TIDMGROW
RNS Number : 7183B
Draper Esprit PLC
14 June 2021
Draper Esprit PLC
14 June 2021
Draper Esprit plc
("Draper Esprit", "the Group" or the "Company")
FINAL RESULTS FOR THE YEARED 31 MARCH 2021
Draper Esprit (LSE: GROW, Euronext Growth: GRW), a leading
venture capital firm investing in and developing high growth
digital technology businesses, today announces its final results
for the year ended 31 March 2021.
Financial highlights
-- Gross Portfolio Value of GBP984m (31 March 2020: GBP703m).
-- GBP206m of cash realisations (year to 31 March 2020: GBP40m).
-- 51% Gross Portfolio Value fair value growth (year to 31 March 2020: 10%).
-- GBP128m invested, and a further GBP34m from EIS/VCT funds
(year to 31 March 2020: GBP90m and GBP38m from EIS/VCT funds).
-- NAV per share of 743p (31 March 2020: 555p).
-- Net assets of GBP1,033m (31 March 2020: GBP660m).
-- GBP161m available Plc cash, as well as GBP43m available from
EIS/VCT funds. (31 March 2020: GBP34m, with c.GBP50m from EIS/VCT
funds).
-- GBP107m net funds raised during the financial year.
-- GBP267m profit after tax (year to 31 March 2020: GBP40m).
-- <1% operating costs (net of fee income) as a percentage of NAV.
Some of the measures above are Alternative Performance Measures
('APMs') - see Note 29 of the Annual Report for further
details.
Operational highlights
-- Significant cash proceeds of GBP206m received during the year
from realisations (full and partial) and escrows, which were
predominantly generated by the exits from Peak Games, TransferWise
and Decibel, and the partial disposals of Trustpilot and
UiPath.
-- Invested GBP128m in the year, increasing the investment
cadence in H2 with GBP96m of investments made.
-- Invested into 9 new companies (as well as 3 new via
Earlybird) and 18 existing companies (as well as 3 via
Earlybird)*.
-- Committed to 15 new seed funds via our seed fund of funds
programme, bringing the overall seed fund of funds portfolio to 35
funds.
-- Acquisition in February 2021 of the shares not previously
owned in Elderstreet Holdings Limited, holding company of
Elderstreet Investments Limited which is manager of Draper Esprit
VCT funds, further scaling the Group.
-- Continued to build the infrastructure for scaling, welcoming
six new team members into the Partnership and Platform teams that
support the investment function.
-- Continued to progress our ESG roadmap, including approval of
our ESG Policy, assessment of our portfolio against the UN
Sustainable Development Goals and development of ESG KPIs.
Post year-end
-- Increased and extended our revolving credit facility with SVB
and Investec by an additional one year from GBP60m to GBP65m.
-- Invested a further GBP48m post year-end to 11 June 2021,
including investments into Manna, FintechOS, Cervest, Ledger, and
Lyst.
-- Refreshed fund of funds programme, with the approval by the
Board and Investment Committee of an additional GBP75.0 million
investment budget. Commitments deployed over 5 years.
*Reporting threshold for Earlybird of GBP1m.
Martin Davis, CEO at Draper Esprit, commented:
"Our financial year and my first full year as CEO demonstrated
the strength and flexibility of the Draper Esprit model in market
conditions at two extremes. Despite market shock in the first half,
our scale and maturity gave us room to focus on the needs of our
portfolio companies and structuring ourselves for growth. Our close
relationship to our portfolio and industry insight enabled us to
accelerate into the digital transformation catalysed by the
pandemic. Our investment team increased its cadence in the second
half, deploying significant funds into existing portfolio companies
and new, as intended when we raised equity in October. We look to
the future with confidence that our model positions us well for
opportunities in a transformed world. In line with the growth and
maturity of the business, our intention is to move our listing to
the Premium Segment of the Official List and to trading on the
London Stock Exchange's Main Market as well as to the secondary
listing segment of the Official List of Euronext Dublin and to
trading on the regulated market of Euronext Dublin. Preparations to
transfer our listing are well advanced and we expect to complete
the move within the next couple of months."
Availability of Annual Report and Notice of AGM
The Annual Report and Accounts for the financial year ended 31
March will be available today on Draper Esprit's website at
http://draperesprit.com/ . The notice of the Annual General Meeting
("AGM") of Draper Esprit to be sent separately.
-s-
Enquiries
Draper Esprit plc
Martin Davis (Chief Executive
Officer)
Ben Wilkinson (Chief Financial
Officer) +44 (0)20 7931 8800
Numis Securities
Nominated Adviser & Joint Broker
Simon Willis
Richard Thomas
Jamie Loughborough +44 (0)20 7260 1000
Goodbody Stockbrokers
Euronext Growth Adviser & Joint
Broker
Don Harrington
Charlotte Craigie
Linda Clarke +44 (0) 20 3841 6202
Powerscourt
Public relations +44 (0)7970 246 725
Elly Williamson /
Jane Glover +44 (0)7961 628 862
If you would like to access the 0900 results presentation,
please contact Powerscourt at draperesprit@powerscourt-group.com
for dial in details.
About Draper Esprit
Draper Esprit is one of the most active venture capital firms in
Europe, investing in disruptive, high growth technology companies.
We believe the best entrepreneurs in Europe are capable of building
the global businesses of the future. We fuel their growth with
long-term capital, access to international networks and decades of
experience building businesses.
Currently, Draper Esprit is a shareholder in a diverse portfolio
of 71 companies with 17 of those part of our core portfolio which
accounts for over 68% of our holdings. Our core companies include
Graphcore, UiPath, Trustpilot, Aiven, Ledger, Lyst, Cazoo,
Ravenpack, M-files, Smava, Aircall, Revolut, Freetrade, Perkbox,
Thought Machine, Endomag, and SportPursuit. We invest across four
sectors: Consumer Technology, Enterprise Technology, Hardware and
Deeptech, and Digital Health and Wellness, with highly experienced
partners constantly looking for new opportunities in each. We look
for high-growth companies with strong IP, powerful technology, and
the management teams to deliver success. They operate in new
markets, with serious potential for global expansion. We also look
for businesses with the potential to generate strong margins to
ensure rapid, sustainable growth in substantial addressable
markets.
Draper Esprit provides an opportunity for public market
investors to access these fast-growing tech businesses, without
having to commit to long term investments with limited liquidity.
Since IPO in June 2016, we have deployed circa GBP550m+ capital
into fast growing technology companies and have realised over
GBP300m. In October 2020 we raised gross proceeds of circa GBP110m
to help us
capitalise on a European VC market which is expanding rapidly
but is still less than one quarter of the combined size of the US
and European market by value. It will also allow us to capitalise
on the transition to a digital future that has been given added
impetus as a result of the recent pandemic.
For more information, go to https://draperesprit.com/
Chair's introduction
Financial Year 2021 has been unprecedented on a global basis for
society, for all businesses and for the technology sector. The
challenges of Brexit and the uncertainties of the US election seem
insignificant compared with the global Coronavirus pandemic.
Looking back over the last 12 months, I don't think anyone would
have predicted the pandemic's longevity and far-reaching impact nor
the role technology has played in driving digital transformation,
creating new opportunities, sustaining the economy and supporting
people through successive lockdowns.
I am delighted by the way the team at Draper Esprit managed
through these challenging times, accelerating the investment
cadence, supporting our portfolio and continuing to improve and
strengthen our approach to making investments. At times like these,
small gestures and tokens of support for our community make a big
difference as well as the determination to continue in "business as
usual" mode as much as possible. I was delighted to receive a
comforting bar of chocolate by post from Draper Esprit (thank you,
Stuart) early on in the first lockdown and even more thrilled to
see our annual Investor Day go ahead in early 2021, using the
digital events platform provided by one of our portfolio companies,
Hopin.
The team has made a number of investments in exciting new
companies including Cazoo, Ravelin, PrimaryBid, CoachHub,
Riverlane, Focal Point, and Agora and supported some of our other
portfolio companies such as Peak Games, Trustpilot, Decibel, and
UiPath through major financial milestones. In terms of business
performance, we have had an exceptional year with a 51% increase in
Gross Portfolio fair value. While the technology market remains
buoyant, we continue to search for high quality and exciting
investment opportunities with the highest potential to shape the
future.
During the year, one of our two founders, Simon Cook, moved to
the West Coast of Canada and while he continues as a member and
supporter of the extended Draper Esprit family, he will no longer
be an active contributor on a day-to-day basis. We will miss
Simon's vision, drive and creativity, and wish him every success.
Stuart Chapman, our other founder continues to be a member of our
Board and our Chief Portfolio Officer, a sounding board and mentor
to newer members of the team and to the portfolio companies he
works with.
FY2021 represents Martin Davis' first full year as CEO; a year
of outstanding performance but also a year in which Martin has been
laying the foundations for further sustainable growth. During the
year we have fully integrated the EIS fund, Encore Ventures, and
the VCT fund, Elderstreet Investments. We are pleased to welcome
both teams and to be able to work and co--invest more seamlessly
together.
Among many other activities, Ben Wilkinson has sponsored the
Company's increasing focus on sustainability, which is also
becoming an even more critical part of what Draper Esprit offers to
companies and investors. We are committed to contributing towards a
future that is sustainable, fair, and accessible.
In line with the growth and maturity of the business, our
intention is to move our listing to the Premium Segment of the
Official List and to trading on the London Stock Exchange's Main
Market as well as to the secondary listing segment of the Official
List of Euronext Dublin and to trading on the regulated market of
Euronext Dublin. The Board believes the Company has grown and
matured since IPO and that the Main Market is the most appropriate
platform for the Company's future development. It is hoped that
this will further raise Draper Esprit's profile, as well as
potentially increase liquidity and enable its shares to be acquired
by a wider group of investors.
In preparation for a Main Market listing, we are looking for
additional Non-Executive Board Members to strengthen our team and
bring more diversity of thought and experience to the Board.
It is almost exactly five years since Draper Esprit listed on
AIM. The Company's scale, its sustained record of delivering growth
even through times as uncertain as this year and the impressive
maturity of many of the businesses in the portfolio reflect the
firm belief that the listed VC model works well both for
shareholders and our investee companies.
Karen Slatford
Chair
CEO's statement
Overview
The period under review was my first full year as CEO and an
unprecedented year for the world in that it saw the first global
pandemic of the digitally-connected age.
The challenges and the opportunities brought by the pandemic
have, by now, been well covered. We took early steps to implement
measures to safeguard employees and ensure increased dialogue with
portfolio companies but the real story for us was one of
opportunity and acceleration, as we predicted in last year's annual
report. We continued to perform well because of the accelerated
transition to digital, something our portfolio companies foresaw,
and our investment strategy enabled. This led to new investment
opportunities as well as opportunities for companies within our
existing portfolio to succeed.
Our structure provided us with a stable foundation during a year
of uncertainty and we are proud of our strong financial performance
across all our key measures.
I joined a highly successful business with a proven track record
and have focused in the year on developing and further implementing
our ambitious strategy to scale and evolve the business. We are
intent on backing entrepreneurs to invent the future by
accelerating our support to UK and European high--growth technology
businesses in need of longer-term investment via our balance sheet
and growing our third-party funds alongside the growth in the Plc
balance sheet, which we have continued to build during the
year.
We have increased our funding capacity and continued to build
the infrastructure required to grow while maintaining the integrity
of the investment process and our ability to support our portfolio
companies as they scale. We have developed a platform that offers
exposure across the Venture Capital value chain, including
early-stage funds, direct investments, and via other investment
vehicles and have broadened this further during the year.
We all now hope that an end to the pandemic is in sight and we
see no cause for our likely gradual emergence from Covid-19
restrictions into a changed world to alter the fundamental dynamics
of our growth. Companies in our existing and emerging portfolio
have benefited from the accelerated transition to digital and we
anticipate this structural shift will continue as global economies
emerge into the post-Covid-19 environment.
Operating review
Our vision is to be the VC of choice for the visionaries
inventing our future. Our funding enables entrepreneurs from high
growth digital technology businesses to build their companies. Our
investment platform also provides the support needed over and above
the capital invested, including board representation and access to
a high-quality network of specialists.
For investors, that means access to high-growth, privately owned
technology companies as we continue on our mission to expand access
to venture capital.
We made significant strides in building and developing the
infrastructure for growth. As at 31 March, the Group manages GBP1.3
billion of assets (including third party funds), which provides us
with a strong and scalable platform. Of these Assets Under
Management ('AUM'), GBP294.6 million relates to AUM from third
party funds. Our co-investment strategy allows us to lead more
deals and increase the total size of investment in portfolio
companies. Draper Esprit is building multiple investment strategies
(seed funds, series A and growth) to increase third party AUM and
fee income alongside the growth of the Company balance sheet.
During the year, we also continued to rationalise our EIS and
VCT business with our acquisition of the manager of Draper Esprit
VCT Plc, Elderstreet Investments Limited, in February 2021.
We have continued to build and bed in our internal dual
platform, Partnership team and Platform team as introduced in last
year's annual report, to put in place the resource to support our
continued growth.
The Partnership team, which focuses on deals, portfolio
companies and their founders, has continued to grow with a new
principal, Dr Inga Deakin, joining in the year and Will Turner
joining at the start of the financial year as a Managing Partner,
Growth. We now have seven partners and principals with varying
specialisms across our four key sectors of consumer technology,
enterprise technology, digital health & wellness, and hardware
& deeptech.
The Platform team, which focuses on supporting deal flow and
collaborating with the entrepreneur community, other investors, and
the wider ecosystem, grew across the three segments of Marketing,
Deal Execution and Dealflow. We welcomed three new team members to
Dealflow, in addition to Robby Glass, Legal Counsel to Deal
Execution, and James Clark as Marketing Director.
We also continued to progress with our Environmental, Social
& Governance ('ESG') roadmap, as set out in more detail below.
We see ESG and sustainability as a journey, and aim to ensure that
our learnings along the way benefit our portfolio companies, our
investors and our wider community and stakeholders.
Financial performance
We are proud of our strong financial performance across all our
key measures: fair value growth; cash realisations; investments;
and available capital resources.
Fair value growth
We achieved Gross Portfolio fair value growth of GBP359.2
million. This increase in fair value of the gross portfolio of 51%
is significant relative to the targeted 20% gross portfolio returns
through the cycle.
Cash realisations and available capital resources
During the period, we generated GBP206.3 million of cash through
realisations. This included the disposals of Decibel, Transferwise
and Stripe, and via our partnership with Earlybird, the disposals
of Peak Games, Social bakers, NFON, Ubitricity and the partial
disposals of Trustpilot and UiPath.
We ended the year with a strong cash position following these
realisations and our oversubscribed October placing, which raised
GBP110.0 million (gross). At 31 March 2021, we had GBP160.7 million
of Draper Esprit Plc cash (including restricted cash of GBP2.3
million), along with GBP42.6 million of EIS/VCT fund cash, and
GBP60.0 million of undrawn debt from our revolving credit facility.
This provides us with the ability to continue to increase our
investment cadence and take advantage of the enhanced near-term
investment opportunities we see.
Investments
We expressed our intention at the time of our October placing to
increase deployment to c.GBP120.0 million per annum to capture a
greater share of the technology investment opportunities we see. We
have already exceeded the targeted rate having invested GBP128.0
million overall, with an increase from GBP32.3 million deployed in
the first half to GBP95.7 million in the second. This breaks down
as GBP51.1 million for new companies, GBP34.1 million for existing
companies, GBP30.5 million for Earlybird drawdowns, and GBP12.3
million for fund of funds drawdowns. A further GBP33.8 million was
invested via the EIS/VCT funds during the year.
Sustainability
During the year, we continued to progress with our ESG roadmap.
We recognise the importance of focus on ESG at all levels and
continue to monitor progress at the Board.
Our activities during the year included the approval by the
Board of our ESG Policy, which includes a target set of ESG
standards for our portfolio companies, the introduction of our
updated investment checklist including ESG risk assessment, ESG
training for the investment team, mapping the portfolio to the UN
Sustainable Development Goals, and the first submission of UN PRI
reporting. We continue into the new financial year with our carbon
reduction/balancing, TCFD and diversity projects. Please see
further details in the Sustainability section on pages 60-70 of the
Annual Report.
Summary and opportunity
We have used the year to further scale our AUM and further
develop our infrastructure, teams, and processes. This positions us
well for the enhanced near-term investment opportunities we see on
many fronts. These include:
-- direct follow-on opportunities which we have already
identified within our core and emerging companies and new deal flow
beyond our portfolio;
-- larger rounds as European technology companies continue to
mirror US investment trends, which we can lead more often thanks to
our balance sheet and co-investment structure;
-- a potential growth fund for growth stage (Series B+)
dealflow, using third-party funds alongside our own to provide a
greater ability to lead deals and secure influence and
allocation;
-- the next Earlybird fund, Earlybird Fund VII, which will
continue to target Series A investments in Germany and other parts
of continental Europe; and
-- our Fund of Funds programme, which also allows us to identify
potential dealflow opportunities from within seed stage
portfolios.
Outlook
While remaining mindful of continuing uncertainty in the
environment in which we operate due to the ongoing Covid-19
pandemic, we look positively to the new financial year and
anticipate increasing our investment cadence to over GBP150.0
million per annum, continuing to build our model, including with
third-party funding, further enhancing our dealflow processes and
continuing to build our team. We target 20% fair value growth
through the cycle and, given the higher growth this year, our
target for the coming financial year will be 15%.
The market for technology companies has certainly been buoyant
this year and we apply a degree of caution to the anticipated
growth for the coming year. However, our model has proven to be
resilient across market environments and we see further opportunity
to scale the business. In line with the growth and maturity of the
business, our intention is to move our listing to the Premium
Segment of the Official List and to trading on the London Stock
Exchange's Main Market as well as to the secondary listing segment
of the Official List of Euronext Dublin and to trading on the
regulated market of Euronext Dublin. Preparations to transfer our
listing are well advanced and we expect to complete the move within
the next couple of months.
Portfolio review
During the year
During the year, we have continued with our objective to deploy
further capital by backing the identified growth opportunities in
the existing portfolio and by leading rounds in exciting
high--growth technology companies, with investments of GBP128.0
million from Plc (increasing our cadence in the second half of the
year following H1 investments of GBP32.3 million), as well as
investments from EIS/VCT funds of GBP33.8 million. This enhanced
level of investment has continued into the new financial year. The
year to 31 March 2021 delivered a record year in capital returned
through exits, with cash received from realisations in the year
amounting to GBP206.3 million. The accelerated transition to
digital has increased the opportunity set for both investments and
realisations as the pace of disruption in global economies is
amplified.
Portfolio
The Gross Portfolio Value (gross value of the Group's investment
holding before deductions for carry and deferred tax) is GBP983.8
million (31 March 2020: GBP702.9 million). Movements in the year
result from cash proceeds of GBP206.3 million received from
realisations (reducing the size of the portfolio), investments made
of GBP128.0 million, and a gross fair value movement of GBP359.2
million. The Gross Portfolio Value Table in the Financial Review
below provides further detail on the movements in the
portfolio.
Our core portfolio of 17 companies represents 68% of our Gross
Portfolio Value. Our core holdings at 31 March 2021 are Graphcore,
Trustpilot, Smava, Perkbox, M-Files, Ledger, RavenPack, UiPath,
Revolut, Aircall, Thought Machine, Aiven, Sportpursuit and Cazoo as
well as new companies moving into the core, Lyst, Endomag, and
Freetrade. ICEYE was in the core at 30 September 2020, but has
fallen below the threshold at 31 March 2021 for inclusion. The
threshold is defined as the largest company holdings that represent
approximately 70% of our Gross Portfolio Value.
Investments
Continued application of our strategy of accelerating capital
deployment into high-growth opportunities in our existing portfolio
and securing exciting new investment opportunities is demonstrated
with total investments in the year of GBP128.0 million, up from
GBP89.9 million in the year to 31 March 2020. GBP51.1 million was
invested into primary deals, GBP34.1 million as follow-ons into
existing companies, GBP12.3 million was drawn down as part of our
seed fund of funds programme, and GBP30.5 million was invested into
new and existing Earlybird funds.
New investments
We have invested GBP51.1 million from Draper Esprit Plc into the
following new companies during the year:
-- CoachHub: Draper Esprit was lead investor into the December
2020 US$30.0 million round in digital coaching platform, CoachHub,
with an investment from Plc of GBP12.4 million.
-- Unannounced: Draper Esprit Plc invested GBP10.8 million into
the Series B of an unannounced intelligent process automation
platform.
-- Cazoo: Draper Esprit Plc invested GBP10.0 million during the
year in British digital used car marketplace, Cazoo, as part of the
company's GBP25.0 million second close of their Series C funding
round and subsequently as part of their GBP240.0 million Series D
round.
-- Riverlane: Draper Esprit Plc led a US$20.0 million Series A
investment round in Riverlane, the ground-breaking quantum
computing software specialist. Plc invested GBP5.1 million, with a
further GBP3.9 million invested from the EIS/VCT funds.
-- Hopin: Draper Esprit Plc invested GBP4.4 million into
Seedcamp SPV (a fund that invested in Hopin's Series B round in
December 2020). Hopin is a virtual venue for live online
events.
-- Focal Point: Draper Esprit Plc invested GBP3.4 million, with
further amounts expected to be invested in the second close from
the Group, as sole investor into Focal Point, the deep-tech company
revolutionising the accuracy of GPS and other global satellite
positioning systems (GNSS).
-- PrimaryBid: Draper Esprit co-led the US$50.0 million Series B
fundraising by PrimaryBid, a technology platform that allows retail
investors fair access to public companies raising capital. Plc has
invested GBP5.4 million, of which GBP3.1 million was paid post
year-end, with a further GBP4.0 million from EIS/VCT funds.
-- AGORA: In December 2020, Draper Esprit led a GBP5 million
investment round in AGORA, a London-based startup disrupting the
beauty industry through social commerce, with GBP1.5 million
invested from Plc.
-- Ravelin: Draper Esprit led a US$20.0 million Series C
investment round in Ravelin, a fraud detection company, investing
GBP1.1 million. Ravelin has pioneered the use of machine learning
and graph network technologies to help online businesses accept
more payments with confidence. Further investments were also made
from the EIS/VCT funds.
Follow-ons
We invested GBP34.1 million from Draper Esprit Plc into existing
companies in the year, including the following over GBP1.0
million::
-- Graphcore: Draper Esprit participated with a GBP10.3 million
investment in a Series E funding round in Graphcore, maker of the
Intelligence Processing Unit ("IPU"), which raised a total of
US$222.0 million.
-- Endomag: Draper Esprit led a round with a GBP12.3 million
investment (GBP7.0 million from Plc and GBP5.3 million from EIS/VCT
funds) into existing portfolio company Endomag, a breast cancer
market leader.
-- Freetrade: Draper Esprit participated in a US$69.0 million
Series B fundraising round for existing portfolio company,
Freetrade with an investment of GBP4.0 million.
-- Push Doctor: Draper Esprit Plc invested GBP3.4 million into
Push Doctor, as well as GBP1.2 million from EIS/VCT funds. Push
Doctor provides online doctor and prescription services in the
UK.
-- Form3: GBP1.6 million was invested by Draper Esprit Plc in
the year into leading cloud-native payment and technology provider
for banks and regulated fintechs, Form3, as well as a further
GBP3.0 million from EIS/VCT funds.
-- M-files: Draper Esprit participated in an US$80.0 million
investment round in portfolio company M-Files, with a GBP1.5
million investment. M-Files is an intelligent information
management company that is using AI technologies in its proprietary
Intelligent Metadata Layer.
-- Pollen: GBP1.3 million was invested from Draper Esprit Plc
and a further GBP1.0 million from EIS/VCT funds into Pollen
(formerly Verve), an invite-only marketplace that makes it easy to
invite friends to exclusive experiences and share rewards.
-- Hadean: GBP1.0 million was invested from Plc into deep tech
software business, Hadean, during the year. Hadean is focused on
enabling distributed computing at a massive scale.
Fund of funds
Following our commitment to two new seed funds during the first
half of the year, we committed to a further 13 funds in H2,
bringing our overall commitments to 35 seed funds at 31 March 2021.
Our commitment to these funds allows us to provide investors with
access to earlier stage companies and provide support to seed stage
companies, as well as giving Draper Esprit enhanced dealflow and
numerous specialisms throughout across Europe. New portfolio
companies in the year, Cazoo and Hopin, received seed investment
from seed funds within our programme, Stride as well as Seedcamp IV
and Amaranthine respectively.
New fund commitments during the year have included a mix of
regional champions, such as Icebreaker II with a focus on investing
in the Nordics and Draper B1 with a focus on Spanish startups, as
well as thesis-driven managers, such as Atelier, with a focus on
passion economy, and Quatonation, with a focus on quantum
computing. We have further supported our existing fund managers by
investing in their latest funds, for example in Seaya Ventures III,
Icebreaker II, Stride II, Seedcamp V, and Amaranthine fund II. Our
seed fund of funds programme includes several impact or sustainable
funds, including new funds committed to in the year, which we
discuss in more detail in our Sustainability section on pages 60-70
of the Annual Report.
At 31 March 2021, we have committed a total of GBP67.2 million
(converted at year-end exchange rates) to our 35 seed fund of funds
investments. GBP25.5 million of these commitments have been drawn
as at 31 March 2021, GBP12.3 million of which was drawn within the
year. We expect remaining commitments to be drawn over the coming
five to eight years. Post year-end a further GBP75.0 million
investment budget was approved by the Board and Investment
Committee.
Earlybird
We invested GBP30.5 million into our partnership with Earlybird
during the year into existing and new funds, such as Earlybird Fund
VII.
Via our investment in Earlybird fund VI, we invested in a range
of companies during the year, including Conny GmbH (ex LexFox
GmbH), a Legal Tech company that enforces consumer rights across
multiple verticals, Curio Labs Limited, which is building a global
platform for curated journalism, consumed over audio, and the
high-tech startup that has developed game--changing technology for
synthetic data, Mostly AI.
We also invested further amounts into existing portfolio
companies via our partnership with Earlybird Fund VI, including
Isar aerospace, Get Safe, and fintech company, Bitwala.
Realisations
During the year, we received cash proceeds (including escrows
from previous realisations) of GBP206.3 million, including the
proceeds from the realisations of Peak Games, TransferWise and
Decibel, as well as partial realisations of Trustpilot and UiPath
(pre-IPO secondary sale). These proceeds also included escrow
releases from previous realisations of Clavis and Podpoint, as well
as disposals of Stripe and, via our partnership with Earlybird,
Social Bakers, NFON, and Ubitricity.
We announced our disposal of Peak Games in June 2020, following
the acquisition by Zynga Inc for US$1.8 billion, comprised of
approx. US$900.0 million in cash and approx. US$900.0 million of
Zynga common stock. Draper Esprit received the cash tranche and
forward sold the majority of the share tranche. The multiple on
exit for the Peak Games realisation was 3.5x.
Draper Esprit Plc sold its remaining share in TransferWise in
July 2020 in a secondary transaction at an equity value of US$5.0
billion. The multiple on exit for the TransferWise realisation was
3.1x.
In March, Medallia announced that it had agreed to acquire
Decibel, a digital experience analytics solution, for $160 million
in an all cash deal. This acquisition represented a fair value
uplift of GBP4 million from September 2020, resulting in a return
of GBP14 million (including anticipated escrow to be received),
with a 1.4x multiple on invested capital.
As part of Trustpilot's IPO, in March 2021, Plc sold down part
of its holding in the leading global review platform, generating
proceeds during the year of GBP75.5 million with a 5.3x multiple on
invested capital for the realised tranche at the IPO offer price of
265p. At 31 March 2021, we continued to hold 7.9% of Trustpilot
shares subject to a customary 180-day lock-up period from the date
of admission in line with other institutional investors in the
company.
Core company updates
Graphcore
Graphcore, the machine intelligence semi-conductor company,
develops IPUs (Intelligent Processing Units) which enable
unprecedented levels of compute.
In December 2020, Graphcore raised US$222.0 million in its
Series E funding round led by Ontario Teachers' Pensions Plan Board
which also added funds managed by Fidelity International and
Schroders as new investors. Also participating in this round were
existing Graphcore investors, including Draper Esprit and Baillie
Gifford. This investment brings the total funds raised by Graphcore
to more than US$710.0 million.
Major updates were released for the Poplar v1.4 analysis tool
including 30 new features to the Popvision graph analyser.
Graphcore released SDK 1.3, which includes new optimisations and
improvements to help developers run their models faster and more
efficiently. The company also announced the addition of MEGWARE to
its Global Partner Program, which was launched in September 2020.
Graphcore now supports Alibaba Cloud's Open Deep Learning API
(ODLA). Alongside these product developments, the company
participated in research with University of Massachusetts, Amherst,
and Facebook to publish a paper to demonstrate how important
Covid-19 analysis using Approximate Bayesian Computation can be
massively accelerated with IPU processors. The results indicate 30x
speedup on IPUs compared with CPUs and a significant 7.5x speedup
compared with GPUs.
With a new office in Germany and existing offices in Bristol,
London, Cambridge, Palo Alto, Oslo, Beijing, Hsinchu, Seoul, New
York, Seattle, and Austin, the global company continues to scale in
size, increasing to 450+ employees from its previously reported
200+ employees.
GBP24.0m GBP108.8m
Invested Investment valuation
UiPath
Post-year-end in April 2021, UiPath listed on the New York Stock
Exchange under the ticker symbol "PATH", closing at a price to the
public of US$56.00 per share.
In February 2021 the robotic process automation (RPA) company,
raised a US$750m Series F round, co-led by existing investors
Alkeon Capital and Coatue. Other returning investors include
Altimeter Capital, Dragoneer, IVP, Sequoia, Tiger Global, and funds
and accounts advised by T. Rowe Price Associates, Inc.
In the twelve month period ending January 2021, the company
recorded revenues of more than US$607m, which is almost double the
year prior. Over the past year with COVID there has been an
increased demand for skills in the area of RPA.
UiPath has made a number of improvements and advancements like
releasing its App in October 2020, adopting a SaaS-first strategy -
UiPath Automation Cloud, releasing over 100 customer driven
features on its platform, launching its Legal Automation task force
in late 2020, and releasing a virtual streaming solution for
customers. UiPath also enhanced its Business Partner Program to
enable organisations around the world to leverage the power of
hyper automation, and now offers training, certification, and
marketing programs for business partners through the launch of its
UiPath Services Network (USN). The company further announced it
would be working with Deloitte to deliver Deloitte Intelligent
Document Processing (DIDP).
In October 2020, Renzo Taal has joined the company as Senior
Vice President and Managing Director of EMEA. Renzo joins UiPath
from Salesforce, where he held several international roles and most
recently served as Senior Vice President and General Manager of
Asia. UiPath also appointed former VMware and Microsoft Global
Executive, Thomas Hansen to lead worldwide sales.
GBP10.3m GBP100.3m
Invested Investment valuation
Trustpilot
Online global review site, Trustpilot, has detected and stamped
out over 2.2 million fake or harmful reviews in the 2020 calendar
year. Over 120 million consumer reviews of businesses or products
relating to over 530,000 domains have been reviewed on
Trustpilot.
CEO and founder, Peter Mühlmann, announced his Trust Promise in
June 2020 to "fight for trust online." One of the steps taken is
that the platform will now allow all consumer reviews to remain
visible when "flagged" by a business, ensuring that while claims
were investigated, they are still represented. The company also
launched a Transparency report, downloadable on the platform's
website, to explain exactly how it manages and protects the
platform's integrity.
The international company has over 700 employees and is
headquartered in Copenhagen, with operations in London, New York,
Denver, Vilnius, Berlin, Melbourne, and Edinburgh. To support the
company's forward momentum in international growth, Tim Hilpert was
appointed as Chief Operating Officer. For 16 years Hilpert held
various management and leadership positions at the OLX Group &
Ebay.
In November 2020, during the third quarter, the company
surpassed US$100.0 million of revenue. Since it was founded,
Trustpilot has raised US$173.0 million from Sunley House Capital
Management (an affiliate of global private equity firm Advent
International), Vitruvian Partners, Draper Esprit, Index Ventures,
Northzone, and Seed Capital to fuel its mission and growth. The
company has valuable partnerships and integrations with PayPal,
BigCommerce, Yext, Magento, PrestaShop, Shopify, WooCommerce,
Sprinklr, and Zendesk, amongst others. The company listed on the
London Stock Exchange in March 2021 with the ticker TRST.
GBP15.7m GBP85.5m
Invested Investment valuation
Smava
Online lending platform, Smava, provides easy access to the best
conditions for consumer loans from more than 20 banks. The company
is the largest specialised loan marketplace in Germany, providing
access to over EUR3.0 billion a year in loans. In May 2020, the
company secured EUR57.0 million in financing with debt from Kreos
Capital, along with equity from existing investors Earlybird,
Verdane, Vitruvian Partners and Runa Capital.
The platform offers an overview of 70 loan types ranging between
EUR1,000 and EUR120,000 from over 20 banks and lending partners.
Consumers select the loan that suits them and take it out directly.
The company also announced a new partnership with Commerzbank,
Deutsche Bank, and Younited Credit.
GBP14.5m GBP23.8m
Invested Investment valuation
Perkbox
Perkbox is an employee wellbeing platform that provides a unique
employee experience, enriching the personal and working life of
employees. It offers a suite of products including a platform with
access to best-in-class Perks, Recognition, Insights and
Medical.
During the year Perkbox, Europe's fastest growing global
'employee experience' platform, partnered with the global
buy-now-pay-later Fintech, Zip. The partnership will provide
flexible payment solutions on shopping for employees. Perkbox also
secured new partnerships with Action Aid, Dakota Hotel, Igloo
Energy, and Landmark, while existing partners, Gymshark and Krispy
Kreme, have enhanced their benefits. The company appointed
co-founder Gautam Sahgal as CEO, and Saurav Chopra, co-founder,
stepped into a new role of Executive Chairman of the Board.
Ex-Groupon Director, Higor Torchia joined the Perkbox team as Chief
Revenue Officer and Ankur Sharma was hired as VP Product &
Engineering. The two new hires will help to continue Perkbox's
mission to improve the employee experience.
Perkbox offers resources that have become particularly useful in
light of Covid-19. The platform offers online GPs on-demand, online
employee recognition, real-time feedback, and perks like online
shopping discounts, free online fitness classes, and 24/7 online
learning.
GBP14.0m GBP18.6m
Invested Investment valuation
M-Files
Intelligent information management platform, M-Files, organises
customers' content with the ability to connect to existing network
folders and systems and to enhance them with the help of AI to
categorise and protect information. The SaaS business has more than
500 employees based in 11 global offices.
In January 2021, the company raised a US$80.0 million round led
by Bregal Milestone. Existing investors Draper Esprit, Partech, and
Tesi also participated. M-Files has been a part of Draper Esprit's
portfolio since 2013. Since leading the company's Series A, Draper
Esprit has invested in each consecutive round.
The company completed its transition to SaaS in 2020 with 94% of
its ARR in 2020 contributed to subscription-based sales. M-Files
gained additional strategic international partnerships adding Iron
Mountain, Fulton Hogan, Devoteam Management Consulting Denmark,
Fuji Xerox Asia Pacific Pte Limited, Kyocera UK, and Adobe to its
list.
M-Files has been featured in the Gartner Magic Quadrant for
Content Services Platforms (formerly Enterprise Content Management)
since 2021 and named a Visionary for the last five years. Thousands
of organisations in more than 100 countries use M-Files for
managing their business information and processes, including NBC
Universal, OMV, Valmet, SAS Institute and Thyssenkrupp.
GBP6.5m GBP29.7m
Invested Investment valuation
Ledger
Ledger, the security and infrastructure solution provider for
cryptocurrencies and block chain application, celebrated its
five-year anniversary at the end of 2019. The global company now
has 250 global employees working in its Paris, New York, San
Francisco, Singapore, and London offices and one million users in
over 165 countries with 1.5 million units sold.
The company offers Ledger-Nano, Ledger-Live, and Ledger-Vault
which help to provide infrastructure solutions for enterprises and
hardware crypto wallets for consumers.
Ledger announced support for Algorand (ALGO) and Algorand
Standard Assets (ASA) in its software application, Ledger Live.
Post period end Ledger launched eight new coins available for
purchase including Polkadot (DOT), Dogecoin (DOGE), Litecoin (LTC),
Chainlink (LINK), Uniswap (UNI), MakerDao (MKR), Compound (COMP)
and Celsius (CEL) through the buy feature. These coins come in
addition to Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH),
Stellar (XLM) and Tether (USDT), which are already available.
Ian Rodgers, formerly the chief digital officer at LMVH, took on
a new role as "chief experience officer" at Ledger in November
2020. Apple Music veteran Parker Todd Brooks also joined the team
in April 2021 as head of NFT (non-fungible tokens).
GBP17.7m GBP41.8m
Invested Investment valuation
RavenPack
RavenPack, leading big data analytics provider for financial
services, allows clients to enhance returns, reduce risk and
increase efficiency by systematically incorporating the effects of
public information on their models or workflows.
The company announced its partnership with Synechron Inc. (a
leading digital transformation consulting firm focused on the
financial services industry) to develop and provide two new
products - an ESG Booster which will perform ESG analysis for
clients as part of its wider risk-analysis, and 360+ which provides
an individualized 360-degree view of each customer. This new,
enhanced data analytics capability will enable investment
professionals to make more informed decisions by incorporating the
effects of public information into their models and workflows.
RavenPack also announced its partnerships with market-moving
corporate event data provider, Wall Street Horizon and data
analytics provider, Cosaic.
In the financial year, the company launched an Insider
Transactions Data Solution, a free 2020 US Election Media
Monitoring Insights, and free Corona virus monitoring insights.
GBP7.5m GBP29.9m
Invested Investment valuation
Revolut
Revolut celebrated three years of business in September 2020,
marking 500k business customers since its launch in 2017. The
company currently boasts over 15 million personal customers, 500k
business customers, is supported in 35 countries, and has 30+
in-app currencies.
The company added a number of updates and new features to its
offering, including an online web app through which users can
access a complete overview of account transaction history and cards
via their laptop or desktops as well as a smart subscriptions
feature, which allows users to track all subscriptions, direct
debits, and reoccurring payments all in one place.
Furthering its expansion into the US, Revolut applied for a US
banking licence and launched business accounts in all 50 states.
The company also announced the launch of its acquiring solution in
16 additional European countries, with 29 European countries now
able to accept card payments online, directly into their accounts.
Revolut Business added a suite of new features for businesses
including a metal card plan for freelancers, QR codes for socially
distanced payments, and updates to its range of expenses tools.
GBP7.4m GBP20.4m
Invested Investment valuation
Aircall
Cloud-based call centre system, Aircall, provides an integrated
and easy to use solution for its customers. In September Aircall's
IOS mobile app was rebuilt and relaunched to accommodate more
integrations, features, and utilise better code. The company's App
Marketplace currently provides over 85 integrations with its
solution, including SalesForce, Zendesk, Hubspot, Zoho, Freshdesk,
and Slack.
Since Aircall's Series C US$65.0 million fundraise in May 2020
the company has expanded its sales team to over 350 employees and
opened its third office in Sydney to coincide with its recent
launch into Australian markets. The Series C in May was led by DTCP
with participation from new investors Swisscom and Adam Street and
existing investors including Draper Esprit, eFounders, Balderton
Capital and NextWorld. This round brings the company's total
funding to date to over US$100.0 million.
GBP10.7m GBP32.8m
Invested Investment valuation
Thought Machine
Cloud native core banking technology company, Thought Machine,
provides core banking infrastructure to both incumbent and
challenger banks. The company's technology provides an alternative
more flexible cloud-based solution that can be configured to
provide any product, user experience, operating model, or data
analysis capability.
In early 2020, Thought Machine completed an US$83.0 million
round led by Draper Esprit and joined by Lloyds Banking Group, IQ
Capital, Backed and Playfair Capital. In July 2020 Thought Machine
extended the Series B round to US$125.0 million. The extension was
led by Eurazeo, with British Patient Capital and SEB also joining
the round as new investors.
In September 2020, Former HSBC Group COO Andy Maguire joined
Thought Machine as Chair. Thought Machine also announced
partnerships with TransferGo and Monese. Responsible lending
start-up Curve Credit, selected Thought Machine to power its new
credit and loan offering.
GBP16.5m GBP18.4m
Invested Investment valuation
Sportpursuit
Membership-based eCommerce business, Sportpursuit, helps
sportsmen and women find products from the world's best brands at
unbeatable prices in an attractive, content rich, and personalised
environment. Sales are focused on the following segments: outdoor,
running, skiing & snowboarding, triathlon, cycling, health
& wellbeing, athletics, swimwear, cycling, golf, tennis, and
others.
The company established new alternative categories, to adapt to
customer preference during COVID, which catered to home based
exercise rather than visits to the gym, garden equipment, new high
street lifestyle brands, etc. Sportpursuit also had strong growth
in its 'owned brands' which the company owns and operates under its
own labels with a quality product selection.
GBP5.6m GBP18.5m
Invested Investment valuation
Aiven
Aiven, allows developers to focus on application building while
the platform manages open-source databases and messaging systems
for business clients on all major cloud platforms. The company
operates with 11 open-source products, 6 Cloud platforms, and
covers 90+ regions with headquarters in Boston, Berlin, Sydney, and
Helsinki (HQ). Its most recent open-source product, Aiven for M3,
launched in October 2020.
Since its establishment in 2006 the company has partnered with
over 100 ambitious teams including Graphcore, Klarna, Supercell,
Compass, MessageBird, Masterclass, Attentive Mobile, Pipedrive, and
Hinge Health.
The management platform now offers its products on Google Cloud
Marketplace and is one of the first service providers to quote and
contract services in AWS Marketplace to help customers implement,
support, and manage their software. It also announced a partnership
with Humanitec, Internal Developer Platform and the expansion of
its partnership with leading French DIY and home improvement
company, AEDO.
In March 2021 the company raised a US$100.0 million Series C
round, which was led by Atomico, with new investors Salesforce
Ventures and World Innovation Lab also joining. Draper Esprit
participated via our investment in Earlybird fund VI. Aiven plans
to use the proceeds from the round to bring new products to market,
increase contributions to developing open-source technologies and
continue the company's international expansion. The round in March
brings total funds raised by Aiven to US$150.0 million.
Two new hires joined the company in February 2021, Julian Lange
as Chief Financial Officer and James Arlen as Chief Information
Security Officer, collectively bringing 30+ years of industry
experience.
GBP5.0m GBP45.5m
Invested Investment valuation
Cazoo
Cazoo, founded in 2018 by Alex Chesterman (founder of Zoopla and
LoveFilm) remains one of the UK's fastest-growing digital
businesses and leading online car retailers. With a team of over
1,800 people based across the UK, Germany, France, and Portugal,
the company continues to grow and has delivered over 20,000 cars to
consumers across the UK. Following the acquisition of car
subscription service, Drover, in December, Cazoo has also
established itself as a leading car subscription player with over
6,000 subscribers across the UK, Germany, and France.
Draper Esprit initially invested in Cazoo as part of our fund of
funds investment programme via Stride Capital who backed the
company in November 2018. In June 2020, Plc invested directly in
the company's GBP25.0 million Series C round, and subsequently
participated in their latest GBP240.0 million Series D round in
October 2020. Other investors in the Series D round included
General Catalyst, D1 Capital Partners, and Blackrock.
In March Cazoo announced US$7.0 Billion business combination
with SPAC, AJAX I. The transaction is expected to close in the
third quarter of 2021. Once closed Cazoo will be listed on NYSE
ticker "CZOO." The transaction will support Cazoo's mission to
continue to transform the car buying experience across Europe, as
they work to further build out their brand and infrastructure.
Cazoo raised GBP100,000 for charities such as Mind, Cazoo's
charity partner, NHS heroes, Everton In the Community, and The
Aston Villa Foundation in 2020, and they have pledged to double the
amount in 2021.
GBP10.0m GBP25.7m
Invested Investment valuation
Lyst
During the last year, London-based Lyst, the leading platform
for the world's fashion shoppers, helped 70 million users from 120
countries find and discover the perfect fashion item from a
selection of more than 18,000 leading brands. The company tracks
more than 10 million global searches each month and captures the
data to tell retailers what consumers want to wear.
The company has had a successful year as Covid-19 accelerated
e-commerce adoption. Lyst's app averages about 660,000 monthly
downloads according to Apptopia.
Lyst continues to evolve, going through a rebrand and hiring a
new CPO.
GBP6.0m GBP35.1m
Invested Investment valuation
Endomag
Endomag utilizes technology to improve cancer care by preventing
unnecessary surgery and improving outcomes and patient experience
where surgery is needed.
The company has a number of products including the Magseed
marker, which is a tiny seed-sized device made of surgical steel
designed to accurately mark the site of a cancer and help with its
removal. Endomag's Magtrace lymphatic tracer is a liquid tracer
that has been developed specifically for sentinel node biopsies.
The Sentimag system is the probe that enables users to operate the
company's Magseed marker and Magtrace lymphatic tracer. Over 550
hospitals in more than 40 different countries have utilised
Endomag's technology on over 130,000 patients.
In November 2020 the company announced its GBP15.0 million
Series D funding round led by Draper Esprit. Existing investors
Sussex Place Ventures, among others, also participated. This
investment follows on from Draper Esprit's initial investment in
Endomag's 2018 Series C round, bringing the Company's total funding
to over GBP32.0 million. The funds will help the company expand its
global reach while advancing breast cancer care to the next
level.
Endomag has its headquarters in Cambridge, with a second office
in Austin, Texas.
GBP9.3m GBP15.7m
Invested Investment valuation
Freetrade
Freetrade continues to make trading commission-free and easy by
adding thousands of new stocks and ETFs to invest in for members,
with exclusive options for Plus members like David Beckham's Guild
Esports, and Papa John's.
Draper Esprit joined the company's US$69.0 million Series B
round, led by Left Lane Capital with L Catterton also
participating. Freetrade plans to use the funds to supercharge its
expansion and product development. Draper Esprit initially invested
in Freetrade's Series A round in October 2019.
Registered users for the app have surpassed 600,000 and Q1 2021
trade volumes exceeded US$1.0 billion. The company has opened new
offices in Stockholm and Brisbane and has doubled the size of its
team in the last 12 months as part of its ongoing recruitment
drive.
Freetrade has begun its expansion into the Netherlands and
Ireland and has announced its plans to be available everywhere in
the EEA.
Freetrade also launched its own Self-invested personal pensions
(SIPP), an investment account designed to allow individuals to
manage their own pensions.
GBP8.0m GBP20.0m
Invested Investment valuation
Financial review
The financial year to 31 March 2021 was a year of strong
performance that contrasted with the uncertainty resulting from the
Covid-19 pandemic at the beginning of the year. Following the
cautious focus in the first months of the financial year on
liquidity and the potential impact of lockdowns to portfolio
company revenues, it quickly became apparent that an accelerated
transition to digital was exacerbating wider existing trends
towards tech in the global economies. Technology companies became
enablers of the shifting work and living practices the pandemic
created and with much discussion highlighting multiple years of
change compressed into months, it was unsurprising to see capital
being directed to the beneficiaries and enablers of change. Both
public and private investors sought out the quality of recurring
revenue streams, e-commerce, remote networking facilitators, cloud
native applications, security infrastructure and technology
enhancing automation.
As a consequence the Group was able to accelerate its own
scaling strategy by deploying further capital and realising
investments at increased levels, while overseeing strong growth in
the underlying portfolio.
Gross Portfolio Value increased by GBP280.9 million in the year
to GBP983.8 million notwithstanding significant realisations of
GBP206.3 million which were in excess of GBP128.0 million of
investments. Fair value growth of GBP359.2 million (51%) was
underpinned by significant corporate activity in the portfolio with
IPOs of Trustpilot and UiPath and new funding rounds across the
portfolio. After taking account of the accrued carry and deferred
tax, the Net Portfolio Value increased by GBP209.8 million to
GBP867.1 million, reflecting an increase in the movement between
the Gross Portfolio and Net Portfolio value in the year due to
increased carry liabilities as the underlying fund performance
progresses.
The balance sheet Net Asset Value of over GBP1.0 billion
highlights the strong investment performance and robust capital
position driven by an equity raise in the year and realisations
within the portfolio. In line with the investment opportunities
coming through our deep network across Europe and our scaling
platform, we anticipate increasing our investment cadence to over
GBP150.0 million in the coming year, as well as continuing to
further expand the infrastructure we require for growth.
Portfolio valuation
The Gross Portfolio Value at 31 March 2021 is GBP983.8 million
(31 March 2020: GBP702.9 million). Proceeds of GBP206.3 million
were received from realisations (including escrows) during the
period. Investments of GBP128.0 million were made and a gross fair
value movement was recognised of GBP359.2 million, even with the
impact of strong currency headwinds of GBP51.2 million. The
increase in fair value of the gross portfolio of 51% is significant
relative to the targeted 20% gross portfolio returns through the
cycle, notwithstanding realisations of GBP206.3 million. We target
10-15% realisations through the cycle.
The fair value growth in the year reflects strong performance
across the breadth of the portfolio. Key value drivers are a
combination of realisations and funding rounds with third-party
investors at higher values. Valuations have also seen the impact of
overall technology market trends. Many of the core have seen large
uplifts in their year-end valuations; key movements include
Trustpilot, Lyst, Ledger, and UiPath and Aiven (both held via our
partnership with Earlybird).
The Gross Portfolio Value is subject to deductions for the fair
value of the carry liabilities and deferred tax to generate the net
investment value of GBP867.1 million (31 March 2020: GBP657.3
million), which is reflected in the consolidated statement of
financial position as financial assets held at fair value through
profit or loss. The Gross Portfolio Value Table below and on page
59 of the Annual Report reflects the gross and net movement in
value of the portfolio during the year. The net fair value gain on
investments of GBP276.3 million is reflected in the consolidated
statement of comprehensive income.
A deferred tax provision of GBP20.0 million is accrued against
the gains in the portfolio to reflect those portfolio companies
where less than 5% of the equity holding is owned. The amount is
netted off against the investments in the consolidated statement of
financial position. Carry balances of GBP97.0 million are accrued
to management teams, including previous and current employees of
the Group based on the current fair value at the period-end and
deducted from the Gross Portfolio Value. The percentage of Net
Portfolio Value to Gross Portfolio Value has been trending lower as
underlying investment funds continue to perform and therefore
reflect an increased proportion that is subject to carried interest
at 15%. In line with the strong portfolio performance in the year,
the Gross to Net Portfolio has moved to 88%, particularly as assets
held through third party funds, which are subject to higher carry
proportions, have driven some of this increase. As investments turn
to cash through realisations this carry will be paid out over time.
The Gross Portfolio Value is an APM (see Note 29) and the
reconciliation from Gross to Net can be found below and on page 59
of the Annual Report.
Consolidated Statement of Financial Position
Net assets have increased by GBP373.5 million to GBP1,033.1
million from the prior year (31 March 2020: GBP659.6 million). Our
fundraise in October 2020 raised net proceeds of GBP106.6 million
and we have received cash proceeds from realisations and escrows
during the year of GBP206.3 million. During the year, we fully
repaid drawn amounts from our revolving credit facility with
Silicon Valley Bank and Investec. We have increased our investment
cadence in the second half of the financial year, with investments
for the year totalling GBP128.0 million. Strong performance in the
fair value growth in the portfolio has generated a net fair value
uplift of GBP276.3 million. During the year, we saw an uplift in
trade and other payables, resulting from timing differences in
payments of items such as bonuses, carry, and tax, and a decrease
in trade and other receivables, mainly resulting from the repayment
of the loan to a non-consolidated group entity.
The consolidated cash balance at 31 March 2021 is GBP160.7
million (31 March 2020: GBP34.1 million), of which GBP2.3 million
is restricted cash. Increases to our cash balance result from net
proceeds received from our October fundraise and cash proceeds
received from realisations and escrows, offset by our investments
made during the year, repayment of the revolving credit facility of
GBP45.0 million, and other operational and financing related cash
movements. We target maintaining 12-18 months of cash
resources.
In October a further GBP110.0 million (GBP106.6 million net of
fees) was raised through a placing to shareholders with 19,819,820
shares being issued at 555p per share, representing a premium of
c.0.5% to the closing mid-market price of 552p per share on 1
October 2020 and was equal to the reported NAV per share as at 31
March 2020. The increased number of shares is reflected in the
share capital and share premium accounts. The proceeds were raised
to increase the investment cadence to take advantage of
opportunities both in the market and within the existing portfolio
and the GBP95.7 million in the second half of the year reflected
this enhanced deployment.
As we announced in our September 2020 interim results, the
Company's revolving credit facility was extended and increased by
one year to GBP60.0 million (from GBP50.0 million) in June 2020.
This facility was further extended and increased post year-end by
an additional year to GBP65.0 million. We have been in compliance
with all covenants throughout the duration of the facility and at
31 March 2021. The facility was undrawn at 31 March 2021, therefore
no borrowing liability is recognised in the consolidated statement
of financial position. Drawdowns and paydowns will continue to be
driven by portfolio investments and realisations. The balance
recognised under borrowings of GBP0.4 million relates to the
capitalised fees from the setup and extension of the facility,
which are being amortised over its life.
During the year ending 31 March 2021, Draper Esprit Plc acquired
the remaining 69.23% of the issued share capital in Elderstreet
Holdings Limited, the holding company of Elderstreet Investments
Limited (manager of Draper Esprit VCT plc). Elderstreet Holdings
Limited was recognised as an Investment in Associate on the
Consolidated Statement of Financial Position as at 31 March 2020.
This transaction is accounted for under IFRS 3 as a business
combination achieved in stages (or "step acquisition") and has
resulted the recognition of GBP0.6 million of goodwill at 31 March
2021 (GBP0.7 million including deferred tax). For further details
of the acquisition, please see Note 18.
During the year, the Board approved the inception of the Draper
Esprit Employee Benefit Trust and its trustee, Grow Trustees
Limited, to administer the employee share option schemes (see
further details in Note 13 to the consolidated financial
statements). Shares in Draper Esprit Plc held by the trust will be
recognised as treasury shares for the Group and the impact can be
seen in the Consolidated Statement of Changes in Equity below and
on page 127 of the Annual Report.
Consolidated statement of comprehensive income
Income recognised during the year ending 31 March 2021 comprises
investment gains of GBP276.3 million (year ending 31 March 2020:
GBP40.8 million) and fee income of GBP12.5 million (year ending 31
March 2020: GBP11.3 million), which is generated from management
fees and directors' fees. General and administration costs of
GBP13.8 million are recognised in the year (year ending 31 March
2020: GBP9.8 million), with the increase in the year reflecting
scaling of our team to build the infrastructure for growth with
higher employee costs. Net operating costs (net of fee income) as a
percentage of NAV are less than our target of 1%. As we continue to
expand the third--party funds that co-invest alongside the Plc's
balance sheet capital, we anticipate that fee income will increase
further. The net finance expense of GBP5.2 million (year ending 31
March 2020: GBP0.1 million) mainly reflects net foreign exchange
fluctuations on cash balances held and interest on the revolving
credit facility.
Post balance-sheet events
-- Increased and extended our revolving credit facility with SVB
and Investec by an additional one year from GBP60m to GBP65m post
year-end.
-- Invested a further GBP48m post year-end to 11 June 2021,
including investments into Manna, FintechOS, Cervest, Ledger, and
Lyst.
-- Refreshed fund of funds programme, with the approval by the
Board and Investment Committee of an additional GBP75.0 million
investment budget.
Ben Wilkinson
Chief Financial Officer
Gross Portfolio Value Table
Movement Total Interest
Fair Value Draper in Movement Fair Fair Value FD
of Esprit Foreign in Fair Value of category(*)
Investments (Ireland) Exchange Value Movement Investments at
31-Mar-20 Investments Realisations Limited (A) (B) (A+B) 31-Mar-21 reporting
Company GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm date
------------- ----------- ----------- ------------ --------- -------- -------- -------- ----------- -----------
Graphcore 86.8 10.3 - - (7.5) 19.2 11.7 108.8 A
UiPath 28.0 - (5.3) - (6.8) 84.4 77.6 100.3 A
Trustpilot 65.3 - (75.0) - - 95.2 95.2 85.5 B
Aiven 12.8 - - - (3.1) 35.8 32.7 45.5 B
Ledger 17.7 - - - (2.9) 27.0 24.1 41.8 B
Lyst 10.8 - - - (2.4) 26.7 24.3 35.1 C
Aircall 24.3 - - - (1.6) 10.1 8.5 32.8 B
RavenPack 30.9 - - - (2.1) 1.1 (1.0) 29.9 D
M-files 20.0 1.5 - - (1.6) 9.8 8.2 29.7 B
Cazoo - 10.3 - - - 15.4 15.4 25.7 A
Smava 16.7 - - - (1.6) 8.7 7.1 23.8 B
Revolut 21.7 - - - (1.5) 0.2 (1.3) 20.4 A
Freetrade - 4.0 - - - 16.0 16.0 20.0 B
Perkbox 19.9 - - - - (1.3) (1.3) 18.6 C
SportPursuit 11.1 - - - - 7.4 7.4 18.5 E
Thought
Machine 17.4 - - - - 1.0 1.0 18.4 B
Endomag 6.9 7.0 - - - 1.8 1.8 15.7 C
Remaining
Portfolio 310.8 94.9 (125.4) - (20.1) 50.5 30.4 310.7 -
------------- ----------- ----------- ------------ --------- -------- -------- -------- ----------- -----------
Total 701.1 128.0 (205.7) - (51.2) 409.0 357.8 981.2 -
------------- ----------- ----------- ------------ --------- -------- -------- -------- ----------- -----------
Co-Invest 1.8 - (0.6) - - 1.4 1.4 2.6 -
------------- ----------- ----------- ------------ --------- -------- -------- -------- ----------- -----------
Gross
Portfolio
Value 702.9 128.0 (206.3) - (51.2) 410.4 359.2 983.8 -
------------- ----------- ----------- ------------ --------- -------- -------- -------- ----------- -----------
Carry
External (40.6) - - - - (56.4) (56.4) (97.0) -
Portfolio
Deferred
tax (5.3) - - - - (14.7) (14.7) (20.0) -
Trading carry
& co--invest 0.3 - - - - - - 0.3 -
DE Ireland
Limited - - - 11.8 - (11.8) (11.8) - -
------------- ----------- ----------- ------------ --------- -------- -------- -------- ----------- -----------
Net Portfolio
value 657.3 128.0 (206.3) 11.8 (51.2) 327.5 276.3 867.1 -
------------- ----------- ----------- ------------ --------- -------- -------- -------- ----------- -----------
* Fully diluted interest categorised as follows: Cat A: 0-5%,
Cat B: 6-10%, Cat C: 11-15%, Cat D: 16-25%, Cat E: >25%
Consolidated Statement of Comprehensive Income
Year ended Year ended
31 March 31 March
2021 2020
Note GBP'000s GBP'000s
---------------------------------------------- ------ ---------- ----------
Change in gains on investments held at fair
value through the profit and loss 5 276,307 40,755
Fee income 6 12,507 11,255
---------------------------------------------- ------ ---------- ----------
Total income 288,814 52,010
---------------------------------------------- ------ ---------- ----------
Operating expenses
General administrative expenses 7 (13,844) (9,810)
Depreciation and amortisation 14, 17 (650) (520)
Share-based payments - resulting from company
share option scheme 13 (1,548) (990)
Investments and acquisition expenses (262) (239)
Total operating expenses (16,304) (11,559)
---------------------------------------------- ------ ---------- ----------
Other income 18 94 -
---------------------------------------------- ------ ---------- ----------
Profit from operations 272,604 40,451
---------------------------------------------- ------ ---------- ----------
Finance (expense)
---------------------------------------------- ------ ---------- ----------
Net finance (expense) 10 (5,157) (68)
---------------------------------------------- ------ ---------- ----------
Operating profit before tax 267,447 40,383
---------------------------------------------- ------ ---------- ----------
Income taxes 11 (26) (17)
---------------------------------------------- ------ ---------- ----------
Profit for the year 267,421 40,366
---------------------------------------------- ------ ---------- ----------
Other comprehensive income/(expense) - -
---------------------------------------------- ------ ---------- ----------
Total comprehensive income for the year 267,421 40,366
---------------------------------------------- ------ ---------- ----------
Profit attributable to:
Owners of the parent 267,421 39,707
Non-controlling interest^ 18 - 659
---------------------------------------------- ------ ---------- ----------
Earnings per share attributable to owners
of the Parent:
Basic earnings per weighted average shares
(pence) 12 208 34
Diluted earnings per weighted average shares
(pence) 12 206 33
---------------------------------------------- ------ ---------- ----------
^ On 10 March 2020, the Group acquired the remaining interest in
Encore Ventures LLP and as such no profit after 10 March 2020 is
attributable to the non-controlling interest - see Note 18 for
further details.
The Notes below and on pages 128 to 158 of the Annual Report are
an integral part of these consolidated financial statements.
Consolidated Statement of Financial Position
31 March 31 March
2021 2020
Note GBP'000s GBP'000s
-------------------------------------------- ------ --------- ---------
Non-current assets
Intangible assets 14 10,936 10,028
Investments in associates 15, 18 - 258
Financial assets held at fair value through
the profit or loss 16 867,088 657,333
Property, plant and equipment 17, 20 1,368 1,760
-------------------------------------------- ------ --------- ---------
Total non-current assets 879,392 669,379
-------------------------------------------- ------ --------- ---------
Current assets
Trade and other receivables 19 3,700 7,719
Cash and cash equivalents 158,417 32,255
Restricted cash 20ii 2,260 1,883
-------------------------------------------- ------ --------- ---------
Total current assets 164,377 41,857
-------------------------------------------- ------ --------- ---------
Current liabilities
Trade and other payables 21 (9,645) (5,038)
Financial liabilities 20 (345) (358)
-------------------------------------------- ------ --------- ---------
Total current liabilities (9,990) (5,396)
-------------------------------------------- ------ --------- ---------
Non-current liabilities
Deferred tax 22 (362) (611)
Financial liabilities 20 (276) (45,611)
-------------------------------------------- ------ --------- ---------
Total non-current liabilities (638) (46,222)
-------------------------------------------- ------ --------- ---------
Net assets 1,033,141 659,618
-------------------------------------------- ------ --------- ---------
Equity
Share capital 23 1,391 1,189
Share premium account 23 508,279 400,726
Own shares reserve 24i (331) -
Other reserves 24ii 26,258 26,259
Retained earnings 497,544 231,444
-------------------------------------------- ------ --------- ---------
Equity attributable to owners of parent 1,033,141 659,618
-------------------------------------------- ------ --------- ---------
Non-controlling interests 18 - -
-------------------------------------------- ------ --------- ---------
Total equity 1,033,141 659,618
-------------------------------------------- ------ --------- ---------
Net assets per share (pence) 12 743 555
-------------------------------------------- ------ --------- ---------
The financial statements on pages 124 to 127 of the Annual
Report were approved by the Board of Directors on 11 June 2021 and
signed on its behalf by
B.D. Wilkinson
Chief Financial Officer
The Notes below and on pages 128 to 158 of the Annual Report are
an integral part of these consolidated financial statements.
Consolidated Statement of Cash Flows
Year ended Year ended
31 March 31 March
2021 2020
Note GBP'000s GBP'000s
---------------------------------------------------- ------ ---------- ----------
Cash flows from operating activities
Profit after tax 267,421 40,366
Adjustments to reconcile operating profit to net cash
flows used in operating activities:
Revaluation of investments held at fair value
through the profit and loss 5 (276,307) (40,755)
Depreciation and amortisation 14,17 650 520
Share-based payments - resulting from company
share option scheme 13 1,548 990
Net finance expense 10 5,157 68
Decrease/(Increase) in trade and other receivables
and other working capital movements 402 (2,886)
Increase in trade and other payables 4,039 79
Purchase of investments 16 (127,976) (89,935)
Proceeds from disposals in underlying investment
vehicles 16 206,341 39,533
Net loans made to underlying investment vehicles
and Group companies 16, 31 (8,122) (8,541)
---------------------------------------------------- ------ ---------- ----------
Net cash generated from/(used in) in operating
activities 73,153 (60,561)
Tax (paid) (2) (3)
---------------------------------------------------- ------ ---------- ----------
Net cash inflow/(outflow) from operating activities 73,151 (60,564)
---------------------------------------------------- ------ ---------- ----------
Cash flows from investing activities
---------------------------------------------------- ------ ---------- ----------
Acquisition of subsidiary, net of cash acquired 18 (650) -
Purchase of property, plant and equipment 17 (143) (368)
Net cash (outflow)/inflow from investing activities (793) (368)
---------------------------------------------------- ------ ---------- ----------
Cash flows from financing activities
Cash paid to non-controlling interests - (893)
(Net loan repayments)/proceeds from loan 20 (45,000) 45,000
Fees paid on issuance of loan 20 (300) (525)
Interest paid (2,093) (887)
Interest received 283 289
Repayments of leasing liabilities 20 (440) (166)
Net acquisition of own shares 24 (720) -
Gross proceeds from issue of share capital 23 111,872 993
Equity issuance costs 23 (3,520) (40)
Cash paid out for share options exercised (2,553) (293)
---------------------------------------------------- ------ ---------- ----------
Net cash inflow from financing activities 57,529 43,478
---------------------------------------------------- ------ ---------- ----------
Net increase/(decrease) in cash & cash equivalents 129,887 (17,454)
---------------------------------------------------- ------ ---------- ----------
Cash and cash equivalents at beginning of
year 34,138 50,358
Exchange differences on cash and cash equivalents 10 (3,348) 1,234
---------------------------------------------------- ------ ---------- ----------
Cash and cash equivalents at end of year 158,417 32,255
---------------------------------------------------- ------ ---------- ----------
Restricted cash at year end 2,260 1,883
---------------------------------------------------- ------ ---------- ----------
Total cash and cash equivalents and restricted
cash at year end 160,677 34,138
---------------------------------------------------- ------ ---------- ----------
The Notes below and on pages 128 to 158 of the Annual Report are
an integral part of these consolidated financial statements.
Consolidated Statement of Changes in Equity
Attributable to equity holders of the parent
(GBP'000s)
------------------------ ----------------------------------------------------------------
Year ended 31 March Share Share Own shares Other Retained Total
2021 Note capital premium reserve reserves earnings equity
------------------------ ------ -------- --------- ---------- --------- --------- ---------
Brought forward as
at 1 April 2020 1,189 400,726 - 26,259 231,444 659,618
------------------------ ------ -------- --------- ---------- --------- --------- ---------
Comprehensive income
for the year
Profit for the year - - - - 267,421 267,421
------------------------ ------ -------- --------- ---------- --------- --------- ---------
Total comprehensive
income/(expense) for
the year - - - - 267,421 267,421
------------------------ ------ -------- --------- ---------- --------- --------- ---------
Contributions by and
distributions to the
owners:
Issue of share capital 23 198 106,282 - - - 106,480
Options granted and
awards exercised 13, 24 4 1,271 1,936 (1) (1,321) 1,889
Acquisition of treasury
shares 24 - - (2,267) - - (2,267)
------------------------ ------ -------- --------- ---------- --------- --------- ---------
Total contributions
by and distributions
to the owners 202 107,553 (331) (1) (1,321) 106,102
------------------------ ------ -------- --------- ---------- --------- --------- ---------
Balance as at 31 March
2021 1,391 508,279 (331) 26,258 497,544 1,033,141
------------------------ ------ -------- --------- ---------- --------- --------- ---------
Attributable to equity holders of the
parent (GBP'000s)
----------------- ----- ------------------------------------------------------------- ---------------- -----------
Attributable
to
non-controlling Total
Year ended Share Share Own shares Other Retained Total interest equity
31 March 2020 Note capital premium reserve reserves earnings equity (GBP'000s) (GBP'000s)
----------------- ----- -------- -------- ---------- --------- --------- ------- ---------------- -----------
Brought forward
as at
1 April 2019 1,179 395,783 - 25,633 195,737 618,332 234 618,566
----------------- ----- -------- -------- ---------- --------- --------- ------- ---------------- -----------
Comprehensive
income for the
year
Profit for the
year - - - - 39,707 39,707 659 40,366
Acquired reserves
from
non--controlling
interest - - - - - - - -
Amounts withdrawn
by
non-controlling
interest - - - - - - (893) (893)
----------------- ----- -------- -------- ---------- --------- --------- ------- ---------------- -----------
Total
comprehensive
income/(expense)
for the year - - - - 39,707 39,707 (234) 39,473
----------------- ----- -------- -------- ---------- --------- --------- ------- ---------------- -----------
Contributions
by and
distributions
to the owners:
Adjustment for
Encore Ventures
acquisition 18 - - - - (4,000) (4,000) - (4,000)
Issue of share
capital 23 10 4,943 - - - 4,953 - 4,953
Options granted
and awards
exercised 13,24 - - - 626 - 626 - 626
----------------- ----- -------- -------- ---------- --------- --------- ------- ---------------- -----------
Total
contributions
by and
distributions
to the owners 10 4,943 - 626 (4,000) 1,579 - 1,579
----------------- ----- -------- -------- ---------- --------- --------- ------- ---------------- -----------
Balance as at
31 March 2020 1,189 400,726 - 26,259 231,444 659,618 - 659,618
----------------- ----- -------- -------- ---------- --------- --------- ------- ---------------- -----------
The Notes below and on pages 128 to 158 of the Annual Report are
an integral part of these consolidated financial statements.
Notes to the Consolidated Financial Statements
1. General information
Draper Esprit Plc (the "Company") is a public company limited by
shares incorporated and domiciled in England and Wales. The Company
is listed on the London Stock Exchange's AIM market and Euronext
Dublin's Euronext Growth market.
The Company is the ultimate parent company into which the
results of subsidiaries are consolidated where in line with IFRS 10
(see Note 3b below for further details). The consolidated financial
statements for the years ended 31 March 2021 and 31 March 2020
comprise the financial statements of the Company and its
subsidiaries (together, "the Group").
The consolidated financial statements are presented in Pounds
Sterling (GBP), which is the currency of the primary economic
environment the Group operates in. All amounts are rounded to the
nearest thousand, unless otherwise stated.
2. Adoption of new and revised standards
No changes to IFRS have impacted this year's financial
statements.
No upcoming changes under IFRS are likely to have a material
effect on the reported results or financial position. Management
will continue to monitor upcoming changes.
3. Significant accounting policies
a) Basis of preparation
The consolidated financial statements have been prepared and
approved by the Directors in accordance with international
accounting standards in conformity with the requirements of the
Companies Act 2006. The financial reporting framework that has been
applied in the preparation of the Company financial statements is
applicable law and United Kingdom Accounting Standards (United
Kingdom Generally Accepted Accounting Practice). The Company has
taken advantage of disclosure exemptions available under FRS 101 as
explained further in Note 1 of the Company's financial statements.
The financial statements are prepared on a going concern basis as
disclosed in the Audit, Risk and Valuations Committee Report (pages
101-103 of the Annual Report) and in the Directors' Report (pages
112-114 of the Annual Report).
The consolidated financial statements have been prepared under
the historical cost convention as modified for the revaluation of
financial assets and financial liabilities held at fair value.
A summary of the Group's principal accounting policies, which
have been applied consistently across the Group, is set out
below.
b) Basis of consolidation
The consolidated financial statements comprise the Company
(Draper Esprit Plc, 20 Garrick Street, London, England, WC2E 9BT)
and the results, cash flows and changes in equity of the following
subsidiary undertakings as well as the Draper Esprit Employee
Benefit Trust:
%
Name of undertaking Nature of business Country of incorporation ownership
-------------------------------- ---------------------- ------------------------- ----------
Esprit Capital Partners
LLP^ Investment Management England 100%
-------------------------------- ---------------------- ------------------------- ----------
Elderstreet Holdings Limited^ Holding company England 100%*
-------------------------------- ---------------------- ------------------------- ----------
Elderstreet Investments
Limited^ Investment Management England 100%*
-------------------------------- ---------------------- ------------------------- ----------
Grow Trustees Limited^ Trustee England 100%**
-------------------------------- ---------------------- ------------------------- ----------
Draper Esprit (Nominee)
Limited^ Dormant England 100%
-------------------------------- ---------------------- ------------------------- ----------
Encore Ventures LLP^ Investment Management England 100%
-------------------------------- ---------------------- ------------------------- ----------
Esprit Capital I (GP) Limited^ General Partner England 100%
-------------------------------- ---------------------- ------------------------- ----------
Esprit Capital I General
Partner^ General Partner England 100%
-------------------------------- ---------------------- ------------------------- ----------
Esprit Capital II GP Limited^^^ General Partner Cayman 100%
-------------------------------- ---------------------- ------------------------- ----------
Esprit Capital III Founder
GP Limited^^ General Partner Scotland 100%
-------------------------------- ---------------------- ------------------------- ----------
Esprit Capital III GP LP^^ General Partner Scotland 100%
-------------------------------- ---------------------- ------------------------- ----------
Encore I GP Limited^^^ General Partner Cayman 100%
-------------------------------- ---------------------- ------------------------- ----------
Encore I Founder GP Limited^^^ General Partner Cayman 100%
-------------------------------- ---------------------- ------------------------- ----------
Esprit Capital Holdings
Limited^ Dormant England 100%
-------------------------------- ---------------------- ------------------------- ----------
Esprit Nominees Limited^ Dormant England 100%
-------------------------------- ---------------------- ------------------------- ----------
Esprit Capital I (CIP)
Limited^ Dormant England 100%
-------------------------------- ---------------------- ------------------------- ----------
Esprit Capital III MLP
LLP^ Dormant England 100%
-------------------------------- ---------------------- ------------------------- ----------
Esprit Capital III GP Limited^ Dormant England 100%
-------------------------------- ---------------------- ------------------------- ----------
3. Significant accounting policies
*
At 31 March 2021, the Company owns 100% of the issued share
capital of Elderstreet Holdings Limited, which in turns owns 100%
of the issued share capital of Elderstreet Investments Limited,
following the acquisition of 69.23% of the issued share capital on
9 February 2021. The Company previously owned 30.77% and the
investment was accounted for as an Investment in Associate as at 31
March 2020. See Note 18 for further information.
**
On 27 November 2020, Draper Esprit Employee Benefit Trust was
set up to operate as part of the Draper Esprit employee share
options schemes. Grow Trustees Limited was incorporated on 5
November 2020 as trustee to the Draper Esprit Employee Benefit
Trust. Both entities are consolidated as part of the Group.
Esprit Capital Management Limited has been removed from the
above table as this entity was dissolved following a Members
Voluntary Liquidation on 6 October 2020.
Registered addresses
^ 20 Garrick Street, London, England, WC2E 9BT
^^ 50 Lothian Road, Festival Square, Edinburgh, Scotland, EH3 9WJ
^^^ c/o Maples Corporate Services Limited at PO Box 309, Ugland
House, Grand Cayman, KY1-1104, Cayman Islands
Subsidiaries
Subsidiaries are entities controlled by the Group. Control, as
defined by IFRS 10, is achieved when the Group is exposed, or has
rights, to variable returns from its involvement with the investee
and has the ability to affect those returns through its power over
the investee. Subsidiaries are fully consolidated from the date on
which the Group effectively obtains control. They are
deconsolidated from the date that control ceases. Control is
reassessed whenever circumstances indicate that there may be a
change in any of these elements of control. Refer to Note 4(c) for
further information.
All transactions and balances between Group subsidiaries are
eliminated on consolidation, including unrealised gains and losses
on transactions between Group companies. Where unrealised losses on
intra-group asset sales are reversed on consolidation, the
underlying asset is also tested for impairment from a Group
perspective. Amounts reported in the financial statements of
subsidiaries have been adjusted where necessary to ensure
consistency with the accounting policies adopted by the Group.
Profit or loss and other comprehensive income of subsidiaries
acquired or disposed of during the year are recognised from the
effective date of acquisition, or up to the effective date of
disposal, as applicable. The Group attributes total comprehensive
income or loss of subsidiaries between the owners of the parent and
the non-controlling interests based on their respective ownership
interests.
The Group has accounted for the acquisition of the remaining
interest in Elderstreet Holdings Limited on 9 February 2021 as a
'step acquisition' in line with IFRS 3 and considers Elderstreet
Holdings Limited and its wholly owned subsidiary to be part of the
consolidated Group from the date of the transaction having assessed
the substance of the transaction, including control and changes in
ownership (see note 18).
Employee Benefit Trust
On 27 November 2020, Draper Esprit Employee Benefit Trust (the
"Trust") was set up to operate as part of the Draper Esprit
employee share option schemes. The substance of the relationship is
considered to be one of control by the Group and, therefore, the
Trust is consolidated, and all assets and liabilities are
consolidated into the Group. Grow Trustees Limited was appointed
trustee and the substance of this relationship is also considered
to be one of control by the Group and, as such, Grow Trustees
Limited is consolidated as at 31 March 2021.
Associates
Associates are all entities over which the Group has significant
influence, but not control or joint control. This is generally the
case where the Group holds between 20% and 50% of the voting
rights. Investments in associates are accounted for using the
equity method of accounting, after initially being recognised at
cost. Under the equity method of accounting, the investments are
initially recognised at cost and adjusted thereafter to recognise
the Group's share of the post-acquisition profits or losses of the
investee in profit or loss, and the Group's share of movements in
other comprehensive income. Dividends received or receivable from
associates and joint ventures are recognised as a reduction in the
carrying amount of the investment. When the Group's share of losses
in an equity-accounted investment equals or exceeds its interest in
the entity, including any other unsecured long-term receivables,
the Group does not recognise further losses, unless it has incurred
obligations or made payments on behalf of the other entity. The
carrying amount of equity-accounted investments is tested for
impairment where there are indications that the carrying value may
no longer be recoverable.
Following the acquisition of the remaining interest in
Elderstreet Holdings Limited on 9 February 2021, no associates are
recognised in the consolidated accounts. For further details,
please see Note 18.
Investment company
In accordance with the provisions of IFRS 10, Draper Esprit Plc
considers itself to be an investment entity as it obtains funds
from investors to invest funds for returns from capital
appreciation and the performance of substantially all of its
investments are held at Fair Value through Profit and Loss. The
Directors have also satisfied themselves that Draper Esprit Plc's
wholly owned subsidiary, Draper Esprit (Ireland) Limited, as well
as the partnerships listed below meet the characteristics of an
investment company. Draper Esprit (Ireland) Limited as well as the
partnerships listed below have one investor, however, in substance
these partnerships and companies are investing funds on behalf of
the investors of Draper Esprit Plc. Consequently, Draper Esprit
(Ireland) Limited and the limited partnerships listed below are not
consolidated in accordance with IFRS 10; instead, they are
recognised as investments held at fair value through profit and
loss on the consolidated balance sheet. Loans to investment
vehicles are treated as net investments at fair value through the
profit and loss.
3. Significant accounting policies
The below is a list of entities that are controlled and not
consolidated but held as investments at fair value through the
profit and loss on the consolidated balance sheet.
Name of undertaking Principal activity Country of incorporation % ownership
---------------------------- ------------------------------ ------------------------- -----------
Draper Esprit (Ireland)
Limited^^ Investment company Ireland 100%
---------------------------- ------------------------------ ------------------------- -----------
Esprit Capital III LP^ Limited partnership England 100%
---------------------------- ------------------------------ ------------------------- -----------
Esprit Capital III(B)
LP^ Limited partnership England 100%
---------------------------- ------------------------------ ------------------------- -----------
Esprit Capital IV LP^ Limited partnership England 100%
---------------------------- ------------------------------ ------------------------- -----------
Esprit Investments (1)
LP^ Limited partnership England 100%
---------------------------- ------------------------------ ------------------------- -----------
Esprit Investments (2)
LP^ Limited partnership England 100%
---------------------------- ------------------------------ ------------------------- -----------
Esprit Investments (1)(B)
LP^ Limited partnership England 100%
---------------------------- ------------------------------ ------------------------- -----------
Seedcamp Holdings LLP^ Limited liability partnership England 100%
---------------------------- ------------------------------ ------------------------- -----------
Seedcamp Investments LLP^^^ Limited liability partnership England 100%
---------------------------- ------------------------------ ------------------------- -----------
Seedcamp Investments II
LLP^^^ Limited liability partnership England 100%
---------------------------- ------------------------------ ------------------------- -----------
Esprit Investments (2)(B)
LP^ Limited partnership England 100%
---------------------------- ------------------------------ ------------------------- -----------
^ 20 Garrick Street, London, England, WC2E 9BT
^^ 32 Molesworth Street, Dublin 2, Ireland, D02 Y512
^^^ 727-729 High Road, London, England, N12 0BP
Limited partnerships (co-investment and carried interest)
The following limited partnerships that the Group's General
Partners are members of are not considered to be controlled and,
therefore, they are not consolidated in these financial
statements:
Name of undertaking Principal activity Country of incorporation
-------------------------- ------------------------ ------------------------
Encore I GP LP^ General partner Cayman
-------------------------- ------------------------ ------------------------
Esprit Capital II Founder Co-investment limited
LP^ partnership Cayman
-------------------------- ------------------------ ------------------------
Esprit Capital II Founder Co-investment limited
2 LP^ partnership Cayman
-------------------------- ------------------------ ------------------------
Co-investment limited
Encore I Founder LP^ partnership Cayman
-------------------------- ------------------------ ------------------------
Co-investment limited
Encore I Founder 2014 LP^ partnership Cayman
-------------------------- ------------------------ ------------------------
Encore I Founder 2014-A Co-investment limited
LP^ partnership Cayman
-------------------------- ------------------------ ------------------------
Esprit Capital III Founder Co-investment limited
LP^^ partnership Scotland
-------------------------- ------------------------ ------------------------
Esprit Investments (2)
(Carried Interest) LP Carried interest partner Scotland
-------------------------- ------------------------ ------------------------
Esprit Capital III Carried
Interest LP Carried interest partner Scotland
-------------------------- ------------------------ ------------------------
Esprit Investments (1)
(Carried interest) LP Carried interest partner Scotland
-------------------------- ------------------------ ------------------------
^ c/o Maples Corporate Services Limited at PO Box 309, Ugland
House, Grand Cayman, KY1-1104, Cayman Islands
^^ 50 Lothian Road, Festival Square, Edinburgh, EH3 9WJ
The Group's management does not consider there to be a material
exposure to these entities.
c) Operating segment
The Group's management considers the Group's investment
portfolio represents a coherent and diversified portfolio with
similar economic characteristics and as a result these individual
investments have been aggregated into a single operating segment.
In the view of the Directors, there is accordingly one reportable
segment under the provisions of IFRS 8.
d) Revenue recognition
Revenue is measured at the fair value of the consideration
received or receivable and represents amounts receivable for
services provided in the normal course of business, net of
discounts, VAT and other sales-related taxes. All revenue from
services is generated within the UK and is stated exclusive of
value added tax.
Revenue from services comprises:
i. Fund management services
Fund management fees are either earned at a fixed annual rate or
are set at a fixed percentage of funds under management, measured
by commitments or invested cost, depending on the stage of the fund
being managed. Revenues are recognised as the related services are
provided.
ii. Portfolio Directors' fees
Portfolio Directors' fees are annual fees charged to an investee
company. Directors' fees are only charged on a limited number of
the investee companies. Revenues are recognised as services are
provided.
3. Significant accounting policies
iii. Performance fees
Performance fees are earned on a percentage basis on returns
over a hurdle rate in the statement of comprehensive income.
Amounts are recognised as revenue when it can be reliably measured
and is highly probable funds will flow to the Group.
e) Deferred income
The Group's management fees are typically billed quarterly or
half-yearly in advance. Where fees have been billed for an advance
period, the amounts are credited to deferred income, and then
subsequently released through the profit and loss during the period
to which the fees relate. Certain performance fees and portfolio
directors' fees are also billed in advance and these amounts are
credited to deferred income, and then subsequently released through
the profit and loss accounting during the period to which the fees
relate.
f) Business combinations
The Group applies the acquisition method in accounting for
business combinations. The consideration transferred by the Group
to obtain control of a subsidiary is calculated as the sum of the
acquisition-date fair values of assets transferred, liabilities
incurred, and the equity interests issued by the Group, which
includes the fair value of any asset or liability arising from a
contingent consideration arrangement.
Acquisition costs are expensed as incurred. Assets acquired and
liabilities assumed are generally measured at their
acquisition-date fair values.
The Group recognises identifiable assets acquired and
liabilities assumed in a business combination, regardless of
whether they have been previously recognised in the acquiree's
financial statements prior to the acquisition. Assets acquired and
liabilities assumed are generally measured at their
acquisition-date fair values. Goodwill is stated after separate
recognition of identifiable intangible assets. It is calculated as
the excess of the sum of: a) fair value of consideration
transferred; b) the recognised amount of any non-controlling
interest in the acquiree; and c) acquisition-date fair value of any
existing equity interest in the acquiree, over the acquisition-date
fair values of identifiable net assets. If the fair values of
identifiable net assets exceed the sum calculated above, the excess
amount (i.e. gain on a bargain purchase) is recognised in profit or
loss immediately.
g) Goodwill and other intangible assets
Goodwill is measured as the excess of the sum of the
consideration transferred, the amount of any non-controlling
interests in the acquiree, and the fair value of the acquirer's
previously held equity interest in the acquiree (if any) over the
net of the acquisition-date amounts of the identifiable assets
acquired and the liabilities assumed. If, after reassessment, the
net acquisition-date amounts of the identifiable assets acquired
and liabilities assumed exceed the sum of the consideration
transferred, the amount of any non-controlling interests in the
acquiree and the fair value of the acquirer's previously held
interest in the acquiree (if any), the excess is recognised
immediately in profit or loss as a bargain purchase gain.
When the consideration transferred by the Group in a business
combination includes an asset or liability resulting from a
contingent consideration arrangement, the contingent consideration
is measured at its acquisition-date fair value and included as part
of the consideration transferred in a business combination. Changes
in fair value of the contingent consideration that qualify as
measurement period adjustments are adjusted retrospectively, with
corresponding adjustments against goodwill. Measurement period
adjustments are adjustments that arise from additional information
obtained during the "measurement period" (which cannot exceed one
year from the acquisition date) about facts and circumstances that
existed at the acquisition date.
Other intangible assets
Certain previously unrecognised assets acquired in a business
combination that qualify for separate recognition are recognised as
intangible assets at their fair values, e.g. brand names, customer
contracts and lists (see Note 14). All finite-lived intangible
assets are accounted for using the cost model whereby capitalised
costs are amortised on a straight-line basis over their estimated
useful lives. Residual values and useful lives are reviewed at each
reporting date. In addition, they are subject to impairment testing
as described below. Customer contracts are amortised on a
straight-line basis over their useful economic lives, typically the
duration of the underlying contracts. The following useful economic
lives are applied:
i. Customer contracts - Encore Ventures LLP: 8 years; Elderstreet Investments Limited: 3 years.
h) Impairment
For the purposes of assessing impairment, assets are grouped at
the lowest level for which there are largely independent cash
inflows ("cash generating units" or "CGU"). As a result, some
assets are tested individually for impairment and some are tested
at cash-generating unit level. Goodwill is allocated to those
cash-generating units that are expected to benefit from synergies
of the related business combination and represent the lowest level
within the Group at which management monitors goodwill. All other
individual assets or cash-generating units are tested for
impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable.
An impairment loss is recognised in the consolidated statement
of total comprehensive income for the amount by which the assets or
cash generating units carrying amount exceeds its recoverable
amount that is the higher of fair value less costs to sell and
value-in-use.
3. Significant accounting policies
To determine value-in-use, management estimates expected future
cash flows over five years from each cash-generating unit and
determine a suitable discount rate in order to calculate the
present value of those cash flows. Discount factors are determined
individually for each cash-generating unit and reflect their
respective risk profile as assessed by management. Impairment
losses for cash generating units reduce first the carrying amount
of any goodwill allocated to that cash-generating unit. Any
remaining impairment loss is charged pro-rata to the other assets
in the cash-generating unit with the exception of goodwill, and all
assets are subsequently reassessed for indications that an
impairment loss previously recognised may no longer exist. An
impairment charge is reversed if the cash-generating units
recoverable amount exceeds its carrying amount.
i) Foreign currency
Transactions entered into by Group entities in a currency other
than the functional currency in which they operate are recorded at
the rates prevailing when the transactions occur. Foreign currency
monetary assets and liabilities are translated at the rates
prevailing at the reporting date. Exchange differences arising on
the retranslation of unsettled monetary assets and liabilities are
recognised immediately in the profit and loss.
The individual financial statements of the Group's subsidiary
undertakings are presented in their functional currency. For the
purpose of these consolidated financial statements, the results and
financial position of each subsidiary undertaking are expressed in
Pounds Sterling, which is the presentation currency for these
consolidated financial statements.
The assets and liabilities of the Group's undertakings, whose
functional currency is not Pounds Sterling, are translated at
exchange rates prevailing on the reporting date. Income and expense
items are translated at the average exchange rates for the
period.
j) Financial assets
All financial assets are recognised and derecognised on a trade
date where the purchase or sale of a financial asset is under a
contract whose terms require delivery of the financial asset within
the timeframe established by the market concerned and are initially
measured at fair value, plus transaction costs, except for those
financial assets classified at 'fair value through profit or loss'
(FVTPL), which are initially measured at fair value.
Financial assets are classified by the Group into the following
specified categories: financial assets 'at fair value through
profit or loss' (FVTPL) and 'amortised cost'. The classification
depends on the nature and purpose of the financial assets and is
determined at the time of initial recognition.
Fair value through profit or loss
A financial asset may be designated as at FVTPL upon initial
recognition if:
a. such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would otherwise
arise; or
b. the financial asset forms part of a group of financial assets
or financial liabilities, or both, which is managed and its
performance is evaluated on a fair value basis, in accordance with
the Draper Esprit Group's documented risk management or investment
strategy, and information about the grouping is provided internally
on that basis; or
c. it forms part of a contract containing one or more embedded
derivatives, and IFRS 9 Financial Instruments permits the entire
combined contract (asset or liability) to be designated as at
FVTPL.
The Group considers that the investment interests it holds in
Esprit Capital III LP, Esprit Capital III(B) LP, Esprit Capital III
Founder LP, Esprit Capital II Founder LP, Esprit Capital IV LP,
Esprit Investments(I) LP, Esprit Investments (1)(B) LP, Esprit
Investments (2) LP, and Esprit Investments (2)(B) LP are
appropriately designated as at FVTPL as they meet criteria (b)
above.
Amortised cost
A financial asset is held at amortised cost under IFRS 9 where
it is held for the collection of cash flows representing solely
payments of principal and interest. These assets are measured at
amortised cost using the effective interest method, less any
expected losses.
The Group's financial assets held at amortised cost comprise
trade and most other receivables, and cash and cash equivalents in
the consolidated statement of financial position.
k) Financial liabilities
The Group's financial liabilities may include borrowings and
trade, and other payables.
Trade and other payables
Trade and other payables are recognised and derecognised on a
trade date where the purchase or sale of a financial asset is under
a contract whose terms require delivery of the financial asset
within the timeframe established by the market concerned and are
initially measured at fair value, plus transaction costs.
Financial liabilities are measured subsequently at amortised
cost using the effective interest method. All interest-related
charges and, if applicable, changes in an instrument's fair value
that are reported in profit or loss are included within finance
costs or finance income.
3. Significant accounting policies
Borrowings
Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently measured at
amortised cost using the effective interest rate method. All
interest-related charges are reported in profit or loss are
included within finance costs or finance income.
l) Provisions
Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past event, it
is probable that the outflow of resources embodying the economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
m) Share capital
Financial instruments issued by the Group are classified as
equity only to the extent that they do not meet the definition of a
financial liability or financial asset.
The Group's ordinary shares are classified as equity
instruments. Equity instruments are recorded at the proceeds
received, net of direct issue costs.
Shares held by Draper Esprit Employee Benefit Trust are held at
cost and disclosed as own shares and deducted from other
equity.
n) Defined contribution schemes
Contributions to defined contribution pension schemes are
charged to the consolidated statement of comprehensive income in
the year to which they relate.
o) Share-based payments
Where equity-settled share options are awarded to employees, the
fair value of the options at the date of grant is charged to the
consolidated statement of comprehensive income over the vesting
period on a straight line basis. Non-market vesting conditions are
taken into account by adjusting the number of equity instruments
expected to vest at each reporting date so that, ultimately, the
cumulative amount recognised over the vesting period is based on
the number of options that eventually vest. Non-vesting conditions
and market vesting conditions are factored into the fair value of
the options granted. As long as all other vesting conditions are
satisfied, a charge is made irrespective of whether the market
vesting conditions are satisfied. The cumulative expense is not
adjusted for failure to achieve a market vesting condition or where
a non-vesting condition is not satisfied.
Where the terms and conditions of options are modified before
they vest, the increase in the fair value of the options, measured
immediately before and after the modification, is also charged to
the consolidated statement of comprehensive income over the
remaining vesting period. Where equity instruments are granted to
persons other than employees, the consolidated statement of
comprehensive income is charged with the fair value of goods and
services received.
The employee share option plans are administered by the Draper
Esprit Employee Benefit Trust (the "Trust"), which is consolidated
in accordance with the principles in Note 3.
p) Leased assets
At inception of a contract, the Group assesses whether a
contract is, or contains, a lease. A contract is, or contains, a
lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to
control the use of an identified asset, the Group assesses
whether:
-- The contract involves the use of an identified asset - this
may be specified, explicitly or implicitly, and should be
physically distinct or represent substantially all of the capacity
of a physically distinct asset. If the supplier has a substantive
substitution right, then the asset is not identified;
-- The Group has the right to obtain substantially all of the
economic benefits from use of the asset throughout the period of
use; and
-- The Group has the right to direct the use of the asset. The
Group has this right when it has the decision-making rights that
are most relevant to changing how and for what purpose the asset is
used. In rare cases where the decision about how and for what
purpose the asset is used is predetermined, the Group has the right
to direct the use of the asset if either:
- The Group has the right to operate the asset; or
- The Group designed the asset in a way that predetermines how
and for what purpose it will be used.
This policy is applied to contracts entered into, or changed, on
or after 1 April 2019. The policy is applied taking into account
transitional provisions within IFRS 16 for the existing operating
lease as at 1 April 2019.
3. Significant accounting policies
contract that contains a lease component, the Group allocates
the consideration in the contract to each lease component on the
basis of their relative stand-alone prices.
Lessee
The Group recognises a right-of-use asset and a lease liability
at the lease commencement date. The right-of-use asset is initially
measured at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or before the
commencement date, plus any initial direct costs incurred and an
estimate of costs to dismantle and remove the underlying asset or
to restore the underlying asset, less any lease incentives
received.
The right-of-use asset is subsequently depreciated using the
straight-line method from the commencement date to the earlier of
the end of the useful life of the right-of-use asset or the end of
the lease term.
The lease liability is initially measured at the present value
of the lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if
that rate cannot be readily determined, the Group's incremental
borrowing rate. The lease liability is measured at amortised cost
using the effective interest method. It is remeasured when there is
a change in future lease payments.
When the lease liability is remeasured, a corresponding
adjustment is made to the carrying amount of the right-of-use asset
or is recorded in the profit or loss if the carrying amount of the
right-of-use asset has been reduced to zero.
The Group presents right-of-use assets that do not meet the
definition of investment property in 'property, plant and
equipment' and lease liabilities in 'lease liabilities' in the
statement of financial position.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and
lease liabilities for short-term leases that have a lease term of
12 months or less and leases of low-value assets, including IT
equipment. The Group would recognise the lease payments associated
with these leases as an expense on a straight-line basis over the
lease term.
q) Dividends
Dividends are recognised when they become legally payable. In
the case of interim dividends to equity shareholders, this is when
the dividend is paid. In the case of final dividends, this is when
the dividend is approved by the shareholders at the AGM.
r) Current tax
The tax currently payable is based on taxable profit for the
year. Taxable profit differs from net profit as reported in the
income statement because it excludes items of income or expense
that are taxable or deductible in other years, and it further
excludes items that are never taxable or deductible. The Group's
liability for current tax is calculated using tax rates that have
been enacted or substantively enacted by the balance sheet
date.
s) Deferred tax
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in
the computation of taxable profit and is accounted for using the
balance sheet liability method. Deferred tax liabilities are
generally recognised for all taxable temporary differences, and
deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which
deductible temporary differences can be utilised. Such assets and
liabilities are not recognised if the temporary difference arises
from the initial recognition of goodwill or from the initial
recognition (other than in a business combination) of other assets
and liabilities in a transaction that affects neither the taxable
profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary
differences arising on investments in subsidiaries and associates,
and interests in joint ventures, except where the Group is able to
control the reversal of the temporary difference and it is probable
that the temporary difference will not reverse in the foreseeable
future. Deferred tax assets arising from deductible temporary
differences associated with such investments and interests are only
recognised to the extent that it is probable that there will be
sufficient taxable profits against which to utilise the benefits of
the temporary differences and they are expected to reverse in the
foreseeable future.
The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow
all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled, or the asset is
realised based on tax laws and rates that have been enacted or
substantively enacted at the balance sheet date. Deferred tax is
charged or credited in the income statement, except when it relates
to items charged or credited in other comprehensive income, in
which case the deferred tax is also dealt with in other
comprehensive income.
3. Significant accounting policies
The measurement of deferred tax liabilities and assets reflects
the tax consequences that would follow from the manner in which the
Group expects, at the end of the reporting period, to recover or
settle the carrying amount of its assets and liabilities. Deferred
tax assets and liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax
liabilities, and when they relate to income taxes levied by the
same taxation authority and the Group intends to settle its current
tax assets and liabilities on a net basis.
t) Property, plant and equipment
Fixtures and equipment are stated at cost less accumulated
depreciation and any recognised impairment loss. Depreciation is
recognised to write off the cost or valuation of assets less their
residual values over their useful lives, using the straight-line
method, on the following basis:
Leasehold improvements - over the term of the lease
Fixtures and equipment - 33% p.a. straight line
Computer equipment - 33% p.a. straight line
The estimated useful lives, residual values and depreciation
method are reviewed at the end of each reporting period, with the
effect of any changes in estimate accounted for on a prospective
basis.
See 3(p) above for PPE relating to right-of-use assets resulting
from leases.
u) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, deposits at
bank and highly liquid investments with a term of no more than 90
days that are readily convertible into known amounts of cash and
that are subject to an insignificant risk of changes in value. No
cash equivalents are held as at 31 March 2021 (31 March 2020:
nil).
v) Segmental reporting
IFRS 8, "Operating Segments", defines operating segments as
those activities of an entity about which separate financial
information is available and which are evaluated by the Chief
Operating Decision Maker to assess performance and determine the
allocation of resource. The Chief Operating Decision Maker has been
identified by the Board of Directors as the Chief Executive
Officer.
w) Financial instruments
Financial assets and financial liabilities are recognised in the
consolidated balance sheet when the Group becomes a party to the
contractual provisions of the instrument.
Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial
liabilities at FVTPL) are added to or deducted from the fair value
of the financial assets or financial liabilities, as appropriate,
on initial recognition.
x) Interest income
Interest income earned on cash and deposits and short-term
liquidity investments is recognised when it is probable that the
economic benefits will flow to the Group and the amount of income
recognised can be measured reliably. Interest income is accrued on
a time basis, with reference to the principal outstanding and at
the effective interest rate applicable.
y) Carried interest
The Company has established carried interest plans for the
Executive Directors (see below), other members of the investment
team and certain other employees (together the "Plan Participants")
in respect of any investments and follow-on investments made from
Admission. To 31 March 2020 each carried interest plan operates in
respect of investments made during a 24-month period and related
follow-on investments made for a further 36-month period. From 1
April 2020 the carried interest plan operates for a five-year
period in respect of any investments.
Subject to certain exceptions, Plan Participants will receive,
in aggregate, 15% of the net realised cash profits from the
investments and follow-on investments made over the relevant period
once the Company has received an aggregate annualised 10% realised
return on investments and follow-on investments made during the
relevant period. The carried interest plan from 1 April 2020 has an
aggregate annualised 8% realised return on investments and
follow-on investments made during the relevant period, to bring the
plans more in line with market. The Plan Participants' return is
subject to a "catch-up" in their favour. Plan Participants' carried
interests vest over five years for each carried interest plan and
are subject to good and bad leaver provisions. Any unvested carried
interest resulting from a Plan Participant becoming a leaver can be
reallocated by the Remuneration and Nomination Committee. From
2021/22 onwards, the Executive Directors will not be eligible to
participate in new carried interest plans, and instead will
participate in the Long-Term Incentive Plan.
Carried interest is measured at FVTPL with reference to the
performance conditions described above and is deducted from the
valuation of investments measured at FVTPL as this is value of the
Gross Portfolio, which is not due to the Group.
3. Significant accounting policies
Fair value measurement
Management uses valuation techniques to determine the fair value
of financial assets. This involves developing estimates and
assumptions consistent with how market participants would price the
assets. Management bases its assumptions on observable data as far
as possible, but this is not always available, in that case
management uses the best information available. Estimated fair
values may vary from the actual prices that would be achieved in an
arm's length transaction at the reporting date (See Note 4(a)).
4. Critical accounting estimates and judgements
The Directors have made the following judgements and estimates
that have had the most significant effect on the carrying amounts
of the assets and liabilities in the consolidated financial
statement. The estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision and
future periods if the revision affects both current and future
periods. Actual results may differ from estimates. The key
estimates, (4)(a) and (4)(b), and judgements, (4)(c), and (4)(d)
are discussed below. There have been no changes to the accounting
estimates and judgements in the financial year ended 31 March
2021.
a) Valuation of unquoted equity investments at fair value
through the profit and loss
The Group invests into Limited Companies and Limited
Partnerships which are considered to be investment companies that
invest in unquoted equity for the benefit of the Group. These
investment companies are measured at fair value through the profit
or loss based on their net asset value ('NAV') at the year end. The
Group controls these entities and is responsible for preparing
their NAV which is based on the valuation of their unquoted
investments. The Group's valuation of investments measured at fair
value through profit or loss is therefore dependent upon
estimations of the valuation of the underlying portfolio
companies.
The Group, through its controlled investment companies also
invests in investment companies which primarily focus on German or
seed investments. These investments are considered to be 'Fund of
Fund investments' for the Group and are recognised at their NAV at
the year- end date. These Fund of Fund investments are not
controlled by the Group and some do not have coterminous year ends
with the Group.
To value these investments, management obtain the latest audited
financial statements or partner reports of the investments and
discuss further movements with the management of the companies.
Where the Fund of Funds hold investments that are individually
material to the Group, management perform further procedures to
determine that the valuation of these investments has been prepared
in accordance with the Group's valuation policies for portfolio
companies outlined below and these valuations will be adjusted by
the Group where necessary based on the Group valuation policy for
valuing portfolio companies.
The estimates required to determine the appropriate valuation
methodology of unquoted equity investments means there is a risk of
material adjustment to the carrying amounts of assets and
liabilities. These estimates include whether to increase or
decrease investment valuations and require the use of assumptions
about the carrying amounts of assets and liabilities that are not
readily available or observable.
The fair value of unlisted securities is established with
reference to the International Private Equity and Venture Capital
Valuation Guidelines as well as the IPEV Board, Special Valuation
Guidance issued on 31 March 2020 in response to the Covid-19 crisis
("IPEV Guidelines"). An assessment will be made at each measurement
date as to the most appropriate valuation methodology.
The Group invests in early-stage and growth technology
companies, through predominantly unlisted securities. Given the
nature of these investments, there are often no current or
short-term future earnings or positive cash flows. Consequently,
although not considered to be the default valuation technique, the
appropriate approach to determine fair value may be based on a
methodology with reference to observable market data, being the
price of the most recent transaction. Fair value estimates that are
based on observable market data will be of greater reliability than
those based on estimates and assumptions and accordingly where
there have been recent investments by third parties, the price of
that investment will generally provide a basis of the valuation.
Recent transactions may include post year-end as well as pre
year-end transactions depending on the nature and timing of these
transactions.
If this methodology is used, its initial use and the length of
period for which it remains appropriate to use the calibration of
last round price depends on the specific circumstances of the
investment, and the Group will consider whether this basis remains
appropriate each time valuations are reviewed. In addition, the
inputs to the valuation model (e.g. revenue, comparable peer group,
product roadmap) will be recalibrated to assess the appropriateness
of the methodology used in relation to the market performance and
technical/product milestones since the round and the company's
trading performance relative to the expectations of the round.
The Group considers alternative methodologies in the IPEV
Guidelines, being principally price-revenue or price-earnings
multiples, depending upon the stage of the asset, requiring
management to make assumptions over the timing and nature of future
revenues and earnings when calculating fair value. When using
multiples, we consider public traded multiples in similar lines of
business, which are adjusted based on the relative growth potential
and risk profile of the subject company versus the market and to
reflect the degree of control and lack of marketability.
4. Critical accounting estimates and judgements
Where a fair value cannot be estimated reliably, the investment
is reported at the carrying value at the previous reporting date
unless there is evidence that the investment has since been
impaired.
In all cases, valuations are based on the judgement of the
Directors after consideration of the above and upon available
information believed to be reliable, which may be affected by
conditions in the financial markets. Due to the inherent
uncertainty of the investment valuations, the estimated values may
differ significantly from the values that would have been used had
a ready market for the investments existed, and the differences
could be material. Due to this uncertainty, the Group may not be
able to sell its investments at the carrying value in these
financial statements when it desires to do so or to realise what it
perceives to be fair value in the event of a sale. See Notes 27 and
28 for information on unobservable inputs used and sensitivity
analysis on investments held at fair value through the profit and
loss.
b) Carrying amount of goodwill
Determining whether goodwill is impaired requires an estimation
of the recoverable amount of the cash-generating units to which
goodwill is allocated. An impairment review is performed on an
annual basis unless there is a trigger event during the period. The
recoverable amount is based on "value in use" calculations, which
requires estimates of future cash flows expected from the cash
generation unit (CGU) and a suitable discount rate in order to
calculate present value. The key assumptions for the value in use
calculations are the discount rate using pre-tax rates that reflect
the current market assessments of the time value of money and risks
specific to the CGU. The internal rate of return ("IRR") used was
based on past performance and experience. The carrying amount of
the goodwill as at the statement of financial position date was
GBP9.7 million. The Group has conducted a sensitivity analysis on
the impairment test of the CGU and the carrying value.
A higher discount rate in the range of 15%-20% does not reduce
the carrying value of goodwill to less than its recoverable
amount.
The CGU was determined to be the fund managers. This is a
critical management judgement, as they are responsible for
generating deal flow and working with investee companies creating
value and maximising returns for the Group.
c) Control assessment
The Group has a number of entities within its corporate
structure and a judgement has been made of which should be
consolidated in accordance with IFRS 10, and which should not. The
Group consolidates all entities where it has control over the
following: power over the investee to significantly direct the
activities; exposure, or rights, to variable returns from its
involvement with the investee, and the ability to use its power
over the investee to affect the amount of the investor's returns.
The Company does not consolidate qualifying investment companies it
controls in accordance with IFRS 10 and instead recognises them as
investments held at fair value through the profit and loss.
During the year, management have considered the relationships
with Elderstreet Holdings Limited, Elderstreet Investments Limited,
Draper Esprit Employee Benefit Trust, and Grow Trustees Limited and
has deemed their substance to be of control within the Group.
See Note 3(b) for further details.
d) Business combinations
iv. The Directors have undertaken a detailed assessment of the
substance of the transaction through which the Company acquired the
underlying investment vehicles and Esprit Capital Partners LLP and
its subsidiaries with reference to the requirements of IFRS 10 and
IFRS 3. Following that assessment based on the judgement of
Directors, it has been determined that this transaction is
appropriately accounted for as an acquisition.
v. During the year ending 31 March 2021, Draper Esprit Plc
acquired the remaining 69.23% of the issued share capital in
Elderstreet Holdings Limited, the holding company of Elderstreet
Investments Limited (manager of Draper Esprit VCT Plc). Elderstreet
Holdings Limited was held as an Investment in Associate on the
Consolidated Statement of Financial Position as at 31 March 2020.
Total consideration for the remaining issued share capital not
previously held was cash consideration of GBP0.8 million. This
transaction is accounted for under IFRS 3 as a business combination
achieved in stages (or "step acquisition") as this transaction
resulted in Draper Esprit Plc obtaining control over Elderstreet
Holdings Limited. For further details of the acquisition, please
see Note 18.
vi. During the year ending 31 March 2020, the Group acquired the
remaining membership interest in Encore Ventures LLP on 10 March
2020. Prior to this, the Group held a membership interest of 71%
and had determined based on its control assessment (see (4)(c)
above) that the Group had control over Encore Ventures LLP and
consolidated this entity in accordance with IFRS 10. As a result,
the acquisition of the remaining membership interest was assessed
to be a change in ownership interest and is accounted for as such
under IFRS 10. This is not deemed to be a business combination.
5. Change in gains on investments held at fair value through the
profit and loss
Year ended Year ended
31 March 31 March
2021 2020
GBP'000s GBP'000s
----------------------------------------------------- ---------- ----------
Change in unrealised gains on investments held at
fair value through the profit and loss 183,575 (4,266)
----------------------------------------------------- ---------- ----------
Change in realised gains on investments held at fair
value through the profit and loss 143,941 21,921
----------------------------------------------------- ---------- ----------
Net foreign exchange (loss)/gain on investments held
at fair value through the profit and loss (51,209) 23,100
----------------------------------------------------- ---------- ----------
Total movements on investments held at fair value
through the profit and loss 276,307 40,755
----------------------------------------------------- ---------- ----------
6. Fee income
Revenue is derived solely within the UK, from continuing
operations for all years. An analysis of the Group's revenue is as
follows:
Year ended Year ended
31 March 31 March
2021 2020
GBP'000s GBP'000s
-------------------------- ---------- ----------
Management fees 12,462 11,213
Portfolio directors' fees 45 42
-------------------------- ---------- ----------
Total fee income 12,507 11,255
-------------------------- ---------- ----------
7. General administrative expenses
Administrative expenses comprise:
Year ended Year ended
31 March 31 March
2021 2020
GBP'000s GBP'000s
----------------------------------------------------- ---------- ----------
General employee and employee related expenses (Note
9) 9,950 6,074
Legal and professional 1,423 1,827
Travel expenses 97 349
Marketing expenses 705 741
IT expenses 157 85
Building costs and rates 420 503
Other administrative costs 1,092 231
----------------------------------------------------- ---------- ----------
Total administrative expenses 13,844 9,810
----------------------------------------------------- ---------- ----------
8. Profit from operations
The profit for the year has been arrived at after charging:
Year ended Year ended
31 March 31 March
2021 2020
GBP'000s GBP'000s
---------------------------------------------------------- ---------- ----------
Fees paid to the Company's auditor for the audit of
the Group and Company annual accounts 188 146
Fees payable to the company's auditor for other services:
Audit of the accounts of subsidiaries and related
undertakings 76 75
Audit-related assurance services 44 43
Non-audit services 31 -
---------------------------------------------------------- ---------- ----------
Total fees payable to the Company's auditors 339 264
---------------------------------------------------------- ---------- ----------
Non-audit services paid to the Company's Auditors in the year
were GBP17k in relation to CASS reporting to the FCA in respect of
certain subsidiaries, GBP27k in respect of the review of the
Company's interim financial statements and GBP31k in respect of ESG
advisory work (note - this was commenced before 1 December
2020)./
9. Employee and employee-related expenses
Employee benefit expenses (including Directors) comprise:
Year ended Year ended
31 March 31 March
2021 2020
GBP'000s GBP'000s
------------------------------------------------------- ---------- ----------
Wages and salaries 7,585 4,595
Defined contribution pension costs 677 278
Benefits (healthcare and life assurance) 172 127
Recruitment costs 38 473
Social security contributions and similar taxes 1,478 601
------------------------------------------------------- ---------- ----------
General employee and employee related expenses 9,950 6,074
------------------------------------------------------- ---------- ----------
Share-based payment expense arising from company share
option scheme 1,548 990
------------------------------------------------------- ---------- ----------
Total employee benefit expenses 11,498 7,064
------------------------------------------------------- ---------- ----------
The monthly average number of persons (including Executive and
Non-executive Directors) employed by the Group during the year
was:
Year ended Year ended
31 March 31 March
2021 2020
Number Number
--------------- ---------- ----------
Directors 6 6
Investment 12 12
Infrastructure 19 15
Total 37 33
--------------- ---------- ----------
Infrastructure comprises finance, marketing, human resources,
legal, IT, and administration.
10. Net finance (expense)/income
Year ended Year ended
31 March 31 March
2021 2020
GBP'000s GBP'000s
---------------------------------------------------- ---------- ----------
Interest on leases (Note 20i) (84) (94)
---------------------------------------------------- ---------- ----------
Interest and expenses on loans and borrowings (Note
20ii) (2,009) (1,497)
---------------------------------------------------- ---------- ----------
Net foreign exchange loss (3,348) -
---------------------------------------------------- ---------- ----------
Finance costs (5,441) (1,591)
---------------------------------------------------- ---------- ----------
Net foreign exchange gain - 1,234
Interest income on cash and cash equivalents 284 289
---------------------------------------------------- ---------- ----------
Finance income 284 1,523
---------------------------------------------------- ---------- ----------
Net finance (expense)/income (5,157) (68)
---------------------------------------------------- ---------- ----------
11. Income taxes
The charge to tax, which arises in the Group and the corporate
subsidiaries included within these financial statements, is:
Year ended Year ended
31 March 31 March
2021 2020
GBP'000s GBP'000s
------------------------------------------------------ ---------- ----------
Current tax expense
Current tax on profits for the year 339 2
Adjustments for under/(over) provision in prior years (65) 35
------------------------------------------------------ ---------- ----------
Total current tax 274 37
Deferred tax expense
Arising on business combinations (Note 18) (23) (20)
Other temporary differences (225) -
------------------------------------------------------ ---------- ----------
Total deferred tax (248) (20)
------------------------------------------------------ ---------- ----------
The UK standard rate of corporation tax is 19% (for the year
ending 31 March 2020: 19%).
The reasons for the difference between the actual tax charge for
the year and the standard rate of corporation tax in the United
Kingdom applied to profit/(loss) for the year before tax are as
follows:
Year ended Year ended
31 March 31 March
2021 2020
GBP'000s GBP'000s
-------------------------------------------------------- ---------- ----------
Profit/(loss) for the year before tax 267,421 40,383
-------------------------------------------------------- ---------- ----------
Profit/(loss) on ordinary activities of Group companies
before tax
Tax using the Company's domestic tax rate of 19% (2020:
19%) 50,810 7,673
Income not subject to tax (18) -
Unrealised gains on investments (50,713) (7,743)
Others (53) 87
-------------------------------------------------------- ---------- ----------
Total tax charge for the year 26 17
-------------------------------------------------------- ---------- ----------
12. Earnings per share and net asset value
The calculation of basic earnings per share is based on the
profit attributable to shareholders and the weighted average number
of shares. When calculating the diluted earnings per share, the
weighted average number of shares in issue is adjusted for the
effect of all dilutive share options and awards.
Weighted
Profit after average
tax no. of Pence per
Basic earnings per ordinary share GBP'000s shares '000 share
------------------------------------ -------------- ------------ -----------
For the year ended 31 March 2021 267,421 128,860 208
------------------------------------ -------------- ------------ -----------
For the year ended 31 March 2020 39,707 118,013 34
------------------------------------ -------------- ------------ -----------
Weighted
Profit after average
tax no. of Pence
Diluted earnings per ordinary share GBP'000s shares '000 per share
------------------------------------ ------------ ------------ ----------
For the year ended 31 March 2021 267,421 129,741 206
------------------------------------ ------------ ------------ ----------
For the year ended 31 March 2020 39,707 120,961 33
------------------------------------ ------------ ------------ ----------
Net asset value per share is based on the net asset attributable
to shareholders and the number of shares as at the balance sheet
date. When calculating the diluted earnings per share, the number
of shares in issue at balance sheet date is adjusted for the effect
of all dilutive share options and awards.
No. of shares
at balance
Net assets sheet date Pence per
Net asset value per ordinary share GBP'000s '000 share
------------------------------------- ---------- ------------- ---------
31 March 2021 1,033,141 139,097 743
------------------------------------- ---------- ------------- ---------
31 March 2020 659,618 118,918 555
------------------------------------- ---------- ------------- ---------
No. of shares
at balance
Net assets sheet date Pence per
Diluted net asset value per ordinary share GBP'000s '000 share
------------------------------------------- ---------- ------------- ---------
31 March 2021 1,033,141 140,044 738
------------------------------------------- ---------- ------------- ---------
31 March 2020 659,618 121,609 542
------------------------------------------- ---------- ------------- ---------
Dividends: There were no Dividends paid out in the year to 31
March 2021 (2020: nil).
13. Share-based payments
b/f FV per
1 April c/f Approved Exercise granted
Date of 2020 Granted Lapsed Exercised 31 March options Vesting price instrument
Grant (No.) (No.) (No.) (No.) 2021 (No.) period (p) (p)
---------- ----------- --------- ------- --------- ----------- --------- -------- ------- -------- ----------
Draper
Esprit
Plc 2016
Company
Share
Options
Plan
(CSOP) 28/11/2016 1,216,034 - - (603,075) 612,959 33,800 3 years 355 64.1
---------- ----------- --------- ------- --------- ----------- --------- -------- ------- -------- ----------
28/11/2016 101,685 - - - 101,685 - 3 years 355 89.3
---------------------- --------- ------- --------- ----------- --------- -------- ------- -------- ----------
11/11/2017 160,000 - (20,000) (20,000) 120,000 8,356 3 years 354 89.8
---------------------- --------- ------- --------- ----------- --------- -------- ------- -------- ----------
28/11/2017 1,155,364 - (45,775) (741,254) 368,335 6,831 3 years 387 70.9
---------------------- --------- ------- --------- ----------- --------- -------- ------- -------- ----------
28/11/2017 116,016 - - - 116,016 - 3 years 387 97.9
---------------------- --------- ------- --------- ----------- --------- -------- ------- -------- ----------
30/07/2018 1,027,500 - (184,950) - 842,550 - 3 years 492 152.9
---------------------- --------- ------- --------- ----------- --------- -------- ------- -------- ----------
30/07/2018 102,750 - - - 102,750 - 3 years 492 186.4
---------------------- --------- ------- --------- ----------- --------- -------- ------- -------- ----------
12/02/2019 796,868 - (61,566) - 735,302 - 3 years 530 67.8
---------------------- --------- ------- --------- ----------- --------- -------- ------- -------- ----------
12/02/2019 75,000 - - - 75,000 - 3 years 530 95.2
---------------------- --------- ------- --------- ----------- --------- -------- ------- -------- ----------
26/11/2019 200,000 - - - 200,000 - 3 years 467 71.5
---------------------- --------- ------- --------- ----------- --------- -------- ------- -------- ----------
29/06/2020 - 200,000 - - 200,000 - 3 years 449 81.2
---------------------- --------- ------- --------- ----------- --------- -------- ------- -------- ----------
Draper
Esprit
Plc Long
Term
Incentive
Plan
(LTIP) 29/06/2020 - 583,645 (1,949) - 581,696 - 3 years 1 449.0
---------- ----------- --------- ------- --------- ----------- --------- -------- ------- -------- ----------
Total 4,951,217 783,645 (314,240) (1,364,329) 4,056,293 48,987
----------------------- --------- ------- --------- ----------- --------- -------- ------- -------- ----------
Both the CSOP and LTIP are as of 31 March 2021 partly
administered by the Draper Esprit Employee Benefit Trust ("Trust").
The Trust is consolidated in these consolidated financial
statements. The Trust may purchase shares from the market and, from
time to time, when the options are exercised, the Trust transfers
the appropriate amount of shares to the employee or sells these as
agent for the employee. The proceeds received, net of any directly
attributable transaction costs, are credited directly to equity.
Shares held by the Trust at the end of the reporting period are
shown as own shares in the financial statements (see Note 24i). Of
the 1,364,329 options exercised during the year, 359,131 were
satisfied with new ordinary shares issued by Draper Esprit Plc (see
Note 23).
For share options granted under the Draper Esprit Plc 2016
Company Share Options Plan, the Black-Scholes Option Pricing Model
has been used for valuation purposes. All options are settled in
shares. Volatility is expected to be in the range of 20-30% based
on an analysis of the Company's and peer group's share price. The
risk-free rate used was 0.73% and 1.57% and was taken from zero
coupon United Kingdom government bonds on a term consistent with
the vesting period.
There are no performance conditions attached to the share
options granted under the Draper Esprit Plc 2016 Company Share
Options Plan.
Share options granted during the year under the LTIP vest if
certain performance standards are met. The amount of options that
will vest depends on performance conditions included within the
agreement relating to realisations, assets under management, and
Total Shareholder Return ("TSR"). These options are granted under
the plan for no consideration and are granted at a nominal value of
1p. All options are settled in shares. The fair value of the LTIP
shares will be valued using an adjusted form of the Black-Scholes
model which includes a Monte Carlo simulation model. A six-monthly
review takes place of non-market performance conditions and as at
31 March 2021 we are currently on target for LTIPs issued in
2020.
The share-based payment charge for the year is GBP1.5 million
(year ended 31 March 2020: GBP1.0 million). This also includes
amounts of GBP0.7 million, which was paid out during the year and
was in substance deemed to be a cash-settled share based
payment.
14. Intangible assets
Customer
Goodwill(1) contracts(2) Total
Year ended 31 March 2021 GBP'000s GBP'000s GBP'000s
--------------------------------------------- ----------- ------------- ---------
Cost
Cost carried forward as at 1 April 2020 9,653 818 10,471
Acquisition of business (see Note 18) 697 328 1,025
--------------------------------------------- ----------- ------------- ---------
Cost as at 31 March 2021 10,350 1,146 11,496
Accumulated amortisation
Amortisation carried forward as at 1 April
2020 - (443) (443)
Charge for the year - (117) (117)
--------------------------------------------- ----------- ------------- ---------
Accumulated amortisation as at 31 March 2021 - (560) (560)
Net book value:
As at 31 March 2021 10,350 586 10,936
--------------------------------------------- ----------- ------------- ---------
As at 31 March 2020 9,653 375 10,028
--------------------------------------------- ----------- ------------- ---------
Customer
Goodwill(1) contracts(2) Total
Year ended 31 March 2020 GBP'000s GBP'000s GBP'000s
--------------------------------------------- ----------- ------------- ---------
Cost
Cost carried forward as at 1 April 2019 9,653 818 10,471
Additions during the year - - -
--------------------------------------------- ----------- ------------- ---------
Cost as at 31 March 2020 9,653 818 10,471
Accumulated amortisation
Amortisation carried forward as at 1 April
2019 - (341) (341)
Charge for the year - (102) (102)
--------------------------------------------- ----------- ------------- ---------
Accumulated amortisation as at 31 March 2020 - (443) (443)
Net book value:
As at 31 March 2020 9,653 375 10,028
--------------------------------------------- ----------- ------------- ---------
As at 31 March 2019 9,653 477 10,130
--------------------------------------------- ----------- ------------- ---------
1. During the year, goodwill of GBP0.7 million arose on the step
acquisition of all issued share capital in Elderstreet Holdings
Limited. Elderstreet Holdings Limited is the holding company of
Elderstreet Investments Limited, a VCT manager incorporated in the
UK, on 9 February 2021 and represents the value of the acquired
expertise and knowledge of the investment team. The Directors have
identified the fund managers as the cash-generating unit ("CGU")
being the smallest group of assets that generates cash inflows
independent of cash flows from other assets or groups of assets.
The fund managers are responsible for generating deal flow and
working closely with the investee companies to create value and
maximise returns for the Group. The Group tests Goodwill annually
for impairment comparing the recoverable amount using value-in-use
calculations and the carrying amount. Value-in-use calculations are
based on future expected cash flows generated by the CGU fee income
from management fees over the next three years with reference to
the most recent financial budget and forecasts. A three-year cash
flow period was deemed appropriate for value in use calculation
given the terms of the Investment Management Agreement. The key
assumptions for the value in use calculations are the discount rate
using pre-tax rates that reflect the current market assessments of
the time value of money and risks specific to the CGU. The internal
rate of return ("IRR") will be based on past performance and
experience.
Goodwill of GBP9.7 million arose on the acquisition of all the
capital interests in Esprit Capital Partners LLP, a Venture Capital
manager based in the UK, on 15 June 2016 and represents the value
of the acquired expertise and knowledge of the fund managers. The
Directors have identified the fund managers as the cash-generating
unit ("CGU") being the smallest group of assets that generates cash
inflows independent of cash flows from other assets or groups of
assets. The fund managers are responsible for generating deal flow
and working closely with investee companies to create value and
maximising returns for the Group. The Group tests goodwill annually
for impairment comparing the recoverable amount using value-in-use
calculations and the carrying amount. Value-in-use calculations are
based on future expected cash flows generated by the CGU fee income
from management fees over the next five years with reference to the
most recent financial budget and forecasts.
A 5-year cash flow period was deemed appropriate for the value
in use calculation given the patient capital model adopted by the
Group. The key assumptions for the value in use calculations are
the discount rate using pre-tax rates that reflect the current
market assessments of the time value of money and risks specific to
the CGU. The internal rate of return ("IRR") used was based on past
performance and experience. The discount rate used was 10% and the
IRR used was 20%.
2. An intangible asset of GBP0.3 million was recognised in
respect of the anticipated profit from the participation in
Elderstreet Investments Limited following the acquisition of the
remaining issued share capital the Group did not previously owned
on 9 February 2021.
In FY17, an intangible asset of GBP0.8 million was recognised in
respect of the anticipated profit from the participation in Encore
Ventures LLP as a consequence of the acquisition of Esprit Capital
Partners LLP.
15. Investments in associates and related undertakings
Investments in associates
Until 9 February 2021, Elderstreet Holdings Limited (registered
office: 20 Garrick Street, London, United Kingdom, WC2E 9BT), the
holding company of Elderstreet Investments Limited, was accounted
for as an Investment in Associate following acquisition of a 30.77%
stake in the entity on 24 November 2016. The initial consideration
of GBP0.26 million was satisfied by the issue of 73,667 new
ordinary shares of 1 pence each in the capital of the Company. The
Group's share of profits until 9 February 2021 was not
material.
On 9 February 2021, the remaining stake in Elderstreet
Investments Limited was purchased by Draper Esprit Plc and this was
accounted for as a step acquisition. Please see Note 18 for further
details. No Investment in Associate is recognised on the
Consolidated Statement of Financial Position at 31 March 2021.
Related undertakings
Please see below details of investments held by the Group's
investment companies, where the ownership percentage or partnership
interest exceeds 20%:
Interest FD
category* at
reporting date
Type of share / partnership
Name Address holding interest
--------------------- -------------------------------- --------------------- ---------------
SportPursuit Limited Unit 1.18, Canterbury Court, Ordinary shares E
Kennington Park, Preference shares
1-3 Brixton Road, London,
England, SW9 6DE
--------------------- -------------------------------- --------------------- ---------------
Bright Computing Kingsfordweg 151, 1043 GR Ordinary shares E
Holding B.V. Amsterdam, the Netherlands Preference shares
--------------------- -------------------------------- --------------------- ---------------
RavenPack Holding Churerstrasse 135, CH-8808 Ordinary shares D
AG Pfäffikon, Switzerland Preference shares
--------------------- -------------------------------- --------------------- ---------------
Earlybird GmbH & c/o Earlybird Venture Capital,
Co. Beteiligungs-KG Maximilianstr. 14, 80539,
IV München Partnership interest 27%
--------------------- -------------------------------- --------------------- ---------------
c/o Earlybird Venture Capital,
Earlybird DWES Fund Maximilianstr. 14, 80539,
VI GmbH & Co. KG München Partnership interest 56.5%
--------------------- -------------------------------- --------------------- ---------------
c/o Earlybird Venture Capitarl,
Earlybird Special Maximilianstr. 14, 80539,
Opportunities LP München Partnership interest 34.8%
--------------------- -------------------------------- --------------------- ---------------
* Fully diluted interest categorised as follows: Cat A: 0-5%,
Cat B: 6-10%, Cat C: 11-15%, Cat D: 16-25%, Cat E: >25%.
Details of the fair value of the 17 core companies are detailed
as part of the Gross Portfolio Value table on page 59 of the Annual
Report.
The latest publicly available accounts for the related
undertakings above reflect the following net asset and profit or
loss positions. These relate to historic periods:
- SportPursuit Limited: Net assets as at 30 November 2019 of
GBP1.1 million and loss for the 11 month period ending 30 November
2019 of GBP0.6 million.
- Bright Computing Holding B.V.: Net liabilities as at 31
December 2018 of US$6.9 million and a loss for the year ending 31
December 2018 of US$4.3 million.
16. Financial assets held at fair value through profit and
loss
The Group holds investments through investment vehicles it
manages. The investments are predominantly in unlisted securities
and are carried at fair value through the profit and loss. The
Group's valuation policies are set out in Note 4(a) and Note 28.
The table below sets out the movement in the balance sheet value of
investments from the start to the end of the year, showing
investments made, cash receipts and fair value movements.
Year ended Year ended
31 March 31 March
2021 2020
GBP'000s GBP'000s
--------------------------------------------------- ---------- ----------
As at 1 April 657,333 562,061
Investments made in the year 127,976 89,935
Loans repaid from underlying investment vehicles (206,341) (39,533)
Loans made to underlying investment vehicles 11,813 4,115
Unrealised gains on the revaluation of investments 276,307 40,755
--------------------------------------------------- ---------- ----------
As at 31 March 867,088 657,333
--------------------------------------------------- ---------- ----------
17. Property, plant and equipment
Right of
use Leasehold Computer
assets improvements equipment Total
Year ended 31 March 2021 GBP'000s GBP'000s GBP'000s GBP'000s
----------------------------------- --------- ------------- ---------- ----------
Cost
Cost carried forward as at 1 April
2020 1,614 680 72 2,366
Additions during the year - 88 55 143
----------------------------------- --------- ------------- ---------- ----------
Disposals during the year - - (8) (8)
----------------------------------- --------- ------------- ---------- ----------
Cost as at 31 March 2021 1,614 768 119 2,501
Accumulated depreciation
Depreciation carried forward as at
1 April 2020 (306) (261) (39) (606)
Charge for the year (348) (163) (22) (533)
----------------------------------- --------- ------------- ---------- ----------
Disposals during the year - - 6 6
----------------------------------- --------- ------------- ---------- ----------
Accumulated depreciation as at 31
March 2021 (654) (424) (55) (1,133)
Net book value:
As at 31 March 2021 960 344 64 1,368
----------------------------------- --------- ------------- ---------- ----------
As at 31 March 2020 1,308 419 33 1,760
----------------------------------- --------- ------------- ---------- ----------
Right of
use Leasehold Computer
assets improvements equipment Total
Year ended 31 March 2020 GBP'000s GBP'000s GBP'000s GBP'000s
----------------------------------- --------- ------------- ---------- ---------
Cost
Cost carried forward as at 1 April
2019(1) 835 327 57 1,219
Additions during the year 779 353 15 1,147
----------------------------------- --------- ------------- ---------- ---------
Cost as at 31 March 2020 1,614 680 72 2,366
Accumulated depreciation
Depreciation carried forward as at
1 April 2019 - (147) (28) (175)
Charge for the year (306) (114) (11) (431)
----------------------------------- --------- ------------- ---------- ---------
Accumulated depreciation as at 31
March 2020 (306) (261) (39) (606)
Net book value:
As at 31 March 2020 1,308 419 33 1,760
----------------------------------- --------- ------------- ---------- ---------
As at 31 March 2019 - 180 29 209
----------------------------------- --------- ------------- ---------- ---------
For further information on right-of-use assets, please see the
leases note - Note 20i.
1 1 April 2019 figure includes adjustment for IFRS 16 conversion
under right of use assets - please see Note 20 for further
details.
18. Acquisition of subsidiaries
Elderstreet
On 9 February 2021, Draper Esprit Plc acquired the remaining
69.23% of the issued share capital in Elderstreet Holdings Limited,
the holding company of Elderstreet Investments Limited (manager of
Draper Esprit VCT Plc). Elderstreet Holdings Limited was held as an
Investment in Associate on the Consolidated Statement of Financial
Position as at 31 March 2020. Total consideration for the remaining
issued share capital not previously held was GBP792,148 (with an
amount withheld for tax on share options). This transaction is
accounted for under IFRS 3 as a business combination achieved in
stages (or "step acquisition") as this transaction resulted in
Draper Esprit Plc obtaining control over Elderstreet Holdings
Limited and Elderstreet Investments Limited (as its 100% owned
subsidiary). As the Group own 100% of Elderstreet Holdings Limited
following the acquisition, no non-controlling interest will be
recognised.
The assets and liabilities recognised as a result of the
acquisition are as follows:
Recognised amounts of identifiable net assets: GBP'000s
----------------------------------------------- --------
Intangible assets 328^
Cash and cash equivalents 94
Trade and other receivables 87
----------------------------------------------- --------
Net identifiable assets acquired 509
----------------------------------------------- --------
Add: goodwill 635
----------------------------------------------- --------
Add: Deferred tax on intangible asset 62
----------------------------------------------- --------
Net assets acquired 1,206
----------------------------------------------- --------
^ Previously unrecognised intangible asset relating to the
anticipated profit from the participation in Elderstreet
Investments Limited.
Goodwill represents the investment team's ability to drive value
creation by generating deal flow and fundraising, leveraging their
networks and years of experience and expertise to work closely with
investee companies to create value and thereby maximise returns for
the Group.
The outflow of cash to acquire the subsidiary, net of cash
acquired was GBP0.6 million. The acquisition date fair value of the
equity interest in the acquiree held by the acquirer immediately
before the acquisition was GBP0.4 million. A gain of GBP0.1 million
was recognised as a result of remeasuring to fair value the equity
interest in the subsidiary held by the Group before the business
combination, which has been recognised in other income in the
consolidated statement of comprehensive income.
The fair value of acquired trade receivables is Nil.
Revenue contributed and net profit of the acquired business to
the Group between 9 February 2021 and 31 March 2021 was immaterial.
If the acquisition had taken place on 1 April 2020, consolidated
pro-forma revenue and profit for the year ended 31 March 2021 would
have been GBP277.5 million and GBP267.2 million respectively. These
amounts have been calculated using the subsidiary's results and
adjusting them for:
-- Differences in accounting policies between the group and subsidiary; and
-- The additional depreciation and amortisation that would have
been charged, if the fair value adjustments to intangible assets
had applied from 1 April 2020.
Immaterial acquisition-related costs not directly attributable
to the issue of shares are included in administrative expenses in
the consolidated statement of comprehensive income and in operating
cash flows in the statement of cash flows.
Encore Ventures LLP
During the year ending 31 March 2020, the Group acquired the
remaining economic and beneficial membership interest in Encore
Ventures LLP on 10 March 2020. Prior to this, the Group held a
membership interest of 71%. This resulted in a change in ownership
interest which did not result in a loss of control and has been
accounted for in accordance with IFRS 10.
Consideration for the remaining interest in Encore Ventures was
cash to the amount of GBP4.0 million. Pursuant to the Acquisition
Agreement relating to the sale and purchase of certain membership
interests in Encore Ventures LLP as well as the associated
Subscription Agreements also dated 10 March 2020, Draper Esprit Plc
issued 796,812 1p ordinary shares immediately subscribed to by
those partners selling their interest in Encore Ventures LLP. The
fair value of the equity shares issued was based on the market
value of Draper Esprit Plc's traded shares on the 10 March 2020 and
amounted to GBP4.0 million.
As a result of this transaction, the balance of the
non-controlling interest reported in the consolidated statement of
financial position as at 31 March 2020 is nil. The profit
attributable to non-controlling interest for the period to 10 March
2020 is GBP0.7 million and is reflected in the consolidated
statement of comprehensive income for the year ended 31 March
2020.
19. Trade and other receivables
31 March 31 March
2021 2020
GBP'000s GBP'000s
---------------------------------------------------- --------- ---------
Trade receivables 2,535 2,669
Other receivables and prepayments 1,165 1,358
Loans made to related investment vehicles (Note 30) - 3,692
---------------------------------------------------- --------- ---------
Total 3,700 7,719
---------------------------------------------------- --------- ---------
The ageing of trade receivables at reporting date is as
follows:
31 March 31 March
2021 2020
GBP'000s GBP'000s
-------------------- --------- ---------
Not past due 710 242
Past due 1-30 days 786 45
Past due 31-60 days 761 34
More than 60 days 278 2,348
-------------------- --------- ---------
Total 2,535 2,669
-------------------- --------- ---------
The maximum exposure to credit risk of the receivables at the
reporting date is the fair value of each class of receivable
mentioned above. The Group does not hold any collateral as
security.
20. Financial liabilities
31 March 31 March
2021 2020
GBP'000s GBP'000s
---------------------------------------- --------- ---------
Current
Leases (345) (358)
Loans and borrowings - -
Total current financial liabilities (345) (358)
---------------------------------------- --------- ---------
Non-current
Leases (669) (975)
Loans and borrowings 393 (44,636)
Total non-current financial liabilities (276) (45,611)
---------------------------------------- --------- ---------
Total Financial liabilities (621) (45,969)
---------------------------------------- --------- ---------
20(i). Leases
This Note provides information for leases where the Group is a
lessee. The Group is not a lessor.
Real Estate Leases
The Group leases office buildings in London for use by its
staff. The Group also has an office in Dublin and had an office in
Cambridge until Q3 FY21, however these contracts are classified as
service contracts and not leases. Information about leases for
which the Group is a lessee is presented below.
The Group leases IT equipment such as printers for use by staff.
The Group has elected to apply the recognition exemption for leases
of low value to these leases.
(i) Amounts recognised on consolidated statement of financial
position
20. Financial liabilities
Right-of-use assets
31 March 31 March
2021 2020
GBP'000s GBP'000s
-------------------------- --------- ---------
Property 960 1,308
-------------------------- --------- ---------
Total right-of-use assets 960 1,308
-------------------------- --------- ---------
Lease liabilities
31 March 31 March
2021 2020
GBP'000s GBP'000s
------------------------ --------- ---------
Current 345 358
------------------------ --------- ---------
Non-current 669 975
------------------------ --------- ---------
Total lease liabilities 1,014 1,333
------------------------ --------- ---------
Additions to the right-of-use assets during the year ending 31
March 2021 was Nil (year ending 31 March 2020: GBP0.8 million).
(ii) Amounts recognised in the consolidated statement of profit
or loss
The following amounts relate to leases:
Amounts recognised in the consolidated statement of
comprehensive income
Year ended Year ended
31 March 31 March
2021 2020
GBP'000s GBP'000s
----------------------------------------------------------- ---------- ----------
Interest on lease liabilities (84) (94)
Depreciation charge for the period on right-of-use
assets (348) (306)
Expenses relating to short-term leases - -
Expenses relating to leases of low-value assets, excluding
short-term leases of low-value assets (4) (5)
----------------------------------------------------------- ---------- ----------
The total cash outflow for leases in the year ending 31 March
2021 was GBP0.4 million (year ending 31 March 2020 GBP0.3 million
in respect of rental payments and a contribution of GBP0.2 million
for a rent-free period on the 3rd floor of 20 Garrick Street -
these appear net in the consolidated statement of cash flows).
20(ii). Loans and borrowings
In June 2019 the Company entered into a revolving credit
facility agreement with Silicon Valley Bank and Investec (together
the "Financiers") of GBP50.0 million over a three-year term to
provide financial flexibility and to fund the future growth plans
of investee companies. This was extended in June 2020 by GBP10.0
million to GBP60.0 million with a maturity of June 2023. See Note
33 for post year-end activity. The Company incurred initial costs
of GBP0.5 million in the year ending 31 March 2020 and GBP0.3
million in the year ending 31 March 2021 in respect of the increase
and extension of the facility in June 2020, which are both
presented within loans and borrowings on the statement of financial
position and are amortised over the life of the facility.
Interest-related charges are reported in the consolidated statement
of comprehensive income as finance costs (see Note 10). The bank
loans are secured on agreed assets of the Group within the asset
class of investments, updated as agreed with the Financiers from
time to time, and are subject to customary financial and
non-financial conditions with which the Group must comply.
The new facility agreement introduced financial and
non-financial covenants.
a. There must be a minimum of 10 core investments at all times
(core investments are not defined in the same way as in this report
as it is more broadly defined);
b. The ratio of the NAV of all investments (as defined in the
agreement) to original investment cost should not be less than
1.1:1.0 at any time; and
c. The ratio of the NAV (as defined in the agreement) plus
amounts in the collateral account to financial indebtedness (as
defined in the agreement) should not be less than 10:1 at any
time.
20. Financial liabilities
In addition, the borrowing base (as defined in the agreement)
must exceed the facility amount.
As collateral for interest payments, an amount equal to the
aggregate amount of interest costs due for the coming six months,
all being equal, must always be held in an Interest Reserve
Account. The balance of this at 31 March 2021 was GBP2.3 million
(31 March 2020: GBP1.9 million) and is reflected on the
consolidated statement of financial position as restricted
cash.
The debt facility is repayable on maturity (June 2023 - see Note
33 for post year-end activity) but may become repayable earlier if
certain conditions are not met.
As at 31 March 2021, the Company has drawn down Nil of the
GBP60.0 million facility (31 March 2020: GBP45.0 million of the
GBP50.0 million facility).
31 March 31 March
2021 2020
GBP'000s GBP'000s
----------------------------------------- ------------- -------------
Bank loan senior facility amount 60,000 50,000
----------------------------------------- ------------- -------------
Interest rate BOE base BOE base
rate + 6.75% rate + 6.75%
/ 7.50% / 7.50%
floor floor
----------------------------------------- ------------- -------------
Drawn at balance sheet date - 45,000
----------------------------------------- ------------- -------------
Arrangement fees (393) (364)
----------------------------------------- ------------- -------------
Loan liability balance (393) 44,636
----------------------------------------- ------------- -------------
Undrawn facilities at balance sheet date 60,000 5,000
----------------------------------------- ------------- -------------
21. Trade and other payables
31 March 31 March
2021 2020
GBP'000s GBP'000s
----------------------------------- --------- ---------
Trade payables (557) (739)
Other taxation and social security (389) (280)
Other payables (200) (164)
Accruals and deferred income (8,499) (3,855)
----------------------------------- --------- ---------
Total (9,645) (5,038)
----------------------------------- --------- ---------
All trade and other payables are short-term.
Included in accruals and deferred income is an amount relating
to accrued tax expense of GBP0.3 million.
22. Deferred tax
Deferred tax is calculated in full on temporary differences
under the liability method using a tax rate of 19% (2020: 19%). The
movement on the deferred tax account is shown below:
31 March 31 March
2021 2020
GBP'000s GBP'000s
------------------------------------------ --------- ---------
Arising on business combination (114) (75)
Arising on co-invest and carried interest (520) (414)
Other timing differences 272 (122)
------------------------------------------ --------- ---------
As at 31 March (362) (611)
------------------------------------------ --------- ---------
Deferred tax arising on business combination is subject to
amortisation within the consolidated statement of comprehensive
income.
23. Share capital and share premium
Ordinary share capital
31 March 2021 - Allotted and fully paid Number Pence GBP'000s
------------------------------------------ ----------- ----- --------
At the beginning of the year 118,918,124 1 1,189
Issue of share capital during the year(1) 359,131 1 4
Issue of share capital during the year(2) 19,819,820 1 198
------------------------------------------ ----------- ----- --------
As at the end of the year 139,097,075 1 1,391
------------------------------------------ ----------- ----- --------
1. Between August 2020 and March 2021, 359,131 new 1p ordinary
shares were issued in association with share options being
exercised.
2. In October 2020, the company secured commitments to raise
gross proceeds of GBP110.0 million at a placing price of 555 pence
per share by way of a conditional placing of 19,819,820 new
ordinary shares.
31 March 2020 - Allotted and fully paid Number Pence GBP'000s
------------------------------------------ ----------- ----- --------
At the beginning of the year 117,925,470 1 1,179
Issue of share capital during the year(1) 195,842 1 2
Issue of share capital during the year(2) 796,812 1 8
------------------------------------------ ----------- ----- --------
As at the end of the year 118,918,124 1 1,189
------------------------------------------ ----------- ----- --------
1. Between 24 December 2019 and 21 February 2020, 195,842 new 1p
ordinary shares were issued in association with share options being
exercised.
2. On 10 March 2020, as part of the acquisition agreement
relating to the remaining interest in Encore Ventures LLP (see Note
18) it was agreed that the Company would issue 796,812 new ordinary
shares at 502p.
Share premium
Year ended Year ended
31 March 31 March
2021 2020
Allotted and fully paid GBP'000s GBP'000s
------------------------------------------------- ---------- ----------
At the beginning of the year 400,726 395,783
Premium arising on the issue of ordinary shares^ 111,073 4,983
Equity issuance costs (3,520) (40)
------------------------------------------------- ---------- ----------
As at the end of the year 508,279 400,726
------------------------------------------------- ---------- ----------
^ The movement on share premium during the year ending 31 March
2021 has arisen as a result of 359,131 ordinary shares issued in
association with share options being exercised during the year and
the issue of 19,819,820 ordinary shares issued by way of a
conditional placing in October 2020.
The movement on share premium during the year ending 31 March
2020 has arisen as a result of 195,842 ordinary shares issued in
association with share options being exercised during the year, and
the issue of 796,812 shares of ordinary shares at 502 pence in
association with the transaction to purchase the additional
interest in Encore Ventures LLP (see Note 18).
24. Own shares and other reserves
(i) Own shares reserve
Own shares
Number
of shares
000's GBP'000s
-------------------------------------------- ---------- --------
Opening balance as at 1 April 2020 - -
Acquisition of shares by the Trust (350) (2,267)
Disposal or transfer of shares by the Trust 235 1,936
-------------------------------------------- ---------- --------
Balance as at 31 March 2021 (115) (331)
-------------------------------------------- ---------- --------
Own shares are shares in Draper Esprit Plc that are held by
Draper Esprit Employee Benefit Trust ("Trust") for the purposes of
issuing shares under the Draper Esprit Plc 2016 Company Share
Options Plan and Long-Term Incentive Plan (see Note 13 for further
details). Shares issued to employees are recognised on a weighted
average cost basis. The Trust holds under 0.1% of issued share
capital at 31 March 2021.
24. Own shares and other reserves
(ii) Other reserves
The following table shows a breakdown of the "other reserves"
line in the consolidated statement of financial position and the
movements in those reserves during the year. A description of the
nature and purpose of each reserve is provided below this
table.
Share-based Share-based
payments reserve payments reserve
resulting from resulting from
Merger relief company share acquisition Total other
reserve option scheme of subsidiary reserves
(GBP'000s) (GBP'000s) (GBP'000s) (GBP'000s)
----------------------- ------------- ----------------- ----------------- -----------
Brought forward as at
1 April 2020 13,097 2,339 10,823 26,259
Share based payments
(Note 13) - 760 - 760
Share based payment -
exercised during the
year (Note 13) - (761) - (761)
----------------------- ------------- ----------------- ----------------- -----------
Balance as at 31 March
2021 13,097 2,338 10,823 26,258
----------------------- ------------- ----------------- ----------------- -----------
Share-based Share-based
payments reserve payments reserve
resulting from resulting from
Merger relief company share acquisition Total other
reserve option scheme of subsidiary reserves
(GBP'000s) (GBP'000s) (GBP'000s) (GBP'000s)
----------------------- ------------- ----------------- ----------------- -----------
Brought forward as at
1 April 2019 13,097 1,713 10,823 25,633
Share based payments
(Note 13) - 990 - 990
Share based payment -
exercised during the
year (Note 13) - (364) - (364)
----------------------- ------------- ----------------- ----------------- -----------
Balance as at 31 March
2020 13,097 2,339 10,823 26,259
----------------------- ------------- ----------------- ----------------- -----------
Merger relief reserve
In accordance with the Companies Act 2006, a Merger Relief
Reserve of GBP13.1 million (net of the cost of share capital issued
of GBP80k) was created on the issue of 4,392,332 ordinary shares
for 300 pence each in Draper Esprit Plc as consideration for the
acquisition of 100% of the capital interests in Esprit Capital
Partners LLP on 15 June 2016.
Share-based payment reserve
Where the Group engages in equity-settled share-based payment
transactions, the fair value at the date of grant is recognised as
an expense over the vesting period of the options. The
corresponding credit is recognised in the share-based payment
reserve. Please see Note 13 for further details on how the fair
value at the date of grant is recognised.
25. Retirement benefits
The Draper Esprit Group makes contributions to personal pension
schemes set up to benefit its employees. The Group has no interest
in the assets of these schemes and there are no liabilities arising
from them beyond the agreed monthly contribution for each employee
or member that is included in employment costs in the profit and
loss account as appropriate.
26. Financial assets and liabilities
The description of each category of financial asset and
financial liability and the related accounting policies are shown
below. The carrying amounts of financial assets and financial
liabilities in each category are as follows:
Designated Amortised
FVTPL cost Total
GBP'000s GBP'000s GBP'000s
---------------------------------------------------- ---------- --------- ---------
31 March 2021
Financial assets 867,088 - 867,088
---------------------------------------------------- ---------- --------- ---------
Long-term financial assets 867,088 - 867,088
---------------------------------------------------- ---------- --------- ---------
Trade and other receivables (excluding prepayments) - 3,040 3,040
Loans to related investment vehicles - - -
Cash and cash equivalents - 158,417 158,417
Restricted cash - 2,260 2,260
---------------------------------------------------- ---------- --------- ---------
Short-term financial assets - 163,717 163,717
---------------------------------------------------- --------- ---------
Total financial assets 867,088 163,717 1,030,805
---------------------------------------------------- ---------- --------- ---------
Financial liabilities
---------------------------------------------------- ---------- --------- ---------
Loans and borrowings^ - 393 393
Lease liabilities - (669) (669)
---------------------------------------------------- ---------- --------- ---------
Long-term financial liabilities - (276) (276)
---------------------------------------------------- ---------- --------- ---------
Trade and other payables (excluding deferred
income) - (8,517) (8,517)
Loans and borrowings - - -
Lease liabilities - (345) (345)
---------------------------------------------------- ---------- --------- ---------
Short-term financial liabilities - (8,862) (8,862)
---------------------------------------------------- ---------- --------- ---------
Total financial liabilities - (9,138) (9,138)
---------------------------------------------------- ---------- --------- ---------
^ Initial costs incurred on setting up the revolving credit
facility. As there are no amounts drawn down at year-end, these are
presented as a debit within long-term financial liabilities. For
further details, see Note 20(ii).
Designated Amortised
FVTPL cost Total
GBP'000s GBP'000s GBP'000s
------------------------------------- ---------- --------- ---------
31 March 2020
Financial assets 657,333 - 657,333
------------------------------------- ---------- --------- ---------
Long-term financial assets 657,333 - 657,333
------------------------------------- ---------- --------- ---------
Trade and other receivables - 4,027 4,027
Loans to related investment vehicles - 3,692 3,692
Cash and cash equivalents - 32,255 32,255
Restricted cash - 1,883 1,883
------------------------------------- ---------- --------- ---------
Short-term financial assets - 41,857 41,857
------------------------------------- ---------- --------- ---------
Total financial assets 657,333 41,857 699,190
------------------------------------- ---------- --------- ---------
Financial liabilities
------------------------------------- ---------- --------- ---------
Loans and borrowings - (44,636) (44,636)
Lease liabilities - (975) (975)
------------------------------------- ---------- --------- ---------
Long-term financial liabilities - (45,611) (45,611)
------------------------------------- ---------- --------- ---------
Trade and other payables - (5,038) (5,038)
Loans and borrowings - - -
Lease liabilities - (358) (358)
------------------------------------- ---------- --------- ---------
Short-term financial liabilities - (5,396) (5,396)
------------------------------------- ---------- --------- ---------
Total financial liabilities - (51,007) (51,007)
------------------------------------- ---------- --------- ---------
27. Fair value measurements
This section should be read with reference to Note 4(a) and Note
16. The Group classifies financial instruments measured at FVTPL
according to the following fair value hierarchy:
a. Level 1: inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the entity can
access at the measurement date;
b. Level 2: inputs are inputs, other than quoted prices included
within Level 1, that are observable for the asset or liability,
either directly or indirectly; and
c. Level 3: inputs are unobservable inputs for the asset or liability.
The investments are held through the investment companies as set
out in Note 3(b) at their respective net asset values and as such
are noted to be all Level 3 for FY20 and FY21. However, for the
purposes of the disclosures below, these are made on a look basis
and are also based on the Gross Portfolio Value. For details of the
Gross Portfolio Value and its reconciliation to the investment
balance in the financial statements, please refer to page 59 of the
Annual Report.
During the year ending 31 March 2021, there was a transfer of
GBP85.5 million of investments held at FVTPL into a Level 1
classification. All other investments held at FVTPL are classified
as Level 3 in the fair value hierarchy - see movements in Level 3
items in the table below. There were no transfers between level 1,
2 and 3 during the year ending 31 March 2020.
Level 3
Movements in Level 3 items GBP'm
-------------------------------- -------
Opening balance at 1 April 2020 701.1
-------------------------------- -------
Investments 128.0
Gains 357.8
Realisations (205.7)
-------------------------------- -------
Closing balance 31 March 2021 981.2
-------------------------------- -------
Transfer to Level 1 (85.5)
-------------------------------- -------
Closing balance 31 March 2021 895.7
-------------------------------- -------
Significant unobservable inputs for Level 3 valuations
The fair value of unlisted securities is established with
reference to the International Private Equity and Venture Capital
Valuation Guidelines ("IPEV Guidelines"). In line with the IPEV
Guidelines, the Group may base valuations on earnings or revenues
where applicable, market comparables, last round price in the
investee companies, or on net asset values. An assessment will be
made at each measurement date as to the most appropriate valuation
methodology, including that for investee companies owned by
third-party funds that Draper Esprit Plc invests in and which are
valued on a look-through basis. As at 31 March 2021:
-- Financial instruments measured using last round price
valuation methodology were GBP450.5 million (31 March 2020:
GBP231.7 million), of which GBP160.6 million was held through fund
of funds investments.
-- Financial instruments measured using revenue-multiple
valuation methodology were GBP326.6 million (31 March 2020:
GBP401.3 million) of which GBP23.8 million was held through fund of
funds investments.
-- Financial instruments measured at amounts reported by the
general partner of the underlying fund were GBP118.6 million (31
March 2020: GBP68.1 million).
See Note 4(a) where valuation policies are discussed in more
detail.
Financial instruments, measured at fair value, categorised as
Level 3 within the fair value hierarchy can be split into 3 main
valuation techniques. Valuation techniques can be categorised as
based on last round price, revenue-multiple or at NAV of the
underlying fund (adjusted where relevant).
Each portfolio company will be subject to individual assessment.
Where the Group invests in fund of fund investments, the value of
the portfolio will be reported by the fund to the Group. The Group
will ensure that the valuations comply with the Group policy and
that they are calibrated with any cash and known valuations
movements where reporting periods do not align.
The valuation multiple is the main assumption applied to
valuation based on a revenue-multiple methodology. The multiple is
derived from comparable listed companies or relevant market
transaction multiples. Companies in the same industry and
geography, and, where possible, with a similar business model and
profile are selected and then adjusted for factors including
liquidity risk, growth potential and relative performance. They are
also adjusted to represent our longer-term view of performance
through the cycle or our existing assumption. The portfolio we have
is diversified across sectors and geographies and the companies
which have valuations based on revenue-multiples have a range of
multiples of between 0.6x - 9.1x (31 March 2020: 0.9x - 12.7x) and
a weighted average multiple of 4.8x (31 March 2020: 5.1x).
27. Fair value measurements
If the multiple used to value each unquoted investment valued on
a revenue-multiple basis as at 31 March 2021 were to decrease by
10%, the investment portfolio would decrease by GBP32.6 million (31
March 2020: GBP40.1 million). If the multiple were to increase by
10%, the investment portfolio would increase by GBP32.6 million (31
March 2020: GBP40.1 million).
If the multiple used to value each unquoted investment valued on
a revenue-multiple basis as at 31 March 2021 were to decrease by
15%, the investment portfolio would decrease by GBP48.9 million (31
March 2020: GBP60.2 million). If the multiple were to increase by
15%, the investment portfolio would increase by GBP48.9 million (31
March 2020: GBP60.2 million).
28. Financial instruments risk
Financial risk management
Financial risks are usually grouped by risk type: market,
liquidity and credit risk. These risks are discussed in turn
below.
Market risk - Foreign currency
A significant portion of the Group's investments and cash
deposits are denominated in a currency other than Pound Sterling.
The principal currency exposure risk is due to changes in the
exchange rate between GBP and USD/EUR. Presented below is an
analysis of the theoretical impact of 10% volatility in the
exchange rate on shareholder equity.
Theoretical impact of a change in the exchange rate of +/-10%
between GBP and USD/EUR would be as follows:
31 March 31 March
2021 2020
Foreign currency exposures - Investments GBP'000s GBP'000s
------------------------------------------- --------- ---------
Investments denominated in USD 477,771 338,885
10% decrease in GBP 530,833 376,539
10% increase in GBP 434,357 308,077
------------------------------------------- --------- ---------
Investments denominated in EUR 286,550 218,682
10% decrease in GBP 318,374 242,980
10% increase in GBP 260,512 198,802
------------------------------------------- --------- ---------
Certain cash deposits held by the Group are denominated in Euros
and US Dollars. The theoretical impact of a change in the exchange
rate of +/-10% between GBP and USD/EUR would be as follows:
31 March 31 March
2021 2020
Foreign currency exposures - Cash GBP'000s GBP'000s
------------------------------------ --------- ---------
Cash denominated in EUR 40,565 6,976
10% decrease in EUR:GBP 36,508 6,278
10% increase in EUR:GBP 44,621 7,673
------------------------------------ --------- ---------
Cash denominated in USD 26,253 3,627
10% decrease in USD:GBP 23,627 3,264
10% increase in USD:GBP 28,878 3,990
------------------------------------ --------- ---------
The combined theoretical impact on shareholders' equity of the
changes to revenues, investments and cash and cash equivalents of a
change in the exchange rate of +/-10% between GBP and USD/EUR would
be as follows:
31 March 31 March
2021 2020
Foreign currency exposures - equity GBP'000s GBP'000s
-------------------------------------- --------- ---------
Shareholders' Equity 1,033,141 659,618
10% decrease in EUR:GBP/USD:GBP 929,827 593,656
10% increase in EUR:GBP/USD:GBP 1,136,455 725,580
-------------------------------------- --------- ---------
Market risk - Price risk
Market price risk arises from the uncertainty about the future
prices of financial instruments held in accordance with the Group's
investment objectives. It represents the potential loss that the
Group might suffer through holding market positions in the face of
market movements, which have been heightened due to Covid-19.
28. Financial instruments risk
The Group is exposed to equity price risk in respect of equity
rights and investments held by the Group and classified on the
balance sheet as financial assets at FVTPL (Note 27). These equity
rights are held in unquoted high growth technology companies and
are valued by reference to revenue or earnings multiples of quoted
comparable companies, last round price, or NAV of underlying fund -
as discussed more fully in Note 4(a). These valuations are subject
to market movements.
The Group seeks to manage this risk by routinely monitoring the
performance of these investments, employing stringent investment
appraisal processes.
Theoretical impact of a fluctuation of +/-10% would have the
following impact:
Revenue- NAV of underlying Last round
GBP'm multiple fund price
-------------------- --------- ----------------- ------------
As at 31 March 2021 32.6 11.8 45.1
-------------------- --------- ----------------- ------------
As at 31 March 2020 40.1 6.8 23.2
-------------------- --------- ----------------- ------------
We further flexed by 15% given the volatility resulting from the
Covid-19 pandemic. Theoretical impact of a fluctuation of +/- 15%
would have the following impact:
Revenue- NAV of underlying Last round
GBP'm multiple fund price
-------------------- --------- ----------------- ------------
As at 31 March 2021 48.9 17.8 67.6
-------------------- --------- ----------------- ------------
As at 31 March 2020 60.2 10.2 34.7
-------------------- --------- ----------------- ------------
Liquidity risk
Cash and cash equivalents comprise cash and short-term bank
deposits with an original maturity of three months or less held in
readily--accessible bank accounts. The carrying amount of these
assets is approximately equal to their fair value. Responsibility
for liquidity risk management rests with the Board of Draper Esprit
Plc, which has established a framework for the management of the
Group's funding and liquidity management requirements. The Group
manages liquidity risk by maintaining adequate reserves and by
continuously monitoring forecast and actual cash flows. The
utilisation of the loan facility and requirement for utilisation
requests is monitored as part of this process.
All trade payable amounts are short-term.
Lease liabilities fall due over the term of the lease - see Note
20i for further details. The debt facility has a term of three
years - for further details, see Note 20ii. All other Group payable
balances at balance sheet date and prior periods fall due for
payment within one year.
As part of our seed fund of funds strategy, we make commitments
to funds to be drawn down over the life of the fund. Projected
drawdowns are monitored as part of the monitoring process above.
For further details see Note 31.
Credit risk
Credit risk refers to the risk that a counterparty will default
on its contractual obligations resulting in financial loss. The
Group is exposed to this risk for various financial instruments;
for example, by granting receivables to customers and placing
deposits. The Group's trade receivables are amounts due from the
investment funds under management, or underlying portfolio
companies. The Group's maximum exposure to credit risk is limited
to the carrying amount of trade receivables and cash at bank and in
hand at 31 March, as summarised below:
31 March 31 March
Classes of financial assets impacted by credit risk, 2021 2020
carrying amounts GBP'000s GBP'000s
------------------------------------------------------- --------- ---------
Trade receivables 2,535 2,669
Loan to related investment vehicle - 3,692
Cash at bank and in hand 158,417 32,255
Restricted cash 2,260 1,883
------------------------------------------------------- --------- ---------
163,212 40,499
------------------------------------------------------- --------- ---------
The Directors consider that all the above financial assets,
which are not impaired for each of the reporting dates under
review, are of good credit quality. In respect of trade and other
receivables, the Group is not exposed to significant risk as the
principal customers are the investment funds managed by the Group,
and in these the Group has control of the banking as part of its
management responsibilities.
28. Financial instruments risk
Investments in unlisted securities are held within limited
partnerships for which the Group acts as manager, and consequently
the Group has responsibility itself for collecting and distributing
cash associated with these investments. The credit risk of amounts
held on deposit is limited by the use of reputable banks with
high-quality external credit ratings and as such is considered
negligible. Cash at 31 March 2021 is held with the following
institutions: (1) Barclays Bank Plc; (2) Silicon Valley Bank Plc;
and (3) Investec Bank Plc.
Capital management
The Group's objectives when managing capital are to:
a. safeguard their ability to continue as a going concern, so
that they can continue to provide returns for shareholders and
benefits for other stakeholders, and
b. maintain an optimal capital structure.
The Group is funded through equity at the balance sheet date.
The Group has a revolving credit facility in place, with no
drawdowns at 31 March 2021 (31 March 2020: GBP45.0 million). Please
refer to Note 20ii for further information on the revolving credit
facility.
In order to maintain or adjust the capital structure, the Group
may make distributions to shareholders, return capital to
shareholders, issue new shares or sell assets to manage cash.
Interest rate risk
The Group's interest rate risk arises from borrowings on the
GBP60.0 million loan facility with Silicon Valley Bank and
Investec, which was entered into in June 2019 and increased and
extended in June 2020. Prior to the period ending 30 September
2019, the Group did not have any borrowings. The Group's borrowings
are denominated in GBP and are carried at amortised cost.
-- A drawdown totalling GBP35.0 million was rolled during the
year (maximum drawn during the year of GBP45.0 million) at an
interest rate of 7.5% - this was fully repaid by 31 March 2021 (all
drawn amounts were repaid during the period). Future drawdowns may
be subject to a different interest rate. The facility agreement has
an interest rate calculated with reference to the Bank of England
base rate (currently 0.10%) with a Margin of 6.75%. The agreement
has an interest rate floor of 7.5%. As such, if the base rate
increases, the interest charged on future drawdowns will
increase.
If the Bank of England base rate had been 1.0% higher during the
year to 31 March 2021 the difference to the consolidated statement
of comprehensive income would have been an increase in finance
costs of GBP0.1 million. If the Bank of England base rate had been
1.0% higher during the year to 31 March 2021 the difference to the
consolidated statement of cash flows would have been an increase in
expenditure of GBP0.1 million.
29. Alternative Performance Measures ("APM")
The Group has included the APMs listed below in this Annual
Report as they highlight key value drivers for the Group and, as
such, have been deemed by the Group's management to provide useful
additional information to readers of the Annual Report. These
measures are not defined by IFRS and should be considered in
addition to IFRS measures.
Gross Portfolio Value
The Gross Portfolio Value ("GPV") is the gross fair value of the
Group's investment holdings before deductions for the fair value of
carry liabilities and any deferred tax. The Gross Portfolio Value
is subject to deductions for the fair value of carry liabilities
and deferred tax to generate the net investment value, which is
reflected on the consolidated statement of financial position as
financial assets held at FVTPL. Please see page 59 of the Annual
Report for a reconciliation to the net investment balance. This
table also shows the Gross to Net movement described above, which
is 88% in the current year calculated as the net investment value
divided by the Gross Portfolio Value. The table reflects a Gross
fair value movement of GBP359.2, which is 51% as a percentage of
the 31 March 2020 Gross Portfolio Value, which is described in the
report as the Gross fair value increase.
NAV per share
The NAV per share is the Group's net assets attributable to
shareholders divided by the number of shares at the relevant
reporting date. See the calculation in Note 12.
30. Related party transactions
The Group has various related parties stemming from
relationships with Limited Partnerships managed by the Group, its
investment portfolio, its advisory arrangements (board seats) and
its key management personnel. In addition, the Company has related
parties in respect of its subsidiaries and other related entities
in the form of management fees and expense recharges.
The Group may require that one of its members be appointed to
the board of a portfolio company in a non-executive role. In
certain cases, an administration fee is charged to the portfolio
company for the provision of Director services. Fees of GBP44k have
been invoiced during the current year (31 March 2020: GBP44k). At
the year-end, there was a balance of GBP4k outstanding (31 March
2020: GBP6k).
30. Related party transactions
At times, expenses incurred relating to Director services can be
recharged to portfolio companies - these are immaterial. Draper
Esprit does not exercise control or management through any of these
non-executive positions.
During the year, GBP0.9 million (2020: GBP1.2 million) was
invoiced from Draper Esprit Plc to Encore Ventures LLP for
overheads, at year-end a balance of Nil (2020: GBP0.1 million)
remained outstanding.
During the year, the Company invoiced Elderstreet, previously an
associate and now a subsidiary, GBP0.1 million (year to 31 March
2020: GBP0.4 million), with a balance outstanding at year-end of
GBP0.01 million (31 March 2020: GBPnil).
In the year ended 31 March 2020, the Company loaned GBP3.7
million to Esprit Capital Fund No 1 & No 2 LP. The loan was
repaid during the year ending 31 March 2021 along with accrued
interest of GBP0.4 million.
During the year, management fees of GBP9.2 million from related
parties (the unconsolidated structured entities described below)
are included in the consolidated statement of comprehensive income
(31 March 2020: GBP8.4 million). Management fees of GBP3.0 million
from the EIS funds are also included in the consolidated statement
of comprehensive income (31 March 2020: GBP2.8 million).
During the year, employees of Draper Esprit Plc exercised share
options - see Note 13 for further details.
During the prior year, the Group purchased the remaining
interest in Encore Ventures LLP - see Note 18 for further
details.
Key management personnel compensation
Key management personnel are those persons having authority and
responsibility for planning, directing and controlling the
activities of the Group, and are considered to be the Directors of
the Company listed on pages 90-91 of the Annual Report.
Year ended Year ended
31 Mar 31 Mar
2021 2020
GBP'000s GBP'000s
------------------------------------------------ ---------- ----------
Wages and salaries 2,169 2,019
Short-term non-monetary benefits 13 9
Defined contribution pension costs 155 163
Share-based payment expense 977 466
Social security contributions and similar taxes 443 287
Carried interest paid 180 -
------------------------------------------------ ---------- ----------
3,937 2,944
------------------------------------------------ ---------- ----------
The details of individual Directors' remuneration and pension
benefits, as set out in the tables contained in the Remuneration
and Nomination Committee Report on pages 104-111 of the Annual
Report, form part of these consolidated financial statements.
Unconsolidated structured entities
The Group has exposure to a number of unconsolidated structured
entities as a result of its venture capital investment
activities.
The Group ultimately invests all funds via a number of limited
partnerships and some via Draper Esprit Plc's wholly-owned
subsidiary, Draper Esprit (Ireland) Limited. These are controlled
by the Group and not consolidated, but they are held as investments
at fair value through the profit and loss on the consolidated
balance sheet in line with IFRS 10 (see Note 3b for further details
and for the list of these investment companies and limited
partnerships). The material assets and liabilities within these
investment companies are the investments, which are held at FVTPL
in the consolidated accounts. See further details in the table
below.
Fair value Fair value
31 March 31 March
Name of undertaking Registered office Activity Holding Country 2021 GBP'm 2020 GBP'm
------------------------ ------------------- ------------- ------- ------- ----------- -----------
20 Garrick Street,
Esprit Investments London, WC2E Limited
(1) (B) LP 9BT Partnership 100% England 12.0 16.5
------------------------ ------------------- ------------- ------- ------- ----------- -----------
20 Garrick Street,
Esprit Investments London, WC2E Limited
(2) (B) LP 9BT Partnership 100% England 157.6 61.6
------------------------ ------------------- ------------- ------- ------- ----------- -----------
32 Molesworth
Draper Esprit (Ireland) Street, Investment
Limited Dublin 2, Ireland company 100% Ireland 670.6 553.3
------------------------ ------------------- ------------- ------- ------- ----------- -----------
Draper Esprit (Ireland) Limited invests via the following
limited partnerships: Esprit Investments (1) LP, Esprit Investments
(2) LP, Esprit Capital IV LP, Esprit Capital III LP.
The investments balance in the consolidated statement of
financial position also includes investments held by consolidated
entities.
The Group also co-invests or historically co-invested with a
number of limited partnerships (See Note 3b for further details).
The exposure to these entities is immaterial.
31. Capital commitments
The Group has made commitments to fund of funds investments as
part of its investment activity. At 31 March 2021, the Group was
committed to GBP67.2 million (translated at year-end rates) (31
March 2020: GBP39.1 million) in relation to investments in fund of
funds vehicles, of which GBP25.5 million of this has been drawn at
31 March 2021 (31 March 2020: GBP13.3 million).
A Strategic Partnership Agreement was entered into with
Earlybird in the year ending 31 March 2019 to share deal flow and
resources to co-invest in high growth technology companies across
Europe. The first stage of this partnership included a 50%
commitment to EB VI of approximately GBP74.5 million (EUR87.5
million) to 2022, of which GBP68.2 million has been deployed to 31
March 2021 (to 31 March 2020: GBP56.4 million). Commitments have
also been made to other Earlybird funds and total exposure to the
Group is GBP287.0 million of investments (31 March 2020: GBP187.3
million) with undrawn commitments across all Earlybird entities of
GBP26.5 million (translated at year-end exchange rates) (31 March
2020: GBP25.2 million).
32. Ultimate controlling party
The Directors of Draper Esprit Plc do not consider there to be a
single ultimate controlling party of the Group.
33. Subsequent events
-- Increased and extended our revolving credit facility with SVB
and Investec by an additional 1 year to GBP65m post year-end.
-- Invested a further GBP48m post year-end to 11 June 2021,
including investments into Manna, FintechOS, Cervest, Ledger, and
Lyst.
-- Refreshed fund of funds programme, with the approval by the
Board and Investment Committee of an additional GBP75.0 million
investment budget.
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END
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June 14, 2021 02:00 ET (06:00 GMT)
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