Investing In Ideas

A peek into Draper Esprit’s portfolio

Draper Esprit 1 April 2021 Update
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Draper Esprit

A peek into Draper Esprit’s portfolio

Investor day 2021

Listed venture capital

1 April 2021

Price

808p

Market cap

£1bn

Net cash (£m) at 30 September 2020

62.1

Shares in issue

139.0m

Free float

90%

Code

GROW

Primary exchange

AIM

Secondary exchange

Euronext Growth Dublin

Share price performance

%

1m

3m

12m

Abs

(4.7)

22.4

129.6

Rel (local)

(7.9)

17.4

86.2

52-week high/low

882p

320p

Business description

Draper Esprit is a London-based venture capital firm that invests in the European technology sector. It 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.

Next events

FY21 results

June 2021

Analysts

Richard Williamson

+44 (0)20 3077 5700

Dan Ridsdale

+44 (0)20 3077 5729

Draper Esprit is a research client of Edison Investment Research Limited

Draper Esprit is an active investor, providing venture and growth capital to Europe’s fast-growing technology businesses. It held its annual investor day on 25 February 2021, where it showcased a broad range of portfolio companies, from recent investments to some of its leading pre-IPO investee companies. Even before the Trustpilot and Cazoo IPOs (uplifts of c 60p and 20p per share respectively), Draper Esprit had reported c 70p per share of additional portfolio value uplift (Graphcore, UiPath) since its H121 results. However, FX headwinds (GBP strengthening against USD) and carry are expected to affect how this value uplift translates into NAV. Draper Esprit’s portfolio includes 67 companies, with 15 later-stage companies in the core portfolio (eg Trustpilot, UiPath, Cazoo, Revolut).

Period
end

plc cash*
(£m)

Gross portfolio value (£m)

NAV
(£m)

NAV/share
(p)

P/NAV
(x)

03/18

56.6

243.5

300.5

416

1.94

03/19

50.4

594.0

618.6

524

1.54

03/20

34.1

702.9

659.6

555

1.46

09/20**

62.1

702.4

714.7

600

1.35

Note: *Includes restricted cash but not funds held on behalf of EIS/VCT investors. **Interims.

A core portfolio with clear potential

Draper Esprit invests across the UK and Europe, with investments in four broad technology sectors: consumer, enterprise, hardware and deeptech, and digital health and wellness. The group takes minority stakes in c 15–30 companies a year at Series A+ and has built a portfolio of 67 companies, with 15 core holdings representing 62% of portfolio value. Recent exits include Peak Games, PodPoint and TransferWise, yet the portfolio still includes a range of late-stage companies, with the potential to deliver material rises in NAV (eg Trustpilot, UiPath, Cazoo). Draper Esprit’s core portfolio, as a whole, achieves 65% average gross margins.

Proven exit track record, recycling 10–15% cash pa

Early-stage investment requires specialist expertise and Draper Esprit’s investment team has proved it can successfully identify, invest in and exit leading European technology companies. It has now invested in 26 funds as part of its fund-of-funds strategy, with core geographies including the UK, DACH, Nordics, France, Ireland and Spain. As at H121, the group had deployed c £450m in capital since IPO, with over £230m into new investments, £100m into follow-ons and £114m in secondaries (ie the fund-of-fund strategy). Draper Esprit aims to return 10–15% per year in cash across the cycle. Since IPO, it has achieved a weighted average of more than 10% annually, and closer to 19% as a simple average.

Valuation: 15%+ annual NAV/share growth since IPO

Investors increasingly recognise that Draper Esprit warrants a premium as a rapidly scaling leader in the technology sector, which has delivered a 15.1% FY16–20 NAV/share CAGR, with a promising portfolio of investments and a growing fund-management business. As such, the company trades at 1.35x historical NAV (H121: 600p). Catalysts for a re-rating include further scaling of the business, a main market listing, growth in third-party fee income and successful exits and IPOs.

Draper Esprit investor day, 25 February 2021

Disclaimer: Notes of event

The analyst took away these notes from Draper Esprit’s investor day without access to a recording of the event or access to specific investor materials for the individual companies. As such, although Draper Esprit’s management has reviewed the report for material error, the notes and any figures are not always verifiable and are subject to potential error.

Introduction from Martin Davis, CEO

The Investor Day commenced with an introduction from Martin Davis, providing an overview of Draper Esprit and a context for the portfolio company presentations to follow.

Exhibit 1: Martin Davis, CEO Draper Esprit

Source: Draper Esprit

In terms of the portfolio companies themselves, the day included presentations from a sample of companies from both the core portfolio (15 companies at H121, 62% of gross portfolio value) as well as the emerging portfolio (52 companies at H121, 38% of gross portfolio value). We set out below our key take-aways from each of these presentations.

Exhibit 2: H121 fair value breakdown

Exhibit 3: H121 core portfolio fair value

Source: Draper Esprit

Source: Draper Esprit

Exhibit 2: H121 fair value breakdown

Source: Draper Esprit

Exhibit 3: H121 core portfolio fair value

Source: Draper Esprit

Aircall: A cloud-based call centre system (core portfolio)

Presenter: Oliver Pailhès, CEO of Aircall

At H121 Draper Esprit had invested £10.7m in Aircall, with a £23.3m valuation based on the last investment round, representing 2.2x NAV/cash.

Aircall is a cloud-based call centre system, with offices in Paris, Spain and New York. Customers choose Aircall for its ease of use, its connectivity and its productivity improvements, with connectivity built in from the outset allowing Aircall to connect to any in-house CRM system via standard APIs.

The company has also built a rich partner-ecosystem, with over 100 integrated partners.

Aircall launched in Paris in 2014. The company now has over 400 employees, with over 7,000 customers (growing at 50% pa) who have made more than 500m calls.

In 2020, ARR grew by 65% (actual revenues not disclosed), driven by new sales from homeworking despite slower sales from SMEs (in 2020, 10% of revenues came from travel firms, which evaporated overnight). The company started a reseller strategy with a partnership with Verizon, expanding Aircall’s footprint in the US, launched in Q420. Aircall also opened its Sydney office for APAC.

In 2021, Aircall is targeting 70% growth in ARR, with a channel strategy focused on telcos, agents and resellers. Management is also looking to continue to deepen Aircall’s defensive moat, by extending Aircall’s marketplace partnerships (100 in 2020, doubling each year) and further enhancing the solution’s interoperability.

The company raised US$65m in a Series C funding round in May 2020, led by DTCP with new investors Swisscom and Adam Street investing alongside existing shareholders including eFounders, Draper Esprit, Balderton Capital and NextWorld.

Graphcore: Fabless semiconductor company (core portfolio)

Presenter: Nigel Toon, CEO of Graphcore

At H121 Draper Esprit had £13.7m invested in Graphcore, with an £80.5m valuation based on the last investment round, representing 5.9x NAV/cash.

Graphcore is a machine intelligence semiconductor company that develops intelligent processing units (IPUs) that enable unprecedented levels of compute. In July 2020 it launched a new chip, the GC200, and a new IPU Machine that runs on that chip, the M2000, which Graphcore says is the first AI computer to achieve a petaflop (1,000 teraflops, or 1015 floating-point operations per second) of processing power ‘in the size of a pizza box’.

Developers have been telling computers what to do for 75 years, now computers are being trained to learn from data through machine learning, a fundamental shift in approach. Graphcore is building new processors from the ground up specifically to serve this data-driven, machine-learning market.

Graphcore’s core product is the IPU, a flexible, parallel processor designed from the ground up for machine intelligence workloads. The IPU delivers a much more efficient compute on sparse data, helping create new types of complex models that deliver cutting-edge performance with fewer parameters, faster training times and using less energy. The complex model/sparse-data IPU segment is expected to represent USS$6bn of a total US$23bn addressable market by 2025.

Graphcore is not looking to just sell chips, but also a blade comprising over 1,000 processors, providing massively scalable IPU pods for use in data centres. Each of these Colossus Mk 2 GC200 IPU blades incorporates 59.4bn transistors, together with its own software environment.

Graphcore raised US$222m of funding earlier this year (it has now raised c US$750m in total), with investors including Atomico, Baillie Gifford, Fidelity, Sequoia, BMW, Bosch, Dell and Samsung amongst others. Of the total US$750m raised, U$300m has been invested to date, with the remaining US$450m being held in cash.

The company has 450 employees, with all of its engineers based in the UK, in Bristol, Cambridge and London. It also has an office in Oslo. The proceeds from the latest funding round have been used to fund a new sales office in Singapore. The group is looking to grow to 600–650 staff by the end of 2021.

ICEYE: Radar imaging satellites (core portfolio)

Presenter: Rafal Modrzewski, CEO of ICEYE

At H121 Draper Esprit had £7.5m invested in ICEYE, with a £14.0m valuation based on the last investment round, representing 1.9x NAV/cash.

ICEYE is a commercial radar imaging satellite company that provides imaging services, designed to deliver frequent coverage around the clock, to provide a cost-effective, timely solution for clients in sectors such as maritime, disaster management, insurance and finance.

The company operates a fleet of synthetic aperture radar satellites (SARS), a unique radar-imaging (cloud-piercing) technology, with satellites with a launch mass below 100kg. ICEYE offers the largest SAR constellation of 10 satellites, providing access to timely and reliable satellite imagery for public and private sector. The 10-satellite constellation gives global coverage at least every two hours, with a total of 30,000 images analysed (night or day, cloudy or clear).

ICEYE is part of a broader trend of real-time world monitoring for the insurance, disasters, defence and intelligence, and maritime sectors offering a total addressable market for SARS of US$30–50bn.

ICEYE’s satellites can capture multiple targets, requiring 4x less satellite coverage than competitors to deliver the same number of images, according to the company. Tests with KSAT have shown that data can be downloaded and delivered to clients within as little as 15 minutes, for example, to indicate the extent of flooding for flood insurance claims in a flooded area. This is far more timely and cost effective than a manual review process.

The company is demonstrating its capabilities in different disasters, moving from floods to storm damage, wildfires and earthquakes.

In terms of revenues, the group recorded US$8m of bookings in 2019, with US$50m in 2020. The group is targeting US$400m in ARR by 2024.

Following Draper Esprit’s initial investment in May 2018, ICEYE raised an US$87m Series C in September 2020 and has raised total funding of US$152m.

Thought Machine: Core banking infrastructure (core portfolio)

Presenter: Paul Taylor, CEO of Thought Machine

As at H121 Draper Esprit had invested £16.5m in Thought Machine, with a £17.4m valuation based on the last investment round, representing 1.1x NAV/cash.

Thought Machine offers cloud-native core banking infrastructure to both incumbent and challenger banks, with a team of more than 400 people across offices in London and Singapore and sales offices in Australia and New York.

Its product offering is a digital vault solution and single platform, with integrated modules for providing digital banking products to established banks. This is a low-volume, high-margin solution with ARR c £0.5m per client. With the long duration and depth of its relationships, Thought Machine’s key customer contracts are in some ways closer to partnerships, with multi-year contracts (up to 15 years) and very low churn.

Lloyds is Thought Machine’s largest customer by far, but other clients include Standard Chartered, SEB, Atom Bank, Monese, Curve, ING, Mox and the National Bank of Canada.

Thought Machine completed a US$83m Series B funding round led by Draper Esprit in March 2020, with other investors including Lloyds Banking Group, IQ Capital, Backed and Playfair Capital. In July 2020 it extended the Series B round to US$125m; the US$42m extension was led by Eurazeo. British Patient Capital and SEB joined the round as new investors.

AGORA: Beauty influencer platform (emerging portfolio)

Presenter: Riccardo Basile, CEO of AGORA

AGORA is a mobile social commerce platform that allows users to share and monetise video content tagged to beauty products. With moderated community elements, it is also a comparatively safe space for discussing and trying make-up and beauty products.

AGORA has launched as a social platform (iOS only for now) but is building an e-commerce marketplace for the beauty industry to be launched in Q421, unlocking a trusted D2C channel.

The company has a team of 25 people, with the founders drawing on their experience at Lazada in SE Asia, a company backed by Rocket Internet and later bought by Alibaba in 2016 for over US$2bn.

Riccardo Basile claims the e-commerce marketplace for beauty products in Europe is not mature and will grow from US$5bn to US$20bn by 2025, with only 30% of millennials shopping for beauty products online in 2020, but expected to rise to 90% by 2025. Metrics are that 70% of AGORA’s community are generation Z, with 100,000 installs generating c 2m views, 70,000 videos uploaded and a 2.5x traffic increase between December 2020 and January 2021.

Draper Esprit led a £5m round in December 2020, with participation from Lakestar, Angel Capital Management and other investors.

CoachHub: Digital coaching platform (emerging portfolio)

Presenter: Matti Niebelschütz, CEO of CoachHub

CoachHub is a digital coaching platform attempting to widen the benefits of coaching. Identified employees from client companies sign up to the platform and an AI-based matching system recommends business coaches to meet employees’ individual requirements.

CoachHub secured US$30m in December 2020, led by new investor Draper Esprit (investment amount not disclosed), alongside existing investors HV Capital, Partech, Speedinvest, signals Venture Capital and RTP Global. This funding brings total funds raised to US$50m following a US$20m round in late 2019.

CoachHub was founded three years ago in August 2018, by two brothers looking to launch a business that could be productised, offering scalability, profit potential and positive social impact. CoachHub was the business they settled on, offering digital delivery of career development, career coaching and management training, with the effectiveness of the end result measured and quantified.

CoachHub is trying to democratise coaching beyond the C-suite for larger organisations, with a ‘land and expand’ strategy, starting with a small cohort of employees, then progressively rolling it out across programmes throughout the organisation.

Corporate training is a US$400bn global market, with the European digital coaching market forecast to grow 100x over the next 10 years to US$100bn (Gartner).

CoachHub is the European market leader (with the company claiming revenues of 10x all other players combined), with an expanding presence in North America, APAC and Middle East as the group targets global leadership. Q420 revenues grew five-fold year-on-year (sales not disclosed), with 65% gross profit margins. The company now employs 180 staff and has over 2,000 coaches on its books.

Clients include Danone, Amazon, Virgin Money, BNP Paribas, Soundcloud, Hello Fresh, Fujitsu, Schneider, SocGen, Daimler, Enel and Generali.

Endomag: Digital health and wellness (emerging portfolio)

Presenter: Dr Eric Mayes, CEO of Endomag

Endomag is a medical device company that aims to help surgeons identify cancerous tissue. This allows for non-invasive cancer diagnosis and treatment (via a probe and display unit), preventing unnecessary surgery and improving surgical outcomes.

Endomag’s Sentimag platform and its surgical markers, Magseed and Magtrace, allow for the accurate localisation of cancer, facilitating more accurate removal. They have been used in over 30,000 tissue localisations at more than 300 hospitals in over 40 countries worldwide. The process uses a magnetic marker (Magseed), which can be identified using the Sentimag localisation system, offering precise tumour localisation during surgery.

Due to the effects of COVID-19, 2020 was a difficult year to progress sales, meaning the company had to shift its strategy largely online. It developed online sales and training support materials, opening up new markets (eg South America) that would not otherwise have been prioritised under a traditional sales model. The online channel fundamentally expands the company’s target market, opening up a worldwide customer base (eg Chile).

Magseed’s sales rose 58% in 2020, with Magtrace up 19%. The company has now deployed 588 Sentimags globally (up 30% y-o-y), of which 340 are in EMEA.

Endomag achieved steady revenue growth in 2020, with net revenues (post-channel revenues) of £9.8m (up 8%), largely from the sale of consumables in EMEA and North America. Gross revenues (sell-in) increased 25% to US$24.8m, of which 77% were from sales of consumables.

In terms of its outlook for 2021, Endomag is targeting revenue growth of 40%+, hoping to be in a position to restart direct sales in EMEA and is seeking an extension to its existing regulatory clearance for Magtrace from the US Food and Drug Administration.

Paragraf: Atom-layer thick graphene (emerging portfolio)

Presenter: Dr. Simon Thomas, CEO of Paragraf

Paragraf is developing atom-layer thick two-dimensional materials, starting with graphene, now that it has the technology to produce atom-layer thick materials on a large scale. Paragraf has 60 staff and its own ISO-accredited cleanroom facility.

Paragraf is specifically focused on electrical properties (as opposed to thermal and magnetic properties) and graphene has the potential to transform solid state technologies (US$1tn potential) for silicon and semiconductors.

By way of a broad development roadmap, in 2018/19, Paragraf conducted general R&D, with early commercialisation from 2019–22. Paragraf expects to start sensor development from 2021, leading to graphene-integrated silicon devices and then wafer-scale silicon processes by 2025. Paragraf has recently developed its first biosensor product and is looking to develop opto-electronic components for fibre networks over the year.

Specific opportunities for atom-layer thick graphene include engine control (testing with Rolls-Royce), vehicle electrification, medical diagnostics (proof of concept for single protein rapid diagnostics), aerospace and space.

The company raised a £16m Series A funding round in December 2019, with Draper Esprit investing £3.4m alongside Parkwalk, IQ Capital, Amadeus Capital and Cambridge Enterprise. Paragraf is raising funds, with a Series B funding round expected to be completed by Q321.

Riverlane: Quantum computing (emerging portfolio)

Presenter: Dr Steve Brierley, CEO of Riverlane

Draper Esprit invested in Riverlane’s US$20m Series A round in January 2021 (Draper investment stake not disclosed), alongside Cambridge Innovation Capital, Amadeus Capital Partners and the University of Cambridge. Riverlane plans to use the funds raised to build its Deltaflow operating system and expand its client base internationally to the US, Europe and beyond.

Riverlane is building the operating system (OS) software for quantum computers (Deltaflow), aiming to provide a universal operating system and to be the MS-DOS of quantum computing.

Use cases vary enormously, but drug discovery is one of the most attractive for quantum computing to model drug/protein interaction.

There are many different approaches to quantum computing, including ion-trap, silicon and super-conducting quantum computers. It takes up to six months to implement a quantum program and an OS aims to make quantum computing quicker, easier and more accessible. Riverlane’s Deltaflow.os is technology agnostic and scalable to allow for ever larger quantum computers.

Riverlane has already signed up 20% of world quantum hardware manufacturers including Arm, NPL, SEEQC and OQC (there are now c 30 quantum computing hardware companies, up from five in 2015). Riverlane wants its success to be judged by the number of manufacturers it succeeds in signing up, rather than revenues (at least in the short term).

Fund of funds perspectives

Exhibit 4: H121 fund of funds snapshot

Source: Draper Esprit

A journey into the sustainability space (fund of funds)

Presenter: Sofia Hmich, managing director of Future Positive Capital

Draper Esprit’s seed strategy provides horizon scanning and early access to emerging investment themes. Future Positive Capital is a seed fund in which Draper Esprit invested two years ago. It is an investor in sustainability, but takes a more ambitious, broader (and more commercial) view than some traditional investors, with US$26tn of new value to be created over the coming years.

Future Positive Capital targets companies with a social or environmental benefit, such as Meatable, NotCo (same sector as Beyond Meat). The tipping point was 2019 for this sector, which saw 2.4x growth in deal flow in Europe, with 5,000 companies defining themselves as part of the target sustainability, accessibility, frontier tech universe. Similarly, certified B-Corps numbers have risen from 2,500 in 2020 to more than 3,500 – these are businesses that balance purpose with profit. Examples of leading qualifying companies (these are not FPC investments) in their target remit include Beyond Meat, Benevolent.ai, Babylon Health, which all deliver a social and commercial dimension.

Future Positive Capital has a three-pillar investment strategy:

Accessibility: understanding the consumer proposition, what demographic is the company targeting?

Frontier tech: technology innovation is a core element of the investment thesis.

Sustainability: Future Positive Capital uses the project drawdown framework to assess its impact investing.

Future Positive Capital raised US$57m in 2019, with Draper Esprit investing (precise allocation not disclosed) alongside Vitruvian Partners, Bpifrance, Isomer Capital and the EIF. Future Positive Capital’s investment portfolio includes 10 investments.

The state of seed (fund of funds)

Presenters: Jonathan Sibilia, Draper Esprit

Carlos Eduardo Espinal, managing partner of Seedcamp

Fred Destin, founder of Stride VC

Draper Esprit launched its fund-of-funds strategy in 2017 to secure deal flow from leading entrepreneurs and businesses across Europe. This strategy allows Draper Esprit to benefit from funds that are focused on a single theme.

In terms of economics, Draper Esprit takes an average 5% stake in each fund, with funds typically taking a 10–50% stake in their portfolio companies. This means Draper Esprit has an average 0.5–1.0% indirect economic stake in each underlying company, with over 500 companies across the fund portfolios.

Seedcamp, which was founded by a collaboration of Europe’s leading Series A investors, invests in 100 companies per fund, as an accelerator, taking a typical stake of c 6–7%. It has launched its fifth fund, with a 400-strong portfolio today. Successful ‘unicorns’ have included Hopin, Revolut and UiPath.

By contrast, Stride positions itself as the ‘artisan of VC’, having raised £100m and invested in 22 companies, including Cazoo. Stride chooses to avoid MBA-led teams investing based on a thorough gap analysis, instead preferring to support more difficult entrepreneurs (‘those that thrive on chaos and make difficult/important decisions in conditions of uncertainty’), who are able to communicate their vision and bring a team in behind that vision.

The disruption caused by COVID-19 has provided a broad opportunity for start-ups. While established companies have struggled, entrepreneurs and SMEs thrive in uncertainty.

Increasingly, with greater competition and multiple funding options, VCs now need to be chosen by entrepreneurs, rather than being able to unilaterally choose their investments.

Exhibit 5: Financial summary

£'000

FY17

FY18

FY19

FY20

31-March

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Change in unrealised gains on investments

35,744

66,603

114,715

40,755

Fee income

1,673

7,163

6,101

11,255

Revenue

 

 

37,417

73,766

120,816

52,010

Cost of Sales

-

-

-

-

Gross Profit

37,417

73,766

120,816

52,010

Operating costs

(3,724)

(5,842)

(7,835)

(10,228)

Investment and acquisition costs

-

(424)

(207)

(239)

Normalised operating profit

 

 

33,585

67,397

112,672

41,441

Amortisation of acquired intangibles

-

-

-

-

Exceptionals

-

(229)

(34)

-

Share-based payments

(4,551)

(4,896)

(3,089)

(990)

Reported operating profit

29,034

62,272

109,549

40,451

Net Interest

-

112

120

(1,302)

One-off items (incl FX)

221

(1,530)

1,481

1,234

Profit Before Tax (norm)

 

 

33,806

65,979

114,273

41,373

Profit Before Tax (reported)

 

 

29,255

60,854

111,150

40,383

Reported tax

(438)

43

11

(17)

Profit After Tax (norm)

34,309

65,931

114,262

41,390

Profit After Tax (reported)

28,817

60,897

111,161

40,366

Minority interests

(330)

(3,131)

(582)

(659)

Discontinued operations

-

-

-

-

Net income (normalised)

33,979

62,800

113,680

40,731

Net income (reported)

28,487

57,766

110,579

39,707

Basic average number of shares outstanding (m)

32

65

96

118

EPS - basic normalised (p)

 

 

105.43

96.60

118.35

34.51

EPS - diluted normalised (p)

 

 

103.78

95.86

113.62

33.67

EPS - basic reported (p)

 

 

88.39

88.86

115.13

33.65

Dividend (p)

-

-

-

-

Revenue growth (%)

97.1

63.8

(57.0)

Gross Margin (%)

100.0

100.0

100.0

100.0

Normalised Operating Margin

89.8

91.4

93.3

79.7

BALANCE SHEET

Fixed Assets

 

 

116,716

242,629

572,658

669,379

Intangible Assets

10,335

10,232

10,130

10,028

Tangible Assets

152

229

209

1,760

Investments

105,971

231,910

562,061

657,333

Investments in Associates

258

258

258

258

Current Assets

 

 

25,419

61,481

51,498

41,857

Stocks

-

-

-

-

Debtors

527

4,840

1,140

7,719

Cash & equivalents

24,892

56,641

50,358

32,255

Restricted cash

-

-

-

1,883

Current Liabilities

 

 

(1,548)

(2,948)

(4,959)

(5,396)

Creditors

(1,548)

(2,948)

(4,959)

(5,038)

Tax and social security

-

-

-

-

Lease liabilities

-

-

-

(358)

Short term borrowings

-

-

-

-

Other (incl deferred consideration)

-

-

-

-

Long Term Liabilities

 

 

(716)

(651)

(631)

(46,222)

Long term borrowings

-

-

-

(44,636)

Lease liabilities

-

-

-

(975)

Other long term liabilities

(716)

(651)

(631)

(611)

Net Assets

 

 

139,871

300,511

618,566

659,618

Minority interests

104

2,792

234

-

Shareholders' equity

 

 

139,767

297,719

618,332

659,618

CASH FLOW

Op Cash Flow before WC and tax

33,712

67,557

112,835

41,961

Revaluation of investments held at fair value through P&L

(35,744)

(66,603)

(114,715)

(40,755)

Working capital

(42,306)

(62,249)

(212,927)

(61,750)

Exceptional & other

(438)

(74)

97

(17)

Tax

28

(107)

(32)

(3)

Net operating cash flow

 

 

(44,748)

(61,476)

(214,742)

(60,564)

Capex

(166)

(155)

(58)

-

Acquisitions/disposals

-

-

-

-

Net interest

-

112

120

289

Equity financing

69,665

95,198

207,616

581

Dividends

-

-

-

-

Other

-

(49)

-

(368)

Net Cash Flow

24,751

33,630

(7,064)

(60,062)

Opening net debt/(cash)

 

 

0

(24,892)

(56,641)

(50,358)

FX

221

(1,530)

1,481

1,234

Other non-cash movements

(80)

(351)

(700)

(3,911)

Closing net debt/(cash)

 

 

(24,892)

(56,641)

(50,358)

12,381

Closing net debt/ (cash) (inc restricted cash)

 

(24,892)

(56,641)

(50,358)

10,498

Source: Company accounts

General disclaimer and copyright

This report has been commissioned by Draper Esprit and prepared and issued by Edison, in consideration of a fee payable by Draper Esprit. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services. The research analyst primarily responsible for the preparation of this report personally holds an equity position in the company of less than 1%.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by Draper Esprit and prepared and issued by Edison, in consideration of a fee payable by Draper Esprit. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services. The research analyst primarily responsible for the preparation of this report personally holds an equity position in the company of less than 1%.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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