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Oxford Technology is the specialist
in the start-up and early stage technology sector
Tax Shelter Report, Allenbridge
Oxford Technology is the specialist
in the start-up and early stage technology sector
Tax Shelter Report, Allenbridge
Oxford Technology is the specialist
in the start-up and early stage technology sector
Tax Shelter Report, Allenbridge

VCT1

Oxford Technology VCT was listed on the London Stock Exchange in April 1997. It raised £4.85m in 1997-98. Further top-up offers have raised a further £245k. The fund is now fully invested.

Net asset value per share was 61.2p as at 29 February 2016.

Dividends paid to date total 52.7p, mainly resulting from the sales of Valid Information Systems, MET, and part of OT1's holding in Scancell .


Portfolio

BioCote

Bio Cote Logo

BioCote - Investment Information for OT1
Date of First Investment Dec 1997
Total Investment to date £137,896
Value of Holding (as at 31 May 2015) £66,000
% Equity 6.6%

BioCote is based in Wolverhampton and has developed a range of anti-microbial coatings. BioCote's business model is to license the use of its technology to manufacturers of products, which then gives built-in antimicrobial protection. The technology, which is based on silver, is supplied primarily to the healthcare, food and other hygiene conscious industries. BioCote grew strongly in the years to 2012, but experienced some difficulties in 2013 as the market became more competitive. BioCote aims to provide a full service to its customers. It supplies not only the anti-microbial surface or the ingredients with which to make it, but also training, help with regulatory issues, of which there are many, a full testing service, help with product launch and support at exhibitions.

BioCote’s anti-microbial surface is effective against MRSA and C.Diff, and the coating, in a variety of formulations, may be applied to all surfaces in hospitals (for example), including, floor, walls, ceiling, beds, furniture, bed linen, furniture etc. This provides a second line of defence against infection, the first being provided by what should be normal hygiene and cleaning regimes.

BioCote paid OT1 a dividend of just over £50,000 in Aug 2014, but this was because BioCote had built up a large cash reserve from several good trading years. This is not likely to be repeated every year.

Results in recent years have been as follows:

Year to 31 Oct Sales (£000s) Net Profit
2008 1,016 (65)
2009 1,697 163
2010 3,157 909
2011 2,422 649
2012 2,328 496
2013 1,238 (65)

Winning the Business Awards 

Last Updated: Tuesday, August 18, 2015

Dataflow Ltd

www.dataflow.co.uk

Dataflow - Investment Information for OT1
Date of First Investment Mar 1998
Total Investment to date £156,185
Company Sold - September 2013 £23,000 to date
Further payment due 2015
Dataflow - Investment Information for OT3
Date of First Investment Jul 2002
Total Investment to date £70,002
Company Sold - September 2013 £54,803 to date
Further payment due 2015

Dataflow produces accounting software for medium sized companies with sales of up to £250m. Its software is multi currency and is very easy to use, and allows the user to integrate Excel spreadsheets for doing particular calculations. Dataflow did not manage to achieve the large jump in sales that was hoped for following the original investment, but it has survived and has been making steady if undramatic progress. It has many customers who have used its software for more than 25 years, and who like it and do not wish to change.

In recent years, Dataflow has produced versions of its software that are tailored to certain market applications, such as haulage and waste disposal. In this case the software is integrated with a mobile application, so that the administrator may inform the drivers of their route/delivery schedules, and by the same action enter this data into the accounts software.

Dataflow has also developed a sophisticated job costing package, suitable for companies who run projects amounting to several £m, and which may take 18 months or longer to complete. Keeping accurate track of the costs of such projects over time is not trivial. Dataflow was commissioned to write this package (~£100,000) by a customer who could not find a suitable package from any other supplier.

In 2013 OT1 and OT3 agreed the sale of its shareholdings in Dataflow to the company.

Last Updated: Tuesday, August 18, 2015

DHA Ltd

www.dha.co.uk

DHA - Investment Information for OT1
Date of First Investment Sep 1999
Total Investment to date £150,000
Current Value of Holding (as at May 31 2015) £9,687
% Equity 26.9 %
DHA - Investment Information for OT2
Date of First Investment Nov 2001
Total Investment to date -
Current Value of Holding (as at 31 May 2015) £434
% Equity 1.2 %

Duncan Hynd Associates Limited (DHA) specialises in serving the radiotherapy market. OT1 initially invested in 1999, and the business increased its staff and expanded. However the business was not profitable and in order to survive, it therefore contracted, and Duncan Hynd, the founder became the sole employee. This was successful in the sense that the business has survived and has been modestly profitable.

Last Updated: Tuesday, August 18, 2015

Equitalk

www.equitalk.co.uk

Equitalk - Investment Information for OT1
Date of First Investment Jan 2000
Total Investment to date £135,672
Total Return on Sale - July 2006 £9,107
Equitalk - Investment Information for OT2
Date of First Investment Jul 2001
Total Investment to date £270,211
Total Return on Sale - July 2006 £34,939
Equitalk - Investment Information for OT3
Date of First Investment Jan 2003
Total Investment to date £101,598
Total Return on Sale - July 2006 £12,000

Kleeneze Conference LaunchEquitalk was founded in January 2000 with the objective of creating a low cost, paperless, telephone service. A typical user saves about 30% of the cost of calls from BT. The service is inexpensive to run since its processes are automated, customers are e-mailed their bill and pay by direct debit. At no point is there any paper. Customers are able to see details of their calls within 24 hours on the internet. However, the market became increasingly competitive, with more and more companies entering the business, some of them very large and well-funded. In July 2006 Equitalk was sold to X-Fone.

Last Updated: Tuesday, August 18, 2015

Getmapping

getmapping.com

Getmapping- Investment Information for OT1
Date of First Investment Mar 1999
Total Investment to date £517,686
Current Value of Holding (as at 31 May 2015) £212,697
% Equity 3.8%

OT1 was the first investor in Getmapping when the company was founded in 1999. The company was formed to make the first complete aerial photograph of the UK, known as the Millennium Map.

Critical to Getmapping’s business plan was that Ordnance Survey had no interest in aerial photography as a product, and had signed an agreement with Getmapping under which it would re-sell the Millennium Map to local and central government users. But in 2001, after the company had raised £10m on AIM, OS terminated the reseller agreement and started to develop its own rival product. This was a devastating blow to Getmapping, which took court action against OS. But in the event, Getmapping did not have enough capital to see the case through. Getmapping had to drastically downsize and came close to going bankrupt. The share price fell and the company delisted to save costs.

However, Getmapping persevered and the business survived and has prospered. The business now has numerous different strands, so that it is less dependent on any one of them than was once the case. For example, in an attempt to become less dependent on the UK, Getmapping is becoming a significant supplier of aerial photography and mapping services in Africa, which despite its many problems is now growing fast, and has a large need for current aerial survey services to support its growing infrastructure programs and resource exploitation. The policy is now bearing fruit as Africa is contributing significantly to the growth in turnover and profits going forward.

Getmapping continues its battle with OS. Getmapping won the Pan Government Agreement, and as a result created imagery of the whole of the UK for use by all government departments. It would seem to be common sense to say that OS should use this same data. But, instead, OS have said it wishes to do the same thing all over again, to be paid for out of its annual £75m subsidy from the UK taxpayer. It makes no sense and Getmapping has complained to all the relevant authorities in the UK, but so far to no avail.

Sales were £5.5m at the end of 2014 and for the first time, Africa contributed a profit to the group.

Queens College - Oxford

Last Updated: Tuesday, August 18, 2015

MET Ltd

MET

 MET - Investment Information for OT1
 Date of First Investment  Dec 1998
 Total Investment to Date  £210,000
 Total Return on Sale - March 2010  £816,500
MET - Investment Information for OT2
 Date of First Investment  May 2002
  Total Investment to Date  £75,000
  Total Return on Sale - March 2010  £192,459
 MET - Investment Information for OT3
  Date of First Investment  May 2002
  Total Investment to Date  £75,000
  Total Return on Sale - March 2010  £192,459

Membrane Extraction Technology (MET) was founded by Andrew Livingston, Professor of Chemical Engineering at Imperial College in 1995. OT1 was the first external investor in December 1998. Originally based at Imperial College, the company specialised in developing methods for improving the separation stage of chemical preparations. Sometimes the task was to remove an impurity by developing a membrane-based process which would allow the impurity to pass selectively through the membrane, sometimes the membrane would allow only the desired chemical to pass through the membrane. During these initial years, MET used membranes manufactured by others. But these were not always ideal for the task.

So, in 2006, MET began developing membranes of its own, and established a facility for manufacturing these. By this time, MET was based at a small industrial unit in Fulham. Sales, including grants, were £681,000 in the year to July 2008 and MET recorded a profit of £90,000. During 2009, MET moved all its operations into a larger factory in North London, where it has offices, a laboratory for R&D and testing/quality control, and a facility for manufacturing its proprietary range of organic nanofiltration membranes, Duramem, produced in spiral-wound format so that each module incorporates many square meters of membrane.

MET LtdMET has supplied "MET cells" to many of the worlds largest pharmaceutical companies. These are bench-top devices which enable companies to try out separations using a variety of membranes and process conditions at lab scale. The hope and expectation is that these trials will result in some of the membranes being used in production, in which case the companies concerned will order production quantities of membranes from MET. This process has started to work with one of the largest pharma companies using Duramem at process scale, when on 1st March 2010, MET was acquired by Evonik Industries AG, Essen, Germany.

Last Updated: Tuesday, August 18, 2015

Scancell Ltd

www.scancell.co.uk

Scancell- Investment Information for OT1
Date of First Investment Aug 1999
Total Investment to date £391,665
Current Value of Holding (as at 31 May 2015) £2,426,363
% Equity 3.1%
Scancell- Investment Information for OT3
Date of First Investment Dec 2003
Total Investment to date £324,999
Current Value of Holding (as at 31 May 2015) £1,560,137
% Equity 2.0%

Scancell is an AIM listed biotechnology company in which Oxford Technology VCT was one of the original investors in 1999 when Professor Lindy Durrant, Scancell’s founder was based in a university lab in Nottingham. OT1 owns 6,883,300 shares in Scancell.

Scancell is developing novel immunotherapies for cancer based on two platform technologies, known as ImmunoBody and Moditope. Scancell’s first ImmunoBody, SCIB1 is being developed for the treatment of melanoma and is in Phase II clinical trials. In theory, these Scancell technologies could be used to treat many common forms of cancer, including breast and prostate. Data from the trials to date is encouraging and demonstrate that SCIB1, when used as monotherapy, has a marked effect on tumour load, produces a melanoma-specific immune response and highly encouraging survival trend without serious side effects.

Scancell has also identified and patented a series of modified epitopes that stimulate the production of killer CD4+ T cells that destroy tumours without toxicity. The Directors believe that the Moditope® platform could play a major role in the development of safe and effective cancer immunotherapies in the future.

Scancell remains a high risk investment – clinical trials can go either way, but if the trials go well, we would expect to see a significant increase in the share price. The whole area of cancer immunology is now centre stage for major pharmaceutical companies seeking to secure a long term position, as this very new exciting area starts to deliver excellent clinical outcomes, which are anticipated to replace current crude, but often effective, treatments based around chemotherapy and radiotherapy.

New data published in March 2015 demonstrated that animals treated with a combination of SCIB2, Scancell's ImmunoBody® vaccine in development for the treatment of lung, oesophageal, prostate and other epithelial cancers, and checkpoint inhibition showed enhanced tumour destruction and significantly longer survival times than when either treatment was used alone which is positive news.

The bid price of Scancell's shares used for the calculation of the 31 May 2015 NAV was 35.25p. Scancell Holdings is listed in the FTSE AIM All-Share Index in the Pharmaceuticals & Biotechnology sector. (Code SCLP)

Last Updated: Tuesday, August 18, 2015

Select Technology Ltd

www.selectec.co.uk

Select Technology- Investment Information for OT1
Date of First Investment Sep 1999
Total Investment to date £488,224
Current Value of Holding £1,198,306 (as at 31 May 2015)
% Equity 30.0%
Select Technology- Investment Information for OT2
Date of First Investment Nov 2001
Total Investment to date £132,000
Current Value of Holding (as at 31 May 2015) £296,384
% Equity 7.4%
Select Technology- Investment Information for OT3
Date of First Investment Nov 2004
Total Investment to date £47,051
Current Value of Holding (as at 31 May 2015) £112,307
% Equity 2.8%
Select Technology- Investment Information for OT4
Date of First Investment Aug 2006
Total Investment to date £236,703
Current Value of Holding (as at 31 May 2015) £734,226
% Equity 18.4%

Select Technology specialises in software for photocopiers (now known as MFDs – Multi-function devices – since they scan, fax, email and do other other tasks in addition to photocopying). There are two strands to the business: (1) writing software which sits at the heart of MFDs and which greatly improve the user experience, enabling users to access all software programs to which they are entitled with a single sign on, and giving these programs the same ‘look and feel’, and (2) software distribution: Select is the European master-distributor for PaperCut, a world-leading print-management software product.

As with computers in the 1980s, MFD hardware has become a commodity product with little to choose between the offerings of most companies. Increasingly, what makes customers choose one make in preference to another is the quality and ease of use of the many software programs which run on them. Most MFDs will be on networks, so that, for example, a user may scan a document in London and print it out in New York and Tokyo. The accounting software will need to determine how the cost of this is allocated. Different users will have different usage rights to the software. The MFDs will need to identify users and some will use cards, other PIN numbers, and other biometric scans. Getting everything to work together, and giving everyone a good user experience is non-trivial, which is why there is a need for Select, which has specialised in this area for many years. It has taken a long time, but Select’s financial performance is now improving and sales are increasing.

Payment system at Cardiff University

Last Updated: Tuesday, August 18, 2015

Valid Information Systems

www.valinf.com

Valid Information Systems- Investment Information for OT1
Date of First Investment Nov 1997
Total Investment to date £270,000
Total Return on Sale - 2003 £2,520,255

OT1 first invested in Valid Information Systems in Nov 1997, and subsequently made two further investments, bringing the total invested to £270,000. Valid was sold to Hummingbird in 2003, with payment for the shares being based on performance and paid in several tranches. Two years later, when the buyout was complete, OT1 had received a total of £2,520,255, net of all costs of sale.

Congratulations to Bill Cannings and Phil Lee, the Managing Director and Technical director and founders of Valid. They successfully built the business and in summer 2003, sold it to Hummingbird for an initial consideration of £10m to be followed by a further £8m payable in tranches after each of the next two years, but dependent on performance targets which have subsequently been achieved.

Valid designs electronic document and record management systems enabling users to find and access documents electronically. Their systems are approved by the National Archive (Public Record Office) for use in all aspects of Central and Local Government. In one application, for example, any one of 2,300 employees can summon the minutes of committee meetings to their screens, simply by typing in a few key words. The saving in time and money, compared to having to find the paper version, is immense. The Inland Revenue and the Serious Fraud Office have used Valid to image and index documents for use in trials and more recently Customs and Excise are using Valid for case and trial preparation. In court, Valid supplies the system that enables the documents to be displayed and explained to all those present, including the jurors. Valid systems are also in use by HM Treasury, National Audit Office, DEFRA, the RAF, and the Army.

Last Updated: Tuesday, August 18, 2015

Share Price Information and RNS Announcements

For information from the London Stock Exchange on the share price for OT1 and all RNS announcements, please click on the image below: