Buy
Sell
Share Name Share Symbol Market Type Share ISIN Share Description
Octopus Apollo Vct Plc LSE:OAP3 London Ordinary Share GB00B17B3479 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 42.80 42.00 43.60 42.80 42.80 42.80 0.00 00:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 3.3 0.7 0.3 142.7 132

Octopus Apollo VCT Half-year Report

18/09/2020 10:06am

UK Regulatory (RNS & others)


 
TIDMOAP3 
 
   Octopus Apollo VCT Plc 
 
   Half-Yearly Results 
 
   18 September 2020 
 
   Octopus Apollo VCT plc, managed by Octopus Investments Limited, today 
announces its unaudited half-yearly results for the six months ended 31 
July 2020. 
 
   These results were approved by the Board of Directors on 18 September 
2020. 
 
   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 to  Six months to      Year to 
                                 31 July 2020   31 July 2019   31 January 2020 
Net assets (GBP'000s)                 141,330        122,093           132,373 
Return on ordinary activities 
 after tax (GBP'000s)                   1,891          1,433             4,144 
Net asset value per share 
 ('NAV')                                 46.1           46.2              45.7 
Cumulative dividends paid 
 since launch (p per share)              74.1           72.6              74.1 
NAV plus cumulative dividends 
 paid (p)                               120.2          118.8             119.8 
Total return %*                           0.9            1.3               3.4 
Ordinary dividend paid in 
 period (p) **                              -            1.5               3.0 
Ordinary dividend declared in 
 the period (p) ***                       1.2            1.5               1.1 
 
 
   (*) Total return is calculated as (movement in NAV + dividends paid in 
the period) divided by the NAV at the beginning of the period. 
 
   (**) A dividend of 1.1p was paid on 7 September 2020. See note 8 for 
information on Post Balance Sheet Events. 
 
   (***) The interim dividend will be paid on 15 January 2021 to 
shareholders on the register at 29 December 2020. 
 
   Chairman's Statement 
 
   I am pleased to present the half-yearly report of Octopus Apollo VCT for 
the six months ended 31 July 2020. 
 
   The Total Return increased by 0.9% during the six months. In keeping 
with the regular dividend policy, the Board has declared an interim 
dividend of 1.2p which will be paid to shareholders on 7th January 2021. 
 
   The six months to 31 July 2020 have been a volatile and uncertain period 
for the economy and for businesses operating within this environment. 
During this period, the Board has kept the impact of the pandemic on the 
Company closely under review and has incorporated the effects and 
response to coronavirus as part of our regular Board agenda. On 2 April 
2020, due to the coronavirus pandemic, we reviewed the portfolio since 
the year ended 31 January 2020 and this led to us announce a reduction 
in the NAV per share from 45.7p to 42.9p. Since then, the coronavirus 
pandemic along with the lockdown continued to impose great uncertainty 
for UK companies. Although there have been a range of impacts on the 
portfolio companies over the last months, the overall portfolio has 
shown great resilience as a result of the low exposure to sectors that 
have been severely impacted (e.g. leisure and travel) and a strong focus 
on technology companies. 
 
   In the six month period, the Company invested GBP2.7 million in 
follow-on funding rounds into two existing investments, with one further 
investment made after the end of the period which will be reflected in 
the full year report. The overall performance in the period ultimately 
delivered modest growth, demonstrating the robustness of the portfolio 
against a backdrop of unprecedented uncertainty. Although the climate 
remains uncertain, I remain optimistic for the future given the 
composition of the portfolio and recent performance. 
 
   Murray Steele 
 
   Chairman 
 
   18 September 2020 
 
   Interim Management Report 
 
   Performance 
 
   In the six months under review the NAV Total Return has increased by 
0.9%. This performance is mainly attributable to positive fair value 
movements in particular in the newer growth capital part of the 
portfolio, offset by adverse movements in the fair value of a number of 
legacy assets in the portfolio, in particular energy-generating assets. 
 
   Portfolio Activity 
 
   In the period under review the value of the portfolio has increased by 
GBP3.3 million, excluding additions. This increase is mainly driven by 
Veeqo Limited (GBP2.2 million valuation increase, N2JB Limited (trading 
as Natterbox) (GBP2.2 million valuation increase) and Fiscaltec Group 
Limited (GBP1.4 million valuation increase) partially offset by 
valuation decreases of GBP2.8 million on the Reserve Power portfolio 
(Kabardin Limited, Valloire Limited and Red Poll Power Limited) and 
GBP3.5 million for Rotolight Group Limited. There were other smaller 
valuation adjustments across the portfolio which in aggregate 
contributed to an overall increase in the value of the portfolio. 
 
   During the period GBP2.7 million was invested into the following 
follow-on investments: 
 
   --    N2JB Limited (trading as Natterbox) GBP2.5 million -- a 
London-based provider of business to business cloud telephony services 
that are uniquely integrated into Customer Resource Management ("CRM") 
software platforms; and 
 
   --    Trafi Limited GBP0.2 million -- a provider of 
Mobility-as-a-Service to residents acting as an alternative to private 
hire vehicles. 
 
   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 2020, the Company bought back 4,637,730 Ordinary shares 
for total consideration of GBP1.9 million. 
 
   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 1.2p per Ordinary share in 
respect of the period ended 31 July 2020. The dividend will be payable 
on 15 January 2021 to Ordinary shareholders on the register at 29 
December 2020. 
 
   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 80% of the assets of the 
fund are in VCT qualifying investments. As at 31 July 2020, 90.3% of the 
portfolio, as measured by HMRC rules, was invested in VCT qualifying 
investments. 
 
   The Finance Act 2018 made a number of changes to VCT rules on qualifying 
holdings, with the main change being VCTs are now required to hold at 
least 80% of its investments in VCT qualifying holdings, up from 70%. 
This applies to accounting periods starting on or after 6 April 2019, so 
for Apollo these rules apply from 1st February 2020. 
 
   Principal Risks and Uncertainties 
 
   The principal risks and uncertainties are described in detail within the 
strategic report in the Company's annual report for the year ended 31 
January 2020. 
 
   Summary and Future Prospects 
 
   The political and economic environment continues to be very uncertain in 
the UK primarily as a result of the ongoing coronavirus pandemic. To 
date the impact on the portfolio has been limited as a result of the 
Investment Manager's defensive approach to structuring investments and 
the focus on technology investments which should be more resilient to 
the lockdown measures which have been imposed. The investment team 
remains highly vigilant in carefully monitoring the situation and any 
potential impact, directly or indirectly, on the portfolio to ensure the 
safety and robustness of the underlying assets and, indeed, their 
employees. 
 
   The sub-portfolio of investments completed after the significant change 
in VCT rules in 2017 is performing strongly and now represents the 
largest component and driver of performance in the Company, at 52.8% of 
the total invested portfolio, which provides further optimism for the 
future. The investment team has primarily made follow-on investments 
during this period, but we have developed a strong pipeline of new 
VCT-qualifying investment opportunities that we anticipate being able to 
complete in the coming months. 
 
   Richard Court 
 
   Octopus Investments Limited 
 
   18 September 2020 
 
   Investment Portfolio 
 
 
 
 
                                                                                                                                                % equity 
                                                                                            Fair                                                held by 
                                 Investment                                                 value                                                 all 
                                 cost as at                                                 as at                                     % equity   funds 
                                  31 July                                                  31 July                                    held by   managed 
Top 10                              2020     Total movement in fair value to 31 July 2020   2020    Movement in fair value in period   Apollo      by 
Investments      Sector           GBP'000                       GBP'000                    GBP'000               GBP'000                VCT     Octopus 
---------------  --------------  ----------  --------------------------------------------  -------  --------------------------------  --------  -------- 
Fixed asset 
investments 
Natterbox (N2JB 
 Limited)        Technology          10,490                                         6,451   16,941                             2,155       9.0       9.0 
Healthcare and 
 Services 
 Technology 
 Limited         Healthcare           7,186                                         2,355    9,541                             1,045      10.0      10.0 
Ubisecure 
 Holdings 
 Limited         Technology           4,950                                         3,231    8,181                             1,055      30.0      30.0 
Simply Cook      Consumer 
 Limited          Products            6,750                                           767    7,517                               767      23.5      23.5 
Countrywide 
 Healthcare 
 Services 
 Holdings 
 Limited         Healthcare           2,675                                         3,871    6,546                             1,189      20.7      20.7 
Anglo European 
 Group Limited   Manufacturing        5,000                                         1,364    6,364                             (588)      26.7      26.7 
Veeqo Limited    Technology           3,300                                         2,576    5,876                             2,181      19.7      19.7 
Fuse Limited     Technology           5,000                                           387    5,387                               219       0.0       0.0 
One team Logic 
 Limited         Technology           3,200                                         1,314    4,514                             1,136      15.5      15.5 
Fiscaltec 
 Limited         Technology           3,000                                         1,500    4,500                             1,404      13.5      13.5 
Other(*)         Various             52,623                                      (17,500)   35,123                           (7,256) 
                                 ----------  --------------------------------------------  -------  --------------------------------  --------  -------- 
Total investments                   104,174                                         6,316  110,490                             3,307 
Current asset investments                                                                   25,659 
Cash at bank                                                                                 3,656 
Debtors less creditors                                                                       1,525 
                                                                                           ------- 
Total net assets                                                                           141,330 
                                                                                           ------- 
 
 
   * Comprises 40 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, Dyscova Limited, Ecrebo Limited, EKF Diagnostics Holdings plc, 
Ergomed plc, Eve Sleep plc, Hasgrove Limited, Kabardin Limited, Leonardo 
Solar Limited, Luther Pendragon Limited, Mi-Pay Group plc, Modigliani 
Solar Limited, Nektan plc, Origami Energy Limited, Oxifree Group Holding 
Limited, Pirlo Solar Limited, Red Poll Power Limited, Renalytix plc, 
Rotolight Group Limited, Secret Escapes Limited, Segura Systems Limited, 
Sourceable Limited (Swoon Editions), Superior Heat Limited, Tintoretto 
Solar Limited, Tiziano Solar Limited, Trafi Limited, Triumph Holdings 
Limited, Valloire Power Limited, Vertu Motors plc, Winnipeg Heat 
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 
 
   18 September 2020 
 
   Income Statement 
 
 
 
 
                        Unaudited                     Unaudited                      Audited 
                Six months to 31 July 2020    Six months to 31 July 2019     Year to 31 January 2020 
               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 
-------------  --------  --------  --------  --------  --------  --------  --------  --------  -------- 
Realised gain 
 on disposal 
 of fixed 
 asset 
 investments         --        --        --        --         6         6        --     4,872     4,872 
Realised gain 
 on disposal 
 of current 
 asset 
 investments         --        --        --         _        46        46         _        46        46 
Change in 
 fair value 
 of fixed 
 asset 
 investments         --     3,306     3,306        --     1,849     1,849        --     1,641     1,641 
Change in 
 fair value 
 of current 
 asset 
 investments         --         9         9        --       179       179        --       261       261 
Investment 
 income           1,580        --     1,580     1,573        --     1,573     3,309        --     3,309 
Investment 
 management 
 fees (see 
 note 7)          (313)   (1,307)   (1,620)     (266)   (1,932)   (2,198)     (559)   (3,411)   (3,970) 
Other 
 expenses       (1,384)        --   (1,384)      (22)        --      (22)   (2,015)        --   (2,015) 
Profit before 
 tax              (117)     2,008     1,891     1,285       148     1,433       735     3,409     4,144 
Tax                  --        --        --        --        --        --        --        --        -- 
-------------  --------  --------  --------  --------  --------  --------  --------  --------  -------- 
Profit after 
 tax              (117)     2,008     1,891     1,285       148     1,433       735     3,409     4,144 
-------------  --------  --------  --------  --------  --------  --------  --------  --------  -------- 
Earnings per       0.0p      0.6p      0.6p      0.5p      0.1p      0.6p      0.3p      1.3p      1.6p 
 share -- 
 basic and 
 diluted 
-------------  --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 
 
   --    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 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 2020     As at 31 July 2019     As at 31 January 2020 
                 GBP'000    GBP'000     GBP'000    GBP'000     GBP'000      GBP'000 
--------------  ---------  ----------  ---------  ----------  ---------  ------------- 
Fixed asset 
 investments                  110,490                 93,372                   104,534 
Current 
assets: 
Investments        25,659                 13,567                 13,649 
Debtors             2,881                  2,405                  1,982 
Cash at bank        3,656                 20,288                 16,637 
--------------  ---------  ----------  ---------  ----------  ---------  ------------- 
                   32,196                 32,260                 32,268 
Creditors: 
 amounts 
 falling due 
 within one 
 year             (1,356)                (7,539)                (4,429) 
--------------  ---------  ----------  ---------  ----------  ---------  ------------- 
Net current 
 assets                        30,840                 28,721                    27,839 
--------------  ---------  ----------  ---------  ----------  ---------  ------------- 
Net assets                    141,330                122,093                   132,373 
--------------  ---------  ----------  ---------  ----------  ---------  ------------- 
 
Share capital                  30,637                 26,430                    28,994 
Share premium                  77,822                 59,620                    70,947 
Special 
 distributable 
 reserve                       15,060                 23,142                    16,975 
Capital 
 redemption 
 reserve                        5,509                  4,465                     5,046 
Capital 
 reserve 
 realised                       4,407                  4,691                     5,714 
Capital 
 reserve 
 unrealised                     8,012                  2,460                     4,697 
Revenue 
 reserve                        (117)                  1,285                        -- 
Total equity 
 shareholders' 
 funds                        141,330                122,093                   132,373 
--------------  ---------  ----------  ---------  ----------  ---------  ------------- 
Net asset                       46.1p                  46.2p                     45.7p 
 value per 
 share 
--------------  ---------  ----------  ---------  ----------  ---------  ------------- 
 
 
   The statements were approved by the Directors and authorised for issue 
on 18 September 2020 and are signed on their behalf by: 
 
   Murray Steele 
 
   Chairman 
 
   Company Number: 05840377 
 
   Statement of Changes in Equity 
 
 
 
 
                 Share capital  Share premium  Special distributable reserves  Capital redemption reserve  Capital reserve realised  Capital reserve unrealised  Revenue reserve   Total 
                    GBP'000        GBP'000                 GBP'000                       GBP'000                    GBP'000                    GBP'000                   GBP'000   GBP'000 
---------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
As at 1 
 February 2020          28,994         70,947                          16,975                       5,046                     5,714                       4,697               --   132,373 
---------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
Total 
 comprehensive 
 income for the 
 period:                    --             --                              --                          --                   (1,307)                       3,315            (117)     1,891 
Contributions 
by and 
distributions 
to owners: 
Repurchase and 
 cancellation 
 of own shares           (464)             --                         (1,915)                         463                        --                          --               --   (1,916) 
Issue of shares          2,107          6,875                              --                          --                        --                          --               --     8,982 
Dividends paid              --             --                              --                          --                        --                          --               --        -- 
---------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
Total 
 contributions 
 by and 
 distributions 
 to owners               1,643          6,875                         (1,915)                         463                        --                          --               --     7,066 
---------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
Other 
movements: 
Prior period 
holding 
gains/(losses) 
now realised                --             --                              --                          --                        --                          --                -        -- 
---------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
Total other 
movements                   --             --                              --                          --                        --                          --                -        -- 
---------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
As at 31 July 
 2020                   30,637         77,822                          15,060                       5,509                     4,407                       8,012            (117)   141,330 
---------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
 
                 Share Capital  Share Premium  Special distributable reserves  Capital Redemption Reserve  Capital reserve realised  Capital reserve unrealised  Revenue reserve     Total 
                       GBP'000        GBP'000                         GBP'000                     GBP'000                   GBP'000                     GBP'000          GBP'000   GBP'000 
---------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
As at 1 
 February 2019          25,250         53,256                          29,602                       3,914                     7,698                       (696)               --   119,024 
---------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
Total 
 comprehensive 
 income for the 
 period:                    --             --                              --                          --                   (1,879)                       2,028            1,285     1,878 
Contributions 
by and 
distributions 
to owners: 
Repurchase and 
 cancellation 
 of own shares           (551)             --                         (2,478)                         551                        --                          --               --   (2,478) 
Issue of shares          1,731          6,364                              --                          --                        --                          --               --     8,095 
Dividends paid              --             --                         (3,982)                          --                        --                          --               --   (3,982) 
---------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
Total 
 contributions 
 by and 
 distributions 
 to owners               1,180          6,364                         (6,460)                         551                        --                          --               --     1,635 
---------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
Other 
movements: 
Prior period 
 holding losses 
 now realised               --             --                              --                          --                   (1,128)                       1,128               --        -- 
---------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
Total other 
 movements                  --             --                              --                          --                   (1,128)                       1,128                -        -- 
---------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
As at 31 July 
 2019                   26,430         59,620                          23,142                       4,465                     4,691                       2,460            1,285   122,093 
---------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
 
 
 
 
 
 
                Share Capital  Share Premium  Special distributable reserves  Capital Redemption Reserve  Capital reserve realised  Capital reserve unrealised  Revenue reserve   Total 
                   GBP'000        GBP'000                 GBP'000                       GBP'000                    GBP'000                    GBP'000               GBP'000       GBP'000 
--------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
As at 1 
 February 
 2019                  25,250         53,256                          29,602                       3,914                     7,698                       (696)               --   119,024 
--------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
Total 
 comprehensive 
 income for 
 the year:                 --             --                              --                          --                     1,507                       1,902              735     4,144 
Contributions 
by and 
distributions 
to owners: 
Repurchase and 
 cancellation 
 of own 
 shares               (1,132)             --                         (5,017)                       1,132                        --                          --               --   (5,017) 
Issue of 
 shares                 4,876         18,376                              --                          --                        --                          --               --    23,252 
Share issue 
 cost                      --          (685)                              --                          --                        --                          --               --     (685) 
Dividends paid             --             --                         (7,610)                          --                        --                          --            (735)   (8,345) 
--------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
Total 
 contributions 
 by and 
 distributions 
 to owners              3,744         17,691                        (12,627)                       1,132                        --                          --            (735)     9,205 
--------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
Other 
movements: 
Prior year 
 holding 
 losses now 
 realised                  --             --                              --                          --                   (3,491)                       3,491               --        -- 
Total other 
 movements                 --             --                              --                          --                   (3,491)                       3,491               --        -- 
--------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
As at 31 
 January 2020          28,994         70,947                          16,975                       5,046                     5,714                       4,697               --   132,373 
--------------  -------------  -------------  ------------------------------  --------------------------  ------------------------  --------------------------  ---------------  -------- 
 
 
   Cash Flow Statement 
 
 
 
 
                                Unaudited       Unaudited         Audited 
                               Six months to   Six months to       Year to 
                               31 July 2020    31 July 2019    31 January 2020 
                                  GBP'000         GBP'000          GBP'000 
----------------------------  --------------  --------------  ---------------- 
Cash flows from operating 
activities: 
Profit after tax                       1,891           1,433             4,144 
Adjustments for: 
(Increase)/decrease in 
 debtors                             (1,001)             176               598 
(Decrease)/increase in 
 creditors                           (2,973)           1,918             2,790 
Gain on disposal of fixed 
 assets                                    -             (6)           (4,872) 
Gain on revaluation of fixed 
 asset investments                   (3,306)         (1,849)           (1,641) 
Gain on disposal of current 
 assets                                    -            (46)              (46) 
Gain on revaluation of 
 current asset investments               (9)           (179)             (261) 
Cash from operations                 (5,398)           1,447               712 
Cash flows from investing 
activities: 
Purchase of fixed asset 
 investments                         (2,650)        (11,477)          (29,277) 
Purchase of current asset 
investments                         (12,000)              --                -- 
Disposal of current asset 
 investments                               -           5,000             5,000 
Disposal of fixed asset 
 investments                               -           6,498            17,794 
----------------------------  --------------  --------------  ---------------- 
Net cash flows from 
 investing activities               (14,650)              21           (6,483) 
                                                                       (6,483) 
Cash flows from financing 
activities: 
Purchase of own shares               (1,915)         (2,478)           (5,017) 
Share issues                           8,982           8,095            21,042 
Dividends paid                             -               -           (6,820) 
----------------------------  --------------  --------------  ---------------- 
Net cash flows from 
 financing activities                  7,067           5,617             9,205 
(Decrease)/ increase in cash 
 and cash equivalents               (12,981)           7,085             3,434 
Opening cash and cash 
 equivalents                          16,637          13,203            13,203 
                                                                        13,203 
----------------------------  --------------  --------------  ---------------- 
Closing cash and cash 
 equivalents                           3,656          20,288            16,637 
----------------------------  --------------  --------------  ---------------- 
 
   Notes to the Half-Yearly Report 
 
   1.   Basis of preparation 
 
   The unaudited half-yearly report which cover the six months to 31 July 
2020 has 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. 
 
   The Directors consider it appropriate to adopt the going concern basis 
of accounting. The Directors have not identified any material 
uncertainties to the company's ability to continue to adopt the going 
concern basis over a period of at least twelve months from the date of 
approval of the financial statements. In reaching this conclusion the 
Directors have had regard to the potential impact on the 
economy and the Company of the current Coronavirus pandemic. 
 
   The principal accounting policies have remained unchanged from those set 
out in the Company's 2020 Annual Report and Accounts. 
 
   2.   Publication of non-statutory accounts 
 
   The unaudited half-yearly report for the six months ended 31 July 2020 
does not constitute Statutory Accounts within the meaning of s.415 of 
the Companies Act 2006. The comparative figures for the year ended 31 
January 2020 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 300,616,820 shares, being the 
weighted average number of shares in issue during the period (31 January 
2020: 264,800,099; 31 July 2019: 252,299,145). 
 
   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 2020  31 July 2019  31 January 2020 
------------------------------  ------------  ------------  --------------- 
Net assets (GBP)                 141,330,000   122,093,000      132,373,000 
Shares in Issue                  306,367,852   264,300,126      289,936,208 
------------------------------  ------------  ------------  --------------- 
Net asset value per share (p)           46.1          46.2             45.7 
 
 
   5.   Dividends 
 
   The interim dividend of 1.2p per share for the six months ending 31 July 
2020 will be paid on 15 January 2021, to those shareholders on the 
register on 29 December 2020. 
 
   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 2020. 
 
   The principal risks include loss of VCT status, investment risk, 
valuation risk, financial risk, economic risk, internal control risk, 
regulatory risk, cash flow risk, market risk liquidity risk and price 
risk. The Board has also considered emerging risks, including the 
Coronavirus pandemic, which the Board seeks to mitigate by setting 
policy and reviewing performance. 
 
   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 GBP1,620,000 during the 
period to 31 July 2020 (31 July 2019: GBP2,198,000; 31 January 2020: 
GBP3,970,000). 
 
   During the period the Company has incurred performance fees of 
GBP368,000 (31 July 2019: GBP211,000, an adjustment of GBP870,000 was 
also made for historic performance fees; 31 January 2020: GBP1,740,000) 
which are included in the above management fees. 
 
   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 receives certain reductions in the management fee, including 
for investments in other Octopus managed funds, to ensure the Company is 
not double charged on these products. These rebates amounted to 
GBP57,000 for the current period (31 July 2019: GBP111,000; 31 January 
2020 GBP236,000). 
 
   8. Post balance sheet events 
 
   A dividend of 1.1p was paid on 7 September 2020 to all ordinary 
shareholders who were on register on 14 August 2020. This caused NAV to 
decrease from 46.1p to 45.0p. 
 
   On 7 September, 1,400,927 Ordinary Shares were issued at a price of 
45.0p per share to shareholders who elected to receive Ordinary Shares 
under the Dividend Reinvestment Scheme as an alternative to the 1.1p 
dividend. 
 
   The Company invested a total of GBP0.7 million into one follow-on 
investment. The Company also received GBP0.6 million for the disposal of 
one investment. 
 
   9. Additional Information 
 
   An online version of this report will be available to view on the 
Investment Manager's website at www.octopusinvestments.com. Hard copy 
versions are available on request from the registered office of the 
Company at 33 Holborn, London, EC1N 2HT 
 
 
 
 
 
 

(END) Dow Jones Newswires

September 18, 2020 05:06 ET (09:06 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.

1 Year Octopus Apollo Vct Chart

1 Year Octopus Apollo Vct Chart

1 Month Octopus Apollo Vct Chart

1 Month Octopus Apollo Vct Chart
ADVFN Advertorial
Your Recent History
LSE
OAP3
Octopus Ap..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20201028 19:28:34