Half-year Report
Highlights
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·     £31.5 million raised in new equity during the period
·     One new investment added and a further three follow-on investments in the six months to 31 August 2024Â
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Introduction
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Your Board is pleased to present the half-yearly report for Puma VCT 13 plc ("the Company") for the period to 31 August 2024. 
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Fundraising
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We are pleased to report that the Company's 2023/24 share offer raised ÂŁ46 million. Of this, ÂŁ31.5 million was raised during the period.
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Following the period-end, shareholder approval was received to allow the VCT to raise further funds. This will put the VCT in a stronger position to exploit the investment environment, add further diversification, and spread fixed costs over a wider base. This VCT is now open for fundraising and the market reaction to date has been positive. 
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Investment activity
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Since the last Report and Accounts, the Company has made one new investment of ÂŁ4.7 million into Aveni, an AI tool which analyses speech to assist service providers, particularly in regulated industries such as financial services. The Company has also made three follow-on investments of ÂŁ5.2 million into Bikmo, a provider of cycle, triathlon and travel insurance, ÂŁ3.0 million into Le Col a performance cycling apparel company and ÂŁ1.5 million into Pockit, a digital account provider.
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Investment portfolio
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Within the portfolio, the Company's holdings in Pockit, Influencer and Ron Dorff have generated the largest positive valuation movements:
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·   Pockit has had a write up of £3.1 million after growing its revenues by successfully increasing its average revenue per customer.
·   Influencer has had a write-up of £1.7 million as a result of overseas expansion, in particular in the US which is growing at pace.
·    Ron Dorff has had a write-up of £1.3 million reflecting the valuation of a recently completed external fund-raising.
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Net Asset Value (NAV)
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The NAV per share at the period-end was 127.56p (Feb 2024: 124.48p). This figure reflects adjustments in the carrying value of the qualifying portfolio, movements in the value of the non-qualifying portfolio offset by the management fees and other expenses incurred in the period.Â
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Dividend
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I am pleased to remind you that your Board declared an interim dividend of 3p per share on 24th September 2024, reflecting the positive income and capital gains generated from the Company's non-qualifying portfolio. The dividend will be payable on or about 16 December 2024 to shareholders on the register as at 22 November 2024.
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VCT qualifying status
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Shoosmiths LLP ("Shoosmiths") provides the Board and the Investment Manager with advice on the ongoing compliance with HMRC rules and regulations concerning VCTs and has reported no issues in this regard for the Company to date. Shoosmiths and other specialist advisers will continue to assist the Investment Manager in establishing the status of potential investments as qualifying holdings. Shoosmiths will continue to monitor rule compliance and maintaining the qualifying status of the Company's holdings in the future.
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Outlook
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As we approach the end of 2024, the UK economy is navigating a landscape of modest growth. The economy is projected to grow by around 0.5% to 1.1% for the year, reflecting ongoing adjustments post-Brexit and the global economic environment. Looking ahead to 2025, consensus forecasts are for growth to strengthen a bit, reflecting increased Government investment and a less tight monetary squeeze.
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Inflation has been a key focus throughout 2024, with efforts to stabilise it around the Bank of England's target of 2%. By the end of the year, inflation is expected to be under control, allowing for a reduction in interest rates. These rates, which peaked at 5.25% saw a small further reduction this month. This reduction will be crucial for economic stability, easing borrowing costs for businesses and consumers alike.
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The job market has remained relatively stable, but challenges persist with productivity and the limited growth in the working-age population. To address these issues, the UK will need to continue focusing on increasing its capital stock and improving productivity. Investments in technology, infrastructure, and skills development will be essential to enhance workforce efficiency and output, setting the stage for more robust economic performance in 2025.
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The new Labour government has made economic growth a central part of its agenda, aiming for the highest sustained growth in the G7. Key initiatives include a commitment to an industrial strategy and leveraging advancements in technology and the transition to net zero. It hopes that these policies will create a more resilient and sustainable economy, capable of withstanding future shocks and fostering long-term prosperity.
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However, several risks could impact the UK's economic outlook. Global economic conditions, geopolitical tensions, and domestic policy changes remain significant uncertainties. These factors could influence consumer spending, investment, and overall economic stability.
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The Autumn Budget has introduced significant changes that will impact most sectors. The rise in employers' National Insurance contributions, coupled with a significant increase in the minimum wage, is expected to put pressure on businesses, particularly those in the service sector with large numbers of lower-waged staff such as pubs. This could lead to tighter profit margins and potential cost-cutting measures.
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SMEs are expected to play a crucial role in generating economic growth and innovation, particularly with the government's stated focus on fostering a supportive business environment. The outlook for investing in SMEs in the UK appears slightly more promising as we head into 2025, with the extension of the VCT scheme signalling the importance of continued support for these enterprises.
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Our VCT is strategically positioned to capitalise on these opportunities by investing in dynamic and high-potential new companies. By doing so, we aim to drive returns for our investors while supporting the growth and innovation of the UK's SME sector, ultimately contributing to a robust and resilient economy.
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David Buchler
Chairman
8th November 2024
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Investment Manager's Report
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Qualifying Investments
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In this section, we look at the following investments within our portfolio in more detail.
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Aveni
Aveni harnesses artificial intelligence and natural language processing (NLP) expertise to help financial services companies improve their productivity and risk oversight. Its two platforms, Aveni Assist and Aveni Detect, use NLP to record, transcribe and analyse conversations to deliver voice-driven automation and efficiency. Aveni had a strong trading period in the eight months leading up to 31 August 2024, securing a number of new client logos and building pipeline. It won Fintech of the Year at the Scottish Financial Technology awards which recognises the fintech which has achieved the most significant growth, development and commercial success.
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Bikmo
Bikmo is a specialist cycle and e-mobility insurer that protects over 75,000 riders in the UK, Ireland, Germany and Austria. Its focus over the past few months has been on putting the building blocks in place to accelerate growth over the next period, such as securing key partners and hires to capitalise on the market opportunity. Over the summer, Bikmo has secured several key partnerships with leading brands in the industry, including Trek, one of the largest bike brands globally; Cycling UK, the second-largest membership organisation in the UK, following British Cycling (who it already works with); and the Association of Cycle Traders, a dealer-focused sales agent covering 90% of the UK's market dealerships.
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CameraMatics
CameraMatics is an award-winning solution for fleet risk management. Its current focus is on scaling key markets by targeting larger enterprise fleets and increasing annual recurring revenue.
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The company has strengthened its executive team by hiring a new CFO and a Head of Operations, as it continues to scale. It has also secured major new clients, including Evri and XPO Logistics. Additionally, the company launched its Zero by CameraMatics product, a tool that enables businesses to measure and track emissions from their employees' and contractors' journeys. This positions CameraMatics uniquely in the market, with a holistic product suite which appeals to enterprise customers.
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Iris
IRIS is an audio specialist, which has developed an AI-powered software which removes distracting background noise from telephone calls, integrating seamlessly with existing call centre platforms. IRIS is committed to growing its revenue in the contact centre market, particularly through embedding its technology into existing software solutions. It is also exploring alternative use cases for the product across different sectors, such as mission-critical applications.
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IRIS recently announced an extension of its existing partnership with Sigma. After successfully improving call quality for Sigma's UK customers, IRIS Audio Technologies will be rolled out across Sigma's contact centres in South Africa.
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Le Col
Le Col is a high-performance cycling apparel business, selling its products online to cyclists across the world. The trading environment in this sector has recently been challenging and the company's current focus is to navigate this effectively.
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Le Col recently launched ARC, a new range specifically designed for gravel (off-road) riders. This range expands its product offering to customers, takes advantage of the growing interest in gravel riding, and allows it to reach new customer groups.
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Lucky Saint
Lucky Saint is the UK's number one dedicated alcohol-free beer brand, renowned for its premium lager available across grocery and on-trade sectors.
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Lucky Saint's focus is on solidifying its leading position in the market, while increasing overall market share across all channels. Puma is actively supporting the company to execute on its strategic goals.
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Pockit
Pockit provides pre-paid spending cards and current accounts primarily to customers from under-served communities. Pockit has recently launched a personal credit offering, and has brought in ClearScore and Credit Karma as new affiliate partners. Pockit's Fast Track to Credit plan is expected to be a valuable proposition for ClearScore and Credit Karma referrals, as these consumers are seeking to improve their credit scores, and Pockit's Credit Builder offering can assist with this.
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Ron Dorff
Ron Dorff is a premium menswear brand that currently operates in the US, UK and the EU, and has stores in all of these markets. Ron Dorff has recently partnered with sustainable trainer brand, Loci, and has further brand collaborations in the pipeline. Additionally, for the third successive year the brand launched a pop-up in Fire Island. Looking ahead, the brand is exploring strategic partnerships to capitalise on its strong position in the premium menswear category.
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Transreport
Transreport's flagship technology, the Passenger Assistance app, supports anyone who needs assistance while travelling, facilitating quicker and easier use of public transport. The company is focused on increasing its market penetration across new territories and into new markets. This includes expansion of its rail product, with a particular focus on securing additional train operating companies in Japan, as well as other global territories. In addition, the new aviation product is due to go live with its first deployment at East Midlands Airport in Q4 2024, alongside ongoing conversations with a number of additional airports and airlines.
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TravelLocal
TravelLocal, a leading online platform for tailor-made holidays, connecting clients directly with local experts in their planned holiday destinations. The company is focused on improved marketing, seeking more requests from potential customers and improving conversion rates.
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Prioritising the US market, TravelLocal is experiencing significant demand and growth, with the US now representing over 50% of trade and growing 34% year on year. Additionally, there is concentrated effort to boost sales from repeat customers and recommendations, as these channels clearly provide higher margins. Notably, the company's Net Promoter Score remains over 80, a positive indicator of the quality of its offerings.
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Liquidity management investments
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The rules for VCTs limit the income which can be received from bank deposits, making them an unattractive way of holding funds waiting to be invested. As a result, during a period where funds remain not yet deployed in qualifying investments in smaller companies, a VCT needs to hold other investments.
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The Company's liquidity management strategy focuses on short term bonds held through collective investment schemes. At the beginning of the year, the Company held ÂŁ24.8 million in the strategy, as at the period end, this increased to ÂŁ57.9 million after further investment of ÂŁ32.4 million and ÂŁ0.7 million of unrealised gains.
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Investment strategy
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We are pleased to have invested the Company's funds in a diverse range of businesses to date. With the re-opening of fund-raising, we hope to diversify the portfolio further over the coming months. We remain focused on generating strong returns for shareholders, while balancing these returns with maintaining an appropriate risk exposure. Overall, we remain confident that our portfolio is well positioned to deliver positive returns to shareholders.
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Puma Investment Management Limited
8th November 2024
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Income Statement (unaudited)
For the six months ended 31 August 2024
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Six months ended | Six months ended | Year ended | ||||||||
 | Note | Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total |
 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Gain/(loss) on fixed asset investments | - | 3,467 | 3,467 | - | (368) | (368) | - | (6,478) | (6,478) | |
Gain on current asset investments | - | 719 | 719 | - | - | - | - | 551 | 551 | |
Income | 1,165 | - | 1,165 | 148 | - | 148 | 857 | - | 857 | |
 | 1,165 | 4,186 | 5,351 | 148 | (368) | (220) | 857 | (5,927) | (5,070) | |
 |  |  |  |  | ||||||
Investment management fees | 4 | (364) | (1,093) | (1,457) | (278) | (836) | (1,114) | (572) | (1,715) | (2,287) |
Performance fees | 6 | - | - | - | - | - | - | - | - | - |
Other expenses | (480) | - | (480) | (382) | - | (382) | (740) | - | (740) | |
 | (844) | (1,093) | (1,937) | (660) | (836) | (1,496) | (1,312) | (1,715) | (3,027) | |
 |  |  |  |  | ||||||
Profit/(loss) before tax | Â | 321 | 3,093 | 3,414 | (512) | (1,204) | (1,716) | (455) | (7,642) | (8,097) |
Tax | - | - | - | - | - | - | - | - | - | |
Profit/(loss) after tax | Â | 321 | 3,093 | 3,414 | (512) | (1,204) | (1,716) | (455) | (7,642) | (8,097) |
Basic and diluted return/(loss) per Ordinary Share (pence) | 2 | 0.28p | 2.70p | 2.98p | (0.62p) | (1.45p) | (2.07p) | (0.53p) | (8.89p) | (9.42p) |
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All items in the above statement derive from continuing operations.  Â
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There are no gains or losses other than those disclosed in the Income Statement.Â
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The total column of this statement is the Statement of Total Comprehensive Income of the Company prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The supplementary revenue and capital columns are prepared in accordance with the Statement of Recommended Practice, Financial Statements of Investment Trust Companies and Venture Capital Trusts, issued by the Association of Investment Companies.Â
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There were no items of other comprehensive income during the period.
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Balance Sheet (unaudited)
As at 31 August 2024
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Note | As at | As at | As at | |
 | £'000 | £'000 | £'000 | |
Fixed assets | Â | |||
Investments | 7 | 88,866 | 70,803 | 78,497 |
Current assets | Â | |||
Cash | 6,277 | 41,390 | 15,289 | |
Applications cash | 2 | 82 | 6,756 | |
Investments | 57,883 | - | 24,799 | |
Debtors | 577 | 237 | 619 | |
64,739 | 41,709 | 47,463 | ||
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Current liabilities | Â | (676) | (628) | (7,414) |
Net current assets | Â | 64,063 | 41,081 | 40,049 |
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Net assets | Â | 152,929 | 111,884 | 118,546 |
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Capital and reserves | Â | |||
Called up share capital | 62 | 45 | 50 | |
Share premium account | 39,061 | 79,030 | 8,104 | |
Capital reserve - realised | (5,342) | (3,105) | (4,249) | |
Capital reserve - unrealised | 17,943 | 19,052 | 13,757 | |
Revenue reserve | (1,917) | 16,862 | (2,238) | |
Special distributable reserve | 103,122 | - | 103,122 | |
Total equity | Â | 152,929 | 111,884 | 118,546 |
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Net Asset Value per Ordinary Share | 3 | 127.56p | 131.18p | 124.48p |
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David Buchler
Chairman
8th November 2024
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Cash Flow Statement (unaudited)
For the six months ended 31 August 2024
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Six months ended | Six months ended | Year ended | |
 | £'000 | £'000 | £'000 |
 | |||
Reconciliation of profit/(loss) after tax | Â | ||
Profit/(loss) before tax | 3,414 | (1,716) | (8,097) |
(Gain)/loss on fixed asset investments | (3,467) | 368 | 6,478 |
Gain on current asset investments | (719) | - | (551) |
Decrease/(increase) in debtors | 42 | 18 | (364) |
Increase/(decrease) in creditors | 16 | (774) | (662) |
Outflow from operating activities | (714) | (2,104) | (3,196) |
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Cash flow from investing activities | Â | ||
Purchase of fixed asset investments | (6,903) | (12,627) | (27,631) |
Purchase of current asset investments | (32,364) | - | (24,249) |
Proceeds from disposal of investments | - | - | 1,201 |
Outflow from investing activities | (39,267) | (12,627) | (50,679) |
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Cash flow from financing activities | Â | ||
Proceeds received from issue of ordinary share capital | 31,480 | 22,261 | 36,322 |
Expense paid for issue of share capital | (511) | (429) | (591) |
Movement in applications account | (6,754) | (6,199) | 475 |
Shares cancelled in the year | - | - | (856) |
Inflow from financing activities | 24,215 | 15,633 | 35,350 |
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Net (decrease)/increase in cash and cash equivalents | (15,766) | 902 | (18,525) |
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Cash and cash equivalents at the beginning of the period | 22,045 | 40,570 | 40,570 |
Cash and cash equivalents at the end of the period | 6,279 | 41,472 | 22,045 |
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Cash and cash equivalents comprise | Â | ||
Cash at bank | 6,277 | 41,390 | 15,289 |
Applications cash | 2 | 82 | 6,756 |
Cash and cash equivalents at the end of the year | 6,279 | 41,472 | 22,045 |
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Statement of Changes in Equity (unaudited)
For the six months ended 31 August 2024
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Called up share capital | Share premium account | Capital reserve - realised | Capital reserve - unrealised | Revenue reserve | Special distributable reserve | Total | |
 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
 | |||||||
Balance as at 1 March 2023 | 36 | 57,207 | (2,269) | 19,420 | 17,374 | - | 91,768 |
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Comprehensive income for the period | Â | ||||||
Loss after tax | - | - | (836) | (368) | (512) | - | (1,716) |
Total comprehensive income for the period | - | - | (836) | (368) | (512) | - | (1,716) |
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Transactions with owners, recognised directly in equity | Â | ||||||
Share issues | 9 | 22,252 | - | - | - | - | 22,261 |
Share issue costs | - | (429) | - | - | - | (429) | |
Total transactions with owners, recognised directly in equity | 9 | 21,823 | - | - | - | - | 21,832 |
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Balance as at 31 August 2023 | 45 | 79,030 | (3,105) | 19,052 | 16,862 | - | 111,884 |
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Comprehensive income for the period | Â | ||||||
(Loss)/profit after tax | - | - | (1,124) | (5,315) | 58 | - | (6,381) |
Total comprehensive income for the period | - | - | (1,124) | (5,315) | 58 | - | (6,381) |
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Transactions with owners, recognised directly in equity | Â | ||||||
Share issues | 5 | 14,056 | - | - | - | - | 14,061 |
Share issue costs | - | (162) | - | - | - | - | (162) |
Cancellation of share premium | - | (84,820) | - | - | - | 84,820 | - |
Repurchase of own shares | (856) | (856) | |||||
Total transactions with owners, recognised directly in equity | 5 | (70,926) | - | - | - | 83,964 | 13,043 |
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Other movements | Â | ||||||
Prior year fixed asset gains now realised | - | - | (20) | 20 | - | - | - |
Re-classification to Special distributable reserve | - | - | - | - | (19,158) | 19,158 | - |
Total other movements | - | - | (20) | 20 | (19,158) | 19,158 | - |
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Balance as at 29 February 2024 | 50 | 8,104 | (4,249) | 13,757 | (2,238) | 103,122 | 118,546 |
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Comprehensive income for the period | Â | ||||||
(Loss)/profit after tax | - | - | (1,093) | 4,186 | 321 | - | 3,414 |
Total comprehensive income for the period | - | - | (1,093) | 4,186 | 321 | - | 3,414 |
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Transactions with owners, recognised directly in equity | Â | ||||||
Share issues | 12 | 31,468 | - | - | - | - | 31,480 |
Share issue costs | - | (511) | - | - | - | - | (511) |
Total transactions with owners, recognised directly in equity | 12 | 30,957 | - | - | - | - | 30,969 |
 |  | ||||||
Balance as at 31 August 2024 | 62 | 39,061 | (5,342) | 17,943 | (1,917) | 103,122 | 152,929 |
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Notes to the Interim Report
For the six months ended 31 August 2024
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1.            Accounting policies
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The financial statements have been prepared under the historical cost convention, modified to include the revaluation of fixed asset investments, and in accordance with applicable Accounting Standards and with the Statement of Recommended Practice, Financial Statements of Investment Trust Companies and Venture Capital Trusts ("SORP") and in accordance with the Financial Reporting Standard 102 ("FRS102").
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2.            Return per Ordinary Share
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The total return per share of 2.98p is based on the profit for the period of ÂŁ3,414,000 and the weighted average number of shares in issue for the period ended 31 August 2024 of 114,627,087.
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3.            Net Asset Value per share
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As at | As at | As at | |
Net assets | 152,929,000 | 111,884,000 | 118,546,000 |
Shares in issue | 119,889,133 | 85,291,146 | 95,234,828 |
Net Asset Value per share | Â | ||
Basic | 127.56p | 131.18p | 124.48p |
Diluted | 127.56p | 131.18p | 124.48p |
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4.            Investment management fees
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The Company pays the Investment Manager an annual management fee of 2% of the Company's net assets. The fee is payable quarterly in arrears. The annual management fee is allocated 75% to capital and 25% to revenue.
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5.            Financial information provided
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The financial information for the period ended 31 August 2024 has not been audited and does not comprise full financial statements within the meaning of Section 423 of the Companies Act 2006. The interim financial statements have been prepared on the same basis as will be used to prepare the annual financial statements.
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6.            Management performance incentive arrangement
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The amount of the Performance Incentive Fee (PIF) is equal to 20% of the amount by which the Performance Value per Share at the end of an accounting period exceeds the High Water Mark (being the higher of 110p and the highest Performance Value per Share at the end of any previous accounting period), multiplied by the number of relevant Ordinary Shares in issue at the end of the relevant period.
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The accrued profit and loss expense for the period in relation to this agreement is ÂŁnil.
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7.            Investment portfolio summary
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Valuation | Cost | Gain/(loss) | Valuation as a % of Net Assets | Multiple | |
As at 31 August 2024 | ÂŁ'000 | ÂŁ'000 | ÂŁ'000 | Â | |
Qualifying investments | Â | ||||
ABW Group Limited ('Ostmodern') | - | 1,292 | (1,292) | 0% | 0.00 |
Aveni Limited | 4,716 | 4,716 | - | 3% | 1.00 |
Bikmo Limited | 2,031 | 2,031 | - | 1% | 1.00 |
Deazy Limited | 2,900 | 2,900 | - | 2% | 1.00 |
Dymag Group Limited | - | 5,787 | (5,787) | 0% | 0.00 |
Everpress Limited | 2,748 | 3,514 | (766) | 2% | 0.78 |
Forde Resolution Company Limited ('HR Duo') | 2,937 | 2,238 | 699 | 2% | 1.31 |
Hot Copper Pub Company Limited | 468 | 847 | (379) | 0% | 0.55 |
Influencer Limited | 12,955 | 1,800 | 11,155 | 8% | 7.20 |
Iris Audio Technologies Limited | 9,955 | 5,400 | 4,555 | 7% | 1.84 |
Le Col Holdings Limited | 7,866 | 8,699 | (833) | 5% | 0.90 |
MyKindaCrowd Limited ('Connectr') | 4,887 | 5,915 | (1,028) | 3% | 0.83 |
MySafeDrive Limited ('CameraMatics') | 7,149 | 3,882 | 3,267 | 5% | 1.84 |
Muso Limited | 3,968 | 2,361 | 1,607 | 3% | 1.68 |
Not Another Beer Co Limited ('Lucky Saint') | 3,289 | 3,289 | - | 2% | 1.00 |
NQOCD Consulting Limited ('Ron Dorff') | 5,379 | 3,218 | 2,161 | 4% | 1.67 |
Open House London Limited | 1,974 | 1,800 | 174 | 1% | 1.10 |
Pockit Limited | 7,043 | 3,920 | 3,123 | 5% | 1.80 |
Thingtrax Limited | 750 | 750 | - | 0% | 1.00 |
Transreport Limited | 5,418 | 5,418 | - | 4% | 1.00 |
TravelLocal Limited | 2,433 | 2,433 | - | 2% | 1.00 |
Total qualifying investments | 88,866 | 72,210 | 16,656 | 58% | 1.23 |
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Balance of portfolio | 64,063 | 42% | |||
Net assets | 152,929 | Â | Â | 100% | Â |
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Of the investments held at 31 August 2024, all are incorporated in England and Wales, except for MySafeDrive Limited and Forde Resolution Company Limited, which are incorporated in Ireland.
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Copies of this Interim Statement will be made available on the website: https://www.pumainvestments.co.uk/resource-centre/literature
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