Half-year Report

Half-year Report

NEW CENTURY AIM VCT PLC

New Century AIM VCT plc

For the six months to 31st August 2017

Chairman’s Statement

In the six months to 31st August 2017, the net asset value (NAV) of your fund increased by 8.33% to 91p. The FSTE AIM Allshare index gained 11.43% over the same period. This index encompasses all sectors and includes many mining, oil and gas companies that have performed well in the year. Your fund is constrained from investing in these types of businesses as part of the VCT rules.

The fund went ex-dividend to the amount of 3.3p per share in August which falls within the accounting period under review. If we add that back to the NAV, the fund increased by 12.26%. The Board realises the importance of income to its shareholders as well as trying to achieve an increase in its NAV, and based on a current mid-market price of 69p for its shares, the fund has a dividend yield of 4.78%.

We made six further VCT qualifying investments in the period, Infrastrata, Anglo African Oil and Gas, Audioboom, Escape Hunt, Modern Water Group and Proxama. Four of these are new investments to the portfolio, whilst the other two, Audioboom and Modern Water are additional investments to our existing holdings.

We top sliced or exited seven qualifying investments and one non-qualifying.

We continue to see potential new qualifying issues, but remain cautious in our approach. The uncertainty regarding the BREXIT negotiations following the General election results may cause increased volatility in the months ahead, but to date the Market has taken it in its stride with the index currently remaining near its highs. The majority of our investee companies continue to trade well which bodes well and gives us some optimism for the remainder of the year.

Geoff Gamble
27 October 2017

New Century AIM VCT plc

For the six months to 31st August 2017

Unaudited Balance Sheet

               
Interim Accounts Final Accounts Interim Accounts
as at 31 August 2017 as at 28 February 2017* as at 31 August 2016
£'000   £'000 £'000   £'000 £'000   £'000
Fixed Assets      
Investments 6,915 6,571 6,416
 
Current Assets
Uninvested cash 279 93 292
279 93 292
 
Current Liabilities
Creditors: amounts due
within one year (18) (31) (17)
     
7,176 6,633 6,691
Capital and Reserves
 
Share capital 786 786 873
Share premium 682 682 681
Capital reserve - realised 540 356 1,136
Capital reserve - unrealised 3,714 3,368 1,688
Capital redemption reserve 400 400 313
Revenue reserve 1,054 1,041 2,000
     
7,176 6,633 6,691
 
Asset Value per share 91p 84p 77p
*Audited accounts
 

New Century AIM VCT plc

For the six months to 31st August 2017

Unaudited Statement of Comprehensive Income

(incorporating the revenue account)

               
6 month period ended 31 August 2017   Year to 28 February 2017*   6 month period ended 31 August 2016
Revenue   Capital   Total Revenue   Capital   Total Revenue   Capital   Total
            £'000   £'000   £'000   £'000   £'000   £'000   £'000   £'000   £'000
Gains on investments
Realised - 117 117 - 514 514 - 58 58
Unrealised - 440 440 - 639 639 - 180 180
Income 51 - 51 118 - 118 59 - 59
Investment management fees (9) (27) (36) (17) (52) (69) (13) (39) (52)
Other expenses       (29)   -   (29)   (54)   -   (54)   (22)   -   (22)
Return on ordinary activities 13 530 543 47 1,101 1,148 24 199 223
Tax on ordinary activities   -   -   -   -   -   -   -   -   -
Return on ordinary activities
after taxation       13   530   543   47   1,101   1,148   24   199   223
Return per ordinary share in pence   0.16   6.74   6.90   0.55   12.64   13.19   0.28   2.29   2.57
 
*Audited Accounts
 
All revenue and capital items in the above statement derive from continuing operations.
The company has only one class of business and derives its income from investments in shares and securities, and
from bank and money market funds.
The weighted average number of shares in issue during the period was 7,860,937
 

New Century AIM VCT plc

For the six months to 31st August 2017

Unaudited Consolidated Statement of Changes in Equity

 

 

 

 

  Capital      

Share Capital

Share Premium

Redemption Capital Capital Revenue

account

account

Reserve realised unrealised reserve

£’000

£’000

£’000 £’000 £’000 £’000
 
As at 1 March 2017 786 682 400 356 3,368 1,041
 
Share issue - - - - - -
Realised gains on disposals - - - 117 - -
Unrealised gains - - - - 440 -
Transfer of unrealised loss to realised on disposal of investment - -

-

94 (94) -
Net revenue before tax - - - - - 13
Investment management fee - - -

-

(27) - -
________ ________ _________ ________ ________ ________
At 31 August 2017 786 682 400 540 3,714 1,054
           
As at 1 March 2016 863 611 313 1,140 1,483 1,976
 
Share issue 10 70
Realised gains on disposals - - - 59 - -
Unrealised gains - - - - 180 -
Transfer of unrealised loss to realised on disposal of investment - - - (24) 25 -
Net revenue before tax - - - - - 24
Investment management fee - - - (39) - -
________ ________ _________ ________ ________ ________
At 31 August 2016 873 681 313 1,136 1,688 2,000
 

New Century AIM VCT plc

For the six months to 31st August 2017

Unaudited Cash Flow Statement

           

6 month period ended

Year to 28 February

6 month period ended

31 August 2017

2017*

31 August 2016

£'000   £'000 £'000   £'000 £'000   £'000
     
Net cash generated from operating activities (77) (119) (83)
 
Cash flows from investing activities
Interest received - - 1
Investment income 51 118 58
 
Net cash from investing activities 51 118 59
 
Taxation - - -
 
Cash flows from investing activities
 
Sale of investments 446 1,140 236
Purchase of investments (234) (587) (443)
Share Issue - 80 80
Dividends paid - (280) -
Share cancellation - (702) -
Net cash generated from / (used) in financing activities 212 (349) (127)
Net increase / (decrease) in cash and cash equivalents 186 (350) (151)
Cash and cash equivalents at beginning of period 93 443 443
 
Cash and cash equivalents at end of period 279 93 292
*Audited Accounts
 

New Century AIM VCT plc

For the six months to 31st August 2017

Investment Portfolio

                 
Security   Cost   Valuation   %   %
        31 August 2017   Cost   Valuation
 
Qualifying Investments 6,702,744 6,378,642 87.85 88.67
Non-qualifying Investments 648,237   536,394   8.49   7.45
7,350,981 6,915,036 96.34 96.12
Uninvested funds 279,059   279,059   3.66   3.88
7,630,040   7,194,095   100.00   100.00
Qualifying Investments
AIM Quoted
Tristel plc 104,375 815,570 1.37 11.34
PHSC plc 182,910 33,250 2.40 0.46
DCD Media plc 562,800 1,955 7.38 0.03
K3 Business Technology Group plc 90,360 143,856 1.18 2.00
Touchstar plc 281,400 121,250 3.69 1.69
Progility plc 624,536 7,249 8.18 0.10
Lighthouse Group plc 203,513 270,000 2.67 3.75
Vianet Group plc 40,175 33,475 0.53 0.46
HML Holdings plc 280,672 386,100 3.68 5.37
Cyanconnode Holdings plc 376,755 208,187 4.94 2.89
Marechale Capital plc 133,828 13,249 1.75 0.18
Lombard Risk Mgt plc 24,120 64,500 0.32 0.90
M.Winkworth plc 72,360 85,500 0.95 1.19
Bango plc 7,563 41,125 0.10 0.57
Coretx Holdings plc 52,763 28,875 0.69 0.40
Tax Systems plc 250,020 1,270 3.28 0.02
TP Group plc 109,278 45,301 1.43 0.63
Brady plc 41,805 47,940 0.55 0.67
Inspired Energy plc 51,370 350,071 0.67 4.87
Microsaic Systems plc 114,163 13,318 1.50 0.18
Venn Life Sciences plc 115,581 69,575 1.51 0.97
DP Poland plc 20,113 54,694 0.26 0.76
Modern Water plc 75,382 33,545 0.99 0.47
Quixant plc 11,559 105,000 0.15 1.46
Blur Group plc 4,991 132 0.06 0.00
Keywords Studios plc 24,725 284,800 0.32 3.96
Cloudbuy plc 58,483 3,819 0.77 0.05
EU Supply plc 15,333 12,488 0.20 0.17
Plastics Capital plc 30,153 32,700 0.40 0.45
Sysgroup plc 99,177 69,069 1.30 0.96
Brighton Pier Group plc 50,253 33,125 0.66 0.46
Property Franchise Group plc 100,503 135,000 1.32 1.88
Solid State plc 40,134 78,375 0.53 1.09
Audioboom Group plc 103,023 86,950 1.35 1.21
 
 

 

Qualifying Investments (continued)
AIM Quoted (continued)
Scholium Group plc 50,253 22,500 0.66 0.31
Rosslyn Data plc 27,037 4,891 0.35 0.07
Coral Products plc 118,095 108,333 1.55 1.50
SRT Marine Systems plc 27,139 51,000 0.36 0.71
ULS Technology plc 52,261 154,700 0.68 2.15
Collagen Solutions plc 20,757 14,013 0.27 0.19
Gfinity plc 43,925 66,250 0.57 0.92
Ideagen plc 28,430 74,874 0.37 1.04
Premier Technical Services Group plc 104,834 330,980 1.37 4.60
Angle plc 125,880 69,369 1.65 0.96
Bilby plc 156,673 155,886 2.05 2.17
Hunters Property plc 251,256 240,000 3.29 3.34
Satellite Solutions Worldwide Group plc 239,452 383,847 3.14 5.34
Tekcapital plc 157,671 191,750 2.07 2.67
Falanx Group Ltd 51,460 21,029 0.67 0.29
Gear4Music Holdings lc 32,011 181,021 0.42 2.52
Premaitha Health plc 69,349 29,325 0.91 0.41
Belvoir Lettings plc 23,320 21,000 0.30 0.29
Photonstar LED group plc 35,179 14,000 0.46 0.19
Yu Group plc 27,893 68,250 0.37 0.95
Maxcyte Inc 25,128 85,714 0.33 1.19
Scancell Holdings plc 54,877 44,965 0.72 0.63
Medaphor Group plc 75,373 23,330 0.99 0.32
Imaginatik plc 40,207 24,000 0.53 0.33
Faron Pharmaceuticals Ltd 30,153 82,800 0.40 1.15
Cloudcall Group plc 20,230 38,500 0.26 0.54
Creo Medical Group plc 37,691 37,993 0.49 0.53
Anglo African Oil & Gas plc 45,229 52,875 0.59 0.73
Escape Hunt plc 31,006 32,904 0.41 0.46
Proxama plc 27,410   27,270   0.36   0.38
6,384,355   6,364,682   83.67   88.47
 
 
Unlisted Investments
Litebulb Ltd 102,266 0 1.34 0.00
Syqic plc 19,943 4,960 0.26 0.07
Outsourcery plc 45,027 0 0.59 0.00
Invocas plc 100,400 9,000 1.32 0.13
Optare plc 50,753   0   0.67   0.00
318,389   13,960   4.18   0.20
             
Total Qualifying Investments 6,702,744   6,378,642   87.85   88.67
 
 
 
Non Qualifying Investments
AIM Quoted
Sanderson Group plc 37,008 66,000 0.49 0.92
Rotala plc 60,796 97,350 0.80 1.35
Tristel plc 60 305 0.00 0.00
K3 Business Technology Group plc 131 144 0.00 0.00
Bango plc 291 470 0.00 0.01
Numis Corp plc 16,570 56,600 0.22 0.79
Lombard Risk Mgt plc 131 108 0.00 0.00
Coretx Holdings plc 218 33 0.00 0.00
Brady plc 106 67 0.00 0.00
Cyanconnode Holdings plc 131 36 0.00 0.00
Driver Group plc 8,992 4,900 0.12 0.07
TLA Worldwide plc 29,118 15,544 0.38 0.22
Mar City plc 10,053 4,500 0.13 0.06
Tyratech Inc 10,204 1,450 0.13 0.02
Audioboom Group plc 1,163 185 0.02 0.00
Be Heard Group plc 18,186 14,500 0.24 0.20
Gateley Holdings plc 14,627 24,600 0.19 0.34
Yolo Leisure and Tech plc 22,367   6,875   0.29   0.10
230,152   293,667   3.01   4.08
 
 
Non Qualifying Investments (continued)
UK Listed
Investec plc 202,821 108,374 2.66 1.51
Aviva plc 22,268 26,150 0.29 0.36
HSBC Holdings plc 21,955 26,250 0.29 0.37
Imperial Brands plc 23,763 32,000 0.31 0.44
Greene King plc 9,964 8,625 0.13 0.12
Centrica plc 10,074 5,970 0.13 0.08
Twentyfour Income Fund Ltd 9,852 9,900 0.13 0.14
Vodafone Group plc 20,590   20,498   0.27   0.28
321,287   237,767   4.21   3.30
 
Unlisted Investments
China Food Co plc 65,969 2,300 0.86 0.03
Gable Holdings Inc 12,112 0 0.16 0.00
Sorbic International plc 18,717   2,660   0.25   0.04
96,798   4,960   1.27   0.07
             
Total Non-qualifying Investments 648,237   536,394   8.49   7.45
 

New Century AIM VCT plc

For the six months to 31st August 2017

Notes to the Accounts

1   This interim financial information and the unaudited interim accounts for the six months to 31 August 2017 from
which it has been extracted, are the responsibility of the directors and were approved by them on 27 October 2017,
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.
 
2 The Company is an investment company as defined in Section 833 of the Companies Act 2006. The unaudited
interim accounts have been prepared in accordance with the Financial Reporting Council’s (FRC) Financial
Reporting Standard 104 Interim Financial Reporting (March 2015) and with the Statement of Recommended Practice
for Investment Companies re-issued by the Association of Investment Companies in November 2014 and updated in January 2017.
 
The unaudited interim accounts have been prepared using accounting policies that the company applied in the
accounts for the year ending 28 February 2017, incorporating FRS 102 The Financial Reporting Standard applicable
in the UK and Republic of Ireland. The company consider these accounting policies will be used in the accounts for
the year ending 28 February 2018.
 
3 Listed, AIM or NEX Markets-traded investments are stated at market value, which is based upon market bid prices
at the balance sheet date. These would all meet tier 1 of the fair value hierarchy.
 
4 7,860,937 Ordinary Shares of 10 pence each were in issue at the end of the period under review (weighted
average 7,860,937 shares).
 
5 Net Asset Value per share at 31 August 2017 was 91p (at 28 February 2017: 84p; 31 August 2016: 77p).
 
6 No dividend was paid in the period.
 
7 There have not been any significant events since the balance sheet date.
 
8 New Century AIM VCT plc is managed by M D Barnard & Co. Limited (‘MDB’), a company controlled by Michael
Barnard who is a non-executive director of the company. Under the terms of the management agreement MDB are
entitled to a fee (exclusive of VAT) equal to 1% per annum of the net assets of the company. During the period the
management fee was £36k (the year ended 28 February 2017: £69k, the period ended 31 August 2016: £52k).
 
9 Copies of the Interim Report to Shareholders have been sent to shareholders and are available at the Company’s
Registered Office: Tricor Secretaries Ltd, 4th Floor, 50 Mark Lane, London EC3R 7QR.
 
10 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 this interim financial information, 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 this interim financial information.
 

New Century AIM VCT plc

For the six months to 31st August 2017

Directors, Investment Manager and Advisors
 
Directors Geoffrey Charles Gamble (Chairman)
Michael David Barnard
Peter William Riley
Ian Cameron-Mowat
 
Secretary Tricor Secretaries Ltd
and registered office 4th Floor, 50 Mark Lane
London EC3R 7QR
 
Investment Manager and Broker MD Barnard & Co Ltd
17-21 New Century Road
Laindon
Essex SS15 6AG
 
Registrars Neville Registrars
18 Laurel Lane
Halesowen
B63 3DA
 
Auditor and VCT status advisors UHY Hacker Young LLP
Quadrant House
4 Thomas More Square
London E1W 1YW
 
Bankers Bank of Scotland
New Uberior House
11 Earl Grey Street
Edinburgh EH3 9BN
 

LEI: 213800DEURQTGUXXPY18

Classification: 1.2. Half yearly financial reports and audit reports/limited reviews

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