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Share Name Share Symbol Market Type Share ISIN Share Description
Seneca Growth Capital Vct Plc LSE:HYG London Ordinary Share GB0031256109 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +1.00p +2.94% 35.00p 33.00p 37.00p 35.00p 34.00p 34.00p 1,208 11:10:36
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 0.0 -0.1 -0.7 - 2.84

Hygea VCT plc Hygea Vct Plc : Half-year Report

24/07/2018 7:00am

UK Regulatory (RNS & others)


 
TIDMHYG 
 
 
   For immediate release                                                                                                                24 July 2018 
 
 
   Hygea vct plc 
 
 
 
   Unaudited Half-Yearly Report 
 
   For the Six Months Ended 30 June 2018 
 
   Financial Headlines 
 
 
 
 
62.3p   Net Asset Value per share at 30 June 2018 
 
24.25p  Cumulative dividends paid to date 
 
86.55p  Total return per share since launch 
 
 
 
 
   Financial Summary 
 
 
 
 
                               Six months to  Six months to       Year to 
                                30 June 2018   30 June 2017   31 December 2017 
Net assets (GBP'000s)                  5,053          5,225              5,180 
Return on ordinary activities 
 after tax (GBP'000s)                  (127)          (322)              (367) 
Earnings per share                    (1.5p)         (3.9p)             (4.5p) 
Net asset value per share              62.3p          64.4p              63.8p 
Dividends paid to date                24.25p         24.25p             24.25p 
Total return per share                86.55p         88.65p             88.05p 
Dividends declared for the                 -              -                  - 
 period 
 
 
   Chairman's Statement 
 
   I present the unaudited results for the six months ended 30 June 2018. 
The Company's net asset value ('NAV') per share at 30 June 2018 was 
62.3p compared to 63.8p at 31 December 2017 and 64.4p at 30 June 2017. 
 
   Results 
 
   The total negative return for the period amounted to 1.5p per share 
(June 2017: negative 3.9p) and is made up of a negative revenue return 
of 0.7p (June 2017: negative 0.7p) and a negative capital return of 0.8p 
(June 2017: negative 3.2p), net of performance fee reduction. 
 
   The value of our AIM portfolio has reduced in the period through the 
fall in the bid price of Omega Diagnostics Group PLC ('Omega') shares 
following publication of the results of the strategic review on 10 April 
2018, albeit that, in the opinion of the Hygea Board, the actions 
resulting from the strategic review will strengthen Omega's business. 
Scancell Holdings Plc ('Scancell') shares have returned to the share 
price as reported in Hygea's 2017 accounts, despite the very encouraging 
third party endorsements of Scancell's science as reported in Hygea's 
2017 accounts. Our unquoted portfolio remains as valued at 31 December 
2017. 
 
   As previously reported, the overdraft facility of GBP200,000 has been 
converted to a formal loan of GBP200,000 following changes at RBS due to 
Ring-Fencing; the loan is due to be repaid by 30 September 2018. 
 
   Portfolio review 
 
   During the period we have realised 200,000 shares in Scancell at an 
average price of 15.7p to provide working capital to cover operating 
expenses. 
 
   The Company's holding in Scancell (13,049,730 shares) continues to 
represent approximately one third of the portfolio at 30 June 2018 and 
the shares have been valued at their bid price of 12.5p. As reported in 
our update on 3 May 2018, Scancell announced a placing and open offer to 
raise up to GBP8.9 million at 12p per share in which we were unable to 
partake and which successfully raised GBP8.7 million, and so our holding 
has been further diluted to 3.5%. This fundraising will allow further 
development of the Moditope and ImmunoBody platforms and other studies. 
 
   Following Omega's April 2018 announcement referred to above, the share 
price has recovered a little on recent news of the sale of the 
infectious disease business, enabling funds to be redeployed from a low 
growth business into projects with a much higher growth potential and 
which the company has been developing over a number of years. 
 
   We have reviewed the valuation of our unquoted portfolio and do not 
believe that any revaluations are necessary but overall we remain 
pleased with the development of that portfolio. 
 
   I have previously expressed some optimism regarding potential liquidity 
events in the portfolio and your Board remains of the view that such an 
event may occur before the Company's year-end. 
 
   Fundraising 
 
   As shareholders will be aware, we published a prospectus to raise GBP10 
million in a new B share class (with an overallotment facility of a 
further GBP10 million) in May 2018. The funds raised for the B shares 
will be managed by Seneca Partners Limited ('Seneca'). I am pleased to 
say that, despite the challenges of fundraising so early in the new tax 
year, as at 30 June 2018 over GBP1.6 million of applications had been 
received and as at 20 July 2018 we have received a total of GBP2.4 
million. Seneca, which is responsible for the fundraising, remains 
optimistic that the minimum fundraise of GBP3 million will be reached 
before 30 September 2018. 
 
   Presentation of half-year report 
 
   As previously noted, in order to simplify this report and to reduce 
costs, we have omitted details of the Company's objectives and 
investment strategy, its Advisers and Registrars and how to buy and sell 
shares in the Company. These details are all included in the latest 
Annual Report and in the Prospectus (which also refers to certain 
changes to the management of the Company and its Investment Policy and 
other matters which will be effective as soon as the minimum 
subscription has been reached and the first new B shares allotted). 
These can both be accessed on the Company's website at www.hygeavct.com. 
 
   Outlook 
 
   2017/18 was the second best fundraising year for VCTs and we foresee 
that the demand for the product in 2018/19 will outstrip supply in view 
of the fact that many VCTs have raised significant funds which will need 
to be invested in businesses which are at an earlier stage than many 
managers are experienced in. Seneca's experience fits the parameters for 
VCT investments well and we remain hopeful that our vision for both 
existing shareholders (who will be able to retain their ordinary shares 
at relatively low cost until liquidity events occur) and new B 
shareholders (who will have access to, effectively, a new fund building 
a portfolio of growth capital investments in UK SMEs run by an 
experienced manager) will be realised before too long. 
 
   We are grateful to all shareholders and other applicants who have 
applied for new B shares and will be updating you on the progress of the 
fundraising via RIS announcements during the coming months. 
 
   John Hustler 
 
   Chairman 
 
   23 July 2018 
 
   Enquiries: 
 
   John Hustler, Hygea vct plc at john.hustler@btconnect.com 
 
   Roland Cornish, Beaumont Cornish Limited on 020 7628 3396 
 
   Investment Portfolio 
 
 
 
 
                                                 Unrealised       Carrying value at     Movement in the six months to 
Unquoted         Equity Held   Investment at    profit/(loss)        30 June 2018                30 June 2018 
Investments          (%)       cost (GBP'000)     (GBP'000)           (GBP'000)                   (GBP'000) 
Hallmarq 
 Veterinary 
 Imaging 
 Limited                10.2             1,116            913                    2,029                              - 
OR Productivity 
 Limited                11.1               765          (101)                      664                              - 
Fuel 3D 
 Technologies 
 Limited                <1.0               299           (23)                      276                              - 
Arecor Limited           1.9               141            111                      252                              - 
Insense Limited          4.6               509          (388)                      121                              - 
Exosect Limited          1.3               270          (150)                      120                              - 
Microarray 
 Limited                 1.8               132           (65)                       67                              - 
ImmunoBiology 
 Limited                 2.0               868          (868)                        -                              - 
Glide 
 Pharmaceutical 
 Technologies 
 Limited                 1.2               326          (326)                        -                              - 
Total Unquoted 
 Investments                             4,426          (897)                    3,529                              - 
 
                                                   Unrealised                           Movement in the six months to 
Quoted                           Investment at  profit/(loss)        Carrying value at                   30 June 2018 
Investments      Shares Held    cost (GBP'000)      (GBP'000)   30 June 2018 (GBP'000)                      (GBP'000) 
Scancell plc      13,049,730               790            841                    1,631                           (25) 
Omega 
 Diagnostics 
 plc               2,293,868               328           (57)                      271                          (108) 
Total Quoted 
 Investments                             1,118            784                    1,902                          (133) 
Total 
 Investments                             5,544          (113)                    5,431                          (133) 
 
 
 
   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 Services Authority 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. 
 
   -- 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: 
 
   John Hustler 
 
   Chairman 
 
   23 July 2018 
 
   Income Statement 
 
 
 
 
                Six months to 30 June      Six months to 30 June 
                        2018                       2017              Year to 31 December 2017 
              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 
 
Gain on 
 disposal of 
 fixed asset 
 investments        -        6        6        -       26       26        -       19        19 
 
Loss on 
 valuation 
 of fixed 
 asset 
 investments        -    (108)    (108)        -    (368)    (368)        -    (359)     (359) 
 
Performance 
 fee                -       32       32        -       80       80        -       91        91 
 
Investment 
income              -        -        -        -        -        -        -        -         - 
 
Other 
 expenses        (57)        -     (57)     (60)        -     (60)    (118)        -     (118) 
 
Return on 
 ordinary 
 activities 
 before tax      (57)     (70)    (127)     (60)    (262)    (322)    (118)    (249)     (367) 
Taxation on 
loss on 
ordinary 
activities          -        -        -        -        -        -        -        -         - 
 
Return on 
 ordinary 
 activities 
 after tax       (57)     (70)    (127)     (60)    (262)    (322)    (118)    (249)     (367) 
Earnings per 
 share - 
 basic and 
 diluted       (0.7p)   (0.8p)   (1.5p)   (0.7p)   (3.2p)   (3.9p)   (1.5p)   (3.0p)    (4.5p) 
 
 
 
   -- 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 only one class of business and derives its income from 
      investments made in shares and securities and from bank and money market 
      funds. 
 
 
   The Company has no recognised gains or losses other than the results for 
the period as set out above. Accordingly a Statement of Comprehensive 
Income is not required. 
 
 
 
 
                                                                       As at 30 June    As at 31 December 
                                              As at 30 June 2018            2017              2017 
                                               GBP'000       GBP'000  GBP'000  GBP'000  GBP'000  GBP'000 
 
Fixed asset investments*                                       5,431             5,575              5,564 
Current assets: 
Cash received for B shares not yet 
 allotted                                             1,648                 -                 - 
Cash at Bank                                              7                 -                 - 
Debtors                                                  10                 9                 7 
                                                      1,665                 9                 7 
Creditors: 
Amounts falling due within one year                    (63)              (72)              (67) 
Cash received for B shares not yet 
 allotted                                           (1,648)                 -                 - 
Cash at Bank                                              -             (112)             (160) 
Bank Loan                                             (200)                 -                 - 
                                                    (1,911)             (184)             (227) 
Net current assets                                             (246)             (175)              (220) 
 
Performance fee payable                                        (132)             (175)              (164) 
 
Net assets                                                     5,053             5,225              5,180 
 
Called up equity share capital                                 4,058             4,058              4,058 
Share premium                                                      -                 -                  - 
Special distributable reserve                                  3,397             3,397              3,397 
Capital redemption reserve                                        38                38                 38 
Capital reserve - gains/(losses) on 
 disposal                                                      (381)              (38)              (432) 
                         - holding 
                          gains/(losses)                       (113)             (398)                  9 
Revenue reserve                                              (1,946)           (1,832)            (1,890) 
Total equity shareholders' funds                               5,053             5,225              5,180 
Net asset value per share                                      62.3p             64.4p              63.8p 
*At fair value through profit and loss 
 
   Balance Sheet 
 
 
 
   Statement of Changes in Equity 
 
 
 
 
                          Special      Capital 
               Share   distributable  redemption  Capital reserve gains/  Capital reserve holding gains/  Revenue 
              Capital     reserve      reserve           (losses)                    (losses)             reserve   Total 
              GBP'000     GBP'000      GBP'000           GBP'000                     GBP'000              GBP'000  GBP'000 
As at 1 
 January 
 2017           4,058          3,397          38                   (121)                            (53)  (1,772)    5,547 
Revenue 
 return on 
 ordinary 
 activities 
 after tax          -              -           -                       -                               -     (60)     (60) 
Performance 
 fee 
 allocated 
 as capital 
 expenditure        -              -           -                      80                               -        -       80 
Current 
 period 
 gains on 
 disposal           -              -           -                      26                               -        -       26 
Current 
 period 
 losses on 
 fair value 
 of 
 investments        -              -           -                       -                           (368)        -    (368) 
Prior years' 
 unrealised 
 losses now 
 realised           -              -           -                    (23)                              23        -        - 
Balance as 
 at 30 June 
 2017           4,058          3,397          38                    (38)                           (398)  (1,832)    5,225 
As at 1 
 January 
 2017           4,058          3,397          38                   (121)                            (53)  (1,772)    5,547 
Revenue 
 return on 
 ordinary 
 activities 
 after tax          -              -           -                                                            (118)    (118) 
Performance 
 fee 
 allocated 
 as capital 
 expenditure        -              -           -                      91                               -        -       91 
Current 
 period 
 gains on 
 disposal           -              -           -                      19                               -        -       19 
Current 
 period 
 losses on 
 fair value 
 of 
 investments        -              -           -                       -                           (359)        -    (359) 
Prior years' 
 unrealised 
 losses now 
 realised           -              -           -                   (421)                             421        -        - 
Balance as 
 at 31 
 December 
 2017           4,058          3,397          38                   (432)                               9  (1,890)    5,180 
Revenue 
 return on 
 ordinary 
 activities 
 after tax          -              -           -                       -                               -     (57)     (57) 
Performance 
 fee 
 allocated 
 as capital 
 expenditure        -              -           -                      32                               -        -       32 
Current 
 period 
 gains on 
 disposal           -              -           -                       6                               -        -        6 
Current 
 period 
 losses on 
 fair value 
 of 
 investments        -              -           -                       -                           (108)        -    (108) 
Prior years' 
 unrealised 
 gains now 
 realised           -              -           -                      13                            (13)        -        - 
Balance as 
 at 30 June 
 2018           4,058          3,397          38                   (381)                           (112)  (1,947)    5,053 
 
 
   Statement of Cash Flows 
 
 
 
 
                     Six months to 30    Six months to 30       Year to 31 
                        June 2018           June 2017         December 2017 
                         GBP'000             GBP'000             GBP'000 
Cash flows from 
operating 
activities 
Return on ordinary 
 activities before 
 tax                             (127)               (322)               (367) 
Adjustments for: 
Increase in 
 debtors                           (3)                 (5)                 (3) 
Decrease in 
 creditors                        (36)                (63)                (79) 
Gain on disposal 
 of fixed asset 
 investments                       (6)                (26)                (19) 
Loss on valuation 
 of fixed asset 
 investments                       108                 368                 359 
Cash from 
 operations                       (64)                (48)               (109) 
Income taxes paid                    -                   -                   - 
Net cash used in 
 operating 
 activities                       (64)                (48)               (109) 
 
Cash flows from 
investing 
activities 
Purchase of fixed 
asset investments                    -                   -                   - 
Sale of fixed 
 asset 
 investments                        31                 121                 134 
Total cash flows 
 from investing 
 activities                         31                 121                 134 
 
Cash flows from 
financing 
activities 
Cash raised for B 
 shares not yet 
 allotted                        1,648                   -                   - 
Bank loan                          200                   -                   - 
Total cash flows 
 from financing 
 activities                      1,848                   -                   - 
 
Increase in cash 
 and cash 
 equivalents                     1,815                  73                  25 
 
Opening cash and 
 cash equivalents                (160)               (185)               (185) 
 
Closing cash and 
 cash equivalents                1,655               (112)               (160) 
 
 
 
   Notes to the Half-Yearly Report 
 
   1.             Basis of preparation 
 
   The unaudited half-yearly results which cover the six months to 30 June 
2018 have been prepared in accordance with the Financial Reporting 
Council's (FRC) Financial Reporting Standard 104 Interim Financial 
Reporting ('FRS 104') and the Statement of Recommended Practice (SORP) 
for Investment Companies re-issued by the Association of Investment 
Companies in November 2014. Details of the accounting policies and 
valuation methodologies are included within the Annual Report on Pages 
43-46. 
 
   2.             Publication of non-statutory accounts 
 
   The unaudited half-yearly results for the six months ended 30 June 2018 
do not constitute statutory accounts within the meaning of Section 415 
of the Companies Act 2006. The comparative figures for the year ended 31 
December 2017 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, part 16 of the Companies Act 2006, was 
unqualified. This half-yearly report has not been reviewed by the 
Company's auditor. 
 
   3.             Earnings per share 
 
   The earnings per share at 30 June 2018 are calculated on the basis of 
8,115,376 shares (31 December 2017 8,115,376 and 30 June 2017: 
8,115,376) 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 returns per share figures are relevant. 
 
   4.             Net asset value per share 
 
   The net asset value per share is based on net assets as at 30 June 2018 
divided by 8,115,376 (31 December 2017: 8,115,376 and 30 June 2017: 
8,115,376) shares in issue at that date. 
 
   5.             Principal risks and uncertainties 
 
   The Company's assets consist of equity and fixed 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 Venture Capital Trust, 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 31 December 2017. The Company's principal risks and uncertainties 
have not changed materially since the date of that report. 
 
   6.             Related party transactions 
 
   The Board of the Company acts as the investment manager of the Company 
through its Commercial Advisory Committee.  During the period under 
review, no remuneration was paid to the Board in their capacity as 
investment manager.  The Directors received remuneration for their roles 
as non-executive Directors to Hygea on the terms as set out in the 
Directors' Remuneration Report of the Company's Annual Report and 
Accounts for the year ended 31 December 2017. 
 
   The Commercial Advisory Committee is entitled to receive a performance 
incentive fee, of up to 20% of sums returned to shareholders by way of 
dividends and capital distributions of whatever nature, which in 
aggregate exceeds the sum of 80p per share (including dividends paid to 
date, i.e. 24.25p, but excluding any sums returned to shareholders from 
HMRC in the year of subscription). Full details are included in the 
Directors' Remuneration Report and in Note 5 of the 2017 Annual Report 
and Accounts, which can be viewed on the Company's website. 
 
   7.             Events after the Balance Sheet Date 
 
   As at 20 July 2018, subscriptions totalling GBP2.4 million have been 
received in relation to the Company's Offer for new B shares. No B 
shares have yet been allotted, as the Company needs to have raised a 
minimum of GBP3 million before it can allot any new B shares. 
 
   8.             Copies of this statement are available from the 
Registrar's office at Neville House, 18 Laurel Lane, Halesowen, B63 3DA, 
and on the company's website - www.hygeavct.com. 
 
   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: Hygea VCT plc via Globenewswire 
 
 
 
 

(END) Dow Jones Newswires

July 24, 2018 02:00 ET (06:00 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.

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