GUINNESS AIM EIS Investor Report H1 2018

Transcription

1 GUINNESS AIM EIS 2014 Investor Report H

2 FUND SUMMARY (AS OF 5 TH APRIL 2018) Highlights - The portfolio has been substantially realised, with sold positions generating cash proceeds equivalent to 111% of original subscription before fees, and at an average uplift on original purchase cost of 43% - As at 5 th April, there are 6 positions still held in the portfolio - The portfolio (including dividends and proceeds but before fees) has risen 41% since inception Fund Manager Commentary Stock markets started quietly during this period and rose strongly in early January only to fall back sharply in February and March. Sentiment has weakened, with the expectation of rising interest rates and increasing trade tensions. The AIM market has remained relatively flat over this period while individual elements have demonstrated substantial volatility. Liquidity in the smaller companies in this portfolio has been poor. Sales up to 5 April 2018 We made good progress in the early part of this period selling positions once they had passed the three year termination date. Our most successful sales were in Premier Technical Services (+256%) AFH Financial (+76%), Ergomed (+22%) and eg Solutions (+73%) (notwithstanding the loss of tax reliefs for investors on this holding as flagged in the last report). We sold all of our investments in Byotrol and second tranche of Eagle Eye Solutions at around cost, and exited at a loss from Union Jack Oil (-66%), APC Technology (-65%), and Angle (-26%). Up to 5 th April, we had made partial sales at a profit in Bilby, Chapel Down and Tavistock and at a small loss in Coral Products. Since the 5 th April we have successfully sold the remainder of Chapel Down at 62.5p per share (+123%) Remaining Portfolio The principal remaining position is in Heartstone. Heartstone is a very successful and profitable pub management business had intended to go public on AIM at the time of our investment, however remains a private company. They have been trading well and added 2 new properties to their estate this year. The management of the company are looking into providing liquidity opportunities for investors. The remaining AIM-listed holdings are small, but we have been unable to sell all of the holdings at the s we feel they should command. Bilby, which has had a mixed record, produced some excellent results and we sold some of the holding on the back of that announcement. Coral Products, another company with a mixed trading record, remains a tight market. Tavistock has been partially realised and Venn Life only reached its termination date recently and its shares have been shunned by the market although it appears to be trading well and in a buoyant sector. 2

3 Summary We will continue to sell down the remaining shares in your portfolio and look to make a final cash transfer on 30 June 2018, net of any Performance Fees. If at 30 June 2018 there are still shares remaining in your portfolio, we will ask you if you would like us to continue holding these on your behalf while we seek an exit, or whether you would like us to make an in specie distribution so you can hold the shares directly. Either way, Guinness will not charge you any further annual management charge for managing the remaining sales. Guinness AIM 2014 is our first Approved AIM EIS service. The Government have tightened the rules for qualifying investments during the course of your investment with us but we hope that for those who are prepared for the volatility and risk attaching to the investee companies the experience has been more positive than negative! Thank you for entrusting us with your savings and please do contact us if you require further information. Andrew Martin Smith Fund Manager, Guinness AIM EIS 3

4 PORTFOLIO AT 5 TH APRIL 2018 Stock Ticker % of Portfolio on Price 5 Apr Apr 2018 % 1 year change % Change on Bilby Plc BILB.L 2.4% 58p 38p 94p 147% 62% Chapel Down Group Plc CDGP.L 4.9% 28p 87p 52p -40% 86% Coral Products Plc CRU.L 3.6% 13.5p 15p 10p -33% -26% Heartstone Inns pre-ipo 4.9% 115p 115p 147p 28% 28% Tavistock s plc TAVI.L 2.0% 2p 2.7p 3p 11% 50% Venn Life Sciences Plc VENN.L 4.5% 19p 16.5p 5.5p -67% -71% Sold Holdings 77.7% 43% Total 37% Dividends 4% Portfolio Value 41% DISPOSALS Stock Ticker % of Portfolio on Price Disposal % Change on AFH Financial Plc AFHP 10.0% 140.0p p 76% Angle Plc AGL 3.1% 65.0p 48.00p -26% APC Technology APCC 4.4% 22.0p 7.75p -65% Bilby Plc BILB 0.6% 58.0p p 95% Byotrol Plc BYOT 4.4% 3.0p 3.07p 2% Chapel Down Group Plc CDGP 1.7% 28.0p 60.86p 117% Coral Products Plc CRU 7.5% 13.5p 12.80p -5% Eagle Eye Group Plc EYE 2.9% p p 33% eg Solutions Plc EGS 6.7% 65.0p p 73% Ergomed Plc ERGO 7.8% 160.0p p 22% FairFX Group Plc FFS 4.4% 45.0p 74.00p 64% PhotonStar LED Group Plc PSL 6.2% 7.0p 1.00p -86% Premier Tech Services Group PTSG 7.2% 52.0p p 256% SRT Marine Systems SRT 3.2% 18.0p 43.25p 140% Tavistock s Plc TAVI 3.3% 2.0p 3.12p 56% Union Jack Oil Plc UJO 4.1% 0.27p 0.09p -66% Total 77.7% 43% Notes 1. The above table excludes all fund charges. Guinness Asset Management is deferring all its charges to be paid from the proceeds of s (which may include dividends). This deferral of fees is expected to have a positive impact for Investors, as it has enabled us to invest 100% of your Subscription in Investee Companies and, therefore, maximise the amount that you can receive EIS Relief on. 4

5 2. As shown above, dividends have been received from some companies in the portfolio. These are credited direct to your account at The Share Centre. These dividends may incur income tax, and you will receive a Composite Tax Certificate from The Share Centre after the end of each tax year. 3. Share s are the closing bid s on 5 April Important Notice This Investor Update is for information only and does not form part of an offer or invitation to purchase, subscribe for or dispose of securities. All the information contained in it is believed to be reliable but may be inaccurate or incomplete; any opinions stated are honestly held at the time of writing, but are not guaranteed. The contents should not therefore be relied upon. This Investor Update is provided for background purposes only. The value of these investments can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. Guinness Asset Management Limited is authorised and regulated in the United Kingdom by the Financial Conduct Authority, 25 North Colonnade, Canary Wharf, London E14 5HS. Tel: eis@guinnessfunds.com Phone calls may be recorded 5