TIDMUAV
RNS Number : 0217C
Unicorn AIM VCT PLC
16 January 2018
Unicorn AIM VCT plc ("the Company")
LEI: 21380057QDV7D34E9870
Interim Management Statement
For the period from 1 October 2017 to 31 December 2017
Introduction
This voluntary Interim Management Statement (IMS) covers the
three month period ended 31 December 2017, together with relevant
information up to the date of publication.
Investment Objective
The Company's objective is to provide Shareholders with an
attractive return from a diversified portfolio of investments,
predominantly in the shares of AIM quoted companies, by maintaining
a steady flow of dividend distributions to Shareholders from the
capital gains as well as income generated by the portfolio.
It is also the objective that the Company should continue to
qualify as a Venture Capital Trust, so that Shareholders benefit
from the taxation advantages that this brings. To achieve this at
least 70% of the Company's total assets are to be invested in
qualifying investments of which 30% by VCT value (70% for funds
raised after 6 April 2011) must be in ordinary shares carrying no
preferential rights (save as permitted under VCT rules) to
dividends or return of capital and no rights to redemption.
Performance
The performance of UK equity markets was strong during the final
quarter of 2017.
The FTSE All Share Index recorded a total return of +5.0% during
the period under review, while the FTSE AIM All Share Index ended
the quarter up by +4.9%, on the same total return basis.
UK equity indices continued to rise, despite ongoing uncertainty
surrounding BREXIT and a relatively weak domestic economy. Much of
the gains in the main and alternative markets have come from larger
companies that operate on a global scale as they continue to
benefit from the ongoing weakness of Sterling relative to the
world's other major currencies.
The Company's overall performance was modestly positive during
the period under review, with Net Asset Value per share increasing
by 0.8%. Having started the period at 163.1 pence per share, the
unaudited NAV per share as at 31 December 2017 was 164.4 pence per
share.
VCT Qualifying Investments
Of the 75 VCT qualifying investments held in the portfolio, 34
recorded share price gains during the period under review. Of
these, 14 investments generated capital gains in excess of
GBP150,000 each.
Of particular note were the five largest contributors to
performance, which generated a combined total of over GBP6.3
million in realised and unrealised capital gains in the period
under review.
In absolute terms, the five stocks that delivered the greatest
contribution were:-
AB Dynamics (+73.7%), a company engaged in the design,
manufacture and supply of advanced testing and measurement products
to the global automotive industry.
Fusion Antibodies (+159.8%), a contract research organisation
providing a range of antibody engineering services.
Tracsis (+17.1%), a group that specialises in solving a variety
of data capture, and resource optimisation problems, predominantly
for the transport sector.
ULS Technology (+16.8%), a provider of online technology
solutions for the UK conveyancing market.
Wey Education (+94.9%), a provider of online educational
services worldwide.
Thirteen VCT qualifying holdings delivered negative
contributions of more than GBP150,000 each.
Of these, three investee companies experienced share price falls
that were directly related to unexpectedly poor trading or specific
operational issues, while the remainder experienced share price
weakness linked to market uncertainty and weak investor
sentiment.
In absolute terms the five largest detractors from performance
were:-
Animalcare (-12.9%), a veterinary medicines and animal products
business.
Cohort (-16.5%), a holding company for a group of businesses
supplying advanced technology products and services to the defence,
security and transport markets
IDOX (-43.6%), a leading supplier of specialist information
management solutions and services.
Mattioli Woods (-8.4%), one of the UK's leading providers of
Wealth Management and Employee Benefit Services.
Totally (-40.3%), a provider of healthcare services designed to
offer improved care for those whose conditions can be better
treated at home, locally, or in the community.
Non-Qualifying Investments
The overall performance of the non-qualifying investments was
stable during the period under review, with an absence of notable
newsflow on which to report.
Material Transactions
Three new VCT qualifying investments have been made during the
period. In total, GBP4.8 million of new capital was allocated to
these investments.
Additional VCT qualifying shares, to the value of GBP0.6
million, were acquired in Hardide, as part of a placing of new
shares.
The only outright sale in the period was Greene King, which was
a non-qualifying investment.
A number of partial disposals were made during the period. The
purpose of such disposals is threefold; to help manage liquidity
requirements, to ensure stock specific risk is contained and to
lock in capital profits for future distribution to Shareholders via
dividend payments.
Top Ten VCT Qualifying Holdings at 31 December 2017
Stock % of fund
------------------ ----------
Abcam 7.9
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Tracsis 4.2
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Anpario 4.0
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Mattioli Woods 3.7
------------------ ----------
MaxCyte 3.3
------------------ ----------
ULS Technology 2.8
------------------ ----------
Animalcare Group 2.6
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Tristel 2.1
------------------ ----------
Cohort 2.0
------------------ ----------
Keywords Studios 2.0
------------------ ----------
Total 34.6%
------------------ ----------
Share Buy-Backs
During the period from 1 October 2017 to 31 December 2017, the
Company bought back 509,200 of its own Ordinary Shares for
cancellation, at an average price of 140.14 pence per share.
There were 118,889,237 Ordinary Shares in issue as at 31
December 2017.
Dividends
The Board has recommended a final dividend of 3.5 pence per
share for the financial year ended 30 September 2017. The proposed
dividend was approved by Shareholders at the Company's Annual
General Meeting, which was held on 11 January 2018, and will be
paid on 2 February 2018 to Shareholders on the register on 12
January 2018.
An interim dividend of 3.0 pence per share was paid on 11 August
2017. Total dividends paid in respect of the financial year ended
30 September 2017, will therefore amount to 6.5 pence per share
(2016: 6.25 pence per share).
Material Events
On 17 November 2017, the Board announced the closure of the
Offer for Subscription launched on 25 July 2017, which raised
GBP33.6 million net of costs.
There were no other material events during the period from 1
October 2017 to 31 December 2017.
Chris Hutchinson
Unicorn Asset Management
Investment Manager
16 January 2018
This information is provided by RNS
The company news service from the London Stock Exchange
END
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