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Just under 50% by value of our venture capital portfolio at the year-end comprised investments in more mature businesses acquired under previous VCT rules. This portfolio produced three good investment exits during the period under review, contributing total disposal proceeds of £10.3 million and a realised gain of £3.4 million on original cost. We expect that the remaining mature investments will continue to provide an income yield and a series of profitable exits in the years to come, supporting the overall return of the company whilst the earlier-stage portfolio develops.
Share offers and liquidity
We launched a top-up offer of new ordinary shares in January 2019, to raise up to £6.6 million. Strong demand was experienced and the offer was fully subscribed by existing shareholders approximately one week after opening. In addition to the public offer, 1,602,296 shares were issued during the year via our dividend investment scheme for overall proceeds of £1.1 million. Around 20% of shares in issue are registered to participate in the dividend investment scheme.
In conjunction with NVM we have undertaken a strategic review of the unquoted portfolio, considering progress achieved to date and the likely further capital required to enable our investee companies to flourish. The exercise concluded with a review of the liquidity dynamics of the company over the coming years, both in light of the follow-on requirements and the strong pipeline of new investment opportunities that NVM has developed. As a result of the review, your directors intend to launch a share offer early in 2020 to raise up to £13.3 million.
Interest rates in the UK remain low and we are mindful of the potential drag on overall returns caused by holding significant levels of liquidity. We consider that this downside is a necessary feature of sustainable early stage investing, and is outweighed by the benefit of obtaining sufficient capital to execute our investment strategy in the coming years in order to drive long-term shareholder value. We seek to mitigate the cash drag by holding a portion of our liquid funds in readily realisable quoted investment funds, with a view to generating a higher return than by holding all liquid resources in cash deposits alone. NVM has agreed that the reduced management fee we pay on liquid assets in excess of a specified level will continue for at least another 12 months after the new shares are allotted. NVM has also continued to augment its resources, having hired five additional investment professionals during the year to join the VCT team.
Share buy-backs
We have maintained our policy of being willing to buy back the company’s shares in the market, when necessary in order to maintain liquidity, at a 5% discount to NAV. During the year ended 30 September 2019 a total of 4,907,101 shares were repurchased by the company for cancellation, representing 3.7% of the opening issued share capital.
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Most of the earlier stage businesses we are backing will require further capital in order to mature and we continue to channel an increasing proportion of our investment activity into follow-on funding rounds. In addition to the capital requirements of the existing portfolio, we have also reviewed the pipeline of new investments with NVM and expect that the volume of attractive investment opportunities will be sustained in the near term. Having carefully considered the current level of liquid resources available to the company and the potential investment demand in the coming years, the board proposes to launch a prospectus share offer in January 2020 in order to raise up to £13.3 million. If approved, it is intended that all shares to be issued under the offer will be allotted in the 2019-20 tax year.
Your directors are mindful of the potential drag on overall returns caused by holding liquidity and have weighed this cost against the benefit of securing sufficient funding to support our early stage investee companies to realise their potential. NVM has agreed that the reduced management fee we pay on liquid assets in excess of a specified level will continue for at least another 12 months after the new shares are allotted.
The company has maintained its policy of buying back its own shares in the market from time to time, at a discount of 5% to NAV. During the period, 1,527,000 shares were repurchased for cancellation, for a total consideration of £901,000.
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Share offers and liquidity
The board and NVM have undertaken a strategic review of the venture capital portfolio, assessing the progress of each investee company to date. The review considered the potential quantum and timing of capital required in each case to support further growth. We have concluded that there is a significant pipeline of attractive follow-on investment opportunities available to the company. NVM also reports a healthy flow of new businesses seeking capital to develop innovative products or services. In light of the expected strong investment rate in the coming years, your directors plan to launch a share offer in January 2020 to raise up to £13.3 million. If approved, it is intended that all shares to be issued under the offer will be allotted in the 2019-20 tax year.
Share buy-backs
We have maintained our policy of buying back our shares in the market, where necessary to maintain market liquidity, at a discount of 5% to NAV. During the period 1,218,000 shares, were re-purchased for cancellation at a total cost of £1,072,000.