Proven Growth & Income VCT plc : Half-yearl...
ProVen Growth & Income VCT plc
Half-Yearly Report For the Six Months Ended 31 August 2011
Financial Summary
 31 Aug 28 Feb 31 Aug
2011 2011 2010
 Pence Pence Pence
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Ordinary Shares*
Net asset value per share ("NAV") 79.7 86.4 71.3
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Dividends paid** 4.5 - -
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Total return (NAV plus dividends paid since share class 84.2 86.4 71.3
merger)
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'D' Shares
Net asset value per share ("NAV") 89.9 90.0 91.9
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* Â The current Ordinary Shares were created in October 2009 from the merger of
Ordinary Shares issued in 2000/01 and 2001/02 and 'C' Shares issued in 2005/06.
Further issues of Ordinary Shares were made in 2009/10 and 2010/11.
** Â Dividends paid represents dividends paid since the Original Ordinary and C
Share classes were merged. Dividends of 146.9p per Original Ordinary Share and
9.6p per C Share were paid prior to the share classes merging.
Chairman's Statement
Introduction
The six months ended 31 August 2011 saw a period of high stock market volatility
which has renewed fears that economic recovery may be some way away. The Board
takes some reassurance from the performance of the Company's investment
portfolios over this period, which has resulted in both share pools experiencing
only small falls in net asset value per share.
Net asset values
Ordinary Shares
As at 31Â August 2011, the net asset value ("NAV") per Ordinary Share stood at
79.7p, a decrease of 2.2p per share or 2.6% since the year end (after adjusting
for the 4.5p dividend paid in the period).
'D' Shares
As at 31Â August 2011, the NAV per 'D' Share stood at 89.9p, a decrease of 0.1p
per share or 0.1% since the year end.
Fundraising
During the period, the Company continued to raise funds under its Ordinary Share
offer for subscription which opened on 10 December 2010. The offer has raised
gross funds of £9.6 million to date and is due to close on 31 October 2011.
Venture capital investments
Ordinary Share portfolio
During the period, the Ordinary Share pool made two follow-on investments at a
total cost of £333,000 and also realised the investment in Steak Media Limited,
producing a realised gain against original cost of £313,000.
The net effect of investment valuation movements over the period was an
unrealised loss of £764,000 alongside net realised gains of £209,000.
'D' Share portfolio
The 'D' Share pool completed one new and two follow-on investments at a total
cost of £330,000.
The net effect of investment valuation movements over the period was an
unrealised gain of £65,000.
Further details of the developments within the investment portfolios are
included in the Investment Manager's Report on pages 6 and 7.
Results and dividends
The Income Statement shows a loss on ordinary activities after taxation for the
Company during the period of £732,000 (£28,000 revenue profit and £760,000
capital loss). Details of how this is analysed between the share pools is shown
in the detailed Income Statement. No interim dividends will be paid in respect
of either class of shares.
Board changes
I announced at the Annual General Meeting on 24 August 2011 that Nicholas Lewis
had decided to step down as a non-executive director of the Company to focus on
his other business interests. Nick had been a director of the Company since its
launch in 2001 and, in that time, made a considerable contribution to the
Company. I, and my fellow directors, wish him well in his other ventures.
On the same date, I also announced the appointment of Natasha Christie-Miller
who has joined the Board as a new non-executive director. Natasha has an
extensive background in the media sector and brings an additional dynamic to the
Board. We welcome Natasha to the Board and look forward to working with her.
Share buybacks
The Company continues to have a policy of purchasing its own shares that become
available in the market in order to help provide liquidity to those shareholders
that need it. The Company has a current policy of purchasing Ordinary Shares at
a price equivalent to a 10% discount to the latest published NAV and at a 5%
discount in respect of 'D' Shares.
During the period, the Company purchased 523,808 Ordinary Shares at an average
price of 74.7p per share and 25,597 'D' Shares at an average price of 85.8p per
share. These shares were subsequently cancelled.
Dividend policy
I would like to thank Shareholders for the good level of response that the
Company received to the dividend survey that was sent out with the last Annual
Report. You may recall that the questionnaire sought views as to whether
Shareholders had a preference for maximised, but potentially irregular,
dividends or regular dividends of a consistent level and also how the management
of the NAV per share should impact on dividend policy.
The results indicated that Shareholders have mixed views in this area. The
Board has therefore given consideration to what policy might present a fair
approach for most Shareholders. The Board's initial conclusion has been that the
Company should seek to maximise dividends paid to Shareholders, but with the
caveat that we seek to gradually increase underlying NAV per share where
possible.
Risks and uncertainties
Under the Disclosure and Transparency Directive, the Board is required, in the
Company's half-yearly results, to report on principal risks and uncertainties
facing the Company over the remainder of the financial year.
The Board has concluded that the key risks facing the Company over the remainder
of the financial year are as follows:
i. investment risk associated with investing in small and immature businesses;
ii. investment risk arising from extremely volatile stock market conditions and
their potential effect on investment valuation; and
iii. failure to maintain approval as a VCT.
In the case of (i), the Board is satisfied with the Company's approach. The
Investment Manager follows a rigorous process in vetting and careful structuring
of new investments and, after an investment is made, close monitoring of the
business. In respect of (ii), the Company seeks to hold a diversified
portfolio. However, the Company's ability to manage this risk is quite limited,
primarily due to the restrictions arising from the VCT regulations and the
general nature of investing in small unquoted businesses.
The Company's compliance with the VCT regulations is continually monitored by
the Administrator, who reports regularly to the Board on the current position.
The Company also retains PricewaterhouseCoopers to provide regular reviews and
advice in this area. The Board considers that this approach reduces the risk of
a breach of the VCT regulations to a minimal level.
Going concern
The Company has considerable financial resources both at the period end and at
the date of this report, and holds a diversified portfolio of investments. As a
consequence, the Directors believe that the Company is well placed to manage its
business risks successfully despite the current uncertain economic outlook.
The Directors confirm that they are satisfied that the Company has adequate
resources to continue in business for the foreseeable future. For this reason,
they believe that the Company continues to be a going concern and that it is
appropriate to apply the going concern basis in preparing the financial
statements.
Outlook
The economic outlook for the UK remains uncertain, along with even greater
concerns within the Eurozone. Although these conditions do not support the
pursuit of profitable realisations, there remains a market for quality
businesses as the recent disposals of Saffron Media Group and Steak Media
demonstrate and, at this point in time the Board is satisfied that the portfolio
comprises a number of good quality businesses across a range of sectors which
have the potential to thrive even in the current environment.
As well as working closely with the existing portfolio, over the reminder of the
financial year the Manager will continue to devote substantial resources to new
investing activities as the task of building the 'D' Share portfolio progresses
and investing the new Ordinary Share pool funds gets underway.
Marc Vlessing
Chairman
27 October 2011
Investment Manager's Report
Introduction
We have pleasure in presenting our half-yearly report to 31 August 2011 for
ProVen Growth and Income VCT plc. Against a background of continuing stock
market volatility and challenging trading conditions, we continue to work with
existing portfolio companies to maximise shareholder value and to seek new
investment opportunities in areas where we believe that the broader economic
risks will be mitigated by strong market spend. A good example of the latter
area in recent years has been the investments made by the Company in new digital
technologies and related support services where there has been notable success.
Portfolio activity and valuation
Ordinary Share pool
At 31 August 2011, the Company's Ordinary Share portfolio comprised holdings in
22 companies, of which 18 were unquoted and 4 were quoted, at a valuation of
£13.7 million and original acquisition cost of £14.2 million. In addition, the
Ordinary Share pool held £13.6 million in cash and liquidity funds. The majority
of these liquid funds have followed from the recent successful fundraising and
we look forward to making further new investments in due course.
Further funding was provided to Overtis Group (£220,000) and Campden Media
(£113,000) during the period. The Company's holding in Steak Media was sold in
May 2011, which we reported in the 2011 Annual Report. In addition to the
initial profit on sale there is also deferred consideration dependent on future
performance which would result in further proceeds.
Within the existing portfolio, Espresso is the largest investment in value terms
accounting for 18% of the venture capital portfolio. The company continued to
perform strongly over the period. Fjordnet and Donatantonio are the other
investments which account for over 14% and 12% respectively each, by value, of
the portfolio. Both companies continue to perform well although their valuations
have been impacted by wider market comparable used in the valuation process.
'D' Share pool
At 31 August 2011, the Company's 'D' Share portfolio comprised 8 unquoted
holdings with a cost of £2.4 million and a valuation of £2.4 million. In
addition, the 'D' Share pool held £5.1 million in cash and liquidity funds.
The 'D' Share pool made a further new investment of £187,500, alongside ProVen
VCT plc and ProVen Health VCT plc, into APM Healthcare Limited ("APM") in
August. APM is seeking to establish a new chain of pharmacies and will
particularly focus on GP centre-based pharmacies, a fast growing segment in the
industry. The team is led by a very experienced founder and manager of pharmacy
chains. Â Further funding by ProVen Growth and Income VCT plc has been committed
to implement the rollout plan and will be drawn down against agreed milestones.
Much of the investment in the 'D' Share pool has occurred relatively recently
and, in accordance with established valuation guidelines, is valued at cost. We
have, however, uplifted the valuation of Tossed and made provisions against the
valuations of two portfolio companies.
Outlook
The UK economy continues to face a number of challenges as it seeks to balance
economic growth against the need to reduce the deficit. Conditions are
undoubtedly challenging for many of the portfolio companies but we are
encouraged by the overall performance of many of them.
The majority of the returns to the Company's shareholders will come from
portfolio company realisations and there will always be potential exit
opportunities for quality companies, not just from UK acquirers but also
internationally, as demonstrated by the recent disposals of Saffron Media to a
Tawianese company and Steak Media to a Japanese company. The key challenges for
us, as the investment manager, are identifying such businesses and then helping
nurture and develop them to the point where profitable realisations can be
achieved. We are confident in our ability to continue doing this and therefore
for the overall prospects for both share portfolios.
Beringea LLP
27 October 2011
Unaudited Balance Sheet
as at 31 August 2011
Company Total
 31 Aug 31 Aug 28 Feb
2011 2010 2011
 £'000 £'000 £'000
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Fixed assets
Investments 16,061 14,928 16,821
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Current assets
Debtors 241 92 361
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Current investments 2,500 2,500 2,500
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Cash at bank and in hand 16,156 7,695 10,133
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Creditors: amounts falling due within one year (287) (266) (1,574)
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Net current assets 18,610 10,021 11,420
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Net assets 34,671 24,949 28,241
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Capital and reserves
Called up share capital 636 477 472
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Capital redemption reserve 961 947 953
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Share premium account 17,418 8,418 8,466
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Special reserve 15,504 18,099 15,940
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Capital reserve - realised 1,389 (105) 2,679
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Revaluation reserve (545) (2,231) 257
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Revenue reserve (692) (656) (526)
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Equity shareholders' funds 34,671 24,949 28,241
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Net asset value per Ordinary Share: 79.7p 71.3p 86.4p
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Net asset value per 'D' Share: 89.9p 91.9p 90.0p
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Unaudited Balance Sheet
as at 31 August 2011
Ordinary Shares
 31 Aug 31 Aug 28 Feb
2011 2010 2011
 £'000 £'000 £'000
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Fixed assets
Investments 13,709 14,424 14,865
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Current assets
Debtors 223 87 345
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Current investments 1,250 1,250 1,250
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Cash at bank and in hand 12,313 1,844 5,851
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Creditors: amounts falling due within one year (232) (209) (1,512)
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Net current assets 13,554 2,972 5,934
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Net assets 27,263 17,396 20,799
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Capital and reserves
Called up share capital 554 395 390
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Capital redemption reserve 960 946 952
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Share premium account 9,633 681 681
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Special reserve 15,504 18,099 15,940
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Capital reserve - realised 1,625 21 2,860
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Revaluation reserve (520) (2,231) 347
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Revenue reserve (493) (515) (371)
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Equity shareholders' funds 27,263 17,396 20,799
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Net asset value per Ordinary Share 79.7p 71.3p 86.4p
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Unaudited Balance Sheet
as at 31 August 2011
'D' Shares
 31 Aug 31 Aug 28 Feb
2011 2010 2011
 £'000 £'000 £'000
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Fixed assets
Investments 2,352 504 1,956
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Current assets
Debtors 18 5 16
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Current investments 1,250 1,250 1,250
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Cash at bank and in hand 3,843 5,851 4,282
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Creditors: amounts falling due within one year (55) (57) (62)
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Net current assets 5,056 7,049 5,486
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Net assets 7,408 7,553 7,442
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Capital and reserves
Called up share capital 82 82 82
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Capital redemption reserve 1 1 1
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Share premium account 7,785 7,737 7,785
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Special reserve - - -
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Capital reserve - realised (236) (126) (181)
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Revaluation reserve (25) - (90)
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Revenue reserve (199) (141) (155)
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Equity shareholders' funds 7,408 7,553 7,442
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Net asset value per 'D' Share 89.9p 91.9p 90.0p
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Unaudited Income Statement
for the six months ended 31 August 2011
Company Total Six months ended Six months ended Year
 ended
31 Aug 2011 31 Aug 2010 Â 28 Feb
 2011
------------------------------------------------------
 Revenue Capital Total Revenue Capital Total Total
 £'000 £'000 £'000 £'000 £'000 £'000 £'000
--------------------------------------------------------------------------------
Income 279 - 279 164 - 164 517
--------------------------------------------------------------------------------
(Losses)/gains on - (490) (490) - (606) (606) 2,919
investments
--------------------------------------------------------------------------------
 279 (490) (211) 164 (606) (442) 3,436
--------------------------------------------------------------------------------
Investment management fee (89) (270) (359) (63) (190) (253) (525)
--------------------------------------------------------------------------------
Performance incentive fees - - - - - - -
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Other expenses (162) - (162) (108) - (108) (261)
--------------------------------------------------------------------------------
Return/(loss) on ordinary
activities before taxation 28 (760) (732) (7) (796) (803) 2,650
--------------------------------------------------------------------------------
Tax on ordinary activities - - - - - - -
--------------------------------------------------------------------------------
Return/(loss) attributable
to equity shareholders 28 (760) (732) (7) (796) (803) 2,650
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Basic and diluted return/
(loss) per Ordinary Share 0.2p (2.4p) (2.2p) 0.1p (3.0p) (2.9p) 11.9p
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Basic and diluted (loss)/
return per 'D' Share (0.3p) 0.1p (0.2p) (0.5p) (0.7p) (1.2p) (3.1p)
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Unaudited Income Statement
for the six months ended 31 August 2011
Analysed by share class:
Ordinary Shares Six months ended Six months ended Year
31 Aug 2011 Â 31 Aug 2010 Â ended
28 Feb
 2011
---------------------------------------------------
 Revenue Capital Total Revenue Capital Total Total
 £'000 £'000 £'000 £'000 £'000 £'000 £'000
--------------------------------------------------------------------------------
Income 240 - 240 151 - 151 466
--------------------------------------------------------------------------------
(Losses)/gains on investments - (555) (555) - (606) (606) 3,009
--------------------------------------------------------------------------------
 240 (555) (315) 151 (606) (455) 3,475
--------------------------------------------------------------------------------
Investment management fee (71) (215) (286) (44) (134) (178) (375)
--------------------------------------------------------------------------------
Performance incentive fees - - - - - - -
--------------------------------------------------------------------------------
Other expenses (119) - (119) (78) - (78) (199)
--------------------------------------------------------------------------------
Return/(loss) on ordinary
activities before taxation 50 (770) (720) 29 (740) (711) 2,901
--------------------------------------------------------------------------------
Tax on ordinary activities - - - - - - -
--------------------------------------------------------------------------------
Return/(loss) attributable to
equity shareholders 50 (770) (720) 29 (740) (711) 2,901
--------------------------------------------------------------------------------
'D' Shares
--------------------------------------------------------------------------------
Income 39 - 39 13 - 13 51
--------------------------------------------------------------------------------
Gains/(losses) on investments - 65 65 - - - (90)
--------------------------------------------------------------------------------
 39 65 104 13 - 13 (39)
--------------------------------------------------------------------------------
Investment management fee (18) (55) (73) (19) (56) (75) (150)
--------------------------------------------------------------------------------
Performance incentive fees - - - - - - -
--------------------------------------------------------------------------------
Other expenses (43) - (43) (30) - (30) (62)
--------------------------------------------------------------------------------
(Loss)/return on ordinary
activities before taxation (22) 10 (12) (36) (56) (92) (251)
--------------------------------------------------------------------------------
Tax on ordinary activities - - - - - - -
--------------------------------------------------------------------------------
(Loss)/return attributable to
equity shareholders (22) 10 (12) (36) (56) (92) (251)
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Reconciliation of Movements in Shareholders' Funds
for the six months ended 31 August 2011
 31 Aug 2011 31 Aug 28 Feb
 2010  2011
------------------------------------------
 Ordinary  'D'
 Shares Shares Total Total Total
 £'000  £'000  £'000 £'000 £'000
--------------------------------------------------------------------------------
Opening shareholders' funds 20,799 Â 7,442 Â 28,241 22,660 22,660
--------------------------------------------------------------------------------
Proceeds from share issues 9,652 Â - Â 9,652 3,486 3,537
--------------------------------------------------------------------------------
Share issue costs (528) Â - Â (528) (192) (195)
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Purchase of own shares (393) Â (22) Â (415) (202) (411)
--------------------------------------------------------------------------------
Total recognised (loss)/gain for the
year (720) (12) (732) (803) 2,650
--------------------------------------------------------------------------------
Distributions paid in the period (1,547) Â - Â (1,547) - -
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Closing shareholders' funds 27,263 Â 7,408 Â 34,671 24,949 28,241
--------------------------------------------------------------------------------
Unaudited Cash Flow Statement
for the six months ended 31 August 2011
  Six months Six months Year
ended ended  ended
31 Aug 31 Aug 28 Feb
2011 2010 2011
 Note £'000 £'000 £'000
--------------------------------------------------------------------------------
Net cash (outflow)/inflow from operating A
activities (302) (140) 827
--------------------------------------------------------------------------------
Capital expenditure
Purchase of investments  (663) (993) (3,061)
--------------------------------------------------------------------------------
Disposal of investments  976 729 4,429
--------------------------------------------------------------------------------
Net cash inflow/(outflow) from capital  313 (264) 1,368
expenditure
--------------------------------------------------------------------------------
Equity distributions paid  (1,547) - -
--------------------------------------------------------------------------------
Management of liquid resources
Purchase of current investments held as liquidity - - -
funds
--------------------------------------------------------------------------------
Withdrawal from liquidity funds  - - -
--------------------------------------------------------------------------------
Net cash inflow from liquid resources  - - -
--------------------------------------------------------------------------------
Net cash (outfow)/inflow before financing  (1,536) (404) 2,195
--------------------------------------------------------------------------------
Financing
Proceeds from share issue  8,373 3,486 3,537
--------------------------------------------------------------------------------
Share issue costs  (528) (192) (195)
--------------------------------------------------------------------------------
Purchase of own shares  (286) (202) (411)
--------------------------------------------------------------------------------
Net cash inflow from financing  7,559 3,092 2,931
--------------------------------------------------------------------------------
Increase in cash B 6,023 2,688 5,126
--------------------------------------------------------------------------------
Notes to the cash flow statement:
A Net cash flow from operating activities
(Loss)/return on ordinary activities before  (732) (803) 2,650
taxation
--------------------------------------------------------------------------------
Gains /(losses) on investments  490 606 (2,919)
--------------------------------------------------------------------------------
(Increase)/decrease in debtors  (51) 877 608
--------------------------------------------------------------------------------
(Decrease)/increase in creditors  (9) (820) 488
--------------------------------------------------------------------------------
Net cash (outflow)/inflow from operating  (302) (140) 827
activities
--------------------------------------------------------------------------------
B Analysis of net funds
Beginning of period  10,133 5,007 5,007
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Net cash inflow  6,023 2,688 5,126
--------------------------------------------------------------------------------
End of period  16,156 7,695 10,133
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Summary of Investment Portfolio
as at 31 August 2011
 Valuation
  movement % of
 in the portfolio
Ordinary Share pool Cost Valuation  period by value
 £'000 £'000 £'000
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Top ten venture capital investments (by
value)
Espresso Group Limited 1,582 2,407 61 8.8%
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Fjordnet Limited 1,400 1,949 (474) 7.2%
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Donatantonio Limited 1,366 1,689 (21) 6.2%
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Charterhouse Leisure Limited 1,000 931 (39) 3.4%
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Lazurite Limited 1,000 919 (11) 3.4%
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Prelude Media Limited 1,000 910 (16) 3.3%
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Chess Technologies Limited 900 842 160 3.1%
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SPC International Limited 625 827 6 3.0%
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Eagle Rock Entertainment Group Limited 680 818 (90) 3.0%
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Campden Media Limited 757 698 - 2.6%
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 10,310 11,990 (424) 44.0%
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Other venture capital investments 3,919 1,719 (340) 6.3%
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 14,229 13,709 (764) 50.3%
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Liquidity fund investments  1,250  4.6%
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Cash at bank and in hand  12,313  45.1%
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Ordinary Share pool total  27,272  100.0%
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'D' Share pool
 £'000 £'000 £'000
--------------------------------------------------------------------------------
Venture capital investments (by value)
Tossed Limited 624 751 127 10.1%
--------------------------------------------------------------------------------
MatsSoft Limited 650 650 - 8.7%
--------------------------------------------------------------------------------
Celebrus Technologies Limited 295 295 - 4.0%
--------------------------------------------------------------------------------
APM Healthcare Limited 187 187 - 2.5%
--------------------------------------------------------------------------------
Monica Vinader Limited 138 138 - 1.9%
--------------------------------------------------------------------------------
Fjordnet Limited 276 135 (51) 1.8%
--------------------------------------------------------------------------------
SenseLogix Limited 92 92 - 1.2%
--------------------------------------------------------------------------------
Cinergy International Limited 115 104 (11) 1.4%
--------------------------------------------------------------------------------
 2,377 2,352 65 31.6%
--------------------------------------------------------------------------------
Liquidity fund investments  1,250  16.8%
--------------------------------------------------------------------------------
Cash at bank and in hand  3,843  51.6%
--------------------------------------------------------------------------------
'D' Share pool total  7,445  100.0%
--------------------------------------------------------------------------------
Other venture capital investments in the Ordinary Share pool at 31 August 2011
comprise: Ashford Colour Press Limited, BreezeTech Ltd, Coolabi plc, Dianomi
Ltd, Immedia, Isango! Ltd, MatsSoft Ltd, Overtis Group Ltd, Pilat Media Global
plc, Sports Holdings Limited, Steak Media Ltd, Baby Innovations t/a Steribottle
and UBC Media plc.
With the exclusion of Pilat Media Global plc, UBC Media Group plc and Coolabi
plc which are quoted on AIM, all venture capital investments are unquoted.
Summary of Investment Movements
for the six months ended 31 August 2011
Additions Cost
 £'000
--------------------------------
Ordinary Share pool
Overtis Group Limited 220
--------------------------------
Campden Media Limited 113
--------------------------------
 333
--------------------------------
'D' Share pool
APM Healthcare Limited 187
--------------------------------
Tossed Limited 120
--------------------------------
SenseLogix Limited 23
--------------------------------
 330
--------------------------------
Disposals
Market
 value at Realised
 1 March Disposal Gain  gain
 Cost  2011*  Proceeds  against cost in period
 £'000 £'000  £'000  £'000  £'000
---------------------------------------------------------------------
Ordinary Share pool
Steak Media Limited 621 725 934 313 209
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No disposals were made by the 'D' Share pool in the period.
* Adjusted for investments made since 1 March 2011
Notes to the Unaudited Financial Statements
1. The unaudited half-yearly results cover the six months to 31 August 2011 and
have been prepared in accordance with UK Generally Accepted Accounting Practice
("UK GAAP"). Where presentational guidance set out in the Statement of
Recommended Practice "Financial Statements of Investment Trust Companies"
revised January 2009 ("SORP") is consistent with the requirements of UK GAAP,
the directors have sought to prepare the financial statements on a consistent
basis compliant with the recommendations of the SORP.
2. All revenue and capital items in the Income Statement derive from continuing
operations.
3. There are no recognised gains or losses other than those disclosed in the
Income Statement.
4. The Company has only one class of business and derives its income from
investments made in shares, securities and bank deposits.
5. The comparative figures were in respect of the period ended 31 August 2010
and the year ended 28 February 2011.
6. Return per share for the period has been calculated on the following:
Ordinary
 Shares 'D' Shares
------------------------------
Revenue return per share based on:
Net revenue profit/(loss) after taxation (£'000) 50  (22)
--------------------------------------------------------------------------------
Weighted average number of shares in issue 32,471,861 8,252,394
--------------------------------------------------------------------------------
Capital return per share based on:
Net capital (loss)/gain after taxation (£'000) (770)  10
--------------------------------------------------------------------------------
Weighted average number of shares in issue 32,471,861 8,252,394
--------------------------------------------------------------------------------
7. NAV per share for the period has been calculated on the following:
Ordinary
 Shares  'D' Shares
------------------------------
Net Assets (£'000) 27,263  7,408
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Number of shares in issue at period end 34,205,940 Â 8,244,314
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8. Dividends
 Six months to  Six months to  28 Feb
31 Aug 2011 31 Aug 2010 Â 2011
-------------------------------- ----------------------- -------
 Revenue Capital Total  Revenue Capital Total  Total
 £'000 £'000 £'000  £'000 £'000 £'000  £'000
-----------------------------------------------------------------
Ordinary Share dividends paid in
period
2011 172 1,375 1,547 Â - - - Â -
Interim
-----------------------------------------------------------------
No dividends have been paid in respect of the 'D' Shares to date.
9. Reserves
 Capital Share  Capital
redemption premium Special reserve Revaluation Revenue
reserve account  reserve - realised  reserve  reserve
 £'000 £'000 £'000 £'000 £'000 £'000
--------------------------------------------------------------------------------
At 1 March 2011 953 8,466 15,940 2,679 257 (526)
--------------------------------------------------------------------------------
Purchase of own shares 8 - (393) - - (22)
--------------------------------------------------------------------------------
Issue of new shares - 8,952 - - - -
--------------------------------------------------------------------------------
Expenses capitalised - - - (270) - -
--------------------------------------------------------------------------------
Tax relief on capital
expenses - - - - - -
--------------------------------------------------------------------------------
Gains/(losses) on - - - 209 (699) -
investments
--------------------------------------------------------------------------------
Retained revenue - - - - - 28
--------------------------------------------------------------------------------
Transfer between reserves - - (43) 146 (103) -
--------------------------------------------------------------------------------
Distributions paid - - - (1,375) - (172)
--------------------------------------------------------------------------------
At 31 August 2011 961 17,418 15,504 1,389 (545) (692)
--------------------------------------------------------------------------------
10. Contingent liabilities, guarantees and financial commitments
The Company has guaranteed bank borrowings of one of its investments,
Donatantonio Limited, amounting to £225,000. A third party has provided a
guarantee to the Company amounting to £112,500 in respect of the above guarantee
such that the Company's net exposure is £112,500.
Apart from the above, the Company has no contingent liabilities, guarantees and
financial commitments.
11. The unaudited financial statements set out herein do not constitute
statutory accounts within the meaning of Section 434 of the Companies Act 2006
and have not been delivered to the Registrar of Companies. The figures for the
year ended 28 February 2011 have been extracted from the financial statements
for that year, which have been delivered to the Registrar of Companies; the
auditors' report on those financial statements was unqualified.
12. The Directors confirm that, to the best of their knowledge, the half-yearly
financial statements have been prepared in accordance with the "Statement: Half-
Yearly Financial Reports" issued by the UK Accounting Standards Board and the
half-yearly financial report includes a fair review of the information required
by:
a. DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of
important events that have occurred during the first six months of the financial
year and their impact on the condensed set of financial statements, and a
description of the principal risks and uncertainties for the remaining six
months of the year; and
b. DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during that period, and any changes in the related
party transactions described in the last annual report that could do so.
13. Copies of the unaudited half-yearly results will be sent to Shareholders.
Further copies can be obtained from the Company's Registered Office and will be
available for download from www.provenvcts.com and www.downing.co.uk.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Proven Growth & Income VCT plc via Thomson Reuters ONE
[HUG#1558952]
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