TIDMWWW
RNS Number : 1884U
SuperSeed Capital Limited
22 November 2023
SUPERSEED CAPITAL LIMITED
(the "Company")
Q3 2023 AND NINE MONTHSED 30 SEPTEMBER 2023 RESULTS
Two successful exits in Q3 2023 delivered distributions of
GBP486,301 - 23% of the fair value of investments.
These two exits delivered a combined IRR exceeding 78%.
SuperSeed Capital Limited, a company established as a venture
capital fund of funds for early-stage AI/SaaS companies, announces
results for Q3 and the nine months ending 30 September 2023. The
Company invests in technology-led innovation, primarily through
funds managed by SuperSeed Ventures LLP (the "Investment Manager").
The Company's principal investment to date is in SuperSeed II LP
(the "Fund").
Financial Highlights for Q3 2023:
-- NAV per share is flat in Q3. YTD it has grown by 15% YTD to reach GBP1.12p.
-- IRR on portfolio investments since IPO is at 30%.
-- The Company received net cash of GBP 435,238 from investments in Q3.
Portfolio and Investment Highlights:
-- The Fund successfully sold its positions in Techsembly and
Garvis, with both transactions closing in Q3. This led to
distributions to the Company of GBP486,301 and combined IRR on the
two investments exceeding 78%. The Company will utilise the
majority of these proceeds to make a prepayment to the Fund in
respect of future capital commitments, in order to benefit from a
better rate of return on cash in the Fund than can be obtained by
the Company.
-- Portfolio SAAS revenue growth continued in Q3 2023, although
at a slower pace than earlier in the year with revenue across the
portfolio of the Fund up by 9% over the previous quarter. This was
below expectations, and we expect quarter-on-quarter portfolio
revenue growth to increase back above 20% for Q4.
-- One new AI/SaaS companies added to the portfolio - Verisian,
a next-generation data analysis platform for clinical drug data.
One further investment was also agreed in Q3 and is expected to
close in Q4.
Outlook for Q4 2023:
-- Continued strong investment activity, with the Fund expecting
to make between two and four further investments in the AI/SaaS
space in Q4 2023.
Mads Jensen, Managing Partner of the Investment Manager,
commented:
"The Fund's underlying portfolio has continued to perform
strongly and is well-positioned for further growth in the remainder
of 2023. Due to the high quality of our portfolio we continue to
have strong M&A interest, recently evidenced by the exit of
Techsembly and Garvis less than a year from our investment."
For more information, please contact:
SuperSeed Capital Limited +44(0) 203 405 3060
Mads Jensen, Investment Manager
VSA Capital - AQSE Corporate Adviser and
Broker +44(0) 203 005 5000
Corporate Finance: Simon Barton / Alex Cabral
----------------------------------------------- --------------------
About SuperSeed Capital Limited
SuperSeed exists to back Europe's best B2B SaaS founders at the
earliest stages, and to help them build great companies. In the
short term, our portfolio companies enable their customers to drive
revenue growth and efficiency savings using next-generation
software and AI. In the long-term, they have an opportunity to
create category defining global technology companies. SuperSeed
focuses on the fundamentals by helping founders build good
companies with strong unit economics and sensible distribution
models.
Forward-looking statements
This announcement contains statements that are or may be
forward-looking statements. All statements other than statements of
historical facts included in this announcement may be
forward-looking statements, including statements that relate to the
Company's future prospects, developments and strategies. The
Company does not accept any responsibility for the accuracy or
completeness of any information reported by the press or other
media, nor the fairness or appropriateness of any forecasts, views
or opinions express by the press or other media regarding the
Group. The Company makes no representation as to the
appropriateness, accuracy, completeness or reliability of any such
information or publication.
Forward-looking statements are identified by their use of terms
and phrases such as "believe", "targets", "expects", "aim",
"anticipate", "projects", "would", "could", "envisage", "estimate",
"intend", "may", "plan", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. The forward-looking statements in this announcement
are based on current expectations and are subject to known and
unknown risks and uncertainties that could cause actual results,
performance and achievements to differ materially from any results,
performance or achievements expressed or implied by such
forward-looking statements. Factors that may cause actual results
to differ materially from those expressed or implied by such
forward looking statements include, but are not limited to, those
described in the Risk Management Framework section of the Company's
most recent Annual Report. These forward-looking statements are
based on numerous assumptions regarding the present and future
business strategies of the Group and the environment in which it is
and will operate in the future. All subsequent oral or written
forward-looking statements attributed to the Company or any persons
acting on its behalf are expressly qualified in their entirety by
the cautionary statement above. Each forward-looking statement
speaks only as at the date of this announcement. Except as required
by law, regulatory requirement, the Listing Rules and the
Disclosure Guidance and Transparency Rules, neither the Company nor
any other party intends to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise.
Investment Manager's Review
Q3 Investor Update:
Following a solid start to 2023, Q3 saw stock markets take a
pause. S&P500 topped on July 31st, and the bellwether index has
had a bumpy ride over the third quarter. After hitting a peak, it
fell about 10% until it started rallying again at the end of
October, bringing the index to within a few percentage points of
the 2023 high on November 17th.
The US Fed Funds rate has been flat since the middle of July, as
central bankers wait for the economy to digest rate rises. While
everyone has been awaiting the upcoming US recession over the
summer, signs are now that this recession might be averted. A
consensus is starting to form that the Fed might just manage to hit
the narrow landing strip between recession and renewed inflation.
The S&P500 has responded with a 10% bump since the end of
October.
The context is that the US economy has responded defiantly to
calls for recession, clocking up an impressive 4.9% annualised
growth in Q3. At the same time, US inflation is now down to 3.2%,
down from a high of 9.1% in June of 2022. US real estate debt still
looks a bit scary (especially on the commercial side), but there is
a distinct possibility that the economy could avert recession and
enjoy a soft landing. So far, so good.
At the same time, there is still plenty of geopolitical tension.
Biden generally had a positive summit with Xi Jinping (perhaps
marred by that last-minute "dictator" gaffe). But the US is still
working to decouple from China, and we've seen massive US
investments in manufacturing capacity for semiconductors, electric
vehicles and batteries. On top of that, the war in Ukraine remains
unresolved. And as we entered Q4, Hamas' dreadful October 7th
attacks on Israel have re-ignited a new vector for geopolitical
instability.
There is still plenty of uncertainty to go around.
Advances in AI:
Geopolitics aside, the AI revolution keeps accelerating. The
speed of improvement has been phenomenal, as has the impact we've
already seen across numerous sectors. At this point, there is no
doubt that we have a transformative new foundational technology on
our hands. The only questions now are how best to apply this for
good, while managing the potential bad. HM Government has tried to
be on the front foot with the recent AI Summit. We still have some
doubts as to whether the UK (or the US) government will be able to
effectively regulate AI without taking a sledgehammer to
innovation. Like everyone else, we are watching the rapidly
developing situation closely.
SuperSeed progress in Q3
New Investments:
Verisian - SaaS / Data and Analytics for Drug Testing and
approval
Developing and getting new drugs to market is a complicated
process. The clinical trial phase itself can take years. And once
results have been submitted for approval, it can take a further
6-10 months before the FDA gives the green light.
Due to the complexity of medical test data, pharma companies
spend a lot of resources creating the statistical analysis that
underpins the submission to the FDA. The analysis process is so
complicated that it can delay the FDA submission by six months -
even after all the clinical trials have been completed. And it
doesn't help that the majority of this work is done with SAS - a
statistics software package originating in the 1970s.
The business context is that the patent clock is ticking on new
drugs while the statisticians perform their analysis and create
their reports. Losing six months of a patent for a blockbuster drug
can mean a loss of billions of dollars in revenue.
Verisian founders Tomas Sabat and Henning Kuich know this
problem first-hand. Henning was previously a computational
scientist at pharma giant Bayer, where he saw directly how
inefficient the drug data analysis process is. And Thomas is a
world leader in next-generation databases who was previously in the
founding team at database company TypeDB.
Tomas and Henning have launched Verisian to create the
next-generation data analysis platform for clinical drug data. We
are excited for the impact they can have in helping pharma
companies get life-saving drugs to market faster.
Exits:
In Q2, SuperSeed had an opportunity to conclude the sale of two
of our positions by exiting Techsembly and Garvis.
Both companies had delivered solid commercial results over the
past year, and this led to M&A interest from US corporate
buyers. Following in-depth analysis and discussions at the board
level, a decision was made to sell in both instances, allowing
SuperSeed II to book a significant profit despite a short holding
period.
We typically look to hold for 5-7 years when we invest. While
these exits were slightly different to the default holding period,
they are testaments to the quality of the companies in the
portfolio. We wish both sets of founders the best possible success
in the years ahead.
Portfolio revenue:
Portfolio revenue growth slowed in Q3. Annually recurring
revenue was up 9% on the previous quarter (41% on an annualised
basis), somewhat lower than the 20-odd per cent we had
expected.
Some of this was down to macroeconomic factors and general
market slowdown. However, the issues were also partly executional
in nature, with deals slipping into Q4. As such, we expect a
bounce-back in Q4, with revenue growth back in the 20-odd
percentage range.
Outlook for the rest of 2023:
With a Q3 skewed towards exits (two companies sold and one new
investment made), we have a brimming investment pipeline for Q4. We
expect to make 2-4 new investments before the end of the year.
On a more general note, we keep being amazed by the incredible
work done by our portfolio teams and the new founders we meet. AI
is bringing so much opportunity to our industry. It is a great time
to be investing in technology.
Change of Auditor
The Company further announces that following a formal tender
process led by the Investment Manager, the Board has approved the
appointment of PKF Littlejohn LLP ("PKF") as the Company's auditor
for the financial year ending 31 December 2023 and thereafter.
Grant Thornton Limited ("Grant Thornton") has ceased to be the
Company's auditor for the reason that the Board had decided, in
conjunction with the Investment Manager to engage with PKF, who can
complete audit processes for both the Company and the Fund, to
avoid unnecessary duplication of audit works.
Grant Thornton was terminated as auditor with effect from 10
October 2023 and has confirmed to the Company that there are no
matters connected with its ceasing to hold office that need to be
brought to the attention of the members or creditors of the
Company.
The Board would like to thank Grant Thornton for its
professional and diligent service to the Company as auditor since
the Company's inception.
SuperSeed Capital Limited
Condensed Statement of Comprehensive Income
for the period 1 January 2023 to 30 September 2023
1 July 2023 1 April 1 January 1 January
2023 2023 2022
to to to to
30 September 30 June 30 September 30 September
2023 2023 2023 2022
GBP GBP GBP GBP
Income
Investment income - 696 1,024 204
Realised gain on investments
held at fair value through
profit or loss 188,903 - 221,955 -
Unrealised gain/(loss)
on investments held at
fair value through profit
or loss (161,071) 201,489 220,973 180,401
Other income 1,692 1 1,694 2,206
Total income 29,524 202,186 445,646 182,811
------------- -------- ------------- -------------
Expenses
Establishment costs - - - 153,028
Administration fees 7,613 7,613 22,837 19,932
Audit fees 5,798 5,734 17,203 15,707
Directors' fees 4,500 4,500 13,500 13,500
Legal & professional fees 11,724 16,142 40,049 28,333
Loan interest - - 134 -
Regulatory fees 3,322 3,836 12,509 10,599
Sundry expenses 279 295 1,277 1,151
Total expenses 33,236 38,120 107,509 242,250
------------- -------- ------------- -------------
Total gain/(loss) and
comprehensive income for
the period (3,712) 164,066 338,137 (59,439)
============= ======== ============= =============
Basic earnings per share (0.0016) 0.0692 0.1440 (0.0330)
Diluted earnings per
share (0.0015) 0.0628 0.1381 (0.0330)
Operating profit/(loss)
excluding establishment
costs for the period (3,712) 164,066 338,137 93,589
============= ======== ============= =============
Basic operating profit
excl. establishment costs
per share (0.0016) 0.0692 0.1440 0.0520
Diluted operating profit
excl. establishment costs
per share (0.0015) 0.0628 0.1381 0.0520
All the above items are derived from
continuing operations.
SuperSeed Capital Limited
Condensed Statement of Financial Position
as at 30 September 2023
30 September 30 June 2023 31 December
2023 2022
GBP GBP GBP
Non-current assets
Investments 2,144,932 2,542,337 1,799,616
Total non-current assets 2,144,932 2,542,337 1,799,616
------------- ------------- ------------
Current assets
Trade and other receivables 92,363 104,685 11,025
Cash and cash equivalents 432,261 20,546 235,089
Total current assets 524,624 125,231 246,114
------------- ------------- ------------
Total assets 2,669,556 2,667,568 2,045,730
============= ============= ============
Current liabilities
Trade and other payables 17,691 11,991 21,745
------------- ------------- ------------
Total current liabilities 17,691 11,991 21,745
------------- ------------- ------------
Total liabilities 17,691 11,991 21,745
============= ============= ============
Net assets 2,651,865 2,655,577 2,023,985
============= ============= ============
Equity
Share capital 2,369,743 2,369,743 2,080,000
Retained earnings 282,122 285,834 (56,015)
Total equity 2,651,865 2,655,577 2,023,985
------------- ------------- ------------
Net asset value per
ordinary share 1.1191 1.1206 0.9731
SuperSeed Capital Limited
Condensed Statement of Changes in Equity
for the period 1 January 2023 to 30 September 2023
Share Capital Retained Total
Earnings
GBP GBP GBP
Ordinary Shares issued on incorporation 1 - 1
Issue of Ordinary Shares 1,999,999 - 1,999,999
Total comprehensive loss for
the period - (102,481) (102,481)
Balance as at 30 September 2022 2,000,000 (102,481) 1,897,519
-------------- ---------- ----------
Share Capital Retained Total
Earnings
GBP GBP GBP
Balance as at 1 January 2023 2,080,000 (56,015) 2,023,985
Issue of Ordinary Shares 289,743 - 289,743
Total comprehensive profit for
the period - 338,137 338,137
Balance as at 30 September 2023 2,369,743 282,122 2,651,865
-------------- ---------- ----------
SuperSeed Capital Limited
Condensed Statement of Cash Flows
for the period 1 January 2023 to 30 September 2023
1 July 2023 1 January 1 January
2023 2022
to to to
30 September 30 September 30 September
2023 2023 2022
GBP GBP GBP
Cash flows used in operating
activities
Net cash flow used in operating
activities (23,523) (110,274) (272,130)
Cash flows used in investing
activities
Net cash flow used in investing
activities 435,238 307,580 (1,399,042)
Cash flows from financing
activities
Net cash flow from financing
activities - (134) 2,000,000
Net movement in cash and
cash equivalents during the
period 411,715 197,172 328,828
Cash and cash equivalents
at the beginning of the period 20,546 235,089 -
Cash and cash equivalents
at the end of the period 432,261 432,261 328,828
============= ============= =============
SuperSeed Capital Limited
Investment Analysis
for the period 1 January 2023 to 30 September 2023
30 September 31 December
2023 2022
GBP GBP
Cost 1,663,379 1,539,035
Cumulative movement in value 481,554 260,581
Fair value 2,144,932 1,799,616
============= ============
Investment fair value can be further
analysed as follows:
1 July 2023 1 January 6 October
2023 2021
to to to
30 September 30 September 31 December
2023 2023 2022
GBP GBP GBP
Cost
Cost at beginning of the period 1,899,714 1,539,035 -
Cost of investment - settled 61,063 727,643 1,539,035
Cost of investment - sold (297,398) (603,298) -
Total cost of investment 1,663,380 1,663,379 1,539,035
============= ============= ============
Fair value movement
Fair value adjustment at beginning
of the period 642,624 260,581 -
Revaluation of underlying
investments (161,071) 220,973 260,581
481,553 481,554 260,581
============= ============= ============
Fair value of investments 2,144,932 2,144,932 1,799,616
============= ============= ============
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
NEXKZMZMVMZGFZM
(END) Dow Jones Newswires
November 22, 2023 02:00 ET (07:00 GMT)
SuperSeed Capital (AQSE:WWW)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
SuperSeed Capital (AQSE:WWW)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024