Tax Efficient Review of Octopus Eureka EIS Fund with ... - Clubfinance

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Table 8: Eureka Unquoted Portfolio Summary Source Octopus True Knowledge Ltd has developed an Internet search engine website that answers questions. Finding information on the Internet currently involves a process of trial and error, hoping that the search engine retrieves the information you’re looking for. True Knowledge has devised technology that resolves this fundamental problem by operating a more intuitive system. It intelligently answers questions asked on any topic in plain English. The company is expanding this technology platform into a mobile application for conversational search, named Evi. The Key Revolution Ltd - The work of the Key Revolution heralds the move towards ‘cloud computing’. Its patented technology enables Internet users to securely authenticate themselves and access their own files on any computer, then clear their text or data. The highly innovative Mobiu key device combines both SIM card and chip and pin features. Lost or stolen Mobiu keys can also be deactivated, ensuring total security. Calastone Ltd is the UK’s only independent transaction service for the mutual fund industry. It enables buyers and sellers of mutual funds on different platforms to communicate orders electronically by providing a universal message communication and ‘translation’ service. This is being welcomed in an industry which has not previously been able to invest in the real-time exchange of information between participants. Orders are commonly communicated by fax or telephone with a high level of manual re-keying and manual error correction. Calastone’s ‘translation’ service means that neither the transmitter nor receiver need purchase additional technology or change their existing systems. Furthermore, there is no barrier or cost of entry. Zoopla.co.uk is an award-winning online property information service and community website, presenting information on house pricing, free valuation estimates, for sale listings, and local community information. Zoopla has become the UK’s leading website for house prices and value data, as it provides the most comprehensive source of residential property market information. It is also the UK’s most active property community, with over a million user contributions to its website in 2008. Phasor Solutions Ltd provides flat panel phased array antennae at a fraction of the cost associated with traditional phased array technology. Phased array products are groups of antennae constituting a radar system that enhances and controls signal strength. They are used across many industries including travel and engineering and can facilitate communication signals. Phasor has the potential to transform the ‘communication on the move’ market through its phased array product offering. Phasor develops phased array antennae with multiple commercial uses, which include enabling moving host units, such as trains and airplanes, to deliver broadband Internet access and high speed communications. Additionally, Phasor’s product range, which will be expanded to include radars, has numerous other applications in both the aerospace and military sectors. Phasor’s innovative flat panel satellite antenna enables a 90% reduction in system costs, whilst ensuring a similar, if not greater, level of performance than other products. e-Therapeutics plc is an AIM listed, (ETX.L), drug discovery and development company. It focuses on three core areas: the discovery of new drugs; discovering novel uses for existing drugs; and analysis of the interactions between different drugs. The company has developed a unique drug discovery technology that enables it to assess drug candidates for high efficacy and safety ahead of clinical trials. The use of this technology dramatically reduces the time between drug discovery and market applicability, and reduces the risks associated with clinical trials. The company is currently progressing with the preclinical and clinical development of a number of innovative drug candidates to which the new technology was applied. The treatments are now at an advanced stage of testing, validating the therapeutic attributes that e-Therapeutics’ drug discovery system predicted for each candidate. The development and commercialisation of the company’s drug candidates that have generated clinical data will be supported initially by licensing these to partners operating in smaller pharmaceutical markets. Phase Vision Ltd is a manufacturer of optical inspection solutions for high-speed, three dimensional shape measurement with micro-scale accuracy. The Company has developed (and patented) a unique optical approach to the measurement of very large (>100cm) industrial items with free-form or curved surfaces, such as ship propellers and aircraft wings to tighten manufacturing tolerances, increase throughput and reduce waste. Phase Vision’s metrology solutions are more cost efficient than current laser processes, and accurately measure mechanical systems to micron level, thus providing superior performance. Phase Vision’s systems use a fringe projection approach and comprise of one or more projector/camera units that project, and image, patterns of light onto the object to be measured. Sophisticated algorithms are then used to accurately calculate the dimension of the object. Phase Vision’s clients include some of the biggest names in the automotive, aerospace, chemical and medical device engineering sectors. The market for large scale measurement with micro-scale accuracy is estimated to be worth around £2 billion per year, with growth of around 6% per annum. Graze is the first UK Company to deliver healthy and nutritionally balanced food by post straight to the home or office. Graze’s snack boxes cost only £3.49 and are sent by Royal Mail for next day delivery. The Graze product range includes over 100 products to choose from, all free from artificial colourings, flavourings and preservatives. Customers can also place orders for personalised boxes, specifically tailored to meet their tastes, dietary and nutritional requirements. Graze promotes a varied and balanced diet through facilitating the intake of a wide variety of smaller portions of natural, high energy foods throughout the day. Its product is very much in tune with customer needs and the demands of modern living, as people become ever more conscious of health and convenience. Surrey NanoSystems was founded in November 2006 in partnership with the University of Surrey’s Advanced Technology Institute. The Company is a pioneer in the development of highly advanced equipment and processes for growing Carbon Nanotubes (CNTs). CNTs are molecular-scale tubes of graphitic carbon that possess extraordinary electronic and mechanical properties. Surrey NanoSystems is unique in its ability to consistently grow CNTs at temperatures as low as 350°C. Historically, nanotechnology specialists have been unable to grow CNTs below 700°C, preventing their use in a range of other applications, due to the damage high temperatures cause to other materials used in semiconductor chips. For this reason, NanoGrowth®, the Company’s unique growth technology, represents a major breakthrough for the rapidly developing field of nanoelectronics, the future manufacture of high performance semiconductor chips, and their use in a far broader range of sectors. Getoptics Ltd is an online retailer of contact lenses, which was formed through the acquisition of Getlenses and Postoptics. GetOptics is now the largest online retailer of contact lenses in the UK. The company has a turnover of circa £6 million and 25 to 30% market share of the online market, including a ‘white label’ contract (to supply goods that are then rebranded) with a large UK retailer. iProfile, formerly known as SkillsMarket, works with recruiters to make the business of finding and placing the right people a lot simpler and quicker. The Company’s website enables candidates to transform any static CV into a dynamic professional profile kept up-to-date by candidates themselves. The aim of iProfile is to bring the traditional CV template into the 21st century. 14 Tax Efficient Review Reprinted for the use of Octopus Investments Limited November 2011
Table 8: Eureka Unquoted Portfolio Summary Source Octopus Recruiters save time and money on CV processing by searching up-to-date databases and unleashing the potential of candidate information - making it more accurate and responsive, with the ability to search and sort in real time, transforming the efficiency of recruitment processes. Soil Xchange is a subsidiary of AQS, which is a waste management business focusing on soil stabilisation and remediation by means of a proprietary process and equipment. Soil Xchange’s aim is to create strategic hubs across the UK, specifically with the objective of taking in hazardous soil and waste, and exchanging it for recycled, clean soil, using AQS’ market leading soil remediation knowledge and equipment, the ‘Eco Warrior’. Mi-Pay was founded in 2004 with the objective to establish itself as a leading processor of payments for the fast-emerging mobile money sector. The service enables customers to ‘top-up’ their pre-paid mobile phone directly online, or via their mobile phone, rather than using indirect brand channels such as PayPoint or bank ATMs. Benefits of the direct service include cost reductions for mobile network operators and a more personal engagement with customers, removing the anonymity of customer relationships and allowing for substantial improvements in customer retention. Metrasens is a technology business specialising in metal detection products for the healthcare and security markets. It was founded in June 2005 by two former employees of QinetiQ, a company specialising in defence security and technology. Its core technology was developed within QinetiQ, with which Metrasens maintains strong links. Metrasens’ products work by detecting magnetic material. Its Ferroguard® MRI (magnetic resonance imaging) detection system provides visual and audio alarms at the point of detection. It is used in hospitals in rooms containing MRI units, where it’s crucial, for health and safety reasons, to detect such material. The Ferroguard® system not only increases safety but also decreases potential costs, through reducing the likelihood of injuries and damage from projectiles in the MRI units. The company has also developed the FG1 Portable Security Pole, designed for multiple niche applications, such as street knife detection operations. Money Workout purchases and generates mortgage enquiries that it matches to the best available mortgage product in the market. This takes into account the borrower’s requirements and financial circumstances and the provider’s lending criteria. Money Workout improves efficiency, transparency, and quality throughout the mortgage origination process, through a true whole-of-market, web-enabled solution. Through efficient lead generation, qualification and execution, Money Workout aims to remove 50% of the origination costs for mortgage companies. Semafone Ltd was founded in 2009 by a consortium of call centre professionals, who were instrumental in the development of ‘Semafone’; a fraud prevention software for use in call centres. Semafone aims to secure sensitive data passed over the phone, including bank details, personal identification data and credit/debit card transactions. Without interrupting caller and agent dialogue, customers input their card details via the telephone keypad, eliminating the need to read out the card number and three digit security number to the phone operator, removing the risk of operator fraud. The company has already secured a number of blue chip clients. Bowman Power is a leader in the development of clean power generation technology, designed to substantially increase the performance of standard diesel and gas fuelled engines. Based in Southampton, Bowman Power’s core product is a turbo-generator, which recovers waste heat from engines, in order to both boost their power and efficiency, whilst reducing their emissions. Bowman Power is the first company worldwide to emerge with economical, production grade solutions to turn waste heat from exhausts into electrical power. Elonics is a semiconductor company specialising in the design and development of multi-band radio frequency integrated circuit products. Founded in 2003 and based in Livingston, United Kingdom, Elonics has developed an innovative radio frequency architecture called DigitalTune that is the foundation for a family of silicon tuners for television and radio. Elonics’ innovative technology allows manufacturers to design high performance consumer electronics products with unrivalled performance, power consumption and low system cost. Founded in 2005, PrismaStar is a ‘software as a service’ business providing patented technology to help consumers shopping online find the very best products and services, personalised to their individual tastes. You can trial the company’s technology by visiting: http://www.prismastar.com/our-solution/ answeroil-demo/. Executive Channel installs digital screens in office buildings which it uses to display advertising, up-to-date news and travel information via the Internet. These screens are usually located in the elevator lobby to engage an exclusive audience, with high spending power in an uncluttered environment. The Company is leveraging the industry move in the media market from static billboards, to interactive digital formats. Curlet Ltd (10CMS) is a leading Commerce Content Management platform for global brands and retailers. The 10CMS platform enables retailers to deliver consistent, differentiated retail experiences across digital platforms, via the most advanced mobile devices and web browsers. 10CMS’s Commerce Content Management platform provides online retailers with a single, intuitive toolset with which to quickly add interactive content modules to existing eCommerce web sites. Modules such as Carousels, Collections, Buy the Look and Shop Landing Pages enable retailers to merchandise from existing media with the addition of ‘Select and Buy’ options, and to showcase more products on high traffic web pages. As a result, 10CMS customers report significant improvements in conversion rates (up more than 50%) and average order values (20% or more), as well as a tenfold reduction in costs. Diverse Energy builds an emission-free, low-cost power solution for mobile phone communication towers in rural areas of developing countries. It has developed the PowerCube, a standalone replacement for the polluting diesel generators that are currently used as remote power supplies for mobile phone towers in areas where electricity is not available. It delivers power in a highly efficient way with low fuel and maintenance costs, thus offering a 25% reduction in total cost of ownership with a two year payback. Diverse Energy has designed an innovative, proprietary technology that allows the PowerCube to utilise ammonia as a fuel. When compared to traditional diesel generators, the PowerCube provides an 80% reduction in greenhouse gas emissions, a 74% reduction in energy use, and eliminates both local noise and air pollution. UltraSoC Technologies Ltd is a pioneering company developing advanced debugging technology for the embedded electronic systems increasingly used in many everyday products, from cars to mobile phones. The Company is developing next-generation, silicon Intellectual Property (IP) that addresses the burgeoning challenges of debugging the application software that provides the functionality and performance in modern electronic products. Tax Efficient Review Reprinted for the use of Octopus Investments Limited November 2011 15
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