Net Asset Value(s)
Net Asset Value(s)
Seneca Growth Capital VCT Plc (the “Company”)
12 October 2023
Net Asset Value (“NAV”) Update for the period ended 30 September 2023
The Directors and the Investment Manager of the Company, Seneca Partners Limited (“Seneca”), have reviewed the valuation of the Company’s investment portfolios as at 30 September 2023.
B share NAV
As at 30 September 2023, the unaudited B share NAV was 74.4p per share, a 7.2% increase from the previously published unaudited NAV as at 30 June 2023 of 69.4p.
The 5.0p increase in NAV per B share is predominantly a result of a net increase in the value of the B share pool’s AIM quoted investments, with the largest increase in value coming from the B share pool’s investment in Oxford Biodynamics Plc (“OBD”). The Company originally invested £700k in OBD in October 2022 and invested a further £421k in August 2023. OBD’s share price increased by 158% from 13.5p to 34.8p in the 3-month period to 30 September 2023 with Seneca also taking the opportunity to realise some profit selling 1,250,000 OBD shares generating proceeds of £431k and profit of £240k during the period.
The period also saw increases in the share prices of the B share pools AIM quoted investee companies Probiotix Health Plc and SkinBioTherapeutics Plc.
Seneca also successfully concluded the exit of the B share pool’s investment in Optibiotix Health Plc during the period by selling the remaining holding of 350,000 shares. In total, the Company generated sales proceeds of £378k and a profit of £115k on its investment in Optibiotix Health Plc.
In addition to the AIM quoted follow-on investment into OBD, noted above, the B share pool also completed two additional unquoted company follow-on investments in the 3-month period to 30 September 2023. The Company invested a further £85k into Alderley Lighthouse Labs (“ALL”) and a further £359k into Bright Network (UK) Limited (“Bright”). Accordingly, the carrying value of the B share pool’s investments in ALL and Bright have been brought in line with the valuation of these latest funding rounds, resulting in a modest increase in the overall value of the B share pool’s unquoted investment portfolio.
30 September 2023 Interim Financial Accounts
On 18 August 2023, the Company completed a capital reduction which produced an additional £15,729,185 of special distributable reserves. As part of this capital reduction process, the Company will file an additional set of interim financial accounts at Companies House for the nine months to 30 September 2023 which will reflect the additional distributable reserves created from the share premium and capital redemption reserve cancellation as well as the other events referenced in this quarter-end NAV update.
Post-period end events
The B share pool completed its fourth investment since 30 June 2023 on 6 October 2023, investing £696k into AIM quoted aerospace composites manufacturer Velocity Composites Plc.
In addition, OBD’s share price continued to rise following the period-end and Seneca decided to sell a further 950,000 of the B share pool’s holding at an average share price of 41p, generating profit of £247k and increasing the total weighted average return on sales to date to 2.5x over the average cost per share. The B share pool retains 5,127,628 shares in OBD and we remain confident of its long-term prospects of success.
Ordinary share NAV
As at 30 September 2023, the unaudited Ordinary share NAV was 25.8p per share.
This is a 12.7%, 2.9p, increase from the previously published unaudited NAV as at 30 June 2023 of 22.9p per Ordinary share and is principally due to the increase in the share price of AIM quoted Scancell Holdings Plc.
Scancell is the largest holding in the Ordinary share portfolio, representing 70% of the Ordinary share NAV as at 30 June 2023 and its shares increased in value by 27% in the 3 month period to 30 September 2023 rising from 13p to 16.5p per share. The period also however saw a decrease in the value of the Ordinary share pool’s investment in Arecor Therapeutics Plc, whose share price fell by 14% from 220p to 190p in the 3 months to 30 September 2023.
During the period unquoted investee companies Insense Limited and Microarray Limited, both of which were valued at £nil, received shareholder consent to wind the companies up and therefore the losses on these investments have been moved from unrealised losses to realised losses – which does not impact on the NAV per Ordinary share. The Directors have also reviewed the remaining unquoted investments held in the Ordinary share portfolio and concluded that no further changes were required to their carrying value.
No further investments or disposals have been made by the Ordinary share pool in the period since 30 June 2023.
For the purposes of calculating the unaudited net asset value per share for both share classes, quoted investments are valued in line with closing bid prices as at 30 September 2023 and unquoted investments are carried at fair value as at 30 September 2023.
The number of B shares in issue at 30 September 2023 was 20,817,717 and the number of Ordinary shares was 8,115,376. Therefore, the total number of voting rights in the Company is 28,933,093.
As referenced in the December 2022 Annual Report, the Company will be hosting a Q4 shareholder update presentation on Thursday 9 November 2023 at 11am. To join, please register by visiting: https://us06web.zoom.us/webinar/register/WN_rl6i6YnWT42dddYIGaPFRA
This announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation No 596/2014 which is part of English law by virtue of the European (Withdrawal) Act 2018, as amended. On publication of this announcement via a regulatory information service, this information is considered to be in the public domain.
The Offer by the Company remains open for the 2023/24 tax year until midday on 4 April 2024. To benefit from the Early Investment Incentive and Loyalty Investment Incentive discounts you must invest on or before 5.00 p.m. on 31 October 2023.
For further information, please contact:
John Hustler, Seneca Growth Capital VCT Plc at [email protected]
Richard Manley, Seneca Growth Capital VCT Plc at [email protected]
Any enquiries regarding the offer for subscription of B shares should be directed to:
Siobhan Pycroft at Seneca Partners Limited on 01942 295 981 or at [email protected]