Core VCT V plc ("the Company")
Half-Yearly Report for the six months ended 30 June 2008
Investment Objective
Core VCT V plc ("Core VCT V", "the Company" or "the Fund") is a tax efficient
listed company which aims to achieve an attractive yield from its underlying
investments (`Mezzanine and Private Equity Investments'), to be distributed to
shareholders as tax free dividends of both income and capital gains over time.
Core VCT V will invest alongside Core VCT IV plc, and has a co-investment
policy with the other Core VCTs managed by Core Capital LLP (`the Manager' or
`Core Capital').
Investment Approach
Core Capital invests primarily in:
* Established, private companies, which show sufficient operating critical
mass, with an established economic model, and able, motivated management
teams with the key skills in place to deliver a well-defined business plan
* Total investment sizes are typically �3 - �8 million, of which �1 - �3
million may typically be provided by Core VCT V and Core VCT IV plc.
Fund Structure
Core VCT V is structured as follows :-
* No annual management fees
There are no annual management fees paid to Core Capital. Instead, Core Capital
receives a share of the investment profits generated from the underlying
investments;
* Provide attractive distributions
The Company intends to provide shareholders with an attractive level of income
by distributing all available profits generated through income and capital
gains, including the planned 30p per share distribution of the cash assets of
the fund after the third year.
Investment Policy
Core VCT V seeks to achieve its overall Investment Objective, consistent with
maintaining its qualifying status as a VCT, by pursuing the following
Investment Policy:-
Asset Allocation
The Company may invest all its assets in private companies. These investments
are unquoted, and include, but are not limited to, Management Buy-Outs (MBOs)
and Development Capital for expansion or acquisition funding for established
businesses. After 31 December 2009, the Company must have in excess of 70% of
its assets invested in Qualifying Investments as defined for VCT purposes.
However, due to the nature of completing and realising such investments, and
the need to maintain some liquid reserves, there will inevitably be periods
when a proportion of assets are not held in Unquoted investments.
Risk Management
The Company's Asset Allocation includes a potentially large proportion of the
Company's assets to be held in Unquoted Investments. These investments are not
publicly traded and there is not a liquid market for them, and therefore these
investments may be difficult to realise.
The Company manages its investment risk within the restrictions of maintaining
its qualifying VCT status by using a number of methods commonly used in the
Private Equity industry, including :-
* The active monitoring of its investments by the Manager ;
* Seeking the agreement of various rights associated with each investment,
such as board representation, information rights and veto rights;
* Seeking to hold larger investment stakes by co-investing with other funds
managed by the Manager, so as to gain more significant influence in the
investment and to facilitate investing in larger companies which may reduce
the risk compared to investing in smaller companies;
* Ensuring a spread of investments is achieved.
Gearing
The Company has the authority to borrow up to the amount paid on the issued
share capital and the amount standing to the credit of the reserves of the
Company but does not ordinarily take advantage of this authority.
As is common in the Private Equity industry, in many cases the Company makes
investments into Unquoted Companies which have, or may have, substantial
borrowings from third party lenders.
Performance Summary
Ordinary Shares 30 June 2008 30 June 2007 31 December 2007
Net asset value per share 88.51 pence 92.99 pence 92.86 pence
Total return in period per 89.01 pence 92.99 pence 92.86 pence
share 1
Share price (mid-market) 89.50 pence 100 pence 100 pence
Earnings per share (3.85) pence (1.59) pence (2.20) pence
Cumulative dividends paid per 0.50 pence 0.00 pence 0.00 pence
share since inception
Total expense ratio 2 0.87% 1.07% 2.34%
1 Total return per share comprises closing net asset value per share plus
cumulative dividends per share paid to date.
2 Total expense ratio has been calculated using total operating costs divided
by closing net assets.
Chairman's Statement
Results
The Net Asset Value (NAV) total return per Ordinary Share was 89.01p as at 30
June 2008, comprising a NAV per Ordinary Share of 88.51p and cumulative
dividends paid of 0.50p per Ordinary Share. This is a decrease over the Total
Return to 31 December 2007 of 4.15%. A deficit of �424,440 was made during the
six month period, arising from losses incurred on the non qualifying portfolio
managed by Credit Suisse. The performance is below expectations and there is an
ongoing review of this with Credit Suisse. In the meantime, the investments
made by Credit Suisse are being monitored closely to ensure that, as far as
possible, such a loss is not repeated.
Investments
The Manager's Review refers in more detail to the investment programme
generally and the prospects of the investment portfolio. This now comprises two
investments with a cost of �1.63 million and a valuation of �1.75 million, and
as at 30 June 2008 the Fund was 16.46% invested compared to the requirement to
be 70% invested by 31 December 2009 for VCT purposes.
Since the Fund was raised in April 2007, the Manager has exercised caution and
patience in completing new investments in anticipation of the worsening
economic climate which we are now experiencing. Whilst the pace of new
investments has therefore been slower than might otherwise have been the case,
your Fund has a strong liquidity position which can be used to increase the
investment pace as acquisition terms become more attractive over the next 12 -
18 months.
Dividends
Core VCT V intends to provide Shareholders with an attractive level of income
by distributing all available profits generated through income and capital
gains. Our ability to make distributions in the early years of the Fund's life
depends largely on the performance on the Cash Asset portfolio managed by
Credit Suisse; given the market conditions this has not produced sufficient
income or profits and so we are not proposing an interim dividend. Following
the year end, we would of course make a distribution of a substantial
proportion of any profits or gains, if any, earned over the remainder of this
financial year.
Developments at the Manager
Core Capital has announced a new UK-wide business partnership with Aberdeen
Asset Management plc ("Aberdeen"). This alliance is aimed at providing a wider
pool of transaction opportunities to Core Capital, and facilitating in the
completion of larger investments both of which should bring benefits to
investors. In addition, Aberdeen will administer the Core VCTs from 1 July
2008, and we hope that shareholders will benefit from improvements in our
communications in future. Further information on this important development is
contained in the Manager's Review.
Information for Shareholders
The Board supports open communication with investors and welcomes any comments
or questions you may have. As a result of Aberdeen's appointment as
administrator and company secretary, new contact details are provided at the
back of this Report.
Share Price
The Ordinary Shares (CR5) are fully listed shares and prices are available on
www.londonstockexchange.com and published daily in the Financial Times.
Shareholders are reminded that they must hold their shares for at least five
years in order to retain tax reliefs obtained. Shareholders should take advice
before acquiring or disposing of shares.
We are conscious that the mid price of the shares is at a discount to the Net
Asset Value. This discount has widened over recent months, as it has for many
other VCTs, which simply reflects the lack of liquidity in the secondary
market.
We would remind shareholders that we view the NAV Total Return, rather than the
share price, as the preferred measure of performance, as it encompasses the
value of the current portfolio and the amount of cash distributed to
shareholders over the life of their investment.
Outlook
The current economic and investment outlook is very uncertain, with sentiment
poor and liquidity, especially from banks, tightening. Our existing investments
cannot be immune from these economic pressures, although the active management
that goes into the portfolio is reaping benefits. A patient approach to
completing new investments has left the Fund with a high level of liquidity
which can be deployed over the next 18 months or so as we see the terms of new
investments becoming more attractive.
Ray Maxwell
Chairman
29 August 2008
Principal Risks and Uncertainties
The Company's assets consist of unquoted investments, securities, cash and
liquid resources. Its principal risks are therefore market risk, credit risk
and liquidity risk. Other risks faced by the Company include economic risks,
the loss of approval as a Venture Capital Trust, failure to comply with other
regulatory requirements, and broader risks such as reputational, operational
and financial risks. These risks, and the way in which they are managed, are
described in more detail in the Annual Report for the period ended 31 December
2007, in note 18 to the accounts. The Company's principal risks and
uncertainties have not changed materially since the date of that report and it
is not envisaged that there will be any changes to the risks and uncertainties
in the remaining six months of the financial year.
Related Party Transactions
Details of related party transactions in accordance with Disclosure and
Transparency Rule 4.2.8 can be found in Note 12 to the Accounts below.
Responsibility Statement
The Directors confirm that to the best of their knowledge:
a. the condensed set of financial statements have been prepared under the fair
value rules of the Companies Act 1985, applicable accounting standards, the
ASB Statement on Half-Yearly Financial Reporting and the 2003 Statement of
Recommended Practice "Financial Statements of Investment Trust Companies",
revised December 2005, and give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company, as
required by Disclosure & Transparency Rule 4.2.4; and
b. the interim management report includes a fair review of the information
required by Disclosure & Transparency Rules 4.2.7 - 8 in accordance with
Disclosure & Transparency Rule 4.2.10.
For and on behalf of the Board:
Ray Maxwell
Chairman
Co-investment scheme of the Manager
A co-investment scheme has been agreed with the Manager for implementation
during the coming year which will allow executives and members of the Manager
to invest alongside the Company. The Directors believe that the scheme will
further the alignment of interests of the executives and the Company's
shareholders by creating a mechanism for executives to make an investment in
each transaction alongside the Company. In addition, the adoption of such a
scheme brings Core Capital into line with several other leading VCT managers,
and such a scheme is becoming an accepted incentive mechanism to enable the
Manager to attract and retain high quality investment executives in a highly
competitive market.
The scheme will operate through a nominee which will facilitate the investment
alongside the Company in unquoted investments, including any follow-on
investments. In an unlisted investment, the transaction will normally be
structured such that 70% to 90% of the investment is by way of fixed interest
instrument, loan note, or preferred instrument, and 30% to 10% in ordinary
shares. The amount which will be invested by the nominee company is fixed at up
to 5% of the value of the ordinary shares which are available to the Company.
Investment Portfolio Summary
as at 30 June 2008
Date of Book cost Valuation % of net assets
initial by value
investment
�'000 �'000
Qualifying investments
(unquoted)
Colway Limited Aug-07 1,000 1,125 11.5%
(trading as London Graphic
Centre)
Office and graphics supplies
Camwatch Limited Mar-08 625 625 6.4%
Designer, supplier and
installer of detector
activated remote CCTV
monitoring systems
--------------- ------------- ---------------
Total qualifying investments 1,625 1,750 17.9%
Non qualifying investments
Short-dated fixed and variable 3,868 3,853 39.5%
rate securities
Listed securities 368 279 2.9%
Funds and trusts 1,131 1,120 11.5%
---------------- ------------- ---------------
Total non-qualifying 5,367 5,252 53.9%
investments
---------------- ------------- ---------------
Total investments 6,992 7,002 71.8%
---------------- ------------- ---------------
Other assets 2,776 28.5%
Cash balances 281 2.9%
Current liabilities (300) (3.2)%
---------------- ------------- ---------------
Net assets 9,759 100.0%
---------------- ------------- ---------------
10 Largest investments: Book cost Valuation % of net assets
by value
�'000 �'000
Colway Limited 1,000 1,125 11.5%
City Financial Investment strategic gilt 833 839 8.6%
fund (UK Government Bond fund)
Camwatch Limited 625 625 6.4%
Treasury 4% Stock 2009 408 407 4.2%
Acencia Debt Strategies Ltd (exchange 297 281 2.9%
traded debt hedge fund)
Imperial Tobacco Canada 6.5% 256 256 2.6%
note (bond)
JP Morgan International Derivatives 220 218 2.2%
instrument (structured investment
product)
BP Capital plc 5.375% medium 210 209 2.1%
term note (bond)
Network Rail Ltd 4.875% medium term note 205 204 2.1%
(bond)
GE Capital UK Funding floating 203 204 2.1%
rate note (bond)
Total 4,257 4,368 44.7%
Manager's Review
Investment Highlights
* The investment portfolio now comprises two investments with a cost of �1.63
million and a value of �1.75 million;
* Our cautious approach to investing in new transactions has resulted in a
slower investment rate, but has preserved liquidity so that we can invest
more heavily when terms for new acquisitions improve; and
* Core Capital has announced a new partnership with Aberdeen, giving us
access to additional funds and investment opportunities, and an enhanced
administrative and support infrastructure.
Investments
Since the closing of the Fund in April 2007, we have taken a cautious and
patient approach in assessing potential new investment opportunities,
anticipating that economic conditions would worsen, as we are now seeing. We
have not yet seen the prices sought for established businesses falling
sufficiently to fully reflect these conditions, and accordingly we have
completed only two investments. One of these, Camwatch, was completed in March
this year and is detailed below. We anticipate that 2009 will be a more
attractive year in which to make new investments, and that the Fund is well
placed to benefit from this timing.
Each investment is described below:
* Colway Limited
* Cost �1,000,000, Valuation �1,125,000
Colway is a long established office and graphic supplies business. Since our
original investment, the business has completed four acquisitions and we are
actively pursuing a `buy & build' model to increase the scale of this business.
Turnover has grown from �15.5 million at the date of our investment to over �20
million in the year ended 31 March 2008. Whilst we can expect some impact from
the tougher economic climate, we are planning to take advantage of further
acquisition opportunities as they arise.
* Camwatch Limited
* Cost �625,000, Valuation �625,000
Camwatch is a designer, supplier, and installer of detector activated remote
CCTV monitoring systems. It also provides a monitoring service for
predominantly its own CCTV installations in addition to those of other CCTV
providers.
Camwatch is an existing investment of Aberdeen, and is the first evidence of
the investment opportunities that are now available to us as a result of our
partnership, detailed below.
We invested a total of �1.25 million (�625,000 each) from Core VCT IV and V in
a junior secured structure, with the majority of our anticipated return being
earned through an attractive paid yield.
Developments at Core Capital
Core Capital and Aberdeen have agreed a new UK-wide business partnership, aimed
at leveraging the respective strengths of both businesses to provide the best
possible returns for our investors.
Under the terms of this agreement, Core Capital and Aberdeen will operate as
one team, sharing transactions and offering an integrated package of finance
for fast growing SMEs and will manage in excess of �200m in funds.
This alliance will bring significant benefits to investors, providing access to
a wider pool of transactions with broader geographical and risk
diversification.
Aberdeen will also provide back-office administration, accounting and investor
relations services to the Core Capital Funds and the new contact details are
set out at the back of this report.
Unaudited Income Statement
incorporating the Revenue Account of the Company for the six months ended 30
June 2008
Six months ended Period from 6 December 2006
30 June 2008 to 30 June 2007
Revenue Capital Total Revenue Capital Total
� � � � � �
Unrealised losses on - (98,037) (98,037) - (106,730) (106,730)
investments
Realised losses on - (502,557) (502,557) - (6,125) (6,125)
investments
Income 265,321 - 265,321 47,178 - 47,178
Transaction costs and (2,781) (10,265) (13,046) (1,692) (7,169) (8,861)
investment management
expense
Other expenses (72,313) - (72,313) (100,333) - (100,333)
------------- ------------- ------------- ----------------- ------------- -------------
Return/(loss) on 190,227 (610,859) (420,632) (54,847) (120,024) (174,871)
ordinary activities
before taxation
Tax on ordinary (17,057) 13,249 (3,808) - - -
activities
------------ ------------- ------------- ----------------- ------------- -------------
Return/(loss) 173,170 (597,610) (424,440) (54,847) (120,024) (174,871)
attributable to equity
shareholders
Return/(loss) per 0.01p 1.57p (5.42)p (3.85)p (0.50)p (1.09)p (1.59)p
Ordinary share
Period from 6 December 2006 to 31
December 2007
(audited)
Revenue Capital Total
� � �
Unrealised losses - (89,581) (89,581)
on investments
Realised losses on - (93,037) (93,037)
investments
Income 253,515 - 253,515
Transaction costs (4,608) (53,584) (58,192)
and investment
management expense
Other expenses (180,988) - (180,988)
------------- ------------- -------------
Return/(loss) on 67,919 (236,202) (168,283)
ordinary activities
before taxation
Tax on ordinary - - -
activities
------------- ------------- -------------
Return/(loss) 67,919 (236,202) (168,283)
attributable to
equity shareholders
Return/(loss) per 0.89p (3.09)p (2.20)p
0.01p Ordinary
share
Unaudited Balance Sheet
as at 30 June 2008
As at As at As at
30 June 2008 30 June 2007 31 December 2007
(unaudited) (unaudited) (audited)
� � �
Fixed assets
Investments at fair value 7,002,001 5,094,408 7,018,219
------------------------ ------------------------ ------------------------
Current assets
Debtors and prepayments 2,775,672 2,775,251 2,655,525
Cash at bank 280,994 2,509,423 741,118
------------------------ ------------------------ ------------------------
3,056,666 5,284,674 3,396,643
Creditors: amounts (299,919) (97,356) (176,549)
falling due within one
year
------------------------ ------------------------ ------------------------
Net current assets 2,756,747 5,187,318 3,220,094
------------------------ ------------------------ ------------------------
Net assets 9,758,748 10,281,726 10,238,313
------------------------ ------------------------ ------------------------
Capital and reserves
Called up share capital 1,102 1,106 1,102
Share premium account - 10,455,491 -
Capital reserve - (843,916) (13,294) (146,621)
realised
Capital reserve - 10,104 (106,730) (89,581)
unrealised
Special distributable 10,405,494 - 10,405,494
reserve
Revenue reserve 185,964 (54,847) 67,919
------------------------ ------------------------ ------------------------
Total equity 9,758,748 10,281,726 10,238,313
shareholders' funds
------------------------ ------------------------ ------------------------
Net asset value per share
Net asset per 0.01p 88.51p 92.99p 92.86p
ordinary share
Unaudited Reconciliation of Movements in Shareholders' Funds
for the six months ended 30 June 2008
Six months ended Period from Period from
30 June 2008 6 December 2006 to 30 6 December 2006 to 31
June 2007 December 2007
(unaudited) (unaudited) (audited)
� � �
Opening shareholders' 10,238,313 - -
funds
Net share capital - 10,456,597 10,406,596
subscribed for in the
period
Dividend paid (55,125) - -
Loss for the period (424,440) (174,871) (168,283)
---------------------- --------------------- ---------------------
Closing Shareholders' 9,758,748 10,281,726 10,238,313
funds at 30 June 2008
---------------------- --------------------- ---------------------
Unaudited Summarised Cash Flow Statement
for the six months ended 30 June 2008
Six months Period from Period from
ended
6 December 6 December 2006
30 June 2008 2006 to 30
June 2007 to 31 December
2007
(unaudited) (unaudited) (audited)
Notes � � �
Operating activities
Income received 150,623 230 235,824
Management fees paid (11,124) (2,093) (14,707)
Other cash payments (148,377) (23,048) (85,758)
------------- ------------- -------------
Net cash outflow (8,878) (24,911) 135,359
from operating
activities
Acquisitions of (4,405,358) (5,873,888) (8,819,500)
investments
Disposals of 9 4,009,237 666,625 1,618,663
investments
------------- ------------- -------------
Net cash outflow (396,121) (5,207,263) (7,200,837)
from investing
activities
Dividends
Equity dividends (55,125) - -
paid
------------- ------------- -------------
Cash outflow before (460,124) (5,232,174) (7,065,478)
financing and liquid
resource management
Financing
Share capital raised - 8,341,219 8,406,218
Issue costs of - (599,622) (599,622)
ordinary shares
------------- ------------- -------------
Net inflow from - 7,741,597 7,806,596
financing
------------- ------------- -------------
(Decrease)/increase (460,124) 2,509,423 741,118
in cash for the
period
======= ======= =======
Reconciliation of net return/(loss) on ordinary activities before taxation to
net cash inflow from operating activities
For the six months ended 30 June 2008
Six months to Period from Period from
30 June 2008 6 December 6 December 2006
2006 to 30
June 2007 to 31 December
2007
(unaudited) (unaudited) (audited)
� � �
Net revenue/(loss) before 190,227 (54,847) 67,919
taxation
Investment management (10,265) (7,169) (53,584)
fees charged to capital
Increase in debtors (120,146) (60,251) (55,525)
(Decrease)/increase in (68,694) 97,356 176,549
creditors
------------- ------------- -------------
Net cash (outflow)/inflow (8,878) (24,911) 135,359
from operating activities
Unaudited Notes to the Financial Statements
1. Principal accounting policies
A summary of the principal accounting policies, all of which have been applied
consistently throughout the period, is set out below:
a) Basis of accounting
The accounts have been prepared under the fair value rules of the Companies Act
1985, and in accordance with applicable accounting standards consistent with
the accounting policies set out in the audited statutory accounts for the year
ended 31 December 2007 and, to the extent that it does not conflict with the
Companies Act 1985 and UK accounting standards, the 2003 Statement of
Recommended Practice, `Financial Statements of Investment Trust Companies',
revised December 2005.
The Half-Yearly report has not been audited, nor has it been reviewed by the
auditors pursuant to the Auditing Practices Board (APB)'s guidance on Review of
Interim Financial Information.
b) Presentation of the Income Statement
In order to better reflect the activities of a VCT and in accordance with the
SORP, supplementary information which analyses the Income Statement between
items of a revenue and capital nature has been presented alongside the total
column. The revenue return is the measure the Directors believe appropriate in
assessing the Company's compliance with certain requirements set out in Section
274 Income Tax Act 2007.
c) Investments
All investments held by the Company are classified as at "fair value through
profit and loss". For investments actively traded in organised financial
markets, fair value is generally determined by reference to Stock Exchange
market quoted bid prices at the close of business on the balance sheet date.
Unquoted investments are valued by the Directors in accordance with the
following rules, which are consistent with the International Private Equity
Venture Capital Valuation (IPEVCV) guidelines published in 2005:
(i) Investments which have been made in the last 12 months are at fair value,
which unless another methodology gives a better indication of fair value, will
be at cost.
(ii) Investments in companies at an early stage of their development are valued
at fair value, which unless another methodology gives a better indication of
fair value, will be at cost.
(iii) Where investments have gone beyond the stage in their development in (ii)
above, the shares may be valued, in the absence of overriding factors, by
applying a suitable price-earnings ratio to that company's historic, current or
forecast earnings (the ratio used being based on a comparable listed company or
sector but the resulting value being discounted to reflect lack of
marketability). Where overriding factors apply, alternative methods of
valuation will be used. These will include the application of a material arms
length transaction by an independent third party, cost, cost less provision for
impairment, discounted cash flow, or a net asset basis;
(iv) Where a value is indicated by a material arms-length transaction by a
third party in the shares of a company, this value will be used.
(v) Where a company's underperformance against plan indicates a permanent
diminution in the value of the investment, provision against cost is made and
charged to the realised capital reserve.
d) Transactions costs and investment management expense
The Company is responsible for any external costs such as legal or accounting
fees incurred on transactions that do not proceed to completion. Such
transaction costs, along with other transaction costs, are charged 100% against
capital.
75% of the investment management expense payable to Credit Suisse is charged
against capital. This is in line with the Board's expected long-term split of
returns from the investment portfolio of the Company.
e) Income
Dividends receivable on quoted equity shares are brought into account on the
ex-dividend date. Dividends receivable on unquoted equity shares are brought
into account when the Company's right to receive payment is established and
there is no reasonable doubt that payment will be received. Fixed returns on
non-equity shares 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. Fixed returns on debt securities are recognised on a
time-apportioned basis so as to reflect the effective yield. Provisions are
made against such income receivable as soon as it is considered doubtful that
such income will be received.
f) Expenses
All expenses are accounted for on an accruals basis. Expenses are charged
wholly to revenue, with the exception of expenses incidental to the acquisition
or disposal of an investment, which are charged to the capital column of the
Income Statement.
g) Taxation
Deferred tax is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date where transactions or
events that result in an obligation to pay more tax in the future or a right to
pay less tax in the future have occurred at the balance sheet date. Timing
differences are differences between the Company's taxable profits and its
results as stated in the financial statements.
Deferred tax is measured at the average tax rates that are expected to apply in
the years in which the timing differences are expected to reverse based on tax
rates and laws that have been enacted or substantially enacted at the balance
sheet date. Deferred tax is measured on a non-discounted basis.
Any tax relief obtained in respect of management fees allocated to capital is
reflected in the capital reserve - realised and a corresponding amount is
charged against revenue. The tax relief is the amount by which corporation tax
payable is reduced as a result of these capital expenses.
2. The revenue column of the Income Statement is the profit and loss account of
the Company. There were no other gains and losses in the period ended 30 June
2008.
3. All revenue and capital items in the above Income Statement derive from
continuing operations.
4. Earnings for the six months to 30 June 2008 should not be taken as a guide
to the results for the year ending 31 December 2008.
5. Included in debtors and prepayments is �2,600,000 of called up share capital
unpaid as at 30 June 2008, in accordance with the arrangements set out in the
prospectus.
6. Income
Six months ended 30 Period from Period from
June 2008
6 December 2006 to 30 6 December 2006 to 31
June 2007 December 2007
(unaudited) (unaudited) (audited)
� � �
From:
Dividends from listed 1,557 12,016 29,241
investments
Dividends from 94,754 - 97,446
unlisted investments
Interest from loan 106,920 - 48,424
stock
Interest from fixed 41,254 - -
and variable
securities
Bank interest 20,836 35,162 78,404
--------------------- --------------------- ---------------------
265,321 47,178 253,515
7. Taxation
The effective tax rate is (0.9%) arising upon the negative total return.
Although the tax charge has been reduced by non taxable income and tax losses
brought forward, it has been increased by capital losses that do not attract
tax relief. The net impact of these factors gives rise to a small charge to
taxation, despite an overall negative total return for the period.
8. Earnings and return per share
Six months ended 30 Period from Period from
June 2008
6 December 2006 6 December 2006
to 30 June 2007 to 31 December 2007
(unaudited) (unaudited) (audited)
� � �
i) Total earnings (424,440) 174,871 (168,283)
after taxation
Basic earnings per (3.85)p 1.59p (2.20)p
share
ii) Net revenue from 173,170 (54,847) 67,919
ordinary activities
after taxation
Revenue return per 1.57p (0.50)p 0.89p
share
Net unrealised (98,037) (106,730) (89,581)
capital losses
Realised capital (502,557) (6,125) (93,037)
losses
Capital expenses 2,984 (7,169) (53,584)
--------------------- --------------------- ---------------------
iii) Total capital (597,610) (120,024) (236,202)
return
Capital return per (5.42)p (1.09)p (3.09)p
share
iv) Weighted average 11,024,969 11,056,219 7,650,581
number of shares in
issue in the period
9. Summary of investments during the period
Unlisted Loan stock Listed Fixed and Funds and t Total
ordinary investments variable rusts
shares rate
securities
� � � � � �
Valuation at 124,000 1,000,000 2,426,014 - 3,468,205 7,018,219
1 January 2008
Purchases at 187,500 437,500 100,640 3,867,973 - 4,593,613
cost
Sales - proceeds - - (2,037,218) - (1,972,019) (4,009,237)
- realised - - (183,582) - (318,975) (502,557)
losses
Movement in 1,000 - (27,559) (14,745) (56,733) (98,037)
unrealised gains
/(losses)
-------------- ------------ ---------------- ------------ ------------- -------------
Valuation at 312,500 1,437,500 278,295 3,853,228 1,120,478 7,002,001
30 June 2008
-------------- ------------ ---------------- ------------ ------------- -------------
Book cost at 487,500 1,137,500 367,955 3,867,974 1,130,969 6,991,898
30 June 2008
Unrealised (175,000) 300,000 (89,660) (14,746) (10,491) 10,103
losses at 30
June 2008
-------------- ------------ ---------------- ------------ ------------- -------------
Valuation at 312,500 1,437,500 278,295 3,853,228 1,120,478 7,002,001
30 June 2008
10. Capital and reserves
Called-up Realised Unrealised Special Revenue Total
ordinary capital distributable reserve
share reserve reserve
capital
� � � � � �
At 1 January 1,102 (146,621) (89,581) 10,405,494 67,919 10,238,313
2008
Unrealised - - (98,037) - - (98,037)
movement in fair
value
Realisation of - (197,722) 197,722 - - -
previously
unrealised
movement in fair
value
Capital losses - (502,557) - - - (502,557)
Transaction - 4,906 - - - 4,906
costs less tax
charge
Costs of - (1,922) - - - (1,922)
investment
transactions
Equity dividends - - - - (55,125) (55,125)
Retained net - - - - 173,170 173,170
revenue for the
period
------------ ----------- ------------- -------------- ----------- -------------
At 30 June 2008 1,102 (843,916) 10,104 10,405,494 185,965 9,758,748
11. Net asset value
As at As at As at
30 June 2008 30 June 2007 31 December 2007
(unaudited) (unaudited) (audited)
� � �
Net assets 9,758,748 10,281,726 10,238,313
Number of shares in 11,024,969 11,056,219 11,024,969
issue
Net asset value per 88.51p 92.99p 92.86p
share
12. Related Party Transactions
Stephen Edwards is a Member of the Manager, Core Capital LLP, which received a
fee of �nil (30 June 2007: �nil, 31 December 2007: �35,959). Details of the
carried interest arrangements between the Company and the Manager are set out
in the Annual Report.
The manager received a fee of 5.5% of the gross proceeds of the Offer,
equalling �nil (30 June 2007: �599,622, 31 December 2007: �599,622).
13. The financial information for the six months ended 30 June 2008 and the
period ended 30 June 2007 has neither been audited nor reviewed. The
information for the year ended 31 December 2007 does not comprise full
financial statements within the meaning of Section 240 of the Companies Act
1985. The financial statements for the year ended 31 December 2007 have been
filed with the Registrar of Companies. The auditors have reported on these
financial statements and that report was unqualified and did not contain a
statement under Section 237(2) of the Companies Act 1985. The accounting
policies used by Core VCT V plc in preparing the Half-Yearly Report are
consistent with those used in preparing the statutory accounts for the year
ended 31 December 2007.
14. Copies of this statement are being sent to all shareholders. Further copies
are available free of charge from the Company's registered office, One Bow
Churchyard, London EC4M 9HH.
Shareholder enquiries:
For information on your holding, to notify the Company of a change of address
or to request a dividend mandate form (should you wish to have future dividends
paid directly into your bank account) please contact the Company's Registrars,
Share Registrars Limited, Suite E, First Floor, 9 Lion & Lamb Yard, Farnham,
Surrey GU9 7LL (telephone: 01252 821390) or should you prefer visit their
website at www.shareregistrars.uk.com.
For enquiries concerning the performance of the Company, please contact the
Investment Manager at Core Capital LLP:
Stephen Edwards on 020 7317 0150 or by e-mail on Stephen.Edwards@Core-Cap.com
Walid Fakhry on 020 7317 0145 or by e-mail on Walid.Fakhry@Core-Cap.com
For other Shareholder enquiries, including the sale of shares, please contact
the Company Secretary and Administrator, Aberdeen Asset Management plc,
Sutherland House, 149 St Vincent Street, Glasgow G2 5NW (telephone 0845 300
2830) or alternatively visit their website www.aberdeen-asset.com, email:
vcts@aberdeen-asset.com.
Corporate Information
Directors Stockbroker
Ray Maxwell (Chairman) Brewin Dolphin Securities Limited
Paul Richards PO Box 512
Stephen Edwards National House, St Ann Street
Manchester M60 2EP
All of whom are non-executive and of: Solicitors
One Bow Churchyard SJ Berwin
London 10 Queen Street Place
EC4M 9HH London
EC4R 1BE
Secretary and administrator Bankers
Aberdeen Asset Management plc Bank of Scotland
Sutherland House PO Box No. 39900 Level 7
149 St Vincent Street Bishopsgate Exchange
Glasgow 155 Bishopsgate
G2 5NW London EC2M 3YB
Investment Manager Receiving Agent
Core Capital LLP The City Partnership (UK) Limited
103 Baker Street Box 41
London 196 Rose Street
W1U 6LN Edinburgh
EH2 4AT
Auditors Cash Assets Investment Manager
Ernst & Young LLP Credit Suisse
1 More London Place Private Banking, London Branch
London 17th Floor
SE1 2AF 1 Cabot Square
London E14 4QJ
VCT Tax Adviser Registrars
PricewaterhouseCoopers LLP Share Registrars Limited
1 Embankment Place Suite E, First Floor
London 9 Lion & Lamb Yard
WC2N 6RH Farnham
Surrey GU9 7LL
www.core-cap.com Company No : 5957415
END
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