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(BRH.L) Braveheart Investment Group PLC Buy/Sell
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| Date/Time | Headline | Source |
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| 03-03-10 | RNS |
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RNS Number : 9669H Braveheart Investment Group plc 03 March 2010 3rd March 2010 Braveheart Investment Group plc ("Braveheart" or the "Group") Investment in Tayside Flow Technologies Ltd Braveheart (AIM: BRH), the technology commercialisation and investment management company, today announces that it has led a further funding round into existing portfolio company Tayside Flow Technologies ("TFT" or "the Company"). Scottish Enterprise, Sir Tom Farmer and Quayle Munro Holdings plc also participated in the funding round, which has raised over £500,000. Braveheart first invested in TFT in 2002 and has since participated in several funding rounds. TFT is a Dundee-based life science business that was formed in 1998 as a spin out from Tayside University Hospitals NHS Trust to develop and commercialise novel cardiovascular devices based on a new understanding of blood flow dynamics called Spiral Laminar Flow ('SLF'). By restoring the natural bloodflow pattern in healthy veins and arteries via incorporation of its proprietary SLF technology into the design of implants such as grafts and stents, turbulence and sheer wall stresses in vessels are reduced. This prevents occlusions caused by the body's reaction to turbulence and the restoration of the natural bloodflow pattern may result in mitigation of disease progression. Cardiovascular disease is the leading cause of death in the westernised world, attributing to over 7 million deaths per year. TFT's products will be applied to the peripheral vascular disease ('PVD') market. PVD is caused by the obstruction of large peripheral arteries and can lead to a reduction in blood supply, most commonly to the legs. The main geographic focus for the Company's products is in the USA, where approximately 10 million people are affected by PVD each year. In 2008, the US market for peripheral vascular devices was valued at $2.6b, an increase of 8.9% over 2007. Market growth is being driven by ageing population and diseases such as diabetes and obesity. TFT's lead product is a peripheral vascular graft ('PVG') that is used to bypass blocked arteries. To date the product has secured regulatory approval for both the European and US markets, with further approvals anticipated in 2010. Around 30 distributors have been appointed in key markets and sales are progressing well. The company's second product - an access graft ('AVG') for use mainly in dialysis patients - is planned for launch in mid 2010. The Company believes that its spiral laminar flow technology will address an unmet clinical need for this market and that there is significant growth potential. The current funding will provide working capital to accelerate commercial traction of the graft business through building the profile of its SLF technology. Commenting on the investment, Geoffrey Thomson, Chief Executive of Braveheart said; "TFT continues to prove the credibility of its technology through the commercialisation of its lead product, the Peripheral Vascular Graft. We are pleased to be able to offer continued support to another of our existing portfolio companies." David Lawrence, CEO of Tayside Flow Technologies, said; "We are delighted to have received further support from both our main investors and smaller shareholders to drive the commercialisation phase of our lead products. During 2010 we will launch our second product, present our two year clinical data and launch in further markets. This funding and the progress that the company is making should see us well-placed to raise further development capital during 2010, thus enabling us to bring additional products to market during 2011 and beyond." For further information please visit www.braveheartinvestmentgroup.co.ukor contact:
gthomson@braveheart-ventures.co.uk shudson@tavistock.co.uk Tayside Flow Technologies David Lawrence, Chief Executive Tel: 01382 598532 david.lawrence@tayflow.com Notes to Editors Braveheart Investment Group is a technology commercialisation and investment management company based in Perth, Scotland. It was founded in 1997 by a small group of investors in order to encourage and syndicate investments in privately held companies that offered opportunities for significant growth. Thirteen years on, Braveheart is a public company with offices in Perth, London and Yorkshire, and a demonstrable track record in early stage technology investing as well as an established client base of high net worth individuals. Service offerings include bespoke EIS portfolios, fund management, investment facilitation and management services. Investments are made in young, emerging, unlisted companies where there is potential for significant growth through successful commercialisation of IP. Through close relationships with a number of leading universities and innovation centres Braveheart has access to a wide variety of emerging commercial opportunities at early stages. This information is provided by RNS The company news service from the London Stock Exchange END
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| 18-01-10 | RNS |
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RNS Number : 6714F Braveheart Investment Group plc 18 January 2010 18 January 2010 Braveheart Investment Group plc ("Braveheart" or the "Group") Braveheart Launches Beta EIS Fund Braveheart (AIM: BRH), the technology commercialisation and investment management company, today announces the launch of its Beta EIS Fund ("the Fund"). The Fund, a successor to the Group's Alpha EIS Fund, is an HMRC approved Enterprise Investment Scheme ('EIS') fund which will provide risk and investment diversification from a balanced portfolio approach, with exposure to various industry sectors and stages of company. Investments will be principally in technology-based companies which have the potential to make significant capital gains in the next five years. Braveheart currently has interests in a portfolio of 48 companies and the Fund will provide follow-on funding to selected portfolio companies as well as making new investments. UK investors in the Fund will be able to take advantage of the favourable tax treatments associated with the EIS regime. The minimum subscription to the Fund is £10,000 and the maximum is £500,000 per individual (or £1m per couple). Copies of the Fund's Information Memorandum are available to qualified investors or can be obtained via professional advisers. Geoffrey Thomson, Chief Executive of Braveheart, said, "We have been constructing EIS portfolios since we formed Braveheart in 1997. Since that time we have seen EIS grow from being a grossly under-utilised and misunderstood asset class to what it is today. With the 50% rate of tax looming, EIS has now come of age and is an asset class in its own right. "We believe high net worth investors should have an exposure to the EIS asset class. The advantage of EIS is that investors can back high risk/high reward companies in a tax efficient way. If the investment fails, the investor can set the loss against tax: on the other hand, if the investment comes good, the investor can realise the gain without, in most cases, paying tax on the profit. "But there is another side to EIS investing. We all require our money to work hard, but by EIS investing the investor is helping today's little businesses become tomorrow's large ones. That is important. Our EIS investors buy shares directly in the underlying entities we decide to back. This is very different from buying shares in a traded vehicle (such as a VCT) and ownership is much more tangible. It is good for investors to see the management teams that their money is backing - this makes it more real, more understandable and more personal. "On balance over the last thirteen years, our rebased client portfolio of realised investments (both good and bad exits) has doubled in value every 30 months. This return is before any EIS tax breaks are factored in. We believe this performance leads the EIS market. Looking at specifics, six of our companies have listed on public markets and two of those companies were worth an aggregate £425m on the day they listed on London's main market. We have also sold three companies by trade sale and/or secondary purchase. We have interests in 48 companies and within this portfolio there are some outstanding businesses in which the Beta EIS Fund may invest. Alongside this we have a strong pipeline of new opportunities. Beta investors will benefit from a portfolio that is diversified in terms of sector and stage." For further information please visit www.braveheartinvestmentgroup.co.uk or contact: Braveheart Investment Group Geoffrey Thomson, Chief Executive Tel: 01738 587555 / gthomson@braveheart-ventures.co.uk Tavistock Communications (for Braveheart) James Midmer / Simon Hudson Tel: 020 7920 3150 / jmidmer@tavistock.co.uk Seymour Pierce Limited John Cowie Tel: 020 7107 8000 / johncowie@seymourpierce.com Key Features of the Fund Objective The objective of the Beta EIS Fund ('Beta' or the 'Fund') is to provide investors with a diversified portfolio of tax efficient investments. Investments will tend to be in technology-based companies and all investments will have the potential to make significant capital gains over a five year period. Manager and track record The manager of the Fund will be Braveheart Ventures Ltd, a wholly owned subsidiary of the Group. The Group's Chief Executive Officer, Geoffrey Thomson, and the Chief Investment Officer, Carolyn Smith, have worked together at Braveheart since 2000 and have been responsible for establishing the existing client portfolio. This portfolio is showing what are believed to be market leading returns: as at 31 March 2009, 19 exits have been achieved of which six have been initial public offerings ('IPO's), three have been trade sales/secondary purchases and ten have been write-offs. This performance equates to an Internal Rate of Return ('IRR') of 33%. Two of the IPOs have been by way of main London market listings and both are technology companies. Current portfolio and pipeline The Group has interests in 48 portfolio companies. These interests are either by way of direct investment by the Group or by way of the management of client or fund portfolios. This portfolio comprises principally technology investments that span a number of different industry sectors. It also contains companies at various stages of development. This portfolio provides a strong pipeline of investments for the Fund. The Fund The Fund has been approved by HMRC as an Approved EIS fund. In order to comply with the legislation, the Manager will seek to invest at least 90% of the Fund within 12 months of its closing, and the Fund will make a minimum of four investments. Notwithstanding, the Manager expects that the Fund will invest in at least ten companies and that all of these investments will be made within the requisite time frame. The Fund will close to applicants on 31 March 2010. The maximum investment into the Fund is £500,000 per individual or £1m per couple. The minimum investment into the Fund is £10,000. There is no maximum or minimum Fund size. Investment policy The Manager will seek to build a balanced portfolio with exposure to various industry sectors and stages of company. Investments will be principally in technology and will be made by way of follow-on into the existing portfolio and also into companies which are not currently in the portfolio. Investments may be made alongside other private or public sector funds managed by the Manager. The Group has pre-emption rights in respect of existing portfolio companies and these pre-emption rights will be available to the Fund as a 'first option' in the event that existing Braveheart client shareholders do not take up their allocations in full. Exits The Fund will be managed from an EIS perspective and exits will be sought in three to five years. It is anticipated that the Fund will be wound up at the end of year five. Investors in the Fund will have a range of options for realising investments which are still active when the Fund is wound up.
EIS Subject to personal circumstances, investors in the Fund will benefit from a range of tax reliefs that encompass income tax relief, capital gains tax (CGT) deferral, CGT exemptions, loss relief and business property relief (for inheritance tax).
Selected current portfolio companies Software & computer services AppShare Ltd was formed in 2007 as a spin-out from the University of Strathclyde. The company has developed a collaborative software solution, simply known as 'AppShare*', which allows the sharing of electronic information and software applications between groups at different geographical locations. AppShare* is unique in that it can be integrated with other existing software applications and its multiple collaboration sessions have minimum impact on network performance for other users. The company expects to pilot the technology in 2010 and commence the development of partner relationships and sales channels thereafter. www.appshare.co.uk Founded in 1999, Bloxx Ltd is an award-winning web filtering company which has developed novel approaches to prevent inappropriate use of the web by employees. The company uses its patented technology, Tru-View, to analyse and categorise web pages quicker and more accurately than other web filters. Over 1.5 million users from an impressive customer list already benefit from enhanced security and performance. Bloxx has expanded to a multimillion pound operation with products sold in Europe and North America. www.bloxx.com Dimensional Imaging Ltd is a spin-out from the universities of Edinburgh and Glasgow and was the first company to be supported by the Group's SMART Equity Fund. The company provides a range of 3D and 4D surface image capture and analysis systems which result in accurate, high-resolution 3D surface models of specific parts of the body e.g. the face, torso and limbs. Applications include medical and dental applications which can assist in planning and assessing maxillofacial surgery, the manufacture of radiotherapy and burns treatment masks and the manufacture of orthotics and prosthetics. The company has also recently revealed its new facial expression capture system for the entertainment industry. www.di3d.com Nutratech Limited, a Nottingham-based company operates one of the UK's leading online diet and nutrition websites, offering subscribers their own personal diet diary, a database of some 30,000 food items and nutritional meal plans. Founded in 2004, Nutratech secured two rounds of investment through the Group. It manages a number of white label websites for well-known high street brands, is operating profitably and expanding fast. www.nutracheck.com.uk Founded in 2004 by a group from the Real-time Systems Research Group at the University of York, Rapita Systems Ltd are experts at analysing the timing of real-time, avionics systems to identify potential problems and the make them as fast and as reliable as possible. Rapita's innovative RapiTime product is a world leader in software performance analysis and worst-case, execution time analysis. The company raised a single round of investment from VFM and private investors in 2005, and is now operating profitably, with many blue chip clients in the aerospace industry in Europe, the USA and China. www.rapitasystems.com Technology hardware & equipment Cascade Technologies Ltd is a spin-out from the University of Strathclyde. The company has created novel technology which uses quantum cascade lasers to provide breakthrough products that create instant DNA-type fingerprints of gases, enabling their presence and quantity to be detected. The technology can be applied to multiple applications, such as emissions monitoring in the marine and power generation industries, and the detection of explosives and chemical agents. Cascade's technology is being used globally and is low maintenance requiring little or no calibration making the products a cost effective way of measuring emissions in real time. www.cascade-technologies.com Diamond Digital Holdings Ltd - founded in 2009 and based in Sheffield, Diamond designs, develops and manufactures dispersions for inks used in ink-jet printers, as well as supplying the refill market. It raised investment in 2009 from the Group and a consortium of private investors to expand its facilities and provide working capital to service new customers across Europe, South Korea, India, China and Brazil. www.diamonddispersions.com Elonics Ltd was founded in 2003 and is a fabless mixed-signal semiconductor company specialising in the development and sale of multi-band radio frequency IC products. DigitalTune* is the company's flexible radio tuner chip platform that can be configured to support different standards and frequencies for a number of applications. The E4000 is the company's initial release and is a flexible TV tuner component for portable and handheld devices offering the manufacturer low power consumption and low system costs. www.elonics.com Edinburgh-based Pyreos Ltd manufactures infrared component products aimed at mainly industrial applications such as spectroscopy, gas sensing, and security and energy management. The technology was transferred to Pyreos from Siemens and Pyreos has gone on to rapidly develop a range of infrared sensors for each of its target markets that offer compelling advantages over competitors' products. Pyreos is building an international customer base, including early adopter brand names in the field of infrared technology, and has recently signed two long-term supply agreements with an export value of £8m over the next five years. www.pyreos.co.uk Electronic & electrical equipment Conjunct Ltd was formed in 2003 as a start-up from Heriot-Watt University. The company was established to develop disruptive technology for short range, high speed optical communications. Its proprietary technology 'Fibre-Lyte' aims to offer benefits in the packaging of optical components in the data communications market, the size of which has typically been restricted due to the high cost and specification of components. www.conjunct.co.uk Design LED Products Ltd has developed a printed light guide technology which provides an inexpensive method of producing thin, flexible signs and displays illuminated by embedded light emitting diodes. The displays can be formed into 3D shapes and can incorporate different colour and lighting effects as well as movement and animation. Application areas include consumer electronic displays, backlights for LCDs, automotive and industrial panels and keypads, and brand logo enhancement. The company has also collaborated with ITI Scotland to develop a thin, power-efficient backlight unit which can be manufactured at a cost point that is attractive to the display market. www.designledproducts.com Pufferfish Ltd - established in 2004 as a spin-out from the University of Edinburgh, Pufferfish designs and develops inflatable spherical projection displays for use in the audio visual industry. The PufferSphere is of lightweight design, has a stable image projection and a compact footprint making it easy for artistic creators to incorporate into their installations. Equally, it offers camera teams the ability to fly-by, zoom, pan and jib around displays creating a visually stunning effect for the audience. Recent successes include six units used by Coldplay during their recent world concert tour, the PGA Tour opener in Scottsdale, Arizona and the Eurovision Song contest in Moscow. www.pufferfishdisplays.co.uk Healthcare equipment & services Biopta Ltd is a contract research company which provides specialist GLP-compliant services using ethically donated human tissue to evaluate compounds in a model close to human in vivo conditions. This serves to provide data on the human safety and efficacy of selected compounds much earlier in the drug development process, thereby increasing the predictability of drugs likely to be successful. The company delivers both validated assays and bespoke services to global pharmaceutical and biotechnology companies across therapeutic areas such as cardiovascular, gastrointestinal, inflammation, respiratory and CNS. www.biopta.com Tayside Flow Technologies Ltd ('TFT') was formed in 2000 and is focused on the research, development and commercialisation of vascular devices based on a new understanding of blood flow dynamics called Spiral Laminar Flow* technology. This innovative technology restores the natural blood flow pattern in grafts and stents and TFT received section 510k approval in April 2009 from the US Food and Drug Administration to market its first graft product, a peripheral artery bypass graft. Sales commenced in June 2009. www.tayflow.com EctoPharma Ltd is a 'virtual' pharmaceutical company commercialising patented technology in the areas of human and veterinary medicine to compete in specific healthcare and pesticide markets. The company's proprietary technology has the potential to be the basis for a new generation of safer pesticides with less adverse health effects and reduced environmental implications. The lead product KindaPed for head lice treatment has completed phase 2 clinical trials demonstrating 95% efficacy. Research and development work is also underway with the London School of Pharmacy into a novel gene therapy employing cutting edge nanotechnology believed to have the potential to treat several forms of cancer. www.ectopharma.com About Braveheart Investment Group Braveheart Investment Group is a technology commercialisation and investment management company based in Perth, Scotland. It was founded in 1997 by a small group of investors in order to encourage and syndicate investments in privately held companies that offered opportunities for significant growth. Twelve years on, Braveheart is a public company with offices in Perth, London and Yorkshire, and a demonstrable track record in early stage technology investing as well as an established client base of high net worth individuals. Service offerings include bespoke EIS portfolios, fund management, investment facilitation and management services. Investments are made in young, emerging, unlisted companies where there is potential for significant growth through successful commercialisation of IP. Through close relationships with a number of leading universities and innovation centres Braveheart has access to a wide variety of emerging commercial opportunities at early stages. This information is provided by RNS The company news service from the London Stock Exchange END
MSCSFSFWIFSSESF More |
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| 18-01-10 | RNS |
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RNS Number : 6714F Braveheart Investment Group plc 18 January 2010 18 January 2010 Braveheart Investment Group plc ("Braveheart" or the "Group") Braveheart Launches Beta EIS Fund Braveheart (AIM: BRH), the technology commercialisation and investment management company, today announces the launch of its Beta EIS Fund ("the Fund"). The Fund, a successor to the Group's Alpha EIS Fund, is an HMRC approved Enterprise Investment Scheme ('EIS') fund which will provide risk and investment diversification from a balanced portfolio approach, with exposure to various industry sectors and stages of company. Investments will be principally in technology-based companies which have the potential to make significant capital gains in the next five years. Braveheart currently has interests in a portfolio of 48 companies and the Fund will provide follow-on funding to selected portfolio companies as well as making new investments. UK investors in the Fund will be able to take advantage of the favourable tax treatments associated with the EIS regime. The minimum subscription to the Fund is £10,000 and the maximum is £500,000 per individual (or £1m per couple). Copies of the Fund's Information Memorandum are available to qualified investors or can be obtained via professional advisers. Geoffrey Thomson, Chief Executive of Braveheart, said, "We have been constructing EIS portfolios since we formed Braveheart in 1997. Since that time we have seen EIS grow from being a grossly under-utilised and misunderstood asset class to what it is today. With the 50% rate of tax looming, EIS has now come of age and is an asset class in its own right. "We believe high net worth investors should have an exposure to the EIS asset class. The advantage of EIS is that investors can back high risk/high reward companies in a tax efficient way. If the investment fails, the investor can set the loss against tax: on the other hand, if the investment comes good, the investor can realise the gain without, in most cases, paying tax on the profit. "But there is another side to EIS investing. We all require our money to work hard, but by EIS investing the investor is helping today's little businesses become tomorrow's large ones. That is important. Our EIS investors buy shares directly in the underlying entities we decide to back. This is very different from buying shares in a traded vehicle (such as a VCT) and ownership is much more tangible. It is good for investors to see the management teams that their money is backing - this makes it more real, more understandable and more personal. "On balance over the last thirteen years, our rebased client portfolio of realised investments (both good and bad exits) has doubled in value every 30 months. This return is before any EIS tax breaks are factored in. We believe this performance leads the EIS market. Looking at specifics, six of our companies have listed on public markets and two of those companies were worth an aggregate £425m on the day they listed on London's main market. We have also sold three companies by trade sale and/or secondary purchase. We have interests in 48 companies and within this portfolio there are some outstanding businesses in which the Beta EIS Fund may invest. Alongside this we have a strong pipeline of new opportunities. Beta investors will benefit from a portfolio that is diversified in terms of sector and stage." For further information please visit www.braveheartinvestmentgroup.co.uk or contact: Braveheart Investment Group Geoffrey Thomson, Chief Executive Tel: 01738 587555 / gthomson@braveheart-ventures.co.uk Tavistock Communications (for Braveheart) James Midmer / Simon Hudson Tel: 020 7920 3150 / jmidmer@tavistock.co.uk Seymour Pierce Limited John Cowie Tel: 020 7107 8000 / johncowie@seymourpierce.com Key Features of the Fund Objective The objective of the Beta EIS Fund ('Beta' or the 'Fund') is to provide investors with a diversified portfolio of tax efficient investments. Investments will tend to be in technology-based companies and all investments will have the potential to make significant capital gains over a five year period. Manager and track record The manager of the Fund will be Braveheart Ventures Ltd, a wholly owned subsidiary of the Group. The Group's Chief Executive Officer, Geoffrey Thomson, and the Chief Investment Officer, Carolyn Smith, have worked together at Braveheart since 2000 and have been responsible for establishing the existing client portfolio. This portfolio is showing what are believed to be market leading returns: as at 31 March 2009, 19 exits have been achieved of which six have been initial public offerings ('IPO's), three have been trade sales/secondary purchases and ten have been write-offs. This performance equates to an Internal Rate of Return ('IRR') of 33%. Two of the IPOs have been by way of main London market listings and both are technology companies. Current portfolio and pipeline The Group has interests in 48 portfolio companies. These interests are either by way of direct investment by the Group or by way of the management of client or fund portfolios. This portfolio comprises principally technology investments that span a number of different industry sectors. It also contains companies at various stages of development. This portfolio provides a strong pipeline of investments for the Fund. The Fund The Fund has been approved by HMRC as an Approved EIS fund. In order to comply with the legislation, the Manager will seek to invest at least 90% of the Fund within 12 months of its closing, and the Fund will make a minimum of four investments. Notwithstanding, the Manager expects that the Fund will invest in at least ten companies and that all of these investments will be made within the requisite time frame. The Fund will close to applicants on 31 March 2010. The maximum investment into the Fund is £500,000 per individual or £1m per couple. The minimum investment into the Fund is £10,000. There is no maximum or minimum Fund size. Investment policy The Manager will seek to build a balanced portfolio with exposure to various industry sectors and stages of company. Investments will be principally in technology and will be made by way of follow-on into the existing portfolio and also into companies which are not currently in the portfolio. Investments may be made alongside other private or public sector funds managed by the Manager. The Group has pre-emption rights in respect of existing portfolio companies and these pre-emption rights will be available to the Fund as a 'first option' in the event that existing Braveheart client shareholders do not take up their allocations in full. Exits The Fund will be managed from an EIS perspective and exits will be sought in three to five years. It is anticipated that the Fund will be wound up at the end of year five. Investors in the Fund will have a range of options for realising investments which are still active when the Fund is wound up.
EIS Subject to personal circumstances, investors in the Fund will benefit from a range of tax reliefs that encompass income tax relief, capital gains tax (CGT) deferral, CGT exemptions, loss relief and business property relief (for inheritance tax).
Selected current portfolio companies Software & computer services AppShare Ltd was formed in 2007 as a spin-out from the University of Strathclyde. The company has developed a collaborative software solution, simply known as 'AppShare*', which allows the sharing of electronic information and software applications between groups at different geographical locations. AppShare* is unique in that it can be integrated with other existing software applications and its multiple collaboration sessions have minimum impact on network performance for other users. The company expects to pilot the technology in 2010 and commence the development of partner relationships and sales channels thereafter. www.appshare.co.uk Founded in 1999, Bloxx Ltd is an award-winning web filtering company which has developed novel approaches to prevent inappropriate use of the web by employees. The company uses its patented technology, Tru-View, to analyse and categorise web pages quicker and more accurately than other web filters. Over 1.5 million users from an impressive customer list already benefit from enhanced security and performance. Bloxx has expanded to a multimillion pound operation with products sold in Europe and North America. www.bloxx.com Dimensional Imaging Ltd is a spin-out from the universities of Edinburgh and Glasgow and was the first company to be supported by the Group's SMART Equity Fund. The company provides a range of 3D and 4D surface image capture and analysis systems which result in accurate, high-resolution 3D surface models of specific parts of the body e.g. the face, torso and limbs. Applications include medical and dental applications which can assist in planning and assessing maxillofacial surgery, the manufacture of radiotherapy and burns treatment masks and the manufacture of orthotics and prosthetics. The company has also recently revealed its new facial expression capture system for the entertainment industry. www.di3d.com Nutratech Limited, a Nottingham-based company operates one of the UK's leading online diet and nutrition websites, offering subscribers their own personal diet diary, a database of some 30,000 food items and nutritional meal plans. Founded in 2004, Nutratech secured two rounds of investment through the Group. It manages a number of white label websites for well-known high street brands, is operating profitably and expanding fast. www.nutracheck.com.uk Founded in 2004 by a group from the Real-time Systems Research Group at the University of York, Rapita Systems Ltd are experts at analysing the timing of real-time, avionics systems to identify potential problems and the make them as fast and as reliable as possible. Rapita's innovative RapiTime product is a world leader in software performance analysis and worst-case, execution time analysis. The company raised a single round of investment from VFM and private investors in 2005, and is now operating profitably, with many blue chip clients in the aerospace industry in Europe, the USA and China. www.rapitasystems.com Technology hardware & equipment Cascade Technologies Ltd is a spin-out from the University of Strathclyde. The company has created novel technology which uses quantum cascade lasers to provide breakthrough products that create instant DNA-type fingerprints of gases, enabling their presence and quantity to be detected. The technology can be applied to multiple applications, such as emissions monitoring in the marine and power generation industries, and the detection of explosives and chemical agents. Cascade's technology is being used globally and is low maintenance requiring little or no calibration making the products a cost effective way of measuring emissions in real time. www.cascade-technologies.com Diamond Digital Holdings Ltd - founded in 2009 and based in Sheffield, Diamond designs, develops and manufactures dispersions for inks used in ink-jet printers, as well as supplying the refill market. It raised investment in 2009 from the Group and a consortium of private investors to expand its facilities and provide working capital to service new customers across Europe, South Korea, India, China and Brazil. www.diamonddispersions.com Elonics Ltd was founded in 2003 and is a fabless mixed-signal semiconductor company specialising in the development and sale of multi-band radio frequency IC products. DigitalTune* is the company's flexible radio tuner chip platform that can be configured to support different standards and frequencies for a number of applications. The E4000 is the company's initial release and is a flexible TV tuner component for portable and handheld devices offering the manufacturer low power consumption and low system costs. www.elonics.com Edinburgh-based Pyreos Ltd manufactures infrared component products aimed at mainly industrial applications such as spectroscopy, gas sensing, and security and energy management. The technology was transferred to Pyreos from Siemens and Pyreos has gone on to rapidly develop a range of infrared sensors for each of its target markets that offer compelling advantages over competitors' products. Pyreos is building an international customer base, including early adopter brand names in the field of infrared technology, and has recently signed two long-term supply agreements with an export value of £8m over the next five years. www.pyreos.co.uk Electronic & electrical equipment Conjunct Ltd was formed in 2003 as a start-up from Heriot-Watt University. The company was established to develop disruptive technology for short range, high speed optical communications. Its proprietary technology 'Fibre-Lyte' aims to offer benefits in the packaging of optical components in the data communications market, the size of which has typically been restricted due to the high cost and specification of components. www.conjunct.co.uk Design LED Products Ltd has developed a printed light guide technology which provides an inexpensive method of producing thin, flexible signs and displays illuminated by embedded light emitting diodes. The displays can be formed into 3D shapes and can incorporate different colour and lighting effects as well as movement and animation. Application areas include consumer electronic displays, backlights for LCDs, automotive and industrial panels and keypads, and brand logo enhancement. The company has also collaborated with ITI Scotland to develop a thin, power-efficient backlight unit which can be manufactured at a cost point that is attractive to the display market. www.designledproducts.com Pufferfish Ltd - established in 2004 as a spin-out from the University of Edinburgh, Pufferfish designs and develops inflatable spherical projection displays for use in the audio visual industry. The PufferSphere is of lightweight design, has a stable image projection and a compact footprint making it easy for artistic creators to incorporate into their installations. Equally, it offers camera teams the ability to fly-by, zoom, pan and jib around displays creating a visually stunning effect for the audience. Recent successes include six units used by Coldplay during their recent world concert tour, the PGA Tour opener in Scottsdale, Arizona and the Eurovision Song contest in Moscow. www.pufferfishdisplays.co.uk Healthcare equipment & services Biopta Ltd is a contract research company which provides specialist GLP-compliant services using ethically donated human tissue to evaluate compounds in a model close to human in vivo conditions. This serves to provide data on the human safety and efficacy of selected compounds much earlier in the drug development process, thereby increasing the predictability of drugs likely to be successful. The company delivers both validated assays and bespoke services to global pharmaceutical and biotechnology companies across therapeutic areas such as cardiovascular, gastrointestinal, inflammation, respiratory and CNS. www.biopta.com Tayside Flow Technologies Ltd ('TFT') was formed in 2000 and is focused on the research, development and commercialisation of vascular devices based on a new understanding of blood flow dynamics called Spiral Laminar Flow* technology. This innovative technology restores the natural blood flow pattern in grafts and stents and TFT received section 510k approval in April 2009 from the US Food and Drug Administration to market its first graft product, a peripheral artery bypass graft. Sales commenced in June 2009. www.tayflow.com EctoPharma Ltd is a 'virtual' pharmaceutical company commercialising patented technology in the areas of human and veterinary medicine to compete in specific healthcare and pesticide markets. The company's proprietary technology has the potential to be the basis for a new generation of safer pesticides with less adverse health effects and reduced environmental implications. The lead product KindaPed for head lice treatment has completed phase 2 clinical trials demonstrating 95% efficacy. Research and development work is also underway with the London School of Pharmacy into a novel gene therapy employing cutting edge nanotechnology believed to have the potential to treat several forms of cancer. www.ectopharma.com About Braveheart Investment Group Braveheart Investment Group is a technology commercialisation and investment management company based in Perth, Scotland. It was founded in 1997 by a small group of investors in order to encourage and syndicate investments in privately held companies that offered opportunities for significant growth. Twelve years on, Braveheart is a public company with offices in Perth, London and Yorkshire, and a demonstrable track record in early stage technology investing as well as an established client base of high net worth individuals. Service offerings include bespoke EIS portfolios, fund management, investment facilitation and management services. Investments are made in young, emerging, unlisted companies where there is potential for significant growth through successful commercialisation of IP. Through close relationships with a number of leading universities and innovation centres Braveheart has access to a wide variety of emerging commercial opportunities at early stages. This information is provided by RNS The company news service from the London Stock Exchange END
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This news article is displayed preformatted as it may contain results tables
RNS Number : 6459D
Braveheart Investment Group plc
07 December 2009
7 December 2009
Braveheart Investment Group plc
("Braveheart" or "the Group")
Interim Results
Braveheart Investment Group plc (AIM: BRH) the technology commercialisation and investment management company, announces interim results for the six months ended 30 September 2009.
Highlights
* Total income increases 68% to £424,000 (2008: £252,000)
* Unrealised gain on revaluation of portfolio investments of £192,000 (2008: unrealised loss £170,000)
* Net assets at period end of £5.9m (2008: £7.0m)
* Cash balances at period end of £2.2m (2008: £4.1m)
* Acquired Yorkshire-based Viking Fund Managers Ltd (VFM) (formerly Inkopo Ltd)
* VFM's management services agreement to administer the Yorkshire Association of Business Angels renewed for a further three years
* First investments made by Strathclyde Innovation Fund
* Further funding in the form of equity or convertible loans to one new and eight existing portfolio companies
* Appointed as an accredited lender under the Enterprise Finance Guarantee scheme
Post period end
* Further funding in the form of equity or convertible loans to one new and five existing portfolio companies
Commenting, Geoffrey Thomson, Chief Executive, said: "While conditions continued to be difficult during the period, with core client investment and associated fee levels remaining depressed, Braveheart has actively pursued its strategy of measured expansion counterbalanced by strict asset, cost and cash management.
The acquisition of Viking Fund Managers was completed in June, giving us an operating base in the North of England. This combination has contributed to a year on year increase in overall investment management and management services revenue, and in September VFM's management services agreement to administer the Yorkshire Association of Business Angels was renewed for a further three years.
To preserve and enhance the value of the Group's investments and those of its clients, we provided equity and debt finance to nine of our portfolio companies. Additionally, Strathclyde Innovation Fund made its first two investments in the period and, in September, we were confirmed as an accredited lender under the Enterprise Finance Guarantee scheme. While the economic environment for early stage businesses is challenging, we have been impressed by the resilience and performance of many of our portfolio companies. We recorded a modest, though pleasing, increase in our portfolio valuation at the period end, and this contributed to the strength of our net asset position.
We will continue to provide support to our most promising portfolio companies, while ensuring that we retain adequate cash for operating purposes. Our investment in these companies is our greatest asset and it remains a core objective to enhance and realise this value when market conditions permit."
For further information please visit www.braveheartinvestmentgroup.co.uk or contact:
Geoffrey Thomson, Chief Executive Simon Hudson/James Midmer
Braveheart Investment Group Tavistock Communications
Tel: 01738 587555 Tel: 020 7920 3150
gthomson@braveheart-ventures.co.uk shudson@tavistock.co.uk
Richard Feigen/Catherine Leftley
Seymour Pierce Limited
020 7107 8000
Seymour Pierce Limited
Chairman and CEO Report
Overview
We are pleased to report to shareholders on the six months ended 30 September 2009.
While conditions continued to be difficult during the period, with core client investment and associated fee levels remaining depressed, Braveheart has actively pursued its strategy of measured expansion counterbalanced by strict asset, cost and cash management.
The acquisition of Viking Fund Managers Ltd (VFM) (formerly Inkopo Ltd) was completed in June, giving us an operating base in the North of England. The integration of this business is progressing smoothly, and the combination has contributed to a year on year increase in overall investment management and management services revenue. In September VFM's management services agreement to administer the Yorkshire Association of Business Angels (YABA) was renewed for a further three years.
The investment in our London office has now started to show returns: a number of new clients have been attracted, some interesting M&A opportunities are presenting themselves, and our profile in the South of England is growing as we promote the Braveheart brand.
To preserve and enhance the value of the Group's investments and those of its clients, it has been vital for us to support our portfolio companies, and during the period we provided equity and debt finance to nine of those companies. Additionally, Strathclyde Innovation Fund made its first two investments in the period. While the economic environment for early stage businesses is challenging, we have been impressed by the resilience and performance of many of our portfolio companies. We recorded a modest, though pleasing, increase in our portfolio valuation at the period end, and this contributed to the strength of our net asset position.
Our expansion has led to an increase in overheads and a slightly greater loss than in the first half of last year. However, compared to the immediately preceding half-year, both our overheads and our loss were reduced. At 30 September, we had a strong balance sheet with net assets of £5.9m.
In September, we were confirmed as an accredited lender under the Enterprise Finance Guarantee scheme (EFG). The EFG allows small and medium-sized businesses in the UK to obtain loans from accredited lenders, backed by a government guarantee. This accreditation is helpful in that it should enable us to gear up our resources and provide more assistance to a greater number of companies. However, we await the government's proposals for the future of the EFG, which are expected before the end of March 2010, before making any material commitments thereunder.
Given the higher income tax bands which will come into force in April next year, we believe Enterprise Investment Scheme (EIS) investments will become an increasingly important asset class. Accordingly, we are in the process of establishing an EIS Fund which we plan to launch in January 2010.
Board and personnel
Staff numbers rose by seven as the Group absorbed VFM personnel, and we would like to formally welcome them to Braveheart. There have been no changes to the board of directors during the period.
Financial review
The financial results reported below include those of VFM since the date of its acquisition on 5 June 2009.
Total income in the six months ended 30 September 2009 was £424,000, an increase of 68% (2008: £252,000). Revenue from investment management and management services was £244,000, an increase of 11% (2008: £219,000) reflecting the contribution from VFM. Other operating income was £27,000 (2008: nil). Interest income was £31,000 (2008: £139,000) reflecting reducing cash balances and the nominal interest rates payable thereon. The unrealised gain on the revaluation of investments was £192,000, as compared to an unrealised loss of £170,000 in 2008. This was offset in part by an increase of £70,000 in contingent consideration (2008: decrease of £64,000) payable on exit values of certain portfolio companies.
Total costs were £839,000, an increase of 30% (2008: £643,000) primarily reflecting the Group's increase in staff numbers. However compared with the immediately preceding half-year which had been impacted by certain non-recurring expenditure, costs fell by 7%.
The loss before taxation and minority interest increased to £415,000 (2008: £391,000), though compared with the immediately preceding half-year the loss fell by 52% due to the combination of increased income and reduced costs. There was no taxation charge in either the current or prior year period. The loss after taxation attributable to parent company shareholders was £422,000 (2008: £391,000) which equates to a loss per share of 3.08 pence (2008: 2.91 pence).
Net assets at 30 September 2009 were £5.9m (2008: £7.0m). Cash balances at the period end were £2.2m, a decrease in the six months from 31 March 2009 of £1.0m, comprising £360,000 invested by the Group in its portfolio companies, £176,000 relating to the acquisition of VFM, and £497,000 used in other operating activities.
Strategy
We will continue to provide support to our most promising portfolio companies, while ensuring that we retain adequate cash for operating purposes. Our investment in these companies is our greatest asset and it remains a core objective to enhance and realise this value when market conditions permit. Several of these companies are now demonstrating the characteristics that are a prerequisite of disposal, but would benefit from a period of buoyant trading conditions before we seek to realise value.
We will also seek to reduce further the risks in our private equity business by growing our investment management and management services revenue with the objective of covering our overhead costs from such income sources. Our acquisition of VFM was the first step, and a number of other opportunities are under consideration.
Outlook
While stock markets have risen sharply in recent months and a number of other indicators have appeared to signal the beginnings of economic recovery, recently released data indicates that the UK is behind a number of our competitors in emerging from recession. We believe the financial environment in which we operate will remain difficult for some time and that assessment is reflected in our plans.
We have maintained a strong net asset position, with our investment portfolio now recovering some of its lost value. We will continue to support our portfolio investments while pursuing additional revenue streams and complementary businesses to provide long-term shareholder value.
Garry S Watson Geoffrey C B Thomson
Chairman Chief Executive Officer
Independent review report to Braveheart Investment Group plc
Introduction
We have been engaged by the Company to review the financial information in the half-yearly report for the six months ended 30 September 2009 which comprises the condensed consolidated statement of comprehensive income, condensed consolidated statement of financial position, condensed consolidated statement of cash flows, condensed consolidated statement of changes in equity and the related notes.
We have read the other information contained in the half-yearly report which comprises only Highlights and the Chairman and Chief Executive's Statement, and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company in accordance with guidance contained in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the Company those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusion we have formed.
Directors' responsibilities
The half-yearly report is the responsibility of, and has been approved by, the directors. The AIM rules of the London Stock Exchange require that the accounting policies and presentation applied to the financial information in the half-yearly report are consistent with those which will be adopted in the annual accounts having regard to the accounting standards applicable for such accounts.
As stated in the Basis of preparation the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The financial information in the half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the financial information in the half-yearly report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the financial information in the half-yearly report for the six months ended 30 September 2009 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union.
GRANT THORNTON UK LLP
Registered Auditor
Chartered Accountants
Edinburgh
3 December 2009
Condensed consolidated statement of comprehensive income
for the six months ended 30 September 2009
Six months ended Six months ended Year
ended
30 September 30 September 31 March
2009 2008 2009
(unaudited) (unaudited) (audited)
Note £'000 £'000 £'000
Revenue 244 219 350
Unrealised profit/(loss) on 192 (170) (378)
the fair value movements of
investments
Movement on contingent (70) 64 100
consideration
Finance revenue 31 139 215
Other income 27 - -
Total income 424 252 287
Employee benefits expense (581) (429) (800)
Other expenses (256) (214) (741)
Finance costs (2) - (1)
Total costs (839) (643) (1,542)
Loss before taxation (415) (391) (1,255)
Taxation - - 2
Loss for the period and total (415) (391) (1,253)
comprehensive income for the
period
Attributable to:
Equity holders of the parent (422) (391) (1,236)
Minority interest 7 - (17)
Loss per share
- basic and diluted 2 (3.08) (2.91) (9.22)
Condensed consolidated statement of financial position
as at 30 September 2009
30 September 30 September 31 March
2009 2008 2009
(unaudited) (unaudited) (audited)
Note £'000 £'000 £'000
ASSETS
Non-current assets
Property, plant and equipment 38 50 44
Investments at fair value 3 3,914 3,035 3,261
through profit or loss
Goodwill 5 360 - -
4,312 3,085 3,305
Current assets
Trade and other receivables 166 285 100
Cash and cash equivalents 2,189 4,091 3,222
2,355 4,376 3,322
Total assets 6,667 7,461 6,627
LIABILITIES
Current liabilities
Trade and other payables (184) (193) (173)
Contingent consideration (479) (246) (210)
Deferred income (20) (22) (22)
Borrowings (10) - (10)
(693) (461) (415)
Non-current liabilities
Deferred tax liability - (2) -
Borrowings (41) - (41)
(41) (2) (41)
Total liabilities (734) (463) (456)
Net assets 5,933 6,998 6,171
EQUITY
Called up share capital 278 268 268
Share premium account 141 7,009 -
Retained earnings 5,524 (279) 5,920
Total shareholders' equity 5,943 6,998 6,188
Minority interest in equity (10) - (17)
Total equity 5,933 6,998 6,171
Condensed consolidated statement of cash flows
for the six months ended 30 September 2009
Six months ended Six months ended Year
ended
30 September 30 September 31 March
2009 2008 2009
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Operating activities
Loss before tax (415) (391) (1,255)
Adjustments to reconcile loss
before tax to net
cash flow from operating
activities
Depreciation of property, 7 4 12
plant and equipment
Share-based payments expense 26 44 79
Loss on disposal of property, - - 1
plant and equipment
(Increase)/decrease in the (192) 170 378
revaluation of investments
Interest income (31) (139) (215)
Increase in investments (360) (630) (1,064)
Decrease in trade and other 87 158 368
receivables
Decrease in trade and other (5) (70) (48)
payables
Tax received - 25 -
Net cash flow from operating (883) (829) (1,744)
activities
Investing activities
Acquisition of subsidiary (124) - -
Net cash and cash equivalents (52) - -
acquired on acquisition
Purchase cost of property, - (28) (31)
plant and equipment
Interest received 31 139 215
Net cash flow from investing (145) 111 184
activities
Financing activities
Capital element of hire (5) - (27)
purchase
Net cash flow from financing (5) - (27)
activities
Net decrease in cash and cash (1,033) (718) (1,587)
equivalents
Cash and cash equivalents at 3,222 4,809 4,809
the start of the period
Cash and cash equivalents at 2,189 4,091 3,222
the end of the period
Condensed consolidated statement of changes in equity
for the six months ended 30 September 2009
Attributable to equity holders of the Company
Share capital Share premium Retained earnings Total Minority interest Total equity
£'000 £'000 £'000 £'000 £'000 £'000
At 1 April 2008 268 7,009 68 7,345 - 7,345
Loss for the period - - (391) (391) - (391)
Share-based payments - - 44 44 - 44
At 30 September 2008 268 7,009 (279) 6,998 - 6,998
(unaudited)
Loss for the period - - (845) (845) (17) (862)
Reduction in share premium - (7,009) 7,009 - - -
account
Share-based payments - - 35 35 - 35
At 31 March 2009 (audited) 268 - 5,920 6,188 (17) 6,171
Loss for the period - - (422) (422) 7 (415)
Issue of new share capital 10 141 - 151 - 151
Share-based payments - - 26 26 - 26
At 30 September 2009 278 141 5,524 5,943 (10) 5,933
(unaudited)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1 Basis of preparation
The financial information presented in this half-yearly report constitutes the condensed consolidated financial statements (the interim financial statements) of Braveheart Investment Group plc (the Company), a company incorporated in the United Kingdom and registered in Scotland, and its subsidiaries (together, the Group) for the six months ended 30 September 2009. The interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the Annual Report and Accounts for the year ended 31 March 2009 which have been prepared in accordance with International Financial Reporting Standards as adopted for use in the EU. The financial information in this half-yearly report, which was approved by the Board and authorised for issue on 3 December 2009, is unaudited but has been subject to a review by the Group's independent auditors.
The interim financial statements do not constitute statutory accounts for the purpose of section 240 of the Companies Act 1985. The comparative financial information presented herein for the year ended 31 March 2009 has been extracted from the Group's Annual Report and Accounts for the year ended 31 March 2009 which have been delivered to the Registrar of Companies. The Group's independent auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 237(2) or 237(3) of the Companies Act 1985.
The preparation of the half-yearly report requires management to make judgements, estimates and assumptions that affect the policies and the 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 judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. In preparing this half-yearly report, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the audited consolidated financial statements for the year ended 31 March 2009.
The interim financial statements have been prepared using the same accounting policies as those applied by the Group in its audited consolidated financial statements for the year ended 31 March 2009 and which will form the basis of the 2010 Annual Report, except for as described below:
IFRS 8 - Operating Segments
IFRS 8 is a disclosure standard only, requiring disclosure based on information presented to the Board on the financial performance of the Group's operating segments. The adoption of this standard has had no material impact on the financial statements as presented given that the business is regarded as, and financial performance is reported to the Board in respect of, one segment due to the nature of services provided and the methods used to provide these services.
IAS 1 (Revised 2007) - Presentation of Financial Statements
The revised standard has introduced a number of terminology changes (including revised titles for the condensed financial statements) and has resulted in a number of changes in presentation and disclosure. There has been no effect on the reported results or previous financial position of the Group.
Improving Disclosures about Financial Instruments (Amendments to IFRS 7)
This amendment requires the analysis of each class of financial asset and financial liability into a three level fair value measurement hierarchy. It requires additional disclosures in respect of those financial instruments classified as Level 3 (namely those that are measured using a valuation technique which uses inputs that are not based on observable market data). It also implements some changes to the definition of and disclosures associated with liquidity risk. This standard will lead to a change in disclosures relating primarily to the Group's equity investments in the 2010 financial statements.
2 Loss per share
Basic loss per share has been calculated by dividing the loss for the period attributable to equity holders of the parent by the weighted average number of ordinary shares in issue during the period.
There were no potentially dilutive ordinary shares in the Group at the period end and therefore the diluted loss per share is equal to the basic loss per share.
The calculation of loss per share is based on the following loss and numbers of shares in issue:
Six months Year
ended ended
30 September 31 March
2009 2008 2009
£'000 £'000 £'000
Loss for the period attributable to (422) (391) (1,236)
equity holders of the parent
Weighted average number of ordinary
shares in issue:
For basic loss per ordinary share 13,733,996 13,403,895 13,403,895
For diluted loss per ordinary share 13,733,996 13,403,895 13,403,895
3 Investments at fair value through profit or loss
Listed Equity Unlisted Equity Unlisted Loan Unlisted Sub-total Total
£'000 £'000 £'000 £'000 £'000
Fair value at 1 April 2008 147 2,274 154 2,428 2,575
Additions at cost 3 390 237 627 630
Change in fair value in year (114) (31) (25) (56) (170)
Fair value at 30 September 36 2,633 366 2,999 3,035
2008
Additions at cost (3) 167 270 437 434
Conversions - 209 (209) - -
Change in fair value in year (17) 9 (200) (191) (208)
Fair value at 31 March 2009 16 3,018 227 3,245 3,261
Additions at cost - 328 133 461 461
Conversions - 101 (101) - -
Change in fair value in period 13 186 (7) 179 192
Fair value at 30 September 29 3,633 252 3,885 3,914
2009
4 Business combination
On 5 June 2009 the Company acquired 100% of the issued share capital of Viking Fund Managers Ltd (VFM) (formerly Inkopo Ltd), a company based in the UK. The total cost of the acquisition includes the components stated below:
£'000
Purchase price:
Initial consideration 226
Contingent consideration 236
Total purchase price 462
Legal and professional fees 43
Other costs 6
Total cost of acquisition 511
£75,000 of the initial consideration was settled in cash. The balance of the initial consideration was settled by the issue of 511,937 ordinary shares. Contingent consideration will be based on (i) VFM's turnover for the years ending 31 March 2010 and 31 March 2011, and (ii) the attainment by VFM of certain other non-turnover based operating targets benefitting the Group. It is expected that contingent consideration will be settled in shares. Contingent consideration has been fair valued in accordance with IFRS 3. At initial recognition, consideration settled, or to be settled, in shares was fair valued by reference to the Company's share price at the acquisition date.
The allocation of the acquisition costs to the assets and liabilities of VFM at the acquisition date is as follows:
Carrying Value Fair Value
£'000 £'000
Property, plant and equipment 1 1
Investments 151 101
Trade and other receivables 113 113
Cash and cash equivalents (52) (52)
Trade and other payables (48) (48)
Net assets 165 115
Fair value of cost of acquisition 511
Goodwill 396
From the date of acquisition, VFM has contributed £4,000 net profit to the net loss of the Group. Had the acquisition taken place at the start of the period, the consolidated income for the period would have been £490,000 and the loss for the period would have been £414,000.
The goodwill that arose on the acquisition can be attributed to synergies expected to be derived from the combination and the value of the personnel of VFM, which cannot be recognised as an intangible asset under IAS 38.
5 Goodwill
£'000
At 1 October 2008 and 31 March 2009 -
Arising on initial recognition of acquisition of VFM (see note 4) 396
Reduction arising on fair valuation of contingent consideration at (36)
period end
At 30 September 2009 360
6 Share capital
On 5 June 2009, the Company issued 511,937 ordinary shares of 2 pence each at a fair value issue price of 29.5 pence as consideration for the acquisition of VFM.
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.
7 Subsequent events
There were no significant events after the balance sheet date.
Shareholder communications
A copy of this report will be sent to shareholders and is available on request from the Company's registered office: The Cherrybank Centre, Cherrybank Gardens, Perth, PH2 0PF. A copy has also been posted on the Company's website: www.braveheartinvestmentgroup.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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