Half-yearly Report

Keydata Income VCT 1
                  

KEYDATA INCOME VCT 1 plc

Unaudited Interim Results for the six month period ending 31 August 2007

Chairman's Statement

I am pleased to report that your company made good progress in the six month
period ended 31 August 2007.

Investment Update

On 27 June 2007, Keydata Income VCT 1 ('the company') invested £6,227,000 in a
series of renewable energy power generation projects based on the technology of
the gasification of recycled wood. The Company's principal partners in these
projects are Biomass Engineering Limited ('Biomass') a leading company in the
field of sustainable energy (see www.biomass-uk.com) and Centralgrange
Environmental Waste Limited ('CEW') a business based in St Helens, Lancashire
specialising in waste reclamation. Advance tax clearance has been obtained from
HMRC to confirm that these investments will be qualifying investments for VCT
purposes. We are also in consultation with HMRC regarding an inadvertent breach
of VCT regulations with respect to the proportion of the fund`s income in its
second financial year that was derived from bank deposits rather than from
shares and securities. This breach was the unintended consequence of the failure
to complete earlier wind farm investments that did not, as previously reported,
meet our financial criteria.

The investments made in the period represent 88% of total funds raised,
comfortably ahead of the required 70% investment within 3 years. The other 12%
of funds (amounting to £783,000 at 31 August 2007) are invested in short-dated
Treasury stock or held on bank deposit.

The Company invested an aggregate of £4,248,000 in five newly formed renewable
energy companies (RECs). It is intended that each REC will build, own and
operate either a 1 megawatt (MW) or 0.5 MW Gasification Unit in St Helens,
Merseyside, to be fuelled by clean recycled wood provided by CEW which operates
a waste reclamation station on the site. The total annual operating capacity of
the 5 RECs will be 4.5 MW of electricity, four companies producing 1MW and one
company producing 0.5MW. Biomass will provide the Gasification Units and
construction is underway with completion and grid connection scheduled for
October 2008 although it is anticipated that completion and grid connection
could occur earlier. Planning permission has been granted in respect of the
Gasification Units.

Under the terms of their investments, the RECs have each entered into a long
term contract to supply all their electricity and heat to a newly formed
company, Docherty Heat and Energy Distributor Limited and have agreed tolling
fees. The effect of this arrangement will be to reduce the financial risk of the
REC investments that would otherwise arise from potentially volatile feedstock
and electricity prices.

The company has also invested an aggregate of £1,979,000 in two newly formed
RECs set up to supply various support services (eg fuel feed system, condensate
filter and cooling tower and the plant required to connect to grid) to the five
operating companies detailed above.

Finally, at the same time, the company has made a small non-qualifying
investment in Docherty Heat and Energy Distributor Limited for a 5% equity
interest. This will provide the opportunity for the company to benefit directly
in the event of sustained high electricity prices.

Results

The net asset value per share at 31 August 2007 was 96.53 pence, an increase of
0.8% in the period. Adjusted for dividends paid of 1.33p, the total return is
97.86 pence, a 3% uplift since launch.

Earnings per share for the period were 1.76 pence per share (comprising revenue
earnings of 1.64 pence and capital earnings of 0.12 pence).

The directors do not propose to recommend an interim dividend for the period. A
final dividend is anticipated based on the profit for the full year.

Shareholder Communication

I look forward to reporting further progress in the Annual Report and Accounts
that will be sent to you in May 2008.

The Company's daily share price can be found on various financial websites under
the EPIC code 'KIV' or on our own dedicated website at
www.keydataincomevct.co.uk

Stephen Oxenbridge
Chairman

30 October 2007

Consolidated income statement for the six month period ending 31 August 2007

-0-
*T
                                                                  For the six month period to 31 August 2007 (unaudited)
                                                                                            Revenue   Capital      Total
                                                                                               £000      £000       
£000

Realised losses on investments                                                                    -      (16)       (16)
Unrealised losses on investments                                                                  -       (3)        (3)
Investment income                                                                               222         -        222
                                                                                           --------   -------   --------
                                                                                                222      (19)      (203)
Management fees                                                                                   -         -          -
Other expenses                                                                                 (74)         -       (74)
                                                                                           --------  --------   --------
Profit before taxation                                                                          148      (19)        129
Taxation                                                                                       (28)        28          -
                                                                                           --------  --------   --------
Profit after taxation                                                                           120         9        129
                                                                                           --------  --------   --------
Earnings per share (Note 2)                                                                   1.64p     0.12p      1.76p
The total column of this statement is the income statement of the Group. All revenue and capital items in the above
 statement derive from continuing operations. No operations were acquired or discontinued in the period
*T

Consolidated income statement for the six month period ending 31 August 2006

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*T
                                                                  For the six month period to 31 August 2006 (unaudited)
                                                                                            Revenue   Capital      Total
                                                                                               £000      £000       
£000

Investment Income                                                                               110         -        110
Management fees                                                                                   -         -          -
Other expenses                                                                                 (73)         -       (73)

                                                                                          --------- --------- ----------
Profit before taxation                                                                           37         -         37
Taxation                                                                                        (7)         -        (7)

                                                                                          --------- --------- ----------
Profit after taxation                                                                            30         -         30
                                                                                          --------- --------- ----------
Earnings per share (Note 2)                                                                   0.44p         -      0.44p
The total column of this statement is the income statement of the Group. All revenue and capital items in the above
 statement derive from continuing operations. No operations were acquired or discontinued in the period
*T

Balance sheet as at 31 August 2007

Group and Company

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*T
                                                                                          31 August 2007  31 August 2006
                                                                                             (unaudited)     (unaudited)
                                                                                                    £000            
£000
Fixed assets
 Investments                                                                                       6,832               -
Current assets
 Prepayments and accrued income                                                                      120              60
 Cash                                                                                                181           6,928
                                                                                                 -------        --------
                                                                                                     301           6,988
Creditors: amounts falling due within one year
 Accruals and deferred income                                                                       (80)            (38)
                                                                                                 -------        --------
Net current assets                                                                                   221           6,950

                                                                                                 -------        --------
Net assets                                                                                         7,053           6,950
                                                                                                 -------        --------
Capital and Reserves
Called up share capital                                                                               73              73
Share premium                                                                                      6,847           6,847
Capital reserve - realised                                                                            12               -
Capital reserve - unrealised                                                                         (3)               -
Revenue reserve                                                                                      124              30
                                                                                                 -------        --------
Equity shareholders' funds                                                                         7,053           6,950
                                                                                                 -------        --------
Net asset value per share (Note 4)                                                                96.53p          95.12p
*T

Cash flow statement for the six month period ending 31 August 2007

Group and Company

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*T
                                                                      For the six month period For the six month period
                                                                             to 31 August 2007         to 31 August 2006
                                                                                   (unaudited)               (unaudited)
                                                                                          £000                      
£000
Profit before taxation                                                                     148                        37
Equity dividends paid                                                                     (73)                      (15)
Increase in debtors                                                                       (52)                      (35)
Increase in creditors                                                                       17                         8

                                                                      ------------------------ -------------------------
Net cash from operating activities                                                          40                       (5)
Financial investment:
Purchase of investments                                                               (10,871)                         -
Sale of investments                                                                      4,020                         -
 Financing:
Net proceeds from issue of ordinary share capital                                            -                     2,632
                                                                      ------------------------ -------------------------
(Decrease)/ increase in cash                                          (6,811)                  2,627
Opening cash                                                          6,992                    4,301

                                                                      ------------------------ -------------------------
Closing cash                                                          181                      6,928

                                                                      ------------------------ -------------------------
*T

Statement of changes in equity

for the six month period ending 31 August 2007

Group and Company

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*T
                                                                     Share        Capital        Capital         Revenue
                                                                   Premium        Reserve        Reserve         Reserve
                                                                                 Realised     Unrealised
                                                                      £000           £000           £000            
£000
At 1 March 2006                                                      6,847              -              -              77
Profit before taxation for period                                        -              -              -             148
Taxation                                                                 -             28              -            (28)
Realised losses on investments                                           -           (16)              -               -
Unrealised losses on investments                                         -              -            (3)               -
Dividends paid                                                           -              -              -            (73)
                                                            -------------- -------------- -------------- ---------------
At 31 August 2007                                                    6,847             12            (3)             124
                                                            -------------- -------------- -------------- ---------------
*T

Investment portfolio summary as at 31 August 2007

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*T
Qualifying investments                                                        Equity   Loan      Book Valuation    % net
                                                                                        Note     cost             assets
                                                                                £000    £000     £000      £000    
   %
Nevin Energy Resources Ltd                                                       283     660      943       943     13.8
Cooke Generation Ltd                                                             283     660      943       943     13.8
Burley Energy Ltd                                                                283     660      943       943     13.8
Boyle Electrical Generation Ltd                                                  283     660      943       943     13.8
Hughes Power Ltd                                                                 143     333      476       476      7.0
Clarke Power Services Ltd                                                        302     704    1,006     1,006     14.7
Spencer Energy Services Ltd                                                      292     681      973       973     14.2
                                                                             ------- ------- --------  -------- --------
Total qualifying investments                                                   1,869   4,358    6,227     6,227     91.1
Non-qualifying investments
Treasury 7.25% Stock 2006                                                        N/A     N/A      605       602      8.8
Docherty Heat & Energy Distributor Ltd                                             3       -        3         3      0.1
                                                                                             --------   ------- --------
Total non-qualifying investments                                                                  608       605      8.9
                                                                                             --------   ------- --------
Total investments                                                                               6,835     6,832    100.0
                                                                                             --------  -------- --------
*T

Notes to the interim report

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*T
1   The group's interim accounts have been prepared in accordance with International Financial Reporting Standards
     (IFRSs). The accounting policies used in preparing this report are consistent with those which will be adopted at
     the year end.
2   The earnings per share of 1.76 pence (2006: 0.44 pence) is based on the profit after tax for the period of £129,002
     (2006: £30,184) and the weighted average number of shares in issue over the period to 31 August 2007 of 7,306,320
     (2006: 6,832,435).
3   The results should not be taken as a guide to the results for the year ending 28 February 2008.
4   The net asset value per ordinary share of 96.53 pence (2006: 95.12 pence) is based on net assets of £7,052,808
     (2005: £6,949,982) and on 7,306,320 (2005: 7,306,320) shares, being the number of shares in issue as at 31 August
     2007.
5   The financial information contained in the 31 August 2007 consolidated income statement, balance sheet, cash flow
     statement and statement of changes in equity does not constitute full financial statements and has not been
     audited.
*T

For further information please contact:

Craig McNeil
Company Secretary
Keydata Income VCT 1 plc
0141 572 2300