TIDMVELA
RNS Number : 5994F
Vela Technologies PLC
08 November 2022
8 November 2022
Vela Technologies plc
("Vela" or "the Company")
Quarterly Investment Update
The Board of Vela (AIM:VELA), an AIM-quoted investing company
focused on early-stage and pre-IPO disruptive technology
investments, is pleased to provide an update for the quarter ended
30 September 2022.
Key numbers as at 30 September 2022:
-- Net assets per share at 30 September were 0.039p (30 June 2022 - 0.041p).
-- Vela's portfolio comprised a total of 13 active investments
(30 June 2022 - 13). Two of these investments were unquoted, ten
were quoted, and the final investment was the interest in future
royalties from the Covid-19 remedy being developed by St George's
Street Capital ('SGSC') (which is held in the balance sheet as a
financial asset).
-- The fair value of the investment portfolio was GBP5,808,000 (30 June 2022 - GBP5,972,000).
-- The change in the value of the investment portfolio reflects
disposals of investments valued at GBP89,000 at 30 June 2022
(generating profits of GBP35,000) and a net decrease in the fair
value of the remaining investments of GBP75,000.
-- Vela had cash balances totalling GBP505,000 as at 30
September 2022 (30 June 2022 - GBP631,000).
The figures contained within this quarterly investment update at
30 September 2022 and 30 June 2022 are taken from unaudited
management information.
Investments traded on a recognised stock market are valued using
the accounting policies outlined in the notes to the annual
financial statements. Unlisted investments and other financial
assets are stated at the values attributed to them in the audited
balance sheet as at 31 March 2022, unless there has been a
transaction since that date which suggests a materially different
valuation.
Key developments in the quarter:
-- The Board provided a strategic update on 2 September 2022
outlining its plans for future investments and confirming the
reinstatement of its previous strategy under which the Company will
consider, inter alia, larger corporate transactions. Full details
are noted in Vela's announcement dated 2 September 2022 and, as
stated by Vela in this announcement, the position remains that Vela
has not engaged in discussions on any potential transactions of
this type.
-- Final audited results for the year ended 31 March 2022 were
published on 28 September 2022.
-- Vela sold 50,000 shares in Cornerstone FS PLC
("Cornerstone"), 25,000 shares in Northcoders Group plc
("Northcoders") and 60,000 shares in EnSilica plc ("EnSilica") for
aggregate cash proceeds of GBP124,000.
Key developments in investee companies in the quarter:
-- On 6 July IamFire plc announced that it had acquired, from
Community Social Investment Limited (formerly WeShop Limited) for
GBP250,000, an option to subscribe for convertible loan notes in
WeShop Holdings Limited (formerly Boanerges Limited). Further
details are noted in Vela's announcement dated 6 July 2022.
-- On 3 August EnSilica announced a trading update for the year
ended 31 May 2022. EnSilica reported that both revenue and adjusted
EBITDA were expected to be ahead of market expectations for the
period. EnSilica subsequently released its full year results on 17
October 2022.
-- On 9 August Northcoders announced that it had secured GBP4
million of funding from the Department of Education Skills
Bootcamp. This funding will enable Northcoders to provide training
scholarships on its market-leading coding bootcamp.
-- On 25 August Rural Broadband Solutions PLC announced that
Stiperstones and Woolston in Shropshire were the first locations to
have fibre-to-the-premises (FTTP) technology rolled out.
-- On 6 September EnSilica announced it had entered into a
contract for a significant industrial ASIC supply project with a
leading European industrial OEM. The forecast contract value is
worth in excess of US$30 million over seven years.
-- On 20 September Northcoders published its interim results for
the six months ended 30 June 2022. These interim results showed
revenue more than doubling compared to the prior comparative
period. Northcoders also announced that it remained on track to
deliver full year targets, with Q3 2022 trading continuing at
record levels.
-- On 27 September Cornerstone announced unaudited results for
the six months ended 30 June 2022 which showed significant growth
in revenue and an expansion of operations.
Developments since 30 September 2022:
-- On 25 October the Company held its 2022 AGM. All resolutions
put to shareholders were passed.
Investment portfolio
At 30 September 2022 the Company's portfolio of investments was
valued at GBP5,808,000 and comprised equity or loan interests in
the following 13 companies:
-- Community Social Investment Limited (formerly WeShop Limited)
-- Cornerstone FS PLC
-- Aeristech Limited
-- EnSilica plc
-- Igraine PLC
-- Kanabo Group Plc
-- MTI Wireless Edge Ltd.
-- Mode Global Holdings plc
-- Rural Broadband Solutions PLC
-- Northcoders Group plc
-- Skillcast Group plc
-- St George Street Capital Limited
-- TruSpine Technologies plc
The Company also holds a legacy investment in an unquoted
company, being DTL (UK) Limited (formerly Disruptive Tech Limited),
the value of which was written down to zero some years ago and
which continues to be ascribed no value.
Since the publication of the last quarterly update on 22 July
2022, the Board of Vela has met with the boards of the following
investee companies:
-- Aeristech Limited
-- Cornerstone FS PLC
-- EnSilica plc
-- Igraine PLC
-- Skillcast Group plc
Executive Director, James Normand commented:
"Along with the stock market as a whole, valuations in the
Company's quoted investment portfolio have drifted lower during the
quarter. The Board remains of the view that such depressed
valuations are unjustifiably low and therefore considers there to
be good opportunities for future gains."
For further information, please contact:
Vela Technologies plc Tel: +44 (0) 7410
Brent Fitzpatrick, Non-Executive Chairman 886830
James Normand, Executive Director
Allenby Capital Limited (Nominated Adviser) Tel: +44 (0) 20
3328 5656
Nick Athanas / Piers Shimwell
Peterhouse Capital Limited (Broker) Tel: +44 (0) 20
7469 0930
Lucy Williams / Duncan Vasey / Eran Zucker
Novus Communications (PR and IR Adviser) Tel: +44 (0) 20
7448 9839
Alan Green / Jacqueline Briscoe
About Vela Technologies
Vela Technologies plc (AIM: VELA) is an investing company
focused on early stage and pre-IPO long term disruptive technology
investments. Vela's investee companies have either developed ways
of utilising technology or are developing technology with a view to
disrupting the businesses or sector in which they operate. Vela
Technologies will also invest in already-listed companies where
valuations offer additional opportunities.
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