Kings Arms Yard VCT PLC: Half-yearly report

Kings Arms Yard VCT PLC
As required by the UK Listing Authority's Disclosure and Transparency Rule 4.2, Kings Arms Yard VCT PLC today makes public its information relating to the Half-yearly Financial Report (which is unaudited) for the six months to 30 June 2015. This announcement was approved by the Board of Directors on 27 August 2015.

The full Half-yearly Financial Report (which is unaudited) for the period to 30 June 2015 will shortly be sent to shareholders. Copies of the full Half-yearly Financial Report will be shown via the Albion Ventures LLP website by clicking www.albion-ventures.co.uk/ourfunds/KAY.htm under the 'Investor Centre' in the 'Financial Reports and Circulars' section.

Investment objectives
The Company is a Venture Capital Trust. The investment policy is intended to produce a regular and predictable dividend stream with an appreciation in capital value as set out below.

The Company intends to achieve its strategy by adopting an investment policy for new investments which over time will rebalance the portfolio such that approximately 50 per cent. of the portfolio comprises an asset-backed portfolio of more stable, ungeared businesses, principally operating in the healthcare, environmental and leisure sectors (the "Asset-Backed Portfolio").  The balance of the portfolio, other than funds retained for liquidity purposes, will be invested in a portfolio of higher growth businesses across a variety of sectors of the UK economy.  These will range from more stable, income producing businesses to a limited number of higher risk technology companies (the "Growth Portfolio").

In neither category would portfolio companies normally have any external borrowing with a charge ranking ahead of the Company.  Up to two-thirds of qualifying investments by cost will comprise loan stock secured with a first charge on the portfolio company's assets.

The Company's investment portfolio will thus be structured to provide a balance between income and capital growth for the longer term.  The Asset-Backed Portfolio is designed to provide stability and income whilst still maintaining the potential for capital growth.  The Growth Portfolio is intended to provide highly diversified exposure through its portfolio of investments in unquoted UK companies.

Funds held pending investment or for liquidity purposes will be held as cash on deposit or in floating rate notes or similar instruments with banks or other financial institutions with high credit ratings assigned by international credit rating agencies.

Financial calendar

Record date for second dividend	2 October 2015
Payment date of second dividend	30 October 2015
Financial year end	31 December 2015

Financial highlights

	Unaudited six months ended 30 June 2015	Unaudited six months ended 30 June 2014	Audited year ended 31 December 2014
	(pence per share)	(pence per share)	(pence per share)
Net asset value	19.90	19.98	19.31
Dividends paid	0.50	0.50	1.00
Revenue return	0.16	0.15	0.27
Capital return/(loss)	0.92	(0.13)	(0.43)
Net asset value enhancement as a result of share buy-backs	0.01	0.01	0.02

Shareholder net asset value total return	From Launch to 31 December 2010 (pence per share)	1 January 2011* to 30 June 2015 (pence per share)	From Launch to 30 June 2015 (pence per share)
Subscription price per share at launch	100.00	-	100.00
Dividends paid	58.66	4.17	62.83
(Decrease)/increase in shareholder net asset value	(83.40)	3.30	(80.10)
Shareholder net asset value total return	75.26	7.47	82.73

* Date that Albion Ventures LLP was appointed Manager.

Current annual dividend objective (pence per share)

1.00

The Directors have declared a second dividend of 0.5 pence per share for the year ended 31 December 2015, which will be paid on 30 October 2015 to shareholders on the register as at 2 October 2015.

The above financial summary is for the Company, Kings Arms Yard VCT PLC only.  Details of the financial performance of the various Quester, SPARK and Kings Arms Yard VCT 2 PLC companies, which have been merged into the Company, can be found at the end of this announcement.

Chairman's statement

Introduction
We are pleased to report a total return of 5.6% in the six month period to 30 June 2015. The Manager continues to rebalance the portfolio so that asset backed investments now comprise approximately a third of net asset value. The Company reported a profit in the period, excluding the uplift in portfolio valuation, as investment income covered the annual operating costs including management fee and other expenses.

Results
Net asset value per share increased in the period from 19.31 pence per share at 31 December 2014 to 19.90 pence per share at 30 June 2015, following the payment of a 0.50 pence per share dividend on 30 April 2015.  Total net asset value return (per 100 pence originally invested) has risen in the period from 81.64 pence per share at 31 December 2014 to 82.73 pence per share on 30 June 2015 (30 June 2014: 81.81 pence per share).

Both the asset-backed investment portfolio and the growth portfolio have shown overall improvements in value.

Investment activity
There has been a reasonable level of investment activity in the six months ended 30 June 2015 with £2.2m invested in existing portfolio companies. No new companies were added to the portfolio in the period, partly as a result of the significant investment activity in 2014 and related follow-on investments in 2015 which include three new build freehold care homes in Cumnor Hill (Oxford), Hillingdon (Uxbridge) and Shinfield (Reading).

The most significant follow-on investments include: Chonais River Hydro (£550,000); Elateral Group Holdings (£300,000); Perpetuum (£180,000); and Abcodia (£130,000).

During the period, the Company sold its stake in Cluster Seven for £1.9m and disposed of £0.7m worth of shares in Oxford Immunotec Global PLC.

Valuations
Once again the Board has rigorously examined and revalued the portfolio.  The net effect has been a £2.3m uplift partly as a result of third party revaluations following the achievement of critical stages in asset backed projects and partly improved performance in the growth portfolio, including an increase of £0.8m in the value of Lab M Holdings Limited, the disposal of which had been under negotiation for some time. The sale was completed on 27th August after the balance sheet date. Overall the asset backed investments have increased in value by £1.1m and the growth companies have increased in value by £1.2m despite a loss on disposal of Cluster Seven of £0.5m.

Net asset value split as at 30 June 2015
Set out at the bottom of this announcement are sector and asset class diversification pie charts of the net asset value of the Company as at 30 June 2015.

Dividends
Progress to date gives the Board confidence in the sustainability of our dividend policy and we are therefore pleased to announce a further dividend of 0.50 pence per share to be paid on 30 October 2015, to shareholders on the register as at 2 October 2015.

Transactions with the Manager
Details of transactions with the Manager for the reporting period can be found in note 4 of this Half-yearly Financial Report. Details of related party transactions can be found in note 12.

Albion VCTs Top Up Offers
During the period 1 January 2015 to the date of this report, the Company has raised £4.5 million under the Albion VCTs Top Up Offers, which will close on 30 September 2015 unless fully subscribed earlier. 

The proceeds of the Offers are being used to provide further resources at a time when a number of attractive new investment opportunities are being seen.

Share buy-backs
It remains the Company's policy to buy-back shares in the market, subject to the overall constraint that such purchases are in the Company's interest.  This includes the maintenance of sufficient cash resources for investment in new and existing portfolio companies and the continued payment of dividends to shareholders.  It is the Board's current intention for such buy-backs to be in the region of a 5 per cent. discount to net asset value, so far as market conditions and liquidity permit.

In view of other investment opportunities available, the Company intends to limit the amount of buy-backs during the six month period to 31 December 2015 to approximately £0.75m, unless a material investment exit occurs.

Risks and uncertainties
The outlook for the UK economy continues to be the key risk affecting your Company.  Investment in small and unquoted companies also carries particular risks of its own.  The Company's investment risk is mitigated by a number of processes, including our policy of ensuring that the Company has a first charge over portfolio companies' assets wherever possible.

Other risks and uncertainties remain unchanged and are as detailed in note 14.

Changes in VCT legislation
The July budget introduced a number of changes to VCT legislation, including restrictions over the age of investments, a prohibition on management buyouts or the purchase of existing businesses and an overall lifetime investment cap of £12m from tax-advantaged funds into any portfolio company. While these changes are significant, had they been in place previously they would only have affected a relatively small minority of the investments that we have made into new portfolio companies over recent years. Our current view is that there will be no change in our investment policy as a result of these changes, but the legislation is still being worked on and we will have a more detailed view of its effect after Royal Assent, expected in October 2015.

Outlook
Whilst the UK economy continues to improve, uncertainties remain including the impact of any withdrawal of monetary stimulation (Quantitative Easing and ultra-low interest rates) and sovereign and consumer debt burdens. In addition, the global economic environment remains uncertain.

Your Board nonetheless believes the current investment policy of combining asset-backed, income yielding investments with investments offering a higher risk/return profile, offers the best prospect of further improvements in capital value and a sustainable long term dividend.

Robin Field
Chairman
27 August 2015

Responsibility statement

The Directors, Robin Field, Thomas Chambers and Martin Fiennes, are responsible for preparing the Half-yearly Financial Report. In preparing these condensed Financial Statements for the period to 30 June 2015 we, the Directors of the Company, confirm that to the best of our knowledge:

(a) the condensed set of Financial Statements, which has been prepared in accordance with the pronouncement on interim reporting issued by the Accounting Standards Board, gives a true and fair view of the assets, liabilities, financial position and profit and loss of the Company as required by DTR 4.2.4;

(b) the interim management report, of which the Chairman's statement forms a part, 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); and

(c) the interim management report, of which the Chairman's statement forms a part, includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

This Half-yearly Financial Report has not been audited or reviewed by the Auditor.

By order of the Board

Robin Field
Chairman
27 August 2015

Portfolio of investments

The following is a summary of fixed asset investments as at 30 June 2015:

Fixed asset investments	% voting rights	Cost(1) £'000	Cumulative movement in value £'000	Value £'000		Change in value for the period(2) £'000
Asset-backed unquoted investments
Chonais River Hydro Limited	6.5	2,428	302	2,729		276
Active Lives Care Limited	15.5	2,062	96	2,158		46
Alto Prodotto Wind Limited	11.1	1,000	473	1,473		131
The Street by Street Solar Programme Limited	10.0	1,040	417	1,457		68
Regenerco Renewable Energy Limited	9.8	988	244	1,232		120
Ryefield Court Care Limited	11.0	1,103	54	1,158		27
Dragon Hydro Limited	17.2	736	373	1,109		222
Bravo Inns II Limited	5.0	800	17	817		4
Gharagain River Hydro Limited	5.0	620	157	777		150
AVESI Limited	14.8	484	103	587		54
Greenenerco Limited	8.6	300	155	455		53
Erin Solar Limited	5.7	160	(3)	157		(3)
Infinite Ventures (Goathill) Limited	2.7	112	-	112		-
Harvest AD Limited	0.0	70	-	70		-
Total asset-backed unquoted investments		11,903	2,388	14,291		1,148
High growth unquoted investments
Elateral Group Limited	37.7	3,644	1,617	5,261		(38)
Sift Limited	40.1	3,277	(670)	2,607		(34)
Lab M Holdings Limited	26.4	858	1,243	2,101		759
Proveca Limited	16.4	930	463	1,393		48
Hilson Moran Holdings Limited	15.0	460	770	1,230		272
MyMeds&Me Limited	6.4	730	410	1,140		419
Perpetuum Limited	15.0	1,773	(652)	1,121		170
OmPrompt Holdings Limited	7.4	900	21	921		11
Antenova Limited	21.3	1,585	(728)	857		385
Academia Inc	5.3	351	497	848		(15)
Xention Limited	5.1	608	194	802		-
Symetrica Limited	3.5	389	253	642		8
Egress Software Technology Limited	4.3	430	110	540		32
Haemostatix Limited	18.9	1,642	(1,124)	518		(72)
Abcodia Limited	5.0	428	60	488		57
Anthropics Technology Limited	12.4	-	427	427		(196)
Celoxica Holdings plc	4.4	513	(144)	369		-
Relayware Limited	1.4	325	12	337		4
Grapeshot Limited	2.5	309	-	309		-
Aridhia Informatics Limited	0.8	299	(65)	234		(21)
Cisiv Limited	2.6	170	60	230		61
Mirada Medical Limited	1.1	230	(7)	223		(7)
The Wentworth Wooden Jigsaw Company Limited	5.4	-	145	145		5
Ario Pharma Limited	1.7	-	96	96		-
Silent Herdsman Holdings Limited	3.7	153	(75)	78		(19)
Sandcroft Avenue Limited (T/A payasugym.com)	1.3	84	(10)	74		-
Xtera Communications Inc	0.9	85	(75)	10		-
Uniservity Limited(3)	93.6	250	(240)	10		(140)
Oxonica Limited	2.1	185	(184)	1		-
TeraView Limited	1.0	1	-	1		-
Lectus Therapeutics Limited	4.5	-	1	1		-
Keronite Group Limited	1.1	-	1	1		-
De Nova Pharmaceuticals Limited	0.0	-	1	1		-
Furzeland Limited	0.0	-	1	1		-
Total high growth unquoted investments		20,609	2,408	23,017		1,689
Total unquoted investments		32,512	4,796	37,308		2,837
Quoted investments
Oxford Immunotec Global PLC (NASDAQ)		1,114	1,407	2,521		19
Total quoted investments		1,114	1,407	2,521		19
Total fixed asset investments		33,626	6,203	39,829		2,856

Total change in value on investments for the period					2,856
Movement in loan stock accrued interest					(119)
Unrealised gains sub-total					2,737
Realised losses in current period					(486)
Total gains on investments as per Income statement					2,251

(1)        Amounts shown as cost represent the acquisition cost in the case of investments originally made by the Company and/or the valuation attributed to the investments acquired from Quester VCT 2 plc and Quester VCT 3 plc at the date of the merger in 2005, plus any subsequent acquisition costs, as reduced in certain cases by amounts written off as representing an impairment in value.
(2)        As adjusted for additions and disposals during the period.
(3)        In accordance with FRS102 a subsidiary shall be excluded from consolidation where the interest in the subsidiary is held exclusively with a view for subsequent re-sale and held as part of an investment portfolio. These should be measured at fair value, with changes in fair value recognised in profit or loss.

Fixed asset realisations in the period to 30 June 2015	Cost £'000	Opening  carrying value £'000	Disposal proceeds £'000	Total realised (loss)/gain on cost £'000	(Loss)/gain on opening or acquired value £'000
Cluster Seven Limited	2,076	2,400	1,928	(148)	(472)
Oxford Immunotec Global PLC	307	688	683	376	(5)
Orchard Portman Group	175	206	225	50	19
Perpetuum Limited (loan stock repayment)	51	51	63	12	12
Hilson Moran Holdings Limited (loan stock repayment)	35	48	48	13	-
Clear2Pay NV	-	-	3	3	3
Atego Group Limited (escrow adjustment)	-	-	(43)	(43)	(43)
Total	2,644	3,393	2,907	263	(486)

Condensed income statement

		Unaudited six months ended 30 June 2015			Unaudited six months ended 30 June 2014			Audited year ended 31 December 2014
	Note	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Gains/(losses) on  investments	2	-	2,251	2,251	-	40	40	-	(370)	(370)
Investment income	3	582	-	582	546	-	546	1,007	112	1,119
Investment management fees	4	(101)	(303)	(404)	(100)	(300)	(400)	(200)	(601)	(801)
Other expenses		(132)	-	(132)	(145)	-	(145)	(270)	-	(270)
Exchange rate movement		(9)	-	(9)	(2)	-	(2)	(2)	-	(2)
Return/(loss) on ordinary activities before tax		340	1,948	2,288	299	(260)	39	535	(859)	(324)
Tax on ordinary activities		-	-	-	-	-	-	-	-	-
Return/(loss) on ordinary activities after tax		340	1,948	2,288	299	(260)	39	535	(859)	(324)
Basic and diluted return/(loss) per share (pence)*	6	0.16	0.92	1.08	0.15	(0.13)	0.02	0.27	(0.43)	(0.16)

 *Excluding treasury shares

The accompanying notes form an integral part of this Half-yearly Financial Report.

Comparative figures have been extracted from the unaudited Half-yearly Financial Report for the six months ended 30 June 2014 and the audited statutory accounts for the year ended 31 December 2014. 

The total column of this Condensed 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. 

The Company has only one class of business and derives its income from investments made in shares and securities and from bank deposits.

There are no recognised gains or losses other than the results for the periods disclosed above.  Accordingly a Statement of comprehensive income is not required.  The difference between the reported return/(loss) on ordinary activities before tax and the historical cost profit/(loss) is due to the fair value movements on investments.  As a result a note on historical cost profit and losses has not been prepared.

Condensed balance sheet

	Note	Unaudited 30 June 2015 £'000		Unaudited 30 June 2014 £'000		Audited 31 December 2014 £'000
Fixed assets Investments		39,829		35,876		38,205
Current assets
Trade and other receivables less than one year		835		2,304		473
Current asset investments		-		470		-
Cash and cash equivalents	9	3,648		1,463		798
		4,483		3,767		1,271
Total assets		44,312		40,113		39,476
Creditors: amounts falling due within one year
Trade and other payables less than one year		(341)		(305)		(535)
Net assets		43,971		39,808		38,941
Equity attributable to equity shareholders
Called up share capital	7	2,501		2,214		2,265
Share premium		7,796		2,476		3,444
Capital redemption reserve		11		11		11
Investment holding reserve		5,969		338		3,981
Other distributable reserve		27,694		34,769		29,240
Total equity shareholders' funds		43,971		39,808		38,941
Basic and diluted net asset value per share (pence)*		19.90		19.98		19.31

*Excluding treasury shares

The accompanying notes form an integral part of this Half-yearly Financial Report.

Comparative figures have been extracted from the unaudited Half-yearly Financial Report for the six months ended 30 June 2014 and the audited statutory accounts for the year ended 31 December 2014. 

These Financial Statements were approved by the Board of Directors, and authorised for issue on 27 August 2015 and were signed on its behalf by

Robin Field
Chairman
Company number: 03139019
Condensed statement of changes in equity

	Called-up  share capital	Share premium	Capital redemption reserve	Investment holding reserve	Other distributable reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
As at 1 January 2015	2,265	3,444	11	3,981	29,240	38,941
Return/(loss) and total comprehensive income for the period	-	-	-	2,737	(449)	2,288
Transfer of previously unrealised gains on disposal of investments	-	-	-	(749)	749	-
Purchase of treasury shares	-	-	-	-	(767)	(767)
Issue of equity	236	4,484	-	-	-	4,720
Cost of issue of equity	-	(132)	-	-	-	(132)
Equity dividends paid	-	-	-	-	(1,079)	(1,079)
As at 30 June 2015	2,501	7,796	11	5,969	27,694	43,971
As at 1 January 2014	2,099	82	-	1,711	35,370	39,262
Return/(loss) and total comprehensive income for the period	-	-	-	613	(574)	39
Transfer of previously unrealised gains on disposal of investments	-	-	-	(1,986)	1,986	-
Purchase of treasury shares	-	-	-	-	(788)	(788)
Purchase of shares for cancellation	(11)	-	11	-	(214)	(214)
Issue of equity	126	2,466	-	-	-	2,592
Cost of issue of equity	-	(72)	-	-	-	(72)
Equity dividends paid	-	-	-	-	(1,011)	(1,011)
As at 30 June 2014	2,214	2,476	11	338	34,769	39,808
As at 1 January 2014	2,099	82	-	1,711	35,370	39,262
Loss and total comprehensive income for the year	-	-	-	(279)	(45)	(324)
Transfer of previously unrealised losses on disposal of investments	-	-	-	2,549	(2,549)	-
Purchase of shares for cancellation	(11)	-	11	-	(214)	(214)
Purchase of treasury shares	-	-	-	-	(1,297)	(1,297)
Issue of equity	177	3,466	-	-	-	3,624
Cost of issue of equity	-	(104)	-	-	-	(85)
Equity dividends paid	-	-	-	-	(2,025)	(2,025)
As at 31 December 2014	2,265	3,444	11	3,981	29,240	38,941

Comparative figures have been extracted from the unaudited Half-yearly Financial Report for the six months ended 30 June 2014 and the audited statutory accounts for the year ended 31 December 2014. 

The total distributable reserves are £27,694,000 (30 June 2014: £34,769,000; 31 December 2014: £29,240,000).

Condensed statement of cash flows

	Note	Unaudited six months ended 30 June 2015 £'000		Unaudited six months ended 30 June 2014 £'000		Audited year ended 31 December 2014 £'000
Cash flow from operating activities
Loan stock income received		384		338		829
Deposit interest received		9		151		164
Dividend income received		62		159		77
Investment management fees paid		(596)		(379)		(379)
Other cash payments		(175)		(147)		(451)
Net cash flow from operating activities	8	(316)		122		240
Cash flow from investing activities
Purchase of fixed asset investments		(2,164)		(4,895)		(8,353)
Disposal of fixed asset investments		3,136		39		3,899
Disposal of current asset investments		-		3,750		3,750
Cash from investments previously sold or written off		-		708		30
Net cash flow from investing activities		972		(398)		(674)
Cash flow from financing activities
Issue of share capital		3,918		2,479		3,450
Cost of issue of shares		(6)		(2)		(3)
Equity dividends paid*		(1,003)		(968)		(1,929)
Purchase of own shares (including costs)		(715)		(995)		(1,511)
Net cash flow from financing activities		2,194		514		7
Increase/(decrease) in cash and cash equivalents		2,850		238		(427)
Cash and cash equivalents at start of period		798		1,225		1,225
Cash and cash equivalents at end of period	9	3,648		1,463		798
Cash and cash equivalents comprise:
Cash at bank and in hand		3,648		1,463		798
Cash equivalents		-		-		-
Total cash and cash equivalents		3,648		1,463		798

The accompanying notes form an integral part of this Half-yearly Financial Report.

Comparative figures have been extracted from the unaudited Half-yearly Financial Report for the six months ended 30 June 2014 and the audited statutory accounts for the year ended 31 December 2014. 

* The equity dividend paid in the cash flow is different to the dividend disclosed in note 5 due to the non-cash effect of the Dividend Reinvestment Scheme.

Notes to the condensed Financial Statements

1. Basis of preparation

The condensed 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, including Financial Reporting Standard 102 ("FRS 102"), and with the 2014 Statement of Recommended Practice "Financial Statements of Investment Trust Companies and Venture Capital Trusts" ("SORP") issued by The Association of Investment Companies ("AIC"). This is the first period in which the financial statements have been prepared under FRS 102. There has been no material change in the accounting policies and so there has been no restatement of comparatives.

The half-yearly report has not been audited, nor has it been reviewed by the auditor pursuant to the FRC's guidance on Review of interim financial information.

Accounting policies

Consolidation
In accordance with FRS 102, a subsidiary is excluded from consolidation where the interest in the subsidiary is held exclusively with a view for subsequent re-sale and is held as part of an investment portfolio. These should be measured at fair value, with changes in fair value recognised in profit or loss.

The results of UniServity Limited, where the Company holds in excess of 50% of that company's equity are, therefore, excluded from consolidation as the interest in UniServity Limited is held as part of an investment portfolio.

In accordance with the requirements of FRS 102, those undertakings in which the Company holds more than 20 per cent. of the equity as part of an investment portfolio are not accounted for using the equity method. In these circumstances the investment is measured at fair value through profit or loss.

Fixed asset investments
The Company's business is investing in financial assets with a view to profiting from their total return in the form of income and capital growth.  This portfolio of financial assets is managed and its performance evaluated on a fair value basis, in accordance with a documented investment policy, and information about the portfolio is provided internally on that basis to the Board.

Upon initial recognition (using trade date accounting) investments are designated by the Company as 'at fair value through profit or loss' and are included at their initial fair value, which is cost (excluding expenses incidental to the acquisition which are written off to the income statement).

Subsequently, the investments are valued at 'fair value', which is measured as follows:

• Investments listed on recognised exchanges are valued at their bid prices at the end of the accounting period or otherwise at fair value based on published price quotations;

• Unquoted investments, where there is not an active market, are valued using an appropriate valuation technique in accordance with the IPEVCV Guidelines. Indicators of fair value are derived using established methodologies including earnings multiples, the level of third party offers received, prices of recent investment rounds, net assets and industry valuation benchmarks. Where the Company has an investment in an early stage enterprise, the price of a recent investment round is often the most appropriate approach to determining fair value. In situations where a period of time has elapsed since the date of the most recent transaction, consideration is given to the circumstances of the portfolio company since that date in determining fair value.  This includes consideration of whether there is any evidence of deterioration or strong definable evidence of an increase in value. In the absence of these indicators, the investment in question is valued at the amount reported at the previous reporting date. Examples of events or changes that could indicate a diminution include:

• the performance and/or prospects of the underlying business are significantly below the expectations on which the investment was based;
• a significant adverse change either in the portfolio company's business or in the technological, market, economic, legal or regulatory environment in which the business operates; or
• market conditions have deteriorated, which may be indicated by a fall in the share prices of quoted businesses operating in the same or related sectors.

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.

Gains and losses on investments
Gains and losses arising from changes in the fair value of the investments are included in the Income statement for the period as a capital item and are allocated to the investment holding reserve.

Investment income
Dividends receivable on quoted equity shares are recognised on the ex-dividend date.  Income receivable on unquoted equity and non-equity shares and loan notes is recognised when the Company's right to receive payment and expect settlement is established.  Fixed returns on non-equity shares and debt securities are recognised on a time apportionment basis using an 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. Interest income is recognised on an accruals basis using the rate of interest agreed with the bank.

Investment management fees and other expenses
All expenses, including expenses incidental to the acquisition or disposal of an investment, are accounted for on an accruals basis and are charged to the Income statement except for 75% of management fees which are allocated to capital to the extent that these relate to an enhancement in the value of the investments.  This is in line with the Board's expectation that over the long term 75% of the Company's investment returns will be in the form of capital gains.

Costs associated with the issue of shares are charged to the share premium account.  Costs associated with the buy-back of shares are charged to the other distributable reserve, which now includes the special reserve to which these costs were previously charged.

Taxation
Taxation is applied on a current basis in accordance with FRS 102. Current tax is tax payable (refundable) in respect of the taxable profit (tax loss) for the current period or past reporting periods using the tax rates and laws that have been enacted or substantively enacted at the financial reporting date. Taxation associated with capital expenses is applied in accordance with the SORP.

Deferred tax is provided in full on all timing differences at the reporting date. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements.

Foreign exchange
The currency of the primary economic environment in which the Company operates (the functional currency) is pounds Sterling ("Sterling"), which is also the presentational currency of the Company.  Transactions involving currencies other than Sterling are recorded at the exchange rate ruling on the transaction date.  At each Balance sheet date, monetary items and non-monetary assets and liabilities that are measured at fair value, which are denominated in foreign currencies, are retranslated at the closing rates of exchange.  Exchange differences arising on settlement of monetary items and from retranslating at the Balance sheet date of investments and other financial instruments measured at fair value through profit or loss, and other monetary items, are included in the Income statement.  Exchange differences relating to investments and other financial instruments measured at fair value are subsequently included in the Investment holding reserve.

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 other distributable 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.

Investment holding reserve
Increases and decreases in the valuation of investments held at the year end against cost are included in this reserve.

Other distributable reserve
This reserve accounts for movements from the revenue column of the Income statement, gains and losses compared to cost on the realisation of investments, expenses charged in accordance with the above policies, the payment of dividends, the buy-back of shares and other non-capital realised movements.

Dividends
Dividends by the Company are accounted for in the period in which the dividend is paid or approved at the Annual General Meeting. 

2.         Gains/(losses) on investments

	Unaudited six months ended 30 June 2015 £'000		Unaudited six months ended 30 June 2014 £'000		Audited year ended 31 December 2014 £'000
Unrealised gains/(losses) on fixed asset investments held at fair value through profit or loss	2,737		140		(279)
Unrealised gains on current asset investments held at fair value through profit or loss	-		470		-
Unrealised gain on deferred consideration held at fair value through profit or loss	-		3		-
Unrealised gains sub-total	2,737		613		(279)
Realised losses on fixed asset investments held at fair value through profit or loss	(486)		(638)		(156)
Realised gains in respect of escrow receipts from previously sold investments and distributions from investments in liquidation	-		65		65
Realised losses sub-total	(486)		(573)		(91)
	2,251		40		(370)

3.         Investment income

	Unaudited six months ended 30 June 2015 £'000		Unaudited six months ended 30 June 2014 £'000		Audited year ended 31 December 2014 £'000
Income recognised on investments held at fair value through profit or loss
Dividends	62		146		176
Loan stock interest	505		360		892
	567		506		1,068
Income recognised on investments held at amortised cost
Bank deposit interest	15		40		51
	582		546		1,119

4.         Investment management fees

	Unaudited six months ended 30 June 2015 £'000		Unaudited six months ended 30 June 2014 £'000		Audited year ended 31 December 2014 £'000
Investment management fees charged to revenue	101		100		200
Investment management fees charged to capital	303		300		601
	404		400		801

Further details of the management agreement under which the investment management fee is paid are given in the Strategic report on page 11 of the Annual Report and Financial Statements for the year ended 31 December 2014.

During the period, services with a value of £404,000 (30 June 2014: £400,000; 31 December 2014: £801,000) and £25,000 (30 June 2014: £25,000; 31 December 2014: £50,000) were purchased by the Company from Albion Ventures LLP in respect of investment management and administration fees respectively.  At the period end, the amount due to Albion Ventures LLP in respect of these services disclosed as accruals was £221,000 (30 June 2014: £216,000: 31 December 2014: £426,000).

Albion Ventures LLP is, from time to time, eligible to receive transaction fees and Directors' fees from portfolio companies.  During the period, fees of £52,000 (30 June 2014: £153,000; 31 December 2014: £294,000) attributable to the investments of the Company were received pursuant to these arrangements.

Albion Ventures LLP holds 7,487 Ordinary shares as a result of fractional entitlements and dissenting shareholders arising from the merger with Kings Arms Yard VCT 2 PLC on 30 September 2011. In addition, Albion Ventures LLP holds a further 82,031 Ordinary shares in the Company.

5.         Dividends

	Unaudited six months ended 30 June 2015 £'000	Unaudited six months  ended 30 June 2014 £'000	Audited year ended 31 December 2014 £'000
First dividend of 0.5 pence per share paid on 30 April 2014	-	1,017	1,017
Second dividend of 0.5 pence per share paid on 31 October 2014	-	-	1,014
First dividend of 0.5 pence per share paid on 30 April 2015	1,109	-	-
Unclaimed dividends returned to Company	(30)	(6)	(6)
	1,079	1,011	2,025

The Directors have declared a second dividend of 0.5 pence per share for the year ended 31 December 2015, which will be paid on 30 October 2015 to shareholders on the register as at 2 October 2015.

6.         Basic and diluted return/(loss) per share

	Unaudited six months ended 30 June 2015		Unaudited six months ended 30 June 2014		Audited year ended 31 December 2014
	Revenue	Capital	Revenue	Capital	Revenue	Capital
Return/(loss) attributable to shares (£'000)	340	1,948	299	(260)	535	(859)
Weighted average shares in issue (excluding treasury shares)	212,279,721		197,858,496		199,680,249
Return/(loss) per share (pence)	0.16	0.92	0.15	(0.13)	0.27	(0.43)

The weighted average number of shares is calculated excluding the treasury shares of 29,132,000 (30 June 2014: 22,130,000; 31 December 2014: 24,875,000)

There are no convertible instruments, derivatives or contingent share agreements in issue so basic and diluted return/(loss) per share are the same.

7.         Called-up share capital

	Unaudited 30 June 2015 £'000		Unaudited 30 June 2014 £'000		Audited 31 December 2014 £'000
Allotted, issued and fully paid: Allotted, issued and fully paid Ordinary shares of 1 penny nominal value (£'000)	2,501		2,214		2,265
Number of shares of 1 penny nominal value	250,103,228		221,416,908		226,503,705

Voting rights

Number of shares of 1 penny nominal value with voting rights

220,971,228

199,286,908

201,628,705

The Company operates a share buy-back programme, as detailed in the Chairman's statement. During the period the Company purchased 4,257,000 Ordinary shares at a cost of £767,000 including stamp duty (30 June 2014: £788,000; 31 December 2014; £1,297,000) to be held in treasury.  The Company holds a total of 29,132,000 Ordinary shares in treasury, representing 11.6 per cent. of the issued Ordinary share capital as at 30 June 2015.  The shares purchased for treasury were funded from Other distributable reserve.

During the period the Company did not purchase any shares for cancellation (30 June 2014: 1,134,000 shares at a cost of £214,000; 31 December 2014: 1,134,000 shares at a cost of £214,000).

During the period, the Company issued the following new Ordinary shares of nominal value 1 penny each under the terms of the Dividend Reinvestment Scheme Circular dated 19 April 2011:

Date of allotment	Number of shares allotted	Aggregate nominal value of shares (£'000)	Issue price (pence per share)	Net consideration received (£'000)	Opening market price on allotment date (pence per share)
30 April 2015	411,322	4	18.81	75	18.00

Under the terms of the Albion VCTs Prospectus Top Up Offers 2014/2015, the following new Ordinary shares of nominal value 1 penny each were allotted during the period to 30 June 2015:

Date of allotment	Number of shares allotted	Aggregate nominal value of shares (£'000)	Issue price (pence per share)	Net consideration received (£'000)	Opening market price on allotment date (pence per share)
30 January 2015	3,630,710	36	19.90	708	18.00
30 January 2015	2,026,810	20	20.00	395	18.00
2 April 2015	14,511,698	145	20.00	2,815	17.88
30 June 2015	118,239	2	20.10	23	18.50
30 June 2015	41,253	-	20.20	8	18.50
30 June 2015	2,859,491	29	20.30	563	18.50
	23,188,201	232		4,512

The Albion VCTs Prospectus Top Up Offers 2014/2015 will close on 30 September 2015 (unless fully subscribed by an earlier date).

8.         Reconciliation of revenue return on ordinary activities before taxation to net cash flow from operating activities

	Unaudited six months ended 30 June 2015 £'000		Unaudited six months ended 30 June 2014 £'000		Audited year ended 31 December 2014 £'000
Revenue return on ordinary activities before tax	340		299		535
Exchange rate movement	9		2		2
Investment management fees allocated to capital	(303)		(300)		(601)
Movement in accrued loan stock interest	(119)		(3)		(66)
Decrease in debtors	6		111		127
(Decrease)/increase in creditors	(249)		13		243
Net cash flow from operating activities	(316)		122		240

9.         Analysis of change in cash during the period

	Unaudited six months ended 30 June 2015 £'000		Unaudited six months ended 30 June 2014 £'000		Audited year ended 31 December 2014 £'000
Opening cash balances	798		1,225		1,225
Net cash flow	2,850		238		(427)
Closing cash balances	3,648		1,463		798

10.       Commitments, contingencies and guarantees
            As at 30 June 2015, the Company was committed to making investments of £3,634,000 in respect of further funding to be provided to existing portfolio companies (30 June 2014: £6,502,000; 31 December 2014: £923,000).

11.       Post balance sheet events
            Since 30 June 2015, the Company has made investments in the following:

-           £160,000 in Haemostatix Limited;
-           £150,000 in Active Lives Care Limited;
-           £118,000 in MyMeds&Me Limited;
-           £50,000 in Ryefield Court Care Limited; 
-           £25,000 in Anthropics Technology Limited; and
-           Proceeds of £2,200,000 from the disposal of Lab M Holdings Limited

12.       Related party disclosures
Albion Ventures LLP, the Company's Manager and Company Secretary did not receive any monitoring or arrangement fees from UniServity Limited during the period (30 June 2014:nil; 31 December 2014: nil).

Kings Arms Yard VCT PLC received loan stock interest of £5,000 (30 June 2014:£5,000; 31 December 2014: £10,000) from UniServity Limited.

Details of the holding in UniServity Limited can be found in note 11 on page 48 of the Annual Report and Financial Statements for the year ended 31 December 2014.

There are no other related party transactions or balances requiring disclosure.

13.        Going concern
The Board's assessment of liquidity risk remains unchanged and is detailed on pages 52 and 53 of the Annual Report and Financial Statements for the year ended 31 December 2014. 

The Company has adequate cash and liquid resources, 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 the accounts in accordance with "Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009", published by the Financial Reporting Council.

14.        Risks and uncertainties
In addition to the current economic risks outlined in the Chairman's statement, the Board considers that the Company faces the following major risks and uncertainties:

1. Economic risk

Changes in economic conditions, including, for example, interest rates, rates of inflation, industry conditions, competition, political and diplomatic events and other factors could substantially and adversely affect the Company's prospects in a number of ways.

To reduce this risk, in addition to investing equity in portfolio companies, the Company often invests in secured loan stock and has a policy of not normally permitting any external bank borrowings within portfolio companies. Additionally, the Manager has been rebalancing the sector exposure of the portfolio with a view to reducing reliance on consumer led sectors.

2. 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. The success of investments in certain sectors is also subject to regulatory risk, such as those affecting companies involved in UK renewable energy.

To reduce this risk, the Board places reliance upon the skills and expertise of the Manager in 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, and takes account of, 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 portfolio company boards) and the Board receives detailed reports on each investment as part of the Manager's report at quarterly board meetings. It is the policy of the Company for portfolio companies to not normally have external borrowings. The Board and the Manager closely monitor regulatory changes in the sectors in which the Company is invested.

3. Valuation risk

The Company's investment valuation methodology is reliant on the accuracy and completeness of information that is issued by portfolio companies. In particular, the Directors may not be aware of or take into account certain events or circumstances which occur after the information issued by such companies is reported.

As described in note 1 of the Financial Statements, the unquoted equity investments, loan stock, convertible loan stock and debt issued at a discount held by the Company are designated at fair value through profit or loss and valued in accordance with the International Private Equity and Venture Capital Valuation Guidelines. These guidelines set out recommendations, intended to represent current best practice on the valuation of venture capital investments. These investments are valued on the basis of forward looking estimates and judgments about the business itself, its market and the environment in which it operates, together with the state of the mergers and acquisitions market, stock market conditions and other factors. In making these judgments the valuation takes into account all known material facts up to the date of approval of the Financial Statements by the Board.  The values of a number of investments are also underpinned by independent third party professional valuations.

4. 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, which 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 Robertson Hare LLP as its taxation adviser. Robertson Hare 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. Each investment in a new portfolio company is also pre-cleared with H.M. Revenue & Customs.

5. 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.

The 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 Auditor, lawyers and other professional bodies.

6. 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 Auditor, PKF Littlejohn LLP, when required, 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. Thomas Chambers, Chairman of the Audit Committee, met with the internal audit Partner of PKF Littlejohn LLP in January 2015 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 page 29 of the Annual Report and Financial Statements for the year ended 31 December 2014.

Measures are in place to mitigate information risk in order to ensure the integrity, availability and confidentiality of information used within the business.

7. 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 11 of the Annual Report and Financial Statements for the year ended 31 December 2014). In addition, the Manager has demonstrated to the Board that there is no undue reliance placed upon any one individual within Albion Ventures LLP. The Board monitors the performance of other third party service providers annually.

8. 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 18 of the Annual Report and Financial Statements for the year ended 31 December 2014.

Most of the Company's income and expenditure is denominated in sterling.  As at 30 June 2015, the Company held an investment denominated in US dollars of £2,521,000.  It is therefore likely that the Company would be affected by currency fluctuations; however, this is not expected to be material. The Company does not use derivative financial instruments for speculative purposes.

15.        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 435 of the Companies Act 2006 for the periods ended 30 June 2015 and 30 June 2014, and is unaudited.  The information for the year ended 31 December 2014 does not constitute statutory accounts within the terms of section 435 of the Companies Act 2006 and is derived from the statutory accounts for that financial year, which have been delivered to the Registrar of Companies.  The Auditor reported on those accounts; their report was unqualified and did not contain a statement under s498 (2) or (3) of the Companies Act 2006.

16.        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 at http://www.albion-ventures.co.uk/ourfunds/KAY.htm.

Financial summary for the Company and for previous funds

	Unaudited six months ended 30 June 2015	Unaudited six months ended 30 June 2014	Audited year ended 31 December 2014
	(pence per share)	(pence per share)	(pence per share)
Net asset value of the Company	19.90	19.98	19.31
Dividends paid to shareholders of the Company
Dividends paid during the period	0.50	0.50	1.00
Cumulative dividend paid	62.83	61.83	62.33
Total net asset value return(1) (per 100p invested)
To shareholders of the Company (formerly SPARK VCT plc; Quester VCT plc)	82.73	81.81	81.64
Total net asset value return including tax benefits(2)	102.73	101.81	101.64
Total net asset value return to former shareholders of:
Quester VCT 2 plc, per 100p invested in shares of that company
Total net asset value return	68.85	67.91	67.74
Total net asset value return including tax benefits(2)	88.85	87.91	87.74
Quester VCT 3 plc, per 100p invested in shares of that company
Total net asset value return	42.40	41.50	41.33
Total net asset value return including tax benefits(2)	62.40	61.50	61.33
Quester VCT 4 plc (renamed SPARK VCT 2 PLC and then Kings Arms Yard VCT 2 PLC), per 100p invested in shares of that company
Total net asset value return	38.87	37.69	37.47
Total net asset value return including tax benefits(2)	58.87	57.69	57.47
Quester VCT 5 plc (renamed SPARK VCT 3 PLC), per 100p invested in shares of that company
Total net asset value return	50.21	48.49	48.17
Total net asset value return including tax benefits(2)	70.21	68.49	68.17

(1)        Net asset value plus cumulative dividend per share to ordinary shareholders in the Company since the launch of the Company (then called Quester VCT plc) in April 1996.

(2)        Return after 20 per cent. income tax relief but excluding capital gains deferral.

The total returns stated are applicable only to shareholders of shares at the time of each companies launch.  They do not represent the return to subsequent subscribers or purchasers of shares.

Source:  Albion Ventures LLP

Merger history for the Company and for previous funds

February 1996	Quester VCT PLC (QVCT) launched
June 2005	QVCT2 and QVCT3 merged into QVCT
June 2008	All Quester names changed to SPARK:
	QVCT became Spark VCT plc (SVCT)
	QVCT4 became Spark VCT 2 plc (SVCT2)
	QVCT5 became Spark VCT 3 plc (SVCT3)
November 2008	SVCT3 merged into SVCT2
January 2011	Albion Ventures became Manager
February 2011	All SPARK names changed to Kings Arms Yard:
	SVCT became Kings Arms Yard VCT PLC (KAY)
	SVCT2 became Kings Arms Yard VCT 2 PLC (KAY2)
September 2011	KAY2 merged into KAY

Dividend history for the Company and for previous funds

Kings Arms Yard VCT PLC ("KAY")
Dividends paid to shareholders of KAY launched in 1996 (formerly SPARK VCT plc ("SVCT") and originally Quester VCT PLC ("QVCT")).

	(pence per share)
31 January 1997	0.937
31 January 1998	2.547
31 January 1999	2.875
31 January 2000	7.110
31 January 2001	26.650
31 January 2002	1.350
28 February 2006	1.250
28 February 2007	3.910
31 December 2007	4.220
31 December 2008	2.810
31 December 2010	5.000
31 December 2011	0.670
31 December 2012	1.000
31 December 2013	1.000
31 December 2014	1.000
30 June 2015	0.500
Total dividends paid to 30 June 2015	62.829
Net asset value as at 30 June 2015	19.900
Total net asset value return to 30 June 2015	82.729

Quester VCT 2 PLC ("QVCT2")
QVCT2 was launched in 1998 and was merged with KAY (formerly SPARK VCT plc ("SVCT") and originally Quester VCT PLC ("QVCT")) in June 2005 with a share exchange ratio of 1.0249 QVCT shares for each QVCT2 share.

	(pence per share)
28 February 1999	1.000
28 February 2000	3.065
28 February 2001	20.500
28 February 2002	2.000
28 February 2006	1.281
28 February 2007	4.007
31 December 2007	4.325
31 December 2008	2.880
31 December 2010	5.125
31 December 2011	0.687
31 December 2012	1.025
31 December 2013	1.025
31 December 2014	1.025
30 June 2015	0.512
Total dividends paid to 30 June 2015	48.457
Net asset value as at 30 June 2015	20.396
Total net asset value return to 30 June 2015	68.853

Quester VCT 3 PLC ("QVCT3")
QVCT3 was launched in 2000 and was merged with KAY (formerly SPARK VCT plc ("SVCT") and originally Quester VCT PLC ("QVCT")) in June 2005 with a share exchange ratio of 0.9816 QVCT shares for each QVCT3 share.

	(pence per share)
28 February 2001	0.750
28 February 2002	1.000
28 February 2003	0.150
28 February 2006	1.227
28 February 2007	3.838
31 December 2007	4.142
31 December 2008	2.758
31 December 2010	4.908
31 December 2011	0.658
31 December 2012	0.982
31 December 2013	0.982
31 December 2014	0.982
30 June 2015	0.491
Total dividends paid to 30 June 2015	22.868
Net asset value as at 30 June 2015	19.534
Total net asset value return to 30 June 2015	42.402

Quester VCT 4 PLC ("QVCT4")
QVCT4 was launched in 2000 and was renamed SPARK VCT 2 plc ("SVCT2") and then Kings Arms Yard VCT 2 PLC ("KAY2").  KAY2 merged with Kings Arms Yard VCT PLC ("KAY") in September 2011 with a share exchange ratio of 1.2806 KAY shares for each KAY2 share.

	(pence per share)
31 October 2002	1.750
31 October 2003	1.150
31 October 2005	1.000
31 October 2006	1.000
31 December 2007	1.000
31 December 2008	1.000
31 December 2010	1.000
31 December 2011	1.000
31 December 2012	1.281
31 December 2013	1.281
31 December 2014	1.281
30 June 2015	0.640
Total dividends paid to 30 June 2015	13.383
Net asset value as at 30 June 2015	25.484
Total net asset value return to 30 June 2015	38.867

Quester VCT 5 PLC ("QVCT5")
QVCT5 was launched in 2002 and was renamed SPARK VCT 3 plc ("SVCT3") and merged with SPARK VCT 2 plc ("SVCT2") (originally QVCT4) in November 2008 with a share exchange ratio of 1.4613 SVCT2 shares for each SVCT5 share.  The merged company was then renamed Kings Arms Yard VCT 2 PLC ("KAY2").  KAY2 merged with Kings Arms Yard VCT PLC ("KAY") in September 2011 with a share exchange ratio of 1.2806 KAY shares for each KAY2 share.

	(pence per share)
31 December 2003	0.500
31 December 2004	1.000
31 December 2006	1.000
31 December 2007	1.000
31 December 2010	1.461
31 December 2011	1.461
31 December 2012	1.871
31 December 2013	1.871
31 December 2014	1.871
30 June 2015	0.936
Total dividends paid to 30 June 2015	12.971
Net asset value as at 30 June 2015	37.240
Total net asset value return to 30 June 2015	50.211

Current Portfolio Sector Analysis

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Kings Arms Yard VCT PLC via Globenewswire

HUG#1947924