Pires Investments : Annual Report and Financial Statements for the period ended 31 December 2020

Pires Investments plc

(Incorporated in England and Wales with registered number 02929801)

Annual Report and

Financial Statements

FOR THE PERIOD ENDED 31 DECEMBER 2020

PIRES INVESTMENTS PLC

Annual Report and Financial Statements

FOR THE PERIOD ENDED 31 DECEMBER 2020

Contents

	Page
Company Information	1
Chairman's Statement	2
Strategic Report	6
Directors' Report	9
Report on Remuneration	11
Statement of Directors' Responsibilities	12
Corporate Governance Report	13
Report of the Independent Auditor	20
Statement of Comprehensive Income	23
Statement of Changes in Equity	24
Statement of Financial Position	25
Statement of Cash Flows	26
Notes to the Financial Statements	27

PIRES INVESTMENTS PLC

Annual Report and Financial Statements

FOR THE PERIOD ENDED 31 DECEMBER 2020

Company Information

Directors	Peter Redmond (Chairman)
	John May (Non‐Executive Director)
	Nicholas Lee (Non‐Executive Director)
	David Palumbo (Non‐Executive Director)
Secretary	Robert Porter
Registered office	107 Cheapside
	London
	EC2V 6DN
Independent Auditors	PKF Littlejohn LLP
	15 Westferry Circus
	London E14 4HD
Nominated adviser	Cairn Financial Advisers LLP
	Cheyne House
	Crown Court
	62‐63 Cheapside
	London
	EC2V 6AX
Joint Brokers	Peterhouse Capital Limited
	3rd Floor
	80 Cheapside
	London
	EC2V 6EE
	Tennyson Securities Limited
	20 Fenchurch Street
	London
	EC2M 3BY
Registrars	Computershare Investor Services plc
	PO Box 82
	The Pavilions
	Bridgwater Road
	Bristol
	BS99 7NH
Company Registration number	02929801

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PIRES INVESTMENTS PLC

Chairman's Statement

Annual Report and Financial Statements

FOR THE PERIOD ENDED 31 DECEMBER 2020

Highlights

• Total investment of c. £1.7 million made in Sure Valley Ventures ("SVV")
• Return of €804,000 achieved from the sale of Artomatix, one of the companies within the SVV portfolio, representing over a 60% return on our initial investment of £1.1 million in SVV.
• New SVV investments made during the period include:
  o Buymie, the artificial intelligence‐based same day grocery delivery company o Getvisibility, an artificial intelligence data management and security business o Volograms, a reality and volumetric video company

• Follow‐on investments by SVV in Admix, which has developed a programmatic monetisation platform for gaming and other entertainment developers, and Buymie.

• Increase in value of portfolio investments in Buymie and Admix
• Direct investments made:
  o €250,000 in Getvisibility, an artificial intelligence data management and security company
  o £200,010 in Low6, a white labelled mobile sports betting platform for sports teams/franchises
• Initial investment in the digital assets sector leading to a substantial shareholding in Pluto Digital Assets plc.
• Placing to raise gross proceeds of £1.06 million from both new and existing investors to support the Company's investments in technology plus the exercise of warrants at 4 pence per share which raised £109,010 during the period.
• Cash at period end was in excess of £1 million
• Increase in share price
  o over the period of almost 140%
  o from start of the period to 26 April 2021 of almost 400%
• The Company's market value on 26 April 2021 was £19.6 million

Review of activities

We are very pleased to provide our results for the 14‐month period to 31 December 2020. This period has been transformational for the Company.

Sure Valley Ventures

In November 2019, the Company invested £1.1 million to acquire a 13% interest in Sure Valley Ventures ("SVV"), a venture capital fund focused on investing in the software technology sector with a specific focus on Artificial Intelligence ("AI"), Security, the Internet of Things ("IoT") and Immersive Technologies. SVV currently has a portfolio of 13 investee companies at different stages of development spanning these sectors. The details of the portfolio companies are set out below:

Artificial Intelligence
Buymie	An artificial intelligence‐based same day grocery delivery company.
Security
Getvisibility	An artificial intelligence security company addressing the substantial problem faced by
	corporations in storing, sorting, accessing and protecting data.
Nova Leah	An artificial intelligence cyber‐security assessment and protection platform for connected
	medical devices.
Precog	A security solution platform company that provides data intelligence to combat crime,
	terrorism and protect vulnerable people.
Internet of Things
Wia	Provision of a platform solution for smart buildings, helping people get back to work post
	COVID‐19.
CameraMatics	Platform enabling transport fleet managers to reduce risk, increase driver safety and
	comply with growing industry governance and compliance.
Ambisense	Provides sensors and an analysis platform to allow real‐time gas and environmental
	monitoring.

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PIRES INVESTMENTS PLC

Chairman's Statement (continued)

Annual Report and Financial Statements

FOR THE PERIOD ENDED 31 DECEMBER 2020

Immersive Technologies
VR Education	A virtual reality company which has transformed how training and education are delivered
	and consumed globally.
Admix	A platform enabling the monetisation of interactive programmatic brand placements in,
	for example, video games.
Warducks	A game development studio known for the production of leading games and is soon to
	launch an AR game that could be the next Pokémon Go.
VividQ	A deep technology software company which has developed a framework for real‐time 3D
	holographic displays for use in heads‐up displays and AR headsets and glasses.
Volograms	A reality capture and volumetric video company.
Virtex	A platform for the next‐generation of live, immersive entertainment within the virtual
	reality ("VR") gaming and e‐sports industries.

This portfolio provides Pires with exposure to key, cutting‐edge and rapidly growing technology sectors.

The investment in SVV has already proved to be successful for Pires with a realisation and a cash distribution being achieved soon after the investment, as a result of the sale of one of the portfolio companies, Artomatix. Artomatix was sold at a valuation c. 500% of the price of the original investment in the company. Following the progress made by VR Education Holdings plc, which is listed on AIM, SVV also realised the value of its original investment through the partial disposal of its holding. This is the second cash realisation to be made from the Company's investment in SVV.

During the period, SVV have made new investments in:

• Getvisibility, an artificial intelligence security company addressing the substantial and increasing problem faced by corporations in storing, sorting, accessing and protecting data;
• Buymie, an artificial intelligence‐based same day grocery delivery company; and
• Volograms, a company whose technology enables consumers to create their own immersive AR and VR content for use in apps, social media and VR headsets with a particular application in the mobile VR market which is expected to grow significantly.

Additionally, a number of the portfolio companies have increased in value during the period. This revaluation is principally based on subsequent funding rounds which have taken place at higher valuations than at the time of the initial investment. In particular, the valuation of Buymie has increased by c. 200% since the original investment in April 2020, as part of a second round of investment of €5.8 million into this company in June 2020, in which SVV also participated. Admix also raised US$6.1 million at a valuation representing 450% of the company's valuation at the time of SVV's initial investment.

Direct investments

During the period, Pires also made a direct investment of €250,000 in Getvisibility, an artificial intelligence security company addressing the substantial and increasing problem faced by corporations in storing, sorting, accessing and protecting data. The Company also invested £200,010 in Low6 which provides a white‐labelled mobile platform to sports teams/franchises that enable them to offer a pooled sports betting experience to users of their fan‐ based apps. This company is on track to IPO in Q2 2021.

Digital assets

The Company started to execute its strategy of investing into the digital assets sector, including Web 3.0 and decentralised technology, with a focus on platform services and digital infrastructure opportunities. The Company's investment into DeTech Studio Limited also provided exposure to YOP tokens whilst mitigating cryptocurrency market volatility. Subsequently this investment has been used to subscribe for shares in Pluto Digital Assets plc, a technology services and platform company that invests in, incubates and advises digital asset projects based on decentralised technologies. The Company's strategy will continue to seek exposure to this sector where there is real market application and strong potential for adoption whilst, at the same time, mitigating the volatility of direct cryptocurrency exposure.

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