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 |
---|---|---|---|---|---|
Down. 4 Dso Ord | LSE:DO1O | London | Ordinary Share | GB00B3L2G079 | DSO ORD 0.1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 2.505 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMDO1O Downing FOUR VCT plc (formerly Downing Structured Opportunities VCT 1 plc) Report & Accounts for the year ended 31 March 2016 FINANCIAL HIGHLIGHTS 31 March 31 March 2016 2015 pence pence DSO Ordinary Share pool Net asset value per DSO Ordinary Share - 53.8 Net asset value per DSO A Share - 0.1 Cumulative distributions 131.7 80.0 Adjusted for performance estimate - (7.0) Total Return per DSO Ordinary Share and DSO A Share 131.7 126.9 DSO B Share pool Net asset value per DSO B Share 17.6 70.2 Net asset value per DSO C Share 0.1 0.1 Cumulative distributions 91.5 32.5 Adjusted for performance estimate (4.8) (2.8) Total return per DSO B Share and DSO C Share 104.4 * 100.0 DSO D Share pool Net asset value per DSO D Share 75.6 80.7 Cumulative distributions 20.0 15.0 Total return per DSO D Share 95.6 95.7 31 Jan 2015 pence DP67 Share pool Net asset value per DP67 Share 60.4 63.6 Cumulative distributions (since original launch) 23.8 17.8 Total return per DP67 Share 84.2 81.4 30 Nov 2014 Pence DP2011 General Share pool Net asset value per DP2011 General Ordinary Share 75.1 75.8 Net asset value per DP2011 General A Share 5.9 6.0 Cumulative distributions (since original launch) 22.5 17.5 Total return per DP2011 General Ordinary Share and DP2011 General A Share 103.5 99.3 DP2011 Structured Share pool Net asset value per DP2011 Structured Ordinary Share 77.1 78.2 Net asset value per DP2011 Structured A Share 6.1 6.2 Cumulative distributions (since original launch) 22.5 17.5 Total return per DP2011 Structured Ordinary Share and DP2011 Structured A Share 105.7 101.9 DP2011 Low Carbon Share pool Net asset value per DP2011 Low Carbon Share** 41.6 88.9 Cumulative distributions (since original launch)** 73.9 18.7 Total return per DP2011 Low Carbon Share 115.5 107.6 *Based on Total Return levels at 31 March 2016, performance fees are expected to become due to management. These are estimated to be 4.8p per DSO B/ DSO C Share. **Adjusted for post year end Special dividend of 50.0p per share paid on 27 May 2016 CHAIRMAN'S STATEMENT Introduction I am pleased to present the Annual Report for the year ended 31 March 2016. The year has seen a significant change as a result of the merger with three other VCTs in July 2015. The Company now has seven share pools in various different phases of their expected lives. The oldest share pool, the DSO Ordinary Share pool, has now completed the task of returning funds to Shareholders and delivered an excellent final outcome. The DSO B Share pool has also commenced the process of returning funds to Shareholders although there is still some way to go to complete the task. In April 2016, the three DP2011 Share pools reached their five year anniversaries and have begun the process of realising their investments. The DP2011 Low Carbon Share pool paid out a substantial dividend after the year end, and the DP2011 General and DP2011 Structured pools will make their first return of capital dividends shortly. The DSO D and DP67 Share pools are effectively fully invested and are not scheduled to start realising their investment portfolios for some time yet. Merger The merger of four VCTs was completed on 21 July 2015. The merger was effected by Downing Structured Opportunities VCT 1 plc acquiring Downing Planned Exit VCT 2011 plc, Downing Planned Exit VCT 6 plc and Downing Planned Exit VCT 7 plc. The merged company was renamed as Downing FOUR VCT plc immediately following the transaction. The significant increase in size as a result of the merger reduces the burden of running costs to Shareholders. The merger has also brought benefits in terms of complying with the VCT regulations and is providing additional flexibility during the process of unwinding the various investment portfolios. Board As part of the merger, two new directors have joined the Company's board. Sir Aubrey Brocklebank and Russell Catley were both previously directors of Downing Planned Exit VCT 2011 plc and have extensive experience in the VCT and relevant sectors. Sir Aubrey has taken on the role of Senior Independent Director. They have both been welcome additions to the Board. A brief summary of each share pool is provided below. DSO Ordinary Share pool The Company's DSO Ordinary Shares were originally issued in 2009. In line with the planned exit strategy, the DSO Ordinary pool exited from its remaining investments during the year, which realised GBP6.2 million. On 24 March 2016, the DSO Ordinary Share pool paid dividends of 36.16p per DSO Ordinary Share and 15.5p per DSO A Share, being the final return of capital payment to DSO Ordinary Shareholders. This also triggered a performance fee payable to the management team, equivalent to 7.8p per DSO Ordinary Share (as set out in more detail within the Strategic Report). Shareholders have received a total of 131.66p for a combined holding of one DSO Ordinary Share and one DSO A Share, compared to the cost for most Shareholders who invested in the original share offer, net of income tax relief, of 70p. This equates to a return of around 12% per annum over the life of the investment, which the Board believes is an excellent result for shareholders. The task of returning funds to Shareholders is now complete and steps are now being taken to wind up this share class. A detailed review of the final exits from the DSO Ordinary Share pool is presented in the Investment Manager's report. DSO B Share pool The DSO B Shares were originally issued in 2010 and the process of realising the portfolio and returning funds to Shareholders is now well under way. Two significant dividends were paid out during the year totalling 59.0p per DSO B Share. At the year end, the NAV of a combined holding of one DSO B Share and one DSO C Share stood at 17.9p, an increase of 6.6p (9.4%) over the year after adjusting for the dividends paid during the year. Based on the above values, total Shareholder proceeds are projected to trigger the hurdle levels at which a performance fee is paid to management. After providing for such a fee, it is estimated that the final Total Return to Shareholders will be 104.4p for a holding of one DSO B Share and one DSO C Share (split 94.7p per DSO B Share and 9.7p per DSO C Share), compared to the cost for Shareholders who invested in the DSO B Share offer, net of income tax relief, of 70p. Plans are now being pursued to exit from the remaining investments held by the DSO B Share pool. The Manager is optimistic that the remainder of the portfolio will be realised over the coming months and hopes that the DSO B Share pool will be in a positon to pay a further return of capital dividend representing either all or most of the remaining value later in 2016. A detailed review of the DSO B Share pool is presented in the Investment Manager's report. DSO D Share pool The DSO D Share NAV stood at 75.6p at the year end, a decrease of 0.1p per share or 0.1% over the year after adjusting for the dividends of 5.0p per share paid in the year. Total Return now stands at 95.6p per share, compared to the cost for Shareholders who invested in the DSO D Share offer, net of income tax relief, of 70p. The DSO D Share pool holds some challenging nightclub and pub investments in its portfolio which continue to demand intensive focus from the Investment Manager. The process of realising investments is not targeted to commence until August 2017 so there is some time for some recovery and growth before the exit phase. A more detailed review of the DSO D Share pool is presented in the Investment Manager's report. DP67 Share pool The DP67 Share NAV stood at 60.4p at the year end, an increase of 2.2p per share or 2.7% since the date of the merger (after adjusting for the dividends paid of 2.0p per share). Total Return now stands at 84.2p per share, compared to the original cost for Shareholders who invested in 2007, net of income tax relief, of 70p. A more detailed review of the DP67 Share pool is presented in the Investment Manager's report. The DP67 Share pool will be commencing the process of realising its investments in order to return funds to investors in 2018. DP2011 General Share pool The NAV of a combined holding of one DP2011 General Ordinary Share and one DP2011 General A Share stood at 81.0p at the year end, an increase of 0.2p per share or 0.2% since the merger, after adjusting for the dividends paid of 2.5p per share. Total Return now stands at 103.5p per
share, compared to the cost for Shareholders, net of income tax relief, of 70p. The DP2011 General Share pool passed its five year anniversary in April 2016 and has since realised several of its investments. The first substantial return of capital dividend will be paid to shareholders in August 2016. A more detailed review of the DP2011 General Share pool is presented in the Investment Manager's report. DP2011 Structured Share pool The NAV of a combined holding of one DP2011 Structured Ordinary Share and one DP2011 Structured A Share stood at 83.2p at the year end, a decrease of 0.2p per share or 0.2% since the merger, after adjusting for the dividends of 2.5p per share. Total Return now stands at 105.7p per share, compared to the cost for Shareholders, net of income tax relief, of 70p. The DP2011 Structured pool passed its five year anniversary in April 2016 and has since realised several of its investments. The first substantial return of capital dividend will be paid to shareholders in August 2016. A more detailed review of the DP2011 Structured Share pool is presented in the Investment Manager's report. DP2011 Low Carbon Share pool The DP2011 Low Carbon Share pool NAV stood at 41.6p at the year end, an increase of 5.4p per share or 5.0% since the merger after adjusting for the dividends paid of 2.5p per share. Total Return now stands at 115.5p per share, compared to the cost for Shareholders, net of income tax relief, of 70p (after rebasing to 100p per share during the merger in July 2015.) The DP2011 Low Carbon Share pool passed its five year anniversary in April 2016 and has since realised several of its investments. The first substantial return of capital dividend was paid to shareholders after the year end. A more detailed review of the DP2011 Low Carbon Share pool is presented in the Investment Manager's report. Dividends In the initial 5-year period of each share pool, the Company's usual policy is to pay annual dividends totalling at least 5p per share (on a twice yearly basis). The target is at least 4p per annum for the DP67 Share pool. In line with this policy, subject to approval at the forthcoming AGM, a dividend of 2.5p per DSO D Share and 2.0p per DP67 Share will be paid on 30 September 2016 to DSO D Shareholders and DP67 Shareholders respectively on the register at 9 September 2016. The DP2011 General and Structured Share pools have made good progress with realisations of their respective portfolios and declare the following special dividends payable on 2 September 2016 to Shareholders on the register at 12 August 2016: DP2011 General Ordinary Shares - 22.5p DP2011 Structured Ordinary Shares - 32.5p Since the year end, a special dividend of 50p per DP2011 Low Carbon Share was paid on 27 May 2016 as part of the return of capital process. Share buybacks In the initial 5-year period of each share class, the Company operates a policy of buying in its own shares that become available in the market subject to regulatory restrictions and other factors such as availability of liquid funds. Any such purchases are undertaken at a price approximately equal to NAV i.e. at a nil discount. 10,280 DSO D Shares, 35,175 DP2011 General Shares and 35,175 DP2011 General A Shares were purchased in the year to 31 March 2016. Now that the DSO B Share pool, and all of the DP2011 Share pools have commenced or will shortly commence realisations to return funds to Shareholders, the Company will no longer undertake any further share buybacks in respect of the DSO B Shares, DSO C Shares, DP2011 General Ordinary Shares, DP2011 General A Shares, DP2011 Structured Ordinary Shares, DP2011 Structured A Shares, and DP2011 Low Carbon Shares. The Board believes it is fairer to all Shareholders to distribute proceeds from the investment realisations to all the above Shareholders by way of dividends, rather than setting aside sums to fund share buybacks. As noted above the DSO Ordinary Share pool is in the process of winding up and the shares have no residual value. VCT rules As Shareholders may be aware, a number of potentially significant changes to the VCT rules were made in November 2015 and some further changes were announced in the Budget in March 2016. The rules add further restrictions on new investments that can be made by VCTs. The impact of the new rules on most of the current share pools is expected to be minimal as they are not expecting to make any new investments. Annual General Meeting ("AGM") The Company's seventh AGM will be held at Fifth Floor, Ergon House, Horseferry Road, London, SW1P 2AL at 11.15 a.m. on 22 September 2016. One item of special business is proposed: a special resolution to renew the authority to allow the Company to make market purchases of its shares. Outlook The Company will next report on the six month period ending 30 September 2016. The result of the recent EU referendum has started what appears to be, a period of uncertainty in financial markets. The Board believes that the impact on the existing portfolios should be minimal given that the investments are in unquoted businesses which generally have significant asset backing. The Board will, of course, continue to monitor the situation closely, however the options available to the Board and Manager in the event of a significant deterioration of the economy are relatively limited. Over the coming months the process of realising investments in the DSO B, DP2011 General, DP2011 Structured and DP2011 Low Carbon Share pools will continue/commence. In respect of all of these pools, the Manager is hopeful that the Company will be in a position to pay a further substantial return of capital dividend later this year. We expect there to be a busy few months for your Company, and I look forward to reporting developments in the Half Yearly Report to 30 September 2016. Lord Flight Chairman INVESTMENT MANAGER'S REPORT - DSO ORDINARY SHARE POOL Introduction In January 2016, the DSO Ordinary Share pool completed the task of realising its investments, and on 24 March 2016, paid final dividends. Net asset value and results Over the life of their investment, investors in the DSO Ordinary Share pool received total dividends of 116.16p per DSO Ordinary Share and 15.50p per DSO A Share making a total return of 131.66p for an original investment of 100p (70p net of income tax relief.) This equates to a return of around 12% per annum over the life of the investment, based on net cost, which we believe represents a very good return to Shareholders. Venture Capital investments Investment activity The DSO Ordinary Share pool began the year with GBP5.6 million of investments which were realised in full during the year. Total disposal proceeds of GBP6.2 million were received. All the remaining investments were sold during the year, some of the highlights being Redmed Limited, the Lincoln bar operator, which achieved a gain over original cost of GBP247,000; Domestic Solar Limited, which generated an uplift over original cost of GBP329,000; and Quadrate Spa Limited and Quadrate Catering Limited, the final investments to be sold from the portfolio, for a total of GBP1.3 million and a profit over cost of GBP281,000. Not all exit proceeds exceeded original cost and two investments were sold at discounts in order to provide liquidity to the fund. These included Future Biogas (SF) Limited and Mosaic Spa and Health Clubs Limited which generated combined proceeds of GBP731,000. The 3D Pub Co Limited and Ecossol Limited were realised for a total of GBP1.1 million, both at values marginally below cost due to underperformance of the investments. Several smaller exits also completed including Fenkle Street LLP, Chapel Street Services Limited, Chapel Street Food and Beverage Limited and Chapel Street Hotel Limited, for proceeds totalling GBP188,000. Outlook We are very satisfied with the final performance of the DSO Ordinary Share pool. Following the payment of the final dividends on 24 March 2016, the DSO Ordinary Share pool had negligible value at the year end and, in line with the Articles of the Company, the Company is taking steps to cancel the share class. We will notify Shareholders of progress in due course. Downing LLP Investment movements for the year ended 31 March 2016 ADDITIONS GBP'000 Venture Capital investments Redmed Limited 383 383 DISPOSALS Valuation Profit/(loss) Realised Cost at 31/03/15 Proceeds vs. cost gain/(loss) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Venture Capital investments Redmed Limited 1,233 1,427 1,480 247 53 Domestic Solar Limited 1,000 1,120 1,329 329 209 Quadrate Spa Limited* 451 451 666 215 215 Quadrate Catering Limited 577 629 643 66 14 Future Biogas (SF) Limited* 1,009 688 639 (370) (49) The 3D Pub Company Limited* 627 549 562 (65) 13 Ecossol Limited 500 425 474 (26) 49 Slopingtactic Limited 102 118 129 27 11 Mosaic Spa and Health Clubs Limited* 250 193 92 (158) (101) Chapel Street Food and Beverage Limited 75 39 67 (8) 28 Chapel Street Services
Limited 75 39 63 (12) 24 Fenkle Street LLP** 58 58 58 - - Camandale Limited* 274 16 15 (259) (1) Kilmarnock Monkey Bar Limited** 22 13 13 (9) - Commercial Street Hotel Limited - - 3 3 3 Chapel Street Hotel Limited** 3 2 - (3) (2) 6,256 5,767 6,233 (23) 466 * partially qualifying investment **non-qualifying investment INVESTMENT MANAGER'S REPORT- DSO B SHARE POOL Introduction The DSO B Share pool holds investments in 11 companies and is fully invested. The focus this year has been on realisations and 12 full exits have completed in the period. We are in the process of developing realisation plans for the remainder of the portfolio. Net asset value and results The NAV per DSO B Share at 31 March 2016 stood at 109.2p and per DSO C Share at 0.1p, a rise of 6.4p for a combined holding of one DSO B Share and one DSO C Share over the year after adjusting for dividends. Total Return (combined NAV plus cumulative dividends) stood at 104.4p for a combined holding, after taking account of an estimated performance incentive of 4.8p. The return on ordinary activities after taxation for the year was GBP1.3 million (2015: GBP82,000), comprising a revenue return of GBP736,000 (2015: GBP687,000) and a capital return of GBP559,000 (2015: loss GBP605,000). Venture Capital investments Investment activity The DSO B Share pool began the period with GBP13.7 million of investments and after realisations totalling GBP12.1 million, ended the year with GBP3.0 million spread across a portfolio of 11 Venture Capital investments. Three follow on investments were acquired at a discount from the DSO Ordinary Share pool in order to assist the older pool with short term liquidity: GBP470,000 in Redmed Limited, the owner and operator of a bar in Lincoln; GBP244,000 in Future Biogas (SF) Limited, the operator of a biogas plant in Norfolk; and GBP92,000 in Mosaic Spa and Health Clubs Limited. 18 exits occurred in the period generating proceeds of GBP12.1 million and a realised gain over the opening 2015 valuation of GBP908,000. Some highlights are as follows: Domestic Solar Limited, the installer of domestic solar panels across the UK, generated an uplift over original cost of GBP263,000; Alpha Schools Holdings Limited was realised in the period for a gain of GBP294,000 over original cost; Antelope Pub Limited which owns pub of the same name in south west London was sold in the year for a total gain of GBP261,000. Quadrate Spa Limited and Quadrate Catering Limited were sold for a total profit over cost of GBP321,000. GBP330,000 of loan note interest collected on exit offsets the write down of the remaining holding. Green Electricity Generation Limited was sold at an uplift over cost of GBP129,000. Other full exits in the period that generated proceeds above cost include Slopingtactic Limited and Progressive Energies Limited. Liverpool Nurseries (Holdings) Limited was sold for GBP830,000 - an uplift over opening value of GBP43,000, although marginally below original investment cost of GBP870,000. The exits of UK Solar (Hartwell) LLP, Future Biogas (Reepham Road) Limited, West Tower Property Limited and Commercial Street Hotel, all returned their original costs totalling GBP3.9 million to the share pool. Interest totalling over GBP550,000 was collected over the life of these investments. Unfortunately not all exits exceeded original cost and some were sold at discounts due to performance issues. These included Ecossol Limited, Kilmarnock Monkey Bar Limited and Camandale Limited which were sold for proceeds totalling GBP550,000 compared to original costs totalling GBP711,000 Portfolio valuation The majority of the DSO B Share portfolio performed in line with expectations during the year. There were a small number of valuation movements and one considerable write down, which resulted in a net unrealised loss of GBP252,000. Fenkle Street LLP, is a property development company based in Newcastle. The hotel is trading well and an uplift in the value of GBP123,000 has been recognised. Kidspace Adventures Holdings Limited, the owner of three well established children's play areas in Croydon, Romford and Epsom continues to perform well and an increase in the valuation of GBP34,000 has been recognised in the period. Avon Solar Energy, a domestic solar panel installer in Bristol was also uplifted by GBP15,000. Future Biogas (Reepham Road) Limited, the owner and operator of a biogas plant in Norfolk, has been sold in the period as described above. The remaining value is based on a deferred payment expected in the coming year. Small decreases in value were also made on three other investments: GBP15,000 to Mosaic Spa and Health Clubs Limited; GBP9,000 to Redmed Limited; and GBP3,000 to Camandale Limited. Outlook The realisations of the DSO B share pool investments have continued well and exit plans for the remaining holdings are progressing. We believe that there are good prospects for the majority of the remaining portfolio to be realised by the end of 2016. Downing LLP Portfolio of investments The following investments were held at 31 March 2016: Valuation movement % of Cost Valuation in year portfolio GBP'000 GBP'000 GBP'000 Venture Capital investments Kidspace Adventures Holdings Limited 750 930 34 25.3% Mosaic Spa and Health Clubs Limited* 692 520 (15) 14.2% Westcountry Solar Solutions Limited 500 500 - 13.6% Avon Solar Energy Limited 420 435 15 11.9% Fenkle Street LLP** 154 277 123 7.5% Future Biogas (Reepham Road) Limited 890 193 (65) 5.3% Future Biogas (SF) Limited** 122 122 - 3.3% Redmed Limited 66 57 (9) 1.5% Camandale Limited* 592 - (3) 0.0% Quadrate Spa Limited* 276 - (276) 0.0% Quadrate Catering Limited 56 - (56) 0.0% 4,518 3,034 (252) 82.6% Cash at bank and in hand 634 17.4% Total investments 3,668 100.0% * partially qualifying investment **non-qualifying investment All Venture Capital investments are incorporated in England and Wales. Investment movements for the year ended 31 March 2016 ADDITIONS GBP'000 Venture Capital investments Future Biogas (SF) Limited 244 Redmed Limited 470 Mosaic Spa and Health Clubs Limited* 92 806 DISPOSALS Valuation Profit Realised Cost at 31/3/15 Proceeds vs. cost gain/(loss) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 UK Solar (Hartwell) LLP 2,400 2,400 2,400 - - Domestic Solar Limited 800 896 1,063 263 167 Alpha Schools Holdings Limited 733 876 1,027 294 151 Antelope Pub Limited 750 885 1,011 261 126 Quadrate Spa Limited 678 678 1,000 322 322 Liverpool Nurseries (Holdings) Limited 870 787 830 (40) 43 Quadrate Catering Limited 794 870 793 (1) (77) Future Biogas (Reepham Road) Limited 772 772 772 - - Green Electricity Generation Limited 500 605 629 129 24 West Tower Property Limited 500 500 500 - - Ecossol Limited 500 425 474 (26) 49 Redmed Limited 404 404 427 23 23 Progressive Energies Limited 340 381 406 66 25 Slopingtactic Limited 277 320 351 74 31 Commercial Street Hotel Limited** 185 185 185 - - Future Biogas (SF) Limited** 122 122 147 25 25 Camandale Limited* 151 41 40 (111) (1) Kilmarnock Monkey Bar Limited** 60 36 36 (24) - 10,836 11,183 12,091 1,255 908 * partially qualifying investment **non-qualifying investment INVESTMENT MANAGER'S REPORT- DSO D SHARE POOL Introduction To date, the DSO D Share pool has invested GBP4.5 million in 15 Venture
Capital investments and GBP1.1 million in three Structured Product investment. The pool began the year with GBP4.9 million of venture capital investments and ended the period with GBP4.5 million. Structured Product investments were GBP1.5 million at the start of the year and ended at GBP1.1 million. One Structured Product investments matured in the period. Net asset value and results The net asset value ("NAV") per DSO D Share at 31 March 2016 stood at 75.6p a small decrease of 0.1p or 0.1% after adjusting for the dividend paid in the year. Total Return stands at 95.6p per share compared to initial cost to Shareholders, net of income tax relief, of 70p per share. The profit on ordinary activities after taxation for the year was GBP48,000 (2015: GBP204,000), comprising a revenue profit of GBP129,000 (2015: GBP120,000) and a capital loss of GBP81,000 (2015: gain of GBP84,000). Venture Capital investments Investment activity The DSO D Share pool began the period with GBP6.4 million of investments and ended with GBP5.7 million spread across a portfolio of 15 Venture Capital investments and three Structured Product investments. A new investment of GBP400,000 was made in Apex Energy Limited. The company is seeking to undertake the build and operation of electricity generation power plants. A restructuring of the investment replaced GBP112,000 of non-qualifying loan with a qualifying investment in Pearce and Saunders Limited, the freehold pub company that operates three sites in South East London. Trade has grown slowly at the newly opened pubs, and the valuation has been reduced by GBP24,000 in the year. A further GBP20,000 was also invested in a new company, Pearce and Saunders DevCo Limited that will be used to take advantage of a related development opportunity. One full exit of a qualifying company occurred in the period: Tor Solar Limited, the operator of a solar farm in the South West of England, generating proceeds of GBP709,000 and a GBP69,000 profit over the original investment cost. Portfolio valuation The majority of the DSO D Share pool investments have performed in line with expectations over the period and continue to be valued at original cost. There have however been several adjustments made which have resulted in a net unrealised loss of GBP162,000 in the year. Lambridge Solar Limited, the owner of a solar farm in Lincolnshire is performing well and the valuation has been increased by GBP17,000. Performance at two Scottish nightclubs, Fubar Stirling Limited and City Falkirk Limited, has continued to be below expectations and value reductions of GBP116,000 and GBP39,000 respectively have been made. Whilst we continue to work closely with the management of both clubs to bring trading back on track, it is clear that the depressed economic conditions in the region are a major contributing factor to the performance. Structured Products One structured product was realised during the year, generating proceeds of GBP409,000. This represented a profit on cost of GBP11,000 and an uplift of GBP58,000 over the March 2015 valuation. Outlook The focus now for the DSO D Share portfolio is on close monitoring and support of the portfolio companies to ensure that prospects for growth are optimised in the period until the realisation process commences in 2017. Downing LLP Portfolio of investments The following investments were held at 31 March 2016: Valuation movement % of Cost Valuation in year portfolio GBP'000 GBP'000 GBP'000 Structured Product investments HSBC 5.4% Dual Index Synthetic Zero 501 572 15 9.8% Credit Suisse 7% Defensive Worst Of Auto Call 251 291 15 5.0% HSBC 7.1% Defensive Worst Of Auto Call 251 286 12 4.9% 1,003 1,149 42 19.7% Venture Capital investments Vulcan Renewables Limited 653 779 - 13.3% Goonhilly Earth Station Limited 570 570 - 9.7% Lambridge Solar Limited 500 517 17 8.8% Merlin Renewables Limited 500 500 - 8.5% Nightjar Sustainable Power Limited 485 485 - 8.3% Apex Energy Limited 400 400 - 6.8% Grasshopper 2007 Limited 294 294 - 5.0% City Falkirk Limited 562 236 (39) 4.0% Fubar Stirling Limited 358 225 (116) 3.9% Fresh Green Power Limited 200 200 - 3.4% Pearce and Saunders Limited* 300 192 (24) 3.3% Green Energy Production UK Limited 100 100 - 1.7% Cheers Dumbarton Limited 64 22 - 0.4% Pearce and Saunders DevCo Limited 20 20 - 0.3% Lochrise Limited 17 - - 0.0% 5,023 4,540 (162) 77.4% 6,026 5,689 (120) 97.1% Cash at bank and in hand 159 2.9% Total investments 5,848 100.0% *partially qualifying investment All Venture Capital investments are incorporated in England and Wales. Investment movements for the year ended 31 March 2016 ADDITIONS GBP'000 Venture Capital investments Apex Energy Limited 400 Pearce and Saunders Limited* 132 Pearce and Saunders DevCo Limited 20 552 DISPOSALS Valuation Profit Realised Cost at 31/3/15 Proceeds vs. cost gain GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Structured Product investments Goldman Sachs 8.5% Defensive Worst Of Auto Call 351 398 409 11 58 Venture Capital investments Tor Solar PV Limited 640 640 709 69 69 Pearce and Saunders Limited* 112 112 112 - - 1,103 1,150 1,230 80 127 *partially qualifying investment DP67 SHARE POOL SUMMARY INVESTMENT MANAGER'S REPORT - DP67 SHARE POOL Introduction The DP67 Share pool was formed as part of the merger in July 2015 and includes the portfolios of Downing Planned Exit VCT 6 plc and Downing Planned Exit VCT 7 plc. These companies were sister companies which held identical investment portfolios. Net asset value and results The net asset value ("NAV") per DP67 Share at 31 March 2016 stood at 60.4p an increase of 2.2p or 2.7% since the merger, after adjusting for the dividends paid in the period. Total Return stands at 84.2p per share compared to initial cost to Shareholders, net of income tax relief, of 70p per share. The profit on ordinary activities after taxation for the period since the merger was GBP259,000, comprising a revenue profit of GBP93,000 and a capital gain of GBP166,000. Venture Capital investments Investment activity At the merger date, the DP67 Share pool held GBP4.6 million of investments and ended the period with GBP5.8 million spread across a portfolio of 10 Venture Capital investments. During the period since the merger there were four follow on investments made: Gatewales Limited holds rights to profit shares from a development project. The project is performing in line with plan and the profit shares are now being paid out - GBP424,000 was received in the year. A further GBP350,000 investment was purchased in the period since the merger. In addition the investment was uplifted by GBP285,000 at the year end, reflecting the anticipated future returns. An additional GBP245,000 was invested in the Thames Club Limited, a health and fitness centre in Staines. As previously reported the value of the investment has deteriorated recently, following increased local competition. During the period, the entire holding was sold for GBP100,000, against a total cost of GBP735,000. A further investment of GBP328,000 was made in Fenkle Street LLP and GBP584,000 into Snow Hill Developments LLP. New investments totalling GBP965,000 were made in Kidspace Adventures Holdings Limited, which owns three well established children's play areas, and Hobblers Heath Limited which is building an adventure playground in Hounslow. Two short term non-qualifying loans made to UK Solar (Hartwell) LLP and UK Solar (Lower Newton) LLP were redeemed in full at par during the period, generating total proceeds of GBP1.0 million. GBP56,000 of interest was received for these loans over the period held. Two small new investments in Dominions House Limited and London City Shopping Centre Limited for GBP54,000 and GBP99,000 respectively were also made during the period. Portfolio valuation The DP67 Share pool portfolio held at the year-end has performed well and there were two significant uplifts in the period; GBP285,000 on Gatewales Limited noted above; and GBP204,000 on Cadbury House Limited.
Additionally, Fenkle Street LLP, a property development company based in Newcastle, was uplifted in value by GBP114,000. The investment in Snow Hill Developments LLP was also uplifted by GBP84,000. These uplifts were partly offset by a value reduction of GBP205,000 on Oak Grove Renewables Limited due to performance issues at the anaerobic digestion plant. The total uplift on the portfolio was GBP482,000 over the period since the merger. Outlook We are generally pleased with the state of the DP67 portfolio, although The Thames Club performance was a disappointment. The portfolio is now almost fully invested and we will be continuing to monitor all investments closely to ensure that prospects for growth are maximised. Downing LLP DP67 SHARE POOL Portfolio of investments The following investments were held at 31 March 2016: Valuation Original movement % of Cost Cost Valuation in period portfolio GBP'000 GBP'000 GBP'000 GBP'000 Venture Capital investments Cadbury House Holdings Limited 1,206 1,409 1,613 204 23.9% Snow Hill Developments LLP** 500 1,084 1,168 84 17.3% Gatewales Limited* 876 564 849 285 12.6% Oak Grove Renewables Limited 820 820 615 (205) 9.1% Kidspace Adventures Holdings Limited - 578 578 - 8.6% Fenkle Street LLP** 77 405 519 114 7.7% Hobblers Heath Limited - 387 387 - 5.7% London City Shopping Centre Limited** - 99 99 - 1.5% Coast Constructors Limited 1,866 - - - 0.0% Aminghurst Limited** 415 - - - 0.0% 5,346 5,828 482 86.4% Cash at bank and in hand 911 13.6% Total investments 6,739 100.0% * partially qualifying investment **non qualifying investment All Venture Capital investments are incorporated in England and Wales. Investment movements for the year ended 31 March 2016 ADDITIONS GBP'000 Acquired from Downing Planned Exit 6 and Downing Planned Exit 7 in the merger Cadbury House Holdings Limited 1,409 Oak Grove Renewables Limited 820 UK Solar (Lower Newton) LLP** 600 Snow Hill Developments LLP** 500 The Thames Club Limited* 490 UK Solar (Hartwell) LLP** 400 Gatewales Limited* 292 Fenkle Street LLP** 77 Coast Constructors Limited - Aminghurst Limited** - Acquired since the merger Snow Hill Developments LLP** 584 Kidspace Adventures Holdings Limited 578 Hobblers Heath Limited 387 Gatewales Limited* 350 Fenkle Street LLP** 328 The Thames Club Limited* 245 Dominions House Limited** 54 London City Shopping Centre Limited** 99 7,213 DISPOSALS Profit/ Valuation (loss) Realised Cost at 20/07/15 Proceeds vs. cost Gain /(loss) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Gatewales Limited* 78 78 424 346 346 The Thames Club Limited* 735 735 100 (635) (635) Dominions House Limited** 54 54 62 8 8 UK Solar (Lower Newton) LLP** 600 600 600 - - UK Solar (Hartwell) LLP** 400 400 400 - - 1,867 1,867 1,586 (281) (281) * partially qualifying investment **non-qualifying investment INVESTMENT MANAGER'S REPORT - DP2011 GENERAL SHARE POOL Introduction At 31 March 2016 the DP2011 General Share pool was fully invested with a portfolio value of GBP10.4 million, comprising 13 fully or partly qualifying investments and a further six non-qualifying investments. Now that the five-year anniversary has passed, we will look to seek appropriate exit strategies to maximise returns to Shareholders. Net asset value and results The combined net asset value ("NAV") of one DP2011 General Ordinary Share and one DP2011 General A Share at 31 March 2016 stood at 81.0p an increase of 0.2p or 0.2% since the merger, after adjusting for the dividend paid in the period. Total Return stands at 103.5p per share compared to initial cost to Shareholders, net of income tax relief, of 70p per share. The profit on ordinary activities after taxation for the period since the merger was GBP32,000, comprising a revenue profit of GBP383,000 and a capital loss of GBP351,000. Venture Capital investments Investment activity At the merger date, the DP2011 General Share pool held GBP13.1 million of investments and ended the period with GBP10.4 million spread across a portfolio of 19 Venture Capital investments. The process of exiting investments in the portfolio has begun in order to return funds to Shareholders. As such, a number of investments were sold in the period. A portfolio of solar panel companies were sold during the period; Residential PV Trading Limited for GBP892,000, South West Farms Limited for GBP742,000 and Angel Solar Limited for GBP369,000. The total profit over cost of these three disposals was GBP386,000. Antelope Pub Limited owns and operates a pub of the same name in south west London. The holding of GBP300,000 was sold at par during the period. Dominions House Limited was fully disposed of in the period for GBP98,000. Portfolio valuation The DP2011 General portfolio suffered a number of setbacks in the period with a total unrealised loss of GBP657,000 being recognised. Odysian (Holdings) Limited, the holding company for a nightclub and bar in Chester, has suffered a significant drop in trade; Mosaic Spa and Health Club Limited has had continued performance issues at the Shrewsbury site and Oak Grove Renewables Limited had issues at the anaerobic digestion plant. Performance at two Scottish nightclubs, Fubar Stirling Limited and City Falkirk Limited, has continued to operate below expectations and value reductions have been made. Whilst we continue to work closely with the management of both clubs to bring trading back on track, it is clear that the depressed economic conditions in the region are a major contributing factor to the weak performance. Outlook The DP2011 General Share pool is now focussed on the realisation of the portfolio, and the coming months should be busy. We expect to make a substantial dividend payment in the near future, however the full disposal process may take some time to complete. Downing LLP Portfolio of investments The following investments were held at 31 March 2016: Valuation Original movement % of Cost Cost Valuation in period portfolio GBP'000 GBP'000 GBP'000 GBP'000 Venture Capital investments Vulcan Renewables Limited 1,845 2,199 2,199 - 17.4% Kidspace Adventures Holdings Limited 1,116 1,351 1,384 33 11.0% Tooting Tram and Social Limited* 1,067 1,187 1,223 36 9.7% Mosaic Spa and Health Clubs Limited* 1,500 1,147 955 (192) 7.6% Snow Hill Developments LLP** 750 750 750 - 5.9% Westcountry Solar Solutions Limited 600 600 600 - 4.7% Odysian (Holdings) Limited 857 873 591 (282) 4.7% Wickham Solar Limited 473 550 550 - 4.4% Kidspace Adventures Limited** 539 539 539 - 4.3% Avon Solar Energy Limited 505 505 523 18 4.1% Oak Grove Renewable Limited 400 400 317 (83) 2.5% City Falkirk Limited 674 330 283 (47) 2.2% Fubar Stirling Limited 429 410 270 (140) 2.1% London City Shopping Centre Limited** 50 88 88 - 0.7% Clean Electricity
Limited** 70 70 70 - 0.6% UK Renewable Power Limited** 55 55 55 - 0.4% Cheers Dumbarton Limited 76 27 27 - 0.2% 21st Century Energy Limited** 22 22 22 - 0.2% Lochrise Limited 20 - - - 0.0% 11,103 10,446 (657) 82.7% Cash at bank and in hand 2,186 17.3% Total investments 12,632 100.0% * partially qualifying investment **non-qualifying investment All Venture Capital investments are incorporated in England and Wales. Investment movements for the year ended 31 March 2016 ADDITIONS The entire DP2011 General Portfolio was acquired during the merger in July 2015. DISPOSALS Valuation Profit Realised Cost at 20/7/15 Proceeds vs. cost gain GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Residential PV Trading Limited 762 762 892 130 130 South-Western Farms Solar Limited 555 555 742 187 187 Angel Solar Limited 300 300 369 69 69 Antelope Pub Limited** 300 300 300 - - Dominions House Limited** 98 98 98 - - 2,015 2,015 2,401 386 386 * partially qualifying investment ** non-qualifying investment INVESTMENT MANAGER'S REPORT- DP2011 STRUCTURED SHARE POOL Introduction At 31 March 2016 the DP2011 Structured Share pool was fully invested with a portfolio value of GBP7.4 million, comprising 13 fully or partly qualifying venture capital investments and four Structured Product investments. Now that the five-year anniversary has passed, we are looking to seek appropriate exit strategies to maximise returns to Shareholders. Net asset value and results The net asset value ("NAV") of a combined holding of one DP2011 Structured Ordinary Share and one DP2011 Structured A Share at 31 March 2016 stood at 83.2p a decrease of 0.2p or 0.2% since the merger after adjusting for the dividend paid in the period. Total Return stands at 105.7p per share compared to initial cost to Shareholders, net of income tax relief, of 70p per share. The loss on ordinary activities after taxation for the period since the merger was GBP10,000, comprising a revenue profit of GBP247,000 and a capital loss of GBP257,000. Venture Capital investments Investment activity At the merger date, the DP2011 Structured Share pool held GBP9.2 million of investments and ended the period with GBP7.3 million spread across a portfolio of 13 Venture Capital investments and 4 Structured Product investments. The process of exiting investments in the portfolio has begun in order to return funds to Shareholders. As such, a number of investments were sold in the period. A portfolio of solar panel companies was sold during the period; Residential PV Trading Limited for GBP595,000, South West Farms Limited for GBP495,000 and Angel Solar Limited for GBP246,000. The total profit over cost of these three disposals was GBP258,000. Portfolio valuation The DP2011 Structured portfolio suffered a number of setbacks in the period and the unquoted portfolio was written down by GBP494,000 over the period since the merger. Odysian (Holdings) Limited, the holding company for a nightclub and bar in Chester has suffered a significant drop in trade; Mosaic Spa and Health Club Limited has had continued performance issues at the Shrewsbury site and Oak Grove Renewables Limited has suffered performance issues at the anaerobic digestion plant. Performance at two of the Share pool's Scottish nightclubs, Fubar Stirling Limited and City Falkirk Limited, has continued to operate below expectations and value reductions have been made. Whilst we continue to work closely with the management of both clubs to bring trading back on track, it is clear that the depressed economic conditions in the region are a major contributing factor to the weak performance. Some small uplifts have also been recognised across the portfolio: Kidspace Adventures Holdings Limited, Tooting Tram and Social Limited and Avon Solar Energy Limited totalling GBP58,000. Structured Products The value of the Structured Portfolio has increased by GBP31,000 over the period since the merger. There was one redemption during the period at a gain against original cost of GBP41,000. After the period end the remainder of the Structured Portfolio was disposed of generating proceeds totalling GBP1.5 million at a profit of GBP282,000 over original cost. Outlook The DP2011 Structured Share pool is now focussed on the realisation of the portfolio. We expect to make a substantial dividend payment in the near future, however the full disposal process may take some time to complete. Downing LLP Portfolio of investments The following investments were held at 31 March 2016: Valuation movement % of Original Cost Cost Valuation in period portfolio GBP'000 GBP'000 GBP'000 GBP'000 Structured Product investments HSBC 7.1% Defensive Worst Of Auto Call 447 447 458 10 5.1% RBS 6 Yr Dual Index Synthetic Zero 10.16% 373 373 380 6 4.3% Credit Suisse 7% Defensive Worst Of Auto Call 290 290 293 3 3.3% Credit Suisse 10% Defensive Worst Of Auto Call 279 279 291 12 3.3% 1,389 1,422 31 16.0% Venture Capital investments Vulcan Renewables Limited 1,091 1,305 1,305 - 14.6% Kidspace Adventures Holdings Limited 744 901 923 22 10.4% Tooting Tram and Social Limited 533 613 637 24 7.2% Mosaic Spa and Health Clubs Limited* 920 685 557 (128) 6.2% Wickham Solar Limited 473 550 550 - 6.2% Oak Grove Renewables Limited 545 545 433 (112) 4.9% Westcountry Solar Solutions Limited 400 400 400 - 4.5% Odysian (Holdings) Limited 571 582 394 (188) 4.4% Avon Solar Energy Limited 336 336 348 12 3.9% City Falkirk Limited 450 220 189 (31) 2.1% Fubar Stirling Limited 286 273 180 (93) 2.0% Cheers Dumbarton Limited 51 18 18 - 0.2% Lochrise Limited 13 - - - 0.0% 6,428 5,934 (494) 66.6% 7,817 7,356 (463) 82.6% Cash at bank and in hand 1,556 17.4% Total investments 8,912 100.0% *partially qualifying investment All Venture Capital investments are incorporated in England and Wales. Investment movements for the year ended 31 March 2016 ADDITIONS The entire DP2011 Structured Portfolio was acquired during the merger in July 2015. DISPOSALS Valuation Profit Realised Cost at 20/7/15 Proceeds vs. cost gain GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Structured Product investments Goldman Sachs 8.5% Defensive Worst-of-Auto Call 288 288 292 4 4 Venture Capital investments Angel Solar Limited 200 200 246 46 46 Residential PV Trading Limited 508 508 595 87 87 South-Western Solar Limited 370 370 495 125 125 1,366 1,366 1,628 262 262 INVESTMENT MANAGER'S REPORT- DP2011 LOW CARBON SHARE POOL Introduction The task of building the DP2011 Low Carbon portfolio was completed at an early stage. The process of realising the portfolio and returning funds to Shareholders is now underway and a substantial dividend of 50p was paid out on 27 May 2016. Net asset value and results The net asset value ("NAV") per DP2011 Low Carbon Share at 31 March 2016 stood at 41.6p an increase of 5.4p or 5.0% since the merger after adjusting for the dividend paid in the period. Total Return stands at 115.5p per share compared to initial cost to Shareholders, net of income tax relief, of 70p per share, after rebasing to 100p during the merger. The profit on ordinary activities after taxation for the period since
the merger was GBP424,000, comprising a revenue profit of GBP211,000 and a capital gain of GBP213,000. Venture Capital investments Investment activity At the merger date, the DP2011 Low Carbon Share pool held GBP6.9 million of investments and ended with GBP3.0 million spread across a portfolio of 4 Venture Capital investments. All of the investments own solar PV panels sited on a mix of commercial and residential rooftops, all of which received Feed in Tariffs ("FiTs"). During the period a successful exit was made from three of the companies held at the date of the merger. Green Electricity Generation Limited, Progressive Energies Limited and PV Generation Limited were sold for total proceeds of GBP4.1 million generating a gain against original pre merger costs of GBP733,000. Portfolio valuation The remainder of the portfolio is performing consistently and there are no valuation movements in the period. Outlook We are satisfied with the progress made by the portfolio companies to date, and with the exits already secured. We are optimistic that a full exit from the rest of the portfolio can be achieved in the fourth quarter of 2016 in order to facilitate a final dividend to shareholders at the end of this year or early next year. Downing LLP REVIEW OF INVESTMENTS - DP2011 LOW CARBON SHARE POOL Portfolio of investments The following investments were held at 31 March 2016: Valuation movement % of Original cost Cost Valuation in period portfolio GBP'000 GBP'000 GBP'000 GBP'000 Venture Capital investments Progressive Power Generation Limited 800 800 800 - 11.2% UK Renewable Power Limited 780 780 780 - 10.9% Clean Electricity Limited 780 710 710 - 10.0% 21st Century Energy Limited 600 708 708 - 9.9% 2,998 2,998 - 42.0% Cash at bank and in hand 4,011 58.0% Total investments 7,009 100.0% *partially qualifying investment All Venture Capital investments are incorporated in England and Wales. Investment movements for the year ended 31 March 2016 ADDITIONS The entire DP2011 Low Carbon portfolio was acquired during the merger in July 2015. DISPOSALS Valuation Profit Realised Cost at 31/3/15 Proceeds vs. cost gain GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Green Electricity Generation Limited 1,210 1,210 1,258 48 48 Progressive Energies Limited* 1,520 1,520 1,593 73 73 PV Generation Limited 1,150 1,150 1,282 132 132 3,880 3,880 4,133 253 253 *partially qualifying investment Directors' responsibilities The Directors are responsible for preparing the Report of the Directors, the Directors' Remuneration Report and the financial statements in accordance with applicable law and regulations. They are also responsible for ensuring that the Annual Report includes information required by the Listing Rules of the Financial Conduct Authority. Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom accounting standards and applicable law) including Financial Reporting Standard 102, the financial reporting standard applicable in the UK and Republic of Ireland (FRS 102). Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements the Directors are required to: *select suitable accounting policies and then apply them consistently; *make judgments and accounting estimates that are reasonable and prudent; *state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and *prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions, to disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In addition, each of the Directors considers that the Annual Report, taken as a whole, is fair, balanced and understandable and provides the information necessary for Shareholders to assess the Company's performance, business model and strategy. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements and other information included in the annual reports may differ from legislation in other jurisdictions. Directors' statement pursuant to the Disclosure Rules and Transparency Rules Each of the Directors confirms that, to the best of each person's knowledge: *the financial statements, which have been prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and *the management report included within the Report of the Directors, Chairman's Statement, Investment Manager's Report, and Review of Investments includes a fair review of the development and performance of the business and the position of the company together with a description of the principal risks and uncertainties that it faces. By order of the Board Grant Whitehouse Secretary of Downing FOUR VCT plc INCOME STATEMENT for the year ended 31 March 2016 Year ended 31 March 2016 Year ended 31 March 2015 Revenue Capital Total Revenue Capital Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Income - continuing 1,790 - 1,790 2,680 - 2,680 - acquisition 1,645 - 1,645 - - - 3,435 - 3,435 2,680 - 2,680 Net gain/(loss) on investments - continuing - 899 899 - (881) (881) - acquisition - (18) (18) - - - 3,435 881 4,316 2,680 (881) 1,799 Investment management fees (389) (389) (778) (240) (240) (480) Other expenses (568) - (568) (345) (1) (346) Return/(loss) on ordinary activities before tax 2,478 492 2,970 2,095 (1,122) 973 Tax on total comprehensive income and ordinary activities (351) - (351) (256) - (256) Return/(loss) attributable to equity shareholders, being total comprehensive income for the year 2,127 492 2,619 1,839 (1,122) 717 Basic and diluted return per share: DSO Ordinary Share 3.2p 2.4p 5.6p 10.0p (5.8p) 4.2p DSO A Share - - - - - - DSO B Share 3.7p 2.8p 6.5p 3.4p (3.0p) 0.4p DSO C Share - - - - - - DSO D Share 1.6p (1.0p) 0.6p 1.5p 1.1p 2.6p DP67 Share 0.8p 1.5p 2.3p DP2011 General Share 2.4p (2.2p) 0.2p DP2011 Structured Share 2.3p (2.4p) (0.1p) DP2011 Low Carbon 2.8p 2.8p 5.6p The total column within the Income Statement represents the Statement of Total Comprehensive Income of the Company prepared in accordance with Financial Reporting Standard 102 ("FRS 102"). The supplementary revenue return and capital return columns are prepared in accordance with the Statement of Recommenced Practice issued in November 2014 by the Association of Investment Companies ("AIC SORP").
INCOME STATEMENT (analysed by share pool) for the year ended 31 March 2016 Split as: DSO Ordinary Share pool (continuing) Year ended 31 March 2016 Year ended 31 March 2015 Revenue Capital Total Revenue Capital Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Income 488 - 488 1,258 - 1,258 Net (loss)/gain on investments - 282 282 - (529) (529) 488 282 770 1,258 (529) 729 Investment management fees (39) (39) (78) (72) (71) (143) Other expenses (72) - (72) (93) (1) (94) Return/(loss) on ordinary activities before tax 377 243 620 1,093 (601) 492 Tax on ordinary activities (49) - (49) (61) - (61) Return/(loss) attributable to equity shareholders, being total comprehensive income for the year 328 243 571 1,032 (601) 431 DSO B Share pool (continuing) Year ended 31 March 2016 Year ended 31 March 2015 Revenue Capital Total Revenue Capital Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Income 1,047 - 1,047 1,149 - 1,149 Net gain/(loss) on investments - 656 656 - (487) (487) 1,047 656 1,703 1,149 (487) 662 Investment management fees (97) (97) (194) (118) (118) (236) Other expenses (98) - (98) (177) - (177) Return/(loss) on ordinary activities before tax 852 559 1,411 854 (605) 249 Tax on ordinary activities (116) - (116) (167) - (167) Return/(loss) attributable to equity shareholders, being total comprehensive income for the year 736 559 1,295 687 (605) 82 DSO D Share pool (continuing) Year ended 31 March 2016 Year ended 31 March 2015 Revenue Capital Total Revenue Capital Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Income 255 - 255 273 - 273 Net (loss)/gain on investments - (39) (39) - 135 135 255 (39) 216 273 135 408 Investment management fees (42) (42) (84) (50) (51) (101) Other expenses (81) - (81) (75) - (75) Return/(loss) on ordinary activities before tax 132 (81) 51 148 84 232 Tax on ordinary activities (3) - (3) (28) - (28) Return/(loss) attributable to equity shareholders, being total comprehensive income for the year 129 (81) 48 120 84 204 DP67 Share pool (acquisition) Period from 21 July 2015 to 31 March 2016 Revenue Capital Total GBP'000 GBP'000 GBP'000 Income 204 - 204 Net gain on investments - 201 201 204 201 405 Investment management fees (35) (35) (70) Other expenses (61) - (61) Return on ordinary activities before tax 108 166 274 Tax on ordinary activities (15) - (15) Return attributable to equity shareholders, being total comprehensive income for the year 93 166 259 DP2011 General Share pool (acquisition) Period from 21 July 2015 to 31 March 2016 Revenue Capital Total GBP'000 GBP'000 GBP'000 Income 659 - 659 Net loss on investments - (271) (271) 659 (271) 388 Investment management fees (80) (80) (160) Other expenses (119) - (119) Return/(loss) on ordinary activities before tax 460 (351) 109 Tax on ordinary activities (77) - (77) Return/(loss) attributable to equity shareholders, being total comprehensive income for the year 383 (351) 32 DP2011 Structured Share pool (acquisition) Period from 21 July 2015 to 31 March 2016 Revenue Capital Total GBP'000 GBP'000 GBP'000 Income 429 - 429 Net loss on investments - (201) (201) 429 (201) 228 Investment management fees (56) (56) (112) Other expenses (78) - (78) Return/(loss) on ordinary activities before tax 295 (257) 38 Tax on ordinary activities (48) - (48) Return/(loss) attributable to equity shareholders, being total comprehensive income for the year 247 (257) (10) DP2011 Low Carbon Share pool (acquisition) Period from 21 July 2015 to 31 March 2016 Revenue Capital Total GBP'000 GBP'000 GBP'000 Income 353 - 353 Net gain on investments - 253 253 353 253 606 Investment management fees (40) (40) (80) Other expenses (59) - (59) Return on ordinary activities before tax 254 213 467 Tax on ordinary activities (43) - (43) Return attributable to equity shareholders, being total comprehensive income for the year 211 213 424 BALANCE SHEET as at 31 March 2016 2016 2015 GBP'000 GBP'000 Fixed assets Investments 35,351 25,638 Current assets Debtors 1,077 432 Cash at bank and in hand 9,533 457 10,610 889 Creditors: amounts falling due within one year (879) (612) Net current assets 9,731 277 Net assets 45,082 25,915 8BCapital and reserves Called up Share capital 84 38 Called up Share capital - DSO A, DSO C, DP2011 Gen A and Struc A 77 46 Capital redemption reserve 5 5 Special reserve 44,441 20,895 Share premium account - 2,794 Revaluation reserve (2,645) (1,544) Capital reserve - realised 1,949 2,500 Revenue reserve 1,171 1,181 Total equity shareholders' funds 45,082 25,915 Basic and diluted net asset value per Share: DSO Ordinary Share - 53.8p
DSO Ordinary A Share - 0.1p DSO B Share 17.6p 70.2p DSO C Share 0.1p 0.1p DSO D Share 75.6p 80.7p DP67 Share 60.4p n/a DP2011 General Ordinary Share 75.1p n/a DP2011 General A Share 5.9p n/a DP2011 Structured Ordinary Share 77.1p n/a DP2011 Structured A Share 6.1p n/a DP2011 Low Carbon 91.6p n/a BALANCE SHEET (ANALYSED BY SHARE POOL) as at 31 March 2016 DSO Ordinary Shares 2016 2015 GBP'000 GBP'000 Fixed assets Investments - 5,568 Current assets Debtors 31 65 Cash at bank and in hand 76 65 107 130 Creditors: amounts falling due within one year (104) (143) Net current assets 3 (13) Net assets 3 5,555 Capital and reserves Called up DSO Ordinary share capital 10 10 Called up DSO A share capital 16 16 Capital redemption reserve 5 5 Special reserve - 166 Share premium reserve - 2,794 Revaluation reserve (184) (490) Capital reserve - realised - 2,381 Revenue reserve 156 673 Total equity shareholders' funds 3 5,555 DSO B Shares 2016 2015 GBP'000 GBP'000 Fixed assets Investments 3,034 13,663 Current assets Debtors 20 280 Cash at bank and in hand 634 392 654 672 Creditors: amounts falling due within one year (160) (326) Net current assets 494 346 Net assets 3,528 14,009 Capital and reserves Called up DSO B share capital 20 20 Called up DSO C share capital 30 30 Capital redemption reserve - - Special reserve 3,662 13,676 Share premium reserve - - Revaluation reserve (1,485) (886) Capital reserve - realised 1,231 740 Revenue reserve 70 429 Total equity shareholders' funds 3,528 14,009 DSO D Shares 2016 2015 GBP'000 GBP'000 Fixed assets Investments 5,689 6,407 Current assets Debtors 162 87 Cash at bank and in hand 159 - 321 87 Creditors: amounts falling due within one year (65) (143) Net current assets 256 (56) Net assets 5,945 6,351 Capital and reserves Called up share capital 8 8 Capital redemption reserve - - Special reserve 6,802 7,053 Share premium reserve - - Revaluation reserve (338) (168) Capital reserve - realised (538) (621) Revenue reserve 11 79 Total equity shareholders' funds 5,945 6,351 DP67 Shares 2016 GBP'000 Fixed assets Investments 5,828 Current assets Debtors 198 Cash at bank and in hand 911 1,109 Creditors: amounts falling due within one year (100) Net current assets 1,009 Net assets 6,837 Capital and reserves Called up share capital 11 Capital redemption reserve - Special reserve 5,897 Share premium reserve - Revaluation reserve 482 Capital reserve - realised 354 Revenue reserve 93 Total equity shareholders' funds 6,837 DP2011 General Shares 2016 GBP'000 Fixed assets Investments 10,446 Current assets Debtors 390 Cash at bank and in hand 2,186 2,576 Creditors: amounts falling due within one year (196) Net current assets 2,380 Net assets 12,826 Capital and reserves Called up share capital - Ordinary Shares 16 Called up share capital - A Shares 18 Capital redemption reserve - Special reserve 12,681 Share premium reserve - Revaluation reserve (657) Capital reserve - realised 385 Revenue reserve 383 Total equity shareholders' funds 12,826 DP2011 Structured Shares 2016 GBP000 Fixed assets Investments 7,356 Current assets Debtors 230 Cash at bank and in hand 1,556 1,786 Creditors: amounts falling due within one year (141) Net current assets 1,645 Net assets 9,001 Capital and reserves Called up share capital - Ordinary Shares 11 Called up share capital - A Shares 13 Capital redemption reserve - Special reserve 8,929 Share premium reserve - Revaluation reserve (463) Capital reserve - realised 264 Revenue reserve 247 Total equity shareholders' funds 9,001 DP2011 Low Carbon Shares 2016 GBP000 Fixed assets Investments 2,998 Current assets Debtors 46 Cash at bank and in hand 4,011 4,057 Creditors: amounts falling due within one year (113) Net current assets 3,944 Net assets 6,942 Capital and reserves Called up share capital 8 Capital redemption reserve - Special reserve 6,470 Share premium reserve - Revaluation reserve - Capital reserve - realised 253 Revenue reserve 211 Total equity shareholders' funds 6,942 STATEMENT OF CHANGES IN EQUITY for the year ended 31 March 2016 Capital Share Capital Share redemption Special premium Revaluation reserve Revenue capital reserve reserve account reserve realised reserve Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 For the year ended 31 March 2016 -- 31 March 2015 84 5 20,895 2,794 (1,544) 2,500 1,181 25,915 Total comprehensive income - - - - (1,194) 1,686 2,127 2,619 Issue of share capital on acquisition 77 - - 35,999 - - - 36,076 Share premium cancellation - - 38,692 (38,692) - - - - Transfer between
reserves* - - (15,056) - 93 15,531 (568) - Transactions with owners Dividend paid - - - - - (17,768) (1,569) (19,337) Purchase of own shares - - (8) (30) - - - (38) Share issue costs - - (82) (71) - - - (153) At 31 March 2016 161 5 44,441 - (2,645) 1,949 1,171 45,082 For the year ended 31 March 2015 At 31 March 2014 84 5 27,090 2,794 543 851 1,087 32,454 Total comprehensive income - - - - (919) (203) 1,839 717 Transactions with owners Dividend paid - - - - - (5,511) (1,745) (7,256) Transfer between reserves* - - (6,195) - (1,168) 7,363 - - At 31 March 2015 84 5 20,895 2,794 (1,544) 2,500 1,181 25,915 * A transfer of GBP93,000 representing previously recognised realised gains on disposal of investments during the year ended 31 March 2016 (2015: GBP1.2 million losses) has been made from the Revaluation Reserve to the Capital Reserve realised. A transfer of GBP15.5 million representing realised gains on disposal of investments, less capital expenses and capital dividends in the year (2015: GBP6.2 million) has been made form Capital Reserves - realised to Special reserve. A transfer of GBP568,000 was made from Capital Reserve realised to Revenue reserve to reconcile the Ordinary Share pool reserves. STATEMENT OF CASH FLOWS for the year ended 31 March 2016 Year ended 31 March 2016 DP2011 DSO Ord DSO B DSO D Gen Share Share Share DP67 Share Share DP2011 Struc Share DP2011 pool pool pool pool pool pool LC Share pool Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Cash flows from operating activities Return on ordinary activities before taxation 620 1,411 51 274 109 38 467 2,970 (Gains)/losses on investments (282) (656) 39 (201) 271 201 (253) (881) Decrease/(increase) in debtors 35 260 (77) (94) (2) (16) (30) 136 Increase/(decrease) in creditors - (57) (53) 10 31 29 55 (95) Net cash from operating activities 373 958 (40) (11) 409 252 189 2,130 Corporation tax paid (88) (225) (27) (153) (249) (126) (139) (1,007) Net cash generated/(utilised) from operating activities 285 733 (67) (164) 160 126 50 1,123 Cash flows from investing activities Purchase of investments (383) (806) (552) (2,625) (38) - - (4,404) Proceeds from disposal of investments 6,233 12,091 1,231 1,587 2,401 1,628 4,133 29,304 Cash acquired in merger - - - 2,362 101 81 37 2,581 Net cash inflow from investing activities 5,850 11,285 679 1,324 2,464 1,709 4,170 27,481 Net cash inflow before financing 6,135 12,018 612 1,160 2,624 1,835 4,220 28,604 Cash flows from financing Equity dividends paid (6,124) (11,746) (393) (226) (392) (267) (189) (19,337) Share issue costs - (30) (52) (23) (16) (12) (20) (153) Purchase of own shares - - (8) - (30) - - (38) Net cash outflow from financing (6,124) (11,776) (453) (249) (438) (279) (209) (19,528) Net increase in cash 11 242 159 911 2,186 1,556 4,011 9,076 Cash and cash equivalents at the start of the year 65 392 - - - - - 457 Cash and cash equivalents at end of year 76 634 159 911 2,186 1,556 4,011 9,533 Cash and cash equivalents comprise Cash at bank and in hand 76 634 159 911 2,186 1,556 4,011 9,533 Total cash and cash equivalents 76 634 159 911 2,186 1,556 4,011 9,533 STATEMENT OF CASH FLOWS for the year ended 31 March 2015 Year ended 31 March 2015 DP2011 DSO Ord DSO B DSO D Gen Share Share Share DP67 Share Share DP2011 Struc Share DP2011 pool pool pool pool pool pool LC Share pool Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Cash flows from operating activities Return on ordinary activities before taxation 492 249 232 - - - - 973 Losses/(gains) on investments 529 487 (135) - - - - 881 Decrease/(increase) in debtors 71 (156) (44) - - - - (129) (Decrease)/increase in creditors (17) (28) 40 - - - - (5) Net cash from operating activities 1,075 552 93 - - - - 1,720 Corporation tax paid (90) (127) (5) - - - - (222) New cash generated from operating activities 985 425 88 - - - - 1,498 Cash flow from investing activities Purchase of investments (4) (2,410) (1,844) - - - - (4,258) Proceeds from disposal of investments 2,214 2,782 963 - - - - 5,959 Movements in deposit held for purchase of investments - - 294 - - - - 294 Net cash inflow/(outflow) from investing activities 2,210 372 (587) - - - - 1,995 Net cash outflow before financing (1,180) (1,691) (892) - - - - (3,763) Cash flows from financing Equity dividends paid (4,375) (2,488) (393) - - - - (7,256) Net cash outflow from financing (4,375) (2,488) (393) - - - - (7,256) Net decrease in cash (1,180) (1,691) (892) - - - - (3,763) Cash and cash equivalents at the start of the year 1,245 2,083 892 - - - - 4,220 Cash and cash equivalents at end of year 65 392 - - - - - 457 Cash and cash equivalents comprise Cash at bank and in hand 65 392 - - - - - 457 Total cash and cash equivalents 65 392 - - - - - 457 NOTES TO THE ACCOUNTS for the year ended 31 March 2016 1. Accounting policies Basis of accounting The Company has prepared its financial statements in accordance with the Financial Reporting Standard 102 ("FRS 102") and in accordance with the Statement of Recommended Practice "Financial Statements of Investment Trust Companies and Venture Capital Trusts" revised November 2014 ("SORP"). The Company implements new Financial Reporting Standards ("FRS") issued by the Financial Reporting Council when required. The financial statements are presented in pounds sterling and rounded to
thousands. The Company's functional and presentation currency is pounds sterling. Presentation of Income Statement In order to better reflect the activities of a Venture Capital Trust, and in accordance with the SORP, supplementary information which analyses the Income Statement between items of a revenue and capital nature has been presented alongside the Income Statement. The revenue return is the measure the Directors believe appropriate in assessing the Company's compliance with certain requirements set out in Part 6 of the Income Tax Act 2007. Judgements in applying accounting policies and key sources of estimation uncertainty Investments All investments are designated as "fair value through profit or loss" assets due to investments being managed and performance evaluated on a fair value basis. A financial asset is designated within this category if it is both acquired and managed on a fair value basis, with a view to selling after a period of time, in accordance with the Company's documented investment policy. It is possible to determine the fair values within a reasonable range of estimates. The fair value of an investment upon acquisition is deemed to be cost. Thereafter investments are measured at fair value in accordance with FRS 102 sections 11 and 12, together with the International Private Equity and Venture Capital Valuation Guidelines ("IPEV"). Structured Product investments are measured using bid prices in accordance with the IPEV. For unquoted investments, fair value is established by using the IPEV guidelines. The valuation methodologies for unquoted entities used by the IPEV to ascertain the fair value of an investment are as follows: *Price of recent investment; *Multiples; *Net assets; *Discounted cash flows or earnings (of underlying business); *Discounted cash flows (from the investment); and *Industry valuation benchmarks. The methodology applied takes account of the nature, facts and circumstances of the individual investment and uses reasonable data, market inputs, assumptions and estimates in order to ascertain fair value. Gains and losses arising from changes in fair value are included in the Income Statement for the year as a capital item and transaction costs on acquisition or disposal of the investment are expensed. Where an investee company has gone into receivership or liquidation, or administration (where there is little likelihood of recovery), the loss on the investment, although not physically disposed of, is treated as being realised. It is not the Company's policy to exercise significant influence or joint control over investee companies. Therefore, the results of these companies are not incorporated into the Income Statement except to the extent of any income accrued. This is in accordance with FRS 102 sections 14 and 15 and the SORP that does not require portfolio investments to be accounted for using the equity method of accounting. Income Dividend income from investments is recognised when the Shareholders' rights to receive payment has been established, normally the ex-dividend date. Interest income is accrued on a time apportionment basis, by reference to the principal sum outstanding and at the effective rate applicable and only where there is reasonable certainty of collection in the foreseeable future. Expenses All expenses are accounted for on an accruals basis. In respect of the analysis between revenue and capital items presented within the Income Statement, all expenses have been presented as revenue items except as follows: *Expenses which are incidental to the disposal of an investment are deducted from the disposal proceeds of the investment. *Expenses are split and presented partly as capital items where a connection with the maintenance or enhancement of the value of the investments held can be demonstrated. The Company has adopted a policy of charging 50% of the investment management fees to the revenue account and 50% to the capital account to reflect the Board's estimated split of investment returns which will be achieved by the company over the long term. Expenses and liabilities not specific to a share class are generally allocated pro rata to the net assets. Taxation The tax effects on different items in the Income Statement are allocated between capital and revenue on the same basis as the particular item to which they relate, using the Company's effective rate of tax for the accounting period. Due to the Company's status as a Venture Capital Trust, and the continued intention to meet the conditions required to comply with Part 6 of the Income Tax Act 2007, no provision for taxation is required in respect of any realised or unrealised appreciation of the Company's investments which arises. Deferred taxation, which is not discounted, is provided in full on timing differences that result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the accounts. Other debtors and other creditors Other debtors (including accrued income and loan notes other than those held as part of the investment portfolio and other creditors are included within the accounts at amortised cost. Issue costs Issue costs in relation to the shares issued for each share class have been deducted from the share premium account for the relevant share class. Acquisitions Acquisitions made during the year are accounted for using the acquisition method. The purchase consideration is measured at the fair value of equity issued compared to the fair value of the assets and liabilities acquired. 2. Basic and diluted return per share Weighted average number Revenue Capital of shares in issue Return gain/(loss) Return per share is calculated on the following: GBP'000 GBP'000 Year ended 31 DSO Ordinary March 2016 Shares 10,228,157 328 243 DSO A Shares 15,506,488 - - DSO B Shares 19,911,070 736 559 DSO C Shares 29,926,070 - - DSO D Shares 7,814,325 129 (81) DP67 Shares 11,320,258 93 166 DP2011 General Shares 15,663,577 383 (351) DP2011 General A Shares 18,438,125 - - DP2011 Structured Shares 10,678,725 247 (257) DP2011 Structured A Shares 12,572,817 - - DP2011 Low Carbon Shares 7,575,419 211 213 Year ended 31 DSO Ordinary March 2015 Shares 10,288,157 1,032 (601) DSO A Shares 15,506,488 - - DSO B Shares 19,911,070 687 (605) DSO C Shares 29,926,070 - - DSO D Shares 7,877,527 120 84 As the Company has not issued any convertible securities or share options, there is no dilutive effect on return per DSO Ordinary Share, DSO A Share, DSO B Share, DSO C Share, DSO D Share, DP67 Share, DP2011 General Share, DP2011 General A Share, DP2011 Structured Ordinary Share, DP2011 Structured A Share or DP2011 Low Carbon Share. The return per share disclosed therefore represents both the basic and diluted return per Share for all classes of share. 3. Basic and diluted net asset value per share 2016 2015 Net asset value Net asset value Pence per Pence per Shares in issue share GBP'000 share GBP'000 2016 2015 DSO Ordinary Shares 10,288,157 10,288,157 - 3 53.8 5,545 DSO A Shares 15,506,488 15,506,488 - - 0.1 10 DSO B Shares 19,911,070 19,911,070 17.6 3,508 70.2 13,989 DSO C Shares 29,926,070 29,926,070 0.1 20 0.1 20 DSO D Shares 7,867,247 7,877,527 75.6 5,945 80.7 6,351 DP67 Shares 11,320,258 - 60.4 6,837 - - DP2011 General Ordinary Shares 15,644,066 - 76.1 11,900 - - DP2011 General A Shares 18,418,614 - 5.9 926 - - DP2011 Structured Ordinary Shares 10,678,725 - 78.2 8,349 - - DP2011 Structured A Shares 12,572,817 - 6.1 652 - - DP2011 Low Carbon Shares 7,575,419 - 91.6 6,942 - - Net assets per Balance Sheet 45,082 25,915 The Directors allocate the assets and liabilities of the Company between the DSO Ordinary Shares, DSO A Shares, DSO B Shares, DSO C Shares, DSO D Shares, DP67 Shares, DP2011 General Ordinary Shares, DP2011 General A Shares, DP2011 Structured Shares, DP2011 Structured A Shares and DP2011
Low Carbon Shares such that each share class has sufficient net assets to represent its dividend and return of capital rights. As the Company has not issued any convertible shares or share options, there is no dilutive net asset value per DSO Ordinary Share, per DSO A Share, per DSO B Share, per DSO C Share, per DSO D Share, per DP67 Share, per DP2011 General Ordinary Share, per DP2011 General A Share, per DP2011 Structured Share, per DP2011 Structured A Share or per DP2011 Low Carbon Share. The net asset value per share disclosed therefore represents both the basic and diluted net asset value per DSO Ordinary Share, per DSO A Share, per DSO B Share, per DSO C Share, per DSO D Share, per DP67 Share, per DP2011 General Ordinary Share, per DP2011 General A Share, per DP2011 Structured Share, per DP2011 Structured A Share and per DP2011 Low Carbon Share. 4. Principal risks The Company's investment activities expose the Company to a number of risks associated with financial instruments and the sectors in which the Company invests. The principal financial risks arising from the Company's operations are: *Market risks; *Credit risk; and *Liquidity risk. The Board regularly reviews these risks and the policies in place for managing them. There have been no significant changes to the nature of the risks that the Company is exposed to over the year and there have also been no significant changes to the policies for managing those risks during the year. The risk management policies used by the Company in respect of the principal financial risks and a review of the financial instruments held at the year end are provided below: Market risks As a VCT, the Company is exposed to investment risks in the form of potential losses and gains that may arise on the investments it holds in accordance with its investment policy. The management of these market risks is a fundamental part of investment activities undertaken by the Investment Manager and overseen by the Board. The Manager monitors investments through regular contact with management of investee companies, regular review of management accounts and other financial information and attendance at investee company board meetings. This enables the Manager to manage the investment risk in respect of individual investments. Investment risk is also mitigated by holding a diversified portfolio spread across various business sectors and asset classes. The key market risks to which the Company is exposed are: *Investment price risk; and *Interest rate risk. Investment price risk Investment price risk arises from uncertainty about the future prices and valuations of financial instruments held in accordance with the Company's investment objectives. It represents the potential loss that the Company might suffer through market price movements in respect of Structured Products and also changes in the fair value of unquoted investments that it holds. ANNOUNCEMENT BASED ON AUDITED ACCOUNTS The financial information set out in this announcement does not constitute the Company's statutory financial statements in accordance with section 434 Companies Act 2006 for the year ended 31 March 2016, but has been extracted from the statutory financial statements for the year ended 31 March 2016 which were approved by the Board of Directors on 29 July 2016 and will be delivered to the Registrar of Companies. The Independent Auditor's Report on those financial statements was unqualified and did not contain any emphasis of matter nor statements under s 498(2) and (3) of the Companies Act 2006. The statutory accounts for the year ended 31 March 2015 have been delivered to the Registrar of Companies and received an Independent Auditors report which was unqualified and did not contain any emphasis of matter nor statements under s 498(2) and (3) of the Companies Act 2006. This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients. The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Downing FOUR VCT plc via Globenewswire HUG#2032043
(END) Dow Jones Newswires
July 29, 2016 11:25 ET (15:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
1 Year Down. 4 Dso Ord Chart |
1 Month Down. 4 Dso Ord Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
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