Final Results

Final Results

NEW CENTURY AIM VCT PLC

 

New Century AIM VCT plc - Report and Accounts for the year to 28 ^th February 2019

Financial Summary	1
Chairman's Statement	2
Details of Directors	3
Management and Administration	4
Directors	5
Strategic Report	6
Investment Portfolio	8
Top Ten Investments	12
Directors' Report	13
Directors’ Remuneration Report	16
Corporate Governance	18
Independent Auditors' Report	22
Statement of Comprehensive Income	27
Balance Sheet	28
Statement of Changes in Equity	29
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Cash Flow Statement	30
Notes to the Financial Statements	31
Shareholder Information	41

Financial Summary

    Â	Year ended 28 February 2019	Year ended 29 February 2018
  Revenue return per share (pence) for the year	0.48	0.35
  Total return per share (pence) for the year	(16.01)	7.14
  Proposed dividends per share (pence)	3.50	3.40
  Net asset value per share (pence)	68.81	88.22
  Cumulative value of shareholder investment (net asset value plus cumulative dividends per share) (pence)	92.63	108.64
  Shareholders’ funds (£’000)	5,408	6,935

It has proved to be a difficult year for your fund where we have seen the net asset value per share fall from 88.22p to 68.81p, a fall of 22%, and the net asset value plus cumulative dividends fell from 108.64p to 92.63p per share being a decline of 14.74%. This is compared to a fall in the FTSE AllShare AIM index of 12.47%.

Although the decline in net asset value is disappointing, we still realise the importance of income for our shareholders, and have therefore agreed subject to shareholder approval, to increase the dividend to 3.5p, and at the current offer price of 76p, the yield is 4.6%.

The level of qualifying investments at 91.67% is still comfortably above the 70% required level for the accounting year end, and above the 80% level that is required from April 2019.

The Markets certainly proved to be turbulent from September 2018 through to the end of the year where the AllShare AIM index fell by 23.9% from its high in September to its low in December. Although political events such as the trade war tensions between the USA and China, and the ongoing negotiations of BREXIT were prevalent before this time, the Market became more unsettled from the summer and we witnessed widespread declines in share prices irrespective of the size of the Company. We continue to monitor and meet our investments, and we are generally happy that the Companies continue to trade well, although this has not necessarily been reflected in their current share price.

We are continuing to see new opportunities for investment which bodes well for the fund and there has been a gradual improvement in sentiment since the start of the year although we expect volatility to continue in the months ahead. We are cautiously optimistic for the year ahead.

The markets appear to be stabilising to some degree as the net asset value at the end of May 2019 had recovered slightly to 71.61p.

Geoffrey Gamble

Chairman

27 June 2019

Details of Directors

Michael Barnard (Aged 68)

Michael has been employed in stockbroking since 1971. In 1974 he became a Member of the Stock Exchange. During his career his duties have spanned investment advising, investment research, dealing and company management. In 1988 he started his own stockbroking company, M D Barnard & Company Limited. Based in Laindon, Essex, it has offices in London and Wells. Since 1995, he has been either managing or advising unit trust, private client and pension company portfolios. Michael sold MD Barnard & Company Limited on 30 November 2017, but remains a director of New Century AIM VCT plc.

Geoffrey Gamble (Aged 60)

Geoffrey started his career with National Westminster Bank plc. He joined Publishing Holdings plc in 1984 and became a director in 1986. He took part in an MBO in 1988, backed by Schroder Ventures (now Permira) to form Charterhouse Communications Group Limited and was instrumental in the satisfactory venture capital exit from that company and its flotation on AIM in 1996. He became managing director of Charterhouse Communications plc in 1999.

Peter William Riley (Aged 74)

Peter qualified as a solicitor in 1969. He retired from practice in 2018.

Ian Cameron-Mowat (Aged 68)

Ian has a BSc 1st degree in electronics and was involved in the early development of computers at Burroughs Machines. He is currently a consultant radiologist to a NHS Trust.

Management and Administration

  Registered Office & Registered Number   Â	  4th Floor, 50 Mark Lane London EC3R 7QR Company Number: 05352611 Â
  Company Secretary   Â	  Tricor Secretaries Limited 4th Floor, 50 Mark Lane London EC3R 7QR Â
  Registrar   Â	  Neville Registrars Limited Neville House Steelpark Road Halesowen West Midlands B62 8HD Â
  Solicitors   Â	  Dundas & Wilson 5th Floor, Northwest Wing Bush House Aldwych London WC2B 4EZ Â
  Investment Manager and Broker   Â	  M D Barnard & Company Limited 1st Floor 12 Hornsby Square Southfields Business Park Basildon Essex SS15 5AD Â
  Auditor   Â	  UHY Hacker Young LLP Quadrant House 4 Thomas More Square London E1W 1YW   Â

Directors

Geoffrey Gamble (Chairman)

Michael David Barnard

Peter William Riley

Ian Cameron-Mowat

All directors are non-executive.

Audit Committee:

Geoffrey Gamble (Chairman)

Peter William Riley

Ian Cameron-Mowat

Strategic Report

Activities and status

The principal activity of the company during the year was the making of long-term equity and loan investments in UK Listed, AIM traded and unquoted companies in the United Kingdom. The company has been listed on the London Stock Exchange since 25 March 2005 and has been granted approval by Her Majesty’s Customs & Revenue as a Venture Capital Trust. The Chairman’s Statement on page 2 and the Investment Manager’s Review below give a review of developments during the year and of future prospects.

The directors consider that the company was not at any time up to the date of this report a close company within the meaning of Section 414 of the Act.

Investment Manager’s Review

It proved to be a tough year for the fund as its net asset value per share declined by 22% and the net asset value plus cumulative dividends fell by 14.74%, compared to a fall on the AIM index of 12.47%. The value of the fund held up reasonably well until the summer, but as Markets started to become volatile and started to head lower, the net asset value of the fund declined throughout the second half of the year.

We made 11 qualifying investments, purchasing Access Intelligence, Audioboom, Falanx, Forbidden Technologies, Immotion, I-nexus Global, Location Sciences, Medaphor Group which has now changed its name to Intelligent Ultrasound Group, Microsaic Systems, Polarean and Scancell.

We sold or top sliced 13 shares.

Although the performance in the period has been disappointing, we remain cautiously optimistic in the current year even though there will probably be more volatility in the months ahead due to political events at home and abroad. We remain in touch with our investments and we are happy that the fund has a well diversified portfolio of businesses from many different industry sectors to help spread the risk. We witnessed some large falls across certain shares in the period but we do not believe these falls were as a result of the underlying performance of the Companies, but more of a case of a nervous Stock Market in the period.

We are currently seeing a good mix of new investment opportunities which is encouraging and the markets appear to be stabilising to some degree as the net asset value at the end of May 2019 had recovered slightly to 71.61p.

Investment Objective

New Century AIM VCT PLC is a Venture Capital Trust (“VCT”) established under the legislation introduced in the Finance Act 1995. The company’s principal objectives as set out in the prospectus are to achieve long term capital growth through investment in a diversified portfolio of Qualifying Companies primarily quoted on AIM.

Principal risks and uncertainties

The company invests its funds primarily in companies traded on AIM, which entail a higher degree of risk than investments in large listed companies. The main risk, therefore, arising from the company’s activities is market price risk, representing the uncertain realisable values of the company’s investments. Please refer to note 22 to these financial statements which gives a detailed review of the company’s risk management.

Environmental matters

Discussion in respect of environmental matters is not considered relevant or material to an understanding of the performance of the company. The company does not consider that Greenhouse Gas Emissions disclosure is relevant to the company on the grounds of immateriality due to its not having its own premises or employees.

Key performance indicators

The financial key performance indicators are set out in the financial summary on page 1.

Viability Statement

In accordance with provision C.2.2 of The UK Corporate Governance Code 2014 the Directors have assessed the prospects of the Company over a longer period than the 12 months required by the “Going Concern” provision.

The Board regularly considers the Company’s strategy, including investor demand for the Company’s shares, and a three year period is therefore considered to be an appropriate and reasonable time horizon.

The Board has carried out a robust assessment of the principal risks facing the Company and its

current position, including those which may adversely impact its business model, future performance, solvency or liquidity. The principal risks faced by the Company and the procedures in place to monitor and mitigate them are set out in note 22.

The Board has also considered the Company’s cash flow projections and found these to be realistic and reasonable.

Based on the above assessment the Board confirms that it has a reasonable expectation that the

Company will be able to continue in operation and meet its liabilities as they fall due over the three year period to 28 February 2022.

Geoffrey Gamble

Chairman

27 June 2019

Investment Portfolio

Security	Cost	Valuation	%	%
	£	28/02/2019 - £	Cost	Valuation
Qualifying Investments	6,213,726	4,983,102	90.61	91.21
Non-qualifying Investments	570,260	406,881	8.32	7.44
	6,783,986	5,389,983	98.93	98.65
Uninvested funds	73,544	73,544	1.07	1.35
	6,857,530	5,463,527	100	100
Qualifying Investments
AIM quoted
Tristel plc	69,244	505,590	1.01	9.26
PHSC plc	182,910	35,000	2.67	0.64
DCD Media plc	562,800	2,975	8.21	0.06
K3 Business Technology Group plc	90,360	221,778	1.32	4.06
Touchstar plc	281,400	43,750	4.1	0.8
Lighthouse Group plc	128,891	228,000	1.88	4.17
Vianet Group plc	40,175	39,000	0.59	0.71
HML Holdings plc	266,497	310,200	3.89	5.68
Cyanconnode Holdings plc	376,755	42,794	5.49	0.78
Marechale Capital plc	133,828	18,550	1.95	0.34
M.Winkworth plc	64,320	86,400	0.94	1.58
Bango plc	7,563	15,925	0.11	0.29
IDE Group Holdings plc	52,763	1,312	0.77	0.02
TP Group plc	109,278	45,664	1.59	0.84
Brady plc	41,805	41,595	0.61	0.76
Inspired Energy plc	51,370	286,495	0.75	5.25
Microsaic Systems plc	164,417	40,654	2.4	0.75
Venn Life Sciences plc	115,581	14,395	1.69	0.26
DP Poland plc	20,113	12,406	0.29	0.23
Modern Water plc	75,382	20,945	1.1	0.38
Quixant plc	6,935	45,300	0.1	0.83
Maistro plc	4,991	46	0.07	0
Keywords Studios plc	6,181	55,700	0.09	1.02
Cloudbuy plc	58,483	4,277	0.85	0.08
EU Supply plc	15,333	6,750	0.22	0.12
Synnovia plc	30,153	30,000	0.44	0.55
Sysgroup plc	99,177	64,136	1.45	1.17
Brighton Pier Group plc	50,253	14,063	0.73	0.26
Property Franchise Group plc	100,503	120,000	1.47	2.2
Solid State plc	40,134	67,650	0.59	1.24
Audioboom Group plc	178,406	144,000	2.6	2.64
Scholium Group plc	50,253	20,000	0.73	0.37
Rosslyn Data plc	27,037	5,706	0.39	0.1
Coral Products plc	118,095	95,833	1.72	1.75
SRT Marine Systems plc	27,139	47,250	0.4	0.86
ULS Technology plc	52,261	85,800	0.76	1.57
Collagen Solutions plc	20,757	11,505	0.3	0.21
Gfinity plc	43,925	12,500	0.64	0.23
Ideagen plc	28,430	106,487	0.41	1.95
Premier Technical Services Group plc	99,607	232,525	1.45	4.26
Angle plc	125,880	104,054	1.84	1.9
Bilby plc	156,673	169,324	2.28	3.1
Hunters Property plc	251,256	205,000	3.66	3.75
Bigblu Broadband plc	239,452	360,021	3.49	6.59
Tekcapital plc	157,671	44,250	2.3	0.81
Falanx Group Ltd	105,736	49,811	1.54	0.91
Gear4Music Holdings lc	27,121	36,887	0.4	0.68
Yourgene Health plc	69,349	41,400	1.01	0.76
Belvoir Lettings plc	23,320	19,400	0.34	0.36
Photonstar LED group plc	35,179	0	0.51	0
Yu Group plc	27,893	17,250	0.41	0.32
Maxcyte Inc	25,128	62,500	0.37	1.14
Scancell Holdings plc	130,618	66,442	1.9	1.22
Intelligent Ultrasound Group plc	100,492	32,245	1.47	0.59
Faron Pharmaceuticals Ltd	30,153	7,320	0.44	0.13
Cloudcall Group plc	20,230	37,800	0.29	0.69
Creo Medical Group plc	30,053	79,471	0.44	1.45
Anglo African Oil & Gas plc	45,229	22,500	0.66	0.41
Escape Hunt plc	31,006	16,452	0.45	0.3
Location Sciences Group plc	72,642	61,089	1.06	1.12
Fusion Antibodies plc	22,114	7,781	0.32	0.14
Pelatro plc	25,128	32,800	0.37	0.6
Polarean Imaaging plc	30,154	34,000	0.44	0.62
Access Intelligence plc	10,053	14,250	0.15	0.26
Forbidden Technologies plc	100,504	140,000	1.47	2.56
I-Nexus Global plc	70,353	31,899	1.03	0.58
Immotion Group plc	80,407	60,000	1.17	1.1
N4 Pharma plc	60,304	46,200	0.88	0.85
				Â
Total AIM quoted investments	5,997,603	4,983,102	84.76	91.21
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Unlisted Investments
Syqic plc	19,943	0	0.29	0
Outsourcery plc	45,027	0	0.66	0
Invocas plc	100,400	0	1.46	0
Optare plc	50,753	0	0.74	0
Total Unlisted investments	216,123	0	3.15	0
				Â
Total Qualifying Investments	6,213,726	4,983,102	90.61	91.21
				Â
Non-qualifying Investments
AIM quoted
Sanderson Group plc	37,008	93,000	0.54	1.7
Rotala plc	60,796	82,500	0.89	1.51
Tristel plc	60	285	0	0.01
K3 Business Technology Group plc	131	222	0	0
Bango plc	291	182	0	0
IDE Group Holdings plc	218	2	0	0
Brady plc	106	59	0	0
Cyanconnode Holdings plc	131	7	0	0
Driver Group plc	8,992	7,100	0.13	0.13
Audioboom Group plc	1,163	200	0.02	0
Be Heard Group plc	18,186	5,000	0.27	0.09
Gateley Holdings plc	14,627	23,700	0.21	0.43
Yolo Leisure and Tech plc	22,367	4,375	0.33	0.08
				Â
	164,076	216,632	2.39	3.95
				Â
				Â
UK Listed
Investec plc	202,822	110,500	2.96	2.02
Aviva plc	22,268	21,150	0.32	0.39
Imperial Brands plc	23,763	25,100	0.35	0.46
Greene King plc	9,964	8,250	0.15	0.15
Centrica plc	10,074	3,720	0.15	0.07
Twentyfour Income Fund Ltd	9,852	9,100	0.14	0.17
Vodafone Group plc	20,590	12,429	0.3	0.23
				Â
	299,333	190,249	4.37	3.49
				Â
Unlisted Investments
China Food Co plc	65,969	0	0.96	0
Gable Holdings Inc	12,112	0	0.18	0
Sorbic International plc	18,717	0	0.27	0
Mar City plc	10,053	0	0.15	0
				Â
	106,851	0	1.56	0
				Â
Total non-qualifying investments	570,260	406,881	8.32	7.44
				Â
Tristel plc	69,304	505,875	1.01	9.27
				Â
Bigblu Broadband plc	239,452	360,021	3.49	6.59
				Â
HML Holdings plc	266,497	310,200	3.89	5.68
				Â
Inspired Energy plc	51,370	286,495	0.75	5.25
				Â
Premier Technical Services Group plc	99,607	232,525	1.45	4.26
				Â
Lighthouse Group plc	128,891	228,000	1.88	4.17
				Â
K3 Business Technology Group plc	90,491	222,000	1.32	4.06
				Â
Hunters Property plc	251,256	205,000	3.66	3.75
				Â
Bilby plc	156,673	169,324	2.28	3.1
				Â
Audioboom Group plc	179,569	144,200	2.6	2.64

The investments tabulated above are expressed as a percentage of the company’s investment portfolio including uninvested cash.

Directors’ Report

The directors present their report and the audited financial statements for the year to 28 February 2019.

Results and dividend

Â	Year to 28 February 2019		Year to 29 February 2018
Â	Revenue	Capital	Revenue	Capital
Â	£’000	£’000	£’000	£’000
  Return on ordinary activities after taxation	37	(1,297)	28	533
Â	Â	Â	Â	Â
Appropriated as follows:	Â	Â	Â	Â
Â	Â	Â	Â	Â
Interim dividend paid	Â	Â	Â	Â
Â	Â	Â	Â	Â
Revenue – nil p	-	-	-	-
Â	Â	Â	Â	Â
Capital – nil p	-	-	-	-
Â	Â	Â	Â	Â
Final dividend paid in respect of prior period	Â	Â	Â	Â
Revenue – 0.355p (0.55p) per share	(37)	-	(28)	-
Capital – 3.045p (2.75p) per share	-	(230)	-	(231)
Â	Â	Â	Â	Â
Â	Â	Â	Â	Â
Transfers to reserves	-	(1,527)	-	302
Â	Â	Â	Â	Â

The directors propose a final revenue dividend of 0.475p per share and a final capital dividend of 3.025p per share for the year ended 28 February 2019 to be paid on 6 September 2019 to shareholders on the register at 9 August 2019.

Directors

The Directors of the Company are required to notify their interests under Disclosure and Transparency Rule 3.12R. The membership of the Board and their beneficial interests in the ordinary shares of the company are set out below:

Â	Year ended 28 February 2019	Year ended 29 February 2018 Â
  Michael Barnard Geoffrey Gamble Peter William Riley Ian Cameron-Mowat	  1,910,209 61,732 59,185 107,904	  1,877,382 61,732 59,185 107,904
Â	Â	Â

All of the directors’ share interests shown above are held beneficially. Michael Barnard purchased an additional 8,800 and 32,568 shares on 22 March 2019 and 2 April 2019 respectively. There have been no other changes in the directors’ share interests between 28 February 2019 and the date of this report.

Brief biographical notes on the directors are given on page 3. The director, retiring in accordance with the company’s Articles of Association, is Mr Barnard, who being eligible will offer himself for re-election at the forthcoming annual general meeting. The directors believe his experience in small companies is a great benefit to the Board and recommend his re-election.

None of the directors has a contract of service with the company and, except as mentioned below under the heading “Management”, there were no contracts that subsisted during the year in which a director was materially interested and which was significant in relation to the company’s business.

Management

M D Barnard & Company Limited has acted as investment manager to the company since inception. The principal terms of the Investment Management Agreement are set out in Note 6 to the Financial Statements.

Substantial shareholdings

As at 28 February 2019 the company had been notified of the following shareholdings representing 3 per cent or more of the company’s issued share capital during the year under review or at the date of this report:

	Number	Percentage
		of share capital
		Â
Michael Barnard	1,910,209	24.30%
Geoffrey Williams	391,570	4.98%
Nigel Shanks	364,820	4.64%
David Trotman	324,000	4.12%
John Brice	290,988	3.70%
Roger Carey	241,048	3.07%
		Â

Acquisition of own shares

During the year the company did not re-purchase any of its ordinary shares.

Structure of the company’s capital

The company only has one class of ordinary share and each share has attached to them full voting rights, dividends and capital distribution rights (including on a winding up) and do not confer any rights of redemption. No securities exist carrying special rights with regard to the control of the company.

Any amendment to the company’s articles must be approved by the board of directors and subsequently confirmed by shareholders.

The directors have the authority to issue and buy back shares subject to such being, in their opinion, in the interests of the shareholders generally.

Appointment of Directors

The Directors are subject to re-election with one third of the Directors being re-elected annually at the AGM.

Creditor payment policy

The company’s payment policy is to agree terms of payment before business is transacted and to settle accounts in accordance with those terms. The company’s principal expenses such as investment management fees and administration fees are paid quarterly in arrears in accordance with the respective agreements. Accordingly the company had no material trade creditors at the year end.

Post balance sheet events

Details of the post balance sheet events are set out in note 27.

Auditors

In accordance with Section 485 of the Companies Act 2006, a resolution proposing that UHY Hacker Young LLP be reappointed as auditors of the company and that the Directors be authorised to determine their remuneration will be put to the next Annual General Meeting.

Statement of disclosure to auditors

So far as the directors are aware:

1. there is no relevant audit information of which the Company’s auditors are unaware; and

2. the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

By Order of the Board

Geoffrey Gamble

Chairman

27 June 2019

Directors’ Remuneration Report

The Board has prepared this report in accordance with the requirements of the Companies Act 2006. A resolution to approve this report will be put to the members at the Annual General Meeting to be held on 14 August 2019.

Directors’ remuneration policy

The company does not have any executive directors and, as permitted under the Listing Rules, has not, therefore, established a remuneration committee. Directors, with the exception of the chairman, do not receive any remuneration or fees.

The directors shall be paid by the company all travel, hotel and other expenses they may incur in attending meetings of the directors or general meetings or otherwise in connection with the discharge of their duties. Any director who, by request of the directors, performs special services may be paid such extra remuneration as the directors may determine.

Directors’ remuneration (audited)

None of the Directors received any remuneration from the company during the year under review, with the exception of the chairman, who received a fee of £5,000 (2018: £5,000). No other emoluments or pension contributions were paid by the company to, or on behalf of, any director. None of the directors has a service contract with the company. It is expected that, with the exception of the chairman, the directors will continue not to receive any remuneration for their services in the forthcoming years.

Performance

The directors consider that the most appropriate measure of the company’s performance is its Cumulative Value of Shareholder Investment (net asset value plus cumulative dividends). The company’s Cumulative Value of Shareholder Investment at 28 February 2019 and 28 February 2018 are set out in the Financial Summary on page 1.

Total shareholder return

The above graph (omitted) shows the company’s total shareholder return compared to that of the FTSE AIM All Index total return for the period since listing on the London Stock Exchange.

By Order of the Board

Geoffrey Gamble

Chairman

27 June 2019

Corporate Governance

The directors support the relevant principles of the UK Corporate Governance Code issued in April 2016 by the Financial Reporting Council, being the principles of good governance and the code of best practice as set out in the Main Principles of the Code annexed to the Listing Rules of the Financial Conduct Authority.

The UK Corporate Governance Code (‘the UK Code’) is available at the following location:

www.frc.org.uk/corporate/ukcgcode.cfm

Going concern

Bearing in mind that the assets of the company consist mainly of marketable securities, the directors are of the opinion that at the time of approving the financial statements, the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

The Board

The company is led and controlled by a Board of directors who are all non-executives. The Chairman is Geoffrey Gamble. Biographical details of all Board members are shown on page 3.

One third of the Directors are subject to re-election at each AGM by rotation.

During the year the following were held:

2 full board meetings	3 Audit Committee meetings
All directors attended the meetings.	All members attended with the exception of Mr Cameron-Mowat on one occasion.

Whilst only Mr Gamble had been a director of a quoted company, all directors had relevant experience with quoted companies prior to their appointment and it was therefore not thought necessary to provide further training in respect of their obligations and duties.

The Board has also established procedures whereby directors wishing to do so in the furtherance of their duties may take independent professional advice at the company’s expense.

All directors have access to the advice and services of the Company Secretary. The Company Secretary provides the Board with full information on the company’s assets and liabilities and other relevant information requested by the Chairman, in advance of each Board meeting.

The Board believes that it presents a balanced and understandable assessment of the company’s position and prospects. The Audit Committee meets at least once a year. Under the chairmanship of a non-executive director, its membership comprises all the non-executive directors apart from Michael Barnard. During the year the Audit Committee was chaired by Mr Gamble. The Audit Committee reviews the financial statements and is reported to by the external auditors. The Audit Committee did not identify or consider any significant issues relating to the financial statements as substantially all the investments are valued by reference to publicly quoted prices. Further, the Audit Committee keeps under review the cost effectiveness, independence and objectivity of the auditors. A formal statement of independence is received from the external auditors each year. The terms of reference of the Audit Committee are available for inspection at the company’s registered office.

The investment manager is authorised and regulated by the Financial Conduct Authority and the directors have an opportunity to review their own auditors’ review of their financial controls.

Relations with shareholders

The Chairman is the company’s principal spokesman with investors, fund managers, the press and other interested parties.

Shareholders will have the opportunity to meet the Board at the AGM. The Board is also happy to respond to any written queries made by shareholders during the course of the year, or to meet with major shareholders if so requested.

In addition to the formal business of the AGM, representatives of the management team and the Board are available to answer any shareholder queries.

Separate resolutions are proposed at the AGM on each substantially separate issue. The Registrars collate proxy votes and the results (together with the proxy forms) are forwarded to the Company Secretary immediately prior to the AGM. In order to comply with the UK Corporate Governance Code, proxy votes will be announced at the AGM, following each vote on a show of hands, except in the event of a poll being called. The notice of the next AGM and proxy form can be found at the end of these financial statements.

Financial Reporting

The statement of directors’ responsibilities for preparing the financial statements is set out on page 20, and a statement by the auditors about their reporting responsibilities is set out in the Auditors’ Report on page 26.

Internal control

The directors are responsible for the company’s system of internal control. Although no system of internal control can provide absolute assurance against material misstatement or loss, the company’s systems are designed to provide the directors with reasonable assurance that problems are identified on a timely basis and dealt with appropriately.

The directors have conducted a review of the effectiveness of the system of internal control for the year covered by the financial statements. This accords with the FRC’s guidance on Risk Management, internal control and related Financial and Business reporting.

Although the Board is ultimately responsible for safeguarding the assets of the company, the Board has delegated, through written agreements, the day-to-day operation of the company to M D Barnard & Company Limited.

Compliance statement

The Listing Rules require the Board to report on compliance with the Governance Code provisions throughout the accounting year. The Comply or Explain Section of the UK Code does however acknowledge that some provisions may have less relevance for investment companies. With the exception of the limited items outlined below, the company has complied throughout the accounting year to 28 February 2019 with the provisions set out in Sections A to E of the Governance Code.

1. The Board has not appointed a nominations committee as they consider the Board to be small and it comprises wholly non-executive directors. Appointments of new directors are dealt with by the full Board.

2. New directors do not receive a full, formal and tailored induction on joining the Board. Such matters are addressed on an individual basis as they arise.

3. Due to the size of the Board and the nature of the company’s business, a formal performance evaluation of the Board, its committees, the individual directors and the Chairman has not been undertaken. Specific performance issues are dealt with as they arise.

4. The company has four independent directors, as defined by the Governance Code issued in April 2016. The Board consider that Messrs. Gamble, Barnard, Riley and Cameron-Mowat are independent in character and judgement and there are no relationships or circumstances which are likely to affect, or could appear to affect the directors’ judgement. The Board considers that all directors have sufficient experience to be able to exercise proper judgement within the meaning of the Governance Code.

5. The company does not have a chief executive officer or senior independent director. The Board does not consider this to be necessary for the size of the company.

6. The company does not conduct a formal review as to whether there is a need for an internal audit function. The directors do not consider that an internal audit would be an appropriate control for a venture capital trust.

7. The Audit Committee is chaired by Geoffrey Gamble, Chairman of the Board of directors, whom the Board regard as independent despite recommendations to the contrary in the Governance Code due to his being Chairman of the Board of directors.

8. The non-executive directors do not have service contracts, whereas the recommendation is for fixed term renewable contracts.

9. The company has no major shareholders so shareholders are not given the opportunity to meet any new non-executive directors at a specific meeting other than the AGM.

Statement of directors’ responsibilities

United Kingdom company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company as at the end of the financial year and of the revenue of the company for that year. In preparing those financial statements, the directors are required to:

• select suitable accounting policies and apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for ensuring that proper accounting records are kept, which disclose with reasonable accuracy at any time the financial position of the company, enabling them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for the company’s system of internal control, for safeguarding the assets of the company and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Responsibility statement

The directors confirm that to the best of their knowledge:

1. the financial statements, prepared in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), give a true and fair view of the assets, liabilities, financial position and profit or loss of the company; and

2. the Directors’ report includes a fair review of the development and performance and position of the company, together with a description of the principal risks and uncertainties that it faces.

3. the Directors consider that the annual report and financial statements are fair, balanced and understandable, providing appropriate information to shareholders to assess the performance, business model and strategy of the company.

By Order of the Board

Geoffrey Gamble

27 June 2019

Independent Auditors’ Report to the members of New Century AIM VCT plc

Opinion

We have audited the Financial Statements of New Century Aim VCT Plc for the year ended 28 February 2019 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Cash Flow Statement and the related notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting standard applicable in the UK and Republic of Ireland”.

In our opinion the Financial Statements:

• give a true and fair view of the state of the Company’s affairs as at 28 February 2019 and of the Company’s return for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the Financial Statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to principal risks, going concern and viability statement

We have nothing to report in respect of the following information in the Annual Report, in relation to which the ISAs (UK) require us to report to you whether we have anything material to add or draw attention to:

• the disclosures in the Annual Report set out on page 38 to 40 that describe the principal risks and explain how they are being managed or mitigated;
• the Directors’ confirmation set out on page 7 in the Annual Report that they have carried out a robust assessment of the principal risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity;
• the Directors’ statement set out on page 18 in the Financial Statements about whether the Directors considered it appropriate to adopt the going concern basis of accounting in preparing the Financial Statements and the Directors’ identification of any material uncertainties to the Company’s ability to continue to do so over a period of at least twelve months from the date of approval of the Financial Statements;
• whether the Directors’ statement relating to going concern required under the Listing Rules in accordance with Listing Rule 9.8.6R(3) is materially inconsistent with our knowledge obtained in the audit;
• the Directors’ explanation in the Annual Report as to how they have assessed the prospects of the Company, over what period they have done so and why they consider that period to be appropriate, and their statement as to whether they have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the period of their assessment, including any related disclosures drawing attention to any necessary qualifications or assumptions.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Financial Statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team.

These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We identified the following risks that we believe had the greatest impact on our audit strategy and scope:

Key risks	Approach taken for the assessed risks
The carrying value of the investments and the recognition of realised and unrealised gains and losses have been identified as a key audit matter. The investment portfolio and associated realised and unrealised gains and losses are the key driver to the financial performance of the Company and have the greatest impact on both the statement of comprehensive income and balance sheet. Â	We tested the value of the year-end investments by reference to market price information at the year-end. The purchase and sale of investments were agreed to contract notes and cash movements on a sample basis. The realised gains and losses on the sale of investments were re-calculated for both the individual transactions on a sample basis and for the total portfolio.   The movement in unrealised gains was checked for arithmetical accuracy and validated by reviewing the opening costs to prior year balances and purchases on a sample basis.   The portfolio is maintained by the investment manager in accordance with the investment management agreement. We agreed the investment portfolio to a signed confirmation provided by the investment advisor detailing each investment, the cost and market price.   The results of our procedures were satisfactory.
Compliance with the VCT rules is necessary to maintain the VCT status and associated tax benefits. Â	Our audit work in respect of the compliance with the VCT rules involved testing the conditions for maintaining approval as a VCT as set out by HMRC. Each of the conditions was tested in turn in order to assess whether it had been met as at the year-end.   The results of our procedures were satisfactory.

Our application of materiality

We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements on our audit and on the Financial Statements. We define financial statement materiality as the magnitude by which misstatements, including omission, could influence the economic decisions taken on the basis of the Financial Statements by reasonable users.

We also determine a level of performance materiality which we use to determine the extent of testing needed to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality for the Financial Statements as a whole.

We determine a materiality for the Financial Statements as a whole to be £105,000. In determining this we based our assessment on an average of three key indicators, being the return before tax, the net assets and gross assets of the Company. On the basis of our risk assessment, together with our assessment of the Company’s control environment, our judgement is that performance materiality for the Financial Statements should be 75% of materiality, being £78,750.

We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of £5,250 which is set at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We evaluate any uncorrected misstatements against both quantitative measures of materiality discussed above and in light of other relevant qualitative considerations in forming our opinion.

An overview of the scope of our audit

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the Financial Statements. In particular, we looked at where the Directors made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain.

We tailored the scope of our audit to ensure that we performed sufficient work to be able to give an opinion on the Financial Statements as a whole, taken into account an understanding of the structure of the Company, its activities, the accounting processes and controls, and the industry in which it operates. Our planned audit testing was directed accordingly and was focused on areas where we assessed there to be the highest risk of material misstatement. During the audit we reassessed and re-evaluated audit risks and tailored our approach accordingly.

The audit testing included substantive testing on significant transactions, balances and disclosures, the extent of which was based on various factors such as our overall assessment of the control environment, the effectiveness of controls and the management of specific risks.

We communicated with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant findings, including any significant deficiencies in internal control that we identified during the audit.

Other information

The Directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the Financial Statements and our auditor’s report thereon. Our opinion on the Financial Statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement of the Financial Statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

In this context, we also have nothing to report in regard to our responsibility to specifically address the following items in the other information and to report as uncorrected material misstatements of the other information where we conclude that those items meet the following conditions:

• Fair, balanced and understandable set out on page 21 – the statement given by the Directors that they consider the Annual Report and Financial Statements taken as a whole is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company’s performance, business model and strategy, is materially inconsistent with our knowledge obtained in the audit; or
• Audit Committee reporting set out on page 18 – the section describing the work of the Audit Committee does not appropriately address matters communicated by us to the Audit Committee; or
• Directors’ statement of compliance with the UK Corporate Governance Code set out on page 19 to 20 – the parts of the Directors’ statement required under the Listing Rules relating to the Company’s compliance with the UK Corporate Governance Code containing provisions specified for review by the auditor in accordance with Listing Rule 9.8.10R (2) do not properly disclose a departure from a relevant provision of the UK Corporate Governance Code.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006.

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Strategic Report and the Directors’ Report for the financial year for which the Financial Statements are prepared is consistent with the Financial Statements and those reports have been prepared in accordance with applicable legal requirements;
• the information about internal control and risk management systems in relation to financial reporting processes and about share capital structures, given in compliance with rules 7.2.5 and 7.2.6 in the Disclosure Rules and Transparency Rules sourcebook made by the Financial Conduct Authority (the FCA Rules) is consistent with the financial statements and has been prepared in accordance with applicable legal requirements; and
• information about the Company’s Corporate Governance Code and practices and about its administrative, management and supervisory bodies and their committees complies with rules 7.2.2, 7.2.3, and 7.2.7 of the FCA Rules.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in:

• the Strategic Report or the Directors’ Report; or
• the information about internal control and risk management systems in relation to financial reporting processes and about share capital structures, given in compliance with rules 7.2.5 and 7.2.6 of the FCA Rules.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been reviewed from branches not visited by us; or
• the Financial Statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors’ Responsibilities set out on page 20, the Directors are responsible for the preparation of the Financial Statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error.

In preparing the Financial Statements, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.

A further description of our responsibilities for the audit of the Financial Statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Other matters which we are required to address

We were appointed by New Century Aim VCT Plc in 2005 and subsequently re-appointed following a tender process on 27 March 2018. The period of total uninterrupted engagement including previous renewals and reappointments of the firm is 15 years.

The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the company and we remain independent of the company in conducting our audit.

Our audit opinion is consistent with the additional report to the audit committee.

Use of our report

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s’ members as a body, for our audit work, for this report, or for the opinions we have formed.

Daniel Hutson (Senior statutory auditor)

for and on behalf of

UHY Hacker Young

Chartered Accountants

Statutory Auditors

Quadrant House

4 Thomas More Square

London, E1W 1YW

27 June 2019

Statement of Comprehensive Income (incorporating the revenue accounts)

for the year to 28 February 2019

Â	Â	Year ended 28 February 2019			Year ended 28 February 2018
Â	Notes	Revenue £’000	Capital £’000	Total £’000	Revenue £’000	Capital £’000	Total £’000
Â	Â	Â	Â	Â	Â	Â	Â
Gains on investments	Â	Â	Â	Â	Â	Â	Â
- realised	Â	-	72	72	-	141	141
- unrealised	Â	-	(1,321)	(1,321)	-	446	446
Income	5	108	-	108	97	-	97
Investment management fee	6	(16)	(48)	(64)	(18)	(54)	(72)
Other expenses	7	(55)	-	(55)	(51)	-	(51)
Â	Â	________	________	________	________	________	________
Return on ordinary activities before taxation	Â	37	(1,297)	(1,260)	28	533	561
    Tax credit/ (charge) on ordinary activities	    9	-	-	-	-	-	-
Â	Â	________	________	________	________	________	________
Return on ordinary activities after taxation	  Â	37	(1,297)	(1,260)	28	533	561
Â	Â	Â	Â	Â	Â	Â	Â
Â	Â	Â	Â	Â	Â	Â	Â
Return per ordinary share (pence)	  11	0.48	(16.49)	(16.01)	0.35	6.78	7.14
Â	Â	Â	Â	Â	Â	Â	Â

The notes on pages 31 to 40 form an integral part of these financial statements.

All revenue and capital items in the above statement are from continuing operations in the current year. No operations were acquired or discontinued in the current year. Other than as shown above, the company had no recognised gains or losses. Accordingly, the above represents the total comprehensive income for the year.

Balance Sheet

at 28 February 2019

		Year ended		Year ended
		28-Feb-19		28-Feb-18
		£’000		£’000
	Note
					Â
Fixed assets
Investments	12		5,390		6,888
					Â
Current assets
Debtors	15		73		75
					Â
Current liabilities
Creditors: amounts falling due within one year	16
			-55		-28
					Â
					Â
			5,408		6,935
					Â
Capital and reserves
Called up share capital	17		786		786
Share premium	20		682		682
Capital reserve – realised	20		205		469
Capital reserve – unrealised	20		2,755		3,788
Capital Redemption Reserve Fund	20		400		400
Revenue reserve	20		580		810
					Â
					Â
					Â
Total equity shareholders’ funds			5,408		6,935
					Â
Net asset value per ordinary share	18		69p		88p

The financial statements on pages 27 to 40 were approved by the Board of directors on 27 June 2019 and were signed on its behalf by:

Geoffrey Gamble

Chairman

The notes on pages 31 to 40 form an integral part of these financial statements.

Company’s registered number: 05352611

Statement of Changes in Equity

at 28 February 2019

Â	Share capital	Share premium account	Capital redemption reserve	Capital realised	Capital unrealised	Revenue reserve	Total
Â	£’000	£’000	£’000	£’000	£’000	£’000	£’000
As at 1 March 2018	786	682	400	469	3,788	810	6,935
Cancellation of shares	-	-	-	-	-	-	-
Realised gains on disposals	-	-	-	72	-	-	72
Transfer of unrealised gain to realised on disposal of investment	-	-	-	(288)	288	-	-
Net revenue before tax	-	-	-	-	-	37	37
Capital element of investment management fee	-	-	-	(48)	-	-	(48)
Dividends paid	-	-	-	-	-	(267)	(267)
Unrealised losses	-	-	-	-	(1,321)	-	(1,321)
At 28 February 2019	786	682	400	205	2,755	580	5,408

	Share capital	Share premium account	Capital redemption reserve	Capital realised	Capital unrealised	Revenue reserve	Total
Â	£’000	£’000	£’000	£’000	£’000	£’000	£’000
Â	Â	Â	Â	Â	Â	Â	Â
As at 1 March 2017	786	682	400	356	3,368	1,041	6,633
Realised gains on disposals	-	-	-	141	Â	-	141
Transfer of unrealised gain to realised on disposal of investment	-	-	-	26	(26)	-	-
Net revenue before tax	-	-	-	-	Â	28	28
Capital element of investment management fee	-	-	-	(54)	Â	-	(54)
Dividends paid	-	-	-	-	Â	(259)	(259)
Unrealised gains	-	-	-	-	446	-	446
At 28 February 2018	786	682	400	469	3,788	810	6,935

Cash Flow Statement

at 28 February 2019

Â	  Note	Year ended 28 February 2019 £’000		Year ended 28 February 2018 £’000
Â	Â	Â	Â	Â	Â
Â	Â	Â	Â	Â	Â
Â	Â	Â	Â	Â	Â
Cash flow from operating activities	Â	Â	Â	Â	Â
Cash used in operations	21	Â	(92)	Â	(125)
Â	Â	Â	Â	Â	Â
Net cash used in operating activities	Â	Â	(92)	Â	(125)
Â	Â	Â	Â	Â	Â
Cash flows from investing activities	Â	Â	Â	Â	Â
Investment income	Â	Â	108	Â	97
Â	Â	Â	Â	Â	Â
Net cash from investing activities	Â	Â	108	Â	97
Â	Â	Â	Â	Â	Â
Cash flows from financing activities	Â	Â	Â	Â	Â
Sale of investments	Â	Â	927	Â	551
Purchase of investments	Â	Â	(678)	Â	(282)
Dividends paid	Â	Â	(267)	Â	(259)
Â	Â	Â	Â	Â	Â
Net cash (used in)/generated from financing activities	Â	Â	(18)	Â	10
Â	Â	Â	Â	Â	Â
Net decrease in cash and cash equivalents	Â	Â	(2)	Â	(18)
Â	Â	Â	Â	Â	Â
Cash and cash equivalents at the beginning of the year	Â	Â	75	Â	93
Â	Â	Â	Â	Â	Â
Cash and cash equivalents at the end of year	Â	Â	73	Â	75
Â	Â	Â	Â	Â	Â
Â	Â	Â	Â	Â	  Â

Notes to the Financial Statements

for the year to 28 February 2019

1. Company information

New Century AIM VCT PLC is a UK incorporated company whose registered office is:

4th Floor

50 Mark Lane

London EC3R 7QR

New Century AIM VCT PLC is a Venture Capital Trust established under the legislation introduced in the Finance Act 1995. The company’s principal objective is to achieve long term capital growth through investment in a diversified portfolio of qualifying companies primarily quoted on AIM.

2. Basis of preparation

The financial statements have been prepared in accordance with applicable United Kingdom law and accounting standards and with the Financial Reporting Council’s Financial Reporting Standard FRS 102 and with the Statement of Recommended Practice for Investment Companies re-issued by the Association of Investment Companies in November 2014 and updated in February 2018.

Going Concern basis – on the basis that the assets of the company consist mainly of marketable securities, the directors are of the opinion that at the time of approving the accounts, the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the accounts.

The financial statements are presented in Sterling.

It is not the company’s policy to exercise controlling or significant influence over investee companies, although it may hold a significant interest in some companies. Accordingly, the results of these companies are not incorporated into the revenue account except to the extent of any income earned or received.

3. Significant estimates and judgements

As the company’s investment holdings, which comprise over 99% of its total assets, are stated at market bid value based on the closing prices of the London Stock Exchange, the directors do not believe that there is any inherent uncertainty in their presentation of these amounts, and that in their judgement, market value and fair value may be regarded as identical for the purpose of these accounts.

4. Accounting policies

Investments

Listed or AIM traded investments are stated at market value, which is based upon market bid prices at the balance sheet date. In the event that the shares held by the company are subject to certain restrictions, or the holding is significant in relation to the traded issued share capital of the investee company then the directors may apply a discount to the relevant market price.

Investments in unquoted companies are valued by the directors in accordance with British Venture Capital Association (“BVCA”) guidelines.

Realised surpluses or deficits on the disposal of investments and permanent impairments in the value of investments are taken to realised capital reserves. Unrealised surpluses and deficits on the revaluation of investments are taken to unrealised capital reserves. Costs incurred relating to acquisitions and disposals are charged to capital reserves as a deduction from proceeds or an addition to costs.

It is not the company’s policy to exercise controlling or significant influence over investee companies, although it may hold a significant interest in some companies. Accordingly, the results of these companies are not incorporated into the revenue account except to the extent of any income earned or received.

Income

Dividend income receivable from quoted securities is recognised on the ex-dividend date. Income from unquoted equity and non-equity securities is recognised on an accruals basis except that a full provision is made until the receipt of the income is certain.

Interest from cash and deposits and fixed returns on debt securities are recognised on an accruals basis.

Expenses

All expenses are accounted for on an accruals basis. One quarter of the investment management fee is charged to the revenue account and the remaining three quarters is charged to capital reserves, net of corporation tax relief, and inclusive of any irrecoverable value added tax. The allocation of the management fee reflects the directors’ estimate of the source of the long-term returns in the portfolio from revenue and capital.

Taxation

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

5. Income

Â	Year ended		Year ended
	28 February		28 February
	2019		2018
	£’000		£’000
Â	Â	Â	Â	Â
Interest receivable	Â	Â	Â	Â
- bank deposits and liquid funds	Â	-	Â	-
Â	Â	Â	Â	Â
Â	Â	Â	Â	Â
Dividends receivable	Â	108	Â	97
Â	Â	Â	Â	Â
Investment income	Â	108	Â	97
Â	Â	Â	Â	Â

6. Investment management fees

Â	Year ended 28 February 2019		Year ended 28 February 2018
Â	Revenue £’000	Capital £’000	Revenue £’000	Capital £’000
Â	Â	Â	Â	Â
Investment management fees	16	48	18	54
Â	Â	Â	Â	Â

M D Barnard & Company Limited (“MDB”) provides investment management services to the company in respect of the company’s portfolio of venture capital investments under an investment management agreement dated 10 March 2005, supported by a deed of amendment dated 4 September 2017.

Under the terms of the investment management agreement, MDB is entitled to a fee (exclusive of VAT) equal to 1% per annum of the net assets of the company. The fee is calculated quarterly in arrears based on the net assets at 28 February, 31 May, 31 August and 30 November. No performance fee is payable.

The investment management agreement is for a minimum period of three years from 1 September 2017, subject to a trade-off clause that if Simon Like, the present investment manager, ceases to manage the company’s investments, the company may terminate the agreement with MDB in a mirror time frame of 12 months’ notice period.

7. Other expenses

Â	Year ended 28 February 2019 £’000		Year ended 28 February 2018 £’000
Â	Â	Â	Â	Â
Administrative and secretarial services	Â	27	Â	24
Auditors’ remuneration	Â	Â	Â	Â
- for audit services	Â	11	Â	10
- for tax services	Â	-	Â	-
Regulatory fees	Â	15	Â	14
Miscellaneous	Â	2	Â	3
Â	Â	Â	Â	Â
Â	Â	55	Â	51
Â	Â	Â	Â	Â

8. Directors’ remuneration

The chairman received £5,000 (2018: £5,000) remuneration in the year. No other remuneration has been paid or is payable for the year to 28 February 2019 or in respect of the prior year.

9. Tax charge/(credit) on ordinary activities

Â	Year ended 28 February 2019 Â		Year ended 28 February 2018
Â	Revenue £’000	Capital £’000	Revenue £’000	Capital £’000
Â	Â	Â	Â	Â
United Kingdom tax based on the taxable return for the year	-	-	-	-
Â	Â	Â	Â	Â
Factors affecting tax charge/(credit) for the year	Â	Â	Â	Â
Â	Â	Â	Â	Â
Return on ordinary activities before taxation	37	(1,297)	28	533
Â	Â	Â	Â	Â
Tax on above at the company rate of 19% (2018: 19.1%)	7	(246)	5	101
Â	Â	Â	Â	Â
UK dividends not subject to corporation tax	(21)	-	(18)	-
Capital gain/(loss) on investment	-	237	-	(112)
Non allowable expenses	-	-	-	-
Unutilised losses	14	9	13	11
Â	Â	Â	Â	Â
Â	Â	Â	Â	Â
Current tax charge/(credit) for the year	-	-	-	-
Â	Â	Â	Â	Â

The company has unrelieved losses amounting to approximately £1,855,000 (2018: £1,737,000) which are available to carry forward for tax purposes which it can set off against future profits. No deferred tax asset has been recognised in respect of these losses in view of the company’s history of losses.

10. Dividends

Â	Year ended 28 February 2019 £’000		Year ended 28 February 2018 £’000
Interim dividend paid	Â	-	Â	-
Final dividend paid in respect of previous year	Â	267	Â	259
Â	Â	Â	Â	Â
Â	Â	267	Â	259
Â	Â	Â	Â	Â

The directors propose a final revenue dividend of 0.475p per share and a final capital dividend of 3.025p per share for the year ended 28 February 2019 to be paid on 6 September 2019 to shareholders on the register at 9 August 2019.

11. Return per ordinary share

The revenue return, per ordinary share, is based on the net revenue on ordinary activities after taxation of £37,439 (2018: £27,905) and on 7,860,937 (2018: 7,860,937) ordinary shares, being the weighted average number of ordinary shares in issue during the year.

The negative capital return per ordinary share is based on a net realised and unrealised capital loss of (£1,297k) (2018: £533k) and on 7,860,937 (2018: 7,860,937) ordinary shares, being the weighted average number of ordinary shares in issue during the year.

12. Fixed asset investments

Â	Year ended 28 February 2019 £’000		Year ended 28 February 2018 £’000
Â	Â	Â	Â	Â
UK Listed	Â	190	Â	205
AIM	Â	5,200	Â	6,673
Unlisted	Â	-	Â	10
Â	Â	Â	Â	Â
Â	Â	5,390	Â	6,888
Â	Â	Â	Â	Â

Movements in investments, including realised and unrealised gains and losses, during the year are summarised as follows:

Â	Â	Year ended 28 February 2018
Â	Unlisted	UK listed	AIM	NEX Mkts	Total
Â	£'000	£'000	£'000	£'000	£'000
Valuation at 1 March 2018	10	205	6,673	-	6,888
Purchases at cost	-	-	678	-	678
Transfers	-	-	-	-	-
Sales proceeds	-	-	(927)	-	(927)
Realised gains/(losses)	-	-	72	-	72
Unrealised gains/(losses)	(10)	(15)	(1,296)	-	(1,321)
Valuation at 28 February 2019	-	190	5,200	-	5,390
Â	Â	Â	Â	Â	Â
Cost at 1 March 2018	324	299	6,627	-	7,250
Purchases	-	-	678	-	678
Transfers	-	-	-	-	-
Sales proceeds	-	-	(927)	-	(927)
Realised gains/(losses)	-	-	(216)	-	(216)
Cost at 28 February 2019	324	299	6,162	-	6,785

Â	Â	Year ended 28 February 2018
Â	Unlisted	UK listed	AIM	NEX Mkts	Total
Â	£'000	£'000	£'000	£'000	£'000
Valuation at 1 March 2017	8	240	6,323	-	6,571
Purchases at cost	-	-	281	-	282
Transfers	12	-	(12)	-	-
Sales proceeds	(2)	(26)	(523)	-	(551)
Realised gains/(losses)	(3)	3	141	-	141
Unrealised gains/(losses)	(5)	(12)	463	-	446
Valuation at 28 February 2018	10	205	6,673	-	6,888
Â	Â	Â	Â	Â	Â
Cost at 1 March 2017	343	321	6,689	-	7,353
Purchases	-	-	282	-	282
Transfers	108	-	(108)	-	-
Sales proceeds	(2)	(26)	(523)	-	(551)
Realised gains/(losses)	(125)	4	287	-	166
Cost at 28 February 2018	324	299	6,627	-	7,250

The overall gain on investments for the years shown are in the Income Statement is analysed as follows:

Â	Year ended 28 February 2019 £’000		Year ended 29 February 2018 £’000
Net realised gain on disposal	Â	72	Â	141
Increase in unrealised (loss)/appreciation	Â	(1,321)	Â	446
Â	Â	Â	Â	Â
Â	Â	1,249	Â	587
Â	Â	Â	Â	Â

13. Venture capital investments

A full list of investments held is disclosed under Investment Portfolio.

14. Significant interests

The company did not hold more than 10% of the allotted equity share capital of any class of any investee company.

15. Debtors

Â	Year ended 28 February 2019 £’000		Year ended 28 February 2018 £’000
Uninvested funds with broker:	Â	Â	Â	Â
M D Barnard & Company Limited	Â	73	Â	75
Â	Â	Â	Â	Â

16. Creditors: amounts falling due within one year

Â	Year ended 28 February 2019 £’000		Year ended 28 February 2018 £’000
Â	Â	Â	Â	Â
Trade creditors and accruals	Â	55	Â	28
Â	Â	Â	Â	Â
Â	Â	55	Â	28
Â	Â	Â	Â	Â

17. Share capital

Â	Year ended 28 February 2019 £’000		Year ended 28 February 2018 £’000
Â	Â	Â	Â	Â
Authorised	Â	Â	Â	Â
15,000,000 ordinary shares of 10p each	Â	1,500	Â	1,500
Â	Â	Â	Â	Â
Allotted, called up and fully paid	Â	Â	Â	Â
7,860,937 (2017: 7,860,937) ordinary shares of 10p	Â	786	Â	786
Â	Â	Â	Â	Â

18. Net asset value per share

Net asset value per share is based on net assets at 28 February 2019 of £5,408,891 (28 February 2018 of £6,934,635) and on 7,860,937 ordinary shares (2018: 7,860,937 ordinary shares) in issue at those dates.

19. Performance incentive arrangements

The Investment Manager is not entitled to any performance incentive arrangements.

20. Reserves

Called up share capital represents the nominal value of shares that have been issued.

Share premium account includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Capital redemption reserve relates to capital repurchased.

Capital reserve – realised represents surpluses or deficits on the disposal of investments and permanent impairment in the value of investments.

Capital reserve – unrealised represents surpluses and deficits on the revaluation of investments.

Revenue reserve includes all current and prior period retained profits and losses.

21. Notes to the cash flow statement

Â	Year ended 28 February 2019 £’000	Year ended 28 February 2018 £’000
Operating activity	Â	Â
Operating (loss)/return	(1260)	561
Gain on sale of investments	(72)	(141)
Investment income (note 5)	(108)	(97)
Unrealised loss/(profits) on investments	1,321	(446)
(Decrease)/increase in creditors (note 16)	27	(3)
Â	Â	Â
Â	(92)	(125)
Â		Â
Â

Cash and cash equivalents

Cash and cash equivalents comprise £73,544 (2018: £74,777) of uninvested funds, held in a bank account with the investment manager.

22. Risk management and financial instruments

A statement of the company’s principal objectives is given within the Strategic Report on page 6. In order to achieve these objectives the company invests its funds primarily in qualifying holdings in unlisted companies and companies traded on AIM, which by their nature may entail a higher degree of risk than investments in large listed companies. The company has not entered into any derivative transactions, and does not expect to do so in the foreseeable future. As a Venture Capital Trust, the company invests in securities for the long term, and it is the company’s policy that no trading in investments or other financial instruments shall be undertaken.

Market price risk

The main risks arising from the company’s investing activities are market price risk, representing the uncertain realisable values of the company’s investments. The directors aim to limit the risk attaching to the portfolio as a whole by careful selection of investments and by maintaining a wide spread of investments in terms of financing stage, industry sector and geographical location.

The assets of the company are held for the most part as listed investments which carry market risk in the form of a single risk variable - market price movement. The directors do not consider that a risk analysis of that single risk variable will produce any useful information beyond the obvious that downward movement in share prices will result in a downward movement in the share values and vice versa. For this reason, the directors do not consider it appropriate to prepare a sensitivity analysis to market price movement.

Interest rate risk

The company finances its activities through retained profits including realisable capital profits, and through the issue of equity shares. It has not entered into any borrowings. The company’s investment portfolio includes investments in interest bearing securities in investee companies and in other fixed interest securities. Details of interest bearing assets are given below under financial assets.

Liquidity risk

There is liquidity risk associated with unquoted investments, which are not readily realisable.

Credit risk

Credit risk is the risk of a borrower defaulting on either an interest payment or the capital sum of a loan. The exposure is limited to uninvested funds held with the investment manager and the fixed interest loan notes.

Currency risk

The company’s assets and liabilities are denominated in Sterling. As such, there is little currency risk. Any transactions in currencies other than Sterling are recorded at the rates of exchange prevailing at the date of the transaction. At each reporting date, the monetary assets and liabilities denominated in foreign currencies are re-translated at the rates prevailing on the reporting date.

Capital

The company’s capital is provided in its entirety by its shareholders in the form of ordinary shares.

The company’s purpose and objective is the investment of its capital funds in listed investments, primarily those quoted on AIM with a view to securing capital appreciation over the long term.

There were no externally imposed capital requirements with which the company had to comply during the year to 28 February 2019.

Financial assets

The interest rate profile of the company’s financial assets is set out below:

Â	Year ended 28 February 2019 £’000		Year ended 28 February 2018 £’000
Floating rate	Â	73	Â	75
Fixed rate	Â	-	Â	-
Non-interest bearing	Â	-	Â	-
Â	Â	Â	Â	Â
Â	Â	73	Â	75
Â	Â	Â	Â	Â

Fixed rate assets	Year ended 28 February 2019		Year ended 28 February 2018
Weighted average interest rate	Â	-	Â	-
Weighted average years to maturity	Â	-	Â	-

Floating rate financial assets comprise cash held on deposit and investments in liquidity funds. The benchmark rate for these investments is the UK bank base rate.

Non-interest bearing financial assets comprises equity share and non-equity share investments in investee companies, cash held on non-interest bearing deposit and debtors.

22. Risk management and financial instruments (continued)

Fair values

The investments of the company are valued by the directors in accordance with the guidelines issued by the British Venture Capital Association, and the carrying values are considered to approximate the fair value of the investments. The fair values have also been determined in line with the fair value hierarchy as set out in FRS 102 11.27.

23. Financial assets and liabilities

Â	Year ended 28 February 2019 £’000	Year ended 28 February 2018 £’000
Â	Â	Â
Financial assets measured at fair value	5,390	6,888
Financial assets measured at amortised cost	73	75
Financial liabilities measured at amortised cost	(55)	(28)
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24. Related party transactions

New Century AIM VCT plc is managed by M D Barnard & Company Limited. Details of the relationship and transactions with the related party are included in note 6.

One amount was payable to key management personnel during the year of £5,000 (2018: £5,000).

25. Capital commitments

There were no investments which were approved at the year-end but which had not completed.

26. Control

New Century AIM VCT plc is not under the control of any one party or individual.

27. Post balance sheet events

On 11 June 2019 the directors proposed a dividend in respect of the year ended 28 February 2019 of £275,132 representing 3.50p per ordinary share.

Shareholder Information

for the year to 28 February 2019

The Company

New Century AIM VCT PLC was incorporated on 4 February 2005 in England & Wales. In March 2005, the company obtained a listing on the London Stock Exchange. A total of £8.465 million was raised (before expenses) through an offer for subscription of new ordinary shares at 100p.

The Investment Manager

New Century AIM VCT PLC is managed by M D Barnard & Company. Limited, an independent fund management company based in Laindon, Essex. M D Barnard & Company. Limited currently manages or advises investment trust, unit trust and venture capital funds totalling approximately £39 million including New Century AIM VCT PLC.

Venture Capital Trusts

Venture Capital Trusts (VCTs) were introduced in the Finance Act 1995 and are intended to provide a means whereby individual investors can invest in small unquoted trading companies in the UK, with incentives in the form of a number of tax benefits. From 6 April 2005, investors subscribing for new shares in a VCT have been entitled to claim income tax relief of 30% on their investment, irrespective of their marginal tax rate (up to a maximum investment of £200,000 per tax year). The tax relief cannot exceed the amount which reduces an investor’s income tax liability to nil. In addition all dividends paid by VCTs are tax free and disposals of VCT shares are not subject to capital gains tax.

New Century AIM VCT has been approved as a VCT by HM Revenue and Customs. In order to maintain its approval the company must comply with certain requirements on a continuing basis; in particular, within three years from the date of provisional approval at least 70% by value of the company’s investments must comprise “qualifying holdings”, of which at least 30% by value must be in eligible ordinary shares. A “qualifying holding” consists of up to £1 million invested in any one year in new shares or securities in an unquoted company which is carrying on a qualifying trade and whose gross assets do not exceed £15 million at the time of investment. For the purposes of these criteria, unquoted companies include companies whose shares are traded on the Alternative Investment Market (“AIM”).

As with investment trusts, capital gains accruing to VCTs are not chargeable gains for UK Corporation Tax purposes.

Financial calendar

Annual General Meeting	14 August 2019
Interim report for six months to 31 August 2019	October 2019
Preliminary announcement of results for the year to 28 February 2020	June 2020
Annual General Meeting 2020	August 2020

Share price

The mid-market price of shares in New Century AIM VCT PLC is available daily on the London Stock Exchange website (www.londonstockexchange.com).

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