Hargreave Hale AIM VCT 1 plc : Annual Financial...

Hargreave Hale AIM VCT 1 plc announced its results for the year ended 30
September 2011 on 22 September 2011. The full Financial Statements can be
accessed on the Company's website

http://www.hargreave-hale.co.uk/fund-
management/venture-capital-trusts/hargreave-hale-aim-vct-1/factsheets-and-
reports/ or alternatively by following the link at the bottom of this report.

FINANCIAL HIGHLIGHTS

Ordinary Shares (as at 30 September):                             2011    2010



Net asset value per share                                         61.14p  62.67p

Cumulative distributions paid per share since launch              23.0p   19.00p

Total return                                                      84.14p  81.67p



Discount to Net Asset Value (based on bid-market price at balance 13.3%   15.0%
sheet date)



Annual Returns per share:

Revenue return                                                    (0.25)p 0.07p

Capital return                                                    2.31p   0.21p

Combined Return                                                   2.06p   0.28p



Dividends per share:

Interim paid                                                      2.0p    2.0p

Final proposed                                                    2.0p    2.0p

Total dividend for year                                           4.0p    4.0p



Performance Benchmark:

Total Return                                                      88.6%   86.0%

FTSE AIM All-share Index                                          72.7%   81.2%

(results rebased to 100 at 29 October 2004)

The Glossary of Terms can be found on page 39 of the report.






CHAIRMAN'S STATEMENT

Introduction

At  30 September  2011 the  NAV  was  61.14 pence  which  after  adding back the
dividends paid gives a total return since inception of 84.14 pence. The gain per
ordinary share for the year was 2.06 pence per share (comprising revenue loss of
(0.25) pence and capital gains of 2.31 pence).

Investments

The Investment Manager, Hargreave Hale Limited, invested a further £2.15 million
in   12 qualifying   companies   during   the   year  and  1 company  went  into
administration  realising  a  net  loss  of  £0.3  million.  The  Fair  Value of
qualifying investments at 30 September 2011 was £11.3 million invested in 40 AIM
companies  and 3 unquoted companies.  £5.05 million was  held in a  mix of cash,
fixed  income and other non-qualifying equities; more detail can be found in the
Investment Manager's Report on page 7.

Dividend

An interim dividend of 2 pence was paid on 14 July 2011 (2010 - 2 pence).

A  final dividend  of 2 pence  is proposed  (2010 -  2 pence) which,  subject to
shareholder  approval at  the AGM  will be  paid on 23 January 2012, to ordinary
shareholders on the register on 30 December 2011.

The  directors have maintained a dividend policy  of at least 5 per cent. of the
year end NAV. Subject to market conditions they expect that this will continue.

Buybacks

We  were  pleased  that  we  were  able  to  maintain our policy of offering our
shareholders  an  efficient  exit  route  through  the buyback scheme. In total,
1,256,460 Shares  were purchased during  the year at  an average price of 60.19
pence per share.

Continuation Vote

At  the forthcoming General Meeting a vote will be put to shareholders to decide
whether  or not to continue as a VCT. As  referred to above we have been able to
honour our intention at the outset to buy back shares from shareholders at a 10
per  cent. discount. I believe all shareholders  who so wished have been able to
exit.  If  we  wound  up  the  fund  it  is unlikely that after all of the costs
involved we would achieve a better result than this. Furthermore, in the current
market  the shares in our portfolio companies are significantly depressed and in
most  cases  very  illiquid.  Therefore  your  board recommends that you vote in
favour  of the Continuation as they will be doing with their own shares (114,163
representing 0.43 per cent. of the Company)

New Joint Offer for Subscription of Ordinary Shares

On  the 9 March 2011 a new  joint offer for subscription  of Ordinary Shares was
opened to raise up to approximately £2.65 million, in aggregate, in New Ordinary
Shares  for Hargreave Hale AIM  VCT 1 plc and Hargreave  Hale AIM VCT 2 plc. The
Offer  has resulted  in funds  being received  of £0.37 million and 0.54 million
shares  have been issued in  respect of Hargreave Hale  AIM VCT 1 plc. The offer
closed on the 29 July 2011.

VCT Status

To  maintain its VCT qualifying  status we must invest  at least 70 per cent. of
the  net funds  raised in  any one  accounting period  in qualifying investments
within  three years. At  the yearend we  have achieved 86.34 per  cent. and have
satisfied all the relevant tests.

Outlook

The major contributor to the recession of the 1930's was the collapse of banks
which had a domino effect on other banks and the reduced supply of money
massively slowed up the economy. If a major bank in Europe which are today
considerably larger and have a much greater market share were allowed to default
the knock on effect around the globe is too awful to contemplate.

It is clear in that certain countries, of which Greece is the prime example, are
insolvent. Whilst strenuous efforts are being made to stop Greece defaulting
there are good reasons to believe that at least in the medium term this will not
succeed.  However a great number of banks have massive exposure to sovereign
debt and will need to be supported by their governments, always assuming they
are able to raise money. In the face of this prospect almost all banks are
trying to reduce their levels of gearing either by raising more money which few
are able to achieve or by reducing the size of their loan books. The effect of
this is a slowing of economic growth.

The longer the European Union takes to make strong and effective action the
closer Europe moves towards financial meltdown. Stock Markets reflect investor
confidence which is affected by many influences. At the present time there are
some huge uncertainties about sovereign and bank debt in Europe and the effect
that that this will have on the Euro and this is causing a lack of investor
confidence and a flight to perceived quality which hits the AIM market hardest.

Despite the extreme negative economic outlook, we believe that we have a well
balanced mature portfolio of well funded companies which are well positioned to
weather any further economic disruption. The Company maintains 25 per cent. of
its NAV in cash or fixed income which may be used to exploit interesting
investment opportunities which may arise out of economic adversity.



Sir Aubrey Brocklebank

Chairman

Date: 21 November 2011


For further information, please contact:-
Stuart Brookes
Company Secretary
Hargreave Hale AIM VCT 1 Plc
01253 754740

Annual Report and Accounts - Year ended September 2011






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Source: Hargreave Hale AIM VCT 1 plc via Thomson Reuters ONE

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