Half-yearly report for the six months ended 30 September 2017
The board of Vela is pleased to announce the interim results for the six months ended 30 September 2017.
I am pleased to report interim results for the Company for the period ended 30 September 2017.
Vela is pleased to report a profit after tax of £184,000 compared with a loss of £50,000 for the six months ended 30 September 2017 and a loss of £72,000 for the year ended 31 March 2017. The company was profitable in the period under review as a result of the profit generated on the sale of shares held in BTL Group Ltd (“BTL”).
Net assets increased to £3,152,000 at 30 September 2017 when compared with net assets of £1,926,000 at 31 September 2016 and £2,969,000 as at 31 March 2017, an increase of 63% against the comparative period reflecting new investments made in the period and revaluation of certain existing investments, in particular the Company’s minority holding in BTL.
Vela’s cash balance at 30 September 2017 was £526,000 (30 September 2016 – £350,000).
During the period we invested a further £50,000 into Rosslyn Data bringing the total holding to 1,411,111 shares representing 0.75% of the issued capital.
In the period under review, Vela both added to its investment in BTL and sold 76,700 shares during April and 50,000 shares during May. Our total holding at 30 September 2017 was 610,900 shares representing circa 3.3% of BTL’s fully diluted equity and 66,666 warrants. Post period end we have exercised part of our warrant holding and undertaken further sales of shares in BTL which has reduced our holding in BTL to 580,000 shares and 25,000 warrants, as previously announced. A number of sale of shares in BTL have taken place at prices considerably in excess of our average purchase price.
Our investment in Portr continues to make progress with an after period investment of £2,000,000 from Stobart Group and an announcement of an alliance with American Airlines.
Following the end of the half year, Vela participated in a follow-on round of investment in Vibe Tickets. In addition, Vela entered into a conditional agreement to invest approximately £200,000 to acquire a minority stake in African Hydrocarbons (to be renamed BlockchainK2). This investment remains subject to certain regulatory approvals in Canada- the entity that Vela is investing in is listed on the TSX Venture Exchange. This investment is expected to complete in early 2018 and, once completed, would become Vela’s 11th portfolio company.
Since the period end, on 13 December 2017, the Company has also announced a placing to raise £750,000 which has enhanced the Company’s working capital position and provides the Company with further funds to take advantage of further investment opportunities as they arise.
Our other investments continue to develop in line with the Board’s expectations and we remain optimistic for the coming months as we continue to review potential investments as and when they are presented to us.
N Brent Fitzpatrick MBE
Vela Technologies PLC
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