TIDMTP10
RNS Number : 2947C
TP10 VCT Plc
14 October 2015
TP10 VCT plc
Interim Results
The directors of TP10 VCT plc are pleased to announce its
Interim results for the six months to 31 August 2015.
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
Unaudited Audited Unaudited
6 months ended Year ended 6 months ended
28 February
31 August 2015 2015 31 August 2014
GBP'000 GBP'000 GBP'000
Net assets 13,447 27,933 25,366
Profit before tax 72 3,212 136
----------------- ------------- -----------------
Movement in net asset
value per share (p)
Opening net asset value
per share 92.72p 87.05p 87.05p
Dividends per share paid
during the period (48.32p) (5.00p) (3.31p)
Earnings per share 0.23p 10.67p 0.46p
Closing net asset value
per share 44.63p 92.72p 84.20p
----------------- ------------- -----------------
Cumulative return to
shareholders (p)
Net asset value per share 44.63p 92.72p 84.20p
Total dividends paid 61.63p 13.31p 11.62p
Net asset value plus
dividends paid 106.26p 106.03p 95.82p
----------------- ------------- -----------------
TP10 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 2009 and raised GBP28.6
million (net of expenses) through an offer for subscription which
closed on 31 May 2010.
Chairman's Statement
I am writing to you to present the Unaudited Interim Financial
Report for TP10 VCT plc ("the Company") for the 6 months ended 31
August 2015.
Investment Portfolio
At the period end, the Company's funds are 86% invested in a
portfolio of both VCT qualifying and non-qualifying unquoted
investments.
During the period the solar PV companies in which the Company
invested disposed of a significant part of their portfolios of
roof-mounted solar systems. The disposal resulted in an up-lift to
the valuation of these investee companies of an aggregate GBP2.9
million, equivalent to 9.77p per share, which was recognised at 28
February 2015. Subsequently the Company has sold all of these
investments.
In June, the Company completed the sale of its investment in two
Anaerobic Digestion companies for GBP2.6 million resulting in an
up-lift to the valuation of GBP335,000, equivalent to 1.11p per
share.
As shown on page 6, qualifying holdings accounted for 56% of the
overall investment portfolio at 31 August 2015. Qualifying
investments that have been disposed of continue to count towards
the VCT qualifying status for six months after disposal. Therefore
the Company continues to meet the requirement that 70% of the
portfolio must be invested in VCT qualifying investments.
Dividend
We are pleased to report that during the period the Company paid
two further dividends. A dividend of GBP1.3 million equal to 4.32p
per share was paid on 19 June 2015 and a dividend of GBP13.3
million equal to 44.0p per share was paid on 31 July 2015. This
takes the total paid by way of dividends to shareholders to 61.63p
per share.
Net Asset Value
Following the sales detailed above, investment income has
reduced, so that the Company's recurring income is less than the
running costs for the period. The uplift on the sale of the
Anaerobic Digestion companies has however resulted in a profit for
the period of 0.23p per share. At 31 August 2015 the Net Asset
Value ("NAV") per share stood at 44.63p per share. Taken together
with the cumulative dividends of 61.63p per share paid this gives a
NAV per share equivalent to 106.26p per share.
Principal Risks
The Board believes that the principal risks facing the Company
are:
-- risk of failure to maintain approval as a qualifying VCT;
-- risk of inability to realise investments in order to return
funds to investors after the five year holding period;
-- investment risk associated with the VCT's portfolio of unquoted investments.
The Board believes these risks are manageable and, with the
Investment Manager, continues to work to minimise either the
likelihood or potential impact of these risks within the scope of
the Company's established investment strategy.
Outlook
In June this year, all of the Company's shareholders had held
their shares for the five years required in order to secure the
upfront income tax relief. In line with the VCT's investment
strategy distributions have been made and both your Board and
Triple Point are planning to return all remaining funds to
shareholders as soon as is practicable.
The Unaudited Interim Financial Report has been prepared on a
break up basis to reflect the intention to realise the assets of
the Company within the next six months after which the Directors
will seek shareholders approval to place the Company into Members'
Voluntary Liquidation.
If you have any questions or comments, please do not hesitate to
telephone Triple Point Investment Management LLP on 020 7201
8989.
Robin Morrison
Chairman
14 October 2015
Investment Manager's Review
In June 2015, the 13 investee companies which generated
renewable electricity from residential solar PV panels were sold
and as a result of the sale, the Company realised a total of
GBP14.8m. This was the first large scale sale of its kind in the UK
VCT sector, and we are pleased to report that this contributed to a
significant uplift of 9.77p per share, equivalent to GBP2.9m on the
net asset value of the Company.
The two anaerobic digestion companies were also successfully
sold in June 2015, which resulted in a realisation of GBP1.6m. This
contributed to an uplift of 1.11p per share, equivalent to
GBP0.3m.
As shown on page 6, qualifying holdings accounted for 56% of the
overall investment portfolio at 31 August 2015. Qualifying
investments that have been disposed of continue to count towards
the VCT qualifying status for six months after disposal. Therefore
the Company continues to meet the requirement that 70% of the
portfolio must be invested in VCT qualifying investments.
The remaining portfolio comprises investments in companies
active in four sectors, cinema digitisation, hydro project
management, renewable energy and SME leasing.
Sector Analysis
The unquoted investment portfolio can be analysed as
follows:
Electricity Generation
Total
Industry Cinema Hydro Project Solar Anaerobic Unquoted
Sector Digitisation Management PV Digestion Landfill SME Lending Investments
--------------- --------------- ------------- --------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- --------------- ------------ ------------- --------------
Investments
at 28
February
2015 5,649 903 14,858 2,225 721 3,600 27,956
--------------- --------------- ---------- ------------ ---------- ------------- --------------
Investments
made during
the period - - - - - 143 143
--------------- --------------- ---------- ------------ ---------- ------------- --------------
Investments
disposed of
during the
period - - (13,462) (2,571) - - (16,033)
--------------- --------------- ---------- ------------- --------------
Investment
revaluations
during the
period - - (1,396) 346 (96) - (1,146)
--------------- --------------- ---------- ------------ ------------- --------------
Investments
at 31 August
2015 5,649 903 - - 625 3,743 10,920
--------------- --------------- --------------
Investments
% 51.73% 8.27% 0.00% 0.00% 5.72% 34.28% 100.00%
--------------- --------------- ------------ ---------- --------------
Remaining Investments
Cinema Digitisation
Over the six month period, TP10's portfolio of cinema
digitisation businesses continued to perform as intended, with the
companies benefitting from regular and reliable revenues from their
operations in the UK, Germany, Italy and Ireland. It is expected
that this portfolio will be realised by the end of the year.
Hydro Project Management
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Highland Hydro Services Limited ("HHS") manages the planning and
environmental impact studies for a portfolio of new small scale
run-of-river hydroelectric schemes in the Scottish Highlands. All
nine of the initial applications went according to plan and
received planning consent. HHS has successfully sold the rights to
the first six schemes and is expecting to conclude the final sales
this calendar year.
Landfill Gas
Craigahulliar Energy Ltd (CEL) and Aeris Power Ltd (APL) each
generates renewable electricity from landfill gas at sites operated
respectively by local councils and a large waste management company
in Northern Ireland. Both businesses continue to generate
electricity for export to the Grid, earning long term cash flows
through the sale of electricity to a utility company and
potentially to the site owners, and through the sale of the
Renewables Obligation Certificates. CEL is generating in line with
expectations while APL's generation is running slightly lower than
expected due to lower than expected gas extraction. Management have
taken actions to address this and while the company continues to be
comfortably able to meet the VCT's interest payments, we have
deemed it is prudent to reflect slightly lower cash flow
projections in the recent valuation.
SME Lending
The Company has a GBP3.7 million investment in Broadpoint
Limited, a finance company which provides short and medium term
funding to a range of small and medium sized businesses. The
Company is able to withdraw its funds from Broadpoint with one
months' notice.
Outlook
Following the fifth anniversary of TP10 in June 2015, the
realisation of the Company's remaining investments is now at an
advanced stage. We are working to realise the remaining balance of
the portfolio and we expect the Company to pay further dividends
and enter into a Members' Voluntary Liquidation in the coming
months. This process is designed to deliver an exit for investors
as soon as practicable, and we continue to work closely with the
Board and all the portfolio companies to meet investors'
expectations.
If you have any questions, please do not hesitate to call us on
020 7201 8989.
Claire Ainsworth
Managing Partner
for Triple Point Investment Management LLP
15 October 2015
Investment Portfolio
Unaudited Audited
31 August 2015 28 February 2015
---------------------------------------- ----------------------------------------
Cost Valuation Cost Valuation
GBP'000 % GBP'000 % GBP'000 % GBP'000 %
Unquoted investments
Qualifying holdings 7,013 55.69 7,141 56.14 20,438 84.68 24,320 86.78
Non-qualifying holdings 3,779 30.01 3,779 29.71 3,636 15.07 3,636 12.97
Financial assets at fair
value through profit
or loss 10,792 85.70 10,920 85.85 24,074 99.75 27,956 99.75
Cash and cash equivalents 1,802 14.30 1,802 14.15 62 0.25 62 0.25
12,594 100.00 12,722 100.00 24,136 100.00 28,018 100.00
========= ======== ========= ======== ========= ======== ========= ========
Unquoted Qualifying Holdings
Cinema Digitisation
Cinematic Services Ltd 1,855 14.73 1,855 14.58 1,855 7.69 1,855 6.62
Digima Ltd 1,620 12.86 1,620 12.73 1,620 6.71 1,620 5.78
Digital Screen Solutions
Ltd 1,025 8.14 1,025 8.06 1,025 4.25 1,025 3.66
DLN Digital Ltd 1,000 7.94 1,113 8.75 1,000 4.14 1,113 3.97
Hydro Project Management - - -
Highland Hydro Services
Ltd 813 6.46 903 7.10 813 3.37 903 3.22
Electricity Generation
Solar
AH Power Ltd - - - - 800 3.31 1,004 3.58
Arraze Ltd - - - - 1,300 5.39 1,733 6.19
Bandspace Ltd - - - - 1,000 4.14 1,375 4.91
Bridge Power Ltd - - - - 750 3.11 1,002 3.58
Campus Link Ltd - - - - 1,000 4.14 1,293 4.61
Core Generation Ltd - - - - 750 3.11 1,029 3.67
Druman Green Ltd - - - - 750 3.11 1,009 3.60
Fellman Solar Ltd - - - - 750 3.11 1,005 3.59
Flowers Power Ltd - - - - 600 2.49 819 2.92
Haul Power Ltd - - - - 750 3.11 1,035 3.69
Helioflair Ltd - - - - 1,000 4.14 1,270 4.53
Ranmore Environmental
Ltd - - - - 1,000 4.14 1,256 4.48
Trym Power Ltd - - - - 750 3.11 1,028 3.67
Anaerobic Digestion
GreenTec Energy Ltd - - - - 1,500 6.21 1,500 5.35
Katharos Organic Ltd - - - - 725 3.00 725 2.59
Landfill
Aeris Power Ltd 500 3.97 404 3.18 500 2.07 500 1.78
Craigahulliar Energy
Ltd 200 1.59 221 1.74 200 0.83 221 0.79
7,013 55.69 7,141 56.14 20,438 84.68 24,320 86.78
========= ======== ========= ======== ========= ======== ========= ========
GBP'000 % GBP'000 % GBP'000 % GBP'000 %
Unquoted Non-Qualifying
Holdings
Cinema Digitisation
Digima Ltd 1 0.01 1 0.01 1 - 1 -
Digital Screen Solutions
Ltd 35 0.28 35 0.28 35 0.15 35 0.12
SME lending -
Broadpoint Ltd 3,743 29.72 3,743 29.42 3,600 14.92 3,600 12.85
3,779 30.01 3,779 29.71 3,636 15.07 3,636 12.97
========= ======== ========= ======== ========= ======== ========= ========
Directors' Responsibility Statement
The Directors have elected to prepare 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 31 August 2015, 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. 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.
After the completion of the shareholders' five year holding
period in June this year, steps have been taken to realise the
Company's investments. In the circumstances this Interim Financial
Report has been prepared on a break-up basis taking into account
the expected costs of the Company's liquidation.
This Interim Financial Report has not been audited or reviewed
by the auditors.
Robin Morrison
Chairman
14 October 2015
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Statement of Comprehensive Income
Unaudited Audited Unaudited
6 months ended Year ended 6 months ended
31 August 2015 28 February 2015 31 August 2014
------------------------------- ------------------------------- -------------------------------
Note Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Income
Investment
income 4 1,735 - 1,735 1,022 - 1,022 523 - 523
Loss arising on
the disposal of
investments in
the period - (1,050) (1,050) - (4) (4) - (4) (4)
(Loss)/gain
arising
on the
revaluation
of investments
at the period
end - (96) (96) - 3,004 3,004 - - -
Investment
return 1,735 (1,146) 589 1,022 3,000 4,022 523 (4) 519
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Expenses
Investment
management
fees 5 240 211 451 483 161 644 246 82 328
Financial and
regulatory
costs 12 - 12 24 - 24 12 - 12
General
administration 3 - 3 7 - 7 5 - 5
Legal and
professional
fees 31 - 31 95 - 95 18 - 18
Directors'
remuneration 6 20 - 20 40 - 40 20 - 20
Operating
expenses 306 211 517 649 161 810 301 82 383
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Profit/loss
before
taxation 1,429 (1,357) 72 373 2,839 3,212 222 (86) 136
Taxation 7 (12) 12 - (60) 60 - (18) 18 -
Profit/loss
after
taxation 1,417 (1,345) 72 313 2,899 3,212 204 (68) 136
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Profit and total
comprehensive
income/loss
for the period 1,417 (1,345) 72 313 2,899 3,212 204 (68) 136
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Basic & diluted
earnings/(loss)
per share 8 4.70p (4.47p) 0.23p 1.05p 9.62p 10.67p 0.69p (0.23p) 0.46p
--------- --------- --------- --------- --------- --------- --------- --------- ---------
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
in accordance with the Association of Investment Companies
Statement of Recommended Practice (AIC SORP).
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 these
statements.
Balance Sheet
Unaudited Audited Unaudited
6 months ended Year ended 6 months ended
28 February
31 August 2015 2015 31 August 2014
---------------- ------------- ----------------
GBP'000 GBP'000 GBP'000
Non Current Assets
Financial assets
at fair value through
profit or loss 10,920 10,873 25,249
---------------- ------------- ----------------
Current assets
Assets held for
sale - 17,083 -
Receivables 9 953 165 240
Cash and cash equivalents 1,802 62 58
2,755 17,310 298
---------------- ------------- ----------------
Total assets 13,675 28,183 25,547
---------------- ------------- ----------------
Current liabilities
Payables and accrued
expenses 228 250 181
228 250 181
---------------- ------------- ----------------
Net Assets 13,447 27,933 25,366
================ ============= ================
Equity attributable
to equity holders
of the Company
Share capital 10 301 301 301
Special distributable
reserve 10,530 24,775 25,284
Share redemption
reserve 1 1 1
Capital reserve 1,198 2,543 (424)
Revenue reserve 1,417 313 204
Total equity 13,447 27,933 25,366
================ ============= ================
Net asset value
per share (pence) 11 44.63p 92.72p 84.20p
================ ============= ================
The accompanying notes are an integral part of this
statement.
Statement of Changes in Shareholders' Equity
Special Share
Issued Distributable Redemption Capital Revenue
Capital Reserve Reserve Reserve Reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
6 months ended 31 August
2015
Opening balance 301 24,775 1 2,543 313 27,933
--------- --------------- ------------ --------- --------- ----------
Dividends paid - (14,245) - - (313) (14,558)
----------
Transactions with owners - (14,245) - - (313) (14,558)
--------- --------------- ------------ --------- --------- ----------
(Loss)/profit after tax - - - (1,345) 1,417 72
Total comprehensive (loss)/income
for the period - - - (1,345) 1,417 72
--------- --------------- ------------ --------- --------- ----------
Balance at 31 August
2015 301 10,530 1 1,198 1,417 13,447
========= =============== ============ ========= ========= ==========
Capital reserve consists
of:
Investment holding gains 128
Other realised gains 1,070
1,198
=========
Year ended 28 February
2015
Opening balance 301 25,973 1 (356) 308 26,227
--------- --------------- ------------ --------- --------- ----------
Purchase of own shares - - - - - -
Dividends paid - (1,198) - - (308) (1,506)
----------
Transactions with owners - (1,198) - - (308) (1,506)
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--------- --------------- ------------ --------- --------- ----------
Profit after tax - - - 2,899 313 3,212
Total comprehensive income
for the year - - - 2,899 313 3,212
--------- --------------- ------------ --------- --------- ----------
Balance at 28 February
2015 301 24,775 1 2,543 313 27,933
========= =============== ============ ========= ========= ==========
Capital reserve consists
of:
Investment holding gains 3,882
Other realised losses (1,339)
2,543
=========
6 months ended 31 August
2014
Opening balance 301 25,973 1 (356) 308 26,227
--------- --------------- ------------ --------- --------- ----------
Purchase of own shares - - - - - -
Dividends paid - (689) - - (308) (997)
Transactions with owners - (689) - - (308) (997)
--------- --------------- ------------ --------- --------- ----------
(Loss)/profit after tax - - - (68) 204 136
Total comprehensive (loss)/income
for the period - - - (68) 204 136
--------- --------------- ------------ --------- --------- ----------
Balance at 31 August
2014 301 25,284 1 (424) 204 25,366
========= =============== ============ ========= ========= ==========
Capital reserve consists
of:
Investment holding gains 878
Other realised losses (1,302)
(424)
=========
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
capital reserve is not distributable. The special distributable
reserve was created on court cancellation of the share premium
account. The revenue and special distributable reserves are
distributable by way of dividend.
The accompanying notes are an integral part of this
statement.
Statement of Cash Flows
Unaudited Audited Unaudited
6 months ended Year ended 6 months ended
31 August 28 February 31 August
2015 2015 2014
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit before taxation 72 3,212 136
Loss arising on the disposal
of investments during the period 1,050 4 4
Loss/(gain) arising on the
revaluation of investments
at the period end 96 (3,004) -
Cash generated by operations 1,218 212 140
(Increase)/decrease in receivables (788) 187 112
(Decrease) in payables and
accruals (22) (7) (76)
Net cash flow from operating
activities 408 392 176
----------- ------------- ----------------
Cash flow from investing activities
Purchase of financial assets
at fair value through profit
or loss (143) (296) (143)
Sales of financial assets at
fair value through profit and
loss 16,033 1,411 961
Net cash flows from investing
activities 15,890 1,115 818
----------- ------------- ----------------
Cash flows from financing activities
Dividends paid (14,558) (1,506) (997)
Net cash flows from financing
activities (14,558) (1,506) (997)
----------- ------------- ----------------
Net increase/(decrease) in
cash and cash equivalents 1,740 1 (3)
=========== ============= ================
Reconciliation of net cash
flow to movements in cash and
cash equivalents
Cash and cash equivalents at
28 February 2015 62 61 61
Net increase/(decrease) in
cash and cash equivalents 1,740 1 (3)
Cash and cash equivalents at
31 August 2015 1,802 62 58
=========== ============= ================
The accompanying notes are an integral part of this
statement.
Notes to the Unaudited Interim Financial Report
1. Corporate information
The Unaudited Interim Financial Report of the Company for the
six months ended 31 August 2015 was authorised for issue in
accordance with a resolution of the Directors on 14 October
2015.
The Company applied for listing on the London Stock Exchange on
29 January 2010.
TP10 VCT plc is incorporated and domiciled in Great Britain. The
address of TP10 VCT plc's registered office, which is also its
principal place of business, is 18 St. Swithin's Lane, London EC4N
8AD.
TP10 VCT plc's Unaudited 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 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 cash
or cash based funds and venture capital investments focused on
companies with contractual revenues from financially secure
counterparties.
2. Basis of preparation and accounting policies
Basis of preparation
In preparation for the completion of shareholders five year
holding period, steps have been taken to realise the Company's
investments. The Board's intention will be to propose resolutions
to place the Company into Members Voluntary Liquidation after
completion of the realisation of unquoted investments which will
require shareholders approval. Thereafter all funds will be
returned to shareholders by way of capital distribution by the
liquidators. In the circumstances these Financial Statements have
been prepared on a break up basis taking into account the expected
costs of the Company's liquidation.
The Unaudited Interim Financial Report of the Company for the 6
months ended 31 August 2015 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 28 February 2015.
Estimates
The preparation of the Unaudited Interim Financial Report
requires management to make judgements, estimates and assumptions
that reflect the application of accounting policies and the
reported amounts of assets and liabilities, income and expenditure.
However, actual results may differ from these estimates.
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
Unaudited Audited Unaudited
6 months ended Year ended 6 months ended
31 August 2015 28 February 2015 31 August 2014
------------------------------- ------------------------------- -------------------------------
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
Dividends
received 1,369 - 1,369 - - - - - -
Loan stock
interest 366 - 366 1,022 - 1,022 523 - 523
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