Final Results

 
TIDMFAME 
 
Framlington AIM VCT PLC 
 
Announcement of results for the year ended 30 September 2011 
 
Chairman's Statement 
 
The year to 30 September 2011 saw large swings in sentiment and huge volatility 
in equity markets. The Sovereign Debt Crisis in the Eurozone has worsened. 
Large budget deficits in many European countries led to painful cuts in public 
spending, which together with tax increases threaten to tip many countries back 
into recession. 
 
After the good rises in equity markets in the first quarter of the financial 
year, the second half of the year saw equity markets fall. Slowing growth rates 
brought commodity prices down (with oil being relatively unscathed) which 
adversely affected the AIM market with its high resource weighting. In 
addition, as investors became more risk averse small companies in the main 
underperformed. In particular early stage companies were not given the benefit 
of any doubt with many having to raise additional capital normally to the 
detriment of existing holders. 
 
During the year the Company's net asset value fell from 44.22p to 41.82p. After 
allowing for the payment of the dividend of 3.5p the total return for the year 
was +1.1p or 2.5%. This compares with a fall in the AIM Index (total return) of 
9.8%. Within the portfolio, Brooks Macdonald continued to perform well while 
AFC Energy, Angle, Noble Group and Plastics Capital all made good progress. 
Companies that needed to raise additional capital and performed poorly were 
Energetix, Plethora and Tristel. Other poor performers included BGlobal, 
T.Clarke, Hightex and Nanoco. Further details are included in the fund 
manager's report as are details of new purchases. 
 
It is hard to see an easy recovery in the AIM market given the turbulent global 
economic conditions. Your Board has, given the disappointing performance of the 
AIM market, been considering for some time a new strategic direction for the 
Company. Experience over the last few years has shown that AIM is not 
necessarily the best place for VCT funds with VCTs specialising in unquoted 
investments in general having offered better returns. 
 
We have therefore decided to change the manager of the Company to a manager 
that specialises in managing both AIM and unquoted investments. After 
considerable analysis, which is detailed later in this Report, your Board has 
decided to appoint Downing LLP as the new Manager of the Company. Following 
this appointment, the name of the Company will be changed to Downing Income VCT 
4 PLC. 
 
As part of this agreement, Downing has committed to conduct an additional 
fundraising for the Company which should make the running of the Company more 
economic and provide additional funds for investment. This will also enable the 
Company to operate a share buy back policy nearer to net asset value, which may 
also have a positive impact on the Company's share price. 
 
Downing has also agreed to manage the Company for a lower annual fee of 1.8%, 
and to institute a lower overall cost cap of 3%, which is one of the lowest in 
the VCT industry. 
 
Shareholders have the opportunity to vote at the AGM that the Company shall 
continue in being as a venture capital trust. If shareholders were instead to 
decide that the Company should be wound up, it should be noted that due to the 
illiquid nature of the Company's investments, and as the market would know that 
the Company is a forced seller, there is a good chance that total proceeds from 
a wind up may be considerably below current net asset value and possibly not 
much above the current depressed share price. 
 
For this reason your Board recommends that the Company continue as a venture 
capital trust with a change of Manager, and recommends that shareholders vote 
in favour of the resolution to amend the Company's investment policy at the 
forthcoming AGM. More detail is given in the following section about the 
proposed changes. 
 
I am pleased to report that the Board is recommending a final capital dividend 
of 2.50 pence per share. This will take total dividends paid to shareholders by 
the Company since launch to 31.00 pence per share. If approved by shareholders 
at the AGM, the dividend will be paid on 20 March 2012 to shareholders on the 
register at 24 February 2012. Dividends paid by the Company are exempt from 
income tax. 
 
Continuation vote and change of manager 
 
The Company's Articles of Association require the Board to propose an ordinary 
resolution at the AGM to be held in 2012 to the effect that the Company shall 
continue in being as a venture capital trust. Accordingly, a resolution to this 
effect is included in the notice of AGM which is included in the Report and 
Accounts for the year ended 30 September 2011. If the resolution is not passed 
at the AGM, the Directors must convene a general meeting of the Company within 
nine months at which a special resolution shall be proposed requiring the 
Company to be wound up voluntarily. Further details of the resolution are 
included in the Report of the Directors in the Report and Accounts. 
 
In preparation for this resolution, the Board has reviewed the performance of 
the Company since its launch in 2004 and, as noted above, has concluded that, 
it would be in the best interests of shareholders to change the investment 
manager of the Company. The Board therefore invited a number of experienced 
investment managers to submit their proposals for taking over the management of 
the Company and after due consideration, has decided to appoint Downing LLP as 
the Company's investment manager. The appointment of Downing LLP is currently 
expected to be effective from 1 March 2012. 
 
Downing LLP is an experienced and successful VCT manager with funds under 
management of approximately GBP285m. It proposes, subject to shareholder approval 
and the passing of the continuation vote, to follow a different investment 
strategy. Downing will, over time, transfer around half of the qualifying 
investments into unquoted companies which have the ability to generate 
attractive returns. It will in the process manage a careful selling programme 
of a number of the Company's AIM stocks and will focus upon the AIM stocks 
where it believes there is the most opportunity for upside. This change of 
strategy will reduce the Company's exposure to the AIM market, which has been 
volatile, and broaden the investments in the portfolio to include private 
equity backed businesses. A resolution to amend the Company's investment policy 
to reflect this change of strategy will be put to shareholders at the 
forthcoming AGM. 
 
The Board would like to thank AXA Framlington for its work as investment 
manager to the Company since launch and for its co-operation in the change of 
investment manager. The Board gave 12 months' notice to AXA Framlington under 
its investment management agreement in October 2011. AXA Framlington has kindly 
agreed to waive payment of the final seven months' worth of its fee due to 31 
October 2012. 
 
The AGM will be held at 12.30 pm on 13 March 2012 at 25 Southampton Buildings, 
London WC2A 1AL. 
 
Finally, I would like to take this opportunity to thank shareholders for their 
continued support. 
 
Tim How 
 
Chairman 
 
31 January 2012 
 
Investment manager's report 
 
Once again there has been a wide diversity in performance. Well established and 
more substantial companies that have continued to deliver good growth have 
performed well. Inevitably with the qualifying investment rules these types of 
holdings are in the minority. Brooks Macdonald performed well as they continued 
to see good growth in funds under management. Craneware saw continued strong 
growth bolstered by the successful acquisition of ClaimTrust. Another strong 
stock was Noble Investments who specialise in trading in ancient coins. 
Business benefited from the financial stress as investors sought alternative 
assets. Prospects look good for this year as they won the right to auction one 
of the world's most important collections - The Prospero Collection - in the 
new year in New York. 
 
The second category of holding is smaller profitable businesses. Many of these 
companies saw their share price suffer from a lack of investor interest 
irrespective of how the underlying trading was. Plastics Capital performed well 
as stronger trading and good cash flow reduced debt enabling the shares to be 
modestly rerated. Cohort rallied after the problems of the prior year as the 
directors embarked on a strategic review to try and narrow the discount between 
the share price and the fundamental value. 
 
As always any disappointing trading saw share prices fall sharply. In this 
category there were very poor performances from Hightex who saw cost overruns 
and an absence of new contracts, T Clarke on margin pressure and Imagelinx who 
lost their biggest customer - Procter and Gamble. 
 
The final category of holding is earlier stage companies. Performance was very 
mixed depending on progress. AFC Energy performed well in the early part of the 
Company's year as they made good progress on commercialising their low cost 
alkaline fuel cell system. Some profits were taken at the higher levels before 
the shares fell back in the summer's market malaise. Despite this pull back 
they were still well up in the year. The major success was Angle whose 90% 
owned subsidiary successfully demonstrated the ability to separate breast and 
prostate cancer cells from the bloodstream opening up a large potential market. 
This development was funded by a placing at 25p in which we participated. They 
closed the year at 68p and some profits have been taken. 
 
Poor performers in this category included BGlobal whose business was adversely 
affected by the government's decision to defer the national roll out of smart 
meters until 2014. Nanoco's shares were weak despite making good commercial 
progress with their global multinational partners. Companies that had to raise 
further capital to help them reach sustainable positive cash flows again 
suffered. These included Tristel, Cyan Holdings and 3D Diagnostics. The latter 
was particularly disappointing as the holding was a new holding from earlier in 
the year. The company has an innovative technology which enables dentists to 
detect dental cavities earlier. They experienced difficulties in receiving 
consistent parts from a subcontractor which caused cash levels to become very 
tight. However, they have been very successful in appointing quality 
distributors around the world. 
 
Other new qualifying purchases were made in Instem Life Science Systems, Brady, 
Manroy, Music Festivals and Wheelsure. Further profits were taken in Brooks 
Macdonald and Craneware while Allied Domecq bonds, Chime Communications, 
Powerflute and GTL Resources were sold. In addition the proceeds from the 
takeovers of Neutrahealth, Mount Engineering and System C Software were 
received. 
 
As detailed earlier in this report, investment wholly in AIM companies has not 
been a successful strategy for this Company. For this reason your Board has 
reviewed alternative strategic directions for the Company and AXA Framlington 
has agreed to stand down as the fund manager. We wish shareholders every 
success in the future and are confident that Downing will work hard to recover 
value for shareholders. 
 
George Luckraft 
 
AXA Framlington 
 
31 January 2012 
 
Income Statement 
 
                          For the year ended 30       For the year ended 30 
                              September 2011       September 2010 (as restated 
                                                                *) 
 
                         Revenue  Capital    Total   Revenue   Capital    Total 
 
                          Return   Return             Return    Return 
 
                           GBP000s    GBP000s    GBP000s     GBP000s     GBP000s    GBP000s 
 
Realised gains on              -      371      371         -       468      468 
investments 
 
Unrealised (losses)/           -     (48)     (48)         -       259      259 
gains on investments 
 
Income                       132        -      132       185         -      185 
 
Investment management       (51)    (152)    (203)      (47)     (141)    (188) 
fee 
 
Other expenses             (151)        -    (151)     (159)         -    (159) 
 
Net (loss)/return on        (70)      171      101      (21)       586      565 
ordinary activities 
before taxation 
 
Taxation on ordinary           -        -        -         -         -        - 
activities 
 
(Loss)/return on            (70)      171      101      (21)       586      565 
ordinary activities 
after tax for the year 
 
(Loss)/return per        (0.32)p    0.78p    0.46p   (0.09)p     2.55p    2.46p 
ordinary share: Basic 
and diluted 
 
 
The total column of this statement represents the Company's statutory profit 
and loss account. 
 
All items in the above statement derive from continuing operations and the 
Company has no other gains and losses, hence no Statement of Total Recognised 
Gains and Losses is presented. No operations were acquired or discontinued in 
the year. 
 
The supplementary revenue and capital columns are both prepared on a memorandum 
basis by applying the principles of the Statement of Recommended Practice 
("SORP"), published by the Association of Investment Companies in January 2009. 
 
Other than revaluation movements arising on investments held at fair value 
through the Income Statement, there were no differences between the return/ 
(loss) as stated above and at historical cost. 
 
* The comparative figures for realised and unrealised gains have been restated. 
The change is purely presentational and has not resulted in a change of 
previously reported results. 
 
Reconciliation of movement in shareholders' funds 
 
                                      Distributable    Capital 
 
                       Share    Share       Special Redemption Retained 
 
                     Capital  Premium       Reserve    Reserve Earnings    Total 
 
                       GBP000s    GBP000s         GBP000s      GBP000s    GBP000s    GBP000s 
 
At 30 September        2,321      117        17,823        190  (9,667)   10,784 
2009 
 
Share buybacks          (56)        -         (179)         56        -    (179) 
 
Transfer from              -        -         (575)          -      575        - 
distributable 
special reserve 
 
Dividends paid in          -        -             -          -  (1,155)  (1,155) 
respect of the year 
ended 30 September 
2009 
 
Return on ordinary         -        -             -          -      565      565 
activities 
 
At 30 September        2,265      117        17,069        246  (9,682)   10,015 
2010 
 
Share buybacks         (124)        -         (385)        124        -    (385) 
 
Transfer from              -        -       (3,116)          -    3,116        - 
distributable 
special reserve 
 
Dividends paid in          -        -             -          -    (779)    (779) 
respect of the year 
ended 30 September 
2010 
 
Return on ordinary         -        -             -          -      101      101 
activities 
 
At 30 September        2,141      117        13,568        370  (7,244)    8,952 
2011 
 
Balance sheet as at 30 September 
 
                                                    2011       2010 
 
                                                   GBP000s      GBP000s 
 
Fixed assets                                         8,851        9,740 
 
Fixed asset investments held at fair value 
through profit or loss 
 
Current assets 
 
Debtors                                                 68           71 
 
Cash at bank                                           157          286 
 
                                                       225          357 
 
Creditors: amounts falling due within one year       (124)         (82) 
 
Net current assets                                     101          275 
 
Net assets                                           8,952       10,015 
 
Capital and reserves 
 
Called up share capital                              2,141        2,265 
 
Capital redemption reserve                             370          246 
 
Share premium account                                  117          117 
 
Distributable special reserve                       13,568       17,069 
 
Retained earnings                                  (7,244)      (9,682) 
 
Equity shareholders' funds                           8,952       10,015 
 
Net asset value per share 
 
Basic and diluted                                   41.82p       44.22p 
 
Cash Flow Statement 
 
                                                 For the year    For the year 
                                                     ended 30        ended 30 
                                               September 2011  September 2010 
 
                                                        GBP000s           GBP000s 
 
Operating activities 
 
Cash received from investments                            153             204 
 
Interest received                                           1               1 
 
Revenue investment management fee                        (50)            (47) 
 
Cash paid to and on behalf of directors                  (44)            (44) 
 
Other cash payments                                      (92)           (132) 
 
Net cash outflow from operating activities               (32)            (18) 
 
Servicing of finance 
 
Interest paid                                               -               - 
 
Taxation 
 
Taxation recovered                                          -               - 
 
Capital expenditure and financial investment 
 
Net sales of investments                                1,218           1,271 
 
Capital investment management fee                       (151)           (141) 
 
Equity dividends 
 
Dividends paid                                          (779)         (1,155) 
 
Net cash inflow/(outflow) before financing                256            (43) 
 
Financing 
 
Cost of shares re-purchased                             (385)           (179) 
 
Net cash outflow from financing                         (385)           (179) 
 
Decrease in cash                                        (129)           (222) 
 
Notes: 
 
1 The financial information set out in the announcement does not constitute the 
Company's statutory accounts for the years ended 30 September 2011 or 2010. 
 
The statutory accounts for the year ended 30 September 2011 have been prepared 
on the basis of the financial information presented by the directors in this 
announcement and will be delivered to the Registrar of Companies following the 
Company's annual general meeting. The financial information for the year ended 
30 September 2010 is derived from the statutory accounts for that year which 
have been delivered to the Registrar of Companies. The auditors reported on 
those accounts; their report was unqualified and did not contain any emphasis 
of matter or a statement under s498 Companies Act 2006. 
 
The financial information has been prepared on the basis of the accounting 
policies set out in the Company's financial statements for the year ended 30 
September 2010 which are also adopted in the financial statements for the year 
ended 30 September 2011. 
 
2 Income 
 
                                          Year ended         Year ended 
 
                                   30 September 2011  30 September 2010 
 
                                               GBP000s              GBP000s 
 
Income from investments 
 
UK Dividend income                               110                118 
 
Unfranked investment income                       22                 66 
 
                                                 132                184 
 
Other income 
 
Interest earned                                    -                  1 
 
Total income                                     132                185 
 
Income from investments 
 
Listed UK                                         19                 75 
 
AIM traded                                       105                106 
 
PLUS market                                        8                  - 
 
Unlisted                                           -                  3 
 
                                                 132                184 
 
3 Investment management fee 
 
                                          Year ended         Year ended 
 
                                        30 September  30 September 2010 
                                                2011 
 
                                               GBP000s              GBP000s 
 
Investment management fee charged to              51                 47 
revenue (25%) 
 
Investment management fee charged to             152                141 
capital (75%) 
 
Total investment management fee                  203                188 
 
The management fees paid have been allocated 25% to revenue and 75% to capital. 
The balance due to AXA IM UK at the year end was GBP21,000 (2010: GBP19,000). No 
performance fee is payable in respect of the year. 
 
4 The board recommends the payment of a final capital dividend of 2.50 pence 
per share in respect of the year ended 30 September 2011. Subject to approval 
by shareholders at the annual general meeting on 13 March 2012, the dividend 
will be paid on 20 March 2012 to shareholders on the register on 24 February 
2012. 
 
5 (Loss)/return per ordinary share 
 
                                             Year to            Year to 
 
                                   30 September 2011  30 September 2010 
 
Revenue loss                               GBP(70,000)          GBP(21,000) 
 
Capital return                              GBP171,000           GBP586,000 
 
Total return                                GBP101,000           GBP565,000 
 
Weighted average number of                22,026,742         22,951,907 
ordinary shares in issue during 
the period 
 
Revenue loss ordinary share                  (0.32)p            (0.09)p 
 
Capital return per ordinary share              0.78p              2.55p 
 
Total return per ordinary share                0.46p              2.46p 
 
6 Called up share capital 
 
During the twelve months ended 30 September 2011, the Company repurchased 
1,224,000 shares for a total consideration of GBP385,000 (2010: 562,250 shares 
for a total consideration of GBP179,000). The number of ordinary shares in issue 
at 30 September 2011 was 21,405,778. 
 
7 Net asset value per share 
 
The net asset value per share and the net assets attributable to the ordinary 
shares at the period end calculated in accordance with the Articles of 
Association were as follows: 
 
                                               As at              As at 
 
                                   30 September 2011  30 September 2010 
 
Net assets attributable to                GBP8,952,000        GBP10,015,000 
ordinary shareholders 
 
Ordinary shares in issue                  21,405,778         22,649,778 
 
Net asset value per share                     41.82p             44.22p 
 
8 Related Parties Transactions 
 
AXA Investment Managers UK Limited (the "Manager" or "AXA IM UK"), is appointed 
as manager to manage and advise the Company including the provision of 
accounting, secretarial, office and administrative services. 
 
The Manager is paid an investment management fee at the rate of 2.0% of the Net 
Asset Value of the company accrued and calculated weekly but paid monthly. The 
Manager is also paid a fee of 0.25% of the Net Asset Value in respect of 
secretarial and administration fees. 
 
A performance fee is payable in respect of any financial year of the Company in 
respect of which aggregate dividends to Shareholders exceed five pence per 
Share and is equal to 20 per cent of the excess so that for every 1p per Share 
distributed over and above the hurdle of 5p per Share, 0.2p per Share shall be 
paid by way of Performance Fee. However, (i) no Performance fee will be payable 
in respect of the first three financial years of the Company, (ii) if and in so 
far as dividends in respect of any previous years have been less than 5p per 
Share, any shortfall must first be made up before calculating the excess in 
respect of which a Performance fee is payable and (iii) no Performance fee will 
be payable if, after adding back all the dividends previously made in respect 
of each Share, the net asset value per Share would thereby be less than the 
initial net asset value per Share of 95p. 
 
The investment manager agreement is terminable on one year's notice. 
 
As at 31 January 2012, the directors had the following interests in the 
Company's shares: 
 
T How                                        42,004 
 
C Kay                                        50,600 
 
H Sinclair                                   14,382 
 
There have not been any other related party transactions during the year. 
 
9 Principal risks and uncertainties 
 
The directors believe that the following are the principal risks faced by the 
Company: 
 
Economic risk: events such as those seen in the global financial markets over 
the last three years affect the share prices of all companies and hence the 
value of the Company's investments. Smaller companies, such as those in which 
the Company invests, tend to be affected more significantly than larger 
companies. Such events also affect trading conditions for companies, which also 
affects share prices. 
 
Investment and strategic risk: an inappropriate strategy and/or the selection 
of poor investments might lead to underperformance and poor returns to 
shareholders. 
 
Asset liquidity risk: the Company's investments may be difficult to realise in 
the current economic climate. 
 
Market liquidity risk: Shareholders may find it difficult to sell their shares 
at a price close to net asset value. 
 
Venture Capital Trust approval risk: Loss of approval as an Venture Capital 
Trust arising from a breach of the requirements of Section 274 of ITA would 
mean that the Company would lose its exemption from tax on any capital gains. 
 
The Company's policies and procedures for the management of the risks inherent 
in its investment objective are included in the financial statements. The Board 
relies upon the skills and expertise of the Manager, which has significant 
experience in investing in smaller companies. The Board reviews performance at 
each board meeting and discusses appropriate action where considered necessary. 
The Board uses share buy backs to try and mitigate market liquidity risk. The 
Manager reports to the Board at each meeting on the Company's compliance with 
Section 274 and the Board is advised on VCT issues by PricewaterhouseCoopers 
LLP. 
 
10 The 2011 annual report and accounts will be sent to all shareholders on the 
share register. Copies of the annual report and accounts, the interim report 
and accounts to 31 March 2011 and the interim management statements are 
available from the Company's registered office, 7 Newgate Street, London EC1A 
7NX. 
 
Investment portfolio summary as at 30 September 2011 
 
VCT qualifying investments at 30 September 2011 
 
Security               Sector                       Holding   Original Bid value 
                                                                  cost 
 
AIM                                                                  GBP         GBP 
 
Brooks          Ord 1p Financial Services            75,000    105,413   927,000 
Macdonald Group 
 
Craneware       Ord 1p Software & Computer          150,000    192,000   885,000 
                       Services 
 
Angle           Ord    Support Services             675,000    430,037   459,000 
                10p 
 
Noble           Ord 1p Financial Services           200,000    116,000   356,000 
Investments 
(UK) 
 
Instem Life     Ord    Software & Computer          143,448    251,034   315,586 
Science Systems 10p    Services 
 
Kiotech         Ord    Pharmaceuticals &            362,318    250,000   297,101 
International   23p    Biotechnology 
 
AFC Energy      Ord    Alternative Energy           855,511     86,862   286,596 
                0.1p 
 
PhotonStar LED  Ord    Household Goods & Home     1,390,666    321,932   250,320 
Group           10p    Construction 
 
EKF Diagnostics Ord 1p Health Care Equipment &    1,000,000    150,000   250,000 
Holdings               Services 
 
Sinclair IS     Ord 1p Pharmaceuticals &            997,952    260,000   244,498 
Pharma                 Biotechnology 
 
Manroy          Ord 5p Aerospace & Defence          247,368    195,000   235,000 
 
Vertu Motors    Ord    General Retailers            833,333    500,000   204,167 
                10p 
 
Tristel         Ord 1p Health Care Equipment &      502,504    239,464   201,002 
                       Services 
 
Sanderson Group Ord    Software & Computer          700,000    350,000   189,000 
                10p    Services 
 
Nanoco Group    Ord    Technology Hardware &        368,025    533,985   184,013 
                10p    Equipment 
 
Interquest      Ord 1p Support Services             363,636    200,000   181,818 
Group 
 
Energetix Group Ord 5p Electronic & Electrical      600,000    240,000   177,000 
                       Equipment 
 
Cohort          Ord    Aerospace & Defence          190,700    241,618   167,816 
                10p 
 
Getech Group    Ord    Oil Equipment, Services &    925,000    360,750   166,500 
                0.25p  Distribution 
 
EG Solutions    Ord 1p Software & Computer          235,294    200,000   145,882 
                       Services 
 
Music Festivals Ord    Travel & Leisure             230,769    150,000   136,154 
                10p 
 
Avacta Group    Ord    Health Care Equipment &   15,000,000    150,000   132,000 
                0.1p   Services 
 
Corero Network  Ord 1p Software & Computer          350,241    363,635   126,087 
Security               Services 
 
Brulines Group  Ord    Support Services             131,667    161,950   122,450 
                10p 
 
Active Risk     Ord 1p Software & Computer          317,277    116,451   120,565 
Group                  Services 
 
Dillistone      Ord 5p Software & Computer          159,444     87,500   119,583 
Group                  Services 
 
Plastics        Ord 1p Chemicals                    150,000    150,000   105,000 
Capital 
 
Brady           Ord 1p Software & Computer          147,000     86,730   102,900 
                       Services 
 
Suretrack       Ord    Electronic & Electrical   22,380,952    120,000    89,524 
Monitoring      0.05p  Equipment 
 
Belgravium      Ord 5p Technology Hardware &      1,250,000    175,000    87,500 
Technologies           Equipment 
 
Surface         Ord 1p Automobiles & Parts          883,125    150,131    79,481 
Transforms 
 
3D Diagnostic   Ord    Health Care Equipment &    4,166,667    150,000    79,167 
Imaging         0.1p   Services 
 
Theo Fennell    Ord 5p Personal Goods               370,625    140,838    72,272 
 
Accumuli        Ord    Software & Computer          950,700    674,997    71,302 
                0.25p  Services 
 
Maxima Holdings Ord 1p Software & Computer          290,000    478,500    69,600 
                       Services 
 
VSA Capital     Ord    Financial Services         1,000,000    100,000    60,000 
Group           0.2p 
 
Tangent         Ord 1p Support Services           1,153,846    150,000    57,692 
Communications 
 
@UK             Ord 1p Software & Computer          416,666    250,000    53,125 
                       Services 
 
Pressure        Ord 5p Industrial Engineering        36,000     54,000    48,960 
Technologies 
 
Byotrol         Ord    Chemicals                    472,500    283,500    41,344 
                0.25p 
 
PHSC            Ord    Support Services             229,110    121,428    38,949 
                10p 
 
Hot Tuna        Ord    Personal Goods            49,600,000    148,800    34,720 
(International) 0.01p 
 
Ant             Ord 5p Software & Computer          145,000    182,700    31,900 
                       Services 
 
Datong          Ord    Electronic & Electrical      117,187    149,999    31,640 
                0.5p   Equipment 
 
Cyan Holdings   Ord    Technology Hardware &      4,576,923    170,000    26,546 
                0.2p   Equipment 
 
Corac Group     Ord    Industrial Engineering       225,000     94,500    22,500 
                10p 
 
Bglobal         Ord 1p Support Services             213,333    106,667    19,200 
 
Hightex Group   Ord 1p Construction & Materials   1,428,571    100,000    17,857 
 
Savile Group    Ord 3p Support Services             150,000    100,500    15,000 
 
Plethora        Ord 1p Pharmaceuticals &            478,535    675,000    11,963 
Solutions              Biotechnology 
Holdings 
 
Imagelinx       Ord    Support Services           4,000,000    200,000    10,000 
                0.1p 
 
Managed Support Ord 1p Support Services             500,000    254,217     6,250 
Services 
 
Travelzest      Ord 2p Travel & Leisure              79,365    100,000     6,151 
 
Media Square    Ord    Media                        100,000    250,000     3,250 
                10p 
 
Green           Ord    Support Services               4,029     91,236     2,417 
Compliance      50p 
 
Total AIM                                                   11,962,374 8,176,348 
 
PLUS Market 
 
Wheelsure       Ord 1p Industrial Engineering     1,000,000     50,000    32,500 
Holdings 
 
Total PLUS Market                                               50,000    32,500 
 
Non-index 
 
Invocas Group   Ord    Financial Services           137,150    152,236    13,715 
                0.25p 
 
Western &       Ord    Travel & Leisure           1,000,000    100,000       100 
Oriental        0.5p 
 
AT              Ord 1p Software & Computer        1,242,857    522,000         - 
Communications         Services 
Group 
 
Bioganix        Ord    Support Services             210,000    253,267         - 
                10p 
 
Fishworks       Ord 1p Travel & Leisure             750,000    247,500         - 
 
Hat Pin         Ord    Support Services             234,375    168,750         - 
                2.5p 
 
Hexagon Human   Ord 1p Support Services             180,303    297,500         - 
Capital 
 
Legion Group    Ord    Support Services          10,000,000    350,000         - 
                0.5p 
 
Relax Group     Ord    Financial Services            55,555     99,999         - 
                10p 
 
Sovereign       Ord 1p Oil Equipment, Services &    144,000    201,600         - 
Oilfield Group         Distribution 
 
Sport Media     Ord    Media                        333,333    250,000         - 
Group           0.25p 
 
Total Non-index                                              2,642,852    13,815 
 
Total VCT qualifying investments                            14,655,226 8,222,663 
 
VCT non-qualifying investments at 30 September 
2011 
 
Security               Sector                    Holding    Original   Bid value 
                                                            cost 
 
AIM                                                         GBP          GBP 
 
Digital         Ord 1p Support Services             200,000    200,000   266,000 
Barriers 
 
Tawa            Ord    Non-life Insurance           114,675    143,344    63,071 
                10p 
 
Lidco Group     Ord    Health Care Equipment &      475,000     95,000    59,375 
                0.5p   Services 
 
Orosur Mining   Com    Mining                        50,000    140,763    25,625 
                Shs 
                NPV 
 
Interquest      Ord 1p Support Services              36,364     17,926    18,182 
Group 
 
Nanoco Group    Ord    Technology Hardware &         25,725     40,687    12,862 
                10p    Equipment 
 
Pure Wafer      Ord 2p Technology Hardware &        269,225    175,291     8,077 
                       Equipment 
 
Porta           Ord    Media                      2,500,000    150,000     2,750 
Communications  0.1p 
 
Maxima Holdings Ord 1p Software & Computer           10,000     28,125     2,400 
                       Services 
 
Green           Ord    Support Services                  15      1,859         9 
Compliance      50p 
 
Total AIM                                                      992,995   458,351 
 
Fixed Interest 
Stocks 
 
Rivington       8% Cnv Fixed Interest Stocks        125,000    136,365   100,000 
Street Holdings Uns 
                Red Ln 
                Stk 
                2015 
 
Rivington       Zero   Fixed Interest Stocks          7,986          -         - 
Street Holdings Coupon 
                Ln Stk 
                2013 
 
Total Fixed                                                    136,365   100,000 
Interest 
 
FTSE Small Cap 
 
Alterian        Ord    Software & Computer           10,568     22,400     6,552 
                25p    Services 
 
Total Small Cap                                                 22,400     6,552 
 
FTSE Fledgling 
 
Clarke (T.)     Ord    Construction & Materials     100,000    248,460    40,750 
                10p 
 
Total Fledgling                                                248,460    40,750 
 
Non-index 
 
Consolidated    Ord 1p Mining                       100,000    110,871    23,000 
General 
Minerals 
 
Rok             Ord 2p Construction & Materials      17,000     33,165         - 
 
Total Non-index                                                144,036    23,000 
 
Total VCT non-qualifying investments                         1,544,256   628,653 
 
Total                                                       16,199,482 8,851,316 
investments 
 
Statement under the Disclosure & Transparency Rules 4.1.12 
 
The Disclosure and Transparency Rules ("DTR") of the UK Listing Authority 
require the Directors to confirm their responsibilities in relation to the 
preparation and publication of the Report and Accounts. 
 
The directors are responsible for preparing the directors' report, 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 Services 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). 
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; 
 
  * 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. 
 
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 annual reports 
may differ from legislation in other jurisdictions. 
 
The Directors confirm, to the best of their knowledge, that: 
 
  * the financial statements, which have been prepared in accordance with UK 
    Generally Accepted Accounting Practice, including the Statement of 
    Recommended Practice "Financial Statements of Investment Trust Companies 
    and Venture Capital Trusts" issued in January 2009, give a true and fair 
    view of the assets, liabilities, financial position and profit of the 
    Company; and 
 
  * the management report comprising directors' report and other information 
    cross-referenced from the business review section of the directors' report 
    include 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. 
 
                                     ENDS 
 
The 2011 annual report and accounts will also be available on the Manager's 
website at www.axa-im.com. Neither the contents of this website nor the 
contents of any website accessible from hyperlinks on this website (or any 
other website) is incorporated into, or forms part of, this announcement. 
 
 
 
END