TIDMTPV2
RNS Number : 0324S
TP70 2008 (ii) VCT PLC
14 November 2011
TP70 2088 (II) VCT plc
Interim Results
The directors of TP70 2008 (II) VCT plc are pleased to announce
its Interim results for the six months to 30 September 2011.
For further information please contact Triple Point Investment
Management LLP on 020 7201 8989. The Interim report will be
available in full at www.triplepoint.co.uk
Financial Summary
For the 6 months ended 30 September 2011
Unaudited Audited Unaudited
6 months ended Year ended 6 months ended
30 September
30 September 2011 31 March 2011 2010
GBP'000 GBP'000 GBP'000
Net assets 18,362 19,193 18,936
Net asset value
per share 80.33p 83.96p 82.69
--------------------- ------------------ -------------- ----------------
Net loss before
tax (464) (287) (586)
Loss per share (2.09p) (1.32p) (2.58p)
--------------------- ------------------ -------------- ----------------
TP70 2008 (II) VCT plc ("the Company") is a Venture Capital
Trust ("VCT"). The Investment Manager is Triple Point Investment
Management LLP ("TPIM"). The Company was launched in November 2007
and raised GBP23 million through an offer for subscription.
Initially 70% of the Company's net assets were to be invested in
cash and liquid assets prior to investment in VCT qualifying
holdings. The remaining 30% of net assets were to be exposed
directly or indirectly to a leveraged version of GAM Diversity, a
fund of hedge funds. The Company's policy is to hold qualifying
investments in businesses with predictable revenue streams from
financially sound customers and aim to generate an attractive
income stream and modest growth for shareholders.
Chairman's Statement
For the 6 months ended 30 September 2011
I am writing to present the Unaudited Interim Financial Report
for TP70 2008 (II) VCT plc ("the Company") for the. 6 months ended
30 September 2011.
Investment Strategy
The Company's strategy offers combined exposure to a leveraged
version of GAM Diversity and to VCT qualifying venture capital
investments with contractual revenues from financially secure
counterparties.
Results
At 30 September 2011 the Company has in place a diversified
portfolio of VCT qualifying investments, representing 78% of the
value of its investments. Further details of the portfolio are
given in the Investment Manager's Review on page 3.
The Company's exposure to GAM Diversity 2.5XL now stands at 21%
of net assets, which with leverage
represents 53% of net assets.
During the period GAM Diversity 2.5XL contributed a loss of
GBP535,000 to the Company which overall made a loss before taxation
of GBP464,000. The performance of GAM is detailed further in the
Investment Manager's Review on page 3. At the year end the
Company's Net Asset Value per share stood at 80.33p and the loss
per share for the six month period was 2.09p.
Dividend
A third dividend of GBP352,000 was paid to shareholders on 29
July 2011 equal to 1.54 p per share.
Board Composition
The Board regularly reviews the independence of its members and
as a result a decision was taken that Peter Hargreaves, who has an
interest in TPIM, should be replaced by a Director who is
independent of TPIM. Therefore Peter resigned as a Director and
Baroness Valentine was appointed on 2 June 2011.
Risks
The Board believes that the principal risks facing the Company
are:
-- investment risk associated with exposure to GAM Diversity 2.5XL
-- investment risk associated with undertaking VCT qualifying investments
-- failure to maintain approval as a VCT
-- counterparty risk relating to the Bank Julius Baer note
The first and fourth risks are a consequence of the Company's
investment strategy to which the Company committed in its
Prospectus. The Board and the Investment Manager continue to work
to minimise either the likelihood or potential impact of the second
and third risks which also follow from the Company's investment
strategy.
Outlook
With the VCT qualifying investment portfolio in place the
Company's principal focus will be on monitoring and managing the
performance of these investments, as well as maintaining the
required level of qualifying investments taking realisations and
loan repayments into account.
If you have any queries or comments, please do not hesitate to
telephone Triple Point Investment Management LLP on 020 7201
8989.
Chad Murrin
Chairman
10 November 2011
Investment Manager's Review
For the 6 months ended 30 September 2011
TP70 2008 (II) VCT plc's objective is to deploy at least 70% of
its funds into VCT qualifying investments and, with the remainder
of its funds, to offer leveraged exposure to GAM's fund of hedge
funds, Diversity, via GAM Diversity GBP 2.5XL.
VCT Qualifying Investment Portfolio
As at 30 September 2011, the Company had GBP14.6 million
deployed in VCT qualifying investments. Under the VCT qualification
rules the Company is continuing to exceed the 70% target. These
investments are spread across a range of companies and sectors,
with a focus on businesses that derive predictable revenue streams
from a financially sound customer base. All of these investments
are HMRC approved for VCT qualifying purposes.
The Company has investments in five companies active in the
renewable energy sector. Three of these companies, including a new
investment, Trinity Hall Biogas Limited, are developing
opportunities in anaerobic digestion. Their customers will be
either electricity utility companies via a National Grid
connection, or a business located close to the generators. Energy
generation from biomass is also underpinned by the Feed-in Tariff
or Renewables Obligation Certificate regime.
The other two companies are pursuing opportunities in
electricity generation from solar photo voltaic panels ("PV") for
private and social housing. The panels will be placed on suitable
roofs and used to generate electricity for the residents or
occupiers, with any surplus electricity exported to the National
Grid. The generation of electricity from solar PV falls within the
Government's Feed-in Tariff regime and the companies will benefit
from this framework. Feed-in Tariffs are linked to inflation and
rates for solar PV arrays installed before 2012 have been set for
25 periods, which will provide the companies with a long term,
predictable cash flow. The recently announced proposed changes to
the Feed-in Tariff regime are not expected to have an adverse
effect on the Company's qualifying investments.
The Company has invested in five companies which specialise in
the deployment of digital projection technology and they continue
to expand their operations in the UK and Continental Europe.
The Company's other investments are companies active in
satellite trading (providing for two-way broadband communications
and digital channels access to remote, rural regions across the UK
and Europe), supplying medical gas services for the NHS,
crematorium management for a local authority, providing
telecommunications services to a public sector body, and delivering
telecoms services to the corporate sector. Receipt of cash from the
contracts for the supply of medical gas, crematorium management and
telecoms services have meant that the investee companies involved
in those businesses have made partial loan repayments to the
Company.
The following commentary is based on information provided by
GAM.
GAM Review
Over the six months to 30 September 2011, GAM Diversity 2.5 XL
lost 12.33%. Over the same period the FTSE All Share lost 11.85%
and the MSCI World Index lost 13.52%.
GAM report that the second quarter of 2011 proved to be another
eventful period for equities. Although equity markets were
relatively unchanged for the quarter, there was significant
volatility throughout the period.
The third quarter was characterised as a stressed extension of
the uncertain environment of the first half of 2011. The appetite
for risk, which began to deteriorate at the end of July, continued
through August and September. Risk aversion occurred against an
almost unchanged economic backdrop: the latest data has
demonstrated continuing low nominal GDP growth in both the US and
Europe, with inflationary pressures in emerging markets and yet
unresolved debt issues in Europe. What did change, however, was the
markets' expectations, which turned more bearish after July. The
continued lack of a coordinated policy response towards the euro
zone debt crisis meant that the issues began to impact on core
markets, such as Italy. This, and the recognition that China would
accept a lower rate of growth in return for greater control of
inflation, triggered a move by investors towards perceived safe
havens. In broad market terms, this translated into an S&P 500
index decline of 13.9% and a MSCI World index fall of 16.5% for the
quarter. The underlying managers in GAM's allocation to trading
strategies posted positive absolute returns via exposure to
government bonds and select emerging market assets. GAM's relative
value managers also protected capital over the period, but GAM
report that they were disappointed by the level of correlation that
their equity hedge managers demonstrated to the general equity
market sell-off.
GAM Outlook
It is GAM's view that the current political backdrop is unlikely
to disappear anytime soon, with markets over the medium term moving
consistently with fundamentals, but with sizeable interim
reversals. Ultimately, GAM expect greater resolution on the issues
in Europe and the US, which will provide opportunities for managers
to generate more significant returns in multiple markets, whether
they be bullish or bearish on any particular asset class and
market. While there is the possibility that the environment may
normalise, GAM believe it is prudent for managers to find ways to
enhance their positioning rather than simply wait for resolution,
which could take quarters or years, rather than weeks.
GAM expect the focus to shift incrementally towards these
approaches. However, it is clear that volatility and correlation
will remain elevated and this will continue to present challenges
for all hedge fund managers, requiring them to manage this
increased risk appropriately.
Should the current uncertainty eventually stabilise and
translate into more sustained market movements, GAM expect the
opportunity set to increase.
Outlook
Some additional investment in VCT qualifying companies may be
necessary to replace realisations and loan repayments, but with the
VCT qualifying investment portfolio in place our intention for the
remainder of the Company's life is to focus primarily on monitoring
and managing the performance of these investments and monitoring
the Company's exposure to GAM Diversity.
Claire Ainsworth
Managing Partner
for Triple Point Investment Management LLP
10 November 2011
Directors' Responsibility Statement
For the 6 months ended 30 September 2011
The Directors have prepared the Interim Financial Report for the
Company in accordance with International Financial Reporting
Standards ("IFRS").
In preparing the Interim Financial Report for the 6 month period
to 30 September 2011, the Directors confirm that to the best of
their knowledge:
a) the Interim Financial Report has been prepared in accordance
with International Accounting Standard IAS34, "Interim Financial
Reporting" issued by the International Accounting Standards
Board;
b) the Interim Financial Report includes a fair review of
important events during the period and their effect on the
Financial Statements and a description of principal risks and
uncertainties for the remainder of the accounting period;
c) the Interim Financial Report gives a true and fair view in
accordance with IFRS of the assets, liabilities, financial position
and of the results of the Company for the period and complies with
IFRS and the Companies Act 2006;
d) the Interim Financial Report includes a fair review of
related party transactions and changes therein. Other than detailed
in note 14 there are no related party transactions; and
e) The Directors believe that the Company has sufficient
financial resources to manage its business risks in the current
uncertain economic outlook.
The Directors have reasonable expectation that the Company has
adequate resources to continue in operational existence for the
foreseeable future. Thus they continue to adopt the going concern
basis of accounting in preparing the financial statements.
This Interim Financial Report has not been audited or reviewed
by the auditors.
Chad Murrin
Chairman
10 November 2011
Unaudited Statement of Comprehensive Income
For the 6 months ended 30 September 2011
Unaudited Audited Unaudited
6 months ended Year ended 6 months ended
30 September 2011 31 March 2011 30 September 2010
---------------------------- ---------------------------- ----------------------------
Note Rev. Cap. Total Rev. Cap. Total Rev. Cap. Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Investment income 5 286 - 286 553 - 553 251 - 251
Realised loss on
investments - - - - (5) (5) - - -
Unrealised loss
on investments - (270) (270) - (198) (198) - (308) (308)
Unrealised loss
on derivative
transaction - (265) (265) - (186) (186) - (303) (303)
Investment return 286 (535) (249) 553 (389) 164 251 (611) (360)
-------- -------- -------- -------- -------- -------- -------- -------- --------
Investment
management
fees 42 125 167 84 252 336 42 127 169
Financial and
regulatory
costs 13 - 13 23 - 23 12 - 12
General
administration - - - 17 - 17 7 - 7
Legal and
professional
fees 15 - 15 34 - 34 18 - 18
Directors'
remuneration 7 20 - 20 41 - 41 20 - 20
Operating expenses 90 125 215 199 252 451 99 127 226
-------- -------- -------- -------- -------- -------- -------- -------- --------
Profit / (loss)
before taxation 196 (660) (464) 354 (641) (287) 152 (738) (586)
Taxation 8 (41) 26 (15) (68) 53 (15) (32) 27 (5)
Profit/(loss) after
taxation 155 (634) (479) 286 (588) (302) 120 (711) (591)
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total comprehensive
income/(loss) 155 (634) (479) 286 (588) (302) 120 (711) (591)
-------- -------- -------- -------- -------- -------- -------- -------- --------
Basic and diluted
earnings/(loss)
per share 9 0.68p (2.77p) (2.09p) 1.25p (2.57p) (1.32p) 0.53p (3.11p) (2.58p)
-------- -------- -------- -------- -------- -------- -------- -------- --------
The Total column of this statement is the Statement of
Comprehensive Income of the Company prepared in accordance with
International Financial Reporting Standards (IFRS). The
supplementary Revenue Return and Capital columns have been prepared
under guidance published by the Association of Investment
Companies.
All revenue and capital items in the above statement derive from
continuing operations.
This Statement of Comprehensive Income includes all recognised
gains and losses.
The accompanying notes are an integral part of this
statement.
Unaudited Balance Sheet
At 30 September 2011
Unaudited Audited Unaudited
30 September 31 March 30 September
Note 2011 2011 2010
GBP'000 GBP'000 GBP'000
Non current assets
Financial assets
at fair value through
the income statement 18,360 19,096 18,871
------------- --------- -------------
Current assets
Receivables 266 46 43
Cash and cash equivalents 10 195 125 118
461 171 161
------------- --------- -------------
Total assets 18,821 19,267 19,032
------------- --------- -------------
Current liabilities
Payables and accrued
expenses 423 53 63
Current taxation
payable 36 21 33
459 74 96
------------- --------- -------------
Net assets 18,362 19,193 18,936
============= ========= =============
Equity attributable
to equity holders
Share capital 11 229 229 229
Capital redemption
reserve 2 2 2
Special distributable
reserve 21,576 21,576 21,608
Capital reserve (3,535) (2,901) (3,024)
Revenue reserve 90 287 121
Total equity 18,362 19,193 18,936
------------- --------- -------------
Net asset value
per share (pence) 12 80.33p 83.96p 82.69p
============= ========= =============
The accompanying notes are an integral part of this
statement.
Uanaudited Statement of Changes in Shareholders' Equity
For the 6 months ended 30 September 2011
Special
Issued Share Redemption Distributable Capital Revenue
Capital Reserve Reserve Reserve Reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
6 months ended 30 September 2011
Opening balance 229 2 21,576 (2,901) 287 19,193
--------- ----------------- --------------- --------- --------- --------
Dividend paid - - - - (352) (352)
Transactions with owners - - - - (352) (352)
--------- ----------------- --------------- --------- --------- --------
(Loss) / profit for
the period - - - (634) 155 (479)
Total comprehensive
(loss) / income for
the period - - - (634) 155 (479)
--------- ----------------- --------------- --------- --------- --------
Balance at 30 September
2011 229 2 21,576 (3,535) 90 18,362
========= ================= =============== ========= ========= ========
Capital reserve consists
of:
Unrealised losses on
investments (2,802)
Other realised losses (733)
(3,535)
=========
Year ended 31 March
2011
Opening balance 229 2 21,608 (2,313) 283 19,809
--------- ----------------- --------------- --------- --------- --------
Purchase of own shares - - (32) - - (32)
Dividend paid - - - - (282) (282)
Transactions with owners - - (32) - (282) (314)
--------- ----------------- --------------- --------- --------- --------
(Loss) / profit for
the period - - - (588) 286 (302)
Total comprehensive
(loss)/ income for
the period - - - (588) 286 (302)
--------- ----------------- --------------- --------- --------- --------
Balance at 31 March
2011 229 2 21,576 (2,901) 287 19,193
========= ================= =============== ========= ========= ========
Capital reserve consists
of:
Unrealised losses on
investments (2,267)
Other realised losses (634)
(2,901)
=========
6 months ended 30 September 2010
Opening balance 229 2 21,608 (2,313) 283 19,809
--------- ----------------- --------------- --------- --------- --------
Dividend paid - - - - (282) (282)
Transactions with owners - - - (282) (282)
--------- ----------------- --------------- --------- --------- --------
(Loss)/ profit for
the period - - - (711) 120 (591)
Total comprehensive
(loss) / income for
the period - - - (711) 120 (591)
--------- ----------------- --------------- --------- --------- --------
Balance at 30 September
2010 229 2 21,608 (3,024) 121 18,936
========= ================= =============== ========= ========= ========
Capital reserve consists
of:
Unrealised losses on
investments (2,494)
Other realised losses (530)
(3,024)
=========
The accompanying notes are an integral part of this
statement.
Unaudited Statement of Cash Flows
For the 6 months ended 30 September 2011
Unaudited Audited Unaudited
6 months ended Year ended 6 months ended
30 September 31 March 30 September
2011 2011 2010
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Loss before taxation (464) (287) (586)
Realised loss on investments - 5 -
Unrealised loss on investments 535 384 611
Cashflow generated by operations 71 102 25
(Increase)/ decrease in
receivables (220) 25 28
Increase/ (decrease) in
payables 370 (286) (276)
Taxation paid - (22) -
Net cash flows from operating
activities 221 (181) (223)
--------------- ----------- ---------------
Cash flow from investing
activities
Purchase of financial assets
at fair value through profit
or loss (508) (6,563) (2,670)
Proceeds of sale of financial
assets at fair value through
profit or loss account 709 5,690 1,800
Net cash flows from investing
activities 201 (873) (870)
--------------- ----------- ---------------
Cash flows from financing
activities
Purchase of own shares - (32) -
Dividends paid (352) (282) (282)
Net cash flows from financing
activities (352) (314) (282)
--------------- ----------- ---------------
Net Increase/ (decrease)
in cash and cash equivalents 70 (1,368) (1,375)
=============== =========== ===============
Reconciliation of net cash
flow to movements in cash
and cash equivalents
Opening cash and cash equivalents 125 1,493 1,493
Net Increase/ (decrease)
in cash and cash equivalents 70 (1,368) (1,375)
Closing cash and cash equivalents 195 125 118
=============== =========== ===============
The accompanying notes are an integral part of this
statement.
Notes to the Unaudited Interim Financial Report
For the 6 months ended 30 September 2011
1 Corporate Information
The Interim Financial Report of the Company for the 6 months
ended 30 September 2011 was authorised for issue in accordance with
a resolution of the Directors on 10 November 2011.
The Company applied for listing on the London Stock Exchange on
6 February 2008.
TP70 2008 (II) VCT plc is incorporated and domiciled in Great
Britain. The address of TP70 2008 (II) VCT plc's registered office,
which is also its principal place of business, is 4-5 Grosvenor
Place, London, SW1X 7HJ.
TP70 2008 (II) VCT plc's Interim Financial Report is presented
in Pounds Sterling (GBP) which is also the functional currency of
the Company, rounded to the nearest thousand.
The financial information set out in this Interim Financial
Report does not constitute statutory accounts as defined in S434 of
the Companies Act 2006.
The principal activity of the Company is investment. The
Company's investment strategy is to offer combined exposure to a
leveraged version of GAM Diversity and venture capital investments
focused on companies with contractual revenues from financially
secure counterparties.
2 Basis of preparation and accounting policies
Basis of preparation
The Interim Financial Report of the Company for the 6 months
ended 30 September 2011 has been prepared in accordance with IAS
34: Interim Financial Reporting. It does not include all of the
information required for full Financial Statements and should be
read in conjunction with the Financial Statements for the year
ended 31 March 2011.
Estimates
The preparation of the Interim Financial Report requires the
Board to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expenditure. Actual results may
differ from these estimates.
3. Seasonality of operations
The Company's operations are not seasonal.
4. Segmental reporting
The Company's segments are defined by the financial information
provided to the Board. The Company only has one class of business,
being investment activity.
5. Investment Income
Unaudited Audited Unaudited
6 months ended Year ended 6 months ended
30 September 30 September
2011 31 March 2010 2010
---------------------------- ---------------------------- ----------------------------
Rev. Cap. Total Rev. Cap. Total Rev. Cap. Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Loan stock interest 285 - 285 537 - 537 239 - 239
Income receivable on
money market funds 1 - 1 16 - 16 12 - 12
Interest receivable on
bank balances - - - - - - - - -
Total 286 - 286 553 - 553 251 - 251
-------- -------- -------- -------- -------- -------- -------- -------- --------
6. Investment management fees
TPIM provides investment management and administration services
to the Company under an Investment Management Agreement effective 6
February 2008. The agreement runs until 6 February 2013 and may be
terminated at any time thereafter by not less than twelve months'
notice given by either party and which provides for an
administration and investment management fee of 1.75% per annum of
net assets payable quarterly in arrears. Should such notice be
given the Investment Manager would continue to perform its duties
under the Investment Management Agreement and to receive its
management fee during the notice period.
7. Directors' Remuneration
Directors' remuneration Unaudited Audited Unaudited
6 months ended Year ended 6 months ended
30 September 30 September
2011 31 March 2011 2010
---------------------------- ---------------------------- ----------------------------
Rev. Cap. Total Rev. Cap. Total Rev. Cap. Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Chad Murrin (Chairman) 8 - 8 15 - 15 15 - 15
Michael Stanes 6 - 6 6 - 6 - - -
Baroness Valentine 4 - 4 - - - - - -
Peter Hargreaves 2 - 2 6 - 6 - - -
Sir John Lucas-Tooth - - - 8 - 8 13 - 13
Robert Reid - - - 6 - 6 12 - 12
Total 20 - 20 41 - 41 40 - 40
-------- -------- -------- -------- -------- -------- -------- -------- --------
8. Taxation
Unaudited Audited Unaudited
6 months ended Year ended 6 months ended
30 September 30 September
2011 31 March 2011 2010
---------------------------- ---------------------------- ----------------------------
Rev. Cap. Total Rev. Cap. Total Rev. Cap. Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Profit / (loss) on ordinary
activities before tax 196 (660) (464) 354 (641) (287) 152 (738) (586)
Capital losses not taxable - 535 535 - 389 389 - 611 611
196 (125) 71 354 (252) 102 152 (127) 25
-------- -------- -------- -------- -------- -------- -------- -------- --------
UK corporation tax at
an effective rate of
21% (21%) 41 (26) 15 74 (53) 21 32 (27) 5
Adjustment re prior year - - - (6) - (6) - - -
Total charged in statement
of comprehensive income 41 (26) 15 68 (53) 15 32 (27) 5
-------- -------- -------- -------- -------- -------- -------- -------- --------
Capital gains and losses are exempt from corporation tax due to
the Company's status as a Venture Capital Trust.
9. Loss per share
The loss per share is based on a loss from ordinary activities
after tax of GBP479,000 and on the weighted average number of
shares in issue during the period of 22,858,626.
10. Cash and cash equivalents
Cash and cash equivalents comprise deposits with The Royal Bank
of Scotland plc.
11. Share Capital
Unaudited Audited Unaudited
30 September 31 March
2011 2011 30 September 2010
Ordinary Shares of 1p
Authorised
no. of shares 50,000,000 50,000,000 50,000,000
Par Value GBP'000 500 500 500
Issued & Fully Paid
no. of shares 22,858,626 22,858,626 22,898,626
Par Value GBP'000 229 229 229
12. Net asset value per share
The calculation of net asset value per share is based on net
assets of GBP18,362,000 divided by the 22,858,626 shares in
issue.
13. Commitments and contingencies
The Company has no commitments or contingent liabilities.
14. Related party transactions
Peter Hargreaves, who was a Director of the Company. has an
equity interest in Triple Point LLP (TPLLP), which in turn has a
controlling interest in TPIM. During the period TPIM provided
investment management and administration services to the Company
for a fee amounting to GBP167,000.
15. Post balance sheet events
There were no post balance sheet events.
15. Dividends
During the period a dividend of GBP352, 000 was paid equal to
1.54p per share on 22,858,626 shares.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BZLFFFFFFFBD
TP70 2008 (II) (LSE:TPV2)
Historical Stock Chart
From May 2024 to Jun 2024
TP70 2008 (II) (LSE:TPV2)
Historical Stock Chart
From Jun 2023 to Jun 2024