A review of the year

 

At its March AGM, TRI Cap Chairman Rob Dick gave an overview of the angel investment group’s year.

2015 was TRI Cap’s eleventh year and was in investment terms its busiest yet. The angel investment group also achieved two successful exits and ended the year with the largest membership so far recorded. However there was major a disappointment in the loss of Border Precision Engineering.

During the year TRI Cap members invested £561K in one new business – Glasgow based Aurum Biosciences – which together with an equity investment from the Scottish Investment Bank (SIB) and a convertible loan from the Wellcome Trust provided a total funding package of almost £3m.

Over the last twelve months, TRI Cap also provided follow on funding to ten companies  (Eaglewood/Administrate, Power Photonic, Lamellar Biomedical, Border Precision Engineering, MGB Biopharma, My1Login, Inquisitive Systems, Ryboquin, Fios  and, through London & Scottish Investment, Pure Lifi) together receiving some £798K from TRI Cap members. This allied to £2.3M from SIB and £6.2M from other investors brought the total invested in these companies to some £9.4M.

In addition, three companies were supported with Convertible Loans totalling £223K from TRI Cap members alongside £209K from SIB and £130K from others, making £560K in all.

The grand total of £1.6M from TRI Cap members, £3M from SIB and £8.1M from others combined to provide a total of just under £13M of support for its investee companies during the year, a significant increase on 2014.

 

New Follow-on TriCapital SIB Others Total
Equity 1 10 1,359,343 2,824,967 8,062,376 £12,246,686
Loans 3 223,000 209,200 130,000 £562,400
Total Investment 1 13 1,582,343 3,034,167 8,192,376 £12,809,086

 

Over 11 years TRI Cap members have now invested some £11M into investee companies and at the year-end they had 22 companies in the portfolio, a small reduction on the previous year.

For those members involved, there were financially positive exits from two companies: Sphinx (to a South American company) and Biopta (to a Japanese Company).  These were the result of patient negotiation over many months. Sphinx members have so far shared £168K. TRI Cap Biopta investors have so far shared in £174K.

Investors in Turnbull & Scott also managed a positive partial exit under the recently finalised share liquidity model. A number of other investee companies are also likely to make serious attempts at exiting during the coming year.

On the down side, it was reported that in June Border Precision Engineering went into administration with the anticipated loss of around some eighty local jobs and all TRI Cap members’ investee funds.

In recent months TRI Cap appointed Douglas Needham as Vice-Chairman as well as Julian Livingston and Paul Yuskaitis to the board – increasing the board from five to six. On top of the usual administrative requirements, TRI Cap was also successful in renewing its partnership status with the Scottish Co-investment Fund (now known as SCF111).

Overall, 2015 was financially one of TRI Cap’s most successful years with income increasing as a result of the additional deal flow while administration costs remained level with previous years. In addition, net membership increased to 65 which is the highest level in Tri Cap’s history.

TRI Cap expects 2016 to be another busy year in terms of investment, with an emphasis on follow-on funding. It will, however, also be looking for attractive new deals to maintain the option for members to support those as well as their existing investments.

 

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