Draper Esprit

LN: GROW

£1192.9m market cap

858p last close

Draper Esprit is a London-based venture capital firm that invests in the European technology sector. Draper Esprit has a portfolio of c 70 investee companies and includes a range of funds (seed, EIS and VCT) within the group, as well as its flagship balance sheet VC fund.

Investment summary

Draper Esprit is the leading listed VC in Europe, committing £120m of funding annually to European start-ups, with a proven track record (over 125 deals since 2006, US$13bn of exits) and a high-quality management team. Since 2016 Draper Esprit has been scaling its model, building the breadth and maturity of its underlying portfolio, with multiple core holdings ready to exit in 2021, market conditions permitting. Through a diversified investment holding company, Draper Esprit provides liquid exposure to a growing portfolio of Europe’s leading, high-growth tech start-ups, an investment class that is hard to access for the public market investor. In our view, Draper Esprit’s 15.1% FY16–20 NAV/share CAGR, together with the latent value in its portfolio, justify a premium rating.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2019A 120.8 N/A 114.3 118.35 7.2 N/A
2020A 52.0 N/A 41.4 34.51 24.9 N/A
2021E N/A N/A N/A N/A N/A N/A
2022E N/A N/A N/A N/A N/A N/A
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Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 26.6 34.1 53.2
Relative* 25.3 27.7 58.6
52-week high/low 858.0p/269.0p
*% relative to local index
Key management
Simon Cook CEO
Ben Wilkinson CFO