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Stock Analysis & ValuationTriple Point VCT 2011 plc (TPON.L)

Professional Stock Screener
Previous Close
£94.50
Sector Valuation Confidence Level
High
Valuation methodValue, £Upside, %
Artificial intelligence (AI)398.01321
Intrinsic value (DCF)36.55-61
Graham-Dodd Method0.70-99
Graham Formulan/a

Strategic Investment Analysis

Company Overview

Triple Point VCT 2011 plc (TPON.L) is a UK-based venture capital trust (VCT) listed on the London Stock Exchange, specializing in high-growth sectors such as cinema digitization, renewable energy (solar PV, anaerobic digestion, landfill gas, hydro projects), and SME lending. As part of the Financial Services sector, the fund targets small and medium-sized enterprises (SMEs) with investments ranging from £5 million to £50 million, focusing on both startup and mature stages. Triple Point VCT 2011 aims to provide investors with tax-efficient returns through a diversified portfolio of innovative and sustainable businesses. The fund typically holds investments for around five years before seeking exits. With a market capitalization of approximately £50.9 million, the trust plays a key role in financing UK-based growth companies while offering investors exposure to niche, high-potential industries.

Investment Summary

Triple Point VCT 2011 plc presents a unique investment opportunity for those seeking tax-efficient exposure to UK SMEs in high-growth sectors like renewable energy and digital cinema. However, the fund's recent financials show challenges, with negative revenue (-£82k) and net income (-£785k) in the latest fiscal year. The diluted EPS of -1.46p and negative operating cash flow (-£1.62m) raise concerns about short-term profitability. On the positive side, the trust maintains a strong cash position (£18.2m) with no debt and offers a dividend yield (2p per share), which may appeal to income-focused investors. Given its venture capital nature, the fund carries higher risk but could benefit from the UK's push toward renewable energy and SME growth. Investors should weigh the tax advantages against the fund's recent underperformance.

Competitive Analysis

Triple Point VCT 2011 plc operates in a competitive landscape dominated by other UK-focused venture capital trusts and asset managers. Its niche focus on renewable energy and cinema digitization differentiates it from broader VCTs, but this specialization also limits diversification. The fund's competitive advantage lies in its sector-specific expertise and tax-efficient structure, appealing to UK investors seeking EIS/VCT benefits. However, its recent financial underperformance (-£785k net income) suggests challenges in portfolio returns compared to peers. The absence of debt and a strong cash position (£18.2m) provide flexibility, but the negative operating cash flow (-£1.62m) indicates potential liquidity constraints. Compared to larger VCTs, Triple Point VCT 2011 has a relatively small AUM (~£50.9m market cap), which may limit its ability to compete for larger deals. Its focus on SME lending and renewable energy aligns with UK policy trends, but execution risks remain high given the early-stage nature of its investments. The fund's five-year investment horizon may also deter investors seeking quicker liquidity.

Major Competitors

  • BlackRock Smaller Companies Trust plc (BRSC.L): BlackRock Smaller Companies Trust focuses on UK small-cap equities, offering broader market exposure compared to Triple Point's sector-specific approach. It benefits from BlackRock's extensive resources but lacks the renewable energy and cinema digitization specialization. The trust has a larger AUM, providing better diversification but without VCT tax benefits.
  • Maven Income and Growth VCT plc (MIG.L): Maven Income and Growth VCT is another UK-based VCT with a focus on SMEs. It competes directly with Triple Point in offering tax-efficient returns but has a more diversified portfolio across sectors. Maven's stronger recent performance may attract investors away from Triple Point, though it lacks the same renewable energy focus.
  • Hargreave Hale AIM VCT plc (HGT.L): Hargreave Hale specializes in AIM-listed companies, providing liquidity advantages over Triple Point's private market focus. Its performance is tied to public equity markets, offering different risk-return dynamics. While it lacks Triple Point's renewable energy exposure, its AIM focus may appeal to investors seeking more transparent valuations.
  • General Capital VCT plc (GCV.L): General Capital VCT provides a broader SME investment mandate compared to Triple Point's niche sectors. It competes for similar investor capital but without the same emphasis on green energy. Its performance has been mixed, reflecting the challenges of the VCT space.
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