Annual Financial Report

 

TIDMAIGV 
 
RNS Number : 5321T 
Aberdeen Income & Growth VCT PLC 
08 June 2009 
 

Aberdeen Income and Growth VCT PLC 
 
 
Final results for the year ended 28 February 2009 
The Directors are pleased to report the Company's financial results for the year 
ended 28 February 2009. Despite the full scale banking crisis and associated 
turmoil experienced in the quoted markets, with a near collapse of AIM, the 
Company's NAV total return has seen only a modest reduction over the year, 
significantly less than the fall in markets generally. The majority of 
investments are in private companies and, therefore, the movements on quoted 
markets do not directly affect their valuations. The performance of these 
companies is broadly in line with expectations and, generally, they continue to 
meet their financial obligations to both their banks and shareholders. The 
Company has also achieved two profitable exits during the year. The unlisted 
portfolio has held up satisfactorily in what are almost unprecedented economic 
conditions for the SME sector, which we expect to continue for some time. 
 
 
The values of our AIM/PLUS holdings have, however, been hit hard in line with 
the wider impact on listed markets, despite sound underlying trading figures and 
earnings in many cases. There has inevitably been a reduction in the Net Asset 
Value (NAV) of the AIM/PLUS element of the portfolio, as AIM has been 
particularly affected by poor global conditions, with the index falling by more 
than 60% over the year. 
 
 
Overall, the Company has performed satisfactorily in the face of such a 
widespread and sustained downturn for small cap and private companies. The major 
features of the year were: 
 
 
  *  NAV total return of 95.4p per share (pps) at year end, down 6.1% over the year; 
  *  NAV at year end of 63.3pps; 
  *  two successful exits from unlisted companies during the year, generating net 
  gains of 3.1pps; and 
  *  final dividend proposed of 2.0pps, to make a total of 3.0pps for year. 
 
 
 
Performance 
The NAV total return at 28 February 2009 was 95.4pps, a decrease of 6.1% over 
the equivalent figure at 29 February 2008. At 28 February 2009, the NAV was 
63.3pps. The most important measure for a VCT is the NAV total return, being the 
long term record of dividend payments out of income and capital gains combined 
with the current NAV. In the short term, the NAV on its own is a less important 
measure of performance as the underlying investments are long-term in nature and 
not readily realisable. 
 
 
Dividends 
The Company paid an interim dividend of 1.0pps to Shareholders on 12 December 
2008. The Board is now proposing a final dividend of 2.0pps to be paid on 24 
July 2009 to Shareholders on the register on 26 June 2009. All dividends are, of 
course, paid tax-free to Shareholders and the total dividend for the year of 
3.0pps is equivalent to a yield of 5.0% from an equity investment to a 
higher-rate taxpayer on an effective initial investment of 80pps when the 
initial tax relief of 20% is taken into account. Based on the mid-market share 
price of 34.0p at 28 February 2009, the annual yield to a higher-rate taxpayer 
buying shares in the secondary market would by 11.8%. Since the Company's 
launch, and after receipt of the final dividend, Shareholders will have received 
34.1pps in tax-free dividends, of which 24.6pps has been paid over the last five 
years. The effect of paying the proposed final dividend of 2.0pps will be to 
reduce the NAV to 61.3pps. 
 
 
Outlook 
The unlisted investments held by the Company are generally holding up well and 
are not directly affected by the turmoil which has been experienced in the 
quoted markets. There is, however, evidence that the banks are continuing to 
reduce their exposure to commercial lending, with the result that the unlisted 
companies in the portfolio may have to manage within their existing facilities. 
The Company does have the cash and available facilities to assist where 
appropriate. The Manager generally holds seats on our unlisted investee 
companies' boards and is, therefore, closely involved with those investments as 
they face continuing difficult market conditions. It is, of course, less closely 
associated with AIM or PLUS quoted investments, not having board representation. 
 
 
There has been little activity in AIM or PLUS in recent months and it seems 
likely that it will be some time before new opportunities to invest in companies 
seeking an IPO on that market become available. The Manager will maintain a 
focus on investing in well managed unlisted companies which offer excellent 
growth prospects, as the Manager believes that such companies will offer the 
opportunity for profitable realisations when normal market conditions return. 
 
 
 
 
 
 
 
 
 
 
 
 
+------------------------------------+---------+---------+---------+---------+---------+---------+ 
| Aberdeen Income and Growth VCT PLC                                                             | 
+------------------------------------------------------------------------------------------------+ 
| Income Statement*                                                                              | 
+------------------------------------------------------------------------------------------------+ 
| For the year ended 28 February 2009                                                            | 
+------------------------------------------------------------------------------------------------+ 
|                                    |         Year ended          |         Year ended          | 
|                                    |      28 February 2009       |      29 February 2008       | 
|                                    |        (unaudited)          |          (audited)          | 
+------------------------------------+-----------------------------+-----------------------------+ 
|                                    | Revenue | Capital |   Total | Revenue | Capital |   Total | 
+------------------------------------+---------+---------+---------+---------+---------+---------+ 
|                                    | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | 
+------------------------------------+---------+---------+---------+---------+---------+---------+ 
|                                    |         |         |         |         |         |         | 
+------------------------------------+---------+---------+---------+---------+---------+---------+ 
|                                    |         |         |         |         |         |         | 
+------------------------------------+---------+---------+---------+---------+---------+---------+ 
| Investment income and deposit      |   1,509 |       - |   1,509 |   1,677 |       - |   1,677 | 
| interest                           |         |         |         |         |         |         | 
+------------------------------------+---------+---------+---------+---------+---------+---------+ 
| Investment management fees         |    (62) |   (250) |   (312) |    (67) |   (270) |   (337) | 
+------------------------------------+---------+---------+---------+---------+---------+---------+ 
| Other expenses                     |   (204) |       - |   (204) |   (221) |       - |   (221) | 
+------------------------------------+---------+---------+---------+---------+---------+---------+ 
| Losses on investments              |       - | (3,000) | (3,000) |       - |   (360) |   (360) | 
+------------------------------------+---------+---------+---------+---------+---------+---------+ 
| Profit/(loss) on ordinary          |   1,243 | (3,250) | (2,007) |   1,389 |   (630) |     759 | 
| activities before taxation         |         |         |         |         |         |         | 
+------------------------------------+---------+---------+---------+---------+---------+---------+ 
|                                    |         |         |         |         |         |         | 
+------------------------------------+---------+---------+---------+---------+---------+---------+ 
| Tax on ordinary activities         |   (176) |    (46) |   (222) |   (395) |     343 |    (52) | 
+------------------------------------+---------+---------+---------+---------+---------+---------+ 
| Profit/(loss) on ordinary          |   1,067 | (3,296) | (2,229) |     994 |   (287) |     707 | 
| activities after taxation          |         |         |         |         |         |         | 
+------------------------------------+---------+---------+---------+---------+---------+---------+ 
|                                    |         |         |         |         |         |         | 
+------------------------------------+---------+---------+---------+---------+---------+---------+ 
| Earnings per share (pence)         |     3.0 |   (9.3) |   (6.3) |     2.8 |   (0.8) |     2.0 | 
+------------------------------------+---------+---------+---------+---------+---------+---------+ 
 
 
A Statement of Total Recognised Gains and Losses has not been prepared, as all 
gains and losses are recognised in the Income Statement. 
 
 
*The total column of this statement is the Profit and Loss Account of the 
Company. 
 
 
+-----------------------------------+--------------+--------------+------------------+ 
| Reconciliation of Movements in Shareholders'     | 
| Funds                                            | 
+--------------------------------------------------+ 
| For the year ended 28 February 2009              | 
+--------------------------------------------------+ 
|                                   |                  Year ended |       Year ended | 
|                                   |            28 February 2009 | 29 February 2008 | 
|                                   |                 (unaudited) |        (audited) | 
+-----------------------------------+-----------------------------+------------------+ 
|                                   |                     GBP'000 |          GBP'000 | 
+-----------------------------------+-----------------------------+------------------+ 
|                                   |                             |                  | 
+-----------------------------------+-----------------------------+------------------+ 
| Opening Shareholders' funds       |                      25,802 |           28,745 | 
+-----------------------------------+-----------------------------+------------------+ 
| Total (loss)/profit for year      |                     (2,229) |              707 | 
+-----------------------------------+-----------------------------+------------------+ 
| Repurchase and cancellation of    |                        (32) |                - | 
| shares                            |                             |                  | 
+-----------------------------------+-----------------------------+------------------+ 
| Dividends paid - revenue          |                     (1,170) |            (461) | 
+-----------------------------------+-----------------------------+------------------+ 
| Dividends paid - capital          |                           - |          (3,189) | 
+-----------------------------------+-----------------------------+------------------+ 
| Closing Shareholders' funds       |                      22,371 |           25,802 | 
+-----------------------------------+--------------+--------------+------------------+ 
 
 
 
 
 
 
 
 
 
 
+------------------------------+-------------+-----------+----------+----------+ 
| Aberdeen Income and Growth VCT PLC                                           | 
+------------------------------------------------------------------------------+ 
| Balance Sheet                                                                | 
+------------------------------------------------------------------------------+ 
| As at 28 February 2009                                                       | 
+------------------------------------------------------------------------------+ 
|                              |    28 February 2009     |  29 February 2008   | 
|                              |      (unaudited)        |      (audited)      | 
+------------------------------+-------------------------+---------------------+ 
|                              |    GBP'000  |  GBP'000  |  GBP'000 |  GBP'000 | 
|                              |             |           |          |          | 
+------------------------------+-------------+-----------+----------+----------+ 
| Investments at fair value    |             |    20,832 |          |   25,002 | 
| through profit or loss       |             |           |          |          | 
+------------------------------+-------------+-----------+----------+----------+ 
|                              |             |           |          |          | 
+------------------------------+-------------+-----------+----------+----------+ 
| Current assets               |             |           |          |          | 
+------------------------------+-------------+-----------+----------+----------+ 
| Debtors                      |         802 |           |      617 |          | 
+------------------------------+-------------+-----------+----------+----------+ 
| Cash and overnight deposits  |       1,110 |           |      272 |          | 
+------------------------------+-------------+-----------+----------+----------+ 
|                              |       1,912 |           |      889 |          | 
+------------------------------+-------------+-----------+----------+----------+ 
|                              |             |           |          |          | 
+------------------------------+-------------+-----------+----------+----------+ 
| Creditors                    |             |           |          |          | 
+------------------------------+-------------+-----------+----------+----------+ 
| Amounts falling due within   |         373 |           |       89 |          | 
| one year                     |             |           |          |          | 
+------------------------------+-------------+-----------+----------+----------+ 
|                              |             |           |          |          | 
+------------------------------+-------------+-----------+----------+----------+ 
| Net current assets           |             |     1,539 |          |      800 | 
+------------------------------+-------------+-----------+----------+----------+ 
| Net assets                   |             |    22,371 |          |   25,802 | 
+------------------------------+-------------+-----------+----------+----------+ 
|                              |             |           |          |          | 
+------------------------------+-------------+-----------+----------+----------+ 
|                              |             |           |          |          | 
+------------------------------+-------------+-----------+----------+----------+ 
| Capital and reserves         |             |           |          |          | 
+------------------------------+-------------+-----------+----------+----------+ 
| Called up share capital      |             |     3,535 |          |    3,546 | 
+------------------------------+-------------+-----------+----------+----------+ 
| Share premium account        |             |    17,235 |          |   17,235 | 
+------------------------------+-------------+-----------+----------+----------+ 
| Realised capital reserve     |             |     (568) |          |    2,287 | 
+------------------------------+-------------+-----------+----------+----------+ 
| Unrealised capital reserve   |             |   (7,833) |          |  (7,392) | 
+------------------------------+-------------+-----------+----------+----------+ 
| Capital redemption reserve   |             |       350 |          |      339 | 
+------------------------------+-------------+-----------+----------+----------+ 
| Profit and loss account      |             |     9,652 |          |    9,787 | 
+------------------------------+-------------+-----------+----------+----------+ 
| Net assets attributable to   |             |    22,371 |          |   25,802 | 
| Ordinary Shareholders        |             |           |          |          | 
+------------------------------+-------------+-----------+----------+----------+ 
|                              |             |           |          |          | 
+------------------------------+-------------+-----------+----------+----------+ 
| Net Asset Value per          |             |      63.3 |          |     72.8 | 
| Ordinary Share (pence)       |             |           |          |          | 
+------------------------------+-------------+-----------+----------+----------+ 
 
 
 
 
 
 
 
 
 
 
 
 
+---------------------------------------+---------+---------+----------+---------+ 
| Aberdeen Income and Growth VCT PLC    |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Cash Flow Statement                   |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| For the year ended 28 February 2009   |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
|                                       |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
|                                       |    28 February    |  29 February 2008  | 
|                                       |       2009        |     (audited)      | 
|                                       |    (unaudited)    |                    | 
+---------------------------------------+-------------------+--------------------+ 
|                                       | GBP'000 | GBP'000 |  GBP'000 | GBP'000 | 
+---------------------------------------+---------+---------+----------+---------+ 
| Operating activities                  |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Investment income received            |   1,314 |         |    1,355 |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Deposit interest received             |      23 |         |       74 |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Investment management fees paid       |   (232) |         |    (789) |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Secretarial fees paid                 |    (44) |         |     (50) |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Directors' expenses paid              |    (60) |         |     (57) |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Other cash payments                   |    (74) |         |    (112) |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Net cash inflow from operating        |         |     927 |          |     421 | 
| activities                            |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
|                                       |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Taxation                              |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Corporation tax                       |         |    (43) |          |       - | 
+---------------------------------------+---------+---------+----------+---------+ 
|                                       |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Financial investment                  |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Purchase of investments               | (5,349) |         | (15,640) |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Sale of investments                   |   6,505 |         |   12,219 |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Net cash inflow/(outflow) from        |         |   1,156 |          | (3,421) | 
| financial investment                  |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
|                                       |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Equity dividends paid                 |         | (1,170) |          | (3,650) | 
+---------------------------------------+---------+---------+----------+---------+ 
|                                       |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Net cash inflow/(outflow) before      |         |     870 |          | (6,650) | 
| financing                             |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
|                                       |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Financing                             |         |         |          |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Repurchase of Ordinary Shares         |    (32) |         |        - |         | 
+---------------------------------------+---------+---------+----------+---------+ 
| Net cash outflow from financing       |         |    (32) |          |       - | 
+---------------------------------------+---------+---------+----------+---------+ 
| Increase/(decrease) in cash           |         |     838 |          | (6,650) | 
+---------------------------------------+---------+---------+----------+---------+ 
 
 
 
 
Notes 
 
 
Accounting Policies - UK Generally Accepted Accounting Practice 
(a) Basis of preparation 
The Financial Statements have been prepared under the historical cost 
convention, modified to include the revaluations, eg investments, and in 
accordance with the Statement of Recommended Practice 'Financial Statements of 
Investment Trust Companies' (the SORP) issued in 2005. The disclosures on going 
concern in the Directors' Report form part of these Financial Statements. 
 
 
(b) Income 
Dividends receivable on equity shares and unit trusts are treated as revenue for 
the period on an ex-dividend basis. Where no ex-dividend date is available 
dividends receivable on or before the year end are treated as revenue for the 
period. Provision is made for any dividends not expected to be received. The 
fixed returns on debt securities and non-equity shares are recognised on a time 
apportionment basis so as to reflect the effective interest rate on the debt 
securities and shares. Provision is made for any fixed income not expected to be 
received. Interest receivable from cash and short term deposits and interest 
payable are accrued to the end of the year. 
 
 
(c) Expenses 
All expenses are accounted for on an accruals basis and charged to the Income 
Statement. Expenses are charged through the revenue account except as follows: 
 
 
  *  expenses which are incidental to the acquisition and disposal of an investment 
  are charged to capital; and 
  *  expenses are charged to realised capital reserves where a connection with the 
  maintenance or enhancement of the value of the investments can be demonstrated. 
  In this respect, the investment management fee has been allocated 20% to revenue 
  and 80% to realised capital reserves to reflect the Company's investment policy 
  and prospective income and capital growth. 
 
 
 
(d) Taxation 
Deferred taxation is recognised in respect of all timing differences that have 
originated but not reversed at the balance sheet date, where transactions or 
events that result in an obligation to pay more tax in the future or right to 
pay less tax in the future have occurred at the balance sheet date. This is 
subject to deferred tax assets only being recognised if it is considered more 
likely than not that there will be suitable profits from which the future 
reversal of the underlying timing differences can be deducted. Timing 
differences are differences arising between the Company's taxable profits and 
its results as stated in the Financial Statements which are capable of reversal 
in one or more subsequent periods. 
 
 
Deferred tax is measured on a non-discounted basis at the tax rates that are 
expected to apply in the periods in which timing differences are expected to 
reverse, based on tax rates and laws enacted or substantively enacted at the 
balance sheet date. 
 
 
The tax effect of different items of income/gain and expenditure/loss is 
allocated between capital reserves and revenue account on the same basis as the 
particular item to which it relates using the Company's effective rate of tax 
for the period. 
 
 
(e) Investments 
In valuing unlisted investments the Directors follow the criteria set out below. 
These procedures comply with the revised International Private Equity and 
Venture Capital Valuation Guidelines for the valuation of private equity and 
venture capital investments. Investments are recognised at their trade date and 
are valued at fair value, which represent the Directors' view of the amount for 
which an asset could be exchanged between knowledgeable willing parties in an 
arm's length transaction. This does not assume that the underlying business is 
saleable at the reporting date or that its current shareholders have an 
intention to sell their holding in the near future. 
 
 
 
A financial asset or liability is generally derecognised when the contract that 
gives rise to it is settled, sold, cancelled or expires. 
 
1. For investments completed within the 12 months prior to the reporting date 
and those at an early stage in their development, fair value is determined using 
the Price of Recent Investment Method, except that adjustments are made when 
there has been a material change in the trading circumstances of the company or 
a substantial movement in the relevant sector of the stock market. 
 
2. Whenever practical, recent investments will be valued by reference to a 
material arm's length transaction or a quoted price. 
 
3. Mature companies are valued by applying a multiple to their fully taxed 
prospective earnings to determine the enterprise value of the company. 
 
3.1 To obtain a valuation of the total ordinary share capital held by management 
and the institutional investors, the value of third party debt, institutional 
loan stock, debentures and preference share capital is deducted from the 
enterprise value. The effect of any performance related mechanisms is taken into 
account when determining the value of the ordinary share capital. 
 
3.2 Preference shares, debentures and loan stock are valued using the Price of 
Recent Investment Method. When a redemption premium has accrued, this will only 
be valued if there is a reasonable prospect of it being paid. Preference shares 
which carry a right to convert into ordinary share capital are valued at the 
higher of the Price of Recent Investment Method basis and the price/earnings 
basis, both described above. 
 
4. Where there is evidence of impairment, a provision may be taken against the 
previous valuation of the investment. 
 
5. In the absence of evidence of a deterioration, or strong defensible evidence 
of an increase in value, the fair value is determined to be that reported at the 
previous balance sheet date. 
 
6. All unlisted investments are valued individually by the Portfolio Management 
Team of the Manager. The resultant valuations are subject to detailed scrutiny 
and approval by the Directors of the Company. 
 
7. In accordance with normal market practice, investments listed on the 
Alternative Investment Market or a recognised stock exchange are valued at their 
bid market price. 
 
 
 
(f) Gains and losses on investments 
When the Company revalues its investments during the year, any gains or losses 
arising are credited/charged to the Income Statement. 
 
 
 
 
 
 
Movement in reserves 
 
 
+--------------------+---------+----------+------------+------------+----------+ 
|                    |  Share  |Realised  |Unrealised  |  Capital   |  Profit  | 
|                    |premium  | capital  |  capital   |redemption  |and loss  | 
|                    |account  |reserves  |  reserves  |  reserve   | account  | 
+--------------------+---------+----------+------------+------------+----------+ 
|                    |GBP'000  | GBP'000  |  GBP'000   |  GBP000    | GBP'000  | 
+--------------------+---------+----------+------------+------------+----------+ 
| At 1 March 2008    |  17,235 |    2,287 |    (7,392) |        339 |    9,787 | 
+--------------------+---------+----------+------------+------------+----------+ 
| Losses on sales of |       - |  (2,559) |          - |          - |        - | 
| investments        |         |          |            |            |          | 
+--------------------+---------+----------+------------+------------+----------+ 
| Tax effect of      |       - |     (46) |          - |          - |        - | 
| capital items      |         |          |            |            |          | 
+--------------------+---------+----------+------------+------------+----------+ 
| Investment         |       - |    (250) |          - |          - |        - | 
| management fees    |         |          |            |            |          | 
+--------------------+---------+----------+------------+------------+----------+ 
| Net decrease in    |       - |        - |      (441) |          - |        - | 
| value of           |         |          |            |            |          | 
| investments        |         |          |            |            |          | 
+--------------------+---------+----------+------------+------------+----------+ 
| Dividends paid     |       - |        - |          - |          - |  (1,170) | 
+--------------------+---------+----------+------------+------------+----------+ 
| Repurchase and     |       - |        - |          - |         11 |     (32) | 
| cancellation of    |         |          |            |            |          | 
| shares             |         |          |            |            |          | 
+--------------------+---------+----------+------------+------------+----------+ 
| Profit on ordinary |       - |        - |          - |          - |    1,067 | 
| activities         |         |          |            |            |          | 
| after taxation     |         |          |            |            |          | 
+--------------------+---------+----------+------------+------------+----------+ 
| At 28 February     |  17,235 |      568 |    (7,833) |        350 |    9,652 | 
| 2009               |         |          |            |            |          | 
+--------------------+---------+----------+------------+------------+----------+ 
 
 
 
Returns per Ordinary Share 
The returns per Ordinary Share are based on the following figures: 
 
 
+------------------------------+----------------+----------------+ 
|                              |  Year ended    |  Year ended    | 
+------------------------------+----------------+----------------+ 
|                              |  28 February   |  29 February   | 
|                              |      2009      |      2008      | 
+------------------------------+----------------+----------------+ 
|                              |    GBP'000     |    GBP'000     | 
+------------------------------+----------------+----------------+ 
| Weighted average number of   |     35,461,258 |     35,463,992 | 
| Ordinary Shares in issue     |                |                | 
+------------------------------+----------------+----------------+ 
| Revenue return               |   GBP1,067,000 |     GBP994,000 | 
+------------------------------+----------------+----------------+ 
| Capital return               | (GBP3,296,000) |   (GBP287,000) | 
+------------------------------+----------------+----------------+ 
| Total return                 | (GBP2,229,000) |     GBP707,000 | 
+------------------------------+----------------+----------------+ 
 
 
Net Asset Value per Ordinary Share 
Net Asset Value per Ordinary Share as at 28 February 2009 has been calculated 
using the number of Ordinary Shares in issue at that date of 35,355,071 (2008: 
35,463,992). 
 
 
Principal risks and uncertainties 
The principal risks facing the Company relate to its investment activities and 
include market price, interest rate and liquidity risk. An explanation of these 
risks and how they are managed is contained in Note 18 to the Financial 
Statements. 
 
 
Additional risks faced by the Company, and the mitigation approach adopted by 
the Board, are as follows: 
 
 
  *  investment objective: the Board's aim is to maximise absolute returns to 
  Shareholders while managing risk by ensuring an appropriate diversification of 
  investments; 
  *  investment policy: inappropriate stock selection leading to underperformance in 
  absolute and relative terms is a risk which the Manager mitigates by operating 
  within investment guidelines and regularly monitoring performance against the 
  peer group. The regulations affecting Venture Capital Trusts are central to the 
  Company's investment policy; 
  *  discount volatility: due to the lack of liquidity in the secondary market, 
  venture capital trust shares tend to trade at discounts to net asset values; and 
  *  regulatory risk: the Company operates in a complex regulatory environment and 
  faces a number of related risks. A breach of Section 274 of the Income Tax Act 
  2007 could result in the Company being subject to capital gains tax on the sale 
  of its investments. A breach of the VCT Regulations could result in the loss of 
  VCT status and consequent loss of tax reliefs currently available to 
  Shareholders. A serious breach of other regulations, such as the UKLA Listing 
  Rules or the Companies Act, would lead to suspension of its shares from the 
  Stock Exchange, loss of VCT status and reputational damage. The Board receives 
  quarterly reports from the Manager in order to monitor compliance with 
  regulations. 
 
 
 
At least twice each year the Board considers all of the above risks and the 
measures in place to manage them. 
 
 
 
 
 
 
Other information 
The Annual General Meeting will be held on 7 July 2009, commencing at 2.15 p.m. 
 
 
This Announcement has been prepared on the same basis as the Annual Report and 
Financial Statements for the year ended 29 February 2008. The Annual Report and 
Financial Statements for the year ended 28 February 2009 will be filed with the 
Registrar of Companies and issued to Shareholders in due course. 
 
 
The financial information contained within this Announcement does not constitute 
the Company's statutory Financial Statements as defined in Section 240 of the 
Companies Act 1985. The statutory Financial Statements for the year ended 29 
February 2008 have been delivered to the Registrar of Companies and contained an 
audit report which was unqualified and did not constitute statements under 
Sections 237(2) or (3) of the Companies Act 1985. 
 
 
Copies of this announcement will be available to the public at the office of 
Aberdeen Asset Managers Limited, 149 St Vincent Street, Glasgow; at the 
registered office of the Company, One Bow Churchyard, Cheapside, London and on 
the Company's website at www.aigvct.co.uk 
 
 
Directors' responsibility statement 
The Directors confirm that, to the best of their knowledge: 
 
 
  *  the Financial Statements have been prepared in accordance with the applicable 
  accounting standards and give a true and fair view of the assets, liabilities 
  and financial position of the Company as at 28 February 2009 and for the year to 
  that date; and 
  *  the Directors' Report includes a fair review of the development and performance 
  of the Company, together with a description of the principal risks and 
  uncertainties that it faces. 
 
 
 
By Order of the Board 
Aberdeen Asset Management PLC 
Secretary 
 
 
8 June 2009 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 FR SSFFEASUSESM