Interim Results

Unicorn AIM VCT PLC 07 May 2003 Unicorn AIM VCT Plc (the 'Company') Interim Statement for the six months ended 31 March 2003 Chairman's Statement Despite the general decline in the UK Stock Market the Company has made a positive return during the period under review reflecting the highly selective investment approach adopted by the Investment Manager. Qualifying Investments In the six months to 31 March 2003 the Company made four further qualifying investments at a cost of £2.4 million bringing the current total to approximately £6.3 million. Three of the qualifying investments were in existing AIM listed companies and the fourth was a new admission to AIM. A full list of all of the qualifying investments held at the period end is given below. Your Investment Manager continues to adopt a highly selective investment approach focusing upon established, profitable, cash generative businesses with sound financial controls and proven management teams. Over the next 12-18 months the Board is confident that the Company can capitalise upon the lack of new money raised by the VCT market enabling 70% of the net proceeds raised to be invested in qualifying securities before the Inland Revenue's deadline of 30 September 2004. Combined with reduced equity valuations this should enable the Investment Manager to create a portfolio of qualifying investments offering the prospect of significant capital and income growth. Results Net revenue attributable to shareholders for the period was £273,217, a significant improvement on the previous period, reflecting a full six months contribution since the 2001/02 fundraising. The total profit on ordinary activities for the period was £116,452. During the period the Company bought back 20,500 of its own shares for cancellation at an average price of 70 pence per share. The Board's policy is to pay out as high a level of dividends as is possible either generated from income received or capital profits realised on the sale of investments. The latter objective is likely to take some time to achieve. From the interest received from cash on deposit and dividends from the smaller companies portfolio, the Board is able to recommend an interim dividend of 0.5 pence per share which will be paid on 27 June 2003 to shareholders on the Register at close of business on 6 June 2003. Net Asset Value The net asset value (NAV) at 31 March 2003 was 83.2 pence per share after providing for an interim dividend of 0.5 pence per share. The marginal increase in the NAV, before providing for the interim dividend, since the September 2002 year-end is encouraging, particularly in the light of the correction of the FTSE All-Share and AIM indices, which declined by 5.2% and 9.9% respectively. Outlook During the period under review UK equities yielded more than gilts for the first time since 1959. Historically this has proved to be a clear buying signal and reflects an unwarranted degree of risk aversion in an environment in which emotions have largely replaced fundamentals. This has led to the discounting of any positive corporate progress and the compounding of any hint of a negative setback. Admittedly, in some sectors of the UK economy, dividends are still under pressure but over the long-term one would expect dividends to grow. Remember that nobody rings the bell at the bottom of the market. Corporate interest in Safeway, Somerfield & Pizza Express combined with record directors' purchases of their own companies' shares has proven that the Stock Market is only one indicator of value. Peter Dicks Chairman 6 May 2003 Investment Portfolio Summary as at 31 March 2003 Book cost Valuation % of net assets by value £'000 £'000 Qualifying investments AIM listed investments: Huveaux plc 1,000 1,560 5.36% Glisten plc 650 926 3.18% Lloyds British Testing plc 1,000 781 2.68% Centurion Electronics plc 500 625 2.15% Staffing Ventures plc 750 510 1.75% Intelliplus Group plc 400 401 1.38% Spring Grove Property Maintenance 250 306 1.05% plc --------- --------- ----------- 4,550 5,109 17.55% Unlisted investments: Nectar Taverns plc 1,000 1,000 3.44% Aludel Limited 750 375 1.28% ---------------------- --------- --------- ----------- 1,750 1,375 4.72% ---------------------- --------- --------- ----------- Total qualifying investments 6,300 6,484 22.27% ---------------------- --------- --------- ----------- Non-qualifying investments AIM listed investments 1,757 1,554 5.34% Listed UK equities 9,194 7,470 25.67% Unicorn Free Spirit Fund (OEIC) 3,201 3,046 10.47% Investment in liquidity funds 10,203 10,203 35.06% ---------------------- --------- --------- ----------- Total non-qualifying investments 24,355 22,273 76.54% ---------------------- --------- --------- ----------- ---------------------- --------- --------- ----------- Total investments 30,655 28,757 98.81% ---------------------- --------- --------- ----------- Other assets 637 2.19% Current liabilities (291) (1.00%) ---------------------- --------- --------- ----------- Net assets 29,103 100.00% ---------------------- --------- --------- ----------- Qualifying investments by activity AIM listed investments: Huveaux plc Media and related services group. Glisten plc Manufacturer of chocolate confectionery, sugar based sweets and edible decorations. Lloyds British Testing plc Engineering services including testing and certification, training and maintenance and repair. Centurion Electronics plc Designs and distributes in car audio-visual entertainment systems. Intelliplus Group plc Specialist provider of telecom solutions and web-based services. Staffing Ventures plc Management of a number of recruitment businesses and their associated back office support systems. Spring Grove Property Maintenance plc Repair and maintenance of social housing on behalf of Registered Social Landlords and local authorities. Unlisted investments: Nectar Taverns plc Chain of unbranded, managed, freehold, public houses in the North West of England. Aludel Limited National branded chain of ladies-only fitness clubs. Unaudited Statement of Total Return (incorporating the revenue account of the Company) For the 6 months to 31 March 2003 Six months to 31 March 2003 Notes Revenue Capital Total £ £ £ Unrealised gains and losses on investments - 172,107 172,107 Realised gains and losses on investments - (78,816) (78,816) Income 501,467 - 501,467 Investment management fee 3 (85,051) (255,155) (340,206) Other expenses (138,100) - (138,100) -------- -------- --- -------- Net return on ordinary activities before taxation 278,316 (161,864) 116,452 Tax on ordinary activities (5,099) 5,099 - -------- -------- ---- -------- Return on ordinary activities after taxation 273,217 (156,765) 116,452 Dividends 4 (174,696) - (174,696) -------- -------- ---- -------- 98,521 (156,765) 58,244 Return per ordinary share 5 0.78p (0.45)p 0.33p Period to 31 March 2002 Notes Revenue Capital Total £ £ £ Unrealised gains and losses on investments - 744,774 744,774 Realised gains and losses on investments - - - Income 181,049 - 181,049 Investment management fee 3 (25,111) (75,332) (100,443) Other expenses (129,074) - (129,074) -------- --------- ---- -------- Net return on ordinary activities before taxation 26,864 669,442 696,306 Tax on ordinary activities - - - -------- --------- ---- -------- Return on ordinary activities after taxation 26,864 669,442 696,306 Dividends - - - -------- --------- ---- -------- 26,864 669,442 696,306 Return per ordinary share 5 0.23p 5.76p 5.99p Period to 30 September 2002 Notes Revenue Capital Total £ £ £ Unrealised gains and losses on investments - (3,699,372) (3,699,372) Realised gains and losses on investments - 131,785 131,785 Income 627,729 - 627,729 Investment management fee 3 (120,162) (360,487) (480,649) Other expenses (317,095) - (317,095) -------- -------- --- -------- Net return on ordinary activities before taxation 190,472 (3,928,074) (3,737,602) Tax on ordinary activities - - - -------- -------- --- -------- Return on ordinary activities after taxation 190,472 (3,928,074) (3,737,602) Dividends 4 (174,999) - (174,999) -------- -------- --- -------- 15,473 (3,928,074) (3,912,601) Return per ordinary share 5 0.79p (16.21)p (15.42)p Unaudited Balance Sheet As at 31 March 2003 As at As at As at 31 March 2003 31 March 2002 30 September 2002 Notes £ £ £ Fixed assets Investments 1 18,554,237 12,316,514 16,336,801 Current assets Debtors and prepayments 166,843 3,283,799 61,163 Other assets 10,202,958 - - Cash at bank 469,848 9,145,808 13,128,991 10,839,649 12,429,607 13,190,154 Creditors: amounts falling due within one year Other creditors 180,627 972,041 202,133 Accruals 109,885 105,674 148,766 (290,512) (1,077,715) (350,899) Net current assets 10,549,137 11,351,892 12,839,255 Net assets 29,103,374 23,668,406 29,176,056 Share capital and reserves Share capital 349,792 242,990 349,997 Share premium - 22,729,110 - Capital redemption reserve 205 - - Special reserve 32,724,222 32,738,660 Capital reserve - realised (2,186,450) (75,332) (228,702) Capital reserve - unrealised (1,898,389) 744,774 (3,699,372) Revenue reserve 113,994 26,864 15,473 Total shareholders' funds 29,103,374 23,668,406 29,176,056 Net asset value per ordinary share 6 83.20p 97.40p 83.36p Unaudited Statement of Cash Flows for the 6 months to 31 March 2003 Six months to Period to Period to 31 March 2003 31 March 2002 30 September 2002 (unaudited) (unaudited) (audited) £ £ £ Operating activities Investment income received 395,485 115,558 574,006 Investment management fees paid (340,206) (77,406) (480,649) Other cash payments (197,804) (47,738) (148,635) Net cash outflow from operating activities (142,525) (9,586) (55,278) Investing activities Purchases of investments (5,276,682) (10,750,172) (20,436,956) Sales of investments 3,152,537 - 532,568 Net cash outflow from investing activities (2,124,145) (10,750,172) (19,904,388) Cash outflow before financing and (2,266,670) (10,759,758) (19,959,666) liquid resource management Financing Share capital raised - 19,905,566 33,088,657 Share capital re-purchased (14,643) - - Dividends paid (174,999) - - (189,642) 19,905,566 33,088,657 Management of liquid resources Increase in monies held pending investment (10,202,958) - (13,034,936) (Decrease)/increase in cash (12,659,270) 9,145,808 94,055 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 2003. Investments in unlisted companies are valued in accordance with the British Venture Capital Association ('BVCA') guidelines. 2. Basic revenue and capital items in the Statement of Total Return derive from continuing operations. 3. In line with the expected long-term split of returns from the investment portfolio of the Company, the Directors have charged 75% of the investment management fee to the capital reserve. 4. An interim dividend of 0.5 pence per Ordinary Share will be paid on 27 June 2003 to shareholders on the register on 6 June 2003. 5. Basic revenue return per Ordinary share is based on the net revenue on ordinary activities after taxation, and is based on 34,995,990 Ordinary shares, being the weighted average number of Ordinary shares in issue during the period. 6. Net asset value per ordinary share is based on net assets at 31 March 2003, and on 34,979,234 Ordinary shares, being the number of ordinary shares in issue on that date. 7. The financial information for the six months ended 31 March 2003 and the period ended 31 March 2002 has not been audited. The accounting policies used by Unicorn AIM VCT Plc in preparing the interim report are consistent with those used in preparing the statutory accounts for the period ended 30 September 2002. The information for the six months ended 31 March 2003 does not comprise full financial statements within the meaning of Section 240 of the Companies Act 1985. The financial statements for the period ended 30 September 2002 have been filed with the Registrar of Companies. The auditors have reported on these financial statements and that report was unqualified and did not contain a statement under Section 237(2) of the Companies Act 1985. 8. 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 This information is provided by RNS The company news service from the London Stock Exchange

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