Half-year Results

Braveheart Investment Group plc (AIM: BRH), announces its interim results for the six months ended 30 September 2024.

HIGHLIGHTS

• Profit of £43,000 in the six months ended 30 September 2024 (six months ended 30 September 2023: loss of £732,000), profit per share of 0.07p.
• Net Asset Value ("NAV") of £3,458,298 at 30 September 2024 (30 September 2023: £9,826,816)
• NAV per share of 5.42p (30 September 2023: 15.42p).

Financial Review

• Valuation of Portfolio Investments: £0,000 (31 March 2024: £39,000)*
• Valuation of unconsolidated Strategic Investments: £2,349,000 (31 March 2024: £1,614,000)**

* these are the historic investments made by Braveheart up to 2015

** these are the new investments made by Braveheart since 2015

Therefore, the total unaudited value of our unconsolidated investment portfolio as at 30 September 2024 is £2,349,000 (31 March 2024: £1,653,000). As at 30 September 2023, the comparable total valuation of our investments was £8,841,000. The increase in fair value of investments was the result of making further investments and also a positive share price performance in the listed investments.

Net asset value ("NAV") was £3.4 million as at 30 September 2024 (30 September 2023: £9.8 million, 31 March 2024: £3.3 million). This resulted in an increase in net asset value per share from 5.33 pence as at 31 March 2024 to 5.42 pence as at 30 September 2024.

The Group reports a profit after tax for the period under review of £43,000 (September 2023: loss of £732,000). This equates to a profit per share of 0.07 pence (September 2023: loss per share of 1.15 pence).

The Directors believe that the Strategic Investments continue to be the most likely drivers of growth in shareholder value over the remainder of the current year and so have concentrated the remainder of this CEO Statement on their operations and prospects.

Post Period Events

On 11th October 2024, the Company announced that it had acquired 65,415,862 ordinary shares in IQ-AI Limited ("IQ-AI"), representing 29.51% of IQ-AI's issued share capital, for a total consideration of £719,574. IQ-AI is an imaging software and healthcare diagnostics company, whose subsidiaries include Imaging Biometrics, LLC ("IB") and Stone Checker Software Limited. IB is a healthcare imaging software company that supplies medical technology solutions, regulatory consulting services and has a neuroimaging product portfolio. Stone Checker Software Limited is a supplier of technology solutions in the field of kidney stone analysis and kidney stone prevention. IQ-AI's ordinary shares are listed on the main market of the London Stock Exchange. Trevor Brown is the CEO of IQ-AI.

Strategic Investments Overview

Listed Investments

At 30 September 2024, Braveheart held investments in the following AIM listed companies:

· Aukett Swanke Group plc (Braveheart owned 6.97% of the company) a professional services group that principally provides architectural, interior design and smart building services in the primary international market sectors of offices, residential, education, industrial, hospitality and mixed use or 'hybrid' developments. On 18 September 2024, Aukett Swanke announced the acquisition of Vanti assets had added over £2m of new contract wins, its £2.5m sale of its Old Torpedo Factory freehold, and the repayment of mortgage and other debt reduction by an overall £1.75m. This, together with annualised operating cost reduction of £2m, is expected to enhance profitability.

• Autins Group plc (Braveheart owned 26.95%) an industry-leading designer, manufacturer, and supplier of acoustic and thermal insulation solutions for the automotive industry and other sectors. On 26 September 2024, we reported that Dr Qu Li, a non-executive director of Braveheart and leading UK expert in automotive design and manufacturing had been appointed a non-executive director of Autins. We believe her expertise will help develop new opportunities for Autins.
• Image Scan Group plc (Braveheart owned 10.65% of the company) a specialist supplier of real-time X-ray screening systems to the security and industrial inspection markets. This company recently launched new AI software to enhance threat recognition in its X-ray scanning product and a substantial contract for its portable X-ray system for military and counter-terrorism applications.

The portfolio value of the listed investments at 30 September 2024 was £2,322,293.

Paraytec Limited (Braveheart owns 100% per cent of the company)

Paraytec develops high performance specialist detectors for the analytical and life sciences instrumentation markets.

Paraytec continues to develop the CX300 instrument, focusing on its application in rapid diagnosis and treatment of bacteraemia, commonly associated with sepsis. The current CX300 instrument performs well in detecting and counting particles labelled with a single-colour fluorescent marker.

Development is progressing on the next-generation two-colour instrument, which will enable real-time comparison of two populations of differently coloured particles. This advancement opens access to a much larger market, with feedback indicating potential use in a wide range of biomedical and research applications. Paraytec has completed the prototype of this two-colour instrument and is currently engaged in testing, miniaturization, and cost reduction of the optical components. The instrument will shortly be tested by collaborating universities before being marketed in 2025.

Work continues on the development of a point-of-care test for bacteraemia, using CX300 technology to distinguish between gram-positive and gram-negative bacteria. This test leverages a genetically engineered fluorescent protein that binds specifically to peptidoglycan, aiding in the rapid identification of bacterial infections.

A patent for the rapid Gram test has been filed. This test, which is crucial for the early treatment of sepsis, is also applicable to many other sectors such as food testing. The resulting assay will be compatible with the two-colour instrument, as well as with more expensive equipment from other manufacturers, expanding its versatility.

Discussions have commenced with potential distributors of the CX300 in other territories and markets. In the period, a loan of £89,000 was made and the value of the Company's equity investments and loan receivable in Paraytec remains written down to zero.

Kirkstall Limited (Braveheart owns 86.11% of the company)

Recently, the company has achieved cost reductions across the business, improving operational efficiency.

Sales are being made to contract research organisations (CROs) involved in drug development, a promising market for Kirkstall's technology. To support this market, Kirkstall has developed a new product variant specifically designed for CROs, which will also be suitable for general use.

Kirkstall has recently secured new distributors in China and South Korea. Online seminars have resulted in significant engagement, and sales enquiries. These distribution agreements are expected to significantly increase the company's market reach. Distribution agreements in other territories are now being sought.

Kirkstall's QV1200 product continues to be marketed by the company and is used globally within university research teams, generating positive feedback. The company is collaborating with these researchers to support the publication of papers, which will further bolster sales and market presence. No change has been made to the decision at 31 March 2024 to write down the value of the Company's equity investments and loan receivable in Kirkstall to zero.

Gyrometric Systems Limited (Braveheart owns 21.43% of the company)

Gyrometric has developed a patent protected system of hardware and software to monitor complex movements of rotating shafts at both high and low speeds and detect minute irregularities in their motion. The system then analyses the data to help predict mechanical failure in the shafts and motors, and the bearings and couplings attached to them.

As reported on 1 August 2024, Gyrometric has been awarded a £300,000 grant by the UK Government's Innovate programme ("IUK") and is leading a group of UK specialists working to develop a monitoring system for large journal bearings for wind turbines. The UK group includes Leonardo Testing Services Limited in Sheffield and the UK's Offshore Renewable Energy Catapult in Blythe. In parallel, the US Government has funded a USA-based team led by Tufts University, which includes Kingsbury Inc., a specialist bearing manufacturer, and a large US wind turbine manufacturer. These two teams will collaborate to produce and test Gyrometric's monitoring technology for use in very large wind turbine bearings.

The Company also has several portfolio investments that are smaller scale legacy investments for which we continue to seek exits where appropriate.

Outlook

We have implemented efficiencies and continued to cut costs, including Board fees resulting in annual fixed costs being reduced by around 20%. Work will continue to improve the value of our investments and to seek opportunities for enhancing shareholder value.

Trevor Brown

Chief Executive Officer

15th October 2024

Condensed consolidated statement of COMPREHENSIVE INCOME

for the six months ended 30 September 2024

Adjustments to reconcile profit before tax to net cash flows from operating activities

NOTES TO THE INTERIM FINANCIAL STATEMENTS

1 Basis of preparation

The financial information presented in this half-yearly report constitutes the condensed consolidated financial statements (the interim financial statements) of Braveheart Investment Group plc ("Braveheart" or "the Company"), a company incorporated in the United Kingdom and registered in Scotland, and its subsidiaries (together, "the Group") for the six months ended 30 September 2024. The interim financial statements should be read in conjunction with the Annual Report and Accounts for the year ended 31 March 2024 and have been prepared in accordance with UK-adopted international accounting standards in accordance with the requirements of the Companies Act 2006. The financial information in this half-yearly report, which was approved by the Board and authorised for issue on 15 October 2024 is unaudited.

Going Concern

• New and amended standards adopted by the Group
• New accounting policies adopted by the Group

2 (Loss)/Earnings per share

• Level 1 - valued using quoted prices in active markets for identical assets;
• The fair values of quoted investments are based on bid prices in an active market at the reporting date. All unquoted investments have been classified as Level 3 within the fair value hierarchy, their respective valuations having been calculated using a number of valuation techniques and assumptions, notwithstanding that the basis of the valuation methodology used most commonly by the Group is 'price of most recent investment'. When using the DCF valuation method, reasonably possible alternative assumptions could have a material effect on the fair valuation of investments. The impact on the fair value of investments if the discount rate and provision shift by 1% is £23,496 (2023: £88,415).

4 Share capital

5 Subsequent Events

On 11th October 2024, the company announced that it had acquired 65,415,862 ordinary shares in IQ-AI Limited, representing 29.51% of the issued share capital, for a total consideration of £719,574. 45,761,083 shares in IQ-AI were purchased from Trevor Brown, CEO of Braveheart, at a price of 1.1 pence per share, for a consideration of £503,371.91. A further 19,654,779 shares in IQ-AI Shares were purchased from Free Association Books Limited ("FAB"), a company owned by the children of Trevor Brown, also at a price of 1.1p per IQ-AI share for a consideration of £216,202.57.

6 Availability of Interim Results

Shareholder communications

A copy of this report is available on request from the Company's registered office: 1 George Square, Glasgow, G2 1AL. A copy has also been posted on the Company's website: www.braveheartinvestmentgroup.co.uk.