Half-yearly report
Albion Development VCT PLC
As required by the UK Listing Authority's Disclosure and Transparency Rule 4.2,
Albion Development VCT PLC today makes public its information relating to the
Half-yearly Financial Report (which is unaudited) for the six months to 30 June
2011. This announcement was approved by the Board of Directors on 24 August
2011.
The full Half-yearly Financial Report (which is unaudited) for the period to 30
June 2011, will shortly be sent to shareholders. Copies of the full Half-yearly
Financial Report will be shown via the Albion Ventures LLP websitewww.albion-
ventures.co.uk under the "Our Funds" section by clicking Albion Development VCT
PLC.
Investment objectives
Albion Development VCT PLC (the "Company") is a venture capital trust which
raised a total of £33.3 million through the issue of shares between 1999 and
2004. The C Shares merged with the Ordinary Shares in 2007.
A further £6.3 million was raised through an issue of new D Shares in
2009/2010. The funds raised through the issue of the D Shares will be invested
in accordance with the Company's existing investment policy.
The Ordinary Shares raised a further £1.67m in early 2011 under the Albion VCTs
Linked Top Up Offer.
The Company's investment policy is intended to provide investors with a regular
and predicable source of dividend income combined with the prospects of long
term capital growth. This is achieved by establishing a diversified portfolio of
holdings in smaller, unquoted companies whilst at the same time selecting and
structuring investments in such a way as to balance the risks normally
associated with investment in such companies. It is intended that this will be
achieved as follows:
* Through investment in a small number of higher risk companies with greater
growth prospects in sectors such as software and computer services, and
medical technology.
* This is balanced by investments that provide a strong income stream combined
with a stability of capital. These include freehold-based businesses in the
leisure sector, such as pubs and health clubs, as well as other sectors
including business services, environmental and healthcare. Such investments
will constitute the majority of investments by cost.
* In neither category do investee companies normally have any external
borrowings with a prior charge ranking ahead of the Company.
* Up to two-thirds of qualifying investments by cost comprise loan stock
secured with a first charge on the investee company's assets.
Financial calendar
Record date for second dividend 2 September 2011
Payment date for second dividend 30 September 2011
Financial year end 31 December 2011
Financial highlights
+--------------+-------------------------------+-------------------------------+
|Â | Ordinary Shares | D shares |
| +----------+----------+---------+----------+----------+---------+
|Â | Unaudited| Unaudited| Audited| Unaudited| Unaudited| Audited|
| |Six months|Six months| Year|Six months|Six months| Year|
| | ended| ended| ended| ended| ended| ended|
| | 30 June| 30 June| 31 | 30 June| 30 June| 31 |
| | 2011| 2010| December| 2011| 2010| December|
| |(pence per|(pence per| 2010|(pence per|(pence per| 2010|
| | share)| share)| (pence| share)| share)| (pence|
| | | | per| | | per|
| | | | share)| | | share)|
| | | | | | | |
|Net asset | 74.80| 77.00| 75.40| 91.70| 94.40| 93.00|
|value | | | | | | |
| | | | | | | |
|Revenue return| 0.60| 0.70| 1.50| 0.40| 0.40| 0.30|
| | | | | | | |
|Capital | 1.20| 0.90| 2.40| (0.60)| (0.70)| (0.90)|
|return/(loss) | | | | | | Â |
+--------------+----------+----------+---------+----------+----------+---------+
 Ordinary shares C shares D shares (pence
(pence per share) (pence per share) per share) (i)
(i) (i)
Total shareholder net
asset value return to
30 June 2011
Total dividends paid
during the period ended:
 31 December 1999(ii) 1.00 - -
 31 December 2000 2.90 - -
 31 December 2001 3.95 - -
 31 December 2002 4.20 - -
 31 December 2003(iii) 4.50 0.75 -
 31 December 2004 4.00 2.00 -
 31 December 2005 5.20 5.90 -
 31 December 2006 3.00 4.50 -
 31 December 2007(iv) 5.00 5.36 -
 31 December 2008(iv) 12.00 12.86 -
 31 December 2009(iv) 4.00 4.29 -
 31 December 2010(iv) 8.00 8.58 1.00
 30 June 2011(iv) 2.50 2.70 1.25
--------------------------------------------------------
Total dividends paid to 2.25
30 June 2011 60.25 46.94
Net asset value as at 91.70
30 June 2011(iv) 74.80 80.10
--------------------------------------------------------
Total shareholder net
asset value return to 93.95
30 June 2011 135.05 127.04
--------------------------------------------------------
The Directors have declared a second dividend of 2.5 pence per Ordinary share
and 1.25 pence per D share payable on 30 September 2011 to shareholders on the
register as at 2 September 2011.
Notes
(i) Excludes tax benefits upon subscription.
(ii) Assuming subscription for Ordinary shares by the First Closing on 26
January 1999.
(iii) Those subscribing for C shares after 30 June 2003 were not entitled to the
interim dividend.
(iv) The C shares were converted into Ordinary shares on 31 March 2007, with a
conversion ratio of 1.0715 Ordinary shares for each C share. The net asset value
per share and all dividends paid subsequent to the conversion of the C shares to
the Ordinary shares are multiplied by the conversion factor of 1.0715 in respect
of the C shares' return, in order to give an accurate picture of the shareholder
value since launch relating to the C shares.
Interim management report
Introduction
The results for Albion Development VCT PLC for the six months to 30 June 2011
show further progress from the low point of the UK recession. Â The Ordinary
Share portfolio recorded a positive total return of 1.80 pence per share, while
the D Shares, whose portfolio is still being built up, had a small negative
total return of 0.20 pence.
Investment Performance and progress
During the period, the VCT benefitted particularly from the realisation of its
investment in Dexela, the medical imaging business. Â The company was sold to
Perkin Elmer of the US in June and investors expect to make up to three times
return on their investment. Â The sale resulted in an uplift in valuation of just
under £500,000.  Elsewhere within the portfolio, strong performances in a number
of cases were counterbalanced by slower than hoped for progress by Lowcosttravel
and Prime Care.
During the period, a total of £460,000 was invested by the Ordinary Share
portfolio in three new investee companies and five existing investee companies.
 Of these eight businesses, three were in the environmental or renewable sector
and four were in the healthcare sector.  Meanwhile, £785,000 was invested in
four companies by the D share portfolio, taking its level of investment to 43%.
Set out at the bottom of this announcement is the sector diversification of the
portfolio of the investments made by the Ordinary shares and the D shares as at
30 June 2011.
Source: Albion Ventures LLP
Risks, uncertainties and prospects
We remain cautious over the short and medium term prospects of the UK and global
economies in view of the currency and debt constraints which are increasingly
becoming apparent. Â Nevertheless, we believe that many of the sectors in which
we operate, and the investee companies which we support, will be able to grow
despite these broader uncertainties. Â In addition, it remains our general policy
that investee companies have no external bank borrowings. Â Therefore, as the
investment portfolio continues to mature, the prospects on the whole look more
positive than they have for some time.
Other risks and uncertainties remain unchanged and there are details on pages
20 to 21 of the Annual Report and Financial Statements for the year ended 31
December 2010, as shown in note 13 to this report.
Issue of shares
During the period a total of £1.67 million was raised by the issue of Ordinary
shares under the Albion VCTs Linked Top Up Offer. The Offer has now closed.
Details are shown in note 7.
Related party transactions
Details of material related party transactions for the reporting period can be
found in note 11 of this Half-yearly Financial Report.
Results, dividend and prospects
As at 30 June 2011 the net asset value per Ordinary Share was 74.80 pence (30
June 2010: 77.00 pence; 31 December 2010: 75.40 pence).
The D Share net asset value at 30 June 2011 was 91.70 pence compared to 94.40
pence at 30 June 2010 and 93.00 pence at 31 December 2010.
The Ordinary Share portfolio's total return before tax for the six months to 30
June 2011 was £539,000 compared to £483,000 for the six months to 30 June 2010,
and for the D Shares it was a loss of £9,000 compared to a loss of £11,000.
 Second dividends of 2.5 pence per Ordinary Share and 1.25 pence per D Share
will be paid on 30 September 2011 to those shareholders on the register on 2
September 2011.
Jonathan Thornton
Director
24 August 2011
Responsibility statement
The Directors, Geoffrey Vero, David Pinckney, Jonathan Thornton and Andrew
Phillipps, are responsible for preparing the Half-yearly Financial Report. The
Directors have chosen to prepare this Half-yearly Financial Report for the
Company in accordance with United Kingdom Generally Accepted Accounting Practice
("UK GAAP").
In preparing these summarised financial statements for the period to 30 June
2011, we the Directors of the Company, confirm that to the best of our
knowledge:
(a) the summarised set of financial statements has been prepared in accordance
with the pronouncement on interim reporting issued by the Accounting Standards
Board;
(b) the interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first six
months and description of principal risks and uncertainties for the remaining
six months of the year);
(c) the summarised set of financial statements give a true and fair view in
accordance with UK GAAP of the assets, liabilities, financial position and
profit and loss of the Company for the six months ended 30 June 2011 and comply
with UK GAAP and Companies Act 1985 and 2006; Â and
(d) the interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions and changes
therein).
The accounting policies applied to the Half-yearly Financial Report have been
consistently applied in current and prior periods and are those applied in the
Annual Report and Financial Statements for the year ended 31 December 2010.
This Half-yearly Financial Report has not been audited or reviewed by the
Auditor.
By order of the Board
Jonathan Thornton
Director
24 August 2011
Portfolio of investments
Ordinary shares
The following is a summary of qualifying fixed asset investments as at 30 June
2011:
+-------------------+----------------------------------------------------------+
|Â | As at 30 June 2011 (unaudited) |
+-------------------+-------------+------+-----------------+-----+-------------+
| | | | | | Change in|
| | | | Cumulative|Total|value for the|
| | % voting| Cost|movement in value|value| period *|
|Investee company | rights| £'000| £'000|£'000| £'000|
+-------------------+-------------+------+-----------------+-----+-------------+
|Asset-backed | | | | | |
|investments | Â | Â | Â | Â | Â |
| | | | | | |
|The Weybridge Club | | | | | |
|Limited | 9.4| 1,520| (271)|1,249| (81)|
| | | | | | |
|CS (Greenwich) | | | | | |
|Limited* | 15.5| 830| 124| 954| 133|
| | | | | | |
|Kensington Health | | | | | |
|Clubs Limited | 4.9| 1,124| (313)| 811| 36|
| | | | | | |
|Radnor House School| | | | | |
|(Holdings) Limited | 4.2| 734| 12| 746| 11|
| | | | | | |
|Taunton Hospital | | | | | |
|Limited | 9.1| 576| 10| 586| 4|
| | | | | | |
|Tower Bridge Health| | | | | |
|Clubs Limited* | 7.9| 482| 64| 546| 36|
| | | | | | |
|Bravo Inns II | | | | | |
|Limited | 4.5| 560| (28)| 532| (2)|
| | | | | | |
|CS (Brixton) | | | | | |
|Limited | 8.4| 356| 168| 524| 64|
| | | | | | |
|The Q Garden | | | | | |
|Company Limited | 16.6| 1,198| (701)| 497| -|
| | | | | | |
|The Charnwood Pub | | | | | |
|Company Limited | 3.3| 1,156| (662)| 494| 33|
| | | | | | |
|Evolutions | | | | | |
|Television Limited*| 23.7| 1,794| (1,566)| 228| 8|
| | | | | | |
|TEG Biogas (Perth) | | | | | |
|Limited | 6.1| 176| -| 176| -|
| | | | | | |
|The Street by | | | | | |
|Street Solar | | | | | |
|Programme Limited | 3.5| 142| -| 142| -|
| | | | | | |
|Bravo Inns Limited | 2.6| 230| (90)| 140| 14|
| | | | | | |
|Premier Leisure | | | | | |
|(Suffolk) Limited | 6.5| 480| (365)| 115| (6)|
| | | | | | |
|Nelson House | | | | | |
|Hospital Limited | 3.0| 102| -| 102| -|
| | | | | | |
|CS (Exeter) Limited| 8.3| 135| (34)| 101| 3|
| | | | | | |
|GB Pub Company VCT | | | | | |
|Limited | 9.1| 368| (270)| 98| (44)|
| | | | | | |
|The Dunedin Pub | | | | | |
|Company VCT Limited| 6.2| 67| (2)| 65| (6)|
| | | | | | |
|City Screen | | | | | |
|(Liverpool) Limited| 4.6| 56| (14)| 42| (3)|
| | | | | | |
|CS (Norwich) | | | | | |
|Limited | 3.1| 50| 2| 52| 7|
| | | | | | |
|Regenerco Renewable| | | | | |
|Energy Limited | 1.4| 35| -| 35| -|
| | | | | | |
|AVESI Limited | 3.5| 28| -| 28| -|
| | | | | | |
|Â | Â | Â | Â | Â | Â |
+-------------------+-------------+------+-----------------+-----+-------------+
|Total asset-backed | | | | | |
|investments | Â |12,199| (3,936)|8,263| 207|
+-------------------+-------------+------+-----------------+-----+-------------+
* as adjusted for additions, disposals and restructuring
+------------------------+-----------------------------------------------------+
|Â | As at 30 June 2011 (unaudited) |
+------------------------+-----------+------+---------------+------+-----------+
| | | | | | Change in|
| | | | Cumulative| | value for|
| | | | movement in| Total| the period|
| | % voting| Cost| value| value| *|
|Investee company | rights| £'000| £'000| £'000| £'000|
+------------------------+-----------+------+---------------+------+-----------+
|Growth investments | Â | Â | Â | Â | Â |
| | | | | | |
|Blackbay Limited* | 7.4| 828| 237| 1,065| 37|
| | | | | | |
|Peakdale Molecular | | | | | |
|Limited* | 8.8| 991| (99)| 892| 61|
| | | | | | |
|Prime Care Holdings | | | | | |
|Limited | 9.4| 559| (60)| 499| (110)|
| | | | | | |
|Consolidated PR Limited | 11.8| 570| (84)| 486| 62|
| | | | | | |
|Mirada Medical Limited | 7.2| 240| 196| 436| 52|
| | | | | | |
|Mi-Pay Limited | 4.6| 497| (75)| 422| (53)|
| | | | | | |
|Lowcosttravelgroup | | | | | |
|Limited | 4.0| 435| (58)| 377| (212)|
| | | | | | |
|Helveta Limited | 2.6| 395| (36)| 359| (35)|
| | | | | | |
|DySIS Medical Limited | | | | | |
|(formerly Forth | | | | | |
|Photonics Limited) | 2.6| 350| (67)| 283| (27)|
| | | | | | |
|Xceleron Limited | 3.9| 440| (170)| 270| (33)|
| | | | | | |
|Masters Pharmaceuticals | | | | | |
|Limited | 1.0| 202| (3)| 199| (5)|
| | | | | | |
|Opta Sports Data Limited| 1.3| 165| (16)| 149| 9|
| | | | | | |
|Rostima Holdings Limited| 4.8| 94| 53| 147| 53|
| | | | | | |
|memsstar Limited | | | | | |
|(formerly Point 35 | | | | | |
|Microstructures Limited)| 1.6| 124| 18| 142| 18|
| | | | | | |
|Dexela Limited** | n/a| -| 138| 138| 138|
| | | | | | |
|Process Systems | | | | | |
|Enterprise Limited | 1.0| 95| 23| 118| 41|
| | | | | | |
|Oxsensis Limited | 1.4| 192| (83)| 109| -|
| | | | | | |
|Chichester Holdings | | | | | |
|Limited | 10.6| 700| (592)| 108| (3)|
| | | | | | |
|Abcodia Limited | 1.7| 60| -| 60| -|
| | | | | | |
|Â | Â | Â | Â | Â | Â |
+------------------------+-----------+------+---------------+------+-----------+
|Total growth investments| Â | 6,937| (678)| 6,259| (7)|
+------------------------+-----------+------+---------------+------+-----------+
+------------------------+-----------+------+---------------+------+-----------+
|Total qualifying | | | | | |
|investments | Â |19,136| (4,614)|14,522| 200|
+------------------------+-----------+------+---------------+------+-----------+
* Â as adjusted for additions, disposals and restructuring
** the residual investment in Dexela Limited represents the risk-adjusted value
of the expected deferred consideration arising from the disposal of the
Company's equity holdings in that company in the six-month period to 30 June
2011
The following is a summary of non-qualifying fixed asset investments as at 30
June 2011:
+----------------------+-------------------------------------------------------+
|Â | As at 30 June 2011 (unaudited) |
+----------------------+------------+------+----------------+------+-----------+
| | | | | | Change in|
| | | | Cumulative| | value for|
| | | | movement in| Total| the period|
| | % voting| Cost| value| value| *|
|Investee company | rights| £'000| £'000| £'000| £'000|
+----------------------+------------+------+----------------+------+-----------+
|Evolutions Group | | | | | |
|Limited* | 46.7| 3,107| (724)| 2,383| -|
| | | | | | |
|Albion Investment | | | | | |
|Properties Limited | | | | | |
|(formerly Smiles Pub | | | | | |
|Company Limited) | 48.4| 929| (113)| 816| 21|
| | | | | | |
|Consolidated PR | | | | | |
|Limited | 11.8| 33| 23| 56| 10|
| | | | | | |
|Green Energy | | | | | |
|PropertyServices Group| | | | | |
|Limited | 6.0| 34| (17)| 17| -|
| | | | | | |
|Â | Â | Â | Â | Â | Â |
+----------------------+------------+------+----------------+------+-----------+
|Total non-qualifying | | | | | |
|investments | Â | 4,103| (831)| 3,272| 31|
+----------------------+------------+------+----------------+------+-----------+
|Total fixed asset | | | | | |
|investments | Â |23,239| (5,445)|17,794| 231|
+----------------------+------------+------+----------------+------+-----------+
* Â as adjusted for additions, disposals and restructuring
Portfolio of investments
D shares
The following is a summary of qualifying fixed asset investments as at 30 June
2011:
+----------------------+-------------------------------------------------------+
|Â | As at 30 June 2011 (unaudited) |
+----------------------+-------------+-----+----------------+-----+------------+
| | | | Cumulative| | Change in|
| | | | movement in|Total| value for|
| | % voting| Cost| value|value|the period *|
|Investee company | rights|£'000| £'000|£'000| £'000|
+----------------------+-------------+-----+----------------+-----+------------+
|Radnor House School | | | | | |
|(Holdings) Limited | 4.6| 800| 37| 837| 22|
| | | | | | |
|Masters | | | | | |
|Pharmaceuticals | | | | | |
|Limited | 2.5| 506| (6)| 500| (13)|
| | | | | | |
|TEG Biogas (Perth) | | | | | |
|Limited | 14.3| 414| -| 414| -|
| | | | | | |
|The Street by Street | | | | | |
|Solar Programme | | | | | |
|Limited | 9.5| 380| -| 380| -|
| | | | | | |
|Nelson House Hospital | | | | | |
|Limited | 8.6| 294| -| 294| -|
| | | | | | |
|Bravo Inns II Limited | 1.5| 160| (3)| 157| (3)|
| | | | | | |
|Regenerco Renewable | | | | | |
|Energy Limited | 3.8| 95| -| 95| -|
| | | | | | |
|AVESI Limited | 9.5| 76| -| 76| -|
| | | | | | |
|Abcodia Limited | 2.1| 75| -| 75| -|
| | | | | | |
|Â | Â | Â | Â | Â | Â |
+----------------------+-------------+-----+----------------+-----+------------+
|Total qualifying | | | | | |
|investments | Â |2,800| 28|2,828| 6|
+----------------------+-------------+-----+----------------+-----+------------+
* Â as adjusted for additions and disposals
Summary income statement (Combined Ordinary and D shares)
+---------------+----+---------------------+---------------------+---------------------+
|Â |Â | Unaudited | Unaudited | Audited |
| | | six months ended | six months ended | year ended |
| | | 30 June 2011 | 30 June 2010* | 31 December 2010 |
| | | Â | Â | Â |
+---------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
| | |Revenue|Capital|Total|Revenue|Capital|Total|Revenue|Capital|Total|
|  |Note| £'000| £'000|£'000| £'000| £'000|£'000| £'000| £'000|£'000|
+---------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
|Gains on | | | | | | | | | | |
|investments | 3| -| 508| 508| -| 414| 414| -| 1,005|1,005|
| | | | | | | | | | | |
|Investment | | | | | | | | | | |
|income | 4| 447| -| 447| 469| -| 469| 924| -| 924|
| | | | | | | | | | | |
|Investment | | | | | | | | | | |
|management fees| Â | (80)| (239)|(319)| (72)| (218)|(290)| (152)| (457)|(609)|
| | | | | | | | | | | |
|Other expenses | Â | (106)| -|(106)| (121)| -|(121)| (229)| -|(229)|
| +----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
|Return on | | | | | | | | | | |
|ordinary | | | | | | | | | | |
|activities | | | | | | | | | | |
|before tax | Â | 261| 269| 530| 276| 196| 472| 543| 548|1,091|
| | | | | | | | | | | |
|Tax | | | | | | | | | | |
|(charge)/credit| | | | | | | | | | |
|on ordinary | | | | | | | | | | |
|activities | Â | (60)| 52| (8)| (68)| 52| (16)| (82)| 114| 32|
| +----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
|Return | | | | | | | | | | |
|attributable to| | | | | | | | | | |
|shareholders | Â | 201| 321| 522| 208| 248| 456| 461| 662|1,123|
+---------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
* D shares were first allotted 23 December 2009
Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2010 and the audited statutory accounts
for the year ended 31 December 2010.
The accompanying notes form an integral part of this Half-yearly Financial
Report.
The total column of this Summary income statement represents the profit and loss
account of the Company. The supplementary revenue and capital columns have been
prepared in accordance with the Association of Investment Companies' Statement
of Recommended Practice.
All revenue and capital items in the above statement derive from continuing
operations.
There are no recognised gains or losses other than the results for the periods
disclosed above. Accordingly, a Statement of total recognised gains and losses
is not required. The difference between the reported return on ordinary
activities before tax and the historical profit is due to the fair value
movements on investments. Accordingly, a note on historical cost profit and
losses has not been prepared.
Summary income statement (Ordinary shares)
+---------------+----+---------------------+---------------------+---------------------+
|Â |Â | Unaudited | Unaudited | Audited |
| | | six months ended | six months ended | year ended |
| | | 30 June 2011 | 30 June 2010 | 31 December 2010 |
| | | Â | Â | Â |
+---------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
| | |Revenue|Capital|Total|Revenue|Capital|Total|Revenue|Capital|Total|
|  |Note| £'000| £'000|£'000| £'000| £'000|£'000| £'000| £'000|£'000|
+---------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
|Gains on | | | | | | | | | | |
|investments | 3| -| 502| 502| -| 413| 413| -| 985| 985|
| | | | | | | | | | | |
|Investment | | | | | | | | | | |
|income | 4| 372| -| 372| 433| -| 433| 835| -| 835|
| | | | | | | | | | | |
|Investment | | | | | | | | | | |
|management fees| Â | (64)| (190)|(254)| (62)| (187)|(249)| (125)| (376)|(501)|
| | | | | | | | | | | |
|Other expenses | Â | (81)| -| (81)| (114)| -|(114)| (185)| -|(185)|
| +----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
|Return on | | | | | | | | | | |
|ordinary | | | | | | | | | | |
|activities | | | | | | | | | | |
|before tax | Â | 227| 312| 539| 257| 226| 483| 525| 609|1,134|
| | | | | | | | | | | |
|Tax | | | | | | | | | | |
|(charge)/credit| | | | | | | | | | |
|on ordinary | | | | | | | | | | |
|activities | Â | (53)| 45| (8)| (63)| 48| (15)| (78)| 97| 19|
| +----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
|Return | | | | | | | | | | |
|attributable to| | | | | | | | | | |
|shareholders | Â | 174| 357| 531| 194| 274| 468| 447| 706|1,153|
+---------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
|Basic and | | | | | | | | | | |
|diluted return | | | | | | | | | | |
|per share | | | | | | | | | | |
|(pence)* | 6| 0.60| 1.20| 1.80| 0.70| 0.90| 1.60| 1.50| 2.40| 3.90|
+---------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-----+
* Excluding treasury shares
Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2010 and the audited statutory accounts
for the year ended 31 December 2010.
The accompanying notes form an integral part of this Half-yearly Financial
Report.
The total column of this Summary income statement represents the profit and loss
account of the Company. The supplementary revenue and capital columns have been
prepared in accordance with the Association of Investment Companies' Statement
of Recommended Practice.
All revenue and capital items in the above statement derive from continuing
operations.
There are no recognised gains or losses other than the results for the periods
disclosed above. Accordingly, a Statement of total recognised gains and losses
is not required. The difference between the reported return on ordinary
activities before tax and the historical profit is due to the fair value
movements on investments. Accordingly, a note on historical cost profit and
losses has not been prepared.
Summary income statement (D shares)
+---------------+----+----------------------+----------------------+----------------------+
|Â |Â | Unaudited | Unaudited | Audited |
| | | six months ended | six months ended | year ended |
| | | 30 June 2011 | 30 June 2010 | 31 December 2010 |
| | | Â | Â | Â |
+---------------+----+-------+-------+------+-------+-------+------+-------+-------+------+
| | |Revenue|Capital| Total|Revenue|Capital| Total|Revenue|Capital| Total|
|  |Note| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+---------------+----+-------+-------+------+-------+-------+------+-------+-------+------+
|Gains on | | | | | | | | | | |
|investments | 3| -| 6| 6| -| 1| 1| -| 20| 20|
| | | | | | | | | | | |
|Investment | | | | | | | | | | |
|income | 4| 75| -| 75| 36| -| 36| 89| -| 89|
| | | | | | | | | | | |
|Investment | | | | | | | | | | |
|management fees| Â | (16)| (49)| (65)| (10)| (31)| (41)| (27)| (81)| (108)|
| | | | | | | | | | | |
|Other expenses | Â | (25)| -| (25)| (7)| -| (7)| (44)| -| (44)|
| +----+-------+-------+------+-------+-------+------+-------+-------+------+
|Return/(loss) | | | | | | | | | | |
|on ordinary | | | | | | | | | | |
|activities | | | | | | | | | | |
|before tax | Â | 34| (43)| (9)| 19| (30)| (11)| 18| (61)| (43)|
| | | | | | | | | | | |
|Tax | | | | | | | | | | |
|(charge)/credit| | | | | | | | | | |
|on ordinary | | | | | | | | | | |
|activities | Â | (7)| 7| -| (5)| 4| (1)| (4)| 17| 13|
| +----+-------+-------+------+-------+-------+------+-------+-------+------+
|Return/(loss) | | | | | | | | | | |
|attributable to| | | | | | | | | | |
|shareholders | Â | 27| (36)| (9)| 14| (26)| (12)| 14| (44)| (30)|
+---------------+----+-------+-------+------+-------+-------+------+-------+-------+------+
|Basic and | | | | | | | | | | |
|diluted | | | |Â Â Â | | | | | | |
|return/(loss) | | | |(0.20)| | | | | | |
|per share | | | |Â Â Â | | | | | | |
|(pence) | 6| 0.40| (0.60)| Â | 0.40| (0.70)|(0.30)| 0.30| (0.90)|(0.60)|
+---------------+----+-------+-------+------+-------+-------+------+-------+-------+------+
Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2010 and the audited statutory accounts
for the year ended 31 December 2010.
The accompanying notes form an integral part of this Half-yearly Financial
Report.
The total column of this Summary income statement represents the profit and loss
account of the Company. The supplementary revenue and capital columns have been
prepared in accordance with the Association of Investment Companies' Statement
of Recommended Practice.
All revenue and capital items in the above statement derive from continuing
operations.
There are no recognised gains or losses other than the results for the periods
disclosed above. Accordingly, a Statement of total recognised gains and losses
is not required. The difference between the reported loss on ordinary activities
before tax and the historical profit is due to the fair value movements on
investments. Accordingly, a note on historical cost profit and losses has not
been prepared.
Summary balance sheet (Combined)
+-----------------------------+----+------------+-------------+----------------+
|Â | | Unaudited| Unaudited| Audited|
| | |30 June 2011|30 June 2010*|31 December 2010|
| |Note| £'000| £'000| £'000|
+-----------------------------+----+------------+-------------+----------------+
|Fixed asset investments | Â | 20,622| 19,043| 19,639|
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Current assets | Â | Â | Â | Â |
| | | | | |
|Trade and other debtors | Â | 621| 173| 237|
| | | | | |
|Cash at bank and in hand | 9| 8,563| 9,789| 8,512|
| | +------------+-------------+----------------+
|Â | Â | 9,184| 9,962| 8,749|
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Creditors: amounts falling | | | | |
|due within one year | Â | (800)| (388)| (470)|
| | +------------+-------------+----------------+
|Net current assets | Â | 8,384| 9,574| 8,279|
| | +------------+-------------+----------------+
|Net assets | Â | 29,006| 28,617| 27,918|
| | +------------+-------------+----------------+
|Â | Â | Â | Â | Â |
| | | | | |
|Capital and reserves | Â | Â | Â | Â |
| | | | | |
|Called up share capital | Â | 20,294| 19,504| 19,388|
| | | | | |
|Share premium | Â | 620| 2,843| 37|
| | | | | |
|Capital redemption reserve | Â | 1,667| 1,255| 1,426|
| | | | | |
|Unrealised capital reserve | Â | (5,497)| (6,275)| (5,063)|
| | | | | |
|Special reserve | Â | 9,333| 12,392| 10,497|
| | | | | |
|Treasury shares reserve | Â | (2,633)| (2,664)| (2,633)|
| | | | | |
|Realised capital reserve | Â | 3,615| 1,323| 2,860|
| | | | | |
|Revenue reserve | Â | 1,607| 239| 1,406|
| | +------------+-------------+----------------+
|Total equity shareholders' | | | | |
|funds | Â | 29,006| 28,617| 27,918|
+-----------------------------+----+------------+-------------+----------------+
* D shares were first allotted 23 December 2009
Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2010 and the audited statutory accounts
for the year ended 31 December 2010.
The accompanying notes form an integral part of this Half-yearly Financial
Report.
These Financial Statements were approved by the Board of Directors and
authorised for issue on 24 August 2011, and were signed on its behalf by
Jonathan Thornton
Director
Company number: 3654040
Summary balance sheet (Ordinary shares)
+-----------------------------+----+------------+-------------+----------------+
|Â | | Unaudited| Unaudited| Audited|
| | |30 June 2011|30 June 2010*|31 December 2010|
| |Note| £'000| £'000| £'000|
+-----------------------------+----+------------+-------------+----------------+
|Fixed asset investments | Â | 17,794| 18,641| 17,853|
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Current assets | Â | Â | Â | Â |
| | | | | |
|Trade and other debtors | Â | 605| 168| 219|
| | | | | |
|Cash at bank and in hand | 9| 5,025| 4,039| 4,227|
| | +------------+-------------+----------------+
|Â | Â | 5,630| 4,207| 4,446|
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Creditors: amounts falling | | | | |
|due within one year | Â | (235)| (211)| (279)|
| | +------------+-------------+----------------+
|Net current assets | Â | 5,395| 3,996| 4,167|
| | +------------+-------------+----------------+
|Net assets | Â | 23,189| 22,637| 22,020|
| | +------------+-------------+----------------+
|Â | Â | Â | Â | Â |
| | | | | |
|Capital and reserves | Â | Â | Â | Â |
| | | | | |
|Called up share capital | 7| 17,122| 16,336| 16,220|
| | | | | |
|Share premium | Â | 618| 19| 37|
| | | | | |
|Capital redemption reserve | Â | 1,667| 1,255| 1,426|
| | | | | |
|Unrealised capital reserve | Â | (5,523)| (6,276)| (5,083)|
| | | | | |
|Special reserve | Â | 6,666| 12,392| 7,752|
| | | | | |
|Treasury shares reserve | Â | (2,633)| (2,664)| (2,633)|
| | | | | |
|Realised capital reserve | Â | 3,721| 1,352| 2,924|
| | | | | |
|Revenue reserve | Â | 1,551| 224| 1,377|
| | +------------+-------------+----------------+
|Total equity shareholders' | | | | |
|funds | Â | 23,189| 22,637| 22,020|
| | +------------+-------------+----------------+
|Net asset value per share | | | | |
|(pence) * | Â | 74.80| 77.00| 75.40|
+-----------------------------+----+------------+-------------+----------------+
*excluding treasury shares
Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2010 and the audited statutory accounts
for the year ended 31 December 2010.
The accompanying notes form an integral part of this Half-yearly Financial
Report.
Summary balance sheet (D shares)
+-----------------------------+----+------------+-------------+----------------+
|Â | | Unaudited| Unaudited| Audited|
| | |30 June 2011|30 June 2010*|31 December 2010|
| |Note| £'000| £'000| £'000|
+-----------------------------+----+------------+-------------+----------------+
|Fixed asset investments | Â | 2,828| 402| 1,786|
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Current assets | Â | Â | Â | Â |
| | | | | |
|Trade and other debtors | Â | 16| 5| 18|
| | | | | |
|Cash at bank and in hand | 9| 3,538| 5,750| 4,285|
| | +------------+-------------+----------------+
|Â | Â | 3,554| 5,755| 4,303|
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Creditors: amounts falling | | | | |
|due within one year | Â | (565)| (177)| (191)|
| | +------------+-------------+----------------+
|Net current assets | Â | 2,989| 5,578| 4,112|
| | +------------+-------------+----------------+
|Net assets | Â | 5,817| 5,980| 5,898|
| | +------------+-------------+----------------+
|Â | Â | Â | Â | Â |
| | | | | |
|Capital and reserves | Â | Â | Â | Â |
| | | | | |
|Called up share capital | 7| 3,172| 3,168| 3,168|
| | | | | |
|Share premium | Â | 2| 2,824| -|
| | | | | |
|Unrealised capital reserve | Â | 26| 1| 20|
| | | | | |
|Special reserve | Â | 2,667| -| 2,745|
| | | | | |
|Realised capital reserve | Â | (106)| (28)| (64)|
| | | | | |
|Revenue reserve | Â | 56| 15| 29|
| | +------------+-------------+----------------+
|Total equity shareholders' | | | | |
|funds | Â | 5,817| 5,980| 5,898|
| | +------------+-------------+----------------+
|Net asset value per share | | | | |
|(pence) * | Â | 91.70| 94.40| 93.00|
+-----------------------------+----+------------+-------------+----------------+
*excluding treasury shares
Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2010 and the audited statutory accounts
for the year ended 31 December 2010.
The accompanying notes form an integral part of this Half-yearly Financial
Report.
Summary reconciliation of movements in shareholders' funds (Combined)
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
| |Called-| | | | | | | | |
| | up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
| Â |capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
| | | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
|1 January | | | | | | | | | |
|2011 | | | | | | | | | |
|(audited) | 19,388| 37| 1,426| (5,063)| 10,497| (2,633)| 2,860| 1,406|27,918|
| | | | | | | | | | |
|Realised | | | | | | | | | |
|gains | -| -| -| -| -| -| 1,448| -| 1,448|
| | | | | | | | | | |
|Unrealised | | | | | | | | | |
|losses | -| -| -| (940)| -| -| -| -| (940)|
| | | | | | | | | | |
|Transfer of | | | | | | | | | |
|previously | | | | | | | | | |
|unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 506| -| -| (506)| -| -|
| | | | | | | | | | |
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (239)| -| (239)|
| | | | | | | | | | |
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 52| -| 52|
| | | | | | | | | | |
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | |
|shares | (241)| -| 241| -| (305)| -| -| -| (305)|
| | | | | | | | | | |
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | 1,147| 583| -| -| -| -| -| -| 1,730|
| | | | | | | | | | |
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 201| 201|
| | | | | | | | | | |
|Transfer | | | | | | | | | |
|from Special| | | | | | | | | |
|reserve to | | | | | | | | | |
|Revenue | | | | | | | | | |
|reserve | -| -| -| -| (859)| -| -| 859| -|
| | | | | | | | | | |
|Dividends | | | | | | | | | |
|paid | -| -| -| -| -| -| -| (859)| (859)|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
|As at 30 | | | | | | | | | |
|June 2011 | | | | | | | | | |
|(unaudited) | 20,294| 620| 1,667| (5,497)| 9,333| (2,633)| 3,615| 1,607|29,006|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
| |Called-| | | | | | | | |
| | up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
| Â |capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
| | | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 1 | | | | | | | | | |
|January | | | | | | | | | |
|2010 | | | | | | | | | |
|(audited) | 17,074| 640| 1,183| (6,365)| 12,507| (2,540)| 1,389| 995| 24,883|
| | | | | | | | | | |
|Realised | | | | | | | | | |
|gains | -| -| -| -| -| -| 503| -| 503|
| | | | | | | | | | |
|Unrealised | | | | | | | | | |
|losses | -| -| -| (89)| -| -| -| -| (89)|
| | | | | | | | | | |
|Transfer of | | | | | | | | | |
|previously | | | | | | | | | |
|unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 179| -| -| (179)| -| -|
| | | | | | | | | | |
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (218)| -| (218)|
| | | | | | | | | | |
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 52| -| 52|
| | | | | | | | | | |
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | |
|shares | -| -| -| -| -| (239)| -| -| (239)|
| | | | | | | | | | |
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | Â 2,502| 2,203| -| -| -| -| -| -| 4,705|
| | | | | | | | | | |
|Cancellation| | | | | | | | | |
|of treasury | | | | | | | | | |
|shares | (72)| -| 72| -| (115)| 115| -| -| -|
| | | | | | | | | | |
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 208| 208|
| | | | | | | | | | |
|Dividends | | | | | | | | | |
|paid | -| -| -| -| -| -| (224)| (964)|(1,188)|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 30 | | | | | | | | | |
|June 2010 | | | | | | | | | |
|(unaudited) | 19,504| 2,843| 1,255| (6,275)| 12,392| (2,664)| 1,323| 239| 28,617|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
| |Called-| | | | | | | | |
| | up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
| Â |capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
| | | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 1 | | | | | | | | | |
|January | | | | | | | | | |
|2010 | | | | | | | | | |
|(audited) | 17,074| 640| 1,183| (6,365)| 12,507| (2,540)| 1,389| 995| 24,883|
| | | | | | | | | | |
|Realised | | | | | | | | | |
|gains | -| -| -| -| -| -| 386| -| 386|
| | | | | | | | | | |
|Unrealised | | | | | | | | | |
|gains | -| -| -| 619| -| -| -| -| 619|
| | | | | | | | | | |
|Transfer of | | | | | | | | | |
|Â previously | | | | | | | | | |
|unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 682| -| -| (682)| -| -|
| | | | | | | | | | |
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (457)| -| (457)|
| | | | | | | | | | |
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 114| -| 114|
| | | | | | | | | | |
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | |
|shares | -| -| -| -| -| (289)| -| -| (289)|
| | | | | | | | | | |
|Cancellation| | | | | | | | | |
|of treasury | | | | | | | | | |
|shares | (121)| -| 121| -| (196)| 196| -| -| -|
| | | | | | | | | | |
|Purchase of | | | | | | | | | |
|own shares | | | | | | | | | |
|for | | | | | | | | | |
|cancellation| (120)| -| 120| -| (158)| -| -| -| (158)|
| | | | | | | | | | |
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | 2,555| 2,221| -| -| -| -| -| -| 4,776|
| | | | | | | | | | |
|Cancellation| | | | | | | | | |
|of Share | | | | | | | | | |
|premium | | | | | | | | | |
|account | -|(2,824)| -| -| 2,810| -| -| 14| -|
| | | | | | | | | | |
|Transfer | | | | | | | | | |
|from Special| | | | | | | | | |
|reserve to | | | | | | | | | |
|Realised | | | | | | | | | |
|reserve | -| -| -| -| (3,301)| -| 3,301| -| -|
| | | | | | | | | | |
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 461| 461|
| | | | | | | | | | |
|Dividends | | | | | | | | | |
|paid | -| -| -| -| (1,165)| -| (1,191)| (64)|(2,420)|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 31 | | | | | | | | | |
|December | | | | | | | | | |
|2010 | | | | | | | | | |
|(audited) | 19,388| 37| 1,426| (5,063)| 10,497| (2,633)| 2,860| 1,406| 27,918|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
*Included within these reserves is an amount of £6,425,000 (30 June 2010:
£5,015,000; 31 December 2010: £7,067,000) which is considered distributable. The
Special reserve has been treated as distributable in determining the amounts
available for distribution.
Summary reconciliation of movements in shareholders' funds (Ordinary shares)
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
| |Called-| | | | | | | | |
| | up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
| Â |capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
| | | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
|1 January | | | | | | | | | |
|2011 | | | | | | | | | |
|(audited) | 16,220| 37| 1,426| (5,083)| 7,752| (2,633)| 2,924| 1,377|22,020|
| | | | | | | | | | |
|Realised | | | | | | | | | |
|gains | -| -| -| -| -| -| 1,448| -| 1,448|
| | | | | | | | | | |
|Unrealised | | | | | | | | | |
|losses | -| -| -| (946)| -| -| -| -| (946)|
| | | | | | | | | | |
|Transfer of | | | | | | | | | |
|previously | | | | | | | | | |
|unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 506| -| -| (506)| -| -|
| | | | | | | | | | |
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (190)| -| (190)|
| | | | | | | | | | |
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 45| -| 45|
| | | | | | | | | | |
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | Â |
|shares | (241)| -| 241| -| (305)| -| -| -| (305)|
| | | | | | | | | | |
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | 1,143| 581| -| -| -| -| -| -| 1,724|
| | | | | | | | | | |
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 174| 174|
| | | | | | | | | | |
|Transfer | | | | | | | | | |
|from Special| | | | | | | | | |
|reserve to | | | | | | | | | |
|Revenue | | | | | | | | | |
|reserve | -| -| -| -| (781)| -| -| 781| -|
| | | | | | | | | | |
|Dividends | | | | | | | | | |
|paid | -| -| -| -| -| -| -| (781)| (781)|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
|As at 30 | | | | | | | | | |
|June 2011 | | | | | | | | | |
|(unaudited) | 17,122| 618| 1,667| (5,523)| 6,666| (2,633)| 3,721| 1,551|23,189|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+------+
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
| |Called-| | | | | | | | |
| | up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
| Â |capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
| | | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
|1 January | | | | | | | | | |
|2010 | | | | | | | | | |
|(audited) | 16,357| -| 1,183| (6,365)| 12,507| (2,540)| 1,390| 994| 23,526|
| | | | | | | | | | |
|Realised | | | | | | | | | |
|gains | -| -| -| -| -| -| 503| -| 503|
| | | | | | | | | | |
|Unrealised | | | | | | | | | |
|losses | -| -| -| (90)| -| -| -| -| (90)|
| | | | | | | | | | |
|Transfer of | | | | | | | | | |
|previously | | | | | | | | | |
|unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 179| -| -| (179)| -| -|
| | | | | | | | | | |
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (187)| -| (187)|
| | | | | | | | | | |
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 48| -| 48|
| | | | | | | | | | |
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | |
|shares | -| -| -| -| -| (239)| -| -| (239)|
| | | | | | | | | | |
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | 51| 19| -| -| -| -| -| -| 70|
| | | | | | | | | | |
|Cancellation| | | | | | | | | |
|of treasury | | | | | | | | | |
|shares | (72)| -| 72| -| (115)| 115| -| -| -|
| | | | | | | | | | |
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 194| 194|
| | | | | | | | | | |
|Dividends | | | | | | | | | |
|paid | -| -| -| -| -| -| (224)| (964)|(1,188)|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 30 | | | | | | | | | |
|June 2010 | | | | | | | | | |
|(unaudited) | 16,336| 19| 1,255| (6,276)| 12,392| (2,664)| 1,351| 224| 22,637|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
| |Called-| | | | | | | | |
| | up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
| Â |capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
| | | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
|1 January | | | | | | | | | |
|2010 | | | | | | | | | |
|(audited) | 16,357| -| 1,183| (6,365)| 12,507| (2,540)| 1,390| 994| 23,526|
| | | | | | | | | | |
|Realised | | | | | | | | | |
|gains | -| -| -| -| -| -| 386| -| 386|
| | | | | | | | | | |
|Unrealised | | | | | | | | | |
|gains | -| -| -| 599| -| -| -| -| 599|
| | | | | | | | | | |
|Transfer of | | | | | | | | | |
|unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 682| -| -| (682)| -| -|
| | | | | | | | | | |
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (376)| -| (376)|
| | | | | | | | | | |
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 97| -| 97|
| | | | | | | | | | |
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | |
|shares | -| -| -| -| -| (289)| -| -| (289)|
| | | | | | | | | | |
|Cancellation| | | | | | | | | |
|of shares | | | | | | | | | |
|out of | | | | | | | | | |
|treasury | (121)| -| 121| -| (196)| 196| -| -| -|
| | | | | | | | | | |
|Purchase of | | | | | | | | | |
|own shares | | | | | | | | | |
|for | | | | | | | | | |
|cancellation| (120)| -| 120| -| (158)| -| -| -| (158)|
| | | | | | | | | | |
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | 104| 37| -| -| -| -| -| -| 141|
| | | | | | | | | | |
|Transfer | | | | | | | | | |
|from Special| | | | | | | | | |
|reserve to | | | | | | | | | |
|Realised | | | | | | | | | |
|reserve | -| -| -| -| (3,301)| -| 3,301| -| -|
| | | | | | | | | | |
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 447| 447|
| | | | | | | | | | |
|Dividends | | | | | | | | | |
|paid | -| -| -| -| (1,100)| -| (1,191)| (64)|(2,355)|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 31 | | | | | | | | | |
|December | | | | | | | | | |
|2010 | | | | | | | | | |
|(audited) | 16,220| 37| 1,426| (5,083)| 7,752| (2,633)| 2,924| 1,377| 22,020|
+------------+-------+-------+----------+----------+--------+--------+--------+--------+-------+
*Included within these reserves is an amount of £3,782,000 (30 June 2010:
£5,027,000; 31 December 2010: £4,337,000) which is considered distributable. The
Special reserve has been treated as distributable in determining the amounts
available for distribution.
An amount of £781,000 has been transferred from the Special reserve to the
Revenue reserve representing dividends paid from the Revenue reserve.
Summary reconciliation of movements in shareholders' funds (D shares)
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
| |Called-| | | | | | | |
| | up| | Capital|Unrealised| |Realised| | |
| | share| Share|redemption| capital| Special| capital| Revenue| |
| Â |capital|premium| reserve| reserve|reserve*|reserve*|reserve*|Total|
| | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000|£'000|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
|1 January | | | | | | | | |
|2011 | | | | | | | | |
|(audited) | 3,168| -| -| 20| 2,745| (64)| 29|5,898|
| | | | | | | | | |
|Unrealised | | | | | | | | |
|gains | -| -| -| 6| -| -| -| 6|
| | | | | | | | | |
|Capitalised | | | | | | | | |
|investment | | | | | | | | |
|management | | | | | | | | |
|fees | -| -| -| -| -| (49)| -| (49)|
| | | | | | | | | |
|Tax relief | | | | | | | | |
|on costs | | | | | | | | |
|charged to | | | | | | | | |
|capital | -| -| -| -| -| 7| -| 7|
| | | | | | | | | |
|Issue of | | | | | | | | |
|equity (net | | | | | | | | |
|of costs) | 4| 2| -| -| -| -| -| 6|
| | | | | | | | | |
|Revenue | | | | | | | | |
|return | | | | | | | | |
|attributable| | | | | | | | |
|to | | | | | | | | |
|shareholders| -| -| -| -| -| -| 27| 27|
| | | | | | | | | |
|Transfer | | | | | | | | |
|from Special| | | | | | | | |
|reserve to | | | | | | | | |
|Revenue | | | | | | | | |
|reserve | -| -| -| -| (78)| -| 78| -|
| | | | | | | | | |
|Dividends | | | | | | | | |
|paid | -| -| -| -| -| -| (78)| (78)|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
|As at 30 | | | | | | | | |
|June 2011 | | | | | | | | Â |
|(unaudited) | 3,172| 2| -| 26| 2,667| (106)| 56|5,817|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
| |Called-| | | | | | | |
| | up| | Capital|Unrealised| |Realised| | |
| | share| Share|redemption| capital| Special| capital| Revenue| |
| Â |capital|premium| reserve| reserve|reserve*|reserve*|reserve*|Total|
| | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000|£'000|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
|1 January | | | | | | | | |
|2010 | | | | | | | | |
|(audited) | 717| 640| -| -| -| (1)| 1|1,357|
| | | | | | | | | |
|Unrealised | | | | | | | | |
|gains | -| -| -| 1| -| -| -| 1|
| | | | | | | | | |
|Capitalised | | | | | | | | |
|investment | | | | | | | | |
|management | | | | | | | | |
|fees | -| -| -| -| -| (31)| -| (31)|
| | | | | | | | | |
|Tax relief | | | | | | | | |
|on costs | | | | | | | | |
|charged to | | | | | | | | |
|capital | -| -| -| -| -| 4| -| 4|
| | | | | | | | | |
|Issue of | | | | | | | | |
|equity (net | | | | | | | | |
|of costs) | 2,451| 2,184| -| -| -| -| -|4,635|
| | | | | | | | | |
|Revenue | | | | | | | | |
|return | | | | | | | | |
|attributable| | | | | | | | |
|to | | | | | | | | |
|shareholders| -| -| -| -| -| -| 14| 14|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
|As at 30 | | | | | | | | |
|June  2010 | | | | | | | | |
|(unaudited) | 3,168| 2,824| -| 1| -| (28)| 15|5,980|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
| |Called-| | | | | | | |
| | up| | Capital|Unrealised| |Realised| | |
| | share| Share|redemption| capital| Special| capital| Revenue| |
| Â |capital|premium| reserve| reserve|reserve*|reserve*|reserve*|Total|
| | | | | | | | | |
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000|£'000|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
|1 January | | | | | | | | |
|2010 | | | | | | | | |
|(audited) | 717| 640| -| -| -| (1)| 1|1,357|
| | | | | | | | | |
|Unrealised | | | | | | | | |
|gains | -| -| -| 20| -| -| -| 20|
| | | | | | | | | |
|Capitalised | | | | | | | | |
|investment | | | | | | | | |
|management | | | | | | | | |
|fees | -| -| -| -| -| (81)| -| (81)|
| | | | | | | | | |
|Tax relief | | | | | | | | |
|on costs | | | | | | | | |
|charged to | | | | | | | | |
|capital | -| -| -| -| -| 17| -| 17|
| | | | | | | | | |
|Issue of | | | | | | | | |
|equity (net | | | | | | | | |
|of costs) | 2,451| 2,184| -| -| -| -| -|4,635|
| | | | | | | | | |
|Cancellation| | | | | | | | |
|of Share | | | | | | | | |
|premium | | | | | | | | |
|account | * Â |(2,824)| -| -| 2,810| -| 14| -|
| | | | | | | | | |
|Revenue | | | | | | | | |
|return | | | | | | | | |
|attributable| | | | | | | | |
|to | | | | | | | | |
|shareholders| -| -| -| -| -| -| 14| 14|
| | | | | | | | | |
|Dividends | | | | | | | | |
|paid | -| -| -| -| (65)| -| -| (65)|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
|As at 31 | | | | | | | | |
|December | | | | | | | | |
|Â 2010 | | | | | | | | |
|(audited) | 3,168| -| -| 20| 2,745| (64)| 29|5,898|
+------------+-------+-------+----------+----------+--------+--------+--------+-----+
*Included within these reserves is an amount of £2,617,000 (30 June 2010: nil;
31 December 2010: £2,710,000) which is considered distributable. The Special
reserve has been treated as distributable in determining the amounts available
for distribution.
An amount of £78,000 has been transferred from Special reserve to Revenue
reserve representing dividends paid from the Revenue reserve.
Summary cash flow statement (Combined)
+----------------------+----+----------------+----------------+----------------+
| Â | | Unaudited| Unaudited| |
| | | | | Audited|
| | |six months ended|six months ended| |
| | | | | year ended|
| | | 30 June 2011| 30 June 2010| |
| | | | |31 December 2010|
| |Note| £'000| £'000| £'000|
+----------------------+----+----------------+----------------+----------------+
|Operating activities | Â | Â | Â | Â |
| | | | | |
|Investment income | | | | |
|received | Â | 330| 359| 706|
| | | | | |
|Deposit interest | | | | |
|received | Â | 41| 71| 136|
| | | | | |
|Dividend income | | | | |
|received | Â | -| -| 50|
| | | | | |
|Other income received | Â | -| 1| -|
| | | | | |
|Investment management | | | | |
|fees paid | Â | (315)| (273)| (600)|
| | | | | |
|Administrative | | | | |
|expenses paid | Â | (123)| (135)| (211)|
| | +----------------+----------------+----------------+
|Net cash flow from | | | | |
|operating activities | 8| (67)| 23| 81|
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Taxation | Â | Â | Â | Â |
| | | | | |
|UK corporation tax | | | | |
|received | Â | 140| 43| 44|
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Capital expenditure | | | | |
|and financial | | | | |
|investments | Â | Â | Â | Â |
| | | | | |
|Purchase of fixed | | | | |
|asset investments | Â | (2,399)| (976)| (3,188)|
| | | | | |
|Disposal of fixed | | | | |
|asset investments | Â | 1,813| 1,199| 3,590|
| | +----------------+----------------+----------------+
|Net cash flow from | | | | |
|investing activities | Â | (586)| 223| 402|
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Equity dividends paid | Â | Â | Â | Â |
| | | | | |
|Dividends paid (net of| | | | |
|cost of issuing shares| | | | |
|under the Dividend | | | | |
|Reinvestment Scheme) | Â | (795)| (1,111)| (2,265)|
| | +----------------+----------------+----------------+
|Net cash flow before | | | | |
|financing | Â | (1,308)| (822)| (1,738)|
| | +----------------+----------------+----------------+
|Â | Â | Â | Â | Â |
| | | | | |
|Financing | Â | Â | Â | Â |
| | | | | |
|Purchase of own shares| Â | (306)| (223)| (446)|
| | | | | |
|Issue of share capital| Â | 1,671| 4,933| 4,792|
| | | | | |
|Costs of issue of | | | | |
|share capital under | | | | |
|DRIS | Â | (6)| (7)| (6)|
| | | | | |
|Interclass payments | Â | -| -| 2|
| | +----------------+----------------+----------------+
|Net cash flow from | | | | |
|financing | Â | 1,359| 4,703| 4,342|
| | +----------------+----------------+----------------+
|Cash flow in the | | | | |
|period | 9| 51| 3,881| 2,604|
+----------------------+----+----------------+----------------+----------------+
* D shares were first allotted 23 December 2009
Summary cash flow statement (Ordinary shares)
+----------------------+----+----------------+----------------+----------------+
| | | Unaudited| Unaudited| |
| | | | | Audited|
| | |six months ended|six months ended| |
| | | | | year ended|
| | | 30 June 2011| 30 June 2010| |
| | | | |31 December 2010|
|  |Note| £'000| £'000| £'000|
+----------------------+----+----------------+----------------+----------------+
|Operating activities | Â | Â | Â | Â |
| | | | | |
|Investment income | | | | |
|received | Â | 286| 359| 692|
| | | | | |
|Deposit interest | | | | |
|received | Â | 18| 39| 65|
| | | | | |
|Dividend income | | | | |
|received | Â | -| -| 50|
| | | | | |
|Other income received | Â | -| 1| -|
| | | | | |
|Investment management | | | | |
|fees paid | Â | (249)| (265)| (525)|
| | | | | |
|Administrative | | | | |
|expenses paid | Â | (101)| (129)| (181)|
| | | | | |
|Interclass account | | | | |
|movement | Â | (495)| -| -|
| | +----------------+----------------+----------------+
|Net cash flow from | | | | |
|operating activities | 8| (541)| 5| 101|
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Taxation | Â | Â | Â | Â |
| | | | | |
|UK corporation tax | | | | |
|received | Â | 140| 43| 44|
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Capital expenditure | | | | |
|and financial | | | | |
|investments | Â | Â | Â | Â |
| | | | | |
|Purchase of fixed | | | | |
|asset investments | Â | (1,250)| (576)| (1,567)|
| | | | | |
|Disposal of fixed | | | | |
|asset investments | Â | 1,813| 1,199| 3,590|
| | +----------------+----------------+----------------+
|Net cash flow from | | | | |
|investing activities | Â | 563| 623| 2,023|
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Equity dividends paid | Â | Â | Â | Â |
| | | | | |
|Dividends paid (net of| | | | |
|cost of issuing shares| | | | |
|under the Dividend | | | | |
|Reinvestment Scheme) | Â | (724)| (1,111)| (2,200)|
| | +----------------+----------------+----------------+
|Net cash flow before | | | | |
|financing | Â | (562)| (440)| (32)|
| | +----------------+----------------+----------------+
|Â | Â | Â | Â | Â |
| | | | | |
|Financing | Â | Â | Â | Â |
| | | | | |
|Purchase of own shares| Â | (306)| (223)| (446)|
| | | | | |
|Issue of share capital| Â | 1,671| -| -|
| | | | | |
|Costs of issue of | | | | |
|share capital under | | | | |
|DRIS | Â | (5)| (7)| (6)|
| | | | | |
|Interclass payments | Â | -| -| 2|
| | +----------------+----------------+----------------+
|Net cash flow from | | | | |
|financing | Â | 1,360| (230)| (450)|
| | +----------------+----------------+----------------+
|Cash flow in the | | | | |
|period | 9| 798| (670)| (482)|
+----------------------+----+----------------+----------------+----------------+
Summary cash flow statement (D shares)
+----------------------+----+----------------+----------------+----------------+
| Â | | Unaudited| Unaudited| |
| | | | | Audited|
| | |six months ended|six months ended| |
| | | | | year ended|
| | | 30 June 2011| 30 June 2010*| |
| | | | |31 December 2010|
| |Note| £'000| £'000| £'000|
+----------------------+----+----------------+----------------+----------------+
|Operating activities | Â | Â | Â | Â |
| | | | | |
|Investment income | | | | 14|
|received | Â | 44| -| |
| | | | | |
|Deposit interest | | | | 71|
|received | Â | 23| 32| |
| | | | | |
|Investment management | | | | (75)|
|fees paid | Â | (66)| (8)| |
| | | | | |
|Administrative | | | | (30)|
|expenses paid | Â | (22)| (6)| |
| | | | | |
|Interclass account | | | | -|
|movement | Â | 495| -| |
| | +----------------+----------------+----------------+
|Net cash flow from | | | | (20)|
|operating activities | 8| 474| 18| |
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Taxation | Â | Â | Â | Â |
| | | | | |
|UK corporation tax | | | | -|
|paid | Â | -| -| |
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Capital expenditure | | | | Â |
|and financial | | | | |
|investments | Â | Â | Â | |
| | | | | |
|Purchase of fixed | | | | (1,621)|
|asset investments | Â | (1,149)| (400)| |
| | | | | |
|Disposal of fixed | | | | -|
|asset investments | Â | -| -| |
| | +----------------+----------------+----------------+
|Net cash flow from | | | | (1,621)|
|investing activities | Â | (1,149)| (400)| |
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Equity dividends paid | Â | Â | Â | Â |
| | | | | |
|Dividends paid (net of| | | | |
|cost of issuing shares| | | | |
|under the Dividend | | | | |
|Reinvestment Scheme) | Â | (71)| -| (65)|
| | +----------------+----------------+----------------+
|Net cash flow before | | | | (1,706)|
|financing | Â | (746)| (382)| |
| | +----------------+----------------+----------------+
|Â | Â | Â | Â | Â |
| | | | | |
|Financing | Â | Â | Â | Â |
| | | | | |
|Issue of share capital| | | | 4,792|
|(net of costs) | Â | -| 4,933| |
| | | | | |
|Costs of issue of | | | | -|
|share capital under | | | | |
|DRIS | Â | (1)| -| |
| | +----------------+----------------+----------------+
|Net cash flow from | | | | 4,792|
|financing | Â | (1)| 4,933| |
| | +----------------+----------------+----------------+
|Cash flow in the | | | | 3,086|
|period | 9| (747)| 4,551| |
+----------------------+----+----------------+----------------+----------------+
* D shares were first allotted 23 December 2009
Notes to the unaudited summarised financial statements
1. Accounting convention
The financial statements have been prepared in accordance with the historical
cost convention, modified to include the revaluation of investments, in
accordance with applicable United Kingdom law and accounting standards and with
the Statement of Recommended Practice "Financial Statements of Investment Trust
Companies and Venture Capital Trusts" ("SORP") issued by The Association of
Investment Companies ("AIC") in January 2009. Accounting policies have been
applied consistently in current and prior periods.
2. Accounting policies
Investments
Quoted and unquoted equity investments, debt issued at a discount, and
convertible bonds
In accordance with FRS 26 "Financial Instruments Recognition and Measurement",
quoted and unquoted equity, debt issued at a discount and convertible bonds are
designated as fair value through profit or loss. Â Investments listed on
recognised exchanges are valued at the closing bid prices at the end of the
accounting period. Â Unquoted investments' fair value is determined by the
Directors in accordance with the September 2009 International Private Equity and
Venture Capital Valuation Guidelines (IPEVCV guidelines).
Desk top reviews are carried out by independent RICS qualified surveyors by
updating previously prepared full valuations for current trading and market
indices. Â Full valuations are prepared by similarly qualified surveyors but in
full compliance with the RICS Red Book.
Fair value movements and gains and losses arising on the disposal of investments
are reflected in the capital column of the Income statement in accordance with
the AIC SORP. Realised gains or losses on the sale of investments are reflected
in the Realised capital reserve, and unrealised gains or losses arising from the
revaluation of investments are reflected in the Unrealised capital reserve.
Warrants and unquoted equity derived instruments
Warrants and unquoted equity derived instruments are only valued if their
exercise or contractual terms would allow them to be exercised as at the balance
sheet date, and if there is additional value to the Company in exercising as at
the balance sheet date. Otherwise these instruments are held at nil value. The
valuation techniques used are those used for the underlying equity investment.
Unquoted loan stock
Unquoted loan stock (excluding convertible bonds and debt issued at a discount)
is classified as loans and receivables in accordance with FRS 26 and carried at
amortised cost using the Effective Interest Rate method less impairment.
Movements in respect of capital provisions are reflected in the capital column
of the Income statement and are reflected in the Realised capital reserve
following sale, or in the Unrealised capital reserve on revaluation.
For all unquoted loan stock, fully performing, renegotiated, past due and
impaired, the Board considers that the fair value is equal to or greater than
the security value of these assets.
For unquoted loan stock, the amount of the impairment is the difference between
the asset's cost and the present value of estimated future cash flows,
discounted at the effective interest rate. The future cash flows are estimated
based on the fair value of the security less estimated selling costs.
Investments are recognised as financial assets on legal completion of the
investment contract and are de-recognised on legal completion of the sale of an
investment.
Dividend income is not recognised as part of the fair value movement of an
investment, but is recognised separately as investment income through the
Revenue reserve when a share becomes ex-dividend.
Loan stock accrued interest is recognised in the Balance sheet as part of the
carrying value of the loans and receivables at the end of each reporting period.
It is not the Company's policy to exercise control or significant influence over
investee companies. Therefore, in accordance with the exemptions under FRS 9
"Associates and joint ventures", those undertakings in which the Company holds
more than 20 per cent. of the equity are not regarded as associated
undertakings.
Investment income
Quoted and unquoted equity income
Dividend income is included in revenue when the investment is quoted ex-
dividend.
Unquoted loan stock and other preferred income
Fixed returns on non-equity shares and debt securities are recognised on a time
apportionment basis using the effective interest rate over the life of the
financial instrument. Income which is not capable of being received within a
reasonable period of time is reflected in the capital value of the investment.
Bank interest income
Interest income is recognised on an accrual basis using the rate of interest
agreed with the bank.
Investment management fees and other expenses
All expenses have been accounted for on an accruals basis. Expenses are charged
through the revenue account except the following which are charged through the
Realised capital reserve:
* 75 per cent. of management fees are allocated to the capital account to the
extent that these relate to an enhancement in the value of the investments
and in line with the Board's expectation that over the long term 75 per
cent. of the Company's investment returns will be in the form of capital
gains; and
* expenses which are incidental to the purchase or disposal of an investment
are charged through the Realised capital reserve.
Performance incentive fee
In the event that a performance incentive fee crystallises, the fee will be
allocated between Revenue and Realised capital reserves based upon the
proportion to which the calculation of the fee is attributable to revenue and
capital returns.
Taxation
Taxation is applied on a current basis in accordance with FRS 16 "Current tax".
Taxation associated with capital expenses is applied in accordance with the
SORP. In accordance with FRS 19 "Deferred tax", deferred taxation is provided in
full on timing differences that result in an obligation at the balance sheet
date to pay more tax or a right to pay less tax, at a future date, at rates
expected to apply when they crystallise based on current tax rates and law.
Timing differences arise from the inclusion of items of income and expenditure
in taxation computations in periods different from those in which they are
included in the financial statements. Deferred tax assets are recognised to the
extent that it is regarded as more likely than not that they will be recovered.
Reserves
Share premium account
This reserve accounts for the difference between the price paid for shares and
the nominal value of the shares, less issue costs and transfers to the special
reserve.
Capital redemption reserve
This reserve accounts for amounts by which the issued share capital is
diminished through the repurchase and cancellation of the Company's own shares.
Unrealised capital reserves
Increases and decreases in the valuation of investments held at the year end
against cost, are included in this reserve.
Special reserve
The cancellation of the share premium account has created a special reserve that
can be used to fund market purchases and subsequent cancellation of own shares,
the payment of dividends, to cover gross realised losses, and for other
distributable purposes.
Treasury shares reserve
This reserve accounts for amounts by which the distributable reserves of the
Company are diminished through the repurchase of the Company's own shares for
treasury.
Realised capital reserve
The following are disclosed in this reserve:
* gains and losses compared to cost on the realisation of investments;
* expenses, together with the related taxation effect, charged in accordance
with the above policies; and
* dividends paid to equity holders.
Dividends
In accordance with FRS 21 "Events after the balance sheet date", dividends
declared by the Company are accounted for in the period in which the dividend
has been paid or approved by shareholders in an Annual General Meeting.
D shares
Until such time that D shares are converted into Ordinary shares, all
investments and returns attributable to this class of share will be separately
identifiable from the existing Ordinary shares. All residual expenses will be
allocated in the ratio of the respective Net Asset Values of each class of
share.
3.    Gains on investments
Combined
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2011 30 June 2010 31 December 2010
£'000 £'000 £'000
--------------------------------------------------------------------------------
Unrealised (losses)/gains on
fixed asset investments held
at fair value through profit
or loss account (670) (66) 338
Unrealised (losses)/gains on
fixed asset investments held
at amortised cost (270) (23) 281
---------------------------------------------------
Unrealised (losses)/gains on
fixed asset investments (940) (89) 619
---------------------------------------------------
Realised gains on investments
held at fair value through
profit or loss account 329 369 426
Realised gains/(losses) on
investments held at amortised
cost 1,119 134 (40)
---------------------------------------------------
Realised gains sub-total 1,448 503 386
---------------------------------------------------
 508 414 1,005
---------------------------------------------------
Ordinary shares
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2011 30 June 2010 31 December 2010
£'000 £'000 £'000
--------------------------------------------------------------------------------
Unrealised (losses)/gains on
fixed asset investments held
at fair value through profit
or loss account (648) (67) 338
Unrealised (losses)/gains on
fixed asset investments held
at amortised cost (298) (23) 261
---------------------------------------------------
Unrealised (losses)/gains on
fixed asset investments (946) (90) 599
---------------------------------------------------
Realised gains on investments
held at fair value through
profit or loss account 329 369 426
Realised gains/(losses) on
investments held at amortised
cost 1,119 134 (40)
---------------------------------------------------
Realised gains sub-total 1,448 503 386
---------------------------------------------------
 502 413 985
---------------------------------------------------
D shares
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2011 30 June 2010 31 December 2010
£'000 £'000 £'000
--------------------------------------------------------------------------------
Unrealised (losses)/gains on
fixed asset investments held
at fair value through profit
or loss account (22) 1 -
Unrealised gains on fixed
asset investments held at
amortised cost 28 - 20
---------------------------------------------------
 6 1 20
---------------------------------------------------
Investments valued on an amortised cost basis are unquoted loan stock
instruments.
4.    Investment income
Combined
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2011 30 June 2010 31 December 2010
£'000 £'000 £'000
--------------------------------------------------------------------------------
Income recognised on
investments held at fair
value through profit or loss
account
UK dividend income - - 27
Income from convertible bonds
and discounted debt 18 - 15
---------------------------------------------------
 18 - 42
---------------------------------------------------
Income recognised on
investments held at amortised
cost
Return on loan stock
investments 363 396 743
Bank deposit interest 66 73 139
---------------------------------------------------
 429 469 882
---------------------------------------------------
 447 469 924
---------------------------------------------------
Ordinary shares
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2011 30 June 2010 31 December 2010
£'000 £'000 £'000
--------------------------------------------------------------------------------
Income recognised on
investments held at fair
value through profit or loss
account
UK dividend income - - 27
Income from convertible bonds
and discounted debt 10 Â 15
---------------------------------------------------
 10 - 42
---------------------------------------------------
Income recognised on
investments held at amortised
cost
Return on loan stock
investments 326 395 727
Bank deposit interest 36 38 66
---------------------------------------------------
 362 433 793
---------------------------------------------------
 372 433 835
---------------------------------------------------
D shares
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2011 30 June 2010 31 December 2010
£'000 £'000 £'000
---------------------------------------------------
Income recognised on
investments held at fair
value through profit or loss
account
Income from convertible bonds
and discounted debt 8 - -
---------------------------------------------------
Income recognised on
investments held at amortised
cost
Return on loan stock
investments 37 1 16
Bank deposit interest 30 35 73
---------------------------------------------------
 67 36 89
---------------------------------------------------
 75 36 89
---------------------------------------------------
All of the Company's income is derived from operations based in the United
Kingdom.
5.Dividends
Ordinary shares
 Unaudited Unaudited Audited
 six months ended six months ended year ended
 30 June 2011 30 June 2010 31 December 2010
 £'000 £'000 £'000
--------------------------------------------------------------------------------
Dividend of 4.0 pence per
share paid on 4 May 2010 - 1,191 1,191
Dividend of 4.0 pence per
share paid on 30 September
2010 - - 1,164
Dividend of 2.5 pence per
share paid on 31 May 2011 781 - -
---------------------------------------------------
 781 1,191 2,355
---------------------------------------------------
D shares
 Unaudited Unaudited Audited
 six months ended six months ended year ended
 30 June 2011 30 June 2010 31 December 2010
 £'000 £'000 £'000
--------------------------------------------------------------------------------
Dividend of 1.0 pence per D
share paid on 30 September
 2010 - - 65
Dividend of 1.25 pence per D
share paid on 31 May 2011 78 - -
---------------------------------------------------
 78 - 65
---------------------------------------------------
The Directors have declared a dividend of 2.5 pence per Ordinary share (total
approximately £775,000) and 1.25 pence per D share (total approximately
£79,000), payable on 30 September 2011 to shareholders on the register as at 2
September 2011.
6.    Basic and diluted return per share
Ordinary shares Unaudited Unaudited Audited
six months six months year ended
ended ended 31 December
30 June 2011 30 June 2010 2010
--------------------------------------------------------------------------------
 Revenue Capital Revenue Capital Revenue Capital
Return attributable to Ordinary 194 275 447 706
shares (£'000) 174 357
Weighted average shares in issue 30,545,742 29,551,163 29,450,610
Return per Ordinary share 0.60 1.20 0.70 0.90 1.50 2.40
(pence)
D shares Unaudited Unaudited Audited
six months six months year ended
ended ended 31 December
30 June 2011 30 June 2010 2010
--------------------------------------------------------------------------------
 Revenue Capital Revenue Capital Revenue Capital
Return/(loss) attributable to D 14 (26) 14 (44)
shares (£'000) 27 (36)
Weighted average shares in issue 6,336,572 3,683,788 5,193,933
Return/(loss) Â per D share 0.40 (0.60) 0.40 (0.70) 0.30 (0.90)
(pence)
There are no convertible instruments, derivatives or contingent share agreements
in issue for Albion Development VCT PLC hence there are no dilution effects to
the return per share. The basic return per share is therefore the same as the
diluted return per share.
7.    Share capital
Unaudited Unaudited Audited
30 June 2011 30 June 2010 31 December 2010
Ordinary shares £'000 £'000 £'000
--------------------------------------------------------------------------------
Authorised
50,000,000 Ordinary shares of
50p each (30 June 2010 and 31
December 2010: 50,000,000) 25,000 25,000 25,000
-----------------------------------------------
Allotted, called up and fully
paid
34,244,164 Ordinary shares of
50p each (30 June
2010: 32,672,453; 31 December
2010: 32,439,999) 17,122 16,336 16,220
-----------------------------------------------
Voting rights
31,000,468 Ordinary shares of 50p each (net of treasury shares) (30 June
2010: 29,405,866; 31 December 2010: 29,196,303)
Under the terms of the Dividend Reinvestment Scheme Circular dated 27 August
2008, the following Ordinary shares, of nominal value 50 pence were allotted:
Mid-market
price on issue
Issue price date
Number of shares (pence per (pence per Net proceeds
Date of allotment issued share) share) £'000
--------------------------------------------------------------------------------
31 May 2011 78,843 72.9 65.5 52
During the period from 1 January to 16 May 2011, the Company issued the
following New Ordinary shares of nominal value 50 pence under the Albion VCTs
Linked Top Up Offer (which has now closed):
Mid-market
price on issue
Issue price date
Number of shares (pence per (pence per Net proceeds
Date of allotment issued share) share) £'000
--------------------------------------------------------------------------------
7 January 2011 816,370 80.10 64.00 619
22 March 2011 811,163 80.10 60.50 615
5 April 2011 533,103 80.10 61.50 404
16 May 2011 47,058 77.10 65.50 34
During the period to 30 June 2011 the Company purchased 482,372 Ordinary shares
for cancellation at a cost of £305,000 representing 1.4 per cent. of the shares
in issue as at 1 January 2011.
The total number of Ordinary shares held in treasury as at 30 June 2011 was
3,243,696 (30 June 2010: 3,266,587; 31 December 2010: 3,243,696) representing
9.4 per cent. of the shares in issue as at 1 January 2011.
Unaudited Unaudited Audited
30 June 2011 30 June 2010 31 December 2010
D shares £'000 £'000 £'000
--------------------------------------------------------------------------------
Authorised
40,000,000 D shares of 50p each (30
June 2010 and 31 December
2010: 40,000,000) 20,000 20,000 20,000
-------------------------------------------
Allotted, called up and fully paid
6,343,706 D shares of 50p each (30
June 2010 and 31 December
2010: 6,335,155) 3,172 3,168 3,168
-------------------------------------------
Voting rights
6,343,706 D shares of 50p each (30 June 2010 and 31 December 2010: 6,335,155)
Under the terms of the Dividend Reinvestment Scheme Circular dated 5 April
2011, the following Ordinary shares, of nominal value 50 pence were allotted:
Mid-market
price on issue
Issue price date
Number of shares (pence per (pence per Net proceeds
Date of allotment issued share) share) £'000
--------------------------------------------------------------------------------
31 May 2011 8,551 91.75 94.0 6
The Company does not hold any D shares in treasury as at 30 June 2011.
8.    Reconciliation of revenue return on ordinary activities before
taxation to net cash flow from operating activities
Combined
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2011 30 June 2010 31 December 2010
£'000 £'000 £'000
--------------------------------------------------------------------------------
Revenue return on ordinary
activities before tax 261 276 543
Investment management fee
charged to capital (239) (218) (457)
Movement in accrued amortised
loan stock interest (35) (47) (44)
(Increase)/decrease in
operating debtors (535) (1) 22
Increase in operating
creditors 481 13 17
---------------------------------------------------
Net cash flow from operating
activities (67) 23 81
---------------------------------------------------
Ordinary shares
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2011 30 June 2010 31 December 2010
£'000 £'000 £'000
--------------------------------------------------------------------------------
Revenue return on ordinary
activities before tax 227 257 525
Investment management fee
charged to capital (190) (187) (376)
Movement in accrued amortised
loan stock interest (33) (46) (43)
(Increase)/decrease in
operating debtors (524) 4 26
(Decrease) in operating
creditors (21) (23) (31)
---------------------------------------------------
Net cash flow from operating
activities (541) 5 101
---------------------------------------------------
D shares
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2011 30 June 2010 31 December 2010
£'000 £'000 £'000
--------------------------------------------------------------------------------
Revenue return on ordinary
activities before tax 34 19 18
Investment management fee
charged to capital (49) (31) (81)
Movement in accrued amortised
loan stock interest (2) (1) (1)
(Increase) in operating
debtors (11) (5) (4)
Increase in operating
creditors 502 36 48
---------------------------------------------------
Net cash flow from operating
activities 474 18 (20)
---------------------------------------------------
9.    Analysis of change in cash during the period
Combined
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2011 30 June 2010 31 December 2010
£'000 £'000 £'000
--------------------------------------------------------------------------
Beginning of the period 8,512 5,908 5,908
Net cash flow 51 3,881 2,604
---------------------------------------------------
End of the period 8,563 9,789 8,512
---------------------------------------------------
Ordinary shares
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2011 30 June 2010 31 December 2010
£'000 £'000 £'000
--------------------------------------------------------------------------
Beginning of the period 4,227 4,709 4,709
Net cash flow 798 (670) (482)
---------------------------------------------------
End of the period 5,025 4,039 4,227
---------------------------------------------------
D shares
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2011 30 June 2010 31 December 2010
£'000 £'000 £'000
--------------------------------------------------------------------------
Beginning of the period 4,285 1,199 1,199
Net cash flow (747) 4,551 3,086
---------------------------------------------------
End of the period 3,538 5,750 4,285
---------------------------------------------------
10.    Post balance sheet events
    Since 30 June 2011, the Company has completed the following material
transactions:
* Investment in Rostima Holdings Limited of £24,000 (Ordinary shares)
* Investment in Helveta Limited of £15,000 (Ordinary shares)
* Receipt of £33,000 (Ordinary shares) of deferred consideration in respect of
the disposal of Green Energy Property Services Group Limited in July 2011
* Disposal of investment in Evolutions Television Limited for proceeds of
£315,000 (Ordinary shares).
11.    Related party transactions
The Manager, Albion Ventures LLP, is considered to be a related party by virtue
of the fact that it is party to a management agreement with the Company. During
the period, services of a total value of £319,000 (six months ended 30 June
2010: £290,000; year ended 31 December 2010: £609,000), were purchased by the
Company from Albion Ventures LLP. At the financial period end, the amount due to
Albion Ventures LLP in respect of these services was £163,000 (30 June 2010:
£160,000; 31 December 2010: £160,000).
Albion Ventures LLP holds 331 fractional entitlement shares of the Company as a
result of the conversion of C shares to Ordinary shares in March 2007. These
shares will be sold for the benefit of the Company at a future date.
Albion Ventures LLP also holds 14,000 Ordinary shares as a result of the failure
of an original subscriber to pay cleared funds on initial subscription.
12. Â Â Â Â Going concern
The Board's assessment of liquidity risk remains unchanged since the last Annual
Report and Financial Statements for the year ended 31 December 2010, and is
detailed on page 28 of those accounts. The Company has adequate cash and liquid
resources. The portfolio of investments is diversified in terms of sector, and
the major cash outflows of the Company (namely investments, dividends and share
buy-backs) are within the Company's control. Accordingly, after making diligent
enquiries, the Directors have a reasonable expectation that the Company has
adequate resources to continue in operational existence for the foreseeable
future. For this reason, the Directors have adopted the going concern basis in
preparing this Half-yearly Financial Report and this is in accordance with
'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009'
published by the Financial Reporting Council.
13. Â Â Â Â Risks and uncertainties
The Board considers that the Company faces the following major risks and
uncertainties:
1. Investment risk
This is the risk of investment in poor quality assets which reduces the capital
and income returns to shareholders, and negatively impacts on the Company's
reputation. By nature, smaller unquoted businesses, such as those that qualify
for venture capital trust purposes, are more fragile than larger, long
established businesses. To reduce this risk, the Board places reliance upon the
skills and expertise of the Manager and its strong track record for investing in
this segment of the market. In addition, the Manager operates a formal and
structured investment process, which includes an Investment Committee,
comprising investment professionals from the Manager and at least one external
investment professional. The Manager also invites comments from non-executive
Directors of the Company on investments discussed at the Investment Committee
meetings. Investments are actively and regularly monitored by the Manager
(investment managers normally sit on investee company boards) and the Board
receives detailed reports on each investment as part of the Manager's report at
quarterly board meetings.
2. Venture Capital Trust approval risk
The Company's current approval as a venture capital trust allows investors to
take advantage of tax reliefs on initial investment and ongoing tax free capital
gains and dividend income. Failure to meet the qualifying requirements could
result in investors losing the tax relief on initial investment and loss of tax
relief on any tax-free income or capital gains received. In addition, failure to
meet the qualifying requirements could result in a loss of listing of the
shares. To reduce this risk, the Board has appointed the Manager, who has a team
with significant experience in venture capital trust management, used to
operating within the requirements of the venture capital trust legislation. In
addition, to provide further formal reassurance, the Board has appointed
PricewaterhouseCoopers LLP as its taxation advisors. PricewaterhouseCoopers LLP
report quarterly to the Board to independently confirm compliance with the
venture capital trust legislation, to highlight areas of risk and to inform on
changes in legislation.
3. Compliance risk
The Company is listed on The London Stock Exchange and is required to comply
with the rules of the UK Listing Authority, as well as with the Companies Act,
Accounting Standards and other legislation. Failure to comply with these
regulations could result in a delisting of the Company's shares, or other
penalties under the Companies Act or from financial reporting oversight bodies.
Board members and the Manager have experience of operating at senior levels
within quoted businesses. In addition, the Board and the Manager receive regular
updates on new regulation from its auditors, lawyers and other professional
bodies.
4. Internal control risk
Failures in key controls, within the Board or within the Manager's business,
could put assets of the Company at risk or result in reduced or inaccurate
information being passed to the Board or to shareholders. The Audit Committee
meets with the Manager's internal auditors Littlejohn LLP at least once a year,
receiving a report regarding the last formal internal audit performed on the
Manager, and providing the opportunity for the Audit Committee to ask specific
and detailed questions. During the year the Board met with the internal audit
Partner of Littlejohn LLP to discuss the most recent Internal Audit Report on
the Manager. The Manager has a comprehensive business continuity plan in place
in the event that operational continuity is threatened. Further details
regarding the Board's management and review of the Company's internal controls
through the implementation of the Turnbull guidance are detailed on pages 27 and
28 of the Financial Statements for the year ended 31 December 2010. Â Measures
are in place to mitigate information risk in order to ensure the integrity,
availability and confidentiality of information used within the business.
5. Reliance upon third parties risk
The Company is reliant upon the services of Albion Ventures LLP for the
provision of investment management and administrative functions. There are
provisions within the management agreement for the change of Manager under
certain circumstances (for further detail, see the management agreement
paragraph on page 22 of the Financial Statements for the year ended 31 December
2010). In addition, the Manager has demonstrated to the Board that there is no
undue reliance placed upon any one individual within Albion Ventures LLP.
6. Financial risks
By its nature, as a venture capital trust, the Company is exposed to investment
risk (which comprises investment price risk and cash flow interest rate risk),
credit risk and liquidity risk. The Company's policies for managing these risks
and its financial instruments are outlined in full in note 20 to the Financial
Statements for the year ended 31 December 2010. All of the Company's income and
expenditure is denominated in sterling and hence the Company has no foreign
currency risk. The Company is financed through equity and does not have any
borrowings. The Company does not use derivative financial instruments.
14.    Other information
The information set out in this Half-yearly Financial Report does not constitute
the Company's statutory accounts within the terms of section 434 of the
Companies Act 2006 for the periods ended 30 June 2011 and 30 June 2010, and is
unaudited. The information for the year ended 31 December 2010 does not
constitute statutory accounts within the terms of section 434 of the Companies
Act 2006 but is derived from the audited statutory accounts for the financial
year, which were unqualified and which have been delivered to the Registrar of
Companies.
15.    Publication
This Half-yearly Financial Report is being sent to shareholders and copies will
be made available to the public at the registered office of the Company,
Companies House, the National Storage Mechanism and also electronically
atwww.albion-ventures.co.uk under the 'Our Funds' section by clicking on Albion
Development VCT PLC, and looking in the Financial Reports and Circulars section
for the Half-yearly Financial Report to 30 June 2011.
D Shares Portfolio by sector at 30 June 2011 :
http://hugin.info/141803/R/1540993/471253.pdf
Ordinary Shares Portfolio by sector at 30 June 2011:
http://hugin.info/141803/R/1540993/471252.pdf
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Albion Development VCT PLC - Ordinary Shares via Thomson Reuters ONE
[HUG#1540993]
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