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Hidden gems for the new tax year 20/21

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
127tolmers
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Hidden gems for the new tax year 20/21

#297922

Postby 127tolmers » April 5th, 2020, 9:49 am

Tomorrow sees the start of a new tax year and a new set of allowances. After a year of turmoil where are the opportunities for the coming year? What are all your thoughts?

I will start with one hidden gem that my son invested in on the last day of last year, Seneca B.

If you want to be in a fund that is largely in cash, with the ability to wait for 6 months and to make new investments at the bottom of the market, run by a well established VC manager with a strong pipeline of opportunities then Seneca B might be a good choice. The B class share is able to draw on distributable reserves of the ordinary class to pay dividends from the start.

First allotments were made in Sept 2018 at a NAV of 100p/share. The most recent allotments were made last Friday at a 79.5p NAV/share

https://www.investegate.co.uk/seneca-gr ... 1000H9285/

The annual report to 31 Dec 2019 shows that out of B class net assets of £5921k, £3439 was cash (58%). The NAV was 93.1p/share and notes to accounts suggest no further investments were made through to the date of the report of 26 Feb.

Two interim dividends of 1.5p each were paid in the year. The investment manager fee is 2% and there is a cost cap of 3%.

https://senecavct.co.uk/wp-content/uplo ... t-2019.pdf

There have also been some very good commission waiver deals to be had. The offer is open to 9July. Do your own research.

127tolmers
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Re: Hidden gems for the new tax year 20/21

#302072

Postby 127tolmers » April 20th, 2020, 9:04 pm

https://www.investegate.co.uk/seneca-gr ... 3650H2038/

Following the recent rise in Omega’s share price on AIM, the Company has sold 1,150,000 Omega shares from the Ordinary Share pool, realising £358,696 and generating a profit of £278,196 (unaudited) on their carrying value as at 30 March 2020, being the date of the most recently announced Net Asset Value (“NAV”) per Ordinary Share (equivalent to an unaudited profit of 346%), and a profit versus original cost of £194,258 (equivalent to an unaudited profit of 118%). The Company’s Ordinary Share pool retains 1,143,868 Omega shares.

The Board have reviewed the carrying value of all Ordinary Share pool investments, including Omega at a bid price of 33.2p per share, and report that as at 20 April 2020 the unaudited NAV per Ordinary share was 30.3p per Ordinary share, an increase of 7.2p per Ordinary share from the unaudited NAV of 23.1p per Ordinary share as at 30 March 2020. This increase is primarily driven by the change in value of Omega, net of the associated performance fee accrual.

The Board have also reviewed the carrying value of all B Share pool investments as at 20 April 2020. As the value of those investments has not changed materially from the values as at 30 March 2020, the Board has not issued a revised NAV per B Share (the unaudited NAV per B Share as at 30 March 2020 was 79.5p per B Share). The Board will issue a revised NAV of a B Share if required before the next allotment on 28 April 2020.

The Board are also pleased to confirm that the Company has committed to 3 further investments from its B Share pool during the period from 1 January 2020 to 20 April 2020 as follows:

On 13 March 2020 the Company’s B Share pool invested £400,000 into specialist SAP contractor platform operator Ten80 Group Limited.
On 19 March 2020 the Company’s B Share pool invested £235,000 into specialist graduate recruitment business Bright Network (UK) Limited.
On 17 April 2020 AIM quoted OptiBiotix Health Plc, a life sciences company specialising in developing and commercialising technologies that modulate the human microbiome, announced it had raised £1.0 million through a share placing. The shares are expected to be admitted to AIM on or around 23 April 2020 and the Company’s B Share pool has committed £300,000 to this placing.

The above investments take the total number of investments made by the B Share pool to 8, at a total investment cost of £3,685,000. The B Share pool still has cash reserves in excess of £3.2m available to support the Company’s ongoing running costs and B Share pool future investment activity.

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Re: Hidden gems for the new tax year 20/21

#302860

Postby BusyBumbleBee » April 24th, 2020, 10:37 am

Very prescient of you to post this, 127tolmers - and thank-you. Hope you are keeping well and busy. Guess that you are not getting any comments because it was complete in itself and covered everything. If I was buying any more VCTs this year it would be top of my list but my DRIS will cover most of my taxable income this year with the virtual cut off in dividends from the main market.

with kind regards - BBB

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Re: Hidden gems for the new tax year 20/21

#302929

Postby Pipsmum » April 24th, 2020, 1:18 pm

Very nice post. I didn't see it until today, but anyone who listened and did, would have bought a share for approx 10p then. They are 36.34p as I type this. Thank you.

Edit. i think I'm looking at the wrong thing. I arrived at omega diagnostics somehow.

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Re: Hidden gems for the new tax year 20/21

#302943

Postby 127tolmers » April 24th, 2020, 2:17 pm

Portfolio components Scancell, Omega in Ord and and SkinBio in B all in top 60 risers today.

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Re: Hidden gems for the new tax year 20/21

#303707

Postby 127tolmers » April 27th, 2020, 10:19 pm

More good news from Seneca.

https://www.investegate.co.uk/seneca-gr ... 5204H3510/

Partial Realisations of Ordinary Share Investment in Omega and B Share Investment in Optibiotix

Following the recent rise in Omega’s share price on AIM, the Company has sold a further 543,868 Omega shares realising £211,940. The Company has now sold a total of 1,693,868 Omega shares from the Ordinary Share pool since the year end, realising a total of £570,636 and generating a profit versus original cost of £328,430 (equivalent to an unaudited profit of 136%). The Company’s Ordinary Share pool retains 600,000 Omega shares.

The Directors are also pleased to report that the Company has sold 150,000 Optibiotix shares from the B Share pool, realising £90,083 and generating a profit versus original cost of £30,083 (equivalent to an unaudited profit of 50%). The Company’s B Share pool retains 600,000 Optibiotix shares.

New Ordinary Share and B Share Net Asset Values

The Board have reviewed the carrying value of all Ordinary Share pool investments as at 27 April 2020, including Omega at a bid price of 59 pence per share and Scancell Holdings plc (“Scancell”) at a bid price of 8.0 pence per share, and report that as at 27 April 2020 the unaudited NAV per Ordinary share was 35.8 pence per Ordinary share, an increase of 5.5 pence per Ordinary share from the unaudited NAV of 30.3 pence per Ordinary share as at 20 April 2020 (equivalent to an unaudited increase of 18.1% over this period). This increase is primarily driven by the profit generated on the sale of the Ordinary Share pool’s Omega shares, and an increase in value of the Ordinary Share pool’s remaining Omega and Scancell shares, net of the associated movement in the Ordinary Share pool performance fee accrual.

The Board have also reviewed the carrying value of all B Share pool investments and report that as at 27 April 2020 the unaudited NAV per B share was 89.3 pence per B share, an increase of 9.8 pence per B share from the unaudited NAV of 79.5 pence per B share as at 30 March 2020 (equivalent to an unaudited increase of 12.4% over this period). This increase was driven by the profit generated on the sale of the B Share pool’s Optibiotix shares and an increase in the value of the B Share pool’s remaining Optibiotix and SkinBiotherapeutics plc shares, net of running costs incurred for the period.

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Re: Hidden gems for the new tax year 20/21

#304809

Postby Pipsmum » May 1st, 2020, 2:18 pm

Omega shooting up today

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Re: Hidden gems for the new tax year 20/21

#340588

Postby 127tolmers » September 16th, 2020, 11:14 am

https://www.investegate.co.uk/seneca-gr ... 0000H7505/

Realisations of Ordinary Share Investments and New Ordinary Share Net Asset Value (“NAV”).

Full Realisation of Ordinary Share Investment in Omega Diagnostics Group plc (“Omega”)

Following the recent rise in Omega’s share price on AIM, the Company has sold the remaining 400,000 Omega shares it retained, realising £296,166, an increase of £132,166 (unaudited) on their carrying value as at 30 June 2020, being the date of the most recently announced NAV per Ordinary Share. The Company has now sold a total of 2,293,868 Omega shares from the Ordinary Share pool since 31 December 2019 fully realising the investment for a total of £987,318 and generating a profit versus original cost of £659,318 (a 3x return on the original investment).

Partial Realisation of Ordinary Share Investment in Scancell Holdings Plc (“Scancell”)

The Directors are also pleased to report that the Company has sold 1,049,730 Scancell shares from the Ordinary Share pool, realising £126,619 and generating a profit versus original cost of £63,110 (a 2x return on the original investment) and an increase of £72,033 on their carrying value as at 30 June 2020. The Company’s Ordinary Share pool retains 12,000,000 Scancell shares.

New Ordinary Share Net Asset Value

The Board have reviewed the carrying value of all Ordinary Share pool investments, including Scancell at a bid price of 15p per share as at 14 September 2020, and report that as at 14 September 2020 the unaudited NAV per Ordinary share was 35.8p, an increase of 13.6p per Ordinary share from the unaudited NAV of 22.2p per Ordinary share (the unaudited NAV as at 30 June 2020 net of the dividend of 8p per Ordinary Share that was paid on 28 August 2020). This increase is a result of the profit generated on the sale of Omega and Scancell shares, and the increase in value of the remaining Scancell shares, net of the associated movement in the performance fee accrual.

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Re: Hidden gems for the new tax year 20/21

#386990

Postby 127tolmers » February 15th, 2021, 4:39 pm

Seneca ords (Hygea) went up 30% today on the back of a 50% uplift in Scancell. A small top-slicing of Scancell would be nice (consistent with their treatment of Omega earlier in the year) and might be used to fund a special dividend.

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Re: Hidden gems for the new tax year 20/21

#387592

Postby 127tolmers » February 17th, 2021, 10:51 pm

Seneca Ords (Hygea) went up another 17% today to 33.5p on continued Scancell strength.

An ADVFN blogger suggests that the current NAV is now around 48p, DYOR. There is also a performance fee.

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Re: Hidden gems for the new tax year 20/21

#389271

Postby 127tolmers » February 23rd, 2021, 5:19 pm

https://www.investegate.co.uk/seneca-gr ... 0000H8088/

Good annual results for both Ords and Bs. Even better updates as of 19 Feb, B NAVs up 7.6p and Ord NAVs up to a total 44p just adjusted for Scancell. Scancell were top sliced at 21.7p with 1m out of 12m sold for £217k. This is 2.67p per share and should fund a nice dividend in due course.

One of the most interesting items in the accounts is the extraordinary low management fee from Seneca just £41k after cost capping of £86k. The Ords benefit particularly well up to the 3 year expiry date in July 2021.

Fundraising over the last 2 years has been slower than hoped but with the recent spate of early VCT closures this one is likely to move up on investors' lists and as its track record has been established. The VCT co-invests with Seneca's other funds where they claim over £100m deployed into EIS and VCT funds in over 50 SMEs.

Still a hidden gem in my view.

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Re: Hidden gems for the new tax year 20/21

#419607

Postby 127tolmers » June 15th, 2021, 7:51 am

https://www.investegate.co.uk/seneca-gr ... 0000H0733/

Nice uplift

The Directors and the investment manager of the Company, Seneca Partners Limited, have reviewed the valuation of the Company's B share portfolio as at 11 June 2021.

The unaudited net asset value per B share ("NAV") as at 11 June 2021 was 106.1p per share. This is an increase of 5.7p from the previously published unaudited NAV as at 29 March 2021, due to changes in the value of the B share pool’s quoted investments, offset by the running costs incurred in Q2 2021.

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Re: Hidden gems for the new tax year 20/21

#419712

Postby barchid » June 15th, 2021, 3:29 pm

Tolmers
Indeed it is and this is for the new portfolio which does not own scancell, but they certainly have some interesting companies in the B share portfolio.
The team at Seneca are very open to phone calls and from my conversation the cap on the running cost of the B shares which is now soon being lifed, is going to benefit as the management fees for the old shares are being diverted towards the B shares from when the cap goes which is again rather generous of them. They certainly seem keen to get traction on the size of the B shares & acknowledge that it will become easier once they raise more money.
The flip side of the coin is that I applied on the zero cost over nav which they offer to existing holders so my latest allocation is at todays higher nav, but you can't win them all !

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Re: Hidden gems for the new tax year 20/21

#420561

Postby Karellan » June 18th, 2021, 5:15 pm

They seem very small but I like that the managers will own 380K themselves.

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Re: Hidden gems for the new tax year 20/21

#432537

Postby pbarne » August 4th, 2021, 7:50 pm

I was contemplating adding Seneca B shares for my 21/22 purchase, but looking at the increase in NAV recently, have I missed the boat here? Also it looks like this offer is filling very slowly, any thoughts as to why?
Cheers,
P

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Re: Hidden gems for the new tax year 20/21

#432609

Postby 127tolmers » August 5th, 2021, 8:17 am

One of the problems may be that until they have a 3 year track record in the B class they won't make it on to all IFA recommendation lists and sales will be slower than others.

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Re: Hidden gems for the new tax year 20/21

#432615

Postby barchid » August 5th, 2021, 8:52 am

pbarne
You will find a youtube video of the vct by CEO of Seneca which is informative, they are also very approachable by phone, I had some queries which they gave me the answers for so that is another route.
Tolmers is spot on re the lack of track record in the B shares but another reason investors tend to avoid small & young vct's can be cost of management, but Seneca cap this themselves and state in the video that they will cut fees over nav for direct investors, which I took advantage of.
I wouldn't bet the farm on this but my gut is that it will do better than most on a 5 year view. I have been impressed with their open approach when asked questions.

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Re: Hidden gems for the new tax year 20/21

#432634

Postby sinterklaas » August 5th, 2021, 9:41 am

pbarne wrote:Also it looks like this offer is filling very slowly, any thoughts as to why?

My two penn’orth:

New VCT:
- much of the money going into VCTs is from existing investors, creatures of habit mainly, who keep adding to what they know and what's done well for them over the years
- as for all the investors who are new to VCTs: what are you going to choose, the popular ones of course (and/or the ones at the top of the Trustnet performance tables :? )

Distribution: if you don't have a lot of salespeople and get on a lot of adviser platforms, you are destined for a slow trudge to prominence based on track record alone.

Seneca isnt alone in filling slowly btw, looks like many longer established VCTs from long track record managers e.g. Downing, Puma, Calculus also seem to have found it hard raking in subscribers. While Amati is just blasting it :lol:

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Re: Hidden gems for the new tax year 20/21

#432649

Postby pbarne » August 5th, 2021, 10:48 am

Thanks for the replies, I'll take a look at the video and also note the valid reasons that this could still be "flying under the radar" at the moment. I'm not intending on "betting the farm", as I have other holdings (including Amati!), so looking for a bit more diversification.
Cheers.


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