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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Downing One Vct Plc | LSE:DDV1 | London | Ordinary Share | GB00BFRSVQ41 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 57.00 | 56.00 | 58.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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Downing ONE VCT plc
Half-Yearly Report for the six months ended 30 September 2016
FINANCIAL SUMMARY
30 31 30
Sep Mar Sep Nov
2016 2016 2015 2013
(merger)
pence pence pence pence
Net asset value per share ("NAV") 93.1 94.1 98.1 100.4
Cumulative dividends paid since 12 November 2013 15.0 12.0 9.0 0.0
Total return 108.1 106.1 107.1 100.4
(net asset value plus cumulative dividends paid per
share)
CHAIRMAN'S STATEMENT
I am pleased to present the Company's half-yearly report for the six
month period ended 30 September 2016.
The build up to, and repercussions of, the EU Referendum produced
volatile markets during the period. However, after the initial surprise
of the result, markets have recovered. This was reflected in the
performance of the Company which showed a modest improvement over the
six months.
Net asset value and results
As at 30 September 2016, the Company's NAV stood at 93.1p an increase of
2.0p (or 2.2%) compared to the 31 March 2016 year-end position, after
adding back the 3.0p dividend paid during the period.
The return attributable to equity shareholders for the period was GBP1.8
million, comprising a revenue loss of GBP43,000 and a capital return of
GBP1.9 million.
Investment activity and performance
As a result of the successful fundraising, the Company had a significant
level of funds to invest and was an active investor over the period.
The Company was able to invest a significant proportion of these funds
at the start of the period, before new VCT regulations came into force
on 6 April 2016 which have further restricted the types of investments
that VCTs can make in future.
There were 15 realisations during the period although a number were
redemptions of loan stock. The largest realisation was that of Kidspace
Adventure Holdings Limited, where unfortunately this company was unable
to gain planning permission for a new project and ultimately decided to
return funds to the VCT. Proceeds were GBP2.8 million compared to an
original cost of GBP2.6 million.
In total the Company generated GBP5.5 million of disposal proceeds on
investments with a carrying value of GBP5.1 million, giving rise to a
net gain of GBP491,000.
In respect of the existing portfolio, net unrealised gains over the
period were GBP1.7 million.
Further details of the investment activities of the Company are in the
Investment Adviser's Report.
Dividends
The Company's stated policy is to seek to pay dividends of at least 4%
of net asset value each year.
The Company has again achieved a number of realisations and therefore
can pay above this level. An interim dividend of 3.0p will be paid on 24
February 2017 to Shareholders on the register at 3 February 2017, in
line with the usual February and August payment dates.
This will take the total dividends to 18.0p since the merger in November
2013.
Fundraising
The fundraising which launched on 14 December 2015, closed on 30
September 2016 having raised gross proceeds of GBP19.3 million. The
Board consider this to be a very successful result which has provided
the Company with a significant level of additional funds and allows the
Company to participate in new investment opportunities.
While these new funds are being employed, the Board is taking a cautious
approach to further fundraising. Currently there are no firm plans for
a new fundraising for the 2016/17 tax year but the Board will continue
to monitor progress and will, of course, notify shareholders of any
developments.
Share buybacks
The Company operates a policy of buying in its own shares that become
available in the market at a 5% discount to NAV (subject to liquidity
and any regulatory restrictions).
During the period, the Company purchased 1,116,932 shares at an average
price of 87.7p per Ordinary Share, being a 5% discount to the latest
announced NAV at the time of purchase.
Board
It is now three years since Downing ONE was formed by the merger of six
VCTs. Initially the board comprised five directors which ensured that
there was representation from each of the VCTs that merged.
Since then the portfolio has undergone a significant degree of
rationalisation and all of the Directors have become familiar with the
Company's remaining core investments. For this reason, the Directors
have concluded that the Company no longer requires such a large Board
and that a Board comprising three members, being a more typical size for
a VCT, is now more appropriate.
Accordingly, Helen Sinclair and Andrew Griffiths have agreed to resign
and will stand down from the Board on 31 December 2016.
I would personally like to thank Helen and Andrew for their valuable
contributions since their original appointment and the parts they have
played in ensuring that the merger has been a success. It has been a
pleasure working with both of them over the last three years and I wish
them every success in their other ventures.
Outlook
It is clear that the new VCT regulations which have taken effect over
the last year will create new challenges for your Company and, indeed,
all VCTs. There currently appears to be some uncertainty on the
interpretation and application of some of the new regulations and, in
some cases, this is resulting in delays in finalising new investments.
We believe this is a temporary situation while the new rules become more
established. The Investment Adviser, along with most of the VCT industry,
is working with its trade bodies and HMRC to try to address issues that
arise and smooth the transition to the new regulations.
Over the remainder of the year, we expect to see a lower level of new
investment activity, although the Investment Adviser will be committing
significant resources to recent investments made, as those companies
develop their businesses.
Although it is possible that some businesses could be negatively
impacted by developments associated with Brexit over the coming years,
the Board is of the opinion that any effect on our investee companies
should be small. We believe that the portfolio remains in reasonably
good shape and can continue to make steady progress. I look forward to
reporting developments to Shareholders in the Annual Report.
Chris Kay
Chairman
INVESTMENT ADVISER'S REPORT
Introduction
At 30 September 2016, the Company held a portfolio of 93 investments,
valued in total at GBP87.6 million.
Performance over the portfolio has been mixed, however overall there has
been a steady rise in value, in particular for the quoted investments.
Unquoted portfolio
Investment activity
At 30 September 2016 the unquoted portfolio was valued at GBP62.8
million comprising 64 investments, spread across a number of sectors.
Twelve new qualifying investments were made during the last six months
as follows: -
GBP2.5 million was invested in Vectis Alpha Limited which is seeking to
build and develop renewable energy plants.
GBP700,000 was invested in AVID Technologies Group Limited a
manufacturer of electrified ancillaries for internal combustion engines.
Brownfields Trading Limited is seeking to develop small scale waste
disposal projects and GBP2.5 million has been invested in this company.
GBP2.5 million was invested in Yamuna Renewables Limited which is
seeking investment opportunities in the wood refinery sector.
Jito Trading Limited, Morova Limited and Rhodes Solutions Limited are
all exploring opportunities in the wood refinery sector. GBP2.5 million
was invested into each company.
GBP1.5 million was invested into Pantheon Trading Limited which is
seeking to develop and operate roof mounted PV systems in Cyprus.
GBP920,050 was invested into both Ironhide Generation Limited and Indigo
Generation Limited. GBP738,000 was invested in Rockhopper Renewables
and GBP422,000 in SF Renewables (Solar) Limited which are in the process
of acquiring land in India to build and operate 15MW ground mounted
solar arrays.
One non-qualifying investment of GBP5 million was made into DoneLoans
Limited, an investment company which makes secured loans.
Portfolio valuation
A number of adjustments to carrying values have been made at the period
end, the most significant of which are summarised below.
Leytonstone Pub Limited which owns and operates The Red Lion pub in
Leytonstone has been uplifted in value by GBP225,000 to reflect
continued strong performance of the pub.
Cadbury House Holdings owns a DoubleTree by Hilton conference centre
near Bristol. Trading performance has continued to strengthen and the
investment has been further uplifted by GBP200,000.
Fenkle Street LLP is a property development company that purchased a
building in Newcastle and converted it into a hotel. The hotel
continues to trade well and a further uplift of GBP141,000 has been
included to reflect this.
Kimbolton Lodge Limited which operates a care home for the elderly in
Bedford was uplifted by GBP140,000 following an independent valuation of
the business.
Mosaic Spa and Health Clubs was reduced by GBP260,000 in the period,
reflecting continued performance issues at the Shrewsbury site.
Oak Grove Renewables, an anaerobic digestion plant in Norfolk has been
reduced in value by a further GBP142,000 due to continued ongoing issues
at the facility.
Unquoted investments
Portfolio valuation (continued)
The overall movement on the unquoted portfolio was a gain of GBP394,000.
Quoted investments
Investment activity
At 30 September 2016 the quoted portfolio was valued at GBP24.8 million
comprising 31 investments. No new investments were made in the period.
Disposals generated total proceeds of GBP656,000 across three holdings,
realising a gain of GBP128,000. These disposals were made to reduce
fund exposure to specific shareholdings.
Portfolio valuation
The most notable movements in the portfolio over the period were;
Craneware plc, the provider of billing software solutions in the US
healthcare market, saw earnings progress along with forward order book.
Given the confidence in future earnings the company experienced a
re-rating in the period resulting in an increase in value of GBP950,000.
Science in Sport plc, the manufacturer and distributor of nutritional
sports products, also saw its share price appreciate in the period,
providing an unrealised gain of GBP394,000. The positive share price
movement was a result of continued growth in turnover, up 24% at the
interim stage, alongside news that the company is now supplier of
nutritional products to USA Cycling.
Pittards plc, the manufacturer and distributor of speciality leathers,
delivered an unrealised gain of GBP236,000 to the Company as the share
price appreciated on the back of broadly positive interim results and
the potential positive currency tailwinds.
Meanwhile, on the negative side, Sprue Aegis, the manufacturer of smoke
and carbon monoxide alarms experienced further share price malaise
following a recall of some of its smoke alarms after a non-critical
battery problem in some of its products. The effect on the portfolio
was a reduction in value of GBP315,000. Since the period end the
company has announced that the battery issue has been resolved and it
has recommenced product shipment into its key German market. We
continue to believe in the longer term opportunity for Sprue Aegis with
regulatory influences likely to provide opportunity for earnings
progression.
Inland Homes experienced the largest fall in the portfolio of GBP527,000
on the back of post Brexit property concerns which affected the housing
sector. We feel that these fears have been overdone given the nature of
land portfolio and housing demand that Inland has.
Overall the quoted portfolio produced unrealised gains of GBP1.3 million
and realised gains of GBP128,000 over the six months.
Outlook
We remain satisfied with the state of the portfolios. The unquoted
portfolio now comprises a number of investments which are in the process
of commencing new businesses which potentially increases the risk
profile. However, it is the nature of VCTs that they support young
businesses and we believe the Company is well placed to continue
producing a steady return for investors.
Downing LLP
UNAUDITED BALANCE SHEET
as at 30 September 2016
30 Sep 30 Sep
2016 2015 31 Mar 2016
GBP'000 GBP'000 GBP'000
Fixed assets
Investments 87,644 63,931 65,445
Current assets
Debtors 248 867 292
Cash at bank and in hand 8,118 18,118 26,713
8,366 18,985 27,005
Creditors: amounts falling due within one
year (239) (308) (342)
Net current assets 8,127 18,677 26,663
Net assets 95,771 82,608 92,108
Capital and reserves
Called up share capital 1,014 839 932
Capital redemption reserve 1,536 1,517 1,525
Share premium 11,624 75,226 2,792
Share capital to be issued 1,353 271 4,423
Special reserve 81,704 5,702 86,483
Capital reserve - unrealised (2,050) (1,520) (4,680)-
Revenue reserve 590 573 633
Equity shareholders' funds 95,771 82,608 92,108
Basic and diluted net asset value per share 93.1p 98.1p 94.1p
UNAUDITED INCOME STATEMENT
for the six months ended 30 September 2016
Six months ended Six months ended Year ended
30 September 2016 30 September 2015 31 March 2016
Revenue Capital Total Revenue Capital Total Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Income 859 - 859 1,658 - 1,658 2,790
Gains/(losses)
on investments
- realised - 491 491 - 1,329 1,329 3,339
- unrealised - 1,681 1,681 - 1,705 1,705 (1,097)
859 2,172 3,031 1,658 3,034 4,692 5,032
Investment
management
fees (439) (439) (878) (378) (378) (756) (1,512)
Other expenses (331) - (331) (342) - (342) (928)
Return on
ordinary
activities
before tax 89 1,733 1,822 938 2,656 3,594 2,592
Tax on total
comprehensive
income and
ordinary
activities (132) 132 - (119) 119 - -
(Loss)/return
attributable to
equity
shareholders (43) 1,865 1,822 819 2,775 3,594 2,592
Basic and 0.0p 1.0p
diluted return 1.9p 1.9p 3.3p 4.3p 3.0p
per share
The total column within the Income Statement represents the Statement of
Total Comprehensive Income of the Company prepared in accordance with
Financial Reporting Standards ("FRS102"). There are no other items of
comprehensive income. The supplementary revenue and capital return
columns are prepared in accordance with the Statement of Recommended
Practice issued in November 2014 by the Association of Investment
Companies ("AIC SORP").
STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 September 2016
Funds
held in
respect
of
Capital shares Capital
Share redemption Share not yet Special reserve Revaluation Revenue
Capital reserve premium account allotted reserve -realised reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the six months ended 30 September 2016
At 1 April
2016 932 1,525 2,792 4,423 86,483 - (4,680) 633 92,108
Total
comprehensive
income - - - - - 184 1,681 (43) 1,822
Realisation of
revaluations
from previous
years* - - - - - (949) 949 - -
Transfer
between
reserves** - - - - (3,592) 3,592 - - -
Transactions with owners
Dividends paid - - - - - (2,827) - - (2,827)
Unallotted
shares - - - 1,353 - - - - 1,353
Issue of new
shares 93 - 8,832 (4,423) (202) - - - 4,300
Share issue
costs - - - - - - - - -
Purchase of
own shares (11) 11 - - (985) - - - (985)
At 30
September
2016 1,014 1,536 11,624 1,353 81,704 - (2,050) 590 95,771
* A transfer of GBP949,000 representing previously recognised
unrealised gains on disposal of investments during the period ended 30
September 2016 (year ended 31 March 2016: GBP779,000) has been made from
the Capital Reserve realised to the Special reserve.
**A transfer of GBP3.6 million representing realised gains on disposal
of investments, less capital expenses and capital dividends in the year
(year ended 31 March 2016: GBP1.6 million) has been made from Capital
Reserves - realised to Special reserve.
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2016
Capital Funds Capital
Share redemption Share held in respect of shares not yet Special reserve Revaluation Revenue
Capital reserve premium account allotted reserve -realised reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the year ended 31 March 2016
At 1 April
2015 798 1,500 69,714 2,593 7,523 - (2,805) 594 79,917
Total
comprehensive
income - - - - - 2,809 (1,096) 879 2,592
Cancellation
of Share
Premium
account - - (82,321) - 82,321 - - - -
Realisation of
revaluations
from previous
years - - - - - 779 (779) - -
Transfer
between
reserves - - - - (803) 803 - - -
Transactions with
owners
Dividends paid - - - - - (4,391) - (840) (5,231)
Unallotted
shares - - - 4,423 - - - - 4,423
Issue of new
shares 159 - 15,399 (2,593) - - - - 12,965
Share issue
costs - - - - (296) - - - (296)
Purchase of
own shares (25) 25 - - (2,262) - - - (2,262)
At 31 March
2016 932 1,525 2,792 4,423 86,483 - (4,680) 633 92,108
UNAUDITED CASH FLOW STATEMENT
for the six months ended 30 September 2016
30 Sep 30 Sep 31 Mar
2016 2015 2016
GBP'000 GBP'000 GBP'000
Cash flow from operating activities
Profit on ordinary activities before taxation 1,822 3,594 2,592
Gains on investments (2,172) (3,034) (2,242)
Decrease/(Increase) in debtors 44 (363) 300
Decrease in creditors (102) (419) (385)
Cash from operations
Corporation tax paid - - -
Net cash (utilised)/generated from operating activities (408) (222) 265
Cash flow from investing activities
Purchase of investments (25,577) (8,180) (21,456)
Proceeds from disposal of investments 5,549 16,567 27,448
Net cash (utilised)/generated from investing activities (20,028) 8,387 5,992
Cash flows from financing activities
Proceeds from share issue 8,925 5,570 15,352
Funds held in respect of shares not yet allotted (3,070) (2,321) 1,831
Share issue costs (202) (116) (296)
Purchase of own shares (985) (1,517) (2,262)
Equity dividends paid (2,827) (2,520) (5,026)
Net cash generated/(utilised) from financing activities 1,841 (904) 9,599
(Decrease)/increase in cash (18,595) 7,261 15,856
Net increase in cash
Beginning of year 26,713 10,857 10,857
Net cash (outflow)/inflow (18,595) 7,261 15,856
End of year 8,118 18,118 26,713
SUMMARY OF INVESTMENT PORTFOLIO
as at 30 September 2016
Valuation
movement % of portfolio
Cost Valuation in period by value
GBP'000 GBP'000 GBP'000
Top ten venture capital
investments (by value)
Vulcan Renewables Limited 5,030 5,548 - 5.8%
DoneLoans Limited 5,000 5,000 - 5.2%
Downing Care Homes Holdings
Limited 3,880 4,250 - 4.4%
Tracsis plc* 1,443 3,969 116 4.1%
Cadbury House Holdings Limited 3,082 3,075 200 3.2%
Baron House Developments LLP 2,695 2,695 - 2.8%
Universe Group plc* 1,506 2,561 - 2.7%
Brownfields Trading Limited 2,500 2,500 - 2.6%
Jito Trading Limited 2,500 2,500 - 2.6%
Morova Limited 2,500 2,500 - 2.6%
30,136 34,598 316 36.0%
Other venture capital
investments 60,333 53,046 1,365 55.4%
90,469 87,644 1,681 91.4%
Cash at bank and in hand 8,118 8.6%
Total investments 95,762 100.0%
All venture capital investments are unquoted unless otherwise stated.
*quoted on AIM
SUMMARY OF INVESTMENT MOVEMENTS
for the six months ended 30 September 2016
Additions
GBP'000
Quoted
SysGroup plc 377
377
Unquoted
DoneLoans Limited 5,000
Brownfields Trading Limited 2,500
Yamuna Renewables Limited 2,500
Vectis Alpha Limited 2,500
Morova Limited 2,500
Jito Trading Limited 2,500
Rhodes Solutions Limited 2,500
Pantheon Trading Limited 1,500
Ironhide Generation Limited 1,500
Indigo Generation Limited 920
Rockhopper Renewables Limited 920
Avid Technologies Group Limited 738
SF Renewables (Solar) Limited 700
422
25,200
Total additions 25,577
Disposals
Gain/(loss) Realised
Value at against gain/(loss)
Cost 31/03/16 Disposal Proceeds cost in period
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Quoted
Market sales
Science in
Sport plc 447 385 515 68 130
Avacta plc 79 101 85 6 (16)
PHSC plc 52 42 56 4 14
578 528 656 78 128
Unquoted
Including loan
note
redemptions
Kidspace
(Holdings)
Limited 2,577 2,773 2,787 210 14
Hobblers Heath
Limited 912 912 912 - -
Kidspace
Adventures
Limited 261 261 261 - -
Tramps
Nightclub
Limited 170 102 200 30 98
Quadrate
Catering
Limited 35 35 195 160 160
Future Biogas
(Reepham Road)
Limited 174 130 174 - 44
Aminghurst
Limited 166 166 166 - -
Future Biogas
(SF) Limited 131 131 131 - -
Redmed Limited 62 20 22 (40) 2
Kilmarnock
Monkey Bar
Limited - - 16 16 16
Camandale
Limited - - 15 15 15
Liverpool
Nurseries
(Holdings)
Limited - - 14 14 14
Rostima
Holdings
Limited 1,042 - - (1,042) -
5,530 4,530 4,893 (637) 363
6,108 5,058 5,549 (559) 491
* adjusted for purchases in the period
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
for the six months ended 30 September 2016
1.General Information
Downing ONE VCT plc ("the Company") is a Venture Capital Trust
established under the legislation introduced in the Finance Act 1995 and
is domiciled in the United Kingdom and incorporated in England and
Wales.
2.Basis of accounting
The unaudited half-yearly financial results cover the six months to 30
September 2016 and have been prepared in accordance with the accounting
policies set out in the statutory accounts for the year ended 31 March
2016, which were prepared in accordance with the Financial Reporting
Standard 102 ("FRS102") and in accordance with the Statement of
Recommended Practice "Financial Statements of Investment Trust
Companies" revised November 2014 ("SORP").
3.The Company has only one class of business and derives its income from
investments made in shares, securities and bank deposits.
4.The comparative figures were in respect of the six months ended 30
September 2015 and the year ended 31 March 2016 respectively.
5.Return per share
Weighted average Revenue Capital
number of shares in issue (loss)/return Gain
GBP'000 GBP'000
Period ended 30 September 2016 99,896,761 (43) 1,865
Period ended 30 September 2015 83,951,159 819 2,775
Year ended 31 March 2016 85,175,415 879 1,713
6.Dividends paid in the period
Year ended
Six months ended 31 March
30 September 2016 2016
Revenue Capital Total Total
Date paid GBP'000 GBP'000 GBP'000 GBP'000
2016 Final 12 August 2016: 3.0p - 2,827 2,827 -
2016 Interim 26 February 2016: 3.0p - - - 2,711
2015 Final 7 August 2015: 3.0p - - - 2,520
- 2,827 2,827 5,231
7.Basic and diluted net asset value per share
NAV per
Shares in issue Net assets share
GBP'000 pence
Period ended 30 September 2016 101,392,582 95,771 93.1
Period ended 30 September 2015 83,896,034 82,608 98.1
Year ended 31 March 2016 93,220,222 92,108 94.1
8.Called up share capital
Shares in issue GBP'000
Period ended 30 September 2016 101,392,582 1,014
Period ended 30 September 2015 83,896,034 839
Year ended 31 March 2016 93,220,222 932
9.Reserves
The Special reserve is available to the Company to enable the purchase
of its own shares in the market without affecting its ability to pay
dividends/capital distributions.
30 Sep 30 Sep 31 Mar
2016 2015 2016
GBP'000 GBP'000 GBP'000
Capital redemption reserve 1,536 1,517 1,525
Share premium account 11,624 75,226 2,792
Funds held in respect of shares not yet
allotted 1,353 271 4,423
Special reserve 81,704 5,702 86,483
Revaluation reserve (2,050) (1,520) (4,680)
Revenue reserve 590 573 633
Total reserves 94,757 81,769 91,176
Distributable reserves are calculated as follows:
30 Sep 30 Sep 31 Mar
2016 2015 2016
GBP'000 GBP'000 GBP'000
Special reserve 81,704 5,702 86,483
Revenue reserve 590 573 633
Unrealised losses (excluding unrealised
unquoted gains) (10,567) (4,208) (7,214)
71,727 2,067 79,902
10. Investments
The fair value of investments is determined using the detailed
accounting policy as shown in the audited financial statements for the
year ended 31 March 2016. The Company has categorised its financial
instruments using the fair value hierarchy as follows:
The Company has categorised its financial instruments using the fair
value hierarchy as follows:
Level a Reflects financial instruments quoted in an active market
(quoted companies and fixed interest bonds);
Level b Reflects financial instruments that have prices that are
observable either directly or indirectly; and
Level c i) Reflects financial instruments that use valuation
techniques that are based on observable market data.
ii) Reflects financial instruments that use valuation techniques that
are not based on observable market data (investments in unquoted shares
and loan note investments).
30 Sep 31 Mar
Level a Level b Level c (ii) 2016 Level a Level b Level c (ii) 2016
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Quoted on
AIM 24,857 - - 24,857 23,721 - - 23,721
Quoted on
ISDX 30 - - 30 30 - - 30
Unquoted
loan
notes - - 26,841 26,841 - - 24,489 24,489
Unquoted
equity - - 35,916 35,916 - - 17,205 17,205
24,887 - 62,757 87,644 23,751 - 41,694 65,445
11. The unaudited financial statements set out herein do not
constitute statutory accounts within the meaning of Section 434 of the
Companies Act 2006 and have not been delivered to the Registrar of
Companies. The figures for the year ended 31 March 2016 have been
extracted from the financial statements for that year, which have been
delivered to the Registrar of Companies; the Auditor's report on those
financial statements was unqualified.
12. Going concern
The Directors have reviewed the Company's financial resources at the
period end and concluded that the Company is well placed to manage its
business risks.
The Directors confirm that they are satisfied that the Company has
adequate resources to continue to operate for the foreseeable future.
For this reason, the Directors believe that the Company continues to be
a going concern and that it is appropriate to apply the going concern
basis in preparing the financial statements.
13. Risks and uncertainties
Under the Disclosure and Transparency Rules, the Board is required, in
the Company's half-year results, to report on principal risks and
uncertainties facing the Company over the remainder of the financial
year.
The Board has concluded that the key risks are:
(i) compliance risk of failure to maintain approval as a VCT; and
(ii) investment risk associated with investing in small and immature
businesses.
The Company's compliance with the VCT regulations is continually
monitored by the Adviser, who regularly reports to the Board on the
current position. The Company also retains Philip Hare & Associates LLP
to provide regular reviews and advice in this area.
In order to make VCT qualifying investments, the Company has to invest
in small businesses which are often immature. It also has a limited
period in which it must invest the majority of its funds into VCT
qualifying investments. The Adviser follows a rigorous process in
vetting and careful structuring of new investments, including taking a
charge over the assets of the business wherever possible and, after an
investment is made, closely monitoring the business.
The Board is satisfied that these approaches provide satisfactory
management of the key risks.
14.The Directors confirm that, to the best of their knowledge, the half
yearly financial report has been prepared in accordance with the
"Statement: Half-Yearly Financial Reports" issued by the UK Accounting
Standards Board and the half-yearly financial report includes a fair
review of the information required by:
(a) DTR 4.2.7R of the Disclosure 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, and a description of the principal risks and
uncertainties for the remaining six months of the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related
party transactions that have taken place during 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.
15. Copies of the unaudited half-yearly financial results will be sent
to Shareholders shortly. Further copies can be obtained from the
Company's Registered Office and will be available for download from
www.downing.co.uk
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq 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 ONE VCT plc via Globenewswire
(END) Dow Jones Newswires
December 06, 2016 08:07 ET (13:07 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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