TIDMFWD
RNS Number : 2903N
Forward Partners Group PLC
29 September 2021
Forward Partners Group plc
("plc", "Forward Partners", "Forward", "the Group" or the
"Company")
INTERIM RESULTS COVERING THE SIX MONTHS TO 30 JUNE 2021
- including unaudited financial statements from 4 March 2021 for
the newly incorporated Forward Partners Group plc
Forward Partners, the London-based venture capital firm
specialising in supporting high growth, early-stage technology
businesses, today announces its interim results for the period from
1 January 2021 to 30 June 2021.
The Company was incorporated on 4 March 2021 and the Group was
admitted to trading on AIM on 19 July 2021 ("Admission"). At 30
June 2021 the gross value of the Group's venture capital investment
holdings before deductions for carry (the Ventures Portfolio Value)
was GBP108.0m.
Financial highlights
-- Ventures Portfolio Value increase of GBP22.0m to GBP108.0m,
including GBP3.5m of new investments during the period.
-- Growth in portfolio value - excluding new investments - of
21.5% of which 15.5% came in Q1 and 6.0% in Q2, exclusive of
Forward Advances.
-- Operating profit before tax for the period of GBP13.9m.
-- NAV per share at 30 June was 104.1 pence (NAV per share of
83.3 pence as at 31 December 2020 on a pro forma basis).
-- Forward Advances gross IRR 39.6% on fully repaid Advances*.
H1 originations of GBP3.6m, up 177% Q1 to Q2.
-- Admitted to AIM on 19 July 2021 (post period end), raising GBP36.5m.
Investment highlights
-- 10 investments made by Forward Ventures totalling GBP3.5m.
-- One new investment of GBP0.7m into Clustermarket.
-- Nine follow on investments totalling GBP2.8m.
-- 45 Advances totalling GBP3.6m were made by Forward Advances.
Post Admission highlights (19 July - 28 September 2021)
-- Three exits post period end totalling GBP11.7m.
-- Trade sales of Heights and Wonderbly with total cash realisations of GBP5m.
-- Cazoo SPAC merger resulting in holding valued at GBP6.7m (a
GBP3.7m portfolio valuation uplift)**.
-- Investment of GBP1m into new portfolio company Ryde. Two
further new deals have been completed.
-- Forward Advances made 18 Advances with a value of GBP1.7m.
Nic Brisbourne, CEO at Forward Partners, commented: "We have
seen some excellent portfolio growth in the first half, both before
and after the easing of the UK's pandemic related restrictions.
That momentum has continued since our IPO in mid-July. We are
particularly pleased with the strong growth our Advances business
is achieving, as the appeal of revenue based financing accelerates
for fast growing British SMEs.
"We are now focused on putting in place all the elements
required to increase shareholder value, by strengthening our team
and pipeline, whilst continuing to support our tech-enabled
portfolio companies with the same level of care and attention. We
have always favoured diversity of leadership within the firms we
invest in, but we will be placing extra emphasis on this dynamic
going forward. Not only is this the right thing to do, but we
believe diversity delivers more resilient and creative companies,
and ultimately superior long term returns for the Group and its
shareholders."
The Company's Interim Report for the period ending 30 June 2021
is available on Forward Partners' website at
http://forwardpartners.com/.
NOTES:
* Forward Advances gross IRR on fully repaid advances is high
due to faster than expected repayments and low levels of defaults
amongst early Advances customer cohorts. The Group expects this to
trend down to 25% over time.
**Figures prepared on a pro forma basis excluding Forward
Advances. Cazoo holding value based upon share price and GBP:USD
exchange rate fixed at NYSE market open 09:30 UTC on 27 August
2021).
S
Enquiries
FORWARD PARTNERS GROUP PLC Via Maitland/AMO
Nic Brisbourne, Chief Executive Officer
Liberum Capital Limited
(Nominated Adviser and Broker) Tel: +44 20 3100 2222
Neil Patel
Lauren Kettle
Edward Phillips
Cara Murphy
Maitland/AMO (Financial PR) forwardpartners@maitland.co.uk
Sam Turvey Tel: +44 (0) 207 379 5151
About Forward Partners
Founded in 2013, Forward Partners is an established and
respected London-based venture capital firm, specialising in
supporting high growth, early-stage technology businesses.
The Group brings together venture capital provider Forward
Ventures, equity-free revenue-based financing through Forward
Advances and highly specialised growth support from Forward Studio.
This model supports founders to build stronger businesses faster to
provide better outcomes for companies and investors alike.
The Group makes equity investments in early-stage, high growth
UK companies, and from inception to its admission to London's AIM
market in July 2021 had made over 60 unique investments and built a
portfolio with an Initial Portfolio NAV in excess of GBP100m. It
holds an eight-year track record of making venture capital
investments, and targets underlying NAV growth of 20% per annum
over the cycle.
The management team brings together highly experienced venture
capitalists, entrepreneurs, and expert consultants. Since 2015,
Forward Partners has been backed by BlackRock, one of the largest
institutional investors in the world. The Group receives over 4,000
start-up funding applications every year.
For more information, visit https://forwardpartners.com.
Strategic report
Overview
Welcome to Forward's maiden results review. These results detail
an unusual period for us in the build up to an exceptional
milestone for Forward - our admission to trading on the London
Stock Exchange on 19 July 2021. As CEO and founding partner, it was
the finale to the realisation of a long-held vision and the
culmination of nearly three years of planning, leading up to our
IPO. Despite the change in structure of the business, our mission
remains the same: to build the UK's leading and most admired
early-stage venture firm, delivering consistent net asset growth
for our stakeholders.
To prepare for public life and a new tranche of funding, our
strategy during this period was focused on increasing shareholder
value. Our Studio Team worked with our Ventures and Advances
portfolio companies to improve returns on both sides of our
business, and we strengthened our Ventures investment team and
pipeline in anticipation of a strong second half for new
investments.
I'm pleased to highlight that we've continued to deliver great
Ventures Portfolio Value growth - in excess of our 20%
annualised-over-the-cycle objective. Momentum in the portfolio
remains strong and we're confident we will continue to see good
growth in H2. We have deployed capital through one new investment
and a series of nine follow-ons through Forward Ventures and 45
Advances through Forward Advances. Deployments since Admission have
been in line with expectations, and we saw three exits totalling
GBP11.7m.
Strong portfolio momentum
Forward's investment strategy focuses on building a balanced
portfolio of businesses that leverage eCommerce, digital
marketplace and applied AI operating models. Despite an
unpredictable year for many businesses - and widespread economic
damage, the COVID-19 pandemic has accelerated a transition to
digital that has delivered benefits for many companies in our
portfolio.
On admission, Forward's initial portfolio consisted of 46 active
companies. Over 50% of the Group's Net Asset Value at Admission was
in companies growing revenues at a rate of 100% or more per year.
Forward Advances also continued to enjoy strong growth, as detailed
below.
The Portfolio Value Table in the Interim Financial Review
provides further detail on the movements in the portfolio.
Ventures deployments on track, Advances growth accelerates
Our pipeline is strong, and our investment plan is on track to
deliver at least five new Ventures investments in the current
financial year.
In the period from 1 January 2021 to Admission, we added
Clustermarket, a SaaS-enabled marketplace for laboratories and
equipment, following a GBP0.7m investment in June. We were also
pleased to provide GBP2.8m in follow-on investments to portfolio
companies including Ably, Uplearn and Koyo as part of larger rounds
alongside other investors.
Forward Advances also made excellent progress throughout the
period, increasing the total number of 'Advances' made
quarter-on-quarter by 65% in Q2 alone, and seeing an increase in
advance sizes to boost total originations by 177%. H1 gross IRR on
fully repaid Advances was 39.6%, although as noted above we expect
this to trend down to 25% over time. Default rates are on budget
and below 1%.
Since our Admission in July, we have seen continuing momentum.
In August we announced a GBP1m investment into Ryde, the on-demand
delivery driver platform, as part of a high-profile GBP2.5m
fundraise round alongside Triple Point and existing investors
including Seedcamp.
We also reported the Group's first significant cash
realisations. In August, we announced trade sales of Heights and
Wonderbly totalling GBP5.0m cash, followed shortly after by Cazoo's
SPAC merger that resulted in a holding valued at GBP6.7m consisting
of cash and shares (based on the Cazoo Group Limited share price
and a fixed GBP:USD exchange rate as at 09:30 UTC on 27 August
2021).
We expect to see this momentum continue as our portfolio matures
with more exit opportunities for the Group in 2022 and beyond.
Preparing for long-term success
Forward Partners Group brings together venture capital provider
Forward Ventures, equity-free revenue-based financing through
Forward Advances and highly specialised growth support from Forward
Studio.
We believe that by bringing these three offers together into one
proposition we can provide better support to founders to build
stronger businesses and meet strategic goals faster - ultimately
aiming to provide better outcomes for companies and investors
alike.
As we prepare for the future, we look to drive key outcomes for
each business unit to deliver long-term outcomes for the Group.
-- Forward Ventures
To pave the way for further growth, Forward Ventures have
focused through this period on supporting portfolio companies to
grow through capital and support; strengthening our pipeline of
high-potential deals, whilst maintaining strong discipline over our
valuations process and methodology.
Key to our continuing success is our ability to generate deal
flow and make wise investments. Our brand is in a strong position
at the heart of an incredible technology ecosystem in London. In
2020, the Group reviewed in excess of 4,000 opportunities, held 445
first meetings and conducted detailed due diligence on 40 of the
most promising opportunities. This ultimately led to five highly
considered investments utilising our framework-driven approach to
screening companies and founders.
We have a strong portfolio from which we will back the emerging
winners as well as invest in new deal flow. With a stronger balance
sheet, we expect to lead more deals and increase our average equity
holding over time.
-- Forward Advances
We also see great potential for Forward Advances, our
revenue-based financing business - now subsumed as a subsidiary of
the Group following our IPO restructuring. Advances is deploying
capital into the expanding market of high-growth digital SMEs at a
rapidly accelerating rate. The team is growing a pipeline of high
quality leads from existing and from new channels - including
through brokers for the first time in this period. Discipline,
rigour and automation are increasing as the business scales, most
notably in the underwriting process following the appointment of a
Head of Credit in the period. We move forward with confidence that
we have a big opportunity in front of us.
-- Forward Studio
Through the Forward Studio, we continue to drive growth for the
portfolio and de-risk investments for both Forward Ventures and
Forward Advances. This work begins with attracting the best
businesses through educational and development programmes. For
example, we are currently making preparations for our next Founders
Programme - an accelerator programme for aspiring founders which we
will run in H2 and for which we expect to see over 300
applications. For the companies we invest in - and for Advances -
we will continue to assist in structuring marketing and growth,
building customer-centred products and offering support in
preparing for further funding.
Outlook
We've prepared for growth, strengthening our business to support
deployment of capital into high growth, early-stage technology
companies. Following our IPO we have a strong cash position,
holding GBP36.6m post admission. We've worked to develop our team
and infrastructure to support us as we scale, whilst maintaining
the discipline required to generate great returns. We have a clear
investment strategy, a strong pipeline and a deployment plan that
we believe will continue to create value for our investors in the
periods ahead.
The UK tech ecosystem saw a record high VC investment of $15bn
in 2020 - and it continues to grow, with the first quarter of 2021
up by a remarkable 25% on Q4 2020. All that in spite of Brexit and
the pandemic.
As we move into autumn and hopefully out of lockdown, we believe
that the ever-increasing pace of change and the maturing of the UK
tech ecosystem will combine to generate stronger companies and
bigger opportunities than ever before. Despite the media focus on
big exits and late stage deals, at Forward we believe the best
opportunities to invest and add value are at the earliest stages.
That's when growth is fastest and competition for deals is less
fierce.
When the world experiences adversity, challengers see
opportunity. It's why at Forward, we believe that entrepreneurs
will be the ones to solve many of the world's problems. At such a
time as this, we have seen more challenges, challengers and
opportunities for change than ever before.
The reason we come to work every day is to give the founders of
these startups their best shot at success. By bringing venture and
revenue-based finance together with specialised growth support
we're offering just that. These are great times to work in the
startup ecosystem and we are excited to continue building
shareholder value on our mission to build the UK's leading and most
admired early-stage venture firm.
Thank you to all our shareholders for their continuing support
of this vision.
Nic Brisbourne
Chief Executive Officer
Portfolio review
At 30 June 2021, Forward Partners' portfolio consisted of 46
active companies, with a Ventures Portfolio Value (the gross value
of the Group's investment holding before deductions for carried
interest) of GBP108.0m (vs 31 December 2020: GBP86.0m - pro forma).
Through the reporting period, we have seen good growth, with
Ventures Portfolio Value increasing by 25.6% - totalling GBP22.0m,
including new investments.
Portfolio
The Forward portfolio has been constructed to maximise risk
adjusted growth by balancing upside potential, chance of failure,
likely holding period and concentration risk.
We focus investment across three key operating models: applied
AI, eCommerce and marketplace, representing 19.6%, 26.1% and 34.8%
of the portfolio respectively at 30 June 2021; and our top fifteen
core holdings representing 71.1% of Ventures Portfolio Value with
the largest holding representing 11.6%.
At 30 June 2021, Forward Partners core holdings (top 15 by
Portfolio Value) were Ably, Cazoo, Rest Easy (Snaptrip), Patch,
Makers, Lexoo, Apexx, Juno, Spoke, Cherryz, Koyo Loans, Appear
Here, Fy, Counting Up and Wonderbly. Key movements include Ably
Realtime's $70m Series B round that resulted in a GBP10.3m uplift
on the Group's existing stake. Other significant positive movements
included an uplift of GBP3.2m on Cherryz and GBP3.7m on Cazoo as a
result of their SPAC merger. Conversely, the notable valuation
declines were at Patch (GBP2.7m) and Makers (GBP2.5m) where the
effects of Covid have resulted in slowing sales momentum. We are
hopeful they will return to valuation growth in the next 6 - 12
months.
Investments
GBP3.5m was invested by Forward Ventures between 1 January 2021
and 30 June 2021 of which GBP0.7m was invested in a new portfolio
company and GBP2.8m invested into nine existing portfolio companies
in follow-on rounds.
New investments
-- Current period to 30 June 2021
-- Clustermarket. Forward Partners invested GBP0.7m into the
all-in one lab management platform as part of the company's $3.5m
round, alongside Haymarket and existing investors.
-- Post period end
-- Ryde. Forward Partners invested GBP1m into Ryde, the
on-demand delivery driver platform, as part of a GBP2.5m fundraise
round alongside Triple Point and existing investors including
Seedcamp.
-- Two further new investments totalling GBP2.0m completed.
Follow-on investments
-- Current period to 30 June 2021
-- Ably. Forward Partners invested GBP0.5m into Ably, a platform
building real time infrastructure for the internet as part of the
company's $70m round co-led by Insight Partners and Dawn
Capital.
-- Koyo Loans. Forward Partners invested GBP0.5m into Koyo, a
loans provider as part of a $50m Series A led by Force Over
Mass.
-- HIGHR. Forward Partners invested GBP0.1m into HIGHR, a DTC clean cosmetics company.
-- UpLearn. Forward Partners invested GBP0.3m into UpLearn, an online learning platform.
-- Ahauz. Forward Partners invested GBP0.1m into Ahauz, a
PropTech firm seeking to help first time buyers get on the property
ladder.
-- Aphetor. Forward Partners invested GBP0.2m into Aphetor, a sports entertainment platform.
-- Cherryz. Forward Partners invested GBP0.6m into Cherryz, an
online discount retailer of low price fast-moving consumer goods
and general merchandise.
-- Counting Up. Forward Partners invested GBP0.2m into Counting
Up, one of the UK's leading small business banking apps.
-- Fair HQ. Forward Partners invested GBP0.3m into Fair HQ, a
platform that helps businesses to improve their diversity and
inclusion.
-- Post period end
-- Ahauz. Forward Partners invested GBP0.1m into Ahauz, a
company that provides equity loans to first-time home buyers.
-- FairHQ - Forward Partners invested GBP0.1m into FairHQ, a
company who help businesses to embed diversity and inclusion best
practices through an online platform.
-- Juno. Forward Partners invested GBP0.2m into Juno, a company
who provide conveyancing services to house buyers.
-- Virtuoso. Forward Partners invested GBP0.5m into Virtuoso, a
company who provide software testing services utilising applied
AI.
Realisations
-- Current period
There were no realisations in the period between 1 January 2021
to 30 June 2021.
-- Post period end
The Group achieved its first significant exit opportunities
following Admission totalling GBP11.7m.
-- Heights. Forward Partners exited from supplements brand
Heights, facilitated by a third-party investment realising a total
cash return of GBP2.2m, valuing its stake at 2.1x the carrying NAV
held at 31 March 2021. It represents a 2.3x cash on cash return and
29% IRR.
-- Wonderbly. Forward Partners exited from Wonderbly, the
publishing platform for personalised children's books following
private equity firm Graphite Capital's acquisition. The total cash
return from the Wonderbly investment, including GBP0.5m from a
partial sell-down in 2015, stands at GBP3.3m, valuing its stake at
1.0x the carrying NAV held at 31 March 2021. It represented a 13.1x
cash on cash return and 103% IRR.
-- Cazoo. Forward Partners saw a valuation increase of GBP3.7m
following Cazoo's SPAC merger increasing our holding from GBP3.0m
at 31 March 2021 to approximately GBP6.7m. Forward Partner's
holding in Ajax (now renamed Cazoo Group Limited) consists of
1,042,328 shares (the "Cazoo Shares") with a value of GBP6.6m based
on the company's opening share price on 27 August 2021. Of the
Company's Cazoo Shares, 90,911 are to be held in escrow alongside
approximately GBP91k in cash for a period of 12 months from the
date of completion of the Merger. Forward's non-escrow shareholding
in Ajax is subject to a lock-up of six months from the date of
completion of the Merger. Figures are approximate and based upon a
share price and GBP:USD exchange rate fixed at NYSE market open
09:30 UTC on 27 August 2021.
Top 15 Portfolio Companies by valuation
Figures shown below, including total investment, NAV and
illustrative NAV return, are unaudited and correct as at 30 June
2021. The top 15 investments cover 71% of the portfolio by fair
value.
Fair Invested Delta Fair Invested Realised Delta Fair
Value Value Value
31/12/20 31/03/21 30/06/21
--------------------- ---------- --------- ------ ---------- --------- --------- ------ ----------
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Ably 2.3 9.8 12.1 0.5 12.6
Cazoo 2.8 0.2 3.0 3.7 6.7
Snaptrip 4.6 1.7 6.3 0.9 7.2
Patch 9.0 (0.5) 8.5 (2.2) 6.3
Makers 8.5 (1.4) 7.1 (1.1) 6.0
Lexoo 5.8 (0.8) 5.0 0.6 5.6
Apexx 2.4 2.3 4.7 4.7
Juno 3.3 (0.6) 2.7 1.8 4.5
Spoke 5.0 5.0 (1.0) 4.0
Cherryz 0.5 0.6 2.6 3.7 3.7
Koyo Loans 3.6 (1.8) 1.8 0.5 1.1 3.4
Appear Here 2.6 2.6 0.7 3.3
Fy 3.4 3.4 (0.5) 2.9
Counting Up 2.1 0.3 0.4 2.8 2.8
Wonderbly 2.8 2.8 2.8
Remaining portfolio 27.3 0.6 1.4 29.3 1.0 1.2 31.5
---------- --------- ------ ---------- --------- --------- ------ ----------
Ventures Portfolio
Value 86.0 1.5 13.3 100.8 2.0 0.0 5.2 108.0
Forward Advances 0.6 1.6 - 2.2 1.0 (3.2) - 0.0
---------- --------- ------ ---------- --------- --------- ------ ----------
Total Portfolio
value (including
Advances) as
per Admission
document 86.6 3.1 13.3 103.0 3.0 (3.2) 5.2 108.0
Carried Interest (5.4) - (2.2) (7.6) - - (1.5) (9.1)
Net Ventures
Portfolio Value 81.2 3.1 11.1 95.4 3.0 (3.2) 3.7 98.9
---------- --------- ------ ---------- --------- --------- ------ ----------
Portfolio update
Note: FD Category represents fully diluted interest shares
categorised as follows: Cat A: 0-5%, Cat B: 6-10%, Cat C: 11-15%,
Cat D: 16-25%, Cat E: >25%.
Ably
Ably is building better real-time infrastructure for the
internet. Established in 2016 by Matthew O'Riordan and Paddy Byers,
Ably provides a platform to handle complex, behind-the-scenes real
time communication that powers chat, live updates, Internet of
Things ("IoT"). It delivers billions of messages to more than 50
million people across web, mobile, and IoT platforms every day.
Recent news
-- On June 30th, Ably announced a successful raise of $70m led
by Insight Partners and Dawn Capital.
-- Overall, Ably reaches 250 million devices per month.
-- Funding will be used to strengthen the UK team, expanding it
from 65 to 125 employees by the end of 2022 to drive innovation and
scale.
Total invested : GBP1.7m | Fair Value: GBP12.6m | Fair Value /
Investment: 7.4 x | FD Category B
Cazoo
Cazoo is an online used car marketplace designed to transform
the way people buy, finance, or rent used cars. The platform
enables customers to purchase a used car online and have it
delivered to their door. It provides a free 90-day warranty and
roadside assistance, enabling the customers to embrace the
simplicity of the online convenience, free delivery, and 7-day
money-back guarantee.
Recent news
-- Post-period, in August 2021, Cazoo raised $1bn in a SPAC
merger, increasing Forward Partners holding by GBP3.7m to
approximately GBP6.7m.
-- In May 2021, Cazoo announced their 25,000th car sale in just 18 months since launch.
-- Recently, Cazoo acquired leading automotive data insights platform, Cazana.
Total invested : GBP1.6m | Fair Value: GBP6.7m | Fair Value /
Investment: 4.1 x | FD Category A
Snaptrip
Snaptrip is a marketplace that helps people to discover the best
last minute cottage holiday deals in the UK. Founded in 2014 by Dan
Harrison and Matthew Fox, Snaptrip has grown to offer over 60,000
professionally managed cottages from big-name partners. They hold a
rating of 4.4/5 on Trustpilot.
Recent news
-- Company raised a GBP2.1m round in May 2021 led by Bestport Ventures.
-- Funding used to acquire Last Minute Cottages.
-- The team aim to grow their position as the UK's biggest and
best 'last minute' self-catering brand.
Total invested : GBP0.6m | Fair Value: GBP7.2m | Fair Value /
Investment: 12.0 x | FD Category D
Patch
Patch is one of the leading online UK direct-to-consumer plant
stores. Established in 2015 by Freddie Blackett, Patch helps people
who need plants most - those who live and work in the city - to
choose and care for plants in their home and workplace. The company
has attracted over 250,000 customers. They hold a 4.8/5 rating on
Trustpilot and an audience of 240,000 plant fans on Instagram.
Patch was recently voted 28th in start-ups.co.uk '100 to
watch'.
Recent news
-- Opened a new fulfilment centre to reduce delivery times and logistics costs.
-- Exhibiting at the Chelsea Flower Show in collaboration with The Edible Bus Company.
-- Launched the Patch Plant Hotel to take care of customers' plants whilst they are on holiday.
Total invested : GBP1.1m | Fair Value: GBP6.3m | Fair Value /
Investment: 5.7 x | FD Category D
Makers
Makers are creating a new generation of tech talent through
courses and apprenticeships. Its combination of academy and
recruitment agency has enabled them to upskill and place graduate
developers with over 300 businesses, including Google, Tesco,
Starling Bank, and the BBC. Makers hold a rating of 4.7/5 from
customers on bootcamp review site SwitchUp.
Recent news
-- July marked the third year of Maker's Women in Software Power
List in partnership with Google Startups UK and Computer
Weekly.
-- Now working with three of the world's largest technology companies.
-- Announced their first 12 Represent Scholars, free places on
the Makers course offered to individuals from under-represented
groups.
Total invested : GBP1.0m | Fair Value: GBP6.0m | Fair Value /
Investment: 6.0 x | FD Category E
Lexoo
Lexoo is a technology-driven legal outsourcing solution. Founded
in 2014, the company has grown to deliver legal services to
companies worldwide through a network of more than 1,100 lawyers in
70 countries. Tackling transparency and efficiency in the legal
market, the team leverages technology driven processes to unlock
capacity, efficiency and improve stakeholder engagement. Lexoo
holds a rating of 4.6/5 on TrustPilot.
Recent news
-- Soon to launch a new product line to offer GDPR assessments as a recurring service.
-- Launched a credits-based subscription model to drive
recurring revenue from ad-hoc client base.
-- Trustpilot plc onboarded as a client.
Total invested : GBP1.5m | Fair Value: GBP5.7m | Fair Value /
Investment: 3.8 x | FD Category E
Apexx
Apexx's platform allows merchants to connect via a simple API
connection to the world's payment ecosystem, increasing conversion
at lower cost and satisfying their entire payments needs. The team
has grown to 41 people working across 3 countries and serves
clients such as ASOS, Xe, eShopworld and Air Seychelles.
Recent news
-- In August 2021, Apexx announced four new global brands -
Atome, LayBuy, Sezzle and Tamara signed on to use their
platform.
-- Apexx have expanded sales operations to cover the USA, 2 FTEs now hired.
-- Buy-now-pay-later aggregation tool continues development with
multiple providers signed up to the product.
-- Winner of Payment innovation of the year at the 2021 FS Tech awards.
Total invested : GBP1.6m | Fair Value: GBP4.7m | Fair Value /
Investment: 2.9 x | FD Category B
Juno
Juno brings together legal expertise with software and AI to
offer conveyancing that's clear, convenient and reliable. Juno's
goal is to become the UK's largest and most trusted property law
firm. Established in 2017 by Etienne Pollard and Henry Hadlow, the
Juno vision is to make the legal side of home buying simpler,
clearer and faster. The founders saw an opportunity in a
fragmented, people intensive legal and conveyancing sector. Their
disruptive solution leverages a data-driven approach to drive
better, faster, more cost-efficient services. Revenues more than
doubled in 2020. Juno holds a Trustpilot rating of 4.4/5.
Recent news
-- Launched closed beta of AI-enabled legal service to complete
property purchases, targeting 10x faster than average
completions.
-- Launched new buy-to-let remortgaging product, targeting 5x speed-up vs industry average.
Total invested : GBP2.1m | Fair Value: GBP4.5m | Fair Value /
Investment: 2.1 x | FD Category D
Spoke
Spoke is a direct-to-consumer eCommerce company that provides
better fitting, better looking men's clothes. Established in 2013,
the company has sold more than 100,000 pairs of chinos since 2014.
It has been featured in GQ and Esquire and holds a Trustpilot
rating of 4.7/5.
Recent news
-- In May, Spoke announced ITV's subscription of GBP2m in convertible loan notes.
-- Spoke will use ITV's media investment to launch a TV
advertising campaign running alongside major sporting events.
Total invested : GBP2.3m | Fair Value: GBP4.0m | Fair Value /
Investment: 1.7 x | FD Category C
Cherryz
Cherryz is an online discount retailer of low price fast-moving
consumer goods and general merchandise. Its app brings consumers
through a user journey that combines the convenience of online
shopping with the favourable low prices of discount stores. Cherryz
is focused on a growing online grocery sector and creating shopping
(vs. buying) experiences on mobile devices - trends that have both
accelerated through the Covid-19 pandemic. Cherryz hold a
Trustpilot rating of 4.4/5.
Recent news
-- Increased headcount from 25 to 70.
-- Tripled the size of our fulfilment operations.
-- Invested in machine learning in order to deliver a more personalized customer experience.
Total invested : GBP1.8m | Fair Value: GBP3.7m | Fair Value /
Investment: 2.0 x | FD Category B
Koyo Loans
Koyo uses open banking and applied AI to offer personal loans to
consumers who lack traditional historical credit data, without
excessive fees for credit. Established in 2018 by Thomas Olszewski,
Koyo is on a mission to provide loans that are personal and
transparent, to those who have little or no options through no
fault of their own. They launched their service in 2019 and have
achieved a Trustpilot rating of 4.9/5.
Recent news
-- Post-period in September, Koyo closed a $50m Series A led by Force Over Mass.
-- The company anticipates using the funding to provide access
to competitively priced credit, when most traditional leaders have
been scaling back lending.
Total invested : GBP2.0m | Fair Value: GBP3.4m | Fair Value /
Investment: 1.7 x | FD Category C
Appear Here
Appear Here is an online marketplace for retail space. The
company is building a global network of the best retail spaces and
working exclusively with some of the biggest landlords in the world
including Land Securities, Hammerson and Westfield. Spaces listed
on Appear Here include prime high street shops, underground
stations, unique venues, major shopping malls and historic
buildings. All spaces are exclusive to Appear Here and can be
booked by the week or month.
Recent news
-- Grown supply to double pre-pandemic levels.
-- Revenue has grown significantly since the ending of the 3rd
lockdown, with revenue up 500% since Jan 2021.
-- Despite rental prices decreasing due to Covid, average order
values have increased on Appear Here's platform reflecting longer
booking durations.
Total invested : GBP1.7m | Fair Value: GBP3.2m | Fair Value /
Investment: 1.9 x | FD Category C
Fy!
Fy! is a mobile-first eCommerce marketplace designed to meet the
needs of millennial shoppers. The platform uses a combination of
social content, machine learning, and a deep understanding of its
products and suppliers to create a personalised experience for each
shopper using the site and app. The company already ships over
100,000 products from over 2,000 creators to 30 countries across
the world. FY! hold a Trustpilot rating of 4.8/5.
Recent news
-- In March 2021, Fy! secured a GBP5m funding round led by Hoxton ventures.
-- The company used the funds to invest in international - particularly US growth.
-- The team has invested into technology to solve problems
eCommerce players face with outdated, legacy systems.
Total invested : GBP0.7m | Fair Value: GBP2.8m | Fair Value /
Investment: 4.0 x | FD Category B
Counting Up
Countingup is one of the UK's leading small business banking
apps with built-in accounting features. Its vision is to become a
"financial hub" for micro businesses in the UK and beyond. The
company was established in 2017 by Tim Fouracre, who previously
founded cloud accounting software Clear Books. It combines a
business bank account with bookkeeping features to help automate
the filing of accounts, a major time sink and pain-point for an
underserved market of sole traders and small businesses. The
company now boasts over 34,000 business customers.
Recent news
-- In March 2021, Counting Up closed GBP9.1m in funding, led by Framework Venture Partners.
-- Funding to be used to scale the team from 30 to 80 people and
accelerate their technology roadmap.
-- The company were finalists in this year's British Bank Awards
for the Best Business Banking Provider and Best Banking App.
Total invested : GBP1.0m | Fair Value: GBP2.8m | Fair Value /
Investment: 2.8 x | FD Category B
Wonderbly
Wonderbly is a vertically integrated publishing startup from
London. Wonderbly combines the power of stories with the
possibilities of technology, to create magical, personalised
experiences and make kids around the world more curious, clever and
kind. The business was established in 2012 - their first product
www.lostmy.name sold over 600,000 copies and shipped to over 135
countries across the world. To date it has delighted over 6 million
children with over 40 stories in 7 languages. Wonderbly's product
is disrupting the traditional publishing industry with cutting-edge
technology and clever algorithms that create truly personalised
children's books - actually placing their young readers within the
story. The business has won a number of awards and was nominated
for a BAFTA in 2016. They hold a Trustpilot rating of 4.6/5.
Recent news
-- Graphite Capital acquired Wonderbly in July 2021, realising GBP2.8m for Forward Partners.
-- This year Wonderbly won Children's Publisher of the Year.
Total invested : GBP0.25m | Fair Value: GBP2.8m | Fair Value /
Investment: 11.2 x | FD Category B
Interim Financial Review
Welcome to our maiden Interim Accounts as a listed company,
prepared as at 30 June 2021. The period was defined by the
preparations for our successful IPO on 19 July 2021 which received
strong backing from new and existing investors. As part of the IPO,
we undertook a Group restructuring exercise. As a result, Forward
Partners Fund I and Fund II; the limited partnerships holding the
initial portfolio of 46 companies, were acquired by the Company for
share consideration of GBP97.5m. The Group's management company,
Forward Partners Management Company Limited and Forward Partners
Venture Advance Limited became subsidiaries of the Group. Forward
Partners completed a successful fundraise to provide cash for
further investment of GBP36.5m.
The Company was incorporated on 4 March 2021 as a holding
company for the Group and in the period between incorporation and
30 June 2021 had not commenced operations. For completeness, the
unaudited financial results for the Company for the period from 4
March to 30 June 2021 are set out below. In order to provide a more
meaningful picture of the trading position of the Group in the six
months to 30 June 2021 these interim results also present an
unaudited pro forma consolidated statement of comprehensive income,
consolidated financial position and balance sheet for the Group (as
constituted following its IPO restructuring) had it been in
existence during the period under review.
The group's cash position strengthened post period end, raising
GBP36.6m through the successful listing on the AIM market of the
London Stock Exchange, and receiving GBP5.0m from investment
portfolio company exits. During the period Forward Advances book
value grew from GBP0.2m to GBP2.5m, an increase of 1,130%. Default
rates are on budget and below 1%.
Portfolio valuation
The Ventures Portfolio Value (the gross value of the Group's
investment holding before deductions for carry interest liability)
as at 30 June 2021 was GBP108.0m (31 March 2021 GBP103.0m which
included Forward Advances, GBP100.8m excluding Forward Advances).
This is reflected in the pro forma consolidated interim statement
of financial position as a financial asset held at fair value
through profit or loss. The investment in Forward Advances was
moved out of investments at IPO to be treated as a subsidiary
operation.
No proceeds from realisations were received through this period.
Investments of GBP6.1m (including GBP2.6m into Advances) were made
and a gross fair value uplift of GBP18.9m was recognised. The
Portfolio Value Table above reflects the gross and net movement in
value of the portfolio during the period.
Key drivers of value in this period have been through funding
rounds with third party investors at higher values as well as the
revenue growth in underlying portfolio businesses. Key portfolio
company movements in the period include Cazoo, Juno and Koyo.
Interim statement of financial position
Net assets as at 30 June 2021 on a pro forma basis were
GBP102.1m which represents a 6.8% increase over the pro forma Net
Assets of GBP95.6m as at 31 March 2021 shown in the Company's
Admission Document on a like for like basis (GBP129.3m less
GBP33.7m cash proceeds) driven principally by the increase in the
fair value of the Investment Portfolio. A Net Asset value of
GBP102.1m represents a NAV per share of 104.1 pence per share
against an issue price of 100.0 pence per share.
Forward Advances Loan facility
In July 2021 the Forward Advances business secured a GBP5.0m, 3
year revolving wholesale lending facility to finance its lending
book rollout.
Matthew Bradley
Chief Financial Officer
INTERIM FINANCIAL INFORMATION ON FORWARD PARTNERS GROUP PLC
Pro forma Consolidated Interim Statement of Comprehensive Income
(unaudited)
1 January
to 30
June 2021
GBP000's
--------------------------------- -----------
INCOME
-----------
Change in unrealised gains 14,573
-----------
Fee income 1,404
-----------
Other Income 228
-----------
Total Income 16,205
--------------------------------- -----------
OPEX
-----------
General administrative expenses 2,260
-----------
Depreciation and amortisation 16
-----------
Total operating costs 2,276
--------------------------------- -----------
Operating profit before tax 13,929
--------------------------------- -----------
Tax expense 0
-----------
Profit for the period 13,929
--------------------------------- -----------
Gain on negative goodwill(1) 136
--------------------------------- -----------
Total comprehensive income for
the period 14,065
--------------------------------- -----------
Notes
1) The negative goodwill was a one off benefit that arose on the
acquisition of the Forward Partners Management Company Limited
which undertakes the management of the investment funds. In line
with IFRS 3 Business Combinations it has been recognised in the
profit and loss immediately.
Pro forma Consolidated Interim Statement of Financial Position
(unaudited)
30 June 2021
GBP000's
--------------------------------- -------------
NON-CURRENT ASSETS
-------------
Financial assets held at
fair value 98,936
-------------
Intangible assets(1) 1,210
-------------
Property, plant and equipment 50
-------------
Right of use assets 119
-------------
Total non-current assets 100,315
--------------------------------- -------------
CURRENT ASSETS
-------------
Cash and cash equivalents 412
-------------
Trade and other receivables 310
-------------
Loans (Advances) receivables(2) 2,438
-------------
Total current assets 3,160
--------------------------------- -------------
CURRENT LIABILITIES
-------------
Trade and other payables (1,242)
-------------
Lease liability (118)
-------------
Total current liabilities (1,360)
--------------------------------- -------------
NON-CURRENT LIABILITIES
-------------
Deferred tax (6)
-------------
Total non-current liabilities (6)
--------------------------------- -------------
Net Asset Value 102,120
--------------------------------- -------------
Net assets per share (pence) 104.1
--------------------------------- -------------
Notes:
1) Includes GBP1.1m of Goodwill arising on consolidation on the
acquisition of Forward Partners Venture Advance Limited and GBP0.1m
of software assets
2) These are Advances (loans) made to customers by Forward Advances
3) Net Assets per share is calculated on 98,113,117 shares
issued that were issued up to and including the Group
restructuring
Consolidated interim statement of Comprehensive income -
unaudited
Unaudited Period
from 04 March
to 30 June
2021
GBP'000s
--------------------------------- -----------------
Operating expenses 0
General administrative expenses 0
Total operating costs 0
Loss from operations 0
Total comprehensive income
for the period 0
--------------------------------- -----------------
The notes below are an integral part of these consolidated
interim financial statements.
Interim statement of financial position - unaudited
Note Unaudited as at
30 June 2021
GBP'000s
------------------------------ ----- ----------------
Trade and other receivables 50
------------------------------ ----- ----------------
Total current assets 50
------------------------------ ----- ----------------
Net assets 50
------------------------------ ----- ----------------
Equity
Share capital 50
------------------------------ ----- ----------------
Total equity 50
------------------------------ ----- ----------------
Net assets per share (pence) 5 100
The interim financial statements were approved by the Board of
Directors and authorised for issue on 29 September 2021.
M. Bradley
Chief Financial Officer
The notes below are an integral part of these consolidated
interim financial statements.
Consolidated interim statement of changes in equity
For the period ended 30 June 2021
Note Share Capital Retained Total Equity
Earnings
GBP'000s GBP'000s GBP'000s
Balance at 04 March
2021 0 0 0
Comprehensive Income
for the period 0 0
Issue of share capital 7 50 50
------------------------ ----- -------------- ---------- -------------
Balance at 30 June
2021 50 0 50
------------------------ ----- -------------- ---------- -------------
The notes below are an integral part of these consolidated
interim financial statements
1. General Information
The information for the period ended 30 June 2021 does not
constitute statutory accounts as described in section 80 of the
Companies Act 2006. Comparative figures are not available as the
Company was newly incorporated on 4 March 2021.
The interim financial statements are presented in Pounds
Sterling (GBP/GBP), which is the currency of the primary economic
environment in which the Company operates. All amounts are rounded
to the nearest thousand, unless otherwise stated
2. Basis of Preparation
The Company has prepared unaudited financial statements for
illustrative purposes only. The Company's financial statements have
been prepared in accordance with IFRSs, in conformity with
applicable law, International Financial Reporting Intermediate
Committee (IFRIC) interpretations and the Companies Act 2006
applicable to companies reporting under IFRSs.
These financial statements for the period ended 30 June 2021 are
the first the Company has prepared in accordance with IFRSs and
IFRS1 First-time Adoption of International Financial Reporting
Standards has been applied.
The financial statements have been prepared under the historical
cost convention.
The preparation of financial statements in conformity with IFRSs
requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of
applying the Group's accounting policies.
The interim financial statements are for the period from 4 March
2021 to 30 June 2021 and have been prepared on a going concern
basis. They are unaudited and do not include all of the information
required in statutory annual financial statements in accordance
with the IFRSs in conformity with applicable law.
Accounting standards require the directors to consider the
appropriateness of the going concern basis when preparing the
financial statements. The directors confirm that they consider that
the going concern basis remains appropriate as the Company has
adequate resources to continue in operational existence for the
foreseeable future based upon forecasts.
The interim financial statements have been approved for issue by
the Board of Directors on 29 September 2021.
3. Standards not affecting the reported results or financial position
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.
4. Adoption of new and revised standards
No changes to IFRS have impacted this period's financial
statements.
5. Net asset value per share
Net asset value per share is based on the net assets
attributable to shareholders and the number of shares at the
relevant reporting date (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.
Net Assets Per Ordinary Share
Net Assets Weighted average Pence
GBP'000s no. of shares per share
-------------- ----------- ----------------- -----------
30 June 2021 50 50,001 100.0
Diluted Net Assets Per Ordinary Share
Net Assets Weighted average Pence
GBP'000s no. of shares per share
-------------- ----------- ----------------- -----------
30 June 2021 50 50,001 100.0
6. Financial assets and financial liabilities
Set out below are the Group's financial instruments:
Unaudited
Period from
04 March
to 30 June
2021
GBP'000s
Financial assets
Trade and other receivables 50
Total financial assets 50
-------------
7. Share capital and share premium
Ordinary Share Capital
Ordinary share capital
Allotted and fully paid Number GBP GBP000's
------------------------------------------ ------- ----- ---------
As at 04 March 2021 0 0 0
Issue of share capital during the period
- Ordinary shares 1 0.01 0
Issue of share capital during the period
- Management shares 50,000 1.00 50
As at 30 June 2021 50,001 50
8. Related party transactions
Key management personnel
On 28 May 2021 50,000 GBP1.00 Management Shares were issued to
Allen Browning who is the company Secretary for the Company. These
shares were redeemed at IPO.
9. Ultimate controlling party
At 30 June 2021 the entire share capital was held by Allen
Browning who was the Company Secretary and Finance Director of the
company. This shareholding was for the purposes of the
restructuring of the Group and to enable the subsequent IPO of the
company.
10. Subsequent events
On 19th July 2021 the Company was listed on the AIM market of
the London Stock Exchange.
Post period-end, there has been a continued strong pipeline of
investments with GBP1.0m deployed in Ryde and two further new
investments that have yet to be announced.
There have been two realisations of investments post period end
Lostmy.name Ltd T/A Wonderbly for GBP2.8m and Heights for
GBP2.2m.
Definitions & Glossary
Ventures Portfolio The gross value of the Group's investment
Value holding before deductions for carry interest
liability.
Net Ventures Portfolio The Group's investment holding after deductions
Value for carry interest liability.
------------------------------------------------
Forward Advances Forward Partners Venture Advance Limited
a wholly owned subsidiary of Forward Partners
Group PLC.
------------------------------------------------
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END
IR DVLFLFKLXBBL
(END) Dow Jones Newswires
September 29, 2021 02:00 ET (06:00 GMT)
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