Annual Financial Report

Hargreave Hale AIM VCT 1 plc announced its results for the year ended 30
September 2010 on 20 December 2010. The full Financial Statements can be
accessed on the Company's website 

http://www.hargreave-
hale.co.uk/aimvct/reports.htm or alternatively by following the link at the
bottom of this report.

FINANCIAL HIGHLIGHTS

 Ordinary Shares:                                   2010     2009



 Net asset value per share                          62.67p   63.98p

 Cumulative distributions paid since launch         19.0p    17.0p

 Total return                                       81.67p   80.98p



 Discount to Net Asset Value (based on bid market   15.0%    23.0%
 price at balance sheet date)



 Annual Returns per share:

 Revenue return                                     0.07p    (0.31)p

 Capital return                                     0.21p    (1.27)p

 Return per share                                   0.28p    (1.58)p



 Dividends:

 Interim paid                                       2.0p     2.0p

 Final proposed                                     2.0p     -

 Total dividend for year                            4.0p     2.0p



 Performance Benchmark:

 Total Return                                       86.0%    85.2%

 FTSE AIM All-share Index                           81.2%    67.0%

 (results rebased to 100 at 29 October 2004)



CHAIRMAN'S STATEMENT

Introduction
I  am pleased to report that the  financial results for the year to 30 September
2010 show  an improvement over the previous  year.  At 30 September 2010 the NAV
was  62.67 pence  which  after  adjusting  for  the dividends paid gives a total
return  of 81.67 pence. The gain per ordinary  share for the year was 0.28 pence
per  share (comprising  revenue gains  of 0.07 pence  and capital gains of 0.21
pence).

I  am pleased  to report  that the  NAV on  10 December had  risen to 68.77p per
share.

Investments
The Investment Manager, Hargreave Hale Limited, invested a further £0.98 million
in   5 qualifying   companies   during   the  year  and  3 companies  went  into
administration  realising  a  net  loss  of  £1.4  million.  The  Fair  Value of
qualifying  investments at 30 September 2010 was £9.9 million invested in 41 AIM
companies  and 1 unquoted company Mexican Grill Limited, the balance was held in
non-qualifying AIM stocks.

Dividend
An interim dividend of 2 pence was paid on 2 July 2010 (2009 - 2 pence).

A  final  dividend  of  2 pence  is  proposed  (2009  -  Nil)  which, subject to
shareholder  approval at the  AGM will be  paid on 14 February 2011, to ordinary
shareholders on the register on 14 January 2011.

Buybacks
We  were  pleased  that  we  were  able  to  maintain our policy of offering our
shareholders  an efficient  exit route  through the  buyback scheme.   In total,
1,621,991 Shares  were purchased  during the  year at  an average price of 56.3
pence per share.

Arrangements with Keydata Investment Services (KIS)/Change in Hargreave Hale's
Investment Management Agreement
On 8 June 2009 KIS went into administration.  On the 29 September 2010 the
Company signed a variation agreement with KIS and PricewaterhouseCoopers (the
administrators of KIS) to terminate certain obligations between the Company and
KIS under offer agreements which related to previous offers of shares by the
Company and an administration agreement that was formerly in place.  Of the
obligations terminated, these included the payment of annual fees of 0.9 per
cent. per annum and performance incentive fees by the Company to KIS, and the
payment by KIS of commissions to financial intermediaries in connection with
those offers (with the Company assuming the obligation for the payment of these
directly).

Since the year end, the Company and Hargreave Hale Limited entered into a deed
of variation on 15 December 2010 to vary the terms of the Investment Management
Agreement to increase the annual management fee payable to the Manager from 0.9
per cent. to 1.5 per cent. of the Net Asset Value of the Company. In exchange
Hargreave Hale Limited has agreed to provide an indemnity to cap the annual
running costs of the Company at 3.5 per cent. of the Net Asset Value (such costs
excluding VAT, any Performance Incentive Fee and any trail commissions the
payment of which is the responsibility of the Company) and cover any excess.

The effect of the change in annual management fee from 0.9 to 1.5 per cent.
would lead to an increase of £108,181 (based on the latest NAV as at 10 December
2010).

Joint Offer for Subscription of Ordinary Shares
On  the 20 March 2010 a joint  offer for subscription of  Ordinary Shares of 1p
each  in Hargreave Hale AIM VCT 1 plc and  Hargreave Hale AIM VCT 2 plc to raise
up  to, in  aggregate, £10  million was  offered to  the public. In the tax year
2009/2010, the Offer resulted in funds being received of £0.66 million and 0.99
million shares have been issued in respect of Hargreave Hale AIM VCT 1 plc.

In the tax year 2010/2011, the Offer has resulted so far in funds being received
of  £0.25  million  and  0.39 million  shares  have  been  issued  in respect of
Hargreave  Hale  AIM  VCT  1 plc.  The  Offer  opened  on 20 March 2010 has been
extended  and will now close on 18 March 2011 (unless fully subscribed earlier).
The  allocation of successful  applicants will be  on a first  come first served
basis,  unless the  maximum subscription  under the  offer has been exceeded, in
this  case  the  directors  reserve  the  right  to exercise their discretion in
allocating  shares. In respect  of the ongoing  Offer, to have full subscription
new funds will be limited to £6.09m in respect of Hargreave Hale AIM VCT 1 plc.

VCT Status
To  maintain its VCT  qualifying status we  must invest at  least 70% of the net
funds raised in any one accounting period in qualifying investments within three
years.  At  the  year  end  we  had  achieved  80.12% and have satisfied all the
relevant tests.

UK Listing Rule Changes
As  a public listed company, Hargreave Hale  AIM VCT 1 plc is required to comply
with  the  regulations  of  the  UK  listings  Authority. Certain changes to the
existing  Board  were  required  prior  to  the  new  UKLA  regulations on Board
independence  which came into effect on  28 September 2010. As a result of these
changes, on the 28 September 2010, David Hurst-Brown resigned as a non executive
director  of the  company. I  should like  to thank  David for  all his help and
sagacity  since  we  started.  David  Brock  whose  biography  is  on page 7 was
appointed in his place.

Outlook
Whilst the economy seems to have avoided the worst recession that was feared the
cost  has been an  unprecedented level of  Government borrowings and an enormous
ongoing  budget  deficit.  The  new  government  has recognised that this is not
sustainable for long and has started to make cuts. It faces a hard balancing act
between fiscal rectitude and killing off the green shoots of recovery.

I am hopeful that we will see continued recovery but there is little doubt that
we live in uncertain economic times. If the market suffers a reversal we may see
share prices go lower. Because a VCT has to maintain 70 per cent. of its assets
in qualifying companies the manager would have little scope to sell assets in
such circumstances. However, whilst we may see a short term drop in Net Asset
Value, I believe that your portfolio is largely comprised of robust companies
with competent management and good growth plans and will be well placed to
weather any such storm.

Sir Aubrey Brocklebank Bt
Chairman

Date: 20 December 2010

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





HHV Annual Financial Report 30 September 2010: 


http://hugin.info/142351/R/1478912/414674.pdf




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