TIDMFAME
FRAMLINGTON AIM VCT PLC
Interim results for the six months ended 31 March 2009
Overview of results
31 March 31 March 30 Sept
2009 2008 2008
Net asset values ("NAV") at bid
valuation
NAV of the Company GBP8,011,000 GBP15,842,000 GBP11,882,000
NAV per ordinary share 33.96p 64.41p 50.02p
Market prices (mid market)
Ordinary shares 28.50p 51.50p 47.50p
NAV per ordinary share 33.96p 64.41p 50.02p
Cumulative dividends paid since 20.00p 13.00p 13.00p
launch
Adjusted NAV 53.96p 77.41p 63.02p
VCT status % % %
VCT value of qualifying investments 84.1 84.4 82.3
VCT value of non-qualifying 13.8 14.1 14.7
investments
VCT value of non-qualifying cash 2.1 1.5 3.0
balances
Total VCT value 100.0 100.0 100.0
The VCT values of investments are based on the original book cost of the
investment adjusted to reflect the price of subsequent purchases of the
investment.
Chairman's statement
The last six months have been difficult for international stockmarkets, but no
more so than within our domestic AIM market.
During the three months from 30 September to 31 December, the FTSE AIM All
Share Index fell by over 36%. Over the same period, the Company's net asset
value fell 21.6%.
Investor interest hid within companies that had longer-term track records,
where they had more belief in a recovery rather than looking at new younger
entrants to the market. This situation was fully recognised by corporate
issuing houses and resulted in a lack of new listings.
A number of secondary offerings appeared, however, because of the effect of the
banking crisis leading to an inability for smaller companies to raise finance
via the traditional overdraft route. Some of these offerings arose where
management, despite the price dilution, tried to re-bolster their balance
sheets. Many of these failed to raise any finance and the companies were left
having to cut costs aggressively to survive.
In the second quarter of our financial year, there was a minor recovery within
the market and our net asset value, with both rising 4.6% (after adding back
the dividend of 7 pence per share paid in February). The Company's net asset
value as at 31 March 2009 stood at 33.96 pence per share on a bid basis. Very
little has changed economically or fundamentally. Many smaller companies look
cheap in historic values, but few investors are interested. Very recently there
has been a substantial squeeze in the highly leveraged stocks, pushing their
prices up substantially higher. The majority of this has been within the top
end of the smaller company market place, leaving the AIM market lagging behind.
Liquidity remains very tight and it will have to improve radically for a
sustained market rally to develop. In the meantime, we continue to look at the
secondary funding offerings and remain mindful not to chase good money after
bad.
With effect from 1 June 2009, AXA Investment Managers (UK) Limited will replace
AXA Framlington Investment Management Limited as the Company's Investment
Manager and Company Secretary. This change is being made as a result of the
transfer of the business of AXA Framlington Investment Management Limited to
another company within the AXA Investment Managers group as part of a
simplification of the corporate structure and has no effect on the way in which
the Company is managed or administered.
Tim How
Chairman
29 May 2009
Directors' responsibility statement
The Disclosure and Transparency Rules ("DTR") of the UK Listing Authority
require the Directors to confirm their responsibilities in relation to the
preparation and publication of the Interim Management Report and Financial
Statements.
The Directors confirm that, to the best of their knowledge:
* the condensed set of financial statements for the six months ended 31 March
2009 has been prepared in accordance with applicable accounting standards
and with the Statement of Recommended Practice "Financial Statements of
Investment Trust Companies" ("the SORP") revised in December 2005, and in
accordance with the pronouncements on interim reporting issued by the
Accounting Standards Board;
* the Interim Management Report includes a fair review of the information
required by DTR 4.2.7R in relation to the indication of important events
during the first six months, and of the principal risks and uncertainties
facing the Company during the second six months, of the year ending 30
September 2009; and
* the Interim Management Report includes adequate disclosure of the
information required by DTR 4.2.8R in relation to related party
transactions and any changes therein.
The half yearly financial report was approved by the Board on 29 May 2009 and
the above responsibility statement was signed on its behalf by the Chairman,
Tim How.
Income Statement
6 months to 31 March 2009
(unaudited)
Revenue Capital Total
return return
GBP000s GBP000s GBP000s
Realised losses on investments - (360) (360)
Unrealised losses on investments - (1,796) (1,796)
Income 116 - 116
Investment management fee (22) (67) (89)
Refund of VAT 11 35 46
Other expenses (78) - (78)
Net return/(loss) before finance costs 27 (2,188) (2,161)
and taxation
Interest payable and similar charges - - -
Return/(loss) on ordinary activities 27 (2,188) (2,161)
before taxation
Tax on ordinary activities - - -
Return/(loss) on ordinary activities 27 (2,188) (2,161)
after taxation
Return/(loss) per ordinary share:
Basic and diluted 0.11p (9.21)p (9.10)p
6 months to 31 March 2008
(unaudited)
Revenue Capital Total
return return
GBP000s GBP000s GBP000s
Realised gains on investments - 1,190 1,190
Unrealised losses on investments - (7,111) (7,111)
Income 132 - 132
Investment management fee (56) (169) (225)
Other expenses (91) - (91)
Net loss before finance costs and (15) (6,090) (6,105)
taxation
Interest payable and similar charges - - -
Loss on ordinary activities before (15) (6,090) (6,105)
taxation
Tax on ordinary activities - - -
Loss on ordinary activities after (15) (6,090) (6,105)
taxation
Loss per ordinary share:
Basic and diluted (0.06)p (24.50)p (24.56)p
Year to 30 September 2008
(audited)
Revenue Capital Total
return return
GBP000s GBP000s GBP000s
Realised gains on investments - 1,672 1,672
Unrealised losses on investments - (11,334) (11,334)
Income 323 - 323
Investment management fee (97) (290) (387)
Refund of VAT 58 172 230
Other expenses (177) - (177)
Net return/(loss) before finance costs 107 (9,780) (9,673)
and taxation
Interest payable and similar charges - - -
Return/(loss) on ordinary activities 107 (9,780) (9,673)
before taxation
Tax on ordinary activities (1) - (1)
Return/(loss) on ordinary activities 106 (9,780) (9,674)
after taxation
Return/(loss) per ordinary share:
Basic and diluted 0.43p (39.94) (39.51)p
The total column of this statement represents the Company's Income Statement
prepared in accordance with UK GAAP. The revenue and capital columns are
supplementary to this and are published under guidance from the Association of
Investment Companies.
All revenue and capital items in the above statement derive from continue
operations. No operations were acquired or discounted in the period.
Reconciliation of Movement in Shareholders' Funds
Distributable Capital Capital Capital
Share Share special redemption reserve reserve Revenue
Capital Premium reserve reserve realised unrealised Reserve Total
GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
Six months to
31 March 2009
(unaudited)
At 30 2,376 117 18,849 135 2,019 (11,758) 144 11,882
September
2008
Share (17) - (47) 17 - - - (47)
buybacks
Movements on - - - - - (1,796) - (1,796)
revaluation
of
investments
Loss on - - - - (360) - - (360)
realisation
of
investments
Investment - - - - (32) - - (32)
management
fee charged
to capital
Transfer from - - (448) - 448 - - -
distributable
special
reserve
Dividends - - - - (1,568) - (95) (1,663)
paid in
respect of
the year
ended 30
September
2008
Revenue - - - - - - 27 27
return for
the period
At 31 March 2,359 117 18,354 152 507 (13,554) 76 8,011
2009
Six months to
31 March 2008
(unaudited)
At 30 2,493 117 19,885 18 1,707 (424) 78 23,874
September
2007
Share (33) - (182) 33 - - - (182)
buybacks
Movements on - - - - - (7,111) - (7,111)
revaluation
of
investments
Profit on - - - - 1,190 - - 1,190
realisation
of
investments
Investment - - - - (169) - - (169)
management
fee charged
to capital
Transfer from - - (169) - 169 - - -
distributable
special
reserve
Dividends - - - - (1,705) - (40) (1,745)
paid in
respect of
the year
ended 30
September
2007
Revenue loss - - - - - - (15) (15)
for the
period
At 31 March 2,460 117 19,534 51 1,192 (7,535) 23 15,842
2008
For the year end
30 September 2008
(audited)
At 30 2,493 117 19,885 18 1,707 (424) 78 23,874
September
2007
Movements on - - - - - (11,334) - (11,334)
revaluation
of
investments
Profit on - - - - 1,672 - - 1,672
realisation
of
investments
Share (117) (573) 117 - - - (573)
buybacks
Investment - - - - (118) - - (118)
management
fee charged
to capital
Transfer from - - (463) - 463 - - -
distributable
special
reserve
Dividends - - - - (1,705) - (40) (1,745)
paid in
respect of
the year
ended 30
September
2008
Revenue - - - - - - 106 106
return for
the year
At 30 2,376 117 18,849 135 2,019 (11,758) 144 11,882
September
2008
Summarised balance sheet
31 March 31 March 30 Sept
2009 2008 2008
(unaudited) (unaudited) (audited)
GBP000s GBP000s GBP000s
Qualifying investments 6,198 13,095 8,693
Non-qualifying investments 1,351 2,381 1,485
Current assets 567 450 1,780
Creditors: amounts falling due within (105) (84) (76)
one year
8,011 15,842 11,882
Called up share capital 2,359 2,460 2,376
Capital redemption reserve 152 51 135
Share premium account 117 117 117
Distributable special reserve 18,354 19,534 18,849
Capital reserves (13,047) (6,343) (9,739)
Revenue reserves 76 23 144
Equity shareholders' funds 8,011 15,842 11,882
Net asset value per share 33.96 64.41p 50.02p
Cash Flow Statement
Six months Six months
to to Year to
31 March 31 March 30 September
2009 2008 2008
(unaudited) (unaudited) (audited)
GBP000s GBP000s GBP000s
Net cash inflow/(outflow) from 53 (38) 39
operating activities
Net cash outflow from servicing of - - -
finance
Net cash inflow from investment 609 1,531 2,958
activities
Equity dividends paid (1,663) (1,745) (1,745)
Net cash outflow from financing - (181) (573)
(Decrease)/increase in cash (1,001) (433) 679
Reconciliation of operating profit
to net cash inflow/(outflow) from
operating activities
Net (loss)/return before finance (2,161) (6,105) (9,673)
costs and taxation
Less capital return for the period 2,188 6,090 9,780
Net revenue before finance costs and 27 (15) 107
taxation
Decrease/(increase) in debtors 40 (12) (58)
Decrease in creditors (14) (11) (10)
Net cash inflow/(outflow) from 53 (38) 39
operating activities
Reconciliation of net cashflow to
net funds
(Decrease)/increase in cash (1,001) (433) 679
Net funds at the beginning of the 1,496 817 817
period
Net funds at the end of the period 495 384 1,496
Notes
1 Accounting policies
The financial information has been prepared on the basis of the accounting
policies set out in the Company's financial statements for the year ended 30
September 2008.
2 Investment management fee
Six months to Six months to Year to
31 March 2009 31 March 2008 30 September 2008
(unaudited) (unaudited) (audited)
GBP000s GBP000s GBP000s
Investment management fee 89 191 332
VAT thereon - 34 55
Refund of VAT (46) - (230)
Total investment management fee 43 225 157
Amount charged to revenue 11 56 39
Amount charged to capital 32 169 118
43 225 157
3. Return/(loss) per ordinary share
Six months to Six months to Year to
31 March 2009 31 March 2008 30 September
2008
(unaudited) (unaudited) (audited)
The return per share is based on
the following figures:
Revenue return/(loss) GBP27,000 GBP(15,000) GBP106,000
Capital loss GBP(2,188,000) GBP(6,090,000) GBP(9,780,000)
Total loss GBP(2,161,000) GBP(6,105,000) GBP(9,674,000)
Weighted average number of 23,754,104 24,861,190 24,486,730
ordinary shares in issue during
the period
Revenue return/(loss)per ordinary 0.11p (0.06)p 0.43p
share
Capital loss per ordinary share (9.21)p (24.50)p (39.94)p
Total loss per ordinary share (9.10)p (24.56)p (39.51)p
4 Called up share capital
During the half year ended 31 March 2009, the Company bought back 168,000
shares for a total consideration of GBP47,000; (half year ended 31 March 2008:
335,011 shares for a total consideration of GBP182,000; year ended 30 September
2008: 1,175,379 shares for a total consideration of GBP573,000).
The number of ordinary shares in issue at 31 March 2009 was 23,587,028.
5. Net asset value per share
The net asset value per share and the net assets attributable to the ordinary
shares at the period end calculated in accordance with the Articles of
Association were as follows:
As at As at As at
31 March 2009 31 March 2008 30 September
2008
(unaudited) (unaudited) (audited)
GBP000s GBP000s GBP000s
Net assets attributable to GBP8,011,000 GBP15,842,000 GBP11,882,000
ordinary shareholders
Ordinary shares in issue 23,587,028 24,595,396 23,755,028
Net asset value per share 33.96p 64.41p 50.02p
6. Financial information
The Company's financial information for the six months to 31 March 2009 and the
comparative figures for the corresponding period in the previous financial year
are unaudited. The financial information for the year to 30 September 2008 are
extracted from the latest published accounts and do not constitute statutory
accounts for that year. Those accounts carry an unqualified report from the
auditors and have been filed with the Registrar of Companies.
The half-yearly report has not been audited or reviewed by auditors pursuant to
the Auditing Practices Board guidance on Review of Interim Financial
Information.
7. Related Party Transactions
During the first six months of the current financial year, no transactions with
related parties have taken place which have materially affected the financial
position or the performance of the Company during the period.
Investment portfolio summary as at 31 March 2009
Qualifying investments Holding Book Market % of
cost value net
assets
by
value
GBP GBP %
FDM Group Ord 1p 640,000 499,200 627,200 7.83
Craneware Ord 1p 175,000 224,000 381,500 4.76
Brooks Macdonald Group Ord 1p 107,142 149,999 307,497 3.84
Cohort Ord 10p 190,700 241,619 303,213 3.79
Corero 8% Cnv Uns Red Ln 250,000 250,000 247,500 3.09
Stk 2011
Mount Engineering Ord 1p 375,000 262,500 247,500 3.09
System C Healthcare Ord 1p 648,149 350,000 239,815 2.99
Concateno Ord 10p 250,640 213,044 234,975 2.93
IS Pharma Ord 70p 371,428 260,000 234,000 2.92
AT Communications Ord 1p 1,242,857 522,000 167,786 2.09
Group
Energetix Group Ord 5p 600,000 240,000 162,000 2.02
Neutrahealth Ord 10p 5,378,726 552,766 161,362 2.01
Noble Investments (UK) Ord 1p 200,000 116,000 158,000 1.97
Vertu Motors Ord 10p 833,333 500,000 150,000 1.87
Plethora Solutions Ord 1p 478,535 674,999 148,346 1.85
Holdings
Melorio Ord 10p 150,000 150,000 141,000 1.76
Getech Group Ord 0.25p 925,000 360,750 138,750 1.73
Interquest Group Ord 1p 363,636 200,000 127,273 1.59
Kiotech International Ord 1p 8,333,334 250,000 125,000 1.56
Sectorguard Ord 0.5p 10,000,000 350,000 125,000 1.56
Maxima Holdings Ord 1p 290,000 478,500 124,700 1.56
Brulines Group Ord 10p 131,667 161,950 121,134 1.51
Evolutec Group Ord 10p 368,025 533,985 88,326 1.10
Tristel Ord 1p 229,729 85,000 85,000 1.06
Sanderson Group Ord 10p 700,000 350,000 70,000 0.87
Hexagon Human Capital Ord 1p 180,303 297,500 68,515 0.86
Innovision Research & Ord 1p 337,037 151,667 67,407 0.84
Technology
Claimar Care Group Ord 10p 875,000 671,250 65,625 0.82
Pressure Technologies Ord 5p 36,000 54,000 63,000 0.79
Plastics Capital Ord 1p 150,000 150,000 55,500 0.69
Invocas Group Ord 0.25p 137,150 152,236 52,117 0.65
Imagelinx Ord 0.1p 4,000,000 200,000 50,000 0.62
Enfis Group Ord 10p 140,666 196,932 49,233 0.62
Corero Ord 10p 2,173,913 250,000 48,913 0.61
Managed Support Ord 1p 500,000 254,217 47,500 0.59
Services
Dillistone Group Ord 5p 30,000 37,500 42,000 0.52
PHSC Ord 10p 229,110 121,428 41,240 0.52
Fulcrum Pharma Ord 1p 2,352,941 100,000 41,176 0.51
Corac Group Ord 10p 225,000 94,500 40,500 0.51
Essentially Group Ord 0.1p 1,978,494 300,000 39,570 0.49
Angle Ord 10p 506,308 399,983 35,442 0.44
Byotrol Ord 0.25p 472,500 283,500 35,437 0.44
Ant Ord 5p 145,000 182,700 33,350 0.42
Axeon Holdings Ord 5p 862,068 499,999 32,327 0.40
Tangent Communications Ord 1p 1,153,846 150,000 31,731 0.40
Relax Group Ord 10p 55,555 99,999 31,111 0.39
Western & Oriental Ord 0.5p 1,000,000 100,000 30,000 0.38
Sovereign Oilfield Ord 1p 144,000 201,600 28,800 0.36
Group
Netservices Ord 0.25p 950,700 674,997 28,521 0.36
EG Solutions Ord 1p 235,294 200,000 28,235 0.35
Travelzest Ord 2p 79,365 100,000 27,778 0.35
Secora Ord 5p 450,000 315,000 27,000 0.34
Bglobal Ord 1p 213,333 106,667 24,533 0.31
Belgravium Ord 5p 1,250,000 175,000 21,875 0.27
Technologies
Datong Ord 0.5p 117,187 149,999 21,094 0.26
Cyan Holdings Ord 0.2p 1,500,000 150,000 15,000 0.19
Optimisa Ord 25p 64,998 140,829 13,000 0.16
Sport Media Group Ord 0.25p 333,333 250,000 10,000 0.13
Biocare Solutions Ord 1p 1,250,000 250,000 9,375 0.12
@UK Ord 1p 416,666 250,000 6,250 0.08
Alterian Ord 25p 10,568 22,400 5,918 0.07
Wyatt Group Ord 1p 444,444 80,000 4,444 0.06
Media Square Ord 10p 100,000 250,000 4,250 0.05
Invu Ord 1p 133,333 40,000 3,667 0.05
Motionposter Ord 1p 4,000 100,000 40 -
Bioganix Ord 10p 210,000 253,266 - -
Dietbrown Ord 3.8p 526,325 500,009 - -
Dipford Group Ord 5p 500,000 300,000 - -
Fishworks Ord 1p 750,000 247,500 - -
Hat Pin Ord 2.5p 234,375 168,750 - -
Servocell Group Ord 1p 260,425 140,630 - -
Total qualifying 17,790,370 6,198,351 77.37
investments
Non-qualifying 3,312,149 1,350,440 16.86
investments
Total fixed asset 21,102,519 7,548,791 94.23
investments
Investor information
Structure of the Company
The Company has one class of share capital, ordinary shares of 10p each. The
Company now has 23,587,028 ordinary shares in issue. VCTs are long term
investments, with the full benefit of their tax reliefs being available to
qualifying subscribers only where they hold their investment for three years.
The initial duration of the Company has been set at seven years. The board is
required, under the Articles, to put a proposal for the continuation of the
Company as a venture capital trust to Shareholders at the Company's annual
general meeting in 2012 and thereafter at three year intervals.
Results
Half-year results announced May
Full-year results announced December
Report and Accounts posted to shareholders January
Annual General Meeting held February
Dividend policy
Venture capital trusts can distribute realised capital profits from the sale of
underlying investments and income by way of dividends, which are free of income
tax to qualifying subscribers and qualifying purchasers. It is intended that
the Company will take advantage of this by distributing some or all of its
realised profits from time to time.
Shareholders who wish to have dividends paid directly into a bank account,
rather than by cheque to their registered address, may complete a mandate form
for this purpose, which may be obtained from the Registrars.
Market information
The Company's shares are listed on the London Stock Exchange. The market price
is shown daily in the Financial Times under the Investment Companies section.
The net asset value per ordinary share is calculated weekly and published on
the London Stock Exchange Company Announcements Service.
Shareholder enquiries
Capita Registrars are the Company's registrars and maintain the share register.
In the event of queries regarding their holdings of shares, lost certificates,
dividend payments, registered details, etc, shareholders should contact them on
0871 664 0300 (calls cost 10p per minute plus network extras) or +44 (0)20 8639
3399 (from overseas). Changes of name or address must be notified to the
registrars in writing.
Any general enquiries about the Company should be directed to the Company
Secretary, at the Company's registered office.
Further information on the Company can be found on the AXA Framlington website
at www.axaframlington.com. The website contains information on all the AXA
Framlington investment trusts, including up-to-date performance data, and AXA
Framlington's Guide to VCTs.
Copies of the 2008 annual accounts are available from the Company's registered
office - 155 Bishopsgate, London EC2M 3XJ.
END
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