“The question we were created to address is why have we not created Googles in Europe more often,” says Draper Esprit's (GROW) chief executive Simon Cook. From its admission to the market in June 2016 through to the end of March, the venture capital group grew the gross value of its portfolio by an impressive 43 per cent to £113m.
With an emphasis on digital technology, the group invested £34m in 13 new companies during the 12 months to March, including artificial intelligence app Graphcore and electric vehicle charging specialist Pod Point. Management also invested in the existing 'rising stars' within its portfolio, such as its largest holding Trustpilot. The fair value of the latter increased more than a quarter to £18.2m since the group’s IPO. Selling its stake in four of its holdings raised £42m in cash for reinvestment.
Trustpilot and Graze are two of Draper Esprit’s 10 core holdings, which account for three-quarters of overall revenue. This portfolio gained almost a third in fair value during the 12-month period. This financial year looks to be off to a similarly positive start. Management has raised £160m, including £100m from new and existing shareholders since the year-end.
Analysts at Numis expect adjusted net assets of 342p at 31 March 2018, up from 324p at the end of 2017.
| DRAPER ESPRIT (GROW) | ||||
| ORD PRICE: | 329p | MARKET VALUE: | £230m | |
| TOUCH: | 325-333p | 12-MONTH HIGH: | 356p | LOW: 303p |
| DIVIDEND YIELD: | nil | PE RATIO: | 4 | |
| NET ASSET VALUE: | 216p | NET CASH: | £25m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 (pre-IPO) | na | -0.03 | -6 | na |
| 2017 | 37.4 | 33.7 | 80.8 | nil |
| % change | - | - | - | - |
| Ex-div: | na | |||
| Payment: | na |
