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Kings Arms Yard VCT PLC (KAY)

  Print      Mail a friend       Annual reports

Monday 22 August, 2011

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
2011. This  announcement was  approved by  the Board  of Directors  on 22 August
2011.

 The  full Half-yearly Financial  Report (which is  unaudited) for the period to
30 June  2011, will shortly  be sent  to shareholders.  Copies of the full Half-
yearly   Financial   Report   will   be   shown  via  the  Albion  Ventures  LLP
websitewww.albion-ventures.co.uk  under the  "Our Funds"  section by clicking on
Kings  Arms Yard VCT PLC  and looking under the  Financial Reports and Circulars
section for the Half-yearly Financial Report to 30 June 2011.

Investment policy

The  Company is a Venture Capital Trust.  The new investment policy, approved by
shareholders  at the  General Meeting  held on  10 February 2011, 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 amended
investment  policy  for  new  investments  which  over  time  will rebalance the
portfolio  such that  approximately 50 per  cent. of  the portfolio comprises an
asset-based  portfolio of lower risk, ungeared businesses, principally operating
in   the   healthcare,  environmental  and  leisure  sectors  (the  "Asset-Based
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 lower
risk,  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 VCT.  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-
Based  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 a Moody's rating of 'A' or above.





Financial calendar

Financial year end                                                   31 December



Interim Report date                                                      30 June



Announcement of interim results for the six months ended 30 June  22 August 2011
2011

Financial highlights

                                   Unaudited         Unaudited           Audited
                            six months ended  six months ended        year ended
                                30 June 2011      30 June 2010  31 December 2010

                           (pence per share) (pence per share) (pence per share)
--------------------------------------------------------------------------------


Net asset value                         16.0              18.8              16.6



Dividends

Dividends paid during the
period                                  0.67               4.0               5.0

Cumulative dividend paid
to 30 June 2011                         59.3              57.7              58.7



Total net asset value
return(1)

To shareholders of Kings
Arms Yard VCT PLC
(formerly SPARK VCT plc)                75.3              76.5              75.3

Total net asset value
return including tax
benefits(2)                             95.3              96.5              95.3



Total net asset value
return to former
shareholders of:

Quester VCT 2 plc, per
100p invested in shares of
that company(3)                         61.3              62.3              61.2

Total net asset value
return including tax
benefits(2)                             81.3              82.3              81.2



Quester VCT 3 plc, per
100p invested in shares of
that company (4)                        35.1              36.3              35.1

Total net asset value
return including tax
benefits (2)                            55.1              56.3              55.1


Notes

(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.
(3)Total return to original shareholders in Quester VCT 2 plc, launched in March
1998, which  was merged with the  Company (then called Quester  VCT plc) in June
2005, the  share exchange  ratio for  former shareholders  in Quester  VCT 2 plc
being 1.0249.
(4)Total  return  to  original  shareholders  in  Quester VCT 3 plc, launched in
February  2000, which was merged with the  Company (then called Quester VCT plc)
in June 2005, the share exchange ratio for former shareholders in Quester VCT 3
plc being 0.9816.

Chairman's statement

Overview
I am pleased to be able to report to shareholders on the first period of trading
under our new Managers.  Our new investment strategy was adopted at the General
Meeting on 10 February 2011 and the Managers have subsequently been active in
implementing this.  As reported in my last statement of 19 April 2011, progress
has been made in rationalising the small quoted portfolio.  Since then this
process has continued and the exit of MediGene AG has been completed.  Progress
has been made toward the disposal of certain of our unquoted investments, with
the sale of Imagesound plc completing at book value after 30 June 2011. New
investments have been made in two existing businesses and in a new bio-marker
library business.  A number of interesting investment opportunities have been
identified of which two are in progress.

The  deterioration in market sentiment over recent  weeks has not so far had any
significant effect on the value of our, largely unquoted, portfolio.  The extent
to  which it may affect  the trading of portfolio  companies, the opportunity of
realising  existing investments or the  opportunity for suitable new investments
is not yet clear.

Investment Performance and Progress
In the six months to 30 June 2011, total net asset value return per share has
remained at 75.3 p per share which is the same level as at 31 December 2010.
 Net assets per share at 30 June 2011 stood at 16.0p compared to 16.6p as at 31
December 2010 since when shareholders have received a tax free dividend of
0.67p per share.

The movement in net assets is summarised in the table below:
                                              Bonds and net
                               Investments   current assets    Total   pence per
                                     £'000            £'000    £'000       share
--------------------------------------------------------------------------------
Net asset value at 31 December
2010                                12,350            5,933   18,283        16.6

Net gains on disposal                   36             (12)       24         0.0

Income    net   of   operating
expenses                                 -            (256)    (256)       (0.2)

Net   gain   on  valuation  of
investments                            280             (13)      267         0.2

Net investments                        282            (282)        -           -
                              ------------- ---------------- -------- ----------
Net assets before dividends         12,948            5,370   18,318        16.6

Dividends  paid,  less amounts
reinvested                               -            (623)    (623)       (0.6)
                              ------------- ---------------- -------- ----------
Net  asset  value  at  30 June
2011                                12,948            4,747   17,695        16.0
                              ------------- ---------------- -------- ----------

The  distribution of  assets by  sector as  at 30 June  2011 is shown in the pie
chart attached to the end of this announcement.
Source: Albion Ventures LLP

Risks and uncertainties
The  outlook for  the UK  and the  global economies  continue to be the key risk
facing  your Company.  Many of our  investments operate in international markets
where  the continuing concerns over debt and  currencies seem certain to have an
effect  on  the  general  business  environment.   Nevertheless, a number of our
companies  have  strong  positions  in  resilient  markets, while the process of
rebalancing  the portfolio  and an  increase in  lower risk investments, with no
bank borrowings, is continuing.

Other  risks  and  uncertainties  remain  in  the  Annual  Report  and Financial
Statement for the year ended 31 December 2010 and as detailed in note 13.

Proposed merger with Kings Arms Yard VCT 2 PLC
As  announced on 16 May 2011, it is proposed that Kings Arms Yard 2 VCT PLC will
merge  with your Company through a  scheme of reconstruction pursuant to section
110 of the Insolvency Act 1986, which will be subject to approval as detailed in
the   Company's   Circular   and  Prospectus  which  will  shortly  be  sent  to
shareholders.  If the appropriate resolutions are passed, Kings Arms Yard VCT 2
PLC  will be placed in members' voluntary liquidation with all of its assets and
liabilities  being  transferred  to  the  Company  and Kings Arms Yard VCT 2 PLC
shareholders  will receive new shares in Kings Arms Yard VCT PLC on the basis of
the  relative net  asset values  of the  two companies  as adjusted for material
movements for each fund before the effective date.

Full details are to be found in the Company's Prospectus and Circular which will
soon be dispatched to all shareholders.

Related party transactions
Details  of material related party transactions  for the reporting period can be
found in note 10 of this Half-yearly Financial Report.

Results and dividends
We  believe that the Company is moving toward a sounder footing, but it would be
premature  to  suggest  any  permanent  improvement  yet.   Our overall dividend
intentions  remain unchanged and we will review the prospect of a final dividend
once full year performance has been achieved.

Outlook
The  performance of  quoted markets  has been  very weak  in recent  weeks.  The
extent  to which this expresses, or is likely to lead to, an underlying economic
malaise  is not yet clear, but there are clearly major issues to be tackled at a
macro-economic  level.  Under these conditions it  is difficult to make positive
forward  looking statements,  but your  Board is  confident that  the Company is
being managed in a manner that offers it the best prospect of a positive future.


Robin Field
Chairman
22 August 2011

Responsibility statement

The  Directors, Robin Field,  Martin Fiennes and  Patrick Reeve, are responsible
for  preparing the Half-yearly  Financial Report.  The  Directors have chosen to
prepare  this Half-yearly  Financial Report  for the  Company in accordance with
United Kingdom Generally Accepted Accounting Practice ("UK GAAP").

In  preparing these  summarised financial  statements for  the period to 30 June
2011, we  the  Directors  of  the  Company,  confirm  that  to  the  best of our
knowledge:

(a)  the summarised set of financial  statements has been prepared in accordance
with  the pronouncement on interim reporting  issued by the Accounting Standards
Board;

(b)  the interim  management report  includes a  fair review  of the information
required  by DTR  4.2.7R (indication of  important events  during the  first six
months  and description of  principal risks and  uncertainties for the remaining
six months of the year);

(c)  the summarised set  of financial statements  gives a true  and fair view in
accordance  with  UK  GAAP  of  the  assets, liabilities, financial position and
profit  and loss of the Company for the six months ended 30 June 2011 and comply
with UK GAAP and Companies Act 2006 and;

(d)  the interim  management report  includes a  fair review  of the information
required  by DTR 4.2.8R (disclosure of related parties' transactions and changes
therein).

The  accounting policies applied  to the Half-yearly  Financial Report have been
consistently  applied in current and prior periods  and are those applied in the
Annual Report and Financial Statements for the year ended 31 December 2010.

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

By order of the Board


Robin Field
Chairman
22 August 2011




Portfolio of investments

The following is a summary of fixed asset investments as at 30 June 2011:

+-----------------+------+-----------+---------------+---------------+---------+
|                 |      |           |               |     Cumulative|         |
|                 |      |   Equity %|     Accounting|       movement|         |
|                 |Equity|    held by|        Cost(2)|       in value|Valuation|
|                 |% held|     AVL(1)|          £'000|          £'000|    £'000|
+-----------------+------+-----------+---------------+---------------+---------+
|Unquoted         |      |           |               |               |         |
|investments      |      |           |               |               |         |
|                 |      |           |               |               |         |
|Imagesound plc   |      |           |               |               |         |
|(3)              |  11.7|       12.2|          2,848|          (653)|    2,195|
|                 |      |           |               |               |         |
|Elateral Holdings|      |           |               |               |         |
|Limited          |  23.4|       36.7|          1,009|          1,092|    2,101|
|                 |      |           |               |               |         |
|UniServity       |      |           |               |               |         |
|Limited          |  20.5|       49.2|          1,208|            436|    1,644|
|                 |      |           |               |               |         |
|Level Four       |      |           |               |               |         |
|Software Holdings|      |           |               |               |         |
|Limited (3)      |  12.9|       24.9|            984|            144|    1,128|
|                 |      |           |               |               |         |
|Cluster Seven    |      |           |               |               |         |
|Limited(3)       |   9.0|       14.8|          1,569|          (552)|    1,017|
|                 |      |           |               |               |         |
|Haemostatix      |      |           |               |               |         |
|Limited          |  13.0|       21.1|            584|            317|      901|
|                 |      |           |               |               |         |
|Workshare Limited|   1.8|       11.3|            696|           (22)|      674|
|                 |      |           |               |               |         |
|Sift Limited (3) |  22.5|       31.4|          2,658|        (2,014)|      644|
|                 |      |           |               |               |         |
|Vivacta Limited  |   8.1|       13.3|          1,572|        (1,042)|      530|
|                 |      |           |               |               |         |
|Lab M Holdings   |      |           |               |               |         |
|Limited          |  26.4|       26.4|            690|          (195)|      495|
|                 |      |           |               |               |         |
|Atego Group      |      |           |               |               |         |
|Limited          |  11.3|       11.3|            120|            359|      479|
|                 |      |           |               |               |         |
|Perpetuum Limited|   7.5|       12.4|            847|          (473)|      374|
|                 |      |           |               |               |         |
|Antenova Limited |   5.3|       12.3|          1,307|        (1,114)|      193|
|                 |      |           |               |               |         |
|We7 Limited      |   9.2|       13.0|            816|          (702)|      114|
|                 |      |           |               |               |         |
|Abcodia Limited  |   3.1|       21.4|            110|              -|      110|
|                 |      |           |               |               |         |
|Symetrica Limited|   2.4|        3.4|            108|              -|      108|
|                 |      |           |               |               |         |
|Academia Networks|      |           |               |               |         |
|Limited          |   4.1|        5.8|            103|              -|      103|
|                 |      |           |               |               |         |
|TeraView Limited |   4.8|        9.6|          1,172|        (1,147)|       25|
|                 |      |           |               |               |         |
|Oxonica Limited  |   1.5|        2.1|            195|          (188)|        7|
|                 |      |           |               |               |         |
|Skinkers Limited |   4.0|        5.2|          1,178|        (1,178)|        -|
+-----------------+------+-----------+---------------+---------------+---------+
|Total unquoted   |      |           |               |               |         |
|investments      |      |           |         19,774|        (6,932)|   12,842|
+-----------------+------+-----------+---------------+---------------+---------+
|Quoted           |      |           |               |               |         |
|investments      |      |           |               |               |         |
|                 |      |           |               |               |         |
|Allergy          |      |           |               |               |         |
|Therapeutics plc |      |           |               |               |         |
|(AIM)            |   0.3|        0.9|            365|          (307)|       58|
|                 |      |           |               |               |         |
|Celldex          |      |           |               |               |         |
|Therapeutics Inc.|      |           |               |               |         |
|(NASDAQ)         |   0.2|        0.5|            504|          (456)|       48|
+-----------------+------+-----------+---------------+---------------+---------+
|Total quoted     |      |           |               |               |         |
|investments      |      |           |            869|          (763)|      106|
+-----------------+------+-----------+---------------+---------------+---------+
|Total investments|      |           |         20,643|        (7,695)|   12,948|
|                 |      |           |               |               |         |
|Cash and other   |      |           |               |               |         |
|net assets       |      |           |               |               |    4,747|
+-----------------+------+-----------+---------------+---------------+---------+
|Net assets       |      |           |               |               |   17,695|
+-----------------+------+-----------+---------------+---------------+---------+

(1)Equity held by Albion Ventures LLP managed companies.
(2)Amounts  shown as accounting 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.
(3)Includes Loan Stock.

Summary income statement
+--------------+----+---------------------+---------------------+-----------------------+
|              |    |      Unaudited      |      Unaudited      |        Audited        |
|              |    |  six months ended   |  six months ended   |      year ended       |
|              |    |    30 June 2011     |    30 June 2010     |   31 December 2010    |
+--------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-------+
|              |    |Revenue|Capital|Total|Revenue|Capital|Total|Revenue|Capital|  Total|
|              |Note|  £'000|  £'000|£'000|  £'000|  £'000|£'000|  £'000|  £'000|  £'000|
+--------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-------+
|Gains/(losses)|    |       |       |     |       |       |     |       |       |       |
|on valuation  |    |       |       |     |       |       |     |       |       |       |
|of investments|    |       |       |     |       |       |     |       |       |       |
|at fair value |    |       |       |     |       |       |     |       |       |       |
|through profit|    |       |       |     |       |       |     |       |       |       |
|and loss      |    |      -|    267|  267|      -|  (249)|(249)|      -|(2,209)|(2,209)|
|              |    |       |       |     |       |       |     |       |       |       |
|              |    |       |       |     |       |       |     |       |       |       |
|              |    |       |       |     |       |       |     |       |       |       |
|Profit on     |    |       |       |     |       |       |     |       |       |       |
|disposals of  |    |       |       |     |       |       |     |       |       |       |
|investments at|    |       |       |     |       |       |     |       |       |       |
|fair value    |    |       |       |     |       |       |     |       |       |       |
|through profit|    |       |       |     |       |       |     |       |       |       |
|and loss      |    |      -|     24|   24|      -|    655|  655|      -|  1,576|  1,576|
|              |    |       |       |     |       |       |     |       |       |       |
|              |    |       |       |     |       |       |     |       |       |       |
|              |    |       |       |     |       |       |     |       |       |       |
|Investment    |    |       |       |     |       |       |     |       |       |       |
|income        |   3|     77|      -|   77|     59|      -|   59|    132|      -|    132|
|              |    |       |       |     |       |       |     |       |       |       |
|              |    |       |       |     |       |       |     |       |       |       |
|              |    |       |       |     |       |       |     |       |       |       |
|Recoverable   |    |       |       |     |       |       |     |       |       |       |
|VAT           |    |      -|      -|    -|     49|      -|   49|     49|      -|     49|
|              |    |       |       |     |       |       |     |       |       |       |
|              |    |       |       |     |       |       |     |       |       |       |
|              |    |       |       |     |       |       |     |       |       |       |
|Investment    |    |       |       |     |       |       |     |       |       |       |
|management    |    |       |       |     |       |       |     |       |       |       |
|fees          |    |  (181)|      -|(181)|  (243)|      -|(243)|  (412)|      -|  (412)|
|              |    |       |       |     |       |       |     |       |       |       |
|              |    |       |       |     |       |       |     |       |       |       |
|              |    |       |       |     |       |       |     |       |       |       |
|Other expenses|    |  (152)|      -|(152)|  (170)|      -|(170)|  (350)|      -|  (350)|
|              |    +-------+-------+-----+-------+-------+-----+-------+-------+-------+
|(Loss)/profit |    |       |       |     |       |       |     |       |       |       |
|on ordinary   |    |       |       |     |       |       |     |       |       |       |
|activities    |    |       |       |     |       |       |     |       |       |       |
|before tax    |    |  (256)|    291|   35|  (305)|    406|  101|  (581)|  (633)|(1,214)|
|              |    |       |       |     |       |       |     |       |       |       |
|Tax on        |    |       |       |     |       |       |     |       |       |       |
|ordinary      |    |       |       |     |       |       |     |       |       |       |
|activities    |    |      -|      -|    -|      -|      -|    -|      -|      -|      -|
+--------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-------+
|(Loss)/profit |    |       |       |     |       |       |     |       |       |       |
|on ordinary   |    |       |       |     |       |       |     |       |       |       |
|activities    |    |       |       |     |       |       |     |       |       |       |
|after tax     |    |  (256)|    291|   35|  (305)|    406|  101|  (581)|  (633)|(1,214)|
+--------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-------+
|Basic and     |    |       |       |     |       |       |     |       |       |       |
|diluted       |    |       |       |     |       |       |     |       |       |       |
| (loss)/return|    |       |       |     |       |       |     |       |       |       |
|per share     |    |       |       |     |       |       |     |       |       |       |
|(pence)       |   5|  (0.2)|    0.3|  0.1|  (0.3)|    0.4|  0.1|  (0.5)|  (0.6)|  (1.1)|
+--------------+----+-------+-------+-----+-------+-------+-----+-------+-------+-------+

Comparative figures have been extracted from the unaudited Half-yearly Financial
Report  for the six months ended 30 June 2010 and the audited statutory accounts
for the year ended 31 December 2010.

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

The total column of this Summary income statement represents the profit and loss
account of the Company.  The supplementary revenue and capital columns have been
prepared  in accordance with The  Association of Investment Companies' Statement
of  Recommended Practice.  All revenue and  capital items in the above statement
derive  from continuing operations.  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  total recognised gains and losses
is  not  required.   The  difference  between  the  reported  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.
Summary balance sheet

+------------------------------------------------------------------------------+
|                                   Unaudited      Unaudited            Audited|
|                                30 June 2011   30 June 2010   31 December 2010|
|                           Note        £'000          £'000              £'000|
+------------------------------------------------------------------------------+
|Fixed asset investments               12,948         14,154             12,350|
|                               -------------- -------------- -----------------+
|                                                                              |
|                                                                              |
|Current assets                                                                |
|                                                                              |
|Trade and other debtors                  472            761                686|
|                                                                              |
|Current asset investments                989          3,722              3,230|
|                                                                              |
|Cash at bank and in hand      8        3,367          2,428              2,216|
|                               -------------- -------------- -----------------+
|                                       4,828          6,911              6,132
|                                                                              |
|                                                                              |
|                                                                              |
|Creditors: amounts falling                                                    |
|due within one year                     (81)          (364)              (199)|
|                               -------------- -------------- -----------------+
|                                                                              |
|                                                                              |
|Net current assets                     4,747          6,547              5,933|
|                               -------------- -------------- -----------------+
|                                                                              |
|                                                                              |
|Net assets                            17,695         20,701             18,283|
|                               -------------- -------------- -----------------+
|                                                                              |
|                                                                              |
|Capital and reserves                                                          |
|                                                                              |
|Called-up share capital       6        5,521          5,519              5,519|
|                                                                              |
|Share premium                            155            150                150|
|                                                                              |
|Capital redemption reserve               765            765                765|
|                                                                              |
|Special reserve                       18,222         21,524             20,524|
|                                                                              |
|Investment holding losses            (7,709)        (7,431)            (9,574)|
|                                                                              |
|Profit and loss account                  741            174                899|
|                               -------------- -------------- -----------------+
|                                                                              |
|                                                                              |
|Total equity shareholders'                                                    |
|funds                                 17,695         20,701             18,283|
|                               -------------- -------------- -----------------+
|                                                                              |
|                                                                              |
|Basic and diluted net                                                         |
|asset value per share                                                         |
|(pence)                                 16.0           18.8               16.6|
+------------------------------------------------------------------------------+

Comparative figures have been extracted from the unaudited Half-yearly Financial
Report  for the six months ended 30 June 2010 and the audited statutory accounts
for the year ended 31 December 2010.

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

These  financial  statements  were  approved  by  the  Board  of  Directors, and
authorised for issue on 22 August 2011 and were signed on its behalf by


Robin Field
Chairman
Company number: 3139019
Summary reconciliation of movements in shareholders' funds

+-------------+--------+--------+-----------+-------+----------+-------+-------+
|             |        |        |           |       |          | Profit|       |
|             | Called-|   Share|    Capital|       |Investment|    and|       |
|             |up share| premium| redemption|Special|   holding|   loss|       |
|             | capital| account|    reserve|reserve|    losses|account|  Total|
|             |        |        |           |       |          |       |       |
|             |   £'000|   £'000|      £'000|  £'000|     £'000|  £'000|  £'000|
+-------------+--------+--------+-----------+-------+----------+-------+-------+
|1 January    |        |        |           |       |          |       |       |
|2011         |        |        |           |       |          |       |       |
|(audited)    |   5,519|     150|        765| 20,524|   (9,574)|    899| 18,283|
|             |        |        |           |       |          |       |       |
|Realisation  |        |        |           |       |          |       |       |
|of prior     |        |        |           |       |          |       |       |
|years' net   |        |        |           |       |          |       |       |
|   recognised|        |        |           |       |          |       |       |
|losses on    |        |        |           |       |          |       |       |
|             |        |        |           |       |          |       |       |
| investments |       -|       -|          -|      -|     1,598|(1,598)|      -|
|             |        |        |           |       |          |       |       |
|Transfer from|        |        |           |       |          |       |       |
|special      |        |        |           |       |          |       |       |
|reserve to   |        |        |           |       |          |       |       |
|   profit and|        |        |           |       |          |       |       |
|loss account |       -|       -|          -|(2,302)|         -|  2,302|      -|
|             |        |        |           |       |          |       |       |
|Investment   |        |        |           |       |          |       |       |
|holding gain |        |        |           |       |          |       |       |
|on           |        |        |           |       |          |       |       |
|   valuation |        |        |           |       |          |       |       |
|of           |        |        |           |       |          |       |       |
|investments  |       -|       -|          -|      -|       267|  (267)|      -|
|             |        |        |           |       |          |       |       |
|Issue of     |        |        |           |       |          |       |       |
|equity (net  |        |        |           |       |          |       |       |
|of costs)    |       2|       5|          -|      -|         -|      -|      7|
|             |        |        |           |       |          |       |       |
|Loss on      |        |        |           |       |          |       |       |
|ordinary     |        |        |           |       |          |       |       |
|activities   |        |        |           |       |          |       |       |
|after        |        |        |           |       |          |       |       |
|   taxation  |       -|       -|          -|      -|         -|     35|     35|
|             |        |        |           |       |          |       |       |
|Dividends    |        |        |           |       |          |       |       |
|paid         |       -|       -|          -|      -|         -|  (630)|  (630)|
+-------------+--------+--------+-----------+-------+----------+-------+-------+
|As at 30 June|        |        |           |       |          |       |       |
|2011         |        |        |           |       |          |       |       |
|(unaudited)  |   5,521|     155|        765| 18,222|   (7,709)|    741| 17,695|
+-------------+--------+--------+-----------+-------+----------+-------+-------+
|1 January    |        |        |           |       |          |       |       |
|2010         |        |        |           |       |          |       |       |
|(audited)    |   5,519|     150|        765| 22,685|   (7,941)|  3,852| 25,030|
|             |        |        |           |       |          |       |       |
|Realisation  |        |        |           |       |          |       |       |
|of prior     |        |        |           |       |          |       |       |
|years' net   |        |        |           |       |          |       |       |
|   recognised|        |        |           |       |          |       |       |
|losses on    |        |        |           |       |          |       |       |
|             |        |        |           |       |          |       |       |
| investments |       -|       -|          -|      -|       759|  (759)|      -|
|             |        |        |           |       |          |       |       |
|Transfer from|        |        |           |       |          |       |       |
|special      |        |        |           |       |          |       |       |
|reserve to   |        |        |           |       |          |       |       |
|   profit and|        |        |           |       |          |       |       |
|loss account |       -|       -|          -|(1,161)|         -|  1,161|      -|
|             |        |        |           |       |          |       |       |
|Investment   |        |        |           |       |          |       |       |
|holding loss |        |        |           |       |          |       |       |
|on           |        |        |           |       |          |       |       |
|   valuation |        |        |           |       |          |       |       |
|of           |        |        |           |       |          |       |       |
|investments  |       -|       -|          -|      -|     (249)|    249|      -|
|             |        |        |           |       |          |       |       |
|Profit on    |        |        |           |       |          |       |       |
|ordinary     |        |        |           |       |          |       |       |
|activities   |        |        |           |       |          |       |       |
|   after     |        |        |           |       |          |       |       |
|taxation     |       -|       -|          -|      -|         -|    101|    101|
|             |        |        |           |       |          |       |       |
|Dividends    |        |        |           |       |          |       |       |
|paid         |       -|       -|          -|      -|         -|(4,430)|(4,430)|
+-------------+--------+--------+-----------+-------+----------+-------+-------+
|As at 30 June|        |        |           |       |          |       |       |
|2010         |        |        |           |       |          |       |       |
|(unaudited)  |   5,519|     150|        765| 21,524|   (7,431)|    174| 20,701|
+-------------+--------+--------+-----------+-------+----------+-------+-------+
|1 January    |        |        |           |       |          |       |       |
|2010         |        |        |           |       |          |       |       |
|(audited)    |   5,519|     150|        765| 22,685|   (7,941)|  3,852| 25,030|
|             |        |        |           |       |          |       |       |
|Realisation  |        |        |           |       |          |       |       |
|of prior     |        |        |           |       |          |       |       |
|years' net   |        |        |           |       |          |       |       |
|   recognised|        |        |           |       |          |       |       |
|losses on    |        |        |           |       |          |       |       |
|             |        |        |           |       |          |       |       |
| investments |       -|       -|          -|      -|       576|  (576)|      -|
|             |        |        |           |       |          |       |       |
|Transfer from|        |        |           |       |          |       |       |
|special      |        |        |           |       |          |       |       |
|reserve to   |        |        |           |       |          |       |       |
|   profit and|        |        |           |       |          |       |       |
|loss account |       -|       -|          -|(2,161)|         -|  2,161|      -|
|             |        |        |           |       |          |       |       |
|Investment   |        |        |           |       |          |       |       |
|holding loss |        |        |           |       |          |       |       |
|on           |        |        |           |       |          |       |       |
|   valuation |        |        |           |       |          |       |       |
|of           |        |        |           |       |          |       |       |
|investments  |       -|       -|          -|      -|   (2,209)|(2,209)|      -|
|             |        |        |           |       |          |       |       |
|Loss on      |        |        |           |       |          |       |       |
|ordinary     |        |        |           |       |          |       |       |
|activities   |        |        |           |       |          |       |       |
|after        |        |        |           |       |          |       |       |
|   taxation  |       -|       -|          -|      -|         -|(1,214)|(1,214)|
|             |        |        |           |       |          |       |       |
|Dividends    |        |        |           |       |          |       |       |
|paid         |       -|       -|          -|      -|         -|(5,533)|(5,533)|
+-------------+--------+--------+-----------+-------+----------+-------+-------+
|As at 31     |        |        |           |       |          |       |       |
|December     |        |        |           |       |          |       |       |
|2010         |        |        |           |       |          |       |       |
|(audited)    |   5,519|     150|        765| 20,524|   (9,574)|    899| 18,283|
+-------------+--------+--------+-----------+-------+----------+-------+-------+

The total distributable reserves are £11,254,000 (30 June 2010: £14,267,000; 31
December  2010: £11,849,000), comprising the special  reserve and the profit and
loss account, less net investment holdings losses.

Summary cash flow statement

+------------------------------------------------------------------------------+
|                                  Unaudited         Unaudited          Audited|
|                                 six months        six months       year ended|
|                                      ended             ended      31 December|
|                               30 June 2011      30 June 2010             2010|
|                       Note           £'000             £'000            £'000|
+------------------------------------------------------------------------------+
|Net cash flow from                                                            |
|operating activities      7           (254)             (445)            (524)|
|                           ----------------- ----------------- ---------------+
|                                                                              |
|                                                                              |
|Taxation                                                                      |
|                                                                              |
|UK corporation tax                                                            |
|recovered/(paid)                          -                 -                -|
|                                                                              |
|                                                                              |
|                                                                              |
|Financial investments                                                         |
|                                                                              |
|Purchase of fixed                                                             |
|asset investments                     (452)             (168)            (536)|
|                                                                              |
|Purchase of current                                                           |
|asset investments                     (985)                 -                -|
|                                                                              |
|Disposal of fixed                                                             |
|asset investments                       326             1,266            2,139|
|                                                                              |
|Disposal of current                                                           |
|asset investments                     3,235             2,988            3,480|
|                                                                              |
|Amounts recovered from                                                        |
|investments previously                                                        |
|written off                               -                27                -|
|                           ----------------- ----------------- ---------------+
|                                                                              |
|                                                                              |
|Net cash flow from                                                            |
|investing activities                  2,124             4,113            5,083|
|                                                                              |
|                                                                              |
|                                                                              |
|Equity dividends paid                                                         |
|(net of costs of                                                              |
|issuing shares under                                                          |
|the Dividend                                                                  |
|Reinvestment Scheme)                  (718)           (4,430)          (5,533)|
|                           ----------------- ----------------- ---------------+
|                                                                              |
|                                                                              |
|Net cash flow before                                                          |
|financing                             1,152             (762)            (974)|
|                           ----------------- ----------------- ---------------+
|                                                                              |
|                                                                              |
|Financing                                                                     |
|                                                                              |
|Costs of issue of                                                             |
|share capital                           (1)                 -                -|
|                           ----------------- ----------------- ---------------+
|                                                                              |
|                                                                              |
|Net cash flow from                                                            |
|financing                               (1)                 -                -|
|                           ----------------- ----------------- ---------------+
|                                                                              |
|                                                                              |
|Cash flow in the                                                              |
|period                    8           1,151             (762)            (974)|
|                           ----------------- ----------------- ---------------+
|                                                                              |
+------------------------------------------------------------------------------+

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


Notes to the unaudited summarised financial statements

1. Accounting convention
The  Financial Statements have  been prepared in  accordance with the historical
cost convention, except for the measurement of fair value of investments, and in
accordance  with  applicable  UK  law  and  accounting  standards  and  with the
Statement  of  Recommended  Practice  'Financial  Statements of Investment Trust
Companies  and Venture  Capital Trusts'  ("SORP") issued  by The  Association of
Investment  Companies ("AIC")  in January  2009.  Accounting policies  have been
applied  consistently in current and prior periods. The accounts are prepared on
a going concern basis.

2. Accounting policies
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 profit  and loss
account).

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 International
Private  Equity and  Venture Capital  Valuation guidelines.   Indicators of fair
value  are derived using established methodologies including earnings multiples,
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 investee 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 investee 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.

It is not the Company's policy to exercise control or significant influence over
investee  companies.  Therefore, in accordance with  the exemptions under FRS 9
"Associates  and Joint Ventures", those undertakings  in which the Company holds
more  than  20 per  cent.,  but  less  than  50 per  cent.,  of the equity of an
investment  company, and  the investment  company is  not a  subsidiary, are not
regarded as associated undertakings.


Current asset investments
In  accordance with  FRS 26, units  held in  funds used  for cash management are
designated  as  fair  value  through  profit  and  loss.   These investments are
classified  as current  asset investments  as they  are investments held for the
short  term and  comparative classification  in the  Balance sheet and Cash flow
statements have been represented accordingly.

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  year  as  a Capital item and are
allocated to Investment holding losses.

Investment income
Dividends  receivable on quoted equity shares are recognised into account 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 (including amortisation
of  any  premium  or  discount  to  redemption)  so  as to reflect the effective
interest  rate,  provided  there  is  no  reasonable  doubt that payment will be
received  in  due  course.   Income  from  fixed interest securities and deposit
interest is included on an effective interest rate basis.

Expenses
All expenses, including expenses incidental to the acquisition or disposal of an
investment, are accounted for on an accruals basis and are charged wholly to the
profit  and loss account.  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 special reserve.

All  other expenses, including management fees, are presented within the Revenue
column of the Income statement.

Taxation
Corporation  tax is applied to profits chargeable to corporation tax, if any, at
the  applicable rate for the period.  The  Company has not provided for deferred
tax  on any capital  gains or losses  arising on the  revaluation or disposal of
investments  as these items are not subject  to tax whilst the Company maintains
its  Venture Capital Trust status.  The Company  intends to continue to meet the
conditions required for it to hold approved Venture Capital Trust status for the
foreseeable  future.   Deferred  tax  assets  in  respect  of surplus management
expenses  are only recognised  to the extent  that such assets  are likely to be
recoverable against future taxable profits of the Company.

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  Profit and loss account.  Exchange  differences relating to investments and
other  financial instruments measured at fair value are subsequently included in
the transfer to the Investment holding losses.

Dividends
Dividends  payable to equity shareholders are  recognised when they are paid, or
have been approved by shareholders at an Annual General Meeting.

3.        Investment income
                                 Unaudited          Unaudited            Audited
                          six months ended   six months ended         year ended
                              30 June 2011       30 June 2010   31 December 2010
                                     £'000              £'000              £'000
--------------------------------------------------------------------------------
Interest recognised on
investments held at fair
value through profit or
loss

Interest on listed fixed
interest securities                      -                  3                  3

Interest on loans to
venture capital investee
companies                               42                 38                 91

Other income                            10                 12                 22
                         ------------------ ------------------ -----------------
                                        52                 53                116

Interest recognised on
investments held at
amortised cost

Bank deposit interest                   25                  6                 16
                         ------------------ ------------------ -----------------
                                        77                 59                132
                         ------------------ ------------------ -----------------

4.        Dividends
                                 Unaudited          Unaudited            Audited
                          six months ended   six months ended         year ended
                              30 June 2011       30 June 2010   31 December 2010
                                     £'000              £'000              £'000
--------------------------------------------------------------------------------
Final dividend of 4 pence
per share paid on
   11 June 2010 in
respect of the year ended
   31 December 2009                      -              4,430              4,430

Interim dividend of 1
penny per share paid on
   24 September 2010 in
respect of the year ended
   31 December 2010                      -                  -              1,103

Final dividend of 0.67
pence per share paid on
   24 June 2011 in
respect of the year ended
   31 December 2010                    739                  -                  -

Dividends recovered                  (109)                  -                  -
                         ------------------ ------------------ -----------------
                                       630              4,430              5,533
                         ------------------ ------------------ -----------------

5.        Basic and diluted return per share
Return  per share  has been  calculated on  110,371,963 Ordinary shares (30 June
2010 and  31 December  2010: 110,370,135) being  the  weighted average number of
shares in issue for the period.

6.        Share Capital
                                     Unaudited      Unaudited            Audited
                                  30 June 2011   30 June 2010   31 December 2010
                                         £'000          £'000              £'000
--------------------------------------------------------------------------------
Authorised:
200,000,000 Ordinary shares of 5
pence each (30 June 2010 and 31
December 2010: 200,000,000)             10,000         10,000             10,000
                                 -------------- -------------- -----------------
Allotted, issued and fully paid:
110,417,392 Ordinary shares of 5
pence each (30 June 2010 and 31
December 2010: 110,370,135)              5,521          5,519              5,519
                                 -------------- -------------- -----------------





During  the  period  from  1 January  to  30 June  2011, the  Company issued the
following  New Ordinary shares of  5 pence each under the  terms of the Dividend
Reinvestment Scheme Circular dated 19 April 2011:

                                                   Mid market price
                      Number of       Issue price     on issue date Net proceeds
Date of allotment shares issued (pence per share) (pence per share)        £'000
--------------------------------------------------------------------------------
     24 June 2011        47,257             15.93              7.75            8


No shares were bought back by the Company during the period ended 30 June 2011.

7.        Reconciliation of profit/(loss) on ordinary activities before taxation
to net cash flow from operating activities
                                                                         Audited
                                  Unaudited          Unaudited        year ended
                           six months ended   six months ended       31 December
                               30 June 2011       30 June 2010              2010
                                      £'000              £'000             £'000
--------------------------------------------------------------------------------
Profit/(loss) on ordinary
activities before tax                    35                101           (1,214)

(Gain)/loss on investments
at fair value through
profit or loss                        (291)              (406)               633

Decrease/(increase) in
debtors                                  28              (304)                58

(Decrease)/increase in
creditors                              (26)                164               (1)
                          ------------------ ------------------ ----------------
Net cash flow from
operating activities                  (254)              (445)             (524)
                          ------------------ ------------------ ----------------

8.        Analysis of change in cash during the period
                             Unaudited          Unaudited            Audited
                      six months ended   six months ended         year ended
                          30 June 2011       30 June 2010   31 December 2010
                                 £'000              £'000              £'000
----------------------------------------------------------------------------
Opening cash balances            2,216              3,190              3,190

Net cash flow                    1,151              (762)              (974)
                     ------------------ ------------------ -----------------
Closing cash balances            3,367              2,428              2,216
                     ------------------ ------------------ -----------------

9.        Post balance sheet events
          Since 30 June 2011, the  Company has completed  the following material
transactions:

-        Disposal of Imagesound plc for £2,195,000 in July 2011.
        -        Investment in Atego Group Limited of £264,000 in August 2011;


10.        Related party disclosures
The  Manager, Albion Ventures LLP, is considered to be a related party by virtue
of  the fact that Patrick Reeve, a Director of the Company, is also the Managing
Partner of the Manager.  The Manager is party to a management agreement with the
Company (details disclosed on pages 35 and 36 of the Annual Report and Financial
Statements for the year ended 31 December 2010).  Albion Ventures LLP has agreed
to  waive  its  management  and  administration  fees  for the first year to 31
December  2011.  Patrick Reeve has agreed to waive his entitlement to Directors'
fees for all accounting periods until further notice.

During  the  period,  the  previous  Manager,  SPARK Venture Management Limited,
continued  to be  entitled to  the management  and administration fees under the
terms  of the Termination Agreement and  fees totalling £217,000 (30 June 2010:
£277,000;  31 December 2010: £480,000) were paid by the Company to SPARK Venture
Management Limited.

At  the financial period end, an amount  of less than £1,000 (31 December 2010:
£6,000)  reflected prepayments to SPARK  Venture Management Limited.  At 30 June
2010, an  amount of £41,000 was  included in accruals in  respect of fees due to
SPARK Venture Management Limited.

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

11.        Going concern
The  Board's assessment  of liquidity  risk remains  unchanged since  the Annual
Report  and  Financial  Statements  for  the  year ended 31 December 2010 and is
detailed on page 18 of those accounts.

The  Company  has  significant  cash  and  liquid  resources, and the major cash
outflows  of  the  Company  (namely  investments  and  dividends) 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.


12.        Risks and uncertainties

The Board considers that the Company faces the following major risks and
uncertainties:
1. Investment risk
This is the risk of investment in poor quality assets which reduces the capital
and income returns to shareholders, and negatively impacts on the Company's
reputation. By nature, smaller unquoted businesses, such as those that qualify
for venture capital trust purposes, are more fragile than larger, long
established businesses.
To reduce this risk, the Board places reliance upon the skills and expertise of
the Manager and its strong track record for investing in this segment of the
market. In addition, the Manager operates a formal and structured investment
process, which includes an Investment Committee, comprising investment
professionals from the Manager and at least one external investment
professional. The Manager also invites comments from non-executive Directors of
the Company on investments discussed at the Investment Committee meetings.
Investments are actively and regularly monitored by the Manager (investment
managers normally sit on investee company boards) and the Board receives
detailed reports on each investment as part of the Manager's report at quarterly
board meetings.

2. Venture Capital Trust approval risk
The Company's current approval as a venture capital trust allows investors to
take advantage of tax reliefs on initial investment and ongoing tax free capital
gains and dividend income. Failure to meet the qualifying requirements could
result in investors losing the tax relief on initial investment and loss of tax
relief on any tax-free income or capital gains received. In addition, failure to
meet the qualifying requirements could result in a loss of listing of the
shares.
To reduce this risk, the Board has appointed the Manager, who has a team with
significant experience in venture capital trust management, used to operating
within the requirements of the venture capital trust legislation. In addition,
to provide further formal reassurance, the Board has appointed Grant Thornton UK
LLP as its taxation advisors. Grant Thornton UK LLP report to the Board to
independently confirm compliance with the venture capital trust legislation, to
highlight areas of risk and to inform on changes in legislation.

3. Compliance risk
The Company is listed on The London Stock Exchange and is required to comply
with the rules of the UK Listing Authority, as well as with the Companies Act,
Accounting Standards and other legislation. Failure to comply with these
regulations could result in a delisting of the Company's shares, or other
penalties under the Companies Act or from financial reporting oversight bodies.
Board members and the Manager have experience of operating at senior levels
within quoted businesses. In addition, the Board and the Manager receive regular
updates on new regulation from its auditors, lawyers and other professional
bodies.

4. Internal control risk
Failures in key controls, within the Board or within the Manager's business,
could put assets of the Company at risk or result in reduced or inaccurate
information being passed to the Board or to shareholders.
The Audit Committee will meet with the Manager's internal auditors Littlejohn
LLP at least once a year, receiving a report regarding the last formal internal
audit performed on the Manager, and providing the opportunity for the Audit
Committee to ask specific and detailed questions. 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 24 of the Annual Report and Financial
Statements for the year ended 31 December 2010.  Measures are in place to
mitigate information risk in order to ensure the integrity, availability and
confidentiality of information used within the business.

5. Reliance upon third parties risk
The Company is reliant upon the services of Albion Ventures LLP for the
provision of investment management and administrative functions. There are
provisions within the management agreement for the change of Manager under
certain circumstances (for further detail, see the investment management
agreement details in note 4 of the Annual Report and Financial Statements for
the year ended 31 December 2010). In addition, the Manager has demonstrated to
the Board that there is no undue reliance placed upon any one individual within
Albion Ventures LLP.

6. Financial risks
By its nature, as a venture capital trust, the Company is exposed to investment
risk (which comprises investment price risk and cash flow interest rate risk),
credit risk and liquidity risk. The Company's policies for managing these risks
and its financial instruments are outlined in full in note 19 to the Annual
Report and Financial Statements for the year ended 31 December 2010.
All of the Company's income and expenditure is denominated in sterling and hence
the Company has no foreign currency risk. The Company is financed through equity
and does not have any borrowings. The Company does not use derivative financial
instruments.


13.        Other information
The information set out in this Half-yearly Financial Report does not constitute
the  Company's  statutory  accounts  within  the  terms  of  section  434 of the
Companies  Act 2006 for the periods ended  30 June 2011 and 30 June 2010, and is
unaudited.   The  information  for  the  year  ended  31 December  2010 does not
constitute  statutory accounts within the terms  of section 434 of the Companies
Act  2006 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.

14.        Publication
This  Half-yearly Financial Report is being sent to shareholders and copies will
be  made  available  to  the  public  at  the  registered office of the Company,
Companies   House,  the  National  Storage  Mechanism  and  also  electronically
atwww.albion-ventures.co.uk  under the 'Our Funds'  section by clicking on Kings
Arms  Yard VCT PLC, and  looking in the Financial  Reports and Circulars section
for the Half-yearly Financial Report to 30 June 2011.






Distribution of assets by sector at 30 June 2011: 


http://hugin.info/145558/R/1540235/470882.pdf




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Source: Kings Arms Yard VCT PLC via Thomson Reuters ONE

[HUG#1540235]