Unicorn AIM VCT plc January 2015

Transcription

1 Unicorn AIM VCT plc January 2015

2 Introduction to AIM The Alternative Investment Market (AIM) is the world s leading market for smaller, growing companies from across the globe. It offers companies from any sector the chance to go public at an earlier stage in their development Since AIM s inception in 1995, over 3,524 admissions have been completed and more than billion raised, helping companies to fund future growth and expansion AIM market (as at end June 2014): Total number of companies: 1,104 UK companies: 882 Non-UK companies: 222 (57 countries) What does an AIM quotation offer? A flexible regulatory regime; access to a unique, globally respected market; access to a wide pool of capital; increased status and credibility; easier rules on acquisition 2

3 Introduction to AIM Number of companies Distribution of companies by equity market value Market value range m ,000 3 Over 1,000 A large number of the +1,100 companies listed on AIM will be at an early development stage. However, there are also many mature, profitable and dividend paying companies It is therefore important to be highly selective when picking AIM companies, conducting thorough and detailed analysis Smaller dividend paying companies are attracting attention from institutional investors, as dividend growth from the UK s largest companies becomes harder to find 3

4 Why AIM Companies? Smaller quoted companies offer the potential for high growth and can often deliver that growth regardless of economic conditions Following the financial crisis and subsequent recession, many smaller companies now operate with no debt and often hold substantial cash balances, increasing their ability to grow dividends Smaller companies are often under-researched which creates opportunities for experienced and specialised investment managers like Unicorn AIM stocks are listed on an official exchange valuations are therefore transparent, since share prices are marked to market on a daily basis 4

5 5 Unicorn AIM VCT

6 Unicorn Asset Management Independently owned and managed company established in 2000 Specialists in UK equity small cap and AIM markets Experienced, committed, and well-resourced investment team with >100 years combined experience Assets under management c. 850m* Aims to generate consistent long term outperformance be the best rather than the biggest Market leading managers of Unicorn AIM VCT since 2001 * Source: Unicorn Asset Management, 31 December

7 Unicorn Investment Team Chris Hutchinson Director Senior Fund Manager Paul Harwood Non-Executive Director, Investment Committee Chairman Peter Walls Fund Manager Philip John Director Finance & Operations Max Ormiston Junior Fund Manager Alex Game Junior Fund Manager Fraser Mackersie Fund Manager Simon Moon Fund Manager 7

8 Unicorn Investment Philosophy Team based, systematic investment process Bottom-up fundamental stock selection - rigorously analysed in-house UK only, equity only, long only Small Cap, Mid Cap & AIM specialists High conviction approach - benchmark agnostic Investment style long term, conservative, low risk approach Private Equity approach - owner / managed business model Investment Managers invest in the funds they manage Consistent application of investment philosophy across all funds 8

9 Unicorn AIM VCT Investee Criteria Profitability Cash generation Balance sheet strength Leading positions in specialist but growing markets International exposure Track record of achieving market expectations High levels of recurring revenue Low levels of customer concentration 9

10 Unicorn AIM VCT - Investment Objectives Our objectives are simple & clear: Short term Capital Preservation Medium term Attractive & Sustainable Dividend Income Long term Capital Growth & Superior Total Returns 10

11 VCT Performance Dividend History The VCT has declared dividends amounting to 26 pence per share over the last five financial years* Financial Year Ending 30 Sep 2010 Ending 30 Sep 2011 Ending 30 Sep 2012 Ending 30 Sep 2013 Ending 30 Sep 2014 Dividend Declared 4p per share 5p per share 5p per share 6p per share 6p per share The dividend distribution policy is designed to allow for gentle progressive, annual dividend payments, while ensuring the dividends remain sustainable over the longer term * Source: Unicorn Asset Management, 30 Sep 2009 to 31 Dec Past performance is not a guide to future performance. 11

12 VCT Performance One Year to 31 December 2014 Net assets c. 100m Net Asset Value as at 31 Dec 2014 = 144.6p (145.7p as at 31 Dec 2013) Positive NAV total return (+3.4% after adding back dividends paid*) Strong relative performance (FTSE AIM Index -16.5%, FTSE All Share Index +1.0% over same period*) Portfolio of investee companies performing robustly - few material disappointments - operating performance generally strong and trading conditions improving Revenue growth opportunities are emerging, which translates into improved confidence in earnings forecasts * Source: Financial Express / Unicorn Asset Management, Financial Express, 1 Jan 2014 to 31 Dec Past performance is not a guide to future performance 12

13 Unicorn AIM VCT - Current Portfolio 50 VCT qualifying investments representing c.75% of total assets c.80% of these companies generate positive free cash flows c.65% have net cash on balance sheet c.90% are operating with net gearing of less than 25% c.85% are forecast to deliver profit growth in their current financial year c.60% have paid a dividend within the past 12 months Source: Unicorn Asset Management, 31 December

14 VCT Top Ten Holdings Abcam Tracsis Anpario Mattioli Woods Source: Unicorn Asset Management, 31 December 2014 Leading supplier of protein research tools to the life sciences research market A provider of hardware, operational planning software & data capture services to the transportation sector Manufacturer of high performance natural feed additives One of the UK s leading providers of pension consultancy & wealth management services 8.5% 7.5% 6.1% 4.6% Crawshaw Group Chain of Yorkshire based retail butchers 4.0% Cohort A group of companies applying advanced technology in defence, security & related markets 3.1% Animalcare Group A leading supplier of veterinary medicines 2.1% WYG WYG, the global programme, project management and technical consultancy 2.1% Unicorn Mastertrust Fund Fund of investment trusts 2.1% IDOX A supplier of software solutions and services to the UK public and corporate sectors 2.0% Total 42.1% 14

15 Investee Company Profiles - Abcam Company Profile: Global supplier of protein research tools Highly cash generative, debt free, dividend paying Net cash of 56.9m Significant overseas earnings (91%) Leading position in niche market Strong record of organic growth Latest Results (30 Jun 2014) Sales ( m) PBT ( m) EPS (p) P/E ratio 25.6x 23.9x Forecast Results FY 2015 Highly focused management team Share price 467p Market Cap 938m Forecast Yield 8.3p (1.8%) Source: Unicorn Asset Management and Alpha Terminal 5 January

16 Anpario Company Profile: Manufacture and marketing of natural feed additives for global agricultural markets Cash generative and debt free 4.8m net cash Significant overseas earnings (76%) Strengthening position in growing market Strong & consistent organic growth Latest Results (31 Dec 2013) Forecast Results FY 2014 Sales ( m) PBT ( m) EPS (p) P/E ratio 21.8x 21.3x Share price 290p Market Cap 58m Forecast Yield 4p (1.4%) Source: Unicorn Asset Management and Alpha Terminal 5 January

17 Crawshaw Group Company Profile: Established retail butcher with a strong reputation Cash generative, debt free, dividend paying 10.1m net cash Long standing, trusted relationships with suppliers Varied product range with competitive pricing and loyal customer base Latest Results (31 Jan 2014) Forecast Results FY 2015 Sales ( m) PBT ( m) EPS (p) P/E ratio 41.5x 38.5x Growing number of consumers buying meat from local community butchers Share price 54p Market Cap 43m Forecast Yield 0.3p (0.5%) Source: Unicorn Asset Management and Alpha Terminal 5 January

18 Tracsis Company Profile: Resource optimisation software & hardware for the transport industry Develops software, hardware and services that replace existing cumbersome, manual processes delivering cost savings in excess of 10% Cash generative, debt free, dividend paying Latest Results (31 Jun 2014) Sales ( m) PBT ( m) EPS (p) P/E ratio 28.8x 27.1x Forecast Results FY 2015 Following success in UK Rail, Tracsis is moving into new geographies and sectors Share price 447p Market Cap 118m Forecast Yield 1p (0.2%) Source: Unicorn Asset Management and Alpha Terminal 5 January

19 Summary and Outlook Positive total return performance continues (+3.4% in year to 31 Dec 2014) Further growth potential as economic recovery gathers pace Management teams of investee companies increasingly optimistic Investee companies free cash-flows are improving & balance sheets strengthening Improved flow of attractive investment opportunities c. 7.5m of capital committed to 7 new VCT qualifying investments in last calendar year Proven & selective approach to new investments to be maintained Substantial capital reserves to support future dividend payments Unicorn AIM VCT named Best VCT 2014 by What Investment Magazine 19

20 Highly rated by Independent Reviewers Highest rated AIM focused VCT in Martin Churchill s Tax Efficient Review (87 out of 100): With an established and diversified portfolio and a flexible structure, the Company now displays many of the characteristics of a smaller companies investment trust The Unicorn AIM VCT benefits from scale, a mature well diversified portfolio and results lately have been good. Our top rated AIM based VCT this tax year Performance to date of the management team has been good, as is their record of making tax free dividends...the Company already has the potential to deliver capital growth and a tax free dividend stream from a developed portfolio of existing investments Highest 5* rating from Tilney Bestinvest Strong rating from Allenbridge Tax Shelter Report 20

21 Unicorn AIM VCT Offer Details Offer Size 15m Investment Objective To provide capital preservation together with attractive, sustainable dividend income and potential for long term capital growth Minimum Investment 2,000 Maximum Investment Initial Charge None, but maximum amount for which an investor can claim tax relief is 200,000 per tax year 2.5% (plus up to 3% IFA commission / facilitation fee) AMC 2% TER c. 2.3% Offer Opened 17 September 2014 Offers Closes 1 April 2015 (for investment in 2014/15 tax year) 30 June 2015 (for investment in 2015/16 tax year if not fully subscribed beforehand) 21

22 Regulatory Notice This document is an advertisement and not a prospectus. It has been issued by Unicorn Asset Management Limited and constitutes a financial promotion under Section 21 of the Financial Services and Markets Act Any decision to invest in the Unicorn AIM VCT plc should be made solely by reference to the information, terms and conditions contained in the prospectus and application form. This document should not be regarded as constituting advice in respect of legal, taxation, investment or any other matters. Prospective investors are advised to consult their bank manager, stockbroker, solicitor, accountant or independent financial adviser before considering any investment. Please remember that the value of shares and the income derived from them can go down as well as up and you may not get back the full amount invested. Issued by Unicorn Asset Management Limited, First Floor Office, Preacher s Court, The Charterhouse, Charterhouse Square, London, EC1M 6AU. Authorised and Regulated by the Financial Conduct Authority. 22