Half-year Report

Half-year Report

NEW CENTURY AIM VCT PLC

New Century AIM VCT plc
For the six months to 31 August 2022

Chairman’s Statement

The past six months has been a very difficult one for New Century, not just from a Stock Market point of view, but also with dealing with the many obstacles we had to face.

I would like to first apologise for the time it has taken to commence the return of your funds. The previous Board and our investment managers were opposed to the winding up of your fund. Instead of supporting the wish of the majority of the shareholders, they did their utmost to prevent such moves. John Brice, the fund’s former chairman with the support of myself put forward a motion to remove the Board with the exception of myself. The opposition to the former Board was so overwhelming that all the directors, with the exception of myself felt they were directly opposed to the wishes of the majority of the shareholders and decided to resign from the Board. John Brice and his colleague, Simon Bragg were appointed to the Board with a view to returning funds to the shareholders.

With regard to winding up the fund, we took legal advice as to the best way to achieve this. It was decided that the simplest and cheapest way to carry this out would be to wind the fund down. This required a legal document to be prepared by our lawyers which had to be approved by the FCA and then be voted upon by the shareholders. A resounding 100% of the shareholders who voted, voted in favour of the winding down of the fund. Unfortunately, by the time the approvals were met, we were already facing a bear market in the AIM market.

We are indebted to Simon Bragg who helped enormously in the legal process and in the preparation of the accounts, all without any remuneration. Having successfully helped us prepare the way for winding down the fund, Simon decided to step down from the Board to concentrate on his other interests.

Our previous auditors decided to withdraw from the audit of vct’s and we had to spend time getting quotes for a replacement auditor. At the same time, Oberon decided to terminate the bookkeeping facility that they provided to us. We have now successfully found new auditors and bookkeepers.

Oberon also decided that they were no longer going to provide us with the facility to make announcements for us to the London Stock Exchange. To set up a new facility, New Century had to first set up its own website incorporating my personal email linked to it. Although that involved much work, I’m pleased to say that we managed to set this up for less than £15.

For 17 years, M D Barnard & Co Ltd and more laterally, Oberon had settled the few invoices that we had to pay from any cash we held with them. Oberon decided that they were no longer going to pay third parties on our behalf. This meant that we had to obtain our own bank account. I imagined that this would be a relatively simple task but having tried around 25 banks, we have been unable to find a replacement bank. Initially, we found that one obstacle was that John Brice was a non UK resident and this proved to be a deterrent to several banks taking us on. To improve our chances of securing a current account with a bank, John Brice agreed to step down. We would like to thank him for his contribution which was also without remuneration. Until we secure a bank account we are unable to pay a dividend. I am personally covering any of the fund’s invoices and will be refunded when we eventually obtain a bank account.

John has been replaced by Spencer Crooks who was one of the founders of Winterflood Securities who are specialist dealers in the AIM market. His knowledge of this market is proving to be extremely helpful with regard to the winding down of the fund.

We have taken a policy decision to initially dispose of the more risky investments. We are particularly concerned about loss making companies that have low cash reserves and which are likely to have to come to the market for fresh funds. With interest rates rising and confidence in the market waning, we believe it will become more and more difficult for companies to raise fresh cash. This could lead to new shares being issued at a large discount to their prevailing share prices and in the worst cases, could lead to some of those companies being unable to survive. We have avoided quick fire sales of our holdings but instead been careful with the way we have conducted our selling with a view to trying to maximise the proceeds from sales. Some of the holdings have been quite large and it has not always been easy to liquidate them in one go. Nevertheless, we have successfully sold all the holdings where we have had concerns. Since the beginning of the company's financial year, this has involved the complete exit from fifty holdings. With the recent sales the fund is now 46 % liquid and allows us to pay back a dividend of 28p per share. As soon as we can obtain a bank account, we plan to pay the maximum dividend that we can. Following these sales, the fund is now comprised of much higher quality stocks which are better placed to withstand any economic shocks and to participate from the eventual recovery.

Michael Barnard
8 November 2022

Unaudited Balance Sheet

			Interim Accounts			Final Accounts			Interim Accounts
			as at 31 August 2022			as at 28 February 2022 *			as at 31 August 2021
			£000	£000		£000	£000		£000	£000
Fixed Assets
	Investments			4,810			7,324			9,212
Current Assets
	Debtors		472			411			369
				472			411			369
Current Liabilities
	Creditors: amounts due
	Within one year			(14)			(32)			(24)
Net Assets				5,268			7,703			9,557
Capital and Reserves
	Share capital			786			786			786
	Share premium			682			682			682
	Capital redemption reserve			400			400			400
	Capital reserve – realised			1,831			1,810			1.272
	Special distributable reserve			2,773			3.638			-
	Capital reserve – unrealised			(1,341)			248			6,246
	Revenue reserve			137			139			171
				5,268			7,703			9,557
Net Asset Value per share				67p			98p			121.6p
Audited

Unaudited Statement of Comprehensive Income
(incorporating the revenue account)

	6 month period ended 31 August 2022			Year to 28 February 2022*			6 month period ended 31 August 2021
	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments
Realised	-	(45)	(45)	-	448	448	-	114	114
Unrealised	-	(1,500)	(1,500)	-	(236)	(236)	-	1,379	1,379
Income	32	-	32	69	-	69	34	-	34
Investment management fees	(8)	(23)	(31)	(22)	(66)	(88)	(12)	(36)	(48)
Other expenses	(26)	-	(26)	(73)	-	(73)	(16)	-	(16)
Return on ordinary activities	(2)	(1,568)	(1,570)	(26)	146	120	6	1,457	1,463
Tax on ordinary activities	-	-	-	-	-	-	-	-	-
Return on ordinary activities
after taxation	(2)	(1,568)	(1,570)	(26)	146	120	6	1,457	1,463
Return per ordinary share in pence	(0.02)	(19.95)	(19.97)	(0.33)	1.86	1.53	0.08	18.53	18.61
*Audited
All revenue and capital items in the above statement derive from continuing operations in the current six month period. No operations were acquired or discontinued in the current period. Other than that shown above, the company had no recognised gains or losses. Accordingly, the above represents the total comprehensive income for the period. The weighted average number of shares in issue during the period was 7,860,937.

Unaudited Consolidated Statement of Changes in Equity

	Share	Share	Capital	Capital	Special	Capital	Revenue	Total
	Capital	Premium	Redemption	Realised	Distributable	Unrealised	Reserve
	Account	Account	Reserve		Reserve
	£000	£000	£000	£000	£000	£000	£000	£000
As at 1 March 2022	786	682	400	1,810	3,638	248	139	7,703
Realised losses this period	-	-	-	(45)	-	-	-	(45)
Unrealised decrease in value	-	-	-	-	-	(1,500)	-	(1,500)
Transfer of unrealised valuation gain to realised reserves on disposal of investments	-	-	-	89	-	(89)	-	-
Net revenue before tax	-	-	-	-	-	-	(2)	(2)
Capital element of investment management fee	-	-	-	(23)	-	-	-	(23)
Dividends paid	-	-	-	-	(865)	-	-	(865)
At 31 August 2022	786	682	400	1,831	2,773	(1,341)	137	5,268

	Share	Share	Capital	Capital	Special	Capital	Revenue	Total
	Capital	Premium	Redemption	Realised	Distributable	Unrealised	Reserve
	Account	Account	Reserve		Reserve
	£000	£000	£000	£000	£000	£000	£000	£000
As at 1 March 2021	786	682	400	1,143	0	4918	165	8,094
Realised gains this period	-	-	-	448	-	-	-	448
Unrealised decrease in value	-	-	-			(236)	-	(236)
Transfer of unrealised valuation gain to realised reserves on disposal of investments	-	-	-	285	-	(285)	-	-
Net revenue before tax	-	-	-	-	-	-	(26)	(26)
Capital element of investment management fee	-	-	-	(66)	-	-	-	(66)
Inter reserve transfer	-	-	-	-	4,149	(4,149)	-	-
Dividends paid	-	-	-	-	(511)	-	-	(511)
At 28 February 2022*	786	682	400	1,810	3,638	248	139	7,703
*Audited
Note: Some columns on this page may not cast because of rounding differences.

Unaudited Consolidated Statement of Changes in Equity (continued)

	Share	Share	Capital	Capital	Capital	Revenue	Total
	Capital	Premium	Redemption	Realised	Unrealised	Reserve
	Account	Account	Reserve
	£000	£000	£000	£000	£000	£000	£000
As at 1 March 2021	786	682	400	1,143	4,918	165	8,094
Realised gains/losses this period	-	-	-	114	-	-	114
Unrealised decrease in value	-	-	-		1,379	-	1,379
Transfer of unrealised valuation gain to realised reserves on disposal of investments	-	-	-	50	(50)	-	-
Net revenue before tax	-	-	-	-	-	6	6
Capital element of investment management fee	-	-	-	(36)	-	-	(36)
Inter reserve transfer	-	-	-	-	-	-	-
At 31 August 2021	786	682	400	1,272	6,246	171	6,557
Note: Some columns on this page may not cast because of rounding differences.

Unaudited Cash Flow Statement

		6 month period ended						6 month period ended
		31 August 2022			Year to 28 February 2022 *			31 August 2021
		£000	£000		£000	£000		£000	£000
Net cash used in operating activities			(18)			(217)			(73)
Cash flows from investing activities
Investment income		32			69			34
Net cash from investing activities			32			69			34
Cash flows from investing activities
Sale of investments		1,159			1,278			529
Purchase of investments		(192)			(386)			(244)
Dividends paid		(865)			(511)			-
Net cash generated from financing activities			102			381			285
Net increase/(decrease} in cash and cash equivalents			116			233			246
Cash and cash equivalents at beginning of period			356			123			123
Cash and cash equivalents at end of period			472			356			369
Audited

Security	Cost	Valuation	%	%
		31 August 2022	Cost	Valuation
Qualifying Investments	5,709,736	4,669,233	89.75	90.38
Non-qualifying Investments	296,011	140,833	4.65	2.73
	6,005,747	4,810,065	94.4	93.11
Uninvested funds	356,250	356,250	5.6	6.89
	6,361,997	5,166,315	100.00	100.00
Qualifying Investments
AIM Quoted
AFC Energy	50,254	85,875	0.79	1.66
Angle plc	103,016	111,015	1.62	2.15
Anglo African Oil & Gas plc	45,229	0	0.71	0.00
Arecor Therapeutics	12,816	15,231	0.20	0.29
Audioboom Group plc	121,167	331,542	1.90	6.42
Bango plc	7,563	34,125	0.12	0.66
Belluscara	100,506	171,111	1.58	3.31
Belvoir Lettings plc	23,320	44,000	0.37	0.85
Bigblu Broadband plc	140,398	156,934	2.21	3.04
Bilby/Kinovo plc	156,673	95,413	2.46	1.85
Blackbird plc	96,735	375,375	1.52	7.27
Brighton Pier Group plc	50,253	23,063	0.79	0.45
C4X Discovery Holding plc	60,354	97,681	0.95	1.89
Clean Power Hydrogen	50,253	48,778	0.79	0.94
Cloudbuy plc	58,483	228	0.92	0.00
Concepta plc/Myhealthchecked	75,379	112,219	1.18	2.17
Myhealthchecked	25,128	114,014	0.39	2.21
Coral Products plc	118,095	111,667	1.86	2.16
Cyanconnode Holdings plc	376,755	90,793	5.92	1.76
DCD Media plc	562,800	0	8.85	0.00
Destiny Pharma plc	175,885	128,808	2.76	2.49
Diaceutics plc	10,314	12,285	0.16	0.24
DP Poland plc	20,113	10,472	0.32	0.20
Ecsc Group	20,104	15,018	0.32	0.29
Entertainment Ai/now SEEEN plc	150,754	30,000	2.37	0.58
Escape Hunt plc/now XP Factory	31,006	2,616	0.49	0.05
Falanx Group Ltd	145,939	33,911	2.29	0.66
Feedback plc	100,508	52,048	1.58	1.01
Gear4Music Holdings lc	27,121	27,277	0.43	0.53
Gfinity plc	116,218	43,065	1.83	0.83
Immotion Group plc	130,661	63,363	2.05	1.23
Inspired Energy plc	43,391	157,705	0.68	3.05
Intelligent Ultrasound Group plc	170,320	156,118	2.68	3.02
K3 Business Technology Group plc	90,360	129,870	1.42	2.51
Keywords Studios plc	5,563	111,780	0.09	2.16
Libertine Holdings	75,378	76,856	1.18	1.49
Lightwaverf plc	45,233	2,647	0.71	0.05
Location Sciences Group plc	132,946	9,479	2.09	0.18
M.Winkworth plc	64,320	144,000	1.01	2.79
Marechale Capital plc	133,828	34,980	2.10	0.68
Maxcyte Inc	25,128	161,249	0.39	3.12
Microsaic Components	154,711	2,040	2.43	0.04
N4 Pharma plc	60,304	9,600	0.95	0.19
Pelatro plc	25,128	9,200	0.39	0.18
PHSC plc	169,845	67,600	2.67	1.31
Property Franchise Group plc	156,431	386,446	2.46	7.48
Quixant plc	6,935	21,750	0.11	0.42
Scholium Group plc	50,253	20,000	0.79	0.39
Scancell Holdings plc	54,877	36,775	0.86	0.71
Scancell Holdings plc	75,741	71,906	1.19	1.39
Solid State plc	40,134	181,500	0.63	3.51
SRT Marine Systems plc	4,523	7,500	0.07	0.15
Sysgroup plc	99,177	41,113	1.56	0.80
Touchstar plc	281,400	87,500	4.42	1.69
Trellus Health	25,128	5,150	0.39	0.10
Tristel plc	14,306	118,746	0.22	2.30
Vianet Group plc	40,175	18,363	0.63	0.36
Verici Dx	101,505	72,347	1.60	1.40
Yourgene Health plc	69,349	20,700	1.09	0.40
Yu Group plc	27,893	25,500	0.44	0.49
	5,408,083	4,626,343	85.01	89.55
AQSE listed
Sulnox Grp	35,279	19,890	0.55	0.38
Truspine	50,253	23,000	0.79	0.45
	85,532	42,890	1.34	0.83
Unlisted Investments
Invocas Group plc	100,400	0	1.58	0.00
Outsourcery plc	45,027	0	0.71	0.00
Optare plc	50,753	0	0.80	0.00
Syqic plc	19,943	0	0.31	0.00
	216,122	0	3.40	0.00
Total Qualifying Investments	5,709,737	4,669,233	89.75	90.38

Non Qualifying Investments
AIM Quoted
Audioboom Group plc	1,163	678	0.02	0.01
Bango plc	92	195	0.00	0.00
Bango plc	199	195	0.00	0.00
Cyanconnode Holdings plc	131	16	0.00	0.00
Driver Group plc	8,992	3,300	0.14	0.06
Gateley Holdings plc	4,876	9,600	0.08	0.19
K3 Business Technology Group plc	131	130	0.00	0.00
Rotala plc	60,796	54,945	0.96	1.06
Tristel plc	60	324	0.00	0.01
	76,439	69,383	1.20	1.35
UK LISTED
Aviva plv	5,344	5,075	0.08	0.10
Investec plc – preference shares	107,376	66,375	1.69	1.28
	112,720	71,450	1.77	1.38
Unlisted Investments
China Food Company plc	65,969	0	1.04	0.00
Gable Holdings Inc	12,112	0	0.19	0.00
Mar City plc	10,053	0	0.16	0.00
Sorbic International plc	18,717	0	0.29	0.00
	106,851	0	1.68	0.00
Total Non-qualifying Investments	296,011	140,833	4.65	2.73

Notes to the Accounts

This interim financial information and the unaudited interim accounts for the six months to 31 August 2022 from which it has been extracted, are the responsibility of the directors and were approved by them on 8 November 2022, 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 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 2018) and with the Statement of Recommended Practice for Investment Companies re-issued by the Association of Investment Companies in November 2014 and updated in April 2021.

The unaudited interim accounts have been prepared using accounting policies that the company applied in the accounts for the year ending 28 February 2022, incorporating FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The company considers these accounting policies will be used in the accounts for the year ending 28 February 2022.

Listed, AIM or AQSE 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.

7,860,937 Ordinary Shares of 10 pence each were in issue throughout the period under review.

The net asset value per share, using bid-prices to value the fund’s investment portfolio, at 31 August 2022 was 67p (at 28 February 2022: 98p; 31 August 2021: 121.6p).

On the 22 September 2021 a dividend of 9p per share was paid to shareholders.

There have not been any significant events since the balance sheet date.

New Century AIM VCT plc is managed by Oberon Investments Limited (‘OIL’). Under the terms of the management agreement OIL is 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 £48k (the year ended 28 February 2022: £65k, the period ended 31 August 2021:

£27k).

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.

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.

Directors, Investment Managers and Advisors

Directors, Investment Manager and Advisors
Directors	Michael David Barnard (Chairman)
	Spencer Crooks (appointed 16 August 2022) Simon Bragg (appointed 10 February 2022 resigned 30 June 2022) John Brice (appointed 10 February 2022 resigned 16 August 2022)
Secretary	Tricor Secretaries Ltd
and registered office	4th Floor, 50 Mark Lane
	London EC3R 7QR
Investment Manager and Broker	Oberon Investments Limited
	First Floor
	12 Hornsby Square
	Southfields Business Park
	Basildon
	Essex SS15 6SD
Registrars	Neville Registrars Limited
	Neville House
	Steelpark Road
	Halesowen
	West Midlands B62 8HD
Auditor	Hazlewoods
	Windsor House
	Bayshill Road Cheltenham GL50 3AT
Solicitors	Douglas Minto
	Broadgate Tower
	20 Primrose Street
	London EC2A 2EW

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