Share Name Share Symbol Market Type Share ISIN Share Description
Oxford Technology 4 Vct LSE:OXF London Ordinary Share GB00B01H4V84 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 29.50p 24.00p 35.00p 29.50p 29.50p 29.50p 0 05:30:32
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 0.0 -0.1 -0.6 - 3.40

Oxford Tech 4 VCT Oxford Technology 4 Vct Plc : Annual Financial Report

03/05/2018 7:01am

UK Regulatory (RNS & others)


 
TIDMOXF 
 
 
   2nd May 2018 
 
   Oxford Technology 4 VCT plc ("the Company" or "OT4") 
 
   Annual Report and Accounts for the year ended 28 February 2018 
 
   The Directors are pleased to announce the audited results of the Company 
for the year ended 28 February 2018.  A copy of the Annual Report and 
Accounts (together the "Accounts") will be made available to 
Shareholders shortly.  Set out below are extracts from the audited 
Accounts. References to page numbers below are to those Accounts. 
 
 
 
 
 
   The AGM will be held at The Magdalen Centre, Oxford Science Park, Oxford 
OX4 4GA on Thursday 12 July 2018, at 11am. 
 
   A copy of the Accounts will be available from the registered office of 
the Company at The Magdalen Centre, Oxford Science Park, Oxford OX4 4GA, 
as well as on the Company's website: www.oxfordtechnology.com/vct4 
 
   Financial Headlines 
 
 
 
 
                                                 Year Ended         Year Ended 
                                           28 February 2018   28 February 2017 
 
  Net Assets at Year End                   GBP5.28m            GBP5.98m 
 
  Net Asset Value per Share                45.9p               51.9p 
Cumulative Dividend per Share                         37.0p              37.0p 
NAV + Cumulative Dividend Paid per                    82.9p              88.9p 
Share from Incorporation 
 
  Share Price at Year End                  39.0p               40.0p 
Earnings Per Share 
 (Basic & Diluted)                         (6.0)p              (14.9)p 
 
 
   Chairman's Statement 
 
   I am pleased to present my Annual Report for the year to 28 February 
2018 to fellow shareholders. 
 
   Overview 
 
   The portfolio has concentrated during the year due to the write off or 
write down of three of the Company's holdings.  Therefore, despite a 
rise during the first half of the year to 54.7p, over the full year the 
Company's net asset value (NAV) per share has fallen 6.0p from 51.9p on 
28 February 2017 to 45.9p on 28 February 2018.  Dividends paid to date 
are now 37.0p per share, giving a total return to date of 82.9p per 
share based on the NAV on 28 February 2018. This is a disappointing 
result, as valuations on four of the five largest portfolio holdings 
have essentially remained static during the period. 
 
   Follow on investments were made into three portfolio companies: ImmBio 
(GBP59k), Plasma Antennas (GBP50k) and ZuvaSyntha (GBP40k). Since the 
year end, an additional GBP57k has been committed to Immbio. 
 
   Portfolio Review 
 
   The Directors continue to take an active interest in the remaining 
companies within the portfolio, both to support their management teams 
to achieve company development, but also to prepare companies for 
realisation at the appropriate time.  It should however be noted that 
approaches do occur at other times, and the ability of the Directors and 
Investment Advisor to be able to provide support when such approaches 
occur is essential for maximising value. 
 
   The net asset value (NAV) per share on 28 February 2018 was 45.9p 
compared to 51.9p on 28 February 2017.  This 6.0p drop in NAV was caused 
by the write down or write off of three holdings:  Glide, Historic 
Futures and Plasma Antennas. 
 
   Your companies largest holding is AIM listed Castleton Technology, which 
acquired Impact Applications Limited in a cash and share transaction. 
Castleton provides managed services and software to the housing sector. 
During the year it has made further acquisitions, and announced a 
significant strengthening of the management team.  Its share price rose 
during the year from 56.5p to 68.5p.  This provides your Company with a 
valuable 'near cash' resource to enable it to support other portfolio 
companies as required.  To this end, post year end, we realised GBP150k 
of Castleton shares to allow further support for less mature portfolio 
companies.  Since the year end, the Castleton share price has continued 
to strengthen and at the time of writing is 87p.  This continued rise 
adds around 3.4p per share to the NAV. 
 
   Valuation of portfolio companies has to be undertaken in line with 
International Private Equity and Venture Capital (IPEVC) Valuation 
Guidelines, and is often based on the price of the most recent open 
major fundraising round.  This means that valuations will often remain 
static even if the company concerned is actually making substantial 
progress.  An example of this is Arecor, the third largest holding in 
the OT4 portfolio.  During the past year, Arecor has announced 
significant progress, including a licence agreement with a major global 
healthcare company, as well as the successful pre-clinical development 
of stable rapid-acting, ultra-concentrated insulin for the significantly 
enhanced treatment of type 1 diabetes. However, under valuation 
guidelines, the value of the company within your portfolio remains 
unchanged. 
 
   A further investment of GBP50k was made into Plasma Antennas alongside 
GBP50k from OT3, to bridge the company to a larger funding round. 
Whilst Plasma Antennas has interest from many of the major players in 
telecoms for their plasma antennas, after long discussions no offers to 
invest have come forward, nor any immediate further sales opportunities. 
Whilst there remains interest in their existing product range, the 
company is now in the process of being mothballed and we have decided to 
take a provision against our equity holding, totalling GBP590k. 
 
   A further GBP59k was invested in ImmBio to support continued 
commercialisation of its PnuBioVax Vaccine. The final results to come 
from their First-in-Human study were positive and was found to be safe 
and well tolerated, and capable of producing antibody responses against 
key S. pneumoniae antigens broadly conserved across strains. 
Negotiations are progressing with first licensees for the vaccine, and a 
further GBP57,000 was committed in  April 2018 to allow time for these 
conversations to progress. 
 
   GBP40k was invested into ZuvaSyntha to allow them to continue to develop 
their products, and increase manufacturing scale. 
 
   Select Technology, a photocopier (or more generally Multi Function 
Device, or MFD) software company, is the second largest holding in your 
Company's portfolio. Despite seeing core sales grow, it has experienced 
reduced profitability and cash generation this year after simplifying 
its business model. As reported last year, this should reduce the 
dependency on one particular supplier, increase business resilience and, 
ultimately, enable more rapid growth by enabling Select Technology to 
take on a more balanced portfolio of software products for worldwide 
distribution.  It is too early to be able to report fully on the outcome 
of this change in the business model, but early indications are not 
negative.  As reported in the half year statement on 23 October 2017, 
having taken these developments into account, we have reverted to a 
valuation methodology based on a sales multiple to more appropriately 
reflect the prospects of the business.  Our 18.4% stake in this business 
has increased slightly in value over the course of the reporting period 
and as at 28 February 2018 made up 17.1% of your portfolio. 
 
   As reported in the previous annual report, Glide Pharmaceuticals raised 
money during 2016 on terms which were highly unattractive to existing 
shareholders, leading to a significant write down in valuation for our 
VCT.  Glide attempted to raise further money during 2017, but due to the 
terms of the previous funding round, was unable to attract new 
investors.  Glide therefore was placed into administration during 
September 2017. 
 
   Whilst the valuation of the portfolio has not shown growth, several 
portfolio companies have made significant commercial progress during the 
reporting period, and we are hopeful that this progress will be 
reflected in improving valuations in the future.  Your VCT has access to 
sufficient funds to be able to support the portfolio companies as they 
raise money in the future at hopefully enhanced valuations, provided the 
VCT rules will allow OT4 to continue to invest. 
 
   Further details on these investments are contained within the Investment 
Portfolio Review. The full list of the Company's investments is shown on 
page 17, with details of all investees on our website. 
 
   Dividends/Return of Capital 
 
   The Directors are not recommending a dividend for the year ending 28 
February 2018. 
 
   The ongoing strategy is to seek to crystallise value from the portfolio 
and distribute cash to shareholders.  There is a reasonable expectation 
of continued income from Select Technology, though our priority for this 
company is to maximise shareholder value and liquidity over the medium 
term by seeking an exit for this holding at the appropriate time. 
 
   VCT Market Changes 
 
   In terms of the broader VCT market, the main event of the year was the 
Patient Capital Review (PCR) undertaken by HM Treasury (HMT).  Your 
Board engaged with the PCR on behalf of your VCT, seeking to ensure the 
continued viability of your Company. 
 
   As mentioned in our third quarter update, your Board broadly welcomed 
the results of the PCR as announced in the Autumn Budget in November 
2017.  In summary, HMT wishes to encourage investments into earlier 
stage businesses; and, if necessary, for these investments to be allowed 
to flourish over longer periods of time.  We believe that, appropriately 
resourced and supported, the VCT structure is well-suited to this 
patient approach to long term value creation.  We also welcome the 
extension of the six month VCT rule to twelve months as providing a 
greater level of future re-investment flexibility. 
 
   One of the Autumn Budget's announcements was an increase in the level of 
VCT qualifying investments to 80% (up from 70%) that a VCT needs to 
hold; this legislation received Royal Assent on 15 March 2018.  For OT4, 
this change is effective from 1 March 2020, and may make it more 
challenging for small VCTs, such as your Company, to manage ongoing 
compliance with these qualifying tests, which is an unintended 
consequence of the new legislation.  Cash holdings are non-qualifying, 
but VCTs are obliged to demonstrate that they have adequate working 
capital over the medium term, which would not be possible if cash 
reserves must be distributed in order to fulfil the new legislation - 
corporate liquidity tests could thus become very tight.  We fully 
understand the rationale for introducing this change and believe that a 
simple amendment is possible that would mitigate this unintended 
consequence while ensuring that the legislative change retains HMT's 
desired effect.  We will continue to lobby for an appropriate amendment 
to be made. 
 
   A further change has seen the introduction of MiFID II & PRIIPS. The 
most significant impact on VCTs has been the requirement to prepare a 
Key Information Document (KID).  Shareholders who are interested can 
find it on the Company's website. 
 
   Planning for the Future 
 
   As announced in last year's report, your Board continues to look at 
methods of improving operational efficiency, reducing costs and, more 
generally, putting in place appropriate plans to ensure that your VCT's 
operational costs relative to its overall size remain within acceptable 
limits.  The current level of operating costs, directors' fees and total 
investment management fees are GBP116k (2017: GBP131k) and are just 2.2% 
of year end assets; one of the lowest ratios in the industry. 
 
   AGM 
 
   Shareholders should note that the AGM for the Company will be held on 
Thursday 12 July 2018 at the Magdalen Centre, Oxford Science Park, 
starting at 11am and will include presentations by Oxford Technology 
Management and some of the companies that the Oxford Technology VCTs 
have invested in. 
 
   A formal Notice of the AGM has been enclosed with these Financial 
Statements together with a Form of Proxy for those not attending. We 
appreciate the input of our shareholders and look forward to welcoming 
as many of you as possible on the day - thank you for your ongoing 
support. 
 
   Outlook 
 
   The Oxford Technology VCTs have operated and continue to operate very 
much in the spirit of the VCT legislation by investing in and 
subsequently supporting early stage technology companies.  Unfortunately, 
the current VCT rules sometimes limit the amount of follow on investment 
that we are able to make. 
 
   Looking ahead, though, the Board continues to believe your VCT is an 
appropriate structure to hold your Company's assets.  The portfolio is 
beginning to mature, with several holdings showing potential to generate 
strong returns when the appropriate time comes to realise them.  As per 
our stated strategy, your Board continues to work to maximise value, 
reduce costs, and - when valuations and liquidity allow - crystallise 
this value and distribute the proceeds to shareholders. 
 
   David Livesley 
 
   Chairman 
 
   2nd May 2018 
 
   Investment Portfolio Review 
 
   OT4 was formed in 2004 and has invested in 35 companies which were 
start-up or early stage technology companies.  Some of these companies 
failed with the loss of the investment.  Some have succeeded and have 
been sold.  The table on page 17 shows the companies remaining in the 
portfolio.  A more detailed analysis is given of the major investments 
on the following pages.  Several still have the potential to deliver 
significant returns. 
 
   OT4 received shares in AIM-listed Castleton Technology as part of the 
proceeds of sale when Castleton purchased Impact Applications in 2015. 
Castleton is a provider of software, services and IT infrastructure to 
the social, public and commercial housing sector.  During the year 
Castleton posted its first profits and had several major contract wins 
including first contracts in Australia.  The effective price of 
acquisition of these shares for OT4 was 45p.   As at 28 February 2018, 
the bid price for the shares was 68.5p.   In March 2018 the Company sold 
GBP150,000 worth of Castleton shares for 72p per share in order to fund 
operations and enable new investments. 
 
   Select Technology specialises in software for photocopiers - now known 
as MFDs - Multi-Function Devices.  Over the last decade Select has built 
up a global network of distributors and dealers through which it sells 
both its own and third party products.  These products now include 
PaperCut, Kpax, Foldr and Drivve Image. Sales have increased from 
GBP210k in the year to July 2010 to over GBP5m in the year to January 
2018, though Select lost one contract in 2017 that resulted in 
substantially reduced profits in the year to July 2017. However, the 
core business has continued to grow and it is hoped that Select should 
again be able to pay a dividend in OT4's current financial year.  It has 
employees all over the world; everyone works remotely. 
 
   Arecor is making encouraging progress.  The company has progressed its 
insulin programme and has both the fastest acting and most concentrated 
formulations in the world. In preparation for the start of clinical 
trials it is raising money and there has been good interest, recognizing 
both the technical advantage and the very competitive nature of the 
insulin market.  The term sheet for the fundraising is currently being 
negotiated. 
 
   Plasma Antennas has developed a range of next generation smart 
selectable antenna technologies and has a prototype of a true plasma 
antenna, which it was hoped might be at the centre of tomorrow's 
communications systems.   However, although some of the largest global 
companies were very interested, with companies in the US, China and 
Japan all making special visits to meet Plasma in Winchester, no 
partnership deal was done. Therefore, at the time of writing, Plasma is 
in the process of being mothballed. 
 
   GBP59,000 was invested in July 2017 into ImmBio to help support the 
commercialisation of the Pneumonia vaccine which had a successful phase 
1 clinical trial in spring 2016.  A deal was arranged with the Liverpool 
School of Tropical Medicine to apply for joint grants to support 
additional clinical trials. The collaboration has not yet resulted in 
any successful grant applications. ImmBio has a new CEO, Enrique Tabares 
having taken over the role.  He is leading the discussions with 
potential licensees, which have been progressing since mid-2017. 
Negotiations are progressing with first licensees for the vaccine, and a 
further GBP57,000 was committed in  April 2018 to allow time for these 
conversations to progress. 
 
   ZuvaSyntha carries out enzyme and microbe engineering to produce 
chemicals which are difficult to produce by conventional chemical 
routes.  ZuvaSyntha is currently working on 1,3 Butanediol,  a chemical 
that exists in two different forms. 
 
   An advantage of the enzymatic production  is that only one form is 
produced, and so it is easy to achieve the high purity required in food 
and pharmaceutical applications.  GBP40,000 was invested in March 2017. 
 
   Dynamic Extractions was formed as a spin-out from Brunel University in 
2005.  The objective of the company was to commercialise a technology 
developed at Brunel University for high performance counter current 
chromatography.  Initially the business was based on the trading estate 
in Slough, and designed and sold HPCCC instruments which were 
manufactured by subcontract.  The company and its business model have 
been transformed in the last few years.  The HPCC instruments have been 
redesigned from scratch and the first of the much improved instruments, 
manufactured by a subcontractor in Wales emerged in late 2016.  Also, 
although the sale of HPCCC instruments remains part of the business 
(these are now in use all over the world) more of the company's effort 
will be devoted to using its own technology to produce valuable 
compounds for sale. 
 
   OT4 was the first investor in Diamond Hard Surfaces (DHS) when the 
company was formed and owns just under 50%.   It has taken a long time, 
but it is good to report that DHS is now making regular sales to a 
growing number of companies, many of them overseas, and that the company 
made a small profit for the first time in the year to December 2016. 
There are numerous applications in many industries for the DHS coating, 
and new applications and new customers are being added all the time, 
many of whom have tried other coatings first. The other remarkable 
property of the DHS coating is that it is an almost perfect electrical 
insulator, but has three times the thermal conductivity of copper.  This 
means the coating is finding increasing applications in microchips and 
electrical circuits to dissipate heat.   However, the loss of a major 
customer in autumn 2017 meant that sales for the year were flat in 2017 
and a small loss was made.  But it is expected that growth will resume 
in 2018.  There are now 3 production chambers in operation, up from 2 
the year before. 
 
   Oxis Energy is developing a Lithium Sulphur rechargeable battery with a 
significantly higher specific energy (energy storage per unit weight) 
than the currently available Lithium Ion batteries. OT2 was the first 
investor in Oxis Energy (then known as Intellikraft) in January 2000. 
OT4 invested in November 2005.  This battery is now planned to be tested 
in electric vehicles, with electric buses being the main focus, as every 
kilogramme of weight saved in the battery translates to increased 
payload/ number of passengers that can ride the bus. The other area of 
focus is aerospace, where weight reduction is also clearly of interest. 
 
   Despite having a successful clinical trial in summer 2016, in December 
2016 Glide raised capital on terms which were very unfavourable to the 
early shareholders.  The company took on a convertible loan against its 
assets and when the loan was not extended the investor who was providing 
the loan pushed the company into administration and agreed a pre-pack to 
take over the assets of the company. Unfortunately this has resulted in 
a complete loss of the invested value in Glide. 
 
   New Investments in the year 
 
   There were three follow on investments during the year of GBP59,000 into 
ImmBio, GBP40,000 into ZuvaSyntha, and GBP50,000 into Plasma Antennas as 
well as a part loan conversion. All new investments have complied with 
both EU State Aid rules and HMRC VCT rules. 
 
   Disposals during the year 
 
   There were no disposals during the year. However, Glide Pharmaceuticals 
and Historic Futures both went into administration. 
 
   Valuation Methodology 
 
   Quoted and unquoted investments are valued in accordance with current 
industry guidelines that are compliant with International Private Equity 
and Venture Capital (IPEVC) Valuation Guidelines and current financial 
reporting standards. 
 
   VCT Compliance 
 
   Compliance with the main VCT regulations as at 28 February 2018 and for 
the year then ended is summarised as follows: 
 
 
 
 
Type of Investment 
 By HMRC Valuation Rules     Actual          Target 
                                     Minimum obligation of: 
VCT Qualifying Investments    91%             70.0% 
                                        Maximum allowed: 
Non-Qualifying Investments     9%             30.0% 
Total                        100.0%                  100.0% 
 
 
   At least 10% of each investment in a qualifying company is held in 
'eligible shares' - Complied. 
 
   No more than 15% of the income from shares and securities is retained - 
Complied. 
 
   No investment constitutes more than 15% of the Company's portfolio (by 
value at time of investment or when the holding is added to) - Complied. 
 
   The Company's income in the period has been derived wholly or mainly 
(70% plus) from shares or securities - Complied. 
 
   No investment made by the VCT has caused the company to receive more 
than GBP5m of State Aid investment in the year, nor more than the 
lifetime limit of GBP12m - Complied. 
 
   Table of Investments held by Company at 28 February 2018 
 
 
 
 
                                                                                            Change 
                                                                                              in 
                                                     Net cost                                value             % equity 
                                       Date of          of                                  for the  % equity  held by 
                                       initial      investment  Carrying value at 28/02/18   year      held      all     % Net 
Company                Description     investment    GBP'000              GBP'000           GBP'000    OT4      OTVCTs   Assets 
                       Mobile 
Castleton Technology    software for 
 (Bid Price 68.5p)      contractors     Oct 2005           192                       1,591      279       2.9       2.9    30.1 
                       Photocopier 
Select Technology       Interfaces      Aug 2006           237                         881       35      18.4      58.6    16.7 
                       Protein 
Arecor                  stabilization   Jul 2007           491                         734        -       7.0      12.1    13.9 
                       Diamond 
Diamond Hard Surfaces   coatings        Jan 2005           640                         519      (2)      49.9      49.9     9.8 
ImmBio                 Novel vaccines   Oct 2005           732                         454        5       9.1      15.9     8.6 
                       Separation 
Dynamic Extractions     technology      Aug 2005           377                         313        -      30.4      30.4     5.9 
                       Microbial 
ZuvaSyntha              technology      Feb 2012           383                         162       40      26.0      26.0     3.1 
                       Bone graft 
Orthogem                material        May 2007           230                         135        -       7.2      20.2     2.6 
                       Rechargeable 
Oxis Energy             batteries       Nov 2005           305                         135     (48)       0.3       0.5     2.6 
                       Active wound 
                        healing 
Insense                 dressings       Apr 2005           476                          67        -       2.5       6.8     1.3 
                       Antibiotics 
Novacta                 Development     Apr 2005           347                          59      (4)       2.3       2.3     1.1 
                       Solid state 
Plasma Antennas         antennas        Mar 2005           700                          41    (591)      30.9      48.8     0.8 
                       Protein based 
Abzena                  peptide 
 (Bid Price 25.0p)      drugs           Nov 2002            33                          24     (11)       0.0       0.1     0.4 
                       Virtual 
MirriAd Advertising     product 
 (Bid Price 46.0p)      placement       May 2015             0                          22      (8)       0.0      0.01     0.4 
                       Production of 
Metal Nanopowders       nanopowders     Aug 2006            52                           4      (7)      16.7      36.7     0.1 
                       Very hard 
Superhard Materials     materials       Feb 2012             9                           1      (1)      18.0      40.0     0.0 
                       Needle free 
Glide                   injections      Feb 2005           975                           -     (85)       5.6       8.8     0.0 
                       Traceability 
Historic Futures        software        Aug 2005           420                           -     (32)       6.6       6.6     0.0 
Totals                                                   6,598                       5,141    (430) 
Other Net Assets                                                                       139                                  2.6 
NET ASSETS                                                                           5,280                                  100 
 
   Number of shares in issue:  11,516,946 
 
   Net Asset Value per share at 28 February 2018: 45.9p 
 
   Dividends paid to date: 37.0p 
 
   The table shows the current portfolio holdings.  The investments in 
Bluewater Bio, Cutting the Wires, Dynamic Discovery, EKB, Ingenious, 
Inspiration Matters, Kinomi, MirriAd and Water Innovate have been 
written off.   The investments in Dexela, Imagineer Systems, Impact 
Applications, Incentec, Mecira, OxTox, Pharma Engineering, Telegesis and 
Naked Objects have been sold.   Some shares in Abzena and Castleton have 
also been sold. 
 
   Lucius Cary - Director 
 
   OT4 Managers Ltd 
 
   Investment Manager 
 
   2nd May 2018 
 
   Directors' Report 
 
   The Directors present their report together with Financial Statements 
for the year ended 28 February 2018. 
 
   The Directors consider that the Annual Report and Financial Statements, 
taken as a whole are fair, balanced and understandable and provide the 
information necessary for shareholders to assess the Company's 
performance, business model and strategy. 
 
   This report has been prepared by the Directors in accordance with the 
requirements of s415 of the Companies Act 2006.  The Company's 
independent auditor is required by law to report on whether the 
information given in the Directors' Report is consistent with the 
Financial Statements. 
 
   Principal Activity 
 
   The Company commenced business in 2004.  The Company invests in start-up 
and early stage technology companies in general located within 60 miles 
of Oxford.  The Company has maintained its approved status as a Venture 
Capital Trust by HMRC. 
 
   Directors 
 
   The Directors of the Company are required to notify their interests 
under Disclosure and Transparency Rule 3.12R.  The membership of the 
Board and their beneficial interests in the ordinary shares of the 
company at 28 February 2018 and at 28 February 2017 are set out below: 
 
 
 
 
Name            2018    2017 
D Livesley      3,499   3,499 
R Goodfellow   20,000  20,000 
R Roth         44,310  44,310 
A Starling        Nil     Nil 
 
 
   Under the Company's Articles of Association one third of the Directors 
are required to retire by rotation each year.  Robin Goodfellow and 
David Livesley will be nominated for re-appointment at the forthcoming 
AGM.  The Board believes that both non-executive Directors continue to 
provide a valuable contribution to the Company and remain committed to 
their roles.  The Board recommends that Shareholders support the 
resolutions to re-elect Robin Goodfellow and David Livesley at the 
forthcoming AGM. 
 
   The Board is cognisant of shareholders' preference for Directors not to 
sit on the boards of too many larger companies ("overboarding"). 
Shareholders will be aware that in July 2015, the Company, along with 
the other VCTs that were managed by Oxford Technology Management, 
appointed directors such that the four VCTs each had a Common Board.  In 
addition, Richard Roth has subsequently also become a Director of Hygea 
vct plc, a VCT investing in the Med Tech sector which is also 
self-managed and has a number of investments in common with the Oxford 
Technology VCTs.  Whilst great care is taken to safeguard the interests 
of the shareholders of each separate company, there is an element of 
overlap in the workload of each Director across the four OT funds due to 
the way the VCTs are managed.  The Directors note that the workload 
related to the four OT funds is less than it would be for four totally 
separate and larger funds and are satisfied that Richard Roth has the 
time to focus on the requirements of each OT fund. 
 
   Investment Management Fees 
 
   OT4 Managers Ltd, the Company's wholly owned subsidiary, has an 
agreement to provide investment management services to the Company for a 
fee of 1% of net assets per annum.  David Livesley and Richard Roth, 
together with Lucius Cary are Directors of OT4 Managers Ltd. 
 
   Directors' and Officers' Insurance 
 
   The Company has maintained insurance cover on behalf of the Directors, 
indemnifying them against certain liabilities which may be incurred by 
them in relation to their duties as Directors of the Company. 
 
   Ongoing Review 
 
   The Board has reviewed and continues to review all aspects of internal 
governance to mitigate the risk of breaches of VCT rules or company law. 
 
 
   Whistleblowing 
 
   The Board has been informed that the Investment Manager has arrangements 
in place in accordance with the UK Corporate Governance Code's 
recommendations by which staff of Oxford Technology Management or the 
Secretary of the Company may, in confidence, raise concerns within their 
respective organisations about possible improprieties in matters of 
financial reporting or other matters. 
 
   Bribery Act 2010 
 
   The Company is committed to carrying out business fairly, honestly and 
openly.  The Investment Manager has established policies and procedures 
to prevent bribery within its organisation.  The Company has adopted a 
zero tolerance approach to bribery and will not tolerate bribery under 
any circumstance in any transaction the Company is involved in. The 
Company has instructed the Investment Manager to adopt the same approach 
with investee companies. 
 
   Relations with Shareholders 
 
   The Company values the views of its shareholders and recognises their 
interest in the Company.   The Company's website provides information on 
all of the Company's investments, as well as other information of 
relevance to shareholders (www.oxfordtechnology.com/vct4). 
 
   Shareholders have the opportunity to meet the Board at the Annual 
General Meeting.  In addition to the formal business of the AGM the 
Board is available to answer any questions a shareholder may have. 
 
   The Board is also happy to respond to any written queries made by 
shareholders during the course of the year and can be contacted at the 
Company's registered office:  The Magdalen Centre, Oxford Science Park, 
Oxford OX4 4GA. 
 
   Going Concern 
 
   After making enquiries, the Directors have a reasonable expectation that 
the Company has adequate resources to continue in operational existence 
for the foreseeable future. For this reason, they have adopted the going 
concern basis in preparing the Financial Statements. 
 
   Substantial Shareholders 
 
   At 28 February 2018, the Company has been notified of one investor whose 
interest exceeds three percent of the Company's issued share capital: 
State Street Nominees Limited 8.9% (representing the beneficial interest 
of Oxfordshire County Council Pension Fund). 
 
   Auditors 
 
   James Cowper Kreston offer themselves for re-appointment in accordance 
with Section 489 of the Companies Act 2006. 
 
   On behalf of the Board 
 
   David Livesley 
 
   Chairman 
 
   2nd May 2018 
 
   Directors' Remuneration Report 
 
   Introduction 
 
   This report has been prepared by the Directors in accordance with the 
requirements of the Companies Act 2006. The Company's independent 
auditor, James Cowper Kreston, is required to give its opinion on 
certain information included in this report. This report includes a 
statement regarding the Directors' Remuneration Policy. This report sets 
out the Company's Directors' Remuneration Policy and the Annual 
Remuneration Report which describes how this policy has been applied 
during the year. 
 
   The Directors' Remuneration Policy was last approved by shareholders at 
the AGM on 26 August 2015. It needs to be put to a shareholder vote 
every three years, and shareholders will be asked to approve it again at 
the Annual General Meeting on 12 July 2018. 
 
   Shareholders also need to approve the Directors' Remuneration Report 
every year. It was last approved at the AGM on 5 July 2017 on a 
unanimous show of hands and 100% of proxies voted in favour, and a 
Resolution to approve the Directors' Remuneration Report for the year 
ended 28 February 2018 will also be proposed at the Annual General 
Meeting on 12 July 2018. 
 
   Directors' Terms of Appointment 
 
   The Board consists entirely of non-executive Directors who meet at least 
four times a year and on other occasions as necessary to deal with 
important aspects of the Company's affairs. Directors are appointed with 
the expectation that they will serve for at least three years and are 
expected to devote the time necessary to perform their duties.  All 
Directors retire at the first general meeting after election and 
thereafter every third year, with at least one Director standing for 
election or re-election each year.  Re-election will be recommended by 
the Board but is dependent upon shareholder vote. Directors who have 
been in office for more than nine years will stand for annual 
re-election in line with the AIC Code. There are no service contracts in 
place, but Directors have a letter of appointment. 
 
   Directors' Remuneration Policy 
 
   The Board acts as the Remuneration Committee and meets annually to 
review Directors' pay to ensure it remains appropriate given the need to 
attract and retain candidates of sufficient calibre and ensure they are 
able to devote the time necessary to lead the Company in achieving its 
strategy. 
 
   The Articles of Association of the company state that the aggregate of 
the remuneration (by way of fee) of all the Directors shall not exceed 
GBP50,000 per annum unless otherwise approved by Ordinary Resolution of 
the Company. The following Directors' fees are payable by the Company: 
 
   per annum 
 
   Director Base Fee                               GBP3,500 
 
   Chairman's Supplement                      GBP2,000 
 
   Audit Committee Chairman               GBP3,000 
 
   Audit Committee Member                 GBP1,500 
 
   The OT4 Director Fees are amongst the lowest of any VCT (apart from the 
other OT VCTs). However the Board has spent and continues to spend more 
time on Company activities than was initially envisaged in Summer 2015 
(when the fees were last set) partly due to closer involvement with 
investment, accounting and administration procedures and partly due to 
compliance with additional government regulations. Typically VCT 
industry total directors' fees are in excess of GBP50k and individual 
fees in excess of GBP15k for equivalent levels of work. 
 
   However, given the relatively low funds under management, the Directors 
have determined that it is not appropriate to seek an increase from the 
previously agreed levels. It is therefore proposed that the fees remain 
at the levels that have been paid since 2015. 
 
   David Livesley chairs the Company. Richard Roth chairs the Audit 
Committee, with Robin Goodfellow as a member of the Committee.  As the 
VCT is self-managed, the Audit Committee carries out a particularly 
important role for the VCT and plays a significant part in the sign off 
of quarterly management accounts, and the production of the half year 
and annual statutory accounts. 
 
   Fees are currently paid annually. The fees are not specifically related 
to the Directors' performance, either individually or collectively.  No 
expenses are paid to the Directors.  There are no share option schemes 
or pension schemes in place but Directors are entitled to a share of the 
carried interest as detailed below. 
 
   David Livesley and Richard Roth receive no remuneration in respect of 
their directorships of OT4 Managers Ltd, the Company's Investment 
Manager. 
 
   The performance fee is detailed in note 3. Current Directors are 
entitled to benefit from any payment made, subject to a formula driven 
by relative lengths of service.  The performance fee becomes payable if 
a certain cash return threshold to shareholders is exceeded - the excess 
is then subject to a 20% carry that is distributed to Oxford Technology 
Management, past Directors and current Directors; the remaining 80% is 
returned to shareholders.  At 28 February 2018 no performance fee was 
due. 
 
   Should any performance fee be payable at the end of the year to 28 
February 2019, Alex Starling, Robin Goodfellow, and Richard Roth would 
each receive 0.23% of any amount over the threshold and David Livesley 
1.17%. No performance fee will be payable for the year ending 28 
February 2019 unless original shareholders have received back at least 
117.6p in cash for each 100p (gross) invested. 
 
   Relative Spend on Directors' Fees 
 
   The Company has no employees, so no consultation with employees or 
comparison measurements with employee remuneration are appropriate. 
 
   Loss of Office 
 
   In the event of anyone ceasing to be a Director, for any reason, no loss 
of office payments will be made. There are no contractual arrangements 
entitling any Director to any such payment. 
 
   Annual Remuneration Report 
 
 
 
 
Directors' Fees   Year End 28/02/19  Year End 28/02/18  Year End 28/02/17 
                     (unaudited)         (audited)          (audited) 
David Livesley        GBP5,500           GBP5,500           GBP5,500 
Richard Roth          GBP6,500           GBP6,500           GBP6,500 
Robin Goodfellow      GBP5,000           GBP5,000           GBP5,000 
Alex Starling         GBP3,500           GBP3,500           GBP3,500 
Total                 GBP20,500          GBP20,500          GBP20,500 
 
 
   Income Statement 
 
 
 
 
                                                                       Year Ended                               Year Ended 
                                                                    28 February 2018                      28 February 2017 
                                                       Note   Revenue   Capital    Total    Revenue    Capital     Total 
                                                        Ref.   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000    GBP'000 
 
Gain on disposal of fixed asset investments                       -         -         -         -         12         12 
Unrealised loss on valuation of fixed asset 
investments                                                       -       (579)     (579)       -       (1,667)    (1,667) 
Investment income                                          2         -         -         -        68          -         68 
Investment management fees                                 3      (15)      (45)      (60)      (19)       (58)       (77) 
Other expenses                                             4      (56)         -      (56)      (54)          -       (54) 
 
Return on ordinary activities before tax                          (71)     (624)     (695)       (5)    (1,713)    (1,718) 
Taxation on return on ordinary activities                  5         -         -         -         -          -          - 
Return on ordinary activities after tax                           (71)     (624)     (695)       (5)    (1,713)    (1,718) 
Return on ordinary activities after tax attributable 
 to 
 equity shareholders                                              (71)     (624)     (695)       (5)    (1,713)    (1,718) 
Earnings per share - basic and diluted                     6    (0.6)p    (5.4)p    (6.0)p    (0.0)p    (14.9)p    (14.9)p 
 
 
   There was no other Comprehensive Income recognised during the year. 
 
   The 'Total' column of the Income Statement is the Profit and Loss 
Account of the Company, the supplementary Revenue 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 accompanying notes are an integral part of the Financial Statements. 
 
   Statement of Changes in Equity 
 
 
 
 
                                                       Share Capital  Share Premium  Unrealised Capital Reserve  Profit & Loss Reserve   Total 
                                                          GBP'000        GBP'000               GBP'000                  GBP'000          GBP'000 
 
 
  As at 1 March 2016                                           1,152            813                         600                  5,128     7,693 
 
Revenue return on ordinary activities after tax                    -              -                           -                    (5)       (5) 
Expenses charged to capital                                        -              -                           -                   (58)      (58) 
 Current period gains on disposal                                  -                                          -                     12        12 
Current period losses on fair value of investments                 -              -                     (1,667)                      -   (1,667) 
Prior years' unrealised losses now realised                                                                 189                  (189)         - 
 
  Balance as at 28 February 2017                               1,152            813                       (878)                  4,888     5,975 
 
  Revenue return on ordinary activities after tax                  -              -                           -                   (71)      (71) 
Expenses charged to capital                                        -              -                           -                   (45)      (45) 
 
  Current period losses on fair value of investments               -              -                       (579)                      -     (579) 
 
  Balance as at 28 February 2018                               1,152            813                     (1,457)                  4,772     5,280 
 
 
   The accompanying notes are an integral part of the Financial Statements. 
 
   Balance Sheet 
 
 
 
 
 
 
                                              Year Ended                Year Ended 
                                            28 February 2018      28 February 2017 
                                  Note 
                                  Ref.    GBP'000    GBP'000   GBP'000    GBP'000 
Fixed Asset Investments At Fair 
 Value                                 7                5,141                5,571 
Current Assets 
Debtors                                8         2                    2 
Cash At Bank                                   147                  436 
Creditors: Amounts Falling Due 
 Within 1 Year                         9      (10)                 (34) 
Net Current Assets                                        139                  404 
Net Assets                                              5,280                5,975 
Called Up Equity Share Capital        10                1,152                1,152 
Share Premium                                             813                  813 
Unrealised Capital Reserve            11              (1,457)                (878) 
Profit and Loss Account Reserve       11                4,772                4,888 
Total Equity Shareholders' 
 Funds                                11                5,280                5,975 
Net Asset Value Per Share                               45.9p                51.9p 
 
 
   The accompanying notes are an integral part of the Financial Statements. 
 
 
   The statements were approved by the Directors and authorised for issue 
on 2nd May 2018  and are signed on their behalf by 
 
   David Livesley 
 
   Chairman 
 
   Statement of Cash Flows 
 
 
 
 
                                             Year Ended         Year Ended 
                                           28 February 2018   28 February 2017 
                                               GBP'000            GBP'000 
Cash flows from operating activities 
Return on ordinary activities before tax              (695)            (1,718) 
Adjustments for: 
Gain on disposal of investments                           -               (12) 
Loss on valuation of investments                        579              1,667 
Decrease in debtors                                       -                 25 
Decrease in creditors                                  (24)               (29) 
Movement in investment debtors and 
 creditors                                                -                (7) 
Outflow from operating activities                     (140)               (74) 
Cash flows from investing activities 
Purchase of investments                               (149)              (630) 
Disposal of investments                                   -                 29 
Decrease in cash at bank                              (289)              (675) 
Opening cash and cash equivalents                       436              1,111 
Cash and cash equivalents at year end                   147                436 
 
 
   The accompanying notes are an integral part of the Financial Statements. 
 
   Notes to the Financial Statements 
 
   The Financial Statements have been prepared under Financial Reporting 
Standard 102 - 'The Financial Reporting Standard applicable in the 
United Kingdom and Republic of Ireland' ('FRS 102').  The accounting 
policies have not materially changed from last year. 
 
   1. Principal Accounting Policies 
 
   Basis of Preparation 
 
   The Financial Statements have been prepared under the historical cost 
convention, except for the measurement at fair value of certain 
financial instruments, and in accordance with UK Generally Accepted 
Accounting Practice ("GAAP"), including FRS 102 and with the Companies 
Act 2006 and the Statement of Recommended Practice (SORP) 'Financial 
Statements of Investment Trust Companies and Venture Capital Trusts 
(revised 2014)' issued by the AIC. 
 
   The principal accounting policies have remained materially unchanged 
from those set out in the Company's 2017 Annual Report and Financial 
Statements. A summary of the principal accounting policies is set out 
below. 
 
   FRS 102 sections 11 and 12 have been adopted with regard to the 
Company's financial instruments. The Company held all fixed asset 
investments at fair value through profit or loss. Accordingly, all 
interest income, fee income, expenses and gains and losses on 
investments are attributable to assets held at fair value through profit 
or loss. 
 
   The most important policies affecting the Company's financial position 
are those related to investment valuation and require the application of 
subjective and complex judgements, often as a result of the need to make 
estimates about the effects of matters that are inherently uncertain and 
may change in subsequent periods. These are discussed in more detail 
below. 
 
   Going Concern 
 
   After reviewing the Company's forecasts and expectations, the Directors 
have a reasonable expectation that the Company has adequate resources to 
continue in operational existence for the foreseeable future. The 
Company therefore continues to adopt the going concern basis in 
preparing its Financial Statements. 
 
   Key Judgements and Estimates 
 
   The preparation of the Financial Statements requires the Board to make 
judgements and estimates regarding the application of policies and 
affecting the reported amounts of assets, liabilities, income and 
expenses. Estimates and assumptions mainly relate to the fair valuation 
of the fixed asset investments particularly unquoted investments. 
Estimates are based on historical experience and other assumptions that 
are considered reasonable under the circumstances. The estimates and the 
assumptions are under continuous review with particular attention paid 
to the carrying value of the investments. 
 
   Investments are regularly reviewed to ensure that the fair values are 
appropriately stated. Unquoted investments are valued in accordance with 
current IPEVC Valuation Guidelines, which can be found on their website 
at www.privateequityvaluation.com, although this does rely on subjective 
estimates such as appropriate sector earnings multiples, forecast 
results of investee companies, asset values of investee companies and 
liquidity or marketability of the investments held. 
 
   Although the Directors believe that the assumptions concerning the 
business environment and estimate of future cash flows are appropriate, 
changes in estimates and assumptions could result in changes in the 
stated values. This could lead to additional changes in fair value in 
the future. 
 
   Functional and Presentational Currency 
 
   The Financial Statements are presented in Sterling (GBP). The functional 
currency is also Sterling (GBP). 
 
   Cash and Cash Equivalents 
 
   Cash and cash equivalents includes cash in hand, deposits held at call 
with banks, other short-term highly liquid investments with original 
maturities of three months or less and also include bank overdrafts. 
 
   Fixed Asset Investments 
 
   The Company's principal financial assets are its investments and the 
policies in relation to those assets are set out below. 
 
   Purchases and sales of investments are recognised in the Financial 
Statements at the date of the transaction (trade date). 
 
   These investments will be managed and their performance evaluated on a 
fair value basis and information about them is provided internally on 
that basis to the Board.  Accordingly, as permitted by FRS 102, the 
investments are measured as being fair value through profit or loss on 
the basis that they qualify as a group of assets managed, and whose 
performance is evaluated, on a fair value basis in accordance with a 
documented investment strategy.  The Company's investments are measured 
at subsequent reporting dates at fair value. 
 
   In the case of investments quoted on a recognised stock exchange, fair 
value is established by reference to the closing bid price on the 
relevant date or the last traded price, depending upon convention of the 
exchange on which the investment is quoted. In the case of AIM quoted 
investments this is the closing bid price. 
 
   In the case of unquoted investments, fair value is established by using 
measures of value such as the price of recent transactions, earnings 
multiple, revenue multiple, discounted cash flows and net assets.  These 
are consistent with the IPEVC Valuation Guidelines. 
 
   Gains and losses arising from changes in fair value of investments are 
recognised as part of the capital return within the Income Statement and 
allocated to the unrealised capital reserve. 
 
   In the preparation of the valuations of assets the Directors are 
required to make judgements and estimates that are reasonable and 
incorporate their knowledge of the performance of the investee 
companies. 
 
   Fair Value Hierarchy 
 
   Paragraph 34.22 of FRS 102 regarding financial instruments that are 
measured in the balance sheet at fair value requires disclosure of fair 
value measurements dependent on whether the stock is quoted and the 
level of the accuracy in the ability to determine its fair value. The 
fair value measurement hierarchy is as follows: 
 
   For Quoted Investments: 
 
   Level 1: quoted prices in active markets for an identical asset. The 
fair value of financial instruments traded in active markets is based on 
quoted market prices at the balance sheet date. A market is regarded as 
active if quoted prices are readily and regularly available, and those 
prices represent actual and regularly occurring market transactions on 
an arm's length basis. The quoted market price used for financial assets 
held is the bid price at the Balance Sheet date. 
 
   Level 2: where quoted prices are not available (or where a stock is 
normally quoted on a recognised stock exchange that no quoted price is 
available), the price of a recent transaction for an identical asset, 
providing there has been no significant change in economic circumstances 
or a significant lapse in time since the transaction took place. The 
Company holds no such investments in the current or prior year. 
 
   For investments not quoted in an active market: 
 
   Level 3: the fair value of financial instruments that are not traded in 
an active market is determined by using valuation techniques. These 
valuation techniques maximise the use of observable data (e.g. the price 
of recent transactions, earnings multiple, discounted cash flows and/or 
net assets) where it is available and rely as little as possible on 
entity specific estimates. 
 
   There has been one transfer between these classifications in the year as 
Mirriad Advertising Limited listed on AIM and is now Mirriad Advertising 
Plc (2017: no change). The change in fair value for the current and 
previous year is recognised in the income statement. 
 
   Income 
 
   Investment income includes interest earned on bank balances and from 
unquoted loan note securities, and dividends.  Fixed returns on debt are 
recognised on a time apportionment basis so as to reflect the effective 
yield, provided it is probable that payment will be received in due 
course.  Dividend income from investments is recognised when the 
shareholders' rights to receive payment have been established, normally 
the ex dividend date. 
 
   Expenses 
 
   All expenses are accounted for on an accruals basis.  Expenses are 
charged wholly to revenue with the exception of the investment 
management fee which has been charged 75% to capital and 25% to revenue. 
Any applicable performance fee will be charged 100% to capital. 
 
   Revenue and Capital 
 
   The revenue column of the Income Statement includes all income and 
revenue expenses of the Company.  The capital column includes gains and 
losses on disposal and holding gains and losses on investments.  Gains 
and losses arising from changes in fair value of investments are 
recognised as part of the capital return within the Income Statement and 
allocated to the appropriate capital reserve on the basis of whether 
they are realised or unrealised at the balance sheet date. 
 
   Taxation 
 
   Current tax is recognised for the amount of income tax payable in 
respect of the taxable profit for the current or past reporting periods 
using the current tax rate. The tax effect of different items of 
income/gain and expenditure/loss is allocated between capital and 
revenue return on the "marginal" basis as recommended in the SORP. 
 
   Deferred tax is recognised on an undiscounted basis in respect of all 
timing differences that have originated but not reversed at the balance 
sheet date, except as otherwise indicated. 
 
   Deferred tax assets are only recognised to the extent that it is 
probable that they will be recovered against the reversal of deferred 
tax liabilities or other future taxable profits. 
 
   Financial Instruments 
 
   The Company's principal financial assets are its investments and the 
policies in relation to those assets are set out above.  Financial 
liabilities and equity instruments are classified according to the 
substance of the contractual arrangements entered into. 
 
   An equity instrument is any contract that evidences a residual interest 
in the assets of the entity after deducting all of its financial 
liabilities. Where the contractual terms of share capital do not have 
any terms meeting the definition of a financial liability then this is 
classed as an equity instrument. 
 
   The Company does not have any externally imposed capital requirements. 
 
 
 
   Reserves 
 
   Called up Equity Share Capital - represents the nominal value of shares 
that have been issued. 
 
   Share Premium Account - includes any premiums received on issue of share 
capital. Any transaction costs associated with the issuing of shares are 
deducted from the Share Premium Account. 
 
   Unrealised Capital Reserve arises when the Company revalues the 
investments still held during the period and any gains or losses arising 
are credited/charged to the Unrealised Capital Reserve.  When an 
investment is sold, any balance held on the Unrealised Capital Reserve 
is transferred to the Profit and Loss Reserve as a movement in reserves. 
 
   The Profit and Loss Reserve represents the aggregate of accumulated 
realised profits, less losses and dividends. 
 
   Dividends Payable 
 
   Dividends payable are recognised as distributions in the Financial 
Statements when the Company's liability to make payment has been 
established.  This liability is established for interim dividends when 
they are declared by the Board, and for final dividends when they are 
approved by the Shareholders. 
 
   2. Investment Income 
 
 
 
 
                        Year Ended         Year Ended 
                      28 February 2018   28 February 2017 
                          GBP'000            GBP'000 
Dividends received                   -                 68 
Total                                -                 68 
 
 
 
 
   3.  Investment Management Fees 
 
   Expenses are charged wholly to revenue with the exception of the 
investment management fee which has been charged 75% to capital in line 
with industry practice. 
 
 
 
 
                               Year Ended         Year Ended 
                             28 February 2018   28 February 2017 
                                 GBP'000            GBP'000 
Investment management fee                  60                 77 
Total                                      60                 77 
 
 
   In the year to 28 February 2018 the manager received a fee of 1% of the 
net asset value as at the previous year end (2017: 1%). Oxford 
Technology Management is also entitled to certain monitoring fees from 
investee companies and the Board reviews the amounts. OTM also received 
a further GBP27k in both years, the payment of which had been deferred 
from previous years. This was part of the revised agreement, with effect 
from 1 March 2015. No further liability is payable as at 28 February 
2018. 
 
   A performance fee is payable to the Investment Manager once original 
shareholders have received a specified threshold in cash for each 100p 
(gross) invested.  The original threshold of 100p has been increased by 
compounding that portion that remains to be paid to shareholders by 6% 
per annum with effect from 1 March 2015, resulting in the remaining 
required threshold rising to 76.1p at 28 February 2018, corresponding to 
a total shareholder return of 113.1p after taking into account the 37p 
already paid out (37p + 76.1p = 113.1p). 
 
   After this amount has been distributed to shareholders, each extra 100p 
distributed goes 80p to the shareholders and 20p to the beneficiaries of 
the performance incentive fee, of which Oxford Technology Management 
receives 15p. No performance fee has become due or been paid to date. 
Any applicable performance fee will be charged 100% to capital. 
 
   Expenses are capped at 3%, including the management fee but excluding 
Directors' fees and any performance fee. 
 
   4. Other Expenses 
 
   All expenses are accounted for on an accruals basis.  All expenses are 
charged through the income statement except as follows: 
 
   --    those expenses which are incidental to the acquisition of an 
investment are included within the cost of the investment; 
 
   --     expenses which are incidental to the disposal of an investment 
are deducted from the disposal proceeds of the investment. 
 
 
 
 
                             Year Ended         Year Ended 
                           28 February 2018   28 February 2017 
                               GBP'000            GBP'000 
Directors' remuneration                  21                 21 
Auditors' remuneration                    6                  6 
Other expenses                           29                 27 
Total                                    56                 54 
 
 
   5. Tax on Ordinary Activities 
 
   Corporation tax payable at 19.1% (2017: 20.0%) is applied to profits 
chargeable to corporation tax, if any.  The corporation tax charge for 
the period was GBPnil (2017: GBPnil) 
 
 
 
 
                                             Year Ended         Year Ended 
                                           28 February 2018   28 February 2017 
                                               GBP'000            GBP'000 
Return on ordinary activities before tax              (695)            (1,718) 
Current tax at standard rate of taxation              (133)              (344) 
UK dividends not taxable                                  -               (14) 
Unrealised losses not taxable                           111                333 
Realised gains not taxable                                -                (2) 
Excess management expenses carried 
 forward                                                 22                 27 
Total current tax charge                                  -                  - 
 
 
   Unrelieved management expenses of GBP2,134,147 (2017: GBP2,023,217) 
remain available for offset against future taxable profits. 
 
   6. Earnings per Share 
 
   The calculation of earnings per share (basic and diluted) for the period 
is based on the net loss of GBP695,000 (2017: loss of GBP1,718,000) 
attributable to shareholders divided by the weighted average number of 
shares 11,516,946 (2017: 11,516,946) in issue during the period. 
 
   There are no potentially dilutive capital instruments in issue and, 
therefore, no diluted returns per share figures are relevant.  The basic 
and diluted earnings per share are therefore identical. 
 
   7. Investments 
 
 
 
 
                 AIM quoted investments  Unquoted investments       Total 
                         Level 1                Level 3          investments 
                         GBP'000                GBP'000            GBP'000 
Valuation and 
net book 
amount: 
Book cost as at 
 28 February 
 2017                               225                 6,224            6,449 
Cumulative 
 revaluation                      1,122               (2,000)            (878) 
Valuation at 28 
 February 2017                    1,347                 4,224            5,571 
Movement in the 
year: 
Purchases at 
 cost                                 -                   149              149 
Quoted in the 
 year                                31                  (31)                - 
Revaluation in 
 year                               260                 (839)            (579) 
Valuation at 28 
 February 2018                    1,638                 3,503            5,141 
Book cost at 28 
 February 2018                      225                 6,373            6,598 
Cumulative 
 revaluation to 
 28 February 
 2018                             1,413               (2,870)          (1,457) 
Valuation at 28 
 February 2018                    1,638                 3,503            5,141 
 
   Subsidiary Company 
 
   The Company also holds 100% of the issued share capital of OT4 Managers 
Ltd at a cost of GBP1. 
 
   Results of the subsidiary undertaking for the year ended 28 February 
2018 are as follows: 
 
 
 
 
          Country of    Nature of   Turnover     Retained profit/loss  Net Assets 
          Registration  Business 
OT4       England and   Investment 
Managers  Wales         Manager       GBP59,754           GBP0             GBP1 
Ltd 
 
 
   Consolidated group Financial Statements have not been prepared as the 
subsidiary undertaking is not considered to be material for the purpose 
of giving a true and fair view.  The Financial Statements therefore 
present only the results of Oxford Technology 4 VCT plc, which the 
Directors also consider is the most useful presentation for 
Shareholders. 
 
 
 
   8.  Debtors 
 
 
 
 
                                            28 February 2018  28 February 2017 
                                                 GBP'000           GBP'000 
Prepayments, accrued income & other 
 debtors                                                   2                 2 
Total                                                      2                 2 
 
 
   9. Creditors - amounts falling due in less than 1 year 
 
 
 
 
                                                 28 February 2018  28 February 2017 
                                                      GBP'000           GBP'000 
Other creditors                                                10                 7 
Investment management fee accrual 
 (All deferred fees now fully paid at 28/2/18)                  -                27 
Total                                                          10                34 
 
 
   10. Share Capital 
 
 
 
 
                                                       28 February 2018  28 February 2017 
                                                            GBP'000           GBP'000 
Authorised: 
15,000,000 ordinary shares of 10p each                            1,500             1,500 
Total Authorised                                                  1,500             1,500 
Allotted, called up and fully paid: 
11,516,946 (2017: 11,516,946) ordinary shares of 10p 
 each                                                             1,152             1,152 
 
 
 
   11.   Reserves 
 
   When the Company revalues its investments during the period, any gains 
or losses arising are credited/charged to the Income Statement.  Changes 
in fair value of investments are then transferred to the Unrealised 
Capital Reserve.  When an investment is sold any balance held on the 
Unrealised Capital Reserve is transferred to the Profit and Loss Account 
Reserve as a movement in reserves. 
 
   Distributable reserves are GBP3,315,000 at 28 February 2018 (2017: 
GBP4,010,000). 
 
   Reconciliation of Movement in Shareholders' Funds 
 
 
 
 
                                          28 February 2018  28 February 2017 
                                               GBP'000           GBP'000 
Shareholders' funds at start of year                 5,975             7,693 
Return on ordinary activities after tax              (695)           (1,718) 
Shareholders' funds at end of year                   5,280             5,975 
 
 
   12.  Financial Instruments and Risk Management 
 
   The Company's financial instruments comprise equity and loan note 
investments, cash balances and debtors and creditors.  The Company holds 
financial assets in accordance with its investment policy of investing 
mainly in a portfolio of VCT - qualifying quoted and unquoted securities 
whilst holding a proportion of its assets in cash or near cash 
investments in order to provide a reserve of liquidity.  The risk faced 
by these instruments, such as interest rate risk or liquidity risk is 
considered to be minimal due to their nature.  All of these are carried 
in the accounts at fair value. 
 
   The Company's strategy for managing investment risk is determined with 
regard to the Company's investment objective.  The management of market 
risk is part of the investment management process and is a central 
feature of venture capital investment.  The Company's portfolio is 
managed with regard to the possible effects of adverse price movements 
and with the objective of maximising overall returns to shareholders. 
Investments in unquoted companies, by their nature, usually involve a 
higher degree of risk than investments in companies quoted on a 
recognised stock exchange, though the risk can be mitigated to a certain 
extent by diversifying the portfolio across business sectors and asset 
classes, though VCT rules limit the extent to which suitable Qualifying 
Investments can be bought or sold.  The overall disposition of the 
Company's assets is regularly monitored by the Board. 
 
   13. Capital Commitments 
 
   The Company had no commitments at 28 February 2018 or 28 February 2017. 
 
   14.  Related Party Transactions 
 
 
 
   OT4 Managers Ltd, a wholly owned subsidiary, provides investment 
management services to the Company with effect from 1 July 2015 for a 
fee of 1% of net assets per annum.  During the year, GBP59,754 was paid 
in respect of these fees (2017: GBP76,934).  No amounts were outstanding 
at the year end. 
 
   15.  Events after the Balance Sheet Date 
 
   During March 2018, 208,857 Castleton shares were sold at 72p per share, 
raising approximately GBP150,000. 
 
   A commitment  of  GBP57,000 was made into ImmBio in April 2018. 
 
   Company Number: 5038854 
 
   Note to the announcement: 
 
   The financial information set out in this announcement does not 
constitute statutory accounts as defined in the Companies Act 2006 ("the 
Act").  The balance sheet as at 28 February 2018, income statement and 
cash flow statement for the period then ended have been extracted from 
the Company's 2018 statutory financial statements upon which the 
auditor's opinion is unqualified and does not include any statement 
under the section 495 of the Act. 
 
   The Annual Report and Accounts for the year ended 28 February 2018 will 
be filed with the Registrar of Companies. 
 
   Copies of the documents will be submitted to the National Storage 
Mechanism and are available for inspection at: 
http://www.mornningstar.co.uk/uk/NSM 
 
   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: Oxford Technology 4 VCT plc via Globenewswire 
 
 
  http://www.oxfordtechnology.com 
 

(END) Dow Jones Newswires

May 03, 2018 02:01 ET (06:01 GMT)

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

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