Graze backer Draper Esprit’s ‘funny’ profits on a par with Marks & Spencer
A disruptive venture capital fund today said it was “funny” that it made the same profits as retail giant Marks & Spencer.
Aim-quoted Draper Esprit, which has masterminded the growth of brands such as Graze, Revolut and Crowdcube, doubled annual profits to £65.3m.
The firm’s primary portfolio value swelled 116 per cent to £243.5m generating investment income of £73.6m.
Alongside bumper returns, the fund announced plans to “double down on UK and Europe” with a £115m share placing and raising a further £61m across its range of funds.
First floated in June 2016 Draper Esprit focuses on “developing high growth digital tech businesses”. The firm’s varied portfolio also includes the likes of peer-to-peer lender Seedrs, online retailer SportsPursuit and internet feedback firm Trustpilot.
M&S sells its sandwiches next to Graze snacks on British Airways flights. The retail stalwart is facing a shopping list of problems, announcing earlier this week profits had plunged 62 per cent to £66.8m – though this was after being hit with a £514m restructuring bill.
Boss Simon Cook told City A.M.:
Consumers want to buy the best products wherever they can. We live in a world where online is increasingly important. Marks & Spencer have said themselves they need to catch up with helping consumers get what they want, where they want it.
It’s just funny that they made the same profit as we did last year at £65m.
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“We don’t expect them all to work out”
Also listed in Dublin, Draper Esprit said it had funded 25 new businesses over the last two years and grown its portfolio valuation by 209 per cent, realising £57m for investors.
Contrasting with some executive pay at larger companies, Cook and fellow executive Stuart Chapman have bonuses capped at 60 per cent of annual salaries.
Cook said Draper Esprit makes “high risk” investments
“We help the big exciting companies of tomorrow but not all of them make it. We are here to take risk and have the ability to provide tens of millions of pounds of risk to our best potential companies is what is missing in the economy. We don’t expect them all to work out.
“One of the things about the UK, in particular, has been our approach to regulation which has been supportive of innovation. The reason why you have companies like Revolut emerging out the UK is down to a very supportive regulatory framework.”
Read more: Graze backer Draper Esprit boosts its portfolio value by 44 per cent