TPV1 Triple Point

TIDMTPV1

RNS Number : 4655I

Triple Point Income VCT PLC

30 May 2014

Triple Point Income VCT plc

Final Results

Triple Point Income VCT plc managed by Triple Point Investment Management LLP today announces the final results for the year ended 31 March 2014.

These results were approved by the Board of Directors on 29 May 2014.

You may view the Annual Report on the Triple Point website www.triplepoint.co.uk at http://www.triplepoint.co.uk/investment-products/venture-capital-trust/triple-point-income-vct/.

About Triple Point Income VCT plc

Triple Point Income VCT plc ("the Company") is a Venture Capital Trust ("VCT"). The investment manager is Triple Point Investment Management LLP. The Company was launched in November 2007 and raised GBP23 million (net of expenses) through an offer for subscription.

Details of the Fund's progress are discussed in the Strategic Report forming part of the extract from the Financial Statements which follows.

Venture Capital Trusts (VCTs)

VCTs were introduced in the Finance Act 1995 to provide a means for private individuals to invest in unlisted companies in the UK. Subsequent Finance Acts have introduced changes to VCT legislation. The tax benefits currently available to eligible new investors in VCTs include:

   --      upfront income tax relief of 30% 
   --      exemption from income tax on dividends paid; and 
   --      exemption from capital gains tax on disposals of shares in VCTs 

The Company has been provisionally approved as a VCT by HM Revenue & Customs. In order to maintain its approval, the Company must comply with certain requirements on a continuing basis. Above all, the Company is required at all times to hold 70% of its investments (as defined in the legislation) in VCT qualifying holdings, of which at least 30% must comprise eligible ordinary shares.

Financial Summary

 
                                 Year ended 31 March 2014                      Year ended 31 March 2013 
                           Ord.                                          Ord. 
                         Shares    A Shares    C Shares      Total     Shares    A Shares    C Shares      Total 
                        GBP'000     GBP'000     GBP'000    GBP'000    GBP'000     GBP'000     GBP'000    GBP'000 
  Net assets             15,587       4,215       6,873     26,675     40,479       4,221           -     44,700 
  Net asset value 
   per share             79.03p      82.15p      98.38p        n/a     81.08p      82.26p           -        n/a 
--------------------  ---------  ----------  ----------  ---------  ---------  ----------  ----------  --------- 
  Net profit/(loss) 
   before tax               778         141        (21)        898        545          91           -        636 
  Dividend paid         (4.11p)     (5.00p)           -        n/a    (1.35p)           -           -        n/a 
  Earnings/(loss) 
   per share              1.72p       2.55p     (2.16p)        n/a      1.50p       4.90p           -        n/a 
--------------------  ---------  ----------  ----------  ---------  ---------  ----------  ----------  --------- 
 

Triple Point Income VCT plc ("the Company") is a Venture Capital Trust ("VCT"). The Investment Manager is Triple Point Investment Management LLP ("TPIM").

During the year the Company's shareholders approved proposals for a Tender Offer for Ordinary shareholders who had satisfied their five year holding period and wished to realise their investment. At a price of 80.8955p per share based on the Net Asset Value ("NAV") on 31 July 2013, a total of 34,195,496 shares were purchased by the Company in two tranches on 18 October 2013 and 29 November 2013.

During the year the Company's shareholders approved proposals for the B shares to be converted into Ordinary shares. On 31 October 2013 7,263,471 B shares were converted into Ordinary shares at a conversion rate of 1.140169, creating a further 8,281,584 Ordinary shares.

During the year the Company's shareholders approved proposals for a new C class of share to be issued. At 31 March 2014 a total of 6,986,522 C shares had been issued. Since the year end a further 6,454,916 C shares were issued. The offer closed on 27 May 2014 and in total GBP14.0 million was raised and 13,441,438 C shares were issued.

The Strategic Report on pages 2 to 18, the Directors' Report on pages 19 to 28 and the Directors' Remuneration Report on pages 29 to 31 have each been drawn up in accordance with the requirements of English law and liability in respect thereof is also governed by English law. In particular, the responsibility of the Directors for these reports is owed solely to Triple Point Income VCT plc.

The Directors submit to the members their Annual Report and Financial Statements for the Company for the year ended 31 March 2014.

Strategic Report

The Strategic Report, on pages 2 to 18, has been prepared in accordance with the requirements of section 414c of the Companies Act 2006. Its purpose is to inform the members of the Company and help them to assess how the Directors have performed their duty to promote the success of the Company, in accordance with section 172 of the Companies Act 2006.

Chairman's Statement

I am writing to present the Financial Statements for Triple Point Income VCT plc ("the Company") for the year ended 31 March 2014.

First of all, I would like to thank Ordinary and A Class Shareholders for your continued assistance over a period of unusually high corporate activity as the Company underwent a reorganisation. I have set out below an update on each of these projects and its relevance to each class of shareholder.

Ordinary Share Class

Ordinary Class shareholders who satisfied their minimum five year VCT holding period in 2013 were provided with the opportunity to take up an Enhanced Share Buy Back ("ESBB"), which allowed them to re-invest for a further five years. Approximately one third of those shareholders took up the ESBB. The Board then focused on realising investments in order to return funds to those shareholders who chose not to participate. The Company purchased 34,195,496 Ordinary Shares at a price of 80.8955p per share based on the Net Asset Value ("NAV") on 31 July 2013 in two tranches on 18 October 2013 and 29 November 2013.

B Share Class

The B Share Class consisted of shares issued to investors who took up the B Share Offer which closed on 30 April 2013. In August 2013 the Board put forward proposals for the conversion of B shares into Ordinary shares to simplify the Company's administration. The proposal was approved and the conversion effected on 31 October 2013.

Ordinary Share Qualifying Investments

As at 31 March 2014 (and after the B share conversion) VCT qualifying investments represented 92% of the Ordinary Fund's investment portfolio. The diversified investment portfolio retained by the Ordinary Share Class continues to perform in line with expectations. More information on the investment portfolio is given on pages 12 to 18 of the Strategic Report.

A dividend was paid to the Ordinary Class shareholders of GBP812,978, equal to 4.11p per share, on 10 January 2014.

At 31 March 2014 the net asset value stood at 79.03p. Adding back the dividend payment of 4.11p during the year the net asset value would have been 83.14p.

A Share Class

A Class shareholders retain exposure to their discrete investment portfolio in the renewable energy sector. As at 31 March 2014 VCT qualifying investments represented 86% of the A Fund's investment portfolio. More information on the investment portfolio is given on pages 12 to18 of the Strategic Report.

At 31 March 2014 the net asset value stood at 82.15p. Adding back the dividend payment of 5p per share paid during the year the net asset value would have been 87.15p.

A dividend was paid to the A Class shareholders of GBP256,568, equal to 5p per share, on 26 July 2013. The Board has resolved to pay a second dividend to A Share Class shareholders of GBP318,144 equal to 6.2p per share which will be paid on 25 July 2014 to shareholders on the register on 11 July 2014.

C Share Class

Shareholders approved the issue of up to 30,000,000 C Class shares and as at 31 March 2014 6,986,522 shares had been issued. Since the year end a further 6,454,916 C shares have been issued bringing the total to 13,441,438 C Class shares. This was part of a new share issue offer.

At 31 March 2014 the C Share class had GBP6.9 million in cash which will be deployed into companies investing in small scale hydro electric power projects in Scotland.

Risks

The Board believes that the principal risks facing the Company are:

   --      investment risk associated with holding VCT qualifying investments 
   --      failure to maintain approval as a VCT 

The Board and the Investment Manager continue to work to minimise the likelihood and potential impact of these risks.

Outlook

With the reorganisation of the Company complete and earlier vintage shareholders having exited, the Company is now established as a diversified VCT designed to meet the investment objectives of shareholders in each of its three share classes. Our focus as your Board is, therefore, to ensure that the strategy is executed successfully and that the Company continues to build and maintain a portfolio of qualifying holdings which perform in line with our expectations.

If you have any queries or comments, please do not hesitate to telephone Triple Point Investment Management LLP on 020 7201 8989.

David Frank

Chairman

29 May 2014

Company Strategy and Business Model

The Directors assess the Company's success in meeting its objectives in relation to returns, stability, VCT qualification and, ultimately, exit.

Performance Update

Although each Share Class follows the same investment strategy its execution of the strategy varies for each Share Class and therefore the returns may vary.