The Guernsey Investment Fund’s Technology and Innovation Cell has invested more than £20 million with a number of possible development projects being progressed by the Property Cell.
The annual report and accounts issued to shareholders show a substantial increase in net asset value per share as at 31 December 2019 due to the performance of the Technology and Innovation Cell’s investments. The Technology and Innovation Cell, which had £38 million committed by shareholders including the States of Guernsey, has invested more than £20 million into 11 projects, with the majority of funds being invested into local companies. The cell invests in projects and businesses which have a Bailiwick of Guernsey focus, or which may benefit directly or indirectly the development of the Bailiwick. The Property Cell, which will be investing solely in Bailiwick-based properties and projects, has not yet made any investments but has been evaluating a strong pipeline of development projects and liaising with planning authorities.
‘The 2019 results are encouraging and good by any competitive yardstick. 2018 was not a full year and involved a lot of start-up work and deal pipeline research, but nonetheless eight investments were closed in that period and the pace of detailed review and investment continued into 2019. The strategy of the Technology and Innovation Cell is to take three or four larger cornerstone investments alongside smaller early stage companies with promising technology and market niches,’ said chairman Gilbert Chalk.
‘The 2019 accounts provide the first opportunity to really assess the progress of the fund in this context since inception. There are a number of further promising transactions that are the subject of current due diligence and the fund is likely to be fully invested in the current year.’
Mr Chalk highlighted the important critical mass that the backing of the States of Guernsey brings but also the benefits of independent professional management can bring to achieving good returns.
“Ravenscroft, as investment manager to the Guernsey Investment Fund, and its consultants MXC have worked diligently to establish a strong base from which to achieve good realised returns for shareholders in due course. I would also like to thank my two fellow board members and the fund’s other professional advisers for their input and effort over the last two financial years,” he said.
But he said that COVID-19 may have an impact on 2020’s results.
“It is too early to say with any clarity what impact COVID-19 and the related lockdowns will have on 2020’s results and the value of the investments. However, there are grounds for relative optimism. Our investment manager and their consultant remain closely in touch with all our investee businesses,” he said.
“Most of the investments have sound business models and are well funded. In some cases, cost cutting measures are in process, or have been implemented, and there may need to be further support from the fund in some limited instances. GIF will support its investee companies where there is a justifiable business case over the medium term. A close watch will continue to be kept on the portfolio. Clearly we are in uncharted territory where nothing can be taken for granted but we are hopeful that the investments as a whole will weather the current economic storm relatively strongly.”
He added that both cells were looking for additional opportunities.
“The board looks forward to reviewing further investment opportunities that can be of direct or indirect benefit to the Bailiwick. These will be assessed against the criteria required to provide shareholders with healthy returns and the Bailiwick with a prosperous and resilient economy.”
Anyone wishing to discuss potential investment from the fund should contact Ravenscroft on gif@ravenscroftgroup.com
