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Victory VCT PLC (VICT)

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Friday 25 September, 2009

Victory VCT PLC

Half Yearly Report

RNS Number : 6155Z
Victory VCT PLC
25 September 2009
 



ViCTory VCT PLC

HALF-YEARLY REPORT

for the six months ended 31 July 2009




Board Review

Half-yearly Report for the six months ended 31 July 2009

Introduction

The first half of our financial year started in the same vein as the previous year ended, and markets, including the Alternative Investment Market (AIM), remained weak until late March. Since then sentiment has improved and markets have started to recover, indeed, at the end of July they were ahead of where they were at our year end. In the case of the VCT, performance has been tempered by the high cash and fixed interest balances as well as the unfortunate requirement to writedown the value of two of our unquoted investments as detailed below.

Your Directors remain confident that the portfolio is well positioned to benefit as sentiment further improves.

Directorate Change

As announced to the London Stock Exchange on 15 September 2009, Dominic Wheatley resigned as a non-executive Director of the Company on 15 September 2009. Dominic is moving to the United States for business reasons and will be unable to devote the necessary time to his duties as a non-executive Director of ViCTory.

Performance

The Company's Net Asset Value per share (NAV) at 31 July 2009 was 45.09 pence, an increase of 1.4% during the six month period. Over the same period, the AIM Index rose by 34.9% and the All Share Index by 16.1%. There were three principal reasons for the underperformance relative to the AIM Index during the period:


1)

The high cash and fixed interest balances within the Trust.

2)

The strong performance of non VCT qualifying sectors, such as natural resources.


Non-qualifying sectors of the market contributed approximately 25% of the overall 35% increase in the AIM Index during the period.

3)

The write down in value of certain of our unquoted investments, notably U4EA which is discussed more fully later in this review.

Over the last year the VCT's NAV has fallen in value by 27.9% whilst the AIM Index has declined by 33.1%.



Portfolio


Class

Period

Return

AIM Index

Singer & Friedlander AIM 3 VCT

launch 2001 to 31/07/2009

(42.3)%*

-56.70%

Singer & Friedlander AIM 3 VCT 'C' share 

launch April 2005 to 31/07/2009

(42.4)%**

-47.50%

Singer & Friedlander AIM 2 VCT

launch April 2000 to 31/07/2009

(52.6)%***

-70.90%

Singer & Friedlander AIM VCT 

launch late 1998/early 1999




  to 31/07/2009

(39.1)%****

-28.10%


*

Adjusted for dividends of 9.25p.

**

Adjusted for conversion ratio from December 2005 and subsequent dividends of 6.5p.

***

Adjusted for dividends of 5.25p, the relevant conversion ratio and subsequent dividends of 6.5p.

****

Adjusted for dividends of 32.4p, the relevant conversion ratio and subsequent dividends of 6.5p.


The above returns do not take into account any tax relief that shareholders may have received.

Results and Dividends

The profit for the period was £220,348 or 0.51 pence per share (31 July 2008: loss £6,365,473 or 14.27 pence per share). Revenue returns were also positive at £834 (31 July 2008: £266,734). Shareholders funds fell to £19,322,647 (31 July 2008: £27,228,690) as a result of the underlying fall in value of the investment portfolio since last July, the payment of dividends and the impact of our share buy back programme. Cash flow was negative with a net outflow of £1,486,073 due primarily to expenditure on new investments as well as the repurchase of our own shares requiring £96,329. There were few disposals from the investment portfolio due to an illiquid market and low valuations. Our cash at the period end amounted to £513,968 although we also have some £5,950,564 invested in highly liquid UK Government bonds. 

The Board has decided not to pay an interim dividend. A dividend payment for the full year will be considered at the relevant time but it remains your Board's policy to pay dividends whenever possible and prudent to do so.

  

Investment Strategy

The objective of the Company is to provide shareholders with an attractive and competitive investment return from a portfolio of companies whose shares are primarily traded on the Alternative Investment Market (AIM). Returns will be enhanced as a consequence of dividends and capital gains being free of tax for private investors.

Portfolio commentary and developments

The portfolio continues to comply with HM Revenue & Custom's criteria for VCT qualification and at the period end consisted of 56 companies; of these companies 49 were quoted on the AIM, one was traded on the PLUS Markets platform, two were fully listed and the remaining four were unquoted. Unquoted investments represented 5.6% of net assets whilst fixed interest and cash accounted for 33.5%.

Unfortunately U4EA, one of our unquoted investments, was unexpectedly forced to appoint an Administrator during July due to the withdrawal of ongoing funding support by their previously very supportive major shareholder. Indeed this shareholder had, over a period of years, invested in excess of £40m in the Company. We had not committed further funds to U4EA over the last two years having decided to limit our exposure. We have therefore regretfully written down the carrying value of this investment to zero. We have also reduced the carrying value of another of our unquoted investments, Lilestone Holdings, by 20% following a reassessment of their short term prospects due to the harsh retail background.

Activity in the portfolio has been limited until quite recently due to illiquidity and the lack of opportunities to invest. We have seen an inflow of cash from a return of capital made by Clerkenwell Ventures as well as a large gilt redemption. We have reinvested the proceeds from the gilt redemption as well as additional cash held on deposit into further gilt holdings in order to maximise the income from our non-qualifying portfolio without exposing ourselves to undue risk. 

Opportunities to add to our qualifying portfolio have increased and we have invested some £1.2m in recent months at what appear to be compelling valuations. So far the return on these investments averages 20% in a short period.

Share Repurchases

During the period, we repurchased 321,050 shares representing 0.74% of our issued share capital. These shares were bought at between 20-50% below the NAV prevailing at the time of purchase, thereby enhancing the NAV for remaining shareholders. The Company will continue to repurchase its own shares from time to time as appropriate and within the powers granted at the AGM. These transactions are handled by our stockbroker, Matrix Securities.

Outlook

Following a torrid period the market appears to have regained some poise and share prices have begun to recover. The recovery has not yet occurred across the board and many share prices have yet to make progress. 

Now that confidence is returning we expect to see an increase in the number of corporate transactions, including takeovers and fundraisings. These will provide opportunities to realise value as well as to invest our significant cash/fixed interest balances. Your Board remains confident that the Trust is well placed to benefit as sentiment improves.

Christopher Moorsom (Chairman)
James Hambro

Mike Killingley

David Page

Dominic Wheatley

ViCTory VCT PLC

24 September 2009

  

Directors' Responsibility Statement

We confirm that to the best of our knowledge:

(a) the condensed set of financial statements, which has been prepared in accordance with applicable accounting standards in the United Kingdom, gives a true and fair view of the assets, liabilities, financial position and profit of the Company as required by the Disclosure and Transparency Rules ('DTR') 4.2.4R; and

(b) the Report includes a fair review of the information required by DTR 4.2.7R and the Report includes a fair review of the information required by DTR 4.2.8R.

Christopher Moorsom
Chairman

for and on behalf of the Board, the members of which are set out previously in the Board Review.


Summary Financial Information

Unaudited Income Statement


Note

Revenue

£


Unaudited

6 months ended

31-Jul-09

Capital

£

Total

£


Revenue

£


Unaudited

6 months ended

31-Jul-08

Capital

£

Total

£


Revenue

£


Audited

Year ended

31-Jan-09

Capital

£

Total

£






Net gains/(losses) on investments at

fair value












-

326,513

326,513

-

(7,010,604)

(7,010,604)

-

(14,685,951)

(14,685,951)

Income


 188,517 

-

 188,517 

 331,553 

-

 331,553 

 589,510 

 589,510 

Administrative expenses











Investment management fees

9

(35,666)

(106,999)

(142,665)

 119,329 

 357,987 

 477,316 

 80,919 

 242,758 

 323,677 

Decrease in share option provision

3

-

-

-

 6,803 

 20,410 

 27,213 

 8,469 

 25,406 

 33,875 

Other expenses


(152,017)

-

(152,017)

(190,951)

-

(190,951)

(328,245)

(328,245)

Total administrative (expenses)/income


(187,683)

(106,999)

(294,682)

(64,819)

 378,397 

 313,578 

(238,857)

 268,164 

 29,307 

Return/(deficit) on ordinary











activities before taxation


 834 

 219,514 

 220,348 

 266,734 

(6,632,207)

(6,365,473)

 350,653 

(14,417,787)

(14,067,134)

Taxation on ordinary activities

4

-

-

-

-

-

-

-

-

-

Return/(deficit) on ordinary

activities after taxation












 834 

 219,514 

 220,348 

 266,734 

(6,632,207)

(6,365,473)

 350,653 

(14,417,787)

(14,067,134)

Return/(deficit) per ordinary share

5

-

0.51p

0.51p

0.60p

(14.87)p

(14.27)p

0.79p 

(32.71)p 

(31.92)p


The total column of this statement is the profit and loss account of the Company.

All revenue and capital items in the above statement derive from continuing operations. No operations were discontinued during the period.

There are no gains or losses other than shown in the income statement.

These accounts are unaudited and are not the Company's statutory accounts. The accounts have been prepared using accounting standards and policies adopted at the previous year end.

  Unaudited Reconciliation of Movements in Shareholders' Funds



Called-up

share

capital

£

Share

premium

account

£



Capital

redemption

reserve

£

Share

options

reserve

£






Merger

reserve

£

Special

reserve

£

Capital

reserve

£

Revenue

reserve

£




Total

£


Note

6 months ended 31 July 2009











31-Jan-09


 2,158,947 

 2,954,794 

 16,492,539 

 18,112,911 

 577,481 

-

( 21,363,104)

 264,545 

 19,198,113 

Re-purchase and cancellation of











ordinary shares


( 16,052)

-

( 95,814)

 16,052 

-

-

-

( 95,814)

Net return after taxation for











the period


-

-

-

-

-

-

 219,514 

 834 

 220,348 

31-Jul-09


 2,142,895 

 2,954,794 

 16,492,539 

 18,017,097 

 593,533 

-

( 21,143,590)

 265,379 

 19,322,647 

Year ended 31 January 2009











31-Jan-08


 2,248,449 

 2,954,794 

 16,492,539 

 19,112,927 

 487,979 

 33,875 

( 5,931,126)

 16,867 

 35,416,304 

Re-purchase and cancellation of











ordinary shares 


( 89,502)

(1,000,016)

 89,502 

(1,000,016)

Decrease in share option provision 

3

(33,875)

(33,875)

Net (deficit)/return after taxation











for the year 


(14,417,787)

 350,653 

(14,067,134)

Dividends paid 

6

(1,014,191)

(102,975)

(1,117,166)

31-Jan-09


 2,158,947 

 2,954,794 

 16,492,539 

 18,112,911 

 577,481 

( 21,363,104)

 264,545 

 19,198,113 

6 months ended 31 July 2008











31-Jan-08


 2,248,449 

 2,954,794 

 16,492,539 

 19,112,927 

 487,979 

 33,875 

(5,931,126)

 16,867 

 35,416,304 

Re-purchase and cancellation of











ordinary shares


(70,583)

-

-

(895,549)

 70,583 

-

-

-

(895,549)

Decrease in share option provision

3

-

-

-

-

-

( 27,213)

-

-

(27,213)

Net (deficit)/return after taxation











for the period


-

-

-

-

-

-

(6,632,207)

 266,734 

(6,365,473)

Dividends paid

6

-

-

-

-

-

-

( 882,516)

(16,863)

(899,379)

31-Jul-08


2,177,866 

 2,954,794 

 16,492,539 

 18,217,378 

 558,562 

 6,662 

(13,445,849)

 266,738 

27,228,690 


These accounts are unaudited and are not the Company's statutory accounts.


Unaudited Balanced Sheet




Unaudited

31-Jul

2009

£

Unaudited

31-Jul

2008

£

Audited

31-Jan

2009

£






Note

Fixed assets





Investments at fair value





Qualifying investments


 12,711,413 

 20,046,593 

 11,321,027 

Fixed interest securities and





other non-qualifying investments 


 6,127,419 

 6,134,495 

 5,953,242 



 18,838,832 

 26,181,088 

 17,274,269 

Current assets





Debtors


 33,384 

 833,845 

 8,272 

Accrued interest on fixed interest





securities


 69,976 

 71,544 

 72,497 

Cash at bank


 513,968 

 493,994 

 2,000,041 



 617,328 

 1,399,383 

 2,080,810 

Creditors: amounts falling due





within one year





Other creditors and accruals


(133,513)

(351,781)

(156,966)

Net current assets


 483,815 

 1,047,602 

 1,923,844 

Net assets


 19,322,647 

 27,228,690 

 19,198,113 

Capital and reserves





Called-up share capital


 2,142,895 

 2,177,866 

 2,158,947 

Share premium account


 2,954,794 

 2,954,794 

 2,954,794 

Merger reserve


 16,492,539 

 16,492,539 

 16,492,539 

Special reserve


 18,017,097 

 18,217,378 

 18,112,911 

Capital redemption reserve


 593,533 

 558,562 

 577,481 

Share options reserve

3

-

 6,662 

-

Capital reserve - investment holding loss


(24,388,786)

(17,442,098)

(24,594,920)

Capital reserve - other


 3,245,196 

 3,996,249 

 3,231,816 

Revenue reserve


 265,379 

 266,738 

 264,545 

Equity shareholders' funds


 19,322,647 

 27,228,690 

 19,198,113 

Net asset value per ordinary share

7

45.09p

62.51p

44.46p


During the period, the Company has purchased 321,050 ordinary shares for cancellation in accordance with the Company's share buy back policy.

These accounts are unaudited and are not the Company's statutory accounts.


Unaudited Summarised Cash Flow Statement



Unaudited

6 months

ended

31-Jul

2009

£

Unaudited

6 months

ended

31-Jul

2008

£

Audited

Year

ended

31-Jan

2009

£










Note

Net cash (outflow)/inflow from





operating activities

8

(162,784)

( 321,115)

 374,064 

Net cash (outflow)/inflow from





capital expenditure and





financial investment


(1,226,960)

 632,770 

 1,798,566 

Equity dividends paid


-

(899,379)

(1,117,166)

Net cash (outflow)/inflow





before financing


(1,389,744)

(587,724)

 1,055,464 

Net cash outflow from financing


(96,329)

(935,385)

(1,072,526)

Net funds at the beginning of





the period


 2,000,041 

 2,017,103 

 2,017,103 

Net funds at end of the period


 513,968 

 493,994 

 2,000,041 


These accounts are unaudited and are not the Company's statutory accounts.

Notes to the Unaudited Financial Statements


1. Basis of Preparation

The Half-yearly Report sets out the financial statements of the Company for the six months ended 31 July 2009, together with comparative financial information for the Company for the six months ended 31 July 2008 and for the year ended 31 January 2009 and has been prepared under UK Generally Accepted Accounting Practice.

The financial statements for the year ended 31 January 2009 have been audited whilst the results for the six months ended 31 July 2008 and 31 July 2009 are unaudited. Therefore the Half-yearly Report does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The financial information for the year ended 31 January 2009 is an abridged statement of the financial statements for that year which were prepared under UK Generally Accepted Accounting Practice and were delivered to the Registrar of Companies. The auditors' opinion on these accounts was unqualified and did not contain a statement made under section 498 of the Companies Act 2006.

2. Principal Accounting Policies

The financial statements have been prepared using the accounting policies adopted in the Company's audited financial statements for the year ended 31 January 2009.

a) Basis of Accounting

The financial statements have been prepared on a going concern basis and under the historical cost convention, modified to include the revaluation of fixed asset investments.

b) Investments

All investments held by the Company are classified 'at fair value through profit or loss'. Investments are initially recognised at cost, being the fair value of consideration given. Interest accrued on fixed interest rate securities at the date of purchase or sale is accounted for separately as accrued income, so that the value or purchase price or sale proceeds is shown net of such items.

After initial recognition, investments are measured at fair value, with unrealised gains and losses on investments and impairment of investments recognised in the income statement and allocated to capital. Realised gains and losses on investments sold are calculated as the difference between sales proceeds and cost.

For investments actively traded in organised financial markets, fair value is generally determined by reference to Stock Exchange quoted market bid prices at the close of business on the balance sheet date, without adjustment for transaction costs necessary to realise the asset.

Where trading in the securities of an investee company is suspended, the investment is valued at the Board's estimate of its net realisable value.

Unquoted investments are stated at the fair value with reference to the International Private Equity and Venture Capital Valuation ('IPEVCV') guidelines where appropriate.

Capital gains and losses on investments, whether realised or unrealised, are dealt with in the capital reserve.

3. Manager's option

In accordance with the arrangements agreed on the merger of the Company with AIM and AIM 2, the Managers have been granted an option which provides that if by the date of payment of the final dividend in respect of the ordinary shares for the Company's accounting year ending 31 January 2013 cumulative dividends declared and paid on each ordinary share (by reference to a record date after the merger) exceed a return of 8 per cent (compounded annually) of the net asset value per ordinary share the Manager will be entitled to subscribe at par for such number of additional ordinary shares as shall in aggregate be equal to 15 per cent of ordinary shares in the Company as enlarged by such subscriptions.

This right is a share based payment under FRS20. This right or option has been valued on the date that it was granted to the Managers and this cost is being charged to the income statement as part of the management fee evenly over the period over which it vests. There has been no movement in the provision during the period ended 31 July 2009, so no charge has been shown in the income statement for this period. This is shown as a separate reserve in the balance sheet.

4. Taxation on ordinary activities

The tax charge for the half-year is £nil (31 July 2008: £nil, 31 January 2009: £nil). This is based on an estimated effective tax rate of 0% for the year ending 31 January 2010. The estimated effective tax rate is 0% as investment gains are exempt from tax owing to the Company's status as a Venture Capital Trust and there is expected to be an excess of management expenses over taxable income.

5. Return/(deficit) per ordinary share

Basic revenue return per ordinary share is based on the net return on ordinary activities after taxation of £834 (31 July 2008: £266,734, 31 January 2009: £350,653) and on 43,101,453 (31 July 2008: 44,602,992, 31 January 2009: 44,075,233) ordinary shares, being the weighted average number of ordinary shares in issue during the period.

Basic capital return per ordinary share is based on net capital gain for the period of £219,514 (31 July 2008: loss of £6,632,207, 31 January 2009: loss of £14,417,787) and on 43,101,453 (31 July 2008: 44,602,992, 31 January 2009: 44,075,233) ordinary shares, being the weighted average number of ordinary shares in issue during the period.

6. Dividends in respect of equity shares


Unaudited

6 months

ended

31-Jul

2009

£

Unaudited

6 months

ended

31-Jul

2008

£

Audited

Year

ended

31-Jan

2009

£






Declared and paid




Relating to prior period:




Final dividend

-

899,379

899,379

Relating to current period:




Interim dividend

-

-

217,787


-

899,379

1,117,166

The Board has decided not to pay an interim dividend. A dividend payment for the full year will be considered at the relevant time but it remains your Board's policy to pay dividends whenever possible and prudent to do so.

7. Net asset value per ordinary share

The net asset value per ordinary share at 31 July 2009 has been calculated by reference to net assets of £19,322,647 (31 July 2008: £27,228,690, 31 January 2009: £19,198,113) and 42,857,890 (31 July 2008: 43,557,324, 31 January 2009: 43,178,940) ordinary shares, being the number of ordinary shares in issue at the period end.

8. Reconciliation of net return/(deficit) before taxation to net cash (outflow)/inflow from operating activities


Unaudited

6 months

ended

31-Jul

2009

£

Unaudited

6 months

ended

31-Jul

2008

£

Audited

Year

ended

31-Jan

2009

£






Net return/(deficit) before taxation

 220,348 

(6,365,473)

(14,067,134)

Net (gains)/losses on investments at fair value

(326,513)

 7,010,604 

 14,685,951 

Decrease in share option provision

-

(27,213)

(33,875)

(Increase)/decrease in debtors

(22,591)

(795,159)

 7,017 

Decrease in creditors and accruals

(22,938)

(133,740)

(195,881)

Interest reinvested 

-

-

(1,480)

Amortisation of discount on fixed




interest securities

(11,090)

(10,134)

(20,534)

Net cash (outflow)/inflow from

operating activities




(162,784)

(321,115)

 374,064 

9. Related party transactions

Williams de Broë Limited were appointed formally as Investment Manager on 28 April 2009 and Evolution Group Services Limited as the new Company Secretary on 11 February 2009. The fee arrangements for these services and the fees payable are set out below:



Unaudited

6 months

ended

31-Jul

2009

£

Unaudited

6 months

ended

31-Jul

2008

£

Audited

Year

ended

31-Jan

2009

£






Investment management fee

 142,665 

 226,965 

 386,112 

Irrecoverable VAT thereon

-

 39,719 

 34,211 

Recovered VAT from previous periods

-

(744,000)

(744,000)


 142,665 

(477,316)

(323,677)

Company secretarial fees

 7,742 

 7,500 

 15,000 

Irrecoverable VAT thereon

 1,161 

 1,312 

 2,250 


 8,903 

 8,812 

 17,250 

Total

 151,668 

(468,504)

(306,427)


Williams de Broë Limited receives an annual management fee of 1.5% of the net asset value of the Company. The annual management fee is calculated based on the quarter end net asset value and is payable calendar quarterly in arrears. At 31 July 2009, £24,615 excluding VAT (31 July 2008: £40,385 including VAT of £6,015, 31 January 2009: £24,030 excluding VAT) was owed to the Manager.

Evolution Group Services Limited performs Company secretarial duties for an annual fee of £18,500 including VAT of £2,413 (under previous contract with Singer & Friedlander Secretaries Limited - 31 July 2008: £17,625 including VAT of £2,625, 31 January 2009: £17,250 including VAT of £2,250). At 31 July 2009, £8,082 including VAT of £1,054 was owed to Evolution Group Services Limited (amount owed under previous contract with Singer & Friedlander Secretaries Limited - 31 July 2008: £17,625 including VAT of £2,625, 31 January 2009: £25,875 including VAT of £8,813).


Summary of Investments at 31 July 2009


AIM Quoted

companies

Sector

Purchase

cost

£

Valuation

at 31 July

2009

£

Percentage

of net

assets

%

1st Dental Laboratories

Healthcare equipment 

450,000

65,000

0.34


& services




Advanced Power Components 

Electronic & electrical 

100,000

100,000

0.52

Loan Stock

equipment




Aero Inventory

Aerospace & defence

1,289,924

1,011,575

5.23

Arcontech Group 

(formerly Knowledge

Technology Solutions)

Media

345,377

112,709

0.58

AssetCo

Support services

508,091

334,160

1.73

Autoclenz Holdings

Support services

131,440

30,480

0.16

Avingtrans

Industrial engineering

528,333

161,067

0.83

Bright Things

Leisure goods

527,500

109,511

0.57

Cello Group

Media

257,625

67,500

0.35

Clerkenwell Ventures

General financial

81,313

37,955

0.2

Conexion Media Group 

(formerly Music

Copyright Solutions)

Media

268,750

19,761

0.1

Coolabi

Media

210,865

63,259

0.33

Ebiquity

Media

729,005

172,750

0.89

Expansys

General retailers

449,500

17,438

0.09

First Artist Corporation

Media

804,265

221,566

1.15

fountains

Support services

155,852

110,857

0.57

Freshwater UK

Media

195,840

163,200

0.84

Fulcrum Pharma

Pharmaceuticals 

379,532

119,591

0.62


& biotechnology




Glisten

Food producers

220,000

132,000

0.68

Huveaux

Media

595,868

170,000

0.88

IDOX

Software & computer 

270,500

360,667

1.87


services




ILX Group

Support services

374,960

165,648

0.86

Individual Restaurant Company

Travel & leisure

151,998

32,786

0.17

Intelligent Environments Group

Software & computer 

205,672

465,982

2.41


services




Just Car Clinics Group

General retailers

95,865

169,173

0.88

LiDCO Group

Healthcare equipment 

185,000

249,750

1.29


& services




Lipoxen

Pharmaceuticals & 

238,001

357,000

1.85


biotechnology




Lo-Q

Travel & leisure

747,500

455,975

2.36

Mediwatch

Healthcare equipment 

1,075,629

692,792

3.59


& services




Mount Engineering

Industrial engineering

409,277

309,882

1.6

NeutraHealth

Food producers

279,470

79,088

0.41

Optimisa

Media

403,000

18,600

0.1

Petards Group

Support services

82,860

66,288

0.34

Prezzo

Travel & leisure

171,221

396,500

2.05

Pubs 'n' Bars

Travel & leisure

281,813

23,484

0.12

Quadnetics Group

Support services

341,381

200,784

1.04

Relax Group

General financial

750,000

309,524

1.6

RTC Group

Support services

220,375

53,750

0.28

Smallbone

General retailers

293,220

-

-

Symphony Environmental 

General industrials

460,339

244,866

1.27

Technologies





Synchronica

Technology hardware 

350,000

385,000

1.99


& equipment




Tanfield Group

Support services

286,214

135,850

0.7

Tasty

Travel & leisure

540,377

233,906

1.21

The Clapham House Group

Travel & leisure

395,992

212,090

1.1

The Real Good Food Company

Food producers

596,112

30,199

0.16

Tikit Group

Software & computer 

400,000

410,434

2.12


services




UBC Media Group

Media

663,754

86,849

0.45

Xploite

Software & computer 

217,758

161,889

0.84


services




Zytronic

Electronic & electrical 

610,958

382,924

1.98


equipment






19,328,326

9,912,059

51.3

All investments are in ordinary shares unless otherwise stated.

Fully listed

companies

Sector

Purchase

cost

£

Valuation

at 31 July

2009

£

Percentage

of net

assets

%

Connaught

Support services

411,846

753,000

3.9

Synergy Health

Healthcare equipment 

297,267

963,830

4.99


& services






709,113

1,716,830

8.89

All investments are in ordinary shares unless otherwise stated.


PLUS Markets traded 

Companies

Nature of business

Purchase

cost

£

Valuation

at 31 July

2009

£

Percentage

of net

assets

%

Award International Holdings

Media

209,990

210

-



209,990

210

-

All investments are in ordinary shares unless otherwise stated.

Private Companies

Sector

Purchase

cost

£

Valuation

at 31 July

2009

£

Percentage

of net

assets

%

Imagesound

Media

92,188

67,250

0.35

Lilestone Holdings

General retailers

978,655

548,149

2.84

Lilestone Holdings Loan Stock

General retailers

150,000

150,000

0.77

Sportsweb.com

Support services

352,128

316,915

1.64



1,572,971

1,082,314

5.6

All investments are in ordinary shares unless otherwise stated.

Other fixed interest securities

UK Government loans


Purchase

cost

£

Valuation

at 31 July

2009

£

Percentage

of net

assets

%

Treasury 2.25% Stock 7/3/2014


3,889,820

3,855,568

19.95

Treasury 4.25% Stock 7/3/2011


1,940,103

2,094,996

10.84



5,829,923

5,950,564

30.79

Other non-qualifying

investments

Sector

Purchase

cost

£

Valuation

at 31 July

2009

£

Percentage

of net

assets

%

Formation Group

Real estate investments 

504,172

161,817

0.84


& services




Payzone

Support services

645,994

15,038

0.08



1,150,166

176,855

0.92

All investments are in ordinary shares unless otherwise stated.


Investment held at

nil valuation*

Sector

Purchase

cost

£

Valuation

at 31 July

2009

£

Percentage

of net

assets

%

Aquabella Group

Food producers

440,500

-

-

Aquabella Group Loan Stock

Food producers

75,000

-

-

Aquillo

Support services

1,851,897

-

-

Camaxys

Software & computer 

254,825

-

-


services




Chromogenex

Healthcare equipment & 

13,875

-

-


services




CMS Webview

Media

401,674

-

-

Conder Environmental

Industrial engineering

385,241

-

-

Flexbenefits

Software & computer 

681,828

-

-


services




Flying Scotsman

Travel & leisure

400,800

-

-

Global Money Transfer 

General financial

300,000

-

-

Loan Notes





ID Data

Electronic & electrical 

1,089,736

-

-


equipment




Infonic

Software & computer 

1,395,327

-

-


services




Medal Entertainment & Media

Media

653,679

-

-

Monotub Industries

Household goods

260,000

-

-

Ovidia Investments

Media

518,312

-

-

Playgolf Holdings

Travel & leisure

255,000

-

-

Recycled Waste

Support services

374,994

-

-

Ringprop

Industrial engineering

366,999

-

-

Stanthorpe Telecom

Telecommunications

500,000

-

-

The Food & Drink Group

Travel & leisure

78,513

-

-

Torex Retail

Software & computer 

694,691

-

-


services




U4EA

Technology hardware 

2,303,121

-

-


& equipment




Vianet Group

Support services

1,069,990

-

-



14,366,002

-

-

All investments are in ordinary shares unless otherwise stated.

* These companies are in liquidation or their shares suspended from trading and the Directors consider it appropriate to value them at zero. With the exception of Global Money Transfer and Medal Entertainment & Media (purchase cost £51,170), they count towards the VCT investment test, which states that 70% of the Company's assets will be invested in VCT qualifying investments.

  

Summary

Purchase

cost

£

Valuation

at 31 July

2009

£

Percentage

of net

assets

%

Total qualifying portfolio

21,820,400

12,711,413

65.79

Fixed interest/non-qualifying portfolio

6,980,089

6,127,419

31.71

Investments held at nil valuation

14,366,002

-

-

Subtotal

43,166,491

18,838,832

97.5

Net current assets

-

483,815

2.5

Total

43,166,491

19,322,647

100

Directors

C J L Moorsom
J D Hambro

M S Killingley

D M Page

D M D A Wheatley

ViCTory VCT PLC

Registered in England & Wales No. 4138683
Registered office

100 Wood Street
London EC2V 7AN

Secretary

Evolution Group Services Limited
100 Wood Street

London EC2V 7AN

Manager

Williams de Broë Limited

(Authorised and regulated by the Financial Services Authority)

Austin Friars House

2-6 Austin Friars

London EC2N 2HD


E-mail: info@wdebroe.com

Registrar

Capita IRG plc
Northern 
House
Woodsome Park
Fenay Bridge
Huddersfield

West Yorkshire HD8 0GA


Website: www.capitaregistrars.com

Auditors

PricewaterhouseCoopers LLP

Hay's Galleria

1 Hay's Lane    
London SE1 2RD


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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