REG - Intuitive Invests.Gp - Interim Report
12/06/2024 07:15
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RNS Number : 0504S Intuitive Investments Group plc 12 June 2024
12 June 2024
Intuitive Investments Group plc
Interim report for the six months to 31 March 2024
Intuitive Investments Group plc (SFS: IIG) ("IIG" or the "Company"), the
closed-end investment company focussed on fast growing and high potential
opportunities in the technology, life sciences and healthcare sectors,
announces its interim financial results for the six months to 31 March 2024.
Strategic highlights
● Investment in Hui10 Inc. ("Hui10"), a technology company involved in the
digital transformation of the Chinese national lotteries, represents 95% of
IIG's balance sheet.
● Significant progress for Hui10 since investment in October 2023:
○ National agreement with China's largest travel company, Qunar, to commence
exchange of Qunar loyalty points for lottery tickets. Qunar has more than 700
million registered users with approximately 100 million active users per
month;
○ National contract with China Communications Information Co.(1.) ("CCIC") to
implement scratch card sales by deploying Hui10's UnionPay POS terminals in
all ride hailing vehicles, taxis, intercity buses, ferries and transport
terminals. CCIC manages data from 808 million taxi rides per month;
○ Lucky World has commenced its roll-out, connecting lottery shops by equipping
them with a UnionPay POS terminal; and
○ Framework cooperation agreement with China Financial Certification Authority
Co. Ltd.(2.) to provide digital security and data management for e-tickets and
online lottery sales via Hui10's technology platform on UnionPay's QuickPass,
which has a growing registered user base of over 510 million people.
Outlook
● The opportunity presented by Hui10 is truly unique; a high growth proposition,
that the Board believe can deliver significant growth in shareholder value
over the next three years.
● Hui10 is at an inflection point and we look forward to sharing updates as
Hui10 delivers firstly against its key non-financial performance measures and
in due course by sales and earnings.
Sir Nigel Rudd, Chairman, said:
"This has been a transformational period for IIG, following our investment in
Hui10, a Chinese technology company involved in the digital transformation of
the Chinese national lotteries.
Hui10 has a highly defensible business, with unique relationships, evidenced
by contractual agreements with key government and commercial partners coupled
with proprietary technology. It has taken Hui10 almost ten years to achieve
this position with significant investment in that period.
I was in China two weeks ago and saw the scale of the opportunity and the
high-quality team which has the momentum for our strategic roll-out plan.
This has only increased my confidence that Hui10 is positioned for significant
growth - and I look forward to providing further updates on progress in 2024."
Financial highlights
31 March 2024 30 September 2023 31 March 2023 30 September 2022
Net Assets £312.26 million £10.46 million £9.42 million £12.93 million
Investments £307.91 million £8.78 million £7.86 million £11.16 million
Cash £0.76 million £1.74 million £1.23 million £1.55 million
NAV per share(3.) 154.5p 120.4p 130.7p 179.5p
% Increase/(decrease) from previous period end* 28.25% (7.88)% (27.19)%
Notes
1. China Communications Information Co., is a state owned enterprise under
the Ministry of Transport and China Civil Aviation Information Corporation.
2. China Financial Certification Authority Co. Ltd., is a state owned
enterprise, under the Peoples Bank of China, owned by UnionPay and approved by
China's Ministry of Finance. The technology roll-out will use the Hui10
UnionPay smart POSLot platform via Union Pay's QuickPass.
3. Adjusted for share consolidation.
Enquiries:
Intuitive Investments Group plc www.iigplc.com (http://www.iigplc.com/)
Sir Nigel Rudd, Non-Executive Chairman Via FTI Consulting
Robert Naylor, CEO
Giles Willits, CIO
Cavendish Capital Markets Limited +44 (0) 20 7397 8900
James King / William Talkington / Daniel Balabanoff
FTI Consulting +44 (0) 20 3727 1000
Jamie Ricketts / Valerija Cymbal / Jemima Gurney IIG@fticonsulting.com
About Intuitive Investments Group plc
IIG is an investment company seeking to provide investors with exposure to a
portfolio concentrating on fast growing and / or high potential technology and
life sciences businesses operating predominantly in the UK, continental
Europe, the US and APAC, utilising the Board's experience to seek to generate
capital growth over the long term for shareholders.
Chairman and Chief Executive's Report
We are pleased to present the interim report for Intuitive Investments Group
plc, which covers the six months ended 31 March 2024.
Investment in Hui10
In October 2023, IIG invested in Hui10, a technology company involved in the
digital transformation of the Chinese national lotteries. These lotteries
play a significant role in funding public welfare projects and sports
development in China.
Hui10 is a technology company with interests in two operating businesses
involved in transforming the lottery in China, Huishi Dehua and Lucky World
and are forecasting significant growth over the next five years.
Huishi Dehua
Huishi Dehua is enabling the market expansion of the Chinese lottery, through
its Tech Platform As A Solution ("TPAAS") which is integrated into UnionPay's
national card settlement system and payment platform. Hui10 holds a 33%
share in Huishi Dehua.
Huishi Dehua is aiming to increase the number of lottery enabled terminals to
approximately three million shops and retail outlets across China, targeting
to attract over 400 million registered lottery users, with 300 million active
players, representing over 30% of the addressable market in China. As a
TPAAS the business gets a small share from the sale of each ticket and as such
this volume of participation represents a significant opportunity for value
growth. If achieved these targets would bring the China lottery
participation levels to the lower end of the range of levels that are achieved
in most established lottery markets including North America, Europe and the
UK.
Lucky World
Lucky World provides China's existing lottery shops access to a wider
fast-moving consumer goods ("FMCG") product offering, via an omni-channel
technology platform. Hui10 owns 60% of Lucky World.
Lucky World is focused on converting the majority of these to the Lucky World
format while expanding the range of fast-moving consumer goods stock keeping
units they can offer to the established customer base. Each sale generates a
margin for the shop owner and Lucky World. As such this rollout programme
represents a significant opportunity for shareholder value generation.
Significant strategic progress
Since the investment, significant progress has been made in the delivery of
Hui10's strategy, which includes:
● National agreement with China's largest travel company, Qunar, to commence
exchange of loyalty points for lottery tickets. Qunar has more than 700
million registered users with approximately 100 million active users per
month;
● National contract with China Communications Information Co., ("CCIC") a
state-owned enterprise ("SOE") under the Ministry of Transport and China Civil
Aviation Information Corp., to implement scratch card sales by deploying
Hui10's UnionPay UGO smart POSLot terminals in all ride hailing vehicles,
taxis, intercity buses, ferries and transport terminals. CCIC manages data
from 808 million taxi rides per month;
● Lucky World has commenced its roll-out, connecting to all lottery shops
equipped with a UnionPay HongBao POSLot terminal. Lucky World has also
created a franchise model for its flagship lottery stores, the first being the
capital city in Hebei province with a population of approximately 11 million
people. China Mobile and China State Farms Alliance have taken floorspace and
where global and domestic brands will be ranged; and
● Framework cooperation agreement with China Financial Certification Authority
Co. Ltd., a SOE, formed under the Peoples Bank of China, owned by UnionPay and
approved by Ministry of Finance to provide digital security and data
management for e-tickets and online financial services. This is to design
complete product and technical solutions for e-ticket and online lottery sales
using the Hui10 UnionPay smart POSLot platform via QuickPass, which has a
growing registered user base of over 510 million people.
The Board believe Hui10 has a highly defensible business, with unique
relationships, evidenced by contractual agreements with key government and
commercial partners coupled with proprietary technology. Both lotteries are
heavily regulated by the Chinese government to ensure transparency and
fairness. Hui10's technology improves both the integrity and transparency of
the lottery operations.
Hui10 has the potential to deliver strong growth in the Chinese national
lotteries respective customer bases and ultimately in lottery ticket sales.
Hui10 has taken almost ten years to achieve this unique position as well as
significant investment. Hui10 is now at an inflection point as it capitalises
on the position it has established and begins to accelerate the roll-out of
its proposition nationally.
Shareholders
We would like to welcome our new shareholders to our share register, further
to the share for share exchange to invest in Hui10. The Company's share
register now includes two strategic blue-chip leisure investors as well as now
being majority owned by Chinese investors and Chinese strategic partners.
Hui10 is in all senses a Chinese company, with Chinese management and
shareholders. We would like to also welcome our new shareholders to our share
register following recent tap issuance. The Company has been able to raise
£3.8 million by issuing new shares on five occasions at £1.566 pence per
share.
Valuation of Hui10
As the investment in Hui10 was made in October 2023, IIG uses cost as the best
indicator of fair value. We used an adjusted net asset value of £1.566 to
calculate the deal value giving a value of £299.4 million (US$365.0 million
at the exchange rate of US$1.219/£1 as at 30 October 2023).
In the future IIG's investment team will determine the value of Hui10 using
recognised valuation methodologies in accordance with the International
Private Equity and Venture Capital Association valuation guidelines.
The Company prepares its report and accounts in accordance with IFRS 9 with
the fair value of investments taken through the profit and loss account and,
as consequence, there can be a lack of transparency in underlying investments.
The Board wish to be as transparent as possible and will give both key
non-financial and financial performance measures to allow shareholders to make
an assessment of Hui10's progress.
Additional investment in Hui10
Post completion the Company has lent a further £3.8 million at an interest
rate of 6% per annum. Based on Hui10's management forecasts, Hui10 has
sufficient resources to take it to profitability, but IIG may take the
opportunity to invest further, either by loan or equity investment to
accelerate the execution of its strategy.
Other unquoted investments
The unquoted portfolio is held at the Investment Team's valuation, cost, plus
accrued interest if applicable, or the valuation of the most recent investment
round. After Hui10, Sanondaf is our largest investment. We continue to make
progress with Sanondaf, which is currently considering acquiring complementary
businesses. Momentum and CardiNor AS raised additional capital at the same
price as the Company's valuation while Ocutec Limited, The Electrospinning
Company Limited, PneumoWave Limited and Axol Biosciences Limited are in the
process of raising capital which may impact their valuation. We have not made,
nor are proposing to make, follow on investments. This may dilute our
percentage holdings and impact performance.
Further details of the companies in the unquoted portfolio are contained at
the end of this statement.
Publicly traded investments
The valuation as at 31 March 2024 was £730,000 (30 September 2023:
£947,000). During the period we disposed of 3,350,000 shares in Light Science
Technologies Holdings plc crystallising a gain of £2,000. The publicly traded
portfolio has not performed well. We are not expecting to make any further new
quoted investments, although we may make follow on investments in certain
exceptional circumstances.
Financial performance
NAV per share has increased by 28.3% to 154.5 pence from 120.4 pence as at 30
September 2023, adjusted for the 1 new share for every 10 existing share
consolidation of shares. Net Assets were £312.3 million, including
investments of £307.9 million and cash of £760,000. The reason for the
increase in NAV is primarily the accounting of the investment in Hui10 as
noted above, whereby we issued 191 million new shares, adjusted for the
consolidation, and therefore the cost is deemed to be £299.4 million.
There is net deficit income of £1.14 million, comprising unrealised losses of
£160,000, gains on realisation of publicly traded companies of £2,000,
interest from the convertible loan notes in aggregate of £58,000. The
administrative costs of the business were £339,000 and one-off transaction
expense of £707,000 for the half year.
Given the cash and liquid investments compared to the administrative costs,
the Company has adequate working capital.
The Board does not propose to declare a dividend.
Share price performance
The Company's share price has responded positively being at a low of 42.5
pence on 30 June 2023 adjusted for the 1 new share for every 10 existing share
consolidation of shares. The share price, as at 11 June 2024 was 153 pence an
increase of 260%.
People
We have an excellent Board which we believe have the necessary skills to
substantially grow the Company. We wish to take this opportunity to thank the
team for their commitment and hard work.
Outlook
2023 was a transformational year for IIG with the move to the Specialist Funds
Segment, strengthening of our board and leadership and the investment in
Hui10.
The opportunity presented by Hui10 is truly unique; a high growth proposition,
with a strong competitive business evidenced by key contractual agreements.
Hui10 has an exceptional team in China, nurtured by the co-chief executive
officers, Frank Li Tong and Daniel Levine. We believe we have been able to
invest at a very advantageous time, whereby IIG's shareholder can benefit from
ten years of work as well as significant previous investment. Hui10 is at an
inflection point and we look forward to sharing updates as Hui10 delivers
firstly against its key non-financial performance measures and in due course
by sales and earnings.
Nigel Rudd Robert Naylor
Chairman Chief Executive Officer
12 June 2024
Unquoted Investments Valuation as at Valuation as at
Method of fair value valuation 31 March 2024 30 September 2023
£ £
Later stage investments
Hui10 Inc Cost 299,345,525
BioQ Pharma Inc Cost, interest and FX movement 1,040,130 1,040,130
Touchless Innovations Limited Investment Team valuation 556,000 556,000
Touchless Hygiene Limited Investment Team valuation 3,880,000 3,880,000
Series A and B investments
Axol Bioscience Limited Last investment round 177,923 177,923
CardiNor AS Last investment round 57,525 57,525
The Electro Spinning Company Limited Investment Team valuation 496,053 496,053
Micrima Limited Last investment round 34,557 34,557
Momentum Bioscience Limited Last investment round 375,000 375,000
Outec Limited Last investment round 312,500 312,500
PneumoWave Limited Last investment round 904,124 904,124
Closing fair value 307,179,337 7,833,812
Unquoted portfolio review
Later stage investments
Hui 10 Inc. ("Hui10")
Investment of £299.4 million to acquire the entire issued share capital, held
at cost.
Hui10 is a technology company with interests in two operating businesses
involved in transforming the lottery in China. It holds a 33% share in Beijing
Huishi Dehua Information Technology Co., Ltd which enables, through its
digital based payment platform, the market expansion of the Chinese lottery.
It also owns 60% of Beijing Huishi Chunyuan Technical Development Co., Ltd
("Lucky World") whose omni channel technology platform provides China's
lottery shops access to a wider fast-moving consumer goods product offering.
BioQ Pharma Incorporated ("BioQ")
Investment of US$1 million by way of unsecured convertible loan notes and
warrants, valued at cost plus accrued interest.
BioQ has raised more than US$30 million in subscription for the unsecured
convertible loan notes and is looking to prepare for a fundraising in the
Series E ordinary shares.
BioQ is a commercial-stage, medical device and pharmaceutical company,
addressing the infusible drugs market. BioQ's proprietary Invenious(TM)
platform comprises a "connect-and-go" drug-device system combination, which
can be utilised to improve the delivery of infusible medicines. BioQ's
platform includes a bespoke unit-dose delivery solution for infusible drugs,
whereby a diluent delivery system and administration line are combined in one
self-contained, ready-to-use presentation. The key benefits of the platform
include reduced cost and complexity compared to current infusion techniques.
Touchless Innovation Limited ("Sanondaf")
Investment of £2.1 million to acquire the entire issued share capital, held
at £0.5 million fair value, for which Investment Team valuation is deemed the
most appropriate basis of measurement.
Touchless Innovation is an international licensing and franchising business,
with master franchise agreements in 10 countries. Sanondaf licenses the
brands, know-how and intellectual property of specialist disinfection and
decontamination technology.
Touch-Less Hygiene Limited ("Touch-Less Hygiene")
Investment of £4.3 million to acquire the entire issued share capital, held
at £3.9 million fair value, for which Investment Team valuation is deemed the
most appropriate basis of measurement.
Touch-Less Hygiene is a market-leading provider of specialist disinfection and
decontamination services and has 25 regional sites in the UK. Treatments are
non-corrosive, contain no toxic ingredients and Sanondaf's application methods
ensure they are not harmful to people, animals or the environment. It is safe
for use in all settings, including operating theatres, critical care units,
and is CASA (Civil Aviation Safety Authority) approved. Sanondaf's
disinfection formula has proven efficacy against pathogens, including viruses,
mould, bacteria and fungi. Customers include the blue-chip life sciences
companies, essential infrastructure firms and the NHS. Touchless Hygiene holds
a master franchise agreement from Sanondaf International Limited to operate in
the UK.
Series A and B investments
Axol Biosciences Limited ("Axol")
Investment of £249,000 in A ordinary shares, held at £178,000, fair value,
for which last investment round is deemed the most appropriate basis of
measurement. The company undertook a fundraising in April 2022 at the same
valuation as IIG's investment.
Axol produces high quality human cell products, particularly in relation to
pluripotent stem cell and critical reagents such as media and growth
supplements, which are sold to medical research and drug discovery
organisations. Axol also provides contract research for example customising
cell lines for customers, such as reprogramming and differentiation. The
Chairman of Axol is Jonathan Milner, who was previously deputy chairman of
Abcam plc.
CardiNor AS ("CardiNor")
Investment of £122,000 in ordinary shares, held at £58,000 fair value, for
which last investment round is deemed the most appropriate basis of
measurement.
CardiNor has made excellent progress particularly with the amount of money
raised, which includes:
● Elisa test CE marked with clear route to market in Europe and next generation
magnetic test being developed.
● RuO in the US, but distribution deal done with IBL and talking to Labcorp.
Going for full FDA approval.
CardiNor is a Norwegian biotech company established in June 2015 to
commercialise the development of secretoneurin ("SN"), an important new
biomarker for cardiovascular disease ("CVD"). SN is the only biomarker shown
to be associated with biological processes linked to cardiomyocyte handling.
This unique biological function explains why SN presents as an independent and
strong predictor of mortality in all major patient cohorts, including
ventricular arrhythmia, acute heart failure, acute respiratory failure
patients with CVD and severe sepsis. CardiNor has completed development of a
research assay based on immunoassay technology to measure SN in blood and the
assay is under further clinical development, allowing it to obtain a CE mark.
The Electrospinning Company Limited ("TECL")
Investment of £500,000 in ordinary shares, held at £496,000 fair value, for
which Investment Team valuation is deemed the most appropriate basis of
measurement. This is based on discounted cash flows as well as multiples
analysis.
TECL is trading in line with management expectations. TECL has a technology
platform built around the process of electrospinning, a technique for
production of micro and nano-fibre biomaterials from a variety of natural and
synthetic polymers, and a suite of post-processing technologies to convert the
biomaterials into medical device components. The core business is the sale of
product development and manufacturing services to medical device companies.
TECL is also using its know-how to develop proprietary materials for targeted
out-licensing opportunities, aiming to capture more of the end-market value
created by its innovations and expertise.
Micrima Limited ("Micrima")
The initial investment of £230,000 was by way of convertible loan note. Post
year end the Company undertook a fundraising which triggered the conversion of
the convertible loan note, therefore the investment is held at £35,000 fair
value, for which last investment round is deemed the most appropriate basis of
measurement.
Micrima specialises in radiofrequency technology to improve early diagnosis of
breast cancer and measure breast density. Micrima continues to make progress,
but has suffered delays in its commercial launch and as a consequence is
looking to refocus on breast density measurement.
Momentum Bioscience Limited ("Momentum")
Investment of £125,000 in preferred A ordinary shares, held at £375,000 fair
value, for which last investment round is deemed the most appropriate basis of
measurement. Momentum undertook an additional subscription in December 2023.
Momentum is developing a revolutionary rapid diagnostic test for patients
suspected of sepsis, an infection of the blood stream resulting in symptoms
including a drop in a blood pressure, increase in heart rate and fever.
Momentum's SepsiSTAT® system enables reporting of the presence or absence and
'pan gram identification' of viable organisms in just two hours, helping
direct the right antimicrobials. The system also provides a pure concentrate
of growing organisms for further analysis. Faster testing in suspected sepsis
patients can reduce mortality, accelerate hospital discharge, lower hospital
costs, and reduce the incidence of antimicrobial resistance. SepsiSTAT® is a
diagnostic test that runs from a sample of whole blood before any culturing
steps are taken and is currently being studied in clinical practice with
highly encouraging early results indicating competitive sensitivity versus the
current standard of care. Over 120 million blood tests for sepsis are run
annually representing a market potential of over £1 billion.
Ocutec Limited ("Ocutec")
Investment of £250,000 in ordinary shares, held at £313,000 fair value, for
which last investment round is deemed the most appropriate basis of
measurement. Ocutec completed a fundraising in April 2023.
Ocutec has patented technology covering the formulation of novel contact lens
products, contact lens comfort solutions and injection moulding technology for
rapid manufacturing. Ocutec is based in Glasgow, and has been operating since
2006, having been spun out of the University of Strathclyde.
PneumoWave Limited ("PneumoWave")
Investment of £450,000 in new ordinary shares, held at £904,000 fair value,
for which last investment round is deemed the most appropriate basis of
measurement. IIG invested £100,000 by way of convertible loan notes which
converts at a 15% discount to the Series A and £350,000 in the pre-series A
funding round. The Series A round has completed leading to an increase in
valuation of £454,000.
PneumoWave, which was incorporated in February 2018, is developing an
innovative remote respiratory monitoring platform comprising a small,
chest-worn biosensor and AI-driven data analysis/alerting software for the
early detection, prediction, and prevention of adverse events in respiratory
patients, both in hospitals and at home. In 2020, PneumoWave was awarded
Breakthrough Medical Device designation from the U.S. Food and Drug
Administration for the development of the device, which is designed to monitor
breathing in real-time to a clinical standard of care.
The specially designed wireless biosensor is one of the smallest available and
transmits data to the cloud using a data hub or smartphone, alerting the
patient, their household members, doctor, nurse, or emergency services where
life-threatening changes occur. PneumoWave's technology will be able to
accurately monitor large numbers of patients in any location at any time.
Intuitive Investments Group Plc
Statement of Comprehensive Income
For the 6 months to 31 March
2024
6 months to 6 months to Year to
31 March 31 March 30 September
2024 2023 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Investment income
Finance income 58 44 103
Gains on realised investments 2 - 47
Unrealised gains/(losses) due to FX (27) (96) (76)
(Losses)/Gains on investments at fair value (130) (3,395) (2,599)
Management Fees - 12 4
─────── ─────── ───────
(97) (3,435) (2,521)
Administrative expenses (339) (193) (477)
Investment costs (707) - -
─────── ─────── ───────
(Loss)/Profit before tax (1,143) (3,628) (2,998)
Corporation tax - 114 (238)
─────── ─────── ───────
(Loss)/Profit for the period (1,143) (3,514) (3,236)
Other Comprehensive Income - - -
─────── ─────── ───────
Total comprehensive income attributable to the owners of the company (1,143) (3,514) (3,236)
═══════ ═══════ ═══════
(Loss) per share
Basic - pence 3 (0.66)p (48.7)p (43.1)p
Diluted - pence (0.66)p (48.7)p (43.1)p
═══════ ═══════ ═══════
Intuitive Investments Group Plc
Statement of Financial Position
As at 31 March 2024
Notes As at As at As at
31 March 2024 31 March 2023 30 September 2023
Unaudited Unaudited Audited
ASSETS £'000 £'000 £'000
Non-current assets
Investments 4 307,914 7,863 8,781
Deferred tax asset - 352 -
─────── ─────── ───────
307,914 8,215 8,781
─────── ─────── ───────
CURRENT ASSETS
Trade and other receivables 3,673 22 44
Cash and cash equivalents 757 1,233 1,737
─────── ─────── ───────
4,430 1,255 1,781
─────── ─────── ───────
TOTAL ASSETS 312,344 9,470 10,562
═══════ ═══════ ═══════
EQUITY
Shareholders' Equity
Called up share capital 5 20,213 721 869
Deferred shares 48 48 48
Share premium 296,830 12,619 13,234
Other reserves 144 144 144
Accumulated deficit (4,976) (4,111) (3,833)
─────── ─────── ───────
Total Equity 312,259 9,421 10,462
─────── ─────── ───────
LIABILITIES
Current liabilities
Trade and other payables 85 49 100
─────── ─────── ───────
TOTAL LIABILITIES 85 49 100
─────── ─────── ───────
─────── ─────── ───────
TOTAL EQUITY AND LIABILITIES 312,344 9,470 10,562
═══════ ═══════ ═══════
Net asset value per share 154.5p 130.7p 120.4p
Intuitive Investments Group Plc
Statement of Changes in Equity
For 6 months to 31 March 2024
Called up Deferred Shares Share Other Reserves Retained Earnings Total
Share Premium Equity
Capital
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 30 September 2022 721 48 12,619 144 (597) 12,935
Loss for the period - - - - (3,514) (3,514)
────── ────── ─────── ────── ────── ───────
Balance at 31 March 2023 721 48 12,619 144 (4,111) 9,421
Profit for the period - - - - 278 278
Issued shares during the period 148 - 615 - - 763
────── ────── ─────── ────── ────── ───────
Balance at 30 September 2023 869 48 13,234 144 (3,833) 10,462
Loss for the period - - - - (1,143) (1,143)
Issued shares during the period 19,344 - 283,596 - - 302,940
────── ────── ─────── ────── ────── ───────
Balance at 31 March 2024 20,213 48 296,830 144 (4,976) 312,259
────── ────── ─────── ────── ────── ───────
Intuitive Investments Group Plc
Statement of Cash Flows
For the 6 months to 31 March 2024
Notes 6 Months to 6 Months to Year to
31 March 31 March 30 September
2024 2023 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Profit/(loss) before tax from continuing operations (1,143) (3,628) (2,998)
Adjusted by:
Interest income (32) (44) (103)
Gain on disposal 2 - (47)
Fair value movement 156 3,491 2,675
────── ────── ──────
(1,017) (181) (473)
Changes in working capital
(Increase)/decrease in trade and other receivables (3,630) 2 (20)
(Decrease)/increase in trade and other payables (15) 9 60
────── ────── ──────
Net cash outflow from operating activities (4,662) (170) (433)
Cash flows from investing activities
Purchase of investments 4 - (150) (300)
Proceeds from sale of investments 89 - 269
────── ────── ──────
Net cash (outflow)/inflow from investing activities 89 (150) (31)
────── ────── ──────
Cash flows from financing activities
Net proceeds from share issues 3,593 - 648
────── ────── ──────
Net cash inflow from financing activities 3,593 - 648
────── ────── ──────
Increase/(decrease) in cash and equivalents (980) (320) 184
Cash and cash equivalents at beginning of period 1,737 1,553 1,553
────── ────── ──────
Cash and cash equivalents at end of period 757 1,233 1,737
══════ ══════ ═════
Intuitive Investments Group Plc
Notes to the Half Yearly Report
For the 6 months to 31 March 2024
1. General Information
IIG is an investment company seeking to provide investors with exposure to a
portfolio concentrating on fast growing and/or high potential technology and
life sciences businesses operating predominantly in the UK, continental
Europe, the US and APAC, utilising the Board's experience to seek to generate
capital growth over the long term for shareholders. Intuitive Investments
Group Plc is a company incorporated and domiciled in England and Wales. The
company is listed on the Specialist Funds segment on the main market of The
London Stock Exchange. (ticker: IIG).
The financial information set out in this Half Yearly report does not
constitute statutory accounts as defined in Section 434 of the Companies Act
2006. The Company statutory financial statements for the period ended 30
September 2023, prepared under UK-Adopted International Financial Reporting
Standards ("IFRS"), have been filed with the Registrar of Companies. The
auditor's report on those financial statements was unqualified and did not
contain statements under Sections 498(2) and 498 (3) of the Companies Act
2006.
Copies of the annual statutory accounts and the Half Yearly report can be
found on the Company's website at http://www.iigplc.com/
(http://www.iigplc.com/) .
2. Basis of preparation
This Half- Yearly report has been prepared using the historical cost
convention, on a going concern basis and under IFRS. The interim financial
statements have been prepared in accordance with the accounting policies set
out in the Annual Report and Accounts for the year ended 30 September 2023.
3. Earnings per Share
Basic earnings per share is calculated by dividing the earnings
attributable shareholders by the weighted average number of ordinary shares
outstanding during the period.
Reconciliations are set out below:
6 Months to 6 Months to Year to
31 March 2024 31 March 2023 30 September 2023
Unaudited Unaudited Audited
Basic
Earnings attributable to ordinary shareholders (£'000) (1,143) (3,514) (3,236)
Weighted average number of shares ('000) 172,384 7,206 7,501
Earnings (Loss) per-share - pence (0.66) p (48.7) p (43.1) p
═════ ═════ ═════
Diluted
Earnings attributable to ordinary shareholders (£'000) (1,143) (3,514) (3,236)
Weighted average number of shares ('000) 172,384 7,206 7,501
Earnings (Loss) per-share - pence (0.66) p (48.7) p (43.1) p
═════ ═════ ═════
At the AGM on 29 February 2024 a resolution was approved to consolidate every
10 existing ordinary shares of 1 penny per share ("Existing Ordinary Shares")
into one new ordinary share of 10 pence per share ("New Ordinary Shares").
The consolidation took place on 1 March 2024 and also applied to the
warrants.
As at 31 March 2024 there were 8,018,556 (2023: 196,250)
outstanding share warrants over Ordinary Shares adjusting for the share
consolidation.
The Company is in the process of establishing an equity-based incentive
scheme. The reward will be calculated on a formula basis by reference to the
growth in market capitalisation of the Company over and above the value of
US$365 million. It will allow for adjustments for the issue of any new
Ordinary Shares and taking into account dividends and capital returns
("Shareholder Value").
The reward will be realised by the exercise by the beneficiaries of a put
option satisfied either in cash or by the issue of new Ordinary Shares, at the
election of the Company. Under these arrangements in place, participants are
entitled up to in total 15% of the Shareholder Value created.
4. Investments
Cost £'000
At 30 September 2022 11,160
Additions 150
Accrued interest 44
Change in fair value (3,491)
──────
At 31 March 2022 7,863
Additions 265
Disposals (222)
Accrued interest 59
Exchange rate adjustment (76)
Change in fair value 892
──────
At 30 September 2023 8,781
Additions 299,345
Disposals (87)
Accrued interest 32
Change in fair value (157)
──────
At 31 March 2024 307,914
══════
5. Share Capital
Issued share capital comprises:
6 months to 6 months to Year to
to 31 March 2024 to 31 March 2023 to 30 September 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Ordinary shares of 10p each 20,213 721 917
─────── ─────── ───────
20,213 721 917
═══════ ═══════ ═══════
On 27 October 2023 the Company acquired the entire share capital of
Hui10 for a consideration of US$365m. Consideration was settled by the issue
of 1,911,529,540 Existing Ordinary Shares in the Company at a price of 15.66
pence per share.
On 13 December 2023, the Company issued 2,687,095 Existing Ordinary
Shares, fully paid for cash at a price of 15.66 pence per share.
On 5 January 2024, the Company issued 11,353,767 Existing Ordinary
Shares, fully paid for cash at a price of 15.66 pence per share.
On 21 March 2024, the Company issued 809,519 New Ordinary Shares, fully paid
for cash at a price of £1.566 per share.
6. Post balance sheet events
On 8 April 2024, the Company issued 159,642 New Ordinary Shares, fully paid
for cash at a price of £1.566 per share.
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