We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Amati Vct | LSE:ATI | London | Ordinary Share | GB00B05N8X20 | ORD 10P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 96.75 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMATI
RNS Number : 5496T
Amati VCT PLC
13 October 2017
Amati VCT plc
HALF-YEARLY REPORT
For the six months ended 31 August 2017
Amati VCT plc announces that its 2017 Half-Yearly Report has been published. The full report will be made available on the National Storage Mechanism website: http://www.morningstar.co.uk/uk/NSM and can be accessed via the Company's website at www.amatiglobal.com/avct_literature.php. It will be circulated to shareholders shortly.
Page numbers and cross-references in this announcement below refer to page numbers and cross-references in the PDF of the Half-yearly Report.
CONTENTS
Overview 1 Chairman's Statement 4 Fund Manager's Review 7 Investment Portfolio 12 Principal Risks and Uncertainties 15 Statement of Directors' Responsibilities 15 Income Statement 16 Statement of Changes in Equity 18 Condensed Balance Sheet 22 Statement of Cash Flows 23 Notes to the Financial Statements 24 Shareholder Information 29 Corporate Information 30 Contact Details 32
OVERVIEW
Corporate objective
The investment objectives of Amati VCT plc (the "Company") are to generate tax free capital gains and regular dividend income for its shareholders, primarily through Qualifying Investments in AIM-traded companies and through non-qualifying investments as allowed by the VCT legislation. The Company will manage its portfolio to comply with the requirements of the rules and regulations applicable to VCTs from time to time. The Company's policy is to hold a diversified portfolio across a broad range of sectors to mitigate risk.
Key data
6 months 6 months ended ended Year ended 31/08/17 31/08/16 28/02/17 (unaudited) (unaudited) (audited) ----------------------------- ------------ ------------ ------------- Net Asset Value ("NAV") GBP57.3m GBP39.9m GBP44.7m NAV per share 94.6p 69.6p 75.4p Share price 86.3p 66.3p 70.8p Market capitalisation GBP52.2m GBP38.0m GBP42.0m Share price discount to NAV 8.8% 4.7% 6.1% NAV Total Return (assuming re-invested dividends) 29.3% 10.7% 22.6% Numis Alternative Markets Total Return Index 13.2% 14.9% 31.8% Ongoing charges* 2.4% 2.5% 2.5% Dividends in respect of the period 2.0p 1.5p 4.0p ----------------------------- *Ongoing charges calculated in accordance with the Association of Investment Companies ("AIC") guidance.
Table of investor returns to 31 August 2017 from a sample of share issues
NAV NAV Total Total Return Return excluding including full Price subscription subscription gross Price Price gross costs costs and of net of after and Date costs costs tax rebate# tax rebate tax rebate# ------------ ------- -------- ------------ ------------- -------------- Initial Offer 100.0p 94.8p 60.0p 100.4% 216.5% 4 January 2006 111.2p 105.4p 66.7p 81.8% 187.1% 4 April 2006 123.5p 117.0p 74.1p 62.3% 156.3% 21 March 2007 133.0p 130.3p 93.1p 42.9% 100.1% 4 April 2008 96.5p 91.7p 67.6p 83.4% 148.9% 6 October 2008 79.6p 75.7p 55.7p 122.4% 201.9% 17 October 2008** 67.4p 67.4p 67.4p 149.3% 149.3% 3 April 2009 54.5p 51.8p 38.2p 217.7% 331.2% 3 April 2010 79.2p 75.2p 55.4p 106.9% 180.9% 5 April 2011 93.2p 88.1p 65.2p 66.9% 125.3% 5 April 2012 81.8p 77.7p 57.3p 77.5% 140.9% 5 April 2013 72.6p 69.0p 50.8p 86.3% 152.8% 4 April 2014 85.8p 81.5p 60.0p 47.1% 99.6% 2 April 2015 71.6p 70.8p 50.1p 58.5% 124.1% 5 April 2016 68.3p 67.6p 47.8p 54.5% 118.5% 5 April 2017 77.8p 77.0p 54.5p 26.6% 79.0% ------------ ------- -------- ------------ ------------- --------------
# assumes full recovery of tax relief (y/e 5 April 2006 - 40%; subsequent years - 30%).
**shares issued to Noble Income & Growth VCT plc shareholders as a result of the asset acquisition.
Table of returns
to 31 August 2017 from shares issued under the Dividend Reinvestment Scheme
NAV NAV Total Total Return Return excluding including full subscription subscription Price gross costs costs after and and Date Price* tax rebate# tax rebate tax rebate# ------------------ ------- ------------ ------------- ------------- 4 July 2007 135.1p 94.6p 32.3% 89.0% 7 December 2007 111.3p 77.9p 57.8% 125.4% 15 February 2008 94.3p 66.0p 78.4% 154.9% 5 December 2008 58.0p 40.6p 183.8% 305.5% 17 August 2009 61.1p 42.7p 160.5% 272.2% 11 December 2009 68.6p 48.0p 127.0% 224.3% 13 August 2010 73.3p 51.3p 105.1% 193.1% 10 December 2010 85.1p 59.6p 72.5% 146.4% 12 August 2011 74.3p 52.0p 90.8% 172.6% 13 February 2012 74.4p 52.1p 85.4% 164.9% 14 August 2012 67.9p 47.5p 94.9% 178.4% 7 December 2012 66.9p 46.8p 92.1% 174.5% 12 August 2013 69.5p 48.7p 77.1% 152.9% 6 December 2013 71.6p 50.2p 67.3% 138.9% 15 August 2014 75.9p 53.1p 52.0% 117.1% 5 December 2014 71.0p 49.7p 58.0% 125.7% 14 August 2015 70.6p 49.4p 52.4% 117.7% 11 December 2015 69.9p 48.6p 49.4% 113.5% 12 August 2016 68.2p 47.8p 46.1% 108.7% 16 December 2016 68.7p 48.1p 41.8% 102.5% ------------------ ------- ------------ ------------- -------------
*shares allotted under the Dividend Reinvestment Scheme are issued without cost.
#assumes full recovery of tax relief at 30%.
CHAIRMAN'S STATEMENT
Overview
The first six months of the year saw a return of more than 29% and was the strongest in the history of Amati VCT, with the exception of the first half of 2009 when the market was bouncing very strongly off its post-crisis lows. On this occasion the performance reflects the fact that a significant number of the largest holdings in the portfolio have reported good results and reached new highs during the period.
The investment strategy of the Company has been simplified and focused over recent years and this has underpinned these strong results. The Manager seeks to identify the best of the next generation of AIM companies, to provide those companies with valuable early stage capital and to support them as long-term shareholders. It takes time to build up a portfolio of successful and dynamic businesses which have grown out of the seeds which the Amati VCTs have helped to nurture. As companies' earnings grow and this is mirrored in their stock market valuations, the portfolio evolves and becomes more biased towards the most successful companies, as those which have grown the fastest in value become the largest holdings. Over the last few years the concentration of the portfolio in the top ten qualifying holdings has been increasing, and this process has accelerated over the last six months. A good way of illustrating this is by the following chart which has been included for the first time in this report.
Amati VCT Qualifying Portfolio
The bubble chart is created based on the market capitalisation of the individual security (the Y axis), the year purchased by Amati VCT plc (the X axis) and the weight held in the portfolio, shown by the size of the bubble. This allows a three dimensional view of the portfolio, its largest holdings and best performers.
The ten largest Qualifying Investments are now all capitalised at more than GBP100m, with three capitalised at over GBP400m. The unweighted average term of these investments is now around six years, and the unweighted average returns from these ten investments, based on our investment price (blended across more than one round where we made follow-on investments), is 678% as at the period end. These companies represent over 50% of the value of the portfolio and provide an exceptionally strong set of core holdings.
The Manager is seeing a number of new opportunities for Qualifying Investments and expects to be able to make a steady stream of further investments. During the period under review a total of GBP3.2m was invested in Qualifying Investments, five of which were in new holdings, details of which are given in the Manager's Review which follows.
Investment Performance and Dividend
The NAV Total Return for the six month period was 29.3%, which compares to a rise of 13.2% for the Numis Alternative Markets Total Return Index. Detailed comments on the performance are given in the Manager's Review.
The dividend policy of the Company is to pay between five and six percent of year-end net asset value, subject to the availability of liquidity and sufficient distributable reserves. In line with this the Board is declaring an interim dividend of 2.0p per share, to be paid on 8 December 2017 to shareholders on the register on 3 November 2017.
Other Corporate Developments
A series of joint top up Share Issues with Amati VCT 2 was launched in October 2016, and was fully subscribed before the closing date, raising a total of GBP8.3m of which GBP4.1m was subscribed for shares in Amati VCT.
The Company was 84% invested in qualifying holdings at the period end, according to the tests required by the VCT legislation. At the time of the AGM, the Board announced that it intends to launch a larger fund raising this year in the form of a Joint Prospectus Offer with Amati VCT 2, raising up to GBP10m for each company. At the same time, the boards of both companies also announced that they consider a merger of the two companies would be in the best interests of shareholders. The merger process has been held up by a particular aspect of the VCT legislation which could have proven detrimental to some of our shareholders. We have received assurances from HMRC that this was not an intended consequence of the legislation and both boards expect to be able to proceed with a merger once this area of the legislation has been satisfactorily clarified, with the issue of a Supplementary Prospectus and Shareholder Circulars. Assuming the merger can proceed as planned, it will create a combined VCT capitalised at over GBP100m (at the time of writing) and the ongoing expenses ratio will be less than the two VCTs have as separate entities.
The External Environment
AIM, which began in 1995, has been coming of age over recent years, supported as it is by a number of tax incentivised elements, of which VCTs are but one. There is debate about whether these and other tax incentives to support early stage businesses are good value for money for the tax payer. Recently, a broad range of questions have been posed by the consultation paper "Financing Growth in Innovative Firms" published by HM Treasury in August. We believe that AIM-focused VCTs play an important role in providing capital to some of the most innovative firms in the UK at a time when other sources of finance are limited, and that the Company's portfolio bears this out.
Outlook
It is always important to remain realistic about expectations following periods of very strong performance. Markets have a tendency to retrace after periods of above average returns. However, the tangible progress being made by many of our portfolio companies has been impressive and creates a strong platform for continued growth, even in tougher times. The Manager expects to see a healthy level of attractive new investment opportunities and a successful fund raising will enable the Company to take full advantage of these as and when they arise. After the Budget next month, we may have a clearer picture of the future landscape for VCTs following our Offer, which I hope will be fully subscribed.
Peter Lawrence
Chairman
13 October 2017
For any matters relating to your shareholding in the Company, dividend payments or the Dividend Reinvestment Scheme please contact Share Registrars on 01252 821390, or by email at enquiries@shareregistrars.uk.com. For any other matters please contact Amati Global Investors ("Amati") on 0131 503 9115 or by email at vct-enquiries@amatiglobal.com. Amati maintains an informative website for the Company - www.amatiglobal.com - on which monthly investment updates, performance information and past company reports can be found.
FUND MANAGER'S REVIEW
Market review
As is almost becoming the norm, a volatile political backdrop dominated the six months under review. Whether it was the US administration's apparent floundering over policy objectives and chronic instability, combined with an increased military assertiveness overseas, or the astonishing scale of the potential for bad debts in the Chinese banking system or an ill-judged snap UK General Election causing UK market jitters, there was no shortage of talking points for those seeking to form a top down view. The tragic conflicts in Syria and the Yemen rumble on with no apparent end in sight, reminders of the dysfunction which has grown up in international relations with the return of proxy wars and battle for spheres of influence. It would be reasonable to expect that such a backdrop would translate into elevated risk and volatility. However, the market's main volatility gauge, the CBOE Volatility Index (the "VIX"), remained stubbornly low, only breaching the 15% level on four occasions. For reference, the VIX surpassed 40% in January 2009, shortly before the global financial crisis reached its nadir, and again in January 2011 when the Eurozone debt crisis reached a peak and long-term interest rates spiked in Greece and other peripheral states. There are various explanations for this benign volatility, the most plausible in our view being that continued accommodative monetary policies by the Federal Reserve and European Central Bank have thus far been more important for the direction of markets than the political dislocations which dominate the headlines.
In the UK, AIM, small and mid-cap indices all outperformed the top 100 index. AIM was especially strong, with its fortunes dominated by superstar stocks such as Fever-Tree and Boohoo but increasingly by the next generation of AIM stars, of which a number are also held by the Company.
Performance
The VCT's NAV Total Return for the six month period was 29.3%. This compares to the Numis Alternative Markets Total Return over the same period of 13.2%. The only losing month during the period was June, when the surprise loss of the Conservative party's parliamentary majority spooked markets. These losses were swiftly reversed in July.
The greatest contributor to performance over the six months under review was Frontier Developments ("Frontier"), gaining 285% over the period. Frontier is attracting a wider investor audience as it launches its own new video games franchises. The period under review witnessed the release of Frontier's original title, Elite: Dangerous, on PlayStation 4; the news that Planet Coaster, its second title, had surpassed the sale of one million units; and the announcement that its third franchise will be Jurassic World Evolution, based on Universal Pictures' Jurassic World, one of the biggest blockbusters in cinema history. The latter announcement is a major endorsement for a UK video games publisher and Frontier's appeal was recently recognised by Tencent, a leading Chinese internet and interactive entertainment company, which has acquired a 9.9% stake in the business through an investment of GBP17.7m in the company. Another player in the video games industry, Keywords Studios ("Keywords"), was the second most significant contributor to performance, its shares rising 129%. Keywords provides technical services to the video games industry and continued its acquisition strategy, acquiring four businesses, which all fit the template of expanding the group's geographical coverage and service lines. The most eye-catching of these recent acquisitions were a software development business and a video games content management software provider, both giving Keywords entirely new services to offer their customer base. Keywords finds itself in an enviable position: its market remains highly fragmented yet customers wish to deal with fewer vendors. By continuing to consolidate its industry it can present itself to video games publishers as a one-stop solution for all video games support services. The market for outsourced video games services continues to demonstrate healthy levels of growth which, when combined with earnings enhancing acquisitions, provide a powerful catalyst for shareholder returns. Tristel, the manufacturer of infection control and contamination control products, gained 79%. There were two principal catalysts for this movement: the first was its move into the US and the submission for regulatory clearance by the Environmental Protection Agency of its Duo chlorine dioxide disinfectant foam; the second was a trading update announcing that revenues and profits for the year to June 2017 would be ahead of expectations. The TB Amati UK Smaller Companies Fund generated a return of 16% over the six months under review after another period of strong performance, both relative to its benchmark index (the Numis Smaller Companies Index) and its peer group (IA UK Smaller Companies). Quixant, the designer of computer systems for casino gaming machines, continued its progress and this was rewarded by a 20% rise in its share price. Quixant experienced stronger than anticipated trading in the first half of 2017 in both its core gaming division and Densitron, the acquisition that
completed in 2015. Premier Technical Services Group, the provider of access and safety services, gained 68% as the market responded positively to new contract wins across all of its disciplines, including a number of framework agreements with new and existing customers and a high level of existing contract renewals. Other notable contributors included Faron Pharmaceuticals ("Faron"), a pharmaceutical company focused on the treatment of Acute Respiratory Distress Syndrome, which gained 97% over the period ahead of the announcement of Phase III trial data which is expected over the next few months; GB Group, the supplier of identity verification software; and Hardide, the industrial surface coatings company.
The most significant detractor from performance was Idox, the provider of document management software applications to local authorities and the engineering sector, which fell 16% over the period. Idox released figures that were in-line with expectations but this did not stop 'profit taking' by investors after a strong share price performance in the lead-up to the results. Science in Sport ("SiS") also succumbed to share price weakness with a fall of 14% over the six months. SiS announced a continuation of impressive organic growth through sales of their sports nutrition products to professional athletes and the burgeoning number of 'weekend warriors' participating in endurance events. FreeAgent Holdings ("FreeAgent"), the provider of accounting software to small businesses and freelancers, fell 26% over the period. Like Idox and SiS, FreeAgent had enjoyed a period of strong performance prior to this and we believe the company will continue to benefit from the structural growth in the UK 'micro-business' market as well as HMRC's Making Tax Digital agenda, which will encourage more small businesses to adopt software for the management of their accounting.
Portfolio activity
Qualifying portfolio
The Company made eight significant Qualifying Investments during the period.
Faron, a company that we initially funded in September 2016, returned for follow-on finance in March. The original fundraise was to continue the development of its lead product, Traumakine, which treats Acute Respiratory Distress Syndrome; the more recent raise allows the expansion of pre-clinical and early-stage clinical development of Clevegen, Faron's second product, as well as strengthening the balance sheet in advance of negotiations with potential partners for Traumakine. We were encouraged to follow our investment in Faron by Traumakine's successful progress through its data monitoring stages as well as the potential of Clevegen which, although some way behind Traumakine in its development pipeline, is showing potential in an important area of cancer therapy (the prevention of inflammation and cancer spread). Towards the end of the period we also took some profits from our holding, following a dramatic rise in the share price which had increased the position size significantly. We also made a follow-on investment in Rosslyn Data Technologies ("Rosslyn"). The Company's initial position in Rosslyn was acquired shortly before its IPO in 2014. Rosslyn has a technology platform that gives businesses the ability to ingest structured data from a wide variety of systems and sources then present this data in software where it can be used to inform management decisions. Rosslyn failed to meet the expectations that were set at its IPO and could not capitalise on partnerships with key systems integrators, including two of the 'Big 4' global professional services firms. The original investment performed poorly but we were persuaded to revisit the investment case due to the acquisition of a business called Integritie, which improves Rosslyn's technology proposition by enabling the analysis of unstructured, as well as structured, customer data. The combined business should benefit from cross-selling opportunities across the enlarged customer base. The final follow-on investment was completed in FairFX Group ("FairFX"), as part of a target funding round to acquire the holding company of CardOneBanking, one of three agency banks in the UK, as well as for further investment into developing FairFX's corporate card business. The combination of the two businesses will allow FairFX to expand the range of services it offers to its customers by integrating CardOneBanking's agency banking tools into its core proposition and should facilitate improved buying terms with MasterCard, their payment processor.
The Company acquired a new position in MaxCyte, a medical devices company with a proprietary technology known as 'flow electroporation', as well as its own pipeline of early stage drugs. Flow electroporation is a technique which uses electrical charges to allow particular molecules to cross a cell membrane without causing damage. MaxCyte owns the intellectual property to the only pharmaceutical grade machine for performing this technique, and it is becoming widely used in the burgeoning field of cell therapy. A new position was also acquired in Byotrol, a developer of antimicrobial technologies and products. Byotrol has been listed on AIM since 2005 and has been a perennial underperformer against expectations, a legacy that is reflected in its share price chart. However, a new management team has been turning the business around and recently secured FDA (the US Food and Drug Administration) approval for an important claim over the efficacy of their chemistry, which provides an exciting growth opportunity in the US. Alongside this opportunity, Byotrol recently acquired a business that gives them direct access to supply the NHS with its alcohol free hand sanitizers, which reduce the skin irritation which occurs following the use of competitor, alcohol-based products.
Escape Hunt was the first of three IPOs in which the Company participated during the period. Escape Hunt specialises in 'escape games', a leisure concept that is growing rapidly in popularity. The concept involves a group of friends, family or work colleagues participating in a problem solving game in order to escape from a themed room. The game is controlled remotely by a 'games master' who influences the cadence of the event by revealing clues. Escape Hunt came to AIM to raise capital to evolve from a franchise only model to a site ownership model, building out its own locations to capture the attractive returns that are generated on these sites. The incoming CEO has excellent 'roll-out' experience having been Global Head of Strategy at Pret A Manger and Managing Director at Harris + Hoole, the chain of upmarket coffee shops. The Company also acquired a position in Velocity Composites ("Velocity") as part of its AIM IPO. Velocity produces kits of composite materials for supply to aerospace component manufacturers such as BAE, Meggitt and GKN. This is an element of the supply chain that the manufacturers are keen to outsource to reduce their capital spend and increase floor space at their facilities as well as to drive improved productivity, quality control and materials traceability. Composite materials now account for over 50% of widebody (twin aisle) and 20% of narrow body (single aisle) aircraft and composite usage is expected to increase alongside a predicted doubling of aircraft numbers over the next twenty years. The third IPO in which the Company participated was the listing of appScatter Group ("appScatter"), which provides businesses with a software platform for managing their mobile apps across multiple app stores. The platform allows app developers and publishers the ability to manage and track compliance of their own apps and competing apps. appScatter charges customers a flexible monthly fee based on the numbers of users and the number of apps managed on the platform and has already built up an impressive list of clients.
Kalibrate Technologies, the provider of software, data and support services to the fuel retail industry, was sold during the period, having been the subject of a successful takeover approach by a private equity buyer. We also used the strength of Frontier and Keywords during the period to take some profits and maintain the Company's exposure at sensible levels; however, both holdings remain significant positions in the portfolio.
Non-qualifying portfolio
Hiscox, the FTSE 250 listed commercial and personal insurance business, was sold in order to raise cash to fund the Qualifying Investment activity described above.
Outlook
The strategy that has been adopted of concentrating the portfolio in our more mature, cash generative businesses by 'running our winners' has played out to the extent that, at the half year end date, the top ten positions in the Company (including the TB Amati UK Smaller Companies Fund) accounted for 58.9% of the total net asset value. Far from causing us any anxiety, we are reassured by the fact that we consider these businesses amongst the highest quality investments in the portfolio and we are optimistic about the future prospects for these companies. Whilst some of these names have experienced extraordinary share price gains lately, our belief is that these are companies that can continue to deliver exceptional levels of revenue and profit growth. This strong core to the portfolio also gives us the flexibility to invest in attractive new qualifying opportunities and we have been pleased to see a return of good quality 'dealflow', reflected in the accelerated rate of investments completed relative to the prior period. Whilst we cannot predict the direction of the markets, and are aware that the UK in particular faces many challenges over the next few years particularly arising from Brexit, we remain optimistic about the underlying prospects of the businesses in your Company's portfolio.
Dr Paul Jourdan, Douglas Lawson and David Stevenson
Amati Global Investors Limited
13 October 2017
INVESTMENT PORTFOLIO
as at 31 August 2017
Market Dividend Cost Valuation Cap Yield Fund (4) GBP'000 GBP'000 GBPm Sector Status % % ----------------------- -------- ------------ ----------- ------------ -------------- --------- ------- TB Amati UK Smaller Companies Fund(3) 3,310 5,538 - Financials OEIC 1.5 9.7 Frontier Developments Consumer plc(2,3) 488 4,965 407.8 Goods AIM - 8.7 Keywords Studios plc(2,3) 406 4,696 796.1 Industrials AIM 0.1 8.2 Quixant plc(2,3) 418 3,872 281.4 Technology AIM 0.7 6.8 Health Tristel plc(2,3) 543 2,993 132.7 care AIM 1.4 5.2 Craneware plc(2) 298 2,758 346.2 Technology AIM 1.4 4.8 Ideagen plc(2,3) 565 2,294 179.9 Technology AIM 0.3 4.0 Idox plc(1,3) 299 2,287 247.5 Technology AIM 2.0 4.0 GB Group plc(2,3) 237 2,261 586.5 Technology AIM 0.7 3.9 AB Dynamics plc(2,3) 304 2,054 111.2 Industrials AIM 1.3 3.6 ----------------------- ------- Top Ten 6,868 33,718 58.9 ----------------------- -------- ------------ ----------- ------------ -------------- --------- ------- Learning Technologies Group plc(1,3) 871 1,969 270.2 Industrials AIM 0.6 3.4 Premier Technical Services Group plc(2,3) 473 1,531 175.0 Industrials AIM 1.0 2.7 Sprue Aegis plc(1,3) 106 1,299 95.0 Industrials AIM 4.7 2.3 Basic Hardide plc(1,3) 373 1,287 24.2 Materials AIM - 2.2 Science in Consumer Sport plc(2,3) 811 1,281 36.6 Goods AIM - 2.2 Health Anpario plc(2,3) 277 1,227 81.9 care AIM 1.8 2.1 Faron Pharmaceuticals Health Oy(1,3) 342 911 195.3 care AIM - 1.6 LoopUp Group plc(1,3) 490 888 74.3 Technology AIM - 1.6 Universe Group plc(1,3) 215 877 21.8 Industrials AIM - 1.5 Bilby plc(2,3) 676 685 23.4 Industrials AIM 4.6 1.2 ----------------------- -------- ------------ ----------- ------------ -------------- --------- ------- Top Twenty 11,502 45,673 79.7 ----------------------- -------- ------------ ----------- ------------ -------------- --------- ------- SRT Marine Systems plc(1,3) 709 673 44.1 Technology AIM - 1.2 Rosslyn Data Technologies plc(1,3) 818 632 11.0 Technology AIM - 1.1 Fox Marble Holdings plc Ordinary shares & 8% Convertible Basic Loan Note(1,3) 719 622 15.4 Materials AIM/Unquoted - 1.1 appScatter Group plc(1,3) 617 617 46.1 Technology AIM - 1.1 FairFX Group plc(1,3) 408 572 114.6 Financials AIM - 1.0 Water Intelligence plc(2,3) 181 544 15.6 Industrials AIM - 0.9 Velocity Composites plc(1,3) 507 527 31.6 Industrials AIM 1.2 0.9 Solid State plc(2,3) 258 520 41.2 Industrials AIM 2.6 0.9 Basic Byotrol plc(1,3) 511 512 11.2 Materials AIM - 0.9 Belvoir Lettings plc(1,3) 404 460 37.3 Financials AIM 6.5 0.8 Escape Hunt Consumer plc(1,3) 422 455 29.5 Services AIM - 0.8 Brady plc(2) 331 445 57.3 Technology AIM - 0.8 FreeAgent Holdings plc(1,3) 389 422 37.2 Technology AIM - 0.7 Health MaxCyte Inc(1,3) 449 404 18.0 care AIM - 0.7 MirriAd Advertising Limited(1,3) 524 306 35.9 Technology Unquoted - 0.5 EU Supply plc(1,3) 351 299 13.0 Technology AIM - 0.5 Property Franchise Group plc (The)(2,3) 155 212 35.4 Financials AIM 5.1 0.4 Crawshaw Group Consumer plc(2,3) 432 211 23.2 Services AIM - 0.4 Brighton Pier Group plc (The) Consumer (1,3) 314 211 34.1 Services AIM - 0.4 MyCelx Technologies Oil & Corporation(1,3) 440 209 8.4 Gas AIM - 0.4 Venn Life Sciences Health Holdings plc(1,3) 311 209 8.9 care AIM - 0.4 Health Genedrive plc(1,3) 326 140 6.4 care AIM - 0.2 Oil & Ilika plc(1,3) 208 118 25.4 Gas AIM - 0.2 Sabien Technology Group plc(2,3) 729 112 1.7 Industrials AIM - 0.2 Consumer Mirada plc(13) 483 50 1.5 Services AIM - 0.1 Microsaic Systems plc(1,3) 423 37 3.2 Industrials AIM - 0.1 Nujira Limited(1,3) 127 8 - Technology Unquoted - - Investments held at nil value 5,192 - - - - - Total investments 28,240 55,200 96.4 ----------------------- -------- ------------ ----------- ------------ -------------- --------- ------- Net current assets 2,082 3.6 ----------------------- -------- ------------ ----------- ------------ -------------- --------- ------- Net assets 28,240 57,282 100.0 ----------------------- -------- ------------ ----------- ------------ -------------- --------- ------- (1) Qualifying holdings. (2) Part qualifying holdings. (3) These investments are also held by other funds managed by Amati. (4) Next Twelve Months Consensus Estimates (Source: FactSet and Fidessa).
The Manager rebates the management fee of 0.75% on the TB Amati UK Smaller Companies Fund and this is included in the yield.
All holdings are in ordinary shares unless otherwise stated.
appScatter plc not listed as at 31 August 2017. Market capitalisation is as at 5 September 2017 (date of market listing).
Byotrol plc market capitalisation excludes placing shares pending listing on 5 September 2017.
Investments held at nil value: China Food Company plc(3) ; Invocas Group plc(1) ; Polyhedra Group plc(1,3) , Rame Energy plc(1,3) , Rated People Limited(1,3) Rivington Street Holdings plc, Sorbic International plc(3) , TCOM Limited(1,3) , TMO Renewables Limited(2) , Vicorp Group plc, Vitec Global Limited(1) .
As at the period end, the percentage of the Company's assets raised from all share issues held in qualifying holdings for the purposes of Section 274 of the Income and Corporation Taxes Act 2007 is 84.39%.
PRINCIPAL RISKS AND UNCERTAINTIES
The Company's assets consist of equity and fixed interest investments, cash and liquid resources. Its principal risks include market risk, credit risk and liquidity risk. Other risks faced by the Company include compliance and internal controls, economic, investment and strategic, regulatory, reputational, operational and financial risks as well as the potential for loss of approval as a VCT. These risks, and the way in which they are managed, are described in more detail under the heading Other Matters within the Strategic Report in the Company's Annual Report and Accounts for the year ended 28 February 2017. The Company's principal risks and uncertainties have not changed materially since the date of that report.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
in respect of the half-yearly financial report
We confirm that to the best of our knowledge:
-- the condensed set of financial statements which has been prepared in accordance with FRS 104 "Interim Financial Reporting" gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;
-- the Chairman's Statement and Fund Manager's Review (constituting the interim management report) include a true and fair review of the information required by DTR4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements;
-- the Statement of Principal Risks and Uncertainties above is a fair review of the information required by DTR4.2.7R, being a description of the principal risks and uncertainties for the remaining six months of the year; and
-- the financial statements include a fair review of the information required by DTR4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period and any changes in the related party transactions described in the last annual report that could do so.
For and on behalf of the Board
Peter Lawrence
Chairman
13 October 2017
INCOME STATEMENT
for the six months ended 31 August 2017
Six months ended Six months ended Year ended 31 August 2017 31 August 2016 28 February 2017 (unaudited) (unaudited) (audited) Revenue Capital Total Revenue Capital Total Revenue Capital Total Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ------------------- ----- -------- -------- -------- -------- -------- -------- -------- --------- --------- Gain on investments 11 - 13,434 13,434 - 3,939 3,939 - 8,370 8,370 Income 8 265 - 265 316 - 316 540 - 540 Investment management fees (115) (346) (461) (84) (251) (335) (170) (510) (680) Other expenses (146) - (146) (151) (2) (153) (306) (2) (308) Profit on ordinary activities before taxation 4 13,088 13,092 81 3,686 3,767 64 7,858 7,922 Taxation on 10 - - - - - - ordinary activities - - - Profit and total comprehensive income attributable to shareholders 4 13,088 13,092 81 3,686 3,767 64 7,858 7,922 Basic and diluted earnings per Ordinary share 6 0.01p 21.72p 21.73p 0.14p 6.49p 6.63p 0.11p 13.76p 13.87p ------------------- ----- -------- -------- -------- -------- -------- -------- -------- --------- ---------
The total column represents the profit and loss account of the Company in accordance with the Financial Reporting Standards ("FRS"). The supplementary revenue and capital columns have been prepared in accordance with The Association of Investment Companies' Statement of Recommended Practice: Financial Statements of Investment Trust Companies and Venture Capital Trusts ("AIC SORP"). There is no other comprehensive income other than the results for the period discussed above. Accordingly a statement of comprehensive income is not required.
The accompanying notes are an integral part of the statement.
All the items above derive from continuing operations.
STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 August 2017 (unaudited)
Non-distributable reserves Distributable reserves Called Capital Capital Capital up Share redemption reserve Special reserve Revenue Total share premium reserve (non-distributable) reserve (distributable) reserve reserves capital GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 --------------- -------- --------- ----------- -------------------- --------- ---------------- ---------- ---------- Opening balance as at 1 March 2017 5,930 16,717 1,108 15,780 13,480 (8,377) 64 44,702 Shares issued 273 1,927 - - - - - 2,200 Share issue expenses - (28) - - - - - (28) Repurchase of shares (147) - 147 - (1,129) - - (1,129) Cancellation of share premium and capital redemption reserves - (17,930) (1,156) - 19,086 - - - Legal fees paid - - - - (46) - - (46) Dividends paid - - - - (1,445) - (64) (1,509) Profit and total comprehensive income for the period - - - 11,195 - 1,893 4 13,092 Closing balance as at 31 August 2017 6,056 686 99 26,975 29,946 (6,484) 4 57,282 --------------- -------- --------- ----------- -------------------- --------- ---------------- ---------- ----------
For the six months ended 31 August 2016 (unaudited)
Non-distributable reserves Distributable reserves Called Capital Capital Capital up Share redemption reserve Special reserve Revenue Total share premium reserve (non-distributable) reserve (distributable) reserve reserves capital GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 --------------- -------- --------- ----------- -------------------- --------- ---------------- ---------- ---------- Opening balance as at 1 March 2016 5,580 12,884 816 7,047 17,564 (7,502) 405 36,794 Shares issued 306 1,778 - - - - - 2,084 Share issue expenses - (25) - - - - - (25) Repurchase of shares (155) - 155 - (1,007) - - (1,007) Dividends paid - - - - (1,302) - (405) (1,707) Profit and total comprehensive income for the period - - - 4,529 - (843) 81 3,767 Closing balance as at 31 August 2016 5,731 14,637 971 11,576 15,255 (8,345) 81 39,906 --------------- -------- --------- ----------- -------------------- --------- ---------------- ---------- ----------
STATEMENT OF CHANGES IN EQUITY
For the year ended 28 February 2017 (audited)
Non-distributable reserves Distributable reserves Called Capital Capital up Share redemption Capital reserve Special reserve Revenue Total share premium reserve (non-distributable) reserve (distributable) reserve reserves capital GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 --------------- -------- --------- ----------- --------------------- ---------- ---------------- --------- ---------- Opening balance as at 1 March 2016 5,580 12,884 816 7,047 17,564 (7,502) 405 36,794 Shares issued 642 3,889 - - - - - 4,531 Share issue expenses - (56) - - - - - (56) Repurchase of shares (292) - 292 - (1,914) - - (1,914) Other capital expenses - - - - (11) - - (11) Dividends paid - - - - (2,159) - (405) (2,564) Profit/(loss) and total comprehensive income for the year - - - 8,733 - (875) 64 7,922 Closing balance as at 28 February 2017 5,930 16,717 1,108 15,780 13,480 (8,377) 64 44,702 --------------- -------- --------- ----------- --------------------- ---------- ---------------- --------- ----------
The accompanying notes are an integral part of the statement.
CONDENSED BALANCE SHEET
as at 31 August 2017
31 August 31 August 28 February 2017 2016 2017 (unaudited) (unaudited) (audited) Note GBP'000 GBP'000 GBP'000 --------------------------------------- ----- ------------ ------------ ------------ Fixed assets Investments held at fair value 11 55,200 38,468 42,502 Current assets Debtors 34 73 990 Cash at bank 3,684 1,663 1,658 Total current assets 3,718 1,736 2,648 Current liabilities Creditors: amounts falling due within one year (1,636) (298) (448) Net current assets 2,082 1,438 2,200 Total assets less current liabilities 57,282 39,906 44,702 --------------------------------------- ----- ------------ ------------ ------------ Capital and reserves Called up share capital* 6,056 5,731 5,930 Share premium account* 686 14,637 16,717 Capital redemption reserve* 99 971 1,108 Capital reserve (non-distributable)* 26,975 11,576 15,780 Special reserve 29,946 15,255 13,480 Capital reserve (distributable) (6,484) (8,345) (8,377) Revenue reserve 4 81 64 Equity shareholders' funds 57,282 39,906 44,702 Net asset value per share 7 94.6p 69.6p 75.4p -------------------------------------- ----- ------------ ------------ ------------
* These reserves are not distributable.
The accompanying notes are an integral part of the statement.
For and on behalf of the Board
Peter Lawrence
Chairman
13 October 2017
STATEMENT OF CASH FLOWS
for the six months ended 31 August 2017
Six months Six months Year ended ended ended 31 August 31 August 28 February 2017 2016 2017 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 --------------------------------- ------------ ------------ ------------ Cash flows from operating activities Investment income received 266 366 634 Deposit interest received 2 6 10 Investment management fees (407) (323) (648) Other operating costs (154) (169) (311) Net cash outflow from operating activities (293) (120) (315) Cash flows from investing activities Purchase of investments (2,215) (1,617) (2,610) Net sale of liquidity funds - 54 54 Disposals of investments 3,998 644 2,065 Net cash inflow/(outflow) from financial investment 1,783 (919) (491) Net cash inflow/(outflow) before financing activities 1,490 (1,039) (806) Cash flows from financing activities Net proceeds of share issues 3,140 2,067 3,517 Net cost of share buybacks (1,041) (1,007) (1,822) Legal costs in respect of share reconstruction (42) - (11) Equity dividends paid (1,521) (1,707) (2,564) Net cash inflow/(outflow) from financing 536 (647) (880) Increase/(decrease) in cash 2,026 (1,686) (1,686) Reconciliation of net cash flow to movement in net cash Increase/(decrease) in cash during the period 2,026 (1,686) (1,686) Net cash at start of the period 1,658 3,351 3,351 Currency losses - (2) (7) Net cash at end of the period 3,684 1,663 1,658
The accompanying notes are an integral part of the statement.
NOTES TO THE FINANCIAL STATEMENTS
for the six months ended 31 August 2017
1. The Half-yearly Report covers the six months ended 31 August 2017. The Company applies FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the AIC SORP as adopted for its financial year ended 28 February 2017. The financial statements for the six months to 31 August 2017 have been prepared in accordance with FRS 104 'Interim Financial Reporting' and on the basis of the same accounting policies as set out in the Company's Annual Report and Financial Statements for the year ended 28 February 2017.
The comparative figures for the financial year ended 28 February 2017 have been extracted from the latest published audited Annual Report and Financial Statements. Those accounts have been reported on by the Company's auditor and lodged with the Registrar of Companies. The report of the auditor was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
2. The financial information set out in this report has not been audited and does not comprise full financial statements within the meaning of Section 434 of the Companies Act 2006. No statutory accounts in respect of any period after 28 February 2017 have been reported on by the Company's auditors or delivered to the Registrar of Companies.
3. Going concern
In accordance with FRC Guidance for directors on going concern and liquidity risk the directors are of the opinion that, at the time of approving the Half-yearly Report, the Company has adequate resources to continue in business for the foreseeable future. In reaching this conclusion the directors took into account the nature of the Company's business and Investment Policy, its risk management policies, the diversification of its portfolio, the cash holdings and the liquidity of non-qualifying investments. Thus the directors believe it is appropriate to continue to apply the going concern basis in preparing the financial statements.
4. Segmental reporting
The directors are of the opinion that the Company is engaged in a single segment of business, being investment business.
5. Copies of the Half-yearly Report are being made available to all shareholders. Copies can be obtained free of charge from Amati Global Investors by telephoning 0131 503 9115 or emailing vct-enquiries@amatiglobal.com.
6. The earnings per share is based on the profit on ordinary activities after taxation for the six months ended 31 August 2017 of GBP13,092,000 (six months ended 31 August 2016: GBP3,767,000, year ended 28 February 2017: GBP7,922,000) and the weighted average number of shares in issue during the period of 60,255,160 (31 August 2016: 56,786,006; 28 February 2017: 57,123,199).
7. The calculation of net asset value per share at 31 August 2017 is based on net assets of GBP57,282,000 (31 August 2016: GBP39,906,000; 28 February 2017: GBP44,702,000) divided by 60,562,435 (31 August 2016: 57,308,334; 28 February 2017: 59,297,428) shares in issue at the period end. 8. Income Six months Six months Year ended ended ended 31 August 31 August 28 February 2017 2016 2017 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 ----------------------------- ------------ ------------ ------------ Income: Dividends from UK companies 226 256 413 Dividends from overseas companies 9 27 27 UK loan stock interest 28 25 90 Interest from deposits 2 8 10 265 316 540 ----------------------------- ------------ ------------ ------------ 9. Dividends Paid Six months Six months Year ended ended ended 31 August 31 August 28 February 2017 (unaudited) 2016 (unaudited) 2017 (audited) GBP'000 GBP'000 GBP'000 --------------------------------- ------------------ ------------------ ------------- Final dividend for the year ended 29 February 2016 of 3.0p per Ordinary share - paid on 12 August 2016 - 1,707 1,707 --------------------------------- ------------------ ------------------ ------------- Interim dividend for the year ended 28 February 2017 of 1.5p per Ordinary share - paid on 16 December 2016 - - 857 --------------------------------- ------------------ ------------------ ------------- Final dividend for the year ended 28 February 2017 of 2.5p 1,509 - - per Ordinary share - paid on 11 August 2017 --------------------------------- ------------------ ------------------ ------------- 1,509 1,707 2,564 --------------------------------- ------------------ ------------------ ------------- 10. Tax
The effective rate of tax for the six months ended 31 August 2017 is nil (2016: nil).
11. Investments
In order to provide further information on the valuation techniques used to measure assets carried at fair value, the measurement basis has been categorised into a "fair value hierarchy" as follows:
- Quoted market prices in active markets - "Level 1"
Inputs to Level 1 fair values are quoted prices in active markets. An active market is one in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. The Company's investments classified within this category are AIM-traded companies and fully listed companies.
- Valued using models with significant observable market parameters - "Level 2"
Inputs to Level 2 fair values are inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly.
- A valuation technique; - "Level 3"
Fair value is measured using a valuation technique that is based on data which are not observable.
Following the update to FRS 102, for periods starting after 1 January 2017 the Company will disclose the fair value hierarchy based upon Levels 1, 2 and 3 rather than a, b, c i) and c ii). Levels c i) and c ii) as disclosed in prior periods are now shown within Level 3.
Level Level 1 3 -------- Traded Unquoted on AIM investments Total GBP'000 GBP'000 GBP'000 ---------------------------------------------------------------- -------- ------------ -------- Cost as at 1 March 2017 20,290 6,447 26,737 ---------------------------------------------------------------- -------- ------------ -------- Movements in the period: ---------------------------------------------------------------- -------- ------------ -------- Purchases 3,263 - 3,263 ---------------------------------------------------------------- -------- ------------ -------- Disposals - proceeds received (3,946) (53) (3,999) ---------------------------------------------------------------- -------- ------------ -------- * realised gain on disposal 1,633 - 1,633 ---------------------------------------------------------------- -------- ------------ -------- * realisation of revaluation movements from previous years 606 - 606 ---------------------------------------------------------------- -------- ------------ -------- Cost at 31 August 2017 21,846 6,394 28,240 ---------------------------------------------------------------- -------- ------------ -------- Unrealised gains/(losses) as at 1 March 2017 21,308 (5,543) 15,765 ---------------------------------------------------------------- -------- ------------ -------- Unrealised gains on investments during the period 11,796 5 11,801 ---------------------------------------------------------------- -------- ------------ -------- Realisation of revaluation movements from previous years (606) - (606) ---------------------------------------------------------------- -------- ------------ -------- Unrealised gains/(losses) as at 31 August 2017 32,498 (5,538) 26,960 ---------------------------------------------------------------- -------- ------------ -------- Valuation as at 31 August 2017 54,344 856 55,200 ---------------------------------------------------------------- -------- ------------ -------- Equity shares 54,344 315 54,659 ---------------------------------------------------------------- -------- ------------ -------- Loan stock - 541 541 ---------------------------------------------------------------- -------- ------------ -------- Total investments at valuation 54,344 856 55,200 ---------------------------------------------------------------- -------- ------------ -------- 12. Related Parties
The Company holds 344,509 shares in Anpario plc, an AIM traded company of which Peter Lawrence is non-executive chairman. Mr Lawrence and family hold 35,400 shares and his charitable trust holds 27,950 shares in Anpario plc.
The Company retains Amati Global Investors Limited as its Manager. The number of ordinary shares in the Company held by certain members of the management team of the Manager (all of which are held beneficially) are:
31 August 2017 shares held Paul Jourdan 290,466 Douglas Lawson 20,320 David Stevenson 14,134 ----------------- -------------
Related party transaction
Save as disclosed in this paragraph there is no conflict of interest between the Company, the duties of the directors, the duties of the directors of the Manager and their private interests and other duties.
SHAREHOLDER INFORMATION
Registrars account log in
You will now also be able to see details of your shareholding on Share Registrars' website (www.shareregistrars.uk.com). To set up a secure login for this you will need your Investor ID, which can be found on your share certificate. In addition, once set up, you can amend your address and bank mandate details and input a proxy vote for a Company meeting using this online service.
Dividends
Shareholders who wish to have future dividends reinvested in the Company's shares or wish to have dividends paid directly into their bank account rather than sent by cheque to their registered address should contact Share Registrars Limited on 01252 821390 or email enquiries@shareregistrars.uk.com.
Share Price
The Company's shares are listed on the London Stock Exchange. The bid price of the Company's shares can be found on Amati Global Investors' website: http://www.amatiglobal.com/avct.php
Net Asset Value per Share
The Company's net asset value per share as at 31 August 2017 was 94.6p. The Company normally announces its net asset value on a weekly basis. Net asset value per share information can be found on Amati Global Investors' website: http://www.amatiglobal.com/avct.php.
Financial Calendar
October 2017 Half-yearly Report for the six months ending 31 August 2017 to be circulated to shareholders
December 2017 Payment of interim dividend 28 February 2018 Year end May 2018 Announcement of final results for the year ending 28 February 2018 June 2018 Annual General Meeting
CORPORATE INFORMATION
Directors Registrar Peter Lawrence Share Registrars Limited Julia Henderson The Courtyard Charles Pinney 17 West Street Brian Scouler Farnham, Surrey GU9 7DR all of: Auditor 110 George Street KPMG LLP Edinburgh Saltire Court EH2 4LH 20 Castle Terrace Edinburgh EH1 2EG Secretary Custodian The City Partnership (UK) Jarvis Investment Management Limited Ltd 110 George Street 78 Mount Ephraim Edinburgh Tunbridge Wells EH2 4LH Kent TN4 8BS Fund Manager Solicitors Amati Global Investors Rooney Nimmo Limited 8 Walker Street 18 Charlotte Square Edinburgh Edinburgh EH3 7LA EH2 4DF VCT Tax Adviser Philip Hare & Associates LLP Suite C, First Floor 4-6 Staple Inn Holborn London WC1V 7QH
Contact Details
For enquiries relating to share certificates, share holdings, dividends or the DRIS, please contact:
Share Registrars Limited
on +44 (0)1252 821390
or email: enquiries@shareregistrars.uk.com
For enquiries relating to subscriptions and for general enquiries, please contact:
Amati Global Investors
on +44 (0)131 503 9115
or email: vct-enquiries@amatiglobal.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAPEDFDXXFEF
(END) Dow Jones Newswires
October 13, 2017 04:49 ET (08:49 GMT)
1 Year Amati Vct Chart |
1 Month Amati Vct Chart |
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions