Half-Yearly Results
Financial Summary
Six months to | Six months to | Year to | |
Net assets (£’000s) | 385,519 | 300,856 | 349,493 |
Profit after tax (£’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
Interim Management Report
Chair’s statement
I am pleased to present the half-yearly report for Apollo for the six months ended
In the six months to
New and follow-on investments and divestment activity in the period is detailed in the Investment Manager’s review.
On
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
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
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
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
VCT qualifying status
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
Chair
Investment Manager’s review
Performance
In the six months to
The value of the portfolio has increased by £15.2 million, excluding additions. The largest contributors were
Portfolio activity
During the period £3.9 million was invested into one new investment:
•
During the period £10.5 million was invested into six follow-on investments, the largest of which were:
• Synchtank £2.5 million – a cloud-based SaaS solution for managing digital entertainment assets, rights, metadata, and accounting of royalty payments; and
•
Since the reporting date, the Company has invested £6.5 million in a new investment and £1.5 million in two follow-on investments.
In March, we were pleased to exit the Company’s holding in
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
Investment portfolio
Top ten investments
Sub sector | Investment cost as at | Total movement in fair value since investment £’000 | Fair value as at | Movement in fair value in period £’000 | % equity held by Apollo | ||
Fixed asset investments | |||||||
Telecommunications | 17,490 | 18,770 | 36,260 | 2,183 | 8.5% | ||
HR and human capital | 10,500 | 12,248 | 22,748 | (118) | 31.9% | ||
Cybersecurity | 5,575 | 15,427 | 21,002 | 2,455 | 33.3% | ||
Life sciences | 3,800 | 14,436 | 18,236 | 4,081 | 52.0% | ||
Financial services | 6,000 | 9,000 | 15,000 | - | 6.2% | ||
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% | |
Community | 308 | 12,313 | 12,621 | 1,898 | 5.4% | ||
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
Chair
Income statement
Unaudited | Unaudited | Audited | |||||||
Six months to | Six months to | Year to | |||||||
Revenue £’000 | Capital £’000 | Total £’000 | Revenue £’000 | Capital £’000 | Total £’000 | Revenue £’000 | Capital £’000 | Total £’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
• 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 As at | Unaudited As at | Audited As at | ||||
£’000 | £’000 | £’000 | £’000 | £’000 | £’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 value per share | 53.1p | 51.5p | 53.2p |
The statements were approved by the Directors and authorised for issue on
Chair
Company Number: 05840377
Statement of changes in equity
Share capital £’000 | Share premium £’000 | Special distributable reserves* £’000 | Capital redemption reserve £’000 | Capital reserve realised* £’000 | Capital reserve unrealised £’000 | Revenue reserve* £’000 | Total £’000 | |
As at | 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 | 725 | 117,977 | 161,415 | 167 | (17,618) | 126,608 | (3,755) | 385,519 |
*Included in these reserves is an amount of £140,042,000 (2022: £173,493,000) which is considered distributable to shareholders per the Companies Act.
Share capital £’000 | Share premium £’000 | Special distributable reserves £’000 | Capital redemption reserve £’000 | Capital reserve realised £’000 | Capital reserve unrealised £’000 | Revenue reserve £’000 | Total £’000 | |
As at | 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 | 584 | 38,711 | 184,752 | 153 | (9,094) | 87,915 | (2,165) | 300,856 |
Share capital £’000 | Share premium £’000 | Special distributable reserves £’000 | Capital redemption reserve £’000 | Capital reserve realised £’000 | Capital reserve unrealised £’000 | Revenue reserve £’000 | Total £’000 | |
As at | 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 | 657 | 78,440 | 174,061 | 159 | (20,136) | 119,032 | (2,720) | 349,493 |
Cash flow statement
Unaudited Six months to £’000 | Unaudited Six months to £’000 | Audited Year to £’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
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
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
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 (
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
Net assets (£) | 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
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
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 £3,510,000 during the period to
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 £20,000 per annum.
8. Related party transactions
In the period,
9. Post balance sheet events
The Company invested a total of £6.5 million in a new investment and £1.5 million in two follow-on investments. On
10. Half Yearly Report
The unaudited half-yearly report for the six months ended
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
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