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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Puma Vct 10 Plc | LSE:PUMX | London | Ordinary Share | GB00BFG3QX28 | ORD GBP0.0005 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 39.00 | 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
TIDMPUMX
RNS Number : 2591L
Puma VCT 10 PLC
30 September 2016
Puma VCT 10 plc
Interim Report
For the period ended 30 June 2016
Officers and Professional Advisers
Hot Features
Premium
Directors Auditor
David Vaughan (Chairman) RSM UK Audit LLP
Stephen Hazell Smith Chartered Accountants
Graham Shore 25 Farringdon Street
London EC4A 4AB
Secretary
Eliot Kaye Sponsors and Solicitors
Howard Kennedy
Registered Number No 1 London Bridge
08714913 London SE1 9BG
Registered Office Bankers
Bond Street House The Royal Bank of Scotland
14 Clifford Street plc
London W1S 4JU London City Office
PO Box 412
62-63 Threadneedle Street
Investment Manager London EC2R 8LA
Puma Investment Management
Limited Lloyds Bank International
Bond Street House Limited
14 Clifford Street Sarnia House
London W1S 4JU Le Truchot
St Peter Port
Guernsey, GY1 4EF
Registrar VCT Tax Advisor
SLC Registrars PricewaterhouseCoopers
42- 50 Hersham Road LLP
Walton-on- Thames 1 Embankment Place
Surrey, KT12 IRZ London WC2N 6RH
Administrator Custodian
PI Administration Services Pershing Securities Limited
Limited Capstan House
Bond Street House One Clove Crescent
14 Clifford Street East India Dock
London W1S 4JU London E14 2BH
Chairman's Statement
Highlights
-- Fund substantially invested in a diverse range of high quality businesses and projects.
-- First 6p per share dividend paid during the period, equivalent to an 8.6% per annum tax-free running yield on investment.
-- Strong pipeline of VCT qualifying investment opportunities to ensure that the Company remains on track to meet its 3-year target.
-- Full recovery of interest on loan to Ennovor Trading generated an extra GBP168,000 of income. -- NAV per share up 0.18p in the half year to 96.53p (adding back dividends paid to date).
Chairman's Statement
Introduction
The Company has now deployed a substantial proportion of its funds in both qualifying and non-qualifying investments, and remains on track to meet its minimum qualifying investment percentage of 70 per cent within the requisite timeframe. Our portfolio is well positioned to deliver attractive returns to shareholders within its expected remaining time horizon.
Net Asset Value ('NAV')
The NAV per share at the period end was 90.53p, 96.53p after adding back dividends paid to date, comprising income for the period of GBP70,000 and representing a return of 0.18p per ordinary share.
Qualifying Investments
During the period, the Company made a GBP2 million qualifying investment in Saville Services Limited, a company providing contracting services over a series of projects across the United Kingdom. We are pleased to confirm that, following the period end, Saville Services entered into a new contract to provide contracting services in connection with the construction of a 77-bed, purpose-built care home in Chester.
The Company's GBP1.875 million qualifying investment (as part of a GBP5 million investment alongside other Puma VCTs) in Urban Mining Limited, a member of the Chinook Urban Mining group of companies, continues to perform well. Chinook Urban Mining is a well-funded energy-from-waste business which is developing a flagship plant in East London to generate electricity through the gasification of municipal solid waste and will benefit from Renewable Obligations Certificates. The investment is secured with a first charge over the Chinook Urban Mining business and the eight acre site of the East London plant and is yielding an attractive return to the Company.
As previously reported, a major fire occurred on 28 February 2016 at the Materials Recycling Facility ("MRF") operated by Opes Industries Limited ("Opes"), into which the Company has invested a total of GBP3.45m (as part of an GBP8.8m investment by Puma entities). As a result of the incident, and as reported in the Company's previous annual report, the Company has made a provision of GBP510,000 against the carrying value of its investment in Opes.
Opes owns a 73 hectare site in north Oxfordshire with a MRF, including a landfill site for non-hazardous materials and an aggregates/gravel quarrying business. The Company's investment was to provide funding for the construction and equipping of the MRF and working capital during the build-up of the trade. The funding was provided in the form of equity and loan stock and our interests are covered by a first fixed and floating charge over Opes' assets.
Following the incident, the Company appointed an administrator over Opes in order to best protect the Company's investment. The administrator has implemented various measures to preserve the value of Opes' assets, mitigate costs and seek to realise best value for the Company. Discussions are also continuing with Opes' insurers regarding the reimbursement of the damage to the plant and the building and of the costs of business interruption.
As previously reported, before the passing of the Finance (2) Act 2015, the Company invested a total of GBP7.5 million in three newly established businesses. Warm Hearth Limited, in which the Company invested GBP2.5 million (as part of a GBP5 million investment alongside other Puma VCTs), was established to operate a trading business in the hospitality and leisure sectors and/or to acquire businesses and companies that operate within those sectors. Mini Rainbows Limited, in which the Company invested GBP2.5 million (as part of a GBP5 million investment alongside other Puma VCTs), was established to operate a trading business in the childcare sector and/or to acquire businesses and companies that operate within that sector. Welcome Health Limited, in which the Company invested GBP2.5 million (as part of a GBP5 million investment alongside other Puma VCTs), was established to operate a trading business in the healthcare sector and/or to acquire businesses and companies that operate within that sector.
I am pleased to report that, during the period, Warm Hearth Limited commenced its trade, seeking to capitalise on the strong growth trends within the craft beer sub market and add value from the roll-out and use of a strong brand. In pursuit of this strategy Warm Hearth was able to negotiate a franchise agreement with Brewhouse & Kitchen Limited ("B&K"), a strong and fast-growing branded operator. Its differentiation is to have craft micro-brewing activities within each of its pub units as a point of focus. Warm Hearth acquired three substantial freehold pub assets in Chester, Wilmslow and Bedford, two of which are now open and trading as fully branded B&K units with the third opening in early October 2016. We are pleased with the performance of the units to date.
We understand that the directors of Mini Rainbows Limited and Welcome Health Limited are actively pursuing opportunities to deploy their funds in the near future. We have been advised by PwC that these investments should also be qualifying for VCT purposes but will seek confirmation from HMRC in due course.
Non-Qualifying Investments
As previously reported, we adopted a strategy for the non-qualifying portfolio of investing in secured loans (and other similar instruments) offering a good yield with hopefully limited downside risk.
During the period, the Company advanced a GBP575,000 loan (through an affiliate, Meadow Lending Limited) to Windsar Care (UK) LLP to fund the development and initial trading of a 68-bed purpose-built care home in Egham, Windsor. The loan is secured with a first charge over the site and is expected to generate an attractive return. Construction has commenced on site and is progressing well.
The Company's various loans to entities within the Citrus Group, as part of a series of facilities from other vehicles managed and advised by your Investment Manager to provide working capital to the Citrus PX business, continue to deliver attractive returns to the Company. Citrus PX operates a property part exchange service facilitating the rapid purchase of properties for developers and homeowners. The facility provides a series of loans to Citrus PX, with the benefit of a first charge over a geographically diversified portfolio of residential
properties on conservative terms. At the period-end, the Company's investment (through affiliates Valencia Lending Limited and Victoria Lending Limited) totalled just over GBP2.5 million, including an GBP1 million advance during the period.
The Company's GBP1.2 million loan (advanced through an affiliate, Lothian Lending Limited) to Richmond Global Properties Limited continues to perform well. This loan, together with loans from other vehicles managed and advised by your Investment Manager totalling GBP6.9 million, is being advanced to fund the development of a 112-bed purpose-built care home in Hamilton, Scotland. The loan is secured with a first charge over the site and is expected to generate an attractive return. The construction programme is progressing well and the care home is expected to open in Q1 2017.
As previously reported, the Company had extended a GBP1.3 million loan which (through Lothian Lending Limited) provides a facility, together with another Puma VCT, of GBP2.6 million to RPE FL1 Limited, a member of the Renewable Power Exchange group. The facility provided funding towards the construction of a 1.5MW wind farm in East Lothian, Scotland, with the electricity once generated, used to supply those on low incomes in the local community. The loan is secured on the site in East Lothian and is earning an attractive rate of interest. We are pleased to report that the turbines are operating well, generating electricity and EBITDA is in line with forecasts. In accordance with the planned amortisation schedule, the loan balance now stands at GBP1.175 million.
The Company's GBP800,000 loan (through another affiliate, Lavender Lending Limited) to Athena (Alpha) Limited continues to perform. The loan, as part of a GBP4.4 million facility from other vehicles managed and advised by your Investment Manager, is funding the development of a new purpose-built, 80-bed residential care home in Dover, Kent. The site occupies a prominent location adjacent to the recently opened new community hospital, approximately a 5 minute drive into Dover town centre. We are pleased to report that construction is progressing well and expects to complete before the end of the year. We understand that the borrower, who has recently developed and sold two similar care homes, is in discussions with a potential purchaser of this care home on terms which would see the Company's loan repaid in full.
The Company had extended a GBP474,000 loan (through Valencia Lending Limited) as part of a GBP2.9 million facility from other vehicles managed and advised by your Investment Manager to Churchill Homes (Culter House) Limited. Churchill Homes is a longstanding Aberdeenshire developer and the facility provides funding towards the construction of a private detached housing development in one of Aberdeen's finest residential suburbs. The loan is secured with a first charge over the site and is earning an attractive rate of interest. Whilst the Aberdeen housing market has slowed during the period, primarily as a result in the reduction in the price of oil, the loan is being serviced and the Company's security remains at an appropriate level.
As reported in the Company's annual report, at the start of the period the Company retained a GBP523,000 holding in Nextenergy Solar Fund, an investment company focusing on operational solar photovoltaic assets located in the United Kingdom. In response to a change in power-generation markets resulting from declining energy prices, the Company's position was further reduced and was fully exited during the period.
To further manage liquidity, the Company holds GBP2.5 million (through an affiliate Piccadilly Lending Limited) in a floating rate bond issued by Royal Bank of Canada and GBP835,000 (through Latimer Lending Limited) in a bond issued by J Sainsbury plc. During the period, the Company sold its GBP1 million holding (also through Latimer Lending Limited) in a floating rate bond issued by Commonwealth Bank of Australia to free up cash for the Company to make qualifying investments.
VCT Qualifying Status
PricewaterhouseCoopers LLP ('PwC') provides the board and the Investment Manager with advice on the ongoing compliance with Her Majesty's Revenue & Customs ('HMRC') rules and regulations concerning VCTs. PwC assists the Investment Manager in establishing the status of investments as qualifying holdings and has reported that the Company has met all HMRC's criteria to date.
Principal risks and uncertainties
Although the UK economy continues to improve, it remains fragile. The consequences of this for the Company's investment portfolio constitute the principal risk and uncertainty for the second half of 2016.
Outlook
We are pleased that a significant proportion of the Company's available cash is now invested in a diverse portfolio of qualifying and non-qualifying investments, generating an attractive return. The Investment Manager has a pipeline of further investment opportunities in legal process which are likely to lead to suitable investments in the second half of the year. We therefore believe the Company is strongly positioned to deliver attractive returns to shareholders during its remaining expected time horizon.
David Vaughan
Chairman
30 September 2016
Income Statement (unaudited)
For the period ended 30 June 2016
Six months Six months Year ended
ended ended 31 December
30 June 2016 30 June 2015 2015
Note 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
Loss on
investments - (23) (23) - - - - (427) (427)
Income 444 - 444 607 - 607 1,336 - 1,336
444 (23) 421 607 - 607 1,336 (427) 909
-------- -------- -------- -------- -------- -------- -------- -------- --------
Investment
management
fees 4 (62) (186) (248) (67) (201) (268) (135) (405) (540)
Other expenses (103) - (103) (131) - (131) (222) - (222)
(165) (186) (351) (198) (201) (399) (357) (405) (762)
-------- -------- -------- -------- -------- -------- -------- -------- --------
Profit/(loss)
on ordinary
activities
before
taxation 279 (209) 70 409 (201) 208 979 (832) 147
Tax on
profit
on ordinary
activities (56) 37 (19) (7) - (7) (242) 146 (96)
Profit/(loss)
and total
comprehensive
income
for the
year 223 (172) 51 402 (201) 201 737 (686) 51
======== ======== ======== ======== ======== ======== ======== ======== ========
Basic and
diluted
Return/(loss)
per Ordinary
Share (pence) 2 0.81p (0.63p) 0.18p 1.41p (0.71p) 0.71p 2.59p (2.41p) 0.18p
======== ======== ======== ======== ======== ======== ======== ======== ========
The revenue column of this statement is the profit and loss of the Company. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period.
Balance Sheet (unaudited)
As at 30 June 2016
As at As at As at
30 June 30 June 31 December
Note 2016 2015 2015
GBP'000 GBP'000 GBP'000
Fixed Assets
Investments 6 24,910 15,310 26,407
--------- --------- -------------
Current Assets
Debtors 968 553 1,033
Cash 802 11,360 418
--------- --------- -------------
1,770 11,913 1,451
Creditors - amounts
falling due within one
year (1,663) (449) (1,234)
Net Current Assets 107 11,464 217
--------- --------- -------------
Net Assets 25,017 26,774 26,624
========= ========= =============
Capital and Reserves
Called up share capital 17 17 17
Share premium account 15,624 15,624 15,624
Capital reserve - realised (743) (599) (575)
Capital reserve - unrealised (503) 10 (499)
Revenue reserve 10,622 11,722 12,057
Equity Shareholders'
Funds 25,017 26,774 26,624
========= ========= =============
Net Asset Value per
Ordinary Share 3 90.53p 96.89p 96.35p
========= ========= =============
Diluted Net Asset Value
per Ordinary Share 3 90.53p 96.89p 96.35p
========= ========= =============
Cash Flow Statement (unaudited)
For the period ended 30 June 2016
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Reconciliation of profit
after tax to net cash
generated from operating
activities
Profit after tax 51 208 51
Taxation 19 - 96
Losses on investments 19 - 427
Decrease/(increase) in
debtors 65 (461) (941)
Increase in creditors 410 192 385
Net cash generated from
operating activities 564 (61) 18
----------- ----------- -------------
Cash flow from investing
activities
Purchase of investments (3,575) (3,290) (18,242)
Proceeds from sale of
investments 5,053 1,009 4,940
Net cash used in investing
activities 1,478 (2,281) (13,302)
----------- ----------- -------------
Equity dividend paid (1,658) - -
----------- ----------- -------------
Net increase/(decrease)
in cash and cash equivalents 384 (2,342) (13,284)
Cash and cash equivalents
at the beginning of the
year 418 13,702 13,702
Cash and cash equivalents
at the end of the year 802 11,360 418
=========== =========== =============
Reconciliation of Movements in Shareholders' Funds (unaudited)
For the period ended 30 June 2016
Called
up Share Capital Capital
share premium reserve- reserve- Revenue
capital account realised unrealised reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at
1 January 2015 17 15,624 (405) 17 11,320 26,573
Total recognised
(losses)/gains
for the period - - (194) (7) 402 201
Balance as at
30 June 2015 17 15,624 (599) 10 11,722 26,774
Total recognised
(losses)/gains
for the period - - 24 (509) 335 (150)
Balance as at
31 December
2015 17 15,624 (575) (499) 12,057 26,624
Total recognised
(losses)/gains
for the period - - (168) (4) 223 51
Dividends paid - - - - (1,658) (1,658)
Balance as at
30 June 2016 17 15,624 (743) (503) 10,622 25,017
========= ========= ========== ============ ========= ========
Notes to the Interim Report
For the period ended 30 June 2016
1. Accounting Policies
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of fixed asset investments, and in accordance with applicable Accounting Standards and with the Statement of Recommended Practice, "Financial Statements of Investment Trust Companies and Venture Capital Trusts" ("SORP") and in accordance with the Financial Reporting Standard 102 ("FRS102").
2. Return per Ordinary Share
The total profit per share of 0.18p is based on the profit for the period of GBP51,000 and the weighted average number of shares in issue as at 30 June 2016 of 27,633,222.
3. Net asset value per share
As at As at As at
30 June 30 June 31 December
2016 2015 2015
Net assets 25,017,000 26,774,000 26,624,000
Shares in
issue 27,633,222 27,633,222 27,633,222
Net asset
value per
share
Basic 90.53p 96.89p 96.35p
Diluted 90.53p 96.89p 96.35p
4. Management fees
The Company pays the Investment Manager an annual management fee of 2% of the Company's net assets. The fee is payable quarterly in arrears. The annual management fee is allocated 75% to capital and 25% to revenue.
5. Financial information provided
The financial information for the period ended 30 June 2016 has not been audited and does not comprise full financial statements within the meaning of Section 423 of the Companies Act 2006. The interim financial statements have been prepared on the same basis as will be used to prepare the annual financial statements.
Notes to the Interim Report continued
For the period ended 30 June 2016
6. Investment portfolio summary
Valuation
as a %
of Net
Valuation Cost Gain/(loss) Assets
GBP'000 GBP'000 GBP'000
As at 30 June 2016
Qualifying Investment
- Unquoted
Urban Mining Limited 1,875 1,875 - 7%
Opes Industries
Limited 2,940 3,450 (510) 12%
Saville Services
Limited 2,000 2,000 8%
Warm Hearth Limited 2,500 2,500 10%
Total Qualifying
Investments 9,315 9,825 (510) 37%
---------- -------- ------------ ----------
Non-Qualifying
Investments
Valencia Lending
Limited 2,564 2,564 - 10%
Lothian Lending
Limited 2,325 2,325 - 9%
Mini Rainbows Limited 2,500 2,500 - 10%
Welcome Health
Limited 2,500 2,500 - 10%
Lavender Lending
Limited 800 800 - 3%
Victoria Lending
Limited 1,000 1,000 - 4%
Meadow Lending
Limited 575 575 - 2%
Total Non-Qualifying
investments 12,264 12,264 - 48%
---------- -------- ------------ ----------
Liquidity Management
Piccadilly Lending
(Royal Bank of
Canada Bond)* 2,508 2,503 5 10%
Latimer Lending
(Sainsbury (J)
plc Bond)* 823 822 1 3%
Total Liquidity
Management investments 3,331 3,325 6 13%
---------- -------- ------------ ----------
Total Investments 24,910 25,414 (504) 98%
Balance of Portfolio 107 107 2%
Net Assets 25,017 25,521 (504) 100%
---------- -------- ------------ ----------
*Quoted investment listed on the LSE.
Of the investments held at 30 June 2016, all are incorporated in England and Wales.
Copies of this Interim Statement will be posted to shareholders in due course and made available on the website:
http://www.pumainvestments.co.uk/pages/view/investors-information-vcts
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAKNNAFDKEFF
(END) Dow Jones Newswires
September 30, 2016 02:00 ET (06:00 GMT)
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