Final Results for the Year Ended 31 December 2021
*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.*
25 March 2022
*Seneca Growth Capital VCT plc*
*Annual Report and Financial Statements*
*for the year ended 31 December 202**1*
*NAV Update*
*and*
*Notice of Annual General Meeting*
The Directors are pleased to announce the audited results of the Company for the year ended 31 December 2021. A copy of the Annual Report and Financial Statements will be made available to shareholders shortly, and extracts are now set out below.
The Company’s AGM will be held at 10:00 a.m. on Wednesday, 27 April 2022 at the Company’s registered address 9 The Parks, Haydock, WA12 0JQ. A copy of the Notice of AGM and Annual Report and Accounts will be available on the Company’s website: www.senecavct.co.uk
*Financial Headlines*
*B Shares*
*£5.7m* Amount raised during the year from the issue of B shares
*£4.5m* Amount invested during the year into seven new investee companies by B share pool
*109.1p* B share NAV plus cumulative dividends paid at 31 December 2021 (“Total Return”)
*100.1p* B share NAV at 31 December 2021
*3.0p* Interim dividends paid per B share during year
*Ordinary Shares*
*108.2p* Ordinary share NAV plus cumulative dividends paid at 31 December 2021 (“Total Return”)
*38.9p* Ordinary share NAV at 31 December 2021
*4.0p* Interim capital dividends paid per Ordinary share during year
*Financial Summary*
*Year to *
*31 December 2021*
*Ordinary share pool* * Year to *
* 31 December 2021*
* B share *
* pool* *Year to *
*31 December 2020*
*Ordinary share pool* *Year to *
*31 December 2020 *
*B share*
* pool*
Net assets (£’000s) *3,157* *14,606* *2,453* *8,317*
Return on ordinary activities after tax (£’000s) *1,029* *1,067* *1,045* *252*
Earnings per share (p) *12.**6* *8.9* *12.8* *3.5*
Net asset value per share (p) *38.9* *100.1* *30.2* *91.8*
Dividends paid since inception (p) *69.25* *9.00* *65.25* *6.00*
Total return (NAV plus cumulative dividends paid) (p) *108.15* *109.10* *95.45* *97.80*
*Financial Calendar*
The Company’s financial calendar is as follows:
*27 April 2022* Annual General Meeting will be held at 10.00 a.m. at 9 The Parks, Haydock, WA12 0JQ
*July 2022* Half-yearly results to 30 June 2022 published
*March 2023* Annual results for the year to 31 December 2022 announced and Annual Report and Financial Statements published
*For further information, please contact:*
John Hustler, Seneca Growth Capital VCT Plc at john.hustler@btconnect.com
Richard Manley, Seneca Growth Capital VCT Plc at Richard.Manley@senecapartners.co.uk
Please note: page references in the extracts below refer to the page numbers in the Annual Report and Financial Statements.
*Chairman’s Statement*
I am pleased to present the 2021 Annual Report on behalf of the Board to shareholders.
*Overview*
The last year saw difficult trading conditions continuing to challenge UK businesses as the government sought to combat new and existing strains of Covid-19. Despite those challenges, I am pleased to report that both share pools have performed very well. The Total Return (NAV per share plus cumulative dividends per share) for each share class increased during the year with the B share increasing by 11.6% to 109.1p (2020: 1.8% to 97.8p) and the Ordinary share increasing by 13.3% to 108.2p (2020: 15.5% to 95.5p). Indeed, since the start of the Covid-19 pandemic in March 2020, we are pleased to report that the B share pool has seen a 37% increase in the NAV (inclusive of dividends paid) from 79.5p to 109.1p at 31 December 2021.
I am also pleased to be able to report that Seneca continued the development of the B share pool during the year both in terms of fundraising and investment activity. In October 2021, the Company launched its fourth offer for B shares and has now raised £14.5 million following the recent allotment of £0.9 million of shares in December 2021. I would like to welcome all new shareholders and thank both existing and new shareholders for their support. The share offer will remain open until 26 October 2022 unless it reaches its total target of £20 million before then.
The Company made eight investments into seven new B share pool investee companies in the year in addition to achieving one full exit and three partial exits. As a result, the Company’s B share pool closed the year with sixteen investments valued at £8 million compared to ten investments valued at £4 million at 31 December 2020.
The Ordinary share pool made a partial realisation in the year from one of its two remaining AIM quoted investments. During the year, the Scancell share price remained generally up from the previous period close of 13.5p, ending the year at 19.5p as a result of positive progress made with various clinical trials. The Ordinary share pool was able to realise 1,000,000 shares at an average price of 21.7p per share during the year providing an average weighted return of 3.6x over original investment cost. Scancell accounts for 68% of the Ordinary share pool’s NAV at the year end.
Full details of the B share pool and Ordinary share pool portfolios are included in the Investment Manager’s Report on pages 14 to 33.
With 46% of the B share pool’s NAV as at 31 December 2021 represented by cash, the Company’s B share pool has ended the year well placed to take advantage of the growing number of AIM quoted and private company investment opportunities being reviewed by Seneca.
I have set out below the progress made by each of the Company’s share classes during the year.
*B Share Pool*
*B Shares - Results*
The key items to impact the NAV of the B share pool during the year were as follows:
· The full realisation of one B share pool unquoted investment generating a 1.8x return;
· The partial exit of three B share pool AIM quoted investments generating a weighted average return of 2.3x;
· An unrealised gain in investment values of £0.3 million in the period;
· Two dividends paid during the year totalling 3.0p per B share; and
· The Company’s running costs (capped at 3% of B share NAV).
The net result of the above was an overall increase in the Total Return per B share to 109.1p as at 31 December 2021 (2020: 97.8p). This represents a weighted average positive capital return of 10.6p per B share (2020: 5.7p) and a weighted average negative revenue return of 1.7p per B share (2020: negative 2.2p).
Whilst the negative revenue return of 1.7p per B share is principally a result of the impact of the Company’s running costs on the B share pool, shareholders will recall that the Company’s total running expenses are capped at 3% of the B share NAV. As a result, Seneca reduced its annual management fee for 2021 from £246k to £211k to ensure the Company’s annual running expenses stayed within this 3% limit. Since July 2021, the Company’s running costs are allocated pro-rata across both the B share pool and Ordinary share pool, capped at 3% of their respective NAVs.
The positive capital return of 10.6p per B share noted above was principally due to realisations made in the year, an overall increase in the carrying value of three of the B share pool’s unquoted investments and the net increase in the value of the AIM quoted portfolio, offset by a reduction in the carrying value of one of the B share pool’s unquoted company investments. Full details are disclosed in the Investment Manager’s Report on pages 14 to 33.
*B Shares - Investment Portfolio Review*
As at 31 December 2021, the B share portfolio comprised sixteen companies, nine of which are quoted on AIM, at a total net investment cost of £4,042k. As at 31 December 2021 the quoted portfolio was valued at £4,526k.
Throughout the period, the Company was able to make four full and partial exits from the B share pool at a weighted average return of 2.2x on original investment cost.
In February 2022, the Company made an additional investment of £500k into the IPO of Clean Power Hydrogen Plc (“CPH2”) from the B share pool, which was fully realised shortly thereafter for an average weighted return of 1.4x.
In March 2022, the Company made a further investment of £280k into the AIM quoted company Verici Dx Plc from the B share pool.
*B Shares – Update and Outlook *
Shareholders will be pleased to know the Board has declared an interim B share dividend of 1.5p per B share on 8 March 2022 to be paid on 20 May 2022 to shareholders on the B share register on 6 May 2022, with an ex-dividend date of 5 May 2022.
Notwithstanding the significant challenges faced by the UK economy since the onset of Covid-19 and the UK’s departure from the European Union, we are encouraged by the positive progress being made by the B share pool. Seneca continues to work closely with the investee companies in the B share portfolio and has seen the benefits of this work with the increase in the carrying values for three of the seven unquoted investee companies and remains confident that the portfolio retains its potential to provide attractive returns for B shareholders over the medium term.
The Board is pleased with the progress that Seneca has made since its appointment as Investment Manager in 2018, in terms of funds raised, new investments made and presence and reputation in the market, resulting in access to new quoted and unquoted opportunities and now, exits achieved.
Seneca expect to increase the funds raised under the current B share Offer and add new growth capital investments to the B share portfolio during the course of 2022 from, inter alia, the investments they currently have in the later stages of due diligence.
*Ordinary Share Pool*
*Ordinary Shares - Results*
The NAV per Ordinary share increased by 8.7p from 30.2p to 38.9p during the year and this was after the payment of the dividend per Ordinary share of 4.0p.
This increase was principally driven by the increase in value of the Ordinary share portfolio’s two AIM quoted investments during the year: Scancell and Arecor.
The quoted bid price of Scancell shares (the Ordinary share pool’s largest investment) increased from 13.5p to 19.5p during this period and so it was decided to harvest a modest portion of our shareholding. We now hold 11 million shares.
We were particularly encouraged that Arecor, a long-standing Ordinary share pool unquoted investee company, announced its intention to float on AIM in May 2021. We considered the terms of the fundraise to be attractive and in order to support the IPO the Ordinary share pool purchased a further 37,611 shares in Arecor at £2.26 per share. Following a share reorganisation prior to flotation, the Ordinary share pool’s existing shares were converted to 186,366 shares and the Ordinary share pool now holds a total of 223,977 shares in Arecor valued at £829k as at 31 December 2021 (compared to the original cost of £227k). We were pleased to be able to further support Arecor through investment in the B share portfolio.
As a result of the Scancell realisation noted above, your Board was very pleased to be able to pay a dividend of 4p per Ordinary share during the year with no material adverse impact on the Ordinary share pool’s NAV. The Total Return in relation to the Ordinary shares is now 108.2p comprising cumulative distributions of 69.25p per Ordinary share and a residual NAV per Ordinary share of 38.9p as at 31 December 2021.
As previously reported, the Board remains focused on identifying exit opportunities for the remainder of the Ordinary share pool investment portfolio. Realisations in the last four years have enabled the payment of a total of 45p per Ordinary share in dividends to Ordinary shareholders, representing 70.5% of the NAV per Ordinary share as at 31 December 2017 and we still retain net assets of 38.9p per Ordinary share as at 31 December 2021. Notwithstanding this success, we remain confident that, overall, there remains the opportunity to realise further value for Ordinary shareholders in due course (particularly in relation to our AIM holdings).
*Ordinary Shares - Investment Portfolio Review*
The remaining Ordinary share portfolio now comprises two AIM quoted holdings valued at £3.0 million, and five unquoted holdings – the carrying value of three of which have been maintained at zero with the combined carrying value of the other two being £238k, one of which has been reduced by £78k during the period.
Shareholders will note that the AIM quoted holdings represented 94% of the Ordinary share pool’s NAV at the year end, with Scancell comprising 68% and Arecor 26% of the Ordinary share pool NAV. As a result, the NAV per Ordinary share now fluctuates largely in line with the movement in the AIM quoted investments, particularly the Scancell share price. Whilst the Scancell share price showed volatility during 2021, it is not our policy to update the market following each of these fluctuations unless there are considered to be abnormal events (e.g. sale of a significant holding – see below). Your Board therefore recommends that shareholders or prospective shareholders keep both the Scancell and Arecor share prices under review and consider their impact on the Ordinary share NAV per share before taking any action in relation to an existing or prospective holding in the Company’s Ordinary shares.
Further details in relation to the Ordinary share pool’s investment portfolio are included in the Investment Manager’s Report on pages 27 to 33.
*Ordinary Shares – Update and Outlook*
As noted above, the Ordinary share pool’s NAV fluctuates largely in line with the movement in the AIM quoted investments and following the year end, there has been a sustained decrease in Scancell’s share price. The share price of Scancell decreased significantly from 19.5p at 31 December 2021 to 11.5p at 23 March 2022 (a decrease of 41%) and likewise Arecor’s share price decreased from 370p at 31 December 2021 to 350p at 23 March 2022 (a decrease of 5%). Given this downward trend since the year end, especially the percentage decrease in Scancell’s share price, the Ordinary share pool’s unaudited NAV is 29.2p per Ordinary share at 23 March 2022.
The Commercial Advisory Committee (“CAC”), which now consists of myself and Richard Roth, will continue to monitor the share price movement of its AIM quoted holdings and the commercial progress of its unquoted investments whilst continuing to seek to return to Ordinary shareholders over time the proceeds from any realisations in the form of dividends or by means of a return of capital.
In addition, the Ordinary share portfolio held £318k in cash as at 31 December 2021. This cash is available to make follow-on investments into existing Ordinary share portfolio companies where the Board believes this will protect the Ordinary share pool’s existing investment and/or improve the overall prospects of a timely exit from an investee company. Despite a couple of the Ordinary share pool unquoted portfolio companies seeking further funds during the year, we did not consider the terms attractive nor likely to improve the overall prospects for a timely realisation from the investee company and therefore no further Ordinary share pool investments were made apart from our investment in Arecor as previously referred to.
Ordinary shareholders will recall that, following the appointment of Seneca as Investment Manager in August 2018, the Ordinary share pool did not incur any running costs until July 2021. From July 2021, the Company’s running costs were to be shared between the Ordinary and B share pool pro-rata to their respective NAV subject to a 3% cost cap. Since July 2021, the Ordinary share pool’s proportion was £16k as at 31 December 2021.
*Fund Raising *
During the year the Company has allotted 5,525,711 B shares raising gross proceeds of £5,668k in the process.
*Annual General Meeting *
The Company’s AGM will be held at 10:00 a.m. on Wednesday, 27 April 2022 at the Company’s registered address 9 The Parks, Haydock, WA12 0JQ.
We welcome all shareholders who wish to attend the AGM this year in person and for those unable to attend, we will be hosting our bi-annual shareholder update presentation with a question and answer (Q&A) session to follow, starting at 2:00 p.m. on 19 April 2022. Shareholders should note that only the formal business set out in the notice of AGM will be considered at the AGM and we encourage shareholders to attend the presentation and ask questions prior to the AGM. Further details about the shareholder update presentation can be found on the Company’s website at https://senecavct.co.uk/april-2022-shareholder-presentation/.
We strongly encourage shareholders to vote on the matters of business through the completion of a proxy form, which can be submitted to the Company’s Registrar. Proxy forms should be completed and returned in accordance with the instructions thereon and the latest time for the receipt of proxy forms is 10:00 a.m. on 25 April 2022. Proxy votes can be also be submitted by CREST.
All resolutions will be decided by a poll and therefore it is essential that shareholders wishing to vote submit their proxy forms by 10:00 a.m. on 25 April 2022.
The Board has reviewed my performance and has asked me to continue as Chairman. A resolution for my re-election is included in the AGM Notice. Consideration has been given to my long tenure as Chairman and the Board has commenced the process for identifying my potential successor but has asked that I continue as Chairman until such a time as my successor has been identified and appointed.
Resolutions for the re-election of Alex Clarkson, Richard Manley and Richard Roth are also included in the AGM Notice. As part of the Board’s succession planning, we are in the process of seeking a further appointment to the Board.
The Notice of the AGM includes resolutions empowering the Directors to issue further B shares following the date of the AGM, which will primarily be used for the issue of B shares under a further Offer which we intend to launch for the 2022/2023 tax year. This requires authorisation for the Directors to be able to allot up to a further 35,000,000 B shares. Including these resolutions in the AGM business will avoid the Company having to produce and send out a separate circular to convene a separate general meeting.
A summary of the resolutions to be proposed by the Company at the AGM is included on pages 45.
*VCT Qualifying Status*
Shoosmiths LLP provides the Board with advice on the ongoing compliance with HMRC rules and regulations concerning VCTs; they have confirmed that the Company remains within all the appropriate VCT qualifying regulations as at 31 December 2021.
*Fund Administration *
Our administration is conducted by Seneca at the Company’s registered address. Neville Registrars Limited (“Neville”) continue to maintain the shareholder register. All information in respect of both share classes including Annual Reports and notices of meetings can be found on our website www.senecavct.co.uk. We would remind shareholders who have not opted for electronic communications that this is more efficient and ecologically friendly than receiving paper copies by post and therefore encourage you to contact Neville, whose details are on page 98, to advise them of your wish to switch to electronic communication.
*Auditor*
UHY Hacker Young LLP (“UHY”) has audited the Company’s annual results for the year ending 31 December 2021. UHY has indicated its intention to resign as auditors for the Company and will therefore not be recommended for re-appointment at this year’s AGM.
The reason for the resignation of UHY is as a result of a firm wide strategic review.
In the interest of good governance, the Company commenced a tender process in December 2021 and will consider the results of the tender in due course. Following the conclusion of the tender process, the Board will appoint a new external auditor which will then be proposed for reappointment at next year’s AGM through an Ordinary Resolution for shareholder approval.
*Future Prospects*
We are pleased with the progress of both the Ordinary and B share pools during the year.
We also note that Seneca has seen an increasing number of quoted and unquoted deals in Q1 2022, though the impact of macro-economic and geopolitical events continue to affect economic recovery post-Covid. However, the current tax year is likely to demonstrate record-breaking demand for VCTs as tax advantaged investment continues to play a key role in economic growth. With over £6.7 million of cash on the B share pool balance sheet at 31 December 2021, Seneca believes that it is very well placed to continue to support the existing B share investment portfolio as well as adding attractive new growth capital investments to the B share portfolio from the strong pipeline of opportunities presented to them. We therefore look forward to the continued development of the B share portfolio in due course.
Your Board continues to view the future of our Company with confidence.
John Hustler
Chairman
24 March 2022
*Investment Manager’s Report *
We are pleased to set out in this section further details in relation to the development of both the B and Ordinary share pools and their respective investee companies during 2021.
*The B Share Pool*
*Fundraising *
Our third B share offer concluded in September 2021, bringing total funds raised to £13.5 million, a £6.3 million increase in funds raised since the previous offer (an 86% increase in cumulative funds raised as at the close of the third offer). Our fund-raising efforts have since continued under our fourth B share Offer that was launched in October 2021, with a further £0.9 million being raised under this fourth Offer as at 31 December 2021. We are encouraged by the funds raised following the launch of the new Offer and remain focused on increasing the size of the B share pool, which will in turn allow us to increase the number and diversity of new investments that we make.
*Performance** and Dividends*
Despite some continuing economic uncertainty in the year resulting from the ongoing Covid-19 pandemic, we are pleased with the development of the B share portfolio, with seven additional investments being made in the year. We are also pleased to report an increase in the NAV Total Return per B share, from 97.8p at 31 December 2020 to 109.1p as at 31 December 2021. The B share pool has to date paid 9.0p per B share in dividends since inception and has seen a 37% increase in the NAV (inclusive of dividends paid) as at 31 December 2021 from the 30 March 2020 NAV of 79.5p per B share at the start of the Covid-19 pandemic.
This increase in NAV Total Return per B share was the result of an increase in both AIM quoted investment values and unquoted investment values, the impact of four full and partial realisations, offset by the Company’s running costs, although these costs are being shared across both share classes pro rata to their respective NAVs from July 2021.
The B share pool’s unquoted investee company ADC Biotechnology Limited was acquired in 2021 and the Company received £264k in proceeds, generating a profit versus original cost of £115k (a 1.8x return on original investment cost).
The two B share dividends paid during the year were in line with the Company’s ambition to continue to pay dividends on the B shares and it should be noted that the Company has sufficient distributable reserves to enable the continued declaration of B share dividends over the medium term subject to Board approval, the B share pool investment pipeline and liquidity levels.
*AIM Quoted Investments*
The AIM market continued to provide ample opportunity to both invest and de-risk existing holdings yielding attractive returns for investors. As such we took the opportunity to realise just over half of the B share pool’s original holding in SkinBioTherapeutics Plc (“SkinBio”) and just under half of the B share pool’s original holding in Gelion Plc (“Gelion”).
The Company sold 2,520,000 shares in SkinBio during the year, which represented 54% of the original holding of 4,677,107 shares, reducing the remaining holding to 1,982,107 shares. These were sold at a weighted average price of 44.7p per share providing a return of 2.8x on original cost.
In November 2021, the B share pool invested £631k into AIM quoted company Gelion at a price of 145.0p per share. In December 2021, the Company was able to realise 185,000 shares, which represented 42% of the original holding of 435,492 shares, reducing the remaining holding to 250,492 shares. These were sold at a weighted average price of 284.3p per share providing a return of 2.0x on original cost.
The Company also sold 78,000 shares in Abingdon Health Plc for a total of £76k at 98p per share generating a nominal profit.
We were also encouraged that during the year we saw an increase in high quality AIM investment opportunities resulting in six new AIM investments being added to the B share portfolio.
*Co-investing With Seneca EIS Funds *
More generally we continue to develop Seneca’s position in the market as an active growth capital investor and up to 31 December 2021, Seneca has raised and deployed more than £100 million of EIS and VCT capital into over 55 SME companies, through over 100 funding rounds, since we undertook our first EIS investment in 2012. This includes £8.1 million raised to date by the B share pool.
The sixteen investments in the B share portfolio had a value of £7,953k as at 31 December 2021 and all but two are co-investments with EIS funds also managed by Seneca. We believe that the opportunity for the Company’s B share pool to co-invest with EIS funds that are also managed by Seneca provides the B share pool with a number of advantages including being able to participate in a higher number of investments, of a larger scale, into more established businesses than would be possible for the B share pool on a standalone basis.
Further, as a result of our position in the UK market as an active growth capital investor we maintain a strong pipeline of investment opportunities, particularly in the North of England, with a focus on well managed businesses with strong leadership teams that can demonstrate established and proven concepts in addition to growth potential. We aim to invest in both unquoted and AIM/AQSE quoted companies and are pleased to have completed six additional AIM quoted investments in the year.
*Investee Company Updates*
We are very happy with the development of the B share investment portfolio. As noted above, we are delighted to have been able to include a healthy number of AIM quoted investments in the B share pool to date and are very happy that we have also started to establish a positive exit track record, having achieved an aggregate average return of 1.9x from the seven exits achieved to date. These early profits have supported the performance of the B share pool NAV at the same time as we continue to develop the unquoted company investment portfolio.
We are excited about the potential that lies with the B share investment portfolio and have included updates in relation to the top eight investments by value in the B share pool investee companies later in this Investment Manager’s Report. In particular we are pleased with the positive momentum being shown by Qudini Limited (“Qudini”) and Silkfred Limited (“Silkfred”) which have both seen impressive increases in demand for their products and services in the year, however we note that Ten80 Ltd has struggled to make the commercial traction anticipated and with the outcome of the continuing fundraise efforts of the company uncertain and some changes in the leadership of the business we have taken the decision to reduce the carrying value of this investment to zero.
*Investments made after the Year End and outlook*
Following the year end we also completed an additional investment of £500k into the IPO of Clean Power Hydrogen Plc (“CPH2”). CPH2 is a producer of green hydrogen electrolysers, a disruptive and unique technology that delivers high stack (assembly of fuel cells) efficiency at low cost and eliminates expensive/degradable membranes from the traditional hydrogen production process. The company raised £30.5 million at AIM admission, principally to fund capital investment in two production facilities, working capital and R&D activities. The revenue model will be dual-focus. In addition to selling units to Blue Chip customers the technology will also be licensed to key strategic partners.
Shortly after the IPO of CPH2, the share price increased by c.40%. In view of this increasing share price and the increased volatility of the AIM market following macroeconomic and geopolitical events in February 2022, the Company took the opportunity to realise a profit and sold the full holding in CPH2, realising £674k at an average share price of 60.6p per share, generating a profit versus original cost of £174k (a 1.35x return on the original investment).
In March 2022, the Company made a further investment of £280k into the AIM quoted company Verici Dx Plc from the B share pool.
Further, the Company sold 125k additional shares in SkinBio following the year end, realising £65k at an average share price of 51.6p per share, generating a profit versus original cost of £45k (a 3.2x return on the original investment). This reduced the remaining holding to 1,857,107 shares.
We look forward to continuing to increase the funds raised for the B share pool under the current Offer and with several new investment opportunities in the later stages of due diligence, we expect to add to the portfolio of B share investee companies in the coming months. We are very satisfied with the development of the B share pool to date and view the future of the B share pool with confidence.
*Investment Portfolio – B shares*
*Unquoted Investments* *Equity *
*held *
*%* *Investment at cost £'000* *Unrealised profit/(loss) £'000* *Carrying *
*value at *
*31 December 2021 *
*£'000* *Movement *
*in the year to *
*31 December 2021*
* £'000*
Solascure Ltd 3.2 750 333 1,083 333
Fabacus Holdings Limited 2.0 500 63 563 -
Silkfred Limited <1.0 500 - 500 -
Old St Labs Limited 3.5 500 - 500 -
Qudini Limited 2.4 500 - 500 200
Bright Network Ltd 1.7 234 47 281 47
Ten80 Ltd 7.5 400 (400) - (400)
*Total unquoted investments* *3,384* *43* *3,427* *180*
*Quoted Investments* *Shares held* *Investment at cost £'000* *Unrealised profit/(loss) £'000* *Carrying *
*value at *
*31 December 2021 £'000* *Movement*
* in the year to *
*31 December 2021 *
*£'000*
Polarean Imaging Plc 1,644,070 986 (82) 904 (82)
SkinBioTherapeutics Plc 1,982,107 317 496 813 377
Arecor Therapeutics Plc 188,053 425 271 696 271
Poolbeg Pharma Plc 7,550,000 755 (76) 679 (76)
Aptamer Group Plc 495,726 580 74 654 74
Gelion Plc 250,492 363 (13) 350 (13)
Evgen Pharma Plc 5,000,000 400 (150) 250 (150)
OptiBiotix plc 350,000 141 14 155 (45)
Abingdon Health plc 78,250 75 (50) 25 (48)
*Total quoted investments* *4,042* *484* *4,526* *308*
*Total investments* *7,426* *527* *7,953* *488*
*Exits for the period* *Investment Date* *No. of Shares sold* *Investment at cost £'000* *Sale Proceeds £’000* *Realised profit/(loss) £'000* *Exit Multiple*
Abingdon Health Plc* December 2020 78,000 75 76 2 1.0
ADC Biotechnology Ltd August 2020 150,000 150 265 117 1.8
SkinBioTherapeutics Plc* February 2019 2,520,000 403 1,125 722 2.8
Gelion Plc* November 2021 185,000 268 524 255 2.0
*Total* *896* *1,990* *1,096* *1.9*
^*Partial exit
*B Share Pool – Investment Portfolio*
Listed below are details of the Company’s eight largest B share pool investments by value as at 31 December 2021.
· *Solascure** Ltd*
*Initial investment date:* January 2021 Solascure is an early stage wound care specialist, originally spun out of and working alongside BRAIN (world leading German biotech company), to develop a new-to-market wound care product.
Solscure’s Aurase product is a gel-based product that efficiently and gently cleans wounds, making the healing process much more straightforward. Pre-clinical work has been extremely positive and the clinical trial is now underway.
Chronic wounds are a growing global problem, and alternative methods of treatment for hard to heal wounds are extremely expensive, ineffective, impractical and slow. Solascure’s proprietary technology utilises “maggot theory” debridement without the cost or labour input of live maggots. In simple terms, it uses maggot enzymes to facilitate and also promote the body’s own wound cleansing processes. Core benefits of the product are the clear practical elements, as well as the reduced time scale to full debridement without delaying wound healing.
*Progress made by the company in 2021 includes:*
· Obtaining full sign off of its clinical trial, with FDA approved protocol and first in-human studies commenced.
· Completing a £3.7m top-up funding round in November 2021 in order to fund adequate runway and additional headroom to complete the first stage trial and enter into any strategic discussions with the benefit of a strong cash balance.
The commercial strategy for Aurase remains unchanged, with the company aiming to disrupt a number of attractive segments of the chronic wounds market, worth c. $5bn globally. The market currently utilises a wide range of debridement techniques and products, with no clear, recognised leader. There has been minimal progress made in this space for many years and therefore we remain excited about the future prospects of the business should the trial go to plan.
*Cost:* £750,000
*Valuation:* £1.1 million
*Equity type:* Unquoted
*Equity held:* 3.2%
*Last statutory accounts:* 30 June 2020
*Turnover:* Not Disclosed
*Loss before tax:* Not Disclosed
*Net assets:* £6.2 million
*Valuation method:* Cost and price of recent investment (reviewed for any fair value adjustment)
· * Polarean Imaging Plc*
*Initial investment date:* March 2021 Polarean Imaging Plc (“Polarean”) is a healthcare technology company with a proprietary drug-device combination that provides a visual representation of ventilation and gas exchange in the lungs. This is achieved by the patient inhaling polarised Xenon-129 gas (a non-radioactive, noble gas) whilst having an MRI scan. Polarean technology is effectively an add-on feature for research and clinical medical environments using MRI scanners. There are an estimated 35,000 MRI scanners being used globally.
In March 2021, Polarean raised additional capital ahead of the final U.S. Food and Drug Administration’s (“FDA”) approval to position the business for commercial scale and as part of that £20m round, with up to £9m VCT/EIS qualifying, Seneca came in as a cornerstone investor with just under £1m invested through the VCT and a further £400k in EIS funds. Seneca had invested from its EIS funds in March 2020 to provide working capital support during the period from initial FDA submission in H2 2020 to anticipated clearance and through to commercial launch.
*Progress made by the company since March 2021 includes: *
· Seeking FDA approval for its drug-device, which has gained wider use and attention as a result of Covid-19 and its effects on the lungs as well as the impact of long-covid on lung function. The company announced in October 2021 that the FDA had been unable to approve the submission at the first time of asking, but that the issues were technical in nature, and management remain confident with regard to the safety and efficacy profile. As such, the company is in dialogue with the FDA with the aim of ensuring the resubmission process is as efficient as possible.
· Installation of its 9820 Xenon Polariser system at BC Children's Hospital, Vancouver BC, a major paediatric research and teaching hospital.
Since the year end, the company has also announced an order for a Xenon Polariser system from McMaster University in Ontario, Canada.
*Cost:* £986,000
*Valuation:* £904,000
*Equity type:* Quoted
*Equity held:* <1.0%
*Last statutory accounts:* 31 December 2020
*Turnover:* £1.1m
*Loss before tax:* £6.5 million
*Net assets:* £10.9 million
*Valuation method:* Bid price of 55p per share
· *SkinBioTherapeutics** Plc*
*Initial investment date:* February 2019 SkinBioTherapeutics is a life science company focused on skin health. The company's proprietary platform technology, SkinBiotix^TM, is based upon discoveries made by Dr. Cath O'Neill and Professor Andrew McBain.
SkinBioTherapeutics' platform applies research discoveries made on the activities of lysates derived from probiotic bacteria when applied to the skin. The company has shown that the SkinBiotix^TM platform can improve the barrier effect of skin models, protect skin models from infection and repair skin models. Proof of principle studies have shown that the SkinBiotix^TM platform has beneficial attributes applicable to each of these areas.
The aim of the company is to develop its SkinBiotix^TM technology into commercially successful products supported by a strong scientific evidence base. SkinBioTherapeutics’ commercial strategy is to engage health and wellbeing and/or pharmaceutical companies in early dialogue to build up relationships and maintain communication on technical progress until one or more commercial deals can be secured.
*Progress made by the company in 2021 includes: *
· Excellent development of the company’s Axisbiotix-Ps food supplement product, which has the potential to be a leading psoriasis treatment. The business reported impressive results and launched the product direct-to-consumers in Q4 2021 on World Psoriasis Day.
· Initiation of a research and development programme in oral health in conjunction with the University of Manchester. The oral health programme will explore the use of different bacteria, including SkinBioTherapeutics' proprietary lysate, SkinBiotix®, for oral health and well-being. The 12-month programme will develop and test formulations designed to support the health of skin surfaces in the oral cavity targeting disease prevention, oral care and hygiene.
· Progression of multiple new opportunities across its MediBiotix, CleanBiotix and PharmaBiotix divisions, including the development of eczema treatments as well as additional opportunities designed to reduce hospital acquired infections.
*Cost (of the portion of the original investment still held as at 31 December 2021):* £317,000
*Valuation:* £813,000
*Equity type:* Quoted
*Equity held:* 1.26%
*Last statutory accounts:* 30 June 2021
*Turnover:* Not Disclosed
*Loss before tax:* £1.6 million
*Net assets:* £2.8 million
*Valuation method:* Bid price of 41p per share
· *Arecor** Therapeutics Plc*
*Initial investment date:* May 2021 Arecor Therapeutics Plc (“Arecor”) was admitted to the AIM market on 3 June 2021 and raised £20 million at that point. Arecor was an existing investee company of the Ordinary share portfolio and the B share pool invested £425k in the IPO. The Ordinary share pool also supported the IPO with a further investment of £85k.
Arecor’s treatments for people living with chronic disease are designed to advance patient care and improve clinical outcomes. Its product portfolio for diabetes currently includes novel insulin formulations to deliver an ultra-rapid acting insulin (AT247), and an ultra-concentrated rapid acting insulin (AT278).
*Progress made by the company since May 2021 includes:*
· Successful IPO on AIM, raising £20 million.
· Positive results from Phase I clinical trial for AT278 demonstrating significantly early accelerated PK/PD profile compared to market leading comparator, NovoRapid®.
· Positive Phase I clinical data of AT247 presented at ATTD, the leading international diabetes conference.
· Received FDA clearance of IND application for AT247, paving the way for the US clinical trial.
· Signed five new partnership agreements with Eli Lilly and Company, Par Sterile Products and Intas Pharmaceuticals, a leading global medical products company and a global technology leader.
· Awarded £2.8 million Innovate UK grant to support Phase II development of AT247.
· European patent EP2457590 on polysaccharide vaccines was successfully upheld following opposition appeal from GlaxoSmithKline.
· Announced continued progress of its co-development of the ready-to-use injectable medicine AT282, the first of two co-development programmes with Hikma Pharmaceuticals.
*Cost:* £425,000
*Valuation:* £696,000
*Equity type:* Quoted
*Equity held:* <1.0%
*Last statutory accounts:* 31 December 2020
*Turnover:* Not Disclosed
*Loss before tax:* Not Disclosed
*Net assets:* £907,000
*Valuation method:* Bid price of 370p per share
· *Poolbeg** Pharma Plc*
*Initial investment date:* July 2021 Poolbeg Pharma Plc (“Poolbeg”) is a clinical-stage pharmaceutical company focused on the development and commercialisation of therapies to treat and prevent infectious diseases. The company has adopted a capital-light model which enables it to develop multiple products faster and more cost effectively than the traditional biotech model. Poolbeg aspires to become a “one-stop shop” for big pharma to find Phase II ready products for development and commercialisation.
The company’s lead asset is POLB 001, a first-in-class, Phase II ready drug with the potential to treat serious unmet needs in patients suffering from severe influenza.
The company was spun-out of Open Orphan plc, a former Seneca EIS portfolio company, so the Poolbeg management team is well-known to Seneca and has proven capabilities in identifying, acquiring and accelerating assets through development to commercialisation.
*Progress made by the company since July 2021 includes:*
· Continuing to broaden its portfolio of licenced assets with the addition of a first-in-class broad spectrum RNA-based immunotherapy for respiratory virus infections from the University of Warwick.
· Signing a licence agreement to develop an oral vaccine delivery platform and an option agreement to licence MelioVac, a preclinical vaccine for melioidosis, with University College Dublin ('UCD') and its inventor, Associate Professor Siobhán McClean, through NovaUCD, the university's knowledge transfer office. The company will continue its due diligence on MelioVac as well as 5 other potential vaccine candidates discovered by Associate Professor McClean and her team, for the duration of the option agreement, prior to signing a 'licence agreement'.
· Expanding its portfolio of assets, the company signed numerous agreements to help further develop POLB 001 and enable the company to commence the Phase Ib human challenge study of POLB 001 in June 2022, which will be a key step in the molecule's development.
*Cost:* £755,000
*Valuation:* £679,000
*Equity type:* Quoted
*Equity held:* 1.5%
*Last statutory accounts:* First accounts made up to 31 December 2021
due by 30 June 2022
*Turnover:* Not Disclosed
*Loss before tax:* Not Disclosed
*Net assets:* Not Disclosed
*Valuation method:* Bid price of 9p per share
· *Fabacus** Holdings Limited*
*Initial investment date:* February 2019 Fabacus is an independent software company that has developed a complete product lifecycle solution, Xelacore, aimed at bringing transparency to supply chain networks, with an initial focus on resolving the interaction and information flow between global licensors and their licensees.
Xelacore is a modular, Software as a Service solution with an intuitive interface and proprietary data aggregation and management engine that allows all stakeholders to operate on a single unified and collaborative platform. It bridges the gaps in an inefficient process within the current retail ecosystem by creating authenticated, enriched universal records that unlock opportunities, reduce risk and drive performance for both licensors and licensees.
*Progress made by the company in 2021 includes:*
· Commencing a £5m fundraise to continue to develop its Xelacore solution, with a big push to increase monthly recurring revenue.
· Continuing to onboard fee-paying licensees to their market leading data platform with high-profile partnerships and excellent progress with a number of customers, most notably through its promising relationship with Amazon.
*Cost:* £500,000
*Valuation:* £563,000
*Equity type:* Unquoted
*Equity held:* 2.0%
*Last statutory accounts:* 31 August 2020
*Turnover:* Not Disclosed
*Loss before tax:* Not Disclosed
*Net assets:* £8.6 million
*Valuation method:* Price of last fundraise
· *SilkFred** Limited*
*Initial investment date:* December 2018 SilkFred is an online marketplace for independent ladies’ fashion brands. The business was founded in 2011 with the aim of creating an efficient marketplace for emerging fashion designers to bring products to market and establish their brand in the sector. The business now works with c.900 independent brands, selling to over 800k customers per annum.
SilkFred acts as a central marketing and sales platform for these brands, charging commission in exchange for these services, and as a result the business itself takes minimal inventory / working capital risk on new brands, lines or products.
The business model revolves around a market leading and scalable customer service platform, and as such SilkFred is continually investing in core infrastructure and constantly seeking innovative methods to enhance the customer experience.
*Progress made by the company in 2021 includes:*
· An impressive recovery from the challenges posed to the retail sector by Covid-19. The company is now profitable and is once again trading in line with forecasted revenue growth.
· Continuing growth in international sales. It is clear that the international potential of the brand is a key driver of the future value in the business and it is therefore encouraging to see international sales continuing to grow.
· Attraction of ‘stock-lite’ business model reinforced by robust trading performance with an extremely flexible supply chain of c.900 independent brands and a very small proportion of stock carried in comparison to sales levels. The Covid-19 environment has already seen the loss or weakening of some significant competitors who are more exposed to the traditional ‘stock-heavy’ business model and high street presence.
*Cost:* £500,000
*Valuation:* £500,000
*Equity type:* Unquoted
*Equity held:* <1%
*Last statutory accounts:* 31 December 2020
*Turnover:* £17.3 million
*Loss before tax:* £2.3 million
*Net assets:* £2.5 million
*Valuation method: * Revenue multiple
· *Old St Labs Limited*
*Initial investment date:* March 2019 Old St Labs (“Vizibl”) is a provider of cloud based, supplier collaboration software solutions for large, blue chip customers, enabling them to manage key supplier relationships and strategic project work. The core product, Vizibl, seeks to make supplier collaboration much more straight forward, with key focus on compliance, savings / efficiency and driving growth across the business.
Vizibl taps into a growing trend in supplier collaboration, having moved on from the initial focus on compliance, to an increased emphasis on savings / efficiency, and recent developments highlighting the benefits in terms of wider growth strategy for large customers, including helping them promote their core ESG agenda items throughout their supply chain.
Vizibl provides the infrastructure, governance and reporting capabilities to optimise present supplier performance and acts as a springboard for those collaborative supplier relationships. The product is CRM / ERP agnostic, working alongside all major software providers to ensure the collaboration software is insightful and informative.
*Progress made by the company in 2021 includes:*
· An uplift in new sales momentum following a slow-down in large enterprises’ decision making and budget constraints in 2020 following the onset of the Covid-19 pandemic. The business realigned itself with a number of retained customers and subsequently addressed and extended key customer contracts.
· Continuing growth in contracted annual recurring revenue (ARR) with a particular focus on sustainability and ESG reporting which has generated traction with major customers. The business signed new three-year contracts with Vodafone in Q1 2021 and Astellas with a further two deals in Q4 2021. In total the business now has 9 material global businesses signed up as customers. The company’s pipeline also remains healthy with a further customer acquisitions expected in Q1 2022.
· Strong progress towards the launch of an ESG specific module in 2022, with the Vizibl platform already containing the capabilities to allow large enterprises to manage their ESG agenda through their supply chain. Initiatives and requirements such as Scope 3 emissions reporting are moving to the forefront for large enterprises, and it is widely expected that reporting, auditing, monitoring and improving these figures will be a key area of focus for corporates over the coming years.
*Cost:* £500,000
*Valuation:* £500,000
*Equity type:* Unquoted
*Equity held:* 3.8%
*Last statutory accounts:* 31 March 2021
*Turnover:* Not Disclosed
*Loss before tax:* Not Disclosed
*Net liabilities:* £1.5m
*Valuation method:* Revenue multiple
*The Ordinary Share Pool*
Shareholders will recall that whilst Seneca is the Company’s Investment Manager, responsibility for the management of the Ordinary share pool investments continues to rest with those remaining members of the Board of Directors who were serving at the point of Seneca’s appointment on 23 August 2018, which now includes John Hustler and Richard Roth.
*AIM Quoted Investments*
The Ordinary share pool’s largest investment is AIM quoted Scancell and this represented 68% of the Ordinary share pool’s NAV as at 31 December 2021. During the year, the Scancell share price increased by 44% from 13.5p as at 31 December 2020 to 19.5p at 31 December 2021. In view of this increasing share price, the Company took the opportunity to realise some profit and sold a small portion of Scancell shares during the year (1,000,000 shares (8%) were sold from a holding at the start of the year of 12,000,000 shares) realising £217k and generating a profit versus original cost of £157k (a 3.6x return on the original investment) and a profit versus the 31 December 2020 carrying value of £82k. The Ordinary share pool’s remaining stake in Scancell of 11,000,000 shares increased in value by £660k during the year to stand at £2,145k as at 31 December 2021.
The Ordinary share pool’s investment in Arecor, a long-standing unquoted investee company, announced its intention to float on AIM in May 2021. The Company considered the terms of the fundraise to be attractive and in order to support the IPO the Ordinary share pool purchased a further 37,611 shares in Arecor at £2.26 per share. Following a share reorganisation prior to flotation, the Ordinary share pool’s existing shares were converted to 186,366 shares and the Ordinary share pool now holds a total of 223,977 shares in Arecor valued at £829k (compared to an original cost of £227k)
*Unquoted Investments*
With regard to the Ordinary share pool’s unquoted investments, the carrying value of Fuel 3D Technologies Limited (“Fuel 3D”) was reduced as a result of the company completing a £1.5m fundraise in 2021. The carrying value of Fuel 3D has been reduced to bring it in line with the price of their 2021 fundraise. The remainder of the Ordinary share pool’s unquoted investment valuations have been maintained by the Company in the period.
*Performance** and Dividends*
As a result of the above AIM quoted investee company realisation, the Ordinary share pool was able to pay a dividend of 4p per Ordinary share during the period.
The Total Return in relation to the Ordinary shares is now 108.2p comprising cumulative distributions of 69.25p per Ordinary share and a residual NAV per Ordinary share of 38.9p as at 31 December 2021.
As noted in the Chairman’s statement, the Company is focussed on realising assets in the Ordinary share pool at the appropriate time with the proceeds then being distributed to Ordinary shareholders as dividends – it is therefore noteworthy that in the 4 years to 31 December 2021 the Company has paid out dividends totalling 45p per Ordinary share (equivalent to 70.5% of the NAV per Ordinary share of 63.8p as at 31 December 2017) and the Ordinary share pool also retains NAV per Ordinary share of 38.9p as at 31 December 2021.
*Investment Portfolio – Ordinary shares*
*Unquoted Investments* *Equity *
*held *
*%* *Investment at cost £'000* *Unrealised profit/(loss) £'000* *Carrying value at *
*31 December 2021 *
*£'000* *Movement *
*in the year to *
*31 December 2021 *
*£'000*
Insense Limited 4.6 509 (388) 121 -
Fuel 3D Technologies Limited <1.0 299 (182) 117 (78)
OR Productivity Limited 3.7 765 (765) - -
Microarray Limited 3.0 132 (132) - -
ImmunoBiology Limited 1.2 868 (868) - -
*Total unquoted investments* *2,573* *(2,335)* *238 * *(78)*
*Quoted Investments* *Shares held* *Investment at cost £'000* *Unrealised profit/(loss) £'000* *Carrying value at *
*31 December 2021 £'000* *Movement*
* in the year to *
*31 December 2021 *
*£'000*
Scancell plc 11,000,000 665 1,480 2,145 660
Arecor Limited 223,977 227 602 829 539
*Total quoted investments* *892 * *2,082* *2,974* *1,199*
*Total investments* * 3,465* *(253)* *3,212* *1,121*
*Exits for the period* *Investment Date* *No. of Shares sold* *Investment at cost £'000* *Sale Proceeds £’000* *Realised profit/(loss) £'000* *Exit Multiple*
Scancell plc ^* December 2003 1,000,000 60 217 157 3.6
*Total* *60* *217* *157* *3.6*
*Ordinary Share Pool – Investment Portfolio *
Listed below are details of the Company’s Ordinary share pool investments as at 31 December 2021.
· *Scancell** plc*
*Initial investment date:* December 2003 Scancell is an AIM listed biotechnology company that is developing a pipeline of therapeutic vaccines to target various types of cancer, with the first target being melanoma.
The ImmunoBody platform technology educates the immune system how to respond – this means that the technology can also be licensed to pharmaceutical companies to assist the development of their own therapeutic vaccines, which is an area of emerging importance for which a number of big pharmas do not have in-house technology.
In addition, in 2012 a second platform technology, Moditope, was announced and is based on exploiting the normal immune response to stressed cells and is complementary to the ImmunoBody platform. The AvidMab platform was established in 2018 which allows direct tumour killing. Scancell continues to develop its multiple technologies.
Progress made by the company in 2021 includes:
· First subject dosed in the company's Covid-19 vaccine Phase 1 clinical trial (COVIDITY) in South Africa, with 16 patients having been recruited to date.
· Selection of PharmaJet's Needle-free Injection System to administer the company's two SARS-CoV-2 vaccine candidates.
· Modi-1 Phase 1/2 clinical trial application approved by the UK's Medicines and Healthcare Products Regulatory Authority (MHRA) and challenges previously associated with formulation of the citrullinated enolase peptide successfully resolved.
· Four clinical centres in the UK now operational in the company's SCIB1 Phase 2 clinical trial and the first patient was dosed at Churchill Hospital, Oxford University Hospitals Trust following the year end.
· Continued the development of a unique, rich pipeline of tumour-specific anti-glycan antibodies with the initial aim of generating early-stage clinical data, either alone or in combination with potential strategic partners.
· Applied AvidiMab™ technology to the company's internal programmes to engineer and enhance potency of its anti-glycan antibodies, ImmunoBody^® cancer products and Covid-19 vaccine candidates.
· Professor Lindy Durrant, founder, Board Director and Chief Scientific Officer of Scancell, appointed as Chief Executive Officer of Scancell Holdings plc in July 2021.
· Expanded the Group's R&D capabilities by taking new laboratory and office space in the Bellhouse Building at The Oxford Science Park.
· The company's capital structure has been improved through the extension of the redemption dates of the outstanding unsecured Convertible Loan Notes ("CLNs") issued by the company in 2020.
*Cost (of the portion of the original investment still held as at 31 December 2020):* £665,000
*Valuation:* £2.1 million
*Equity type:* Quoted
*Equity held:* 1.4%
*Last statutory accounts:* 30 April 2021
*Turnover:* £nil
*Loss before tax:* £16.8 million
*Net assets:* £19.5 million
*Valuation method: * Bid price of 19.5p per share
· *Arecor** Therapeutics Plc*
*Initial investment date:* January 2008 Arecor Therapeutics Plc (“Arecor”) was admitted to the AIM market on 3 June 2021 and raised £20 million at that point. Arecor was an existing investee company of the Ordinary share portfolio and the B share pool invested £425k in the IPO. The Ordinary share pool also supported the IPO with a further investment of £85k.
For more information on the company and progress made in the year, please see page 21, B Share Pool Investment Portfolio summary.
*Cost:* £227,000
*Valuation:* £829,000
*Equity type:* Quoted
*Equity held:* 1.1%
*Last statutory accounts:* 31 December 2020
*Turnover:* Not Disclosed
*Loss before tax:* Not Disclosed
*Net assets:* £907,000
*Valuation method:* Bid price of 370p per share
· *Insense** Limited*
*Initial investment date:* July 2003 Insense is an innovative, biotechnology company and was spun-out from Unilever’s R&D laboratory in 2001.
It has since had two successful spinouts, namely Arecor (see above) and Archimed, from which Microarray (see below) was also spun-out. Current Insense development activity is concentrated on dermatology products for both professional and consumer applications.
*Progress made by the company in 2021 includes: *
· Developing a topical treatment for fungal nail infections which aims to deliver comparable fungal kill to that of systemic drugs, but without the side effects. The company’s objective remains as previously: to complete early formulation development and then conduct a first‐in‐man clinical trial. At present, the first‐in‐man trial is scheduled to complete at the end of 2024. Over the coming months they will be looking at options to shorten the timeline if possible.
· Agreed the terms of a patent licence with Smith+Nephew, one of the world’s leading manufacturers and suppliers of wound dressings. The licence expressly excludes their Fungal Nail treatment patent families.
*Cost:* £509,000
*Valuation:* £121,000
*Equity type:* Unquoted
*Equity held:* 4.6%
*Last statutory accounts:* 31 December 2020
*Turnover:* Not Disclosed
*Loss before tax:* Not Disclosed
*Net liabilities:* £232,000
*Valuation method: * Price of last fundraise
· *Fuel 3D Technologies Limited*
*Initial investment date:* March 2010 In 2014 Fuel 3D was formed to acquire the computer 3D imaging IP of Seneca Growth Capital Ordinary share investee company, Eykona. The initial application for this IP targeted by Eykona was measuring the volume of chronic wounds; however this has since developed and the current application focus is on a) measuring tumours in animals used in drug development via a product called BioVolume and b) enabling the manufacture of products to fit a particular individual e.g. masks used to treat certain medical conditions.
BioVolume is Fuel 3D’s lead product and improves measurement accuracy, inter-operator consistency, animal welfare, cost efficiencies, compliance and the success of pre-clinical oncology research.
*Progress made by the company in 2021 includes:*
· Continuing progress in the development of BioVolume in conjunction with major pharmaceutical companies but has suffered Covid-19 related delays. Orders were received from two global top ten pharmaceutical companies, with others currently in legals.
· Continuing the development of the technology for FitsYou applications (e.g. sleep apnoea masks and eyewear) has taken longer than expected, though a commercial licensing agreement is expected in 2022.
· Reduction in cost base lowered break-even point and £1.5m additional cash was raised in December 2021 and January 2022 from existing investors to provide sufficient runway to take it through to the end of 2022 and to exit one of BioVolume or FitsYou moving the company to a self funding model.
*Cost:* £299,000
*Valuation:* £117,000
*Equity type:* Unquoted
*Equity held:* < 1%
*Last statutory accounts:* 31 December 2020
*Turnover:* £21,000
*Loss before tax:* £3.7 million
*Net assets:* £6.1 million
*Valuation method:* Price of last fundraise
· *OR Productivity Limited*
*Initial investment date:* March 2011 At the end of 2011, Freehand 2010 (a Seneca Growth Capital Ordinary share investee) was acquired by OR Productivity plc (“ORP”) in exchange for ORP shares.
Freehand 2010 owns the intellectual property to technology incorporated in