Interim Results

Unicorn AIM VCT PLC 13 June 2002 Unicorn AIM VCT plc (the 'Company') Interim Statement from incorporation of the Company to 31 March 2002 Chairman's Statement Introduction This is my first report to shareholders since Unicorn AIM VCT's Public Offer for Subscription. The Company was launched in October 2001 and in the period to 31 March 2002 raised just over £24 million. I am pleased to report that since the interim period end the Company has raised a further £11 million, making £35 million in total, representing the maximum permitted under the terms of the Offer. This was an excellent outcome and I would like to take this opportunity to thank shareholders for their support. This report covers the period from 7 August 2001 when the Company was first incorporated to 31 March 2002. Investment Objective The objective of the Fund is to provide shareholders with an attractive return from a diversified portfolio of investments predominantly in the shares of AIM companies. This will be achieved by maximising the stream of dividend distributions to shareholders from the income and capital gains generated by the portfolio. To achieve VCT qualifying status, 70% of the net proceeds raised must be invested in qualifying investments within three years and on this basis £23 million has to be invested by 30 September 2004. The Directors and the Manager will seek to safeguard the capital available for investment in qualifying investments during the initial three years whilst looking to provide good short-term returns. To achieve this, 50% of the Fund will be invested in cash or near cash instruments until these proceeds are required to make qualifying investments. The balance will be invested in The Unicorn Free Spirit Fund and a portfolio of listed and AIM quoted UK smaller companies stocks. Qualifying Investments In the period to 31 March 2002 the Company made three qualifying investments at a total cost of £1.25 million. Two of the qualifying investments were in AIM companies and the third was an unlisted investment. The Board is confident of meeting the Inland Revenue's qualifying investment requirements for VCTs by the target date of 30 September 2004. Results Net revenue attributable to shareholders for the period was £26,864, which was derived from dividends on listed shares and interest from cash on deposit. Following a net unrealised gain on investments of £744,774, less the capitalized investment management fee of £75,332, the total return on ordinary activities after taxation was £696,306. An interim dividend has not been declared as this period was not reflective of normal ongoing activities due to the inflow of new money associated with the fundraising. Net Asset Value After launch costs of 5.5%, the Company had an initial net asset value (NAV) of 94.5 pence per share. The unaudited NAV at 31 March 2002 had increased to 97.4 pence per share. This was due to the steady relative performance of both the qualifying investments and the listed smaller company holdings. Cancellation of the Share Premium Account Shareholders approved the cancellation of the share premium account of the Company at the Extraordinary General Meeting held on 26 September 2001 and this cancellation was sanctioned by the Court on 12 June 2002. One result of this will be to provide a mechanism to enable the Company to fund purchases of its own shares should they trade at a discount to NAV thus increasing the NAV per share of the remaining outstanding Ordinary Shares. Outlook Despite an uncertain background the AIM market has continued to attract a strong deal flow with thirty five new issues in the six months to 31 March 2002. Companies seeking to raise capital are becoming more realistic about their valuations and the Manager is actively taking advantage of this opportunity to invest at more sensible valuations. In addition the Manager expects to benefit from a trend for existing AIM Companies, which have failed to perform post float but nevertheless retain sound business models, to seek secondary funding at a significant discount to the original IPO valuation. The Board is pleased with the progress achieved to date and is confident that, given the Manager's expertise in the smaller company area of the market, the Company will continue to attract a healthy flow of investment opportunities. Peter Dicks Chairman 13 June 2002 Investment Portfolio Summary as at 31 March 2002 Book cost Valuation % of net £000 £000 assets Qualifying investments AIM quoted investments: Spring Grove Property Maintenance plc 250 269 1.14 Staffing Ventures plc 250 375 1.58 500 644 2.72 Unquoted investments: Aludel Limited 750 750 3.17 750 750 3.17 Total qualifying investments 1,250 1,394 5.89 Non-qualifying investments AIM quoted investments 612 669 2.83 Listed UK equities 9,010 9,507 40.17 Unicorn Free Spirit Fund (OEIC) 700 746 3.15 Cash on deposit 9,146 9,146 38.64 Total non-qualifying investments 19,468 20,068 84.79 Total investments 20,718 21,462 90.68 Other assets 3,284 13.88 Net current liabilities (1,078) (4.56) Net assets 23,668 100.00 Qualifying investments by activity AIM quoted investments: Spring Grove Property Maintenance plc Repair and maintenance of social housing on behalf of Registered Social Landlords and local authorities. Staffing Ventures plc The management of a number of recruitment businesses and their associated back office support systems. Unquoted investments: Aludel Limited National branded chain of ladies-only fitness clubs. Unaudited statement of total return (incorporating the revenue account of the company) Period to 31 March 2002 Notes Revenue Capital Total £ £ £ Unrealised gains and losses on 0 744,774 744,774 investments Income 181,049 0 181,049 Investment management fee 3 (25,111) (75,332) (100,443) Other expenses (129,074) 0 (129,074) Net return on ordinary activities 26,864 669,442 696,306 before taxation Tax on ordinary activities - - - Return on ordinary activities after 26,864 669,442 696,306 taxation Dividends - - - 26,864 669,442 696,306 Return per Ordinary share 4 0.23p 5.76p 5.99p Unaudited balance sheet as at 31 March 2002 Notes £ £ £ Fixed Assets Investments 1b 12,316,514 Current Assets Debtors and prepayments 3,283,799 Cash at bank 9,145,808 12,429,607 Creditors: amounts falling due within one year Other creditors 972,041 Accruals 105,674 (1,077,715) Net current assets 11,351,892 Net assets 23,668,406 Share capital and reserves Share capital 242,990 Share premium account 22,729,110 Capital reserve - realised (75,332) Capital reserve - unrealised 744,774 Revenue reserve 26,864 Total shareholders' funds 23,668,406 Net asset value per Ordinary 97.40p Share Unaudited statement of cash flows for the period to 31 March 2002 £ £ Operating activities Investment income received 115,558 Investment management fees paid (77,406) Other cash payments (47,738) Net cash (outflow) from operating activities (9,586) Investing activities Purchases of investments (10,750,172) Sales of investments - Net cash (outflow) from investing activities (10,750,172) Cash outflow before financing (10,759,758) Financing Share capital raised 19,905,566 Dividend - Net cash inflow from financing 19,905,566 Increase in cash 9,145,808 Notes to the Unaudited Financial Statements 1. Principal Accounting Policies The following accounting policies have been applied consistently throughout the period. Full details of principal accounting policies will be disclosed in the Annual Report. a) Basis of Accounting The financial statements have been prepared under the historical cost convention, modified to include the revaluation of fixed asset investments and in accordance with applicable Accounting Standards in the United Kingdom and with the Statement of Recommended Practice regarding the Financial Statements of Investment Trust Companies. b) Investments Listed investments and investments quoted on the AIM market are stated at mid-market prices as at 31 March 2002. Investments in unlisted companies are valued in accordance with the British Venture Capital Association ('BVCA' guidelines). 2. Basic revenue and capital items in the above statement derive from continuing operations. 3. In accordance with the Company's prospectus, the directors have charged 75% of the investment management fee to the capital reserve. 4. Basic revenue return per Ordinary Share is based on the net revenue on ordinary activities after taxation, and is based on 11,621,181 Ordinary shares, being the weighted average number of Ordinary Shares in issue during the period. 5. The financial information set out in this report has not been audited and does not comprise full financial statements. 6. Copies of this statement are being sent to all shareholders. Further copies are available free of charge from the Company's registered office, Gossard House, 7/8 Savile Row, London W1S 3PE. 7. There are no comparative figures for the equivalent period in 2001, as the Company was incorporated on 7 August 2001, and commenced raising capital on 2 October 2001. The unaudited Statement of Total Return and unaudited Statement of Cash Flows thus cover the period from 7 August 2001 to 31 March 2002. ENDS This information is provided by RNS The company news service from the London Stock Exchange

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