REG - Braveheart Inv Group - Final Results and Notice of AGM
21/06/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240621:nRSU3016Ta&default-theme=true
RNS Number : 3016T Braveheart Investment Group plc 21 June 2024
Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
UK Market Abuse Regulation. With the publication of this announcement, this
information is now considered to be in the public domain.
21 June 2024
Braveheart Investment Group plc
("Braveheart", the "Company" or the "Group")
Final Results for the year ended 31 March 2024
Braveheart Investment Group plc (AIM: BRH) announces its audited annual
results for the financial year ended 31 March 2024, highlights of which are
set out below:
· Loss per share of 11.38 pence per share (2023: 2.68 pence earnings
per share)
· Cash balance as at 31 March 2024 of £1.74 million (2023: £0.93
million)
· Pre-tax loss of £8.19 million (2023: profit of £2.36 million).
Notice of AGM
A copy of the annual report and accounts, together with notice of the
Company's annual general meeting ("AGM") to be held on 18 July 2024 at 10.30
am at the office of China Ventures Ltd, Unit 2, Common Farm, Common Lane,
Mappleborough Green, Warwickshire, B80 7DP, will be posted to shareholders
shortly and available on the Company's website, www.braveheartgroup.co.uk
(http://www.braveheartgroup.co.uk) .
For further information:
Braveheart Investment Group plc Tel: 01738 587555
Trevor Brown, Chief Executive Officer
Viv Hallam, Executive Director
Allenby Capital Limited (Nominated Adviser and Joint Broker) Tel: 020 3328 5656
James Reeve / George Payne
Peterhouse Capital Limited (Joint Broker) Tel: 020 7469 0936
Duncan Vasey / Lucy Williams
CHIEF EXECUTIVE OFFICER'S REPORT
Despite the challenging conditions in the economy and capital markets, our
strategy remains unchanged: to invest shareholder funds in businesses that we
believe possess specific characteristics capable of generating exceptional
returns on disposal.
On 15 May 2024, Braveheart announced that following a review of the value of
Braveheart's portfolio investments, a decision had been made to write down the
value of the Company's equity investments in Paraytec Limited ("Paraytec")
(book value at 31 March 2023: £3.04m) and Kirkstall Limited ("Kirkstall")
(book value at 31 March 2023: £1.67m) to zero in the FY2024 Accounts and this
has now been implemented following the completion of the audit. The Board
believes that, with time, Paraytec and Kirkstall could have the potential to
increase in value and thereby provide exit opportunities for the Company.
The Board has also implemented a range of actions to rationalise the Company's
cost base and to conserve cash, which stood at approximately £1.74 million on
31 March 2024. These actions include reducing operational overheads and
management costs to reflect the changing needs of the business.
Strategic Investments Overview
Phasefocus Holdings Limited (now exited)
On 22 December 2023, Braveheart announced the sale of its entire shareholding
in Phasefocus Holdings Limited to Bruker UK Limited, a global analytical
instrumentation company. The total proceeds received by Braveheart on 31 March
2024 was £2.1m. A further £53k was received on 27 April 2024, following
preparation of the Completion Accounts, which was a £53k increase on the
figure provided in the announcement of 4 March 2024.
Paraytec Limited (Braveheart owns 100% per cent of the company)
Paraytec develops high performance specialist detectors for the analytical and
life sciences instrumentation markets. During the period it undertook a
programme with the University of Sheffield to develop rapid tests ("CX300")
for identifying pathogens, including viruses and bacteria that cause sepsis.
On 2 May 2023, the CX300 instrument passed independent testing for CE marking,
which certifies its compliance with required safety standards for a laboratory
use instrument.
Paraytec continues to develop the CX300 instrument to assist in the rapid
diagnosis and treatment of bacteraemia, the presence of bacteria in the
blood, which is found in most patients with sepsis and on 15 December 2023,
the Company announced that Paraytec had demonstrated proof-of-concept for the
test, using its CX300 instrument.
On 4 March 2024, the Company announced that, having used an M&A specialist
to market the company and seek a cash buyer for Paraytec, Braveheart was
unable to secure an attractive offer from potential acquirers, most of those
interested felt the business was at "too early stage". The Board therefore
decided to retain Paraytec within its investment portfolio and continue its
development of the sales and marketing of the CX300 instrument, with the aim
of further enhancing the appeal to a potential acquirer by offering it for
sale at a later development stage.
The current CX300 instrument performs exceptionally well in detecting and
counting particles labelled with a single colour fluorescent marker.
Development is now in progress on the next generation instrument that will
allow two populations of differently coloured particles to be compared in real
time. This two-colour instrument will give Paraytec
access to a much bigger market, and customer feedback has indicated that it
could be useful for many biomedical and research applications. Paraytec has
recently completed building its first two-colour instrument prototype, and
testing and miniaturization are now underway. In response to user requests,
Paraytec are also exploring adding further features, such as back-scatter
light measurement to provide researchers more detail about the particle size.
User testing of the two-colour instrument at collaborating universities is
expected to commence in three months and it is hoped that marketing and sales
will commence thereafter.
Work continues on the development of a patentable point-of-care test for
bacteraemia that uses CX300 technology to rapidly distinguish between
gram-positive and gram-negative bacteria. Using the same principle as the
original Gram stain, the test uses a genetically engineered fluorescent
protein that binds specifically to peptidoglycan present in gram-positive but
not gram-negative bacteria.
Whilst significant progress in product development and commercialisation has
been made in this period, the technical challenges encountered delayed product
launch. Initial CX300 instrument sales have now been made, but the original
sales targets have not been met. Following feedback from the M&A
specialist, Braveheart has now concluded that Paraytec should restrict any
significant further investment in product development until the CX300 has had
time to establish its performance credentials with users in the marketplace.
On 15 May 2024, Braveheart reported that the Board had concluded that
Paraytec's short-term prospects have reduced and it no longer believes that
Braveheart's outstanding loans to Paraytec (totalling £1.44 million as at 31
March 2024), will be repaid in the short-term. A decision has therefore been
made to write down the value of the Company's equity investments and loan
receivable in Paraytec to zero.
Kirkstall Limited (Braveheart owns 86.11% of the company)
Kirkstall operates in the market known as 'organ-on-a-chip', where it has
developed Quasi Vivo®, a system of chambers for cell and tissue culture in
laboratories. Its patented technology is used by researchers in the growing
New Approach Methodologies ("NAMs"), which enable human-relevant drug safety
decisions to be made without the need for animal testing.
The work at Oxford University to develop blood-brain barrier assays for
Kirkstall was successful. This work provided data to show that the QV1200
system replicates the human physiology more effectively than non-flow systems
and these findings have been presented by Kirkstall at conferences.
Kirkstall received several enquiries for its contract research organisation
(CRO) service, however after careful assessment it was concluded the costs
would exceed expected returns and so this project has been concluded.
Kirkstall's QV1200 product is in use globally within university research teams
and has gained much positive feedback. Kirkstall are collaborating with these
researchers to generate published papers and thus grow sales. Kirkstall is
also in discussion with potential distributors who may be able to increase the
volume of sales over that achieved by direct sales from the Company. The aim
of all this current activity is to grow revenue to make it more attractive to
acquirers and allow Braveheart to attract a buyer for this business.
On 15 May 2024 Braveheart reported that Kirkstall has been unable to achieve
certain sales milestones and discussions with M&A advisers and potential
acquirers have not progressed. Braveheart has concluded that it should
restrict further investment in product development and focus on growing sales
to build a user-base and community of practice in the research marketplace.
Therefore, the Board no longer believes that Braveheart's outstanding loans to
Kirkstall (totalling £0.16 million as at 31 March 2024), will be repaid in
the short-term. A decision has therefore been made to write down the value of
the Company's equity investments and loan receivable in Kirkstall to zero.
The Board believes that, with time, both Kirkstall and Paraytec could have the
potential to increase in value and provide exit opportunities for the Company,
but it is prudent to write the values down to zero at the current time.
Listed Investments
At 31 March 2024, Braveheart held investments in the following AIM listed
companies:
Aukett Swanke Group plc (Braveheart owned 8.98% of the company) a professional
services group that principally provides architectural, interior design and
smart building services in the primary international market sectors of
offices, residential, education, industrial, hospitality and mixed use or
'hybrid' developments. On 21 March 2024, Aukett Swanke announced its
acquisition of RTS Technology Solutions
Limited, so this architectural services group now includes subsidiaries that
provide smart building software sales and smart building system installation
services.
Autins Group plc (Braveheart owned 23.96%) an industry-leading designer,
manufacturer, and supplier of acoustic and thermal insulation solutions for
the automotive industry and other sectors. As stated in our announcement of 6
March 2024, the growth of electric vehicle production has created new
opportunities for Autins who now supply vehicle producers including: JLR,
Nissan, BMW, Aston Martin, Lotus, Lamborghini and Bentley; as well as Tier 1
automotive suppliers: Draxlmaier, Kasai, Treves, Novares, Mergon and Yangfeng.
Image Scan Group plc (Braveheart owned 4.48% of the company) a specialist
supplier of real-time X-ray screening systems to the security and industrial
inspection markets. This company recently announced the launch of AI software
to enhance threat recognition in its X-ray scanning products. Also announcing,
a substantial order and framework contract from an EU MOD customer, for its
portable X-ray system for military and counter-terrorism applications.
The Company also has several portfolio investments that are smaller scale
legacy investments for which we continue to seek exits where appropriate.
Outlook
The Board will continue to work with Paraytec and Kirkstall to help them make
sales and attract buyers. It will continue to seek transformative investments
in line with the investing strategy, rationalize costs and conserve its £1.74
million cash reserve as of 31 March 2024. Proceeds from the Phase Focus sale
will be used to fund new investments, as such the Board is not recommending a
special dividend.
Trevor Brown
Chief Executive Officer
Financial Review
During the year, we continued the comprehensive review of our cost base and continued to reduce the central costs.
Income Statement
Fee-based revenue was generated by Braveheart Investment Group Plc. The
principal revenue from the Group's operations comprises investment management
fees, with total revenue during the year being £61,000 (2023: £51,000).
Finance income was £17,000 (2023: £21,000), this being interest on
outstanding loan notes within the directly held portfolio.
As at 31 March 2024, the total number of directly held investments in the
portfolio of Strategic Investments and the Portfolio Investments was 19
companies (2023: 21). The fair value of the directly held portfolio was
£1,653,000 (2023: £9,458,000). During the year the group made investments of
£532,000 into three companies: Autins Group Plc, Image Scan Holdings Plc and
Phasefocus Holdings Limited.
The group sold its shareholding in Phase Focus Holdings in the year, resulting
in a profit on disposal of £1,232,000.
Total income for the year ended 31 March 2024, including realised gains and
unrealised revaluation gains and losses, was a loss of £2,257,000 (2023:
£2,958,000 profit) and impairments of £4,847,000 (2023 £Nil).
The average number of employees remained at four during the period under
review. Employee benefits expense was £594,000 (2023: £556,000). Other
operating and finance costs decreased to £282,000 (2023: £283,000).
The total loss after tax decreased to £7,249,000 (2023: £1,585,000 profit),
equivalent to a basic loss per share of 11.38 pence (2023: 2.68 pence profit).
Financial Position
The Group had net assets of £3,397,000 as at 31 March 2024 (31 March 2023:
£10,520,000).
At the year end, the Group had cash balances of £1,742,000 (2023: £935,000).
There were no material borrowings.
A summary analysis of the Group's performance is as follows:
2024 2023
£'000 £'000
Investment management revenue and sales 61 51
Finance income 17 21
Income before portfolio movements 78 72
Profit on disposal of investments 1,304 171
Change in fair value of investments, gain on disposal of investments and (2,257) 2,958
movement in contingent liability
Impairment of investments (4,847) -
Total income of continuing activities (5,722) 3,201
Employee benefits expense (including share- based payments) (594) (556)
Impairment of loans in investment companies (1,595) -
Other operating and finance costs (282) (286)
Total costs on continuing activities (2,471) (842)
(Loss)/ profit before tax - continuing (8,193) 2,359
Tax 944 (774)
Total profit and total comprehensive profit for the year (7,249) 1,585
Opening cash balance 935 1,853
Investment in portfolio companies (533) (1,529)
Proceeds from sale of equity investments 2,513 428
Funds raised - net of share issue costs - 930
Other activities (1,173) (747)
Closing cash balance 1,742 935
Net assets 3,397 10,520
Key Performance Indicators (KPIs)
The KPIs we use to monitor business performance have been changed in order to better reflect the emphasis that the Board has placed upon the development of the Strategic Investments as the best way to increase shareholder value over the short and medium term. Given the nature of our business, these KPI's remain as, primarily, financial measures. They are:
2024 2023
Cash ('£000) 1,742 935
Share price (pence) 6.35 6.75
Income ('£000) 61 51
Value of investments 1,653 9,458
The value of investments has reduced significantly in the year mainly due to the sale of Phase Focus Holdings (£2,502,000) and also the reduction in valuations of Kirkstall (£1,675,000) and Paraytec (£3,038,000).
Principal Risks and Uncertainties
Through its operations the Group is exposed to a number of risks. The Group's
risk management objectives and policies are described in the Corporate
Governance Statement. Braveheart is ensuring that all necessary steps have
been taken to maintain the integrity of the Company's assets and the health
and well-being of our employees.
Section 172 Statement
Section 172 (1) of the Companies Act obliges the Directors to promote the
success of the Company for the benefit of the Company's members as a whole.
This section specifies that the Directors must act in good faith when
promoting the success of the Company and in doing so, have regard (amongst
other things) to:
a. the likely consequences of any decision in the long term,
b. the interests of the Company's employees,
c. the need to foster the Company's business relationship with suppliers,
customers and others,
d. the impact of the Company's operations on the community and environment,
e. the desirability of the Company maintaining a reputation for high standards
of business conduct, and
f. the need to act fairly between members of the Company.
The Board of Directors is collectively responsible for formulating the
Company's strategy, which is to invest in businesses where prospects appear to
be exceptional and deliver growth to its shareholders. Of course, the Board
cannot predict the future but aims to make decisions that it considers are in
the best interest of all shareholders at the time. In the period, the decision
to sell its holding in Phasefocus Holdings Limited was such a decision, where
the Board decided it was in the best interest of Braveheart to accept the
terms offered by the buyer, rather than continue to hold shares with the
likelihood that further investment in the business would be required.
The Board places equal importance on all shareholders and strives for
transparent and effective external communications, within the regulatory
confines of an AIM-listed company. The primary communication tool for
regulatory matters and matters of material substance is through the Regulatory
News Service ("RNS"). The Company's website is also updated regularly and
provides further details on the business as well as links to helpful content
such as our latest investor presentations.
Our employees are one of the primary assets of our business and will be
critical to the future success of the Company. First and foremost, the
Directors strive to ensure a safe working environment for all its staff and
contractors, and we are proud of our safety achievements in 2023/24. We also
seek to reward employees with remuneration packages which align the interests
of the Company and its shareholders with those of the employees. Employees are
also provided with challenging work and external training opportunities to
ensure their continual development.
The Directors believe they have acted in the way they consider most likely to
promote the success of the Company for the benefit of its members as a whole,
as required by Section 172 (1) of the Companies Act 2006.
On behalf of the Board
Trevor E Brown
Chief Executive Officer
20 June 2024
Consolidated Statement of comprehensive INCOME for the year ended 31 March
2024
2024 2023
Notes £ £
Revenue from contracts with customers 3 60,896 50,902
Change in fair value of investments 10 (2,257,293) 2,957,665
Impairment of investments 10 (4,847,349) -
Profit on disposal of investments 10 1,304,035 170,576
Total income (5,739,711) 3,179,143
Employee benefits expense 5 (594,234) (556,146)
Other operating costs 7 (278,852) (283,356)
Total operating costs (873,086) (839,502)
Impairment of loans in investment companies 13 (1,594,620) -
Finance costs 6 (2,795) (2,154)
Finance income 4 16,896 21,003
Total costs (2,453,605) (820,653)
(Loss)/ profit before tax (8,193,316) 2,358,490
Tax 8 944,050 (773,652)
(Loss)/ profit from continuing operations (7,249,266) 1,584,838
Total (loss)/ profit and total comprehensive loss for the year (7,249,266) 1,584,838
Profit attributable to:
Equity holders of the parent (7,249,266) 1,584,838
(7,249,266) 1,584,838
Earnings per share Pence Pence
- basic 9 (11.38) 2.68
- diluted 9 (11.38) 2.68
The accompanying accounting policies and notes form part of these financial
statements.
consolidated statement of financial position as at 31 March 2024
2024 2023
Notes £ £
ASSETS
Non-current assets
Property, plant and equipment 12 108 418
Investments at fair value through profit or loss 10 1,653,341 9,458,324
Debtors due in over one year 13 - 1,155,200
1,653,449 10,613,942
Current assets
Trade and other receivables 14 105,707 64,510
Cash and cash equivalents 15 1,742,315 934,861
1,848,022 999,371
Total assets 3,501,471 11,613,313
LIABILITIES
Current liabilities
Trade and other payables 16 (104,145) (149,656)
(104,145) (149,656)
Non-current liabilities
Deferred taxation 17 - (944,050)
Total liabilities (104,145) (1,093,706)
Net assets 3,397,326 10,519,607
EQUITY
Called up share capital 18 1,274,469 1,274,469
Share premium reserve 18 5,370,711 5,370,711
Share based payment reserve 598,188 471,203
Retained earnings (3,846,042) 3,403,224
Equity attributable to owners of the Parent 3,397,326 10,519,607
Total equity 3,397,326 10,519,607
The accompanying accounting policies and notes form part of these financial
statements.
Consolidated Statement of CAsh flows for the year ended 31 March 2024
2024 2023
£ £
Operating activities
(Loss)/ profit before tax (8,193,316) 2,358,490
Adjustments to reconcile profit before tax to net cash flows from operating
activities
Share based payment 126,985 219,223
Impairment of loans in investment companies 1,594,620 -
Decrease/ (increase) in the fair value movements of investments 2,257,293 (2,957,665)
Impairment of investments 4,847,349 -
Profit on disposal of equity investments (1,304,035) (170,576)
Depreciation and amortisation 310 378
Interest income (16,896) (21,003)
Increase in trade and other receivables (44,015) (194,728)
Decrease in trade and other payables (21,309) (2,305)
Cash flow used in operating activities (753,014) (768,186)
Investing activities
Proceeds from sale of investments 2,512,690 428,066
Purchase of investments (532,516) (1,529,127)
Loans to investments (436,602) -
Interest received 16,896 21,003
Net cash flow used in investing activities 1,560,468 (1,080,058)
Financing activities
Funds raised, net of share issue costs - 930,363
Net cash flow from financing activities - 930,363
Net increase/ (decrease) in cash and cash equivalents 807,454 (917,881)
Cash and cash equivalents at the beginning of the year 934,861 1,852,742
Cash and cash equivalents at the end of the year 1,742,315 934,861
The accompanying accounting policies and notes form part of these financial
statements.
For non-cash movement in investing activities, see note 10
Consolidated Statement of ChAnges in Equity for the year ended 31 March 2024
Called up Share Capital Share Premium Reserve Share based payment Reserve Retained Earnings/ (Deficit) Total Total Equity
GROUP £ £ £ £ £ £
At 1 April 2022 restated 1,044,807 4,371,343 309,835 1,760,531 7,486,516 7,486,516
Profit and total comprehensive profit for the year - - - 1,584,838 1,584,838 1,584,838
Allotment of shares 229,662 1,034,118 - - 1,263,780 1,263,780
Cost of shares issued - (34,750) - - (34,750) (34,750)
Share based payments - - 219,223 - 219,223 219,223
Transfer to retained earnings - surrender of options - - (57,855) 57,855 - -
Transactions with owners, recognised directly in equity 229,662 999,368 161,368 1,642,693 3,033,091 3,033,091
At 31 March 2023 1,274,469 5,370,711 471,203 3,403,224 10,519,607 10,519,607
Profit and total comprehensive profit for the year - - - (7,249,266) (7,249,266) (7,249,266)
Share based payments - - 126,985 - 126,985 126,985
Transactions with owners, recognised directly in equity - - 126,985 (7,249,266) (7,122,281) (7,122,281)
At 31 March 2024 1,274,469 5,370,711 598,188 (3,846,042) 3,397,326 3,397,326
Share capital is the number of shares issued in the company at their nominal
value. The share premium account represents the gross proceeds from issue of
shares, less their nominal value. Share based payment reserve is the amount
generated from the award of share options and warranties. Retained earnings is
the cumulative net gains and losses recognised in the consolidated statement
of comprehensive income net of associated share-based payments credits.
Notes to the financial statements for the year ended 31 March 2024
1 Corporate information
The Group and Company financial statements of Braveheart Investment Group plc
(the Company) for the year ended 31 March 2024 were authorised for issue by
the Board of Directors on 20 June 2024 and the statements of financial
position were signed on the Board's behalf by Trevor Brown.
Braveheart Investment Group plc is a public company incorporated in the United
Kingdom under the Companies Act 2006 limited by shares. The address of the
registered office is detailed at the back of this report. The nature of the
Group's operations and its principal activities are set out in the Strategic
Report and Directors' Report. The Company is registered in Scotland. The
Company's ordinary shares are traded on the AIM market of the London Stock
Exchange.
2 Accounting policies
(a) Basis of preparation
The Group and Company financial statements have been prepared in accordance
with UK-adopted international accounting standards in accordance with the
requirements of the Companies Act 2006 and in accordance with the requirements
of the AIM rules. The principal accounting policies adopted by the Group and
by the Company are set out in the following notes.
The consolidated financial statements have been prepared on a historical cost
basis, except for financial instruments that are measured at the fair values
at the end of the reporting period. The financial statements are presented in
sterling and all values are rounded to the nearest pound (£), which is also
the functional currency of the company and its subsidiaries, except where
otherwise indicated.
The Group's business activities (together with the factors likely to affect
its future development, performance and position) and its financial position
is set out in the Chief Executive Officer's Report. The Group's risk
management objectives and policies are described in the Corporate Governance
Statement. Further information regarding the Group's financial risk management
objectives and policies, including those in relation to credit risk, liquidity
risk and market risk, is provided in note 21 to the financial statements. The
Group's capital management objectives are stated on page 46, note (n).
(b) Investment policy
The Group's strategy is to invest in early and later-stage businesses,
primarily in the technology sector, but it will also consider opportunities in
other sectors that are knowledge intensive, such as healthcare and
professional services.
The Group will target investments in both unlisted and listed companies, where
there is potential for significant growth. Investments are expected to be
mainly in the form of equity and equity-related instruments, including
convertible debt instruments in certain circumstances.
The Group may acquire investments directly or by way of holdings in
intermediate holding or subsidiary entities. The Group might also invest in
limited liability partnerships and other forms of legal entity. Where
possible, the Group will seek investor protection rights, as determined by the
Board. The Group may offer its Ordinary Shares in exchange for shares in
investee businesses in addition to a cash investment in such businesses.
For unlisted company investments, the Group targets companies at different
stages of development, ranging from those which are just starting to trade to
those which are expecting to achieve an IPO in the short term, thus providing
portfolio diversification. These investments will typically involve active
investment management.
The Group, where appropriate and deemed by the Board to be in the Group's best
interests, may seek a position on the boards of unlisted investee companies.
The Group where appropriate, will assist the board and management of investee
companies, including helping to scale management teams, informing strategy and
assisting with future financing.
For listed company investments, the Group targets investments where the Board
considers the shares are undervalued but there are opportunities for
significant growth. These investments will typically involve passive
investment management, although the Board may take a more active approach if
it considers there is a need to effect change.
Braveheart may occasionally invest in companies that are in rescue or distress
situations where a value-creating opportunity has been identified.
The Group does not have any maximum exposure limits but will generally take a
minority stake in a business and look for investments where there is a good
prospect of an exit in a two-to-five-year time period. As risk reduces, the
Group may increase its investment in subsequent rounds of funding and, as
those businesses grow, may find itself holding a controlling interest in some
trading companies. However, in such instances the Board will ensure that there
is sufficient separation between the Group and the investee company so that
the investee company does not become a trading company of the Group.
(c) Going Concern
The directors have reviewed the Group's and the Company's budgets and plans,
taking account of reasonably possible changes in trading performance and have
a reasonable expectation that the Group and the Company have adequate
resources to continue in operational existence for the foreseeable future and
that it is therefore appropriate to continue to adopt the going concern basis
in preparing the financial statements.
Following the sale of Phase Focus Holdings, the group currently have large
bank balances and undertake regular reviews of the cash flows of the company.
Furthermore, the group have a large number of listed investments that could be
converted to cash if required. The group forecast at least 12 months into the
future at all times in order to ensure that the company can continue into the
foreseeable future.
(d) Changes in accounting policy and disclosures
There are no new standards which became effective in the year which had a
material impact on the group.
(e) New standards and interpretations not yet effective
The Group has adopted all recognition, measurement and disclosure requirements
of IFRS, including any new and revised standards and interpretations of IFRS,
in effect for annual periods commencing on or after 1 April 2023. The adoption
of these standards and amendments did not have any material impact on the
financial result of position in the Group.
At the date of authorisation of these financial statements, the following
Standards and Interpretation, which have not yet been applied in these
financial statements, were in issue, but not yet effective:
New Standards Effective Date
IAS 1 Amendments - Presentation and Classification of Liabilities as Current 1 January 2024
or Non current
IAS 1 Amendments - Non-current liabilities with covenants 1 January 2024
IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: - 1 January 2024
Supplier Finance Arrangements
(f) Basis of consolidation
The Group's financial statements consolidate the results of Braveheart
Investment Group plc and its subsidiaries (together referred to as the
'Group') drawn up to 31 March each year. The financial statements of the
subsidiaries used in the preparation of the consolidated financial statements
are prepared for the same reporting year as the parent company using
consistent accounting policies. All intra-group balances, transactions, income
and expenses are eliminated in full on consolidation. The Company is
classified as an investment entity as it meets the definition of an investment
entity within Paragraph 27 IFRS 10.
- Subsidiaries
The subsidiaries have been consolidated from the date of their acquisition,
being the date on which the Group obtained control, and will continue to be
consolidated until the date that such control ceases. As per IFRS 10, an
entity is classed as under the control of the Group when all three of the
following elements are present: power over the entity, exposure to variable
returns from the entity and the ability of the Group to use its power to
affect those variable returns. Control is reassessed whenever facts and
circumstances indicate that there may be a change in any of these elements of
control.
A change in the ownership interest of a subsidiary, without a loss of control,
is accounted for as an equity transaction.
The group applies the acquisition method to account for business combinations.
The consideration transferred for the acquisition of a subsidiary is the fair
values of the assets transferred, the liabilities incurred to the former
owners of the acquiree and the equity interests issued by the group. The
consideration transferred includes the fair value of any asset or liability
resulting from a contingent consideration arrangement. Identifiable assets
acquired and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair values at the acquisition
date. The group recognises any non-controlling interest in the acquiree on an
acquisition-by-acquisition basis, either at fair value or at the
non-controlling interest's proportionate share of the recognised amounts of
acquiree's identifiable net assets.
Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the acquisition date
carrying value of the acquirer's previously held equity interest in the
acquiree is re-measured to fair value at the acquisition date; any gains or
losses arising from such re-measurement are recognised in profit or loss.
If the Group loses control over a subsidiary, it derecognises the related
assets, liabilities, non-controlling interest and any other components of
equity while any resultant gain or loss is recognised in profit or loss. Any
investment retained is recognised at fair value.
The Group is made up of several different types of subsidiaries. The Group
assesses the function performed by each type of subsidiary to determine its
treatment under the IFRS 10 exception from consolidation. The types of
subsidiaries and their treatment under IFRS 10 are as follows:
· Investment managers - Consolidated
These entities provide investment related services through the provision of
investment management or advice. They do not hold any direct investments in
portfolio assets. These entities are not investment entities.
· General Partners (GPs) - Consolidated
General Partners provide investment management services and do not hold any
direct investments in portfolio assets. These entities are not investment
entities.
Non-controlling interests represent the portion of profit or loss and net
assets that is not held by the Group and are presented separately in the
consolidated statement of comprehensive income and within equity in the
consolidated statement of financial position separately from parent
shareholders' equity.
(g) Use of estimates and assumptions
The preparation of the financial statements in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities, income
and expenses. The estimates and associated assumptions are based on
historical experience and other factors that are believed to be reasonable
under the circumstances, the results of which form the basis of making the
judgements about carrying values of assets and liabilities that are not
readily apparent from other sources. Actual results may differ from these
estimates. Where management's judgement has been applied, this is noted in
the relevant accounting policy.
The key assumptions concerning the future and other key sources of estimation
uncertainty at the reporting date that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within
the next financial year are discussed below:
- Assessment as an investment entity
Entities that meet the definition of an investment entity within IFRS 10 are
required to account for most investments in controlled entities at fair value
through profit and loss. The Board has concluded that the Company continues
to meet the definition of an investment entity as its strategic objective of
investing in portfolio investments and providing investment management
services to investors for the purpose of generating returns in the form of
investment income and capital appreciation remains unchanged.
The Group is required to determine the degree of control or influence the
Group exercises and the form of any control to ensure that the financial
treatment is accurate.
- Impairment of investments and loan receivable from investee
companies - see note 10
Management assessment of the impairment indicators including; performance of
the investee companies, future prospects, ability to exit and based on that
decided to impair investments in Kirkstall (2023: £1,675,000), Paraytec
(2023: £3,038,000), KDS Architecture (2023: £76,000), Ni Tech (2023:
£48,000), and Zilico (2023: £10,000) to £Nil.
- Fair value of unquoted investments - see note 10
Unquoted investments have been valued by the directors in compliance with the principles of the International Private Equity and Venture Capital Guidelines as endorsed by the European Venture Capital Association (EVCA). The use of such valuation techniques requires the directors to make certain judgements including making assessments of future revenue and earnings of portfolio companies, appropriate multiples to apply, and marketability and other risk discounts and provisions, and hence they are subject to uncertainty. Management believes that in their experience, the last round share price tends to be the most reliable method of calculating these investments, unless there is a major change to the company since that point as there is a proven basis for the share price. The fair value of unquoted investments of the Group at 31 March 2024 was £39,246 (2023: £2,574,938) and of the Parent Company was £39,228 (2023: £2,574,567). The value of investments has reduced significantly in the year mainly due to the sale of Phase Focus Holdings (£2,502,000).
To reflect the potential impact of alternative assumptions and a lack of
liquidity in these holdings, a discount has been applied to all Level 3
valuations. Further information regarding the Group's and Parent Company's
fair value of unquoted investments is provided in note 10
- Share-based payments
The Group measures the cost of equity-settled transactions by reference to the
fair value of the equity instruments at the date at which they were granted.
Judgement is required in determining the most appropriate valuation model for
a grant of equity instruments depending on the terms and conditions of the
grant. Management are also required to use certain assumptions in
determining the most appropriate inputs to the valuation model including
expected life of the option, volatility, risk free rate and dividend yield.
The assumptions and models used are fully disclosed in note 19.
(h) Revenue recognition and segmental reporting
The Group earns fee income from the services it provides to its clients and
monitoring fees from investee companies. Revenue is recognised at the fair
value of the consideration received or receivable, excluding rebates. Fees
earned for the provision of an ongoing service are recognised as that service
is provided. Deal fees and arrangement fees are earned on individual
transactions and related revenue is recognised on completion
of the underlying transaction. The Group receives compensation for its role
as fund manager; these fund management fees include fixed fees and performance
fees and are recognised as the related services are provided. Monitoring fees
are recognised as that service is provided.
Interest income is recognised using the effective interest method. Interest
income is interest earned on bank deposit accounts and loan notes and is
included within the statement of comprehensive income.
Revenue is deferred when it does not meet the revenue recognition policy and
is presented as deferred income in the statement of financial position.
An operating segment is a component of the Group that engages in business
activity from which it may earn revenues and incur expenses, including
revenues and expenses that relate to transactions with and of the Group's
other components. All operating segments' operating results, for which
discrete financial information is available, are reviewed regularly by the
Group's Board to make decisions about resources to be allocated to the segment
and assess its performance.
(i)
Taxation
The tax expense represents the sum of the tax currently payable. Current tax
is based on taxable profit for the year. Taxable profit differs from net
profit as reported in the statement of comprehensive income because it
excludes items of income or expenses that are deductible in other years and it
further excludes items that are never taxable or deductible. The Group's
liability for current tax is calculated using tax rates that have been enacted
or substantively enacted by the reporting date.
A deferred tax asset or liability shall be recognised for all taxable
temporary differences, except to the extent that the deferred tax asset or
liability arises from (a) the initial recognition of goodwill, (b) the initial
recognition of an asset or liability in a transaction which (i) is not a
business
combination and (ii) at the time of the transaction, affects neither
accounting profit/(loss) nor taxable profit/(loss) or (c) relates to an
investment in subsidiary, except to the extent that (i) the parent is able to
control timing of reversal and (ii) it is probable that temporary differences
will not
reverse in the foreseeable future. Deferred tax assets are recognised to the
extent that it is probable that taxable profits will be available against
which deductible temporary differences can be utilised. Deferred tax is
calculated at the tax rates that are expected to apply in the period when the
liability is settled or the asset is realised using tax rates and laws that
have been enacted or substantively enacted by the reporting date.
(j) Tangible assets
Tangible fixed assets are stated at cost less depreciation and any provision
for impairment.
Depreciation is calculated using the straight-line method to allocate their
cost or revalued amounts, net of their residual values, over their estimated
useful lives as follows:
Furniture, fittings and office equipment
over three years
(k) Financial assets
Financial assets are recognised when the Group becomes party to the contracts
that give rise to them and are classified at initial recognition as either
financial assets at fair value through profit or loss or loans and
receivables. Financial assets are derecognised when the rights to receive cash
flows from the asset have expired or the Group has transferred substantially
all the risks and rewards of the asset.
- Impairments
Investments are tested for indicators of impairment on a regular basis. Where
an investment has been deemed to be impaired, that asset is written down
accordingly.
- Investments at fair value through profit or loss
Investments, which is made up of equity investments, are designated on initial
recognition as financial assets at fair value through profit or loss. This
measurement basis is consistent with the fact that the Group's performance in
respect of its portfolio investments is evaluated on a fair value basis in
accordance with an established investment strategy. When investments are
recognised initially, they are measured at fair value.
After initial recognition the fair value of listed investments is determined
by reference to bid prices at the close of business on the reporting date.
Unlisted equity investments are measured at fair value by the directors in
compliance with the principles of the International Private Equity and Venture
Capital Guidelines, updated and effective December 2015, as recommended by the
European Venture Capital Association. The fair value of unlisted equity
investments is determined using the most appropriate of the valuation
methodologies set out in the guidelines. These include
using recent arm's length market transactions; reference to the current market
value of another instrument, which is substantially the same; earnings or
profit multiples; indicative offers; discounted cash flow analysis and pricing
models.
Wherever possible the Group uses valuation techniques which make maximum use
of observable market based inputs and accordingly the basis of the valuation
methodology preferred by the Group is 'price of most recent investment'. Where
'price of most recent investment' is no longer considered to be appropriate,
the Group has used valuations based on discounted cash flow method using
business forecasts provided by the investee company, revenue multiples of
comparable listed companies and comparable transactions.
- Price of recent investment
The Group considers that fair value estimates, which are based entirely on
observable market data, will be of greater reliability than those based on
assumptions and, accordingly, where there has been any recent investment by
third parties, the price of that investment will generally provide
a basis of the valuation. The length of period for which it remains
appropriate to use the price of recent investment depends on the specific
circumstances of the investment and the stability of the external environment.
Given the nature of the Group's investments in early-stage companies, where
there are often no current and no short-term future earnings or positive cash
flows, it can be difficult to gauge the probability and financial impact of
the success or failure of development or research activities and to make
reliable cash flow forecasts. Consequently, the most appropriate approach to
determine fair value is a methodology that is based on market data, that being
the price of a recent investment. Where the Group considers that the price of
recent investment, unadjusted, is no longer relevant and there are limited or
no comparable companies or transactions from which to infer value, the Group
carries out an enhanced assessment based on milestone analysis and/or industry
and sector analysis. In applying the milestone analysis approach to
investments in companies in early or development stages the Group seeks to
determine whether there is an indication of change in fair value based on a
consideration of performance against any milestones that were set at the time
of the original investment decision, as well as taking into consideration the
key market drivers of the investee company and the overall economic
environment.
Where the Group considers that there is an indication that the fair value has
changed, an estimation is made of the required amount of any adjustment from
the last price of recent investment. Wherever possible, this adjustment is
based on objective data from the investee company and the experience and
judgement of the Group. However, any adjustment is, by its very nature,
subjective. Where a deterioration in value has occurred, the Group reduces the
carrying value of the investment to reflect the estimated decrease. If there
is evidence of value creation the
Group may consider increasing the carrying value of the investment; however,
in the absence of additional financing rounds or profit generation it can be
difficult to determine the value that a purchaser may place on positive
developments given the potential outcome and the costs and risks to achieving
that outcome and accordingly caution is applied. Factors that the Group
considers include, inter alia, technical measures such
as product development phases and patent approvals, financial measures such as
cash burn rate and profitability expectations, and market and sales measures
such as testing phases, product launches and market introduction.
In the current financial year, where 'price of recent investment' methodology
was used to value the business, some investments were considered not to be
making significant commercial progress and when a discount was applied to
reflect the non-marketability associated with Braveheart's limited control of
the business, the resulting valuations were zero.
- Other valuation techniques
If there is no readily ascertainable value from following the 'price of recent
investment' methodology, or there is objective evidence that a deterioration
or significant improvement in fair value has occurred since a relevant
transaction, the Group considers alternative methodologies such as discounted
cash flows ("DCF"). DCF involves estimating the fair value of a business by
calculating the present value of expected future cash flows, based on the most
recent forecasts in respect of the underlying business. Given the difficulty
of producing reliable cash flow forecasts
for early-stage companies as described earlier, this methodology is used only
where it is considered there is reasonable evidence of current and ongoing
income streams.
- No reliable estimate
Where a fair value cannot be estimated reliably, the investment is reported at
the carrying value at the previous reporting date unless there is objective
evidence that the investment has since been impaired.
- Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market, and comprise
trade and other receivables, other financial assets and cash and cash
equivalents, all of which are initially recognised at fair value and are
subsequently measured at amortised cost using the effective interest rate
method. This means that, in cases where repayment of the loan or other
receivable is in doubt, due to the commercial performance of the recipient,
the value of that loan may be impaired to zero in the
accounts.
They are included in current assets, except for maturity greater than 12
months after the end of the reporting period, whereby these are classified as
non-current assets.
- Trade receivables
Trade receivables are initially recognised at fair value which is normally the
invoice value in short term receivables. Thereafter the receivables are
carried at amortised cost. Provision is made where there is objective evidence
that a balance will not be recovered in full in accordance with the
instrument's original terms. An impairment calculation is based on a
comparison between the carrying amount and the net present value of expected
future cash flows, discounted by the original effective rate. It can be
concluded that any provision calculated would not have material impact on the
financial statements due to the minimal amount of receivables and a formal
policy will be implemented when necessary.
- Cash and cash equivalents
Cash and cash equivalents in the consolidated cashflow comprise cash in hand
and short term bank deposits.
(l) Financial liabilities
Financial liabilities, being trade and other payables, are initially
recognised at fair value and are subsequently carried at amortised cost.
(m) The Company's investment in its subsidiaries
In the Company's accounts, investment in its subsidiary undertakings are
stated at cost less any provision for impairment.
(n) Equity
Financial instruments issued by the Group are treated as equity if the holders
have only a residual interest in the Group's assets after deducting all
liabilities. The Group considers its capital to comprise its share capital,
share premium, merger reserve and retained earnings.
· Share premium - amount subscribed for share capital in excess of
nominal value, net of directly attributable issue costs;
· Retained earnings - cumulative net gains and losses recognised in
the consolidated statement of comprehensive income net of associated
share-based payments credits;
· Share based payment reserve - amount generated from the award of
share options and warranties.
The Group's capital management objectives are:
· to ensure the Group's ability to continue as a going concern;
· to ensure a sufficient cash balance is maintained; and
· to maximise returns to shareholders.
The Group continuously monitors rolling cash flow forecasts to ensure
sufficient cash is available for anticipated cash requirements. The Group may
issue new shares or realise investments to meet such requirements. To date the
Group has negligible borrowings and does not pay a dividend. Investments made
by the Group are subject to detailed selection criteria and are monitored
carefully by the Board. The group considers that it has appropriately managed
its capital requirements during the year.
There has been no change in capital management objectives, policies and
procedures from the previous year.
(o) Share-based payments
The cost of equity-settled transactions with employees is measured by
reference to the fair value of the instruments issued at the date at which
they are granted and is recognised as an expense over the vesting period,
which ends on the date on which the relevant employees become fully entitled
to the award. Fair value is determined using an appropriate pricing model.
In valuing equity-settled transactions, no account is taken of any vesting
conditions, other than conditions linked to the price of the shares of the
Company (market conditions).
No expense is recognised for awards that do not ultimately vest, except for
awards where vesting is conditional upon a market condition, which are treated
as vesting irrespective of whether or not the market condition is satisfied,
provided that all other performance conditions are satisfied.
At each reporting date before vesting, the cumulative expense is calculated,
representing the extent to which the vesting period has expired and
management's best estimate of the achievement or otherwise of non-market
conditions and of the number of equity instruments that will ultimately vest
or, in the case of an instrument subject to a market condition, be treated as
vesting as described above. The movement in cumulative expense since the
previous reporting date is recognised in the statement of comprehensive
income, with a corresponding entry in equity.
Where the terms of an equity-settled award are modified or a new award is
designated as replacing a cancelled or settled award, the cost based on the
original award terms continues to be recognised over the original vesting
period. In addition, any expense is recognised over the remainder of the new
vesting period for the incremental fair value of any modification, based on
the difference between the fair value of the original award and the fair value
of the modified award, both as measured on the date of the modification. No
reduction is recognised if this difference is negative.
Where an equity-settled award is cancelled, it is treated as if it had vested
on the date of cancellation, and any cost not yet recognised in the statement
of comprehensive income for the award is expensed immediately. Any
compensation paid up to the fair value of the award at the cancellation or
settlement date is deducted from equity, with any excess over fair value being
treated as an expense in the statement of comprehensive income.
(p) Pensions
The Group makes defined pension contributions to certain employees of the
group. The assets of the scheme are held separately from those of the Group in
independently administered funds. The Group has no further obligations once
the contributions have been paid. The contributions are recognised as employee
benefits expenses when they are due.
(q) Foreign currency
Foreign currency exchange gains and losses resulting from the remeasurement of
monetary items denominated in foreign currency at the year-end exchange rates
are recognised in the statement of comprehensive income. Foreign currency
transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions. Foreign exchange gains and
losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income statement.
Foreign exchange gains and losses are presented in the income statement within
'finance income or costs.'
(r) Earnings per share
Basic earnings per share is calculated by dividing:
· the profit attributable to owners of the company, excluding any
costs of servicing equity other than ordinary shares;
· by the weighted average number of ordinary shares outstanding
during the financial year, adjusted for bonus elements in ordinary shares
issued during the year and excluding treasury shares (note 18).
Diluted earnings per share adjusts the figures used in the determination of
basic earnings per share to take into account:
· the after-income tax effect of interest and other financing costs
associated with dilutive potential ordinary shares; and
· the weighted average number of additional ordinary shares that
would have been outstanding, assuming the conversion of all dilutive potential
ordinary shares.
(s) Segmental Reporting
The board only considers there to be one segment in the group and therefore
there is no note included for segmental reporting.
3 Revenue from contracts with customers
Revenue is attributable to the principal activities of the Group. In 2024 and
2023, all revenue arose within the United Kingdom.
Group Group
2024 2023
£ £
Investment management 40,000 15,000
Monitoring fees 3,600 3,600
Consultancy 17,296 32,302
60,896 50,902
Of the revenue stated above, £20,770 (2023: £32,302) related to The Lachesis
Seed Fund Limited Partnership.
The group derives revenue from the transfer of goods and services over time
and at a point in time in the following major product lines:
Investment management Monitoring fee Consultancy Total
2024
Timing of revenue recognition
At a point in time 3,600 - 3,600
Over time 40,000 - 17,296 57,296
40,000 3,600 17,296 60,896
2023
Timing of revenue recognition
At a point in time 3,600 - 3,600
Over time 15,000 - 32,302 47,302
15,000 3,600 32,302 50,902
4 Finance income
Group Group
2024 2023
£ £
Bank interest receivable 16,896 21,003
16,896 21,003
5 Employee benefits expense
Company Company Group Group
2024 2023 2024 2023
£ £ £ £
Salaries 427,451 306,481 427,451 306,481
Social security costs 32,018 24,568 32,018 24,568
Pension costs 7,780 5,874 7,780 5,874
Share based payments 126,985 219,223 126,985 219,223
594,234 556,146 594,234 556,146
The average number of persons (including directors) employed by the Group
during the year was 5 (2023: 4), all of whom were involved in management and
administrative activities. The average number of persons (including directors)
employed by the company during the year was 4 (2023: 3) The remuneration of
the directors, is set out below in aggregate:
2024 2023
£ £
Short-term employee benefits 347,452 299,814
Social security costs 22,232 23,753
369,684 323,567
Post-employment benefit 5,380 5,674
Share-based payments 126,985 219,223
502,049 548,464
The figures in this note includes social security costs. Further information
about the remuneration of individual directors is provided in the Directors'
Remuneration Report.
Remuneration to the highest paid director was £148,521 (2023: £135,096).
This figure excludes social security costs.
6 Finance costs
Group Group
2024 2023
£ £
Bank charges 2,795 2,154
7 Expenses by nature
Group Group
The following have been charged in arriving at operating loss: 2024 2023
£ £
Depreciation and amortisation 310 378
Auditor's remuneration: 63,450 56,700
Audit services
- Fees payable for the audit of the consolidation and the parent company
accounts
Legal, professional and consultancy costs 42,986 49,605
Stockbroker costs 65,525 76,250
Other expenses 106,581 100,423
Total 278,852 283,356
8 Tax on profit on ordinary activities
No liability to UK corporation tax arose on ordinary activities for the year
ended 31 March 2024 or for the year ended 31 March 2023.
Group Group
2024 2023
Reconciliation of total tax: £ £
(Loss)/ profit before tax (8,193,316) 2,358,490
Tax at the statutory rate of 25% (2023: 19%) (2,048,329) 448,113
Disallowed expenses 431,762 43,288
Capital allowances in excess of depreciation 78 72
Unrealised loss/ (gain) on the fair value movement of investments 1,468,112 (561,705)
Share scheme deduction - (3,047)
Other non-reversing timing differences (944,050) 773,652
Tax losses carried forward 148,377 73,279
Total tax reported in the statement of comprehensive income (944,050) 773,652
The Group has potential cumulative unrecognised deferred tax assets in respect of:
· excess management expenses of £1,430,874 (2023: £843,506)
arising from Braveheart Investment Group plc; and
· excess management expenses of £559,199 (2023: £558,768) arising
from Caledonia Portfolio Realisations Limited.
· excess trading loss of £12,564 (2023: £5,701) arising from The
Ridings Early Growth Investment Company Limited.
From April 2023, the corporation tax rate increased from 19% to 25%.
No deferred tax assets have been recognised in respect of these amounts as it
is uncertain that there will be suitable taxable profits from which the future
reversal of the deferred tax could be deducted.
9 Earnings per share
Basic earnings per share has been calculated by dividing the profit
attributable to equity holders of the parent by the weighted average number of
ordinary shares in issue during the year.
The calculations of profit per share are based on the following profit and
numbers of shares in issue:
2024 2023
£ £
(Loss)/ profit for the year (7,249,266) 1,584,838
Weighted average number of ordinary shares in issue: No. No.
For basic profit per ordinary share 63,723,489 59,104,950
Potentially dilutive ordinary shares - -
For diluted earnings per ordinary share 63,723,489 59,104,950
Earnings per share Pence Pence
- basic 9 (11.38) 2.68
- diluted 9 (11.38) 2.68
Dilutive earnings per share adjusts for share options granted where the
exercise price is less than the average price of the ordinary shares during
the period. At the current year end there were Nil (2023: Nil) potentially
dilutive ordinary shares.
The diluted earnings per Ordinary Share is calculated by adjusting the
weighted average number of Ordinary shares outstanding to consider the impact
of options, warrants and other dilutive securities.
10 Investments at fair value through profit or loss
Level 1 Level 2 Level 3
Equity investments in quoted companies Equity investments in unquoted companies Debt investments in unquoted companies Equity investments in unquoted companies Debt investments in unquoted companies Total
GROUP £ £ £ £ £ £
At 1 April 2022 1,133,854 - - 3,803,301 - 4,937,155
Additions at Cost 1,177,139 - - 650,656 - 1,827,795
Disposals at Cost (257,490) - - - - (257,490)
Amount owed to creditors - - - (6,801) - (6,801)
Change in Fair Value (41,626) - - 2,999,291 - 2,957,665
At 1 April 2023 2,011,877 - - 7,446,447 - 9,458,324
Additions at Cost 382,516 - - 150,000 - 532,516
Disposals at Cost (296,384) - - (912,272) - (1,208,656)
Amount owed to creditors - - - (24,201) - (24,201)
Change in Fair Value (483,914) - - (1,773,379) - (2,257,293)
Impairment - - - (4,847,349) - (4,847,349)
At 31 March 2024 1,614,095 - - 39,246 - 1,653,341
Included in the balance above are investments that would be owed to the
British Business Bank through the Revenue Share Agreement. At the year end, an
amount of £41 would be due to the British Business Bank on disposal. This
liability is shown in the accounts within other creditors.
Level 1 Level 2 Level 3
Equity investments in quoted companies Equity investments in unquoted companies Debt investments in unquoted companies Equity investments in unquoted companies Debt investments in unquoted companies Total
COMPANY £ £ £ £ £ £
At 1 April 2022 1,133,854 - - 3,758,693 - 4,892,547
Additions at Cost 1,177,139 - - 650,717 - 1,827,856
Disposal at Cost (257,490) - - - - (257,490)
Change in Fair Value (41,626) - - 3,002,195 - 2,960,569
At 31 March 2023 2,011,877 - - 7,411,605 - 9,423,482
Additions at Cost 382,516 - - 150,000 - 532,516
Disposal at Cost (296,384) - - (912,272) - (1,208,656)
Change in Fair Value (483,914) - - (1,762,756) - (2,246,670)
Impairment - - - (4,847,349) - (4,847,349)
At 31 March 2024 1,614,095 - - 39,228 - 1,653,323
As at 31 March 2024, the group total value of investments in companies was
£1,653,341 (2023: £9,458,324).
The group total change in fair value during the year was a loss of £2,257,293
(2023: profit £2,957,665). There were impairments to investments in the year
of £4,847,349 (2023: £Nil).
Investments, which is made up of equity investments, are designated on initial
recognition as financial assets at fair value through profit or loss. This
measurement basis is consistent with the fact that the Group's performance in
respect of its portfolio investments is evaluated on a fair value basis in
accordance with an established investment strategy. When investments are
recognised initially, they are measured at fair value.
After initial recognition the fair value of listed investments is determined
by reference to bid prices at the close of business on the reporting date.
Unlisted equity investments are measured at fair value by the directors in
compliance with the principles of the International Private Equity and Venture
Capital Guidelines, updated and effective December 2015, as recommended by the
European Venture Capital Association. The fair value of unlisted equity
investments is determined using the most appropriate of the valuation
methodologies set out in the guidelines. These include using recent arm's
length market transactions; reference to the current market value of another
instrument, which is substantially the same; earnings or profit multiples;
indicative offers; discounted cash flow analysis and pricing models.
The Group classifies its investments using a fair value hierarchy.
Classification within the hierarchy has been determined on the basis of the
lowest level input that is significant to the fair value measurement of the
relevant investment as follows:
· Level 1 - valued using quoted prices in active markets for
identical assets;
· Level 2 - valued by reference to valuation techniques using
observable inputs other than quoted prices included within Level 1; and
· Level 3 - valued by reference to valuation techniques using
inputs that are not based on observable market data.
The fair values of quoted investments are based on bid prices in an active
market at the reporting date. All unquoted investments have been classified as
Level 3 within the fair value hierarchy, their respective valuations having
been calculated using a number of valuation techniques and assumptions,
notwithstanding that the basis of the valuation methodology preferred by the
Group is 'price of most recent investment'. To reflect the potential impact
of alternative assumptions and a lack of liquidity in these holdings, a
discount has been applied to all Level 3 valuations. When using the DCF
valuation method, reasonably possible alternative assumptions could have a
material effect on the fair valuation of investments.
The methodologies used in the year for level 3 investments are broken down as
follows:
Methodology Description Inputs Adjustments % of portfolio valued on this basis
Fund Raising Used for unquoted investments where there has been a funding round, generally The price of the most recent investment A liquidity discount is applied, typically 15%. Where last funding round is 100%
within the last twelve months greater than twelve months then further discounts ranging between 0% and 100%
are applied.
Debt/Loan notes Loan investments The fair value of debt investment is deemed to be cost less any impairment Impairment provision if deemed necessary 0%
provision
Discounted cash flow and revenue multiples Used for companies with long-term cash flows and having comparable Long term cash flows are discounted at a rate considered appropriate for the A liquidity discount is applied, typically 20% 0.0%
transactions/ companies in the listed segment business, typically 25%. Revenue multiples are typically 5 to 10 times of
forward looking revenue.
Change in fair value in the year: Group Group
2024 2023
£ £
Fair value gains 131,150 4,722,538
Fair value losses (2,388,443) (1,764,873)
(2,257,293) 2,957,665
The gain in the year came from the uplift of the valuation in Autins. The main
reasons for the fair value losses were due to the disposal in Phase Focus
Holdings (£1,740,000) and the reduction in value in Aukett (£506,000),
Imaging Scan (£66,000), Velocity Composites (£44,000), Ryboquin (£3,000)
and Dimensional Imaging (£29,000).
Details of investments where the nominal value of the holding in the
undertaking is 20% or more of any class of share are as follows:
Caledonia Portfolio Realisations Limited ('CPR') holds a 20% aggregate
shareholding in Verbalis Limited ('Verbalis'), a design and production of
automated language translation systems company. Neither CPR nor the Company is
represented on the Board or within management of Verbalis and in the opinion
of the directors, this shareholding does not entitle the Company to exert a
significant or dominant influence over Verbalis. The carrying value of
Verbalis is £nil (2023: £nil).
The Company holds a 100% aggregate holding in Paraytec Limited, which develops
high performance specialist detectors for the analytical and life sciences
instrumentation market. The valuation of Paraytec has been reviewed and, for
the reasons are detailed in the CEO statement the valuation of Braveheart's
investment has been impaired to zero. The Company is represented on the board.
The carrying value of Paraytec £Nil (2023: £3,038,625).
The Company holds a 86% aggregate holding in Kirkstall Limited, a
biotechnology company which developed a system of interconnected chambers for
cell and tissue culture in laboratories. The valuation of Kirkstall has been
reviewed and, for the reasons are detailed in the CEO statement the valuation
of Braveheart's investment has been impaired to zero. The Company is
represented on the Board. The carrying value of Kirkstall is £Nil (2023:
£1,674,845).
The Company holds a 38% aggregate holding on Sentinel Medical Limited, this
company is developing a point of care diagnostic device for bladder cancer
detection and monitoring. The Company is represented on the Board and in the
opinion of the directors, this shareholding nor the representative entitles
the Company to exert a significant or dominant influence over Sentinel. The
carrying value of Sentinel is £33 (2023: £33).
The Company holds a 38.65% aggregate holding in KDS Architecture Limited, a
company which provides architectural services. The Company is not represented
on the Board or within management of KDS Architecture and in the opinion of
the directors, this shareholding does not entitle the Company to exert a
significant or dominant influence over KDS Architecture. The carrying value of
KDS Architecture is £Nil (2023: £76,074).
The registered addresses for these entities are as follows:
Verbalis Limited Frostineb
Cottage, Fala, Pathhead, Midlothian, Scotland, EH37 5TB
Paraytec Limited York House,
Outgang Lane, Osbaldwick, York, England, YO19 5UP
Kirkstall Limited York
House, Outgang Lane, Osbaldwick, York, England, YO19 5UP
Sentinel Medical Limited York House, Outgang Lane,
Osbaldwick, York, England, YO19 5UP
KDS Architecture Limited 42 Lytton Road, Barnet,
England, EN5 5BY
11 Investment in subsidiaries
The Company has the following interests in subsidiary undertakings:
Name Country of Incorporation Nature of Business % Interest
Caledonia Portfolio Realisations Limited (i) Scotland Investment management 100%
Braveheart Academic Seed Funding GP Limited (i) England Investment management 100%
Ridings Holdings Limited (i) England Investment management 100%
The Ridings Early Growth Investment Company Limited (ii) England Investment management 100%
Paraytec Limited (iii) England Development of high performance specialist detectors 100%
Kirkstall Limited (iii) England Biotechnology 86%
Combrook Holdings England Investment management 60%
(i) Direct subsidiary of Braveheart Investment Group plc
(ii) Indirect subsidiary of Braveheart Investment Group plc
(iii) Not consolidated
Group entities act as General Partner to, and have an interest in, the
following limited partnerships:
Name Place of % Interest
Business
Lachesis Seed Fund England 0%
The registered addresses for the subsidiary undertakings are as follows:
Caledonia Portfolio Realisations
Limited
1 George Square, Glasgow, Scotland, G2 1AL
Braveheart Academic Seed Funding GP
Limited One
Fleet Place, London, EC4M 7WS
Ridings Holdings
Limited
One Fleet Place, London, EC4M 7WS
The Ridings Early Growth Investment Company Limited
One Fleet Place, London, EC4M 7WS
Paraytec
Limited
York House, Outgang Lane, Osbaldwick, York, North Yorkshire, YO19 5UP
Kirkstall
Limited
York House, Outgang Lane, Osbaldwick, York, North Yorkshire, YO19 5UP
Combrook Holdings Limited
Old Linen Court, 83-85 Shambles Street,
Barnsley, South Yorkshire, England,
S70 2SB
12 Property, plant and equipment
GROUP Furniture, fittings and equipment Total
£ £
Cost - At 31 March 2022 1,135 1,135
Additions - -
Cost - At 31 March 2023 1,135 1,135
Additions - -
Cost - At 31 March 2024 1,135 1,135
Depreciation - At 31 March 2022 339 339
Depreciation 378 378
Depreciation - 31 March 2023 717 717
Depreciation 310 310
Depreciation - 31 March 2024 1,027 1,027
Net Book Value - At 1 April 2024 108 108
Net Book Value - At 1 April 2023 418 418
COMPANY Furniture, fittings and equipment Total
£ £
Cost - At 31 March 2022 1,135 1,135
Additions - -
Cost - At 31 March 2023 1,135 1,135
Additions - -
Cost - At 31 March 2024 1,135 1,135
Depreciation - 31 March 2022 339 339
Depreciation 378 378
Depreciation - 31 March 2023 717 717
Depreciation 310 310
Depreciation - 31 March 2023 1,027 1,027
Net Book Value - At 1 April 2024 108 108
Net Book Value - At 1 April 2023 418 418
13 Debtors due in over one year
Group Group Company Company
2024 2023 2024 2023
£ £ £ £
Amounts due from investment companies - 1,155,200 - 1,155,200
- 1,155,200 - 1,155,200
During the year, the Board had concluded that Paraytec's short-term prospects
have reduced and it no longer believes that Braveheart's outstanding loans to
Paraytec will be repaid in the short-term. A decision has therefore been made
to write down the value of the Company's loan receivable in Paraytec to
£Nil.
14 Trade and other receivables
Group Group Company Company
2024 2023 2024 2023
£ £ £ £
Trade receivables 31,899 31,126 - 2,471
Prepayments and accrued income 73,808 22,632 73,808 22,632
Amounts due from related parties - - 5,331 111,132
Amounts due from investment companies - 10,752 - 10,752
105,707 64,510 79,139 146,987
As trade receivables are generally of short-term maturity, the directors
consider the carrying amounts to approximate their fair value. All receivables
are non-interest bearing and unsecured.
15 Cash and cash equivalents
Group Group Company Company
2024 2023 2024 2023
£ £ £ £
Cash at bank and on hand 1,742,315 934,861 1,736,428 684,532
Cash balances are held with HSBC Bank plc and earn interest at floating rates
based on daily bank deposit rates.
16 Trade and other payables
Group Group Company Company
2024 2023 2024 2023
£ £ £ £
Trade payables 8,862 15,833 8,862 15,833
Amounts due to related parties - - 168,968 30,472
Other taxes and social security 15,061 32,093 13,994 30,968
Accruals and other creditors 80,222 101,730 73,977 71,284
104,145 149,656 265,801 148,557
Due to the short-term maturity of trade payables, the directors consider the
carrying amounts to approximate their fair value. Trade payables are
non-interest bearing and are normally settled on 30-day terms.
17 Deferred tax
The following are the major deferred tax liabilities and assets recognised by
the company and movements thereon:
Balances Group Group Company Company
2024 2023 2024 2023
£ £ £ £
Non current asset investment timing differences - 944,050 - 944,050
- 944,050 - 944,050
Movements in the year
Group Company
£ £
Liability at 1 April 2023 944,050 944,050
Charge to profit and loss (944,050) (944,050)
Liability at 31 March 2024 - -
All deferred tax liabilities will be settled, in greater than one year.
18 Share capital
2024 2023
£ £
Authorised
68,674,431 ordinary shares of 2 pence each 1,373,489 1,373,489
(2023: 68,674,431 ordinary shares of 2 pence each)
Allotted, called up and fully paid
63,723,489 ordinary shares of 2 pence each 1,274,469 1,274,469
(2023: 63,723,489 ordinary shares of 2 pence each)
The Company has one class of ordinary shares. All shares carry equal voting
rights, equal rights to income and distribution of assets on liquidation or
otherwise, and no right to fixed income.
Reconciliation of movements during the year
Share Premium Share Capital
At 1 April 2023 5,370,711 1,274,469
Issue of fully paid shares - -
Cost of shares issued - -
At 31 March 2024 5,370,711 1,274,469
Reconciliation of share movements during the year
At 1 April 2023 63,723,489
Issue of fully paid shares -
At 31 March 2024 63,723,489
19 Share-based payments
Share Option Scheme
On 17 December 2020, the company created a share scheme in order to provide a
long term incentive plan for the directors, employees and consultants of the
group "the Share Option Plan".
2020 Award
On 17 December 2020 a number of directors, employees and consultants were
awarded 2,350,000 shares at an exercise price of £0.17. There were no
conditions attached to these and they expire 10 years from the date of grant.
The share based payment was worked out on the Black Scholes model. The
following information is relevant in the determination of the fair value of
options granted under the 2020 award.
Grant
date
17/12/2020
Number of
awards
2,350,000
Share
price
£0.17
Exercise
price
£0.17
Expected dividend
yield
-
Expected
volatility
171.74%
Risk free
rate
0.40%
Vesting
period
10 years
Expected life (from date of
grant) 1.5 years
The share based payment charge for the year ended 31 March 2024 was £Nil
(2023: £Nil).
2021 Award
On 13 October 2021 two directors were awarded 3,500,000 shares at an exercise
price of £0.315. The options vest on 14 October 2022 and are exercisable up
to 14 October 2031. The options are also subject to performance criteria
under which the options can only be exercised if the average share price over
a 30 consecutive calendar day period has been 20 per cent. higher than the
option exercise price. The share based payment was worked out on the Monte
Carlo model. The following information is relevant in the determination of the
fair value of options granted under the 2020 award.
Grant
date
14/10/2021
Number of
awards
3,500,000
Share
price
£0.315
Exercise
price
£0.315
Expected dividend
yield
-
Expected
volatility
69.27%
Risk free
rate
0.372%
Vesting
period
10 years
Expected life (from date of
grant) 1 year
On 9 May 2022, 1,500,000 were cancelled and replaced with shares under new
conditions. The exercise price of the New Options is 14p, being the closing
mid-market price of an Ordinary Share on 6 May 2022, the latest practicable
date prior to the date of grant. The New Options will vest from 9 May
2023 and be exercisable up to 9 May 2032, subject to continued employment
and an additional performance related criteria that the closing price of an
Ordinary Share must exceed 31.5p, being the exercise price of the Historic
Options, for 10 days within any period of 30 days. The share based payment was
worked out under the Monte Carlo model and didn't result in a share based
payment charge.
The share based payment charge for the year ended 31 March 2024 was £81,289
(2023: £208,645).
2023 Award
On 27 March 2023, a further 2,500,000 were granted to two board members and
could be vested over the next 12 months, once certain performance criteria
were met. As these were market related, the Monte Carlo model was used. A
further 450,000 shares were granted to two board members and one other person
not on the board. There were no performance conditions attached to these
options.
The following information is relevant in the determination of the fair value
of options granted under the 2020 award.
Shares with
options Shares
without options
Grant
date
27/03/2023
27/03/2023
Number of
awards
2,500,000
450,000
Share
price
£0.078
£0.078
Exercise
price
£0.078
£0.078
Expected dividend
yield
-
-
Expected
volatility
50.91%
50.91%
Risk free
rate
5.10%
5.10%
Vesting
period
10
years
10 years
Expected life (from date of
grant) 1.5
years
1.5 years
The share based payment charge for the year ended 31 March 2024 was £45,696
(2023: £10,578)
The total share based payment charge for all schemes in the year was £126,985
(2023: £219,223)
Share Options arising from the New Scheme
The current year movement in Share Options is summarised below:
Date of Grant At 1 No of Options granted in year No of Options exercised in year No of Options lapsed in year At 31 March 2024 Exercise Price Date first Expiry date
April exercisable
2023
Employment Options granted
17 Dec 2020 1,096,000 - - - 1,096,000 £0.17 17 Dec 2020 16 Dec 2030
14 Oct 2021 2,976,192 - - - 2,976,192 £0.315 14 Oct 2022 14 Oct 2031
27 Mar 2023 2,900,000 - - - 2,900,000 £0.0775 27 Mar 2024 27 Mar 2033
27 Mar 2023 50,000 - - - 50,000 £0.0775 27 Mar 2023 27 Mar 2033
7,022,192 - - - 7,022,192
The weighted average price was £0.19 (2023: £0.19). At the year end, the
number of exercisable shares were 7,022,192 (2023: 7,022,192) with a weighted
life of 8.02 years (2023: 9.02 years).
The previous year movement in Share Options is summarised below:
Date of Grant At 1 No of Options granted in year No of Options exercised in year No of Options lapsed in year At 31 March 2023 Exercise Price Date first Expiry date
April exercisable
2022
Employment Options granted
17 Dec 2020 1,096,000 - - - 1,096,000 £0.17 17 Dec 2020 16 Dec 2030
14 Oct 2021 3,500,000 - (523,808) 2,976,192 £0.315 14 Oct 2022 14 Oct 2031
27 Mar 2023 - 2,900,000 - - 2,900,000 £0.0775 27 Mar 2024 27 Mar 2033
27 Mar 2023 - 50,000 - - 50,000 £0.0775 27 Mar 2023 27 Mar 2033
4,596,000 2,950,000 - (523,808) 7,022,192
The charge made in respect of the fair value of options granted was:
2024 2023
£ £
Expense arising from equity-settled share-based payments transactions 126,985 219,223
20 Related party disclosures
Trade and other receivables (note 14) include the following amounts due from
subsidiary undertakings:
2024 2023
£ £
The Ridings Early Growth Investment Company Limited - 105,504
Braveheart Academic Seed Funding 5,331 5,628
5,331 111,132
Trade and other payables (note 16) include the following amounts due to
subsidiary undertakings:
2024 2023
£ £
Ridings Holdings Limited 119,412 30,412
Caledonia Portfolio Realisations 15,000 -
The Ridings Early Growth Investment Company Limited 34,496 -
Combrook Holdings Limited 60 60
168,968 30,472
All above amounts are unsecured, interest free and repayable on demand.
Transactions between the Company and its subsidiaries are eliminated on
consolidation.
The Directors have agreed that, while amounts due to Group companies are
included in trade and other payables due within one year as they are
technically payable on demand, payment of these amounts will not be required
unless the company is able to do so.
During the year, Braveheart charged the Ridings Early Growth Investment
Company Ltd £Nil (2023: £Nil) in respect of a management charge. During the
year, Braveheart Investment Group Plc generated revenue of £17,296 (2023:
£32,302) from The Lachesis Seed Fund Limited Partnership, a General Partner
that the group have an interest in.
During the year, Braveheart charged Kirkstall Limited £26,667 (2023:
£15,000) in respect of a management charge. The balance owed to Braveheart
at year end was £164,354 (2023: £10,752) although this was impaired to £Nil
at the year end. During the year, the Board had concluded that Kirkstall's
short-term prospects have reduced and it no longer believes that Braveheart's
outstanding loans to Kirkstall will be repaid in the short-term. A decision
has therefore been made to write down the value of the Company's loan
receivable in Kirkstall to £Nil.
During the year, Braveheart charged Paraytec Limited £13,333 (2023: £Nil) in
respect of a management charge. At the year end, Paraytec owed Braveheart
£1,438,200 (2023: £1,155,200). During the year, the Board had concluded that
Paraytec's short-term prospects have reduced and it no longer believes that
Braveheart's outstanding loans to Paraytec will be repaid in the short-term. A
decision has therefore been made to write down the value of the Company's loan
receivable in Paraytec to £Nil.
Non-Executive Director, Qu Li, is also a Director and major shareholder of
Agile Impact Capital Ltd. During the year Agile Capital Impact Ltd charged the
Braveheart Investment Group plc a total of £35,118 (2023: £31,750) in
respect of services provided by Dr Li. The balance outstanding at year end was
£Nil (2023: £3,300).
21 Financial risk management objectives and policies (Group and Company)
The Group and Company's financial instruments comprise investments designated
at fair value through profit or loss, cash and various items such as trade and
other receivables, and trade and other payables, all of which arise directly
from its normal operations.
The carrying values of all of the Group and Company's financial instruments
approximate their fair values at 31 March 2024 and 31 March 2023. The
Accounting Policies described in note 2 outlines how the financial instruments
are measured.
An analysis of the statement of financial position, relevant to an analysis of
risk management, is as follows:
Financial instruments
Designated at fair value though profit or loss Loans and receivables at amortised cost Non-financial assets & financial assets outside the scope of IFRS 9 Total
£ £ £ £
GROUP
2024
Investments 1,653,341 - - 1,653,341
Trade and other receivables - 20,071 85,636 105,707
Cash and cash equivalents - 1,742,315 - 1,742,315
1,653,341 1,762,386 85,636 3,501,363
2023
Investments 9,458,324 - - 9,458,324
Trade and other receivables - 1,197,078 22,632 1,219,710
Cash and cash equivalents - 934,861 - 934,861
9,458,324 2,131,939 22,632 11,612,895
COMPANY
2024
Investments 1,653,323 - - 1,653,323
Trade and other receivables - 20,071 59,068 79,139
Cash and cash equivalents - 1,736,428 - 1,736,428
1,653,323 1,756,499 59,068 3,468,890
2023
Investments 9,423,482 - - 9,423,482
Trade and other receivables - 1,279,555 22,632 1,302,187
Cash and cash equivalents - 684,532 - 684,532
9,423,482 1,964,087 22,632 11,410,201
21 Financial risk management objectives and policies (Group and Company)
(continued)
Other financial liabilities at amortised cost Financial liabilities at fair value Total
£ £ £
GROUP
2024
Trade and other payables 104,145 - 104,145
Borrowings - - -
104,145 - 104,145
2023
Trade and other payables 149,656 - 149,656
Borrowings - - -
149,656 - 149,656
COMPANY
2024
Trade and other payables 265,801 - 265,801
265,801 - 265,801
2023
Trade and other payables 148,557 - 148,557
148,557 - 148,557
One of the Group's principal objectives and policies is to achieve income and
capital gains through investment in equity shares in a portfolio of UK
companies, the majority of which are unlisted.
Through its normal operations the Group is exposed to a number of financial
risks, namely credit risk, liquidity risk and market risk. The Board reviews
and agrees policies for managing each of these risks as summarised below.
Credit risk
Credit risk arises from the exposure to the risk of loss if the counterparty
fails to perform its financial obligations to the Group. The Group's financial
assets predominantly comprise investments designated at fair value through
profit or loss, and cash. In accordance with its Investment Policy, the
Group seeks to manage credit risk related to its investments through detailed
investment selection criteria and diversification and by placing limits on
individual investments. In accordance with its Treasury Policy, the Group
seeks to mitigate this risk on cash by placing funds only with banks with high
credit-ratings assigned by international credit-rating agencies.
The Group has no significant concentration of credit risk within any of its
other financial assets. Included within such other financial assets are
balances which are past due at the reporting date for which the Group has not
provided as there has not been a significant change in their credit quality
and which the Group believes are fully recoverable. The age profile of the
Group and Company's other financial assets is as follows:
Neither past due nor impaired Less than 3 months 3 to 12 months More than 1 year Total
£ £ £ £ £
GROUP
2024
Trade receivables 8,199 - 1,800 21,900 31,899
Other receivables 73,808 - - - 73,808
82,007 - 1,800 21,900 105,707
2023
Trade receivables 5,355 5,071 2,400 18,300 31,126
Other receivables 1,188,584 - - - 1,188,584
1,193,939 5,071 2,400 18,300 1,219,710
COMPANY
2024
Trade receivables - - - - -
Other receivables 73,808 - - - 73,808
Amounts due from related parties 5,331 - - - 5,331
Amounts due from investment companies - - - - -
79,139 - - - 79,139
2023
Trade receivables 2,471 - - - 2,471
Other receivables 22,632 - - - 22,632
Amounts due from related parties 111,132 - - - 111,132
Amounts due from investment companies 1,165,952 - - - 1,165,952
1,302,187 - - - 1,302,187
The Group considers its exposure to credit risk is negligible. The Group's
bank balance of £1,742,315 at the year-end is held in a bank with a high
credit rating and the trade and other receivables of £105,707 are closely
monitored as part of the credit control process.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its
financial obligations as they fall due.
The Group seeks to manage its liquidity risk by holding sufficient cash
reserves to meet foreseeable needs, and by investing cash assets safely. The
Group continuously monitors rolling cash flow forecasts to ensure sufficient
cash is available for anticipated cash requirements and, in accordance with
its Treasury Policy, the Group only invests cash assets with reputable
counterparties.
The maturity profile of the Group and Company's financial liabilities is as
follows:
On demand Less than 3 months 3 to 12 months More than 1 year Total
£ £ £ £ £
GROUP
2024
Trade and other payables 102,782 925 438 - 104,145
102,782 925 438 - 104,145
2023
Trade and other payables 144,362 4,159 1,135 - 149,656
144,362 4,159 1,135 - 149,656
COMPANY
2024
Trade and other payables 95,470 925 438 - 96,833
Amounts due to related parties 168,968 - - - 168,968
264,438 925 438 - 265,801
2023
Trade and other payables 112,791 4,159 1,135 - 118,085
Amounts due to related parties 30,472 - - - 30,472
143,263 4,159 1,135 - 148,557
Market Risk
Market risk is the risk that changes in market conditions such as equity
prices, interest rates and foreign exchange rates will have an adverse impact
on the Group's financial position or results.
Equity price risk
The Group is exposed to equity price risk due to uncertainties about future
values of its portfolio of listed and unlisted equity investments. The Group
manages such equity price risk in a similar way to credit risk through
detailed investment selection criteria and diversification and by placing
limits on individual investments. Investments are monitored carefully and the
Board reviews the portfolio on a regular basis.
Interest rate risk
The Group finances its operations through equity funding as opposed to debt
and therefore minimises its exposure to interest rate risks. The Group and
Company's financial instruments are non-interest bearing, with the exception
of loan notes which attract fixed rate interest, and cash balances which
attract variable interest rates determined with reference to the bank interest
rate.
The interest rate profile of the Group and Company's financial instruments is
as follows:
Fixed Rate Variable Rate Interest free Total
GROUP £ £ £ £
2024
Financial assets
Investments: equity - - 1,653,341 1,653,341
Cash and cash equivalents - 1,742,315 - 1,742,315
Other financial assets - - 105,707 105,707
- 1,742,315 1,759,048 3,501,363
Financial liabilities
Other financial liabilities - - 104,145 104,145
- - 104,145 104,145
2023
Financial assets
Investments: equity - - 9,458,324 9,458,324
Cash and cash equivalents - 934,861 - 934,861
Other financial assets - - 1,219,710 1,219,710
- 934,861 10,678,034 11,612,895
Financial liabilities
Other financial liabilities - - 149,656 149,656
- - 149,656 149,656
Interest rate risk
Fixed Rate Variable Rate Interest free Total
COMPANY £ £ £ £
2024
Financial assets
Investments: equity - - 1,653,323 1,653,323
Cash and cash equivalents - 1,736,428 - 1,736,428
Other financial assets - - 79,139 79,139
- 1,736,428 1,732,462 3,468,890
Financial liabilities
Other financial liabilities - - 265,801 265,801
- - 265,801 265,801
2023
Financial assets
Investments: equity - - 9,423,482 9,423,482
Cash and cash equivalents - 684,532 - 684,532
Other financial assets - - 1,302,187 1,302,187
- 684,532 10,725,669 11,410,201
Financial liabilities
Other financial liabilities - - 148,557 148,557
- - 148,557 148,557
It is estimated that the maximum effect of a one percentage point (100 basis
points) fall in interest rates to which the Group is exposed would be a
decrease in profit before tax for the twelve months to 31 March 2024 of
£17,423 (2023: £9,349). For the company, this would be £17,364 (2023:
£6,845).
Foreign currency risk
The Group has no material exposure to foreign currency risk.
22 Ultimate controlling party
There is no ultimate controlling party.
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 (mailto:rns@lseg.com)
or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
. END FR URURRSRUNUURRecent news on Braveheart Investment
See all newsREG - Braveheart Inv Group - Result of AGM
AnnouncementREG - Braveheart Inv Group - Grant of options
AnnouncementREG - Braveheart Inv Group Autins Group PLC - Acquisition of further interest in Autins Group
AnnouncementREG - Braveheart Inv Group - Final Results and Notice of AGM
AnnouncementREG - Braveheart Inv Group - Revaluation of portfolio assets
Announcement