TIDMEDGH
RNS Number : 6991U
Edge Performance VCT PLC
20 January 2017
20 January 2017
Edge Performance VCT plc (the "Company")
QUARTERLY UPDATE
for the period from 1 September 2016 to 30 November 2016 (the
"Period")
The Company presents a quarterly update for the period from 1
September 2016 to 30 November 2016.
Share Consolidation
On 18 August 2016, the Board resolved to invoke the share
conversion provisions in the Company's articles of association,
such that all of the "planned exit" share classes in the Company
would be consolidated into one share class. Consequently, all C
Shares, D Shares, E Shares, F Shares and G Shares were converted
into I Shares; completion of the conversion took place on 16
September 2016.
The conversion was undertaken on the basis of the net asset
value per share of each share class to be converted, relative to
the net asset value per I Share, meaning that the value of each
converted shareholder's investment immediately following the
conversion was unchanged.
The H Share class, having a different, "evergreen" investment
strategy to all of the other share classes, was not part of the
conversion.
Consequently, the Company now has only two classes of shares,
namely the "evergreen" H Share class and the "planned exit" I Share
class.
Waiver of carried interest
Prior to the period under review the Company removed the carried
interest in the I shares' fee structure. The Board plans to
consider implementing an alternative incentive, if appropriate,
which will be subject to shareholder approval.
Dividends
No dividends were declared or paid in the period. On 18 August
2016, the Company declared dividends of 7p per G Share and 7p per I
Share, to be paid on 7 April 2017. As the record date for these
dividends predated the share conversion referred to above, they are
unaffected by the conversion, and will be paid to those
shareholders who held G Shares and I Shares, respectively, before
the share conversion took place.
Portfolio
New investments
On 25 November 2016, the Company completed an investment from
the H Share fund of GBP144,000 in Newsflare, a video marketplace
platform for video creators, which licenses user generated video
content to some of the world's biggest media players. The Company
now holds 1.577% of the issued share capital of Newsflare. This was
the Company's first co-investment under its co-investment
arrangements with Edge Creative Enterprise Fund. These arrangements
allow for the Company to invest in new investments alongside Edge
Creative Enterprise Fund on the same terms and, where practicable,
in the same instruments.
Realisations
In the quarter, the Investment Manager began the process of
realising the I Share fund's investments in eight portfolio
companies, Black Sheep Music Limited, E7 Live Limited, Grove Music
Limited, La Cage Limited, MM Productions Limited, Ramble On
Limited, Two Bridges Live Limited, and Ultranation Limited. The
realisations are expected to complete during January 2017 and yield
an estimated GBP5,489k in cash, (in addition to GBP2,105k received
by the Company from these investments in prior years), which the
Company will use to meet its running costs and dividend
obligations.
Treasury holdings
As at 30 November, the Company held GBP1,309k in cash and
near-cash, in accordance with the Company's investment policy.
Net asset values per share
as at 30 November 2016
Share class Net assets Net asset Net asset
(GBP'000) value per value total
share (p) return per
share (p)
*
------------- ----------- ----------- -------------
H 6,271 59.59 73.59
------------- ----------- ----------- -------------
I 38,727 56.18** 84.18**
------------- ----------- ----------- -------------
Total 44,998
------------- ----------- ----------- -------------
* The net asset value total return per share is the aggregate
of: (a) total dividends per share paid prior to 30 November 2016;
and (b) the net asset value per share as at 30 November 2016. It
does not take into account the benefit of any income tax relief
obtained by the shareholder.
** Inclusive of the 7p per G share and 7p per I share dividends
declared on 18 August 2016, and payable exclusively to G and I
shareholders at that date, for payment on 7 April 2017.
Valuation of portfolio
Under the Company's valuation policy, venture capital
investments in the Company's portfolio are normally valued at cost
for the first 12 months from the date of investment. Thereafter, an
appropriate basis of valuation will be used, in line with the
International Private Equity and Venture Capital Valuation
Guidelines. Unquoted investments in the portfolio are normally
revalued bi-annually, as at the Company's half-year end (31 August)
and the Company's year-end (28 February), but the valuations are
reviewed as at 31 May and 30 November in each year, to ensure that
the most recent valuations remain reflective of the fair value of
each investment as at that date.
In respect of those portfolio investments held by the Company as
at 30 November 2016, the directors of the Company are of the
opinion that the previously published valuations as at 31 August
2016 remained appropriate as at 30 November 2016. The investment
made after 31 August 2016 has been valued at cost as at 30 November
2016, as explained above.
Despite the valuations of the core growth portfolio remaining
unchanged from those published in the half-yearly financial report,
it is worth noting the following:
-- During the Period, Intent HQ agreed a multi-million pound
deal with a major customer, Telefonica UK;
-- During the Period, Coolabi entered into an agreement with the
Chinese company Alibaba which has acquired an option to make a
feature-length film based on Coolabi's "Warrior" titles. Alibaba
subsequently announced that it has agreed with David Heyman
(producer of - amongst others - the Harry Potter films) that he
will be the producer of the Warriors film at the point at which
Alibaba exercises the option; and
-- After the Period, Mirriad completed a significant fundraising at an enhanced valuation.
The process of valuing the Company's portfolio of investments as
at 28 February 2017 will commence shortly.
The Company is not aware of any significant event or transaction
which has occurred between 1 September 2016 and 20 January 2017
which has had a material effect on the financial position of the
Company and which has not been detailed above.
20 January 2017
For further information, please contact:
-- City Partnership, Company Secretary: 0131 243 7210
-- Edge Investments, Investment Manager: 020 7317 1300
This information is provided by RNS
The company news service from the London Stock Exchange
END
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