Investec Structured Products Calculus VCT plc
Half Yearly Report
for the six months ended 31 August 2013
INVESTMENT OBJECTIVE
The Company's principal objectives for investors are to:
- invest in a portfolio of Venture Capital Investments and Structured
Products that will provide investment returns sufficient to allow the Company
to maximise annual dividends and pay an interim return either by way of a
special dividend or cash offer for shares on or before an interim return date;
- generate sufficient returns from a portfolio of Venture Capital
Investments that will provide attractive long-term returns within a tax
efficient vehicle beyond an interim return date;
- review the appropriate level of dividends annually to take account of
investment returns achieved and future prospects; and
- maintain VCT status to enable qualifying investors to retain their income
tax relief of up to 30 per cent. on the initial investment and receive
tax-free dividends and capital growth.
FINANCIAL REVIEW
Ordinary Share Fund
6 Months to 6 Months to 12 Months to
31 August 31 August 28 February
2013 2012 2013
Total return £46,000 £27,000 £309,000
Total return per ordinary share 1.0p 0.6p 6.5p
Revenue
Net profit/(loss) after tax £8,000 (£27,000) (£46,000)
Revenue return per ordinary
share 0.2p (0.6)p (1.0)p
As at As at As at
31 August 31 August 28 February
2013 2012 2013
Assets (investments valued at
bid market prices)
Net assets £4,359,000 £4,280,000 £4,562,000
Net asset value ("NAV") per
ordinary share 92.0p 90.3p 96.3p
Mid market quotation
Ordinary shares 87.5p 92.5p 92.5p
(Discount)/premium to NAV (4.9)% 2.4% (3.9)%
C Share Fund
6 Months to 6 Months to 12 Months to
31 August 31 August 28 February
2013 2012 2013
Total return £45,000 (£1,000) £104,000
Total return per C share 2.3p (0.1)p 5.4p
Revenue
Net loss after tax (£13,000) (£18,000) (£35,000)
Revenue return per C share (0.7)p (1.0)p (1.8)p
As at As at As at
31 August 31 August 28 February
2013 2012 2013
Assets (investments valued at
bid market prices)
Net assets £1,763,000 £1,700,000 £1,805,000
NAV per C share 91.3p 88.0p 93.5p
Mid market quotation
C shares 90.0p 90.0p 90.0p
(Discount)/premium to NAV (1.4)% 2.3% (3.7)%
INTERIM MANAGEMENT REPORT
Performance Summary
The net asset value per ordinary share was 92.0 pence as at 31 August 2013 compared
to 96.3 pence as at 28 February 2013. The major part of this movement is attributable
to the dividend of 5.25 pence per ordinary share paid in July 2013. This dividend
payment took cumulative dividends paid on the ordinary shares since inception to 15.75
pence, bringing the total return per ordinary share to 107.8 pence.
The net asset value per C share was 91.3 pence as at 31 August 2013 compared to 93.5
pence as at 28 February 2013. A dividend of 4.5 pence per C share was paid in July 2013.
This dividend payment took cumulative dividends paid on the C shares since inception to
9.0 pence, bringing the total return per C share to 100.3 pence.
We are encouraged by the Company's performance to date and believe the portfolio is well
positioned to make further progress in the second half of the year.
Venture Capital Investments
Portfolio developments
Calculus Capital Limited manages the Company's portfolio of Qualifying Investments. In
general, we prefer to take stakes of sufficient size to enable us to play a more
influential role in helping the companies develop. Investments may be by way of loan
stock and/or preference shares as well as equity. This provides income for the Company
to help pay regular dividends and provides a measure of risk mitigation.
The Ordinary Share Fund and the C Share Fund are managed separately although they both
have the same investment remit and, therefore, both have very similar portfolios. As at
31 August 2013, the Company held 14 Qualifying Investments and 9 Qualifying Investments
on behalf of the Ordinary Share Fund and the C Share Fund respectively.
Terrain Energy Limited ("Terrain") (Ordinary and C Share Funds)
In July, Terrain redeemed the loan stock held by the Ordinary Share Fund. Terrain continues
to make good progress. In January 2013, Terrain appointed Steve Jenkins as non-executive
chairman. Steve has extensive exploration and production experience, having been CEO
of Nautical Petroleum. Terrain's current licence portfolio comprises interests in seven
licences onshore in the UK, comprising a combination of production and exploration interests.
In August 2013, Terrain purchased a 20 per cent. interest in the Brockham oil field near
Dorking in Surrey. Brockham is currently producing 45 bpd (barrels per day) gross which
they are hoping to increase to 60 bpd following some upgrades to the site. Terrain also
has a 10 per cent. interest in the Larne-Lough Neagh Basin (PL1/10) with combined unrisked
P50 prospective resources, net to Terrain, of 45 million barrels. Following a £4.5 million
fundraising in August, Terrain intends to acquire interests in additional licences over the
next 18 months.
Lime Technology Limited ("Lime") (Ordinary Share Fund)
Lime was established in 2002 and provides low carbon building products to the construction
industry. The business comprises three parts: Lime Mortars, which are most appropriate to
the renovation and preservation of older buildings; Lime Building Systems, which are the
zero carbon panels used in Marks and Spencer's new superstore at Cheshire Oaks and the
Science Museum's large object archives at Wroughton, near Swindon; and a hemp, linseed and
rape processing facility. Lime's products have been featured on Channel 4 (Kevin McCloud's
Grand Designs), the Discovery Channel and Al Jazeera Television. The group is going through
a turnaround phase with a new management team, product lines and direction. Whilst the
building products industry remains depressed, the 'green' sector is showing strong growth.
MicroEnergy Generation Services Limited ("MicroEnergy") (Ordinary Share Fund)
MicroEnergy owns and operates a fleet of small onshore wind turbines (less than 5kW). As at
31 August 2013, 153 turbines had been installed on farm land in East Anglia and Yorkshire.
The portfolio will provide MicroEnergy with sufficient scale to mitigate against concerns
of poor short-term performance at any particular site. Revenues from the fleet of installed
turbines come from two sources, both of which are inflation protected, being directly linked
to RPI. Firstly, there is the Government backed feed-in tariff ("FIT") paid by the electricity
suppliers for every kilowatt of electricity generated for 20 years. Secondly, there is an export
tariff for any surplus electricity not used by the site owner that is exported to the grid.
The Company has 5.1 per cent. of the equity in MicroEnergy. Other funds managed by Calculus
Capital have invested in MicroEnergy and have combined voting rights of 5.8 per cent.
AnTech Limited ("AnTech") (Ordinary Share Fund)
Exeter-based AnTech Limited is a long-established oil services company. Founded in 1994,
AnTech has developed a new generation of directional drilling tools, primarily for use in
wells drilled using coiled tubing. Coiled tubing drilling provides a lower cost approach to
drilling shallower wells. Whilst the primary initial market for AnTech's expansion will be
North America, the company has also received interest from the other major oil-producing
regions, including Saudi Arabia, Eastern Europe, Russia, China, Malaysia and Australia. Saudi
Aramco Energy Ventures (the corporate venturing arm of Saudi Aramco), the world's largest oil
company by production and reserves, invested alongside the Company and other funds managed
by Calculus Capital.
Dryden Human Capital Group ("Dryden") (Ordinary Share Fund)
Dryden is a global professional services recruitment and executive search group and its
first business commenced operations in 1996. Headquartered in the UK, it specialises in the
actuarial, insurance and compliance recruitment sectors and operates out of London, Zurich,
Mumbai,Shanghai, Hong Kong, Sydney and New York. In April 2012, the group appointed a new
CEO with extensive experience in the recruitment industry and the Asia Pacific markets.
Dryden has also invested in improved technical equipment across the business, providing a
good platform for growth.
Hampshire Cosmetics Limited ("Hampshire") (Ordinary Share Fund)
Founded in the 1970s, Hampshire is an established company which develops and manufactures a
comprehensive range of products covering fragrances, body treatments, skincare and shampoos.
The business and trade and assets have been acquired by a management team that has previously
been backed by Calculus Capital in a successful investment. The business has performed
well in the first half of this calendar year, and management's focus on quality customer
delivery, profitability and cash flow is delivering positive results, with sales increasing
and the company returning to profit. The outlook is positive for the remaining part of the
year. In addition, Hampshire has undertaken a strategic review of the market and has identified
additional opportunities for product diversification and margin improvement. Some of the
identified strategies will be implemented during the coming financial year.
The Company has 4.6 per cent. of the equity in Hampshire.
Brigantes Energy Limited ("Brigantes") (Ordinary Share Fund)
Brigantes and Corfe Energy Limited (below) were originally set up to hold certain exploration
interests spun out of InfraStrata plc. Brigantes acquired a 45 per cent. interest in
InfraStrata's licence PL1/10 at Larne, Northern Ireland. Brigantes plans to farm out a
percentage to cover its costs in drilling a first exploration well, such that it will retain
a 25 per cent. interest going forward. InfraStrata, as operator, recently released the results
of a study of the prospects on PL1/10 which indicates the upside potential of the licence to be
as much as 450 million barrels of recoverable oil (112.5 million barrels net to Brigantes after
the farm out). Brigantes also has a 5 per cent. working interest in UK onshore licence PEDL 070
which contains the producing Avington field. The field produces at an average rate of 60-70 bpd and
Brigantes' share in the field has entitled it to 2,754 barrels since acquisition on 1 June 2011
to 5 September 2013. The company participated at a 10 per cent. interest level in a Cairn-led
licence application under the 27th Offshore Licensing Round in May. The result of this should be
known within the next few months.
The Company has 3.3 per cent. of the equity in Brigantes. Other funds managed by Calculus Capital
have invested in Brigantes and have combined voting rights of 25.6 per cent.
Corfe Energy Limited ("Corfe") (Ordinary Share Fund)
Corfe acquired an interest in certain InfraStrata assets applied for under the 26th Onshore
Licensing Round in the Dorset area. In relation to this, as part of the license award, Corfe has
been awarded a 12 per cent. interest in blocks 97/14, 97/15 and 98/11. Corfe also has a 5 per cent.
working interest in UK onshore licence PEDL 070 which contains the producing Avington field. In
February, Corfe entered into an agreement with Egdon Resources and Celtique Energy under the terms
of which Corfe will earn a 12.5 per cent. interest in UK onshore licence PEDL 201. Test drilling is
planned for later in 2013 and the estimate of reserves is up to 3.2 million barrels.
In March 2013, Corfe entered into an agreement with Egdon Resources, Aurora and First Oil Expro
under which it acquired a 25 per cent. working interest in UK onshore licences PL090 (excluding the
Waddock Cross development area in PL090) and PEDL 237, subject to the consent of the Department of
Energy and Climate Change. The group intends to shoot a 3D seismic survey over the area. The
operator's best estimate of potential resources in the main Sherwood prospect is 60 million barrels
of recoverable oil should drilling prove successful (7.5 million net to Corfe).
Human Race Group Limited ("Human Race") (Ordinary and C Share Funds)
Human Race owns and operates over 58 mass participation sporting events for over 100,000 participants.
The portfolio of events includes the Windsor Triathlon, Cycletta, Wiggle Dragon Ride, Etape Cymru,
and the Speedo Open Water Swimming Series. The group has had a successful year, with flagship
events continuing to go from strength to strength and the financial performance to date is in line
with budget. Human Race is undertaking a strategic review of its events, with a focus on growing
the core profitable events. Near-term performance will likely be impacted by the strategic review,
with the effect of delaying medium-term targets. The equity has been revalued accordingly. Human Race
has successfully maintained many existing sponsorship relationships and the outlook for new
relationships is positive.
Secure Electrans Limited ("Secure") (Ordinary and C Share Funds)
Secure was founded in 2000 and has developed internationally patented systems that provide solutions
to card payment fraud, a market place that is ready for high growth. Secure's systems provide
solutions to card payment fraud for 'card not present' ("CNP") transactions. The adoption of chip and
pin technology in retail environments has specifically reduced instore card fraud and Secure's
solution takes chip and pin technology from the retail sector and applies it to internet-based CNP
transactions. Secure has developed an end-to-end payment and security infrastructure which
incorporates chip and pin and has received certification from leading industry bodies and participants.
Tollan Energy Limited ("Tollan") (Ordinary Share Fund)
Tollan has been set up to generate electricity from renewable micro-generation facilities. In February
2013, Tollan entered into an agreement with Southern Energy Solutions Limited and PD Advice & Services
Limited (collectively, the Developer) to acquire a portfolio of installed solar PV panels. The solar
photovoltaic generating capacity, which will be installed on residential and potentially commercial
roofs in Northern Ireland, will benefit from Northern Ireland Renewable Obligation Certificates
("NIROC"s). Tollan's revenues will come from two sources both of which are inflation protected,
being directly linked to RPI. Firstly, there is the Government backed NIROC for every unit of
electricity generated. Under the current NIROC regime, solar installations of less than 50kW per site
receive 4 NIROCs per megawatt of electricity generated indexed for 20 years. Secondly, there is the
export tariff for any surplus electricity not used by the homeowner that is exported to the grid.
The Company has 6.4 per cent. of the equity in Tollan.
Venn Life Sciences Holdings plc ("Venn") (Ordinary and C Share Funds)
Venn is a Clinical Research Organisation ("CRO") with operations in France, the Netherlands, Ireland
and a branch office in Switzerland. Venn's near term objective is the consolidation of a number of
small European CROs to build a mid-sized CRO focused on the European market, offering clients a full
service, multi-centred capability in Phase II-IV trials across a range of principal disease areas.
The Company has 3.4 per cent. of the equity in Venn. Other funds managed by Calculus Capital have
invested in Venn and have combined voting rights of 9.1 per cent.
Metropolitan Safe Custody Limited ("Metropolitan") (Ordinary and C Share Funds)
Metropolitan provides safe custody services in central London to around 4,500 customers. Metropolitan
currently runs two safe custody sites, one in Knightsbridge, the other in St. John's Wood. These
profitable, stable businesses serve around 4,500 customers providing access to the vaults seven
days a week. In June 2012, Metropolitan purchased the trade and certain assets of London Safe
Deposit ("LSD"). LSD, one of the oldest providers in Central London, closed due to the redevelopment
of its site.
The Company has 3.2 per cent. of the equity in Metropolitan. Other funds managed by Calculus Capital
have invested in Metropolitan and have combined voting rights of 38.9 per cent.
New Holdings
Scancell Holdings plc ("Scancell") (C Share Fund)
In August 2013, the Company invested £100,000 on behalf of the C Share Fund in Scancell, a developer
of novel therapeutic vaccines for the treatment of cancer and infectious diseases. Scancell was
founded in 1997 by Professor Lindy Durrant and IPO'd on AIM in July 2010. Scancell's vaccines are
based on its proprietary ImmunoBody and Moditope technology 'platforms'. Scancell's first vaccine,
which is in phase 2 clinical trials, is for the treatment of melanoma. Scancell's scientific platform
is also applicable to the delivery of other therapeutic vaccines which is likely to lead to licensing
deals with other pharmaceutical companies.
Pico's Limited (trading as "Benito's Hat") (C Share Fund)
In May 2013, the Company invested £50,000 in Benito's Hat on behalf of the C Share Fund. Benito's Hat
is a Mexican-themed fast casual restaurant business with plans to expand in central London. Offering
tailor-made burritos, tacos, soups and salads, Benito's Hat is a restaurant brand centred on an
authentic experience and high-quality food, at an affordable price point. The brand has a devoted
customer following and has won many accolades from food critics. Benito's Hat launched its first site
in the West End of London in 2008 and has since opened three further sites in Covent Garden,
Oxford Circus and King's Cross. Benito's Hat will use the investment received in May 2013 to fund
the roll-out of restaurant openings to reach new customers across London and the UK. A fifth site
is due to open in Farringdon in October 2013, with others in the pipeline.
Horizon Discovery Limited ("Horizon") (C Share Fund)
Also in May 2013, the Company invested £50,000 in Horizon on behalf of the C Share Fund. Founded in
2007, Cambridge-based Horizon is a translational genomics company developing and supplying
patient-relevant drug discovery and diagnostic research tools. Horizon has developed GENESIS™, a
proprietary genome-editing platform, as well as a range of Genomic Reference Standards ("Reagents")
which are standardised synthetic DNA extractions from tumour biopsies. It is in the process of
developing genomic cell-based testing kits ("Cell Line Kits"), which can be used by clients to
perform medical testing on certain genomic cell lines.
Developments since the period end
There have not been any significant developments in the venture capital portfolio since the period
end.
Structured Products Portfolio
A significant proportion of the portfolio of Structured Products have now reached full term and
there has been little change over the past six months in the portfolio. The small Abbey Structured
Product holding in the Ordinary Share Fund was sold on 21 June 2013 at 119 per cent., resulting
in a return of £9,500 on the original £50,000 investment. This product was sold early to release
cash flow to purchase Qualifying Investments and to cover expenses.
The continuing strong performance of the FTSE 100 has supported valuations in the Structured
Products portfolio, and the FTSE 100 has increased to sit comfortably above all of the product's
strike levels. As at 30 August 2013 the FTSE 100 was 6,412.93. Over the past three months, swap rates
have increased very slightly along with market volatility, though still low when looking at mid-term
highs. Values of the Structured Product portfolio look strong, with the highest strike value at
5,341.93 in the Ordinary Share Fund and 5,584.51 in the C Share Fund.
No new investments were made in Structured Products during the period.
The Structured Products will achieve their target return subject to the Final Index Level of the
FTSE 100 being higher than the Initial Index Level. The capital is at risk on a one-for-one basis
("CAR") if the FTSE 100 Index falls more than 50 per cent. at any time during the investment term
and fails to fully recover at maturity such that the Final Index Level is below the Initial Index
Level. As at 30 August 2013, the following investments had been made in Structured Products:
Ordinary Share Fund Structured Products Portfolio as at 31 August 2013
FTSE
100 Price
Initial as at
Index Notional Purchase 31 August Maturity Return/Capital
Issuer Strike Date Level Investment Price 2013 Date at Risk ("CAR")
162.5% if FTSE 100*
The Royal higher; CAR if FTSE
Banks of 100 falls more than
Scotland plc 05/05/2010 5,341.93 £275,000 £0.96 £1.4474 12/05/2015 50%
185% if FTSE 100*
higher; CAR if FTSE
Investec 100 falls more than
Bank plc 14/05/2010 5,262.85 £500,000 £0.98 £1.5210 19/11/2015 50%
Abbey 185% if FTSE 100*
National higher; CAR if FTSE
Treasury 100 falls more than
Services 25/05/2010 4,940.68 £350,000 £0.99 £1.6255 18/11/2015 50%
Matured/Sold
FTSE 100
Initial
Level Price at Maturity
at Notional Purchase Maturity/ Date/ Return Capital
Issuer Strike Date Maturity Investment Price Sale Date Sold at Risk ("CAR")
125.1% if FTSE
100* higher;
CAR if FTSE 100
HSBC Bank Returned falls more than
plc 01/07/2010 4,805.75 £500,000 £1.00 £1.2510 06/07/2012 50%
Autocallable
The Royal 10.5% p.a.; CAR
Bank of if FTSE 100*
Scotland Returned falls more than
plc 18/03/2011 5,718.13 £50,000 £1.00 £1.1050 19/03/2012 50%
137% if FTSE
100* higher;
CAR if FTSE 100
Nomura Bank Sold at falls more than
International**28/05/2010 5,188.43 £350,000 £0.98 £1.2625 30/03/2012 50%
134% if FTSE
100* higher;
CAR if FTSE 100
Morgan Stanley Sold at falls more than
International 10/06/2010 5,132.50 £500,000 £1.00 £1.3224 31/10/2012 50%
126% if FTSE
100* higher;
Abbey National CAR if FTSE 100
Treasury Sold at falls more than
Services 03/08/2011 5,584.51 £50,000 £1.00 £1.1900 21/06/2013 50%
The total current valuation of the amount invested in Structured Products in the Ordinary Share Fund
as at 31 August 2013 was £1,727,440.
C Share Fund Structured Products Portfolio as at 31 August 2013
FTSE
100 Price as
Initial at 31
Index Notional Purchase August Maturity Return/Capital at
Issuer Strike Date Level Investment Price 2013 Date Risk ("CAR")
182% if FTSE 100*
higher; CAR if FTSE
Investec Bank 100 falls more than
plc 05/08/2011 5,246.99 £328,000 £1.00 £1.4044 10/03/2017 50%
126% if FTSE 100*
Abbey National higher; CAR if FTSE
Treasury 100 falls more than
Services 03/08/2011 5,584.51 £200,000 £1.00 £1.2289 05/02/2014 50%
Matured/Sold
FTSE
100
Initial
Index Price at Maturity
Level at Notional Purchase Maturity/ Date/ Return/Capital
Issuer Strike Date Maturity Investment Price Sale Date Sold at Risk ("CAR")
Autocallable
10.5% p.a.; CAR
The Royal Bank if FTSE 100*
of Scotland Returned falls more than
plc 18/03/2011 5,718.13 £200,000 £1.00 £1.1050 19/03/2012 50%
137% if FTSE
100* higher;
CAR if FTSE 100
Nomura Bank Returned falls more than
International 28/05/2010 5,188.43 £350,000 £1.2625 £1.3700 20/02/2013 50%
The total current valuation of the amount invested in Structured Products in the C Share Fund as at
31 August 2013 was £706,435.
* The Final Index Level is calculated using 'averaging', meaning that the average of the closing levels
of the FTSE 100 is taken on each Business Day over the last 2-6 months of the Structured Product plan term
(the length of the averaging period differs for each plan). The use of averaging to calculate the return
can reduce adverse effects of a falling market or sudden market falls shortly before maturity. Equally,
it can reduce the benefits of an increasing market or sudden market rises shortly before maturity.
** The Nomura Structured Product was sold prior to maturity with a return on initial investment of 28.8 per
cent. This was sold to the C Share Fund.
Calculus Capital Limited Investec Structured Products
29 October 2013 29 October 2013
INVESTMENT PORTFOLIO AS AT 31 AUGUST 2013
- ORDINARY SHARE FUND
% of Net Assets
Structured Products 40%
Unquoted - loan stock 28%
Unquoted - ordinary and preference
shares 32%
Unquoted - liquidity funds 0%
Net current assets 0%
100%
Sector % of Portfolio
Structured Products 40%
Unquoted - Qualifying Investments 60%
Unquoted - other non-Qualifying
Investments 0%
100%
Nature of Book Cost Valuation % of Net % of
Company Business £'000 £'000 Assets Portfolio
Structured Products
Investec Bank plc Banking 490 760 18% 18%
Abbey National Treasury
Services Banking 346 569 13% 13%
The Royal Bank of
Scotland plc Banking 264 398 9% 9%
Total Structured 1,100 1,727 40% 40%
Products
Qualifying Investments
Tollan Energy Limited Energy 360 360 8% 8%
Human Race Group Limited Leisure 300 300 7% 7%
MicroEnergy Generation
Services Limited Energy 300 300 7% 7%
AnTech Limited Oil Services 270 270 6% 6%
Lime Technology Limited Construction 307 258 6% 6%
Hampshire Cosmetics
Limited Cosmetics 250 250 6% 6%
Metropolitan Safe
Custody Limited Safe
depositary
services 190 226 5% 5%
Brigantes Energy Limited Oil and gas
exploration
and
production 125 140 3% 3%
Terrain Energy Limited Onshore oil
and gas
production 100 113 3% 3%
Secure Electrans Limited E-commerce
security 112 112 3% 3%
Venn Life Sciences Clinical
Holdings plc research 120 100 2% 2%
Dryden Human Capital Human
Group Limited resources 100 100 2% 2%
Corfe Energy Limited Oil and gas
exploration
and
production 75 96 2% 2%
Heritage House Limited Publishing
and media
services 127 - - -
Total Qualifying
Investments 2,736 2,625 60% 60%
Other non-Qualifying
Investments
Fidelity Liquidity Fund Liquidity
fund 1 1 - -
Scottish Widows Liquidity
Liquidity Fund fund 1 1 - -
Total Other
non-Qualifying
Investments 2 2 - -
Total Investments 3,838 4,354 100% 100%
Net Current Assets less
Creditors due after one
year 5 -
Net Assets 4,359 100%
INVESTMENT PORTFOLIO AS AT 31 AUGUST 2013
- C SHARE FUND
% of Net Assets
Structured Products 40%
Unquoted - loan stock 12%
Unquoted - ordinary and preference
shares 30%
Unquoted - liquidity funds 6%
Net current assets 12%
100%
Sector % of Portfolio
Structured Products 45%
Unquoted - Qualifying Investments 48%
Unquoted - other non-Qualifying
Investments 7%
100%
Nature of Book Cost Valuation % of Net % of
Company Business £'000 £'000 Assets Portfolio
Structured Products
Investec Bank plc Banking 328 461 26% 29%
Abbey National Banking 200 246 14% 16%
Treasury Services
Total Structured 528 707 40% 45%
Products
Qualifying
Investments
Human Race Group Leisure 150 150 8% 10%
Limited
Scancell Holdings Biotech 100 149 8% 10%
Plc
Metropolitan Safe Safe depository 90 106 6% 7%
Custody Limited services
Terrain Energy Onshore oil and 95 97 6% 6%
Limited gas production
Secure Electrans E-commerce 75 75 4% 5%
Limited security
Venn Life Sciences Clinical research
Holdings plc 80 66 4% 4%
Horizon Discovery Biotechnology
Limited 50 50 3% 3%
Pico's Limited Leisure 50 50 3% 3%
Heritage House Publishing and
Limited media services 64 - - -
Total Qualifying
Investments 754 743 42% 48%
Other non-Qualifying
Investments
Fidelity Liquidity Liquidity fund 102 102 6% 7%
Fund
Scottish Widows Liquidity fund 1 1 - -
Liquidity Fund
Total Other
non-Qualifying
Investments 103 103 6% 7%
Total Investments 1,385 1,553 88% 100%
Net Current Assets
less Creditors due
after one year 210 12%
Net Assets 1,763 100%
PRINCIPAL RISKS
The principal risks facing the Company are substantially unchanged since the date of the
Annual Report and Accounts for the year ended 28 February 2013 and continue to be as set out in
that report.
Risks faced by the Company include, but are not limited to, loss of approval as a venture
capital trust and other regulatory breaches, risks of making Venture Capital Investments, risks
attaching to investment in Structured Products, liquidity/marketability risk, changes in
legislation/taxation, engagement of third party advisers, C shares versus ordinary shares, market
price risk and credit risk.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm that to the best of their knowledge:
- the condensed set of financial statements has been prepared in accordance with the Statement on
Half Yearly Financial Reports issued by the UK Accounting Standards Board and gives a true and fair
view of the assets,liabilities and financial position of the Company; and
- this Half Yearly Financial Report includes a fair review of the information required by:
a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of
important events that have occurred during the first six months of the
financial year and their impact on the condensed set of financial statements;
and a description of the principal risks and uncertainties for the remaining
six months of the year; and
b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the Company during that period; and any changes in the related
party transactions described in the last Annual Report that could do so.
This Half Yearly Financial Report was approved by the Board of Directors on 29
October 2013 and the above responsibility statement was signed on its behalf
by Michael O'Higgins, Chairman.
CONDENSED INCOME STATEMENT
FOR THE PERIOD FROM 1 MARCH 2013 TO 31 AUGUST 2013
(UNAUDITED)
6 Months Ended 6 Months Ended 12 Months Ended
31 August 2013 31 August 2012 28 February 2013*
Revenue Capital Revenue Capital Revenue Capital
Return Return Total Return Return Total Return Return Total
Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Ordinary Share Fund
Investment holding
gains/(losses) - 46 46 - (159) (159) - (3) (3)
Gain on disposal of
investments - 10 10 - 230 230 - 391 391
Income 69 - 69 32 - 32 71 - 71
Investment management fee (6) (18) (24) (5) (17) (22) (11) (33) (44)
Other operating expenses (55) - (55) (54) - (54) (106) - (106)
Profit/(loss) on
ordinary activities
before taxation 8 38 46 (27) 54 27 (46) 355 309
Taxation on ordinary
activities 3 - - - - - - - - -
Profit/(loss)for the 8 38 46 (27) 54 27 (46) 355 309
period
Basic and diluted
earnings per
ordinary share 2 0.2p 0.8p 1.0p (0.6)p 1.2p 0.6p (1.0)p 7.5p 6.5p
6 Months Ended 6 Months Ended 12 Months Ended
31 August 2013 31 August 2012 28 February 2013*
Revenue Capital Revenue Capital Revenue Capital
Return Return Total Return Return Total Return Return Total
Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
C Share Fund
Investment holding
gains/(losses) - 65 65 - (10) (10) - 80 80
Gain on disposal of
investments - - - - 34 34 - 72 72
Income 11 - 11 6 - 6 13 - 13
Investment management fee (2) (7) (9) (2) (7) (9) (4) (13) (17)
Other operating expenses (22) - (22) (22) - (22) (44) - (44)
(Loss)/profit on ordinary
activities before taxation (13) 58 45 (18) 17 (1) (35) 139 104
Taxation on ordinary 3 - - - - - - - - -
activities
(Loss)/profit for the (13) 58 45 (18) 17 (1) (35) 139 104
period
Basic and diluted earnings
per C share 2 (0.7)p 3.0p 2.3p (1.0)p 0.9p (0.1)p (1.8)p 7.2p 5.4p
* These figures are audited.
The total columns of these statements represent the Income Statement of the Ordinary Share Fund and the
C Share Fund.
The supplementary revenue return and capital return columns are both prepared in accordance with the
Association of Investment Companies ("AIC") Statement of Recommended Practice ("SORP").
6 Months Ended 6 Months Ended 12 Months Ended
31 August 2013 31 August 2012 28 February 2013*
Revenue Capital Revenue Capital Revenue Capital
Return Return Total Return Return Total Return Return Total
Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Total
Investment holding
gains/(losses) - 111 111 - (169) (169) - 77 77
Gain on disposal of
investments - 10 10 - 264 264 - 463 463
Income 80 - 80 38 - 38 84 - 84
Investment management fee (8) (25) (33) (7) (24) (31) (15) (46) (61)
Other operating expenses (77) - (77) (76) - (76) (150) - (150)
(Loss)/profit on ordinary
activities before taxation (5) 96 91 (45) 71 26 (81) 494 413
Taxation on ordinary 3 - - - - - - - - -
activities
(Loss)/profit for the (5) 96 91 (45) 71 26 (81) 494 413
period
Basic and diluted earnings
per ordinary share 2 0.2p 0.8p 1.0p (0.6)p 1.2p 0.6p (1.0)p 7.5p 6.5p
Basic and diluted earnings
per C share 2 (0.7)p 3.0p 2.3p (1.0)p 0.9p (0.1)p (1.8)p 7.2p 5.4p
* These figures are audited.
The total column of this statement represents the Company's Income Statement.
The supplementary revenue return and capital return columns are both prepared in accordance with the AIC's SORP.
No operations were acquired or discontinued during the period.
All items in the above statements derive from continuing operations.
There were no recognised gains or losses other than those passing through the Income Statement.
The notes form an integral part of these Accounts.
CONDENSED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
FOR THE PERIOD FROM 1 MARCH 2013 TO 31 AUGUST 2013
(UNAUDITED)
Capital Capital
Share Special Reserve Reserve Revenue
Capital Reserve Realised Unrealised Reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
Ordinary Share Fund
For the 6 month period to 31 August 2013
1 March 2013 47 3,978 297 469 (229) 4,562
Investment holding gains - - - 46 - 46
Gain on disposal of investments - - 10 - - 10
Management fee allocated to capital - - (18) - - (18)
Revenue return on ordinary
activities after tax - - - - 8 8
Dividend paid (note 8) - (249) - - - (249)
Closing balance 47 3,729 289 515 (221) 4,359
For the 6 month period to 31 August 2012
1 March 2012 47 4,226 (61) 472 (183) 4,501
Change in accrual of IFA trail
commission - 1 - - - 1
Investment holding losses - - - (159) - (159)
Gain on disposal of investments - - 230 - - 230
Management fee allocated to capital - - (17) - - (17)
Revenue return on ordinary
activities after tax - - - - (27) (27)
Dividend paid - (249) - - - (249)
31 August 2012 47 3,978 152 313 (210) 4,280
For the 12 months ended 28 February
2013*
1 March 2012 47 4,226 (61) 472 (183) 4,501
Change in accrual of IFA trail
commission - 1 - - - 1
Investment holding losses - - - (3) - (3)
Gain on disposal of investments - - 391 - - 391
Management fee allocated to capital - - (33) - - (33)
Revenue return on ordinary - - - - (46) (46)
activities after tax
Dividend paid - (249) - - - (249)
28 February 2013 47 3,978 297 469 (229) 4,562
* These figures are audited.
The notes form an integral part of these Accounts.
Capital Capital
Share Special Reserve Reserve Revenue
Capital Reserve Realised Unrealised Reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
C Share Fund
For the 6 month period to 31 August 2013
1 March 2013 19 1,715 47 104 (80) 1,805
Investment holding gains - - - 65 - 65
Management fee allocated to capital - - (7) - - (7)
Revenue return on ordinary
activities after tax - - - - (13) (13)
Dividend paid (note 8) - (87) - - - (87)
Closing balance 19 1,628 40 169 (93) 1,763
For the 6 month period to 31 August 2012
1 March 2012 19 1,802 (12) 24 (45) 1,788
Investment holding losses - - - (10) - (10)
Gain on disposal of investments - - 34 - - 34
Management fee allocated to capital - - (7) - - (7)
Revenue return on ordinary
activities after tax - - - - (18) (18)
Dividend paid - (87) - - - (87)
31 August 2012 19 1,715 15 14 (63) 1,700
For the 12 months ended 28 February 2013
1 March 2012 19 1,802 (12) 24 (45) 1,788
Investment holding gains - - - 80 - 80
Gain on disposal of investments - - 72 - - 72
Management fee allocated to capital - - (13) - - (13)
Revenue return on ordinary - - - - (35) (35)
activities after tax
Dividend paid - (87) - - - (87)
28 February 2013 19 1,715 47 104 (80) 1,805
Capital Capital
Share Special Reserve Reserve Revenue
Capital Reserve Realised Unrealised Reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
Total
For the 6 month period to 31 August 2013
1 March 2013 66 5,693 344 573 (309) 6,367
Investment holding gains - - - 111 - 111
Gain on disposal of investments - - 10 - - 10
Management fee allocated to capital - - (25) - - (25)
Revenue return on ordinary
activities after tax - - - - (5) (5)
Dividend paid (note 8) - (336) - - - (336)
Closing balance 66 5,357 329 684 (314) 6,122
For the 6 month period to 31 August 2012
1 March 2012 66 6,028 (73) 496 (228) 6,289
Change in accrual of IFA trail
commission - 1 - - - 1
Investment holding losses - - - (169) - (169)
Gain on disposal of investments - - 264 - - 264
Management fee allocated to capital - - (24) - - (24)
Revenue return on ordinary
activities after tax - - - - (45) (45)
Dividend paid - (336) - - - (336)
31 August 2012 66 5,693 167 327 (273) 5,980
For the 12 months ended 28 February 2013*
1 March 2012 66 6,028 (73) 496 (228) 6,289
Change in accrual of IFA trail - 1 - - - 1
commission
Investment holding gains - - - 77 - 77
Gain on disposal of investments - - 463 - - 463
Management fee allocated to capital - - (46) - - (46)
Revenue return on ordinary - - - - (81) (81)
activities after tax
Dividend paid - (336) - - - (336)
28 February 2013 66 5,693 344 573 (309) 6,367
* These figures are audited.
The notes form an integral part of these Accounts.
CONDENSED BALANCE SHEET
AS AT 31 AUGUST 2013
(UNAUDITED)
31 August 2013 31 August 2012 28 February 2013*
Note £'000 £'000 £'000
Ordinary Share Fund
Fixed assets
Investments 4 4,354 3,983 4,545
Current assets
Debtors 79 155 110
Cash at bank and on deposit 14 221 4
93 376 114
Creditors: amounts falling due
within one year
Creditors (80) (67) (87)
Net current assets 13 309 27
Non-current liabilities
IFA trail commission (8) (12) (10)
Total net assets 4,359 4,280 4,562
Capital and reserves
Called-up share capital 7 47 47 47
Special reserve 3,729 3,978 3,978
Capital reserve - realised 289 152 297
Capital reserve - unrealised 515 313 469
Revenue reserve (221) (210) (229)
Total shareholders' funds 4,359 4,280 4,562
Net asset value per ordinary share
- basic
5 92.0p 90.3p 96.3p
* These figures are audited.
The notes form an integral part of these Accounts.
31 August 2013 31 August 2012 28 February 2013*
Note £'000 £'000 £'000
C Share Fund
Fixed assets
Investments 4 1,553 1,626 1,258
Current assets
Debtors 16 73 35
Cash at bank and on deposit 226 60 556
242 133 591
Creditors: amounts falling due
within one year
Creditors (26) (50) (36)
Net current assets 216 83 555
Non-current liabilities
IFA trail commission (6) (9) (8)
Total net assets 1,763 1,700 1,805
Capital and reserves
Called-up share capital 7 19 19 19
Special reserve 1,628 1,715 1,715
Capital reserve - realised 40 15 47
Capital reserve - unrealised 169 14 104
Revenue reserve (93) (63) (80)
Total shareholders' funds 1,763 1,700 1,805
Net asset value per C share - basic 5 91.3p 88.0p 93.5p
* These figures are audited.
The notes form an integral part of these Accounts.
31 August 2013 31 August 2012 28 February 2013*
Note £'000 £'000 £'000
Total
Fixed assets
Investments 4 5,907 5,609 5,803
Current assets
Debtors 95 228 145
Cash at bank and on deposit 240 281 560
335 509 705
Creditors: amounts falling due
within one year
Creditors (106) (117) (123)
Net current assets 229 392 582
Non-current liabilities
IFA trail commission (14) (21) (18)
Total net assets 6,122 5,980 6,367
Capital and reserves
Called-up share capital 7 66 66 66
Special reserve 5,357 5,693 5,693
Capital reserve - realised 329 167 344
Capital reserve - unrealised 684 327 573
Revenue reserve (314) (273) (309)
Total shareholders' funds 6,122 5,980 6,367
Net asset value per ordinary share 5 92.0p 90.3p 96.3p
- basic
Net asset value per C share - basic 5 91.3p 88.0p 93.5p
* These figures are audited.
The notes form an integral part of these Accounts.
CONDENSED CASH FLOW STATEMENT
FOR TO THE PERIOD FROM 1 MARCH 2013 TO 31 AUGUST 2013
(UNAUDITED)
6 Months 6 Months 12 Months
Ended Ended Ended
31 August 31 August 28 February
2013 2012 2013*
Note £'000 £'000 £'000
Ordinary Share Fund
Operating activities
Investment income received 65 36 56
Deposit interest received - - 2
Investment management fees (23) (22) (22)
Other cash payments (26) (95) (85)
Cash flow from operations 6 16 (81) (49)
Cash flow from investing activities
Purchase of investments (12) (600) (1,700)
Sale of investments 260 1,123 1,978
Net cash flow from investing
activities 248 523 278
Net cash flow before financing 264 442 229
Cash flow from financing activities
Expenses of share issues (5) - (4)
Net cash flow from financing
activities (5) - (4)
Equity dividend paid 8 (249) (249) (249)
Increase/(decrease) in cash at bank
and on deposit 10 193 (24)
6 Months 6 Months 12 Months
Ended Ended Ended
31 August 31 August 28 February
2013 2012 2013*
Note £'000 £'000 £'000
C Share Fund
Operating activities
Investment income received 12 3 8
Deposit interest received 1 - -
Investment management fees (17) (9) (9)
Other cash payments (4) (40) (20)
Cash flow from operations 6 (8) (46) (21)
Cash flow from investing activities
Purchase of investments (230) (642) (722)
Sale of investments - 731 1,307
Net cash flow from investing (230) 89 585
activities
Net cash flow before financing (238) 43 564
Cash flow from financing activities
Expenses of share issue (5) - (25)
Net cash flow from financing (5) - (25)
activities
Equity dividend paid 8 (87) (87) (87)
(Decrease)/increase in cash at bank
and on deposit (330) (44) 452
6 Months 6 Months 12 Months
Ended Ended Ended
31 August 31 August 28 February
2013 2012 2013*
Note £'000 £'000 £'000
Total
Operating activities
Investment income received 77 39 64
Deposit interest received 1 - 2
Investment management fees (40) (31) (31)
Other cash payments (30) (135) (105)
Cash flow from operations 6 8 (127) (70)
Cash flow from investing activities
Purchase of investments (242) (1,242) (2,422)
Sale of investments 260 1,854 3,285
Net cash flow from investing 18 612 863
activities
Net cash flow before financing 26 485 793
Cash flow from financing activities
Expenses of share issues (10) - (29)
Net cash flow from financing (10) - (29)
activities
Equity dividend paid 8 (336) (336) (336)
(Decrease)/increase in cash at bank
and on deposit (320) 149 428
* These figures are audited.
The notes form an integral part of these Accounts.
CONDENSED NOTES TO THE ACCOUNTS
1. Nature of Financial Information
Basis of accounting
These Accounts have been prepared under the historical cost convention, except for the
valuation of financial assets at fair value through profit or loss, in accordance with UK
Generally Accepted Accounting Practice ("UK GAAP"). These Accounts cover the six month period
ended 31 August 2013.
In determining the analysis of total income and expenses as between capital return and revenue
return, the Directors have followed the guidance contained in the AIC SORP, as revised in 2009,
and on the assumption that the Company maintains VCT status.
The Accounts are prepared on the basis of the accounting policies set out in the Annual Report
and Accounts for the year ended 28 February 2013.
The financial information contained in this report does not constitute full statutory accounts as
defined in Section 434 of the Companies Act 2006. The financial information for the six month
period ended 31 August 2013 and the six month period ended 31 August 2012 has not been audited or
reviewed by the Company's Auditors pursuant to the Auditing Practices Boardguidance on such reviews.
The information for the year ended 28 February 2013 has been extracted from the latest published
Annual Report and Accounts, which have been filed with the Registrar of Companies. The report of
the Auditors on those Accounts contained no qualification or statement under Section 498(2) or
(3) of the Companies Act 2006.
Going concern
After making enquiries, and having reviewed the portfolio, balance sheet and projected income and
expenditure for the next twelve months, the Directors have a reasonable expectation that the Company
has adequate resources to continue in operation for the foreseeable future. The Directors have therefore
adopted the going concern basis in preparing these Accounts.
2. Return per Share
6 Months Ended 6 Months Ended 12 Months Ended
31 August 2013 31 August 2012 28 February 2013
Revenue Capital Total Revenue Capital Total Revenue Capital Total
pence pence pence pence pence pence pence pence pence
Return per ordinary 0.2 0.8 1.0 (0.6) 1.2 0.6 (1.0) 7.5 6.5
share
Return per C share (0.7) 3.0 2.3 (1.0) 0.9 (0.1) (1.8) 7.2 5.4
Ordinary shares
Revenue return per ordinary share is based on the net revenue gain on ordinary activities after taxation
of £8,000 (31 August 2012: loss of £27,000; 28 February 2013: loss of £46,000) and on 4,738,463
ordinary shares (31 August 2012: 4,738,463; 28 February 2013: 4,738,463), being the weighted average number of
ordinary shares in issue during the period.
Capital return per ordinary share is based on the net capital gain for the period of £38,000
(31 August 2012: £54,000; 28 February 2013: £355,000) and on 4,738,463 ordinary shares
(31 August 2012: 4,738,463; 28 February 2013: 4,738,463), being the weighted average number of
ordinary shares in issue during the period.
Total return per ordinary share is based on the net gain on ordinary activities for the period of
£46,000 (31 August 2012: £27,000; 28 February 2013: £309,000) and on 4,738,463 ordinary shares
(31 August 2012: 4,738,463; 28 February 2013: 4,738,463), being the weighted average number of
ordinary shares in issue during the period.
C shares
Revenue return per C share is based on the net revenue loss on ordinary activities after taxation
of £13,000 (31 August 2012: £18,000; 28 February 2013: £35,000) and on 1,931,095 C shares
(31 August 2012: 1,931,095; 28 February 2013: 1,931,095), being the weighted average number of
C shares in issue during the period.
Capital return per C share is based on the net capital gain for the period of £58,000
(31 August 2012: £17,000; 28 February 2013: £139,000) and on 1,931,095 C shares
(31 August 2012: 1,931,095; 28 February 2013: 1,931,095), being the weighted average number of C shares
in issue during the period.
Total return per C share is based on the total gain for the period of £45,000
(31 August 2012: loss of £1,000; 28 February 2013 £104,000) and on
1,931,095 C shares (31 August 2012: 1,931,095; 28 February 2013: 1,931,095), being the weighted average
number of C shares in issue during the period.
3. Taxation on Ordinary Activities
The estimated effective tax rate at the year end is 0 per cent. for both share funds. This remains
unchanged from the prior period.
4. Investments at Fair Value through Profit or Loss
31 August 31 August 28 February
2013 2012 2013
£'000 £'000 £'000
Ordinary Share Fund
Investment portfolio summary
Investments in Structured Products 1,727 2,118 1,734
Unquoted investments 2,625 1,669 2,809
Other investments 2 196 2
4,354 3,983 4,545
C Share Fund
Investment portfolio summary
Investments in Structured Products 707 1,045 687
Unquoted investments 743 383 469
Other investments 103 198 102
Total 1,553 1,626 1,258
Investment portfolio summary
Investments in Structured Products 2,434 3,163 2,421
Unquoted investments 3,368 2,052 3,278
Other investments 105 394 104
5,907 5,609 5,803
5. Net Asset Value per Share
31 August 31 August 28 February
2013 2012 2013
pence pence pence
Net asset value per ordinary share 92.0 90.3 96.3
Net asset value per C share 91.3 88.0 93.5
The basic net asset value per ordinary share is based on net assets
(including current period revenue) of £4,359,000 (31 August 2012: £4,280,000;
28 February 2013: £4,562,000) and on 4,738,463 ordinary shares (31 August
2012: 4,738,463; 28 February 2013: 4,738,463), being the number of ordinary
shares in issue at the period end.
The basic net asset value per C share is based on net assets of
£1,763,000 (31 August 2012: £1,700,000; 28 February 2013: £1,805,000) and on
1,931,095 C shares (31 August 2012: 1,931,095; 28 February 2013: 1,931,095),
being the number of C shares in issue at the period end.
6. Reconciliation of Net Gain/(Loss) before Taxation to Cash Flow from
Operating Activities
31 August 31 August 28 February
2013 2012 2013
£'000 £'000 £'000
Ordinary Share Fund
Gain on ordinary activities before 46 27 309
taxation
Gain on investments (56) (71) (388)
Decrease/(increase) in debtors 31 (36) 9
(Decrease)/increase in creditors (5) (1) 21
Cash flow from operating activities 16 (81) (49)
C Share Fund
Gain/(loss) on ordinary activities 45 (1) 104
before taxation
Gain on investments (65) (24) (152)
Income reinvested - (1) -
Decrease/(increase) in debtors 18 (22) 16
(Decrease)/increase in creditors (6) 2 11
Cash flow from operating activities (8) (46) (21)
Total
Gain on ordinary activities before 91 26 413
taxation
Gain on investments (121) (95) (540)
Income reinvested - (1) -
Decrease/(increase) in debtors 49 (58) 25(Decrease)/increase in creditors (11) 1 32
Cash flow from operating activities 8 (127) (70)
7. Called-up Share Capital
31 August
2013
Number £'000
Ordinary shares of 1p each 4,738,463 47
C shares of 1p each 1,931,095 19
8. Dividends
For the year to 28 February 2013 the Ordinary Share Fund declared a final dividend of 5.25p
per ordinary share on 4,738,463 shares amounting to £248,769. The dividend was paid on
24 July 2013 to ordinary shareholders on the register at 31 May 2013.
For the year to 28 February 2013 the C Share Fund declared a final dividend of 4.5p per C share on
1,931,095 shares amounting to £86,899. The dividend was paid on 24 July 2013 to C shareholders on
the register at 31 May 2013.
9. Transactions with Related Parties
John Glencross is considered to be a related party due to his position as Chief Executive and a
director of Calculus Capital, one of the Company's Investment Managers. He does not receive any
remuneration from the Company. He is a director of Terrain Energy Limited and Lime Technology
Limited, and stepped down from the board of Human Race Group Limited during the period, companies
in which the Company has invested.
10. Transactions with Investment Managers
Investec Structured Products is a related party in respect of its appointment as an Investment
Manager to the Company and is entitled to a performance incentive fee. Investec Structured
Products will receive an arrangement fee of 0.75 per cent. of the amount invested in each
Structured Product. This arrangement fee shall be paid to Investec Structured Products by
the issuer of the relevant Structured Product. No arrangement fee will be paid to Investec
Structured Products in respect of any decision to invest in Investec-issued Structured Products.
Investec Structured Products has agreed not to earn an annual management fee from the Company.
As at 31 August 2013, £nil (31 August 2012: £nil; 28 February 2013: £nil) was payable to
Investec Structured Products in relation to the initial fee of 5 per cent. of the gross funds
raised pursuant to the original ordinary share offer. £nil (31 August 2012: £22,000;
28 February 2013: £nil) was payable to Investec Structured Products in relation to the initial
fee of 5 per cent. of the gross funds raised pursuant to the C share offer.
In addition, £25,000 (31 August 2012: £121,000; 28 February 2013: £62,000) was owed to the
Ordinary Share Fund by Investec Structured Products as claw back of costs in excess of the
agreed expenses cap of 3 per cent. £11,000 (31 August 2012: £68,000; 28 February 2013: £28,000)
was owed to the C Share Fund.
Calculus Capital is regarded as a related party in respect of its appointment as an Investment
Manager to the Company. For the period ended 31 August 2013, fees of £33,000
(31 August 2012: £31,000; 28 February 2013: £61,000) were payable to Calculus Capital.
As at 31 August 2013, fees of £39,000 (31 August 2012: £15,000; 28 February 2013: £46,000) were
outstanding(£34,000 by the Ordinary Share Fund and £5,000 by the C Share Fund). Calculus
Capital is also entitled to a performance incentive fee.
Calculus Capital receives a fee from Terrain, Lime Technology, MicroEnergy, Human Race,
Metropolitan, Hampshire and Tollan for the provision of a director, as well as an annual
monitoring fee which also covers the provision of certain administrative support services.
In the period ended 31 August 2013, the amount paid to Calculus Capital which was attributable
to the investment made by the Company was £1,648 (31 August 2012: £1,441; 28 February 2013: £3,951)
from Terrain; £1,356 (31 August 2012: £1,228; 28 February 2013: £5,695) from Lime; £1,003
(31 August 2012: £1,286; 28 February 2013: £2,728) from MicroEnergy; £1,705
(31 August 2012: £514; 28 February 2013: £2,662) from Human Race; £482 (31 August 2012: £1,182;
28 February 2013: £2,899) from Metropolitan; £1,219 (31 August 2012: £nil; 28 February 2013: £112)
from Hampshire; and £1,406 (31 August 2012: £nil; 28 February 2013: £nil) from Tollan (all excluding VAT).
In the period ended 31 August 2013, Calculus Capital paid to the Company arrangement fees received
from Secure Electrans in 2012. The net amount paid to the Company as a result of the Company's
investment in Secure Electrans Limited was £1,890 (31 August 2012: £nil; 28 February 2013: £nil).
Calculus Capital also receives an annual fee from Dryden Human Capital, Corfe and Brigantes for
the provision of a director. In the period ended 31 August 2013, the amount paid to Calculus
Capital which was attributable to the investment made by the Company was £901 (31 August 2012:
£nil; 28 February 2013: £nil) from Dryden; £364 (31 August 2012: £nil; 28 February 2013: £378)
from Brigantes; and £216 (31 August 2012: £nil; 28 February 2013: £223) from Corfe (all
excluding VAT).
In the period ended 31 August 2013, Calculus Capital received arrangement fees as a result of the
Company's new investments. Calculus Capital received an arrangement fee of £1,500 (31 August 2012:
£nil; 28 February 2013: £nil) as a result of the Company's investment in Pico's Limited
(trading as Benito's Hat), £150 (31 August 2012: £nil; 28 February 2013 £nil)for the investment in
Terrain Energy Limited and £2,000 (31 August 2012: £nil; 28 February 2013: £nil) for the investment
in Scancell plc. Kate Cornish-Bowden is a non-executive director of Scancell Holdings plc, having
been nominated by Calculus Capital following the Company's investment. Calculus Capital also
received £94 from Benito's Hat for the provision of a director (31 August 2012: £nil;
28 February 2013: £nil).
COMPANY INFORMATION
Directors Fund Administrator and
Michael O'Higgins (Chairman) Company Secretary
Kate Cornish-Bowden Capita Sinclair Henderson
John Glencross (Trading as Capita Asset
Steven Meeks Services)
Beaufort House
51 New North Road
Exeter EX4 4EP
Registered Office
Beaufort House Auditors
51 New North Road Grant Thornton UK LLP
Exeter EX4 4EP 30 Finsbury Square
Telephone: 01392 477 500 London EC2P 2YU
Company Number Sponsor and Broker
07142153 Nplus1 Singer Advisory LLP
One Hanover Street
Structured Products Investment London W1S 1YZ
Manager
Investec Structured Products Registrars
2 Gresham Street Capita Asset Services
London EC2V 7QP The Registry
Telephone: 020 7597 4000 34 Beckenham Road
Website: Beckenham
www.investecstructuredproducts.com Kent BR3 4TU
Telephone: 0871 644 0300
Venture Capital Investments Manager
Calculus Capital Limited
104 Park Street (Calls cost 10p per minute plus
London W1K 6NF network extras. Lines are open
Monday to Friday 8.30 am to 5.30 pm).
Telephone: 020 7493 4940
Website: www.calculuscapital.com
A copy of the Investec Structured Products Calculus VCT plc Half Yearly Report for the six months
ended 31 August 2013 can be found on the following websites: www.calculuscapital.com and
www.investecstructuredproducts.com.
For further information, please contact:
Investment Manager to the Structured Products Portfolio
Investec Structured Products
Gary Dale
Telephone: 020 7597 4065
Investment Manager to the Venture Capital Portfolio
Calculus Capital Limited
Susan McDonald
Telephone: 020 7493 4940
National Storage Mechanism
A copy of the 2013 Half Yearly Report will be submitted shortly to the
National Storage Mechanism ("NSM") and will be available for inspection at the
NSM, which is situated at: www.morningstar.co.uk/uk/NSM.
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on this announcement (or any other website) are
incorporated into, or form part of, this announcement.
END