TIDMFAME
FRAMLINGTON AIM VCT PLC
Interim results for the six months ended 31 March 2011
Overview of results
31 March 31 March 30 Sept 2010
2011 2010
Net asset values ("NAV") at bid
valuation
NAV of the
Company GBP10,158,000 GBP9,640,000 GBP10,015,000
NAV per ordinary share 45.66p 41.86p 44.22p
Market prices (mid market)
Ordinary shares 33.00p 35.00p 33.50p
NAV per ordinary share 45.66p 41.86p 44.22p
Cumulative dividends paid since launch 28.50p 25.00p 25.00p
Adjusted NAV 74.16p 66.86p 69.22p
VCT status % % %
VCT value of qualifying investments 90 84 84
VCT value of non-qualifying investments 10 15 15
VCT value of non-qualifying cash
balances - 1 1
Total VCT value 100 100 100
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 first half of the Company's year has seen continued economic recovery in
most parts of the world. At the beginning of the period the US Federal Reserve
embarked on a second phase of Quantitative Easing to try and ensure that the US
economy banished the threat of deflation. This was the signal for investors to
embrace more risk.
Equities rallied as did most commodities, both soft and hard. The rise in oil
and mineral prices bolstered commodity shares, which have a large exposure in
the AIM markets. The other side of the coin was margin pressure for those
companies that did not have sufficient pricing power to pass these increases
on.
The manufacturing recovery around the world continued and began to spread to
the capital investment sector as confidence improved sufficiently for companies
to begin to increase capital spending. UK manufacturers are in the main in a
good competitive situation due to sterling's depreciation over the past few
years.
It was not all plain sailing for the world economy with the sovereign debt
crisis in the Eurozone rumbling on with Ireland requiring a bail-out in the
back end of the year and Portugal succumbing at the end of the period. In
addition, unrest broke out in the Middle East as the populace rose up against
several non democratically elected regimes. This unrest had inevitable
consequences on the oil market where prices rose sharply. These increases act
as the equivalent to a tax on consumers worldwide. Finally, the tragic
earthquake and tsunami in Japan seriously affected their economy.
Within the UK, the economy stalled as the impending spending cuts and tax rises
impacted on consumer sentiment. In addition, a very cold start to the winter
caused the economy to freeze up.
The NAV of the company made modest progress, rising by 3.2%. When the dividend
of 3.50 pence is added the overall return for the period was 11.1%.
As always within a portfolio of small cap and in many cases early stage
companies, there was a big diversity in performance. Of particular note, AFC
Energy rose by 213% as they made good progress in commercialising their
alkaline fuel cell. They are working with blue chip companies, such as
AkzoNobel, Centrica, Air Products and the John Lewis Group. Plastics Capital
more than doubled as their business recovered from the recession. Noble
Investments benefited from demand for alternative assets as investors sought
out rare coins. Profitability improved markedly and the share price reacted,
rising by 36%. The largest holding - Brooks Macdonald Group - continued to
perform well, rising by just over 25%.
Takeover activity continued with System C Healthcare agreeing to be acquired by
a US competitor. The shares rose by 86% during the period. The proceeds from
previously announced takeovers of Mount Engineering and Neutrahealth were
received. . In addition, our holdings in Chime Communications, which arose
from the takeover of Essentially Group, and in Allied Domecq bonds were sold.
Disappointing performers included Energetix, whose shares nearly halved, as
they raised additional capital to continue the commercialisation of their
products which appear to be achieving acceptance with follow-on orders being
received from National Grid. Brulines shares fell as declining tenanted pub
numbers reduced demand for their core beer monitoring products. They have been
diversifying into petrol forecourt monitoring and vending telemetry.
New qualifying purchases investments were made in 3D diagnostics, Brady, Manroy
and Wheelsure.
Rising interest rates in emerging markets and Europe are a headwind for
markets. Ongoing earnings growth should be supportive, which should encourage
management to expand using generally strong balance sheets to make
acquisitions. The very small end of the market offers some compelling value
but individual company risk remains high.
Since the year end, the NAV has fallen 1.5% to 44.95 pence at 20 May 2011.
Shareholders may have noticed that the spread of the share price has reduced in
recent months which we believe may make the shares more attractive for certain
shareholders who might be interested in buying additional shares. Secondary
buyers enjoy the same tax-free dividend benefits as the original subscribers.
Tim How
Chairman
27 May 2011
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
2011 has been prepared in accordance with applicable accounting standards and
with the Statement of Recommended Practice "Financial Statements of Investment
Trust Companies and Venture Capital Trusts" ("the SORP") issued in January
2009, 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 2011; 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 27 May 2011 and
the above responsibility statement was signed on its behalf by the Chairman,
Tim How.
Principal risks and uncertainties
The directors believe that the principal risk faced by the Company is the loss
of approval as a venture capital trust arising from a breach of the
requirements of Section 274 of the Income Tax Act 2007. This would mean that
shareholders might lose the benefit of tax-free dividends and capital gains
and that the Company would lose its exemption from tax on any capital gains.
The Manager reports to the board at each meeting on the Company's compliance
with Section 274 and the board is advised on VCT issues by
PricewaterhouseCoopers. The board considers that the most important key risk
indicators for the Company are its compliance with the requirements of Section
274.
Other significant risks include the risk of a serious or prolonged fall in the
stock market which would affect the Company's performance and value; consistent
underperformance by the Manager; and the Company's shares failing to achieve a
rating which reflects performance. The board seeks to mitigate these risks by
monitoring the Manager's performance at each board meeting and discussing
appropriate action where considered necessary.
Income Statement
Six months to 31 March 2011 (unaudited)
Revenue Capital Total
return return
GBP000s GBP000s GBP000s
Realised losses on investments - (1,877) (1,877)
Unrealised gains on investments - 3,038 3,038
Income 70 - 70
Investment management fee (26) (78) (104)
Other expenses (79) - (79)
Net (loss)/ return before finance
costs and taxation (35) 1,083 1,048
Interest payable and similar charges - - -
(Loss)/ return on ordinary activities before
taxation (35) 1,083 1,048
Tax on ordinary activities - - -
(Loss)/ return on ordinary
activities after taxation (35) 1,083 1,048
(Loss)/ return per ordinary share
Basic and diluted (0.16)p 4.86p 4.70p
Six months to 31 March 2010 (unaudited)
Revenue Capital Total
return return
GBP000s GBP000s GBP000s
Realised gains on investments - 275 275
Unrealised losses on investments - (131) (131)
Income 102 - 102
Investment management fee (23) (70) (93)
Other expenses (81) - (81)
Net (loss)/ return before finance costs
and taxation (2) 74 72
Interest payable and similar charges - - -
(Loss)/ return on ordinary activities before
taxation (2) 74 72
Tax on ordinary activities - - -
(Loss)/ return on ordinary activities
after taxation (2) 74 72
(Loss)/ return per ordinary share
Basic and diluted (0.01)p 0.32p 0.31p
Year to 30 September 2010 (audited)
Revenue Capital Total
return return
GBP000s GBP000s GBP000s
Realised gains on investments - 369 369
Unrealised gains on investments - 358 358
Income 185 - 185
Investment management fee (47) (141) (188)
Other expenses (159) - (159)
Net (loss)/ return before finance costs
and taxation (21) 586 565
Interest payable and similar charges - - -
(Loss)/ return on ordinary activities before
taxation (21) 586 565
Tax on ordinary activities - - -
(Loss)/ return on ordinary activities
after taxation (21) 586 565
(Loss)/ return per ordinary share
Basic and diluted (0.09)p 2.55p 2.46p
The total column of this statement represents the Company's profit and loss
account 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
Share Share Distributable Capital Capital Capital Revenue Total
Capital Premium Special Redemp-tion reserve reserve reserve
Account Reserve Reserve realised unrealised
GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
Six months to 31 March 2011 (unaudited)
At 30
September
2010 2,265 117 17,069 246 280 (9,998) 36 10,015
Share
buybacks (40) - (126) 40 - - - (126)
Movement on
revaluation
of
investments - - - - - 3,038 - 3,038
Loss on
realisation
of
investments - - - - (1,877) - - (1,877)
Investment
management
fee charged
to capital - - - - (78) - - (78)
Transfer from
distributable
special
reserve - - (2,205) - 2,205 - - -
Dividends
paid in
respect of
the year
ended 30
September
2010 - - (249) - (530) - - (779)
Revenue loss
for the
period - - - - - - (35) (35)
At 31 March
2011 2,225 117 14,489 286 - (6,960) 1 10,158
Six months to 31 March 2010 (unaudited)
At 30
September
2009 2,321 117 17,823 190 563 (10,356) 126 10,784
Share
buybacks (18) - (61) 18 - - - (61)
Movement on
revaluation
of
investments - - - - - (131) - (131)
Gain on
realisation
of
investments - - - - 275 - - 275
Investment
management
fee charged
to capital - - - - (70) - - (70)
Transfer from
distributable
special
reserve - - (370) - 370 - - -
Dividends
paid in
respect of
the year
ended 30
September
2009 - - - - (1,086) - (69) (1,155)
Revenue loss
for the
period - - - - - - (2) (2)
At 31 March
2010 2,303 117 17,392 208 52 (10,487) 55 9,640
Year ended 30 September 2010 (audited)
At 30
September
2009 2,321 117 17,823 190 563 (10,356) 126 10,784
Share
buybacks (56) - (179) 56 - - - (179)
Movement on
revaluation
of
investments - - - - - 358 - 358
Gain on
realisation
of
investments - - - - 369 - - 369
Investment
management
fee charged
to capital - - - - (141) - - (141)
Transfer from
distributable
special
reserve - - (575) - 575 - - -
Dividends
paid in
respect of
the year
ended 30
September
2009 - - - - (1,086) - (69) (1,155)
Revenue loss
for the
period - - - - - - (21) (21)
At 30
September
2010 2,265 117 17,069 246 280 (9,998) 36 10,015
Summarised balance sheet
31 March 2011 31 March 2010 30 Sept 2010
(unaudited) (unaudited) (audited)
GBP000s GBP000s GBP000s
Qualifying investments 9,193 7,720 8,165
Non-qualifying investments 958 1,642 1,575
Current assets 73 645 357
Creditors: amounts falling due
within one year (66) (367) (82)
10,158 9,640 10,015
Called up share capital 2,225 2,303 2,265
Capital redemption reserve 286 208 246
Share premium account 117 117 117
Distributable special reserve 14,489 17,392 17,069
Other capital reserves (6,960) (10,435) (9,718)
Revenue reserves 1 55 36
Equity shareholders' funds 10,158 9,640 10,015
Net asset value per share 45.66p 41.86p 44.22p
Cash Flow Statement
Six months to Six months to Year to 30
31 March 2011 31 March 2010 September
2010
(unaudited) (unaudited)
(audited)
GBP000s GBP000s GBP000s
Net cash outflow from operating
activities (13) (23) (18)
Net cash outflow from servicing of
finance - - -
Net cash inflow from investment
activities 669 1,018 1,130
Equity dividends paid (779) (1,156) (1,155)
New cash outflow from financing (126) (61) (179)
Decrease in cash (249) (222) (222)
Reconciliation of operating profit to
net cash outflow from operating
activities
Net return before finance costs and
taxation 1,048 72 565
Less capital return for the period (1,083) (74) (586)
Net revenue loss before finance costs
and taxation (35) (2) (21)
Decrease/(increase) in revenue debtors 35 (15) (5)
(Decrease)/increase in revenue
creditors (13) (6) 8
Net cash outflow from operating
activities (13) (23) (18)
Reconciliation of net cashflow to net
funds
Decrease in cash (249) (222) (222)
Net funds at the beginning of the
period 286 508 508
Net funds at the end of the period 37 286 286
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 2010.
2 Investment management fee
Six months to 31 Six months to 31 Year to 30
March 2011 March 2010 September 2010
(unaudited) (unaudited) (audited)
GBP000s GBP000s GBP000s
Investment management fee
charged to revenue (25%) 26 23 47
Investment management fee
charged to capital (75%) 78 70 141
Total investment management
fee 104 93 188
3. (Loss)/return per ordinary share
Six months to Six months to Year to 30
31 March 2011 31 March 2010 September
2010
(unaudited) (unaudited) (audited)
Revenue loss GBP(35,000) GBP(2,000) GBP(21,000)
Capital return GBP1,083,000 GBP74,000 GBP(586,000)
Total return GBP1,048,000 GBP72,000 GBP(565,000)
Weighted average number of ordinary
shares in issue during the year 22,302,272 23,113,786 22,951,907
Revenue return per ordinary share (0.16) (0.01)p (0.09)p
Capital return per ordinary share 4.86p 0.32p 2.55p
Total return per ordinary share 4.70p 0.31p 2.46p
4 Called up share capital
During the half year ended 31 March 2011, the Company bought back 402,000
shares for a total consideration of GBP126,000; (half year ended 31 March 2010:
184,000 shares for a total consideration of GBP61,000; year ended 30 September
2010: 562,250 shares for a total consideration of GBP179,000).
The number of ordinary shares in issue at 31 March 2011 was 22,247,778.
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 31 As at 31 As at 30 September
March 2011 March 2010 2010 (audited)
(unaudited) (unaudited)
Net assets attributable to
ordinary shareholders GBP10,158,000 GBP9,640,000 GBP10,015,000
Ordinary shares in issue 22,247,778 23,028,028 22,649,778
Net asset value per share 45.66p 41.86p 44.22p
6. Financial information
The Company's financial information for the six months to 31 March 2011 and the
comparative figures for the corresponding period in the previous financial year
are unaudited. The financial information for the year to 30 September 2010 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 2011
Qualifying investments Holding Book cost Market value % of net
GBP GBP assets
by value
Brooks Macdonald Group Ord 1p 90,000 126,495 1,017,000 10.01
Craneware Ord 1p 175,000 224,000 928,375 9.14
AFC Energy Ord 0.1p 872,805 88,619 506,227 4.98
System C Healthcare Ord 1p 648,149 350,000 447,223 4.40
Instem Life Science Systems Ord 10p 143,448 251,034 312,717 3.08
IS Pharma Ord 10p 371,428 260,000 312,000 3.07
Kiotech International Ord 23p 362,318 250,000 307,970 3.03
Nanoco Group Ord 10p 368,025 533,985 294,420 2.90
Noble Investments (UK) Ord 1p 200,000 116,000 290,000 2.85
Tristel Ord 1p 502,504 239,464 276,377 2.72
Maxima Holdings Ord 1p 290,000 478,500 261,000 2.57
Vertu Motors Ord 10p 833,333 500,000 229,167 2.26
EKF Diagnostics Holdings Ord 1p 1,000,000 150,000 220,000 2.17
Interquest Group Ord 1p 363,636 200,000 218,182 2.15
Manroy Ord 5p 200,000 150,000 206,000 2.03
Sanderson Group Ord 10p 700,000 350,000 189,000 1.86
EG Solutions Ord 1p 235,294 200,000 178,823 1.76
Avacta Group Ord 0.1p 15,000,000 150,000 169,500 1.67
Theo Fennell Ord 5p 370,625 140,838 155,662 1.53
Energetix Group Ord 5p 600,000 240,000 144,000 1.42
Getech Group Ord 0.25p 925,000 360,750 143,375 1.41
PhotonStar LED Group Ord 10p 1,390,666 321,932 139,067 1.37
Plastics Capital Ord 1p 150,000 150,000 124,500 1.23
Cohort Ord 10p 190,700 241,618 123,955 1.22
Surface Transforms Ord 1p 883,125 150,131 123,637 1.22
Corero Ord 1p 350,241 363,635 122,584 1.21
Brulines Group Ord 10p 131,667 161,950 121,134 1.19
VSA Capital Group Ord 0.01p 20,000,000 100,000 114,000 1.12
Angle Ord 10p 506,308 399,983 113,919 1.12
Brady Ord 1p 147,000 86,730 110,250 1.09
Strategic Thought Group Ord 1p 234,375 75,000 89,063 0.88
Hightex Group Ord 1p 1,428,571 100,000 85,714 0.84
Pressure Technologies Ord 5p 36,000 54,000 81,000 0.80
Accumuli Ord 0.25p 950,700 674,997 80,809 0.80
Bglobal Ord 1p 213,333 106,667 77,867 0.77
3D Diagnostic Imaging Ord 0.1p 1,666,667 100,000 75,000 0.74
Suretrack Monitoring Ord 0.05p 16,666,666 100,000 66,667 0.66
Datong Ord 0.5p 117,187 149,999 64,453 0.63
Tangent Communications Ord 1p 1,153,846 150,000 63,462 0.62
Byotrol Ord 0.25p 472,500 283,500 61,425 0.60
@UK Ord 1p 416,666 250,000 59,375 0.58
Belgravium Technologies Ord 5p 1,250,000 175,000 53,125 0.52
Dillistone Group Ord 5p 30,000 37,500 51,000 0.50
Imagelinx Ord 0.1p 4,000,000 200,000 50,000 0.49
Hot Tuna (International) Ord 0.01p 49,600,000 148,800 49,600 0.49
Wheelsure Holdings Ord 0.01p 1,000,000 50,000 37,500 0.37
Plethora Solutions Holdings Ord 1p 478,535 675,000 37,086 0.36
Ant Ord 5p 145,000 182,700 34,800 0.34
PHSC Ord 10p 229,110 121,428 34,366 0.34
Corac Group Ord 10p 225,000 94,500 32,625 0.32
Secora Ord 5p 450,000 315,000 27,000 0.27
Savile Group Ord 3p 150,000 100,500 16,500 0.16
Managed Support Services Ord 1p 500,000 254,217 15,000 0.15
Cyan Holdings Ord 0.2p 1,500,000 150,000 13,500 0.13
Travelzest Ord 2p 79,365 100,000 11,111 0.11
Invocas Group Ord 0.25p 137,150 152,236 10,972 0.11
Media Square Ord 10p 100,000 250,000 5,000 0.05
Optimisa Ord 25p 64,998 140,829 3,250 0.03
Sport Media Group Ord 0.25p 333,333 250,000 2,833 0.03
Green Compliance Ord 1p 201,498 91,236 1,612 0.02
Western & Oriental Ord 0.5p 1,000,000 100,000 1,000 0.01
AT Communications Group Ord 1p 1,242,857 522,000 - -
Bioganix Ord 10p 210,000 253,267 - -
Fishworks Ord 1p 750,000 247,500 - -
Hat Pin Ord 2.5p 234,375 168,750 - -
Hexagon Human Capital Ord 1p 180,303 297,500 - -
Legion Group Ord 0.5p 10,000,000 350,000 - -
Relax Group Ord 10p 55,555 99,999 - -
Sovereign Oilfield Group Ord 1p 144,000 201,600 - -
Total qualifying investments 15,109,389 9,192,779 90.50
Non-qualifying investments 2,001,219 958,309 9.43
Total fixed asset investments 17,110,608 10,151,088 99.93
Investor information
Structure of the Company
The Company has one class of share capital, ordinary shares of 10p each. At 31
March 2011, the Company had 22,247,778 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 net asset
value per ordinary share is calculated weekly and published on the London Stock
Exchange Company Announcements Service and, together with the share price, on
the Manager's website, www.axaframlington.com
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; lines open 8.30
am to 5.30 pm Monday to Friday) 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 2010 annual accounts are available from the Company's registered
office - 7 Newgate Street, London EC1A 7NX.
Warning to investors regarding share scam ("boiler room scam")
It has been brought to our attention that scam telephone calls have been made
to some investors in Framlington AIM VCT 2 PLC. We understand that these
unsolicited phone calls are being made from a company claiming to act on behalf
of a large investor who is looking to acquire a controlling stake in the VCT.
We understand that shareholders have been offered to sell their shares at a
price substantially higher than the market price, and in some cases they have
been asked to make an up-front payment to facilitate the sale of these shares.
The investors may also have been requested to sign a non disclosure consent
form. We believe these calls to be fraudulent and part of a boiler room scam.
The Financial Services Authority ('FSA') has published advice on this topic on
its website, and they also operate a Consumer Helpline and there is also an
online reporting form. Further information can be found on the FSA website.
We urge you to be careful if you receive any similar telephone calls.
Investment objective
The Company's investment objective is to achieve long term capital growth
primarily through investment in a diversified portfolio of qualifying companies
quoted on AIM. It is expected that realised capital gains, along with income,
will be returned to shareholders, at the discretion of the Directors, through
the payment of dividends. The Investment Manager may also invest the assets of
the Company in companies traded on the PLUS Market trading facility and in
unquoted stocks, although this is not currently expected to be significant.
The majority of the Company's investments will be in newly issued shares, as it
is a VCT requirement that 70% of the funds raised pursuant to the offer be
invested in new issues of shares that qualify as qualifying holdings within
three years of the share issue. The Company had to achieve this requirement by
30 September 2007 and now has to comply on an on-going basis.
Qualifying holdings are defined as holdings of shares or securities in unquoted
(including AIM and PLUS Market companies) whose purpose is to carry on a
qualifying trade wholly or mainly in the UK. Sectors that are excluded include
property, financial services and commodities. Companies must not be controlled
by the VCT or any other company. At the end of three years, up to 30% of a
VCT's assets can be invested in non-qualifying investments such as bank
deposits, gilts and fixed interest stock. At least 30% of the VCT's qualifying
holdings must be ordinary shares with no preferential rights. The remainder can
be in loans of at least five years' duration, or preference shares.
The size of companies in which the Company may invest is limited by the VCT
rules. Qualifying holdings, as defined above, must have gross assets of GBP15
million or less immediately prior to investment and GBP16 million or less
immediately after investment. Although the companies in which the Company
invests are small, the risk that this entails is mitigated by the
diversification of holdings which results from the requirement to invest 70% of
funds raised in qualifying holdings.
The maximum exposure to any one stock or group, other than another VCT, is 15%
of the Company's investments.
The Company's borrowings must be restricted to an amount which is less than 10%
of the Company's issued share capital and reserves.
ENDS
The 2010 annual report and accounts and the interim accounts to 31 March 2011
will also be available on the Manager's website at www.axaframlington.com.
Neither the contents of this website nor the contents of any website accessible
from hyperlinks on this website (or any other website) is incorporated into, or
forms part of, this announcement.
END
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