Half-yearly Report

Investec Structured Products Calculus VCT plc Half Yearly Report for the six months ended 31 August 2014 INVESTMENT OBJECTIVE The Company's principal objectives for investors are to: ●invest in a portfolio of Venture Capital Investments and Structured Products that will provide investment returns that are sufficient to allow the Company to maximise annual dividends and pay an interim return either by way of a special dividend or cash offer for shares on or before an interim return date; ●generate sufficient returns from a portfolio of Venture Capital Investments that will provide attractive long-term returns within a tax efficient vehicle beyond an interim return date; ●review the appropriate level of dividends annually to take account of investment returns achieved and future prospects; and ●maintain VCT status to enable qualifying investors to retain their income tax relief of up to 30 per cent. on the initial investment and receive tax-free dividends and capital growth. FINANCIAL REVIEW Ordinary Share Fund 6 Months to 6 Months to 12 Months to 31 August 31 August 28 February 2014 2013 2014 Total return Total return £Nil £46,000 £199,000 Total return per ordinary share 0.0p 1.0p 4.2p Revenue Net (loss)/profit after tax (£20,000) £8,000 (£44,000) Revenue return per ordinary share (0.4)p 0.2p (0.9)p As at As at As at 31 August 31 August 28 February 2014 2013 2014 Assets (investments valued at bid market prices) Net assets £4,263,000 £4,359,000 £4,512,000 Net asset value ("NAV") per ordinary share 90.0p 92.0p 92.5p Mid-market quotation Ordinary shares 85.5p 87.5p 85.5p Discount to NAV (5.0)% (4.9)% (10.2)% C Share Fund 6 Months to 6 Months to 12 Months to 31 August 31 August 28 February 2014 2013 2014 Total return Total return £10,000 £45,000 £47,000 Total return per C share 0.5p 2.3p 2.4p Revenue Net loss after tax (£13,000) (£13,000) (£25,000) Revenue return per C share (0.7)p (0.7)p (1.3)p As at As at As at 31 August 31 August 28 February 2014 2013 2014 Assets (investments valued at bid market prices) Net assets £1,688,000 £1,763,000 £1,765,000 NAV per C share 87.4p 91.3p 91.4p Mid-market quotation C shares 90.0p 90.0p 90.0p Premium/(discount) to NAV 3.0% (1.4)% (1.5)% INTERIM MANAGEMENT REPORT Performance Summary The net asset value per ordinary share was 90.0 pence as at 31 August 2014 compared to 92.5 pence as at 28 February 2014. The major part of this movement is attributable to the dividend of 5.25 pence per ordinary share paid in July 2014. This dividend payment took cumulative dividends paid on the ordinary shares since inception to 21.0 pence, bringing the total return per ordinary share to 111.0 pence. The net asset value per C share was 87.4 pence as at 31 August 2014 compared to 91.4 pence as at 28 February 2014. A dividend of 4.5 pence per C share was paid in July 2014. This dividend payment took cumulative dividends paid on the C shares since inception to 13.5 pence, bringing the total return per C share to 100.9 pence. We are encouraged by the Company's performance to date and believe the portfolio is well positioned to make further progress in the second half of the year. Special Dividend on the Ordinary Shares In the documents relating to the subscription for ordinary shares in 2010, it was stated that the Company's investment objectives were to pay annual dividends of 5.25p per share and an interim return of at least 43.75p by way of a special dividend or cash tender offer for the ordinary shares on or before 14 December 2015. In view of the fact that the Structured Products are now worth significantly more than their original cost and the Company has to maintain its VCT status at all times to enable qualifying investors to retain their income tax relief, the Board is considering whether to redeem some Structured Products before their maturity date and declare a special dividend on the ordinary shares, that would constitute part of the interim return. Venture Capital Investments Portfolio developments Calculus Capital Limited manages the Company's portfolio of Qualifying Investments. In general, we prefer to take stakes of sufficient size to enable us to play a more influential role in helping the companies develop. Investments may be by way of loan stock and/or preference shares as well as equity. This provides income for the Company to help pay regular dividends and provides a measure of risk mitigation. The Ordinary Share Fund and the C Share Fund are managed separately although they both have the same investment remit and, therefore, both have very similar portfolios. As at 31 August 2014, the Company held 13 Qualifying Investments and 11 Qualifying Investments on behalf of the Ordinary Share Fund and the C Share Fund respectively. Terrain Energy Limited ("Terrain") (Ordinary and C Share Funds) Terrain Energy is an oil and gas exploration and production company with licence interests in the East Midlands, Surrey, Northern Ireland and Germany. The company's strength lies in the quality of its management team, development and exploration assets, which reduces risk; the size of its reserves, especially prospective resources, which are due to be drilled in the near future; and that it has sufficient cash to meet its commitments. Terrain has interests in ten petroleum licences: Keddington, Kirklington, Dukes Wood, Kelham Hill and Burton on the Wolds in the East Midlands; Larne and a licence offshore to the north of Larne in Northern Ireland; Brockham in Surrey; and Bruckmuhl and Starnberger See in Germany. The estimated resources for all the prospects on the Larne licence gives unrisked P50 prospective resources of 450 million barrels of oil ("mmbo") (net 45 mmbo to Terrain). The first well, scheduled for late 2014, will test a structure with an estimated 40 mmbo oil in place and 14 mmbo recoverable (assuming a 30 per cent. recovery rate), or 1.3 mmbo net to Terrain. In July, Terrain redeemed loan stock held by the Ordinary Share Fund. Lime Technology Limited ("Lime") (Ordinary Share Fund) Lime was established in 2002 and is a developer of sustainable, low carbon building materials. The business comprises two parts: Lime Mortars - were used in the renovation of St Pancras Station. This division also has a developing business in external wall insulation ("EWI") which addresses the significant proportion of existing housing stock - mainly pre 1970s - which suffers from poor insulation. Lime Building Systems - the company's hemp panels were used in the external wall construction at the Science Museum's 'large object' archive at Wroughton, near Swindon. Lime's prefabricated panels are classed as 'zero carbon' and show superior performance against comparable products in terms of temperature, moisture control and fire resistance. A new Chief Operating Officer was appointed in March. Since his appointment, costs have been cut, including a renegotiation and reduction of rent, and margins have increased. The group, which is now trading profitably, intends to develop a range of prefabricated house structures and sizes based on the group's low carbon panels and materials which can be bought 'off the shelf' by developers and single home 'self-build' customers. MicroEnergy Generation Services Limited ("MicroEnergy") (Ordinary Share Fund) MicroEnergy owns and operates a fleet of small onshore wind turbines (greater than 5kW). As at 31 August 2014, 153 turbines had been installed on farm land in East Anglia and Yorkshire. The portfolio will provide MicroEnergy with sufficient scale to mitigate against concerns of poor short-term performance at any particular site. Revenues from the fleet of installed turbines come from two sources, both of which are inflation protected, being directly linked to RPI. Firstly, there is the Government backed feed-in tariff ("FIT") paid by the electricity suppliers for every kilowatt of electricity generated for 20 years. Secondly, there is an export tariff for any surplus electricity not used by the site owner that is exported to the grid. The company is in the process of migrating to a new system with new remote monitoring whereby the generation from each system can be monitored half hourly, to help speed up the time in which any problems are recognised. The Company holds 5.1 per cent. of the equity in MicroEnergy. Other funds managed by Calculus Capital have invested in MicroEnergy and have combined voting rights of 5.8 per cent. AnTech Limited ("AnTech") (Ordinary Share Fund) AnTech is an oil services company founded in 1994 and based in Exeter. In addition to its established business supplying customised and standard products across a wide range of upstream oil and gas applications, AnTech has developed a new generation of directional drilling tools which provide the platform for a step-change transformation in the manner and efficiency in which oil and gas wells can be drilled with coil tubing. The first commercial use of this commenced in France in September this year and the company has received interest from many major oil producing regions, including North America and Saudi Arabia. Dryden Human Capital Group ("Dryden") (Ordinary Share Fund) Dryden is a global professional services recruitment and executive search group and its first business commenced operations in 1996. Headquartered in the UK, it specialises in the actuarial, insurance and compliance recruitment sectors and operates out of London, Zurich and Hong Kong. In July 2014, the group appointed a new CEO, James Gregory, who returns to the group having previously been head of Dryden's European Division. Hampshire Cosmetics Limited ("Hampshire") (Ordinary and C Share Funds) Founded in the 1970s, Hampshire is an established company which develops and manufactures a comprehensive range of products covering fragrances, body treatments, skincare and shampoos. The original investment in December 2012 was part of a turnaround led by an experienced management buy-in team. This has progressed well to date, with an improvement in revenue and profitability. Performance has in fact been ahead of plans, and the company moved significantly into profitability for the year to December 2013. In December 2013, a further investment of £50,000 equity and £100,000 loan stock was made by the C Share Fund. This facilitated the acquisition of Mr Pets, a fast growing and highly successful on-line retailer of veterinary and ancillary pet products, which sells through the company's own website and third party sales channels. The acquisition complements Hampshire's strategy to widen its product range and expand into new, high-growth markets. In addition, the company has undertaken a strategic review of the market and has also identified additional opportunities for further product diversification and margin improvement. Some of the identified strategies will be implemented during the coming year, as well as delivering further improvements from the capital investment already undertaken. The Company has 6.3 per cent. of the equity in Hampshire. Other funds managed by Calculus Capital have invested in Hampshire and have combined voting rights of 0.9 per cent. Brigantes Energy Limited ("Brigantes") (Ordinary Share Fund) Brigantes originally held a 40 per cent. interest in licence PL1/10 at Larne, Northern Ireland, from InfraStrata plc when the company was established and later acquired an additional 5 per cent. Brigantes has subsequently agreed a farm-in arrangement with Larne Oil & Gas Limited, which will pay the company's share of the estimated costs of the first well, leaving Brigantes with a 16.67 per cent. interest going forward. This well, Woodburn Forest-1, will target potential resources of 40 mmbo oil in place and 14 mmbo recoverable (assuming a 30 per cent. recovery rate), or 2.3 mmbo net to Brigantes, and is planned to be drilled in late 2014/early 2015. Brigantes also holds a 16.67 per cent. interest in offshore licence P2123, covering waters adjacent to PL1/10, which was awarded under the 27th Round of Offshore Licensing. Brigantes purchased an 18 per cent. interest in UK offshore licence P1918 (blocks 97/14, 97/15 and 98/11) from InfraStrata plc in March 2014. The licence contains a major part of the Purbeck Prospect (3-15 million barrels gross of unrisked prospective resources) and most of the 98/11-3 Prospect (80 million barrels gross of unrisked prospective resources). A well is planned for September 2015. Brigantes also has a 5 per cent. working interest in UK onshore licence PEDL070, which contains the producing Avington field. The Company has 3.4 per cent. of the equity in Brigantes. Other funds managed by Calculus Capital have invested in Brigantes and have combined voting rights of 25.6 per cent. Corfe Energy Limited ("Corfe") (Ordinary Share Fund) Corfe, like Brigantes, was set up to hold certain exploration and production assets acquired from InfraStrata plc. Today, it has interests in five licences: Osprey, Lulworth Banks and Ballard Point (adjacent to Wytch Farm) in Dorset, Burton on the Wolds in the East Midlands and the Avington field. Burton on the Wolds -1 well is expected to begin drilling in September. The Dorset prospects are a combination of conventional gas and shale gas plays. The company recently acquired a 12.5 per cent. interest in the Burton on the Wolds oil exploration licence in the East Midlands. Corfe has a production interest in the Avington field in Hampshire and has applied for additional licences under the 14th onshore licencing round. Human Race Group Limited ("Human Race") (Ordinary and C Share Funds) Human Race owns and operates over 58 events in triathlon, cycling, running, duathlon, aquathlon and open water swimming for over 50,000 participants of all abilities and ages. The portfolio of events includes the Windsor Triathlon, Wiggle Dragon Ride, Cycletta, the Eton Triathlon Super Sprints, Kingston Breakfast Run, Etape Cymru and an Off-Road Winter Series. Following a strategic review of the events portfolio, a greater emphasis is being put on those flagship events likely to attract maximum interest and drive growth. As a result, the strategy for the group going forward will be to develop and grow the portfolio of those larger flagship events. In addition to the three existing flagship events - the Dragon Ride, the Windsor Triathlon and the London Cycle Sportive - there is immediate potential for future flagship events in the London Winter Run, a new event that has been added to the 2015 calendar. In addition, the company has advanced several new event acquisition discussions and during the year acquired the Chiltern 100 Sportive - a prestigious, well-established sportive, with potential for further development and expansion. Looking to 2015 events, several new conversations are in place for deals at the larger end of the spectrum, including new events, new acquisitions and new sponsors. Secure Electrans Limited ("Secure") (Ordinary and C Share Funds) Secure was founded in 2000 to develop internationally patented systems to provide solutions to card payment fraud. Secure developed an end-to-end payment and security infrastructure which incorporated chip and pin and which had received certification from leading industry bodies and participants. Unfortunately, the company's size forestalled it winning contracts from banks and other large financial institutions, notwithstanding the superiority of the solutions, and the company entered administration in March 2014. Tollan Energy Limited ("Tollan") (Ordinary Share Fund) Tollan has been set up to generate electricity from renewable micro-generation facilities. The company currently owns 322 solar photovoltaic ("PV") installations located on rooftops in Northern Ireland, the vast majority being on private rooftops, with the remainder on commercial rooftops. The solar PV generating capacity benefits from Northern Ireland Renewable Obligation Certificates ("NIROC"s). Tollan's revenue comes from two sources, both of which are inflation protected, being directly linked to RPI. Firstly, there is the Government backed NIROC for every unit of electricity generated. Under the current NIROC regime, solar installations of less than 50kW per site receive 4 NIROCs per megawatt of electricity generated indexed for 20 years. Secondly, there is the export tariff for any surplus electricity not used by the homeowner that is exported to the grid. The Company has 6.4 per cent. of the equity in Tollan. Venn Life Sciences Holdings plc ("Venn") (Ordinary and C Share Funds) Venn is a Clinical Research Organisation ("CRO") with operations in France, the Netherlands, Ireland and a branch office in Switzerland. Venn's near-term objective is the consolidation of a number of small European CROs to build a mid-sized CRO focused on the European market, offering clients a full service, multi-centred capability in Phase II-IV trials across a range of principal disease areas. The company successfully raised £1 million in March 2014 through private placing. Funds are to be used to develop the opportunities provided by the recent acquisition of the intellectual property rights in Labskin™, SYN1113 and related equipment of Evocutis plc. The company has continued to grow organically and through acquisition. In the third quarter of the financial year ending 31 December 2014, the company acquired a French CRO and signed a major contract worth over €2.4 million to conduct an international study into an innovative new heart treatment. Metropolitan Safe Custody Limited ("Metropolitan") (Ordinary and C Share Funds) Metropolitan provides safe custody services in central London to around 4,500 customers. Metropolitan currently runs two safe custody sites, one in Knightsbridge, the other in St. John's Wood. These profitable, stable businesses serve around 4,500 customers providing access to the vaults seven days a week. The company invested significantly in the Knightsbridge site in 2013 and the St John's Wood site in 2014, upgrading security systems, increasing capacity and enhancing customer facilities. In June 2014, the company launched its online gold and silver bullion service which enables customers to link directly to Sharps Pixley's online trading platform to purchase gold and silver bars and coins directly from one of the oldest names in bullion. Metropolitan receives a commission for the introduction and is able to store and insure the items purchased. The Company has 3.2 per cent. of the equity in Metropolitan. Other funds managed by Calculus Capital have invested in Metropolitan and have combined voting rights of 38.9 per cent. Scancell Holdings plc ("Scancell") (C Share Fund) Scancell is developing novel immunotherapies for the treatment of cancer. Its SCIB1 ImmunoBody® is being developed for the treatment of melanoma and is being evaluated in a Phase 1/2 trial. Scancell recently announced encouraging results from its ongoing Phase 1/2 clinical trial in later stage patients (Stage III/IV melanoma) - treated with the SCIB1 ImmunoBody® - at the 2014 American Society of Clinical Oncology ("ASCO") meeting in Chicago on 1 June 2014. Whilst the Phase 1/2 clinical trials are relatively small, there is consistent evidence that Scancell's SCIB1 ImmunoBody® therapy can produce a reduction in tumour size and stimulate a power immune response. When taken together with the apparent delay in disease progression and increasingly extended survival data, these results are highly encouraging. Most encouraging is the reported survival times: only 2 of 25 patients receiving at least three doses of 2-8mg of SCIB1 have died since the study started in 2010. Pico's Limited (trading as "Benito's Hat") (C Share Fund) Benito's Hat is a Mexican-themed, fast casual restaurant business with plans to expand in central London. Offering tailor-made burritos, tacos, salads and a range of specials, Benito's Hat provides an authentic Mexican experience and high-quality food, at an affordable price. The C Share Fund invested in May 2013 and in April 2014 the company received an additional £1.5 million equity investment which was led by Calculus Capital. The additional funding will allow the company to execute on a strong pipeline of new sites. The business ended its financial year to 31 July 2014 with like-for-like sales up across the site portfolio, with the two new sites opened during the year (Leadenhall Street and Farringdon) continuing to mature during the first quarter of the financial year to 31 July 2015. Horizon Discovery Limited ("Horizon") (C Share Fund) In May 2013, the C Share Fund made a £50,000 investment into Horizon, an international life science company supplying research tools to organisations engaged in genomics research and the development of personalised medicines. In March 2014, Horizon had an Initial Public Offering on AIM raising approximately £40 million of new money. In September 2014, the company acquired Sage Labs Inc in a $48 million cash and shares deal, thereby creating a fully integrated and world leading genomics platform and strengthening its US footprint. Quai Administration Services Limited ("Quai") (C Share Fund) Quai provides white-label administration services for high-volume personal savings products. Quai's proprietary technology platform provides automated administration, straight-through processing, online web access and multi-currency portfolio management services. It allows the company to administer many thousands of individual savings plans at a fraction of the cost incurred by established insurance companies and wealth managers, making it an ideal outsourcing partner. The investment by the C Share fund, together with investments by other funds managed by Calculus Capital, has allowed the company to make further investments in its platform services and expand its customer base. Quai has secured a number of new corporate contracts in recent months and the sales pipeline for the coming year has developed well. In order to meet customer demand, the company is continuing to expand the technological capabilities of the platform and broaden the service offering. The company has moved to strengthen both the board and operational team, appointing Tony Filbin, formerly managing director of Legal & General's £7 billion workplace pensions business, as a non-executive director and Jay Swanston, formerly of Cogent, as Chief Operating Officer. The Company has 3.0 per cent. of the equity in Quai. Other funds managed by Calculus Capital have invested in Quai and have combined voting rights of 37.0 per cent. The One Place Capital Limited (trading as Money Dashboard) (C Share Fund) Founded in 2009, Money Dashboard is a free web-based application which empowers consumers to take control of their finances. By using Money Dashboard, a consumer is able to view all of their internet enabled current accounts, savings accounts and credit cards in one secure place, providing the true view of their financial lives. Transaction data is sorted into easily understood categories and, by using the simple charts and graphs, consumers can see where their money is going and budget for the future. Since investment, Money Dashboard has released a series of product upgrades, including the release of a mobile app, and has significantly grown its user base. In August 2014, funds managed by Calculus Capital participated in a further funding round in the company. At the time of the August 2014 funding round the Investec Calculus VCT was fully invested, and accordingly it did not participate. The additional funds raised will be used to continue with Money Dashboard's marketing and customer acquisition strategy, capitalising on the existing relationship with Bartle Bogle Hegarty. Developments since the period end There have not been any significant developments in the venture capital portfolio since the period end. Structured Products Portfolio A significant proportion of the portfolio of Structured Products have now reached full term and there has been little change over the past six months in the portfolio. The continuing strong performance of the FTSE 100 has supported valuations in the Structured Products portfolio, and the FTSE 100 has increased to sit comfortably above all of the product's strike levels. As at 29 August 2014, the FTSE 100 was 6,819.75. Over the past three months, swap rates have increased very slightly along with market volatility, but are still low when looking at mid-term highs. Values of the Structured Product portfolio look strong, with the highest strike value at 5,341.93 in the Ordinary Share Fund and 5,584.51 in the C Share Fund. No new investments were made in Structured Products during the period. The Structured Products will achieve their target return subject to the Final Index Level of the FTSE 100 being higher than the Initial Index Level. The capital is at risk on a one-for-one basis ("CAR") if the FTSE 100 Index falls more than 50 per cent. at any time during the investment term and fails to fully recover at maturity such that the Final Index Level is below the Initial Index Level. As at 31 August 2014, the following investments had been made in Structured Products: Ordinary Share Fund Structured Products Portfolio as at 31 August 2014 FTSE Price 100 Initial as at Strike Index Notional Purchase 31 August Maturity Return/Capital Issuer Date Level Investment Price 2014 Date at Risk ("CAR") 162.5% if FTSE 100 The Royal Bank higher*; CAR if FTSE 100 of Scotland plc 05/05/2010 5,341.93 £275,000 £0.96 £1.6028 12/05/2015 falls more than 50% 185% if FTSE 100 Investec Bank higher*; CAR if FTSE 100 plc 14/05/2010 5,262.85 £500,000 £0.98 £1.7623 19/11/2015 falls more than 50% Abbey National 185% if FTSE 100 Treasury higher*;CAR if FTSE 100 Services 25/05/2010 4,940.68 £350,000 £0.99 £1.7845 18/11/2015 falls more than 50% Matured/Sold FTSE 100 Initial Index Price at Maturity Strike Level at Notional Purchase Maturity/ Date/ Return/Capital Issuer Date Maturity Investment Price Sale Date Sold at Risk ("CAR") 125.1% if FTSE 100 Returned higher*; CAR if FTSE 100 HSBC Bank plc 01/07/2010 4,805.75 £500,000 £1.00 £1.2510 06/07/2012 falls more than 50% Autocallable 10.5% p.a.; The Royal Bank Returned CAR if FTSE 100 falls of Scotland plc 18/03/2011 5,718.13 £50,000 £1.00 £1.1050 19/03/2012 more than 50% 137% if FTSE 100 Nomura Bank Sold at higher*; CAR if FTSE 100 International** 28/05/2010 5,188.43 £350,000 £0.98 £1.2625 30/03/2012 falls more than 50% 134% if FTSE 100 Morgan Stanley Sold at higher*;CAR if FTSE 100 International 10/06/2010 5,132.50 £500,000 £1.00 £1.3224 31/10/2012 falls more than 50% Abbey National 126% if FTSE 100 Treasury Sold at higher*;CAR if FTSE 100 Services 03/08/2011 5,584.51 £50,000 £1.00 £1.1900 21/06/2013 falls more than 50% The total current valuation of the amount invested in Structured Products in the Ordinary Share Fund as at 31 August 2014 was £1,946,511. C Share Fund Structured Products Portfolio as at 31 August 2014 FTSE 100 Initial Index Notional Purchase Price at 31 Maturity Return/Capital at Risk Issuer Strike Date Level Investment Price August 2014 Date ("CAR") 182% if FTSE 100 Investec Bank higher*; CAR if FTSE 100 plc 05/08/2011 5,246.99 £328,000 £1.00 £1.5830 10/03/2017 falls more than 50% Matured FTSE 100 Initial Index Strike Level at Notional Purchase Price at Maturity Return/Capital at Risk Issuer Date Maturity Investment Price Maturity Date ("CAR") Autocallable 10.5% p.a.; The Royal Bank Returned CAR if FTSE 100* falls of Scotland plc 18/03/2011 5,718.13 £200,000 £1.00 £1.1050 19/03/2012 more than 50% 137% if FTSE 100 Nomura Bank Returned higher*; CAR if FTSE 100 International** 28/05/2010 5,188.43 £350,000 £1.26 £1.3700 20/02/2013 falls more than 50% Abbey National 126% if FTSE 100 Treasury Returned higher*;CAR if FTSE 100 Services 03/08/2011 5,584.51 £200,000 £1.00 £1.2600 05/02/2014 falls more than 50% The total current valuation of the amount invested in Structured Products in the C Share Fund as at 31 August 2014 was £519,212. * The Final Index Level is calculated using 'averaging', meaning that the average of the closing levels of the FTSE 100 is taken on each Business Day over the last 2-6 months of the Structured Product plan term (the length of the averaging period differs for each plan). The use of averaging to calculate the return can reduce adverse effects of a falling market or sudden market falls shortly before maturity. Equally, it can reduce the benefits of an increasing market or sudden market rises shortly before maturity. ** The Nomura Structured Product was sold prior to maturity with a return on initial investment of 28.8 per cent. This was sold to the C Share Fund. Calculus Capital Limited Investec Structured Products 29 October 2014 29 October 2014 INVESTMENT PORTFOLIO AS AT 31 AUGUST 2014 - ORDINARY SHARE FUND % of Net Assets Structured Products 46% Unquoted - loan stock 20% Quoted and unquoted - ordinary and preference shares 34% Unquoted - liquidity funds - Net current assets - 100% Sector - % of Portfolio Structured Products 46% Quoted and unquoted - Qualifying Investments 54% Unquoted - other non-Qualifying Investments - 100% Nature of Book Cost Valuation % of Net % of Company Business £'000 £'000 Assets Portfolio Structured Products Investec Bank plc Banking 490 881 21% 21% Abbey National Treasury Services Banking 346 624 15% 15% The Royal Bank of Scotland plc Banking 264 441 10% 10% Total Structured Products 1,100 1,946 46% 46% Qualifying Investments Brigantes Energy Limited Oil and gas exploration and production 127 322 8% 8% Human Race Group Limited Leisure 300 287 7% 7% Hampshire Cosmetics Limited Cosmetics 250 277 6% 6% AnTech Limited Oil services 270 255 6% 6% Lime Technology Limited Construction 307 255 6% 6% Metropolitan Safe Custody Safe depository Limited services 190 229 5% 5% Terrain Energy Limited Onshore oil and gas production 100 176 4% 4% Tollan Energy Limited Energy 150 150 4% 4% Corfe Energy Limited Oil and gas exploration and production 76 139 3% 3% MicroEnergy Generation Services Limited Energy 150 138 3% 3% Venn Life Sciences Holdings plc Clinical research 120 64 2% 2% Dryden Human Capital Group Limited Human resources 100 11 - - Secure Electrans Limited E-commerce security 112 - - - Heritage House Limited Publishing and media services 127 - - - Total Qualifying Investments 2,379 2,303 54% 54% Other non-Qualifying Investments Scottish Widows Liquidity Fund Liquidity fund 1 1 - - Total Other non-Qualifying Investments 1 1 - - Total Investments 3,480 4,250 100% 100% Net Current Assets less Creditors due after one year 13 - Net Assets 4,263 100% INVESTMENT PORTFOLIO AS AT 31 AUGUST 2014 - C SHARE FUND % of Net Assets Structured Products 30% Unquoted - loan stock 17% Quoted and unquoted - ordinary and preference shares 52% Unquoted - liquidity funds - Net current assets 1% 100% Sector - % of Portfolio Structured Products 30% Quoted and unquoted - Qualifying Investments 70% Unquoted - other non-Qualifying Investments - 100% Nature of Book Cost Valuation % of Net % of Company Business £'000 £'000 Assets Portfolio Structured Products Investec Bank plc Banking 328 519 31% 31% Total Structured Products 328 519 31% 31% Qualifying Investments Hampshire Cosmetics Limited Cosmetics 150 152 9% 9% Quai Administration Services Limited Technology 150 150 9% 9% Scancell Holdings plc Biotech 100 147 9% 9% Human Race Group Limited Leisure 150 143 8% 9% Terrain Energy Limited Onshore oil and gas production 95 127 7% 7% The One Place Capital Limited Personal finance 127 127 7% 7% Metropolitan Safe Custody Safe depository Limited services 90 108 6% 6% Horizon Discovery Limited Biotechnology 50 96 6% 6% Pico's Limited Leisure 50 64 4% 4% Venn Life Sciences Holdings plc Clinical research 80 43 3% 3% Secure Electrans Limited E-commerce security 75 - - - Heritage House Limited Publishing and media services 64 - - - Total Qualifying Investments 1,181 1,157 68% 69% Other non-Qualifying Investments Fidelity Liquidity Fund Liquidity fund - - - - Scottish Widows Liquidity Fund Liquidity fund 1 1 - - Total Other non-Qualifying Investments 1 1 - - Total Investments 1,510 1,677 99% 100% Net Current Assets less creditors due after one year 11 1% Net Assets 1,688 100% PRINCIPAL RISKS The principal risks facing the Company are substantially unchanged since the date of the Annual Report and Accounts for the year ended 28 February 2014 and continue to be as set out in that report. Risks faced by the Company include, but are not limited to, loss of approval as a venture capital trust and other regulatory breaches, risks of making Venture Capital Investments, risks attaching to investment in Structured Products, liquidity/marketability risk, changes in legislation/taxation, engagement of third party advisers, C shares versus ordinary shares, market price risk and credit risk. DIRECTORS' RESPONSIBILITY STATEMENT The Directors confirm that to the best of their knowledge: ● the condensed set of financial statements has been prepared in accordance with the Statement on Half Yearly Financial Reports issued by the UK Accounting Standards Board and gives a true and fair view of the assets, liabilities and financial position of the Company; and ● this Half Yearly Financial Report includes a fair review of the information required by: a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so. This Half Yearly Financial Report was approved by the Board of Directors on 29 October 2014 and the above responsibility statement was signed on its behalf by Michael O'Higgins, Chairman. CONDENSED INCOME STATEMENT FOR THE PERIOD FROM 1 MARCH 2014 TO 31 AUGUST 2014 (UNAUDITED) 6 Months Ended 6 Months Ended 12 Months Ended 31 August 2014 31 August 2013 28 February 2014* Revenue Capital Revenue Capital Revenue Capital Return Return Total Return Return Total Return Return Total Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Ordinary Share Fund Investment holding gains - 34 34 - 46 46 - 267 267 Gain on disposal of investments - 3 3 - 10 10 - 10 10 Income 40 - 40 69 - 69 74 - 74 Investment management fee (6) (17) (23) (6) (18) (24) (11) (34) (45) Other operating expenses (54) - (54) (55) - (55) (107) - (107) (Loss)/profit on ordinary activities before taxation (20) 20 - 8 38 46 (44) 243 199 Taxation on ordinary activities 3 - - - - - - - - - (Loss)/profit for the period (20) 20 - 8 38 46 (44) 243 199 Basic and diluted earnings per ordinary share 2 (0.4)p 0.4p 0.0p 0.2p 0.8p 1.0p (0.9)p 5.1p 4.2p 6 Months Ended 6 Months Ended 12 Months Ended 31 August 2014 31 August 2013 28 February 2014* Revenue Capital Revenue Capital Revenue Capital Return Return Total Return Return Total Return Return Total Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 C Share Fund Investment holding gains - 30 30 - 65 65 - 33 33 Gain on disposal of investments - - - - - - - 52 52 Income 11 - 11 11 - 11 22 - 22 Investment management fee (2) (7) (9) (2) (7) (9) (4) (13) (17) Other operating expenses (22) - (22) (22) - (22) (43) - (43) (Loss)/profit on ordinary activities before taxation (13) 23 10 (13) 58 45 (25) 72 47 Taxation on ordinary 3 - - - - - - - - - activities (Loss)/profit for the period (13) 23 10 (13) 58 45 (25) 72 47 Basic and diluted earnings per C share 2 (0.7)p 1.2p 0.5p (0.7)p 3.0p 2.3p (1.3)p 3.7p 2.4p * These figures are audited. The total columns of these statements represent the Income Statement of the Ordinary Share Fund and the C Share Fund. The supplementary revenue return and capital return columns are both prepared in accordance with the Association of Investment Companies ("AIC") Statement of Recommended Practice ("SORP"). 6 Months Ended 6 Months Ended 12 Months Ended 31 August 2014 31 August 2013 28 February 2014* Revenue Capital Revenue Capital Revenue Capital Return Return Total Return Return Total Return Return Total Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Total Investment holding gains - 64 64 - 111 111 - 300 300 Gain on disposal of investments - 3 3 - 10 10 - 62 62 Income 51 - 51 80 - 80 96 - 96 Investment management fee (8) (24) (32) (8) (25) (33) (15) (47) (62) Other operating expenses (76) - (76) (77) - (77) (150) - (150) (Loss)/profit on ordinary activities before taxation (33) 43 10 (5) 96 91 (69) 315 246 Taxation on ordinary activities 3 - - - - - - - - - (Loss)/profit for the period (33) 43 10 (5) 96 91 (69) 315 246 Basic and diluted earnings per ordinary share 2 (0.4)p 0.4p 0.0p 0.2p 0.8p 1.0p (0.9)p 5.1p 4.2p Basic and diluted earnings per C share 2 (0.7)p 1.2p 0.5p (0.7)p 3.0p 2.3p (1.3)p 3.7p 2.4p * These figures are audited. The total column of this statement represents the Company's Income Statement. The supplementary revenue return and capital return columns are both prepared in accordance with the AIC's SORP. No operations were acquired or discontinued during the period. All items in the above statements derive from continuing operations. There were no recognised gains or losses other than those passing through the Income Statement. The notes form an integral part of these Accounts. CONDENSED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS FOR THE PERIOD FROM 1 MARCH 2014 TO 31 AUGUST 2014 (UNAUDITED) Capital Capital Share Special Reserve Reserve Revenue Capital Reserve Realised Unrealised Reserve Total £'000 £'000 £'000 £'000 £'000 £'000 Ordinary Share Fund For the 6 month period to 31 August 2014 1 March 2014 47 3,729 273 736 (273) 4,512 Investment holding gains - - - 34 - 34 Gain on disposal of investments - - 3 - - 3 Management fee allocated to capital - - (17) - - (17) Revenue return on ordinary activities after tax - - - - (20) (20) Dividend paid (note 8) - (249) - - - (249) 31 August 2014 47 3,480 259 770 (293) 4,263 For the 6 month period to 31 August 2013 1 March 2013 47 3,978 297 469 (229) 4,562 Investment holding gains - - - 46 - 46 Gain on disposal of investments - - 10 - - 10 Management fee allocated to capital - - (18) - - (18) Revenue return on ordinary activities after tax - - - - 8 8 Dividend paid - (249) - - - (249) 31 August 2013 47 3,729 289 515 (221) 4,359 For the 12 months ended 28 February 2014 * 1 March 2013 47 3,978 297 469 (229) 4,562 Investment holding gains - - - 267 - 267 Gain on disposal of investments - - 10 - - 10 Management fee allocated to capital - - (34) - - (34) Revenue return on ordinary activities after tax - - - - (44) (44) Dividend paid - (249) - - - (249) 28 February 2014 47 3,729 273 736 (273) 4,512 * These figures are audited. The notes form an integral part of these Accounts. Capital Capital Share Special Reserve Reserve Revenue Capital Reserve Realised Unrealised Reserve Total £'000 £'000 £'000 £'000 £'000 £'000 C Share Fund For the 6 month period to 31 August 2014 1 March 2014 19 1,628 86 137 (105) 1,765 Investment holding gains - - - 30 - 30 Management fee allocated to capital - - (7) - - (7) Revenue return on ordinary activities after tax - - - - (13) (13) Dividend paid (note 8) - (87) - - - (87) 31 August 2014 19 1,541 79 167 (118) 1,688 For the 6 month period to 31 August 2013 1 March 2013 19 1,715 47 104 (80) 1,805 Investment holding gains - - - 65 - 65 Management fee allocated to capital - - (7) - - (7) Revenue return on ordinary activities after tax - - - - (13) (13) Dividend paid - (87) - - - (87) 31 August 2013 19 1,628 40 169 (93) 1,763 For the 12 months ended 28 February 2014* 1 March 2013 19 1,715 47 104 (80) 1,805 Investment holding gains - - - 33 - 33 Gain on disposal of investments - - 52 - - 52 Management fee allocated to capital - - (13) - - (13) Revenue return on ordinary activities after tax - - - - (25) (25) Dividend paid - (87) - - - (87) 28 February 2014 19 1,628 86 137 (105) 1,765 * These figures are audited. The notes form an integral part of these Accounts. Capital Capital Share Special Reserve Reserve Revenue Capital Reserve Realised Unrealised Reserve Total £'000 £'000 £'000 £'000 £'000 £'000 Total For the 6 month period to 31 August 2014 1 March 2014 66 5,357 359 873 (378) 6,277 Investment holding gains - - - 64 - 64 Gain on disposal of investments - - 3 - - 3 Management fee allocated to capital - - (24) - - (24) Revenue return on ordinary activities after tax - - - - (33) (33) Dividend paid (note 8) - (336) - - - (336) 31 August 2014 66 5,021 338 937 (411) 5,951 For the 6 month period to 31 August 2013 1 March 2013 66 5,693 344 573 (309) 6,367 Investment holding gains - - - 111 - 111 Gain on disposal of investments - - 10 - - 10 Management fee allocated to capital - - (25) - - (25) Revenue return on ordinary activities after tax - - - - (5) (5) Dividend paid - (336) - - - (336) 31 August 2013 66 5,357 329 684 (314) 6,122 For the 12 months ended 28 February 2014* 1 March 2013 66 5,693 344 573 (309) 6,367 Investment holding gains - - - 300 - 300 Gain on disposal of investments - - 62 - - 62 Management fee allocated to capital - - (47) - - (47) Revenue return on ordinary activities after tax - - - - (69) (69) Dividend paid - (336) - - - (336) 28 February 2014 66 5,357 359 873 (378) 6,277 *These figures are audited. The notes form an integral part of these Accounts. CONDENSED BALANCE SHEET AS AT 31 AUGUST 2014 (UNAUDITED) 31 August 31 August 28 February 2014 2013 2014* Note £'000 £'000 £'000 Ordinary Share Fund Fixed assets Investments 4 4,250 4,354 4,573 Current assets Debtors 99 79 73 Cash at bank and on deposit 6 14 - 105 93 73 Creditors: amounts falling due within one year Creditors (90) (80) (107) Bank overdraft - - (22) (90) (80) (129) Net current assets/(liabilities) 15 13 (56) Non-current liabilities IFA trail commission (2) (8) (5) Total net assets 4,263 4,359 4,512 Capital and reserves Called-up share capital 7 47 47 47 Special reserve 3,480 3,729 3,729 Capital reserve - realised 259 289 273 Capital reserve - unrealised 770 515 736 Revenue reserve (293) (221) (273) Total shareholders' funds 4,263 4,359 4,512 Net asset value per ordinary share basic 5 90.0p 92.0p 95.2p * These figures are audited. The notes form an integral part of these Accounts. 31 August 31 August 28 February 2014 2013 2014* Note £'000 £'000 £'000 C Share Fund Fixed assets Investments 4 1,677 1,553 1,647 Current assets Debtors 41 16 29 Cash at bank and on deposit 11 226 130 52 242 159 Creditors: amounts falling due within one year Creditors (37) (26) (36) Net current assets 15 216 123 Non-current liabilities IFA trail commission (4) (6) (5) Total net assets 1,688 1,763 1,765 Capital and reserves Called-up share capital 7 19 19 19 Special reserve 1,541 1,628 1,628 Capital reserve - realised 79 40 86 Capital reserve - unrealised 167 169 137 Revenue reserve (118) (93) (105) Total shareholders' funds 1,688 1,763 1,765 Net asset value per C share - basic 5 87.4p 91.3p 91.4p *These figures are audited. The notes form an integral part of these Accounts. 31 August 2014 31 August 2013 28 February 2014* Note £'000 £'000 £'000 Total Fixed assets Investments 4 5,927 5,907 6,220 Current assets Debtors 140 95 102 Cash at bank and on deposit 17 240 130 157 335 232 Creditors: amounts falling due within one year Creditors (127) (106) (143) Bank overdraft - - (22) (127) (106) (165) Net current assets 30 229 67 Non-current liabilities IFA trail commission (6) (14) (10) Total net assets 5,951 6,122 6,277 Capital and reserves Called-up share capital 7 66 66 66 Special reserve 5,021 5,357 5,357 Capital reserve - realised 338 329 359 Capital reserve - unrealised 937 684 873 Revenue reserve (411) (314) (378) Total shareholders' funds 5,951 6,122 6,277 Net asset value per ordinary share - basic 5 90.0p 92.0p 95.2p Net asset value per C share - basic 5 87.4p 91.3p 91.4p * These figures are audited. The notes form an integral part of these Accounts. CONDENSED CASH FLOW STATEMENT FOR TO THE PERIOD FROM 1 MARCH 2014 TO 31 AUGUST 2014 (UNAUDITED) 6 Months 6 Months 12 Months Ended Ended Ended 31 August 31 August 28 February 2014 2013 2014* Note £'000 £'000 £'000 Ordinary Share Fund Operating activities Investment income received 44 65 104 Investment management fees (56) (23) (22) Other cash payments (74) (26) (103) Cash flow from operations 6 (86) 16 (21) Cash flow from investing activities Purchase of investments - (12) (12) Sale of investments 363 260 261 Net cash flow from investing activities 363 248 249 Equity dividend paid 8 (249) (249) (249) Net cash flow before financing 28 15 (21) Cash flow from financing activities Expenses of share issues - (5) (5) Net cash flow from financing activities - (5) (5) Increase/(decrease) in cash at bank and on deposit 28 10 (26) * These figures are audited. The notes form an integral part of these Accounts. 6 Months 6 Months 12 Months Ended Ended Ended 31 August 31 August 28 February 2014 2013 2014* Note £'000 £'000 £'000 C Share Fund Operating activities Investment income received 11 12 22 Deposit interest received - 1 1 Investment management fees (13) (17) (17) Other cash payments (30) (4) (38) Cash flow from operations 6 (32) (8) (32) Cash flow from investing activities Purchase of investments - (230) (657) Sale of investments - - 353 Net cash flow from investing activities - (230) (304) Equity dividend paid 8 (87) (87) (87) Net cash flow before financing (119) (325) (423) Cash flow from financing activities Expenses of share issue - (5) (3) Net cash flow from financing activities - (5) (3) Decrease in cash at bank and on deposit (119) (330) (426) * These figures are audited. The notes form an integral part of these Accounts. 6 Months 6 Months 12 Months Ended Ended Ended 31 August 31 August 28 February 2014 2013 2014* Note £'000 £'000 £'000 Total Operating activities Investment income received 55 77 126 Deposit interest received - 1 1 Investment management fees (69) (40) (39) Other cash payments (104) (30) (141) Cash flow from operations 6 (118) 8 (53) Cash flow from investing activities Purchase of investments - (242) (669) Sale of investments 363 260 614 Net cash flow from investing activities 363 18 (55) Equity dividend paid 8 (336) (336) (336) Net cash flow before financing (91) (310) (444) Cash flow from financing activities Expenses of share issues - (10) (8) Net cash flow from financing activities - (10) (8) (Decrease)/increase in cash at bank and on deposit (91) (320) (452) * These figures are audited. The notes form an integral part of these Accounts. CONDENSED NOTES TO THE ACCOUNTS 1. Nature of Financial Information Basis of accounting These Accounts have been prepared under the historical cost convention, except for the valuation of financial assets at fair value through profit or loss, in accordance with UK Generally Accepted Accounting Practice ("UK GAAP"). These Accounts cover the six month period ended 31 August 2014. In determining the analysis of total income and expenses as between capital return and revenue return, the Directors have followed the guidance contained in the AIC SORP, as revised in 2009, and on the assumption that the Company maintains VCT status. The Accounts are prepared on the basis of the accounting policies set out in the Annual Report and Accounts for the year ended 28 February 2014. The financial information contained in this report does not constitute full statutory accounts as defined in Section 434 of the Companies Act 2006. The financial information for the six month period ended 31 August 2014 and the six month period ended 31 August 2013 has not been audited or reviewed by the Company's Auditors pursuant to the Auditing Practices Board guidance on such reviews. The information for the year ended 28 February 2014 has been extracted from the latest published Annual Report and Accounts, which have been filed with the Registrar of Companies. The report of the Auditors on those Accounts contained no qualification or statement under Section 498(2) or (3) of the Companies Act 2006. Going concern After making enquiries, and having reviewed the portfolio, balance sheet and projected income and expenditure for the next twelve months, the Directors have a reasonable expectation that the Company has adequate resources to continue in operation for the foreseeable future. The Directors have therefore adopted the going concern basis in preparing these Accounts. 2. Return per Share 6 Months Ended 6 Months Ended 12 Months Ended 31 August 2014 31 August 2013 28 February 2014 Revenue Capital Total Revenue Capital Total Revenue Capital Total pence pence pence pence pence pence pence Pence pence Return per ordinary share (0.4) 0.4 0.0 0.2 0.8 1.0 (0.9) 5.1 4.2 Return per C share (0.7) 1.2 0.5 (0.7) 3.0 2.3 (1.3) 3.7 2.4 Ordinary shares Revenue return per ordinary share is based on the net revenue loss on ordinary activities after taxation of £20,000 (31 August 2013: gain of £8,000; 28 February 2014: loss of £44,000) and on 4,738,463 ordinary shares (31 August 2013: 4,738,463; 28 February 2014: 4,738,463), being the weighted average number of ordinary shares in issue during the period. Capital return per ordinary share is based on the net capital gain for the period of £20,000 (31 August 2013: £38,000; 28 February 2014: £243,000) and on 4,738,463 ordinary shares (31 August 2013: 4,738,463; 28 February 2014: 4,738,463), being the weighted average number of ordinary shares in issue during the period. Total return per ordinary share is based on the net gain on ordinary activities for the period of £nil (31 August 2013: £46,000; 28 February 2014: £199,000) and on 4,738,463 ordinary shares (31 August 2013: 4,738,463; 28 February 2014: 4,738,463), being the weighted average number of ordinary shares in issue during the period. C shares Revenue return per C share is based on the net revenue loss on ordinary activities after taxation of £13,000 (31 August 2013: £13,000; 28 February 2014: £25,000) and on 1,931,095 C shares (31 August 2013: 1,931,095; 28 February 2014: 1,931,095), being the weighted average number of C shares in issue during the period. Capital return per C share is based on the net capital gain for the period of £23,000 (31 August 2014: £58,000; 28 February 2014: £72,000) and on 1,931,095 C shares (31 August 2013: 1,931,095; 28 February 2014: 1,931,095), being the weighted average number of C shares in issue during the period. Total return per C share is based on the total gain for the period of £10,000 (31 August 2013: £45,000; 28 February 2014: £47,000) and on 1,931,095 C shares (31 August 2013: 1,931,095; 28 February 2014: 1,931,095), being the weighted average number of C shares in issue during the period. 3. Taxation on Ordinary Activities The estimated effective tax rate at the year end is 0 per cent. for both share funds. This remains unchanged from the prior period. 4. Investments at Fair Value through Profit or Loss 31 August 31 August 28 February 2014 2013 2014 £'000 £'000 £'000 Ordinary Share Fund Investment portfolio summary Investments in Structured Products 1,946 1,727 1,883 Quoted/unquoted investments 2,303 2,625 2,689 Other investments 1 2 1 4,250 4,354 4,573 C Share Fund Investment portfolio summary Investments in Structured Products 519 707 503 Quoted/unquoted investments 1,157 743 1,143 Other investments 1 103 1 1,677 1,553 1,647 Total Investment portfolio summary Investments in Structured Products 2,465 2,434 2,386 Quoted/unquoted investments 3,460 3,368 3,832 Other investments 2 105 2 5,927 5,907 6,220 5. Net Asset Value per Share 31 August 31 August 28 February 2014 2013 2014 pence pence pence Net asset value per ordinary share 90.0 92.0 95.2 Net asset value per C share 87.4 91.3 91.4 The basic net asset value per ordinary share is based on net assets (including current period revenue) of £4,263,000 (31 August 2013: £4,359,000; 28 February 2014: £4,512,000) and on 4,738,463 ordinary shares (31 August 2013: 4,738,463; 28 February 2014: 4,738,463), being the number of ordinary shares in issue at the period end. The basic net asset value per C share is based on net assets of £1,688,000 (31 August 2013: £1,763,000; 28 February 2014: £1,765,000) and on 1,931,095 C shares (31 August 2013: 1,931,095; 28 February 2014: 1,931,095), being the number of C shares in issue at the period end. 6. Reconciliation of Net Profit before Tax to Cash Flow from Operating Activities 31 August 31 August 28 February 2014 2013 2014 £'000 £'000 £'000 Ordinary Share Fund Profit on ordinary activities before tax - 46 199 Gain on investments (37) (56) (277) (Increase)/decrease in debtors (26) 31 37 (Decrease)/increase in creditors (23) (5) 20 Cash flow from operating activities (86) 16 (21) C Share Fund Profit on ordinary activities before tax 10 45 47 Gain on investments (30) (65) (85) (Increase)/decrease in debtors (12) (18) 6 Decrease in creditors - (6) - Cash flow from operating activities (32) (8) (32) Total Profit on ordinary activities before tax 10 91 246 Gain on investments (67) (121) (362) (Increase)/decrease in debtors (38) 49 43 (Decrease)/increase in creditors (23) (11) 20 Cash flow from operating activities (118) 8 (53) 7. Called-up Share Capital 31 August 2014 Number £'000 Ordinary shares of 1p each 4,738,463 47 C shares of 1p each 1,931,095 19 8. Dividends For the year to 28 February 2014, the Ordinary Share Fund declared a final dividend of 5.25p per ordinary share on 4,738,463 shares amounting to £248,769. The dividend was paid on 24 July 2014 to ordinary shareholders on the register at 30 May 2014. For the year to 28 February 2014, the C Share Fund declared a final dividend of 4.5p per C share on 1,931,095 shares amounting to £86,899. The dividend was paid on 24 July 2014 to C shareholders on the register at 30 May 2014. 9. Transactions with Related Parties John Glencross, a Director of the Company, is considered to be a related party due to his position as Chief Executive and a director of Calculus Capital, one of the Company's Investment Managers. He does not receive any remuneration from the Company. He is a director of Terrain Energy Limited and Lime Technology Limited, companies in which the Company has invested. Fees for the provision of Mr Glencross as a director of these companies are paid to Calculus Capital and are disclosed in note 10. 10. Transactions with Investment Managers Investec Structured Products is an Investment Manager to the Company and is entitled to a performance incentive fee. Investec Structured Products will receive an arrangement fee of 0.75 per cent. of the amount invested in each Structured Product. This arrangement fee shall be paid to Investec Structured Products by the issuer of the relevant Structured Product. No arrangement fee will be paid to Investec Structured Products in respect of any decision to invest in Investec-issued Structured Products. Investec Structured Products has agreed not to earn an annual management fee from the Company. As at 31 August 2014, £84,238 (31 August 2013: £24,749; 28 February 2014: £56,734) was owed by Investec Structured Products as claw back of costs in excess of the agreed expenses cap of 3 per cent. to the Ordinary Share Fund. £34,699 (31 August 2013: £10,702; 28 February 2014: £23,236) was owed to the C Share Fund. Calculus Capital receives an investment management fee from the Company. For the period ended 31 August 2014, fees of £22,790 (31 August 2013: £23,310; 28 February 2014: £45,171) were payable to Calculus Capital by the Ordinary Share Fund. As at 31 August 2014, fees of £9,001 (31 August 2013: £9,099; 28 February 2014: £17,774) were payable by the C Share Fund. Calculus Capital is also entitled to a performance incentive fee. Calculus Capital receives an award fee from Terrain, Lime, Human Race, Metropolitan, Hampshire, Money Dashboard and Quai for the provision of a director, as well as an annual monitoring fee which also covers the provision of certain administrative support services. In the period ended 31 August 2014, the amount paid to Calculus Capital which was attributable to the investment made by the Company was £533 (31 August 2013: £1,648; 28 February 2014: £2,291) from Terrain; £1,069 (31 August 2013: £1,356; 28 February 2014: £2,112) from Lime; £1,870 (31 August 2013: £1,705; 28 February 2014: £3,665) from Human Race; £1,302 (31 August 2013: £482; 28 February 2014: £1,201) from Metropolitan; £1,561 (31 August 2013: £1,219; 28 February 2014: £2,167) from Hampshire; £753 (31 August 2013: £nil; 28 February 2014: £186) from Money Dashboard; and £677 (31 August 2013: £nil; 28 February 2014: £nil) from Quai (all excluding VAT). Calculus Capital receives an annual fee from Dryden, Corfe, Brigantes and Benito's Hat for the provision of a director. In the period ended 31 August 2014, the amount paid to Calculus Capital which was attributable to the investment made by the Company was £202 (31 August 2013: £901; 28 February 2014: £1,186) from Dryden; £375 (31 August 2013: £364; 28 February 2014: £734) from Brigantes; £222 (31 August 2013: £216; 28 February 2014: £435) from Corfe, and £149 (31 August 2013: £94; 28 February 2014: £374) from Benito's Hat (all excluding VAT). Calculus Capital also receives an annual monitoring fee from Tollan, MicroEnergy and AnTech which covers the provision of certain administrative support services. In the period ended 31 August 2014, the amount paid to Calculus Capital which was attributable to the investment made by the Company was £1,218 (31 August 2013: £1,406; 28 February 2014: £2,813) from Tollan; £630 (31 August 2013: £1,003; 28 February 2014: £2,097) from MicroEnergy; and £1,029 (31 August 2013: £nil; 28 February 2014: £2,455) from AnTech (all excluding VAT). COMPANY INFORMATION Directors Fund Administrator and Michael O'Higgins (Chairman) Company Secretary Kate Cornish-Bowden Capita Sinclair Henderson Limited John Glencross (Trading as Capita Asset Services) Steven Meeks Beaufort House 51 New North Road Exeter EX4 4EP Registered Office Beaufort House Auditors 51 New North Road Grant Thornton UK LLP Exeter EX4 4EP 30 Finsbury Square Telephone: 01392 477 500 London EC2P 2YU Company Number Sponsor and Broker 07142153 Nplus1 Singer Advisory LLP One Hanover Street Structured Products Investment London W1S 1YZ Manager Investec Structured Products Registrars 2 Gresham Street Capita Asset Services London EC2V 7QP The Registry Telephone: 020 7597 4000 34 Beckenham Road Website: Beckenham www.investecstructuredproducts.com Kent BR3 4TU Telephone: 0871 644 0300 Venture Capital Investments Manager Calculus Capital Limited (Calls cost 10p per minute plus network extras. Lines are open Monday to Friday 9.00 104 Park Street am to 5.30 pm). London W1K 6NF Telephone: 020 7493 4940 Website: www.calculuscapital.com Printed copies of the Investec Structured Products Calculus VCT plc Half Yearly Report for the six months ended 31 August 2014 has not been posted to shareholders. However a copy can be found on the following websites: www.calculuscapital.com and www.investecstructuredproducts.com. For further information, please contact: Investment Manager to the Structured Products Portfolio Investec Structured Products Gary Dale Telephone: 020 7597 4065 Investment Manager to the Venture Capital Portfolio Calculus Capital Limited Susan McDonald Telephone: 020 7493 4940 Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on this announcement (or any other website) are incorporated into, or form part of, this announcement.

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