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OAP3 Octopus Apollo Vct Plc

47.10
0.00 (0.00%)
25 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Octopus Apollo Vct Plc LSE:OAP3 London Ordinary Share GB00B17B3479 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 47.10 45.60 48.60 47.10 47.10 47.10 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Investors, Nec 51.92M 34.54M 0.0462 10.19 352.35M

Octopus Apollo VCT Half-year Report

21/09/2018 5:14pm

UK Regulatory


 
TIDMOAP3 
 
   Octopus Apollo VCT Plc 
 
   Half-Yearly Results 
 
   21 September 2018 
 
   Octopus Apollo VCT plc, managed by Octopus Investments Limited, today 
announces the unaudited half-yearly results for the six months ended 31 
July 2018. 
 
   These results were approved by the Board of Directors on 21 September 
2018. 
 
   You may, in due course, view the Half-Yearly report in full at 
www.octopusinvestments.com. All other statutory information can also be 
found there. 
 
   Financial Headlines 
 
 
 
 
                                       Six months   Six months 
                                        to 31 July   to 31 July   Year to 31 
                                           2018         2017      January 2018 
Net assets (GBP'000s)                      122,252      155,341        130,377 
Return on ordinary activities after 
 tax (GBP'000s)                            (3,038)        1,799          3,699 
Net asset value per share ('NAV')             47.9         62.2           50.6 
Cumulative dividends paid since 
 launch (p per share)                         69.6         55.7           68.0 
NAV plus cumulative dividends paid 
 (p)                                         117.5        117.9          118.6 
Total return %*                              (2.2)          1.0            2.2 
Ordinary dividend paid in period (p)           1.6          1.7            3.3 
Special dividend paid in the period 
 (p)                                            --            -           10.7 
Ordinary dividend declared in the 
 period (p)                                    1.5          1.6            1.6 
 
 
   Total return is calculated as (movement in NAV + dividends paid in the 
period) divided by the NAV at the beginning of the period. 
 
   The interim dividend will be paid on 14 December 2018 to shareholders on 
the register at 23 November 2018. 
 
   Chairman's Statement 
 
   I am pleased to present the half-yearly report of Octopus Apollo VCT for 
the six months ended 31 July 2018. 
 
   During the period the majority of the portfolio performed broadly in 
line with expectations. However a small number of investments performed 
below expectations resulting in an overall loss on the portfolio of 
GBP3.2 million for the period. 
 
   The NAV Total Return including the 1.6p dividend paid in the period 
decreased by 2.2% during the six months. Despite the current period 
performance the Company has sufficient reserves to maintain its target 
dividend policy. In keeping with this policy, the Board has declared an 
interim dividend of 1.5p which will be paid to shareholders in December. 
 
   The Company invested over GBP9 million into new companies in the period, 
as well as investing follow-on funding into four existing investments. 
The investment team has been expanded during the period, which has 
helped to further increase the pipeline of new investment opportunities 
and assist with the execution of new investments. Although the overall 
performance in the period has been disappointing and political and 
economic uncertainty resulting from Brexit negotiations still persists, 
I remain cautiously optimistic for the future. 
 
   Murray Steele 
 
   Chairman 
 
   21 September 2018 
 
   Interim Management Report 
 
   Performance 
 
   In the six months under review the Total Return has decreased 2.2%. This 
disappointing performance is mainly attributable to adverse movements in 
fair value of four assets in the period, offset by a continuation of the 
strong interest yield from loans made to portfolio companies, gains on 
investment exits, and positive fair value movements across the rest of 
the portfolio. 
 
   Portfolio Activity 
 
   In the period under review the value of the portfolio has decreased by 
GBP3.2 million, excluding additions and disposals. This decrease is 
driven by Eve Sleep plc (GBP1.3 million valuation decrease), Coupra 
Limited (trading as ISG Technology) (GBP1.1 million valuation decrease), 
Valloire Power Limited (GBP0.6 million valuation decrease), and Red Poll 
Power Limited (GBP0.4 million valuation decrease), as a result of 
specific trading performance issues within each business during the 
period, with Eve Sleep plc's share price falling 84%. 
 
   During the period GBP10.2 million was invested, GBP9.3 million of which 
was into the following new investments: 
 
   --     Natterbox Limited (GBP5.0 million) -- a B2B cloud-based telephony 
provider, whose offering seamlessly integrates with customer 
relationship management ("CRM") software; 
 
   --     City Pantry Ltd (GBP2.2 million) -- an online marketplace 
facilitating the provision of high-quality food catering from local 
specialist independent food vendors to corporate customers; and 
 
   --     Ubisecure Limited (GBP2.1 million) -- a customer identity and 
access management software provider to enable customers to effectively 
manage their end-users' digital identities and automate authentication 
and encryption. 
 
   The remaining GBP0.9 million invested was to provide growth funding to 
four existing portfolio companies, including GBP0.4 million invested 
into Oxifree to continue to support its growth plans. 
 
   In April we saw the successful disposal of Tailsco Limited, an 
investment the Company acquired in the merger with Eclipse VCT plc, to 
Nestle Purina Petcare. This exit resulted in proceeds of GBP1.6 million 
(including a potential future retention of GBP0.3 million), a gain of 
GBP1.2 million on the merger acquisition price.  We also sold our 
remaining investment in Tanfield plc, as well as part of our holding in 
Timeout plc, making a small loss on both. 
 
   Transactions with Manager 
 
   Details of amounts paid to the Manager are disclosed in note 7 to the 
financial statements. 
 
   Share Buybacks 
 
   The Company has continued to buy back shares as required. In the six 
months to July 2018, the Company bought back 3,567,465 shares for total 
consideration of GBP1.7 million. 
 
   Share Issues and Fundraising 
 
   Following the successful exit of a number of investments in the last 18 
months, the Company has sufficient cash to meet new investment 
opportunities and is not currently open to new shareholders. 
 
   Dividend and Dividend Policy 
 
   It is the Board's policy to maintain a regular dividend flow where 
possible in order to take advantage of the tax free distributions a VCT 
is able to provide. 
 
   The Board has declared an interim dividend of 1.5p per share in respect 
of the period ended 31 July 2018. The dividend will be payable on 14 
December 2018 to shareholders on the register at 23 November 2018. 
 
   During the six months to July 2018 1,453,722 shares were issued in lieu 
of cash dividends to those shareholders participating in the Dividend 
Reinvestment Scheme ("DRIS"). This remains an attractive scheme for 
investors, and the dividend referred to above will be eligible for the 
DRIS. 
 
   VCT Qualifying Status 
 
   PricewaterhouseCoopers LLP provides the Board and Investment Manager 
with advice concerning ongoing compliance with Her Majesty's Revenue & 
Customs ('HMRC') rules and regulations concerning VCTs. The Board has 
been advised that the Company is in compliance with the conditions set 
by HMRC for maintaining approval as a VCT. 
 
   A key requirement is to ensure that at least 70% of the assets of the 
fund are in VCT qualifying investments. As at 31 July 2018, 87% of the 
portfolio, as measured by HMRC rules, was invested in VCT qualifying 
investments. 
 
   The Autumn Budget announced in November 2017 introduced a few further 
changes to VCT legislation. The most notable of these is that from 6 
April 2019, the proportion of the VCT's HMRC value that must be invested 
in qualifying investments will increase from 70% to 80%. Additionally, 
from 6 April 2018 VCTs will have to invest 30% of funds raised into 
qualifying investments within 12 months. 
 
   Typically the structure of the Company's investments has been weighted 
more heavily towards loan based instruments as opposed to equity, with 
such investments providing fixed returns and payments are generally 
ranked above most other creditors, allowing for future visibility and 
security. 
 
   The recent changes to the VCT legislation are such that future new 
investments are likely to be more heavily weighted towards equity, and 
less towards loan instruments.  These new VCT rules will not affect the 
majority of the existing investment portfolio but will impact future new 
investments. 
 
   Principal Risks and Uncertainties 
 
   The principal risks and uncertainties are set out in note 6 to the 
financial statements. 
 
   Summary and Future Prospects 
 
   The political and economic environment continues to be uncertain as a 
result of exit negotiations with the European Union.  However to date 
there has been little, if any, negative economic impact that would 
affect the portfolio or the investment team's ability to continue to 
invest. While the overall portfolio has underperformed during the period, 
the newly expanded investment team has made several new investments and 
continues to have an active pipeline of new investment opportunities, 
and we believe we can continue to find suitable VCT qualifying 
investments. 
 
   Grant Paul-Florence 
 
   Octopus Investments Limited 
 
   21 September 2018 
 
   Investment Portfolio 
 
 
 
 
                                                        Movement 
                                            Investment   in fair    Fair                           % equity 
                                               cost       value     value    Movement   % equity      held 
                                               as at      to 31     as at     in fair     held       by all 
                                              31 July     July     31 July     value       by        funds 
                                               2018       2018      2018     in period   Apollo     managed 
                         Sector               GBP'000    GBP'000   GBP'000    GBP'000      VCT     by Octopus 
Fixed asset investments 
Healthcare and 
 Services Technology     Healthcare 
 Limited                  & Education            7,186       716     7,902         143        10           10 
                         Technology 
Natterbox Limited         & Communication        4,990       206     5,196         206         9            9 
Anglo European           Manufacturing 
 Group Limited            & Engineering          5,000      (23)     4,977         167      26.7         26.7 
Countrywide Healthcare   Healthcare 
 Services Limited         & Education            2,675     2,229     4,904          39      20.7         20.7 
                         Information 
Coupra Limited            Technology             5,000   (1,013)     3,987     (1,098)       9.8          9.8 
                         Healthcare 
Dyscova Limited           & Education            4,700   (1,626)     3,074          --      62.2         62.2 
Kabardin Limited         Energy                  2,450        --     2,450          --        49          100 
                         Travel & 
City Pantry Ltd           Leisure                2,200       204     2,404         204         8            8 
Winnipeg Heat            Anaerobic 
 Limited                  Digestion              3,719   (1,457)     2,262         (1)        49          100 
                         Technology 
Ubisecure Limited         & Communication        2,125        64     2,189          64        10           10 
Other(*)                 Various                42,096   (4,363)    37,733     (2,960) 
Total fixed asset 
 investments                                    82,141   (5,063)    77,078     (3,236) 
 
Current asset 
 investments 
Octopus Portfolio Manager -- Cash               19,188        73    19,261          36 
Octopus Portfolio Manager -- Cash Plus          14,410       194    14,604           1 
Octopus Portfolio Manager -- Defensive 
 Capital Growth                                  7,396       240     7,636           1 
Total current 
 asset investments                              40,994       507    41,501          38 
Total fixed and current asset investments                          118,579 
Cash at bank                                                         2,960 
Debtors less creditors                                                 713 
Total net assets                                                   122,252 
 
 
   *Comprises 41 other investments: Acquire Your Business Limited, Angelico 
Solar Limited, Artesian Solutions Limited, Augean plc, Barrecore Limited, 
Behaviometrics AB, Bramante Solar Limited, British Country Inns plc, 
Canaletto Solar Limited, Cello Group plc, CurrencyFair Limited, Ecrebo 
Limited, EKF Diagnostics Holdings plc, Ergomed plc, Eve Sleep plc, 
Hasgrove Limited, Leonardo Solar Limited, Luther Pendragon Limited, 
Mi-Pay Group plc, MIRACL Limited, Modigliani Solar Limited, Nektan plc, 
Origami Energy Limited, Oxifree Group Holding Limited, Pirlo Solar 
Limited, Plastics Capital plc, Red Poll Power Limited, Secret Escapes 
Limited, Segura Systems Limited, Sourceable Limited (Swoon Editions), 
Spiralite Holdings Limited, Superior Heat Limited, Tanganyika Heat 
Limited, Time out Group plc, Tintoretto Solar Limited, Tiziano Solar 
Limited, Trafi Limited, Valloire Power Limited, Vertu Motors plc, Yu 
Group plc, Zynstra Limited. 
 
   Directors' Responsibilities Statement 
 
   We confirm that to the best of our knowledge: 
 
   --     the half-yearly financial statements have been prepared in 
accordance with the Financial Reporting Standard 104 "Interim Financial 
Reporting" issued by the Financial Reporting Council; 
 
   --     the half-yearly financial statements give a true and fair view of 
the assets, liabilities, financial position, and profit or loss of the 
Company; 
 
   --     the half-yearly report includes a fair review of the information 
required by the Financial Conduct Authority's Disclosure and 
Transparency Rules, being: 
 
   --     an indication of the important events that have occurred during 
the first six months of the financial year and their impact on the 
condensed set of financial statements; 
 
   --     a description of the principal risks and uncertainties for the 
remaining six months of the year; and 
 
   --     a description of related party transactions that have taken place 
in the first six months of the current financial year, that may have 
materially affected the financial position or performance of the Company 
during that period and any changes in the related party transactions 
described in the last annual report that could do so. 
 
   On behalf of the Board 
 
   Murray Steele 
 
   Chairman 
 
   21 September 2018 
 
   Income Statement 
 
 
 
 
                                   Unaudited                     Unaudited            Audited 
                                 Six months to                 Six months to          Year to 31 January 
                                  31 July 2018                  31 July 2017           2018 
                          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                    --       889       889        --     3,701     3,701        --     4,186     4,186 
Loss on disposal 
 of current asset 
 investments                     -       (6)       (6)         _         _         _         _         _         _ 
Change in fair 
 value of fixed 
 asset investments              --   (3,236)   (3,236)        --   (1,274)   (1,274)        --     1,063     1,063 
Change in fair 
 value of current 
 asset investments              --        38        38        --       190       190        --       469       469 
Investment income            1,638        --     1,638     2,061        --     2,061     3,627               3,627 
Investment management 
 fees                        (310)     (929)   (1,239)     (341)   (1,406)   (1,747)     (724)   (2,858)   (3,582) 
Other expenses             (1,122)        --   (1,122)   (1,136)        --   (1,136)   (2,068)        --   (2,068) 
FX translation                  --        --        --        --         4         4        --         4         4 
Return on ordinary 
 activities before 
 tax                           206   (3,244)   (3,038)       584     1,215     1,799       835     2,864     3,699 
Taxation on return 
 on ordinary activities         --        --        --        --        --        --        --        --        -- 
Return on ordinary 
 activities after 
 tax                           206   (3,244)   (3,038)       584     1,215     1,799       835     2,864     3,699 
Earnings per share 
 -- basic and diluted         0.1p    (1.3)p    (1.2)p      0.2p      0.5p      0.7p      0.3p      1.2p      1.5p 
 
 
   -- 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 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 those disclosed 
      in the income statement. 
 
   -- The accompanying notes are an integral part of the half-yearly report. 
 
 
   Balance Sheet 
 
 
 
 
                                Unaudited         Unaudited      Audited 
                               As at 31 July       As at 31       As at 31 
                                   2018            July 2017      January 2018 
                             GBP'000  GBP'000  GBP'000  GBP'000  GBP'000  GBP'000 
Fixed asset investments                77,078            78,386            71,326 
Current assets: 
Investments                   41,501            70,190            53,469 
Debtors                        2,307             2,245             2,074 
Cash at bank                   2,960             6,067             5,455 
                              46,768            78,502            60,998 
Creditors: amounts falling 
 due within one year         (1,594)           (1,547)           (1,947) 
Net current assets                     45,174            76,955            59,051 
Net assets                            122,252           155,341           130,377 
 
Share capital                          25,537            25,138            25,748 
Share premium                          52,729            48,308            52,162 
Special distributable 
 reserve                               34,690            71,149            40,489 
Capital redemption reserve              3,482             2,958             3,125 
Capital reserve realised               10,164             7,714             9,445 
Capital reserve unrealised            (4,556)             (520)             (602) 
Revenue reserve                           206               584                -- 
Translation reserve                         -                10                10 
Total equity shareholders' 
 funds                                122,252           155,341           130,377 
Net Asset Value per share               47.9p             62.2p             50.6p 
 
 
   The statements were approved by the Directors and authorised for issue 
on 21 September 2018 and are signed on their behalf by: 
 
   Murray Steele 
 
   Chairman 
 
   Company Number: 05840377 
 
   Statement of Changes in Equity 
 
 
 
 
                                               Special        Capital     Capital     Capital 
                         Share     Share     distributable   Redemption   reserve     reserve    Revenue   Translation 
                         Capital   Premium     reserves       Reserve     realised   unrealised   reserve    reserve     Total 
                         GBP'000   GBP'000      GBP'000       GBP'000     GBP'000     GBP'000     GBP'000    GBP'000     GBP'000 
Six months to 31 
 July 2018 
As at 1 February 
 2018                     25,748    52,162          40,489        3,125      9,445        (602)        --           10   130,377 
Comprehensive 
 income for the 
 period: 
Management fee 
 allocated as 
 capital expenditure          --        --              --           --      (929)           --        --           --     (929) 
Current period 
 gains on disposal            --        --              --           --        883           --        --           --       883 
Current period 
 losses on fair 
 value of investments         --        --              --           --         --      (3,199)        --           --   (3,199) 
Profit on ordinary 
 activities after 
 tax                          --        --              --           --         --           --       206           --       206 
Total comprehensive 
 income for the 
 period                       --        --              --           --       (46)      (3,199)       206           --   (3,039) 
Contributions 
 by and distributions 
 to owners: 
Repurchase and 
 cancellation 
 of own shares             (357)        --         (1,706)          357         --           --        --           --   (1,706) 
Issue of shares              146       567              --           --         --           --        --           --       713 
Dividends paid                --        --         (4,093)           --         --           --        --           --   (4,093) 
Total contributions 
 by and distributions 
 to owners                 (211)       567         (5,799)          357         --           --        --           --   (5,086) 
Other movements: 
Prior period 
 holding gains/losses 
 now realised                 --        --              --           --        765        (755)        --         (10)        -- 
Total other 
 movements                    --        --              --           --        765        (755)        --         (10)        -- 
As at 31 July 
 2018                     25,537    52,729          34,690        3,482     10,164      (4,556)       206           --   122,252 
 
                                                   Special      Capital    Capital      Capital 
                           Share     Share   distributable   Redemption    reserve      reserve   Revenue  Translation 
                         Capital   Premium        reserves      Reserve   realised   unrealised   reserve      reserve     Total 
                         GBP'000   GBP'000         GBP'000      GBP'000    GBP'000      GBP'000   GBP'000      GBP'000   GBP'000 
Six months to 31 
 July 2017 
As at 1 February 
 2017                     22,603    34,231          76,144        2,832    (1,537)        7,520         -            6   141,799 
Comprehensive 
 income for the 
 period: 
Management fee 
 allocated as 
 capital expenditure          --        --              --           --    (1,406)           --        --           --   (1,406) 
Current period 
 gains on disposal            --        --              --           --      3,701           --        --           --     3,701 
Current period 
 losses on fair 
 value of investments         --        --              --           --         --      (1,084)        --           --   (1,084) 
Current period 
 currency gains               --        --              --           --         --           --        --            4         4 
Profit on ordinary 
 activities after 
 tax                          --        --              --           --         --           --       584           --       584 
Total comprehensive 
 income for the 
 period                       --        --              --           --      2,295      (1,084)       584            4     1,799 
Contributions 
 by and distributions 
 to owners: 
Repurchase and 
 cancellation 
 of own shares             (126)        --           (754)          126         --           --        --           --     (754) 
Issue of shares            2,661    14,077              --           --         --           --        --           --    16,738 
Dividends paid                --        --         (4,241)           --         --           --        --           --   (4,241) 
Total contributions 
 by and distributions 
 to owners                 2,535    14,077         (4,995)          126         --           --        --           --    11,743 
Other movements: 
Prior period 
 holding gains/losses 
 now realised                 --        --              --           --      6,956      (6,956)        --           --        -- 
Total other 
 movements                    --        --              --           --      6,956      (6,956)        --           --        -- 
As at 31 July 
 2017                     25,138    48,308          71,149        2,958      7,714        (520)       584           10   155,341 
 
 
 
 
 
 
                                               Special        Capital     Capital     Capital 
                         Share     Share     distributable   Redemption   reserve     reserve    Revenue   Translation 
                         Capital   Premium     reserves       Reserve     realised   unrealised   reserve    reserve     Total 
                         GBP'000   GBP'000      GBP'000       GBP'000     GBP'000     GBP'000     GBP'000    GBP'000     GBP'000 
Year to 31 January 
 2018 
As at 1 February 
 2017                     22,603    34,231          76,144        2,832    (1,537)        7,520         -            6   141,799 
Comprehensive 
 income for the 
 year: 
Management fee 
 allocated as 
 capital expenditure          --        --              --           --    (2,858)           --        --           --   (2,858) 
Current year 
 gains on disposal            --        --              --           --      4,186           --        --           --     4,186 
Current year 
 gains on fair 
 value of investments         --        --              --           --         --        1,532        --           --     1,532 
Current year 
 currency gains               --        --              --           --         --           --        --            4         4 
Profit on ordinary 
 activities after 
 tax                          --        --              --           --         --           --       835           --       835 
Total comprehensive 
 income for the 
 year                         --        --              --           --      1,328        1,532       835            4     3,699 
Contributions 
 by and distributions 
 to owners: 
Repurchase and 
 cancellation 
 of own shares             (293)        --         (1,639)          293         --           --        --           --   (1,639) 
Issue of shares            3,594    17,931              --           --         --           --        --           --    21,525 
Dividends paid                --        --        (34,172)           --         --           --     (835)           --  (35,007) 
Total contributions 
 by and distributions 
 to owners                 3,301    17,931        (35,811)          293         --           --     (835)           --  (15,121) 
Other movements: 
Prior year holding 
 gains/losses 
 now realised                 --        --              --           --      9,654      (9,654)        --           --        -- 
Cancellation 
 of Deferred 
 Shares -- D 
 shares                    (156)        --             156           --         --           --        --           --        -- 
Total other 
 movements                 (156)         -             156           --      9,654      (9,654)        --           --        -- 
As at 31 January 
 2018                     25,748    52,162          40,489        3,125      9,445        (602)        --           10   130,377 
 
 
   Cash Flow Statement 
 
 
 
 
                                    Unaudited      Unaudited      Audited 
                                    Six months     Six months     Year to 
                                        to             to        31 January 
                                   31 July 2018   31 July 2017      2018 
                                     GBP'000        GBP'000       GBP'000 
Cash flows from operating 
 activities: 
(Loss)/Return on ordinary 
 activities after tax                   (3,038)          1,799        3,699 
Adjustments for: 
(Increase)/decrease in 
 debtors                                  (233)          1,832        2,003 
Decrease in creditors                     (353)        (2,844)      (2,444) 
Gain on disposal of fixed 
 assets                                   (889)        (3,701)      (4,186) 
Loss/(Gain) on revaluation 
 of fixed asset investments               3,236          1,274      (1,063) 
Loss on disposal of current 
 assets                                       6             --           -- 
Gain on revaluation of 
 current asset investments                 (38)          (190)        (469) 
Cash from operations                    (1,309)        (1,830)      (2,460) 
 
Cash flows from investing 
 activities: 
Purchase of fixed asset 
 investments                           (10,176)        (1,348)      (2,051) 
Purchase of current asset 
 investments                                 --       (72,000)     (53,000) 
Sale of fixed asset investments           2,076         38,273       48,858 
Sale of current asset 
 investments                             12,000          2,000           -- 
Net cash flows from investing 
 activities                               3,900       (33,075)      (6,193) 
 
Cash flows from financing 
 activities: 
Purchase of own shares                  (1,706)          (754)      (1,639) 
Share issues                                 --         16,738       21,525 
Dividends Paid                          (3,380)        (4,241)     (35,007) 
Net cash flows from financing 
 activities                             (5,086)         11,743     (15,121) 
Decrease in cash and 
 cash equivalents                       (2,495)       (23,162)     (23,774) 
Opening cash and cash 
 equivalents                              5,455         29,229       29,229 
 
Closing cash and cash 
 equivalents                              2,960          6,067        5,455 
 
 
   Notes to the Half-Yearly Report 
 
   1.   Basis of preparation 
 
   The unaudited half-yearly results which cover the six months to 31 July 
2018 have been prepared in accordance with the Financial Reporting 
Council's (FRC) Financial Reporting Standard 104 "Interim Financial 
Reporting" (March 2018) and the Statement of Recommended Practice for 
Investment Companies, re-issued by the Association of Investment 
Companies in February 2018. 
 
   2.   Publication of non-statutory accounts 
 
   The unaudited half-yearly results for the six months ended 31 July 2018 
do not constitute Statutory Accounts within the meaning of s.415 of the 
Companies Act 2006. The comparative figures for the year ended 31 
January 2018 have been extracted from the audited financial statements 
for that year, which have been delivered to the Registrar of Companies. 
The independent auditor's report on those financial statements, in 
accordance with chapter 3 of part 16 of the Companies Act 2006, was 
unqualified. This half-yearly report has not been reviewed by the 
Company's auditor. 
 
   3.   Earnings per share 
 
   The earnings per share is based on 256,759,529 shares, being the 
weighted average number of shares in issue during the period (31 January 
2018: 248,105,555; 31 July 2017: 243,295,650). 
 
   There are no potentially dilutive capital instruments in issue and, 
therefore, no diluted earnings per share figures are relevant. The basic 
and diluted earnings per share are therefore identical. 
 
   4.   Net asset value per share 
 
 
 
 
                     31 July      31 July    31 January 
                       2018         2017         2018 
Net Assets (GBP)   122,252,000  155,341,000  130,377,000 
Shares in Issue    255,369,857  249,818,756  257,483,600 
Net Asset Value 
 per share (p)            47.9         62.2         50.6 
 
 
   5.   Dividends 
 
   A final dividend, for the year ended 31 January 2018, of 1.6p per share 
was paid on 27 July 2018 to shareholders on the register on 29 June 
2018. 
 
   The interim dividend of 1.5p per share for the six months ending 31 July 
2018 will be paid on 14 December 2018, to those shareholders on the 
register on 23 November 2018. 
 
   6.   Principal Risks and Uncertainties 
 
   The principal risks and uncertainties faced by the Company are described 
in detail within the strategic report in the Company's annual report for 
the year ended 31 January 2018. 
 
   The principal risks include loss of VCT status, investment risk, 
valuation risk, financial risk, internal control risk and price risk. 
 
   7.   Related Party Transactions 
 
   Octopus acts as the investment manager of the Company. Under the 
management agreement, Octopus receives a fee of 2.0% per annum of the 
net assets of the Company for the investment management services. 
 
   The Company has incurred management fees of GBP1,239,000 during the 
period to 31 July 2018 (31 July 2017: GBP1,494,000; 31 January 2018: 
GBP2,895,000). 
 
   No performance fee has been incurred during the period to 31 July 2018 
(31 July 2017: GBP253,000; 31 January 2018: GBP687,000). 
 
   Octopus also provides administration and company secretarial services to 
the Company. Octopus receives a fee of 0.3% per annum of net assets of 
the Company for administration services and GBP20,000 per annum for 
company secretarial services. 
 
   The Company currently holds GBP41.5 million of investments in Octopus 
managed funds, being the Octopus Portfolio Manager funds. To ensure the 
Company is not double charged management fees on these products, the 
Company receives a reduction in the management fee as a percentage of 
the value of these investments. 
 
   8.   Other Information 
 
   A version of this statement will be made available to all shareholders. 
Copies will also be available from the registered office of the Company 
at 33 Holborn, London, EC1N 2HT, and will also be available to view on 
the Investment Manager's website at 
 
   www.octopusinvestments.com. 
 
 
 
 

(END) Dow Jones Newswires

September 21, 2018 12:13 ET (16:13 GMT)

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

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