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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Octopus Aim Vct Plc | LSE:OOA | London | Ordinary Share | GB0034202076 | 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% | 61.50 | 60.00 | 63.00 | 61.50 | 61.50 | 61.50 | 130,602 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Investors, Nec | -30.13M | -33.41M | -0.1863 | -3.30 | 110.28M |
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Octopus AIM VCT Plc
Half-Yearly Results
03 November 2016
Octopus AIM VCT plc, managed by Octopus Investments Limited, today
announces the half-yearly results for the six months ended 31 August
2016.
These results were approved by the Board of Directors on 1 November
2016.
You may, in due course, view the Half-Yearly report in full at
www.octopusinvestments.com. All other statutory information can also be
found there.
Financial Headlines
107.4p Net Asset Value at 31 August 2016
2.5p Interim dividend proposed for half year to 31 August
2016
The interim dividend of 2.5p will be paid on 20 January 2017 to those
shareholders on the register on 30 December 2016.
Financial Summary
Six months to 31 Six months to 31 Year to
August 2016 August 2015 29 February 2016
Net assets
(GBP'000s) 91,832 77,363 77,224
Net profit /(loss)
after tax
(GBP'000s) 6,915 1,895 742
Net asset value per
share ("NAV") (p) 107.4 105.6 101.6
Ordinary Dividends
paid in the period
(p) 2.5 2.8 5.3
Special Dividends
paid in the period
(p) - 4.0 4.0
Total return* (%) 8.2 2.0 0.6
* The total return is calculated as the (movement in NAV + Dividends
paid in the period) divided by the NAV at the beginning of period
Chairman's Statement
Introduction
The six months to 31 August 2016 was another unsettled time for the
stock market. It started the period off still worried about the extent
of stalling Chinese growth before turning its attention to domestic
politics. Increasing concerns fuelled by opposing opinion polls about
the forthcoming referendum finally came to a head with the result in
favour of Brexit at the end of June. The market initially fell
dramatically on the back of the result, although it started to recover
quite rapidly as July progressed with those companies perceived to be
beneficiaries of weaker sterling leading the indices upwards. The
recovery continued in August although early stage companies perceived as
risky, and those deemed to be directly affected by the decision to leave
the EU, have yet to recover their previous levels.
Despite all the newspaper headlines, AIM has continued to raise money
for companies, albeit at a slower rate than in 2014 and 2015. The fall
in prices early in 2016 caused some potential new issues to delay their
market debut although others did manage to raise money and float, with a
notable pick-up in activity in May before the Referendum. Once again,
further fundraisings for existing businesses exceeded those for new
issues, demonstrating that AIM continues to support its existing
members.
VCTs have also been getting to grips with the new legislation which was
introduced in November with the Royal Assent of the second Finance Bill.
Valuations have remained more realistic and your company has invested a
total of GBP2.1 million in VCT qualifying holdings in the first half of
the year.
Board Composition
As you will be aware Michael Reeve retired as Chairman at the Company's
annual general meeting in July. Your Board has conducted a search for
new directors and I am delighted to welcome the successful candidates,
Joanne Parfrey and Neal Ransome, as non-executive directors. Both Joanne
and Neal bring a wealth of experience to the Board which will be of
great assistance as the Company faces up to the challenges of the
changes to the VCT regulations. Neal has also been appointed Chairman of
the Audit Committee.
I am sorry to announce the retirement of Marion Sears from the Board.
Marion has concluded that she has too many demands on her time and,
having served five years on the Board, she has decided to step down. She
has been an invaluable Board member and has served shareholders
resolutely. Her counsel will be greatly missed.
Performance
The AIM index in particular has been driven higher by some of its
largest constituents, and of course it remains the case that there is no
comparable index for an AIM VCT, given the regulations that VCTs must
comply with. During the period, the FTSE SmallCap (excluding Investment
Companies) rose by 12%, the FTSE All Share Index by 10.5%, and the FTSE
AIM All Share Index by 15.1%, all on a total return basis.
Adding back the 2.5p paid out in dividends in the period, the Net Asset
Value of the Company increased by 8.2% in the six month period. Smaller
Companies performed better than the FTSE 100 for much of the period
although the latter enjoyed a surge based on its high percentage of
overseas earnings once sterling had devalued as a result of the Brexit
vote. The cautious tone of the market impacted the share prices of
early stage companies not yet making a profit, of which we hold a number
in the portfolio, particularly in the pharmaceutical, medical device and
technology sectors. Poor performers in this category in the six months
included Midatech Pharma, Nektan, Microsaic and Cambridge Cognition, but
there were others such as Escher Group, Fusionex and Ergomed which
remain profitable but have had downgrades to forecasts as a result of
pursuing a more aggressive growth strategy and which have consequently
suffered from weak share prices.
Among the more mature and profitable businesses, which still account for
more than 80% of the equity investments of the VCT by value, there was a
more mixed performance than had been the case previously. Staffline and
Vertu Motors were both large negative contributors to returns in the six
months as both are perceived to be exposed to the consumer and
vulnerable to slowing domestic growth. Staffline in particular is seen
as being in the 'wrong' sector as well as sourcing a large percentage of
factory and other workers for customers from Europe. Vertu Motors shares
have also been under pressure as a supplier of high ticket consumer
goods even though most of its profit comes from servicing and second
hand car sales rather than new car sales. The Manager does not share
the market's current pessimism about these companies which have been
held in the portfolio for a number of years and where the management
teams have successfully dealt with economic challenges in the past.
There were also a number of good contributors to performance in the six
months. DP Poland saw its shares continue to rise on the news that it is
now signing up sub-franchisees for its Dominos Pizza openings in Poland,
reducing its capital costs to get to sufficient outlets to breakeven.
Craneware was another strong performer, helped by its currency exposure
and a steady increase in its sales to US hospitals. Others included
Animalcare, Gear4 Music, Idox, Next Fifteen, Quixant and GB Group.
Dividend
In line with your board's policy, an interim dividend of 2.5p per share
has been declared. This will be paid to shareholders, who are on the
share register on 30 December 2016, on 20 January 2017. As usual, the
year-end dividend will be set at a level so as to meet, at a minimum,
the annualised 5% yield target.
Investment Activity
Your Manager has invested GBP2.1 million into qualifying investments in
the six months to the end of August, into four new holdings; Yu Group,
Osirium Technologies, LoopUp Group and Genedrive. The first three of
these were all new flotations on AIM. Yu Group trades as Yu Energy and
is an independent supplier of gas and electricity to UK small and medium
sized enterprises, Osirium is a UK based cyber-security software
provider that protects the critical IT infrastructure of companies from
attacks targeting privileged account users and LoopUp provides software
for conference calls, enabling people to conduct their calls more
efficiently. Genedrive is an existing AIM company which has developed a
device for rapid TB diagnosis in doctors' surgeries in developing
countries.
Your manager sold out of holdings in Vianet Group and Tangent
Communications, for total gains on initial investment of GBP78,000.
Since the period end one further follow-on investment has been made in
Microsaic Systems which has been a portfolio holding for about a year
and has recently undergone a change in its management team. The original
investment was small and this top-up, at an attractive valuation, makes
it a more significant holding in the portfolio. Your managers have also
sold out of holdings in Altitude Group and Lombard Medical, and reduced
the holding in Futura Medical Group.
Your Manager has continued to use non-qualifying investments to manage
liquidity while awaiting new qualifying investment opportunities.
Existing holdings for this purpose include some AIM non-qualifying
stocks, but under the new rules new AIM non-qualifying purchases are no
longer permitted and to the extent that we use direct equity holdings we
will in future use fully listed stocks. In view of the cash held and
these rule changes, your Manager invested GBP6.0 million into Octopus
managed portfolios of mixed equity and bond funds, and GBP600,000 into
the CF Octopus Micro Cap Fund, adding to the individual investments
already held. These are Octopus funds which provide access to cash when
needed for new investments, but which are expected to provide superior
returns to bank holdings. There is no double-charging of management
fees.
Share Issues and Buy-Backs
The current prospectus offer to raise up to GBP18 million, launched in
December 2015 as part of a combined fundraise with the Octopus AIM VCT
2, has now closed, having raised the full amount.
In the six months to the end of August, your company bought back
1,303,165 shares and these have all been cancelled. Your Board remains
committed to maintaining its policy of buying back shares at a 4.5%
discount to NAV. This equates to a 5% discount, net of costs, to the
selling shareholder.
In addition 233,013 new ordinary shares were issued in July to
shareholders who participated in the dividend reinvestment scheme
(DRIS).
New VCT Regulation
VCTs have always been subject to UK regulations, not least as they
confer tax benefits on investors. In recent years these regulations
have become subject themselves to European State Aid rules. New rules
proposed in the Summer Budget in July 2015 and, following discussions
with European authorities in Brussels, these became law following the
granting of Royal Assent in November 2015. These are in addition to
existing rules which already limited investment to companies with gross
assets of no more than GBP15 million, 250 employees and where no more
than GBP5 million of State Aided funds had been raised within the past
12 months.
The new rules now in force relate to the age of companies receiving a
first investment, a lifetime limit on State Aided funds and rules
designed to target any funds raised on a company's growth. They also
recognise that there is a class of company which is 'knowledge
intensive' and therefore hungrier for capital, and some of the limits
are more generous for these types of companies.
To summarise the changes, in order to qualify companies must:
-- have fewer than 250 full time equivalent employees; and
-- have less than GBP15 million of gross assets at the time of investment
and no more than GBP16 million immediately post investment; and
-- be less than seven years old (or 10 years if a knowledge intensive
company) if raising State Aided funds for the first time; and
-- have raised no more than GBP5 million of State Aided funds in the
previous 12 months and less than the lifetime limit of GBP12 million (or
GBP20 million if a knowledge intensive company); and
-- produce a business plan to show that its funds are being raised for
growth.
Follow-on investments are allowed to provide further capital for an
existing investment up to the lifetime limit, and in certain
circumstances a company may obtain clearance to raise money to develop a
new business or market. Money raised from VCTs is not allowed to be used
for acquisitions (unless they qualify too), or to buy out debt or
existing equity. In addition, non-qualifying purchases of AIM shares are
no longer allowed.
Risks and Uncertainties
The principal risks and uncertainties are set out in Note 6 to the half
yearly report and accounts.
Outlook
Although the stockmarket has recovered from its initial panic post the
Referendum result in June, newspaper headlines are still dominated by
speculation about its likely effect on our economy in both the short and
longer term as well as the shape of our eventual relationship with
Europe and the rest of the world. These questions are unlikely to be
settled quickly and it seems therefore that investors have to be
prepared for continued bouts of uncertainty. However, the majority of
news from the portfolio has continued to be encouraging in the recent
reporting season in September.
The portfolio now contains 70 holdings across a range of sectors
including several such as Craneware, Fusionex and GB Group that have
significant international exposure. Domestic companies such as Breedon,
Vertu and Staffline have already demonstrated their management's ability
to grow their businesses successfully in difficult economic conditions.
The balance of the portfolio towards profitable companies remains, and
the cash available for new investments will allow us to take advantage
of any future weakness in share prices should they happen. With the VCT
90% invested in qualifying companies for HMRC purposes your Manager can
afford to be selective about new investments.
Roger Smith
1 November 2016
Investment Portfolio
% equity
held by
Cost as Fair % equity all
at 31 Cumulative Value at held by funds
August change in 31 August Movement Octopus managed
Quoted 2016 fair value 2016 in period AIM VCT by
Investments Sector (GBP'000) (GBP'000) (GBP'000) ('GBP000) plc Octopus
Breedon
Aggregates Construction &
Limited Building 859 4,346 5,205 376 0.5 1.5
Staffline
Recruitment
plc Support Services 334 3,434 3,768 (1,192) 1.3 11.6
GB Group plc Support Services 715 2,861 3,576 641 0.9 8.9
Technology
Quixant plc Hardware 697 2,784 3,481 833 2.3 6.3
Idox plc Software 353 3,095 3,448 1,056 1.3 3.5
Brooks
MacDonald
Group plc Finance 746 2,365 3,111 386 1.1 9.3
Tasty plc Leisure & Hotels 622 2,087 2,709 253 2.8 5.2
Mattioli Woods
plc Finance 529 2,025 2,554 285 1.6 2.3
TLA Worldwide
plc Media 807 1,372 2,179 484 2.8 4.7
Telecommunication
Netcall plc Services 437 1,521 1,958 285 2.6 4.5
DP Poland plc Leisure & Hotels 546 1,347 1,893 947 2.7 4.4
Learning
Technologies
Group plc Support Services 1,319 490 1,809 (292) 1.4 2.3
RWS Holdings
plc Support Services 367 1,237 1,604 353 0.3 6.9
Craneware plc Software 183 1,210 1,393 380 0.5 1.8
Animalcare Pharmaceuticals &
Group plc Biotech 306 1,081 1,387 275 2.6 6.8
Vertu Motors
plc General Retailers 1,265 28 1,293 (420) 0.7 4.9
Cello Group plc Media 895 352 1,247 230 1.4 5.2
Gooch & Housego Electronic &
plc Electrical 489 751 1,240 202 0.5 12.8
Restore Group
plc Support Services 467 701 1,168 95 0.3 8.8
Next Fifteen
plc Media 687 431 1,118 386 0.5 6.9
Pharmaceuticals &
Abcam Plc Biotech 895 192 1,087 83 0.1 2.3
Vectura Group Pharmaceuticals &
plc Biotech 672 389 1,061 (59) 0.1 0.2
CityFibre
Infrastructure Telecommunication
Holdings Plc Services 1,025 29 1,054 231 0.6 1.6
Pharmaceuticals &
Ergomed plc Biotech 1,440 (397) 1,043 (428) 2.2 7.7
Advanced
Medical Pharmaceuticals &
Solutions Biotech 757 282 1,039 234 0.2 8.2
Adept Telecom Telecommunication
plc Services 601 429 1,030 107 1.9 3.8
Escher Group
Holdings plc Software 1,003 (1) 1,002 118 3.1 5.5
Brady plc Software 947 50 997 149 1.8 3.0
Clinigen Group Pharmaceuticals &
plc Biotech 935 54 989 7 0.1 3.6
Yu Group Plc Utilities 705 191 896 190 2.7 9.6
Bond
International
plc Software 354 520 874 25 2.0 3.0
Osirium Electronic &
Technologies Electrical 750 115 865 115 4.6 15.4
EKF Diagnostics
plc Health 931 (128) 803 194 1.2 2.2
Nasstar plc Software 481 312 793 - 1.7 4.7
Nektan Limited Software 845 (579) 266 (240) 2.6 16.2
SQS Software
plc Software 291 440 731 36 0.4 14.6
Judges
Scientific Electronic &
plc Electrical 314 405 719 (38) 0.8 1.4
Omega
Diagnostics
plc Health 465 195 660 105 3.5 6.2
Gear4Music
Holdings plc Media 557 97 654 140 2.0 5.1
Ideagen plc Software 419 223 642 83 0.7 5.2
Haydale
Graphene Plc Chemicals 598 30 628 161 2.2 8.0
Gamma
Communications Telecommunication
Plc Services 488 86 574 62 0.1 7.9
LoopUp Group
plc Software 480 77 557 77 1.2 3.9
Mears Group plc Support Services 139 409 548 89 0.1 0.1
Access
Intelligence
plc Software 375 - 375 19 2.6 5.2
Sinclair Pharma Pharmaceuticals &
plc Biotech 765 (280) 485 (129) 0.3 0.5
Cambridge
Cognition
Group plc Health 601 (129) 472 (86) 4.2 14.5
Tyratech Chemicals 600 (150) 450 (150) 5.5 19.9
Iomart Group
plc Software 268 177 445 55 0.1 8.8
Plastics Engineering &
Capital plc Machinery 400 28 428 44 1.1 8.5
Sphere Medical Health 600 (206) 394 169 2.6 4.4
Oxford
Pharmascience Pharmaceuticals &
Group plc Biotech 1,350 (979) 371 (270) 1.1 3.5
Midatech Pharma Pharmaceuticals &
plc Biotech 600 (229) 371 (11) 0.7 3.0
Altitude Group
plc Media 600 (250) 350 200 3.9 4.5
Fusionex
International
plc Software 282 38 320 82 0.4 1.2
Futura Medical Pharmaceuticals &
plc Biotech 613 (301) 312 70 1.1 5.2
Engineering &
TP Group plc Machinery 648 (355) 293 146 1.3 6.3
Scientific Electronic &
Digital Electrical 179 106 285 17 3.5 12.0
WANdisco plc Software 241 (8) 233 80 0.4 0.6
Pharmaceuticals &
Genedrive Plc Biotech 210 (13) 197 (13) 1.4 2.3
Enteq Upstream
plc Oil Services 1,032 (862) 170 46 1.7 2.8
ReNeuron Group Pharmaceuticals &
Plc Biotech 324 (162) 162 (16) 0.2 1.2
Proxama plc Software 763 (610) 153 (153) 1.8 7.2
Dods Group plc Media 203 (88) 115 26 0.2 0.2
MyCelx
Technologies
plc Oil Equipment 1,470 (1,355) 115 13 4.3 9.2
Engineering &
Microsaic plc Machinery 625 (558) 67 (244) 0.9 3.4
1Spatial plc Software 300 (260) 40 (7) 0.1 0.2
Lombard Medical
Technologies
plc Health 408 (372) 36 (4) 0.3 0.5
Tanfield Group Engineering &
plc Machinery 226 (192) 34 (10) 0.2 0.6
Work Group plc Support Services 916 (888) 28 (3) 4.5 6.8
Total Quoted Investments 43,314 29,040 72,354 6,875
% equity
held by
Cost as Fair % equity all
at 31 Cumulative Value at held by funds
August change in 31 August Movement Octopus managed
Unquoted 2016 fair value 2016 in period AIM VCT by
Investments Sector (GBP'000) (GBP'000) (GBP'000) ('GBP000) plc Octopus
Hasgrove plc Media 88 61 149 - 0.7 4.4
Rated People
Limited Software 354 (267) 87 55 0.5 1.5
Total Unquoted Investments 442 (206) 236 55
Cost as Fair
at 31 Cumulative Value at
August change in 31 August Movement
Loan Note 2016 fair value 2016 in period
Investments Sector (GBP'000) (GBP'000) (GBP'000) ('GBP000)
Nektan Limited Software 500 - 500 -
Access
Intelligence
plc Software 120 - 120 -
Total Loan Note Investments 620 - 620 -
Total Fixed Asset Investments 44,376 28,834 73,210 6,930
Cost as Fair
at 31 Cumulative Value at
August change in 31 August Movement
Current Asset 2016 fair value 2016 in period
Investments (GBP'000) (GBP'000) (GBP'000) ('GBP000)
Octopus Portfolio Manager -
Conservative Capital Growth 3,000 177 3,177 177
Octopus Portfolio Manager -
Defensive Capital Growth 3,000 141 3,141 141
Octopus UK Micro Cap Growth 300 4 304 4
Total Current Asset Investments 6,300 322 6,622 322
Total fixed and current asset
investments 79,832
Money Market Funds 5,281
Cash at bank 8,610
Debtors less creditors (1,891)
Total net assets 91,832
Responsibility Statement of the Directors in respect of the Half-Yearly
Report
We confirm that to the best of our knowledge:
-- the half-yearly financial statements have been prepared in accordance
with the statement "Interim Financial Reporting" issued by the Financial
Reporting Council;
-- the half-yearly report includes a fair review of the information required
by the Financial Conduct Authority's 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
Roger Smith
Chairman
1 November 2016
Income Statement
Six months to 31 August Six months to 31 August
2016 2015 Year to 29 February 2016
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Realised
gain/(loss)
on disposal
of fixed
asset
investments - 78 78 - (33) (33) - 59 59
Unrealised
gain on
valuation
of fixed
asset
investment - 7,252 7,252 - 2,408 2,408 - 1,684 1,684
Income 432 - 432 385 - 385 816 - 816
Investment
management
fees (148) (445) (593) (173) (519) (692) (340) (1,021) (1,361)
Other
expenses (254) - (254) (173) - (173) (456) - (456)
Profit on
ordinary
activities
before tax 30 6,885 6,915 39 1,856 1,895 20 722 742
Taxation on
profit on
ordinary
activities -- - - - - - - - -
Profit on
ordinary
activities
after tax 30 6,885 6,915 39 1,856 1,895 20 722 742
Earnings per 0.1p 8.3p 8.4p 0.1p 2.6p 2.7p 0.0p 1.0p 1.0p
share -
basic and
diluted
-- The 'Total' column of this statement is the profit and loss account of
the Company; the supplementary revenue return and capital return columns
have been prepared under guidance published by the Association of
Investment Companies.
-- All revenue and capital items in the above statement derive from
continuing operations.
-- The accompanying notes are an integral part of the half-yearly report.
-- The Company has no recognised gains or losses other than those disclosed
in the income statement.
Statement of changes in equity
Shares Capital Special Capital Capital
Share Share to be redemption distributable reserve reserve Revenue
Capital Premium issued reserve reserves realised unrealised reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 March
2016 760 21,643 - 24 60,062 (26,518) 20,898 355 77,224
Management fee
allocated as
capital
expenditure - - - - - (445) - - (445)
Current period
gains on
disposal - - - - - 78 - - 78
Current period
gains on fair
value of
investments - - - - - - 7,252 - 7,252
Prior periods'
holding
losses now
realised - - - - - (521) 521 - -
Profit on
ordinary
activities
after tax - - - - - - - 30 30
Contributions
by and
distributions
to owners:
Repurchase and
cancellation
of own
shares (13) - - 13 (1,281) - - - (1,281)
Issue of
shares 108 11,440 - - - - - - 11,548
Share issue
costs - (463) - - - - - - (463)
Dividends paid - - - - (2,111) - - - (2,111)
Balance as at
31 August
2016 855 32,620 - 37 56,670 (27,406) 28,671 385 91,832
As at 1 March
2015 656 13,951 319 9 63,684 (29,810) 23,468 335 72,612
Management fee
allocated as
capital
expenditure - - - - - (519) - - (519)
Current period
loss on
disposal - - - - - (33) - - (33)
Current period
gain on fair
value of
investments - - - - - - 2,408 - 2,408
Prior periods'
holding
losses now
realised - - - - - (1,099) 1,099 - -
Profit on
ordinary
activities
after tax - - - - - - - 39 39
Contributions
by and
distributions
to owners:
Repurchase and
cancellation
of own
shares (3) - - 3 (328) - - - (328)
Cancellation
of Share
Premium - (4,658) - - 4,658 - - - -
Issue of
shares 80 8,979 (319) - - - - - 8,740
Share issue
costs - (597) - - - - - - (597)
Dividends paid - - - - - - (4,959) - (4,959)
Balance as at
31 August
2015 733 17,675 - 12 68,014 (31,461) 22,016 374 77,363
As at 1 March
2015 656 13,951 319 9 63,684 (29,810) 23,468 335 72,612
Management fee
allocated as
capital
expenditure - - - - - (1,021) - - (1,021)
Current period
gains on
disposal - - - - - 59 - - 59
Current period
gain on fair
value of
investments - - - - - - 1,684 - 1,684
Prior periods'
holding gains
now realised - - - - - 4,254 (4,254) - -
Profit on
ordinary
activities
after tax - - - - - - - 20 20
Contributions
by and
distributions
to owners:
Repurchase and
cancellation
of own
shares (15) - - 15 (1,499) - - - (1,499)
Cancellation
of Share
Premium - (4,658) - - 4,658 - - - -
Issue of
shares 119 12,989 (319) - - - - - 12,789
Share issue
costs - (639) - - - - - - (639)
Dividends paid - - - - (6,781) - - - (6,781)
Balance as at
29 February
2016 760 21,643 - 24 60,062 (26,518) 20,898 355 77,224
Balance Sheet
As at 29 February
As at 31 August 2016 As at 31 August 2015 2016
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Fixed asset
investments* 73,210 61,087 64,578
Current
assets:
Current asset
investments* 6,622 - -
Money market
securities* 5,281 5,257 5,269
Debtors 34 63 48
Cash at bank 8,610 11,049 9,751
20,547 16,369 15,068
Creditors:
amounts
falling due
within one
year (1,925) (93) (2,442)
Net current
assets 18,622 16,276 12,646
Net assets 91,832 77,363 77,224
Called up
equity share
capital 855 733 760
Share premium
account 32,620 17,675 21,643
Capital
redemption
reserve 37 12 24
Special
distributable
reserve 56,670 68,014 60,062
Capital
reserve
realised (27,406) (31,461) (26,518)
Capital
reserve
unrealised 28,671 22,016 20,898
Revenue
reserve 385 374 355
Total equity
shareholders'
funds 91,832 77,363 77,224
Net asset 107.4p 105.6p 101.6p
value per
share
*Held at fair value through profit & loss
The accompanying notes form an integral part of the financial
statements.
The statements were approved by the Directors and authorised for issue
on 1 November 2016 and are signed on their behalf by:
Roger Smith
Chairman
Company No: 03477519
Statement of Cash Flow
Six months to 31 Six months to 31 Year to 29
August 2016 August 2015 February 2016
GBP'000 GBP'000 GBP'000
Cash flows from
operating
activities
Return on ordinary
activities before
tax 6,915 1,895 742
Adjustments for:
Decrease in debtors 14 140 155
(Decrease)/increase
in creditors (497) (655) 1,674
(Gain)/loss on
disposal of fixed
assets (78) 33 (59)
Gain on valuation of
fixed asset
investments (7,252) (2,408) (1,684)
Cash from operations (898) (995) 828
Income taxes paid - - -
Net cash generated
from operating
activities (898) (995) 828
Cash flows from
investing
activities
Purchase of fixed
asset investments (8,445) (6,013) (11,043)
Sale of fixed asset
investments 521 5,012 5,919
Net cash flows from
investing
activities (7,924) (1,001) (5,124)
Cash flows from
financing
activities
Purchase of own
shares (1,281) (328) (1,499)
Share issues 11,085 8,143 12,469
Decrease in shares
to be issued - - (319)
Dividends Paid (2,111) (4,959) (6,781)
Net cash flows from
financing
activities 7,693 2,856 3,870
(Decrease)/Increase
in cash and cash
equivalents (1,129) 860 (426)
Opening cash and
cash equivalents 15,020 15,446 15,446
Closing cash and
cash equivalents 13,891 16,306 15,020
Cash and cash
equivalents
comprise
Cash at Bank 8,610 11,049 9,751
Money Market Funds 5,281 5,257 5,269
13,891 16,306 15,020
Notes to the Half-Yearly Report
1. Basis of preparation
The unaudited half-yearly results which cover the six months to 31
August 2016 have been prepared in accordance with the Financial
Reporting Council's (FRC) Financial Reporting Standard 104 Interim
Financial Reporting (March 2015) and the Statement of Recommended
Practice for Investment Companies issued by the Association of
Investment Companies in November 2014.
1. Publication of non-statutory accounts
The unaudited interim results for the six months ended 31 August 2016 do
not constitute statutory accounts within the meaning of s.415 of the
Companies Act 2006 and have not been delivered to the Registrar of
Companies. The comparative figures for the year ended 29 February 2016
have been extracted from the audited financial statements for that year,
which have been delivered to the Registrar of Companies. The
independent auditor's report on those financial statements, in
accordance with chapter 3 of part 16 of the Companies Act 2006, was
unqualified. This half-yearly report has not been reviewed by the
Company's auditor.
1. Earnings per share
The earnings per share at 31 August 2016 is calculated on the basis of
82,606,763 (29 February 2016: 72,226,744 and 31 August 2015: 71,101,373)
shares, being the weighted average number of shares in issue during the
period.
There are no potentially dilutive capital instruments in issue and,
therefore, no diluted return per share figures are relevant. The basic
and diluted earnings per share are therefore identical.
1. Net asset value per share
31 August 2016 31 August 2015 29 February 2016
GBP'000 GBP'000 GBP'000
Net assets 91,832 77,363 77,224
Shares in Issue 85,498,913 73,251,687 76,011,211
Net Asset Value per share 107.4p 105.6p 101.6p
There are no potentially dilutive capital instruments in issue and, as
such, the basic and diluted earnings per share are identical.
1. Dividends
The interim dividend declared of 2.5 pence per Ordinary share will be
paid on 20 January 2017 to those shareholders on the register on 30
December 2016.
1. Risks and uncertainties
The Company's assets consist of equity and fixed-rate interest
investments, cash and liquid resources. Its principal risks are
therefore market risk, credit risk and liquidity risk. Other risks faced
by the Company include economic, loss of approval as a VCT, investment
and strategic, regulatory, reputational, operational and financial
risks. 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. Related Party Transactions
Octopus acts as the investment manager of the Company. Under the
management agreement, Octopus receives a fee of 2.0 per cent per annum
of the net assets of the Company for the investment management services.
During the period, the Company incurred management fees of GBP594,000
payable to Octopus (29 February 2016: GBP1,496,000 and 31 August 2015:
GBP692,000). At the period end there was GBP326,000 outstanding to
Octopus (29 February 2016: GBP360,000 and 31 August 2015: GBPNil).
8. Post Balance Sheet Events
Investments:
Date Investment Cost (GBP)
2 September 2016 Octopus UK Micro Cap Growth Fund 600,000
9 September 2016 Microsaic Systems 459,000
18 October 2016 Octopus UK Micro Cap Growth Fund 300,000
Octopus Portfolio Manager - Conservative
19 October 2016 Capital Growth 850,000
Octopus Portfolio Manager - Defensive Capital
19 October 2016 Growth 850,000
Disposals:
Date Investment Consideration (GBP)
9 September 2016 Altitude Group 201,522
9 September 2016 Futura Medical Group 210,775
16 September 2016 Altitude Group 198,534
23 September 2016 Altitude Group 161,974
26 September 2016 Altitude Group 147,521
30 September 2016 Lombard Medical 26,369
7 October 2016 Lombard Medical 7,750
14 October 2016 Lombard Medical 7,436
Allotments:
-- 9 September 2016 - 1,415,527 shares issued at a price of 114.4p per share
-- 9 September 2016 - 190 shares issued at a price of 99.6p per share under
the DRIS
-- 3 October 2016 - 974,502 shares issued at a price of 115.5p per share
Buybacks:
-- 16 September 2016 - 282,728 shares purchased at a price of
102.5p
9. Other Information
This statement will be made available to all shareholders. Copies are
also available from the registered office of the Company at 33 Holborn,
London, EC1N 2HT, and will also be available to view on the Octopus
website at www.octopusinvestments.com.
About Octopus AIM VCT PLC
Octopus AIM VCT plc ("the Company or Fund") was launched as Close AIM
VCT PLC in the spring of 1998 and raised GBP10.1 million from private
investors through an issue of Ordinary shares.
Between October 2000 and March 2001 a further GBP20.0 million was raised
through an issue of C shares. Furthermore, between 16 March 2004 and
final closing on 5 April 2004 the Company raised GBP3.3 million by way
of a D share issue.
The C Shares were merged and converted into Ordinary shares on 31 May
2004 at a conversion ratio determined by a price mechanism related to
the respective net assets per share of both the Ordinary shares and C
shares at 29 February 2004 (which resulted in C Shareholders receiving
1.0765 Ordinary shares for each C share held).
A further GBP15.0 million was raised between 6 January 2005 and 8 April
2005 through an issue of New D shares.
On 31 May 2008, the Ordinary shares converted into D shares at a
conversion ratio of 0.5448 D shares for each Ordinary share. All of the
D shares were then re-designated into New Ordinary shares.
With effect from 1 August 2008, the management of the Company was
transferred to Octopus Investments Limited.
On 4 August 2010 the share capital was restructured and each existing
Ordinary share of 50 pence was subdivided into one Ordinary share of 1
pence and one Deferred share of 49 pence. The Deferred shares had no
economic value and were bought back by the Company for an aggregate
amount of 1 pence and cancelled.
On 12 August 2010, following approval at the Extraordinary General
Meeting on 4 August 2010, shareholders of Octopus Phoenix VCT had their
shares converted into Octopus AIM VCT shares on a relative net asset
value basis using the conversion factor of 0.42972672. On the same day,
Octopus Phoenix VCT was placed into members' voluntary liquidation.
The offer for subscription in the prospectus dated 9 July 2010 relating
to the issue of new shares in connection with the merger with Octopus
Phoenix VCT Plc was extended by a supplemental prospectus and closed on
19 April 2011 raising GBP10 million. A subsequent offer raised GBP1.9
million, closing on 5 April 2012.
A further offer was launched on 25 April 2012 and closed on 31 July
2012. The offer resulted in the issue of 2,843,092 new shares, raising a
total of GBP2.6 million.
On 23 October 2012 the Company announced an Enhanced Buyback Facility
("EBB") in respect of up to 50 per cent of the issued share capital. The
EBB closed on 31 January 2013. As a result of the EBB, the Company
repurchased 10,801,537 Ordinary shares and 10,289,443 new Ordinary
shares were issued.
An offer for subscription of up to GBP10 million, which opened on 1
February 2013 and closed on 17 December 2013, raised GBP9.4 million.
The Board completed a fund-raise of GBP4.1 million by way of an issue of
new shares in a non-prospectus offer that opened on 2 February 2014 and
closed fully subscribed on 28 March 2014.
A combined offer for subscription with Octopus AIM VCT 2 plc was
launched on 29 August 2014 with a maximum offer of GBP18.0 million in
the Company and GBP12.0 million in Octopus AIM VCT 2 plc (through a
GBP20.0 million offer and an over-allotment facility of GBP10.0 million
which was announced on 26 March 2015). The offer closed on 1 July 2015
and total raised GBP18.0 million.
A further combined fundraise with AIM VCT 2 plc was launched on 21
December 2015 to raise up to GBP12 million with an over-allotment
facility of GBP6 million. This offer closed, fully subscribed, on 30
September 2016.
Shareholder Information and Contact Details
Financial Calendar
The Company's financial calendar is as follows:
20 January 2017 2016 interim dividend paid
June 2017 Annual results for the year to 28 February 2017 announced;
Annual Report and financial statements published
July/August 2017 2017 final dividend paid
January 2018 Interim dividend paid
Dividends
Dividends will be paid by the Registrar on behalf of the Company.
Shareholders who wish to have dividends paid directly into their bank
account rather than by cheque to their registered address can complete a
mandate form for this purpose. Queries relating to dividends,
shareholdings and requests for mandate forms should be directed to the
Company's Registrar, Capita Asset Services, by calling 0871 664 0324
(calls cost 10p per minute plus network extras. Lines are open
Monday-Friday 9.00am-5.30pm), or by writing to them at:
Capita Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
Share Price
The Company's share price can be found on various financial websites,
such as www.londonstockexchange.com, by typing 'Octopus AIM' in the
'Quotes Search' box.
The latest share price as at the close of business on 1 November 2016
was 101.75p per Ordinary share.
Buying and Selling Shares
The Company's Ordinary shares can be bought and sold in the same way as
any other company quoted on the London Stock Exchange via a stockbroker.
There may be tax implications in respect of selling all or part of your
holdings, so shareholders should contact their independent financial
adviser if they have any queries.
The Company operates a policy of buying its own shares for cancellation
as they become available, and envisages that purchases will be made at a
5% discount to the prevailing NAV. The Company is, however, unable to
buy-back shares directly from shareholders. If you are considering
selling your shares or trading in the secondary market, please contact
Panmure Gordon (UK) Limited.
Panmure Gordon (UK) Limited is able to provide details of close periods
(when the Company is prohibited from buying in shares) and details of
the price at which the Company has bought its shares. Panmure Gordon
(UK) Limited can be contacted as follows:
Chris Lloyd 0207 886 2716 chris.lloyd@panmure.com
Paul Nolan 0207 886 2717 paul.nolan@panmure.com
Notification of Change of Address
Communications with shareholders are mailed to the registered address
held on the share register. In the event of a change of address or other
amendment this should be notified to the Company's Registrar, Capita
Asset Services, under the signature of the registered holder. Their
contact details can be found at the end of this report.
Other Information for Shareholders
Previously published Annual Reports and Half-yearly Reports are
available for viewing on the Octopus website at
www.octopusinvestments.com by navigating to Services, Investors,
Shareholder information, Octopus AIM VCT plc. All other statutory
information will also be found there.
Warning to Shareholders
Many companies are aware that their shareholders have received
unsolicited phone calls or correspondence concerning investment matters.
These are typically from overseas based "brokers" who target UK
shareholders offering to sell them what often turn out to be worthless
or high risk shares in US or UK investments. They can be very persistent
and extremely persuasive. Shareholders are therefore advised to be very
wary of any unsolicited advice, offer to buy shares at a discount or
offer for free company reports.
Please note that it is very unlikely that either Octopus Investments
Limited ('Octopus') or the Company's Registrar would make unsolicited
telephone calls to shareholders. In any event any such calls would
relate only to official documentation already circulated to shareholders
and would never be in respect of investment "advice".
If you are in any doubt about the veracity of an unsolicited phone call,
please call either Octopus, or the Registrar, at the numbers provided at
the back of this report.
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: Octopus AIM VCT PLC via Globenewswire
http://www.octopusinvestments.com
(END) Dow Jones Newswires
November 03, 2016 12:14 ET (16:14 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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