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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Noble Aim | LSE:NOA | London | Ordinary Share | GB00B05N8X20 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 74.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMATI
RNS Number : 5116C
Amati VCT PLC
16 October 2015
Amati VCT plc
HALF-YEARLY REPORT
For the six months ended 31 August 2015
Overview
Corporate objective
The objective of Amati VCT plc (the "Company") is to provide an attractive return to shareholders. The Company aims to generate tax-free capital gains and income by building and maintaining a well-balanced portfolio of qualifying investments for the purposes of the tax legislation under which the Company operates. The qualifying investments are predominantly in AIM-traded companies. The Company is managed as a Venture Capital Trust in order that shareholders may benefit from the tax reliefs available.
Key data
For the six months ended 31 August 2015
Hot Features
Premium
6 months 6 months
ended ended Year ended
31/08/15 31/08/14 28/02/15
(unaudited) (unaudited) (audited)
------------------------------------------- ------------ ------------ -------------
Net Asset Value ("NAV") GBP37.9m GBP39.4m GBP36.4m
Shares in issue 54,483,058 51,078,906 51,663,729
NAV per share 69.5p 77.1p 70.4p
Share price 65.8p 73.3p 67.0p
Market capitalisation GBP35.9m GBP37.4m GBP34.6m
Share price discount to NAV 5.3% 4.9% 4.8%
NAV Total return for the period (assuming
re-invested dividends) 3.1% 0.2% -5.9%
FTSE AIM All-Share Total Return Index 3.5% -12.1% -19.0%
Ongoing charges* 2.4% 2.5% 2.5%
Dividends in respect of the period 2.0p 2.0p 5.0p
-------------------------------------------
*Ongoing charges calculated in accordance with the Association
of Investment Companies ("AIC") guidance.
Table of investor returns to 31 August 2015 from a sample of share issues
NAV NAV
Total Return Total Return
excluding including
full
Price subscription subscription
gross Price net Price gross costs and costs and
of of after
Date costs costs tax rebate# tax rebate tax rebate#
---------------- ------- ---------- ------------ -------------- --------------
Initial Offer 100.0p 94.8p 60.0p 29.5% 104.5%
4 January 2006 111.2p 105.4p 66.7p 17.5% 85.5%
4 April 2006 123.5p 117.0p 74.1p 4.9% 65.6%
21 March 2007 133.0p 130.3p 93.1p -7.6% 29.3%
4 April 2008 96.5p 91.7p 67.6p 18.5% 60.8%
6 October 2008 79.6p 75.7p 55.7p 43.8% 95.1%
17 October
2008** 67.4p 67.4p 67.4p 61.1% 61.1%
3 April 2009 54.5p 51.8p 38.2p 105.3% 178.7%
3 April 2010 79.2p 75.2p 55.4p 33.7% 81.5%
5 April 2011 93.2p 88.1p 65.2p 7.9% 45.6%
5 April 2012 81.8p 77.7p 57.3p 14.7% 55.7%
5 April 2013 72.6p 69.0p 50.8p 20.4% 63.4%
4 April 2014 85.8p 81.5p 60.0p -5.0% 29.0%
2 April 2015 71.6p 70.8p 50.1p 2.4% 44.8%
---------------- ------- ---------- ------------ -------------- --------------
# assumes full recovery of tax relief (y/e 5 April 2006 - 40%; subsequent years - 30%)
**shares issued to Noble Income & Growth VCT plc shareholders as a result of the asset acquisition
Table of investor returns
to 31 August 2015 from shares issued under the Dividend Re-investment Scheme
NAV NAV
Total Return Total Return
excluding including
full
subscription subscription
Price gross costs and costs and
after
Date Price* tax rebate# tax rebate tax rebate#
------------------ ------- ------------ -------------- --------------
4 July 2007 135.1p 94.6p -14.5% 22.1%
7 December 2007 111.3p 77.9p 2.0% 45.7%
15 February 2008 94.3p 66.0p 15.3% 64.7%
5 December 2008 58.0p 40.6p 83.4% 162.0%
17 August 2009 61.1p 42.7p 68.4% 140.5%
11 December 2009 68.6p 48.0p 46.7% 109.5%
13 August 2010 73.3p 51.3p 32.6% 89.4%
10 December 2010 85.1p 59.6p 11.5% 59.3%
12 August 2011 74.3p 52.0p 23.3% 76.1%
13 February 2012 74.4p 52.1p 19.8% 71.2%
14 August 2012 67.9p 47.5p 25.9% 79.9%
7 December 2012 66.9p 46.8p 24.2% 77.4%
12 August 2013 69.5p 48.7p 14.4% 63.5%
6 December 2013 71.6p 50.2p 8.1% 54.4%
15 August 2014 75.9p 53.1p -1.8% 40.3%
5 December 2014 71.0p 49.7p 2.1% 45.9%
------------------ ------- ------------ -------------- --------------
*shares allotted under the Dividend Re-investment Scheme are issued without cost
#assumes full recovery of tax relief (y/e 5 April 2006 - 40%; subsequent years - 30%)
Chairman's Statement
Overview
The period under review has been positive for UK smaller companies but saw heightened volatility in global stock exchanges, led by increasing concerns about China. The travails of the Greek economy also weighed on markets as the country lurched from bailout to referendum to election. Closer to home, fears of a hung Parliament proved unfounded and UK indices staged a brief relief rally before succumbing to the general market malaise afflicting international stock exchanges. The AIM market was affected by these events but was able to outperform significantly the FTSE All-Share Total Return which fell by 6.2% over the six months. The Manager reviewed similar levels of qualifying investment opportunities as in the prior period but completed only one large new investment and three small follow-on investments into existing portfolio companies. These transactions, which totalled GBP1.2m, are reported in detail in the Fund Manager's review.
Investment Performance and Dividend
The net asset value ("NAV") total return (including dividends re-invested) for the period was 3.1%, which compares to a return of 3.5% for the FTSE AIM All-Share Total Return Index. At 31 August 2015, the Company's NAV was 69.5p. The small relative underperformance arose due to the further write-down of the Company's convertible loans in China Food Company plc and Sorbic International plc. The Manager is working hard with their advisers to recover value from these situations, but with no certainty over a successful outcome the loans are now valued at nil. Against this, several of the Company's larger quoted positions performed strongly over the period, most notably TLA Worldwide, GB Group and Universe Group. Further details are given in the 'Performance' section of the Fund Manager's Review.
The strategy of investing a substantial portion of the non-qualifying portfolio in the TB Amati UK Smaller Companies Fund (the "Fund") has proven effective thus far, with the Fund returning 10.2% over the period under review.
The dividend policy of the Company is to pay an interim and final dividend which together represents between 5% and 6% of the year end NAV, subject to the availability of liquidity and distributable reserves. In accordance with this, the Board is declaring an interim dividend of 2.0p per share, to be paid on 11 December 2015 to shareholders on the register on 6 November 2015.
Other Corporate Developments
The joint top up offer with Amati VCT 2 closed in July. Total subscriptions for the period under review were GBP3.9m, of which GBP2.1m was subscribed for Amati VCT shares. The Board has announced its intention to launch a further Top Up Offer in conjunction with Amati VCT 2 plc. The capacity of these offers will be subject to the rules governing non-Prospectus offers. The offer document will provide full details, and we anticipate this being available from Amati's website as soon as the offer is launched.
VCT Legislation
(MORE TO FOLLOW) Dow Jones Newswires
October 16, 2015 05:15 ET (09:15 GMT)
2015 has seen some of the most significant changes to the VCT legislation since the scheme began some twenty years ago. These changes were first outlined in the March Budget (we reported on these in the Company's 2015 Annual Report) and then taken significantly further in the July Budget. These new rules are a mixture of some additional measures to target VCT investments towards companies that government wishes to see supported and changes to try to ensure that the scheme falls within the EU legislation on state aided funding. The new rules are complex and still to be finalised, but the expected impact can be summarised as follows:
VCTs will only be allowed to make investments into companies (other than buying secondary shares on the stock market for liquidity management purposes) where:
i) the capital is supporting growth in the business;
ii) the company has been trading for less than 7 years (or 10 years if it is a "knowledge intensive company"), or if the company has received state-aided funding within these time limits and the VCT is investing within 7 years of the initial funding;
iii) the company has not exceeded the limits on state-aided funding, which are GBP5m in any 12 month period, and a lifetime limit of GBP12m (or GBP20m for a knowledge intensive company); and
iv) the VCT funding is not being used to make a business acquisition (however this is structured).
Importantly, the "protected money" regime, which has previously allowed VCTs to use money raised before rule changes were introduced to continue to operate in the same way, does not apply to any of these new conditions. In addition, a breach of one of the above conditions could result in the loss of VCT status by the Company, so there is a requirement for a high level of vigilance in complying with these new requirements.
These rule changes will affect all VCTs and we believe that AIM VCTs will be well placed to operate under the new regime. The Manager intends to work actively with brokers and nominated advisers to help ensure that opportunities to make further qualifying investments in good quality companies continue to appear regularly on AIM. Amati intends to provide a more detailed explanation of the new rules on its website once the legislation has been passed in November and the relevant guidance from HMRC issued. Investors who wish to receive this fuller explanation by email should contact the Manager using the phone number or email address on page 7.
Outlook
In the qualifying portfolio, the Manager has made fewer, larger new investments of late, with an emphasis on cash generative businesses with a degree of maturity. The addition of such holdings, alongside the Company's long-standing investments has increased the dominance of more established, profitable enterprises within the portfolio which we believe retain excellent growth prospects. The Company is more than adequately weighted in qualifying holdings with enough margin to allow time for AIM to adjust to the new VCT legislation and to wait for the right investment opportunities to appear which meet the new requirements. Overall, the UK smaller company universe continues to offer attractive investment opportunities and we share the Manager's confidence that the Company will be well placed to benefit from these.
Peter Lawrence
Chairman
16 October 2015
If you would like to receive reports and other information from the Company in electronic form rather than by post, you can elect to do so by contacting Share Registrars on 01252 821390 or by email at enquiries@shareregistrars.uk.com. Please also contact Share Registrars if you wish to join or leave the Dividend Re-investment Scheme. As a shareholder you can also create an account with Share Registrars through which you can view your shareholding and dividends, send in your votes for shareholder meetings, and update your details and preferences.
For any other matters please contact Amati on 0131 503 9115 or by email at vct-enquiries@amatiglobal.com. Amati maintains an informative website for the Company - www.amatiglobal.com - on which monthly investment updates, performance information and past Company reports can be found.
Fund Manager's Review
Market review
At the start of 2015 many questioned whether the equity markets could continue with a seventh year of recovery following the 2008-9 crisis. The answer so far has been mixed on a global basis, but broadly positive for UK smaller companies. The year started positively as the European Central Bank initiated a programme of quantitative easing, albeit late in the day and coinciding with the end of the US asset purchase programme. The tardiness of the European action serves as a symbol of the unwieldy nature of European political processes and demonstrates just how difficult and time consuming it is to ratify action. Meanwhile in the UK, the prospect of a hung Parliament did not appear to concern the stock market. This was something we found puzzling at the time but, as often happens, the market had served up a better prediction of the outcome than the polls. Likewise, the extreme brinkmanship over the third bailout of Greece created few waves in the markets. Thus the period overall saw a benign backdrop for the portfolio, particularly for those companies with either domestic UK or US exposure.
The problems in the global commodities markets, however, have become more extreme, and this has significant consequences. Oil has been the highest profile casualty, and whilst at the start of the year many industry players thought the downturn would be short and sharp, this view has shifted to an expectation that prices will remain low for a good deal longer. Oil-related companies have been suffering from a freeze on capital expenditure in the industry. Likewise industrial metal prices have been continuing to fall, and these point to potential larger issues stemming from a slowdown in China.
Performance
For the six months to 31 August 2015, the Company achieved a net asset value total return of 3.1%, which compares to a total return of 3.5% for the FTSE AIM All-Share Total Return Index (the "Index"). The Index enjoyed a strong start to the period under review, with especially strong gains in April and May, before coming under pressure in the summer. The performance of the Company lagged the Index until June, when the situation was reversed after several large portfolio holdings announced positive news to the market.
One such portfolio company was TLA Worldwide ("TLA"), the athlete representation and sports marketing business, which led the contributors to performance, ending the period up 32%. TLA acquired an Australian and UK-based athlete representation business boasting clients such as Sir Chris Hoy and Becky Adlington, and diversifying TLA's activities into new sports such as Australian rules football and cricket. TLA's results were also announced during the period and demonstrated good progress in its core baseball representation market and confirmation of the co-promotion of the International Champions Cup in Australia, featuring Real Madrid, Manchester City and AS Roma. The second most significant contributor to performance was GB Group, the identity data intelligence software specialist, which continued its impressive record of organic and acquisition-led earnings growth, and ended the half year under review up 35%. GB Group announced contract wins with clients such as Stripe and Holvi (both banking and payments providers), Waitrose, John Lewis and the UK's Serious Fraud Office. These contracts provide the company with a source of secure, recurring revenues. Universe Group ("Universe"), the provider of payment and online loyalty systems to petrol forecourt operators gained 34% over the period. Universe announced a positive trading update, with revenue and profits ahead of market expectations, driven by the continued roll-out of GemPAY, Universe's card acceptance platform. A stable and broadening UK blue-chip customer-base, including Valero (Texaco) and Morrisons, provides a good endorsement of Universe's technology solutions. Craneware enjoyed a 22% rise in its share price over the period. Craneware provides 'revenue integrity' software to US hospitals to ensure that billings for procedures and materials are accurately captured. Craneware's interim results indicated a return to growth and optimism that a recent acquisition in the Patient Access market could be a significant driver of future revenues. Anpario, the supplier of natural feed additives to pig and poultry producers, saw a 23% increase in its share price after announcing full year results that reported strong growth and increasing market share in Brazil, China and the US. The TB Amati UK Smaller Companies Fund was also a leading contributor to performance, ending the period up 10.2%.
Some of the greatest detractors from performance came from the unquoted portfolio. The Company's convertible loan positions in China Food Company ("China Food") and Sorbic International ("Sorbic") (another Chinese company) were both written-down to nil. In China Food's case, much of the write-down had been taken in previous periods but this further impairment was unavoidable in the face of continued delays in the sale of the business, which represents the Company's best chance of seeing some return of value from its investment. Sorbic's predicament is quite different but equally, if not more, frustrating than that of China Food. Sorbic is a manufacturer of food preservatives in the Shandong province of China and has a history of profitable trading and a strong balance sheet. Like China Food, the Company's convertible loan was never converted into equity as the share price did not advance ahead of the conversion price of the loan. As a consequence, we looked forward to the repayment of the loan on the redemption date. The repayment was not made and the loan is in default. The Legal Representative of Sorbic, who holds the Company's "chops" (the corporate seals required to ratify legal documents and
(MORE TO FOLLOW) Dow Jones Newswires
October 16, 2015 05:15 ET (09:15 GMT)
payments) has refused to repay the loan despite Sorbic holding adequate cash to allow this to happen. We are now engaged in a process of trying to recover the Company's losses but we have written the value down to nil for prudence. Nujira, an unquoted equity holding specialising in envelope tracking (a power supply method to extend battery life) was the subject of a successful bid approach from Qualcomm (see Portfolio Activity on page 10). Whilst the takeover was a welcome development, the price was lower than anticipated and the valuation was marked down in line with the takeover price. In the quoted portfolio, the greatest detractor was Hardide, a provider of tungsten carbide surface coatings which can be applied to engineering components to extend longevity and reduce downtime due to component failure though it is worth noting that it is still showing a very substantial profit over cost. One of Hardide's key end markets is oil and gas, which is a sector under intense pressure due to weak commodity prices. This pressure is feeding through supply chains and impacting companies such as Hardide and MyCelx Technologies, a provider of water filtration technology systems for offshore platforms, which was also weak during the period under review.
Portfolio Activity
Qualifying portfolio
During the six month period the Company made four new qualifying investments, one of which represented a new holding, with the other three being follow-on investments into existing qualifying positions (of which one is an unquoted company).
Learning Technologies Group is the new addition to the portfolio. Learning Technologies Group is a leading provider of online training to both large corporates and government bodies. The proceeds of the funding round were used to acquire Eukleia, a supplier of e-learning to financial services customers such as HSBC, Barclays and the London Stock Exchange. The acquisition moves Learning Technologies Group into the fast-growth Governance, Risk and Compliance (GRC) market and significantly expands the group's scale and client list. The first follow-on investment was made in MirriAd, an existing unquoted holding with a proprietary technology platform that allows product placements to be integrated into existing video content. A $15m funding round into MirriAd involving two new US institutional investors was vetoed by a shareholder with its own agenda just before it was due to close. This forced the company into a complex restructuring and rescue. However, we believe that MirriAd has emerged from this restructuring with a stronger shareholder list, which includes IP Group, an investor with a long history of developing innovative technology companies. Two smaller follow-on investments were completed in: Belvoir Lettings, the national chain of letting agents, as part of a funding round to acquire Newton Fallowell, one of the largest estate agencies in the East Midlands; and Sabien Technology Group, which raised capital to support the provision of more pilots of its energy efficient boiler-control system.
We completed three exits of note in the qualifying portfolio. DXI, the software solution provider to call centres, was exited through a trade sale to 8x8, a US provider of Voice over Internet Protocol ("VoIP") technologies. The Company's investment was substantially structured as a convertible loan to provide a base case return of around 10%, which was achieved. Nujira, the power-saving technology developer, was also sold during the period. Having failed to develop its own sales channels, Nujira decided that a sale of the intellectual property was the best course of action, rather than another funding round. Qualcomm was the successful bidder but the price fell short of our expectations. Finally, Ubisense Group, the location tracking solutions designer, was sold from the portfolio.
Non-qualifying portfolio
Two significant investments were made in the non-qualifying portfolio. We added further to the Company's existing position in the TB Amati UK Smaller Companies Fund (the "Fund"). The Fund returned 10.2% in the six month period versus a benchmark (Numis Smaller Companies Index (plus AIM, excluding Investment Companies)) return of 4.0%. At the period end, the Fund comprised 7.4% of the Company's net asset value. The other investment was in Hiscox, the FTSE 250 international specialist insurer. Hiscox has invested in distribution, marketing and products in the US to diversify its revenue geographically and add a further avenue of growth for its professional, business and homeowner lines.
One significant disposal was made from the non-qualifying portfolio, namely DX Group, the logistics and parcel delivery company.
Outlook
China has been dominating the headlines since the period end. It remains an opaque economy and there is little that can be taken at face value. China's GDP figures have rarely been revised for example, so published economic statistics have had little credibility and its banking system is largely State controlled, operating as much on political allegiances as on credit control. Hence global commodity prices are amongst the more accurate indicators as to the real state of affairs. The stalling of the soaring Chinese domestic stock market is proving to have an impact way beyond its size. A world which had come to rely on China as the engine of growth is now having to recalibrate. There is heightened nervousness because this lack of reliable information about the Chinese economy makes it difficult to know the scale of the potential implications.
In the shorter term, it has become clear that the slowdown in China will be deflationary for the developed world, as the price of many of the goods manufactured there will fall on currency devaluation. The "lower-for-longer" oil price adds to this effect. This has pushed back the date when interest rates rise in the UK, and also in the US. In the past, that delay would have been enough to maintain a positive tone to the stock market, but this is no longer proving to be the case. Overall we believe that the UK is one of the more attractive places in the world to be investing, and the companies in the portfolio should be well placed in most cases to do well in this difficult and unpredictable global environment. Importantly, higher-quality stocks on AIM have remained in good demand, underpinned by the inheritance tax reliefs that they offer direct investors, and this has brought an encouraging level of resilience to the portfolio, particularly as the companies which we invested in at early stages start to mature.
Dr Paul Jourdan, Douglas Lawson and David Stevenson
Amati Global Investors Limited
16 October 2015
Investment Portfolio
as at 31 August 2015
Number Book Valuation Fund
of cost
FTSE Sector shares GBP'000 GBP'000 % Status
-------------------------------------- ----------- -------- ------------ ------- -----------
Ilika plc(1,3) 260,600 156 186 0.5 AIM
MyCelx Technologies Corporation(1,3) 209,690 440 103 0.3 AIM
Oil & Gas 596 289 0.8
-------------------------------------- ----------- -------- ------------ ------- -----------
Fox Marble Holdings plc(1) 3,633,510 694 681 1.8 AIM
Fox Marble Holdings plc 8%
Convertible Loan Series(1,3) 551,700 552 550 1.4 Unquoted
Hardide plc(1) 81,922,470 374 900 2.4 AIM
TMO Renewables Limited(2) 2,814,492 370 - - Unquoted
TMO Renewables Limited Loan
Stock(1) 244,176 244 - - Unquoted
Vitec Global Limited(1) 300,000 300 - - Unquoted
Basic materials 2,534 2,131 5.6
-------------------------------------- ----------- -------- ------------ ------- -----------
AB Dynamics plc(2) 352,588 304 729 1.9 AIM
Bglobal plc(1,3) 1,075,883 291 - - Unquoted
Bilby plc(2,3) 1,165,009 676 1,145 3.0 AIM
Keywords Studios plc(2,3) 395,833 487 609 1.6 AIM
Learning Technologies Group
plc(2,3) 4,145,352 871 1,016 2.7 AIM
Microsaic Systems plc(1,3) 1,116,233 372 472 1.3 AIM
Polyhedra Group plc(1,3) 1,133,956 340 38 0.1 Unquoted
Polyhedra Group plc 8% Convertible
Loan Stock(1,3) 1,046,728 1,047 1,015 2.7 Unquoted
Premier Technical Services
Group plc(1,3) 909,716 473 598 1.6 AIM
Rame Energy plc 8% 2019 Unsecured
Loan(3) 161,096 161 171 0.5 Unquoted
Rame Energy plc 8% 2019 Convertible
Loan Stock 2019(3) 424,380 424 392 1.0 Unquoted
Rame Energy plc(3) 884,126 159 53 0.2 AIM
Rame Energy plc Warrants(3) 894,978 - - - Unquoted
Sabien Technology Group plc(2,3) 3,147,064 646 204 0.5 AIM
Solid State plc(2,3) 106,694 258 875 2.3 AIM
Sprue Aegis plc(1,3) 626,850 106 1,942 5.1 AIM
(MORE TO FOLLOW) Dow Jones Newswires
October 16, 2015 05:15 ET (09:15 GMT)
Universe Group plc(1,3) 12,326,504 284 1,217 3.2 AIM Water Intelligence plc(1,3) 418,870 180 181 0.5 AIM Industrials 7,079 10,657 28.2 -------------------------------------- ----------- -------- ------------ ------- ----------- China Food Company plc 10% Convertible Loan Note(3) 876 876 - - Unquoted Frontier Developments plc(1,3) 557,401 594 1,113 2.9 AIM Science in Sport plc(2) 941,211 424 638 1.7 AIM Sorbic International plc 10% Convertible Loan Note(3) 474 474 - - Unquoted Consumer goods 2,368 1,751 4.6 -------------------------------------- ----------- -------- ------------ ------- ----------- Anpario plc(1,3) 344,359 276 1,170 3.1 AIM Deltex Medical Group plc(1) 1,211,958 252 68 0.2 AIM Deltex Medical Group plc Guaranteed Unsecured Convertible Loan Note(2) 1,000,100 1,000 984 2.6 Unquoted Futura Medical plc(1,3) 701,176 400 219 0.5 AIM Tristel plc(2,3) 965,644 543 905 2.4 AIM -------------------------------------- ----------- -------- ------------ ------- ----------- Health care 2,471 3,346 8.8 -------------------------------------- ----------- -------- ------------ ------- ----------- Crawshaw Group 1,027,299 431 645 1.7 AIM Eclectic Bar Group plc(1,3) 196,304 314 137 0.4 AIM Mirada plc(1,3) 3,210,000 401 317 0.8 AIM Music Festivals plc(1,3) 112,781 73 - - Unquoted Music Festivals plc 8% Convertible Loan Note 2016(1,3) 660,000 647 - - Unquoted Rated People Limited(1,3) 876 98 - - Unquoted TLA Worldwide plc(2,3) 2,610,446 522 1,488 3.9 AIM -------------------------------------- ----------- -------- ------------ ------- ----------- Consumer services 2,486 2,587 6.8 -------------------------------------- ----------- -------- ------------ ------- ----------- Assura plc(3) 900,539 392 457 1.2 Full Belvoir Lettings plc(1,3) 430,418 404 552 1.4 AIM Brooks Macdonald Group plc(3) 25,575 303 451 1.2 AIM FairFX Group plc(1,3) 1,047,903 484 380 1.0 AIM Hiscox Limited(3) 66,429 565 597 1.6 AIM Invocas Group plc(1) 368,000 332 36 0.1 Unquoted London Asia Capital plc(3) 1,580,000 255 24 0.1 Unquoted MartinCo plc(1,3) 154,044 154 227 0.6 AIM Paragon Entertainment Limited(2,3) 9,687,541 672 224 0.6 AIM TB Amati UK Smaller Companies Fund(3) 447,019 2,498 2,794 7.4 OEIC -------------------------------------- ----------- -------- ------------ ------- ----------- Financials 6,059 5,742 15.2 -------------------------------------- ----------- -------- ------------ ------- ----------- Brady plc(2) 647,914 331 641 1.7 AIM Craneware plc(1) 214,750 297 1,363 3.6 AIM EU Supply plc(1,3) 1,550,593 351 137 0.4 AIM GB Group plc(2,3) 587,377 235 1,304 3.4 AIM Ideagen plc(1,3) 2,527,832 565 1,157 3.1 AIM IDOX plc(1,3) 3,781,021 299 1,560 4.1 AIM Kalibrate Technologies plc(1,3) 459,689 363 472 1.2 AIM MirriAd Limited(1,3) 494,287 525 148 0.4 Unquoted Nujira Limited(1,3) 176,400 135 5 - Unquoted Quixant plc(2,3) 907,313 418 1,354 3.6 AIM Rivington Street Holdings plc 0% Loan Stock 30/06/2015 1,353 1 - - Unquoted Rivington Street Holdings plc 8% Convertible Unsecured Loan Stock 30/06/2015 21,184 13 - - Unquoted Rosslyn Data Technologies plc(1,3) 1,153,752 385 173 0.5 AIM Software Radio Technology plc(1) 1,950,051 709 546 1.4 AIM TCOM Limited 176,400 - - - Unquoted TCOM Limited Preference Shares 176,400 - - - Unquoted Vicorp Group plc(1) 15,966,954 408 - - Unquoted Technology 5,035 8,860 23.4 -------------------------------------- ----------- -------- ------------ ------- ----------- Total investments 28,628 35,363 93.4 -------------------------------------- ----------- -------- ------------ ------- ----------- Net current assets 2,508 6.6 -------------------------------------- ----------- -------- ------------ ------- ----------- Net assets 28,628 37,871 100.0 -------------------------------------- ----------- -------- ------------ ------- -----------
(1) Qualifying holdings.
(2) Part qualifying holding.
(3) These investments are also held by other funds managed by Amati.
All holdings are in ordinary shares unless otherwise stated.
As at the period end, the percentage of the Company's assets raised from all share issues held in qualifying holdings for the purposes of Section 274 of the Income and Corporation Taxes Act 2007 is 84.15%.
Sector Allocation
as at 31 August 2015
FTSE Sector Fund %
------------------- ------
Industrials 28.2
Technology 23.4
Financials 15.2
Health care 8.8
Consumer services 6.8
Basic materials 5.6
Consumer goods 4.6
Oil & Gas 0.8
Net current assets 6.6
------------------- ------
100.0
------------------- ------
Top Ten Investments
as at 31 August 2015
Valuation Fund
Company Sector GBP'000 %
--------------------- ------------------- ---------- -----
TB Amati UK Smaller
Companies Fund Financials 2,794 7.4
Sprue Aegis plc Industrials 1,942 5.1
IDOX plc Technology 1,560 4.1
TLA Worldwide plc Consumer services 1,488 3.9
Craneware plc Technology 1,363 3.6
Quixant plc Technology 1,354 3.6
GB Group plc Technology 1,304 3.4
Fox Marble Holdings
plc Basic materials 1,231 3.2
Universe Group plc Industrials 1,217 3.2
Anpario plc Health care 1,170 3.1
40.6
----------------------------------------- ---------- -----
Principal Risks and Uncertainties
The Company's assets consist of equity and fixed interest investments, cash and liquid resources. Its principal risks include market risk, credit risk and liquidity risk. Other risks faced by the Company include compliance and internal control, economic, investment and strategic, regulatory, reputational, operational and financial risks as well as the potential for loss of approval as a VCT. These risks, and the way in which they are managed, are described in more detail under the heading Other Matters within the Strategic Report in the Company's Annual Report and Accounts for the year ended 28 February 2015. The Company's principal risks and uncertainties have not changed materially since the date of that report.
Statement of Directors' Responsibilities
in respect of the half-yearly financial report
We confirm that to the best of our knowledge:
-- the condensed set of financial statements which has been prepared in accordance with the Statement "Half-yearly financial reports" issued by the UK Accounting Standards Board gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;
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-- the Chairman's Statement and Fund Manager's Review (constituting the interim management report) includes a true and fair review of the information required by DTR4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements;
-- the Statement of Principal Risks and Uncertainties above is a fair review of the information required by DTR4.2.7R, being a description of the principal risks and uncertainties for the remaining six months of the year; and
-- the financial statements include a fair review of the information required by DTR4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period and any changes in the related party transactions described in the last annual report that could do so.
For and on behalf of the Board
Peter Lawrence
Chairman
16 October 2015
Unaudited Income Statement
for the six months ended 31 August 2015
Six months ended Six months ended Year ended
31 August 2015 31 August 2014 28 February 2015
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- ----- -------- -------- -------- -------- -------- -------- -------- -------- --------
Gain/(loss) on
investments 11 - 1,050 1,050 - 193 193 - (2,065) (2,065)
Income 8 501 - 501 361 - 361 686 - 686
Investment
management fees (81) (243) (324) (89) (267) (356) (169) (508) (677)
Other
(expenses)/income (121) - (121) (145) - (145) (306) 4 (302)
Profit/(loss) on
ordinary activities
before taxation 299 807 1,106 127 (74) 53 211 (2,569) (2,358)
Taxation on ordinary 10 - - - - - - - - -
activities
Profit/(loss) on
ordinary activities
after taxation 299 807 1,106 127 (74) 53 211 (2,569) (2,358)
Return per Ordinary
share 6 0.56p 1.51p 2.07p 0.25p (0.15p) 0.10p 0.41p (5.05p) (4.64p)
--------------------- ----- -------- -------- -------- -------- -------- -------- -------- -------- --------
Return per Ordinary
share on
a diluted basis 0.56p 1.51p 2.07p 0.25p (0.15p) 0.10p 0.41p (5.05p) (4.64p)
--------------------- ----- -------- -------- -------- -------- -------- -------- -------- -------- --------
The total column is the profit and loss account of the Company.
The accompanying notes are an integral part of the statement.
All revenue and capital items derive from continuing operations.
No operations were acquired or discontinued during the period.
There were no other recognised gains or losses in the period.
Unaudited Statement of Changes in Equity
For the six months ended 31 August 2015
Non-distributable reserves Distributable reserves
Capital
Share Share premium redemption Special Capital Revenue Total
capital GBP'000 reserve reserve reserve# reserve reserves
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ ---------- ---------------- ------------ ---------- ----------- ---------- -----------
Opening balance as at 1
March
2015 5,166 9,590 676 20,992 (270) 211 36,365
Shares issued 340 2,087 - - - - 2,427
Share issue expenses - (17) - - - - (17)
Repurchase of shares (58) - 58 (398) - - (398)
Dividends paid - - - (1,401) - (211) (1,612)
Profit for the period - - - - 807 299 1,106
Closing balance as at
31
August 2015 5,448 11,660 734 19,193 537 299 37,871
------------------------ ---------- ---------------- ------------ ---------- ----------- ---------- -----------
For the six months ended 31 August 2014
Non-distributable reserves Distributable reserves
Capital
Share Share premium redemption Special Capital Revenue Total
capital GBP'000 reserve reserve reserve# reserve reserves
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ ---------- ---------------- ------------ ---------- ----------- ---------- -----------
Opening balance as at 1
March
2014 4,963 7,245 533 24,372 2,299 235 39,647
Shares issued 235 1,722 - - - - 1,957
Share issue expenses - (68) - - - - (68)
Repurchase of shares (90) - 90 (702) - - (702)
Dividends paid - - - (1,284) - (235) (1,519)
Profit for the period - - - - (74) 127 53
Closing balance as at
31
August 2014 5,108 8,899 623 22,386 2,225 127 39,368
------------------------ ---------- ---------------- ------------ ---------- ----------- ---------- -----------
Unaudited Statement of Changes in Equity (continued)
For the year ended 28 February 2015
Non-distributable reserves Distributable reserves
Capital
Share Share premium redemption Special Capital Revenue Total
capital GBP'000 reserve reserve reserve# reserve reserves
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ ---------- ---------------- ------------ ---------- ----------- ---------- -----------
Opening balance as at 1
March
2014 4,963 7,245 533 24,372 2,299 235 39,647
Shares issued 346 2,422 - - - - 2,768
Share issue expenses - (77) - - - - (77)
Repurchase of shares (143) - 143 (1,073) - - (1,073)
Dividends paid - - - (2,307) - (235) (2,542)
Loss for the period - - - - (2,569) 211 (2,358)
Closing balance as at
28
February 2015 5,166 9,590 676 20,992 (270) 211 36,365
------------------------ ---------- ---------------- ------------ ---------- ----------- ---------- -----------
# these reserves are not wholly distributable.
The accompanying notes are an integral part of the statement.
Unaudited Condensed Balance Sheet
as at 31 August 2015
31 August 31 August 28 February
2015 2014 2015
(unaudited) (unaudited) (audited)
Note GBP'000 GBP'000 GBP'000
---------------------------------------- ----- ------------ ------------ ------------
Fixed assets
Investments held at fair value 11 35,363 36,448 34,795
Current assets
Debtors 82 56 256
Cash at bank 2,410 2,765 2,037
Investments - liquidity funds 254 353 203
Total current assets 2,746 3,174 2,496
Current liabilities
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Creditors: amounts falling due within one year (238) (254) (926) Net current assets 2,508 2,920 1,570 Total assets less current liabilities 37,871 39,368 36,365 ---------------------------------------- ----- ------------ ------------ ------------ Capital and reserves Called up share capital* 5,448 5,108 5,166 Share premium account* 11,660 8,899 9,590 Special reserve 19,193 22,386 20,992 Capital redemption reserve* 734 623 676 Capital reserve 537 2,225 (270) Revenue reserve 299 127 211 Equity shareholders' funds 37,871 39,368 36,365 Net asset value per share 7 69.51p 77.07p 70.39p --------------------------------------- ----- ------------ ------------ ------------
* These reserves are not distributable.
The accompanying notes are an integral part of the statement.
Unaudited Statement of Cash Flows
for the six months ended 31 August 2015
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2015 2014 2015
(unaudited) (unaudited) (audited)
Note GBP'000 GBP'000 GBP'000
------------------------------------------ ----- ------------ ------------ ------------
Operating activities
Investment income received 546 352 601
Deposit interest received 9 4 11
Investment management fees (322) (357) (692)
Other operating costs (140) (161) (298)
Net cash inflow/(outflow) from operating
activities 12 93 (162) (378)
Financial investment
Purchase of investments (2,773) (4,370) (8,155)
(Purchase)/sale of liquidity funds (51) (1) 149
Disposals of investments 2,581 4,669 8,509
Net cash (outflow)/inflow from financial
investment (243) 298 503
Dividends
Payment of dividends 9 (1,612) (1,519) (2,542)
Net cash outflow before financing (1,762) (1,383) (2,417)
Financing
Issue of shares 2,549 1,957 2,646
Expenses of the issue of shares (16) (72) (88)
Share buy backs (398) (702) (1,073)
Net cash inflow from financing 2,135 1,183 1,485
Increase/(decrease) in cash 373 (200) (932)
Reconciliation of net cash flow to movement in
net cash
Net cash at start of period 2,037 2,965 2,965
Currency losses - - 4
Net cash at end of period 2,410 2,765 2,037
Increase/(decrease) in cash during
the period 373 (200) (932)
------------------------------------------ ----- ------------ ------------ ------------
The accompanying notes are an integral part of the statement.
Notes to the Financial Statements
for the six months ended 31 August 2015
1. The half-yearly financial results cover the six months ended 31 August 2015. The Company applies UK Generally Accepted Accounting Principles in its annual financial statements, and is intending to adopt FRS 102 and the AIC's Statement of Recommended Practice issued in November 2014 for its financial year ending 28 February 2016. The financial statements for the six months to 31 August 2015 have therefore been prepared in accordance with FRS 104 'Interim Financial Reporting'. The Directors do not expect any significant changes to the Company's accounting policies as a result of the adoption of FRS 102. The accounts have therefore been prepared on the basis of the same accounting policies as set out in the Company's Annual Report and Financial Statements for the year ended 28 February 2015.
The comparative figures for the financial year ended 28 February 2015 are not the Company's statutory accounts for that financial year, but are based on those accounts, represented as necessary to comply with FRS 102. Those accounts have been reported on by the Company's auditor and lodged with the registrar of companies. The report of the auditor was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
2. The financial information set out in this report has not been audited and does not comprise full financial statements within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 28 February 2015, which were unqualified, have been lodged with the Registrar of Companies. No statutory accounts in respect of any period after 28 February 2015 have been reported on by the Company's auditors or delivered to the Registrar of Companies.
3. Going concern
In accordance with FRC Guidance for directors on going concern and liquidity risk the directors are of the opinion that, at the time of approving the Half-yearly Report, the Company has adequate resources to continue in business for the foreseeable future. In reaching this conclusion the directors took into account the nature of the Company's business and Investment Policy, its risk management policies, the diversification of its portfolio, the cash holdings and the liquidity of non-qualifying investments. Thus the directors believe it is appropriate to continue to apply the going concern basis in preparing the financial statements.
4. Segmental reporting
The Directors are of the opinion that the Company is engaged in a single segment of business, being investment business.
5. Copies of the half-yearly report are being sent to all shareholders. Further copies are available free of charge by emailing vct-enquiries@amatiglobal.com.
6. The return per share is based on the profit on ordinary activities after taxation for the six months ended 31 August 2015 of GBP299,000 (six months ended 31 August 2014: GBP127,000, year ended 28 February 2015: GBP211,000) and the weighted average number of shares in issue during the period of 53,461,449 (31 August 2014: 50,474,941; 28 February 2015: 50,902,981).
7. The calculation of net asset value per share at 31 August 2015 is based on net assets of GBP37,871,000 (31 August 2014: GBP39,368,000; 28 February 2015: GBP36,365,000) divided by 54,483,058 (31 August 2014: 51,078,906; 28 February 2015: 51,663,729) shares in issue at the period end.
8. Income
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2015 2014 2015
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------- ------------ ------------ ------------
Income:
UK dividends 295 240 387
UK loan stock interest 199 113 284
Interest from liquidity funds - 1 1
Interest from deposits 3 7 14
Interest on tax refund 4 - -
501 361 686
------------------------------- ------------ ------------ ------------
9. Dividends Paid
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2015 (unaudited) 2014 (unaudited) 2015 (audited)
GBP'000 GBP'000 GBP'000
------------------------------------------- ------------------ ------------------ ----------------
Final dividend for the year ended 28
February 2014 of 3.0p per Ordinary share
- paid on 15 August 2014 - 1,519 1,519
------------------------------------------- ------------------ ------------------ ----------------
Interim dividend for the year ended
28 February 2015 of 2.0p per Ordinary
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share - paid on 5 December 2014 - - 1,023
------------------------------------------- ------------------ ------------------ ----------------
Final dividend for the year ended 28
February 2015 of 3.0p per Ordinary share 1,612 - -
- paid on 14 August 2015
------------------------------------------- ------------------ ------------------ ----------------
1,612 1,519 2,542
------------------------------------------- ------------------ ------------------ ----------------
10. Tax
The effective rate of tax for the six months ended 31 August 2015 is nil (2014: nil).
11. Investments
Level a Level c Level c
i) ii)
--------
Traded Unquoted Unquoted
on
AIM investments investments Total
GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------------------------------------- -------- ------------ ------------ --------
Cost as at 1 March 2015 19,800 703 8,570 29,073
---------------------------------------------------------------- -------- ------------ ------------ --------
Movements in the period:
---------------------------------------------------------------- -------- ------------ ------------ --------
Reclassification in period* - 260 (260) -
---------------------------------------------------------------- -------- ------------ ------------ --------
Purchases 1,954 - 143 2,097
---------------------------------------------------------------- -------- ------------ ------------ --------
Disposals - proceeds received (1,725) (491) (363) (2,579)
---------------------------------------------------------------- -------- ------------ ------------ --------
* realised gain/(loss) on disposal 103 - (1) 102
---------------------------------------------------------------- -------- ------------ ------------ --------
* realisation of revaluation movements from previous
years (68) 3 - (65)
---------------------------------------------------------------- -------- ------------ ------------ --------
Cost at 31 August 2015 20,064 475 8,089 28,628
---------------------------------------------------------------- -------- ------------ ------------ --------
Unrealised gains/(losses)
as at 1 March 2015 9,854 (257) (3,875) 5,722
---------------------------------------------------------------- -------- ------------ ------------ --------
Unrealised gains/(losses)
on investments during the
period 2,013 (172) (893) 948
---------------------------------------------------------------- -------- ------------ ------------ --------
Realisation of revaluation
movements from previous years 68 (3) - 65
---------------------------------------------------------------- -------- ------------ ------------ --------
Unrealised gains/(losses)
as at 31 August 2015 11,935 (432) (4,768) 6,735
---------------------------------------------------------------- -------- ------------ ------------ --------
Valuation as at 31 August
2015 31,999 43 3,321 35,363
---------------------------------------------------------------- -------- ------------ ------------ --------
Equity shares 31,999 43 209 32,251
---------------------------------------------------------------- -------- ------------ ------------ --------
Loan stock - - 3,112 3,112
---------------------------------------------------------------- -------- ------------ ------------ --------
Valuation as at 31 August
2015 31,999 43 3,321 35,363
---------------------------------------------------------------- -------- ------------ ------------ --------
* during the period Nujira Limited moved from c ii) to c i) following the agreement of terms on the sale of the business.
In order to provide further information on the valuation techniques used to measure assets carried at fair value, the measurement basis has been categorised into a "fair value hierarchy" as follows:
- Quoted market prices in active markets - "Level a"
Inputs to Level a fair values are quoted prices in active markets. An active market is one in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. The Company's investments classified within this category are AIM traded companies, fully listed companies and ISDX traded companies.
- Valued using models with significant observable market parameters - "Level b"
Inputs to Level b fair values are inputs other than quoted prices included within Level a that are observable for the asset, either directly or indirectly.
- A valuation technique; - "Level c i) & ii)"
i) Using observable market data; or ii) Using non-observable market data.
12. Reconciliation of gain/(loss) on Ordinary Activities Before Taxation to Net Cash Outflow from Operating Activities
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2015 2014 2015
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------ ------------ ------------ ------------
Gain/(loss) on ordinary activities
before taxation 1,106 53 (2,358)
Net (gain)/loss on investments (1,050) (193) 2,065
Decrease in creditors, excluding
corporation tax payable (13) (12) (8)
Decrease/(increase) in debtors 50 (10) (73)
Currency gains - - (4)
Net cash inflow/(outflow) from
operating activities 93 (162) (378)
------------------------------------ ------------ ------------ ------------
13. Related Parties
The Company holds 344,359 shares in Anpario plc, an AIM traded company of which Peter Lawrence has been a non-executive director since his appointment on 24 August 2005. At 31 August 2015 he held 27,950 shares in Anpario plc, which were subsequently transferred to The Peter Lawrence and Family Charitable Trust in September 2015.
The Company holds 1,133,956 shares and 1,046,728 convertible loan stock units in Polyhedra Group plc, an unlisted company, of which Douglas Lawson is a non-executive director. The Company also holds 3,633,510 shares and 551,700 convertible loan stock in Fox Marble Holdings plc, an AIM traded company of which Paul Jourdan is a non-executive director.
The Company retains Amati Global Investors Limited as its Manager. The number of ordinary shares (all of which are held beneficially) by certain members of the management team of the Manager are:
31 August
2015 shares
held
Paul Jourdan 282,506
Douglas Lawson 18,011
David Stevenson 14,134
Rosanna Colangeli 9,084
------------------- -------------
Related party transaction
Save as disclosed in this paragraph there is no conflict of interest between the Company, the duties of the directors, the duties of the directors of the Manager and their private interests and other duties.
Shareholder Information
Registrars account log in
You will now also be able to see details of your shareholding on Share Registrars' website (www.shareregistrars.uk.com). To set up a secure login for this you will need your Investor ID, which can be found on your share certificate. In addition, once set up, you can amend your address and bank mandate details and input a proxy vote for a Company meeting using this online service.
Dividends
Shareholders who wish to have future dividends reinvested in the Company's shares or wish to have dividends paid directly into their bank account rather than sent by cheque to their registered address should contact Share Registrars Limited on 01252 821 390 or email enquiries@shareregistrars.uk.com.
Share Price
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