Half-yearly report
Albion Development VCT PLC
As required by the UK Listing Authority's Disclosure and Transparency Rule 4.2,
Albion Development VCT PLC today makes public its information relating to the
Half-yearly Financial Report (which is unaudited) for the six months to 30 June
2010. This announcement was approved by the Board of Directors on 24 August
2010. The full Half-yearly Financial Report (which is unaudited) for the period
to 30 June 2010, will shortly be sent to shareholders. The information contained
in this link includes information as required by the Disclosure and Transparency
Rules, including Rule 4.2. Copies of the full Half-yearly Financial Report will
be shown via the Albion Ventures LLP website www.albion-ventures.co.uk under the
"Our Funds" section by clicking Albion Development VCT PLC.
Investment objectives
Albion Development VCT PLC (the "Company") is a venture capital trust which
raised a total of £33.3 million through the issue of shares between 1999 and
2004. The C shares merged with the Ordinary shares in 2007.
A further £6.3 million was raised through an issue of new D Shares in 2009/2010.
The funds raised through the issue of the D Shares will be invested in
accordance with the Company's existing investment policy.
The Company's investment policy is intended to provide investors with a regular
and predictable source of dividend income combined with the prospects of long
term capital growth. This is achieved by establishing a diversified portfolio of
holdings in smaller, unquoted companies whilst at the same time selecting and
structuring investments in such a way as to reduce the risks normally associated
with investment in such companies. It is intended that this will be achieved as
follows:
   · Through investment in lower risk, often asset-backed investments that
provide a strong income stream combined with a protection of capital. These
include freehold-based businesses in the leisure sector, such as pubs and health
clubs, as well as other sectors including business services, environmental and
healthcare. Such investments will constitute the majority of investments by
cost.
   · This is balanced by a smaller number of higher risk companies with greater
growth prospects in sectors such as software and computer services, and medical
technology.
   · In neither category do investee companies normally have any external
borrowings with a prior charge ranking ahead of the Company.
   · Up to two-thirds of qualifying investments by cost comprise loan stock
secured with a first charge on the investee company's assets.
Financial calendar
Record date for second dividend 3 September 2010
Payment date for second dividend 30 September 2010
Financial year end 31 December 2010
Financial highlights (unaudited)
+-----------+----------------------------------------+-------------------------+
| Â | Ordinary shares | D shares |
+-----------+-------------+-------------+------------+-------------+-----------+
| |Unaudited six|Unaudited six| Audited|Unaudited six| Audited|
| | months ended| months ended| year ended| months ended| year ended|
| | 30 June 2010| 30 June 2009| 31 December| 30 June 2010|31 December|
| | (pence per| (pence per| 2009| (pence per| 2009|
| | share)| share)| (pence per| share)|Â (pence per|
| Â | | | share)| | share)|
+-----------+-------------+-------------+------------+-------------+-----------+
|Net asset | | | | 94.4| 94.6|
|value | 77.0| 79.2| 79.3| | |
+-----------+-------------+-------------+------------+-------------+-----------+
|Revenue | | | | 0.4| -|
|return | 0.7| 1.0| 2.4| | |
+-----------+-------------+-------------+------------+-------------+-----------+
|Capital | | | | (0.7)| -|
|return | 0.9| (6.6)| (4.1)| | |
+-----------+-------------+-------------+------------+-------------+-----------+
 Ordinary shares C shares D shares (pence
(pence per share) (pence per share) per share) (i)
(i) (i)
Total shareholder net
asset value return to
30 June 2010
Total dividends paid
during the period
ended:
 31 December 1999(ii) 1.0 - -
 31 December 2000 2.9 - -
 31 December 2001 3.9 - -
 31 December 2002 4.2 - -
 31 December 2003(iii) 4.5 0.7 -
 31 December 2004 4.0 2.0 -
 31 December 2005 5.2 5.9 -
 31 December 2006 3.0 4.5 -
 31 December 2007(iv) 5.0 5.4 -
 31 December 2008(iv) 12.0 12.8 -
 31 December 2009(iv) 4.0 4.3 -
 30 June 2010(iv) 4.0 4.3 -
--------------------------------------------------------
Total dividends paid to -
30 June 2010 53.7 39.9
Net asset value as at 94.4
30 June 2010(iv) 77.0 82.5
--------------------------------------------------------
Total shareholder net
asset value return to 94.4
30 June 2010 130.7 122.4
--------------------------------------------------------
The Directors have declared a dividend of 4 pence per Ordinary share (0.7 pence
out of revenue reserves and 3.3 pence out of capital reserves) and 1 penny per D
share payable on 30 September 2010 to shareholders on the register as at 3
September 2010.
Notes
(i) Excludes tax benefits upon subscription
(ii) Assuming subscription for Ordinary shares by the First Closing on 26
January 1999.
(iii) Those subscribing for C shares after 30 June 2003 were not entitled to the
interim dividend.
(iv) The C shares were converted into Ordinary shares on 31 March 2007, with a
conversion of 1.0715 Ordinary shares for each C share. The net asset value per
share and all dividends paid subsequent to the conversion of the C shares to the
Ordinary shares are multiplied by the conversion factor of 1.0715 in respect of
the C shares return, in order to give an accurate picture of the shareholder
value since launch relating to the C shares.
Interim management report
Introduction
The results for Albion Development VCT PLC for the six months to 30 June 2010
reflect the UK's continued tentative recovery from the 18 month recession.
Accordingly, the Ordinary share portfolio recorded a positive total return of
1.6 pence per share. The period also saw the completion of the D share
fundraising, which raised a total of £6.3 million.
Investment performance and progress
The Ordinary share portfolio benefited from the successful sale in June 2010 of
the investment in RFI Global Services Limited, realising an initial
consideration of twice the holding value at 31 December 2009. In addition,
strong trading performances from our arthouse cinemas, from Blackbay and also
from our longstanding investment in Peakdale Molecular, all led to higher
valuations. Against this, further provisions were made against the investments
in Rostima and Chichester Holdings, in the light of disappointing trading, while
trading prospects for Consolidated PR led to a write down. The share price of
the fully quoted investment in Mears Group PLC, meanwhile, fell on market
sentiment.
During the period, £576,000 was invested in new investments in the Ordinary
share portfolio and £400,000 in the D share portfolio. Key investments included
the Orchard Portman psychiatric hospital outside Taunton, and Masters
Pharmaceuticals, which distributes "special" pharmaceuticals on a world-wide
basis. Subsequent to 30 June, an investment was made in TEG Biogas (Perth), a
waste food-to-energy power station in Scotland. Further renewable energy
investments are currently in the process of being made.
Split of Ordinary share portfolio valuation by sector as at 30 June 2010
Pie Chart 1 Ordinary shares
http://hugin.info/141803/R/1439794/384156.pdf
Source: Albion Ventures LLP
Split of D share portfolio valuation by sector as at 30 June 2010
Pie Chart 2 D shares
http://hugin.info/141803/R/1439794/384157.pdf
Source: Albion Ventures LLP
Share premium account
Shareholders approved the cancellation of the D shares share premium account by
way of special resolution at a General Meeting held on 28 October 2009. The
share premium account amounting to £2.8m was subsequently cancelled on 18 August
2010 by order of the High Court and the Notice regarding the cancellation was
registered at Companies House on 20 August 2010. The purpose of this
cancellation is to increase the special reserve in order to facilitate the
Company's ability to pay dividends and to purchase its own shares in future.
Risks and uncertainties
Despite the fragile recovery in the economy, we still remain cautious over the
longer term outlook for the UK in the light of prospective Government spending
cuts and high national debt levels. Nevertheless, despite pressure on certain of
our investee companies, the portfolio as a whole remains cash generative and it
remains our general policy that investee companies have no external bank
borrowings. Other risks and uncertainties remain unchanged, and are as detailed
on pages 18 and 19 of the Annual Report and Financial Statements for the year
ended 31 December 2009.
Related party transactions
Details of material related party transactions for the reporting period can be
found in note 12 to this announcement.
Dividend Policy
Over the 12 years since launch, the Company has paid or declared an annual
dividend on the Ordinary shares averaging 4.8 pence per share. Since 2008, the
annual dividend has averaged 8 pence per share, as a result of the accumulation
of substantial realised profits on the disposal of investments. As these have
now been largely paid out by way of dividend, and bearing in mind the projected
income generation of the portfolio, combined with available reserves and cash
resources, it will be your Company's target from 2011 to return to the
longer-term average and to pay out annual dividends of around 5 pence per share
on the Ordinary share class, so far as it is able.
Results and dividends
As at 30 June 2010 the net asset value per Ordinary share was 77.0 pence (30
June 2009: 79.2 pence; 31 December 2009: 79.3 pence). Revenue return before tax
for the six months was £257,000 (six months ended 30 June 2009: £386,000; year
ended 31 December 2009: £790,000). Capital return before tax was £226,000 for
the first six months of 2010 (six months ended 30 June 2009: loss of £2,026,000;
year ended 31 December 2009: loss of £1,310,000).
As at 30 June 2010 the net asset value per D share was 94.4 pence (31 December
2009: 94.6 pence). Revenue return before tax for the six months was £19,000
(year ended 31 December 2009: £1,000). The capital loss before tax was £30,000
for the first six months of 2010 (year ended 31 December 2009: £1,000).
The Ordinary shares will pay a second dividend for the year of 4 pence per share
and the D shares will pay a first dividend of 1 penny per share, in each case
payable on 30 September 2010 to shareholders on the register as at 3 September
2010.
Jonathan
Thornton
Director
24 August 2010
Responsibility statement
The Directors, G Vero, D Pinckney, A Phillipps and J Thornton, are responsible
for preparing the Half-yearly Financial Report. The Directors have chosen to
prepare this Half-yearly Financial Report for the Company in accordance with
United Kingdom Generally Accepted Accounting Practice ("UK GAAP").
In preparing these summarised Financial Statements for the period to 30 June
2010, we the Directors of the Company, confirm that to the best of our
knowledge:
(a) the summarised set of Financial Statements has been prepared in accordance
with the pronouncement on interim reporting issued by the Accounting Standards
Board;
(b) the interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first six
months and description of principal risks and uncertainties for the remaining
six months of the year);
(c) the summarised set of Financial Statements give a true and fair view in
accordance with UK GAAP of the assets, liabilities, financial position and
profit and loss of the Company for the six months ended 30 June 2010 and comply
with UK GAAP and Companies Act 1985 and 2006; Â and
(d) the interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions and changes
therein).
The accounting policies applied to the Half-yearly Financial Report have been
consistently applied in current and prior periods and are those applied in the
Annual Report and Financial Statements for the year ended 31 December 2009.
This Half-yearly Financial Report has not been audited or reviewed by the
Auditors.
By order of the Board
Jonathan Thornton
Director
24 August 2010
Portfolio of investments (unaudited)
Ordinary shares
The following is a summary of qualifying fixed asset investments as at 30 June
2010:
+-------------------+----------------------------------------------------------+
|Â | As at 30 June 2010 (unaudited) |
+-------------------+-------------+------+-----------------+------+------------+
| | | | | | Change in|
| | | | Cumulative| Total| value for|
| | % voting| Cost|movement in value| value|the period *|
|Investee company | rights| £'000| £'000| £'000| £'000|
+-------------------+-------------+------+-----------------+------+------------+
|Asset-backed | | | | | |
|investments | Â | Â | Â | Â | Â |
+-------------------+-------------+------+-----------------+------+------------+
|Evolutions | | | | | |
|Television Limited | 23.7| 4,255| (1,899)| 2,356| 106|
+-------------------+-------------+------+-----------------+------+------------+
|The Weybridge Club | | | | | |
|Limited | 9.4| 1,520| (183)| 1,337| (25)|
+-------------------+-------------+------+-----------------+------+------------+
|CS (Greenwich) | | | | | |
|Limited | 15.5| 906| (15)| 891| 128|
+-------------------+-------------+------+-----------------+------+------------+
|Kensington Health | | | | | |
|Clubs Limited | 4.9| 1,124| (459)| 665| 14|
+-------------------+-------------+------+-----------------+------+------------+
|Orchard Portman | | | | | |
|Hospital | 9.1| 576| 11| 587| 11|
+-------------------+-------------+------+-----------------+------+------------+
|The Charnwood Pub | | | | | |
|Company Limited | 3.3| 1,156| (610)| 546| 13|
+-------------------+-------------+------+-----------------+------+------------+
|Geronimo Inns VCT I| | | | | |
|Limited | 6.0| 480| 61| 541| 35|
+-------------------+-------------+------+-----------------+------+------------+
|Geronimo Inns VCT | | | | | |
|II Limited | 6.0| 480| 61| 541| 35|
+-------------------+-------------+------+-----------------+------+------------+
|The Q Garden | | | | | |
|Company Limited | 16.6| 1,198| (683)| 515| 32|
+-------------------+-------------+------+-----------------+------+------------+
|CS (Brixton) | | | | | |
|Limited | 8.4| 356| 104| 460| 83|
+-------------------+-------------+------+-----------------+------+------------+
|Bravo Inns II | | | | | |
|Limited | 4.6| 480| (22)| 458| 5|
+-------------------+-------------+------+-----------------+------+------------+
|Tower Bridge Health| | | | | |
|Clubs Limited | 7.9| 494| (70)| 424| (28)|
+-------------------+-------------+------+-----------------+------+------------+
|GB Pub Company VCT | | | | | |
|Limited | 9.1| 364| (226)| 138| -|
+-------------------+-------------+------+-----------------+------+------------+
|Bravo Inns Limited | 2.6| 230| (104)| 126| 3|
+-------------------+-------------+------+-----------------+------+------------+
|Premier Leisure | | | | | |
|(Suffolk) Limited | 6.5| 480| (357)| 123| (1)|
+-------------------+-------------+------+-----------------+------+------------+
|CS (Exeter) Limited| 8.3| 135| (14)| 121| (2)|
+-------------------+-------------+------+-----------------+------+------------+
|The Dunedin Pub | | | | | |
|Company VCT Limited| 6.2| 221| (145)| 76| -|
+-------------------+-------------+------+-----------------+------+------------+
|City Screen | | | | | |
|(Liverpool) Limited| 4.6| 56| (9)| 47| 6|
+-------------------+-------------+------+-----------------+------+------------+
|CS (Norwich) | | | | | |
|Limited | 3.1| 50| (6)| 44| 10|
+-------------------+-------------+------+-----------------+------+------------+
|River Bourne Health| | | | | |
|Club Limited | 5.0| 4| -| 4| -|
+-------------------+-------------+------+-----------------+------+------------+
|Â | Â | Â | Â | Â | Â |
+-------------------+-------------+------+-----------------+------+------------+
|Total asset-backed | | | | | |
|investments | Â |14,565| (4,565)|10,000| 425|
+-------------------+-------------+------+-----------------+------+------------+
* as adjusted for additions and disposals
+------------------------+-----------------------------------------------------+
|Â | As at 30 June 2010 (unaudited) |
+------------------------+-----------+------+---------------+------+-----------+
| | | | | | Change in|
| | | | Cumulative| | value for|
| | | | movement in| Total| the period|
| | % voting| Cost| value| value| *|
|Investee company | rights| £'000| £'000| £'000| £'000|
+------------------------+-----------+------+---------------+------+-----------+
|Growth investments | Â | Â | Â | Â | Â |
+------------------------+-----------+------+---------------+------+-----------+
|Peakdale Molecular | | | | | |
|Limited | 8.8| 1,241| (33)| 1,208| 110|
+------------------------+-----------+------+---------------+------+-----------+
|Blackbay Limited | 7.4| 764| 387| 1,151| 104|
+------------------------+-----------+------+---------------+------+-----------+
|Mears Group plc** | 0.6| 1,601| (503)| 1,098| (173)|
+------------------------+-----------+------+---------------+------+-----------+
|Prime Care Holdings | | | | | |
|Limited | 9.4| 516| 34| 550| 13|
+------------------------+-----------+------+---------------+------+-----------+
|Consolidated PR Limited | 11.8| 566| (68)| 498| (101)|
+------------------------+-----------+------+---------------+------+-----------+
|Mi-Pay Limited | 4.4| 395| 33| 428| 96|
+------------------------+-----------+------+---------------+------+-----------+
|Helveta Limited | 2.5| 364| -| 364| (13)|
+------------------------+-----------+------+---------------+------+-----------+
|Lowcosttravelgroup | | | | | |
|Limited | 4.0| 435| (79)| 356| (81)|
+------------------------+-----------+------+---------------+------+-----------+
|Forth Photonics Limited | 2.6| 350| -| 350| -|
+------------------------+-----------+------+---------------+------+-----------+
|Xceleron Limited | 3.8| 379| (37)| 342| 8|
+------------------------+-----------+------+---------------+------+-----------+
|Dexela Limited | 5.6| 415| (97)| 318| (105)|
+------------------------+-----------+------+---------------+------+-----------+
|Mirada Medical Limited | 7.2| 240| 49| 289| 12|
+------------------------+-----------+------+---------------+------+-----------+
|Chichester Holdings | | | | | |
|Limited | 10.6| 700| (520)| 180| (106)|
+------------------------+-----------+------+---------------+------+-----------+
|Masters Pharmaceuticals | | | | | |
|Limited | 1.0| 160| 1| 161| -|
+------------------------+-----------+------+---------------+------+-----------+
|Oxsensis Limited | 1.4| 192| (46)| 146| -|
+------------------------+-----------+------+---------------+------+-----------+
|Opta Sports Data Limited| 1.3| 140| (9)| 131| (21)|
+------------------------+-----------+------+---------------+------+-----------+
|Point 35 Microstructures| | | | | |
|Limited | 1.6| 124| (17)| 107| 16|
+------------------------+-----------+------+---------------+------+-----------+
|Process Systems | | | | | |
|Enterprise Limited | 1.0| 96| (35)| 61| 16|
+------------------------+-----------+------+---------------+------+-----------+
|Green Energy Property | | | | | |
|Services Group Limited | 2.8| 35| (18)| 17| (21)|
+------------------------+-----------+------+---------------+------+-----------+
|Rostima Limited | 4.0| 350| (350)| -| (134)|
+------------------------+-----------+------+---------------+------+-----------+
|Â | Â | Â | Â | Â | Â |
+------------------------+-----------+------+---------------+------+-----------+
|Total growth investments| Â | 9,063| (1,308)| 7,755| (380)|
+------------------------+-----------+------+---------------+------+-----------+
|Â | Â | Â | Â | Â | Â |
+------------------------+-----------+------+---------------+------+-----------+
|Total qualifying | | | | | |
|investments | Â |23,628| (5,873)|17,755| 45|
+------------------------+-----------+------+---------------+------+-----------+
* Â as adjusted for additions and disposals
**Main market quoted investment
The following is a summary of non-qualifying fixed asset investments as at 30
June 2010:
+---------------------+--------------------------------------------------------+
|Â | As at 30 June 2010 (unaudited) |
+---------------------+------------+------+----------------+------+------------+
| | | | Cumulative| | Change in|
| | | | movement in| Total| value for|
| | % voting| Cost| value| value|the period *|
|Investee company | rights| £'000| £'000| £'000| £'000|
+---------------------+------------+------+----------------+------+------------+
|Â | Â | Â | Â | Â | Â |
+---------------------+------------+------+----------------+------+------------+
|Albion Investment | | | | | |
|Properties Limited | | | | | |
|(formerly Smiles Pub | | | | | |
|Company Limited) | 48.4| 929| (150)| 779| 20|
+---------------------+------------+------+----------------+------+------------+
|Consolidated PR | | | | | |
|Limited | n/a| 33| 34| 67| (12)|
+---------------------+------------+------+----------------+------+------------+
|Rostima Limited | n/a| 40| -| 40| -|
+---------------------+------------+------+----------------+------+------------+
|Total non-qualifying | | | | | |
|investments | Â | 1,002| (116)| 886| 8|
+---------------------+------------+------+----------------+------+------------+
|Total fixed asset | | | | | |
|investments | Â |24,630| (5,989)|18,641| 53|
+---------------------+------------+------+----------------+------+------------+
* Â as adjusted for additions and disposals
Since its launch in 1999, the Company has generated £10.0 million net realised
gains (net of disposal costs), including £366,000 in the six month period to 30
June 2010 from the sale of RFI Global Services Limited.
Portfolio of investments (unaudited)
D shares
The following is a summary of qualifying fixed asset investments as at 30 June
2010:
+----------------------+-------------------------------------------------------+
|Â | As at 30 June 2010 (unaudited) |
+----------------------+-------------+-----+----------------+-----+------------+
| | | | Cumulative| | Change in|
| | | | movement in|Total| value for|
| | % voting| Cost| value|value|the period *|
|Investee company | rights|£'000| £'000|£'000| £'000|
+----------------------+-------------+-----+----------------+-----+------------+
|Masters | | | | | |
|Pharmaceuticals | | | | | |
|Limited | 2.6| 400| 2| 402| 2|
+----------------------+-------------+-----+----------------+-----+------------+
|Â | Â | Â | Â | Â | Â |
+----------------------+-------------+-----+----------------+-----+------------+
|Total qualifying | | | | | |
|investments | Â | 400| 2| 402| 2|
+----------------------+-------------+-----+----------------+-----+------------+
* Â as adjusted for additions and disposals
Summary income statement
Combined
+---------------+----+---------------------+-----------------------+---------------------+
|Â |Â | Unaudited | Unaudited | Audited |
| | | six months ended | six months ended | year ended |
| | | 30 June 2010 | 30 June 2009* | 31 December 2009 |
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
| | |Revenue|Capital|Total|Revenue|Capital| Total|Revenue|Capital|Total|
|  |Note| £'000| £'000|£'000| £'000| £'000| £'000| £'000| £'000|£'000|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Gains/(losses) | | | | | | | | | | |
|on investments | 3| -| 414| 414| -|(1,889)|(1,889)| -| (986)|(986)|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Investment | | | | | | | | | | |
|income | 4| 469| -| 469| 531| -| 531| 1,078| -|1,078|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Investment | | | | | | | | | | |
|management fees| Â | (72)| (218)|(290)| (69)| (207)| (276)| (135)| (407)|(542)|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Recovery of VAT| Â | -| -| -| 23| 70| 93| 26| 82| 108|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Other expenses | Â | (121)| -|(121)| (99)| -| (99)| (178)| -|(178)|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Return/(loss) | | | | | | | | | | |
|on ordinary | | | | | | | | | | |
|activities | | | | | | | | | | |
|before tax | Â | 276| 196| 472| 386|(2,026)|(1,640)| 791|(1,311)|(520)|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Tax | | | | | | | | | | |
|(charge)/credit| | | | | | | | | | |
|on ordinary | | | | | | | | | | |
|activities | Â | (68)| 52| (16)| (86)| 39| (47)| (88)| 94| 6|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Return/(loss) | | | | | | | | | | |
|attributable to| | | | | | | | | | |
|shareholders | Â | 208| 248| 456| 300|(1,987)|(1,687)| 703|(1,217)|(514)|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
 * D shares were first allotted 23 December 2009
Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2009 and the audited statutory accounts
for the year ended 31 December 2009.
The accompanying notes form an integral part of this announcement.
The total column of this Summary income statement represents the profit and loss
account of the Company. The supplementary revenue and capital columns have been
prepared in accordance with the Association of Investment Companies' Statement
of Recommended Practice.
All revenue and capital items in the above statement derive from continuing
operations.
There are no recognised gains or losses other than the results for the periods
disclosed above. Accordingly, a Statement of total recognised gains and losses
is not required. The difference between the reported loss on ordinary activities
before tax and the historical profit is due to the fair value movements on
investments. Accordingly, a note on historical cost profit and losses has not
been prepared.
Summary income statement
Ordinary shares
+---------------+----+---------------------+-----------------------+---------------------+
|Â |Â | Unaudited | Unaudited | Audited |
| | | six months ended | six months ended | year ended |
| | | 30 June 2010 | 30 June 2009 | 31 December 2009 |
| | | Â | Â | Â |
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
| | |Revenue|Capital|Total|Revenue|Capital| Total|Revenue|Capital|Total|
|  |Note| £'000| £'000|£'000| £'000| £'000| £'000| £'000| £'000|£'000|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Gains/(losses) | | | | | | | | | | |
|on investments | 3| -| 413| 413| -|(1,889)|(1,889)| -| (986)|(986)|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Investment | | | | | | | | | | |
|income | 4| 433| -| 433| 531| -| 531| 1,077| -|1,077|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Investment | | | | | | | | | | |
|management fees| Â | (62)| (187)|(249)| (69)| (207)| (276)| (135)| (406)|(541)|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Recovery of VAT| Â | -| -| -| 23| 70| 93| 26| 82| 108|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Other expenses | Â | (114)| -|(114)| (99)| -| (99)| (178)| -|(178)|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Return/(loss) | | | | | | | | | | |
|on ordinary | | | | | | | | | | |
|activities | | | | | | | | | | |
|before tax | Â | 257| 226| 483| 386|(2,026)|(1,640)| 790|(1,310)|(520)|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Tax | | | | | | | | | | |
|(charge)/credit| | | | | | | | | | |
|on ordinary | | | | | | | | | | |
|activities | Â | (63)| 48| (15)| (86)| 39| (47)| (88)| 94| 6|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Return/(loss) | | | | | | | | | | |
|attributable to| | | | | | | | | | |
|shareholders | Â | 194| 274| 468| 300|(1,987)|(1,687)| 702|(1,216)|(514)|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
|Basic and | | | | | | | | | | |
|diluted | | | | | | | | | | |
|return/(loss) | | | | | | | | | | |
|per share | | | | | | | | | | |
|(pence)* | 6| 0.7| 0.9| 1.6| 1.0| (6.6)| (5.6)| 2.4| (4.1)|(1.7)|
+---------------+----+-------+-------+-----+-------+-------+-------+-------+-------+-----+
 * excluding treasury shares
Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2009 and the audited statutory accounts
for the year ended 31 December 2009.
The accompanying notes form an integral part of this announcement.
Summary income statement
D shares
+-----------------------------+----+---------------------+---------------------+
|Â |Â | Unaudited | Audited |
| | | six months ended | year ended |
| | | 30 June 2010 | 31 December 2009 |
| | | Â | Â |
+-----------------------------+----+-------+-------+-----+-------+-------+-----+
| | |Revenue|Capital|Total|Revenue|Capital|Total|
|  |Note| £'000| £'000|£'000| £'000| £'000|£'000|
+-----------------------------+----+-------+-------+-----+-------+-------+-----+
|Gains on investments | 3| -| 1| 1| -| -| -|
+-----------------------------+----+-------+-------+-----+-------+-------+-----+
|Investment income | 4| 36| -| 36| 1| -| 1|
+-----------------------------+----+-------+-------+-----+-------+-------+-----+
|Investment management fees | Â | (10)| (31)| (41)| -| (1)| (1)|
+-----------------------------+----+-------+-------+-----+-------+-------+-----+
|Other expenses | Â | (7)| -| (7)| -| -| -|
+-----------------------------+----+-------+-------+-----+-------+-------+-----+
|Return/(loss) on ordinary | | | | | | | |
|activities before tax | Â | 19| (30)| (11)| 1| (1)| -|
+-----------------------------+----+-------+-------+-----+-------+-------+-----+
|Tax (charge)/credit on | | | | | | | |
|ordinary activities | Â | (5)| 4| (1)| -| -| -|
+-----------------------------+----+-------+-------+-----+-------+-------+-----+
|Return/(loss) attributable to| | | | | | | |
|shareholders | Â | 14| (26)| (12)| 1| (1)| -|
+-----------------------------+----+-------+-------+-----+-------+-------+-----+
|Basic and diluted | | | | | | | |
|return/(loss) per share | | | | | | | |
|(pence) | 6| 0.4| (0.7)|(0.3)| -| -| -|
+-----------------------------+----+-------+-------+-----+-------+-------+-----+
Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2009 and the audited statutory accounts
for the year ended 31 December 2009.
The accompanying notes form an integral part of this announcement.
Summary balance sheet
Combined
+-----------------------------+----+------------+-------------+----------------+
|Â | | Unaudited| Unaudited| Audited|
| | |30 June 2010|30 June 2009*|31 December 2009|
| |Note| £'000| £'000| £'000|
+-----------------------------+----+------------+-------------+----------------+
|Fixed asset investments | Â | Â | Â | Â |
+-----------------------------+----+------------+-------------+----------------+
|Qualifying | Â | 18,157| 15,893| 18,004|
+-----------------------------+----+------------+-------------+----------------+
|Non-qualifying | Â | 886| 828| 871|
+-----------------------------+----+------------+-------------+----------------+
|Total fixed asset investments| 7| 19,043| 16,721| 18,875|
+-----------------------------+----+------------+-------------+----------------+
|Â | Â | Â | Â | Â |
+-----------------------------+----+------------+-------------+----------------+
|Current assets | Â | Â | Â | Â |
+-----------------------------+----+------------+-------------+----------------+
|Trade and other debtors | Â | 173| 218| 406|
+-----------------------------+----+------------+-------------+----------------+
|Cash at bank and in hand | 10| 9,789| 6,813| 5,908|
+-----------------------------+----+------------+-------------+----------------+
|Â | Â | 9,962| 7,031| 6,314|
+-----------------------------+----+------------+-------------+----------------+
|Â | Â | Â | Â | Â |
+-----------------------------+----+------------+-------------+----------------+
|Creditors: amounts falling | | | | |
|due within one year | Â | (388)| (133)| (306)|
+-----------------------------+----+------------+-------------+----------------+
|Net current assets | Â | 9,574| 6,898| 6,008|
+-----------------------------+----+------------+-------------+----------------+
|Net assets | Â | 28,617| 23,619| 24,883|
+-----------------------------+----+------------+-------------+----------------+
|Â | Â | Â | Â | Â |
+-----------------------------+----+------------+-------------+----------------+
|Capital and reserves | Â | Â | Â | Â |
+-----------------------------+----+------------+-------------+----------------+
|Called up share capital | 8| 19,504| 16,307| 17,074|
+-----------------------------+----+------------+-------------+----------------+
|Share premium | Â | 2,843| 3,266| 640|
+-----------------------------+----+------------+-------------+----------------+
|Capital redemption reserve | Â | 1,255| 1,183| 1,183|
+-----------------------------+----+------------+-------------+----------------+
|Unrealised capital reserve | Â | (6,275)| (7,550)| (6,365)|
+-----------------------------+----+------------+-------------+----------------+
|Special reserve | Â | 12,392| 9,223| 12,507|
+-----------------------------+----+------------+-------------+----------------+
|Treasury shares reserve | Â | (2,664)| (2,399)| (2,540)|
+-----------------------------+----+------------+-------------+----------------+
|Realised capital reserve | Â | 1,323| 2,400| 1,389|
+-----------------------------+----+------------+-------------+----------------+
|Revenue reserve | Â | 239| 1,189| 995|
+-----------------------------+----+------------+-------------+----------------+
|Total equity shareholders' | | | | |
|funds | Â | 28,617| 23,619| 24,883|
+-----------------------------+----+------------+-------------+----------------+
 * D shares were first allotted 23 December 2009
Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2009 and the audited statutory accounts
for the year ended 31 December 2009.
The accompanying notes form an integral part of this announcement.
These Financial Statements were approved by the Board of Directors and
authorised for issue on 24 August 2010, and were signed on its behalf by
Jonathan Thornton
Director
Company number: 3654040
Summary balance sheet
Ordinary shares
+------------------------------+----+------------+------------+----------------+
|Â | | Unaudited| Unaudited| Audited|
| | |30 June 2010|30 June 2009|31 December 2009|
| |Note| £'000| £'000| £'000|
+------------------------------+----+------------+------------+----------------+
|Fixed asset investments | Â | Â | Â | Â |
+------------------------------+----+------------+------------+----------------+
|Qualifying | Â | 17,755| 15,893| 18,004|
+------------------------------+----+------------+------------+----------------+
|Non-qualifying | Â | 886| 828| 871|
+------------------------------+----+------------+------------+----------------+
|Total fixed asset investments | 7| 18,641| 16,721| 18,875|
+------------------------------+----+------------+------------+----------------+
|Â | Â | Â | Â | Â |
+------------------------------+----+------------+------------+----------------+
|Current assets | Â | Â | Â | Â |
+------------------------------+----+------------+------------+----------------+
|Trade and other debtors | Â | 168| 218| 170|
+------------------------------+----+------------+------------+----------------+
|Cash at bank and in hand | 10| 4,039| 6,813| 4,709|
+------------------------------+----+------------+------------+----------------+
|Â | Â | 4,207| 7,031| 4,879|
+------------------------------+----+------------+------------+----------------+
|Â | Â | Â | Â | Â |
+------------------------------+----+------------+------------+----------------+
|Creditors: amounts falling due| | | | |
|within one year | Â | (211)| (133)| (228)|
+------------------------------+----+------------+------------+----------------+
|Net current assets | Â | 3,996| 6,898| 4,651|
+------------------------------+----+------------+------------+----------------+
|Net assets | Â | 22,637| 23,619| 23,526|
+------------------------------+----+------------+------------+----------------+
|Â | Â | Â | Â | Â |
+------------------------------+----+------------+------------+----------------+
|Capital and reserves | Â | Â | Â | Â |
+------------------------------+----+------------+------------+----------------+
|Called up share capital | 8| 16,336| 16,307| 16,357|
+------------------------------+----+------------+------------+----------------+
|Share premium | Â | 19| 3,266| -|
+------------------------------+----+------------+------------+----------------+
|Capital redemption reserve | Â | 1,255| 1,183| 1,183|
+------------------------------+----+------------+------------+----------------+
|Unrealised capital reserve | Â | (6,276)| (7,550)| (6,365)|
+------------------------------+----+------------+------------+----------------+
|Special reserve | Â | 12,392| 9,223| 12,507|
+------------------------------+----+------------+------------+----------------+
|Treasury shares reserve | Â | (2,664)| (2,399)| (2,540)|
+------------------------------+----+------------+------------+----------------+
|Realised capital reserve | Â | 1,351| 2,400| 1,390|
+------------------------------+----+------------+------------+----------------+
|Revenue reserve | Â | 224| 1,189| 994|
+------------------------------+----+------------+------------+----------------+
|Total equity shareholders' | | | | |
|funds | Â | 22,637| 23,619| 23,526|
+------------------------------+----+------------+------------+----------------+
|Net asset value per share | | | | |
|(pence) * | Â | 77.0| 79.2| 79.3|
+------------------------------+----+------------+------------+----------------+
 *excluding treasury shares
Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2009 and the audited statutory accounts
for the year ended 31 December 2009.
The accompanying notes form an integral part of this announcement.
Summary balance sheet
D shares
+-------------------------------------------+----+------------+----------------+
|Â | | Unaudited| Audited|
| | |30 June 2010|31 December 2009|
| |Note| £'000| £'000|
+-------------------------------------------+----+------------+----------------+
|Fixed asset investments | Â | Â | Â |
+-------------------------------------------+----+------------+----------------+
|Qualifying | Â | 402| -|
+-------------------------------------------+----+------------+----------------+
|Total fixed asset investments | 7| 402| Â |
+-------------------------------------------+----+------------+----------------+
|Â | Â | Â | Â |
+-------------------------------------------+----+------------+----------------+
|Current assets | Â | Â | Â |
+-------------------------------------------+----+------------+----------------+
|Trade and other debtors | Â | 5| 236|
+-------------------------------------------+----+------------+----------------+
|Cash at bank and in hand | 10| 5,750| 1,199|
+-------------------------------------------+----+------------+----------------+
|Â | Â | 5,755| 1,435|
+-------------------------------------------+----+------------+----------------+
|Â | Â | Â | Â |
+-------------------------------------------+----+------------+----------------+
|Creditors: amounts falling due within one | | | |
|year | Â | (177)| (78)|
+-------------------------------------------+----+------------+----------------+
|Net current assets | Â | 5,578| 1,357|
+-------------------------------------------+----+------------+----------------+
|Net assets | Â | 5,980| 1,357|
+-------------------------------------------+----+------------+----------------+
|Â | Â | Â | Â |
+-------------------------------------------+----+------------+----------------+
|Capital and reserves | Â | Â | Â |
+-------------------------------------------+----+------------+----------------+
|Called up share capital | 8| 3,168| 717|
+-------------------------------------------+----+------------+----------------+
|Share premium | Â | 2,824| 640|
+-------------------------------------------+----+------------+----------------+
|Unrealised capital reserve | Â | 1| -|
+-------------------------------------------+----+------------+----------------+
|Realised capital reserve | Â | (28)| (1)|
+-------------------------------------------+----+------------+----------------+
|Revenue reserve | Â | 15| 1|
+-------------------------------------------+----+------------+----------------+
|Total equity shareholders' funds | Â | 5,980| 1,357|
+-------------------------------------------+----+------------+----------------+
|Net asset value per share (pence) | Â | 94.4| 94.6|
+-------------------------------------------+----+------------+----------------+
Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 June 2009 and the audited statutory accounts
for the year ended 31 December 2009.
The accompanying notes form an integral part of this announcement.
Summary reconciliation of movement in shareholders' funds
Combined
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
| |Called-up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
| Â | capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|1 January | | | | | | | | | |
|2010 | | | | | | | | | |
|(audited) | 17,074| 640| 1,183| (6,365)| 12,507| (2,540)| 1,389| 995| 24,883|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Realised | | | | | | | | | |
|gains | -| -| -| -| -| -| 503| -| 503|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Unrealised | | | | | | | | | |
|losses | -| -| -| (89)| -| -| -| -| (89)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Transfer of | | | | | | | | | |
|previously | | | | | | | | | |
|unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 179| -| -| (179)| -| -|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (218)| -| (218)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 52| -| 52|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | |
|shares | -| -| -| -| -| (239)| -| -| (239)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | 2,502| 2,203| -| -| -| -| -| -| 4,705|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Cancellation| | | | | | | | | |
|of treasury | | | | | | | | | |
|shares | (72)| -| 72| -| (115)| 115| -| -| -|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 208| 208|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Dividends | | | | | | | | | |
|paid | -| -| -| -| -| -| (224)| (964)|(1,188)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 30 | | | | | | | | | |
|June 2010 | | | | | | | | | |
|(unaudited) | 19,504| 2,843| 1,255| (6,275)| 12,392| (2,664)| 1,323| 239| 28,617|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
| |Called-up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
| Â | capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 1 | | | | | | | | | |
|January | | | | | | | | | |
|2009 | | | | | | | | | |
|(audited) | 16,307| 3,266| 1,183| (5,622)| 9,223| (2,272)| 2,459| 889| 25,433|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Realised | | | | | | | | | |
|gains | -| -| -| -| -| -| 39| -| 39|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Unrealised | | | | | | | | | |
|losses | -| -| -| (1,928)| -| -| -| -|(1,928)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (207)| -| (207)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 39| -| 39|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Recoverable | | | | | | | | | |
|VAT | | | | | | | | | |
|capitalised | -| -| -| -| -| -| 70| -| 70|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | |
|shares | -| -| -| -| -| (127)| -| -| (127)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 300| 300|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 30 | | | | | | | | | |
|June 2009 | | | | | | | | | |
|(unaudited) | 16,307| 3,266| 1,183| (7,550)| 9,223| (2,399)| 2,400| 1,189| 23,619|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
| |Called-up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
| Â | capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 1 | | | | | | | | | |
|January | | | | | | | | | |
|2009 | | | | | | | | | |
|(audited) | 16,307| 3,266| 1,183| (5,622)| 9,223| (2,272)| 2,459| 889| 25,433|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Realised | | | | | | | | | |
|losses | -| -| -| -| -| -| (3)| -| (3)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Unrealised | | | | | | | | | |
|losses | -| -| -| (983)| -| -| -| -| (983)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Transfer of | | | | | | | | | |
|Â previously | | | | | | | | | |
|unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 240| -| -| (240)| -| -|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (407)| -| (407)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 94| -| 94|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Recoverable | | | | | | | | | |
|VAT | | | | | | | | | |
|capitalised | -| -| -| -| -| -| 82| -| 82|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | |
|shares | -| -| -| -| -| (268)| -| -| (268)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | 767| 658| -| -| -| -| -| -| 1,425|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Cancellation| | | | | | | | | |
|of share | | | | | | | | | |
|premium | | | | | | | | | |
|account | -|(3,284)| -| -| 3,284| -| -| -| -|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 703| 703|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Dividends | | | | | | | | | |
|paid | -| -| -| -| -| -| (596)| (596)|(1,192)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 31 | | | | | | | | | |
|December | | | | | | | | | |
|2009 | | | | | | | | | |
|(audited) | 17,074| 640| 1,183| (6,365)| 12,507| (2,540)| 1,389| 995| 24,883|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
*Included within these reserves is an amount of £5,015,000 (30 June 2009:
£2,863,000; 31 December 2009: £5,986,000) which is considered distributable. The
Special reserve has been treated as distributable in determining the amounts
available for distribution.
Summary reconciliation of movement in shareholders' funds
Ordinary shares
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
| |Called-up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
| Â | capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|1 January | | | | | | | | | |
|2010 | | | | | | | | | |
|(audited) | 16,357| -| 1,183| (6,365)| 12,507| (2,540)| 1,390| 994| 23,526|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Realised | | | | | | | | | |
|gains | -| -| -| -| -| -| 503| -| 503|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Unrealised | | | | | | | | | |
|losses | -| -| -| (90)| -| -| -| -| (90)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Transfer of | | | | | | | | | |
|previously | | | | | | | | | |
|unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 179| -| -| (179)| -| -|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (187)| -| (187)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 48| -| 48|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | |
|shares | -| -| -| -| -| (239)| -| -| (239)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | 51| 19| -| -| -| -| -| -| 70|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Cancellation| | | | | | | | | |
|of treasury | | | | | | | | | |
|shares | (72)| -| 72| -| (115)| 115| -| -| -|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 194| 194|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Dividends | | | | | | | | | |
|paid | -| -| -| -| -| -| (224)| (964)|(1,188)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 30 | | | | | | | | | |
|June 2010 | | | | | | | | | |
|(unaudited) | 16,336| 19| 1,255| (6,276)| 12,392| (2,664)| 1,351| 224| 22,637|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
| |Called-up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
| Â | capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 1 | | | | | | | | | |
|January | | | | | | | | | |
|2009 | | | | | | | | | |
|(audited) | 16,307| 3,266| 1,183| (5,622)| 9,223| (2,272)| 2,459| 889| 25,433|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Realised | | | | | | | | | |
|gains | -| -| -| -| -| -| 39| -| 39|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Unrealised | | | | | | | | | |
|losses | -| -| -| (1,928)| -| -| -| -|(1,928)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (207)| -| (207)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 39| -| 39|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Recoverable | | | | | | | | | |
|VAT | | | | | | | | | |
|capitalised | -| -| -| -| -| -| 70| -| 70|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | |
|shares | -| -| -| -| -| (127)| -| -| (127)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 300| 300|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 30 | | | | | | | | | |
|June 2009 | | | | | | | | | |
|(unaudited) | 16,307| 3,266| 1,183| (7,550)| 9,223| (2,399)| 2,400| 1,189| 23,619|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
| |Called-up| | Capital|Unrealised| |Treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
| Â | capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|  | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|1 January | | | | | | | | | |
|2009 | | | | | | | | | |
|(audited) | 16,307| 3,266| 1,183| (5,622)| 9,223| (2,272)| 2,459| 889| 25,433|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Realised | | | | | | | | | |
|losses | -| -| -| -| -| -| (3)| -| (3)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Unrealised | | | | | | | | | |
|losses | -| -| -| (983)| -| -| -| -| (983)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Transfer of | | | | | | | | | |
|unrealised | | | | | | | | | |
|losses to | | | | | | | | | |
|realised | | | | | | | | | |
|losses | -| -| -| 240| -| -| (240)| -| -|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Capitalised | | | | | | | | | |
|investment | | | | | | | | | |
|management | | | | | | | | | |
|fees | -| -| -| -| -| -| (406)| -| (406)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Tax relief | | | | | | | | | |
|on costs | | | | | | | | | |
|charged to | | | | | | | | | |
|capital | -| -| -| -| -| -| 94| -| 94|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Recoverable | | | | | | | | | |
|VAT | | | | | | | | | |
|capitalised | -| -| -| -| -| -| 82| -| 82|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Purchase of | | | | | | | | | |
|own treasury| | | | | | | | | |
|shares | -| -| -| -| -| (268)| -| -| (268)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Issue of | | | | | | | | | |
|equity (net | | | | | | | | | |
|of costs) | 50| 18| -| -| -| -| -| -| 68|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Cancellation| | | | | | | | | |
|of share | | | | | | | | | |
|premium | | | | | | | | | |
|account | -|(3,284)| -| -| 3,284| -| -| -| -|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Revenue | | | | | | | | | |
|return | | | | | | | | | |
|attributable| | | | | | | | | |
|to | | | | | | | | | |
|shareholders| -| -| -| -| -| -| -| 702| 702|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|Dividends | | | | | | | | | |
|paid | -| -| -| -| -| -| (596)| (596)|(1,192)|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
|As at 31 | | | | | | | | | |
|December | | | | | | | | | |
|2009 | | | | | | | | | |
|(audited) | 16,357| -| 1,183| (6,365)| 12,507| (2,540)| 1,390| 994| 23,526|
+------------+---------+-------+----------+----------+--------+--------+--------+--------+-------+
*Included within these reserves is an amount of £5,027,000 (30 June 2009:
£2,863,000; 31 December 2009: £5,986,000) which is considered distributable. The
Special reserve has been treated as distributable in determining the amounts
available for distribution.
Summary reconciliation of movement in shareholders' funds
D shares
+---------------+-----------+---------+------------+----------+----------+-----+
| | Called-up| | Unrealised| Realised| | |
| | share| Share| capital| capital| Revenue| |
| Â | capital| premium| reserve*| reserve*| reserve*|Total|
+---------------+-----------+---------+------------+----------+----------+-----+
|  | £'000| £'000| £'000| £'000| £'000|£'000|
+---------------+-----------+---------+------------+----------+----------+-----+
|1 January 2010 | | | | | | |
|(audited) | 717| 640| -| (1)| 1|1,357|
+---------------+-----------+---------+------------+----------+----------+-----+
|Unrealised | | | | | | |
|gains | -| -| 1| -| -| 1|
+---------------+-----------+---------+------------+----------+----------+-----+
|Capitalised | | | | | | |
|investment | | | | | | |
|management fees| -| -| -| (31)| -| (31)|
+---------------+-----------+---------+------------+----------+----------+-----+
|Tax relief on | | | | | | |
|costs charged | | | | | | |
|to capital | -| -| -| 4| -| 4|
+---------------+-----------+---------+------------+----------+----------+-----+
|Issue of equity| | | | | | |
|(net of costs) | 2,451| 2,184| -| -| -|4,635|
+---------------+-----------+---------+------------+----------+----------+-----+
|Revenue return | | | | | | |
|attributable to| | | | | | |
|shareholders | -| -| -| -| 14| 14|
+---------------+-----------+---------+------------+----------+----------+-----+
|As at 30 June | | | | | | |
|2010 | | | | | | |
|(unaudited) | 3,168| 2,824| 1| (28)| 15|5,980|
+---------------+-----------+---------+------------+----------+----------+-----+
+---------------+-----------+---------+------------+----------+----------+-----+
| | Called-up| | Unrealised| Realised| | |
| | share| Share| capital| capital| Revenue| |
| Â | capital| premium| reserve*| reserve*| reserve*|Total|
+---------------+-----------+---------+------------+----------+----------+-----+
|  | £'000| £'000| £'000| £'000| £'000|£'000|
+---------------+-----------+---------+------------+----------+----------+-----+
|As at 1 January| | | | | | |
|2009 (audited) | -| -| -| -| -| -|
+---------------+-----------+---------+------------+----------+----------+-----+
|Capitalised | | | | | | |
|investment | | | | | | |
|management fees| -| -| -| (1)| -| (1)|
+---------------+-----------+---------+------------+----------+----------+-----+
|Issue of equity| | | | | | |
|(net of costs) | 717| 640| -| -| -|1,357|
+---------------+-----------+---------+------------+----------+----------+-----+
|Revenue return | | | | | | |
|attributable to| | | | | | |
|shareholders | -| -| -| -| 1| 1|
+---------------+-----------+---------+------------+----------+----------+-----+
|As at 31 | | | | | | |
|December 2009 | | | | | | |
|(audited) | 717| 640| -| (1)| 1|1,357|
+---------------+-----------+---------+------------+----------+----------+-----+
*There are currently no distributable reserves (31 December 2009: £nil);
however, the share premium account amounting to £2.8 million was cancelled on
18 August 2010. The purpose of this cancellation is to increase the special
reserve in order to facilitate the Company's ability to pay dividends and to
purchase its own shares in future.
Summary cash flow statement
Combined
+-----------------------+----+----------------+----------------+---------------+
| Â | | | | Audited|
| | | Unaudited| Unaudited| year ended|
| | |six months ended|six months ended| 31 December|
| | | 30 June 2010| 30 June 2009*| 2009|
| |Note| £'000| £'000| £'000|
+-----------------------+----+----------------+----------------+---------------+
|Operating activities | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Investment income | | | | |
|received | Â | 359| 485| 949|
+-----------------------+----+----------------+----------------+---------------+
|Deposit interest | | | | |
|received | Â | 71| 46| 66|
+-----------------------+----+----------------+----------------+---------------+
|Dividend income | | | | |
|received | Â | -| -| 47|
+-----------------------+----+----------------+----------------+---------------+
|Other income received | Â | 1| -| 22|
+-----------------------+----+----------------+----------------+---------------+
|Investment management | | | | |
|fees paid | Â | (273)| (254)| (375)|
+-----------------------+----+----------------+----------------+---------------+
|Recovery of VAT | Â | -| 488| 522|
+-----------------------+----+----------------+----------------+---------------+
|Administrative fees | | | | |
|paid | Â | (135)| (109)| (180)|
+-----------------------+----+----------------+----------------+---------------+
|Net cash inflow from | | | | |
|operating activities | 9| 23| 656| 1,051|
+-----------------------+----+----------------+----------------+---------------+
|Â | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Taxation | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|UK corporation tax | | | | |
|received/(paid) | Â | 43| (384)| (384)|
+-----------------------+----+----------------+----------------+---------------+
|Â | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Capital expenditure and| | | | |
|financial investments | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Purchase of fixed asset| | | | |
|investments | Â | (976)| (415)| (1,819)|
+-----------------------+----+----------------+----------------+---------------+
|Disposal of fixed asset| | | | |
|investments | Â | 1,199| 237| 422|
+-----------------------+----+----------------+----------------+---------------+
|Net cash | | | | |
|inflow/(outflow) from | | | | |
|investing activities | Â | 223| (178)| (1,397)|
+-----------------------+----+----------------+----------------+---------------+
|Â | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Management of liquid | | | | |
|resources | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Disposal of current | | | | |
|asset investment | Â | -| 3,050| 3,050|
+-----------------------+----+----------------+----------------+---------------+
|Net cash inflow from | | | | |
|liquid resources | Â | -| 3,050| 3,050|
+-----------------------+----+----------------+----------------+---------------+
|Â | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Â | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Equity dividends paid | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Dividends paid (net of | | | | |
|costs of shares issued | | | | |
|under the dividend | | | | |
|reinvestment scheme) | Â | (1,111)| -| (1,133)|
+-----------------------+----+----------------+----------------+---------------+
|Net cash | | | | |
|(outflow)/inflow before| | | | |
|financing | Â | (822)| 3,144| 1,187|
+-----------------------+----+----------------+----------------+---------------+
|Â | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Financing | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Purchase of own shares | Â | (223)| (110)| (268)|
+-----------------------+----+----------------+----------------+---------------+
|Issue of share capital | | | | |
|(net of costs) | Â | 4,933| -| 1,199|
+-----------------------+----+----------------+----------------+---------------+
|Costs of issue of share| | | | |
|capital | Â | (7)| (11)| -|
+-----------------------+----+----------------+----------------+---------------+
|Net cash | | | | |
|inflow/(outflow) from | | | | |
|financing | Â | 4,703| (121)| 931|
+-----------------------+----+----------------+----------------+---------------+
|Cash inflow in the | | | | |
|period | 10| 3,881| 3,023| 2,118|
+-----------------------+----+----------------+----------------+---------------+
 * D shares were first allotted 23 December 2009
Summary cash flow statement
Ordinary shares
+-----------------------+----+----------------+----------------+---------------+
| | | | | Audited|
| | | Unaudited| Unaudited| year ended|
| | |six months ended|six months ended| 31 December|
| | | 30 June 2010| 30 June 2009| 2009|
|  |Note| £'000| £'000| £'000|
+-----------------------+----+----------------+----------------+---------------+
|Operating activities | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Investment income | | | | |
|received | Â | 359| 485| 949|
+-----------------------+----+----------------+----------------+---------------+
|Deposit interest | | | | |
|received | Â | 39| 46| 66|
+-----------------------+----+----------------+----------------+---------------+
|Dividend income | | | | |
|received | Â | -| -| 47|
+-----------------------+----+----------------+----------------+---------------+
|Other income received | Â | 1| -| 22|
+-----------------------+----+----------------+----------------+---------------+
|Investment management | | | | |
|fees paid | Â | (265)| (254)| (375)|
+-----------------------+----+----------------+----------------+---------------+
|Recovery of VAT | Â | -| 488| 522|
+-----------------------+----+----------------+----------------+---------------+
|Administrative fees | | | | |
|paid | Â | (129)| (109)| (180)|
+-----------------------+----+----------------+----------------+---------------+
|Net cash inflow from | | | | |
|operating activities | 9| 5| 656| 1,051|
+-----------------------+----+----------------+----------------+---------------+
|Â | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Taxation | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|UK corporation tax | | | | |
|received/(paid) | Â | 43| (384)| (384)|
+-----------------------+----+----------------+----------------+---------------+
|Â | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Capital expenditure and| | | | |
|financial investments | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Purchase of fixed asset| | | | |
|investments | Â | (576)| (415)| (1,819)|
+-----------------------+----+----------------+----------------+---------------+
|Disposal of fixed asset| | | | |
|investments | Â | 1,199| 3,050| 422|
+-----------------------+----+----------------+----------------+---------------+
|Net cash | | | | |
|inflow/(outflow) from | | | | |
|investing activities | Â | 623| 2,635| (1,397)|
+-----------------------+----+----------------+----------------+---------------+
|Â | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Â | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Management of liquid | | | | |
|resources | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Disposal of current | | | | |
|asset investment | Â | -| 237| 3,050|
+-----------------------+----+----------------+----------------+---------------+
|Net cash inflow from | | | | |
|liquid resources | Â | -| 237| 3,050|
+-----------------------+----+----------------+----------------+---------------+
|Â | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Equity dividends paid | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Dividends paid (net of | | | | |
|costs of shares issued | | | | |
|under dividend | | | | |
|reinvestment scheme) | Â | (1,111)| -| (1,133)|
+-----------------------+----+----------------+----------------+---------------+
|Net cash | | | | |
|(outflow)/inflow before| | | | |
|financing | Â | (440)| 3,144| 1,187|
+-----------------------+----+----------------+----------------+---------------+
|Â | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Financing | Â | Â | Â | Â |
+-----------------------+----+----------------+----------------+---------------+
|Purchase of own shares | Â | (223)| (110)| (268)|
+-----------------------+----+----------------+----------------+---------------+
|Costs of issue of share| | | | |
|capital | Â | (7)| (11)| -|
+-----------------------+----+----------------+----------------+---------------+
|Net cash outflow from | | | | |
|financing | Â | (230)| (121)| (268)|
+-----------------------+----+----------------+----------------+---------------+
|Cash (outflow)/inflow | | | | |
|in the period | 10| (670)| 3,023| 919|
+-----------------------+----+----------------+----------------+---------------+
Summary cash flow statement
D shares
+---------------------------------------+----+----------------+----------------+
| Â | | Unaudited| Audited|
| | |six months ended| year ended|
| | | 30 June 2010|31 December 2009|
| |Note| £'000| £'000|
+---------------------------------------+----+----------------+----------------+
|Operating activities | Â | Â | Â |
+---------------------------------------+----+----------------+----------------+
|Deposit interest received | Â | 32| -|
+---------------------------------------+----+----------------+----------------+
|Investment management fees paid | Â | (8)| -|
+---------------------------------------+----+----------------+----------------+
|Administrative fees paid | Â | (6)| -|
+---------------------------------------+----+----------------+----------------+
|Net cash inflow from operating | | | |
|activities | 9| 18| -|
+---------------------------------------+----+----------------+----------------+
|Â | Â | Â | Â |
+---------------------------------------+----+----------------+----------------+
|Capital expenditure and financial | | | |
|investments | Â | Â | Â |
+---------------------------------------+----+----------------+----------------+
|Purchase of fixed asset investments | Â | (400)| -|
+---------------------------------------+----+----------------+----------------+
|Net cash outflow from investing | | | |
|activities | Â | (400)| -|
+---------------------------------------+----+----------------+----------------+
|Â | Â | Â | Â |
+---------------------------------------+----+----------------+----------------+
|Net cash outflow before financing | Â | (382)| -|
+---------------------------------------+----+----------------+----------------+
|Â | Â | Â | Â |
+---------------------------------------+----+----------------+----------------+
|Financing | Â | Â | Â |
+---------------------------------------+----+----------------+----------------+
|Issue of share capital (net of costs) | Â | 4,933| 1,199|
+---------------------------------------+----+----------------+----------------+
|Net cash inflow from financing | Â | 4,933| 1,199|
+---------------------------------------+----+----------------+----------------+
|Cash inflow in the period | 10| 4,551| 1,199|
+---------------------------------------+----+----------------+----------------+
Notes to the unaudited summarised Financial Statements for the six months ended
30 June 2010
1. Accounting convention
The Financial Statements have been prepared in accordance with the historical
cost convention, modified to include the revaluation of investments, in
accordance with applicable United Kingdom law and accounting standards and with
the Statement of Recommended Practice "Financial Statements of Investment Trust
Companies and Venture Capital Trusts" ("SORP") issued by the Association of
Investment Companies ("AIC") in January 2009. Accounting policies have been
applied consistently in current and prior periods.
2. Accounting policies
Investments
Quoted and unquoted equity investments
In accordance with FRS 26 "Financial Instruments Recognition and Measurement",
quoted and unquoted equity investments are designated at fair value through
profit or loss. Investments listed on recognised exchanges are valued at the
closing bid prices at the end of the accounting period. Unquoted investments'
fair value is determined by the Directors in accordance with the International
Private Equity and Venture Capital Valuation Guidelines (IPEVCV guidelines). The
revised September 2009 IPEVCV guidelines have not had a material impact on the
portfolio.
Fair value movements on equity investments and gains and losses arising on the
disposal of investments are reflected in the capital column of the Income
statement in accordance with the AIC SORP and realised gains or losses on the
sale of investments will be reflected in the realised capital reserve, and
unrealised gains or losses arising from the revaluation of investments will be
reflected in the unrealised capital reserve.
Unquoted loan stock
Unquoted loan stock is classified as loans and receivables in accordance with
FRS 26 and carried at amortised cost using the Effective Interest Rate method
less impairment. Movements in respect of capital provisions are reflected in the
capital column of the Income statement and are reflected in the realised capital
reserve following sale, or in the unrealised capital reserve on revaluation.
For all unquoted loan stock, fully performing, renegotiated, past due and
impaired, the Board considers that the fair value is equal to or greater than
the security value of these assets. For unquoted loan stock, the amount of the
impairment is the difference between the asset's cost and the present value of
estimated future cash flows, discounted at the effective interest rate.
Warrants, convertibles and unquoted equity derived instruments
Warrants, convertibles and unquoted equity derived instruments are only valued
if their exercise or contractual conversion terms would allow them to be
exercised or converted as at the balance sheet date, and if there is additional
value to the Company in exercising or converting as at the balance sheet date.
Otherwise these instruments are held at nil value. The valuation techniques used
are those used for the underlying equity investment.
Investments are recognised as financial assets on legal completion of the
investment contract and are de-recognised on legal completion of the sale of an
investment.
Dividend income is not recognised as part of the fair value movement of an
investment, but is recognised separately as investment income through the
revenue reserve when a share becomes ex-dividend.
Loan stock accrued interest is recognised in the Balance sheet as part of the
carrying value of the loans and receivables at the end of each reporting period.
It is not the Company's policy to exercise control or significant influence over
investee companies. Therefore, in accordance with the exemptions under FRS 9
"Associates and joint ventures", those undertakings in which the Company holds
more than 20 per cent. of the equity are not regarded as associated
undertakings.
Investment income
Quoted and unquoted equity income
Dividend income is included in revenue when the investment is quoted
ex-dividend.
Unquoted loan stock and other preferred income
Fixed returns on non-equity shares and debt securities are recognised on a time
apportionment basis using the effective interest rate over the life of the
financial instrument. Income which is not capable of being received within a
reasonable period of time is reflected in the capital value of the investment.
Bank interest income
Interest income is recognised on an accruals basis using the rate of interest
agreed with the bank.
Floating rate note income
Floating rate note income is recognised on an accruals basis using the interest
rate applicable to the floating rate note at that time.
Investment management fees and other expenses
All expenses have been accounted for on an accruals basis. Expenses are charged
through the revenue account except the following which are charged through the
realised capital reserve:
   ·    75 per cent. of management fees are allocated to the capital account to
the extent that these relate to an enhancement in the value of the investments
and in line with the Board's expectation that over the long term 75 per cent. of
the Company's investment returns will be in the form of capital gains; and
   ·    expenses which are incidental to the purchase or disposal of an
investment are charged through the realised capital reserve.
Performance incentive fee
In the event that a performance incentive fee crystallises, the fee will be
allocated between revenue and realised capital reserves based upon the
proportion to which the calculation of the fee is attributable to revenue and
capital returns.
Taxation
Taxation is applied on a current basis in accordance with FRS 16 "Current tax".
Taxation associated with capital expenses is applied in accordance with the
SORP. In accordance with FRS 19 "Deferred tax", deferred taxation is provided in
full on timing differences that result in an obligation at the balance sheet
date to pay more tax or a right to pay less tax, at a future date, at rates
expected to apply when they crystallise based on current tax rates and law.
Timing differences arise from the inclusion of items of income and expenditure
in taxation computations in periods different from those in which they are
included in the financial statements. Deferred tax assets are recognised to the
extent that it is regarded as more likely than not that they will be recovered.
The specific nature of taxation of venture capital trusts means that it is
unlikely that any deferred tax will arise. The Directors have considered the
requirements of FRS 19 and do not believe that any provision should be made.
Reserves
Share premium
This reserve accounts for the difference between the price paid for shares and
the nominal value of the shares, less issue costs and transfers to the special
reserve.
Capital redemption reserve
This reserve accounts for amounts by which the issued share capital is
diminished through the repurchase and cancellation of the Company's own shares.
Unrealised capital reserve
Increases and decreases in the valuation of investments held at the period end
against cost are included in this reserve.
Special reserve
The cancellation of the share premium account has created a special reserve that
can be used to fund market purchases and subsequent cancellation of own shares,
to cover gross realised losses, and for other distributable purposes.
Treasury shares reserve
This reserve accounts for amounts by which the distributable reserves of the
Company are diminished through the repurchase of the Company's own shares for
treasury.
Realised capital reserve
The following are disclosed in this reserve:
   ·    gains and losses compared to cost on the realisation of investments;
   ·    expenses, together with the related taxation effect, charged in
accordance with the above policies; and
   ·    dividends paid to equity holders.
Dividends
In accordance with FRS 21 "Events after the balance sheet date", dividends
declared by the Company are accounted for in the period in which the dividend
has been paid or approved by shareholders in an Annual General Meeting.
3.      Gains/(losses) on investments
Combined
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2010 30 June 2009 31 December 2009
£'000 £'000 £'000
--------------------------------------------------------------------------------
Unrealised (losses)/gains on
fixed asset investments held
at fair value through profit
or loss account (66) (592) 574
Unrealised losses on fixed
asset investments held at
amortised cost (23) (1,369) (1,557)
---------------------------------------------------
Unrealised losses on fixed
asset investments (89) (1,961) (983)
Unrealised gains on current
asset investments held at
fair value through profit or
loss account - 33 -
---------------------------------------------------
Unrealised losses sub-total (89) (1,928) (983)
Realised gains/(losses) on
investments held at fair
value through profit or loss
account 369 39 (2)
Realised gains/(losses) on
investments held at amortised
cost 134 - (37)
Realised gains on current
asset investments held at
fair value through profit or
loss account - - 36
---------------------------------------------------
Realised gains/(losses)
sub-total 503 39 (3)
---------------------------------------------------
Total 414 (1,889) (986)
Ordinary shares
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2010 30 June 2009 31 December 2009
£'000 £'000 £'000
--------------------------------------------------------------------------------
Unrealised (losses)/gains on
fixed asset investments held
at fair value through profit
or loss account (67) (592) 574
Unrealised losses on fixed
asset investments held at
amortised cost (23) (1,369) (1,557)
---------------------------------------------------
Unrealised losses on fixed
asset investments (90) (1,961) (983)
Unrealised gains on current
asset investments held at
fair value through profit or
loss account - 33 -
---------------------------------------------------
Unrealised losses sub-total (90) (1,928) (983)
Realised gains/(losses) on
investments held at fair
value through profit or loss
account 369 39 (2)
Realised gains/(losses) on
investments held at amortised
cost 134 - (37)
Realised gains on current
asset investments held at
fair value through profit or
loss account - - 36
---------------------------------------------------
Realised gains/(losses)
sub-total 503 39 (3)
---------------------------------------------------
Total 413 (1,889) (986)
D shares
 Unaudited Audited
six months ended year ended
30 June 2010 31 December 2009
£'000  £'000
--------------------------------------------------------------------------------
Unrealised gains on fixed asset investments
held at fair value through profit or loss
account 1 Â -
------------------ -----------------
Total 1 Â -
Investments valued on an amortised cost basis are unquoted loan stock
instruments.
The prior year analysis has been re-presented to reflect a separate transfer
between reserves for accumulated unrealised gains or losses that had taken place
in previous periods relating to investments sold during the period.
4.      Investment income
Combined
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2010 30 June 2009 31 December 2009
£'000 £'000 £'000
--------------------------------------------------------------------------------
Income recognised on
investments held at fair
value through profit or loss
account
UK dividend income - 47 70
Floating rate note interest - 20 20
Bank deposit interest 73 32 68
Other income - 1 -
---------------------------------------------------
 73 100 158
Income recognised on
investments held at amortised
cost
Return on loan stock
investments 396 431 920
---------------------------------------------------
 469 531 1,078
---------------------------------------------------
Ordinary shares
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2010 30 June 2009 31 December 2009
£'000 £'000 £'000
--------------------------------------------------------------------------------
Income recognised on
investments held at fair
value through profit or loss
account
UK dividend income - 47 70
Floating rate note interest - 20 20
Bank deposit interest 38 32 67
Other income - 1 -
---------------------------------------------------
 38 100 157
Income recognised on
investments held at amortised
cost
Return on loan stock
investments 395 431 920
---------------------------------------------------
 433 531 1,077
---------------------------------------------------
D shares
 Unaudited Audited
six months ended year ended
30 June 2010 31 December 2009
£'000  £'000
----------------------------------------------- -----------------
Income recognised on
investments held at fair
value through profit or loss
account
Bank deposit interest 35 Â 1
------------------ -----------------
 35  1
Income recognised on
investments held at amortised
cost
Return on loan stock
investments 1 Â -
------------------ -----------------
 36  1
------------------ -----------------
All of the Company's income is derived from operations based in the United
Kingdom.
5.      Dividends
Ordinary shares
 Unaudited Unaudited Audited
 six months ended six months ended year ended
 30 June 2010 30 June 2009 31 December 2009
 £'000 £'000 £'000
--------------------------------------------------------------------------------
Dividend of 4.0p (0.75p
capital and 3.25p revenue)
per share paid on 4 May 2010 1,188 - -
Dividend of 4.0p (2.0p
capital and 2.0p revenue) per
share paid on 25 September
2009 - - 1,192
---------------------------------------------------
 1,188 - 1,192
---------------------------------------------------
No D share dividend was paid during the six months to 30 June 2010.
The Directors have declared a dividend of 4 pence per Ordinary share (total
approximately £1,176,000) and 1 penny per D share (total approximately £63,000),
payable on 30 September 2010 to shareholders on the register as at 3 September
2010.
6.      Basic and diluted return/(loss) per share
Ordinary shares Unaudited Unaudited Audited
six months six months year ended
ended ended 31 December
30 June 2010 30 June 2009 2009
--------------------------------------------------------------------------------
 Revenue Capital Revenue Capital Revenue Capital
Return/(loss) attributable to
Ordinary shares (£'000) 194 274 300 (1,987) 702 (1,216)
Weighted average shares in issue 29,551,163 29,943,949 29,842,149
Return/(loss)Â per Ordinary 0.7 0.9 1.0 (6.6) 2.4 (4.1)
share (pence)
D shares Unaudited  Audited
six months year ended
ended 31 December
30 June 2010 2009
------------------------------------------------------------ ----------------
 Revenue Capital   Revenue Capital
Return/(loss) attributable to D shares 14 (26) Â Â 1 (1)
(£'000)
Weighted average shares in issue 3,683,788 Â 1,433,600
Return/(loss)Â per D share (pence) 0.4 (0.7) Â Â - -
There are no convertible instruments, derivatives or contingent share agreements
in issue for Albion Development VCT PLC hence there are no dilution effects to
the return per share. The basic return per share is therefore the same as the
diluted return per share.
7.      Investments
Fixed asset investments held at fair value through profit or loss total
£6,701,000 (30 June 2009: £4,502,000; 31 December 2009: £6,023,000). Fixed asset
investments held at amortised cost total £12,342,000 (30 June 2009: £12,219,000;
31 December 2009: £12,852,000).
8.      Share capital
Unaudited Unaudited Audited
30 June 2010 30 June 2009 31 December 2009
Ordinary shares £'000 £'000 £'000
--------------------------------------------------------------------------------
Authorised
50,000,000 Ordinary shares of 50p
each (30 June 2009 and 31 December
2009: 50,000,000) 25,000 25,000 25,000
-------------------------------------------
Allotted, called up and fully paid
32,672,453 Ordinary shares of 50p
each (30 June 2009: 32,613,482, 31
December 2009: 32,713,157) 16,336 16,307 16,357
-------------------------------------------
Voting rights
29,405,866 Ordinary shares of 50p each (net of treasury shares) (30 June
2009:Â 29,811,374; 31 December 2009: 29,669,431).
Unaudited Audited
D shares 30 June 2010 Â 31 December 2009
--------------------------------------------------- -----------------
Authorised
40,000,000 D shares of 50p each (31
December 2009: 40,000,000) 20,000 Â 20,000
-------------- -----------------
Allotted, called up and fully paid
6,335,155 D shares of 50p each (31
December 2009: 1,433,600) 3,168 Â 717
-------------- -----------------
Voting rights
 6,335,155 D shares of 50p each (net of treasury shares) (31 December
2009: 1,433,600).
Under the terms of the D share Offer for subscription dated 1 October 2009, the
following D shares of nominal value 50 pence per share, were allotted at a price
of 100 pence per share. The D share Offer for subscription closed on 30 April
2010.
Date of D share Number of D Aggregate Consideration Opening market
allotment shares allotted nominal value received price per
of D shares (£'000) share on
(£'000) allotment date
(pence per
share)
--------------------------------------------------------------------------------
28 January 2010 561,425 281 547 95.0
25 February 112,150 56 110 95.0
2010
15 March 2010 408,425 204 406 95.0
23 March 2010 652,295 326 646 95.0
5 April 2010 2,792,235 1,396 2,763 95.0
30 April 2010 323,525 162 323 95.0
Under the authorisation to allot shares granted at the General Meeting on 28
October 2009, the following D shares of nominal value 50 pence per share were
allotted at a price of 100 pence per share:
Date of D share Number of D Aggregate Consideration Opening market
allotment shares nominal value received price per
allotted of D shares (£'000) share on
(£'000) allotment date
(pence per
share)
--------------------------------------------------------------------------------
21 June 2010 51,500 26 50 95.0
Under the terms of the Dividend Reinvestment Scheme circular dated 27 August
2008, the following Ordinary shares of nominal value 50 pence per share were
allotted at 75.3 pence per share:
Date of Number of Aggregate Consideration Opening market
Ordinary share Ordinary nominal value received price per
allotment shares of Ordinary (£'000) share on
allotted shares allotment date
(£'000) (pence per
share)
--------------------------------------------------------------------------------
4 May 2010 101,296 51 76 67.0
During the period to 30 June 2010 the Company purchased 364,861 Ordinary shares
to be held in treasury at a cost of £239,000, representing 1.1 per cent. of the
shares in issue as at 1 January 2010. The shares purchased for treasury were
funded from the Treasury shares reserve.
On 30 June 2010, 142,000 Ordinary treasury shares were cancelled.
The total number of Ordinary shares held in treasury as at 30 June 2010 was
3,266,587 (30 June 2009: 2,802,108; 31 December 2009: 3,043,726) representing
10 per cent. of the shares in issue  as at 30 June 2010. The Company does not
hold any D shares in treasury as at 30 June 2010.
9.      Reconciliation of revenue return on ordinary activities before taxation
to net cash inflow from operating activities
Combined
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2010 30 June 2009 31 December 2009
£'000 £'000 £'000
--------------------------------------------------------------------------------
Revenue return on ordinary
activities before tax 276 386 791
Investment management fees
charged to capital (218) (207) (407)
Recoverable VAT capitalised - 70 82
Movement in accrued amortised
loan stock interest (47) 24 22
(Increase)/decrease in
operating debtors (1) 363 463
Increase in operating
creditors 13 20 100
---------------------------------------------------
Net cash inflow from
operating activities 23 656 1,051
---------------------------------------------------
Ordinary shares
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2010 30 June 2009 31 December 2009
£'000 £'000 £'000
--------------------------------------------------------------------------------
Revenue return on ordinary
activities before tax 257 386 790
Investment management fees
charged to capital (187) (207) (406)
Recoverable VAT capitalised - 70 82
Movement in accrued amortised
loan stock interest (46) 24 22
Decrease in operating debtors 4 363 463
(Decrease)/increase in
operating creditors (23) 20 100
---------------------------------------------------
Net cash inflow from
operating activities 5 656 1,051
---------------------------------------------------
D shares
 Unaudited Audited
six months ended year ended
30 June 2010 31 December 2009
£'000  £'000
----------------------------------------------- -----------------
Revenue return on ordinary
activities before tax 19 Â 1
Investment management fees
charged to capital (31) Â (1)
Movement in accrued amortised
loan stock interest (1) Â -
Increase in operating debtors (5) Â -
Increase in operating
creditors 36 Â -
------------------ -----------------
Net cash inflow from
operating activities 18 Â -
------------------ -----------------
  10.     Analysis of change in cash during the period
Combined
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2010 30 June 2009 31 December 2009
£'000 £'000 £'000
----------------------------------------------------------------------------
Beginning of the period 5,908 3,790 3,790
Net cash inflow 3,881 3,023 2,118
---------------------------------------------------
End of the period 9,789 6,813 5,908
---------------------------------------------------
Ordinary shares
 Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2010 30 June 2009 31 December 2009
£'000 £'000 £'000
----------------------------------------------------------------------------
Beginning of the period 4,709 3,790 3,790
Net cash (outflow)/inflow (670) 3,023 919
---------------------------------------------------
End of the period 4,039 6,813 4,709
---------------------------------------------------
D shares
 Unaudited Audited
six months ended year ended
30 June 2010 31 December 2009
£'000  £'000
------------------------------------------- -----------------
Beginning of the period 1,199 Â -
Net cash inflow 4,551 Â 1,199
------------------ -----------------
End of the period 5,750 Â 1,199
------------------ -----------------
  11.    Post balance sheet events
 Since 30 June 2010, the Company has completed the following material
transactions:
   · July 2010: Investment in Rostima Limited of £13,000
   · July 2010: Investment in TEG Biogas (Perth) Limited of £590,000
   · July 2010: Disposal of Green Energy Property Services Group Limited for a
deferred consideration of up to £34,000
   · July 2010: Repayment of £139,000 of loan stock by Peakdale Molecular
Limited
   · August 2010: Investment in Xceleron Limited of £36,000
   · The Company has cancelled the D shares Share premium account by way of
special resolution at a General Meeting held on 28 October 2009. The Share
premium account amounting to £2.8 million was cancelled on 18 August 2010 by
order of the High Court and the Notice regarding the cancellation was registered
at Companies House on 20 August 2010. The purpose of this cancellation is to
increase the Special reserve in order to facilitate the Company's ability to pay
dividends and to purchase its own shares in future.
12.     Related party transactions
      The Manager, Albion Ventures LLP, is considered to be a related party by
virtue of the fact that it is party to a management agreement with the Company.
During the period, services of a total value of £290,000 (six months ended 30
June 2009: £276,000; year ended 31 December 2009: £542,000), were purchased by
the Company from Albion Ventures LLP. At the financial period end, the amount
due to Albion Ventures LLP in respect of these services was £160,000 (30 June
2009: £72,000; 31 December 2009: £143,000).
      During the six months to 30 June 2010, Albion Ventures LLP acted as
receiving agent and promoter for the Offer for subscription of D shares. Under
the terms of the Offer, Albion Ventures LLP was entitled to receive 5.5 per
cent. of the funds raised under the Offer in exchange for underwriting the costs
of the Offer. For the six months to 30 June 2010, Albion Ventures LLP has
charged £266,000 in respect of these fees. As at 30 June 2010, the amount owed
to Albion Ventures LLP in respect of these fees was £141,000.
      Albion Ventures LLP holds 331 fractional entitlement shares of the Company
as a result of the conversion of C shares to Ordinary shares in March 2007.
These shares will be sold for the benefit of the Company at a future date.
      Albion Ventures LLP also holds 14,000 Ordinary shares as a result of the
failure of an original subscriber to pay cleared funds on initial subscription.
13. Â Â Â Â Going concern
      The Board's assessment of liquidity risk remains unchanged since the last
Annual Report and Financial Statements for the year ended 31 December 2009, and
is detailed on page 19 of those accounts. The Company has adequate cash and
liquid resources. The portfolio of investments is diversified in terms of
sector, and the major cash outflows of the Company (namely investments,
dividends and share buy-backs) are within the Company's control. Accordingly,
after making diligent enquiries, the Directors have a reasonable expectation
that the Company has adequate resources to continue in operational existence for
the foreseeable future. For this reason, the Directors have adopted the going
concern basis in preparing this Half-yearly Financial Report and this is in
accordance with 'Going Concern and Liquidity Risk: Guidance for Directors of UK
Companies 2009' published by the Financial Reporting Council.
14.     Other information
      The information set out in this Half-yearly Financial Report does not
constitute the Company's statutory accounts within the terms of section 434 of
the Companies Act 2006 for the periods ended 30 June 2010 and 30 June 2009, and
is unaudited. The information for the year ended 31 December 2009 does not
constitute statutory accounts within the terms of section 434 of the Companies
Act 2006 but is derived from the audited statutory accounts for the year ended
31 December 2009 and which have been delivered to the Registrar of Companies.
The auditors reported on those accounts; their report was unqualified and did
not contain a statement under S498 (2) or (3) of the Companies Act 2006.
15.     Publication
      This Half-yearly Financial Report is being sent to shareholders and copies
will be made available to the public at the registered office of the Company,
Companies House, the FSA viewing facility and also electronically
atwww.albion-ventures.co.uk under the 'Our Funds' section.
[HUG#1439875]
Pie Chart 1 Ordinary shares:
http://hugin.info/141803/R/1439875/384180.pdf
Pie Chart 2 D shares:
http://hugin.info/141803/R/1439875/384181.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
All reproduction for further distribution is prohibited.
Source: Albion Development VCT PLC - Ordinary Shares via Thomson Reuters ONE
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