Braveheart reports increased activities and acquisitions
With its first acquisition WL Ventures adding 10 new companies to its portfolio and an announcement of a new £25m fund for commercialising IP from Edinburgh University, Braveheart is on a new footing. We look at its progress during the six months ended 30 September 2007.
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Together with its clients, Braveheart invested £1.2m in five technology businesses over the period. It has also agreed terms for a number of other investments which it expects to complete between now and the end of its fiscal year. Since the end of September it has completed a further two investments.
In June, one of their non-technology portfolio companies, Capital Pub Company plc, listed on AIM with a market capitalisation of £32m.
Total portfolio now extended to 31
Braveheart made its first acquisition on 4 April 2007, namely WL Ventures Ltd with its portfolio of ten investments; this company is now known as Caledonia Portfolio Realisations Ltd (CPR), an unlisted company based in Scotland and specialising in making investments in technology businesses.
From the date of acquisition, CPR has contributed £282,000 to the net profit of the group. The interim financial statements include the results of CPR from the date of acquisition. Braveheart has now integrated the CPR portfolio. As a result it has 31 companies in the portfolio and has therefore increased the resources allocated to portfolio monitoring.
During the period under review, it completed investments in five companies.
Largest fund for a Scottish University
In June, Braveheart announced a £25m fund dedicated to commercialising intellectual property developed within the University of Edinburgh. This is the largest such fund announced in Scotland to date, with a first closing of this fund expected in the middle of 2008.
Additionally, the first closing of the £12m Strathclyde Innovation Fund, which was announced in February 2007, is due before fiscal year end. Both funds, which will be managed by the Group, will have the first right of refusal to invest in intellectual property opportunities emanating from the respective universities, and are claimed to be unique in their approach.
Financial review
Revenue from investment management operations, including bank interest, was £451,000, an increase of 87 percent over the £241,000 in the same period last year. Of the £451k, finance revenue was £170k versus £24k for the same period and a total of £49k for the whole of the last financial year.
Unrealised profit on the revaluation of investments amounted to £185,000 compared with an unrealised loss of £42,000 in the same period last year.
There was no profit or loss from the disposal of investments, which compares with a profit of £12,000 in the corresponding period.
Operating profit before share-based payments was £167,000 compared with a loss of £130,000 in the same period last year. Pre-tax profit was £143,000 compared with a pre-tax loss of £130,000 (including IPO costs of £60,000 that could not be written off against the share premium account) in the corresponding period.
Investments at fair value through profit or loss jumped to £1,441k from £408k for the same period last year and £896k for the whole of last year.
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© Chilli Publishing Ltd 2007 |
10 DEC 2007 |
