Triple Point Income VCT PLC Final Results -17-
May 30 2014 - 6:03AM
UK Regulatory
Fixed returns on investment loans, debt and money market funds
are recognised on a time apportionment basis so as to reflect the
effective yield, provided there is no reasonable doubt that payment
will be received in due course.
Expenses
All expenses are accounted for on the accruals basis. Expenses
are charged to revenue with the exception of the investment
management fee, which has been charged 75% to the revenue account
and 25% to the capital account (2013: 75% revenue, 25% capital) to
reflect, in the Directors' opinion, the expected long term split of
returns in the form of income and capital gains respectively from
the investment portfolio.
Taxation
Corporation tax payable is applied to profits chargeable to
corporation tax, if any, at the current rate in accordance with IAS
12 "Income Taxes". The tax effect of different items of income/gain
and expenditure/loss is allocated between capital and revenue on
the "marginal" basis as recommended by the SORP.
In accordance with IAS 12, deferred tax is recognised using the
balance sheet method providing for temporary differences between
the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. A
deferred tax asset is recognised to the extent that it is probable
that future taxable profits will be available against which the
temporary difference can be utilised. Deferred tax is measured at
the tax rates that are expected to be applied to the temporary
differences when they reverse, based on the laws that have been
enacted or substantively enacted by the reporting date. The
Directors have considered the requirements of IAS 12 and do not
believe that any provision should be made.
Financial Instruments
The Company's principal financial assets are its investments and
the accounting policies in relation to those assets are set out
above. Financial liabilities and equity instruments are classified
according to the substance of the contractual arrangements entered
into. An equity instrument is any contract that evidences a
residual interest in the assets of the entity after deducting all
of its financial liabilities. Where the contractual terms of share
capital do not have any terms meeting the definition of a financial
liability then this is classed as an equity instrument. Dividends
and distributions relating to equity instruments are debited direct
to equity.
Issued Share Capital
Ordinary shares are classified as equity because they do not
contain an obligation to transfer cash or another financial asset.
Issue costs associated with the allotment of shares have been
deducted from the share premium account in accordance with IAS
32.
Cash and Cash Equivalents
Cash and cash equivalents representing cash available at less
than 3 months' notice are classified as loans and receivables under
IAS 39.
Reserves
The revenue reserve (retained earnings) and capital reserve
reflect the guidance in the AIC SORP. The capital reserve
represents the proportion of Investment Management fees charged
against capital and realised/unrealised gains or losses on the
disposal/revaluation of investments. The special distributable
reserve was created on court cancellation of the share premium
account. The revenue, capital and special distributable reserve are
distributable by way of dividend.
3. Segmental Reporting
The Company only has one class of business, being investment
activity. All revenues and assets are generated and held in the
UK.
4. Investment Income
Year ended Year ended
31 March 2014 31 March 2013
------------------------------------------ ------------------------------------------
Ord. A C Ord. A C
Shares Shares Shares Total Shares Shares Shares Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Loan stock interest 833 105 - 938 896 36 - 932
Interest receivable
on bank balances 32 3 - 35 6 1 - 7
865 108 - 973 902 37 - 939
--------- --------- --------- --------- --------- --------- --------- ---------
5. Investment Management Fees
TPIM provides investment management and administration services
to the Company under an Investment Management Agreement effective 6
February 2008 and a deed of variation to that agreement effective
21 November 2012. The agreement provides for an administration and
investment management fee of 1.75% per annum of net assets payable
quarterly in arrear for both Ordinary Shares and A Ordinary shares.
For the Ordinary Shares issued under the 2007 offer the agreement
ran until 6 February 2013 and may be terminated at any time
thereafter by not less than twelve months' notice being given by
either party. Should such notice be given the Investment Manager
would continue to perform its duties under the Investment
Management Agreement and to receive its contractual fee during the
notice period. For all other Ordinary Shares it runs for a period
of at least 6 years from the date of admission of those shares. For
A Ordinary Shares the appointment shall continue until at least 30
April 2018. The agreement provides for an administration and
investment management fee of 2.25% per annum of net assets payable
quarterly in arrear for C Ordinary Shares. For C Ordinary Shares
the appointment shall continue for a period of at least 6 years
from the admission of those shares.
6. Legal and Professional Fees
Legal and professional fees include remuneration paid to the
Company's auditor, Grant Thornton UK LLP as shown in the following
table:
Year ended Year ended
31 March 2014 31 March 2013
------------------------------------------ ------------------------------------------
Ord. A C Ord. A C
Shares Shares Shares Total Shares Shares Shares Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Fees payable to
the Company's
auditor:
- for the audit
of the Financial
Statements 19 2 1 22 18 1 - 19
- for taxation
compliance services 5 - - 5 4 - - 4
24 2 1 27 22 1 - 23
7. Directors' Remuneration
The only remuneration received by the Directors was their
Directors' fees. The Company has no employees other than the
Non-Executive Directors. The average number of Non-Executive
Directors in the year was three. Full disclosure of Directors'
remuneration is included in the Directors' Remuneration report.
Year ended Year ended
31 March 2014 31 March 2013
------------------------------------------ ------------------------------------------
Ord. A C Ord. A C
Shares Shares Shares Total Shares Shares Shares Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
D T Frank 13 2 - 15 14 1 - 15
S Acland 11 1 - 12 13 - - 13
P Marsden - - - - 8 - - 8
M Stanes 11 2 - 13 4 - - 4
Total 35 5 - 40 39 1 - 40
--------- --------- --------- --------- --------- --------- --------- ---------
8. Taxation
Year ended Year ended
31 March 2014 31 March 2013
------------------------------------------ ------------------------------------------
Ord. A C Ord. A C
Shares Shares Shares Total Shares Shares Shares Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Profit/(loss)
on ordinary activities
before tax 778 141 (21) 898 545 91 - 636
Corporation tax
@ 20% 156 28 (4) 180 109 18 - 127
Effect of:
Capital gains
not taxable (67) (17) - (84) (38) (17) - (55)
Prior year adjustment 3 - - 3 - - - -
Tax charge/credit
for the period 92 11 (4) 99 71 1 - 72
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