TIDMTP7V

RNS Number : 8808Q

TP70 2010 VCT PLC

18 October 2013

TP70 2010 VCT plc

Interim Results

The directors of TP70 2010 VCT plc are pleased to announce its Interim results for the six months to 31 August 2013.

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

Unaudited Interim Financial Report - Financial Summary

 
                                   Unaudited       Audited        Unaudited 
                              6 months ended    Year ended   6 months ended 
                                               28 February        31 August 
                              31 August 2013          2013             2012 
                                     GBP'000       GBP'000          GBP'000 
 Net assets                            7,417         7,601            7,485 
 Net asset value per share            84.81p        86.91p           85.58p 
---------------------------  ---------------  ------------  --------------- 
 Net loss before tax                   (184)            69             (47) 
 Loss per share                      (2.10p)         0.79p          (0.54p) 
---------------------------  ---------------  ------------  --------------- 
 

TP70 2010 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 October 2009 and raised GBP8.3 million (net of expenses) through an offer for subscription which closed on 31 May 2010.

Unaudited Interim Financial Report - Chairman's Statement

I am writing to you to present the Unaudited Interim Financial Report for TP70 2010 VCT plc ("the Company") for the 6 months ended 31 August 2013.

Portfolio Construction

We are pleased to report that the Company's funds are 99.7% invested, in a portfolio of qualifying and non-qualifying unquoted investments. The qualifying investments include companies which generate renewable electricity from roof-mounted solar photovoltaic panels (investments which will benefit from long-term, index linked revenues) and a company which provides cinema digitisation. These investments were selected for their ability to yield high quality, predictable cash flows.

The Company's portfolio of qualifying investments accounts for 77% of its net assets, thus maintaining its VCT qualifying status by satisfying the test of being at least 70% invested in VCT qualifying investments. The balance of the Company's investments is exposed to the GAM Trading strategy in accordance with the investment policy set out in the prospectus.

More information on the Company's investment portfolio is given in the Investment Manager's Review.

Net Asset Value

Running costs have exceeded loan interest from investments and the value of the investment in GAM has fallen during the period. As a result the Company made a loss of 2.10p per share. At 31 August 2013 the Net Asset Value ("NAV") per share stood at 84.81p per share.

Risks

The Board believes that the principal risks facing the Company are:

-- investment risk associated with exposure to GAM;

-- investment risk associated with VCT qualifying investments; and

-- failure to maintain approval as a VCT.

The Board believes these risks are manageable and, with the Investment Manager, continues to work to minimise both the likelihood or potential impact of these risks, within the scope of the Company's established investment strategy. Further details of how these risks are managed are provided within the Directors' Report and the notes to the Financial Statements.

Outlook

With the VCT Qualifying Investment portfolio established, the Company's focus is the ongoing management and monitoring of these investments by the Investment Manager and eventually their realisation, together with the ongoing monitoring of the Company's GAM exposure.

If you have any questions or comments, please do not hesitate to telephone Triple Point Investment Management LLP on 020 7201 8989.

Charles Metcalfe

Chairman

18 October 2013

Unaudited Interim Financial Report - Investment Manager's Review

At 31 August 2013, qualifying investments represented 77% of total investments.

The overall portfolio comprises investments in 14 small, unquoted companies which operate in two sectors: cinema digitisation and renewable electricity generation from solar PV, anaerobic digestion and landfill gas.

Each of these investments meets Triple Point's investment criteria, with projected revenues generated by good quality customers and the potential for steady returns. Investments in both sectors have been made with the benefit of rigorous selection criteria, including extensive due diligence and expert technical assessment and are subject to continuous stringent review.

Sector Analysis

The unquoted qualifying investment portfolio can be analysed as follows:

 
                                                         Electricity Generation 
                                                      Solar    Anaerobic    Landfill   Total Qualifying 
 Industry Sector               Cinema Digitisation      PV      Digestion      Gas        Investments 
----------------------------  --------------------                                    ----------------- 
                                           GBP'000   GBP'000      GBP'000    GBP'000            GBP'000 
----------------------------  --------------------  --------  -----------  ---------  ----------------- 
 Investments at 28 February 
  2013                                       1,000     3,392          725        640              5,757 
----------------------------  --------------------  --------  -----------  ---------  ----------------- 
 Investments at 31 August 
  2013                                       1,000     3,392          725        640              5,757 
----------------------------  --------------------  --------  -----------  ---------  ----------------- 
 Qualifying Investments 
  %                                         17.37%    58.92%       12.59%     11.12%            100.00% 
----------------------------  --------------------  --------  -----------  ---------  ----------------- 
 

There has been no change in the carrying value of the Company's unquoted investments during the period.

VCT Sector Portfolio

Cinema Digitisation

The business in the portfolio that owns, maintains and operates digital equipment in cinemas in the UK, Italy and Ireland continues to perform in line with its objectives. Digital cinema projection conversion is paid for under the globally recognised Virtual Print Fee model, through which film studios pay for the cost of the deployment over a number of years. The majority of the revenues come from the six major investment grade Hollywood Studios. Film booking rates are significantly ahead of base line projections.

Solar PV

The Company's investment portfolio includes 10 holdings in businesses generating renewable electricity from residential solar PV panels. The solar businesses derive their revenues from the receipt of index-linked Feed-in Tariffs (FiTs). The performance of each of these businesses is closely monitored by Triple Point. We are pleased to report that the solar investment portfolio continues to perform in line with expectations.

Anaerobic Digestion

Funds are invested in one renewable energy generating company which operates a 1 MW anaerobic digestion plant. The plant uses agricultural feed stocks to generate electricity for sale to a utility company. The electricity generation also attracts Feed-in Tariffs which provide RPI linked revenues for a 20 year period from commissioning. The high rainfall and resultant poor maize harvest in 2012 contributed to underperformance of the plant over the last year. Recent indicators are that this year's harvest will be significantly better.

Landfill Gas

The Company was able to take advantage of the opportunity to fund businesses seeking to generate renewable electricity from landfill gas from sites owned by public bodies in Northern Ireland, which gives access to long term, reliable cash flows generated from strong counterparties through Government enshrined legislation (ROCs), the sale of electricity to a utility company and the potential for sale of electricity to local authorities. Craigahulliar Energy Ltd's plant started to generate electricity for export to the National Grid in December 2012 and Aeris Power Ltd's first project is under construction.

GAM Review

GAM reported as follows for the period under review:

GAM Trading II GBP 1.25 XL lost 5.11 % in the 6 months to 31 August 2013. Over the same period, the HFRI/HFRX Global Hedge Fund Index gained 1.12%.

GAM report that in 2013 GAM Trading II has been running with higher risk-taking levels than in recent years, which are more in line with the fund's long-term average of 4-7% annualised volatility. This level of risk-taking was rewarded in the first quarter of 2013 and the beginning of the second quarter as fund performance rose above 8% by 20 May. However, since mid-May, GAM has reported reversals across many markets and GAM Trading II has given back most of its gains and was up less than 1% year-to-date through the end of the second quarter. Choppy trading conditions continued in July and August.

While performance drawdowns are never a pleasant experience, they are best viewed within a historic framework. In analysing previous drawdowns in GAM Trading II, GAM is confident that the fund should rebound and generate strong returns over the coming quarters. As constraints from government and central bank influences in markets decline and there is more economic visibility, there is a more confident outlook.

Aside from the increased risk levels and the historic success of GAM Trading II in regaining performance, GAM sees many opportunities for its managers today which have been absent for some time. GAM Trading II is well positioned to take advantage of the rich opportunity set to deliver performance in line with the fund's historically stronger years.

Outlook

We continue to work closely with the management of all portfolio businesses to ensure that that they continue to meet the Company's investment strategy and objectives for shareholders. This combined with GAM Trading forms the investment strategy for the Company.

If you have any questions, please do not hesitate to call us on 020 7201 8990.

Claire Ainsworth

Managing Partner

for Triple Point Investment Management LLP

18 October 2013

Unaudited Interim Financial Report - Investment Portfolio

 
                                            Unaudited                              Audited 
                                         31 August 2013                       28 February 2013 
                              ------------------------------------  ------------------------------------ 
 
                                        Cost           Valuation              Cost           Valuation 
                               GBP'000        %   GBP'000        %   GBP'000        %   GBP'000        % 
 Unquoted Investments 
 Qualifying holdings             5,665    74.26     5,757    76.89     5,665    73.94     5,757    75.18 
 Non Qualifying holdings: 
 GAM Exposure 
 GAM Trading II GBP 1.25XL         711     9.32       705     9.42       711     9.28       743     9.70 
 Derivative                      1,230    16.12     1,003    13.39     1,230    16.06     1,104    14.42 
 Financial assets at 
  fair value through profit 
  or loss                        7,606    99.70     7,465    99.70     7,606    99.28     7,604    99.30 
 Cash and cash equivalents          23     0.30        23     0.30        52     0.72        52     0.70 
                                 7,629   100.00     7,488   100.00     7,658   100.00     7,656   100.00 
                              ========  =======  ========  =======  ========  =======  ========  ======= 
 
 Unquoted Qualifying 
  Holdings 
 Cinema Digitisation 
 DLN Digital Ltd                 1,000    13.11     1,000    13.35     1,000    13.06     1,000    13.06 
 Electricity Generation 
 Solar 
 AH Power Ltd                      400     5.24       385     5.14       400     5.22       385     5.03 
 Arraze Ltd                        500     6.55       523     6.98       500     6.53       523     6.83 
 Bandspace Ltd                     500     6.55       542     7.24       500     6.53       542     7.08 
 Bridge Power Ltd                  250     3.28       261     3.49       250     3.26       261     3.41 
 Core Generation Ltd               250     3.28       261     3.49       250     3.26       261     3.41 
 Druman Green Ltd                  250     3.28       259     3.46       250     3.26       259     3.38 
 Fellman Solar Ltd                 250     3.28       256     3.42       250     3.26       256     3.34 
 Haul Power Ltd                    250     3.28       264     3.53       250     3.26       264     3.45 
 Helioflair Ltd                    400     5.24       383     5.11       400     5.22       383     5.00 
 Trym Power Ltd                    250     3.28       258     3.45       250     3.26       258     3.37 
 Anaerobic Digestion 
 Katharos Organic Ltd              725     9.50       725     9.68       725     9.47       725     9.47 
 Landfill Gas 
 Aeris Power Ltd                   400     5.24       400     5.34       400     5.22       400     5.22 
 Craigahulliar Energy 
  Ltd                              240     3.15       240     3.21       240     3.13       240     3.13 
                                 5,665    74.26     5,757    76.89     5,665    73.94     5,757    75.18 
                              ========  =======  ========  =======  ========  =======  ========  ======= 
 
 

Unaudited Interim Financial Report - Directors' Responsibility Statement

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 31 August 2013, 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.

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.

Charles Metcalfe

Chairman

18 October 2013

Unaudited Statement of Comprehensive Income

 
                                                 Unaudited                       Audited                     Unaudited 
 `                                          6 months ended                    Year ended                6 months ended 
                                            31 August 2013              28 February 2013                31 August 2012 
                              ----------------------------  ----------------------------  ---------------------------- 
                        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          93         -        93       177         -       177        86         -        86 
 Loss arising on the 
  disposal 
  of investments 
  during the 
  period                             -       (5)       (5)         -      (31)      (31)         -       (4)       (4) 
 (Loss)/gain arising 
  on 
  the revaluation of 
  investments 
  at the period end                  -     (139)     (139)         -       196       196         -         5         5 
 Investment return                  93     (144)      (51)       177       165       342        86         1        87 
                              --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Expenses 
 Investment 
  management fees        5          60        20        80       124        41       165        20        59        79 
 Financial and 
  regulatory 
  costs                             14         -        14        20         -        20        11         -        11 
 General 
  administration                     3         -         3        11         -        11         3         -         3 
 Legal and 
  professional 
  fees                              16         -        16        37         -        37        21         -        21 
 Directors' 
  remuneration           6          20         -        20        40         -        40        20         -        20 
 Operating expenses                113        20       133       232        41       273        75        59       134 
                              --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Operating 
  (loss)/profit 
  before taxation                 (20)     (164)     (184)      (55)       124        69        11      (58)      (47) 
 Taxation                7           -         -         -         -         -         -         -         -         - 
 Operating 
  (loss)/profit 
  after taxation                  (20)     (164)     (184)      (55)       124        69        11      (58)      (47) 
                              --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Total comprehensive 
  (loss)/profit 
  for the period                  (20)     (164)     (184)      (55)       124        69        11      (58)      (47) 
                              --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Basic & diluted 
  (loss)/earnings 
  per share              8     (0.22p)   (1.88p)   (2.10p)   (0.61p)     1.40p     0.79p     0.12p   (0.66p)   (0.54p) 
                              --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 

The total column of this statement represents the Company's Statement of Comprehensive Income, prepared in accordance with International Financial Reporting Standards ("IFRS"). The supplementary revenue and capital columns are 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 this statement.

Unaudited Balance Sheet

 
                                         Unaudited       Audited   Unaudited 
                                         31 August   28 February   31 August 
                                              2013          2013        2012 
                                  Note     GBP'000       GBP'000     GBP'000 
 
 Non current assets 
 Financial assets at fair 
  value through profit or 
  loss                                       7,465         7,604       7,396 
                                             7,465         7,604       7,396 
                                        ----------  ------------  ---------- 
 Current assets 
 Receivables                                    90            68         168 
 Forward contracts                               -             -           - 
 Cash and cash equivalents         9            23            52          77 
                                               113           120         245 
                                        ----------  ------------  ---------- 
 Total assets                                7,578         7,724       7,641 
                                        ----------  ------------  ---------- 
 
 Current liabilities 
 Payables and accrued expenses                 161           123         156 
                                               161           123         156 
                                        ----------  ------------  ---------- 
 
 Net assets                                  7,417         7,601       7,485 
                                        ==========  ============  ========== 
 
 Equity attributable to 
  equity holders 
 Share capital                     10           87            87          87 
 Special distributable 
  reserve                                    8,225         8,225       8,225 
 Capital reserve                             (609)         (445)       (627) 
 Revenue reserve                             (286)         (266)       (200) 
 Total equity                                7,417         7,601       7,485 
                                        ==========  ============  ========== 
 Net asset value per share 
  (pence)                          11       84.81p        86.91p      85.58p 
                                        ==========  ============  ========== 
 

The accompanying notes are an integral part of this statement.

Unaudited Statement of Changes in Shareholders' Equity

 
                                                      Special 
                                       Issued   Distributable   Capital   Revenue 
                                      Capital         Reserve   Reserve   Reserve     Total 
                                      GBP'000         GBP'000   GBP'000   GBP'000   GBP'000 
 6 months ended 31 August 2013 
 Balance at 1 March 2013                   87           8,225     (445)     (266)     7,601 
                                     --------  --------------  --------  --------  -------- 
 Loss after tax                             -               -     (164)      (20)     (184) 
 Total comprehensive loss for 
  the period                                -               -     (164)      (20)     (184) 
                                     --------  --------------  --------  --------  -------- 
 Balance at 31 August 2013                 87           8,225     (609)     (286)     7,417 
                                     ========  ==============  ========  ========  ======== 
 Capital Reserve consists of: 
 Investment holding losses                                        (141) 
 Other realised losses                                            (468) 
                                                                  (609) 
                                                               -------- 
 
                                       Issued         Special   Capital   Revenue 
                                      Capital   Distributable   Reserve   Reserve     Total 
                                      GBP'000         Reserve   GBP'000   GBP'000   GBP'000 
 Year ended 28 February 2013                          GBP'000 
 Balance at 1 March 2012                   87           8,225     (569)     (211)     7,532 
 Profit/(loss) after tax                    -               -       124      (55)        69 
 Total comprehensive profit/(loss) 
  for the year                              -               -       124      (55)        69 
                                     --------  --------------  --------  --------  -------- 
 Balance at 28 February 2013               87           8,225     (445)     (266)     7,601 
                                     ========  ==============  ========  ========  ======== 
 Capital Reserve consists of: 
 Investment holding losses                                          (2) 
 Other realised losses                                            (443) 
                                                                  (445) 
                                                               -------- 
 
                                                      Special 
                                       Issued   Distributable   Capital   Revenue 
                                      Capital         Reserve   Reserve   Reserve     Total 
                                      GBP'000         GBP'000   GBP'000   GBP'000   GBP'000 
 6 months ended 31 August 2012 
 Balance at 1 March 2012                   87           8,225     (569)     (211)     7,532 
 (Loss)/profit after tax                    -               -      (58)        11      (47) 
 Total comprehensive (loss)/profit 
  for the period                            -               -      (58)        11      (47) 
                                     --------  --------------  --------  --------  -------- 
 Balance at 31 August 2012                 87           8,225     (627)     (200)     7,485 
                                     ========  ==============  ========  ========  ======== 
 Capital Reserve consists of: 
 Investment holding losses                                        (260) 
 Other realised losses                                            (367) 
                                                                  (627) 
                                                               -------- 
 

The capital reserve represents the proportion of Investment Management fees charged against capital and realised or unrealised gains or losses on investments credited/charged to capital reserve in the current or previous periods. 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 reserve are distributable by way of dividend.

The accompanying notes are an integral part of these statements.

Unaudited Statement of Cash Flows

 
                                              Unaudited       Audited        Unaudited 
                                         6 months ended    Year ended   6 months ended 
                                              31 August   28 February 
                                                   2013          2013   31 August 2012 
                                                GBP'000       GBP'000          GBP'000 
 Cash flows from operating activities 
 (Loss)/profit before taxation                    (184)            69             (47) 
 Loss arising on the disposal 
  of investments in the period                        -            31                4 
 Loss/(gain) arising on the 
  revaluation of investments 
  at the period end                                 139         (196)              (5) 
 Cash absorbed by operations                       (45)          (96)             (48) 
 (Increase) in receivables                         (22)          (12)            (112) 
 Increase in creditors                               38            69              102 
 Net cash flows from operating 
  activities                                       (29)          (39)             (58) 
                                        ---------------  ------------  --------------- 
 Cash flows from investing activities 
 Purchase of financial assets 
  at fair value through profit 
  or loss                                             -       (3,076)          (2,365) 
 Disposal proceeds of financial 
  assets at fair value through 
  profit or loss                                      -         2,613            1,946 
 Net cash flows from investing 
  activities                                          -         (463)            (419) 
                                        ---------------  ------------  --------------- 
 Net decrease in cash and cash 
  equivalents                                      (29)         (502)            (477) 
                                        ===============  ============  =============== 
 Reconciliation of net cash 
  flow to movements in cash and 
  cash equivalents 
 Cash and cash equivalents at 
  1 March 2013                                       52           554              554 
 Net decrease in cash and cash 
  equivalents                                      (29)         (502)            (477) 
 Cash and cash equivalents at 
  31 August 2013                                     23            52               77 
                                        ===============  ============  =============== 
 

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 6 months ended 31 August 2013 was authorised for issue in accordance with a resolution of the Directors on 18 October 2013.

The Company is listed on the London Stock Exchange.

TP70 2010 VCT plc is incorporated and domiciled in Great Britain. The address of TP70 2010 VCT plc's registered office, which is also its principal place of business, is 4-5 Grosvenor Place, London, SW1X 7HJ.

TP70 2010 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 GAM's Trading strategy 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 Unaudited Interim Financial Report of the Company for the 6 months ended 31 August 2013 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 2013.

Estimates

The preparation of the Unaudited Interim 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 2013              28 February 2013                31 August 2012 
                            ----------------------------  ----------------------------  ---------------------------- 
                                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 
 Interest receivable 
  on bank balances                 -         -         -         1         -         1         1         -         1 
 Loan interest receivable         93         -        93       175         -       175        85         -        85 
 Dividends on money 
  market funds                     -         -         -         1         -         1         -         -         - 
                                  93         -        93       177         -       177        86         -        86 
                            --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 
   5.      Investment management fees 

Triple Point Investment Management LLP provides investment management and administration services to the Company under an Investment Management Agreement effective 2 February 2010. The agreement provides for an administration and investment management fee of 2.25% per annum of net assets, subject to a cap of 3.50% per annum on overall running costs as a percentage of net assets. It is calculated and payable quarterly in arrear and runs for a period of 5 years and may be terminated at any time thereafter by not less than twelve months' notice given by either party. Should such notice be given, the Investment Manager would perform its duties under the Investment Management Agreement and receive its contracted fee during the notice period.

   6.      Directors' remuneration 
 
                                                 Unaudited                       Audited                     Unaudited 
                                            6 months ended                    Year ended                6 months ended 
                                            31 August 2013              28 February 2013                31 August 2012 
                              ----------------------------  ----------------------------  ---------------------------- 
                                  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 
 Charles Metcalfe, Chairman          8         -         8        15         -        15         8         -         8 
 Simon Acland                        6         -         6        13         -        13         6         -         6 
 Prof. Elroy Dimson                  6         -         6        12         -        12         6         -         6 
                                    20         -        20        40         -        40        20         -        20 
                              --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 
   7.      Taxation 
 
                                                 Unaudited                       Audited                     Unaudited 
                                            6 months ended                    Year ended                6 months ended 
                                            31 August 2013              28 February 2013                31 August 2012 
                              ----------------------------  ----------------------------  ---------------------------- 
                                  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 
 (Loss)/profit on ordinary 
  activities before tax           (20)     (164)     (184)      (55)       124        69        11      (58)      (47) 
                              --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Corporation tax @ 20%             (4)      (33)      (37)      (11)        25        14         2      (11)       (9) 
 Effect of: 
 Utilisation of tax 
  losses brought forward             -         -         -         -      (25)      (25)       (2)         -       (2) 
 Non taxable (gains)/losses          -        29        29         -      (33)      (33)         -       (1)       (1) 
 Unrelieved tax losses 
  arising in the period              4         4         8        11        33        44         -        12        12 
 Tax charge/credit for 
  the period                         -         -         -         -         -         -         -         -         - 
                              --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 

Capital gains and losses are exempt from corporation tax due to the Company's status as a Venture Capital Trust.

   8.      Loss per share 

The loss per share is based on a loss from ordinary activities after tax of GBP184,000 and on the weighted average number of shares in issue during the period of 8,746,340.

   9.      Cash and cash equivalents 

Cash and cash equivalents comprise deposits with The Royal Bank of Scotland plc.

   10.    Share capital 
 
                           Unaudited       Audited    Unaudited 
                           31 August   28 February    31 August 
                                2013          2013         2012 
 Ordinary Shares of 1p 
 
 Authorised 
   Number of shares       60,000,000    60,000,000   60,000,000 
   Par Value GBP'000             600           600          600 
 
 Issued & Fully Paid 
   Number of shares        8,746,340     8,746,340    8,746,340 
   Par Value GBP'000              87            87           87 
 
   11.    Net asset value per share 

The calculation of net asset value per share is based on net assets of GBP7,417,000 divided by the 8,746,340 shares in issue.

   12.    Commitments and contingencies 

The Company has no commitments or contingent liabilities.

   13.    Relationship with Investment Manager 

During the period, TPIM received GBP80,086 which has been expensed, for providing management and administrative services to the Company. At 31 August 2013 GBP119,397 was owing to TPIM.

   14.    Related party transactions 

There were no related party transactions during the period.

   15.    Post balance sheet events 

There have been no post balance sheet events since the period end.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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