TIDMPU12
RNS Number : 7252U
Puma VCT 12 PLC
26 November 2019
Puma VCT 12 plc
Interim Report
For the period ended 31 August 2019
Officers and Professional Advisers
Directors Auditor
Raymond Pierce (Chairman) RSM UK Audit LLP
David Brock Chartered Accountants
Graham Shore 25 Farringdon Street
London EC4A 4AB
Secretary
Eliot Kaye Sponsors and Solicitors
Howard Kennedy
Registered Number No 1 London Bridge
09758309 London SE1 9BG
Registered Office Bankers
Cassini House The Royal Bank of Scotland plc
57 St James's Street London City Office
London PO Box 412
SW1A 1LD 62-63 Threadneedle Street
London
Investment Manager EC2R 8LA
Puma Investment Management Limited
Cassini House VCT Tax Advisor
57 St James's Street PricewaterhouseCoopers LLP
London 1 Embankment Place
SW1A 1LD London WC2N 6RH
Administrator Custodian
PI Administration Services Limited Pershing Securities Limited
Cassini House 1 Canada Square
57 St James's Street London
London E14 5AL
SW1A 1LD
Registrar
SLC Registrars
Elder House
St. Georges Business Park
Brooklands Road
Weybridge
Surrey
KT13 0TS
Chairman's Statement
Highlights
-- Funds substantially invested in a diverse range of businesses and projects
-- HMRC requirement that qualifying investments are 80% of the fund is now met
-- 1p per share dividend paid during the period
Chairman's Statement
Introduction
The Company has deployed its funds in a diverse range of both
qualifying and non-qualifying investments and continues to meet its
minimum qualifying investment percentage of 80 per cent. We remain
focused on generating returns for the Company from both the
qualifying and non-qualifying portfolios as the fund enters into
its fourth year.
Investments
Qualifying Investments
Pure Cremation - Crematorium and Direct Cremations
The Company's GBP4 million investment in Pure Cremation Holdings
Limited (as part of a GBP7.35 million qualifying investment
alongside another Puma VCT) continues to perform. Pure Cremation is
a leading provider of direct cremations, meeting the needs of a
growing number of people in the United Kingdom who want a
respectful cremation arranged without any funeral, leaving them
free to say farewell how, where and when is right for them. The
business' new purpose-built site near Andover opened during the
period, reducing operating costs and opening up new revenue
streams. The business is performing, delivering strong revenue
growth across all of its sales channels.
NRG Gym - Budget Gyms
The Company has invested GBP1.4 million in SA Holdings Limited
(trading as NRG Gyms through its subsidiary, NRG GYM Limited) as
part of a GBP5.0 million investment alongside other Puma funds. NRG
offer low price gyms aimed at price sensitive millennials with a
keen interest in sports and fitness. At the point of investment,
the business was operating two units, one freehold unit in
Gravesend and a second, leased, unit in Watford. The funds raised
were to expand to further units, together with continued evolution
of the brand and offering, and enhancement of the two original
sites. During the period the business continued to deliver
profitable trade from its original two units and opened a new unit
in Walsall, Birmingham. This site has opened strongly with an above
target number of members. Post period end the business entered into
Heads of Terms for a new site in Lewisham, South London, and has
other well-advanced pipeline sites beyond that.
Growing Fingers - Children's Nursery
As previously reported, the Company has invested GBP420,000 (as
part of a GBP2.8 million investment alongside other Puma VCTs) in
Growing Fingers Limited. The investment is funding the construction
and launch of a new purpose-built 108 place nursery school in
Wendover, Buckinghamshire, an affluent commuter town with direct
links to London. The Company benefits from first charge security
over the Wendover site and the Growing Fingers business. The
directors of Growing Fingers expect the nursery to open in the
summer of 2020.
Sweat Union - Budget Gyms
Since going into administration, the administrator has informed
the board that it will shortly be in a position to issue a notice
of intended dividend to creditors. A distribution to creditors is
expected in February 2020.
Applebarn Nurseries - Children's Nursery
The Company had previously invested GBP1.1 million in Applebarn
Nurseries Limited (as part of a GBP2.2 million qualifying
investment alongside another Puma VCT). The management team include
a successful operator of nurseries, together with an experienced
developer and contractor. The team's first site, a custom-built 120
place children's day nursery in Altrincham, South Manchester opened
in September 2018 and is now ramping up as occupancy builds.
Knott End - Pubs with Microbreweries
As previously reported, the Company has invested just over GBP4
million (as part of a GBP7.3 million qualifying investment
alongside another Puma VCT) in Knott End Pub Company Limited which
has entered into a franchise agreement with Brewhouse & Kitchen
Limited to roll out a portfolio of pubs offering on-site craft
micro-brewing activities and good quality food. Knott End currently
owns and operates two pub assets in Horsham and Milton Keynes; the
Horsham asset has been trading in line with expectations but the
pub in Milton Keynes has been disappointing. Management remain
focused on improving performance at this site.
Kid and Play - Children's Nursery
In October 2017, the Company made a GBP1.7 million qualifying
investment in Kid & Play Limited, alongside funds invested by
another Puma VCT totalling GBP3.4 million. Kid & Play is
seeking to develop, own and operate a new children's day nursery
and has identified a number of potential sites which are currently
in various stages of planning applications. We are pleased to
report that during the period Kid & Play acquired a site in
Bedford on which it is now developing a 110 place children's day
nursery which is expected to open in Spring 2020. Moreover, shortly
following the period end, Kid & Play commenced trading by
entering into a contract to provide services in relation to early
childhood study tours, revenue from which will assist in running
costs pending opening of the nursery.
Sunlight Education Nucleus - Special Educational Needs
Schools
In November 2017, the Company made a GBP2.35 million qualifying
investment (as part of a GBP4.7 million investment alongside other
Puma VCTs) in Sunlight Education Nucleus Limited, a company seeking
to develop, own and operate a series of special education needs
schools across the United Kingdom. We are pleased to report that,
shortly following the period end, the team at Sunlight opened their
first school in Stafford, West Midlands and are now working on the
development of a second site in Crewe.
South West Cliffe - Children's Nursery
As previously reported, the Company has invested GBP2.1 million
(as part of a GBP4.2 million qualifying investment alongside
another Puma VCT) in South-West Cliffe Limited, supporting an
experienced management team to roll out a portfolio of
purpose-built day nurseries. Despite best efforts, the management
team have been unable to agree terms on a site and therefore,
shortly after the period end, took the decision to place South-West
Cliffe Limited into a solvent members' liquidation. We expect the
Company to receive in the region of 97p in the pound invested but
this will be confirmed following completion of the liquidation.
Signal Building Services - Construction projects
The Company has invested GBP200,000 (as part of a total
investment round of GBP2 million) into Signal Building Services
Limited, a business specialising in delivering turnkey solutions to
construction projects led by a management team with over 40 years'
of combined experience in the construction sector. Signal Building
Services is currently working on the construction of a 14-apartment
supported living scheme in Sutton-in-Ashfield. Signal Building
Services has also recently been working on the construction of a
22-apartment supported living scheme in Wigan which, we are pleased
to report, completed successfully shortly after the period end,
generating attractive returns for Signal Building Services which
will benefit the Company when its investment is repaid in due
course.
Non-Qualifying Investments
As previously reported, the Company had initially invested just
over GBP20 million in a series of lending businesses offering an
appropriate risk adjusted return in the short to medium term. As
intended, most of these positions have been liquidated as the
Company has made qualifying investments. Details of these lending
businesses' loans are set out below.
Mixed Residential Commercial Development, Bloomsbury
As previously reported, a GBP3.9 million loan (as part of a
total facility of GBP17.97 million) was advanced to Cudworth
Limited (through affiliates, Victoria Lending Limited, Tottenham
Lending Limited and Marble Lending Limited) to fund the
construction of a mixed residential and commercial development in
Bloomsbury, London, close to the British Museum and 600m from
King's Cross station. The loan is secured with a first charge over
the site. The development includes 11 apartments, 2 houses and
11,800 square feet of B1 commercial space and is expecting to reach
practical completion by the end of the year. We are pleased to
report that contracts have been exchanged to sell the commercial
units, both houses and seven of the 11 flats and we expect these
sales to complete within a short period following practical
completion.
Construction of Airport Hotel, Edinburgh
In June 2017, GBP1.6 million of loans (as part of an overall
facility of GBP16 million) were advanced to Ability Hotels
(Edinburgh) Limited (through affiliates, Piccadilly Lending Limited
and Tottenham Lending Limited) to fund the development of a new
240-room Hampton by Hilton hotel at Edinburgh Airport. We are
pleased to report that the hotel opened last year and that the
loans were repaid in full during the period.
Dividends
As previously reported, the Company paid a dividend of 1p per
ordinary share shortly after the period end taking dividends paid
to date to 3p per ordinary share. Reflecting this recent pay-out,
your Board is not proposing a further dividend at this interim
stage.
Results and Net Asset Value ("NAV")
The NAV per share at the period end was 83.30p (86.30p after
adding back the dividends paid to date), reflecting the provision
against the investment in Sweat. The Company made a small loss of
GBP132,000 in the period (representing a 0.43p per share post-tax
loss).
VCT Qualifying Status
PricewaterhouseCoopers LLP ("PwC") provides the board and the
Investment Manager with advice on the ongoing compliance with HMRC
rules and regulations concerning VCTs and has reported no issues in
this regard for the Company to date. PwC also assists the
Investment Manager in establishing the status of investments as
qualifying holdings and will continue to assist the Investment
Manager in monitoring rule compliance
Principal risks and uncertainties
Growth in the UK economy has slowed and conditions for retail
businesses (to which we have some exposure) in particular continue
to be difficult. The economic outlook continues to be dominated by
political uncertainty. The consequences of this for the Company's
investment portfolio constitute the principal risk and uncertainty
for the Company in the second half of the year.
Outlook
We remain focused on generating strong returns for the Company
from both the qualifying and non-qualifying portfolios, which
contain some dynamic companies.
Whilst there may be some further changes in the composition of
the portfolio, the Board expects to concentrate in the future on
the monitoring of our existing investments and considering the
options for exits in due course.
Ray Pierce
Chairman
25 November 2019
Income Statement (unaudited)
For the period ended 31 August 2019
Period ended Period ended Year ended
31 August 2019 31 August 2018 28 February 2019
Note Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Gains on
investments - (71) (71) - - - - (3,350) (3,350)
Income 330 - 330 603 - 603 909 - 909
330 (71) 259 603 - 603 909 (3,350) (2,441)
-------- -------- -------- -------- -------- --------- ---------
Investment
management
fees 4 (63) (190) (253) (75) (225) (300) (148) (443) (591)
Other expenses (138) - (138) (165) - (165) (248) - (248)
(201) (190) (391) (240) (225) (465) (396) (443) (839)
-------- -------- -------- -------- -------- --------- ---------
Return/(loss)
on ordinary
activities
before taxation 129 (261) (132) 363 (225) 138 513 (3,793) (3,280)
Tax on return
on ordinary
activities (25) 25 - (12) - (12) (97) 97 -
Return/(loss)
on ordinary
activities
after tax
attributable
to equity
shareholders 104 (236) (132) 351 (225) 126 416 (3,696) (3,280)
======== ======== ======== ======== ======== ======== ======== ========= =========
Basic and
diluted
Return/(loss)
per Ordinary
Share (pence) 2 0.34p (0.77p) (0.43p) 1.14p (0.73p) 0.41p 1.35p (11.96p) (10.61p)
======== ======== ======== ======== ======== ======== ======== ========= =========
The total column of this statement is the profit and loss of the
Company. All revenue and capital items in the above statement
derive from continuing operations. No operations were acquired or
discontinued in the period.
Balance Sheet (unaudited)
As at 31 August 2019
As at As at As at
31 August 31 August 28 February
Note 2019 2018 2019
GBP'000 GBP'000 GBP'000
Fixed Assets
Investments 6 23,198 27,021 23,527
----------- ----------- -------------
Current Assets
Prepayments 2,672 2,102 2,413
Cash 22 373 107
----------- ----------- -------------
2,694 2,475 2,520
Creditors - amounts falling
due within one year (146) (209) (166)
Net Current Assets 2,548 2,266 2,354
----------- ----------- -------------
Net Assets 25,746 29,287 25,881
=========== =========== =============
Capital and Reserves
Called up share capital 19 19 19
Share premium account 29,833 29,833 29,833
Capital reserve - realised (1,215) (929) (1,050)
Capital reserve - unrealised (3,421) - (3,350)
Revenue reserve 530 364 429
Equity Shareholders' Funds 25,746 29,287 25,881
=========== =========== =============
Net Asset Value per Ordinary
Share 3 83.30p 94.75p 83.73p
=========== =========== =============
Diluted Net Asset Value per
Ordinary Share 3 83.30p 94.75p 83.73p
=========== =========== =============
Cash Flow Statement (unaudited)
For the period ended 31 August 2019
Period ended Period ended Year ended
31 August 31 August 28 February
2019 2018 2019
GBP'000 GBP'000 GBP'000
Operating activities
Profit on ordinary activities
after tax (132) 126 (3,280)
Losses on investments 71 - 3,350
Increase in debtors (262) (601) (912)
Increase/(decrease) in creditors (20) 42 (1)
Net cash used in operating
activities (343) (433) (843)
------------- ------------- -------------
Cash flow from investing activities
Purchase of investments (71) (1,417) (4,823)
Proceeds from disposal of
investments 329 2,368 5,918
Net cash generating from investing
activities 258 951 1,095
------------- ------------- -------------
Cash flow from financing activities
Dividends paid - (618) (618)
Net cash used from financing
activities - (618) (618)
------------- ------------- -------------
Decrease in cash (85) (100) (366)
Net cash at start of the period 107 473 473
Net funds at the period end 22 373 107
============= ============= =============
Statement of Changes in Equity (unaudited)
For the period ended 31 August 2019
Called Share Capital Capital
up share premium reserve reserve Revenue
capital account - realised - unrealised reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at 1
March 2018 19 29,833 (704) - 631 29,779
Total recognised
(losses)/gains for
the period - - (225) - 351 126
Dividends paid - - - - (618) (618)
Balance as at 31
August 2018 19 29,833 (929) - 364 29,287
Total recognised
(losses)/gains for
the period - - (121) (3,350) 65 (3,406)
Balance as at 28
February 2019 19 29,833 (1,050) (3,350) 429 25,881
Dividends paid - - - - - -
Total recognised
(losses)/gains for
the period - - (165) (71) 101 (135)
Balance as at 31
August 2019 19 29,833 (1,215) (3,421) 530 25,746
========== ========= ============ ============== ========= ========
Notes to the Interim Report
For the period ended 31 August 2019
1. Accounting Policies
The financial statements have been prepared under the historical
cost convention, modified to include the revaluation of fixed asset
investments, and in accordance with applicable Accounting Standards
and with the Statement of Recommended Practice, "Financial
Statements of Investment Trust Companies and Venture Capital
Trusts" ("SORP") and in accordance with the Financial Reporting
Standard 102 ("FRS102").
2. Return per Ordinary Share
The total loss per share of 0.43p is based on the loss for the
period of GBP132,000 and the weighted average number of shares in
issue as at 31 August 2019 of 30,909,188 calculated from the date
of the first receipt of proceeds from the issue of ordinary share
capital.
3. Net asset value per share
As at As at As at
31 August 31 August 28 February
2019 2018 2019
Net assets 25,746,000 29,287,000 25,881,000
Shares in issue 30,909,188 30,909,188 30,909,188
Net asset value per share
Basic 83.30p* 94.75p 83.73p
Diluted 83.30p* 94.75p 83.73p
*This is net of 2p of dividends paid to date. A further 1p
dividend was paid in September 2019.
4. Management fees
The Company pays the Investment Manager an annual management fee
of 2% of the Company's net assets. The fee is payable quarterly in
arrears. The annual management fee is allocated 75% to capital and
25% to revenue.
5. Financial information provided
The financial information for the period ended 31 August 2019
has not been audited and does not comprise full financial
statements within the meaning of Section 423 of the Companies Act
2006. The interim financial statements have been prepared on the
same basis as will be used to prepare the annual financial
statements.
Notes to the Interim Report continued
For the period ended 31 August 2019
6. Investment portfolio summary
Valuation
as a % of
Valuation Cost Gain/(loss) Net Assets
As at 31 August 2019 GBP'000 GBP'000 GBP'000
Qualifying Investments
Growing Fingers Limited 420 420 - 2%
Kid & Play Limited 1,694 1,694 - 7%
South-West Cliffe Limited 2,100 2,100 - 8%
Signal Building Services
Limited 200 200 - 1%
Applebarn Nurseries
Limited 1,833 1,833 - 7%
Knott End Pub Company
Limited 4,053 4,053 - 15%
Sunlight Education Nucleus
Limited 2,350 2,350 - 9%
Sweat Union Limited - 3,421 (3,421) 0%
Pure Cremation Holdings
Limited 4,053 4,053 - 15%
SA Fitness Holdings
Limited 1,417 1,417 - 6%
Total Qualifying Investments(1) 18,120 21,541 (3,421) 70%
---------- -------- ------------ ------------
Non-Qualifying Investments
Piccadilly Lending Limited 911 911 - 4%
Victoria Lending Limited 1,617 1,617 - 6%
Tottenham Lending Limited 700 700 - 3%
Marble Lending Limited 1,850 1,850 - 7%
Total Non-Qualifying
Investments(1) 5,078 5,078 - 20%
---------- -------- ------------ ------------
Total Investments(1) 23,198 26,619 - 90%
Balance of Portfolio 2,548 2,548 - 10%
Net Assets 25,746 29,167 - 100%
---------- -------- ------------ ------------
Of the investments held at 31 August 2019, all are incorporated
in England and Wales.
(1) The HMRC valuation differs from FRS102, because FRS102
requires changes to reflect current market valuations whereas HMRC
requires such changes when further securities of the same company
are bought or sold by the VCT. It also omits the items shown as
'Balance of Portfolio'.
Copies of this Interim Statement will be made available on the
website:
http://www.pumainvestments.co.uk/pages/view/investors-information-vcts
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR UNSURKBAAUAA
(END) Dow Jones Newswires
November 26, 2019 07:52 ET (12:52 GMT)
Puma Vct 12 (LSE:PU12)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Puma Vct 12 (LSE:PU12)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024