Augmentum Fintech plc - Interim Results for the six months ended 30 September 2025
Interim Results for the six months ended
Augmentum Fintech plc (LSE: AUGM) (the "Company" or "Augmentum"),
Financial highlights
•
NAV before performance fee
1
of £282.3m (
•
NAV per share after performance fee
2
of 159.5p (
•
Share price of 87.8p (
•
Cash reserves of £22.4 million
3
with no debt (
• The asset value of the top four positions plus cash exceeds the market capitalisation, taking no account of the remaining 23 portfolio companies (with a current valuation of £125 million).
• Realisations of £102.9 million since IPO.
Portfolio and investment highlights
•
As at
• Eight 4 exits since inception, realising an average premium of 33% to last reported valuations, and representing a combined IRR of 31%
• The top five assets, representing 53% of NAV, provide:
ᵒ A blended profit growth rate of 160% 5 .
ᵒ A blended revenue growth rate of 34% 6 .
•
Tide closed a
•
• iwoca delivered strong performance, generating £234 million in revenue (64.2% YoY growth) and £59 million in profit before tax (41.2% YoY growth) in 2024, and is now a top three holding.
• Gemini, the digital asset platform, went public and commenced trading on the NASDAQ exchange.
• The portfolio achieved combined annual revenue growth of 24% (from £1.0bn to £1.2bn).
Investment activity
• During the period, a total of £5.8 million was deployed. Of this, £4.1 million was invested in two new companies, including our share of the £4.5 million funding round we led for RetailBook. The remaining £1.7 million was deployed across three follow-on investments.
Post period end
• Partial exit of investment in Parafi, returning £2.7 million, equivalent to the total initial cost.
Notes
1. NAV before performance fee, NAV after performance fee is £266.9m
2. The Board considers NAV per share after performance fee to be the most
appropriate measure of NAV per share attributable to shareholders.
3. As at 19 November 2025 .
4. Excludes Parafi which was exited after period end.
5. Blended profit growth of the top 5 companies by Fair Value. PBT used where
available, otherwise next best reported profit metric used
6. Blended revenue growth taken as LTM to September 2025 vs LTM to September
2024 of the top 5 companies by Fair Value. Any outliers (>250%) have been
capped to 250% for comparability.
“The fundamental strength of the portfolio provides a stark contrast to this market valuation: our underlying private growth companies delivered solid trading performance, achieving 23% revenue growth and an 8.5% EBITDA margin. The fact that the valuation of our top four holdings plus cash exceeds our entire market capitalisation, attributing no value to the remaining £125 million of assets, proves the significant undervaluation of the Company.
“We believe this combination of growing, profitable fintech leaders and a significant discount gives patient shareholders a compelling opportunity.”
“Europe’s fintech ecosystem is reaching new levels of maturity. We are seeing repeat founders bringing valuable expertise and resilience into the market, fostering a new generation of ventures that are more ambitious in scale, sophisticated in execution and more globally minded. This is all helping to reinforce Europe’s position as the leading centre for financial innovation, and in which
“Since our IPO we have maintained our investment discipline. Evidence of this can be seen in our realisations over the last seven years which now exceed £100 million. All of our exits have been at or above their carrying value with an average premium of 33% to last reported valuation and with a combined IRR of 31%. We are confident that the portfolio will continue to deliver growth and compelling realisations when the right opportunity presents itself.”
Enquiries
Augmentum Fintech
+44 (0)20 3961 5420
Tim Levene (Portfolio Manager)
nigel@augmentum.vcNigel Szembel (Investor Relations)
Woodrow Communications
+44 (0)20 8636 8753
Henry Kirby , Juste Rekstyte
press@augmentum.vc
(Press and Media)
Peel Hunt LLP Luke Simpson , Huw Jeremy +44 (0)20 7418 8900
(Investment Banking)
Singer Capital Markets James Moat , James Fischer +44 (0)20 7496 3000
(Investment Banking)
Frostrow Capital LLP
+44 (0)20 3709 8733
Paul Griggs (Company Secretary)
About
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Half Year Report for the six months ended
.
Chairman’s Statement
Introduction
Our target market – fintech – has had a broadly encouraging last six months and remains an exciting place to be, with the IPO market showing encouraging signs of warming up. Our portfolio of private growth companies has delivered solid trading performance – with 24% revenue growth and an 8.5% EBITDA margin, up from 0.7% in the prior year, thanks to strong operational gearing coming through in the portfolio. However, our immediate environment as a listed
Our Mission and Strategy
Your company’s mission is to become Europe’s leading fintech venture investor. Fintech is a growth sector that the
We remain uniquely positioned as the only European fintech venture capital fund that is an
Our vision sees our portfolio growing over the medium-term to over €1 billion, with several investments having ‘graduated’ via an IPO. On the journey, we expect to see our talent pool growing, and our relationships deepening across the European fintech ecosystem of regulators, capital providers, entrepreneurs and fintech supply chains.
Our strategy has four pillars:
•
Focusing on fintech venture opportunities
. Early stage private fintech businesses in and around
We target long-term returns, before costs, of 20% on invested capital and for cash invested to return on average 3x at exit. In practice, successful venture capital portfolios can expect to see a wide range of exit multiples and rely for their strong returns on the outsized winners – which are usually rare.
• Building a team and network with a reputation for board-level expertise. As well as being strong allocators of capital, we need to be appealing partners for top entrepreneurs – bringing expertise, relationships and resources to the table.
•
Operating with an owner's mindset
. We
revere value-for-money, focus, and in our operations we want maximum ‘bang for our
buck’. We cover the European market from an office in the
• Operating as patient capital . We aim to think and operate for the long term.
Performance
Our portfolio companies continue to make good progress. The private businesses in our portfolio have grown their combined annual revenues by 23% from £1.0 billion to £1.2 billion, and their aggregate EBITDA profitability is now £103 million per annum (up from £6.5 million), a margin of 8.5%. Six of our businesses are now profitable, with the total EBITDA of these businesses now at £166 million.
Our portfolio is diversified across different fintech sectors, European markets and maturity stages. Its exposure to the companies’ strong trading performance, weighted by our respective shareholdings, ensures it benefits from the performance cited above. Our share of our companies’ revenues grew approximately 16% last year to £50 million, and our share of EBITDA was a breakeven performance.
Of course, trading performance does not directly map across to Net Asset Value. Your board considers its governance role in the valuations process to be of utmost importance and understands that shareholders and potential investors can be sceptical of private equity valuations as they cannot be readily verified in the way that public equities can. We consider and challenge all of the investment valuations used for the full and half year financial statements. These are also reviewed by Frostrow, our independent AIFM. The valuations are arrived at using appropriate and consistent methodologies in accordance with
Our NAV’s movement reflects several factors. Firstly, the portfolio’s strong operating performance added £13.6 million. Secondly, markets recovered significantly from the turmoil around President Trump’s “liberation day”, with the NASDAQ-100, in sterling terms, up 23.2% and FTSE All-Share up 11.5% over the six months to 30
The overall impact of these changes, including the impact of exchange rate movements and expenses, was a fall in the NAV after performance fee of £3.3 million to £267 million, 159.5p per share, at
Our own share price on
Cash Reserves, Discount and Share Buy-backs
The use of the Company’s cash reserves is a matter of regular Board review. We aim to balance the benefits of highly accretive buybacks when discounts are high against ensuring that we hold appropriate reserves to fund follow on investments and capture the best of the new investment opportunities that we continue to see.
Over the last six months, we have realised less than £1 million from our existing assets, and we bought no shares back. We remain committed to the use of share buy-backs, particularly when discounts are as high as they have been, and you should expect to see us continue to do them as circumstances allow.
Outlook
The fundamentals of our portfolio of businesses are good with strong top line growth and improving profitability. We are confident this portfolio will continue to grow in value as they continue to execute on their strategic plans.
Despite this our shares have continued to trade at a substantial discount to NAV. Your Board does not rely on resolving this issue through a ‘business as usual’ approach, hoping that the pool of traditional public company investors will close the gap. We plan to update shareholders in the new year on how we can best proceed.
Chairman
.
Investment Objective and Policy
Investment objective
The Company’s investment objective is to generate capital growth over the long term through investment in a focused portfolio of fast growing and/or high potential private financial services technology (“fintech”) businesses based predominantly in the
Investment policy
In order to achieve its investment objective, the Company invests in early or later stage investments in unquoted fintech businesses. The Company intends to realise value through exiting these investments over time.
The Company seeks exposure to early stage businesses which are high growth, with scalable opportunities, and have disruptive technologies in the banking, insurance and wealth and asset management sectors as well as those that provide services to underpin the financial sector and other cross-industry propositions.
Investments are expected to be mainly in the form of equity and equity-related instruments issued by portfolio companies, although investments may be made by way of convertible debt instruments. The Company intends to invest in unquoted companies and will ensure that the Company has suitable investor protection rights where appropriate.
The Company may also invest in partnerships, limited liability partnerships and other legal forms of entity. The Company will not invest in publicly traded companies. However, portfolio companies may seek initial public offerings from time to time, in which case the Company may continue to hold such investments without restriction. The Company may also hold securities in publicly traded companies, including non-fintech companies, that have been received as consideration for the Company’s holding in a portfolio company (“Listed Consideration Securities”).
The Company may acquire investments directly or by way of holdings in special purpose vehicles or intermediate holding entities (such as the Partnership*).
The Management Team has historically taken a board or board observer position at investee companies and, where in the best interests of the Company, will do so in relation to future investee companies.
The Company’s portfolio is expected to be diversified across a number of geographical areas predominantly within the
The Management Team will actively manage the portfolio to maximise returns, including helping to scale the team, refining and driving key performance indicators, stimulating growth, and positively influencing future financing and exits.
Investment restrictions
The Company will invest and manage its assets with the object of spreading risk through the following investment restrictions:
• the value of no single investment (including related investments in group entities or related parties) will represent more than 15% of NAV, save that one investment in the portfolio may represent up to 20% of NAV;
• the aggregate value of seed stage investments will represent no more than 1% of NAV;
•
at least 80% of NAV will be invested in businesses which are headquartered in or have their main centre of business in the
•
the aggregate value of holdings of
In addition, the Company will itself not invest more than 15% of its gross assets in other investment companies or investment trusts which are listed on the Official List of the
Each of the restrictions above will be calculated at the time of investment and disregard the effect of the receipt of rights, bonuses, benefits in the nature of capital or by reason of any other action affecting every holder of that investment. The Company will not be required to dispose of any investment or to rebalance the portfolio as a result of a change in the respective valuations of its assets.
For the purposes of the investment policy, “NAV” means the consolidated assets of the Company and its consolidated subsidiaries (together “the Group”) less their consolidated liabilities, determined in accordance with the accounting principles adopted by the Group from time to time.
Hedging and derivatives
Save for investments made using equity-related instruments as described above, the Company will not employ derivatives of any kind for investment purposes, but derivatives may be used for currency hedging purposes.
Borrowing policy
The Company may, from time to time, use borrowings to manage its working capital requirements but shall not borrow for investment purposes. Borrowings will not exceed 10% of the Company’s NAV, calculated at the time of borrowing.
Cash management
The Company may hold cash on deposit and may invest in cash equivalent investments, which may include short-term investments in money market type funds and tradeable debt securities.
There is no restriction on the amount of cash or cash equivalent investments that the Company may hold or where it is held. The Board has agreed prudent cash management guidelines with the AIFM and the Portfolio Manager to ensure an appropriate risk/return profile is maintained. Cash and cash equivalents are held with approved counterparties.
It is expected that the Company will hold between 5% and 15% of its Gross Assets in cash or cash equivalent investments, for the purpose of making follow-on investments in accordance with the Company’s investment policy and to manage the working capital requirements of the Company.
Changes to the investment policy
No material change will be made to the investment policy without the approval of Shareholders by ordinary resolution. Non-material changes to the investment policy may be approved by the Board. In the event of a breach of the investment policy set out above or the investment and gearing restrictions set out therein, the Management Team shall inform the AIFM and the Board upon becoming aware of the same and if the AIFM and/or the Board considers the breach to be material, notification will be made to a
* Please refer to the Glossary on page 34.
.
Portfolio
as at
Fair Fair
value of Impact of value of % of
holding Net foreign holding Net assets
at investments/ currency Investment at after
31 March (realisations) rate return 30 performance
2025 £’000 changes £’000 September fee
£’000 £’000 2025
£’000
Tide 65,217 - - (446) 64,771 24.3%
Zopa Bank^ 36,308 - - 207 36,515 13.7%
Iwoca 14,478 - - 3,189 17,667 6.6%
BullionVault^ 16,406 (799) - 769 16,376 6.1%
Volt 20,021 - - (5,021) 15,000 5.6%
Grover 14,058 - 531 (207) 14,382 5.4%
Anyfin 11,251 - 474 (473) 11,252 4.2%
XYB 12,619 817 - (2,280) 11,156 4.2%
Intellis 11,114 - 469 (469) 11,114 4.2%
Gemini 9,314 - (362) (430) 8,522 3.2%
Top 10 210,786 18 1,112 (5,161) 206,755 77.5%
Investments
Other 45,211 5,038 (761) 4,086 53,574 20.1%
Investments*
Total 255,997 5,056 351 (1,075) 260,329 97.6%
Investments
Cash & cash 32,256 22,428 8.4%
equivalents
Net other (2,837) (498) (0.2)%
liabilities
Net Assets 285,416 282,259 105.8%
Performance (15,244) (15,404) (5.8)%
Fee provision
Net Assets
after 270,172 266,855 100.0%
performance
fee
^
Held via
*
There are seventeen other investments (
.
Portfolio Manager’s Review
A Maturing Market
Over the past five years, the fintech industry has experienced a dramatic series of highs and lows, often resembling a wave-like pattern of peaks and troughs. In 2021 we witnessed rapid growth and lofty valuations followed by the sharp corrections and company retrenchment of 2022. Now, reflecting on the last few years, the sector appears to be finding equilibrium once again, with stability returning and companies building with a measured pace of innovation under stronger regulatory frameworks and with a renewed focus on creating lasting value for customers and investors alike. Investors have, for the most part, returned with a more disciplined, fundamentals-driven approach that has seen fintech venture investment levels remain stable for the last three years and, importantly, at levels above those seen in 2019 and 2020. As Europe’s fintech ecosystem matures, this stability plays to our strengths as a specialist investor, allowing us to deploy capital selectively into high-conviction opportunities.
Our Seven-Year Journey
In
The Thawing Exit Market
The last six months have seen the exit market for fintech start to thaw with high profile IPOs in the US including Chime,
In addition to traditional M&A and IPO exits, 2025 has seen an increase in secondary market transactions, at both a company and a fund level, offering liquidity to early investors and employees alike. These transaction structures will serve as instructive precedents to other venture-backed companies who will look to provide liquidity to those investors who bore the risk and backed them at the earliest stages. We are hopeful that regulatory reforms will further enable this with venues such as PISCES offering a clear framework for secondary liquidity in the
This thawing is timely, as M&A accounted for 85% of fintech exits in recent years, providing resilient liquidity even in subdued IPO windows. With several portfolio companies approaching profitability and scale, we anticipate participating in this wave.
Policy and Long-Term View
We welcome the continued policy support that the
Venture capital should always be viewed over a long-term time horizon, and we believe that fintech companies specifically are showing signs of being able to deliver compelling returns within the asset class. Typically, a venture fund will have a lifecycle of 10 to 14 years. Cognisant of this, we feel positive about the position many of the portfolio companies are in, having either found scale or approaching inflection in their performance, setting themselves up to exit well within this time horizon.
Portfolio Resilience & NAV
The Company's portfolio has shown resilience through some of the toughest macroeconomic conditions in recent memory, and many of its constituents are now well positioned to double down on their position as fintech market leaders and deliver real returns to you as shareholders. None typify this more than
Tide
, who raised one of the largest European financing rounds this year at a
Overall, despite these strong foundations being laid, the NAV after performance fee of £266.8 million has remained broadly flat in the period. As you will read in the portfolio section, there has been significant progress made at many portfolio companies; we believe there is true momentum and many of the portfolio constituents are set up to deliver compelling exit events in the coming two years. Frustration remains that the progress made by some has not yet been reflected in the NAV, but we are confident that these quality companies will reward investor patience in the long run.
Our top 10 holdings grew revenues by 18% over the last 12 months, with four achieving profitability. At current levels, our market cap implies zero value for 23 positions beyond the top four plus cash.
Market Update
When we wrote to you in June as part of the annual results, we were cautious of the macro environment that was evolving in the face of broad uncertainty driven by market volatility, geopolitical disruption and shifting global dynamics. Overall, investor sentiment has improved since then with many global stock indices reaching all-time highs in the fourth quarter of 2025. While some commentators are beginning to ask questions of the sustainability of some of the valuations observed, particularly in those assets relating to AI infrastructure, at the time of writing the broader market appears largely stable.
Despite the recent boom-and-bust cycle we have observed, fintech companies globally have shown their resilience and ability to drive tangible value. The industry has grown from generating
European fintech continues to attract a meaningful share of investor attention and capital allocation; we view the resilient macro environment and thawing exit market as positive for overall momentum in the market. Continued trends such as talent recycling, regulatory clarity and political stability mean that
The trend of fintechs focusing on profitability and sustainable growth has continued and has clearly been accelerated with the efficiency gains provided by AI. According to a recent BCG report 1 , listed fintech businesses have seen double-digit revenue growth from 2022 to 2024 while increasing EBITDA fourfold over the same period. Much of this efficiency gain is rightly being directly attributed to the ability of AI to reduce costs across many fintech verticals.
Many generalist funds have continued to pull back from fintech investing, with their focus clearly shifting towards AI. As a result, we have observed a bifurcation in early stages of venture funding and valuation levels. A very small minority of businesses, often those that tell a compelling AI story, have been able to raise capital with valuations resembling the fundraising highs of 2021. While we fully recognise the transformational potential of AI, we believe that as a fintech investor we must focus on propositions that are truly solving complex issues with AI, like Artificial is doing in the insurance industry.
Despite much of this observed value creation driven by AI, we have seen some scepticism start to enter the market in relation to both the development and implementation of AI. Some investors have highlighted the circular nature of many AI investment deals that have taken place recently, while a recent
Used correctly AI can be a powerful tool and we are seeing efficiency gains across many portfolio companies; the Company’s top five assets have increased profit margin by an average of 59.2% in the period with the efficient use of AI helping this trend. An increasing focus for the portfolio in recent months has also been an increase in the usage of agentic AI, which is helping companies drive both top line performance and bottom-line margin.
Internally we continue to iterate on our technology stack and ensure that we are working as efficiently as possible while also surfacing compelling opportunities. Our investment team has been working with AI start-ups building at the bleeding edge of technology and leveraging the latest, most advanced models to help us improve internal efficiency and also surface the most compelling investment opportunities. Our proprietary
1
BCG and QED Investors’
Portfolio Highlights
As mentioned above, despite limited uplifts to NAV, we believe that there has been substantial progress made by many key portfolio companies that set them up for future success. Success in a venture portfolio should be viewed over a long time horizon and, seven years in, many of the portfolio’s constituents are now either at substantial scale or reaching a stage of inflection. The top five, representing 56.3% of NAV after performance fee, are growing revenues at a rate of 34% year-on-year, far outstripping incumbent comparables given the scale that these businesses are at.
The aforementioned BCG report estimated that of the 37,000 fintechs globally, less than 100 were generating more than
The portfolio now comprises 27 companies, having recently backed
Tide
remains the portfolio’s largest holding and has kept up strong momentum over the last 6 months culminating in closing a
One of the top performing companies in the portfolio this period has been
iwoca
which continues its mission to finance 1 million small businesses. Through its Flexi-Loan, which offers financing from £1 thousand up to £1 million,
iwoca
represents 1.5% of bank lending flows to
Following the tragic loss of founder and chairman
Volt continues to refine its business model and focus. The company has streamlined its team, with a 25% cost reduction, while strengthening its compliance and risk capabilities, and adding licencing to support entry into regulated verticals. Operationally, Volt now processes 90% of traffic through its own “rails”, improving margins and reducing third-party dependency. The pipeline remains promising, with new partnerships including DaoPay and Paylado, as well as upcoming integrations with tier 1 merchants across multiple verticals. Despite these encouraging initiatives, we have marked down our holding in Volt by £5.0 million to reflect a disappointing period of growth.
Grover
has now completed its restructuring and has a new Chairman and management team in place led by
Anyfin
has maintained strong momentum, with solid growth across
XYB
continues to pioneer a new category of Adaptive Financial Infrastructure (“AFI”), enabling banks to evolve legacy systems without the need for full replacement. For their efforts they have been named a Finovate Awards 2025 finalist and designated a trusted provider by
Intellis has spent considerable time in the last six months developing and testing new proprietary artificial intelligence models that will allow their success in FX trading to be translated into other markets such as commodities and digital assets later in the year. The team has also spent considerable time working through fund structuring to ensure they have the greatest leverage when they deploy their AI strategies into new markets or asset classes.
Wematch
continues to grow strongly as adoption of its platform expands across the global total return swap and securities lending markets. The company now supports over 1,300 individual users, with notional volumes up 52% year-on-year to
The digitisation of the insurance market remains a high priority for participants across the ecosystem. Artificial is emerging as one of the leading businesses facilitating this via their cutting-edge technology platform enabling algorithmic underwriting, something that has been impossible to deliver at scale across the industry with outdated legacy systems. Commercial traction continues to progress with Artificial signing multiple enterprise contracts with some of the largest stakeholders in the space; AON, Apollo, Axis, Gallagher and more. In October, they announced a partnership with McGill who will become the first broker to embed Artificial ’s smart placement technology end-to-end. The company’s prominence in the industry continues to accelerate with recent recognition in FinTech Global's prestigious InsurTech100 list as further validation.
In September,
Gemini
went public and commenced trading on the NASDAQ exchange in
Investments
Amid the market volatility observed, we maintain a disciplined approach to investing, focusing on category leaders with robust fundamentals that are able to deliver financial performance across stages in the cycle. We are also conscious to ensure the Company’s balance sheet remains robust in order to support portfolio constituents as and when they require capital for further growth. With a current cash position of around £22 million we will largely focus on supporting the existing portfolio until further exits materialise from the portfolio.
In June, we announced that we led a funding round of £4.5 million into retail investment platform
RetailBook
. The company addresses the challenge of limited retail investor access to primary capital markets by providing a platform for participation in investment opportunities, including IPOs, follow-on placings, and bond offerings, on the same terms as institutional investors. The service is accessed through established retail investment platforms such as
Exits and Realisations
There were no material exits during the period. However, post period end we announced the partial exit of our investment in Parafi , which returned £2.7 million, equivalent to our initial total cost. At our last year end Parafi was valued at £4.3 million and after this sale our residual holding value will still be at £3.9 million.
As mentioned above, we expect to see the exits from the portfolio accelerate in the next two years and these will build on our nine exits since IPO, which have averaged a 33% uplift on prior valuations, demonstrating our ability to maximise value.
Performance and Valuation Discipline
While we have seen a drop in the Company’s NAV per share of 2.0p over the past 6 months, which on the surface is disappointing, it masks the progress made across the portfolio by many key holdings. As at
Valuation remains a rigorous process governed by objective methodologies and approved by the Company’s Valuations Committee and Board. Public market comparables are used for 86% of the portfolio. Downside protections in the form of preferred shares and anti-dilution provisions are in place for 19 of the 27 companies, ensuring that investor capital is appropriately safeguarded.
Outlook
As Europe’s fintech ecosystem continues to evolve and reach new levels of maturity, we are witnessing the emergence of repeat founders who bring valuable experience and resilience, as well as a growing pool of highly skilled talent drawn from both established financial institutions and cutting-edge technology firms. These dynamics are fostering a new generation of ventures that are more ambitious in scale, more sophisticated in execution, and more globally minded in outlook. The confluence of these forces positions
We believe that the highest performing vintages are still to be delivered. The lessons learned from earlier cycles, combined with improved access to capital, regulatory support, and a more connected investor ecosystem, create an environment where innovation can thrive sustainably. Guided by patience, disciplined investment strategies, and a clear sense of purpose, we are committed to identifying and supporting the companies that will define the next era of fintech.
Our focus over the coming year will be to deliver realisations when a compelling opportunity presents itself. We hope this will further demonstrate the quality and resilience of the portfolio while also reducing the significant discount that has frustrated both manager and shareholders alike.
Thank you for your continued support.
CEO
.
Investments
Tide
Tide’s (www.tide.co) mission is to help small and mid-sized businesses (“SMEs”) save time and money in the running of their businesses. The company continues to build a comprehensive suite of digital banking services for its members, including automated accounting, savings, credit, business loans, card readers, invoicing and, following its acquisition of Onfolk in 2024, a payroll solution. Tide is also expanding geographically, with a significant business now established in
Source: Tide
30 Sept 31 March
2025 2025
£’000 £’000
Cost 19,376 19,376
Value 64,771 65,217
Valuation Methodology^ Rev. Multiple Rev. Multiple
As per last filed audited accounts of the investee company for the year to
2024 2023
£’000 £’000
Turnover 190,498 119,351
Pre tax loss (25,711) (43,714)
Net assets 27,300 19,372
^ See note 7 on pages 25 to 28.
Founded in 2020, with a full banking licence and backed by some of Silicon Valley’s most iconic investors, digital bank Zopa (www.zopa.com) is building the “Home of Money”.
Source:
30 Sept 31 March
2025 2025
£’000 £’000
Cost 33,670 33,670
Value 36,515 36,308
Valuation Methodology Earnings & Rev. Multiple Rev. Multiple
As per last filed audited accounts of the investee company for the year to
2024 2023
£’000 £’000
Operating income 298,612 223,544
Pre tax profit 28,774 10,828
Net assets 496,446 410,385
Founded in 2011, iwoca (www.iwoca.co.uk) uses award-winning technology to disrupt small business lending across
In
Source:
30 Sept 31 March
2025 2025
£’000 £’000
Cost 7,852 7,852
Value 17,668 14,478
Valuation Methodology Earnings Multiple Earnings Multiple
As per last filed audited accounts of the investee company for the year to
2024 2023
£’000 £’000
Turnover 234,160 142,584
Pre tax profit 59,133 21,784
Net assets 94,686 54,976
BullionVault
BullionVault (www.bullionvault.com) is a physical gold and silver market for private investors online. It enables people across 175 countries to buy and sell professional-grade bullion at competitive prices online. BullionVault currently has £5 billion of assets under management, with over £75 million worth of gold and silver traded monthly.
Each user’s property is stored in secure, specialist vaults in
The BullionVault holding was one of the seed assets acquired by the Company at its IPO in
Source: BullionVault
30 Sept 31 March
2025 2025
£’000 £’000
Cost 8,424 8,424
Value 16,376 16,406
Valuation Methodology Earnings Multiple Earnings Multiple
Dividends paid 799 400
As per last filed audited accounts of the investee company for the year to
2024 2023
£’000 £’000
Turnover 336,297 288,113
Pre tax profit 18,937 13,023
Net assets 53,307 46,323
Volt
Volt (www.volt.io) is building the infrastructure for global real-time payments. Launched in 2019, its payment network is the first to unite domestic account-to-account schemes to a single interoperable standard. Scaling and enterprise businesses use it to accept real-time payments (via a Pay by Bank option at checkout), initiate payouts and manage funds. In doing so, they benefit from faster settlement times, lower fees, and full visibility of payment value chains.
Headquartered in
Recent milestones for Volt include partnerships with Farfetch and Pay.com, the development of its one-click checkout in
Source: Volt
30 Sept 31 March
2025 2025
£’000 £’000
Cost 9,800 9,800
Value 15,000 20,021
Valuation Methodology Rev. Multiple Rev. Multiple
As per last filed audited accounts of the investee company for the year to
2023 2022
£’000 £’000
Turnover 12,887 3,885
Pre tax loss (11,542) (16,886)
Net assets/(liabilities) 38,724 (1,222)
Grover
Source: Grover
30 Sept 31 March
2025 2025
£’000 £’000
Cost 13,745 13,745
Value 14,382 14,058
Valuation Methodology Rev. Multiple Rev. Multiple
As an unquoted German company, Grover is not required to publicly file audited accounts.
Anyfin
Anyfin (www.anyfin.com) was founded in 2017 by former executives of
Anyfin is currently available in
Source: Anyfin
30 Sept 31 March
2025 2025
£’000 £’000
Cost 10,768 10,738
Value 11,253 11,252
Valuation Methodology Rev. Multiple Rev. Multiple
As an unquoted Swedish company, Anyfin is not required to publicly file audited accounts.
XYB
XYB (www.xyb.co) offers a platform for modern adaptive financial infrastructure. Launched by Monese in
In 2024, XYB partnered with IBM to provide technologies and consulting expertise that can help financial services organisations address the growing requirements for core modernisation initiatives. The BaaS sector shows strong growth as established banks and fintech companies continue to bring innovative digital products to market.
Source: XYB
30 Sept 31 March
2025 2025
£’000 £’000
Cost* 11,452 10,635
Value 11,156 12,619
Valuation Methodology Rev. Multiple Rev. Multiple
* Includes legacy Monese investment costs attributable to the XYB business.
As per last filed audited accounts of the investee company for the year to
2023 2022
£’000 £’000
Turnover 35,557 n/a
Pre tax profit 13,758 n/a
Net assets/(liabilities) 1,076 n/a
Intellis
Intellis (https://intellis.ch), based in
Following an initial investment of €1 million in 2019,
Source: Intellis
30 Sept 31 March
2025 2025
£’000 £’000
Cost 2,696 2,696
Value 11,114 11,114
Valuation Methodology Earnings Multiple P/E Multiple
As an unquoted Swiss company, Intellis is not required to publicly file audited accounts.
Gemini
Gemini (www.gemini.com) enables individuals and institutions to safely and securely buy, sell and store cryptocurrencies. Gemini was founded in 2014 by Cameron and
In
Source: Gemini
30 Sept 31 March
2025 2025
£’000 £’000
Cost 10,150 10,150
Value 8,522 9,314
Valuation Methodology Closing price Rev. Multiple
Artificial
Artificial (www.artificial.io) is an established underwriting technology provider for the London Insurance Market. This
Wematch
Wematch (www.wematch.live) is a capital markets digital trading and workflow platform that helps financial institutions transition liquidity to an orderly electronic service, improving productivity and de-risking the process of voice broking. Their solution helps traders find liquidity, negotiate, trade, optimise and manage the lifecycle of their portfolios of assets and trade structures in the securities trading space.
Created in 2017, Wematch is headquartered in
Tesseract
Tesseract provides an enabling crypto infrastructure to connect digital asset lenders with digital asset borrowers. This brings enhanced capital efficiency with commensurate cost reduction to trading, in a space that is currently significantly under-leveraged relative to traditional capital markets.
Pemo
Founded in 2022, Pemo (www.pemo.io) provides an expense management and business payments solution, via corporate cards, to SME businesses in the
Headquartered in
Baobab
Operating as a data-first MGA (Managing
In
RetailBook
RetailBook (www.retailbook.com) is an
RetailBook pioneered retail access to primary markets in the
Epsor
Epsor (www.epsor.fr) is a
LoopFX
LoopFX (www.theloopfx.com) is a
LoopFX has secured integrations with major trading platforms, including State Street’s
Sfermion
Sfermion (www.sfermion.io) is an investment fund focused on the metaverse. Their goal is to accelerate the emergence of the open metaverse by investing in the founders, companies, and entities utilising technologies such as web3, artificial intelligence, and augmented and virtual reality to create the infrastructure and environments forming the foundations of our digital future.
In
Wayhome
Wayhome (www.wayhome.co.uk) offers a unique part-own part-rent model of home ownership, requiring as little as 5% deposit with customers paying a market rent on the portion of the home that they don’t own, with the ability to increase the equity in the property as their financial circumstances allow. Wayhome launched to the public in
Wayhome opens up owner-occupied residential property as an asset class for pension funds, who will earn inflation-linked rent on their investment.
Habito
Habito (www.habito.com) is reshaping the United Kingdom’s £1.3 trillion mortgage market by removing complexity, hidden costs, and friction from the home financing experience. The company’s mission is to make homeownership across the
Since launching in 2016, Habito has supported over 500,000 customers and facilitated more than £11 billion in mortgages. The business combines proprietary technology with expert advice to deliver a transparent, efficient alternative to the traditional mortgage process. Building on its core broking proposition, Habito has expanded into a fully integrated home-buying platform. Habito Plus offers customers an end-to-end solution – combining mortgage broking, conveyancing, and surveying – into one seamless, digital-first experience. In 2025, Habito was awarded Best Broker for Digital Innovation at the Mortgage Strategy Awards, recognising its continued leadership in transforming how
In
Castelnau Group
Castelnau Group Limited is a listed investment company that is now held following the share-for-share acquisition of Farewill, which was introduced to the portfolio in 2019, by
Founded in 2015,
By aggregating their demand into a crowd capable of participating as a market,
Augmentum’s holding derives from WhiskeyInvestDirect being spun out of BullionVault in 2020.
.
Condensed Consolidated Statement of Comprehensive Income
For the six months ended
Six months ended Six months ended
30 September 2025 30 September 2024
Notes Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Losses on investments held - (724) (724) - (4,295) (4,295)
at fair value
Investment income 486 - 486 894 - 894
AIFM and Performance Fees 2 (287) - (287) (303) - (303)
Other expenses (2,626) (6) (2,632) (2,630) (138) (2,768)
Loss before taxation (2,427) (730) (3,157) (2,039) (4,433) (6,472)
Taxation - - - - - -
Loss attributable to
equity shareholders of the (2,427) (730) (3,157) (2,039) (4,433) (6,472)
parent company
Loss per share (pence) 3 (1.4) (0.5) (1.9) (1.2) (2.6) (3.8)
The total column of this statement represents the Group’s Consolidated Income Statement, prepared in accordance with IFRS as adopted by the
The revenue and capital columns are supplementary to this and are prepared under guidance published by the
The Group does not have any other comprehensive income and hence the total return, as disclosed above, is the same as the Group’s total comprehensive income.
All items in the above statement derive from continuing operations.
All returns are attributable to the equity holders of
.
Condensed Consolidated Statement of Changes in Equity
For the six months ended
Six months ended 30 September
2025
Ordinary Share Other
Group share premium Special capital Revenue
capital account reserve reserve reserve Total
£’000 £’000 £’000 £’000 £’000 £’000
Opening shareholders’ funds 1,810 105,383 77,933 124,046 (23,756) 285,416
Loss for the period - - - (730) (2,427) (3,157)
At 30 September 2025 1,810 105,383 77,933 123,316 (26,183) 282,259
Six months ended 30 September
2024
Ordinary Share Other
Group share premium Special capital Revenue
capital account reserve reserve reserve Total
£’000 £’000 £’000 £’000 £’000 £’000
Opening shareholders’ funds 1,810 105,383 80,609 135,293 (19,778) 303,317
Purchase of own shares into - - (2,210) - - (2,210)
treasury
Loss for the period - - - (4,433) (2,039) (6,472)
At 30 September 2024 1,810 105,383 78,399 130,860 (21,817) 294,635
.
Condensed Consolidated and Company Statement of Financial Position
as at
30 September 31 March
Note 2025 2025
£’000 £’000
Non current assets
Investments held at fair value 7 260,329 255,997
Property, plant & equipment 123 1559
Current assets
Right of use asset 213 288
Other receivables 117 218
Cash and cash equivalents 22,428 32,256
Total assets 283,210 288,914
Current liabilities
Other payables (685) (3,161)
Lease liability (266) (337)
Total assets less current liabilities 282,259 285,416
Net assets 282,259 285,416
Capital and reserves
Called up share capital 4 1,810 1,810
Share premium account 4 105,383 105,383
Special reserve 77,933 77,933
Retained earnings:
Capital reserves 123,316 124,046
Revenue reserve (26,183) (23,756)
Total equity 282,259 285,416
NAV per share (pence) 5 168.7 170.6
NAV per share after performance fee (pence) 5 159.5 161.5
.
Condensed Consolidated Statement of Cash Flows
For the six months ended
Six months Six months
ended ended
30 September 30 September
2025 2024
£’000 £’000
Cash flows from operating activities
Purchases of investments (8,734) (12,590)
Sales of investments 748 9,930
Acquisition of property, plant and equipment (7) (7)
Interest received 528 945
Operating expenses paid (2,363) (2,681)
Net cash outflow from operating activities (9,828) (4,403)
Cash flow from financing activities
Purchase of own shares into Treasury - (2,327)
Net cash outflow from financing - (2,327)
Decrease in cash and cash equivalents (9,828) (6,730)
Cash and cash equivalents at the beginning of the 32,256 38,505
period
Cash and cash equivalents at the end of the period 22,428 31,775
.
Notes to the Financial Statements
For the six months ended
1.a General information
These condensed interim financial statements were approved for issue on
The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.
The financial statements have been reviewed, not audited.
1.b Basis of preparation
This condensed consolidated interim financial report for the half-year reporting period ended 30
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for the adoption of new and amended standards as set out below.
1.c New and amended standards adopted by the Group
No new or amended standards became applicable for the current reporting period that have an impact on the Group or Company.
1.d Going Concern
The Directors believe that it is appropriate to adopt the going concern basis in preparing these condensed consolidated financial statements, as the Board considers the Group has sufficient financial resources to continue in operation for at least the next 12 months from the date of signing of these financial statements.
1.e Segmental Analysis
The Group operates a single business segment for reporting purposes and is managed as a single investment company. Reporting is provided to the Board of Directors on an aggregated basis. The investments are all located in the
1.f Related Party Transactions
There have been no changes to the nature of the related party arrangements or transactions during the period to those reported in the Annual Report for the year ended
1.g Events after the reporting period
There have been no significant events since the end of the reporting period requiring disclosure.
2 AIFM and Performance Fees
Six months Six months
ended ended
30 September 30 September
Revenue Capital 2025 Revenue Capital 2024
£’000 £’000 £’000 £’000 £’000 £’000
AIFM fees 287 - 287 303 - 303
Performance fee - - - - - -
287 - 287 303 - 303
A performance fee is payable by the Company to AFML when the Company has realised an aggregate annualised 10% return on investments (the
hurdle’) in each basket of investments. Based on the investment valuations and the hurdle level as at
The performance fee is only payable to AFML if the hurdle is met on a realised basis. See page 25 and Note 18.9 of the 2025 Annual Report for further details.
3 Loss per share
The loss per share figures are based on the following figures:
Six months Six months
ended ended
30 September 30 September
2025 2024
£’000 £’000
Net revenue loss (2,427) (2,039)
Net capital loss (730) (4,433)
Net total loss (3,157) (6,472)
Weighted average number of ordinary shares in issue 169,831,285 169,352,855
Pence Pence
Revenue loss per share (1.4) (1.2)
Capital loss per share (0.5) (2.6)
Total loss per share (1.9) (3.8)
4 Share capital
As at
During the year to
5 Net asset value (“NAV”) per share
The NAV per share is based on the Group net assets attributable to the equity shareholders of £282,259,000 (31
The NAV per share after performance fee* is based on the Group net assets attributable to the equity shareholders, less the performance fee accrual made by the Company of £15,404,000 (31
* Alternative Performance Measure
6 Subsidiary undertakings
The Company has an investment in the issued ordinary share capital of its wholly owned subsidiary undertaking,
7 Financial Instruments
The principal risks the Company faces from its financial instruments are:
• Market Price Risk
• Liquidity Risk; and
• Credit Risk
Market Price Risk
Market price risk arises mainly from uncertainty about future prices of financial instruments in the Group’s portfolio. It represents the potential loss the Group might suffer through holding market positions in the face of price movements, mitigated by stock diversification.
The Group is exposed to the risk of the change in value of its unlisted equity and non-equity investments. For unlisted equity and non-equity investments the market risk is principally deemed to be represented by the assumptions used in the valuation methodology as set out in the accounting policy.
Liquidity Risk
The Group’s assets comprise unlisted equity and non-equity investments. Whilst unlisted equity is illiquid, short-term flexibility is achieved through cash and cash equivalents.
Credit Risk
The Group’s exposure to credit risk principally arises from cash and cash equivalents. Only highly rated banks (with credit ratings above A3, based on Moody’s ratings or the equivalent from another ratings agency) are used for cash deposits and the level of cash is reviewed on a regular basis.
Further details of the Company’s management of these risks can be found in note 13 of the Company’s 2024 Annual Report.
There have been no changes to the management of or the exposure to credit risk since the date of the Annual Report.
Fair Value Hierarchy
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction.
The Group complies with IFRS 13 in respect of disclosures about the degree of reliability of fair value measurements. This requires the Group to classify, for disclosure purposes, fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.
The levels of fair value measurement bases are defined as follows:
Level 1: fair values measured using quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: fair values measured using valuation techniques for all inputs significant to the measurement other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: fair values measured using valuation techniques for which any significant input to the valuation is not based on observable market data (unobservable inputs).
Two investments were classified as Level 1 and valued at £9,759,000 as at
When using the price of a recent transaction in the valuations, the Company looks to ‘re-calibrate’ this price at each valuation point by reviewing progress within the investment, comparing against the initial investment thesis, assessing if there are any significant events or milestones that would indicate the value of the investment has changed and considering whether a market-based methodology (ie. using multiples from comparable public companies) or a discounted cashflow forecast would be more appropriate.
The main inputs into the calibration exercise, and for the valuation models using multiples, are revenue, EBITDA, AuM, and P/E multiples (based on the most recent revenue, EBITDA, AuM, or earnings achieved and equivalent corresponding revenue, EBITDA, AuM, or earnings multiples of comparable public companies), quality of earnings assessments and comparability difference adjustments. Revenue multiples are often used, rather than EBITDA or earnings, due to the nature of the Group’s investments, being in fast-growing, small financial services companies which are not normally expected to achieve profitability or scale for a number of years. Where an investment has achieved scale and profitability the Group would normally then expect to switch to using an EBITDA or earnings multiple methodology.
The main input into the PWERM (‘Probability Weighed Expected Return Methodology’) is the probability of conversion. This method is used for the convertible loan notes held by the Company.
The fair valuation of private company investments is influenced by the estimates, assumptions and judgements made in the fair valuation process. A sensitivity analysis is provided below which recognises that the valuation methodologies employed involve subjectivity in their significant unobservable inputs and illustrates the sensitivity of the valuations to these inputs. The inputs have been flexed with the exception of the Sales Price valuation approach as it does not involve significant subjectivity. The table also provides the range of values for the key unobservable inputs.
As at
Weighted
Fair value Other Applied average Sensitivity Change in
Valuation of Key unobservable Multiple multiple +/- valuation
approach investments unobservable inputs* Range applied# % +/(-)
£’000 inputs £’000
Market Revenue 17,358/
approach 214,746 Multiple a, b, c, g 0.9x-25.7x 7.3x 10% (17,355)
using
comparable Earnings 7,032/
traded Multiple a, b, c, g 7.4x-13.0x 10.1x 10% (7,032)
multiples
AUM Multiple a, b, c, g 0.1x 0.1x 10% 288/-
Illiquidity d, g 0%-88% 22.3% 30% 22,849/
discount (10,631)
Transaction 10,625/
implied e, g 9.9%-223.4% 48.4% 30% (10,078)
premiums
Net Asset 9,856 Discount to a n/a n/a 10% (982)
Value** NAV
Probability
PWERM 3,250 of a n/a n/a 25% 136/(136)
conversion
CPORT^ 21,150 Transaction a, e, g n/a n/a 10% 2,939/
price (2,939)
Expected Execution
transaction 1,566 risk a,f n/a n/a n/a 157/(157)
price discount
Quoted 9,759 n/a n/a n/a n/a n/a n/a
Price
# Weighted average is calculated by reference to the fair value of holdings as at the respective year-end. This therefore gives a clearer indication of the typical multiple or adjustment being applied across the portfolio.
** LP (‘Limited Partnership’) investments are held at net asset values provided by the relevant LP fund administrators. These are adjusted by benchmark movements as appropriate.
^ Whilst a recent or expected transaction price may be the most appropriate basis for a valuation, it will be corroborated by other techniques which factor in the unobservable inputs noted below.
As at
Weighted
Fair value Other Applied average Sensitivity Change in
Valuation of Key unobservable Multiple multiple +/- valuation
approach investments unobservable inputs* Range applied# % +/(-)
£’000 inputs £’000
Market Revenue 0.8x – 21,398/
approach 222,019 Multiple a, b, c, g 18.4x 6.2x 10% (21,812)
using
comparable Earnings 5.6x – 3,659/
traded Multiple a, b, c, g 15.8x 9.8x 10% (3,359)
multiples
AUM Multiple a, b, c, g - - - -
Illiquidity d, g 7% - 80% 21.1% 30% 26,080/
discount (22,988)
Transaction
implied e, g 20% - 62.4% 30% 7,209/
premiums and 180% (8,393)
discounts
Net Asset 6,509 Discount to a n/a n/a 10% (350)
Value** NAV
Probability
PWERM 8,756 of a n/a n/a 25% 319/(399)
conversion
Expected Execution
transaction - risk a,f n/a n/a n/a n/a
price discount
CPORT^ 16,351 Transaction a, e, g n/a n/a 10% 1,710/
price (1,710)
Sales Price 2,361 n/a n/a n/a n/a n/a n/a
*Significant unobservable inputs
The variable inputs applicable to each broad category of valuation basis will vary dependent on the particular circumstances of each private company valuation. An explanation of each of the key variable inputs is provided below. The assumptions and decisions process in relation to the inputs is described in note 18.12 within the Annual Report.
(a) Application of valuation basis
Each investment is assessed independently, and the valuation basis applied will vary depending on the circumstances of each investment. When an investment is pre-revenue, the focus of the valuation will be on assessing the recent transaction and the achievement of key milestones since investment. Adjustments may also be made depending on the performance of comparable benchmarks and companies. For those investments where a trading multiples approach can be taken, the methodology will factor in revenue, earnings or assets under management as appropriate for the investment..
(b) Selection of comparable companies
The selection of comparable companies is assessed individually for each investment and the relevance of the comparable companies is continually evaluated at each valuation date. Key criteria used in selecting appropriate comparable companies are the industry sector in which they operate, the geography of the company’s operations, the respective revenue and earnings growth rates, operating margins, company size and development stage. Typically, between 4 and 10 comparable companies will be selected for each investment, but this can vary depending on how many relevant comparable companies are identified. The resultant revenue or earnings multiples or share price movements derived will vary depending on the companies selected and the industries they operate in. Given the nature of the investments the Company makes there are not always directly comparable listed companies, in such cases comparables will be selected whose businesses bear similarity to the relevant investment, in such cases the need for an additional discount / premium to the comparables will be assessed at each valuation date.
(c) Estimated sustainable revenue or earnings
The selection of sustainable revenue or earnings will depend on whether the company is sustainably profitable or not, and where it is not then revenues will be used in the valuation. The valuation approach will typically assess companies based on the last twelve months of revenue or earnings, as they are the most recent available and therefore viewed as the most reliable. Where a business has volatile earnings on a year-on-year basis, revenue or earnings may be assessed over a longer period. Where a company has reliably forecasted earnings previously or there is a change in circumstance at the business which will impact earnings going forward, then forward estimated revenue or earnings may be used instead.
(d) Application of illiquidity discount
An illiquidity discount may be applied either through the calibration of a valuation against the most recent transaction, or by application of a specific discount. The discount applied where a calibration (see (e) below) is not appropriate is dependent on factors specific to each investment, such as quality of earnings or revenues and potential exit scenarios.
(e) Transaction implied premium and discount
Where there is an implied company valuation available as a result of an external arm's length transaction, the ongoing valuation will be calibrated to this by deriving a company valuation with reference to the average multiple from a set of comparable companies and comparing this to a transaction implied valuation. This can result in an implied premium or discount compared to comparable companies at the point of transaction. This discount or premium will be considered in future valuations and may be reduced due to factors such as the time since the transaction and company performance. Where a calibrated approach is not appropriate, a discount for illiquidity may be applied as noted in (d) above.
(f) Execution risk
An execution risk discount is applied to all investments where an arm’s-length transaction is due to take place but hasn’t closed prior to the reporting period end. The discount applied is dependent on the progress of the negotiations and outstanding matters that may impact on the expected price. When valuing in line with an expected transaction the arm’s-length nature of the deal will be assessed, and term sheets will have been received.
(g) Liquidity preference
The company’s investments are typically venture investments with downside protections such as liquidation preference and anti-dilution provisions. Unlike ordinary share structures typically seen in the public or private markets, these structures protect the value of the Company’s position in the event of a reduction in the enterprise value of an investee company from the price paid. Where a valuation indicates the enterprise value of an investment has fallen the enterprise value will be fed into the investee companies’ ‘waterfall’ (which ranks shares by seniority/preference in the event of a liquidation event) to calculate the value of the Company’s position.
The following table presents the movement of investments measured at fair value, based on fair value measurement levels.
Level 3
Six months to Year to
30 September 31 March
2025 2025
£’000 £’000
Opening balance 255,997 265,083
Purchases at cost 5,804 18,878
Realisation proceeds (748) (16,882)
Losses on investments held at fair value (724) 11,082
Closing balance as at 30 September 260,329 255,997
.
Independent Review Report to
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended
Basis for conclusion
We conducted our review in accordance with the International Standard on Review Engagements (
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with ISRE (
Responsibilities of directors
The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom’s
In preparing the half-yearly financial report, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statement in the half-yearly financial report. Our conclusion, including our Conclusions Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.
Use of our report
Our report has been prepared in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Disclosure Guidance and Transparency Rules of the United Kingdom’s
Chartered Accountants
.
Interim Management Report
Principal Risks and Uncertainties
A review of the half year and the outlook for the Company can be found in the Chairman’s Statement and in the Portfolio Manager’s Review. The principal risks and uncertainties faced by the Company fall into the following broad categories: investment risks; portfolio diversification risk; cash risk; credit risk; valuation risk; operational risk; and key person risk. Information on these risks is given in the Annual Report for the year ended 31
The Board believes that the Company’s principal risks and uncertainties have not changed materially since the date of that report and are not expected to change materially for the remaining six months of the Company’s financial year.
Related Party Transactions
During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Group.
Going Concern
The Directors believe, having considered the Company’s investment objective, risk management policies, capital management policies and procedures, and the nature of the portfolio and the expenditure projections, that the Group has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future.
Directors’ Responsibilities
The Board of Directors confirms that, to the best of its knowledge:
(i)
the condensed set of financial statements contained within this Half Year Report has been prepared in accordance with Accounting Standard IAS 34, ‘Interim Financial Reporting’, as adopted in the
(ii) the condensed set of financial statements give a true and fair view of the assets, liabilities, financial position and return of the issuer and the undertakings included in the consolidation; and
(iii)
the Half Year Report includes a fair review of the information required by 4.2.7R and 4.2.8R of the
In order to provide these confirmations, and in preparing these financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• state whether applicable IFRS have been followed, subject to any material departures disclosed and explained in the financial statements; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business;
and the Directors confirm that they have done so.
On behalf of the Board of Directors
Chairman
.
Glossary and Alternative Performance Measures
Alternative Investment Fund Managers Directive (“AIFMD”)
Agreed by the
Alternative Performance Measures (“APMs”)
The measures the Board of Directors uses to assess the Company’s performance that are not defined under the International Financial Reporting Standards but which are viewed as particularly relevant for investment trusts. Definitions of the terms used and the basis of calculation are set out in this Glossary and the APMs are indicated with an asterisk (*).
Convertible Loan Note
A convertible loan note is a loan which bears interest and is repayable but may convert into shares under certain circumstances.
Discount or Premium
A description of the difference between the share price and the net asset value per share. The size of the discount or premium is calculated by subtracting the share price from the net asset value per share and is usually expressed as a percentage (%) of the net asset value per share. If the share price is higher than the net asset value per share the result is a premium. If the share price is lower than the net asset value per share, the shares are trading at a discount.
EBITDA
Earnings before
interest, taxes, depreciation and amortisation.
Gross IRR on Capital Deployed
Is the annualised return arising on investment related cash flows taking account of the timing of each cash flow, and assuming all investments are realised at their carrying value at the period end. It does not take account of the Group's expenses or transactions with shareholders. It is derived by computing the discount rate at which the present value of all investment related cash flows are equal to the original amounts invested.
Initial Public Offering (“IPO”)
An IPO is a type of public offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors. Through this process, colloquially known as floating, or going public, a privately held company is transformed into a public company.
Internal Rate of Return (“IRR”)
Is the annualised return on an investment calculated from the cash flows arising from that investment taking account of the timing of each cash flow. It is derived by computing the discount rate at which the present value of all subsequent cash flows arising from an investment are equal to the original amount invested.
Performance fee – Company
AFML is entitled to a performance fee (previously referred to as carried interest) in respect of the performance of the Company's investments. Each performance fee operates in respect of investments made during a 24 month period and related follow-on investments made for a further 36 month period, save that the first performance fee shall be in respect of investments acquired using 80% of the net proceeds of the Company’s IPO in
Subject to certain exceptions, AFML will receive, in aggregate, 15% of the net realised cash profits from the sale of investments made over the relevant period once the Company has received an aggregate annualised 10% realised return on investments (the ‘hurdle’) made during the relevant period. AFML's return is subject to a ‘’catch-up’’ provision in its favour.
The performance fee is paid in cash as soon as practicable after the end of each relevant period, save that at the discretion of the Board payments of the performance fee may be made in circumstances where the relevant basket of investments has been realised in part, subject to claw-back arrangements in the event that payments have been made in excess of AFML’s entitlement to any performance fees as calculated following the relevant period.
The performance fee payable by the Company to AFML is accrued in the Company's financial statements and eliminated on consolidation in the Group financial statements.
NAV per share Total Return*
The theoretical total return on the NAV per share, reflecting the change in NAV during the period assuming that any dividends paid to shareholders were reinvested at NAV at the time the shares were quoted ex-dividend. This is a way of measuring investment management performance of investment trusts which is not affected by movements in the share price discount/premium.
Net Asset Value (“NAV”)
The value of the Group’s assets, principally investments made in other companies and cash being held, minus any liabilities. The NAV per share is also described as ‘shareholders’ funds’ per share. The NAV is often expressed in pence per share after being divided by the number of shares in issue. The NAV per share is unlikely to be the same as the share price, which is the price at which the Company’s shares can be bought or sold by an investor. The share price is determined by the relationship between the demand and supply of the shares.
Net Asset Value (“NAV”) per share after performance fee*
The NAV of the Group as calculated above less the performance fee accrual made by the Company divided by the number of issued shares.
Net Asset Value (“NAV”) per share after performance fee total return*
The Directors regard the Group’s NAV per share after performance fee total return as being the critical measure of value delivered to shareholders over the long term. The Board considers that the NAV per share after performance fee better reflects the current value of each share than the consolidated NAV per share figure, the calculation of which eliminates the performance fee.
Partnership
Total Shareholder Return*
The theoretical total return per share reflecting the change in share price during the period and assuming that any dividends paid were reinvested at the share price at the time the shares were quoted ex-dividend.
Unquoted investment
Investments in unquoted securities such as shares and debentures which are not quoted or traded on a stock market.
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The half year report will shortly be available for inspection on the Company's website (https://augmentum.vc) and the National Storage Mechanism website ( https://data.fca.org.uk/#/nsm/nationalstoragemechanism ).
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