TIDMOAP3
Octopus Apollo VCT plc
Half-Yearly Results
Octopus Apollo VCT plc announces its unaudited half-yearly
results for the six months ended 31 July 2023.
Octopus Apollo VCT plc ('Apollo' or the 'Company') is a venture
capital trust (VCT) which aims to provide shareholders with
attractive tax-free dividends and long-term capital growth by
investing in a diverse portfolio of predominantly unquoted
companies. The Company is managed by Octopus Investments Limited
('Octopus' or the 'Investment Manager').
Financial Summary
Six months to Six months to Year to
31 July 2023 31 July 2022 31 January 2023
------------------------------ ------------- ------------- ----------------
Net assets (GBP'000s) 385,519 300,856 349,493
Profit after tax (GBP'000s) 9,059 15,021 34,541
Net asset value per share
(NAV) (p) 53.1 51.5 53.2
Cumulative dividends paid
since launch (p) 86.0 83.4 84.7
NAV plus cumulative dividends
paid (p) 139.1 134.9 137.9
Total return %* 2.3 5.2 11.2
Dividends per share paid in
period (p) 1.3 1.3 2.6
Dividend per share declared in
the period (p) ** 1.4 1.3 1.3
------------------------------ ------------- ------------- ----------------
(*) Total return is calculated as movement in NAV + dividends
paid in the period divided by the NAV at the beginning of the
period.
(**) The interim dividend of 1.4p per Ordinary share for the
period to 31 July 2023 will be paid on 14 December 2023 to all
Ordinary shareholders on the register at 24 November 2023.
Interim Management Report
Chair's statement
I am pleased to present the half-yearly report for Apollo for
the six months ended 31 July 2023. The net asset value (NAV) plus
cumulative dividends per share as at 31 July 2023 was 139.1p, an
increase of 1.2p per share from 31 January 2023. The NAV Total
Return was 2.3% for the six months. In keeping with the regular
dividend policy, the Board has declared an interim dividend of 1.4p
per share which will be paid to shareholders on 14 December
2023.
In the six months to 31 July 2023 Apollo has had another
successful period, showing good value creation driven by growth in
much of the investment portfolio. This is particularly pleasing
against the ongoing backdrop of the difficult global macroeconomic
environment and the readjustment of valuation multiples we have
been seeing both in unquoted and publicly traded technology stocks.
The underlying portfolio companies have continued to show
resilience and robust performance which has led to the 2.3% NAV
Total Return.
New and follow-on investments and divestment activity in the
period is detailed in the Investment Manager's review.
On 3 February 2023, the Board announced that its offer for
subscription, which opened in October of the prior year, was closed
having successfully raised GBP50 million. The performance of Apollo
and investor demand led the Board to announce on 5 April 2023 its
intention to re-open and increase the size of this offer by a
further GBP40 million. This offer successfully closed on 18
September 2023. This will allow the investment team to continue
making investments on behalf of Apollo, helping to further
diversify the portfolio and create opportunities for future growth.
I would like to take this opportunity to welcome all new
shareholders and thank all existing shareholders for their
continued support.
Following the Board evaluation undertaken earlier this year, and
given the ongoing growth of Apollo, the Board has initiated a
search for an additional Non-Executive Director. The Board have
recently undertaken a review of governance arrangements and have
established two additional committees. The Management Engagement
Committee, which will be chaired by Claire Finn, and a Nomination
& Remuneration Committee, which I will chair. The Management
Engagement Committee will assist the Board in evaluating the
performance of the Portfolio Manager and other third-party service
providers engaged by the Company. The Nomination & Remuneration
Committee considers the selection and appointment of Directors to
the Board and its committees, along with Board composition and
succession planning. Furthermore, I am pleased to advise that
Claire Finn is now the Company's Senior Independent Director.
Transactions with the Investment Manager
Details of amounts paid to the Investment Manager are disclosed
in note 7 to the half-yearly report.
Share buybacks
Apollo has continued to buy back shares in line with our policy.
In the six months to 31 July 2023, the Company bought back
7,709,237 Ordinary shares for total consideration of GBP3.9
million.
Dividend and dividend policy
It is the Board's policy to maintain a regular dividend flow,
where possible, in order to take advantage of the tax-free
distributions a VCT is able to provide, and work towards the
targeted 5% annual dividend yield policy.
The Board has declared an interim dividend of 1.4p per Ordinary
share in respect of the period ended 31 July 2023. The dividend
will be payable on 14 December 2023 to Ordinary shareholders on the
register at 24 November 2023.
Dividend Reinvestment Scheme (DRIS)
The Apollo DRIS is an attractive scheme for investors who prefer
to benefit from additional income tax relief on their reinvested
dividend. During the period to 31 July 2023, 4,038,321 shares were
issued under the DRIS, equating to a reinvested amount of GBP2.1
million.
VCT qualifying status
Shoosmiths LLP provides the Board and Investment Manager with
advice concerning ongoing compliance with His Majesty's Revenue
& Customs (HMRC) rules and regulations concerning VCTs. The
Board has been advised that Apollo is complying with the conditions
set by HMRC for maintaining approval as a VCT. A key requirement is
to maintain at least an 80% qualifying investment level. As at 31
July 2023, 100% of the portfolio, as measured by HMRC rules, was
invested in VCT qualifying investments.
Principal risks and uncertainties
The principal risks and uncertainties are described in detail
within the strategic report in Apollo's annual report for the year
ended 31 January 2023. These are also set out in note 6 to the
half-yearly report.
Murray Steele
Chair
Investment Manager's review
Performance
In the six months to 31 July 2023, the NAV Total Return was
2.3%. This performance is attributable to positive fair value
movements across most of the unquoted investments in the portfolio
but in particular, the continued strong contribution from
technology-focused investments, which now make up 94% of the
portfolio.
The value of the portfolio has increased by GBP15.2 million,
excluding additions. The largest contributors were Codeplay
Solutions Limited (trading as Lodgify - GBP4.7 million valuation
increase), Triumph Holdings Limited (GBP4.1 million valuation
increase) and Ubisecure Limited (GBP2.5 million valuation
increase), supported by positive contributions from other
investments across the unquoted portfolio.
Portfolio activity
During the period GBP3.9 million was invested into one new
investment:
-- Zipline Cloud Pty Ltd (trading as Pendula) -- a two-way
customer communication platform that helps organisations automate
high impact customer engagement to improve customer retention,
satisfaction and drive additional revenue.
During the period GBP10.5 million was invested into six
follow-on investments, the largest of which were:
-- Synchtank GBP2.5 million -- a cloud-based SaaS solution for
managing digital entertainment assets, rights, metadata, and
accounting of royalty payments; and
-- Value Blue B.V. GBP2.2 million -- a Dutch company providing
an IT architecture management solution so customers can plan and
execute digital transformation.
Since the reporting date, the Company has invested GBP6.5
million in a new investment and GBP1.5 million in two follow-on
investments.
In March, we were pleased to exit the Company's holding in The
Safeguarding Company (TSC), a business which combined the best
technology and expertise to protect children and vulnerable adults.
It was acquired by Tes Global, a provider of online educational
services and software. The Company first invested in TSC in August
2019 and during the investment period, TSC almost doubled its
headcount and expanded its product functionality and international
presence. The exit offered the Company a 2.5x total return.
Summary and future prospects
We are delighted to report the continued uplift in the Total
Return of the Company, which is a testament to the investment
strategy and investment team's experience in sourcing, selecting
and structuring deals. The portfolio companies have shown their
resilience in a market where many others have struggled to grow and
succeed. We have found that as many of the portfolio companies have
recurring revenue models, they are more insulated from the
macroeconomic headwinds and market uncertainties many companies
have faced over the last 18 months. We will continue to closely
monitor the portfolio to ensure we can offer the necessary support
as the companies look to grow their revenue base, increase their
market share, and attract new talent.
The return offered to the Company with the acquisition of TSC by
Tes Global was well received, especially when set against the more
challenging exit environment. Opportunities to exit are less
frequent as large market incumbents are not as acquisitive in more
turbulent, uncertain conditions and some are focussing on cost
reductions.
We are pleased with the support we have received from Apollo
investors, and the resulting success of the fundraise. The
investment team will continue to source new investment
opportunities which align with the Company's mandate, and we look
forward to growing the portfolio. We would like to take this
opportunity to thank existing shareholders and welcome new
shareholders.
Richard Court
Partner and Apollo Lead Fund Manager
Investment portfolio
Top ten investments
Fair
Investment value
cost as at as at
31 July 31 July % equity
2023 Total movement in fair value since investment 2023 Movement in fair value in period held by
Sub sector GBP'000 GBP'000 GBP'000 GBP'000 Apollo
----------------------- ------------------- ---------- --------------------------------------------- ------- -------------------------------- --------
Fixed asset investments
N2JB Limited (trading
as Natterbox) Telecommunications 17,490 18,770 36,260 2,183 8.5%
HR and human
Sova Assessment Limited capital 10,500 12,248 22,748 (118) 31.9%
Ubisecure Holdings
Limited Cybersecurity 5,575 15,427 21,002 2,455 33.3%
Triumph Holdings
Limited Life sciences 3,800 14,436 18,236 4,081 52.0%
Fable Data Limited Financial services 6,000 9,000 15,000 - 6.2%
Mention Me Limited Sales and marketing 15,000 - 15,000 (110) 19.4%
Codeplay Solutions
Limited (trading as
Lodgify) Travel 9,541 5,231 14,772 4,651 11.9%
Hasgrove Limited Community 308 12,313 12,621 1,898 5.4%
Fuse Universal Limited Education 8,000 4,157 12,157 721 0.0%
Turtl Surf & Immerse
Limited Sales and marketing 10,000 2,104 12,104 585 13.6%
Other 110,054 31,901 141,955 (1,191)
-------------------------------------------- ---------- --------------------------------------------- ------- -------------------------------- --------
Total investments 196,268 125,587 321,855 15,155
Current asset investments 60,281
Cash at bank 6,082
Debtors less creditors (2,699)
-------------------------------------------- ---------- --------------------------------------------- ------- -------------------------------- --------
Net assets 385,519
-------------------------------------------- ---------- --------------------------------------------- ------- -------------------------------- --------
Directors' responsibilities statement
We confirm that to the best of our knowledge:
-- the half-yearly financial statements have been prepared in accordance
with the Financial Reporting Standard 104 'Interim Financial Reporting'
issued by the Financial Reporting Council;
-- the half-yearly financial statements give a true and fair view of the
assets, liabilities, financial position, and profit or loss of the
Company; and
-- the half-yearly report includes a fair review of the information required
by the Financial Conduct Authority's Disclosure Guidance and Transparency
Rules, being:
-- we have disclosed an indication of the important events that have
occurred during the first six months of the financial year and
their impact on the condensed set of financial statements;
-- we have disclosed a description of the principal risks and
uncertainties for the remaining six months of the year; and
-- we have disclosed a description of related party transactions that
have taken place in the first six months of the current financial
year, that may have materially affected the financial position or
performance of the Company during that period and any changes in
the related party transactions described in the last annual report
that could do so.
On behalf of the Board
Murray Steele
Chair
Income statement
Unaudited Unaudited Audited
Six months to 31 July 2023 Six months to 31 July 2022 Year to 31 January 2023
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
-------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Realised gain
on disposal
of fixed
asset
investments -- 98 98 -- 406 406 -- 525 525
Gain in fair
value of
fixed asset
investments -- 15,155 15,155 _ 21,984 21,984 _ 49,921 49,921
(Loss) in fair
value of
current asset
investments -- (205) (205) -- (628) (628) -- (800) (800)
Investment
income 1,932 -- 1,932 954 11 965 2,257 11 2,268
Investment
management
fees (see
note 7) (877) (4,954) (5,831) (660) (5,834) (6,494) (1,437) (13,512) (14,949)
Other expenses (2,091) -- (2,091) (1,212) -- (1,212) (2,431) -- (2,431)
Foreign
currency
translation 1 -- 1 -- -- -- 7 -- 7
-------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
(Loss)/profit
before tax (1,035) 10,094 9,059 (918) 15,939 15,021 (1,604) 36,145 34,541
Tax -- -- -- -- -- -- -- -- --
-------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
(Loss)/profit
after tax (1,035) 10,094 9,059 (918) 15,939 15,021 (1,604) 36,145 34,541
-------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Earnings per
share --
basic and
diluted (0.2)p 1.5p 1.3p (0.2)p 3.0p 2.8p (0.3)p 6.3p 6.0p
-------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-- The 'Total' column of this statement is the profit and loss account of the Company; the supplementary revenue return and capital return columns have been prepared under guidance published by the Association of Investment Companies.
-- All revenue and capital items in the above statement derive from continuing operations.
-- The Company has no recognised gains or losses other than those disclosed in the income statement.
-- The Company has no other comprehensive income for the period.
-- The accompanying notes are an integral part of the half-yearly report.
Balance sheet
Unaudited Unaudited Audited
As at 31 July 2023 As at 31 July 2022 As at 31 January 2023
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- -------- ----------- -------- ----------- --------- -------------
Fixed asset
investments 321,855 238,170 306,930
Current
assets:
Investments 3,766 20,800 3,970
Money market
funds 56,515 -- 40,360
Debtors 5,110 4,497 4,866
Cash at bank 6,082 43,210 14,251
-------------- -------- ----------- -------- ----------- --------- -------------
71,473 68,507 63,447
Creditors:
amounts
falling due
within one
year (7,809) (5,821) (20,884)
-------------- -------- ----------- -------- ----------- --------- -------------
Net current
assets 63,664 62,686 42,563
-------------- -------- ----------- -------- ----------- --------- -------------
Net assets 385,519 300,856 349,493
-------------- -------- ----------- -------- ----------- --------- -------------
Share capital 725 584 657
Share premium 117,977 38,711 78,440
Special
distributable
reserve 161,415 184,752 174,061
Capital
redemption
reserve 167 153 159
Capital
reserve
realised (17,618) (9,094) (20,136)
Capital
reserve
unrealised 126,608 87,915 119,032
Revenue
reserve (3,755) (2,165) (2,720)
Total equity
shareholders'
funds 385,519 300,856 349,493
-------------- -------- ----------- -------- ----------- --------- -------------
Net asset 53.1p 51.5p 53.2p
value per
share
-------------- -------- ----------- -------- ----------- --------- -------------
The statements were approved by the Directors and authorised for
issue on 12 October 2023 and are signed on their behalf by:
Murray Steele
Chair
Company Number: 05840377
Statement of changes in equity
Share
capital Share premium Special distributable reserves* Capital redemption reserve Capital reserve realised* Capital reserve unrealised Revenue reserve* Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- -------- ------------- ------------------------------- -------------------------- ------------------------- -------------------------- ---------------- --------
As at 1
February
2023 657 78,440 174,061 159 (20,136) 119,032 (2,720) 349,493
-------------- -------- ------------- ------------------------------- -------------------------- ------------------------- -------------------------- ---------------- --------
Total
comprehensive
income for
the period -- -- -- -- (4,856) 14,950 (1,035) 9,059
Contributions
by and
distributions
to owners:
Repurchase and
cancellation
of own
shares (8) -- (3,907) 8 -- -- -- (3,907)
Issue of
shares 76 41,858 -- -- -- -- -- 41,934
Share issue
cost -- (2,321) -- -- -- -- -- (2,321)
Dividends paid -- -- (8,739) -- -- -- -- (8,739)
-------------- -------- ------------- ------------------------------- -------------------------- ------------------------- -------------------------- ---------------- --------
Total
contributions
by and
distributions
to owners 68 39,537 (12,646) 8 -- -- -- 26,967
-------------- -------- ------------- ------------------------------- -------------------------- ------------------------- -------------------------- ---------------- --------
Other
movements:
Prior period
fixed asset
gains now
realised -- -- -- -- 7,374 (7,374) -- --
Total other
movements -- -- -- -- 7,374 (7,374) -- --
-------------- -------- ------------- ------------------------------- -------------------------- ------------------------- -------------------------- ---------------- --------
As at 31 July
2023 725 117,977 161,415 167 (17,618) 126,608 (3,755) 385,519
-------------- -------- ------------- ------------------------------- -------------------------- ------------------------- -------------------------- ---------------- --------
*Included in these reserves is an amount of GBP140,042,000
(2022: GBP173,493,000) which is considered distributable to
shareholders per the Companies Act.
Share
capital Share premium Special distributable reserves Capital redemption reserve Capital reserve realised Capital reserve unrealised Revenue reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ -------- ------------- ------------------------------ -------------------------- ------------------------ -------------------------- --------------- --------
As at 1 February 2022 52,365 81,600 58,918 8,441 (5,197) 68,079 (1,247) 262,959
------------------------ -------- ------------- ------------------------------ -------------------------- ------------------------ -------------------------- --------------- --------
Total comprehensive
income for the period -- -- -- -- (5,417) 21,356 (918) 15,021
Contributions by and
distributions to
owners:
Repurchase and
cancellation of own
shares (11) -- (5,081) 11 -- -- -- (5,081)
Issue of shares 72 36,741 -- -- -- -- -- 36,813
Share issue cost -- (2,085) -- -- -- -- -- (2,085)
Dividends paid -- -- (6,771) -- -- -- -- (6,771)
------------------------ -------- ------------- ------------------------------ -------------------------- ------------------------ -------------------------- --------------- --------
Total contributions by
and distributions to
owners 61 34,656 (11,852) 11 -- -- -- 22,876
------------------------ -------- ------------- ------------------------------ -------------------------- ------------------------ -------------------------- --------------- --------
Other movements:
Prior period fixed asset
gains now realised -- -- -- -- 1,520 (1,520) -- --
Cancellation of share
premium -- (77,545) 77,545 -- -- -- -- --
Cancellation of capital
redemption reserve -- -- 8,299 (8,299) -- -- -- --
Share capital nominal
value reduction (51,842) -- 51,842 -- -- -- -- --
------------------------ -------- ------------- ------------------------------ -------------------------- ------------------------ -------------------------- --------------- --------
Total other movements (51,842) (77,545) 137,686 (8,299) 1,520 (1,520) -- --
------------------------ -------- ------------- ------------------------------ -------------------------- ------------------------ -------------------------- --------------- --------
As at 31 July 2022 584 38,711 184,752 153 (9,094) 87,915 (2,165) 300,856
------------------------ -------- ------------- ------------------------------ -------------------------- ------------------------ -------------------------- --------------- --------
Share capital Share premium Special distributable reserves Capital redemption reserve Capital reserve realised Capital reserve unrealised Revenue reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- ------------- ------------- ------------------------------ -------------------------- ------------------------ -------------------------- --------------- --------
As at 1 February 2022 52,365 81,600 58,918 8,441 (5,197) 68,079 (1,247) 262,959
---------------------- ------------- ------------- ------------------------------ -------------------------- ------------------------ -------------------------- --------------- --------
Total comprehensive
income for the year -- -- -- -- (12,976) 49,121 (1,604) 34,541
Contributions by and
distributions to
owners:
Repurchase and
cancellation of own
shares (17) -- (8,220) 17 -- -- -- (8,220)
Issue of shares 151 78,876 -- -- -- -- -- 79,027
Share issue cost -- (4,491) -- -- -- -- -- (4,491)
Dividends paid -- -- (14,323) -- -- -- -- (14,323)
---------------------- ------------- ------------- ------------------------------ -------------------------- ------------------------ -------------------------- --------------- --------
Total contributions by
and distributions to
owners 134 74,385 (22,543) 17 -- -- -- 51,993
---------------------- ------------- ------------- ------------------------------ -------------------------- ------------------------ -------------------------- --------------- --------
Other movements:
Prior year fixed asset
losses now realised -- -- -- -- (1,963) 1,963 -- --
Cancellation of share
premium -- (77,545) 77,545 -- -- -- -- --
Cancellation of
capital redemption
reserve -- -- 8,299 (8,299) -- -- -- --
Share capital nominal
value reduction (51,842) -- 51,842 -- -- -- -- --
Transfer between
reserves -- -- -- -- -- (131) 131 --
Total other movements (51,842) (77,545) 137,686 (8,299) (1,963) 1,832 131 --
---------------------- ------------- ------------- ------------------------------ -------------------------- ------------------------ -------------------------- --------------- --------
As at 31 January 2023 657 78,440 174,061 159 (20,136) 119,032 (2,720) 349,493
---------------------- ------------- ------------- ------------------------------ -------------------------- ------------------------ -------------------------- --------------- --------
Cash flow statement
Unaudited Unaudited Audited
Six months to Six months to Year to
31 July 2023 31 July 2022 31 January 2023
GBP'000 GBP'000 GBP'000
---------------------------- -------------- -------------- ----------------
Cash flows from operating
activities
Profit after tax 9,059 15,021 34,541
Adjustments for:
Increase in debtors (244) (609) (977)
(Decrease)/increase in
creditors (6,869) (5,028) 776
Gain on disposal of fixed
assets (98) (406) (525)
Gain on revaluation of fixed
asset investments (15,155) (21,984) (49,921)
Loss on revaluation of
current asset investment 205 628 800
In-specie dividends -- (11) (11)
Net cash flows used in
operations (13,102) (12,389) (15,317)
Cash flows from investing
activities
Purchase of fixed asset
investments (14,417) (27,870) (69,393)
Transfer of current asset
investments -- -- 16,659
Proceeds from sale of fixed
asset investments 14,744 2,775 3,591
Net cash flows from/(used
in) investing activities 327 (25,095) (49,143)
Cash flows from financing
activities
Movement in applications
account (6,206) (514) 8,746
Purchase of own shares (3,907) (5,081) (8,220)
Proceeds from share issues 39,838 35,241 75,662
Cost of share issues (2,321) (2,085) (4,491)
Dividends paid (net of DRIS) (6,643) (5,199) (10,958)
---------------------------- -------------- -------------- ----------------
Net cash flows from
financing activities 20,761 22,362 60,739
Increase/(decrease) in cash
and cash equivalents 7,986 (15,122) (3,721)
Opening cash and cash
equivalents 54,611 58,332 58,332
Closing cash and cash
equivalents 62,597 43,210 54,611
---------------------------- -------------- -------------- ----------------
Notes to the financial statements
1. Basis of preparation
The unaudited half-yearly report which covers the six months to
31 July 2023 has been prepared in accordance with the Financial
Reporting Council's (FRC) Financial Reporting Standard 104 'Interim
Financial Reporting' (March 2018) and the Statement of Recommended
Practice for Investment Companies, re-issued by the Association of
Investment Companies in July 2022.
The Directors consider it appropriate to adopt the going concern
basis of accounting. The Directors have not identified any material
uncertainties to the Company's ability to continue to adopt the
going concern basis over a period of at least 12 months from the
date of approval of the financial statements. In reaching this
conclusion the Directors have taken into account the potential
impact on the economy including inflation, the possibility of a
recession and the war in Ukraine.
The principal accounting policies have remained unchanged from
those set out in the Company's 2023 Annual Report and Accounts.
2. Publication of non-statutory accounts
The unaudited half-yearly report for the six months ended 31
July 2023 does not constitute Statutory Accounts within the meaning
of s.415 of the Companies Act 2006. The comparative figures for the
year ended 31 January 2023 have been extracted from the audited
financial statements for that year, which have been delivered to
the Registrar of Companies. The independent auditor's report on
those financial statements, in accordance with chapter 3 of part 16
of the Companies Act 2006, was unqualified. This half-yearly report
has not been reviewed by the Company's auditor.
3. Earnings per share
The earnings per share is based on 675,679,749 shares, being the
weighted average number of shares in issue during the period (31
January 2023: 572,765,083; 31 July 2022: 537,701,683).
There are no potentially dilutive capital instruments in issue
and, therefore, no diluted earnings per share figures are relevant.
The basic and diluted earnings per share are identical.
4. Net asset value per share
31 July 2023 31 July 2022 31 January 2023
------------------------------ ------------ ------------ ---------------
Net assets (GBP) 385,519,000 300,856,000 349,493,000
Shares in Issue 725,536,421 584,144,114 657,239,253
------------------------------ ------------ ------------ ---------------
Net asset value per share (p) 53.1 51.5 53.2
5. Dividends
The interim dividend of 1.4p per share will be paid on 14
December 2023 to shareholders on the register on 24 November
2023.
6. Principal risks and uncertainties
The principal risks and uncertainties faced by the Company are
described in detail within the strategic report in the Company's
Annual Report and Accounts for the year ended 31 January 2023.
The principal risks include investment performance risk, VCT
qualifying status risk, operational risk, information security
risk, economic risk, legislative risk, liquidity risk and valuation
risk. The Board has also considered emerging and increasing risks,
including adverse changes in global macroeconomic environment,
rising cost of living, geopolitical tensions and climate change,
which the Board seeks to mitigate by setting policy and reviewing
performance. The Company's principal risks and uncertainties have
not changed materially since the date of that report.
7. Transactions with Investment Manager
Octopus acts as the Investment Manager of the Company. Under the
management agreement, the Investment Manager receives a fee,
payable quarterly in arrears, based on 2% of the NAV calculated
daily from 31 January for the investment management services.
The Company has incurred management fees of GBP3,510,000 during
the period to 31 July 2023 (31 July 2022: GBP2,639,000; 31 January
2023: GBP5,748,000). During the period the Company has also accrued
performance fees of GBP2,322,000 (31 July 2022: GBP3,855,000; 31
January 2023: GBP9,201,000).
The Investment Manager also provides accounting and
administration services to the Company, payable quarterly in
arrears, for a fee of 0.3% of the NAV calculated daily. In
addition, the Investment Manager also provides company secretarial
services for a fee of GBP20,000 per annum.
8. Related party transactions
In the period, Octopus Investments Nominees Limited (OINL)
purchased Apollo shares from shareholders to correct administrative
issues, on the understanding that shares will be sold back to the
Company in subsequent share buybacks at the prevailing market
price. As at 31 July 2023, OINL held 315 shares (31 July 2022: 381;
31 January 2023: 173,900) in the Company as beneficial owner.
Throughout the period to 31 July 2023 OINL purchased 315 shares (31
July 2022: 202,657; 31 January 2023: 189,525) at a cost of GBP163
(31 July 2022: GBP96,678; 31 January 2023: GBP90,589) and sold
173,900 shares (31 July 2022: 211,536; 31 January 2023: 16,006) for
proceeds of GBP87,993 (31 July 2022: GBP99,223; 31 January 2023:
GBP7,721). This is classed as a related party transaction as
Octopus, the Investment Manager, and OINL are part of the same
group of companies. Any such future transactions, where OINL takes
over the legal and beneficial ownership of Company shares will be
announced to the market and disclosed in annual and half-yearly
reports.
9. Post balance sheet events
The Company invested a total of GBP6.5 million in a new
investment and GBP1.5 million in two follow-on investments. On 25
September 2023 the Company cancelled its share premium amount of
GBP117,979,000.
10. Half Yearly Report
The unaudited half-yearly report for the six months ended 31
July 2022 will shortly be available to view on the Company's
website https://www.octopusinvestments.com
A copy of the half-yearly report will be submitted to the
National Storage Mechanism and will shortly be available for
inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
For further enquiries, please contact:
Rachel Peat
Octopus Company Secretarial Services Limited
Tel: +44 (0)80 0316 2067
LEI: 213800Y3XEIQ18DP3O53
(END) Dow Jones Newswires
October 13, 2023 02:00 ET (06:00 GMT)
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Octopus Apollo Vct (LSE:OAP3)
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