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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Hargreave 2 | LSE:HHVT | London | Ordinary Share | GB00B1GDYS53 | 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% | 112.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMHHVT
Hargreave Hale AIM VCT 2 Plc
Unaudited Interim Results for the six month period ending 31 August 2016
FINANCIAL HIGHLIGHTS
31 31 29
August August February
Ordinary Shares (as at 31 August): 2016 2015 2016*
Net asset value per share 104.58p 106.62p 101.18p
Cumulative distributions paid per share since launch 47.00p 41.00p 43.00p
Total return per share 151.58p 147.62p 144.18p
Half Yearly/Annual Returns per share (basic and
diluted):
Revenue return (0.09)p (0.52)p (0.98)p
Capital return 7.04p 0.93p (2.41)p
Combined return 6.95p 0.41p (3.39)p
Dividends per share:
Interim proposed/paid 2.00p 2.00p 2.00p
Final paid 4.00p 4.00p 4.00p
Ongoing expense ratio** 2.09% 2.41% 2.28%
Performance Benchmark:
FTSE AIM All-share Index (rebased to 100 at 6 April
2007) 68.38 63.49 66.01
* 29 February 2016 financial highlights represent annual results
** Calculated as total expenses (annualised for half yearly results)
minus ad hoc legal costs, 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 gilts, other fixed
interest and bank deposits) and non-qualifying equity investments on an
opportunistic basis to boost the Company's performance. 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 per share
(NAV) increased from 101.18 pence to 104.58 pence equivalent to an
increase of 7.3% after adding back the 4 pence dividend distributed in
July 2016. During the same period the FTSE 100 Total Return Index gained
14.0% and the FTSE AIM All Share Index gained 15.1%.
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 in November 2015. By and large, based on the
investments that we made during the last 18 months, we do not think
these rules will greatly affect the fund. One change which is certain is
that we will no longer be able to invest our non-qualifying monies into
AIM listed stocks directly. We will be able to continue to invest via
the Marlborough Special Situations Fund and we will be free to invest in
companies listed on the main market. Under the new guidelines, gilts
would appear not to be an allowable investment; however, we are seeking
clarification on this from HMRC.
RESULTS
The gain per share for the six month period was 6.95 pence per share
(comprising revenue losses of 0.09 pence and capital gains of 7.04
pence). At 31 August 2016 the total return since inception of the fund
was 151.58 pence.
INVESTMENTS
The investment manager, Hargreave Hale Limited, invested a further
GBP2.06 million in eleven qualifying companies during the period. The
fair value of qualifying investments at 31 August 2016 was GBP16.32
million invested in sixty AIM companies and three unquoted companies
(Mexican Grill Ltd, Portr Ltd and Laundrapp Ltd). The balance of the
funds was held in a mix of cash, fixed income and other non-qualifying
equities.
At 31 August 2016 the VCT was 81.4% invested in qualifying companies
calculated in accordance with HMRC guidelines.
DIVID
A final dividend for the year ended 29 February 2016 of 4 pence was paid
on 20 July 2016.
The Directors continue to maintain a policy of distributing at least 5%
of the year end NAV to shareholders. An interim dividend of 2 pence
(2015 - 2p) will be paid on 2 December 2016, with an ex-dividend date of
10 November 2016 and a record date of 11 November 2016.
BUYBACKS
We have been able to maintain our policy of offering our shareholders an
efficient exit route through the buyback scheme. In total, 197,045
shares were repurchased during the six month period ending 31 August
2016 at a weighted average price of 99.56 pence per share. Since the
period end 101,778 shares have been purchased at a cost of GBP100,825.
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.
ISSUE OF EQUITY
The Directors of the Company announced on 2 December 2015 the launch of
a new joint offer for subscription for shares in both Hargreave Hale AIM
VCTs to raise up to GBP15 million in Hargreave Hale AIM VCT 1 plc and up
to GBP10 million in the Company. The offer was approved by shareholders
of the Company at a general meeting on 12 January 2016 and is open to
both new and existing shareholders. On 6 July 2016, the Directors
announced their intention to utilise the over-allotment facility to
increase the number of shares available for subscription in the Company
by GBP5 million.
Since its launch, the offer has resulted in gross funds being received
of GBP10.78 million and the issue of 10.15 million new shares in
Hargreave Hale AIM VCT 2 plc. The offer will close at 12pm on 16
November 2016 or earlier if the maximum subscription has been reached
before then.
ELECTRONIC COMMUNICATIONS
Your Board believes that adopting electronic communications would be
beneficial to the Company and its shareholders. The benefits include
substantial cost savings and improved timeliness and transparency of
communications. The Board intends to seek authority at the Company's
next general meeting.
OUTLOOK
The period under review includes the EU Referendum, a time of
considerable market volatility. Our portfolio comprises mostly domestic
companies that are yet to see as much benefit from sterling`s
devaluation as the wider market. In these circumstances, we are
reasonably pleased with the fund`s performance albeit it has lagged the
indices. Post Brexit, the economy seems to have performed much better
than many had predicted. However, there remains plenty of room for
caution with uncertainty around what, in reality, Brexit will mean for
the economy and business in the longer term.
SHAREHOLDER COMMUNICATION
The Company's daily share price can be found on various financial
websites under the EPIC code 'HHVT'.
DAVID HURST-BROWN
Chairman
Date: 3 November 2016
INVESTMENT MANAGER'S REPORT
This report covers the first half of the financial year, 1 March 2016 to
31 August 2016. The manager's report contains references to movements in
the Net Asset Value per share (NAV) and Total Return per share (net
asset value 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 within 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 has been an interesting and at times challenging
one for UK equities. March and April were very strong as the mood in
global markets dramatically improved after a poor start to the year.
This was largely because a number of central banks either intervened or
appeared set to intervene in financial markets to ensure stability, with
support from a rally in global commodities driven by improving economic
data from China. In June, the UK's decision to leave the European Union
led to severe volatility in equity markets and we regret to inform that
we were not immune to the chaos that followed the vote to leave. The NAV
fell 5.3% in June, from 106.00p to 100.35p. Some soothing words from the
Bank of England restored much needed stability in the market and allowed
the NAV to recover. Investors have since had time to reflect on the
potential consequences of our decision to leave the European Union and
assess the impact of a weaker currency on the UK economy and foreign
denominated earnings. The stock market has been remarkably strong,
although the response at the bottom end of the market was more muted
initially.
We feel it is too early to know the impact (if any) of Brexit on our
portfolio; that seems unlikely to change in the short-term. By and large
we have left the portfolio of qualifying and non-qualifying investments
untouched. We went into the referendum with 17% cash and continue to
maintain a healthy cash balance. While we are cautious of certain
sectors, financials and consumer discretionary for example, we continue
to find interesting investment opportunities in qualifying companies
that we believe can grow regardless of the outcome. To that end, we
intend to continue with business as usual while keeping a close eye on
events as they unfold and, perhaps, reducing at the margin some of our
non-qualifying equity risk.
PERFORMANCE
In the six months to 31 August 2016, the NAV increased from 101.18p to
104.58p. A 4 pence per share dividend was paid, giving investors a total
return of 7.40 pence per share, which translates to a gain of 7.3%.
During the same period the FTSE AIM All-Share Total Return gained 15.1%,
whilst the FTSE 100 gained 11.2% (14.0% on a total return basis).
The qualifying investments made a net contribution of 4.29 pence per
share with thirty-six out of the seventy making gains, five unchanged
and twenty-nine losing ground. The balance was the net of non-qualifying
portfolio gains, running costs and investment income.
DP Poland was the top performing qualifying investment (+100.0%, +1.63
pence per share) as the shares responded to a set of strong results in
March, an encouraging trading update in July and substantial director's
buying. Science in Sport also performed well (+45.8%, +0.63 pence per
share) after reporting a strong interim trading update in July. Total
sales increased 24%, driven by strong growth in the UK e-commerce
platform and the tangible evidence of traction in international markets.
Other stocks that made a significant contribution included Surface
Transforms (+62.5%, +0.40 pence per share) and Fulcrum Utility (+50.5%,
+0.41 pence per share).
The biggest losses within the period came from Eagle Eye (-43.8%, -0.43
pence per share) after they downgraded their 2016 revenue estimates in a
June trading update. Other losses came from Learning Technologies Group
(-13.9%, -0.38 pence per share), Microsaic (-78.4%, -0.34 pence per
share) and Lombard Risk (-33.3%, -0.25 pence per share).
We invested GBP2.06m into eleven qualifying investments over the period,
three further investments into existing qualifying companies (one
private company); four IPOs; three secondary placings into listed
companies and one additional private investment.
Within the qualifying portfolio we reduced our investments in DP Poland,
Imaginatik and Directa Plus. All three companies experienced strong runs
in the market. We completely exited Sphere Medical and Nektan following
prolonged periods of poor progress. We also exited Tangent
Communications through a Management Buyout.
PORTFOLIO STRUCTURE
The VCT is comfortably through the HMRC defined investment test and
ended the period at 81.4% invested as measured by the HMRC investment
test. By market value, the VCT had a 45.7% weighting to qualifying
investments.
The allocation to non-qualifying equity investments increased marginally
from 18.4% to 19.0%. We continued to make use of the Marlborough
Special Situations Fund as a temporary home for proceeds from
fundraising; the allocation marginally decreased from 13.1% to 11.0%.
The non-qualifying investments contributed +3.68 pence per share to the
overall gains. Fixed income as a percentage of the fund increased from
0.9% to 2.1% and cash fell from 23.4% to 22.7%.
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
interim management statement. 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 PERIOD UPDATE
Deal flow has been good since period end and we have made three follow
on investments in existing qualifying holdings, one investment in a new
listed qualifying company and one investment in an unquoted qualifying
company. We also have a number of deals in the pipeline which we expect
to complete in the coming weeks.
For further information, please contact:
STUART BROOKES
Company Secretary
Hargreave Hale AIM VCT2 plc
01253 754740
Date: 3 November 2016
INVESTMENT PORTFOLIO SUMMARY as at 31 August 2016
Book
Cost Valuation Valuation Net Assets Sector
Qualifying
investments GBP000 GBP000 % %
Mexican Grill Ltd
(A Preference Consumer
Shares)* 277 1,154 4.16 3.23 Discretionary
Information
Trakm8 Holdings plc 91 931 3.35 2.61 Technology
Consumer
DP Poland plc 262 872 3.14 2.44 Discretionary
Learning
Technologies Group Information
plc 534 788 2.84 2.21 Technology
Information
Ideagen plc 190 743 2.68 2.08 Technology
Science in Sport Consumer
plc 518 673 2.42 1.88 Discretionary
Consumer
Quixant plc 120 600 2.16 1.68 Discretionary
Information
Portr Ltd* 538 538 1.94 1.51 Technology
Animalcare Group
plc 100 458 1.65 1.28 Health Care
Consumer
TLA Worldwide plc 150 405 1.46 1.13 Discretionary
Fulcrum Utility
Services Ltd 100 365 1.31 1.02 Utilities
Surface Transforms
plc 217 351 1.26 0.98 Industrials
Osirium Information
Technologies plc 301 346 1.25 0.97 Technology
Belvoir Lettings
plc 335 323 1.16 0.90 Real Estate
Information
Gfinity plc 290 312 1.12 0.87 Technology
Information
Laundrapp Ltd* 301 300 1.08 0.84 Technology
Information
Loopup Group plc 257 297 1.07 0.83 Technology
Information
Intercede Group plc 91 284 1.02 0.79 Technology
Hardide plc 76 255 0.92 0.71 Materials
Information
Sanderson Group plc 200 255 0.92 0.71 Technology
Tristel plc 79 254 0.92 0.71 Health Care
Premaitha Health
plc 330 234 0.84 0.66 Health Care
Angle plc 252 233 0.84 0.65 Health Care
Information
ULS Technology plc 139 229 0.83 0.64 Technology
Consumer
Medaphor Group plc 251 228 0.82 0.64 Discretionary
Everyman Media Consumer
Group plc 172 223 0.80 0.62 Discretionary
Clearstar Inc 360 221 0.80 0.62 Industrials
CentralNic Group Information
plc 207 218 0.79 0.61 Technology
Plastics Capital
plc 202 216 0.78 0.60 Materials
Reneuron Group plc 262 199 0.72 0.56 Health Care
Eagle Eye Solutions Information
plc 385 192 0.69 0.54 Technology
Maxcyte Inc 160 187 0.67 0.52 Health Care
Information
Mirada plc 393 180 0.65 0.50 Technology
Information
E G Solutions plc 200 178 0.64 0.50 Technology
Electrical
Geodesics Inc 145 174 0.63 0.49 Health Care
Lombard Risk Information
Management plc 92 172 0.62 0.48 Technology
Directa Plus plc 83 162 0.58 0.45 Materials
Satellite Solutions
Worldwide Group Information
plc 103 160 0.58 0.45 Technology
APC Technology Information
Group plc 350 149 0.54 0.42 Technology
Omega Diagnostics
Group plc 129 148 0.53 0.41 Health Care
Kalibrate Information
Technologies plc 161 147 0.53 0.41 Technology
EKF Diagnostics
Holdings plc 150 145 0.52 0.41 Health Care
Flowgroup plc 268 145 0.52 0.41 Industrials
MartinCo plc 113 141 0.51 0.39 Real Estate
Genedrive plc 140 131 0.47 0.37 Health Care
Consumer
Electric Word plc 185 128 0.46 0.36 Discretionary
Mexican Grill Ltd
(Ordinary Consumer
Shares)* 31 128 0.46 0.36 Discretionary
Paragon
Entertainment Ltd 200 100 0.36 0.28 Industrials
Verona Pharma plc 71 100 0.36 0.28 Health Care
Information
Cloudcall Group plc 234 97 0.35 0.27 Technology
Porta
Communications Consumer
plc 200 95 0.34 0.27 Discretionary
Midatech Pharma plc 150 93 0.34 0.26 Health Care
Information
Audioboom plc 126 87 0.31 0.24 Technology
Information
Imaginatik plc 164 85 0.31 0.24 Technology
Lidco Group plc 146 84 0.30 0.24 Health Care
Fusionex Information
International plc 69 79 0.28 0.22 Technology
Haydale Graphene
Industries plc 64 67 0.24 0.19 Materials
Synairgen plc 90 58 0.21 0.16 Health Care
Information
WANDisco plc 53 53 0.19 0.15 Technology
TP Group plc 125 50 0.18 0.14 Industrials
Ilika plc 53 49 0.18 0.14 Industrials
Microsaic Systems Information
plc 272 30 0.11 0.08 Technology
Mycelx Technologies
Corporation plc
(D1 shares) 150 13 0.05 0.04 Industrials
Information
Mporium Group plc 150 11 0.04 0.03 Technology
------- -------- ---------- ----------
Total-qualifying
investments 12,607 16,323 58.80 45.68
------- -------- ---------- ----------
Book Net
Cost Valuation Valuation Assets Sector
Non-Qualifying
investments GBP000 GBP000 % %
UK Treasury Stock
0.125% 2068 312 449 1.62 1.26
UK Treasury Stock 2.5%
2024 121 130 0.47 0.36
-------- -------- -------- --------
Total - UK gilts 433 579 2.09 1.62
-------- -------- -------- --------
Scottish Amicable 8.5%
2049 154 161 0.58 0.45
-------- -------- -------- --------
Total - Corporate bonds 154 161 0.58 0.45
-------- -------- -------- --------
MFM Special Situations
Fund* 3,280 3,921 14.13 10.98
-------- -------- -------- --------
Total - Unit Trusts 3,280 3,921 14.13 10.98
-------- -------- -------- --------
Royal Dutch Shell plc 333 388 1.40 1.09 Energy
Melrose Industries plc 278 368 1.33 1.03 Industrials
BP plc 288 365 1.31 1.02 Energy
Merlin Entertainments Consumer
plc 332 360 1.30 1.01 Discretionary
Atkins (WS) plc 304 349 1.26 0.98 Industrials
RPC Group plc 253 322 1.16 0.90 Materials
Cohort plc 176 320 1.15 0.90 Industrials
Consumer
Crawshaw Group plc 220 314 1.13 0.88 Staples
Micro Focus Information
International plc 238 314 1.13 0.88 Technology
FCFM Group Ltd* 150 283 1.02 0.79 Financials
Consumer
On the Beach Group plc 357 272 0.98 0.76 Discretionary
Consumer
Ladbrokes plc 259 269 0.97 0.75 Discretionary
Babcock International
Group plc 238 261 0.94 0.73 Industrials
Information
Just Eat plc 200 243 0.88 0.68 Technology
Information
Taylor Wimpey plc 299 234 0.84 0.66 Technology
Information
ARM Holdings plc 115 212 0.76 0.59 Technology
Consumer
JD Sports Fashion plc 202 212 0.76 0.59 Discretionary
Mccarthy and Stone plc 225 193 0.70 0.54 Health Care
Fulcrum Utility
Services Ltd 56 178 0.64 0.50 Utilities
Consumer
Finsbury Food Group plc 70 150 0.54 0.42 Staples
Learning Technologies Information
Group plc 80 137 0.49 0.38 Technology
Egdon Resources plc 140 113 0.41 0.32 Energy
Everyman Media Group Consumer
plc 85 108 0.39 0.30 Discretionary
Horizon Discovery Group
plc 124 108 0.39 0.30 Health Care
Consumer
Sportech plc 130 106 0.38 0.30 Discretionary
Sanne Group plc 73 89 0.32 0.25 Financials
Midatech Pharma plc 134 83 0.30 0.23 Health Care
Flowgroup plc 200 81 0.29 0.23 Industrials
Amerisur Resources plc 167 78 0.28 0.22 Energy
Consumer
The Fulham Shore plc 38 68 0.24 0.19 Discretionary
Regent Pacific Group
Ltd 93 42 0.15 0.12 Health Care
Reneuron plc 41 41 0.15 0.11 Health Care
Plexus Holdings plc 125 40 0.14 0.11 Energy
Information
Audioboom plc 31 25 0.09 0.07 Technology
Information
Eagle Eye Solutions plc 44 24 0.09 0.07 Technology
MYCELX Technologies
Corporation plc (S+
shares) 170 11 0.04 0.03 Industrials
Mexican Grill Ltd (A Consumer
Preference Shares)* 3 10 0.04 0.03 Discretionary
Genagro Ltd* 22 2 0.01 0.01 Industrials
MYCELX Technologies
Corporation plc (D1
shares)** 8 0 0.00 0.00 Industrials
------- -------- -------- -------
Total - non-qualifying
equities 6,301 6,773 24.40 18.97
-------- -------- -------- -------
Total - non-qualifying
investments 10,168 11,434 41.20 32.02
-------- -------- -------- -------
Total investments 22,775 27,757 100.00 77.70
-------- -------- -------- -------
Cash at bank 8,096 22.66
Prepayments & Accruals (129) (0.36)
-------- --------
Net Assets 35,724 100.00
-------- --------
* Unquoted Companies
** Actual holding of
less than GBP500
The majority of investments held within the portfolio are listed and/or
headquartered in the UK with the exception of the following:
Listed Headquartered Registered
AIM listed Investments:
Audioboom plc UK UK Jersey
Clearstar Inc UK Cayman Islands Cayman Islands
Electrical Geodesics Inc UK USA USA
Fulcrum Utility Services Ltd UK UK Cayman Islands
Fusionex International plc UK UK Jersey
Maxcyte Inc UK USA USA
MYCELX Technologies Corporation plc UK USA USA
Paragon Entertainment Ltd UK Jersey Cayman Islands
Royal Dutch Shell plc UK Netherlands UK
Sanne Group plc UK Jersey Jersey
WANDisco plc UK UK Jersey
Unlisted private companies:
FCFM Group Ltd - UK UK
Genagro Ltd - Jersey Jersey
Laundrapp Ltd - UK UK
Mexican Grill Ltd - UK UK
Portr Ltd - UK UK
Authorised unit trust:
Marlborough Special Situations Fund - UK UK
TOP TEN INVESTMENTS
As at 31 August 2016 (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. Forecasts are not shown for
private companies. The net asset figures are drawn from audited accounts
and the net cash values are drawn from published accounts in most cases.
Mexican Grill Ltd 8550.0p
Investment date October 2009 Results for year to December 2015
Equity held 4.25% Turnover (GBP'000) 21,314
Profit/(loss) before
Av Purchase Price 2053.0p tax (GBP'000) 16
Cost (GBP'000) 311 Net Cash (GBP'000) (1,307)
Net Assets December
Valuation (GBP'000) 1,292 2015 (GBP'000) 4,978
Dividends received in -
period by the Company
COMPANY DESCRIPTION
Mexican Grill, is a private company that operates
31 fast casual California-Mexican restaurants that
provide fresh, made to order cuisine for eat in or
take-away, making it amongst the largest chains within
its niche.
Trakm8 Holdings plc 225.0p
Investment date October 2009 Forecasts for year to March 2017
Equity held 1.27% Turnover (GBP'000) 34,000
Profit/(loss) before tax
Av Purchase Price 22.0p (GBP'000) 5,900
Cost (GBP'000) 91 Net Cash (GBP'000) (1,090)
Net Assets March 2016
Valuation (GBP'000) 931 (GBP'000) 17,074
COMPANY DESCRIPTION
Trakm8 is a telematics company using Big Data analytics
to improve driver behaviour. The company designs,
develops and manufactures telematics products and
solutions. The group also provides vehicle monitoring
and tracking services direct to the B2B market. Trakm8's
IP owned products and services allow vehicles and
drivers to be monitored, allowing organisations to
manage deliveries and services, or track stolen vehicles.
Learning Technologies Group plc 31.0p
Investment date April 2014 Forecasts for year to December 2016
Equity held 0.61% Turnover (GBP'000) 30,000
Profit/(loss) before tax
Av Purchase Price 21.0p (GBP'000) 6,200
Cost (GBP'000) 614 Net Cash (GBP'000) (9,795)
Net Assets December 2015
Valuation (GBP'000) 925 (GBP'000) 25,479
COMPANY DESCRIPTION
Learning Technologies Group (LTG) provides a comprehensive
and integrated range of digital learning technologies
and services to corporate and government clients across
Europe, the US, Latin America and Asia.
DP Poland plc 52.0p
Investment date October 2013 Forecasts for year to December 2016
Equity held 1.29% Turnover (GBP'000) 4,500
Profit/(loss) before tax
Av Purchase Price 15.6p (GBP'000) (2,200)
Cost (GBP'000) 262 Net Cash (GBP'000) 6,855
Net Assets December 2015
Valuation (GBP'000) 872 (GBP'000) 9,677
COMPANY DESCRIPTION
DP Poland is a fast food service company. The company
operates a sub-franchise of a pizza delivery brand
across cities in Poland. It currently operates 29
stores, 16 corporate and 13 sub-franchised.
Ideagen plc 54.0p
Investment date March 2011 Forecasts for year to April 2017
Equity held 0.76% Turnover (GBP'000) 25,400
Profit/(loss) before tax
Av Purchase Price 13.8p (GBP'000) 6,700
Cost (GBP'000) 190 Net Cash (GBP'000) 6,300
Net Assets April 2016
Valuation (GBP'000) 743 (GBP'000) 33,683
COMPANY DESCRIPTION
Ideagen specialises in information management solutions
for organisations that operate within industries that
are subject to onerous regulatory standards. Using
a portfolio of software products, the group provides
content lifecycle solutions that enable organisations
to meet their regulatory and quality compliance standards,
helping them to reduce costs and improve efficiency.
Science in Sport plc 70.0p
Investment date April 2014 Forecasts for year to December 2016
Equity held 2.23% Turnover (GBP'000) 12,002
Profit/(loss) before tax
Av Purchase Price 53.9p (GBP'000) (1,187)
Cost (GBP'000) 518 Net Cash (GBP'000) 6,622
Net Assets December 2015
Valuation (GBP'000) 673 (GBP'000) 12,016
COMPANY DESCRIPTION
Science in Sport plc manufactures and sells sports
nutrition products. The company develops and distributes
food, nutritional supplements, and beverages formulated
to hydrate, energize, recover, and enhance sports
performance.
Quixant plc 230.0p
Investment date May 2013 Forecasts for year to December 2016
Equity held 0.4% Turnover ($'000) 82,500
Profit/(loss) before tax
Av Purchase Price 46.0p ($'000) 13,000
Cost (GBP'000) 120 Net Cash ($'000) (3,300)
Net Assets December 2015
Valuation (GBP'000) 600 ($'000) 25,651
COMPANY DESCRIPTION
Quixant designs and manufactures 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.
Portr Ltd 599.2p
Investment date July 2015 Results for year to December 2015
Equity held 3.43% Turnover (GBP'000) 26
Profit/(loss) before tax
Av Purchase Price 599.2p (GBP'000) (2,200)
Cost (GBP'000) 538 Net Cash (GBP'000) 826
Net Assets December 2015
Valuation (GBP'000) 538 (GBP'000) 659
Dividends received in -
period by the Company
COMPANY DESCRIPTION
Under its AirPortr brand, Portr operates a same day
luggage transfer service within London and the Home
Counties. In its most basic form, the company delivers
luggage through a flexible, transparent and cost efficient
solution to or from London Airports to your hotel,
office or home. Additional functionality will allow
users to specify service enhancements such as carousel
collection and delivery and off-airport check in solutions.
Animalcare Group plc 252.0p
Investment date December 2007 Forecasts for year to June 2017
Equity held 0.86% Turnover (GBP'000) 15,100
Profit/(loss) before tax
Av Purchase Price 55.0p (GBP'000) 3,200
Cost (GBP'000) 100 Net Cash (GBP'000) 7,118
Net Assets June 2016
Valuation (GBP'000) 458 (GBP'000) 22,515
COMPANY DESCRIPTION
Animalcare is a leading supplier of generic veterinary
medicines and animal identification products to companion
animal veterinary markets. It develops and sells goods
and services to veterinary professionals principally
for use in companion animals, operating directly in
the UK and through distribution and development partners
in key markets in Western Europe. Its principle product
lines are licensed veterinary medicines and companion
animal identification products and services.
TLA Worldwide plc 54.0p
Investment date November 2011 Forecasts for year to December 2016
Equity held 0.52% Turnover ($'000) N/A
Profit/(loss) before tax
Av Purchase Price 20.0p ($'000) N/A
Cost (GBP'000) 150 Net Cash ($'000) (25,800)
Net Assets December 2015
Valuation (GBP'000) 405 ($'000) 37,181
COMPANY DESCRIPTION
TLA Worldwide is an integrated athlete representation
and sports marketing business with a strong focus
on the US and Australian markets. It is particularly
strong in baseball.
STATEMENT OF DIRECTOR'S RESPONSIBILITIES
in respect of the half-yearly financial report
In accordance with Disclosure Transparency Rule (DTR) 4.2.10, David
Hurst-Brown (Chairman), Philip Cammerman and Giles Hargreave, the
Directors, confirm that to the best of their knowledge:
-- The half yearly financial statements have been prepared in accordance
with Financial Reporting Standard 104 ("FRS104") issued by the Financial
Reporting Council and the half-yearly report includes a fair review of
the assets, liabilities, financial position and profit of the Company as
at 31 August 2016 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
DAVID HURST-BROWN
Chairman
Date: 3 November 2016
CONDENSED INCOME STATEMENT
for the six month period to 31 August 2016 (unaudited)
For the six month period to For the six month period to
31 August 2016 (unaudited) 31 August 2015 (unaudited)
Revenue Capital Total Revenue Capital Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Realised gains on
investments - 228 228 - 906 906
Unrealised
gains/(losses) on
investments - 2,328 2,328 - (527) (527)
Income 164 - 164 66 - 66
----------- ----------- ----------- ----------- ----------- -----------
164 2,556 2,720 66 379 445
Management fee (60) (179) (239) (50) (149) (199)
Other expenses (134) - (134) (143) - (143)
----------- ----------- ----------- ----------- ----------- -----------
(194) (179) (373) (193) (149) (342)
----------- ----------- ----------- ----------- ----------- -----------
(Loss)/return on
ordinary activities
before taxation (30) 2,377 2,347 (127) 230 103
Taxation - - - - - -
----------- ----------- ----------- ----------- ----------- -----------
(Loss)/return and
total other
comprehensive (30) 2,377 2,347 (127) 230 103
income after
taxation
attributable to
equity shareholders ----------- ---------- ---------- ----------- ---------- ----------
(Loss)/return per
share (Note 2) (0.09)p 7.04p 6.95p (0.52)p 0.93p 0.41p
(basic and diluted)
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 recognised gains or
losses 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 29 February 2016 (audited)
For the year to
29 February 2016 (audited)
Revenue Capital Total
GBP000 GBP000 GBP000
Realised gains on investments - 1,676 1,676
Unrealised losses on investments - (1,976) (1,976)
Income 146 - 146
----------- ----------- -----------
146 (300) (154)
Management fee (103) (308) (411)
Other expenses (291) - (291)
----------- ----------- -----------
(394) (308) (702)
----------- ----------- -----------
(Loss) on ordinary activities before
taxation (248) (608) (856)
Taxation - - -
----------- ----------- -----------
(Loss) and total other comprehensive
income after (248) (608) (856)
taxation attributable to equity
shareholders ----------- ----------- -----------
(Loss) per share (Note 2) (0.98)p (2.41)p (3.39)p
(basic and diluted)
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. There are no recognised gains or losses
other than the loss for the year. The accompanying notes are an integral
part of these financial statements.
CONDENSED STATEMENT OF FINANCIAL POSITION
as at 31 August 2016 (unaudited)
31 August 31 August 29 February
2016 2015 2016
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Fixed assets
Investments at fair value through profit or loss 27,757 21,458 23,031
----------- ----------- -----------
Current assets
Prepayments and accrued income 54 16 20
Cash at bank 8,096 5,391 6,994
----------- ----------- -----------
8,150 5,407 7,014
Creditors: amounts falling due within one year
Accruals and deferred income (183) (149) (191)
----------- ----------- -----------
Net current assets 7,967 5,258 6,823
----------- ----------- -----------
Total assets less current liabilities 35,724 26,716 29,854
----------- ----------- -----------
Capital and Reserves
Called up share capital 342 251 295
Share premium 26,509 16,673 21,484
Capital redemption reserve 9 4 7
Special reserve 3,699 6,011 5,250
Capital reserve - realised 1,416 756 1,367
Capital reserve - unrealised 4,981 4,102 2,653
Revenue reserve (1,232) (1,081) (1,202)
----------- ----------- -----------
Total shareholders' funds 35,724 26,716 29,854
----------- ----------- -----------
Net asset value per share (basic and diluted) (Note 104.58p 106.62p 101.18p
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 August 2016 (unaudited)
Ordinary
Shares Called up Share Capital Special Capital Capital Revenue Total
share premium redemption reserve reserve reserve reserve
capital reserve realised unrealised
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 March
2016 295 21,484 7 5,250 1,367 2,653 (1,202) 29,854
Share
buybacks* (2) - 2 (198) - - - (198)
Share issues 49 5,153 - - - - - 5,202
Issue costs - (128) - - - - - (128)
Equity
dividends
paid - - - (1,353) - - - (1,353)
Realised
gains on
investments - - - - 228 - - 228
Unrealised
gains on
investments - - - - - 2,328 - 2,328
Management
fee charged
to capital - - - - (179) - - (179)
Revenue loss
after
taxation
for the
period - - - - - - (30) (30)
Total profit
after
taxation - - - - 49 2,328 (30) 2,347
---------- ----------- ----------- ----------- ---------- ----------- ----------- ---------
At 31 August
2016 342 26,509 9 3,699 1,416 4,981 (1,232) 35,724
---------- ----------- ----------- ----------- ---------- ----------- ----------- ---------
* 197,045 shares were bought back in the period with a nominal value of
GBP1,970.45.
Reserves available for distribution are capital reserve realised,
special reserve and revenue reserve. Total distributable reserves at 31
August 2016 were GBP3.88 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 August 2015 (unaudited)
Ordinary
Shares Called up Share Capital Special Capital Capital Revenue Total
share premium redemption reserve reserve reserve reserve
capital reserve realised unrealised
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 March
2015 219 13,118 3 7,124 (1) 4,629 (954) 24,138
Share
buybacks* (1) - 1 (111) - - - (111)
Share issues 33 3,644 - - - - - 3,677
Issue costs - (89) - - - - - (89)
Equity
dividends
paid - - - (1,002) - - - (1,002)
Realised
gains on
investments - - - - 906 - - 906
Unrealised
loss on
investments - - - - - (527) - (527)
Management
fee charged
to capital - - - - (149) - - (149)
Revenue loss
after
taxation
for the
period - - - - - - (127) (127)
Total loss
after
taxation - - - - 757 (527) (127) 103
---------- ----------- ----------- ----------- ---------- ----------- ----------- ---------
At 31 August
2015 251 16,673 4 6,011 756 4,102 (1,081) 26,716
---------- ----------- ----------- ----------- ---------- ----------- ----------- ---------
* 105,941 shares were bought back in the period with a nominal value of
GBP1,059.41.
Reserves available for distribution are capital reserve realised,
special reserve and revenue reserve. Total distributable reserves at 31
August 2015 were GBP5.69 million. The accompanying notes are an integral
part of these financial statements.
CONDENSED STATEMENT OF CHANGES IN EQUITY
for the year ended 29 February 2016 (audited)
Ordinary
Shares Called up Share Capital Special Capital Capital Revenue Total
share premium redemption reserve reserve reserve reserve
capital reserve realised unrealised
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 March
2015 219 13,118 3 7,124 (1) 4,629 (954) 24,138
Share
buybacks* (4) - 4 (372) - - - (372)
Share issues 80 8,536 - - - - - 8,616
Issue costs - (170) - - - - - (170)
Equity
dividends
paid - - - (1,502) - - - (1,502)
Realised
gains on
investments - - - - 1,676 - - 1,676
Unrealised
loss on
investments - - - - - (1,976) - (1,976)
Management
fee charged
to capital - - - - (308) - - (308)
Revenue loss
after
taxation
for the
period - - - - - - (248) (248)
Total loss
after
taxation - - - - 1,368 (1,976) (248) (856)
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------
At 29
February
2016 295 21,484 7 5,250 1,367 2,653 (1,202) 29,854
---------- ----------- ----------- ----------- ---------- ----------- ----------- ----------
* 366,182 shares were bought back in the period with a nominal value of
GBP3,661.82
Reserves available for distribution are capital reserve realised,
special reserve and revenue reserve. Total distributable reserves at 29
February 2016 were GBP5.42 million. The accompanying notes are an
integral part of these financial statements.
CONDENSED STATEMENT OF CASH FLOWS
for the six month period to 31 August 2016 (unaudited)
31 August 2016 31 August 2015 29 February 2016*
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Return/(loss) on ordinary
activities before
taxation 2,347 103 (856)
Realised (gains) on
investments (228) (906) (1,676)
Unrealised (gains)/losses
on investments (2,328) 527 1,976
(Increase)/decrease in
debtors (34) 10 6
Increase/(decrease) in
creditors (8) 8 50
----------- ----------- -----------
Net cash generated
from/(used in) operating
activities (251) (258) (500)
Cash flows from investing
activities
Purchase of investments (7,309) (5,549) (11,321)
Disposal of investments 5,139 2,014 5,534
----------- ----------- -----------
Net cash from investing
activities (2,170) (3,535) (5,787)
Cash flows from financing
activities
Proceeds from share issues 5,202 3,677 8,616
Share issue costs (128) (89) (170)
Purchase of own shares for
cancellation (198) (111) (372)
Equity dividends paid (1,353) (1,002) (1,502)
----------- ----------- -----------
Net cash from financing
activities 3,523 2,475 6,572
----------- ----------- -----------
Increase/(decrease) in
cash and cash
equivalents 1,102 (1,318) 285
----------- ----------- -----------
Analysis of net funds
Net cash at beginning of
period/year 6,994 6,709 6,709
Net cash
inflows/(outflows) 1,102 (1,318) 285
Net cash at end of
period/year 8,096 5,391 6,994
* 29 February 2016 cash flow represents annual results
EXPLANATORY NOTES
for the six month period to 31 August 2016 (unaudited)
1. ACCOUNTING POLICIES
Basis of preparation
The Company has prepared its half-yearly financial results for the six
month period ending 31 August 2016 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
Listed investments and investments traded on AIM are stated at closing
bid market prices. 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, and
are measured initially at fair value.
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. Accordingly, as prescribed by FRS 102 s.11 and s.12, the
investments are designated as fair value through profit or loss.
Subsequent to initial recognition, listed investments are valued using
bid market prices as required for level (a) investments under FRS 102.
Unit Trust investments, classified as level (b) investments, are valued
at the price of the most recent transaction. Unquoted investments,
classified as level (c) investments, are valued in accordance with
European Private Equity and Venture Capital Association Reporting
Guidelines.
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 ultimately recognised in
the unrealised capital reserve or realised capital reserve (as
appropriate).
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
August 2016
(unaudited) 21,421 3,921 2,415 27,757
Year ended 29
February
2016
(audited) 17,155 3,899 1,977 23,031
Six months
ended 31
August 2015
(unaudited) 16,665 2,653 2,140 21,458
Recognition of impairment and realised losses
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 is recognised as a
realised loss in the financial statements.
Determining fair value
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 uses a
valuation technique to arrive at the fair value, including the use of
prices obtained in recent arms-length transactions, discounted cash flow
analysis and other valuation techniques commonly used by market
participants. The fair value of such assets or liabilities will be
reviewed on a 6 monthly basis and more frequently if events occur that
could have a material impact on the investment.
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 investment
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.
Capital Reserves
Realised profits and losses on the disposal of 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
period 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
The tax effect of expenditure is allocated between capital and revenue
on the same basis as the particular item to which it relates, using the
Company's effective rate of tax for the period. Any liability to
corporation tax is based on net revenue for the period.
Dividends
Only dividends paid during the period are deducted from revenue or
capital reserves. Dividends which are declared subsequent to the balance
sheet date will not be shown as a liability in the balance sheet.
Summary of dividends paid in the six months to 31 August 2016 and the
financial year ending 29 February 2016 are detailed below:
Year
Six months ended 29
ended 31 February
August 2016 2016
(unaudited) (audited)
GBP'000 GBP'000
Final capital dividend of 4 pence per share for the
year ended 28 February 2015 paid on 28 August 2015 - 1,002
Interim capital dividend of 2 pence per share for
the half year ended 31 August 2015 paid on 11 December
2015 - 500
Final capital dividend of 4 pence per share for the
year ended 29 February 2016 paid on 20 July 2016 1,353 -
Total 1,353 1,502
Functional Currency
In accordance with FRS 102 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 capital reserves and
dealt with in The Reconciliation of Movements in Shareholder's Funds.
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 the 31 August 2016.
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 and losses on realisation of investments.
Capital Reserve Unrealised
Unrealised gains and losses on investments.
Revenue Reserve
Net revenue profits and losses of the Company.
2. EARNINGS PER SHARE (BASIC AND DILUTED)
The gain per ordinary share of 6.95 pence at 31 August 2016 (31 August
2015: gain 0.41 pence and 29 February 2016: loss 3.39 pence) is based on
the profit after tax for the period of GBP2,347,000 (31 August 2015:
profit GBP102,694 and 29 February 2016: loss GBP855,742) and the
weighted average number of ordinary shares in issue over the period of
33,764,458 (31 August 2015: of 24,771,103 and 29 February 2016:
25,200,417).
1. CAUTIONARY STATEMENT
The results should not be taken as a guide to the results for the
financial period ending 28 February 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 August 2016 of 104.58 pence
(31 August 2015: 106.62 pence and 29 February 2016: 101.18 pence) after
deducting the 4.00 pence dividend paid in August 2015 is based on net
assets of GBP35,723,815 (31 August 2015: GBP26,716,143 and 29 February
2016: GBP29,854,033) and on 34,159,249 shares (31 August 2015:
25,058,142 shares and 29 February 2016: 29,507,084 shares), being the
number of ordinary shares in issue as at 31 August 2016.
1. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information contained in the 31 August 2016 income
statement, balance sheet, cash flow statement and reconciliation of
movements in shareholders' funds 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 regulatory risk, investment risk and
discount volatility. Other risks faced by the Company include market
risk, currency risk, interest rate risk, liquidity 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 29
February 2016. The Company's principal risks and uncertainties have not
changed materially since the date of that report.
7. TRANSACTIONS IN SHARES
Buybacks
In total, the Company repurchased 197,045 shares during the six month
period ending 31 August 2016 at a total cost of GBP197,668
Share Issues
In total, the Company issued 4,849,210 new shares during the six month
period ending 31 August 2016 raising net proceeds of GBP5,074,419.
1. RELATED PARTY TRANSACTIONS
Giles Hargreave, a director of the Company, is the chairman of Hargreave
Hale Limited and has an interest in excess of 7% in that company. As
such, Hargreave Hale Limited is considered to be a related party to the
Company. Hargreave Hale Limited acts as investment manager,
administrator, custodian and provides one non-executive director and the
company secretary to the Company. All of the 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
GBP238,524 (2015: GBP198,739). 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 receive fees of GBP40,000 per
half-year (2015: GBP38,500) in relation to these services. Of those fees,
GBP137,010 (2015: GBP105,240) 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 waived by Hargreave Hale in the first half of the financial year
under the indemnity.
During the half year, the Company issued 4,849,210 ordinary shares
(nominal value GBP48,492) in a joint offer for subscription which
resulted in gross funds being received of GBP5,201,811. 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 (GBP182,063), often referred to as the
'premium'. From this, Hargreave Hale Limited paid for the allotment of
additional shares to investors with a value of GBP54,672 and introducer
commission of GBP675, resulting in net fees payable to Hargreave Hale of
GBP126,716.
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.
10. POST BALANCE SHEET EVENTS
There are no post balance sheet events to disclose
COMPANY INFORMATION
SECRETARY AND REGISTERED OFFICE DIRECTORS
Stuart Brookes David Hurst-Brown, Chairman
Accurist House Giles Hargreave
44 Baker Street Philip Cammerman
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
05941261 in England and Wales
For further information please contact:
STUART BROOKES
Company Secretary
Hargreave Hale AIM VCT2 plc
01253 754740
3 November 2016
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 2 plc via Globenewswire
https://hargreaveaimvcts.co.uk/
(END) Dow Jones Newswires
November 03, 2016 12:06 ET (16:06 GMT)
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