi Concierge Experience, a comprehensive patient and healthcare
provider telemedicine support system. This offering of services is
designed to provide physicians with on-demand educational support
and simplify women's access to Phexxi.. Through this offering,
women would be able to secure a prescription, determine their
insurance coverage and/or out-of-pocket costs, receive counselling
support and refill reminders, and fill their prescription through
their local neighbourhood pharmacy or an online pharmacy that is
expected to deliver Phexxi right to their door.
Kymab: US Patent Trial and Appeal Board rejects requests filed
by Regeneron
In April 2020, Kymab announced that Regeneron Pharmaceuticals
Inc has been unsuccessful in recent attempts to invalidate four of
Kymab's US patents covering genetically modified mice and the human
antibody therapeutics produced from these mice.
Seedrs: Identified as the UK's most active investor
In January 2020, Seedrs released its 2019 Year In Review which
reported a 49% growth in investment from 2018, with a record GBP283
million invested into pitches on the platform. This investment
coming in from 78 different countries with 250 deals completed
across the year, up from 186 in 2018. During the year, Seedrs also
launched two industry-firsts - its EIS100 Fund which offers
investors passive exposure to the venture capital asset class at
scale, and secondly the first-ever in-app investment opportunity
for an early-stage company, through a new partnership with
London-based firm Oval Money.
In February 2020, following the release of Beauhurst's The Deal
2019 Report mapping equity investments in the UK, Seedrs was
identified as UK's most active investor in 2019, including
facilitating the highest number of deals in three out of four
categories: venture, growth and established businesses.
In May 2020, Seedrs announced its most successful secondary
market trading update and the launch of its streamlined service in
support of the UK governments' Future Fund scheme.
Reaction Engines: Begins production of PPE components for
frontline NHS and healthcare workers
In April 2020, Reaction Engines announced that as part of a
UK-wide initiative it had begun utilising its 3D printing
facilities for production of components for protective face shields
for frontline NHS and healthcare workers. Reaction Engines is in
the fortunate position of being able to offer support as it uses
additive manufacturing methods in various components for SABRE and
has clean-room production facilities. Using six 3D printers, a team
of volunteers will be printing two important components of the face
shield; the headband and the bottom reinforcement. The components
will be packaged and shipped to a local hub where they will be
assembled into full protective face shields and distributed
directly to frontline healthcare workers.
Federated Wireless: Announced commercial agreements with
Microsoft Azure and Amazon Web Services, extension of its Spectrum
Controller platform to enable spectrum sharing in the 6 GHz band
and additional Series C funding
In February 2020, Federated Wireless announced significant
commercial partnerships with both Microsoft Azure Marketplace and
Amazon Web Services. Both partnerships relate to Federated
Wireless' new Connectivity-as-a-Service offering that lets U.S.
enterprises buy and deploy private 4G and 5G networks with a single
click through the Microsoft Azure Marketplace. An end-to-end
managed service provided by Federated Wireless which includes
discovery, planning, design, build, operation and support, enabling
enterprises to reap the benefits of 5G with minimum risk and
capital expenditure .
In April 2020, the company also announced it had extended its
Spectrum Controller platform to enable spectrum sharing in the 6
GHz band, allowing operators and enterprises to accelerate delivery
of Wi-Fi 6 and 5G services. Named an automated frequency controller
(AFC) by the FCC, the new Spectrum Controller functionality is
currently deployed in trials and is expected to be available for
commercial use by the end of 2020.
Finally, post 31 March 2020, Federated Wireless confirmed that
it had secured $13.7 million in additional Series C funding from
existing investors Allied Minds and Pennant Investors - funding
which will be used to accelerate expansion and adoption of the
company's partnership with Amazon Web Services and Microsoft Azure
to offer Connectivity-as-a-Service, announced in February.
AMO Pharma: Announced initiation of planned pivotal clinical
trial for Myotonic Dystrophy following $35 million fundraise
In January 2020, AMO Pharma announced the initiation of patient
enrollment in the company's planned pivotal clinical trial for
AMO-02 in the treatment of congenital myotonic dystrophy. This
follows completion of discussions on the design and outcomes
measures of the trial with regulators and AMO Pharma's successful
execution of a $35 million financing with new investors.
The AMO-02 clinical trial is a double-blind placebo controlled
randomised study in children and adolescents with congenital onset
myotonic dystrophy intended to support a future submission for
marketing authorisation in congenital myotonic dystrophy. The trial
is being conducted at ten treatment centres across Canada, the US
and the UK and plans to enroll a total of 56 patients. Patients
will be assessed on a range of measures of CNS features and muscle
function associated with congenital myotonic dystrophy.
Enquiries:
Schroder Investment Management Limited
Benjamin Hanley (Company Secretary) 0207 658 3847
Estelle Bibby (Press) 0207 658 3431
LEI: 2138008X94M7OVE73I77
This announcement contains Inside Information as defined under
the Market Abuse Regulation (EU) No. 596/2014.
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END
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