We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Hargreave Hale Aim Vct Plc | LSE:HHV | London | Ordinary Share | GB00B02WHS05 | 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% | 40.80 | 40.00 | 41.60 | 40.80 | 40.80 | 40.80 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Investors, Nec | -25.84M | -29.73M | -0.0866 | -4.71 | 140.1M |
Hot Features
Premium
TIDMHHV
Hargreave Hale AIM VCT 1 Plc
Unaudited Interim Results for the six month period ending 31 March 2017
FINANCIAL HIGHLIGHTS
31 31 30
March March September
Ordinary Shares (as at 31 March): 2017 2016 2016*
Net asset value per share 78.12p 73.91p 75.93p
Cumulative distributions paid per share since launch 44.25p 40.25p 42.00p
Total return per share 122.37p 114.16p 117.93p
Earnings per share (basic and diluted):
Revenue return (0.14)p (0.20)p (0.11)p
Capital return 4.12p 1.72p 5.69p
Combined return 3.98p 1.52p 5.58p
Dividends per share:
Interim proposed/paid 1.75p 1.75p 1.75p
Final paid - - 2.25p
Ongoing Expense Ratio**
Performance Benchmark: 1.83% 2.23% 1.99%
FTSE AIM All-share Index (rebased to 100 at 29 October
2004) 96.42 82.93 84.98
* 30 September 2016 financial highlights represent annual results
** Calculated as total expenses (annualised for half yearly results)
minus ad hoc legal costs and adjusted for trail commission written off,
divided by period end net assets
INVESTMENT OBJECTIVE
The objective of the VCT is to achieve long term capital growth and to
maximise tax free distributions to shareholders by investing in a
diversified portfolio of small UK companies primarily traded on AIM. At
least 70% of the Company's funds must be invested in qualifying holdings
within three years of raising the funds. The balance of the Company's
funds will be invested in liquid assets (such as fixed income securities
and bank deposits) and non-qualifying equity investments on an
opportunistic basis. The Company is managed as a Venture Capital Trust
in order that shareholders in the Company may benefit from the tax
relief available.
CHAIRMAN'S STATEMENT
INTRODUCTION
In the first half of the financial year the Net Asset Value (NAV) per
share increased from 75.93 pence to 78.12 pence equivalent to an
increase of 5.8% after adding back the 2.25 pence dividend distributed
in January 2017. During the same period the FTSE 100 Total Return Index
rose 8.1% and the FTSE AIM All Share Total Return Index rose 14.3%.
RESULTS
The gain per share for the six month period was 3.98 pence per share
(comprising revenue losses of 0.14 pence and capital gains of 4.12
pence). At 31 March 2017 the total return since inception of the fund
was 122.37 pence.
INVESTMENTS
The investment manager, Hargreave Hale Limited, invested a further
GBP3.44 million in 9 qualifying companies during the period of which 6
were AIM companies and 3 unquoted. The fair value of qualifying
investments at 31 March 2017 was GBP33.33 million invested in 69 AIM
companies and 10 unquoted companies. The balance of the funds was held
in a mix of cash and non-qualifying equities.
At 31 March 2017 the VCT was 87.30% invested as measured by HMRC.
DIVID
A final dividend for the year ended 30 September 2016 of 2.25 pence was
paid on 17 January 2017.
The directors continue to maintain a policy of distributing at least 5%
of the year end NAV to shareholders. An interim dividend of 1.75 pence
(2016: 1.75p) will be paid on 30 June 2017, with an ex-dividend date of
8 June 2017 and a record date of 9 June 2017.
BUYBACKS
We have been able to maintain our policy of offering our shareholders an
efficient exit route through the buyback scheme. In total, 318,221
shares were repurchased during the six month period ending 31 March 2017
at a weighted average price of 74.59 pence per share. Since the period a
further 206,867 shares have been repurchased at a weighted average price
of 76.07 pence.
The Board continues to target a share price discount of 5% of the NAV
per share (as measured against the mid-price) for market purchases. It
should be emphasised that this target is non-binding and dependent on
circumstances, including the Company's liquidity from time to time and
market conditions.
JOINT OFFER FOR SUBSCRIPTION - 2015
On 17 November 2016 the joint offer for subscription for new shares in
Hargreave Hale AIM VCT 1 plc and Hargreave Hale AIM VCT 2 plc (launched
in December 2015) was closed with GBP12.46 million raised for Hargreave
Hale AIM VCT 1 plc.
JOINT OFFER FOR SUBSCRIPTION - 2016
The Directors of the Company announced on 14 December 2016 the launch of
a new joint offer for subscription for shares in both Hargreave Hale AIM
VCTs to raise up to GBP10 million in the Company and up to GBP10 million
in Hargreave Hale AIM VCT 2 plc. The offer was approved by shareholders
of the Company at a general meeting on 12 January 2017 and was open to
both new and existing shareholders.
On 9 March 2017 Hargreave Hale AIM VCT 1 plc announced that it had
received applications in excess of GBP10 million and, accordingly, the
directors of Hargreave Hale AIM VCT 1 plc announced that they intended
to utilise the GBP5 million Over-Allotment Facility.
On 15 March 2017 the Company announced that the offer was fully
subscribed, resulting in gross funds being received of GBP15 million and
the issue of 18.96 million new shares in the Company.
I am pleased to report that an immediate effect is that the ongoing
expense ratio has dropped from 1.99% in September 2016 to 1.83% as at 31
March 2017.
VCT REGULATION
In order to comply with EU regulations regarding State Aid, the VCT
rules were subject to substantial changes in the budget on 8 July 2015,
which came into effect on 18 November 2015. In the round we do not think
these rules have greatly affected the Company, although we will no
longer be able to make non-qualifying investments in companies listed on
AIM or UK government bonds. We are able to continue to invest via the
Marlborough Special Situations Fund and we are free to invest in
companies listed on the main market.
BOARD CHANGES
Giles Hargreave resigned as a director of the Company on 13 December
2016. I would like to take this opportunity to thank Giles for all his
hard work on the Board. Following the resignation of Giles Hargreave,
Oliver Bedford was appointed as a non-executive director of the Company
on 13 December 2016. I am pleased to report that Giles still works for
the manager and that we still benefit from his expertise and sagacity.
ELECTRONIC COMMUNICATIONS
Following approval at a general meeting on 12 January 2017, the Company
has adopted electronic communications. Your Board believes this is
beneficial to the Company and its shareholders and will result in
substantial cost savings and improved timeliness and transparency of
communications.
AUDIT TER
As announced in the annual report and accounts for the year ended 30
September 2016 a mandatory audit tender is required in the current year.
I am pleased to confirm the process is underway and a further update
will be given in due course.
OUTLOOK
The outcome of the American elections and Brexit vote does not appear to
have had an adverse effect on the stock markets and the drop in the
value of sterling seems to have a beneficial effect on exports and the
balance of trade. After the results of recent polls around the world I
am reluctant to publish my views on the outcome of the forthcoming
election!
For the next two years it seems that we will suffer the media's
fascination with the Brexit negotiations. Given that the EU has only
managed to negotiate one trade deal, Canada, in the last 10 or so years
it is hard to believe that the UK will achieve much in two. This will
have little effect in the short term but may make the markets more
volatile in the longer term. We continue to invest in companies with
good management and robust business plans that we hope will weather any
storms. Furthermore we are seeing more private equity opportunities in
sound companies with future growth and these will not be affected by the
vagaries of the market.
SIR AUBREY BROCKLEBANK BT.
Chairman
Date: 24 May 2017
INVESTMENT MANAGER'S REPORT
INTRODUCTION
This report covers the first half of the 2016/17 financial year, 1
October 2016 to 31 March 2017. The manager's report contains references
to movements in the Net Asset Value (NAV) per share and Total Return per
share (NAV per share plus distributed earnings per share). Movements in
the NAV per share do not necessarily mirror the earnings per share (EPS)
reported in the accounts and elsewhere, which convey the profit after
tax for the company within the reported period as a function of the
weighted average number of shares in issue for the period.
INVESTMENT REPORT
The period under review was a strong period for equities with markets
taking Trump's election as the US President as a substantial positive
despite the many political uncertainties that accompanied his victory.
Politics aside, global economic growth was robust, with US GDP growth
and low interest rates leading developed markets higher.
Although not new news, ongoing weakness in sterling helped UK equities
continue their strong run with foreign earnings providing a welcome
earnings kicker for export orientated companies. By and large, VCT
regulations channel us into small domestically focussed growth stories,
so we were unable to fully benefit from the trend that persisted through
much of the first quarter of the financial year, although we did derive
some benefit through companies such as Abcam and Craneware, as well as
parts of our non-qualifying portfolio. The positive mood within the
major indices filtered down the chain and the second quarter saw a
beneficial uptick in risk sentiment within smallcap equities, which
favoured our qualifying investments.
The second half of the financial year has already thrown up a number of
risks and surprises, the French and UK elections being the most recent
examples. Doubtless there will be more; however, for now the UK economy
feels strong enough and, although we have seen some evidence of weakness
within the housing market and elements of the casual dining sub-sector,
by and large the macro picture remains workable. We expect the UK
consumer to be more challenged this year as real wage growth turns
negative, with some weakness already showing up in consumer confidence
data. But in the round, we find most companies to be positive about the
outlook and there seems to be reasonable demand for new capital to
support their growth and development.
PERFORMANCE
In the six months to 31 March 2017, the NAV increased from 75.93 pence
to 78.12 pence. A total of 2.25 pence per share was paid in dividends,
giving investors a total return of 4.44 pence per share, which
translates to a gain of 5.8%. During the same period the FTSE AIM
All-Share Total Return gained 14.3%, whilst the FTSE 100 Total Return
gained 8.1%.
The qualifying investments made a net contribution of 2.86 pence per
share with 34 out of the 79 making gains, 11 unchanged and 34 losing
ground. The balance was the net of non-qualifying portfolio gains,
running costs and investment income.
Cohort was the top performing qualifying investment (+38.7%, +0.90 pence
per share). The company confirmed the outlook for the year ending April
2017 and announced a series of material contract wins. The company has
a significant net cash balance and remains well positioned to benefit
from structural growth in defence spending on specific technologies and
platforms. Animalcare also performed well (+55.4%, +0.82 pence per
share). The company delivered a very strong trading update in January,
prompting analysts to upgrade numbers. Product development and
international sales are translating through to growth in revenues and
profits. Maxcyte (+219.3%, +0.73 pence per share), Quixant (+40.7%,
+0.55 pence per share) and Learning Technologies Group (+29.7%, +0.48
pence per share) were all also significant contributors over the period.
The biggest (unrealised) losses within the period came from TrakM8
(-60.0%, -0.88 pence per share) and K3 Business Technology (-29.0%,
-0.48 pence per share). TrakM8 announced a material profit downgrade
after contract deferrals left the company exposed to an overhead that
was outsized relative to the revised revenue outcome. K3 Business
Technology was another company to report softer market conditions and
lengthening sales cycles. Other losses came from Instem Life (-42.0%,
-0.34 pence per share) and Tasty (-51.7%, -0.30 pence per share), all of
which pared back their profit guidance.
We invested GBP3.44m into 9 qualifying companies over the period,
including 3 further investments into existing qualifying companies; 3
IPOs and 3 additional private investments.
Within the qualifying portfolio, several investee companies experienced
strong runs in the market, which led us to make partial disposals in
Abcam, Craneware, Creo, Directa Plus, DP Poland, ECSC, Loop Up, Maxcyte
and Surface Transforms.
PORTFOLIO STRUCTURE
The VCT is comfortably through the HMRC defined investment test and
ended the period at 87.30% invested as measured by the HMRC investment
test. By market value, the VCT had a 52.4% weighting to qualifying
investments.
The allocation to non-qualifying equity investments increased marginally
from 15.4% to 18.9%. We continued to make use of the Marlborough
Special Situations Fund as a temporary home for proceeds from
fundraising, lifting the allocation from 4.7% to 10.2%. The
non-qualifying investments contributed +2.03 pence per share to the
overall gains. We sold our remaining fixed income investment and kept
cash steady at 18.8%.
The HMRC investment tests are set out in Chapter 3 of Part 6 Income Tax
Act 2007, which should be read in conjunction with this section of the
investment manager's report. Funds raised by VCTs are first included in
the investment tests from the start of the accounting period containing
the third anniversary of the date on which the funds were raised.
Therefore, the allocation of qualifying investments as defined by the
legislation can be different to the portfolio weighting as measured by
market value relative to the net assets of the VCT.
POST HALF YEAR UPDATE
Deal flow has been good since period end with 4 new qualifying
investments made, 1 as a follow-on investment into an existing
qualifying holding and 3 into new qualifying companies. We also have
several deals in the pipeline which we expect to complete in the coming
weeks.
NAV performance has also been good post period end, with the net asset
per share gaining 4.4% to 81.55 pence.
STUART BROOKES
Company Secretary
Hargreave Hale AIM VCT 1 plc
01253 754740
Date: 24 May 2017
INVESTMENT PORTFOLIO SUMMARY
AS AT 31 MARCH 2017 Cost Valuation Valuation Net Assets
Qualifying Investments GBP000 GBP000 % % Sector
Cohort plc 619 2,042 3.94 3.21 Industrials
Animalcare Group plc 220 1,660 3.20 2.61 Health Care
Information
Portr Ltd** 873 1,425 2.75 2.24 Technology
Abcam Plc 55 1,362 2.63 2.14 Health Care
Consumer
Quixant plc 160 1,322 2.55 2.08 Discretionary
Information
Learning Technologies Group plc 663 1,310 2.53 2.06 Technology
Science in Sport plc 778 1,270 2.45 2.00 Consumer Staples
Information
Idox plc 135 1,261 2.43 1.98 Technology
Craneware plc 125 1,181 2.28 1.86 Health Care
Information
Ideagen plc 410 941 1.82 1.48 Technology
Information
Zappar Ltd** 902 900 1.74 1.42 Technology
Consumer
DP Poland plc 343 875 1.69 1.38 Discretionary
Consumer
Mexican Grill Ltd (A Preference Shares)** 185 769 1.49 1.21 Discretionary
Information
K3 Business Technology Group plc 270 750 1.45 1.18 Technology
Creo Medical Group plc 659 701 1.35 1.10 Health Care
Maxcyte Inc 173 652 1.26 1.02 Health Care
Information
Gfinity plc 326 569 1.10 0.90 Technology
Information
ULS Technology plc 221 536 1.04 0.84 Technology
Consumer
TLA Worldwide plc 300 525 1.01 0.83 Discretionary
Faron Pharmaceuticals Oy 260 519 1.00 0.82 Health Care
Hardide plc 786 518 1.00 0.81 Materials
Consumer
Infinity Reliance Ltd (My 1(st) Years)** 501 500 0.97 0.79 Discretionary
Consumer
Vertu Motors plc 600 483 0.93 0.76 Discretionary
Information
Eagle Eye Solutions Ltd 541 474 0.92 0.75 Technology
EKF Diagnostics Holdings plc 300 425 0.82 0.67 Health Care
Information
ECSC Group plc 251 420 0.81 0.66 Technology
Information
Aquis Exchange Ltd** 401 400 0.77 0.63 Technology
Information
TrakM8 Holdings plc 106 374 0.72 0.59 Technology
Premaitha Health plc 432 363 0.70 0.57 Health Care
Belvoir Lettings plc 513 357 0.69 0.56 Real Estate
Information
Loopup Group plc 236 354 0.68 0.56 Technology
Information
CentralNic Group plc 293 340 0.66 0.53 Technology
Surface Transforms plc 273 332 0.64 0.52 Industrials
Property Franchise Group plc 225 326 0.63 0.51 Real Estate
Instem plc 297 314 0.61 0.49 Health Care
Plastics Capital plc 250 308 0.59 0.48 Materials
Information
Intercede Group plc 247 307 0.59 0.48 Technology
Information
Laundrapp Ltd** 301 300 0.58 0.47 Technology
Information
Globaldata plc 173 293 0.56 0.46 Technology
Telecommunication
Satellite Solutions Worldwide Group plc 154 283 0.55 0.45 Services
Information
Freeagent Holdings plc 185 264 0.51 0.42 Technology
Consumer
Everyman Media Group plc 171 258 0.50 0.41 Discretionary
Information
Universe Group plc 210 240 0.46 0.38 Technology
Clearstar Inc 449 236 0.46 0.37 Health Care
Angle plc 348 236 0.45 0.37 Industrials
Electrical Geodesics Inc 200 231 0.45 0.36 Health Care
Reneuron Group plc 534 226 0.44 0.36 Health Care
Information
Kalibrate Technologies plc 323 224 0.43 0.35 Technology
Information
WANDisco plc 89 209 0.40 0.33 Technology
Consumer
Tasty plc 288 208 0.40 0.33 Discretionary
Telecommunication
Cloudcall Group plc 259 200 0.39 0.31 Services
Information
Osirium Technologies plc 301 192 0.37 0.30 Technology
Ilika plc 218 186 0.36 0.29 Industrials
Pressure Technologies plc 170 176 0.34 0.28 Energy
Information
APC Technology Group plc 498 168 0.32 0.26 Technology
Consumer
Porta Communications plc 505 164 0.32 0.26 Discretionary
Verona Pharma plc 127 161 0.31 0.25 Health Care
Information
Imaginatik plc 254 134 0.26 0.21 Technology
Information
Audioboom plc 166 131 0.25 0.21 Technology
Egdon Resources plc 158 131 0.25 0.21 Energy
Information
Mirada plc 618 129 0.25 0.20 Technology
Information
Fusionex International plc 138 125 0.24 0.20 Technology
Flowgroup plc 577 119 0.23 0.19 Industrials
Lidco Group plc 220 114 0.22 0.18 Health Care
TP Group plc 185 108 0.21 0.17 Industrials
Consumer
Medaphor Group plc 251 106 0.20 0.17 Discretionary
Midatech Pharma plc 200 90 0.17 0.14 Health Care
Consumer
Mexican Grill Ltd (Ordinary Shares)** 21 86 0.17 0.13 Discretionary
Synairgen plc 140 78 0.15 0.12 Health Care
Directa Plus plc 60 76 0.15 0.12 Materials
Mycelx Technologies Corporation plc (Com SHS $0.025
+ (D1) shares) 300 71 0.14 0.11 Industrials
Genedrive plc 140 70 0.14 0.11 Health Care
Information
Redcentric plc 214 46 0.09 0.07 Technology
Information
Mporium Group plc 301 42 0.08 0.07 Technology
Haydale Graphene Industries plc 35 36 0.07 0.06 Materials
Information
Microsaic Systems plc 51 23 0.04 0.04 Technology
Brigantes Energy Ltd* - - - - Energy
Consumer
Infoserve Group plc* - - - - Discretionary
Consumer
Invocas Group plc* - - - - Discretionary
Total Qualifying Investments 23,461 33,335 64.35 52.44
Cost Valuation Valuation Net Assets
Non-Qualifying Investments GBP000 GBP000 % % Sector
MFM Special Situations Fund** 6,062 6,459 12.47 10.16
Total - Unit Trusts 6,062 6,459 12.47 10.16
Melrose Industries plc 592 913 1.76 1.44 Industrials
Fulcrum Utility Services Ltd 125 804 1.55 1.26 Utilities
FCFM Group Ltd** 300 565 1.09 0.89 Financials
Dechra Pharmaceuticals plc 461 536 1.03 0.84 Health Care
Atkins (WS) plc 462 524 1.01 0.82 Industrials
Sanne Group plc 370 518 1.00 0.81 Financials
BP plc 506 503 0.97 0.79 Energy
NMC Health plc 426 495 0.96 0.78 Health Care
Royal Dutch Shell plc 473 481 0.93 0.76 Energy
Consumer
Quixant plc 159 427 0.83 0.67 Discretionary
Consumer
Merlin Entertainments plc 386 417 0.81 0.66 Discretionary
Consumer
On the Beach Group plc 376 417 0.80 0.66 Discretionary
RPC Group plc 445 376 0.73 0.59 Materials
Medica plc 271 371 0.72 0.58 Health Care
Consumer
JD Sports Fashion plc 265 347 0.67 0.55 Discretionary
Consumer
Ascential plc 326 345 0.67 0.54 Discretionary
Information
Just Eat plc 329 340 0.66 0.53 Technology
Consumer
DFS Furniture plc 331 293 0.57 0.46 Discretionary
Consumer
Taylor Wimpey plc 299 280 0.54 0.44 Discretionary
Horizon Discovery Group plc 261 273 0.53 0.43 Health Care
Lloyds Banking Group plc 285 265 0.51 0.42 Financials
Finsbury Food Group plc 140 249 0.48 0.39 Consumer Staples
Consumer
Clipper Logistics plc 234 245 0.47 0.39 Discretionary
Consumer
Hilton Food Group plc 252 245 0.47 0.39 Discretionary
Information
Micro Focus International plc 152 228 0.44 0.36 Technology
Consumer
Wizz Air Holdings plc 220 197 0.38 0.31 Discretionary
Consumer
Mexican Grill Ltd (A Preference Shares)** 128 196 0.38 0.31 Discretionary
Information
Learning Technologies Group plc 76 176 0.34 0.28 Technology
Consumer
Sportech plc 130 163 0.31 0.26 Discretionary
Eurocell plc 119 138 0.27 0.22 Industrials
Consumer
Everyman Media Group plc 85 125 0.24 0.20 Discretionary
Regent Pacific Group Ltd 150 111 0.21 0.17 Health Care
Reneuron Group plc 104 82 0.16 0.13 Health Care
Amerisur Resources plc 167 62 0.12 0.10 Energy
Consumer
The Fulham Shore plc 38 61 0.12 0.10 Discretionary
Midatech Pharma plc 134 60 0.12 0.09 Health Care
Information
Audioboom plc 59 42 0.08 0.07 Technology
Information
Eagle Eye Solutions Ltd 44 42 0.08 0.06 Technology
Plexus Holdings plc 125 36 0.07 0.06 Energy
Mycelx Technologies Corporation plc (Com SHS $0.025
REG S+ shares) 200 27 0.05 0.04 Industrials
Consumer
Mexican Grill Ltd (Ordinary Shares)** 26 26 0.05 0.04 Discretionary
Total - Non-Qualifying equities 10,031 12,001 23.18 18.89
Total -Non-Qualifying Investments 16,093 18,460 35.65 29.05
Total investments 39,554 51,795 100.00 81.49
Cash at bank 11,930 18.77
Prepayments & Accruals (162) (0.26)
Net Assets 63,563 100.00
* Unquoted Company holding of less than GBP500
**Unquoted Companies
The majority of listed investments held within the portfolio are listed,
headquartered and registered in the UK with the exception of the
following:
Listed Headquartered Registered
AIM listed Investments:
Audioboom plc UK UK Jersey
Clearstar Inc UK Cayman Cayman
Islands Islands
Electrical Geodesics Inc UK USA USA
Faron Pharmaceuticals Oy UK Finland Finland
Fulcrum Utility Services Ltd UK UK Cayman
Islands
Fusionex International plc UK UK Jersey
Maxcyte Inc UK USA USA
Mycelx Technologies Corporation plc (Com SHS $0.025 UK USA USA
+ (D1) shares)
Mycelx Technologies Corporation plc (Com SHS $0.025 UK USA USA
REG S+ shares)
Regent Pacific Group Ltd UK Hong Kong UK
Royal Dutch Shell plc UK Netherlands UK
Sanne Group plc UK Jersey Jersey
WANDisco plc UK UK Jersey
Wizz Air Holdings plc UK Jersey Jersey
Unlisted private companies:
Aquis Exchange Ltd - UK UK
Brigantes Energy Ltd - UK UK
FCFM Group Ltd - UK UK
Laundrapp Ltd - UK UK
Mexican Grill Ltd - UK UK
Infinity Reliance Ltd (My 1(st) Years) - UK UK
Infoserve Group plc - UK UK
Invocas Group plc - UK UK
Portr Ltd - UK UK
Zappar Ltd - UK UK
Authorised unit trust:
MFM Special Situations Fund - UK UK
TOP TEN INVESTMENTS
As at 31 March 2017 (By Market Value)
The top 10 equity investments are shown below; each is valued by
reference to the bid price, or, in the case of unquoted companies,
values are either based on the last arm's length transaction or
valuation techniques, such as earnings multiples. Forecasts, where given,
are drawn from a combination of broker research and/or Bloomberg
consensus forecasts and exclude amortisation, share based payments and
exceptional items. Forecasts are in relation to a period end for which
the company results are yet to be released. The net cash values are
drawn from published accounts in most cases.
Cohort plc 430.0p
Investment date February 2006 Forecasts for the year to April 2017
Equity held 1.16% Turnover (GBP'000) 123,100
Profit/(loss) before tax
Av Purchase Price 130.2p (GBP'000) 14,300
Cost (GBP'000) 619 Net Cash (GBP'000) 9,911
Net Assets April 2016
Valuation (GBP'000) 2,042 (GBP'000) 70,789
COMPANY DESCRIPTION
Cohort, through its subsidiary, provides a range of
technical services to clients in the defence and security
sectors.
Quixant plc 380.0p
Investment date May 2013 Forecasts for the year to December 2017
Equity held 0.70% Turnover ($'000) 102,300
Profit/(loss) before tax
Av. Purchase Price 69.3p ($'000) 15,800
Cost (GBP'000) 319 Net Cash ($'000) (69)
Net Assets December 2016
Valuation (GBP'000) 1,749 ($'000) 34,306
COMPANY DESCRIPTION
Quixant designs and manufactures complete advanced
hardware and software solutions for the pay-for-play
gaming and slot machine industry. Quixant's specialised
products provide an all-in-one solution, based on
PC technology but with additional hardware features
and operating software developed specifically to address
the requirements of the gaming industry.
Animalcare Group plc 415.0p
Investment date December 2007 Forecasts for the year to June 2017
Equity held 1.88% Turnover (GBP'000) 15,900
Profit/(loss) before tax
Av. Purchase Price 55.0p (GBP'000) 3,600
Cost (GBP'000) 220 Net Cash (GBP'000) 7,012
Valuation (GBP'000) 1,660 Net Assets June 2016 (GBP'000) 22,515
COMPANY DESCRIPTION
Animalcare Group markets and sells a wide range of
pharmaceutical and other premium products and services
to vets and vet wholesalers.
Learning Technologies Group plc 41.5p
Forecasts for the
Investment date November 2014 year to December 2017
Equity held 0.66% Turnover (GBP'000) 49,600
Profit/(loss) before
Av. Purchase Price 20.6p tax (GBP'000) 10,000
Cost (GBP'000) 739 Net Cash (GBP'000) (8,486)
Net Assets December
Valuation (GBP'000) 1,486 2016 (GBP'000) 30,710
COMPANY DESCRIPTION
Learning Technologies provides a comprehensive and
integrated range of e-learning services and technologies
to corporate and government clients. LTG is making
good progress towards its goal of establishing a substantial
global organisation of specialist digital learning
businesses from Europe, US, Latin America and Asia
to form a market-leading technologies agency.
Portr Ltd 1058.0p
Investment date July 2015 Results for the year to December 2015
Equity held 5.14% Turnover (GBP'000) -
Profit/(loss) before
Av Purchase Price 648.0p tax (GBP'000) -
Cost (GBP'000) 873 Net Cash (GBP'000) 816
Net Assets December
Valuation (GBP'000) 1,425 2015 (GBP'000) 819
Income recognised in
period (GBP) 0
COMPANY DESCRIPTION
Portr run's AirPortr, London's same day luggage transfer
service. In its most basic form they deliver luggage
from London Airports to your hotel, office or home
and vice versa. They recently launched an off airport
check in solution in partnership with British Airways,
allowing you to check in your bag from your house,
hotel or office for an outbound flight from London
airports.
Abcam plc 825.5p
Investment date October 2005 Forecasts for the year to June 2017
Equity held 0.08% Turnover (GBP'000) 215,700
Profit/(loss) before tax
Av Purchase Price 33.4p (GBP'000) 63,700
Cost (GBP'000) 55 Net Cash (GBP'000) 76,429
Net Assets June 2016
Valuation (GBP'000) 1,362 (GBP'000) 261,190
COMPANY DESCRIPTION
Abcam is a global life sciences company providing
highly validated antibodies and other binders and
assays to the research and clinical communities to
help advance the understanding of biology and cause
of disease. The company's customers include universities,
research institutes, and pharmaceutical and biotechnology
companies in countries around the world.
Science in Sport plc 88.0p
Investment date April 2014 Forecasts for the year to December 2017
Equity held 3.33% Turnover (GBP'000) 15,200
Profit/(loss) before tax
Av. Purchase Price 53.9p (GBP'000) (1,700)
Cost (GBP'000) 778 Net Cash (GBP'000) 6,130
Net Assets December 2016
Valuation (GBP'000) 1,270 (GBP'000) 10,819
COMPANY DESCRIPTION
Science in Sport manufactures and sells sports nutrition
products. The company develops and distributes food,
nutritional supplements, and beverages formulated
to hydrate, energise, recover, and enhance sports
performance.
Idox plc 70.0p
Investment date May 2007 Forecasts for the year to October 2017
Equity held 0.44% Turnover (GBP'000) 98,100
Profit/(loss) before tax
Av Purchase Price 7.5p (GBP'000) 21,800
Cost (GBP'000) 135 Net Cash (GBP'000) (25,048)
Net Assets October 2016
Valuation (GBP'000) 1,261 (GBP'000) 65,232
COMPANY DESCRIPTION
Idox is a supplier of specialist information management
solutions and services to the public sector and to
highly regulated asset intensive industries around
the world in the wider corporate sector.
Craneware plc 1205.0p
Investment date September 2007 Forecasts for the year to June 2017
Equity held 0.36% Turnover ($'000) 56,700
Profit/(loss) before tax
Av Purchase Price 128.0p ($'000) 17,200
Cost (GBP'000) 125 Net Cash ($'000) 45,098
Valuation (GBP'000) 1,181 Net Assets June 2016 ($'000) 93,779
COMPANY DESCRIPTION
Craneware develops and sells billing software analysis
tools for the United States healthcare services sector.
The company's software automates the checking process,
aids in cash flow and revenue generation, and ensures
accurate submission of claims and managing compliance
risks.
Mexican Grill Ltd 8550.0p
Investment date October 2009 Results for the year to December 2015
Equity held 3.54% Turnover (GBP'000) 21,314
Profit/(loss) before
Av Purchase Price 2,849.9p tax (GBP'000) (475)
Cost (GBP'000) 360 Net Cash (GBP'000) (668)
Net Assets December
Valuation (GBP'000) 1,077 2015 (GBP'000) 4,337
Income recognised in
period (GBP) 0
COMPANY DESCRIPTION
Mexican Grill is a private company that operates 36
fast casual California-Mexican restaurants that provide
fresh, made to order cuisine for eat in or take-away,
making it among the largest chains within its niche.
Co-Investment
As at 31 March 2017, other funds managed by Hargreave
Hale Ltd were also invested in all of the investments
held within the Company's portfolio with the exception
of the following: Infoserve Group plc, Invocas Group
plc, Redcentric plc, Universe Group plc and Vertu
Motors plc.
For further information please contact:
STUART BROOKES
Company Secretary
Hargreave Hale AIM VCT 1 plc
01253 754740
Date: 24 May 2017
STATEMENT OF DIRECTORS' RESPONSIBILITIES
in respect of the half-yearly financial report
In accordance with Disclosure Transparency Rule (DTR) 4.2.10, Aubrey
Brocklebank Bt (Chairman), David Brock and Oliver Bedford, the Directors,
confirm that to the best of their knowledge:
-- The half yearly financial results have been prepared in accordance with
UK GAAP and give a true and fair review of the assets, liabilities,
financial position and profit of the Company as at 31 March 2017 as
required by DTR 4.2.4;
-- The interim management report included within the chairman's statement,
investment manager's report, investment portfolio summary and notes to
the half yearly report includes a fair review of the information required
by the Financial Conduct Authority Disclosure and Transparency Rules,
being;
-- an indication of the important events that have occurred during
the first six months of the financial year and their impact on the
condensed set of financial statements;
-- a description of the principal risks and uncertainties for the
remaining six months of the year; and
-- a description of related party transactions that have taken place
in the first six months of the current financial year, that may
have materially affected the financial position or performance of
the Company during that period and any changes in the related
party transactions described in the last annual report that could
do so.
On behalf of the Board of Directors.
SIR AUBREY BROCKLEBANK BT.
Chairman
Date: 24 May 2017
CONDENSED INCOME STATEMENT
for the six month period to 31 March 2017 (unaudited)
For the six month period to For the six month period to
31 March 2017 (unaudited) 31 March 2016 (unaudited)
Revenue Capital Total Revenue Capital Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Realised gains on investments held at fair value through
profit or loss - 757 757 - 714 714
Unrealised gains on investments held at fair value
through profit or loss - 2,590 2,590 - 413 413
Income 175 15 190 145 - 145
----------- ----------- ----------- ----------- ----------- -----------
175 3,362 3,537 145 1,127 1,272
Management fee (94) (282) (376) (70) (211) (281)
Other expenses (187) (32) (219) (180) - (180)
----------- ----------- ----------- ----------- ----------- -----------
(281) (314) (595) (250) (211) (461)
----------- ----------- ----------- ----------- ----------- -----------
(Loss)/gain on ordinary activities before taxation (106) 3,048 2,942 (105) 916 811
Taxation - - - - - -
----------- ----------- ----------- ----------- ----------- -----------
(Loss)/gain on ordinary activities after taxation (106) 3,048 2,942 (105) 916 811
----------- ---------- ---------- ----------- ---------- ----------
(Loss)/gain per share basic and diluted (Note 2) (0.14)p 4.12p 3.98p (0.20)p 1.72p 1.52p
The total column of this statement is the income statement of the
Company. All revenue and capital items in the above statement derive
from continuing operations. The Company has no other comprehensive
income other than the results for the six month period as set out above.
The accompanying notes are an integral part of these financial
statements.
CONDENSED INCOME STATEMENT
for the year ended 30 September 2016 (audited)
For the year to
30 September 2016 (audited)
Revenue Capital Total
GBP000 GBP000 GBP000
Realised gains on investments held at fair value through
profit or loss - 249 249
Unrealised gains on investments held at fair value
through profit or loss - 3,396 3,396
Income 369 - 369
----------- ----------- -----------
369 3,645 4,014
Management fee (156) (467) (623)
Other expenses (276) - (276)
----------- ----------- -----------
(432) (467) (899)
----------- ----------- -----------
(Loss)/gain on ordinary activities before taxation (63) 3,178 3,115
Taxation - - -
----------- ----------- -----------
(Loss)/gain after taxation (63) 3,178 3,115
----------- ----------- -----------
(Loss)/gain per share basic and diluted (Note 2) (0.11)p 5.69p 5.58p
The total column of this statement is the income statement of the
Company. All revenue and capital items in the above statement derive
from continuing operations. The Company has no other comprehensive
income other than the results for the year as set out above. The
accompanying notes are an integral part of these financial statements.
CONDENSED BALANCE SHEET
as at 31 March 2017 (unaudited)
30
31 March 31 March September
2017 2016 2016
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Fixed assets
Investments at fair value through profit or loss 51,795 34,786 38,572
----------- ----------- -----------
Current assets
Prepayments and accrued income 40 25 44
Cash at bank 11,930 6,806 8,647
----------- ----------- -----------
11,970 6,831 8,691
Creditors: amounts falling due within one year
Accruals and deferred income (202) (194) (191)
----------- ----------- -----------
Net current assets 11,768 6,637 8,500
----------- ----------- -----------
Net assets 63,563 41,423 47,072
----------- ----------- -----------
Capital and Reserves
Called up share capital 814 560 620
Share premium 36,863 17,280 21,845
Capital redemption reserve 31 25 28
Special reserve 17,386 20,335 19,052
Capital reserve - realised (3,267) (3,003) (3,725)
Capital reserve - unrealised 12,241 6,667 9,651
Revenue reserve (505) (441) (399)
----------- ----------- -----------
Total shareholders' funds 63,563 41,423 47,072
----------- ----------- -----------
Net asset value per share basic and diluted (Note 78.12p 73.91p 75.93p
4)
The accompanying notes are an integral part of these financial
statements.
CONDENSED STATEMENT OF CHANGES IN EQUITY
for the six month period to 31 March 2017 (unaudited)
Ordinary
Shares Share Share Capital Special Capital Capital Revenue Total
capital premium redemption reserve reserve reserve reserve
reserve realised unrealised
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 October
2016 620 21,845 28 19,052 (3,725) 9,651 (399) 47,072
Share
buybacks (3) 3 (236) (236)
Share issues 197 15,361 15,558
Issue costs (343) (343)
Equity
dividends
paid (1,430) (1,430)
Realised
gain on
investments 757 757
Unrealised
gain on
investments 2,590 2,590
Management
fee charged
to capital (282) (282)
Arrangement
fee income 15 15
Due
diligence
investment
costs (32) (32)
Revenue
(loss)
after
taxation
for the
period (106) (106)
Total
gain/(loss)
after
taxation 458 2,590 (106) 2,942
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------
At 31 March
2017 814 36,863 31 17,386 (3,267) 12,241 (505) 63,563
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------
Reserves available for distribution are capital reserve realised,
special reserve and revenue reserve. Total distributable reserves at 31
March 2017 were GBP13.61 million. The accompanying notes are an
integral part of these financial statements.
CONDENSED STATEMENT OF CHANGES IN EQUITY
for the six month period to 31 March 2016 (unaudited)
Ordinary
Shares Share Share Capital Special Capital Capital Revenue Total
capital premium redemption reserve reserve reserve reserve
reserve realised unrealised
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 October
2015 482 10,987 16 22,044 (3,506) 6,254 (336) 35,941
Share
buybacks (9) 9 (631) (631)
Share issues 87 6,412 6,499
Issue costs (119) (119)
Equity
dividends
paid (1,078) (1,078)
Realised
gain on
investments 714 714
Unrealised
gain on
investments 413 413
Management
fee charged
to capital (211) (211)
Revenue
(loss)
after
taxation
for the
period (105) (105)
Total
gain/(loss)
after
taxation 503 413 (105) 811
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------
At 31 March
2016 560 17,280 25 20,335 (3,003) 6,667 (441) 41,423
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------
Reserves available for distribution are capital reserve realised,
special reserve and revenue reserve. Total distributable reserves at 31
March 2016 were GBP16.89 million. The accompanying notes are an
integral part of these financial statements.
CONDENSED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 September 2016 (audited)
Ordinary
Shares Share Share Capital Special Capital Capital Revenue Total
capital premium redemption reserve reserve reserve reserve
reserve realised unrealised
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 October
2015 482 10,987 16 22,044 (3,506) 6,254 (336) 35,941
Share
buybacks (12) 12 (846) (846)
Share issues 150 11,093 11,243
Issue costs (235) (235)
Equity
dividends
paid (2,146) (2,146)
Realised
gain on
investments 248 248
Unrealised
gain on
investments 3,397 3,397
Management
fee charged
to capital (467) (467)
Revenue
(loss)
after
taxation
for the
period (63) (63)
Total
(loss)/gain
after
taxation (219) 3,397 (63) 3,115
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------
At 30
September
2016 620 21,845 28 19,052 (3,725) 9,651 (399) 47,072
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------
Reserves available for distribution are capital reserve realised,
special reserve and revenue reserve. Total distributable reserves at 30
September 2016 were GBP14.93 million. The accompanying notes are an
integral part of these financial statements.
CONDENSED STATEMENT OF CASH FLOWS
for the six month period to 31 March 2017 (unaudited)
31 March 2017 31 March 2016 30 September 2016*
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Total gain on ordinary
activities after taxation 2,942 811 3,115
Realised (gain) on
investments (757) (714) (248)
Unrealised (gain) on
investments (2,590) (413) (3,397)
Decrease/(increase) in
debtors 4 7 (12)
Increase/(decrease) in
creditors 11 (14) (17)
----------- ----------- -----------
Net cash (outflow) from
operating activities (390) (323) (559)
Cash flows from investing
activities
Purchase of investments (14,270) (7,290) (13,410)
Sale of investments 4,394 5,984 10,836
----------- ----------- -----------
Net cash (outflow) from
investing activities (9,876) (1,306) (2,574)
Cash flows from financing
activities
Proceeds from share issues 15,558 6,499 11,243
Share issue costs (343) (119) (235)
Share buybacks (236) (631) (846)
Dividends paid (1,430) (1,078) (2,146)
----------- ----------- -----------
Net cash from financing
activities 13,549 4,671 8,016
----------- ----------- -----------
Increase in cash 3,283 3,042 4,883
----------- ----------- -----------
Analysis of net funds
Opening cash 8,647 3,764 3,764
Cash movement 3,283 3,042 4,883
Closing cash 11,930 6,806 8,647
* 30 September 2016 cash flow represents annual results
The accompanying notes are an integral part of these financial
statements.
EXPLANATORY NOTES
for the six month period to 31 March 2017 (unaudited)
1. ACCOUNTING POLICIES
A summary of the principal accounting policies, all of which have been
applied consistently throughout the period, is set out below:
Basis of preparation
The Company has prepared its half-yearly financial results for the six
month period ending 31 March 2017 in accordance with Financial Reporting
Standard 104 (FRS104) and the Statement of Recommended Practice for
"Financial Statements of Investment Trust Companies and Venture Capital
Trusts" (the SORP).
The same accounting policies and methods of computation are followed in
the half-yearly financial results as compared with the most recent
annual financial statements.
Investments
All investments are classified as fair value through profit or loss.
Investments are measured initially and subsequently at fair value which
is deemed to be bid market prices for listed investments and investments
traded on AIM. Unquoted investments are valued using the most
appropriate methodology recommended by the International Private Equity
Venture Capital ("IPEV") guidelines.
Where the classification of a financial instrument requires it to be
stated at fair value, this is determined by reference to the quoted bid
price in an active market wherever possible. Where no such active market
exists for the particular asset or liability the Company holds the
investment at cost for a period where there is considered to be no
change in fair value.
Valuations of unquoted investments are reviewed on a six monthly basis
and more frequently if events occur that could have a material impact on
the investment. Where cost is no longer considered appropriate the
Company will use a value indicated by a material arms-length transaction
by an independent third party in the shares of a company. Where no such
transaction exists the Company will use the most appropriate valuation
technique including discounted cash flow analysis, earnings multiples,
net assets and industry valuation benchmarks. All inputs are market
observable with the exception of level C financial instruments.
Investments are recognised and derecognised at trade date where a
purchase or sale is under a contract whose terms require delivery within
the time frame established by the market concerned. Purchases and sales
of unlisted investments are recognised when the contract for acquisition
or sale becomes unconditional. Transaction costs are included in the
initial book cost or deducted from the disposal proceeds as appropriate.
These investments will be managed and their performance evaluated on a
fair value basis in accordance with a documented investment strategy and
information about them is provided internally on that basis to the
Board.
Gains and losses arising from changes in fair value (realised and
unrealised) are included in the net profit or loss for the period as a
capital item in the income statement and are taken to the unrealised
capital reserve or realised capital reserve as appropriate.
If an investment has been impaired such that there is no realistic
expectation that there will be a full return from the investment, the
loss is treated as a permanent impairment and transferred to the capital
reserve realised.
Financial Instruments - fair value measurement hierarchy
FRS 102 requires certain disclosures which require the classification of
financial assets and financial liabilities measured at fair value using
a fair value hierarchy that reflects the significance of the inputs used
in making the fair value measurement.
The fair value hierarchy has the following levels:
Level Methodology
(a) The best evidence of fair value is a quoted price
for an identical asset in an active market. Quoted
in an active market in this context means quoted prices
are readily and regularly available and those prices
represent actual and regularly occurring market transactions
on an arm's length basis. The quoted price is usually
the current bid price.
(b) When quoted prices are unavailable, the price of a
recent transaction for an identical asset provides
evidence of fair value as long as there has not been
a significant change in economic circumstances or
a significant lapse of time since the transaction
took place. If the entity can demonstrate that the
last transaction price is not a good estimate of fair
value (e.g. because it reflects the amount that an
entity would receive or pay in a forced transaction,
involuntary liquidation or distress sale), that price
is adjusted.
(c) If the market for the asset is not active and recent
transactions of an identical asset on their own are
not a good estimate of fair value, an entity estimates
the fair value by using a valuation technique. The
objective of using a valuation technique is to estimate
what the transaction price would have been on the
measurement date in an arm's length exchange motivated
by normal business considerations.
Level (b) Level (c) Total
Level (a) Investments Investments Investments Investments
GBP'000 GBP'000 GBP'000 GBP'000
Six months ended
31 March
2017(unaudited) 40,169 6,459 5,167 51,795
Year ended 30
September 2016
(audited) 33,149 2,206 3,217 38,572
Six months ended
31 March
2016(unaudited) 30,659 1,495 2,632 34,786
Key judgements and estimates
The preparation of the financial statements requires the Board to make
judgements and estimates that affect the application of policies and
reported amounts of assets, liabilities, income and expenses. Key
estimation uncertainties mainly relate to the fair valuation of unquoted
investments, which are based on historical experience and other factors
that are considered reasonable including the transfer price of the most
recent transaction on an arm's length basis. The estimates are under
continuous review with particular attention paid to the carrying value
of the investments. The process of estimation is also affected by the
determination of the fair value hierarchy.
Income
Equity dividends are taken into account on the ex-dividend date, net of
any associated tax credit. Fixed returns on non-equity shares and debt
securities are recognised on a time apportionment basis so as to reflect
the effective yield, provided there is no reasonable doubt that payment
will be received in due course. All other income, including deposit
interest receivable, is recognised on an accruals basis. All revenue and
capital items in the unaudited income statement derive from continuing
operations. There are no other items of comprehensive income other than
those disclosed in the unaudited income statement.
Expenditure
All expenditure is accounted for on an accruals basis. 75% of management
fees are allocated to the capital reserve realised and 25% to the
revenue account in line with the Board's expected long term split of
investment returns in the form of capital gains to the capital column of
the income statement. All other expenditure is charged to the revenue
account.
Trail commission
Trail commission previously due is held as a creditor until such time as
claims are made by the relevant intermediary and supporting
documentation provided. If claims are not received these amounts are
written off after a period of six years.
Capital reserves
Realised profits and losses on the disposal of investments, due
diligence costs and income in relation to private company investments,
losses realised on investments considered to be permanently impaired and
75% of investment management fees are accounted for in the capital
reserve realised.
Increases and decreases in the valuation of investments held at the year
end are accounted for in the capital reserve unrealised.
Operating segments
There is considered to be one operating segment as reported to the chief
operating decision maker being investment in equity and debt securities.
Taxation
Deferred tax is recognised in respect of all timing differences that
have originated but not yet reversed at the balance sheet date. Deferred
tax assets are only recognised to the extent that recovery is probable
in the foreseeable future.
Current tax is expected tax payable on the taxable revenue for the
period using the current tax rate. The tax effect of different items of
income and expenditure is allocated between capital and revenue on the
same basis as the particular item to which it relates.
Approved VCTs are exempt from tax on capital gains from the sale of
fixed asset investments. The Directors intend that the Company will
continue to conduct its affairs to maintain its VCT status, no deferred
tax has been provided in respect of any capital gains or losses arising
from the revaluation or disposal of investments.
Dividends
Only dividends recognised during the year are deducted from revenue or
capital reserves. Final and interim dividends are recognised in the
accounts when the Company's liability to pay them has been established.
Summary of dividends paid in the six months to 31 March 2017 and the
financial year ending 30 September 2016 are detailed below:
Year
Six months ended 30
ended 31 September
March 2017 2016
(unaudited) (audited)
GBP'000 GBP'000
Final capital dividend of 2.25 pence per share for
the year ended 30 September 2015 paid on 20 January
2016 - 1,079
Interim capital dividend of 1.75 pence per share for
the half year ended 31 March 2016 paid on 8 July 2016 - 1,067
Final capital dividend of 2.25 pence per share for
the year ended 30 September 2016 paid on 17 January
2017 1,430 -
Total 1,430 2,146
Functional currency
In accordance with FRS 102 s.30, the Company is required to nominate a
functional currency, being the currency in which the Company
predominantly operates. The Board has determined that sterling is the
Company's functional currency. Sterling is also the currency in which
these accounts are presented.
Repurchase of shares to hold in treasury
The cost of repurchasing shares into treasury, including the related
stamp duty and transaction costs is charged to special reserve and dealt
with in the statement of changes in equity. Share repurchase
transactions are accounted for on a trade date basis. Where shares held
in treasury are subsequently cancelled, the nominal value of those
shares is transferred out of share capital and into capital redemption
reserve.
Should shares held in treasury be reissued, the sale proceeds will be
treated as a realised profit up to the amount of the purchase price of
those shares and will be transferred to capital reserves. The excess of
the sale proceeds over the purchase price will be transferred to share
premium.
Contingencies, guarantees and financial commitments
There were no contingencies, guarantees or financial commitments of the
Company at 31 March 2017.
Legal form and principal activities
The Company was incorporated and registered in England and Wales on 16
August 2004 under the Companies Act 1985, registered number 5206425.
The Company has been approved as a Venture Capital Trust by HMRC under
section 259 of the Income Taxes Act 2007. The shares of the Company were
first admitted to the Official List of the UK Listing Authority and
trading on the London Stock Exchange on 29 October 2004 and can be found
under the TIDM code "HHV". The Company is premium listed.
The Company's principal activity is to invest in a diversified portfolio
of qualifying small UK based companies, primarily trading on AIM, with a
view to maximising tax free dividend distributions to shareholders.
The Company is an externally managed fund with a Board comprising of
three non-executive directors. Hargreave Hale Limited acts as investment
manager, administrator and custodian to the Company and provide the
company secretary.
The Board has overall responsibility for the Company's affairs including
the determination of its investment policy, however, the Board may
exercise these responsibilities through delegation to Hargreave Hale as
it considers appropriate.
The Directors have managed and continue to manage the Company's affairs
in such a manner as to comply with Section 259 of the Income Taxes Act
2007.
The Company's registered office is Accurist House, 44 Baker Street,
London, W1U 7AL.
CAPITAL STRUCTURE
Share capital
Ordinary shares are classed as equity. The ordinary shares in issue have
a nominal value of one pence and carry one vote each.
Reserves
A description of each of the reserves follows:
Share premium
This reserve represents the difference between the issue price of shares
and the nominal value of shares at the date of issue, net of related
issue costs.
Capital redemption reserve
This reserve is used for the cancellation of shares bought back under
the buyback facility.
Special reserve
Distributable reserve used to pay dividends and re-purchase shares under
the buyback facility.
Capital reserve realised
Gains/losses on disposal of investments, due diligence costs and income
from private company investments, permanent impairment of financial
assets and 75% of the investment management fee are accounted for in the
capital reserve realised.
Capital reserve unrealised
Unrealised gains and losses on investments held at the year-end arising
from movements in fair value are taken to the capital reserve
unrealised.
Revenue reserve
Net revenue returns and losses of the Company.
1. EARNINGS PER SHARE (BASIC AND DILUTED)
The gain per ordinary share of 3.98 pence at 31 March 2017 (31 March
2016: 1.52 pence and 30 September 2016: gain 5.58 pence) is based on a
net gain for the period of GBP2,942,172 (31 March 2016: gain GBP810,996
and 30 September 2016: gain GBP3,115,012) and the weighted average
number of ordinary shares in issue over the period of 73,942,080 (31
March 2016: 53,331,291 and 30 September 2016: 55,810,087).
1. CAUTIONARY STATEMENT
The results should not be taken as a guide to the results for the
financial period ending 30 September 2017. This report may contain
forward looking statements with regards to the financial condition and
results of the Company, which are made in the light of current economic
and business circumstances. Nothing in this report should be considered
as a profit forecast.
1. NET ASSET VALUE PER SHARE
The net asset value per ordinary share at 31 March 2017 of 78.12 pence
(31 March 2016: 73.91 pence and 30 September 2016: 75.93 pence) after
deducting the 2.25 pence dividend paid in January 2017 is based on net
assets of GBP63,562,650 (31 March 2016: GBP41,422,656 and 30 September
2016: GBP47,071,964) and on 81,370,569 shares (31 March 2016: 56,044,604
shares and 30 September 2016: 61,995,274 shares), being the number of
ordinary shares in issue as at 31 March 2017.
1. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information contained in the 31 March 2017 income
statement, balance sheet, statement of cash flows and statement of
changes in equity does not constitute full financial statements and has
not been audited.
1. PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks facing the Company relate to the Company's
investment activities and include venture capital trust approval,
investment, discount volatility, compliance, economic, fraud,
operational, reputational, liquidity and outsourcing risk. Other risks
faced by the Company include market risk, currency risk, interest rate
risk and credit risk. These risks and the way in which they are managed
are described in more detail in the Company's annual report and accounts
for the year ended 30 September 2016. The Company's principal risks and
uncertainties have not changed materially since the date of that report.
1. TRANSACTIONS IN SHARES
Buybacks
In total, the Company repurchased 318,221 shares during the six month
period ending 31 March 2017 at a total cost of GBP236,079. The
repurchased shares represent 0.51% of ordinary shares in issue on 1
October 2016. The acquired shares have been cancelled.
Share issues
In total, the Company issued 19,693,516 new shares (nominal value
GBP196,935) during the six month period ending 31 March 2017 raising net
proceeds of GBP15,214,886.
1. RELATED PARTY TRANSACTIONS
Hargreave Hale Limited is considered to be a related party to the
Company. Oliver Bedford, a non-executive director of the Company and a
member of its key management personnel, is an employee of Hargreave Hale
Limited. In addition Hargreave Hale Limited acts as investment manager,
administrator and custodian to the Company and it provides the company
secretary. All of the support functions performed by Hargreave Hale
Limited are segregated by department and location and are independent of
each other.
Hargreave Hale Limited in its capacity as investment manager of the fund
receives annual fees of 1.5% per annum of the net assets of the Company,
calculated and payable quarterly in arrears. Fees for the half-year are
GBP376,830 (2016: GBP281,241). In relation to the other support
functions described above, Hargreave Hale Limited also provides
administration services, custody services, company secretarial services
and one non-executive director and received fees of GBP50,000 in the
period (2016: GBP40,000) in relation to these services. Of those fees,
GBP90,032 (2016: GBP48,972) was still owed at the half-year end.
Hargreave Hale Limited has agreed to indemnify the Company against
annual running costs (such costs excluding VAT, any performance
incentive fee and any trail commissions the payment of which is the
responsibility of the Company) exceeding 3.5% of its net assets. No fees
were waved by Hargreave Hale in the first half of the financial year
under the indemnity.
During the half year, the Company issued 19,693,516 ordinary shares
(nominal value GBP196,935) in a joint offer for subscription which
resulted in gross funds being received of GBP15,545,734. As marketing
adviser and receiving agent to the Company, and in return for covering
the costs of the joint offer, Hargreave Hale Limited was entitled to
3.5% of the gross proceeds (GBP544,101), often referred to as the
'premium'. From this, Hargreave Hale Limited paid for the allotment of
additional shares to investors with a value of GBP213,253 and introducer
commission of GBP740, resulting in net fees payable to Hargreave Hale of
GBP330,108.
1. GOING CONCERN
After making enquires, the Directors have a reasonable expectation that
the Company has adequate resources to continue in operational existence
for the foreseeable future. For this reason, they continue to adopt the
going concern basis in preparing the financial statements.
1. POST BALANCE SHEET EVENTS
Issue of equity
Following the period end, the offer for subscription resulted in an
additional 844,468 ordinary shares being issued, raising gross proceeds
of GBP671,931.
Buybacks
Since the period end, a further 206,867 ordinary shares have been
repurchased at a total value of GBP158,516.
New investments
The Company has invested in the following new companies since the period
end:
Qualifying companies
An investment of GBP618k has been made in Dorcaster plc, GBP501k in Zoo
Digital Group plc and GBP332k in Velocity Composites plc.
SHAREHOLDER INFORMATION
The Company's ordinary shares (Code: HHV) are listed on the London Stock
Exchange. Shareholders can visit the London Stock Exchange website,
www.londonstockexchange.com, for the latest news and share prices of the
Company. Further information for the Company can be found on its website
at www.hargreaveaimvcts.co.uk.
NET ASSET VALUE PER SHARE
The Company's NAV per share as at 19 May 2017 was 81.55 pence per share.
The Company publishes its unaudited NAV per share on a weekly basis.
DIVIDENDS
The board has approved the payment of an interim dividend of 1.75 pence
in respect of the six months ended 31 March 2017.
Shareholders who wish to have future dividends paid directly into their
bank account rather than sent by cheque to their registered address can
complete a mandate for this purpose. Mandates can be obtained by
contacting the Company's Registrar, Equiniti.
SELLING YOUR SHARES
Hargreave Hale AIM VCT 1 plc operates a share buy-back policy to improve
the liquidity in its ordinary shares for cancellation. Share buy-back
policies are subject to the Act, the Listing Rules and tax legislation,
which may restrict the VCTs' ability to buy shares back in. The policy
is non-binding and is at the discretion of the Board.
The buy-back policy targets a 5% discount to the last published NAV per
share as announced on the London Stock Exchange through a regulatory
news service provider. The discount is measured against the mid-price
per share as listed on the London Stock Exchange and reflects the price
at which the Company buys its shares off the market makers. The Company
publishes its unaudited NAV per share on a weekly basis.
VCT share disposals settle two business days post trade if the shares
are already dematerialised or placed into CREST ahead of the trade, or
ten days post trade if the stock is held in certificated form.
VCT share disposals are exempt of capital gains tax when the disposal is
made at arms' length, which means a shareholder must sell their shares
to a market maker through a stockbroker or another share dealing
service. Hargreave Hale has particular expertise in the sale of VCT
shares and is able to act for VCT shareholders who wish to sell their
shares. However, you are free to nominate any stockbroker or share
dealing service to act for you. If you would like Hargreave Hale to act
for you as their client (as opposed to a shareholder in the Company)
then please contact Andrew Pang for further information (020 7009 4900,
andrew.pang@hargreave.com).
Please note that Hargreave Hale will need to be in possession of the
share certificate and a completed CREST transfer form before executing
the sale. If you have lost your share certificate, then you can request
a replacement certificate from the Company's registrar Equiniti. The
registrar will send out an indemnity form, which you will need to sign.
The indemnity form will also need to be countersigned by a UK insurance
company or bank that is a member of the Association of British Insurers.
Since indemnification is a form of insurance, the indemnifying body will
ask for a payment to reflect their risk. Fees will reflect the value of
the potential liability.
SHAREHOLDER ENQUIRIES:
For general Shareholder enquiries, please contact Hargreave Hale Limited
on 01253 754700 or by e-mail to aimvct@hargreave.com.
For enquiries concerning the performance of the Company, please contact
the investment manager on 0207 009 4937 or by e-mail to
aimvct@hargreave.com.
Electronic copies of this report and other published information can be
found on the Company's website at www.hargreaveaimvcts.co.uk.
CHANGE OF ADDRESS
To notify the Company of a change of address please contact the
Company's Registrar.
COMPANY INFORMATION
SECRETARY AND REGISTERED OFFICE DIRECTORS
Stuart Brookes Sir Aubrey Brocklebank
Accurist House David Brock
44 Baker Street Oliver Bedford
London
W1U 7AL
MANAGER AUDITORS
Hargreave Hale Limited BDO LLP
Accurist House 55 Baker Street
44 Baker Street London
LONDON W1U 7EU
W1U 7AL
REGISTRARS VCT STATUS ADVISER
Equiniti Philip Hare & Associates LLP
Aspect House 4-6 Staple Inn
Spencer Road High Holborn
Lancing London
West Sussex WC1V 7QH
BN99 6DA
SOLICITORS BROKERS
Howard Kennedy Singer Capital Markets Limited
No. 1 London Bridge One Hanover Street
London London
SE1 9BG W1S 1YZ
COMPANY REGISTRATION NUMBER
05206425 in England and Wales
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: Hargreave Hale AIM VCT 1 plc via Globenewswire
https://hargreaveaimvcts.co.uk/
(END) Dow Jones Newswires
May 24, 2017 12:12 ET (16:12 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
1 Year Hargreave Hale Aim Vct Chart |
1 Month Hargreave Hale Aim Vct 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
