Draper Esprit VCT plc: Reduced discount on Share Buybacks and unaudited Net Asset Value (“NAV”) 

2 Apr 2019 14:36

Draper Esprit VCT plc: Reduced discount on Share Buybacks and unaudited Net Asset Value (“NAV”) 

Draper Esprit VCT plcReduced discount on Share Buybacks and Unaudited Net Asset Value (“NAV”) Legal Entity Identifier: 2138003I9Q1QPDSQ9Z972 April 2019

Increasing access to Draper Esprit Knowledge Intensive investments.

As announced by the Company on 28 March 2019, the Board of Draper Esprit VCT plc is pleased to report that, with effect from 1 April 2019, the discount to NAV of the target price at which the Company seeks to acquire its own shares under the Company’s Share Buyback Policy has been reduced from 7.5% to 5.0%. The Board believes this keeps the Company in line with what is developing as best practice in the VCT sector.

The Company further announces that the unaudited NAV at 22 March 2019 was 58.6p per share, a 4.6% increase since 31 March 2018 after adding back the tax-free dividends paid in the year.

The Board is also pleased to say that the Company’s portfolio continues to grow through more Knowledge Intensive investments, this being a category recognised by the Government and HMRC as of particular importance and in receipt of Government incentives and investment advantages. The portfolio now holds 14 investments sourced by Draper Esprit plc, which has transformed the Company into a VCT with an increasing emphasis on knowledge intensive companies. Those 14 investments account for approximately 30% of the net assets of the Company, with cash (before the current funding round) accounting for a further 29%. The Company is seeking to raise a further £7 million under the current funding round, which will also be invested alongside Draper Esprit plc. At the time of writing this announcement approximately £6 million had been raised.

David Brock, Chairman of Draper Esprit VCT plc, said “This is a transformed VCT. Investors can look forward to a strong flow of investment opportunities from a manager with an excellent track record. Draper Esprit VCT is set apart by its ability to co-invest alongside Draper Esprit plc which has a track record of delivering returns (realised and unrealised) in excess of 20% per annum over the last 9 years and that gives access to opportunities normally only available to institutions and individuals who wish to invest relatively large sums. We are also delighted with the recent report published by M J Hudson Allenbridge which has recognised the recent progress of the VCT by giving it a top scoring of 86/100.