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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Downing One Vct Plc | LSE:DDV1 | London | Ordinary Share | GB00BFRSVQ41 | 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% | 57.00 | 56.00 | 58.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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Downing ONE VCT plc
Half-yearly Report for the six months ended 30 September 2017
FINANCIAL SUMMARY
30 Sep 31 Mar 30 Sep Nov
2017 2017 2016 2013
pence pence pence pence
Net asset value per share ("NAV") 88.8 90.4 93.1 100.4
Cumulative dividends paid since 12 November
2013 22.5 18.0 15.0 0.0
Total return 111.3 108.4 108.1 100.4
(net asset value plus cumulative dividends paid per
share)
CHAIRMAN'S STATEMENT
I am pleased to present the Company's half-yearly report for the
six-month period ended 30 September 2017. The news from the portfolio
has generally been positive over the period resulting in a further
advance in the Company's net asset value (after adjusting for dividends
paid).
Net asset value and results
As at 30 September 2017, the Company's NAV stood at 88.8p an increase of
2.9p (or 3.2%) compared to the 31 March 2017 year-end position, after
adding back the 4.5p dividend paid during the period.
The return attributable to equity shareholders for the period was GBP2.8
million, comprising a revenue gain of GBP1.2 million and a capital
return of GBP1.6 million.
Investment activity and performance
The Company made 6 qualifying investments during the period totalling
GBP2.9 million. Three of these were new investments and three were
further funding of existing portfolio companies.
As mentioned in my statement in the last Annual Report, the Company also
made a GBP5 million non-qualifying investment into the Downing Strategic
Micro-Cap Investment Trust plc, a new Investment Trust managed by the
same team at Downing that advises the Company on its AIM-quoted
portfolio. As an Investment Trust, this is one of the few types of
non-qualifying investments now permitted under the current VCT
regulations and provides the Company with liquidity and some potential
for growth on funds that would otherwise be held as cash while awaiting
investment in new VCT qualifying opportunities. The Board has agreed
with Downing that there will be no "double charging" of fees in respect
of this investment.
There were a number of disposals and part disposals in the period. The
most significant was the sale of Vulcan Renewables Limited. The company
developed an Anaerobic digestion plant and our investment was sold for
GBP6.1 million compared to an original cost of GBP5.0 million, with
GBP510,000 of the gain being recognised in the period and an additional
GBP1.0 million of previously unrecognised loan stock interest being paid
on exit. Total realisations in the period produced proceeds of GBP15.2
million and net realised gains in the period of GBP590,000.
In respect of the existing portfolio, net unrealised gains over the
period were GBP1.3 million. The most significant uplift was the
investment in Giving Limited, which operates the justgiving.com
fundraising website. The investment was sold shortly after the period
end so the valuation was increased by GBP447,000 to recognise the exit
value. There were a number of other unrealised gains and losses across
the portfolio, the most significant of which are detailed in the
Investment Adviser's report.
Further details of the investment activities of the Company are in the
Investment Adviser's Report.
Dividends
The Company's stated policy is to seek to pay dividends of at least 4%
of net asset value each year, which in recent years the Company has
exceeded as a result of a significant level of realisations.
This year an interim dividend of 3p per share will be paid on 23
February 2018 to Shareholders on the register at 2 February 2018. This
is in line with the usual February and August payment dates.
This will take the total dividends to 25.5p since the merger in November
2013.
Fundraising
The Company launched a new offer for subscription on 7 September 2017
seeking to raise up to GBP20 million, with the option of a further GBP10
million. The offer has been well received by the market, with GBP9.9
million being raised to date.
Share buybacks
The Company operates a policy of buying in its own shares that become
available in the market at a 5% discount to NAV (subject to liquidity
and any regulatory restrictions).
During the period, the Company purchased 1,123,930 shares at an average
price of 84.3p per Ordinary Share, being a 5% discount to the latest
announced NAV at the time of purchase.
Outlook
Since the merger in 2013, we have experienced steady positive
performance. With some 85 investments in the portfolio and the largest
investment counting for little more than 5% of the total value, the
impact of positive or negative developments in any one investment tends
to have only a small influence on the overall performance of the
Company. The Board believes that the portfolio has the potential to
continue to deliver similar results into the future.
Shareholders may be aware that the Government recently undertook a
"Patient Capital Review" which examined the supply of capital to growing
innovative firms in the UK. The results of the review were published as
part of the Budget in November and accordingly a number of changes to
the VCT regulations were announced.
In general, the new regulations seek to focus future VCT investment into
growing businesses where the investment carries a significant risk. At
this stage, it is not exactly clear how the proposed tests will be
applied by HMRC. There is a possibility that these changes may restrict
the Company's ability to make further new "income focussed" investments
in future. The Board may decide to modify the Company's Investment
Policy in due course to make it consistent with the new regulations. The
Board and Adviser will monitor developments. However, with a large
proportion of the Company's funds already invested, the Board does not
anticipate that there will be a significant shift in the risk profile of
the portfolio in the short term.
I look forward to updating Shareholders on developments and progress of
the portfolio in my statement with the Annual Report covering the year
to 31 March 2018.
Chris Kay
Chairman
INVESTMENT ADVISER'S REPORT
Introduction
At 30 September 2017, the Company held a portfolio of 85 investments,
valued in total at GBP81.0 million.
There have been some positive and negatives within the portfolio over
the period, however overall there has been a rise in value across both
the quoted and unquoted portfolios.
Unquoted portfolio
Investment activity
At 30 September 2017, the unquoted portfolio was valued at GBP52.7
million comprising 54 investments, spread across a number of sectors.
Three new qualifying investments were made during the six month period
as follows:
Volo Commerce Limited has developed software as a service platform to
support online merchants selling through market places such as Amazon
and eBay. Downing ONE has invested GBP566,000 in the business.
GBP394,000 was invested in BridgeU Corporation, an education technology
business which assists students with university applications.
GBP250,000 was invested in Empiribox Limited, a business that provides
equipment and training to teachers in UK primary schools to facilitate
the delivery of engaging and practical science lessons.
Three qualifying investments were also made into existing portfolio
companies:
GBP850,000 was invested in Leytonstone Pub Limited to enable the
installation of a cocktail bar and enhancements to the premises.
A further qualifying investment of GBP750,000 was made in Xupes, the
pre-owned luxury e-commerce business based in Bishops Stortford,
specialising in watches, handbags, jewellery and antiques.
GBP100,000 was also invested in Curo Compensation Limited, the provider
of a human resource software service.
Realisations of investments in the six months generated proceeds of
GBP13.7 million and total profits over holding value of GBP685,000.
A summary of the most significant realisations is shown below:
The investment in Vulcan Renewables Limited, an anaerobic digestion
plant in south Yorkshire, was sold, generating proceeds of GBP6.1
million, a gain over previous holding value of GBP510,000 and also
GBP1.0 million of loan stock interest paid that had not previously been
recognised.
GBP1.3 million proceeds were received for Mosaic Spa and Health Clubs
Limited which part redeemed loan notes at our previous carrying value,
but which was GBP465,000 lower than original cost.
The Gara Rock leisure development was sold generating GBP672,000 of
proceeds. These proceeds repaid loan notes at par.
A portfolio of Scottish bars and night clubs was sold during the period
generating total proceeds of GBP580,000 from Cheers Dumbarton Limited,
City Falkirk Limited, Fubar Stirling Limited and Lochrise Limited. This
resulted in a realised gain in the period of GBP121,000, although this
was a loss of GBP33,000 against original cost. A further distribution is
expected this year for the remaining loan notes held in Fubar Stirling
Limited.
In addition, a GBP2.5 million investment in each of Brownfields Trading
Limited and Rhodes Solutions Limited was returned to the Company when
the businesses were wound up having been unable to secure the business
opportunities that they were pursuing.
Portfolio valuation
A number of adjustments to carrying values have been made at the period
end and the overall movement on the unquoted portfolio was a gain of
GBP949,000. The most significant of which are summarised below:
Giving Limited, the online charity fundraising platform, was sold in
October. The September value reflects the actual proceeds received which
represented an uplift of GBP447,000 in the period.
Data Centre Response, the provider of uninterruptable power supply
systems has performed well in the last year and the value has been
increased by GBP207,000.
Leytonstone Pub Limited, is performing well and an uplift of GBP186,000
has been recognised.
Kimbolton Lodge Limited which operates a care home for the elderly in
Bedford was uplifted by GBP121,000 following continued good performance.
An uplift of GBP78,000 was recognised on Fresh Green Power Limited, a
company that owns and operates photovoltaic solar panels.
Fenkle Street LLP owns a building in Newcastle and converted it into a
hotel. The hotel continues to trade well and a further uplift of
GBP49,000 has been recognised.
The above gains were partially offset in the period by two value write
downs in the period totalling GBP140,000.
Quoted investments
Investment activity
At 30 September 2017 the quoted portfolio was valued at GBP28.4 million
comprising 31 active investments.
An opportunity arose to dispose of the holding in Plastics Capital plc
which produced proceeds of GBP1.4 million and realised a gain against
cost of GBP584,000 although a loss of GBP95,000 against the previous
carrying value.
Portfolio valuation
Overall the quoted portfolio produced unrealised gains of GBP410,000.
The most notable movements in the portfolio over the period as discussed
below.
Anpario plc, the international producer of natural feed additives for
animal health, experienced appreciation in its share price following an
upgrade in analysts' expectations following strong interim results.
This resulted in an increase in value of GBP588,00.
Craneware plc, the provider of billing software solutions in the US
healthcare market, saw earnings progress along with forward order book.
Given the confidence in future earnings the company experienced a
further re-rating in the period resulting in an increase in value of
GBP174,000.
Meanwhile, on the negative side, Science in Sport plc, the manufacturer
and distributor of nutritional sports products, saw its share price
decline in the period, providing an unrealised loss of GBP394,000. The
share price reduction was a result of profit taking by largely small
shareholders, despite continued growth in turnover.
Outlook
We remain broadly satisfied with the portfolio and believe it continues
to contain investments which can deliver good outcomes for Shareholders
in the future. With existing funds available and new funds being raised,
the Company will be an active investor over the remainder of the year.
In line with the current VCT regulations, the main focus for new
investments is on younger growth companies and we have worked to produce
a steady pipeline of such businesses. Although it is likely to be a
competitive environment for new investments, we expect to see several
prospects joining the portfolio in due course.
Downing LLP
UNAUDITED BALANCE SHEET
as at 30 September 2017
30 Sep 30 Sep
2017 2016 31 Mar 2017
GBP'000 GBP'000 GBP'000
Fixed assets
Investments 81,037 87,644 86,397
Current assets
Debtors 767 248 448
Cash at bank and in hand 8,337 8,118 5,523
9,104 8,366 5,971
Creditors: amounts falling due within one
year (249) (239) (498)
Net current assets 8,855 8,127 5,473
Net assets 89,892 95,771 91,870
Capital and reserves
Called up share capital 1,008 1,014 1,016
Capital redemption reserve 1,564 1,536 1,553
Share premium 13,710 11,624 13,387
Share capital to be issued 361 1,353 -
Special reserve 73,559 81,704 77,049
Capital reserve - unrealised (259) (2,050) (1,002)
Revenue reserve (51) 590 (133)
Equity shareholders' funds 89,892 95,771 91,870
Basic and diluted net asset value per 88.8p 93.1p 90.4p
share
UNAUDITED INCOME STATEMENT
for the six months ended 30 September 2017
Six months ended Six months ended Year ended
30 September 2017 30 September 2016 31 March 2017
Revenue Capital Total Revenue Capital Total Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Income 2,102 - 2,102 859 - 859 1,945
Gains/(losses)
on investments
- realised - 590 590 - 491 491 652
- unrealised - 1,314 1,314 - 1,681 1,681 2,085
2,102 1,904 4,006 859 2,172 3,031 4,682
Investment
management
fees (413) (413) (826) (439) (439) (878) (1,750)
Other expenses (345) - (345) (331) - (331) (652)
Return on
ordinary
activities
before tax 1,344 1,491 2,835 89 1,733 1,822 2,280
Tax on total
comprehensive
income and
ordinary
activities (124) 124 - (132) 132 - -
(Loss)/return
attributable to
equity
shareholders 1,220 1,615 2,835 (43) 1,865 1,822 2,280
Basic and 1.2p 0.0p
diluted return 1.6p 2.8p 1.9p 1.9p 2.3p
per share
The total column within the Income Statement represents the Statement of
Total Comprehensive Income of the Company prepared in accordance with
Financial Reporting Standards ("FRS102"). There are no other items of
comprehensive income. The supplementary revenue and capital return
columns are prepared in accordance with the Statement of Recommended
Practice issued in November 2014 by the Association of Investment
Companies ("AIC SORP").
STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 September 2017
Funds
held in
respect
of
Capital shares Capital
Share redemption Share not yet Special reserve Revaluation Revenue
Capital reserve premium account allotted reserve -realised reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the six months ended 30 September 2017
At 1 April
2017 1,016 1,553 13,387 - 77,049 - (1,002) (133) 91,870
Total
comprehensive
income - - - - - 301 1,314 1,219 2,834
Realisation of
revaluations
from previous
years* - - - - - 571 (571) - -
Transfer
between
reserves** - - - - (2,540) 2,540 - - -
Transactions with owners
Dividends paid - - - - - (3,412) - (1,137) (4,549)
Unallotted
shares - - - 361 - - - - 361
Issue of new
shares 3 - 323 - - - - - 326
Share issue
costs - - - - - - - - -
Purchase of
own shares (11) 11 - - (950) - - - (950)
At 30
September
2017 1,008 1,564 13,710 361 73,559 - (259) (51) 89,892
* A transfer of GBP571,000 representing previously recognised
unrealised gains on disposal of investments during the period ended 30
September 2017 (year ended 31 March 2017: losses GBP1,593,000) has been
made from the Capital Reserve realised to the Special reserve.
** A transfer of GBP2.5 million representing realised gains on disposal
of investments, less capital expenses and capital dividends in the year
(year ended 31 March 2017: GBP5.1 million) has been made from Capital
Reserves - realised to Special reserve.
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2017
Capital Funds Capital
Share redemption Share held in respect of shares not yet Special reserve Revaluation Revenue
Capital reserve premium account allotted reserve -realised reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the year ended 31 March 2017
At 1 April 2016 932 1,525 2,792 4,423 86,483 - (4,680) 633 92,108
Total comprehensive
income - - - - - 207 2,085 (12) 2,280
Cancellation of
Share Premium
account - - - - - - - - -
Realisation of
revaluations from
previous years - - - - - (1,593) 1,593 - -
Transfer between
reserves - - - - (6,716) 6,716 - - -
Transactions with owners
Utilised in share
issue - - - (4,423) - - - - (4,423)
Dividends paid - - - - - (5,330) - (754) (6,084)
Unallotted shares - - - - - - - -
Issue of new shares 112 - 10,595 - - - - - 10,707
Share issue costs - - - - (234) - - - (234)
Purchase of own
shares (28) 28 - - (2,484) - - - (2,484)
At 31 March 2017 1,016 1,553 13,387 - 77,049 - (1,002) (133) 91,870
UNAUDITED CASH FLOW STATEMENT
for the six months ended 30 September 2017
30 Sep 2017 30 Sep 2016 31 Mar 2017
GBP'000 GBP'000 GBP'000
Cash flow from operating
activities
Profit on ordinary activities
before taxation 2,835 1,822 2,280
Gains on investments (1,904) (2,172) (2,737)
Decrease/(increase) in debtors (317) 44 (156)
Decrease in creditors (77) (102) (14)
Cash from operations
Corporation tax paid - - -
Net cash generated/(utilised)
from operating activities 537 (408) (627)
Cash flow from investing
activities
Purchase of investments (7,910) (25,577) (27,821)
Proceeds from disposal of
investments 15,171 5,549 9,607
Net cash generated/(utilised)
from investing activities 7,261 (20,028) (18,214)
Cash flows from financing
activities
Proceeds from share issue 323 8,925 10,707
Funds held in respect of shares
not yet allotted 361 (3,070) (4,423)
Share issue costs - (202) (234)
Purchase of own shares (1,119) (985) (2,315)
Equity dividends paid (4,549) (2,827) (6,084)
Net cash (utilised)/generated
from financing activities (4,984) 1,841 (2,349)
Increase/(Decrease) in cash 2,814 (18,595) (21,190)
Net increase in cash
Beginning of year 5,523 26,713 26,713
Net cash inflow/(outflow) 2,814 (18,595) (21,190)
End of year 8,337 8,118 5,523
SUMMARY OF INVESTMENT PORTFOLIO
as at 30 September 2017
Valuation
movement % of portfolio
Cost Valuation in period by value
GBP'000 GBP'000 GBP'000
Top twenty venture capital
investments (by value)
Doneloans Limited 5,000 5,000 - 5.6%
Downing Strategic Micro Cap
Investment Trust plc ** 5,000 4,875 (125) 5.5%
Downing Care Homes Holdings
Limited 3,880 4,250 - 4.8%
Leytonstone Pub Limited 1,911 3,686 186 4.1%
Tracsis plc* 1,443 3,314 116 3.7%
Cadbury House Holdings Limited 3,082 3,075 - 3.4%
Baron House Developments LLP 2,695 2,695 - 3.0%
Pilgrim Trading Limited 2,594 2,594 - 2.9%
Jito Trading Limited 2,500 2,500 - 2.8%
Yamuna Renewables Limited 2,500 2,500 - 2.8%
Vectis Alpha Limited 2,500 2,500 - 2.8%
Anpario Group plc * 1,448 2,474 588 2.8%
Craneware plc * 850 2,375 174 2.7%
Universe Group plc * 1,586 2,349 - 2.5%
Inland Homes plc * 1,526 1,801 15 2.0%
Pantheon Trading Limited 1,500 1,500 - 1.7%
Quadrate Catering Ltd 1,500 1,500 - 1.7%
Quadrate Spa Ltd 1,872 1,500 - 1.7%
Harrogate Street LLP 1,400 1,400 - 1.6%
Xupes Limited 1,350 1,350 - 1.5%
46,137 53,238 954 59.6%
Other venture capital
investments 35,159 27,799 360 31.1%
81,296 81,037 1,314 90.7%
Cash at bank and in hand 8,337 9.3%
Total investments 89,374 100.0%
All venture capital investments are unquoted unless otherwise stated.
* Quoted on AIM
** Listed and traded on the Main Market of the London Stock
Exchange
SUMMARY OF INVESTMENT MOVEMENTS
for the six months ended 30 September 2017
Additions
GBP'000
Quoted
Downing Strategic Micro-Cap Investment Trust plc 5,000
5,000
Unquoted
Leytonstone Pub Limited 850
Xupes Limited 750
Volo Commerce Limited 566
BridgeU Corporation 394
Empiribox Limited 250
Curo Compensation Limited 100
2,910
Total additions 7,910
SUMMARY OF INVESTMENT MOVEMENTS
for the six months ended 30 September 2017
Disposals
Gain/(loss) Realised
Value at against gain/(loss)
Cost 31/03/17* Disposal Proceeds cost in period
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Quoted
Market sales
Plastics
Capital
plc 849 1,528 1,433 584 (95)
849 1,528 1,433 584 (95)
Unquoted
Including
loan note
redemptions
Vulcan
Renewables
Limited 5,030 5,548 6,058 1,028 510
Mosaic Spa
and Health
Clubs
Limited 1,800 1,325 1,325 (475) -
Gararock
Resort
Limited 672 672 672 - -
City Falkirk
Limited 326 236 324 (2) 88
Fubar
Stirling
Limited 223 201 209 (14) 8
Gatewales
Limited 16 22 60 44 38
Tramps
Nightclub
Limited 30 27 40 10 13
Cheers
Dumbarton
Limited 64 22 37 (27) 15
Lochrise
Limited - - 10 10 10
Cedarville
Limited - - 2 2 2
Investments wound up without
commencing a trade
Brownfields
Limited 2,500 2,500 2,501 1 1
Rhodes
Solutions
Limited 2,500 2,500 2,500 - -
13,161 13,053 13,738 577 685
14,010 14,581 15,171 1,161 590
* adjusted for purchases in the period
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
for the six months ended 30 September 2017
1. General Information
Downing ONE VCT plc ("the Company") is a Venture Capital Trust
established under the legislation introduced in the Finance Act 1995 and
is domiciled in the United Kingdom and incorporated in England and
Wales.
2. Basis of accounting
The unaudited half-yearly financial results cover the six months to 30
September 2017 and have been prepared in accordance with the accounting
policies set out in the statutory accounts for the year ended 31 March
2017, which were prepared in accordance with the Financial Reporting
Standard 102 ("FRS102") and in accordance with the Statement of
Recommended Practice "Financial Statements of Investment Trust
Companies" revised November 2014 ("SORP").
3. The Company has only one class of business and derives its income
from investments made in shares, securities and bank deposits.
4. The comparative figures were in respect of the six months ended 30
September 2016 and the year ended 31 March 2017 respectively.
5. Return per share
Weighted average Revenue Capital
number of shares in issue return/(loss) Gain
GBP'000 GBP'000
Period ended 30 September 2017 101,366,948 1,220 1,615
Period ended 30 September 2016 99,896,761 (43) 1,865
Year ended 31 March 2017 101,137,288 (12) 2,292
6. Dividends paid in the period
Year ended
Six months ended 31 March
30 September 2017 2017
Revenue Capital Total Total
Date paid GBP'000 GBP'000 GBP'000 GBP'000
2017 Final 18 August 2017: 4.5p 1,137 3,412 4,549 -
2017 Interim 24 February 2017: 3.0p - - - 3,068
2016 Final 12 August 2016: 3.0p - - - 3,016
1,137 3,412 4,549 6,084
7. Basic and diluted net asset value per share
NAV per
Shares in issue Net assets share
GBP'000 pence
Period ended 30 September 2017 100,829,225 89,892 88.8
Period ended 30 September 2016 101,392,582 95,771 93.1
Year ended 31 March 2017 101,583,111 91,870 90.4
8. Called up share capital
Shares in issue GBP'000
Period ended 30 September 2017 100,829,225 1,008
Period ended 30 September 2016 101,392,582 1,014
Year ended 31 March 2017 101,583,111 1,016
9. Reserves
The Special reserve is available to the Company to enable the purchase
of its own shares in the market without affecting its ability to pay
dividends/capital distributions.
30 Sep 30 Sep 31 Mar
2017 2016 2017
GBP'000 GBP'000 GBP'000
Capital redemption reserve 1,564 1,536 1,553
Share premium account 13,710 11,624 13,387
Funds held in respect of shares not yet
allotted 361 1,353 -
Special reserve 73,559 81,704 77,049
Revaluation reserve (259) (2,050) (1,002)
Revenue reserve (51) 590 (133)
Total reserves 88,884 94,757 90,854
Distributable reserves are calculated as follows:
30 Sep 30 Sep 31 Mar
2017 2016 2017
GBP'000 GBP'000 GBP'000
Special reserve 73,559 81,704 77,049
Revenue reserve (51) 590 (133)
Unrealised losses (excluding unrealised
unquoted gains) (4,115) (10,567) (4,354)
69,393 71,727 72,562
10. Investments
The fair value of investments is determined using the detailed
accounting policy as shown in the audited financial statements for the
year ended 31 March 2017. The Company has categorised its financial
instruments using the fair value hierarchy as follows:
Level a Reflects financial instruments quoted in an active market
(quoted companies and fixed interest bonds);
Level b Reflects financial instruments that have prices that are
observable either directly or indirectly; and
Level c i) Reflects financial instruments that use valuation techniques
that are based on observable market data.
ii) Reflects financial instruments that use valuation techniques that
are not based on observable market data (investments in unquoted shares
and loan note investments).
30 Sep 31 Mar
Level a Level b Level c (ii) 2017 Level a Level b Level c (ii) 2017
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Quoted on
AIM 28,340 - - 28,340 24,458 - - 24,458
Quoted on
NEX 29 - - 29 30 - - 30
Unquoted
loan
notes - - 22,317 22,317 - - 26,858 26,858
Unquoted
equity - - 30,351 30,351 - - 35,051 35,051
28,369 - 52,668 81,037 24,488 - 61,909 86,397
11. The unaudited financial statements set out herein do not constitute
statutory accounts within the meaning of Section 434 of the Companies
Act 2006 and have not been delivered to the Registrar of Companies. The
figures for the year ended 31 March 2017 have been extracted from the
financial statements for that year, which have been delivered to the
Registrar of Companies; the Auditor's report on those financial
statements was unqualified.
12. Going concern
The Directors have reviewed the Company's financial resources at the
period end and concluded that the Company is well placed to manage its
business risks.
The Directors confirm that they are satisfied that the Company has
adequate resources to continue to operate for the foreseeable future.
For this reason, the Directors believe that the Company continues to be
a going concern and that it is appropriate to apply the going concern
basis in preparing the financial statements.
13. Risks and uncertainties
Under the Disclosure and Transparency Rules, the Board is required, in
the Company's half-year results, to report on principal risks and
uncertainties facing the Company over the remainder of the financial
year.
The Board has concluded that the key risks are:
(i) compliance risk of failure to maintain approval as a VCT; and
(ii) investment risk associated with investing in small and immature
businesses.
The Company's compliance with the VCT regulations is continually
monitored by the Adviser, who regularly reports to the Board on the
current position. The Company also retains Philip Hare & Associates LLP
to provide regular reviews and advice in this area.
In order to make VCT qualifying investments, the Company has to invest
in small businesses which are often immature. It also has a limited
period in which it must invest the majority of its funds into VCT
qualifying investments. The Adviser follows a rigorous process in
vetting and careful structuring of new investments, including taking a
charge over the assets of the business wherever possible and, after an
investment is made, closely monitoring the business.
The Board is satisfied that these approaches provide satisfactory
management of the key risks.
14. The Directors confirm that, to the best of their knowledge, the half
yearly financial report has been prepared in accordance with the
"Statement: Half-Yearly Financial Reports" issued by the UK Accounting
Standards Board as well as in accordance with FRS 104 Interim Financial
Reporting and the half-yearly financial report includes a fair review of
the information required by:
a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first six
months of the financial year and their impact on the condensed set of
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the year; and
b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related
party transactions that have taken place during the first six months of
the current financial year and that have materially affected the
financial position or performance of the entity during that period, and
any changes in the related party transactions described in the last
annual report that could do so.
15. Copies of the unaudited half-yearly financial results will be sent
to Shareholders shortly. Further copies can be obtained from the
Company's Registered Office and will be available for download from
www.downing.co.uk
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: Downing ONE VCT plc via Globenewswire
(END) Dow Jones Newswires
December 21, 2017 11:57 ET (16:57 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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