Final Results

Hargreave Hale AIM 1

Hargreave Hale AIM VCT1 plc

Preliminary Announcement of Final Results for the year ending 30 September 2013.

INVESTMENT MANAGER AND INVESTMENT OBJECTIVES

The Company is managed by Hargreave Hale Limited, a fund manager with approximately Â£2.83 billion under management. Hargreave Hale has been managing investments in UK Small and Micro Cap companies for 15 years and VCTs for 9 years.

The Company's investment objectives are:

to invest in a diversified portfolio of small UK based companies on a high risk, medium term capital growth basis, primarily being companies which are traded on AIM and which have the opportunity for significant value appreciation;
to invest in smaller companies which may not be readily accessible to private individuals and which also tend to be more risky;
to maximise distributions to shareholders from capital gains and income generated from the Company's funds;
targeted investment in equities which are non-qualifying investments on an opportunistic basis to boost the performance of the Ordinary Shares; and
To maintain the Companyâ€™s exposure to small companies through an initial investment of new capital into the Marlborough Special Situations Fund pending investment into Qualifying Companies.

FINANCIAL HIGHLIGHTS

Ordinary Shares (as at 30 September):	Â	2013	Â	2012
					Â
Net asset value per share		71.87		61.35p
Cumulative distributions paid per share since launch		29.75		26.5p
Total return		101.62		87.85p
					Â
Annual Returns per share:
Revenue return		(0.24)p		(0.30)p
Capital return		14.05p		3.94p
Combined Return		13.81p		3.64p
					Â
Dividends per share:
Interim paid		1.5p		1.5p
Final proposed		2.25p		1.75p
Total dividend for year		3.75p		3.25p
					Â
Performance Benchmark:
Total Return		107%		92.5%
FTSE AIM All-share Index		82.3%		73.2%
(results rebased to 100 at 29 October 2004)

CHAIRMANâ€™S STATEMENT

Introduction

At 30 September 2013 the NAV was 71.87 pence which after adding back the dividends paid gives a total return since inception of 101.62 pence. The gain per ordinary share for the year was 13.81 pence per share (comprising revenue loss of 0.24 pence and capital gains of 14.05 pence) which after adding back the dividends paid amounts to a rise of some 22.44%.

Investments

The Investment Manager, Hargreave Hale Limited, invested a further Â£1.76 million in 10 qualifying companies during the year. The Fair Value of qualifying investments at 30 September 2013 was Â£16.33 million invested in 37 AIM companies and 7 unquoted companies. Â£3.74 million was held in a mix of cash, fixed income and other non-qualifying equities.

Dividend

An interim dividend of 1.5 pence was paid on 5 July 2013 (Interim 2012 â€“ 1.5 pence).

A final dividend of 2.25 pence is proposed (2012 â€“ 1.75 pence) which, subject to shareholder approval at the AGM will be paid on 24 January 2014, to ordinary shareholders on the register on 3 January 2014.

The directors have maintained a dividend policy of at least 5% 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, 1,269,517 shares were purchased during the year at an average price of 60.04 pence per share.

Issue of Equity

The joint offer for subscription (together with Hargreave Hale AIM VCT 2) closed on 25 September 2013 and resulted in funds being received for Hargreave Hale AIM VCT 1 of Â£2.6 million and the issue of 3,998,082 shares.

New Joint Offer for Subscription of Ordinary Shares

After our success this year, on the 1 November 2013 the Directors of Hargreave Hale AIM VCT 1 plc and Hargreave Hale AIM VCT 2 plc announced the launch of a new joint offer for subscription of new shares in both VCTâ€™s to raise up to Â£10 million into this company.

The offer for subscription was approved by shareholders of the Company at a General Meeting on 31 October 2013.

VCT Status

To maintain its VCT qualifying status we must invest at least 70% of the net funds raised in any one accounting period in qualifying investments within three years. At the yearend we have achieved 94.2% per cent and have satisfied all the relevant tests.

Outlook

At the time of the budget in March the Office for Budget ResponsibilityÂ reduced its forecast for GDP growth to 0.6% in the space of just 8 months, the general consensus forecasts are now of the order of 1.4% rising to as much as 2.5% for 2014. This remarkable change in the economy has had a beneficial effect on the stock market and in particular we have seen a marked positive change in sentiment towards the merits of investing in AIM.

There are many reasons to be cautious about the future as we should not forget that the UK is still running an enormous budget deficit and many of our European neighbours are far from being economically out of the woods. However on the positive front various observers see Shale gas as a being potentially even more beneficial to the UK economy than was North Sea oil. If only 10% of the estimated reserves in the North West come to production that would provide all the gas requirements for the UK for the next 40 years. As usual the greatest danger to our economy comes from Westminster and a labour leader with views slightly left of Karl Marx could provide for an interesting General election in 2015.

The Fund is largely invested in good well run companies which continue to outperform their peers. The number of new issues seems to be starting to increase which will provide opportunities to make suitable new investments with the new money that we raised in 2013. The outlook for 2014 looks to be well placed for those who invest in the new issue referred to above.

Sir Aubrey Brocklebank

Chairman

Date: 13 December 2013

The Directors each confirm to the best of their knowledge that:

a) the financial statements have been prepared in accordance with UK Generally Accepted Accounting Practice and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

b) the Annual Report, to be published shortly, includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

DIRECTORSâ€™ REMUNERATION

The Directorsâ€™ Remuneration Report was approved by the Board of Directors on 3 December 2013 and will be further subject to a binding vote at the AGM being held on the 22 January 2014 and every year thereafter.

INCOME STATEMENT

For the year ended 30 September 2013

	Â	Revenue	Â	Capital	Â	Total
		Â£000		Â£000		Â£000
Net gain on investments held at fair value through profit or loss		-		3,910		3,910
Income		213		-		213
		--------		--------		--------
		213		3,910		4,123
		--------		--------		--------
Management fee		(65)		(194)		(259)
Other expenses		(212)		-		(212)
		--------		--------		--------
		(277)		(194)		(471)
		--------		--------		--------
(Loss)/Profit on ordinary activities before taxation		(64)		3,716		3,652
Taxation		-		-		-
		--------		--------		--------
(Loss)/Profit after taxation		(64)		3,716		3,652
		--------		--------		--------
(Loss)/Profit per share (pence)		(0.24)		14.05		13.81
		--------		--------		--------

INCOME STATEMENT

For the year ended 30 September 2012

	Â	Revenue	Â	Capital	Â	Total
		Â£000		Â£000		Â£000
Net gain on investments held at fair value through profit or loss		-		1,184		1,184
Income		217		-		217
		--------		--------		--------
		217		1,184		1,401
		--------		--------		--------
Management fee		(58)		(174)		(232)
Other expenses		(236)		-		(236)
		--------		--------		--------
		(294)		(174)		(468)
		--------		--------		--------
(Loss)/Profit on ordinary activities before taxation		(77)		1,010		933
Taxation		-		-		-
		--------		--------		--------
(Loss)/Profit after taxation		(77)		1,010		933
		--------		--------		--------
(Loss)/Profit per share (pence)		(0.30)		3.94		3.64
		--------		--------		--------

The total column of these statements is the income statement of the Company. All revenue and capital items in the above statement derive from continuing operations. There are no recognised gains or losses other than the profit for the year.

BALANCE SHEET Company registration number: 5206425

As at 30 September 2013 (in England and Wales)

	Â	2013	Â	2012
					Â
		Â£000		Â£000
					Â
Fixed assets
Investments at fair value through profit or loss		18,000		14,621
		--------		--------
					Â
Current assets
Debtors		32		28
Cash at bank		2,077		863
		--------		--------
		2,109		891
					Â
Creditors: amounts falling due within one year		(179)		(173)
		--------		--------
Net current assets		1,930		718
		--------		--------
Net assets		19,930		15,339
		--------		--------
					Â
Capital and Reserves
Called up share capital		304		277
Special reserve		10,188		11,808
Capital reserve â€“ realised		(5,606)		(5,786)
Capital reserve â€“ unrealised		4,996		1,460
Revenue reserve		(22)		42
Share Premium		9,186		6,667
Capital redemption reserve		884		871
		--------		--------
Equity shareholdersâ€™ funds		19,930		15,339
		--------		--------
					Â
Net asset value per share		71.87p		61.35p

These financial statements were approved and authorised for issue by the Board of Directors on 13 December 2013 and signed on its behalf by

Sir Aubrey Brocklebank Bt

Chairman

CASH FLOW STATEMENT

For the year ending 30 September 2013

	Â	2013	Â	2012
					Â
		Â£000		Â£000
Net cash (outflow) from operating activities		(256)		(215)
Net financial investment		531		1,704
Dividends paid		(853)		(906)
		---------		---------
Cash (outflow)/inflow before management of liquid resources		(578)		583
Financing		1,792		(922)
		---------		---------
Increase/(Decrease) in cash		1,214		(339)
		---------		---------

RECONCILIATION OF MOVEMENT IN SHAREHOLDERSâ€™ FUNDS

For the year ending 30 September 2013

Â	Â	Share Capital	Â	Capital Redemption Reserve	Â	Capital Reserve Realised	Â	Capital Reserve Unrealised	Â	Special Reserve	Â	Share Premium	Â	Revenue Reserve	Â	Total
		Â£000		Â£000		Â£000		Â£000		Â£000		Â£000		Â£000		Â£000
At 1 October 2012		277		871		(5,786)		1,460		11,808		6,667		42		15,339
																	Â
Share buybacks		(13)		13		-		-		(767)		-		-		(767)
Subscriptions		40		-		-		-		-		2,519		-		2,559
Equity dividends paid		-		-		-		-		(853)		-		-		(853)
Realised gains on investments		-		-		374		-		-		-		-		374
Unrealised gains on investments		-		-		-		3,536		-		-		-		3,536
Management fee charged to capital		-		-		(194)		-		-		-		-		(194)
Revenue loss after taxation for the year		-		-		-		-		-		-		(64)		(64)
Total profit after taxation		-		-		180		3,536		-		-		(64)		3,652
																	Â
		------		------		---------		---------		---------		---------		------		---------
At 30 September 2013		304		884		(5,606)		4,996		10,188		9,186		(22)		19,930
		------		------		---------		---------		---------		---------		------		---------

Reserves available for distribution are capital reserve realised, special reserve and revenue reserve.

RECONCILIATION OF MOVEMENT IN SHAREHOLDERSâ€™ FUNDS

For the year ending 30 September 2012

Â	Â	Share Capital	Â	Capital Redemption Reserve	Â	Capital Reserve Realised	Â	Capital Reserve Unrealised	Â	Special Reserve	Â	Share Premium	Â	Revenue Reserve	Â	Total
		Â£000		Â£000		Â£000		Â£000		Â£000		Â£000		Â£000		Â£000
At 1 October 2011		292		775		(4,882)		(454)		18,632		1,752		119		16,234
																	Â
																	Â
Share buybacks		(96)		96		-		-		(5,918)		-		-		(5,918)
Subscriptions		81		-		-		-		-		4,915		-		4,996
Equity dividends paid		-		-		-		-		(906)		-		-		(906)
Realised losses on investments		-		-		(730)		-		-		-		-		(730)
Unrealised gains on investments		-		-		-		1,914		-		-		-		1,914
Management fee charged to capital		-		-		(174)		-		-		-		-		(174)
Revenue loss after taxation for the year		-		-		-		-		-		-		(77)		(77)
Total profit after taxation		-		-		(904)		1,914		-		-		(77)		933
																	Â
		------		------		---------		---------		---------		---------		------		---------
At 30 September 2012		277		871		(5,786)		1,460		11,808		6,667		42		15,339
		------		------		---------		---------		---------		---------		------		---------

Notes to the preliminary announcement

1. The financial information set out in this preliminary announcement does not constitute the Companyâ€™s statutory accounts for the years ended 30 September 2013 or 30 September 2012. Statutory accounts for the year ended 30 September 2012 have been filed with the Registrar of Companies and those of the year ended 30 September 2013 will be delivered to the Registrar in due course; both have been reported on by the Independent Auditors. The independent auditorsâ€™ reports on the Statutory accounts for the years ended 30 September 2012 and 30 September 2013 were unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006. The financial information in this preliminary announcement has been prepared under the historical cost convention, except for the revaluation of certain financial instruments, and in accordance with UK GAAP and with the Statement of Recommended Practice (SORP) for Financial Statements of Investment Trust Companies issued in January 2009. The accounting policies adopted in these preliminary results have been consistently applied to all the years presented and are consistent with the policies used in the preparation of the statutory accounts for the year ended 30 September 2013. The full statutory annual accounts will be published in December 2013. Copies may in due course be obtained during normal business hours from Hargreave Hale Limited, 9-11 Neptune Court, Hallam Way, Blackpool, FY4 5LZ.

The Annual general meeting of the company will be held at the Companyâ€™s registered office on 22 January 2014 at 10.30am.

2. Revenue return per ordinary share based on a net revenue loss on ordinary activities after taxation of Â£63,935 (2012 - Â£76,754 loss) and on 26,446,613 (2012 â€“ 25,634,536) ordinary shares, being the weighted average number of ordinary shares in issue during the year. Capital return per ordinary share based on a net capital profit of Â£3,715,983 (2012 â€“ Â£1,009,644) for the year and on 26,446,613 (2012 â€“ 25,634,536) ordinary shares, being the weighted average number of ordinary shares in issue during the year.

3. The net asset value per ordinary share at 30 September 2013 of 71.87p (2012 â€“ 61.35p) is based on net assets of Â£19,930,424 (2012 - Â£15,338,810) and on 27,730,188 (2012 â€“ 25,001,623) ordinary shares bring the number of shares in issue at year end (Not including 2,711,134 shares held as treasury (2012 â€“ 2,711,134)).

INVESTMENT PORTFOLIO SUMMARY

	Â	Book Cost	Â	Valuation	Â	Valuation
Qualifying investments		Â£000		Â£000		%
Intercede Group plc		363		1,199		6.66
Cohort plc		800		1,111		6.17
Advanced Computer Software Group plc		212		1,083		6.01
Abcam plc		67		1,005		5.58
AnimalCare Group plc		220		708		3.93
Mycelx Technologies Corporation plc		300		707		3.93
Idox plc		135		702		3.9
Pressure Technologies Corporation plc		300		696		3.87
EKF Diagnostic Holdings plc		300		630		3.5
WANDisco plc		88		563		3.13
Porta Communications plc		505		530		2.94
Vertu Motors plc		600		520		2.89
TLA Worldwide plc		300		488		2.71
Craneware plc		150		480		2.67
Microsaic Systems plc		350		463		2.57
K3 Business Technology Group plc		270		441		2.45
Hardide plc		535		362		2.01
Reneuron Group plc		518		332		1.85
Outsourcery Group Ltd		300		308		1.71
Quixant plc		160		306		1.7
APC Technology Group plc		148		297		1.65
Fusionex International plc		138		295		1.64
Mexican Grill Ltd (A Preference Shares)		185		288		1.6
Instem plc		297		284		1.58
Tasty plc		288		276		1.54
Plastics Capital plc		250		263		1.46
Imaginatik plc		180		245		1.36
Lidco Group plc		220		236		1.31
Tangent Communications plc		400		215		1.19
Universe Group plc		210		150		0.83
Flowgroup plc		399		148		0.82
Egdon Resources plc		158		138		0.76
Jelf Group plc		174		138		0.76
Nektan Ltd		130		130		0.72
Progressive Digital Media Group plc		173		120		0.67
Corac Group plc		135		108		0.6
Sphere Medical Holdings plc		300		104		0.58
DP Poland plc		64		77		0.42
Brigantes Energy Ltd		50		50		0.28
Corfe Energy Ltd		50		50		0.28
Redcentric plc		214		45		0.25
Mexican Grill Ltd (Ordinary shares)		21		32		0.18
Invocas Group plc		169		12		0.07
Infoserve Group plc		200		1		0.01
TMO Renewables Ltd		200		0		0
		--------		---------		-------
Total qualifying investments		11,226		16,336		90.74

	Â	Book Cost	Â	Valuation	Â	Valuation
Non-Qualifying investments		Â£000		Â£000		%
							Â
Marlborough Special Situations Fund		200		217		1.21
		--------		---------		-------
Total â€“ Unit Trusts		200		217		1.21
							Â
Scottish Amicable Finance 8.5% 2049		256		280		1.56
Nationwide Building Society 7.971% 2049		242		255		1.42
Petrobras International Finance 6.25% 2026		247		255		1.42
		--------		---------		-------
Total â€“ UK corporate bonds		745		790		4.40
							Â
							Â
							Â
WANdisco plc		150		178		0.99
Restore plc		137		145		0.80
Telford Homes plc		100		114		0.63
Amerisur Resources plc		93		97		0.54
In-Deed Online plc		268		51		0.28
Mexican Grill Ltd (A Preference shares)		34		38		0.21
HELIUS Energy plc		40		23		0.13
MyCelx Technologies Corporation plc		8		10		0.06
Microsaic Systems plc		1		1		0.01
TMO Renewables Ltd Warrants***		0		0		0
Reneuron Group plc Warrants***		0		0		0
APC Technology Group plc**		0		0		0
Idox plc**		1		0		0
Flowgroup plc**		0		0		0
		--------		---------		-------
Total â€“ non-qualifying equities		832		657		3.65
							Â
		--------		---------		-------
Total â€“ non-qualifying investments		1,777		1,664		9.26
							Â
		---------		---------		-------
Total investments		13,003		18,000		100.00
		---------		---------		-------
							Â
** These are actual holdings of less than Â£500.
*** Warrants held not exercised