Octopus Apollo VCT plc : Half-yearly report

OCTOPUS APOLLO VCT PLC

Half-yearly Results

23 September 2015

Octopus Apollo VCT plc, managed by Octopus Investments Limited, today announces the half-yearly results for the six months ended 31 July 2015.

These results were approved by the Board of Directors on 22 September 2015.

You may shortly view the half-yearly report in full by visiting the website using the following link: http://www.octopusinvestments.com/investors/shareholder-information/apollo-vct/.

All other statutory information will also be found there.

Financial Headlines

	Ordinary Shares	C Ordinary Shares
Net Asset Value (NAV) at 31 July 2015	83.6p	98.0p
Cumulative dividends paid since launch*	30.0p	7.0p
NAV plus cumulative dividends paid	113.6p	105.0p
Interim dividend declared for the half-year to 31 July 2015	2.5p	-

* Cumulative dividends paid since launch in C Ordinary Share Class includes dividends paid from Octopus VCT plc prior to the merger with Octopus Apollo VCT Plc ("Apollo") on 28 November 2014.

The interim dividend will be paid to all Apollo Ordinary Shareholders including C Ordinary Shareholders who elected to convert their C Ordinary Shares to Apollo Ordinary Shares.

About Octopus Apollo VCT plc
Octopus Apollo VCT plc ('Apollo' or 'Company') is a venture capital trust ('VCT') which aims to provide shareholders with attractive tax-free dividends and long-term capital growth, by investing in a diverse portfolio of predominantly unquoted companies. The Company is managed by Octopus Investments Limited ('Octopus' or the 'Manager').

The Company, formerly named Octopus Apollo VCT 3 plc, was launched in July 2006 and raised over £27.1 million (£25.9 million net of expenses) through an offer for subscription by the time it closed on 5 April 2007. On 27 September 2012, the Company acquired the net assets of Octopus Apollo VCT 1 plc, Octopus Apollo VCT 2 plc and Octopus Apollo VCT 4 plc. On the same day, the Company was renamed Octopus Apollo VCT plc. On 28 November 2014 the C Ordinary Shares were created as part of the acquisition of the assets and liabilities of Octopus VCT plc. The objective of the Company is to invest in a diversified portfolio of UK smaller companies in order to generate income and capital growth over the long-term.

The Company launched an offer for subscription on 24 October 2014 to raise £20 million, with an over allotment facility of £10 million. In total £24,851,000 has been raised to date.

Venture Capital Legislation

The Government announced in the Budget on 19 March 2015 some amendments to VCT legislation which are subject to EU State Aid approval. As announced in the Budget, changes to qualifying investments include the following:

• companies must be less than 7 years old when receiving their first EIS or VCT investment (10 years old for knowledge intensive companies), except where the investment will lead to a substantial change in the company's activity;
• a lifetime cap on total investment received under the tax-advantaged venture capital schemes of £12 million, increasing to £20 million for knowledge-intensive companies; and
• an increase in the employee limit for knowledge-intensive companies to 499 employees, from the current limit of 249 employees.

Financial Summary

Ordinary Shares	Six months to 31 July 2015	Year to 31 January 2015
Net assets (£'000s)	83,468	68,810
Return on ordinary activities after tax (£'000s)	1,477	2,270
Net asset value per share ("NAV")	83.6p	84.8p
Cumulative dividends declared since launch	30.0p	27.5p
Total return (NAV plus cumulative dividends declared)	113.6p	112.3p
Proposed dividend per share	2.5p*	2.5p

*The interim dividend of 2.5p will be paid on 18 December 2015 to all Ordinary Shareholders on the register on 13 November 2015.

C Ordinary Shares	Six months to 31 July 2015	Period to 31 January 2015
Net assets (£'000s)	50,770	50,753
Return on ordinary activities after tax (£'000s)	17	22
Net asset value per share ("NAV")	98.0p	98.0p
Cumulative dividends declared since launch*	7.0p	7.0p
Total return (NAV plus cumulative dividends declared)	105.0p	105.0p

* Cumulative dividends paid since launch include dividends paid from Octopus VCT plc prior to the merger with Apollo on 28 November 2014.

Reconciliation of the Movement in NAV per share

	Ordinary Shares		C Ordinary Shares
NAV as at 31 January 2015	84.8p	98.0p
Income	1.8p	1.1p
General Expenses	(0.5)p	(0.5)p
Management fees	(0.8)p	(1.5)p
Performance fees	-	-
Taxation on ordinary activities	-	(0.2)p
Unrealised gains on investments	0.8p	0.2p
Realised gains on investments	-	0.9p
Dividends paid	(2.5)p	-
NAV as at 31 July 2015	83.6p	98.0p

Chairman's Statement

Introduction
I am pleased to present the half-yearly report of Octopus Apollo VCT plc for the six months ended 31 July 2015.

Performance
During the period under review, the net asset value plus cumulative dividends paid to date increased from 112.3p for Ordinary Shares as at 31 January 2015 to 113.6p and remained at 105.0p for C Ordinary Shares as at 31 July 2015. This positive return comes largely as a result of an overall uplift in the value of the Company's portfolio in both Ordinary Shares and C Ordinary Shares and a realised exit of eight solar investments at a value in excess of their carrying value. A further contributing factor for the performance of Ordinary Shares is the revenue profits generated by the loan interest income exceeding the day-to-day running costs of the Company.

Fundraising
The Company launched an offer for subscription on 24 October 2014. I am pleased to report that this was well received and, on 5 June 2015, use of the over allotment facility of £10 million was approved by the Board, increasing the maximum amount that can be raised to £30 million. At the time of writing £24,851,000 had been raised. The Offer is due to close on 1 October 2015.

Conversion of C Ordinary Shares and C Ordinary Share Dividend
In accordance with the circular dated 3 July 2015, former shareholders of Octopus VCT plc (holders of C Ordinary Shares), all of whom had passed the five year VCT qualifying period, were offered the opportunity to either elect to receive a dividend on their C Ordinary Shares and exit their investment or to convert their C Ordinary shareholding into Apollo Ordinary Shares. A dividend of 98.0p was paid on 34,947,712 C Ordinary Shares, amounting to approximately £34.2 million. The remaining 16,858,107 C Ordinary Shares were converted to Ordinary Shares at a conversion ratio of 1.17506 (based on an Ordinary Share NAV of 83.4p and a C Ordinary Share NAV of 98.0p), resulting in the issue of 19,809,055 Ordinary Shares.

Investment Portfolio
During the period under review, the Ordinary Share portfolio increased its participation in Terido LLP (Terido), a limited liability partnership also managed by Octopus, by £10,000,000, to £25,222,110. The full amount was withdrawn from Terido in August 2015 to pay the C Ordinary Share dividend referred to above. In February and July 2015 the Ordinary Share portfolio invested £2,500,000 into each of Coupra Limited, Dyscova Limited and Emercor Limited. Each investment comprises Ordinary Shares of £250,000 and loan notes of £2,250,000.

A number of loans have been partially repaid during the period in both the Ordinary Share portfolio and the C Ordinary Share portfolio, as follows:

Partial Loan Repayments	Ordinary Shares (£'000)	C Ordinary Shares (£'000)
Healthcare Services and Technology Limited	1,350	1,350
Erie Heat Limited	532	532
Winnipeg Heat Limited	210	210

The C Ordinary Share portfolio also realised in full its investment in a number of Solar investments in April 2015, resulting in a realised gain of £570,000. The following investments were exited:

C Ordinary Shares Solar Exits	Cost (£'000)	Proceeds (£'000)
Grian Power Limited	500	594
Howbery Solar Park Limited	707	833
Gnowee Power Limited	614	683
Helaku Power Limited	609	682
Hella Solar Limited	614	682
Nima Power Limited	614	684
Tuwale Power Limited	614	684
Michabo Power Limited	40	40
Total	4,312	4,882

Investment Strategy
As set out in the prospectus, the aim of the Company is to make investments that focus more on regular income than a typical VCT. To date the Investment Manager has been successful in achieving this aim, as evidenced by the positive return on ordinary activities.

Typically the structure of the investments is weighted more heavily towards loan based instruments as opposed to equity. Such investments provide fixed returns and payments are generally ranked above most other creditors, allowing for future visibility and security. This strategy also reduces the downward risk that is an intrinsic element of an equity investment.

Dividend and Dividend Policy
Dividends paid by a VCT are attractive as they are received by shareholders free of income tax. It is for that reason that your Board makes every effort to maintain a consistent dividend flow when possible. Your Board has declared an interim dividend of 2.5 pence per Ordinary Share in respect of the six months ended 31 July 2015. The dividend will be paid on 18 December 2015 to Ordinary Shareholders on the register on 13 November 2015. This will be paid to all Apollo Ordinary Shareholders including C Ordinary Shareholders who elected to convert their C Ordinary Shares to Apollo Ordinary Shares.

This follows the dividend of 2.5 pence per share that was paid to Ordinary Shareholders on 31 July 2015 in relation to the year ended 31 January 2015.

VCT Qualifying Status
PricewaterhouseCoopers LLP provides the Board and Investment Manager with advice concerning ongoing compliance with Her Majesty's Revenue & Customs (HMRC) rules and regulations concerning VCTs. The Board is pleased to confirm that it has been advised that Apollo is in compliance with the conditions laid down by HMRC for maintaining approval as a VCT.

A key requirement is to maintain at least the 70% qualifying investment level. As at 31 July 2015, 78.0% of the portfolio, as measured by HMRC rules, was invested in VCT qualifying investments.

Principal Risks and Uncertainties
The principal risks and uncertainties are set out in note 6 of the Notes to the Half-Yearly Report.

Outlook
The outlook for the economy continues to improve and we are delighted with the ongoing solid performance of our investments, with a pleasing uplift of £794,000 in the value of the portfolio in the six months to 31 July 2015. This, along with the revenue profits generated by the portfolio, has led to an increase in the NAV plus cumulative dividends paid to the Ordinary Shareholders.

We have been delighted with the outcome of the merger which has given C Ordinary Shareholders an opportunity to remain invested in Apollo. This has resulted in the issue of 19,809,055 Ordinary Shares. It has also provided a timely exit for those C Ordinary Shareholders who remained committed to the original five year investment plan.

Your Board and Investment Manager remain confident there will be further progress in the Company because it has an active pipeline of attractive investment opportunities as evidenced by the Company having invested £5 million into each of two operating businesses subsequent to 31 July 2015.

I shall write to you again in the new year with a more detailed update in the annual report and accounts. In the meantime, if you have any questions on any aspect of your investment, please call one of the team on 0800 316 2295.

Murray Steele
Chairman
22 September 2015

Investment Portfolio

Consolidated Fixed Asset Table

Investments	Sector		Investment cost as at 31 July 2015 (£'000)	Movement in fair value to 31 July 2015 (£'000)	Fair value as at 31 July 2015 (£'000)	Movement in fair value in period	% equity held by Apollo VCT	% equity held by all funds managed by Octopus
Terido LLP *	Asset backed lending		25,222	-	25,222	-	0.0%	0.00%
Clifford Thames Group Limited	Automotive Software & data		13,318	1,111	14,429	-	14.0%	14.0%
CSL DualCom Holdings Limited	Security devices		10,806	232	11,038	180	3.4%	3.4%
Vista Retail Support Limited	Retail support services		3,758	356	4,114	356	10.4%	10.4%
Countrywide Healthcare Supplies Limited	Healthcare		2,675	330	3,005	330	20.7%	20.7%
Aquaso Limited	Investment company		4,200	-	4,200	-	49.9%	99.8%
Byena Limited	Investment company		2,500	-	2,500	-	49.9%	99.8%
Coupra Limited	Investment company		2,500	-	2,500	-	49.9%	99.8%
Dyscova Limited	Investment company		2,500	-	2,500	-	49.9%	99.8%
Emercor Limited	Investment company		2,500	-	2,500	-	49.9%	99.8%
Other*			36,890	626	37,516	33
Total fixed asset investments			106,869	2,655	109,524	899
Money market funds					-
Cash at bank					25,419
Debtors less creditors					(705)
Total net assets					134,238

*   Comprises 43 other investments

Ordinary Shares

Investments	Sector		Investment cost as at 31 July 2015 (£'000)	Movement in fair value to 31 July 2015 (£'000)	Fair value as at 31 July 2015 (£'000)	Movement in fair value in period	% equity held by Apollo VCT	% equity held by all funds managed by Octopus
Terido LLP *	Asset backed lending		25,222	-	25,222	-	0.0%	0.0%
Clifford Thames Group Limited	Automotive Software & data		7,197	1,111	8,308	-	7.6%	14.0%
CSL DualCom Holdings Limited	Security devices		6,911	173	7,084	108	2.0%	3.4%
Vista Retail Support Limited	Retail support services		3,758	356	4,114	356	10.4%	10.4%
Countrywide Healthcare Supplies Limited	Healthcare		2,675	330	3,005	330	20.7%	20.7%
Byena Limited	Investment company		2,500	-	2,500	-	49.9%	99.8%
Coupra Limited	Investment company		2,500	-	2,500	-	49.9%	99.8%
Dyscova Limited	Investment company		2,500	-	2,500	-	49.9%	99.8%
Emercor Limited	Investment company		2,500	-	2,500	-	49.9%	99.8%
Aquaso Limited	Investment company		2,100	-	2,100	-	49.9%	99.8%
Other*			10,553	814	11,367	(1)
Total fixed asset investments			68,416	2,784	71,200	793
Money market funds					-
Cash at bank					25,419
Debtors less creditors					(13,151)
Total net assets					83,468

*   Comprises 10 other investments

Investments held by C Ordinary Shares

Investments	Sector		Investment cost as at 31 July 2015 (£'000)	Movement in fair value to 31 July 2015 (£'000)	Fair value as at 31 July 2015 (£'000)	Movement in fair value in period	% equity held by Apollo VCT	% equity held by all funds managed by Octopus
Clifford Thames Group Limited	Automotive Software & data		6,121	-	6,121	-	6.4%	14.0%
CSL DualCom Holdings Limited	Security devices		3,895	59	3,954	72	1.4%	3.4%
Aquaso Limited	Investment company		2,100	-	2,100	-	49.9%	99.8%
GreenCo Services 2	Solar		1,600	261	1,861	131	40.9%	100.0%
3AM Music Limited	Media		1,500	94	1,594	(50)	49.9%	99.8%
Tanganyika Heat Limited	Anerobic Digestion		1,468	-	1,468	-	49.9%	99.8%
Healthcare Services and Technology Limited	Investment company		1,093	-	1,093	-	49.9%	99.8%
Huitzilopochtli Ltd	Solar		1,000	39	1,039	39	49.9%	99.8%
Jokim Ltd	Solar		952	58	1,010	36	49.9%	99.8%
Superior Heat Limited	Ground source heat		1,000	-	1,000	-	49.9%	99.8%
Other*			17,724	(640)	17,084	(122)
Total fixed asset investments			38,453	(129)	38,324	106
Money market funds					-
Cash at bank					-
Debtors less creditors					12,446
Total net assets					50,770

*   Comprises 23 other investments

Responsibility Statement of the Directors in respect of the Half-Yearly Report

We confirm that to the best of our knowledge:

• the half-yearly financial statements have been prepared in accordance with the statement "Interim Financial Reporting" issued by the Financial Reporting Council;

• the half-yearly report includes a fair review of the information required by the Financial Conduct Authority's Disclosure and Transparency Rules, being:

• an indication of the important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements;
• a description of the principal risks and uncertainties for the remaining six months of the year; and
• a description of related party transactions that have taken place in the first six months of the current financial year, that may have materially affected the financial position or performance of the Company during that period and any changes in the related party transactions described in the last annual report that could do so.

On behalf of the Board

Murray Steele
Chairman
22 September 2015

Income Statement - Consolidated
	Six months to 31 July 2015			Six months to 31 July 2014			Year to 31 January 2015
	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Realised gain on disposal of fixed asset investments	-	478	478	-	104	104	-	1,311	1,311
Fixed asset investment holding gains	-	899	899	-	2,064	2,064	-	1,198	1,198
Investment income	2,244	-	2,244	1,381	-	1,381	3,366	-	3,366
Investment management fees	(355)	(1,065)	(1,420)	(136)	(801)	(937)	(460)	(1,844)	(2,304)
Other expenses	(666)	-	(666)	(609)	-	(609)	(1,247)	-	(1,247)
Return on ordinary activities before tax	1,223	312	1,535	636	1,367	2,003	1,659	665	2,324
Taxation on return on ordinary activities	(41)	-	(41)	-	-	-	(286)	254	(32)
Return on ordinary activities after tax	1,182	312	1,494	636	1,367	2,003	1,373	919	2,292
Earnings per share - basic and diluted	0.8p	0.2p	1.0p	0.8p	1.8p	2.6p	1.8p	1.2p	3.0p

• The 'Total' column of this statement is the profit and loss account of the Company; the supplementary revenue return and capital return columns have been prepared under guidance published by the Association of Investment Companies.
• 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 made in shares and securities and from bank and money market funds.
• The Company has no recognised gains or losses other than those disclosed in the income statement.
• The accompanying notes are an integral part of the half-yearly report.

Income Statement - Ordinary Shares
	Six months to 31 July 2015			Year to 31 January 2015
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Realised gain on disposal of fixed asset investments	-	-	-	-	795	795
Fixed asset investment holding gains	-	793	793	-	1,340	1,340
Investment income	1,679	-	1,679	2,819	-	2,819
Investment management fees	(157)	(471)	(628)	(266)	(1,261)	(1,527)
Other expenses	(400)	-	(400)	(1,125)	-	(1,125)
Return on ordinary activities before tax	1,122	322	1,444	1,428	874	2,302
Taxation on return on ordinary activities	33	-	33	(286)	254	(32)
Return on ordinary activities after tax	1,155	322	1,477	1,142	1,128	2,270
Earnings per share - basic and diluted	1.2p	0.3p	1.5p	1.5p	1.4p	2.9p

• The 'Total' column of this statement is the profit and loss account of the Company; the supplementary revenue return and capital return columns have been prepared under guidance published by the Association of Investment Companies.
• 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 made in shares and securities and from bank and money market funds.
• The Company has no recognised gains or losses other than those disclosed in the income statement.
• The accompanying notes are an integral part of the half-yearly report.

Income Statement - C Ordinary Shares
	Six months to 31 July 2015			Year to 31 January 2015
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Realised gain on disposal of fixed asset investments	-	478	478	-	516	516
Fixed asset investment holding gains	-	106	106	-	(142)	(142)
Investment income	565	-	565	547	-	547
Investment management fees	(198)	(594)	(792)	(194)	(583)	(777)
Other expenses	(266)	-	(266)	(122)	-	(122)
Return on ordinary activities before tax	101	(10)	91	231	(209)	22
Taxation on return on ordinary activities	(74)	-	(74)	-	-	-
Return on ordinary activities after tax	27	(10)	17	231	(209)	22
Earnings per share - basic and diluted	0.1p	-	0.1p	2.5p	(2.3)p	0.2p

• The 'Total' column of this statement is the profit and loss account of the Company; the supplementary revenue return and capital return columns have been prepared under guidance published by the Association of Investment Companies.
• 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 made in shares and securities and from bank and money market funds.
• The Company has no recognised gains or losses other than those disclosed in the income statement.
• The accompanying notes are an integral part of the half-yearly report.

Reconciliation of Movements in Shareholders' Funds - Consolidated
	Six months ended 31 July 2015	Six months ended 31 July 2014	Year to 31 January 2015
	£'000	£'000	£'000
Shareholders' funds at start of period	119,563	63,905	63,905
Return on ordinary activities after tax	1,494	2,003	2,292
Issue of shares	16,041	3,866	59,216
Purchase of own shares	(498)	(1,052)	(2,014)
Dividends paid	(2,362)	(1,921)	(3,836)
Shareholders' funds at end of period	134,238	66,801	119,563

The Company has no recognised gains or losses other than the results for the period as set out above.

Reconciliation of Movements in Shareholders' Funds - Ordinary Shares
	Six months ended 31 July 2015	Year to 31 January 2015
	£'000	£'000
Shareholders' funds at start of period	68,810	63,905
Return on ordinary activities after tax	1,477	2,270
Issue of shares	16,041	8,283
Purchase of own shares	(498)	(1,812)
Dividends paid	(2,362)	(3,836)
Shareholders' funds at end of period	83,468	68,810

The Company has no recognised gains or losses other than the results for the period as set out above.

Reconciliation of Movements in Shareholders' Funds - C Ordinary Shares
	Six months ended 31 July 2015	Year to 31 January 2015
	£'000	£'000
Shareholders' funds at start of period	50,753	-
Return on ordinary activities after tax	17	22
Issue of shares	-	50,933
Purchase of own shares	-	(202)
Dividends paid	-	-
Shareholders' funds at end of period	50,770	50,753

The Company has no recognised gains or losses other than the results for the period as set out above.

Balance Sheet - Consolidated
	As at 31 July 2015		As at 31 July 2014		As at 31 January 2015
	£'000	£'000	£'000	£'000	£'000	£'000
Fixed asset investments*		109,524		57,438		100,039
Current assets:
Investments - money market funds*	-		4,262		-
Debtors	2,957		1,716		2,625
Cash at bank	25,419		4,392		21,264
	28,376		10,370		23,889
Creditors: amounts falling due within one year	(3,662)		(1,007)		(4,365)
Net current assets		24,714		9,363		19,524
Total assets less current liabilities		134,238		66,801		119,563
Called up equity share capital		10,501		7,688		8,636
Share premium		68,557		-		54,306
Special distributable reserve		50,991		55,522		53,989
Capital redemption reserve		2,164		2,005		2,101
Capital reserve gains & losses on disposal		(2,513)		(3,146)		(2,019)
Capital reserve holding gains & losses		3,327		4,096		2,521
Revenue reserve		1,211		636		29
Total equity shareholders' funds		134,238		66,801		119,563

*Held at fair value through profit and loss

Balance Sheet - Ordinary Shares
	As at 31 July 2015		As at 31 January 2015
	£'000	£'000	£'000	£'000
Fixed asset investments*		71,200		55,266
Current assets:
Investments - money market funds*	-		-
Debtors	2,198		1,743
Cash at bank	25,419		21,264
	27,617		23,007
Creditors: amounts falling due within one year	(15,349)		(9,463)
Net current assets		12,268		13,544
Total assets less current liabilities		83,468		68,810
Called up equity share capital		9,983		8,118
Share premium		18,144		3,893
Special distributable reserve		50,991		53,989
Capital redemption reserve		2,162		2,099
Capital reserve gains & losses on disposal		(2,423)		(1,952)
Capital reserve holding gains & losses		3,456		2,663
Revenue reserve		1,155		-
Total equity shareholders' funds		83,468		68,810
Net asset value per share		83.6p		84.8p

*Held at fair value through profit and loss

Balance Sheet - C Ordinary Shares
	As at 31 July 2015		As at 31 January 2015
	£'000	£'000	£'000	£'000
Fixed asset investments*		38,324		44,773
Current assets:
Investments - money market funds*	-		-
Debtors	14,092		7,120
Cash at bank	-		-
	14,092		7,120
Creditors: amounts falling due within one year	(1,646)		(1,140)
Net current assets		12,446		5,980
Total assets less current liabilities		50,770		50,753
Called up equity share capital		518		518
Share premium		50,413		50,413
Special distributable reserve		-		-
Capital redemption reserve		2		2
Capital reserve gains & losses on disposal		(90)		(67)
Capital reserve holding gains & losses		(129)		(142)
Revenue reserve		56		29
Total equity shareholders' funds		50,770		50,753
Net asset value per share		98.0p		98.0p

*Held at fair value through profit and loss

The statements were approved by the Directors and authorised for issue on 22 September 2015 and are signed on their behalf by:

Murray Steele
Chairman
Company Number: 05840377

Cash Flow Statement -Consolidated
	Six months to 31 July 2015	Six months to 31 July 2014	Year to 31 January 2015
	£'000	£'000	£'000
Net cash outflow from operating activities	(877)	(3,439)	(752)
Taxation	(41)	-	-
Financial investment:
Purchase of fixed asset investments	(17,500)	(10,433)	(15,505)
Sale of fixed asset investments	9,392	9,469	22,547
Dividends paid	(2,362)	(1,921)	(3,836)
Management of liquid resources:
Purchase of current asset investments	-	(8)	(15)
Sale of current asset investments	-	-	4,269
Cash acquired from transaction	-	-	377
Financing:
Purchase of own shares	(498)	(1,052)	(2,014)
Issue of own shares	16,041	3,866	8,283
(Decrease)/increase in cash at bank	(4,155)	(3,518)	13,354

Reconciliation of return before taxation to cash flow from operating activities
	Six months to 31 July 2015	Six months to 31 July 2014	Year to 31 January 2015
	£'000	£'000	£'000
Return on ordinary activities after tax	1,535	2,003	2,292
Increase in debtors	(332)	(63)	(972)
(Decrease)/increase in creditors	(703)	(3,211)	699
Debtors obtained from transaction	-	-	614
Creditors obtained from transaction	-	-	(324)
Gain on disposal of fixed assets	(1,271)	(104)	(1,311)
Holding gain on fixed asset investments	(106)	(2,064)	(1,198)
Taxation	-	-	(552)
Outflow from operating activities	(877)	(3,439)	(752)

Reconciliation of net cash flow to movement in net funds
	Six months to 31 July 2015	Six months to 31 July 2014	Year to 31 January 2015
	£'000	£'000	£'000
Increase/(decrease) in cash at bank	4,155	(3,518)	13,354
Movement in cash equivalent securities	-	8	-
Opening net funds	21,264	12,164	7,910
Net funds at end of period	25,419	8,654	21,264

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Source: Octopus Apollo VCT plc via Globenewswire

HUG#1954151