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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Triple Point Income Vct Plc | LSE:TPVC | London | Ordinary Share | GB00BGSH2G43 | C ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 2.00 | 1.00 | 3.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMTPVE TIDMTTM TIDMTPVD TIDMTPVC
RNS Number : 2739U
Triple Point Inc VCT - TPVE
21 November 2019
Triple Point Income VCT plc
Interim Results
The Directors of Triple Point Income VCT plc are pleased to announce its Interim results for the six months to 30 September 2019.
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
Triple Point Investment Management Tel: 020 7201 8989 LLP (Investment Manager) Ben Beaton Belinda Thomas
The Company's LEI is 213800IXD8S5WY88L245
Further information on the Company can be found on its website https://www.triplepoint.co.uk/current-vcts/triple-point-income-vct-plc/s1238/.
Unaudited Interim Financial Report - Financial Summary
6 months ended 30 September 2019 Unaudited Ord Shares A Shares C Shares D Shares E Shares Total Net assets GBP'000 - - 17,851 15,557 29,340 62,748 Net asset value per share Pence - - 132.80p 113.54p 101.35p n/a ----------------------- ---------- ------------ ---------- ---------- ---------- ---------- -------- Net profit/(loss) before tax GBP'000 - - 459 203 (333) 329 Earnings/(loss) per share Pence - - 3.22p 1.20p (1.21p) n/a ----------------------- ---------- ------------ ---------- ---------- ---------- ---------- -------- Cumulative return to shareholders (p) Net asset value per share - - 132.80 113.54 101.35 Dividends paid 98.87 99.99 20.00 15.00 - ---------- Net asset value plus dividends paid 98.87 99.99 152.80 128.54 101.35 ----------------------------------- ------------ ---------- ---------- ---------- ---------- -------- Year ended 31 March 2019 Audited Ord Shares A Shares C Shares D Shares E Shares Total Net assets GBP'000 - - 18,088 16,077 29,691 63,856 Net asset value per share Pence - - 134.58p 117.34p 102.56p n/a ----------------------- ---------- ------------ ---------- ---------- ---------- ---------- -------- Net profit before tax GBP'000 35 - 3,652 2,083 1,263 7,033 Earnings per share Pence 0.07p - 26.74p 14.36p 4.24p n/a ----------------------- ---------- ------------ ---------- ---------- ---------- ---------- -------- Cumulative return to shareholders (p) Net asset value per share - - 134.58 117.34 102.56 Dividends paid 97.87 99.99 15.00 10.00 - ---------- Net asset value plus dividends paid 97.87 99.99 149.58 127.34 102.56 ----------------------------------- ------------ ---------- ---------- ---------- ---------- -------- 6 months ended 30 September 2018 Unaudited Ord Shares A Shares C Shares D Shares E Shares Total Net assets GBP'000 986 - 15,032 14,363 28,758 59,139 Net asset value per share Pence 5.07p - 111.83p 104.82p 99.34p n/a ----------------------- ---------- ------------ ---------- ---------- ---------- ---------- -------- Net profit before tax GBP'000 16 - 572 312 306 1,206 Earnings per share Pence 0.07p - 3.99p 1.84p 1.02p n/a ----------------------- ---------- ------------ ---------- ---------- ---------- ---------- -------- Cumulative return to shareholders (p) Net asset value per share 5.07 - 111.83 104.82 99.34 Dividends paid 93.80 99.99 15.00 10.00 - Net asset value plus dividends paid 98.87 99.99 126.83 114.82 99.34 ----------------------------------- ------------ ---------- ---------- ---------- ---------- --------
Triple Point Income VCT plc ("the Company") is a Venture Capital Trust ("VCT"). The Investment Manager is Triple Point Investment Management LLP ("TPIM" and "Triple Point"). The Company was incorporated in November 2007.
-- C Ordinary Shares: these are the shares issued in the Offer that closed on 27 May 2014. A total of GBP14.0 million was raised and 13,441,438 C Shares were issued.
-- D Ordinary Shares: these are the shares issued in the Offer that closed on 30 April 2015. A total of GBP14.3 million was raised and 13,701,636 D Shares were issued.
-- E Ordinary Shares: these are the shares issued in the Offer that closed on 15 May 2017. Just under GBP30 million was raised and 28,949,575 E Shares were issued.
Unaudited Interim Financial Report - Chairman's Statement
I am pleased to present the Interim Financial Report for the Company for the period ended 30 September 2019.
Investment Portfolio
The Company's funds at 30 September 2019 are invested in a portfolio of VCT qualifying and non-qualifying quoted and unquoted investments. At 30 September 2019 the Company continues to meet the condition that at least 70% by value of the Company's investments are represented by qualifying holdings.
Legislation introduced through the Finance Act 2018 will begin to apply to the Company from 1 April 2020, implementing an increase to the qualifying test to 80%. The Investment Manager monitors this ratio closely and the Board is confident that the Company will meet the new requirement when it comes into effect for the Company.
The Company continues to satisfy all other tests relevant to its status as a Venture Capital Trust.
The Investment Manager's review on pages 5 to 10 gives an update on the portfolio of investments in 17 small unquoted businesses and 1 quoted Real Estate Investment Trust.
C Share Class
The C Share Class has investments in three companies in the Hydroelectric power sector, which between them own six hydroelectric schemes in the Scottish Highlands. All schemes have been successfully commissioned and are operating in line with expectations. The last quarter has seen good performance with all schemes outperforming their targets.
The C Share Class has also invested in companies which provide SME funding in the Hydroelectric power sector.
I am pleased to report the C Share Class has recorded a profit over the period of 3.22p per share. At 30 September 2019 the net asset value stood at 132.80p per share. Adding back the total dividends paid to date takes the total return, including the net asset value, to 152.80p per share.
The target for the C Share Class is to return 100.00p per share by the end of year six, comprising the income tax rebate, four annual tax-free dividends of an average 5p per share, followed by a partial realisation of 50.00p. Thereafter an ongoing dividend of 3.50p per annum is targeted for a further nine years and a final capital realisation of c 50p per share in 2029 following the sale of the VCTs hydro project's.
During the period the Company paid a fourth dividend to C Class Shareholders of GBP672,072, equal to 5.00p per share. This brings total dividends to date to 20.00p per share. This is in line with the original target for the C Share Class.
The Board is pleased to announce that a special dividend of 21.00p per share will be paid to C Shareholders on 19 December 2019 to shareholders on the register on 29 November 2019. This distribution contributes significantly to the partial realisation target.
D Share Class
The D Share Class has investments in five companies in the Hydroelectric power sector, which between them own six hydroelectric schemes in the Scottish Highlands. All schemes have now been commissioned and are now operating in line with expectations. The D Share Class has also invested in a company which provides SME funding to the Hydroelectric power sector.
The target for the D Share Class is to return 100.00p per share by the end of year six, comprising the income tax rebate, four annual tax-free dividends of an average 5p per share, followed by a partial realisation of 50.00p. Thereafter an ongoing dividend of 3.50p per annum is targeted for a further nine years and a final capital realisation of c 50p per share in 2030 following the sale of the VCTs hydro projects.
I am pleased to report that the D Share Class has recorded a profit over the period of 1.20p per share. At 30 September 2019 the net asset value stood at 113.54p per share. Adding back the total dividends paid takes the total return, including the net asset value, to 128.54p per share.
During the period the Company paid a third dividend to D Class Shareholders of GBP685,082, equal to 5.00p per share. This brings total dividends to date to 15.00p per share which continues to be in line with the original target for the D Share Class.
E Share Class
The E Share Class holds a diverse portfolio of investments spanning sectors such as gas power, solar and vertical growing. Further information about these investments and sectors can be found in the Investment Manager's Review starting on page 5.
During the period, the construction of a pioneering Vertical Growing facility was completed. Following delays during the construction process, the first crop is expected to be delivered during the fourth quarter of 2019.
The E Share Class also has a non-qualifying investment of GBP5.4m in Triple Point Social Housing REIT plc ("REIT"). This investment generates income from a widespread portfolio of long term, inflation linked, specialised supported housing property leases and is targeting a regular dividend to its investors of 5.00p per share per annum rising in line with inflation. Further information on this investment is included in the Investment Manager's Review on pages 5 to 10.
The E Share Class recorded a loss over the period of 1.21p per share as a result of revaluation of investments. At 30 September 2019 the net asset value stood at 101.35p per share.
Specific Risks
The Board believe that the specific risks facing the Company are:
-- Compliance risk of failure to maintain approval as a qualifying VCT;
-- Investment risk associated with the VCT's portfolio of unquoted investments, including the inability to invest funds raised and the inability to realise funds to facilitate return to investors;
-- Financial risk of investing on a medium to long-term basis; and -- Risk of failure of internal controls.
The Board believes these risks are manageable and, with the Investment Manager, continues to work to minimise either the likelihood or potential impact of these risks within the scope of the Company's established investment strategy.
Outlook
The investment portfolio of the Company continues to operate well with much of the portfolio being in companies which are mature and profitable, providing attractive income returns.
One of the Company's objectives is a partial realisation of the C and D Share Class after 5 years. The Board and the Investment Manager are now working towards investment structuring to enable funding of the target distribution as well as continuing to optimise the portfolio owned by the E Shareholders.
The Board and Investment Manager continue to monitor and discuss the possible impact of Brexit on the underlying portfolio to identify the principal areas of risk. We are continuing to monitor the ongoing Brexit negotiations and will take mitigating action where necessary and when required to do so.
If you have any questions or comments, please do not hesitate to contact Triple Point on 020 7201 8989.
David Frank
Chairman
21 November 2019
Unaudited Interim Financial Report - Investment Manager's Review
Sector Analysis
The unquoted investment portfolio can be analysed as follows:
Electricity Generation SME Funding ------------- ---------------------------- -------------------------- Other Industry Crematorium Vertical Hydroelectric Electric Hydroelectric Quoted Total Sector Management Growing Power Power Power Other* Investments Investments ------------- ---------- --------------- ----------- --------------- --------- GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ------------- ---------- --------------- ----------- --------------- --------- ------------- ------------- Investments at 1 April 2019 ------------- ---------- --------------- --------------- --------- ------------- ------------- C Shares - - 14,527 - 2,888 - - 17,415 D Shares - - 13,529 - 1,206 - - 14,735 E Shares 103 5,000 2,875 7,862 750 2,297 5,901 24,788 Total 103 5,000 30,931 7,862 4,844 2,297 5,901 56,938 ---------- Investments realised during the period ------------- ---------- --------------- --------------- --------- ------------- ------------- C Shares - - (35) - - - - (35) D Shares - - (2,717) - - - - (2,717) E Shares - - (25) - - - - (25) ------------- - - (2,777) - - - - (2,777) ---------- Investments valued during the period ------------- ---------- --------------- --------------- --------- ------------- ------------- E Shares - - - - - - (448) (448) ------------- - - - - - - (448) (448) ---------- Investments at 30 September 2019 C Shares - - 14,492 - 2,888 - - 17,380 D Shares - - 10,812 - 1,206 - - 12,018 E Shares 103 5,000 2,850 7,862 750 2,297 5,453 24,315 Total 103 5,000 28,154 7,862 4,844 2,297 5,453 53,713 Total investments % 0.19% 9.31% 52.44% 14.64% 9.02% 4.28% 10.14% 100.00% ------------- ---------- --------------- --------------- ------------- -------------
* Other SME funding includes GBP2,297,000 of E Ordinary Share Class investment into a UK based LLP which provides finance to small and medium sized enterprises.
C Share Class
Hydroelectric power - 83%
SME Funding (hydroelectric power) - 17%
D Share Class
Hydroelectric power - 90%
SME Funding (hydroelectric power) - 10%
E Share Class
Crematorium Management - 1%
Vertical Growing - 21%
Quoted Investments - 22%
Hydroelectric power - 12%
SME Funding (hydroelectric power) - 3%
SME Funding (other) - 9%
Electricity Generation - 32%
The VCT was established to fund small and medium sized enterprises. At 30 September 2019 it had three share classes, each invested in their own portfolio as detailed on page 5. The overall portfolio comprised investments in 17 small, unquoted companies and one quoted Real Estate Investment Trust, across 5 sectors: crematorium management, electricity generation, vertical growing, SME funding and investment property.
At 30 September 2019 the Company continues to meet the condition that at least 70% of relevant funds must be invested in VCT qualifying investments within three years.
Review and Outlook
C Share Class
The Company and the Investment Manager continue to monitor the ongoing operation and efficiency of the C Share Class investments. The C Share Class has investments in three hydroelectric companies which, between them, own six schemes in the Scottish Highlands. Further updates on the Hydroelectric power sector are detailed below.
D Share Class
The D Share Class has investments in five hydroelectric companies which between them own six hydroelectric schemes in the Scottish Highlands. All six schemes have been commissioned and are fully operational. Further updates on the hydroelectric power sector are detailed below.
Hydroelectric Power
The ten hydroelectric schemes are all "run of river" plants and each company benefits from government backed Feed-in Tariff (FiT) payments based on output and from the sale of the electricity produced to utilities or other power companies under Power Purchase Agreements (PPAs). The companies have continued to obtain better power prices than were originally forecast, earning an average of 6.3 pence per kWh compared to the 5 pence per kWh which was projected at the time of investment. The companies have recently renewed their PPA contracts and continue to achieve higher prices than the current available export tariff.
Although rainfall variability is to be expected over the 40-year period of generation which our hydroelectric companies are expected to experience, overall, we continue to be pleased with the efficiency of the hydroelectric schemes owned by them. The hydroelectric companies remain highly focussed on improving efficiencies and maximising output and are working alongside hydro experts to further enhance performance.
During the 6 months to 30 September 2019, the hydroelectric companies generated 7,880 MWh of electricity. Based on an average of 3.8 MWh annual use per household, the hydroelectric companies generated enough electricity for 4,147 homes during the period.
Industry Update
The hydroelectric companies, together with other industry members and the British Hydropower Association, are continuing to lobby the Scottish Government to recognise the concern on business rates in the hydro sector. For the financial year 2019/20, the hydroelectric companies received a 60% relief and it is expected that this relief will continue to be applied each year until such time as the Scottish Government addresses the issue of the business rates in the hydro sector.
An update from the Scottish Government is expected sometime in the near future.
In July 2018, the government announced the end of the FiT scheme for renewable energy from 31 March 2019. All businesses that already have FiT registrations will continue to receive payments for the remainder of their agreement. Therefore, as the companies entered in to 20-year agreements prior to this announcement, the seven hydroelectric companies are unaffected by this change.
E Share Class
The E Share Class has successfully deployed 83% of its funds into various investments in a diverse range of sectors. Further information on these sectors is detailed below.
Going forward, the Company and the Investment Manager are focused on ensuring that the remaining funds are invested in line with the Company's strategy and the requirements of the VCT legislation.
Crematorium Management
The Company has an investment in a business that provides crematory and mercury abatement services for the crematoria of a London Borough. This investment receives revenues from local authorities and has consistently generated a steady return over the years it has been held.
Solar
The Company holds an investment in four portfolios of rooftop solar PV systems through the following investee companies:
-- Green Energy for Education Limited ("GEFE"), which owns a portfolio of 120 systems on residential rooftops in Luton;
-- Campus Link Limited ("CMP"), which owns a portfolio of 36 systems on residential rooftops in south west England;
-- Digima ("DIG") Limited, which owns a portfolio of 82 systems on residential rooftops in East Anglia; and
-- Digital Screen Solutions ("DSS") Limited, which owns a portfolio of 324 systems on residential rooftops in Northern Ireland.
After a successful review and intervention to improve performance at the DIG portfolio, all four portfolios are now performing in line with or exceeding expectations.
Hydroelectric Power
The E Share Class has investments in two companies which own, either directly or indirectly, hydroelectric schemes in the Scottish Highlands. Further updates on this sector are detailed above.
Vertical Growing
The E Share Class has invested in Perfectly Fresh Cheshire Ltd, a company which has constructed a pioneering vertical growing facility. Vertical Growing is the practice of producing food in an indoor growing amenity where all inputs (water, light and nutrients) meet the optimum needs of the crop. Vertical Growing facilities are designed to have a sealed environment, meaning that the product is grown in a controlled manner, with positive air pressure to prevent any contaminants entering the facility. This ensures that insects and other pests cannot access the crop, thus removing the need to use pesticides on the crop being grown. A large variety of produce can be grown including herbs and salad leaves.
Expert in horticulture, Perfectly Fresh has recently expanded their growing facilities to cater for a growing number of customers, including two of the UKs largest supermarket brands.
Its operations currently span over 1,100 square metres and are a pioneering example of the latest technology being harnessed to meet the growing needs of an ever-expanding population.
Since the end of the period production has recently commenced.
Gas Power
The Company has an investment in Green Peak Generation Ltd which has constructed a gas fired energy centre that provides a reliable and secure energy supply. The energy centre was commissioned during May 2018 and it consists of containerised gas combustion engines that generate electricity for onward sale, especially at times when there is high demand for power.
The energy centre utilises simple technology, provided by Rolls Royce, which can respond rapidly to grid fluctuations to deliver a reliable and secure energy supply.
Gas is purchased from the National Transmission System and combusted in the engines to generate electricity. The electricity is then exported to the grid and sold under a power purchase agreement. The company receives revenues from the sale of electricity and additional income from embedded benefits.
During the six-month period to 30 September 2019, the energy centre generated 8,042 MWh of electricity. Based on an average of 3.8 MWh annual use per household, this was enough electricity for 4,232 homes during the period.
In August 2019, the engine silencers at the energy centre were replaced due to their poor acoustic performance. This replacement was performed at no extra cost to Green Peak Generation Ltd.
Industry Update
The Capacity Market consists of fixed payments to power generators to ensure they are available during periods of high demand. Eligible power generators must bid in an auction process to win a contract. They will then receive the payments in exchange for ensuring the generator is available during the peak demand periods.
On 15 November 2018, the European Court of Justice unexpectedly announced that it did not believe that sufficient work had been undertaken when the European Commission ('EC') approved the UK's Capacity Market scheme, leading to a halt to all payments under the scheme.
The UK's Department for Business, Energy and Industrial Strategy ('BEIS') have indicated they are working closely with the EC to secure approval and have suggested they anticipate securing this approval by the end of 2019 (including making the currently frozen Capacity Market payments). As the expected impact of this announcement is only a delay in payments which will be received by the projects, it is not anticipated that this will have a material impact on investor returns, but there is currently uncertainty over the timing of when these revenues will be received.
In addition, Ofgem completed its review of embedded benefits available to small generators and announced certain planned changes. If these changes are implemented, they are expected to have a minor negative impact on investor returns.
Non-Qualifying Investments
Real Estate Investment Trust ("REIT")
Triple Point Social Housing REIT plc invests in social housing assets within the UK, in particular homes in the supported housing sector. These homes are adapted to provide care and support to vulnerable tenants with specific requirements, providing tenants with greater independence than institutional care accommodation. The REIT has a portfolio of properties which benefit from long-term index linked leases of at least twenty years to Approved Providers, such as housing associations, who are bodies that receive their funding from central and local government. Through these long leases it is able to offer its shareholders an attractive and consistent level of inflation-linked income.
The net asset value per share of the REIT as at 30 September 2019 was 104.47p. The REIT has continued to deliver an index linked dividend yield of 5 pence per share which is paid quarterly. Shares in the REIT are listed on the London Stock Exchange and are valued at the closing price on the balance sheet date. Along with other funds in this sector the REIT continues to trade at a discount to NAV. This has resulted in a downward valuation and contributed to the loss during the period.
SME Funding
The Company has non-qualifying investments in four companies which provide finance to small and medium size businesses. Two of these companies are non-bank SME lending businesses which aim to address the financing needs of the UK SME market by providing business critical loans and asset finance to over 60,000 UK Corporate and SME customers. The remaining two companies provide finance in the hydroelectric power sector.
Brexit
The Investment Manager and the Board continue to keep the possible impact of Brexit on the Company under review. The Company's strategy of investing in small UK based businesses means that it is unlikely to be directly exposed to the terms of an exit from the EU. We are, however, going through a period of some political and, potentially, economic uncertainty. We believe that by investing carefully, monitoring our portfolio rigorously and providing support to the businesses in which we have invested we can minimise the effects of this uncertainty.
UN Sustainable Development Goals
The United Nation's Sustainable Development Goals set the blueprint for achieving a better and more sustainable future, globally. The Goals interconnect so that nobody is left behind and set a target of being achieved by 2030.
Triple Point shares the view that in order to achieve long-term business success, people from around the world should be able to live in a way that is not detrimental to our environment, does not excessively deplete scarce resources, and is positive for their own communities.
If you have any questions, please do not hesitate to call us on 020 7201 8989.
Ben Beaton
Partner
for Triple Point Investment Management LLP
21 November 2019
Unaudited Interim Financial Report - Investment Portfolio
Unaudited Audited 30 September 2019 31 March 2019 ---------------------------------------- ---------------------------------------- Cost Valuation Cost Valuation GBP'000 % GBP'000 % GBP'000 % GBP'000 % Unquoted qualifying holdings 30,995 57.78 39,813 64.36 33,704 61.90 42,523 67.37 Quoted non-qualifying holdings 6,001 11.19 5,453 8.81 6,001 11.02 5,901 9.35 Unquoted non-qualifying holdings 8,497 15.83 8,447 13.66 8,563 15.72 8,513 13.48 Financial assets at fair value through profit or loss 45,493 84.80 53,713 86.83 48,268 88.64 56,937 90.20 Cash and cash equivalents 8,151 15.20 8,151 13.17 6,188 11.36 6,188 9.80 53,644 100.00 61,864 100.00 54,456 100.00 63,125 100.00 ========= ======== ========= ======== ========= ======== ========= ======== Qualifying Holdings Unquoted Solar Digima Ltd 1,262 2.35 1,612 2.61 1,262 2.32 1,612 2.55 Digital Screen Solutions Ltd 2,020 3.77 2,658 4.30 2,020 3.71 2,658 4.21 Green Energy for Education Ltd 475 0.89 1,127 1.82 475 0.87 1,127 1.79 Hydro Electric Power Elementary Energy Ltd 2,060 3.84 2,409 3.89 2,060 3.78 2,409 3.82 Green Highland Allt Choire A Bhalachain (225) Ltd 3,130 5.83 3,642 5.89 3,130 5.75 3,642 5.77 Green Highland Allt Garbh Ltd - - - - 2,710 4.98 2,710 4.29 Green Highland Allt Ladaidh (1148) Ltd 3,500 6.52 5,010 8.10 3,500 6.43 5,010 7.94 Green Highland Allt Luaidhe (228) Ltd 1,996 3.72 2,407 3.89 1,995 3.66 2,407 3.81 Green Highland Allt Phocachain (1015) Ltd 3,932 7.33 4,871 7.87 3,932 7.22 4,871 7.72 Green Highland Shenval Ltd 1,120 2.09 797 1.29 1,120 2.06 797 1.26 Green Highland Renewables (Achnacarry) Ltd 4,300 8.02 7,857 12.70 4,300 7.90 7,857 12.45 Gas Power Green Peak Generation Ltd 2,200 4.10 2,423 3.92 2,200 4.04 2,423 3.84 Vertical Growing Perfectly Fresh Cheshire Ltd 5,000 9.32 5,000 8.08 5,000 9.18 5,000 7.92 30,995 57.78 39,813 64.36 33,704 61.90 42,523 67.37 ========= ======== ========= ======== ========= ======== ========= ======== Unaudited Audited 30 September 2019 31 March 2019 -------------------------------------- -------------------------------------- Cost Valuation Cost Valuation Non-Qualifying Holdings GBP'000 % GBP'000 % GBP'000 % GBP'000 % Quoted Investment property TP Social Housing REIT Plc Equity 6,001 11.19 5,453 8.81 6,001 11.02 5,901 9.35 6,001 11.19 5,453 8.81 6,001 11.02 5,901 9.35 ========= ======= ========= ======= ========= ======= ========= ======= Unquoted Crematorium Management Furnace Managed Services Ltd 486 0.91 93 0.15 496 0.91 103 0.16 Hydroelectric Power Elementary Energy Ltd 233 0.43 233 0.38 248 0.46 248 0.39 Green Highland Allt Choire A Bhalachain (225) Ltd 281 0.52 281 0.45 289 0.53 289 0.46 Green Highland Allt Luaidhe (228) Ltd 173 0.32 173 0.28 180 0.33 180 0.29 Green Highland Allt Phocachain (1015) Ltd 116 0.22 116 0.19 122 0.22 122 0.19 Green Highland Renewables (Achnacarry) Ltd 6 0.01 6 0.01 26 0.05 27 0.04 SME Funding Hydroelectric Power: Broadpoint 2 Ltd 2,834 5.28 2,834 4.58 2,834 5.20 2,834 4.49 Broadpoint 3 Ltd 2,010 3.75 2,010 3.25 2,010 3.69 2,010 3.18 Other: Aeris Power Ltd 158 0.29 501 0.81 158 0.29 500 0.79 Funding Path Ltd 2,200 4.10 2,200 3.56 2,200 4.04 2,200 3.49 8,497 15.83 8,447 13.66 8,563 15.72 8,513 13.48 ========= ======= ========= ======= ========= ======= ========= =======
Unaudited Interim Financial Report - Directors' Responsibility Statement
The Directors have elected to prepare the Interim Financial Report for the Company in accordance with International Financial Reporting Standards ("IFRS").
In preparing the Interim Financial Report for the 6 month period to 30 September 2019, the Directors confirm that, to the best of their knowledge, this condensed set of financial statements has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union and that the Chairman's statement on pages 3 and 4 includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8 of the Disclosure and Transparency rules of the United Kingdom's Financial Conduct Authority namely:
a) the Interim Financial Report includes a fair review of important events during the period and their effect on the Financial Statements and a description of specific risks and uncertainties for the remainder of the accounting period;
b) the Interim Financial Report gives a true and fair view in accordance with IFRS of the assets, liabilities, financial position and of the results of the Company for the period and complies with IFRS and the Companies Act 2006;
c) the Interim Financial Report includes a fair review of related party transactions and changes therein. There were no related party transactions for the accounting period; and
d) the Directors believe that the Company has sufficient financial resources to manage its business risks in the current uncertain economic outlook.
The Directors have reasonable expectations that the Company has adequate resources to continue in operational existence for at least the next 12 months. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.
This Interim Financial Report has not been audited or reviewed by the auditors.
David Frank
Chairman
21 November 2019
Unaudited Statement of Comprehensive Income
Unaudited Audited Unaudited 6 months ended Year ended 6 months ended 30 September 30 September 2019 31 March 2019 2018 ------------------------------- ------------------------------- ------------------------------- Note Rev. Cap. Total Rev. Cap. Total Rev. Cap. Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Income Investment income 4 1,563 - 1,563 2,923 - 2,923 1,649 - 1,649 Gain arising on the disposal of investments during the period - - - - 420 420 - - - (Loss)/gain arising on the revaluation of investments at the period end - (448) (448) - 5,049 5,049 - 250 250 Investment return 1,563 (448) 1,115 2,923 5,469 8,392 1,649 250 1,899 --------- --------- --------- --------- --------- --------- --------- --------- --------- Expenses Investment management fees 5 454 151 605 771 257 1,028 400 133 533 Financial and regulatory
costs 24 - 24 37 - 37 20 - 20 General administration 107 - 107 184 - 184 86 - 86 Legal and professional fees 22 - 22 55 - 55 26 - 26 Directors' remuneration 6 28 - 28 55 - 55 28 - 28 Operating expenses 635 151 786 1,102 257 1,359 560 133 693 --------- --------- --------- --------- --------- --------- --------- --------- --------- Profit/(loss) before taxation 928 (599) 329 1,821 5,212 7,033 1,089 117 1,206 Taxation 7 (109) 29 (80) (264) 35 (229) (131) 25 (106) Profit/(loss) after taxation 819 (570) 249 1,557 5,247 6,804 958 142 1,100 --------- --------- --------- --------- --------- --------- --------- --------- --------- Profit and total comprehensive income/(loss) for the period 819 (570) 249 1,557 5,247 6,804 958 142 1,100 --------- --------- --------- --------- --------- --------- --------- --------- --------- Basic and diluted earnings/(loss) per share (pence) Ordinary Share 8 - - - 0.13p (0.06p) 0.07p 0.06p 0.01p 0.07p C Share 8 3.50p (0.28p) 3.22p 5.53p 21.21p 26.74p 4.22p (0.23p) 3.99p D Share 8 1.44p (0.24p) 1.20p 3.93p 10.43p 14.36p 2.02p (0.18p) 1.84p E Share 8 0.52p (1.73p) (1.21p) 0.86p 3.38p 4.24p 0.35p 0.67p 1.02p
The Total column of this statement is the Statement of Comprehensive Income of the Company prepared in accordance with International Financial Reporting Standards (IFRS). The supplementary Revenue Return and Capital 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.This Statement of Comprehensive Income includes all recognised gains and losses.
The accompanying notes are an integral part of this statement.
Unaudited Balance Sheet
Unaudited Audited Unaudited 30 September 31 March 30 September 2019 2019 2018 Note GBP'000 GBP'000 GBP'000 Non-current assets Financial assets at fair value through profit or loss 53,713 56,937 52,289 -------------- ---------- --------------- Current assets Receivables 1,157 1,250 1,383 Cash and cash equivalents 9 8,151 6,188 6,152 9,308 7,438 7,535 -------------- ---------- --------------- Total Assets 63,021 64,375 59,824 -------------- ---------- --------------- Current liabilities Payables and accrued expenses 20 327 490 Current taxation payable 254 193 195 274 520 685 -------------- ---------- --------------- Net Assets 62,747 63,855 59,139 ============== ========== =============== Equity attributable to equity holders of the parent Share capital 10 561 561 756 Share redemption reserve - - 2 Share premium 28,661 28,661 44,968 Special distributable reserve 26,887 26,887 11,370 Capital reserve 5,619 6,189 1,085 Revenue reserve 1,019 1,557 958 Total equity 62,747 63,855 59,139 ============== ========== =============== Shareholders' funds Ordinary Share 11 - - 5.07p C Share 11 132.80p 134.58p 111.83p D Share 11 113.54p 117.34p 104.82p E Share 11 101.35p 102.56p 99.34p
The statements were approved by the Directors and authorised for issue on 21 November 2019 and are signed on their behalf by:
David Frank
Chairman
21 November 2019
The accompanying notes are an integral part of this statement.
Unaudited Statement of Changes in Shareholders' Equity
Special Issued Share Redemption Share Distributable Capital Revenue Capital Reserve Premium Reserve Reserve Reserve Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 6 months ended 30 September 2019 Opening balance 561 - 28,661 26,887 6,189 1,557 63,855 ---------- ------------------ ---------- ---------------- ---------- ---------- ---------- Dividends paid - - - - - (1,357) (1,357) Transactions with owners - - - - - (1,357) (1,357) ---------- ------------------ ---------- ---------------- ---------- ---------- ---------- (Loss)/profit for the period - - - - (570) 819 249 Profit and total comprehensive (loss)/income for the period - - - - (570) 819 249 ---------- ------------------ ---------- ---------------- ---------- ---------- ---------- Balance at 30 September 2019 561 - 28,661 26,887 5,619 1,019 62,747 ========== ================== ========== ================ ========== ========== ========== Capital reserve consists of: Investment holding gains 7,855 Other realised losses (2,236) 5,619 ========== Year ended 31 March 2019 Opening balance 756 2 44,968 23,968 942 582 71,218 ---------- ------------------ ---------- ---------------- ---------- ---------- ---------- Cancellation of shares (195) 195 - - - - - Cancellation of share premium - - (16,307) 16,307 - - - Dividend paid - - - (13,390) - (582) (13,972) Transfer on share redemption - (2) - 2 - - - Repayment of capital - (195) - - - - (195) Transactions with owners (195) (197) (16,307) 2,919 - (582) (14,167) ---------- ------------------ ---------- ---------------- ---------- ---------- ---------- Profit for the year - - - 5,247 1,557 6,804 Profit and total comprehensive income for the year - - - 5,247 1,557 6,804 ---------- ------------------ ---------- ---------------- ---------- ---------- ---------- Balance at 31 March 2019 561 - 28,661 26,887 6,189 1,557 63,855 ========== ================== ========== ================ ========== ========== ==========
Capital reserve consists of: Investment holding gains 8,671 Other realised losses (2,482) 6,189 ========== 6 months ended 30 September 2018 Opening balance 756 2 44,968 23,968 942 582 71,218 ---------- ------------------ ---------- ---------------- ---------- ---------- ---------- Dividend paid - - - (12,597) - (582) (13,179) Transactions with owners - - - (12,597) - (582) (13,179) ---------- ------------------ ---------- ---------------- ---------- ---------- ---------- Profit for the period - - - - 142 958 1,100 Profit and total comprehensive income for the period - - - - 142 958 1,100 ---------- ------------------ ---------- ---------------- ---------- ---------- ---------- Balance at 30 September 2018 756 2 44,968 11,371 1,084 958 59,139 ========== ================== ========== ================ ========== ========== ========== Capital reserve consists of: Investment holding gains 3,505 Other realised losses (2,421) 1,084 ==========
The capital reserve represents the proportion of Investment Management fees charged against capital and realised/unrealised gains or losses on the disposal/revaluation of investments. The unrealised capital reserve, share redemption reserve and share premium reserve are not distributable. The special distributable reserve was created on court cancellation of the share premium account. The revenue, special distributable and realised capital reserves are distributable by way of dividend.
At 30 September the total reserves available for distribution were GBP25,670,000. This consisted of the distributable revenue reserve, net of the realised capital loss, plus the special distributable reserve.
Unaudited Statement of Cash Flows
Unaudited Audited Unaudited 6 months ended Year ended 6 months ended 30 September 31 March 30 September 2019 2019 2018 GBP'000 GBP'000 GBP'000 Cash flows from operating activities Profit before taxation 329 7,033 1,206 (Gain) arising on the disposal of investments during the period - (420) - Loss/(gain) arising on the revaluation of investments at the period end 448 (5,049) (250) Cashflow generated by operations 777 1,564 956 Decrease/(increase) in receivables 93 126 (7) (Decrease)/increase in payables (307) (332) (169) Cash flows from operating activities 563 1,358 -------------- ------------ ---------------- Tax paid (19) (127) (2) Net cash flows from operating activities 544 1,231 778 -------------- ------------ ---------------- Cash flow from investing activities Proceeds of sale of financial assets at fair value through profit or loss 2,776 676 105 Net cash flows from investing activities 2,776 676 105 -------------- ------------ ---------------- Cash flows from financing activities Repayment of capital - (195) - Dividends paid (1,357) (13,972) (13,179) Net cash flows from financing activities (1,357) (14,167) (13,179) -------------- ------------ ---------------- Net decrease/(increase) in cash and cash equivalents 1,963 (12,260) (12,296) ============== ============ ================ Reconciliation of net cash flow to movements in cash and cash equivalents Opening cash and cash equivalents 6,188 18,448 18,448 Net decrease/(increase) in cash and cash equivalents 1,963 (12,260) (12,296) Closing cash and cash equivalents 8,151 6,188 6,152 ============== ============ ================
The accompanying notes are an integral part of this statement.
Non-Statutory Analysis - The C Share Fund
Statement of Comprehensive Income Unaudited Audited 6 months ended Year ended 30 September 2019 31 March 2019 ------------------------------- ------------------------------- Revenue Capital Total Revenue Capital Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Investment income 692 - 692 1,127 - 1,127 Unrealised gain on investments - - - - 2,913 2,913 Investment return 692 - 692 1,127 2,913 4,040 Investment management fees (164) (46) (210) (273) (76) (349) Other expenses (23) - (23) (39) - (39) Profit/(loss) before taxation 505 (46) 459 815 2,837 3,652 Taxation (33) 9 (24) (72) 14 (58) Profit/(loss) after taxation 472 (37) 435 743 2,851 3,594 --------- --------- --------- --------- --------- --------- Profit and total comprehensive income/(loss) for the period 472 (37) 435 743 2,851 3,594 --------- --------- --------- --------- --------- --------- Basic and diluted earnings/(loss) per share 3.50p (0.28p) 3.22p 5.53p 21.21p 26.74p --------- --------- --------- --------- --------- --------- Balance Sheet 6 months ended Year ended 30 September 2019 31 March 2019 GBP'000 GBP'000 Non-current assets Financial assets at fair value through profit or loss 17,380 17,415 --------- --------- Current assets Receivables 160 83 Cash and cash equivalents 411 759 571 842 Current liabilities Payables (11) (103) Corporation tax (89) (66) --------- --------- Net assets 17,851 18,088 --------- --------- Equity attributable to equity holders 17,851 18,088 --------- --------- Net asset value per share 132.80p 134.58p
--------- --------- Statement of Changes in 6 months ended Year ended Shareholders' Equity 30 September 2019 31 March 2019 GBP'000 GBP'000 Opening shareholders' funds 18,088 15,166 Profit for the period 435 3,594 Dividends paid (672) (672) Closing shareholders' funds 17,851 18,088 --------- --------- Unaudited Audited Investment Portfolio 30 September 2019 31 March 2019 ---------------------------------------- ---------------------------------------- Cost Valuation Cost Valuation GBP'000 % GBP'000 % GBP'000 % GBP'000 % Unquoted qualifying holdings 9,430 71.80 14,089 79.19 9,430 69.78 14,089 77.52 Unquoted non-qualifying holdings 3,291 25.06 3,291 18.49 3,325 24.60 3,326 18.30 Financial assets at fair value through profit or loss 12,721 96.86 17,380 97.68 12,755 94.38 17,415 95.82 Cash and cash equivalents 411 3.14 411 2.32 759 5.62 759 4.18 13,132 100.00 17,791 100.00 13,514 100.00 18,174 100.00 ========= ======== ========= ======== ========= ======== ========= ======== Qualifying Holdings Unquoted Hydroelectric Power Green Highland Allt Choire A Bhalachain (225) Ltd 3,130 23.83 3,642 20.47 3,130 23.16 3,642 20.04 Green Highland Allt Phocachain (1015) Ltd 2,000 15.23 2,590 14.56 2,000 14.80 2,590 14.25 Green Highland Renewables (Achnacarry) Ltd 4,300 32.74 7,857 44.16 4,300 31.82 7,857 43.23 9,430 71.80 14,089 79.19 9,430 69.78 14,089 77.52 ========= ======== ========= ======== ========= ======== ========= ======== Non-Qualifying Holdings Unquoted Hydroelectric Power Green Highland Allt Choire A Bhalachain (225) Ltd 281 2.14 281 1.58 289 2.14 289 1.59 Green Highland Allt Phocachain (1015) Ltd 116 0.88 116 0.65 122 0.90 122 0.67 Green Highland Renewables (Achnacarry) Ltd 6 0.05 6 0.03 26 0.19 27 0.15 SME Funding Hydroelectric Power: Broadpoint 2 Ltd 2,084 15.87 2,084 11.71 2,084 15.42 2,084 11.47 Broadpoint 3 Ltd 804 6.12 804 4.52 804 5.95 804 4.42 3,291 25.06 3,291 18.49 3,325 24.60 3,326 18.30 ========= ======== ========= ======== ========= ======== ========= ========
Non-Statutory Analysis - The D Share Fund
Statement of Comprehensive Income Unaudited Audited 6 months ended Year ended 30 September 2019 31 March 2019 ------------------------------- ------------------------------- Revenue Capital Total Revenue Capital Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Investment income 411 - 411 919 - 919 Unrealised gain on investments - - - - 1,475 1,475 Investment return 411 - 411 919 1,475 2,394 Investment management fees (145) (40) (185) (215) (58) (273) Other expenses (23) - (23) (38) - (38) Profit/(loss) before taxation 243 (40) 203 666 1,417 2,083 Taxation (46) 8 (38) (126) 11 (115) Profit/(loss) after taxation 197 (32) 165 540 1,428 1,968 --------- --------- --------- --------- --------- --------- Profit and total comprehensive income/(loss) for the period 197 (32) 165 540 1,428 1,968 --------- --------- --------- --------- --------- --------- Basic and diluted earnings/(loss) per share 1.44p (0.24p) 1.20p 3.93p 10.43p 14.36p --------- --------- --------- --------- --------- --------- Balance Sheet 6 months ended Year ended 30 September 2019 31 March 2019 GBP'000 GBP'000 Non-current assets Financial assets at fair value through profit or loss 12,018 14,735 --------- --------- Current assets Receivables 801 821 Cash and cash equivalents 2,900 719 3,701 1,540 --------- --------- Current liabilities Payables (8) (82) Corporation tax (154) (116) --------- --------- Net assets 15,557 16,077 --------- --------- Equity attributable to equity holders 15,557 16,077 --------- --------- Net asset value per share 113.54p 117.34p --------- --------- Statement of Changes in 6 months ended Year ended Shareholders' equity 30 September 2019 31 March 2019 GBP'000 GBP'000 Opening shareholders' funds 16,077 14,794 Profit for the period 165 1,968 Dividends paid (685) (685) Closing shareholders' funds 15,557 16,077 --------- --------- Unaudited Audited Investment Portfolio 30 September 2019 31 March 2019 ---------------------------------------- ---------------------------------------- Cost Valuation Cost Valuation GBP'000 % GBP'000 % GBP'000 % GBP'000 % Unquoted qualifying holdings 8,531 66.59 10,639 71.31 11,240 84.23 13,349 86.39 Unquoted non-qualifying holdings 1,379 10.76 1,379 9.24 1,386 10.39 1,386 8.96 --------- -------- --------- -------- Financial assets at fair value through profit or loss 9,910 77.35 12,018 80.55 12,626 94.62 14,735 95.35
Cash and cash equivalents 2,900 22.65 2,900 19.45 719 5.38 719 4.65 12,810 100.00 14,918 100.00 13,345 100.00 15,454 100.00 ========= ======== ========= ======== ========= ======== ========= ======== Qualifying Holdings Unquoted Hydroelectric Power Elementary Energy 342 2.67 400 2.68 342 2.56 400 2.59 Green Highland Allt Garbh Ltd - - - - 2,710 20.31 2,710 17.54 Green Highland Allt Ladaidh (1148) Ltd 3,500 27.32 5,010 33.58 3,500 26.23 5,010 32.42 Green Highland Allt Luaidhe (228) Ltd 1,996 15.58 2,407 16.13 1,995 14.95 2,407 15.58 Green Highland Allt Phocachain (1015) Ltd 1,932 15.08 2,281 15.29 1,932 14.48 2,281 14.76 Green Highland Shenval Ltd 761 5.94 541 3.63 761 5.70 541 3.50 8,531 66.59 10,639 71.31 11,240 84.23 13,349 86.39 ========= ======== ========= ======== ========= ======== ========= ======== Non-Qualifying Holdings Unquoted Hydroelectric Power Green Highland Allt Luaidhe (228) Ltd 173 1.35 173 1.16 180 1.35 180 1.16 SME Funding Hydroelectric Power: Broadpoint 3 Ltd 1,206 9.41 1,206 8.08 1,206 9.04 1,206 7.80 1,379 10.76 1,379 9.24 1,386 10.39 1,386 8.96 ========= ======== ========= ======== ========= ======== ========= ========
Non-Statutory Analysis - The E Share Fund
Statement of Comprehensive Income Unaudited Audited 6 months ended Year ended 30 September 2019 31 March 2019 ------------------------------- ------------------------------- Revenue Capital Total Revenue Capital Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Investment income 460 - 460 855 - 855 Realised gain on investments - - - - 420 420 Unrealised loss on investments - (448) (448) - 660 660 Investment return 460 (448) 12 855 1,080 1,935 Investment management fees (240) (65) (305) (460) (126) (586) Other expenses (40) - (40) (86) - (86) Profit/(loss) before taxation 180 (513) (333) 309 954 1,263 Taxation (30) 12 (18) (59) 24 (35) Profit/(loss) after taxation 150 (501) (351) 250 978 1,228 --------- --------- --------- --------- --------- --------- Profit/(loss) and total comprehensive income for the period 150 (501) (351) 250 978 1,228 --------- --------- --------- --------- --------- --------- Basic and diluted earnings/(loss) per share 0.52p (1.73p) (1.21p) 0.86p 3.38p 4.24p --------- --------- --------- --------- --------- --------- Balance Sheet 6 months ended Year ended 30 September 2019 31 March 2019 GBP'000 GBP'000 Non-current assets Financial assets at fair value through profit or loss 24,315 24,787 --------- --------- Current assets Receivables 196 346 Cash and cash equivalents 4,840 4,711 5,036 5,057 --------- --------- Current liabilities Payables - (143) Corporation tax (11) (10) Net assets 29,340 29,691 --------- --------- Equity attributable to equity holders 29,340 29,691 --------- --------- Net asset value per share 101.35p 102.56p --------- --------- Statement of Changes in 6 months ended Year ended Shareholders' equity 30 September 2019 31 March 2019 GBP'000 GBP'000 Opening shareholders' funds 29,691 28,463 Profit for the period (351) 1,228 Closing shareholders' funds 29,340 29,691 --------- --------- Unaudited Audited Investment Portfolio 30 September 2019 31 March 2019 Cost Valuation Cost Valuation GBP'000 % GBP'000 % GBP'000 % GBP'000 % Unquoted qualifying holdings 13,034 47.05 15,085 51.75 13,034 47.23 15,085 51.13 Quoted non-qualifying holdings 6,001 21.66 5,453 18.70 6,001 21.75 5,901 20.01 Unquoted non-qualifying holdings 3,827 13.81 3,777 12.96 3,852 13.96 3,801 12.89 Financial assets at fair value through profit or loss 22,862 82.52 24,315 83.41 22,887 82.94 24,787 84.03 Cash and cash equivalents 4,840 17.48 4,840 16.59 4,711 17.06 4,711 15.97 27,702 100.00 29,155 100.00 27,598 100.00 29,498 100.00 Qualifying Holdings Unquoted Solar Digima Ltd 1,262 4.56 1,612 5.53 1,262 4.57 1,612 5.46 Digital Screen Solutions Ltd 2,020 7.29 2,658 9.12 2,020 7.32 2,658 9.01 Green Energy for Education Ltd 475 1.71 1,127 3.87 475 1.72 1,127 3.82 Hydroelectric Power Elementary Energy Ltd 1,718 6.20 2,009 6.89 1,718 6.23 2,009 6.81 Green Highland Shenval Ltd 359 1.30 256 0.88 359 1.30 256 0.87 Gas Power Green Peak Generation Ltd 2,200 7.94 2,423 8.31 2,200 7.97 2,423 8.21 Vertical Growing Perfectly Fresh Cheshire Ltd 5,000 18.05 5,000 17.15 5,000 18.12 5,000 16.95 13,034 47.05 15,085 51.75 13,034 47.23 15,085 51.13 Non-Qualifying Holdings Quoted Investment Property TP Social Housing REIT Plc Equity 6,001 21.66 5,453 18.70 6,001 21.75 5,901 20.01 6,001 21.66 5,453 18.70 6,001 21.74 5,901 20.00 Unquoted Crematorium Management Furnace Managed Services Ltd 486 1.75 93 0.32 496 1.80 103 0.35 Hydroelectric Power Elementary Energy Ltd 233 0.84 233 0.80 248 0.90 248 0.84 SME Funding Hydroelectric Power:
Broadpoint 2 Ltd 750 2.71 750 2.57 750 2.72 750 2.54 Other: Funding Path Ltd 2,200 7.94 2,200 7.55 2,200 7.97 2,200 7.46 Aeris Power Ltd 158 0.57 501 1.72 158 0.57 500 1.70 3,827 13.81 3,777 12.96 3,852 13.96 3,801 12.89
Notes to the Unaudited Interim Financial Report
1. Corporate information
The Unaudited Interim Financial Report of the Company for the 6 months ended 30 September 2019 was authorised for issue in accordance with a resolution of the Directors on 21 November 2019.
The Company is listed on the London Stock Exchange.
Triple Point Income VCT plc is incorporated and domiciled in Great Britain. The address of the Company's registered office, which is also its principal place of business, is 1 King William Street, London, EC4N 7AF.
The Company is required to nominate a functional currency, being the currency in which the Company predominately operates. The functional and reporting currency is pounds sterling (GBP), reflecting the primary economic environment in which the Company operates.
The principal activity of the Company is investment. The Company's investment strategy is to offer combined exposure to cash or cash-based funds and venture capital investments focused on companies with contractual revenues from financially secure counterparties.
The financial information set out in this report does not constitute statutory accounts as defined in S434 of the Companies Act 2006.
2. Basis of preparation and accounting policies
Basis of preparation
The Unaudited Interim Financial Report of the Company for the 6 months ended 30 September 2019 has been prepared in accordance with IAS 34: Interim Financial Reporting. The same accounting policies and methods of computation are followed in the Interim Financial Report as were followed in the most recent Financial Statements. It does not include all of the information required for full Financial Statements and should be read in conjunction with the Financial Statements for the year ended 31 March 2019.
Estimates
The preparation of the Interim Report requires the Board to make judgements, estimates and assumptions that reflect the application of accounting policies and the reported amounts of assets and liabilities, income and expenditure. However, actual results may differ from these estimates.
3. Segmental reporting
The Directors are of the opinion that the Company only has a single operating segment of business, being investment activity.
All revenues and assets are generated and held in the UK.
4. Investment income Ord Shares C Shares D Shares E Shares Total Unaudited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 6 months ended 30 September 2019 Loan stock interest - 360 410 288 1,058 Dividends receivable - 331 - 20 351 Interest receivable on bank and other balances - 1 1 5 7 Other Investment Income - - - 44 44 Property Income - - - 103 103 - 692 411 460 1,563 Ord Shares C Shares D Shares E Shares Total Audited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Year ended 31 March 2019 Loan stock interest 4 733 918 531 2,186 Dividends receivable - 393 - - 393 Interest receivable on bank and other balances 19 1 1 42 63 Other Investment Income - - - 123 123 Property Income - - - 158 158 23 1,127 919 854 2,923 5. Investment management fees
TPIM provides investment management and administration services to the Company under an Investment Management Agreement effective 6 February 2008 and deeds of variation to that agreement effective 21 November 2012, 28 October 2014 and 7 October 2016.
Ordinary Shares: The agreement provides for an investment management fee of 1.5% per annum of net assets payable quarterly in arrear for the Ordinary Shares. For the Ordinary Shares issued under the 2007 offer the agreement ran until 6 February 2014 after which the management fee of 1.5% has not been charged. For all other Ordinary Shares, the appointment continued to 30 April 2019 after which there was a 1% exit fee on all funds returned to shareholders.
C shares: The agreement provides for an administration and investment management fee of 2% per annum of net assets payable quarterly in arrear for an appointment of at least six years from the admission of those shares. Subject to distributions to the C Shareholders exceeding the C Share hurdle, the Investment Manager will be entitled to a performance incentive fee of 20%.
D shares: The agreement provides for an administration and investment management fee of 2% per annum of net assets payable quarterly in arrear for an appointment of at least six years from the admission of those shares. Subject to distributions to the D Shareholders exceeding the D Share hurdle, the Investment Manager will be entitled to a performance incentive fee of 20%.
E shares: The agreement provides for an administration and investment management fee of 2% per annum of net assets payable quarterly in arrear for an appointment of at least six years from the admission of those shares. Subject to distributions to the E Shareholders exceeding the E Share hurdle, the Investment Manager will be entitled to a performance incentive fee of 20%.
To date there have been no performance fees paid.
An administration fee equal to 0.25% per annum of the Company's net assets is payable quarterly in arrear.
Ord Shares C Shares D Shares E Shares Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 6 months ended 30 September 2019 Unaudited Investment Management Fees - 183 161 261 605 - 183 161 261 605 Year ended 31 March 2019 Audited Investment Management Fees (12) 305 231 504 1,028 (12) 305 231 504 1,028 6. Directors' remuneration
The only remuneration received by the Directors was their Directors' fees. The Company has no employees other than the Non-Executive Directors. The average number of Non-Executive Directors in the period was three.
C Shares D Shares E Shares Total GBP'000 GBP'000 GBP'000 GBP'000 6 months ended 30 September 2019 David Frank 3 3 4 10 Simon Acland 3 2 4 9 Michael Stanes 2 2 5 9 8 7 13 28 Year ended 31 March 2019 David Frank 5 4 10 19 Simon Acland 4 4 10 18 Michael Stanes 4 4 10 18 13 12 30 55 7. Taxation Ord Shares C Shares D Shares E Shares Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Unaudited 6 months ended 30 September 2019 Profit on ordinary activities before tax - 459 203 (333) 329 Corporation tax @ 19% - 86 38 (63) 61 Effect of: Capital (gains) not taxable - - - 85 85 Income received not taxable - (63) - (4) (67) Tax charge/(credit) - 23 38 18 79 Audited Year ended 31 March 2019 Profit/(loss) on ordinary activities before tax 35 3,652 2,083 1,263 7,033 Corporation tax @ 20% 7 694 396 240 1,337 Effect of: Capital (gains) not taxable - (553) (280) (205) (1,038) Income received not taxable - (75) - - (75) Unrelieved tax losses arising in the year - - - (1) (1) Prior year adjustment 13 (7) - - 6 Tax charge 20 59 116 34 229
Capital gains and losses are exempt from corporation tax due to the Company's status as a Venture Capital Trust.
8. Earnings per share
The earnings per share for C Shares is based on the profit after tax of c.GBP435,000, and on the weighted average number of shares in issue during the period of 13,441,438, which is equal to the number of shares at 30 September 2019.
The earnings per share for D Shares is based on the profit after tax of c.GBP165,000, and on the weighted average number of shares in issue during the period of 13,701,636, which is equal to the number of shares at 30 September 2019.
The earnings per share for E Shares is based on the loss after tax of c.GBP351,000, and on the weighted average number of shares in issue during the period of 28,949,575, which is equal to the number of shares at 30 September 2019.
9. Cash and cash equivalents
Cash and cash equivalents comprise deposits with The Royal Bank of Scotland plc and Cater Allen Private Bank.
10. Net asset value per share
The calculation of the Company's net asset value per share for C Shares is based on the Company's net assets attributable to the C Shares of c.GBP17,851,000 divided by the 13,441,438 C Shares in issue.
The calculation of the Company's net asset value per share for D Shares is based on the Company's net assets attributable to the D Shares of c.GBP15,557,000 divided by the 13,701,636 D Shares in issue.
The calculation of the Company's net asset value per share for E Shares is based on the Company's net assets attributable to the E Shares of GBP29,340,000 divided by the 28,949,575 E Shares in issue.
11. Commitments and contingencies
The Company had no commitments or contingent liabilities at 30 September 2019.
12. Relationship with Investment Manager
During the period, TPIM charged GBP261,526 (which has been expensed by the Company) for providing management services to the Company.
Fees paid to the Investment Manager for administrative and Company Secretarial services during the period were GBP44,000.
At 30 September 2019 no fees were due to TPIM.
13. Related party transactions
There are no related party transactions.
14. Dividends
C Shares:
The Company paid a dividend to C Class Shareholders of GBP672,072, equal to 5p per share, on 25 July 2019.
The Board has resolved to pay a special dividend to C Class Shareholders of GBP2,822,702 equal to 21.00p per share which will be paid on 19 December 2019 to shareholders on the register as at 28 November 2019.
D Shares:
The Company paid a dividend to D Class Shareholders of GBP685,082, equal to 5p per share, on 25 July 2019.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR QFLFLKFFBFBD
(END) Dow Jones Newswires
November 21, 2019 11:17 ET (16:17 GMT)
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