Annual Financial Report

Annual Financial Report

Hargreave Hale AIM 1

Hargreave Hale AIM VCT 1 plc announced its results for the year ended 30 September 2013 on 16 December 2013. The full Financial Statements can be accessed on the Company's website http://www.hargreave-hale.co.uk/fund-management/venture-capital-trusts/hargreave-hale-aim-vct-1/factsheets-and-reports/ or alternatively by following the link at the bottom of this report.

FINANCIAL HIGHLIGHTS

Ordinary Shares (as at 30 September):	Â	2013	Â	2012
					Â
Net asset value per share		71.87		61.35p
Cumulative distributions paid per share since launch		29.75		26.5p
Total return		101.62		87.85p
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Annual Returns per share:
Revenue return		(0.24)p		(0.30)p
Capital return		14.05p		3.94p
Combined Return		13.81p		3.64p
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Dividends per share:
Interim paid		1.5p		1.5p
Final proposed		2.25p		1.75p
Total dividend for year		3.75p		3.25p
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Performance Benchmark:
Total Return		107%		92.5%
FTSE AIM All-share Index		82.3%		73.2%
(results rebased to 100 at 29 October 2004)
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CHAIRMAN’S STATEMENT

Introduction

At 30 September 2013 the NAV was 71.87 pence which after adding back the dividends paid gives a total return since inception of 101.62 pence. The gain per ordinary share for the year was 13.81 pence per share (comprising revenue loss of 0.24 pence and capital gains of 14.05 pence) which after adding back the dividends paid amounts to a rise of some 22.44%.

Investments

The Investment Manager, Hargreave Hale Limited, invested a further £1.76 million in 10 qualifying companies during the year. The Fair Value of qualifying investments at 30 September 2013 was £16.33 million invested in 37 AIM companies and 7 unquoted companies. £3.74 million was held in a mix of cash, fixed income and other non-qualifying equities; more detail can be found in the Investment Manager’s Report.

Dividend

An interim dividend of 1.5 pence was paid on 5 July 2013 (Interim 2012 – 1.5 pence).

A final dividend of 2.25 pence is proposed (2012 – 1.75 pence) which, subject to shareholder approval at the AGM will be paid on 24 January 2014, to ordinary shareholders on the register on 3 January 2014.

The directors have maintained a dividend policy of at least 5% of the year end NAV. Subject to market conditions they expect that this will continue.

Buybacks

We were pleased that we were able to maintain our policy of offering our shareholders an efficient exit route through the buyback scheme. In total, 1,269,517 shares were purchased during the year at an average price of 60.04 pence per share.

Issue of Equity

The joint offer for subscription (together with Hargreave Hale AIM VCT 2) closed on 25 September 2013 and resulted in funds being received for Hargreave Hale AIM VCT 1 of £2.6 million and the issue of 3,998,082 shares.

New Joint Offer for Subscription of Ordinary Shares

After our success this year, on the 1 November 2013 the Directors of Hargreave Hale AIM VCT 1 plc and Hargreave Hale AIM VCT 2 plc announced the launch of a new joint offer for subscription of new shares in both VCT’s to raise up to £10 million into this company.

The offer for subscription was approved by shareholders of the Company at a General Meeting on 31 October 2013.

VCT Status

To maintain its VCT qualifying status we must invest at least 70% of the net funds raised in any one accounting period in qualifying investments within three years. At the yearend we have achieved 94.2% per cent and have satisfied all the relevant tests.

Outlook

At the time of the budget in March the Office for Budget Responsibility reduced its forecast for GDP growth to 0.6% in the space of just 8 months, the general consensus forecasts are now of the order of 1.4% rising to as much as 2.5% for 2014. This remarkable change in the economy has had a beneficial effect on the stock market and in particular we have seen a marked positive change in sentiment towards the merits of investing in AIM.

There are many reasons to be cautious about the future as we should not forget that the UK is still running an enormous budget deficit and many of our European neighbours are far from being economically out of the woods. However on the positive front various observers see Shale gas as a being potentially even more beneficial to the UK economy than was North Sea oil. If only 10% of the estimated reserves in the North West come to production that would provide all the gas requirements for the UK for the next 40 years. As usual the greatest danger to our economy comes from Westminster and a labour leader with views slightly left of Karl Marx could provide for an interesting General election in 2015.

The Fund is largely invested in good well run companies which continue to outperform their peers. The number of new issues seems to be starting to increase which will provide opportunities to make suitable new investments with the new money that we raised in 2013. The outlook for 2014 looks to be well placed for those who invest in the new issue referred to above.

Sir Aubrey Brocklebank

Chairman

Date: 16 December 2013

For further information, please contact:-

Stuart Brookes

Company Secretary

Hargreave Hale AIM VCT 1 Plc

01253 754740

Annual Report and Accounts - Year ended 30 September 2013