TIDMTPOA TIDMTPOB
RNS Number : 8012D
Triple Point VCT 2011 PLC
11 October 2018
Triple Point VCT 2011 plc
LEI: 213800AOOAQA5XQDEA89
Interim Results
The directors of Triple Point VCT 2011 VCT plc are pleased to
announce its Interim results for the six months to 31 August
2018.
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
6 months ended 31 August 2018
Unaudited Ord Shares A Shares B Shares Total
Net assets GBP'000 - 10,524 6,823 17,347
Net asset value per share Pence - 105.77p 99.93p n/a
---------- ---------- --------
Profit/(loss) before tax GBP'000 - 198 (4) 194
Earnings/(loss) per share Pence - 1.62p (0.07p) n/a
------------ ---------- ---------- --------
Cumulative return to shareholders
(p)
Net asset value per share - 105.77p 99.93p
Total dividends paid - 6.75p -
Net asset value plus dividends
paid - 112.52p 99.93p
--------------------------------------------- ------------ ---------- ---------- --------
Year ended 28 February 2018
Audited Ord Shares A Shares B Shares Total
Net assets GBP'000 - 10,637 6,826 17,463
Net asset value per share Pence - 106.90p 100.00p n/a
------------ ---------- ---------- --------
(Loss)/profit before tax GBP'000 (2) 783 16 797
(Loss)/earnings per share Pence (0.03p) 6.83p 0.24p n/a
------------ ---------- ---------- --------
Cumulative return to shareholders
(p)
Net asset value per share - 106.90p 100.00p
Total dividends paid 115.05p 4.00p -
Net asset value plus dividends
paid 115.05p 110.90p 100.00p
--------------------------------------------- ------------ ---------- ---------- --------
6 months ended 31 August 2017
Unaudited Ord Shares A Shares B Shares Total
Net assets GBP'000 875 10,190 6,806 17,871
Net asset value per share Pence 4.30p 102.41p 99.73p n/a
------------ ---------- ---------- --------
(Loss)/profit before tax GBP'000 (2) 286 (3) 281
(Loss)/earnings per share Pence (0.02p) 2.34p (0.03p) n/a
------------ ---------- ---------- --------
Cumulative return to shareholders
(p)
Net asset value per share 4.30p 102.41p 99.73p
Total dividends paid 110.75p 4.00p -
Net asset value plus dividends
paid 115.05p 106.41p 99.73p
--------------------------------------------- ------------ ---------- ---------- --------
Triple Point VCT 2011 plc ("the Company") is a Venture Capital
Trust ("VCT"). The Investment Manager is Triple Point Investment
Management LLP ("TPIM" and "Triple Point"). The Company was
incorporated in July 2010.
-- A Shares: On 30 April 2015 the A Share Class offer closed
having raised GBP10.3 million with a total of 9,951,133 A Shares
being issued.
-- B Shares: On 29 April 2017 the B Share Class offer closed
having raised GBP6.97 million with a total of 6,824,266 B Shares
being issued.
Chairman's Statement
I am writing to present the Interim Financial Report for Triple
Point VCT 2011 plc ("the Company") for the period ended 31 August
2018.
During the period the Company continued to monitor the ongoing
operation of the A Share Class investments and completed the
commissioning of the gas power plants in the B Share Class
portfolio. We are pleased to report, both the A Share Class and the
B Share Class portfolios remain fully invested and are performing
in line with expectations.
Furthermore during the period, the Company and Investment
Manager were pleased to announce, subject to Shareholder approval,
the launch of an Offer for subscription into the Venture Fund, a
newly established share class within the Company. The new share
class aims to invest in a portfolio of early stage businesses, with
the potential for significant long term tax-free capital growth and
long term tax-free income. Launching an Offer for the Venture Fund
within the Company, as opposed to an offer by a new VCT, has
amongst others, the benefit of cost savings for all
shareholders.
Investment Portfolio
The Company's funds at 31 August 2018 were 98% invested in a
portfolio of VCT qualifying and non-qualifying unquoted
investments. It continues to meet the condition that 70% of
relevant funds must be invested in qualifying investments.
The Investment Manager's review on pages 4 to 7 gives an update
on the portfolio of investments in 12 small unquoted
businesses.
A Share Class
The A Share Class has investments in six companies in the
Hydroelectric Power sector which between them own seven
hydroelectric schemes in the Scottish Highlands.
I am pleased to report the A Share Class has recorded a profit
over the period of 1.62p per share and as at 31 August 2018 the NAV
per share stood at 105.77p. On 28 June 2018 the A Class
Shareholders were paid their second dividend of GBP273,656 equal to
2.75p per share, taking total dividends paid to A Shareholders to
6.75p per share. As previously reported, the Company's
distributable reserves are restricted until March 2019, after which
the Board expects the Company to be able to pay dividends at higher
levels in order to meet the A Share Class target.
B Share Class
The B Share Class has investments in two companies that have
each constructed a gas fired energy centre. In May 2018 both energy
centres were successfully commissioned and are now fully
operational.
The B Share Class has recorded a small loss over the period of
0.07p per share due to running costs of the Share Class exceeding
income while investments are in their start up periods. At 31
August 2018 the NAV per share stood at 99.93p.
Specific Risks
The Board believes that the specific risks facing the Company
are:
-- Investment risk associated with the VCT's portfolio of unquoted investments;
-- Risk of failure to maintain approval as a qualifying VCT; and
-- Risk of inability to realise investments in order to return
funds to investors in line with expectations.
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 the Financial Accounts for the period ended 28 February 2018
we highlighted changes to the VCT landscape with the government,
through its 'Financing Growth in Innovative Firms' consultation
("the Patient Capital Review") which emphasised the importance of
VCT's in helping to provide investments into SMEs. Several changes
proposed, including increasing a VCT's minimum qualifying
percentage threshold from 70% to 80% which will come into effect
for the Company from 6 April 2020.
Another key finding of the Patient Capital Review is that
qualifying investments (from 6 April 2018) must now adhere to new
deployment timelines with 30% of new funds required to be invested
within the first 12 months compared to the previous timeframe of 3
years.
The Company, along with the Investment Manager, has identified
and is currently in the process of introducing new procedures to
ensure the transition required will have a minimal effect on the
Company. The Board is pleased to report good progress has been made
and the Company is on track to implement the required changes.
Venture Fund
In September 2018 the Company launched a new Venture Fund Offer
of up to GBP15 million with an over-allotment facility of a further
GBP15 million. Subject to shareholder approval, the intention of
the Offer is to raise capital to acquire a portfolio of Qualifying
Investments in early stage companies, capable of generating
significant long term capital growth, whilst enabling investors to
take advantage of the substantial tax reliefs available to
Investors in VCT's, including 30% income tax relief on amounts
invested.
The new Venture Fund share class targets significant capital
growth by investing in innovative companies. These companies are
sourced from Triple Point's Venture Network and have the potential
to deliver ground-breaking technology or products, at scale, and to
transform markets. The Offer builds on the Investment Manager's
strong track record of early stage investing with a distinct
approach.
If you have any questions about your investment, please do not
hesitate to contact Triple Point on 020 7201 8990.
Jane Owen
Chairman
11 October 2018
Investment Manager's Review
Sector Analysis
During the period there has been no changes to the Unquoted
Investment portfolio.
The unquoted investment portfolio can be analysed as
follows:
Electricity Generation SME Funding
Hydro
Hydro Electric Electric Total Unquoted
Industry Sector Power Gas Power Power Other * Investments
----------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------
Investments at 31 August
2018
---------------- ----------- ----------- ---------
A Shares 6,577 - 1,652 1,515 9,744
B Shares - 5,100 - 1,710 6,810
6,577 5,100 1,652 3,225 16,554
---------
Unquoted Investments
% 39.73% 30.81% 9.98% 19.48% 100.00%
---------------- ----------- ----------- ---------
* Other SME funding includes GBP1,515,000 of A Ordinary Share
Class investments and GBP1,710,000 of B Ordinary Share Class
investment in to a UK based LLP which provides finance to small and
medium sized enterprises.
A Share Class
Hydro Electric Power - 67%
SME Funding Hydro Electric Power - 17%
SME Funding - Other - 16%
B Share Class
Gas Power - 75%
SME Funding - Other - 25%
The VCT was established to fund small and medium sized
enterprises. It has two share classes with separate portfolios as
detailed on page 4. At the period end the overall portfolio
comprised investments in 12 small, unquoted companies in two
sectors: electricity generation and SME funding.
On 18 September 2018 the Company launched an Offer for a new
Venture Fund Share Class. This is discussed further in the Review
& Outlook Section below.
With both remaining share classes fully invested, the Company
and the Investment Manager continue to focus on asset optimisation
and portfolio management.
The Company's portfolio consists of businesses which are fully
operational and revenue generating. Generally, performance during
the period across the portfolio has been in line with expectations
with the A Share Class recording an uplift in NAV (including
dividends) from the performance of its portfolio from 110.90p per
share to 112.52p per share. The B Share Class recorded a 0.07p loss
which has reduced the NAV from 100.00p per share to 99.93p due to
the ongoing operational costs exceeding revenues during the
construction phase of the assets.
Review & Outlook
A Share Class
The A Share Class has investments in six hydro-electric
companies which between them own seven hydro-electric schemes in
the Scottish Highlands. All seven schemes have been commissioned
and are operational. The A Share Class also has investments in two
other companies which provide funding to SMEs.
We are pleased to report that the performance of the hydro
schemes has improved over the course of early 2018. Overall the A
Share Class is pleased to have recorded a profit of 1.62p per share
for the period.
The seven hydro-electric schemes are "run of river" plants which
capture river flow agreed above a certain level as determined by
the Scottish Environment Protection Agency (SEPA). Water flow is
generally captured before a descent and flows down the penstock
(pipe) to a turbine engine which produces electricity. The water is
then returned to the river. The hydro companies benefit from
government backed Feed-in Tariff payments based on output and also
from the sale of the electricity produced to utilities or other
power companies under Power Purchase Agreements (PPAs). The
companies have continued to obtain better power prices than were
originally forecast, currently earning an average of 6.19 pence per
kWh compared to an expected 5 pence per kWh at the outset of the
projects.
The hydro companies remain highly focussed on seeking further
efficiencies and operating improvements.
The companies, together with other industry members and the
British Hydropower Association, are continuing to lobby the
Scottish Government to recognise the concern on business rates in
the Hydro sector.
Two schemes received rateable values for business rates at the
end of 2017-18 and the Scottish Government has applied a 25% relief
for this year. From 1(st) April 2018, a 60% relief on business
rates for hydro schemes has been applied. Longer term, the Scottish
Government has confirmed that it will work alongside industry
organisations to fast track a review of the Plant and Machinery
Order, which should address business rates in the Hydro sector.
Although it was a very dry, May, June and July, overall we are
pleased with the performance of the portfolio to date and we
believe that, as the portfolio matures, there remains the
opportunity to further enhance its value through continued
strategic operational management.
Top Holdings by the A Share Fund
Qualifying
Green Highland Allt Garbh Ltd has constructed a 1,300 KW
run-of-river hydro-electric power plant near Glen Affric, Cannich.
The scheme completed construction and was commissioned in July
2017. The company earns Feed-in-Tariffs and other revenues from the
generation and export of electricity to the National Grid.
Green Highland Allt Ladaidh (1148) Ltd operates a 1,350 KW
run-of-river hydro-electric power plant near Loch Garry, Invergarry
in the Scottish Highlands. The company earns Feed-in-Tariffs and
other revenues from the generation and export of electricity to the
National Grid.
Green Highland Allt Luaidhe (228) Ltd operates a 500 KW
run-of-river hydro-electric power plant located in Knockie,
Whitebridge near Inverness in the Scottish Highlands. The company
earns Feed-In-Tariffs from the generation and export of electricity
to the National Grid.
Green Highland Allt Phocachain (1015) Ltd operates two separate
500 KW run-of-river hydraulic power plants located in Glen
Moriston, in the Scottish Highlands. The company earns
Feed-in-Tariffs from generation and export of electricity to the
National Grid.
Non-Qualifying
Broadpoint 2 Ltd has provided investment to hydro-electric power
companies.
Broadpoint 3 Ltd owns equity stakes in hydro-electric power
companies and one rooftop solar PV company.
Funding Path Ltd has invested in an LLP that provides finance to
small and medium sized enterprises (SMEs).
Modern Power Generation Ltd has invested in an LLP that provides
finance to small and medium sized enterprises (SMEs).
B Share Class
The B Share Class remains fully invested with one Non-Qualifying
Investment and two Qualifying Investments in companies operating
gas fired energy centres. Both energy centres have now completed
construction and were successfully commissioned during May 2018.
These energy centres are containerised gas combustion engines that
generate electricity for onward sale, especially at times when
there is high demand for power. The UK is aiming to close its
coal-fired power plants by 2025, and it is therefore expected that
there will be a shortage in the supply of energy in the UK.
Although renewable energy makes an increasing contribution, the
irregular nature of its production means that other baseload
sources will also be required to make up the deficit.
The companies have taken advantage of a gap in the market by
constructing and operating gas fired energy centres to produce and
sell electricity to customers. The energy centres utilise simple
technology, provided by Rolls Royce, to deliver a reliable and
secure energy supply.
Gas will be purchased from the National Transmission System and
combusted in the engines. The electricity will then be exported to
the National Grid and sold under a power purchase agreement. The
companies will receive revenues from the sale of electricity and
income from embedded benefits.
Embedded benefits cover a range of payments available to small
electricity generators connected to the distribution network,
rather than the transmission grid. Benefits can be earned for
generating at peak times and for local distribution.
In addition generators can earn additional revenues by operating
outside the peak 4-7pm hours to take advantage of 'intraday' and
'post-gate closure' price volatility.
Both qualifying companies detailed below completed the
construction of their gas fired energy centres in May 2018 and are
fully operational. The construction had been delayed, but to
compensate for loss of revenue, liquidated damages are being
charged to the contractor in accordance with the terms of the
contract. A more detailed review will be included once the energy
centres have sufficient operating history for meaningful
analysis.
In the year ahead our focus will be on working with the
companies to attempt to maximise their performance in line with the
return targets of the Share Class.
Top Holdings by the B Share Fund
Qualifying
Distributed Generators Ltd has constructed a 5 MW gas power
plant in Bedford. The 2 x 2.5 MW gas fired MTU Rolls Royce Engines
have been successfully installed and the site was commissioned in
May 2018.
Green Peak Generation Ltd has constructed a 7.44 MW gas power
plant in Workington, Cumbria. The 3 containerised 2.48 MW gas fired
MTU Rolls Royce Engines have been successfully installed and the
site was commissioned in May 2018.
Non-Qualifying
Modern Power Generation Ltd: has invested in an LLP that
provides finance to small and medium sized enterprises (SMEs).
TPIM have agreed to continue not to charge its management fees
for the period on the amounts invested in gas power projects. These
investments represent circa 75% of the B Share Class NAV, this
position will be reviewed once these investments start to generate
income for the B Share Class.
Non-Qualifying Investments
SME Funding
The Company has non-qualifying investments in four finance
companies. These companies provide funds to a dedicated non-bank
SME lending business which aims to address the financing needs of
the UK SME market by providing business critical loans and asset
finance to over 100,000 UK Corporate and SME customers.
Venture Fund
The Venture Fund was launched in September 2018, and subject to
Shareholder approval, will primarily focus on providing funding to
unquoted companies at an early stage in their lifecycle to help
them grow and scale. For early stage companies, the journey from
start-up to scale-up is usually the most uncertain time in its
lifecycle. The Venture Fund's investment strategy was developed to
help start-ups establish market fit faster and increase their
chances of reaching scale. The Company's Venture Fund will
typically make initial investments of between GBP50,000 and GBP2
million.
Working with industry experts, the Investment Manager has
established a network of innovation specialists and venture
capitalists (the "Triple Point Venture Network") which will work
proactively with high-growth companies that are actively solving
problems for large corporates. Together with the Triple Point
Venture Network, the Investment Manager, on behalf of the Venture
Fund, will identify innovative small businesses and make investment
recommendations into small businesses once their products are
validated by the market.
Launching an Offer for the Venture Fund within the Company, as
opposed to an offer by a new VCT, has amongst other benefits, the
potential for cost savings for all investors. Over the lifetime of
the Company, there should be a saving per A Share and B Share in
the fixed operating costs, as these will be shared with the Venture
Fund. Furthermore, as part of introducing the Venture Fund and to
improve liquidity, all shareholders will benefit from a proposed
improved share buy-back facility, with a reduction in the target
discount applied to NAV from 10% to 5%.
If you have any questions, please do not hesitate to call us on
020 7201 8990.
Claire Ainsworth
Partner
For Triple Point Investment Management LLP
11 October 2018
Investment Portfolio
Unaudited Audited
31 August 2018 28 February 2018
---------------------------------------- ----------------------------------------
Cost Valuation Cost Valuation
GBP'000 % GBP'000 % GBP'000 % GBP'000 %
Unquoted qualifying holdings 11,423 69.01 11,677 69.21 11,423 68.84 11,677 69.07
Non-Qualifying holdings 4,811 29.06 4,877 28.92 4,811 29.01 4,877 28.84
Financial assets at fair value
through profit or loss 16,234 98.07 16,554 98.13 16,234 97.85 16,554 97.91
Cash and cash equivalents 319 1.93 319 1.87 353 2.15 353 2.09
16,553 100.00 16,873 100.00 16,587 100.00 16,907 100.00
========= ======== ========= ======== ========= ======== ========= ========
Qualifying Holdings
Unquoted
Hydro Electric Power
Green Highland Allt Choire
A Bhalachain Ltd 30 0.18 30 0.18 30 0.18 30 0.18
Green Highland Allt Garbh Ltd 2,250 13.59 2,250 13.33 2,250 13.56 2,250 13.31
Green Highland Allt Ladaidh
(1148) Ltd 1,470 8.88 1,802 10.68 1,470 8.86 1,802 10.66
Green Highland Allt Luaidhe
(228) Ltd 855 5.17 937 5.55 855 5.15 937 5.54
Green Highland Allt Phocachain
(1015) Ltd 858 5.18 1,005 5.96 858 5.17 1,005 5.94
Green Highland Shenval Ltd 860 5.20 553 3.28 860 5.18 553 3.27
Gas Power
Distributed Generators Ltd 3,200 19.33 3,200 18.97 3,200 19.29 3,200 18.93
Green Peak Generation Ltd 1,900 11.48 1,900 11.26 1,900 11.45 1,900 11.24
11,423 69.01 11,677 69.21 11,423 68.84 11,677 69.07
========= ======== ========= ======== ========= ======== ========= ========
Non-Qualifying Holdings
Unquoted
Hydro Electric Power
Green Highland Allt Choire
A Bhalachain Ltd 3 0.02 3 0.02 3 0.02 3 0.02
Green Highland Allt Ladaidh
(1148) Ltd 30 0.18 30 0.18 30 0.18 30 0.18
Green Highland Allt Luaidhe
(228) Ltd 61 0.37 61 0.36 61 0.37 61 0.36
Green Highland Allt Phocachain
(1015) Ltd 2 0.01 3 0.02 2 0.01 3 0.02
SME Funding:
Hydro Electric Power
Broadpoint 2 Ltd 550 3.32 550 3.26 550 3.32 550 3.25
Broadpoint 3 Ltd 1,005 6.07 1,005 5.96 1,005 6.06 1,005 5.94
Other
Funding Path Ltd 1,000 6.04 1,000 5.93 1,000 6.03 1,000 5.91
Modern Power Generation Ltd 2,160 13.05 2,225 13.19 2,160 13.02 2,225 13.16
4,811 29.06 4,877 28.92 4,811 29.01 4,877 28.84
========= ======== ========= ======== ========= ======== ========= ========
Financial Assets including those held for sale are measured at
fair value through profit or loss. The initial best estimate of
fair value of these investments that are either quoted or unquoted
on an active market is the transaction price (i.e. cost). The fair
value of these investments is subsequently measured by reference to
the enterprise value of the investee company, which is best deemed
to reflect the fair value. Where the Board considers the investee
company's enterprise value to remain unchanged since acquisition,
investments continue to be held at cost less any loan repayments
received. Where the Board considers the investee company's
enterprise value has changed since acquisition, investments are
held at a value measured using a discounted cash flow model or the
value to be realised on disposal which is equivalent to fair
value.
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 2018, the Directors confirm that to the best of their
knowledge this condensed set of financial statements has been
prepared in accordance with International Accounting Standard 34
"Interim Financial Reporting" as adopted by the European Union and
that the Chairman's statement on pages 2 and 3 includes a fair
review of the information required by DTR 4.2.7 and DTR 4.2.8 of
the Disclosure and Transparency rules of the United Kingdom's
Financial Conduct Authority namely:
a) 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 specific risks and
uncertainties for the remainder of the accounting period;
b) 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;
c) the Interim Financial Report includes a fair review of
related party transactions and changes therein. There were no
related party transactions for the accounting period; and
d) 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 expectations that the Company has
adequate resources to continue in operational existence for at
least the next 12 months. 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.
Jane Owen
Chairman
11 October 2018
Uaudited Statement of Comprehensive Income
Unaudited Audited Unaudited
Year ended Year ended 6 months ended
31 August 2018 28 February 2018 31 August 2017
------------------------------- ------------------------------- -------------------------------
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
Investment
income 4 364 - 364 715 - 715 364 - 364
(Loss) arising
on the
realisation
of investments
during the
period - - - - (17) (17) - (17) (17)
Gain arising on
the
revaluation
of investments
at the period
end - - - - 264 264 - 6 6
Investment
return 364 - 364 715 247 962 364 (11) 353
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Investment
management
fees 5 68 23 91 24 8 32 31 (15) 16
Financial and
regulatory
costs 14 - 14 26 - 26 12 - 12
General
administration 22 - 22 42 (19) 23 2 - 2
Legal and
professional
fees 20 - 20 38 (2) 36 20 (2) 18
Directors'
remuneration 6 23 - 23 48 - 48 24 - 24
Operating
expenses 147 23 170 178 (13) 165 89 (17) 72
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Profit/(loss)
before
taxation 217 (23) 194 537 260 797 275 6 281
Taxation 7 (41) 5 (36) (102) (2) (104) (52) (3) (55)
Profit/(loss)
after taxation 176 (18) 158 435 258 693 223 3 226
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Profit and
total
comprehensive
income/(loss)
for the period 176 (18) 158 435 258 693 223 3 226
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Basic & diluted earnings per share
(pence)
Ordinary Share 8 - - - (0.04p) 0.01p (0.03p) (0.03p) 0.01p (0.02p)
A Share 8 1.77p (0.15p) 1.62p 4.44p 2.39p 6.83p 2.29p 0.05p 2.34p
B Share 8 (0.02p) (0.05p) (0.07p) (0.01p) 0.25p 0.24p 0.01p (0.04p) (0.03p)
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 this statement.
Unaudited Balance Sheet
Unaudited Audited Unaudited
28 February
31 August 2018 2018 31 August 2017
Note GBP'000 GBP'000 GBP'000
Non-current assets
Financial assets at fair
value through profit
or loss 16,554 16,554 16,296
---------------- ------------- ----------------
Current assets
Receivables 771 779 705
Cash and cash equivalents 9 319 353 985
1,090 1,132 1,690
---------------- ------------- ----------------
Total assets 17,644 17,686 17,986
---------------- ------------- ----------------
Current liabilities
Payables and accrued
expenses 157 120 59
Current taxation payable 140 103 56
297 223 115
---------------- ------------- ----------------
Net assets 17,347 17,463 17,871
================ ============= ================
Equity attributable to
equity holders
Share capital 10 168 168 371
Share Premium 16,683 16,683 16,683
Share redemption reserve - - 1
Capital reserve 301 319 593
Revenue reserve 195 293 223
Total equity 17,347 17,463 17,871
================ ============= ================
Shareholders' funds
Net asset value per Ordinary
Share 11 - - 4.30p
Net asset value per A
Share 11 105.77p 106.90p 102.41p
Net asset value per B
Share 11 99.93p 100.00p 99.73p
The statements were approved by the Directors and authorised for
issue on 11 October 2018 and are signed on their behalf by:
Jane Owen
Chairman
11 October 2018
The accompanying notes are an integral part of this
statement.
Unaudited Statement of Changes in Shareholders' Equity
Special
Issued Share Share Redemption Distributable Capital Revenue
Capital Premium Reserve Reserve Reserve Reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
6 months ended 31
August
2018 (Unaudited)
Opening balance 168 16,683 - - 319 293 17,463
---------- ---------- ------------------ ---------------- ---------- ---------- ---------
Dividends paid - - - - - (274) (274)
Transactions with
owners - - - - - (274) (274)
---------- ---------- ------------------ ---------------- ---------- ---------- ---------
(Loss)/profit after
taxation - - - - (18) 176 158
Total comprehensive
(loss)/profit
for the period - - - - (18) 176 158
---------- ---------- ------------------ ---------------- ---------- ---------- ---------
Balance at 31
August
2018 168 16,683 - - 301 195 17,347
========== ========== ================== ================ ========== ========== =========
The Capital Reserve
consists
of:
Investment holding
gains 320
Other realised losses (19)
301
----------
Year ended 28
February
2018 (Audited)
Opening balance 371 16,683 1 255 1,443 715 19,468
---------- ---------- ------------------ ---------------- ---------- ---------- ---------
Cancellation of
shares (203) - (1) - 1 - (203)
Dividend Paid - - - (255) (1,383) (857) (2,495)
Transactions with
owners (203) - (1) (255) (1,382) (857) (2,698)
---------- ---------- ------------------ ---------------- ---------- ---------- ---------
Profit after
taxation - - - - 258 435 693
Total comprehensive
profit
for the year - - - - 258 435 693
---------- ---------- ------------------ ---------------- ---------- ---------- ---------
Balance at 28
February
2018 168 16,683 - - 319 293 17,463
========== ========== ================== ================ ========== ========== =========
The Capital Reserve
consists
of:
Investment holding
gains 320
Other realised losses (1)
319
----------
6 months ended 31
August
2017 (Unaudited)
Opening balance 371 16,683 1 255 1,443 715 19,468
---------- ---------- ------------------ ---------------- ---------- ---------- ---------
Dividends paid - - - (255) (853) (715) (1,823)
Transactions with
owners - - - (255) (853) (715) (1,823)
---------- ---------- ------------------ ---------------- ---------- ---------- ---------
Profit after
taxation - - - - 3 223 226
Total comprehensive
profit
for the period - - - - 3 223 226
---------- ---------- ------------------ ---------------- ---------- ---------- ---------
Balance at 31
August
2017 371 16,683 1 - 593 223 17,871
========== ========== ================== ================ ========== ========== =========
The Capital Reserve
consists
of:
Investment holding
gains 62
Other realised gains 531
593
----------
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
unrealised capital reserve is not distributable. The special
distributable reserve was created on court cancellation of the
share premium account. The revenue reserve, realised capital
reserve and special distributable reserve are distributable by way
of dividend.
At 31 August 2018 the total reserves available for distribution
are GBP176,000. This consists of the distributable revenue reserve
net of the realised capital loss.
Unaudited Statement of Cash Flows
Unaudited Audited Unaudited
6 months
6 months ended Year ended ended
28 February 31 August
31 August 2018 2018 2017
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit before taxation 194 797 281
Loss arising on the disposal
of investments during the period - 17 17
(Gain) arising on the revaluation
of investments at the period
end - (264) (6)
Cash generated by operations 194 550 292
Decrease in receivables 8 596 16
Increase/(decrease) in payables 38 (97) (156)
Net cash flows from operating
activities 240 1,049 152
---------------- ------------- -----------
Cash flows from investing activities
Sale of financial assets at
fair value through profit or
loss - 477 1,131
Net cash flows from investing
activities - 477 1,131
---------------- ------------- -----------
Cash flows from financing activities
Distribution of proceeds from
share cancellation - (203) -
Dividends paid (274) (2,495) (1,823)
Net cash flows from financing
activities (274) (2,698) (1,823)
---------------- ------------- -----------
Net (decrease) in cash and
cash equivalents (34) (1,172) (540)
================ ============= ===========
Reconciliation of net cash
flow to movements in cash and
cash equivalents
Cash and cash equivalents at
1 March 2018 353 1,525 1,525
Net (decrease) in cash and
cash equivalents (34) (1,172) (540)
Cash and cash equivalents at
31 August 2018 319 353 985
================ ============= ===========
The accompanying notes are an integral part of this
statement.
Non-Statutory Analysis - The A Share Fund
Statement
of Comprehensive
Income Unaudited Audited Unaudited
Comprehensive 6 months ended 31 Year ended 28 February 6 months ended 31
Income August 2018 2018 August 2017
------------------------------- ------------------------------- -------------------------------
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
Investment
income 322 - 322 634 - 634 324 - 324
Unrealised
gain on
investments - - - - 240 240 - 6 6
Investment
return 322 - 322 634 240 874 324 6 330
Investment
management
fees (56) (19) (75) (22) - (22) (10) - (10)
Other expenses (49) - (49) (67) (2) (69) (32) (2) (34)
Profit/(loss)
before taxation 217 (19) 198 545 238 783 282 4 286
Taxation (41) 4 (37) (104) - (104) (54) - (54)
Profit/(loss)
after taxation 176 (15) 161 441 238 679 228 4 232
Profit and
total
comprehensive
income/(loss)
for the period 176 (15) 161 441 238 679 228 4 232
Basic and
diluted
earnings/(loss)
per share 1.77p (0.15p) 1.62p 4.44p 2.39p 6.83p 2.29p 0.05p 2.34p
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Unaudited Audited Unaudited
Balance Sheet 31 August 2018 28 February 2018 31 August 2017
GBP'000 GBP'000 GBP'000
Non-current
assets
Financial
assets at
fair value
through profit
or loss 9,744 9,744 9,510
--------- --------- ---------
Current assets
Receivables 752 764 688
Cash and cash
equivalents 267 274 64
1,019 1,038 752
--------- --------- ---------
Current
liabilities
Payables (96) (40) (15)
Corporation
Tax (143) (105) (57)
--------- --------- ---------
Net assets 10,524 10,637 10,190
--------- --------- ---------
Equity attributable
to equity holders 10,524 10,637 10,190
--------- --------- ---------
Net asset
value per
share 105.77p 106.90p 102.41p
--------- --------- ---------
Statement
of Changes
in Shareholders'
Equity
Unaudited Audited Unaudited
28 February
31 August 2018 2018 31 August 2017
GBP'000 GBP'000 GBP'000
Opening
shareholders'
funds 10,637 10,356 10,356
Profit for
the period 161 679 232
Dividend paid (274) (398) (398)
Closing
shareholders'
funds 10,524 10,637 10,190
--------- --------- ---------
Investment Portfolio Unaudited Audited
31 August 2018 28 February 2018
---------------------------------------- ----------------------------------------
Cost Valuation Cost Valuation
GBP'000 % GBP'000 % GBP'000 % GBP'000 %
Unquoted qualifying holdings 6,323 64.92 6,577 65.70 6,323 64.86 6,577 65.65
Non-Qualifying holdings 3,151 32.36 3,167 31.63 3,151 32.33 3,167 31.61
Financial assets at fair
value through profit
or loss 9,474 97.28 9,744 97.33 9,474 97.19 9,744 97.26
Cash and cash equivalents 267 2.72 267 2.67 274 2.81 274 2.74
9,741 100.00 10,011 100.00 9,748 100.00 10,018 100.00
========= ======== ========= ======== ========= ======== ========= ========
Qualifying Holdings
Unquoted
Hydro Electric Power
Green Highland Allt Choire
A Bhalachain Ltd 30 0.31 30 0.30 30 0.31 30 0.30
Green Highland Allt Garbh
Ltd 2,250 23.10 2,250 22.48 2,250 23.08 2,250 22.46
Green Highland Allt Ladaidh
(1148) Ltd 1,470 15.09 1,802 18.00 1,470 15.08 1,802 17.99
Green Highland Allt Luaidhe
(228) Ltd 855 8.78 937 9.36 855 8.77 937 9.35
Green Highland Allt Phocachain
(1015) Ltd 858 8.81 1,005 10.04 858 8.80 1,005 10.03
Green Highland Shenval
Ltd 860 8.83 553 5.52 860 8.82 553 5.52
6,323 64.92 6,577 65.70 6,323 64.86 6,577 65.65
========= ======== ========= ======== ========= ======== ========= ========
Unaudited Audited
31 August 2018 28 February 2018
---------------------------------------- ----------------------------------------
Cost Valuation Cost Valuation
Non-Qualifying Holdings GBP'000 % GBP'000 % GBP'000 % GBP'000 %
Unquoted
Hydro Electric Power
Green Highland Allt Choire
A Bhalachain Ltd 3 0.03 3 0.03 3 0.03 3 0.03
Green Highland Allt Ladaidh
(1148) Ltd 30 0.31 30 0.30 30 0.31 30 0.30
Green Highland Allt Luaidhe
(228) Ltd 61 0.63 61 0.61 61 0.63 61 0.61
Green Highland Allt Phocachain
(1015) Ltd 2 0.02 3 0.03 2 0.02 3 0.03
SME Funding:
Hydro Electric Power
Broadpoint 2 Ltd 550 5.65 550 5.49 550 5.64 550 5.49
Broadpoint 3 Ltd 1,005 10.32 1,005 10.04 1,005 10.31 1,005 10.03
Other
Funding Path Ltd 1,000 10.27 1,000 9.99 1,000 10.26 1,000 9.98
Modern Power Generation
Ltd 500 5.13 515 5.14 500 5.13 515 5.14
3,151 32.36 3,167 31.63 3,151 32.33 3,167 31.61
========= ======== ========= ======== ========= ======== ========= ========
Non-Statutory Analysis - The B Share Fund
Statement of Unaudited Audited Unaudited
Comprehensive 6 months ended Year ended 28 6 months ended 31
Income 31 August 2018 February 2018 August 2017
------------------------------- ------------------------------- -------------------------------
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
Investment
income 42 - 42 82 - 82 41 - 41
Unrealised
gain on
investments - - - - 24 24 - - -
Investment
return 42 - 42 82 24 106 41 - 41
Investment
management
fees (12) (4) (16) (38) (8) (46) (19) (4) (23)
Other expenses (30) - (30) (44) - (44) (21) - (21)
(Loss)/profit
before taxation - (4) (4) - 16 16 1 (4) (3)
Taxation - 1 1 - 2 2 - 1 1
(Loss)/profit
after taxation - (3) (3) - 18 18 1 (3) (2)
Loss and total
comprehensive
(loss)/income
for the period - (3) (3) - 18 18 1 (3) (2)
Basic and diluted
(loss)/earnings
per share (0.02p) (0.05p) (0.07p) (0.01p) 0.25p 0.24p 0.01p (0.04p) (0.03p)
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Unaudited Audited Unaudited
Balance Sheet 31 August 2018 28 February 2018 31 August 2017
GBP'000 GBP'000 GBP'000
Non-current
assets
Financial assets
at fair value
through profit
or loss 6,810 6,810 6,786
--------- --------- ---------
Current assets
Receivables 19 15 17
Corporation
Tax 3 2 1
Cash and cash
equivalents 52 79 12
74 96 30
--------- --------- ---------
Current
liabilities
Payables (61) (80) (10)
Net assets 6,823 6,826 6,806
--------- --------- ---------
Equity attributable
to equity holders 6,823 6,826 6,806
--------- --------- ---------
Net asset value
per share 99.93p 100.00p 99.73p
--------- --------- ---------
Statement of
Changes in
Shareholders'
Equity
Unaudited Audited Unaudited
28 February
31 August 2018 2018 31 August 2017
GBP'000 GBP'000 GBP'000
Opening
shareholders'
funds 6,826 6,808 6,808
(Loss)/profit
for the period (3) 18 (2)
Closing
shareholders'
funds 6,823 6,826 6,806
--------- --------- ---------
Investment Portfolio Unaudited Audited
31 August 2018 28 February 2018
---------------------------------------- ----------------------------------------
Cost Valuation Cost Valuation
GBP'000 % GBP'000 % GBP'000 % GBP'000 %
Unquoted qualifying holdings 5,100 74.87 5,100 74.32 5,100 74.57 5,100 74.03
Non-Qualifying holdings 1,660 24.37 1,710 24.92 1,660 24.27 1,710 24.82
Financial assets at fair
value through profit or
loss 6,760 99.24 6,810 99.24 6,760 98.84 6,810 98.85
Cash and cash equivalents 52 0.76 52 0.76 79 1.16 79 1.15
6,812 100.00 6,862 100.00 6,839 100.00 6,889 100.00
========= ======== ========= ======== ========= ======== ========= ========
Qualifying Holdings
Unquoted
Gas Power
Distributed Generators
Ltd 3,200 46.98 3,200 46.63 3,200 46.79 3,200 46.45
Green Peak Generation
Ltd 1,900 27.89 1,900 27.69 1,900 27.78 1,900 27.58
5,100 74.87 5,100 74.32 5,100 74.57 5,100 74.03
========= ======== ========= ======== ========= ======== ========= ========
31 August 2018 28 February 2018
---------------------------------------- ----------------------------------------
Cost Valuation Cost Valuation
Non-Qualifying Holdings GBP'000 % GBP'000 % GBP'000 % GBP'000 %
Unquoted
SME Funding
Other
Modern Power Generation
Ltd 1,660 24.37 1,710 24.92 1,660 24.27 1,710 24.82
1,660 24.37 1,710 24.92 1,660 24.27 1,710 24.82
========= ======== ========= ======== ========= ======== ========= ========
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 2018 was authorised for issue in accordance
with a resolution of the Directors on 11 October 2018.
The Company applied for listing on the London Stock Exchange on
24 December 2010.
Triple Point VCT 2011 plc is incorporated and domiciled in Great
Britain and registered in England and Wales. The address of the
Company's registered office, which is also its principal place of
business, is 18 St Swithin's Lane, London, EC4N 8AD.
The Company is required to nominate a functional currency, being
the currency in which the Company predominately operates. The
functional and reporting currency is pounds sterling (GBP),
reflecting the primary economic environment in which the Company
operates.
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
The Unaudited Interim Financial Report of the Company for the 6
months ended 31 August 2018 has been prepared in accordance with
IAS 34: Interim Financial Reporting. The same accounting policies
and methods of computation are followed in the Interim Financial
Report as were followed in the most recent Financial Statements. 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 2018.
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 Directors are of the opinion that the Company only has a
single operating segment of business, being investment activity.
All revenues and assets are generated and held in the UK.
4. Investment income
Unaudited Audited
6 months ended 31 August Year ended 28 February
2018 2018
--------------------------------------------- --------------------------------------------
Ord Ord
Shares A Shares B Shares Total Shares A Shares B Shares Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Interest
receivable
on bank balances - 1 - 1 - - - -
Loan interest - 321 42 363 (4) 634 82 712
Dividends
received - - - - 3 - - 3
- 322 42 364 (1) 634 82 715
------------------------------ ---------- ---------- --------- --------- ---------- ---------- ---------
5. Investment management fees
TPIM provides investment management and administration services
to the Company under an Investment Management Agreement effective
23 September 2010 and a deed of variation to that agreement
effective 23 December 2015.
A Shares: The agreement provides for an investment management
fee of 2.00% per annum of net assets payable quarterly in arrear
for A Shares. For A Shares the appointment shall continue for a
period of at least 6 years from the admission of those shares.
B Shares: The agreement provides for an investment management
fee of 1.90% per annum of net assets payable quarterly in arrear
for B Shares. For B Shares the appointment shall continue for a
period of at least 6 years from the admission of those shares.
At 31 August 2018 the administration fee was GBP37,500 per annum
and is payable quarterly in arrear. Subject to Shareholder approval
at the General Meeting, this will change under an amendment to the
IMA to 0.25% of Net Assets per annum.
TPIM agreed not to charge their management fees for the A share
class for the financial year ending 28 February 2018, to build up
distributable reserves improving the ability of the share class to
make dividend payments. TPIM resumed charging its management fees
from 1 March 2018.
TPIM agreed not to charge their management fees from 1 January
2017 on the amounts invested in gas power projects, which represent
circa 75% of the B Share Class NAV, until these investments started
to generate income.
6. Directors' remuneration
Unaudited Audited
6 months ended 31 August
2018 Year ended 28 February 2018
------------------------------------------------ -----------------------------------------------
Ord Shares A Shares B Shares Total Ord Shares A Shares B Shares Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Jane Owen - 5 4 9 1 11 6 18
Chad Murrin - 4 3 7 1 9 5 15
Tim Clarke - 5 2 7 - 8 7 15
- 14 9 23 2 28 18 48
--------------------------- ---------- ---------- --------- ------------ ---------- ---------- ---------
The only remuneration received by the Directors was their
Directors' fees. The Company has no employees other than the
Non-Executive Directors. The average number of Non-Executive
Directors in the period was three.
7. Taxation
Unaudited Audited
6 months ended 31 August Year ended 28 February
2018 2018
-------------------------------------------- ----------------------------------------------
Ord A Ord
Shares Shares B Shares Total Shares A Shares B Shares Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Profit/(loss) on
ordinary
activities
before tax - 198 (4) 194 (2) 783 16 797
Corporation tax
@
19% - 37 (1) 36 - 152 3 155
Effect of:
Capital
losses/(gains)
not taxable - - - - 3 (46) (4) (47)
Disallowed
expenditure - - - - (1) - - (1)
Tax
charge/(credit)
for the period - 37 (1) 36 2 104 (2) 104
Capital gains and losses are exempt from corporation tax due to
the Company's status as a Venture Capital Trust.
8. Earnings per share
The earnings per A Share is 1.62p and is based on a profit from
ordinary activities after tax of GBP160,875 and on the weighted
average number of A Shares in issue during the period of
9,951,133.
The loss per B Share is 0.07p, and is based on a loss from
ordinary activities after tax of GBP4,728, and on the weighted
average number of B Shares in issue during the period of
6,824,266.
There were no changes to the number of shares in issue during
the period therefore the weighted average number of shares in issue
during the period for all share classes is equal to the number of
shares at 31 August 2018.
9. Cash and cash equivalents
Cash and cash equivalents comprise deposits with The Royal Bank
of Scotland plc and Cater Allen Private Bank.
10. Share capital
Unaudited Audited
31 August 2018 28 February 2018
A Ordinary Shares of GBP0.01 each
Issued & Fully Paid
Number of shares 9,951,133 9,951,133
Par Value GBP'000 100 100
Authorised
Number of shares 10,000,000 10,000,000
Par Value GBP'000 100 100
B Ordinary Shares of GBP0.01 each
Issued & Fully Paid
Number of shares 6,824,266 6,824,266
Par Value GBP'000 68 68
Authorised
Number of shares 10,000,000 10,000,000
Par Value GBP'000 100 100
Company Total Shares of GBP0.01
each
Issued & Fully Paid
Number of shares 16,775,399 16,775,399
Par Value GBP'000 168 168
11. Net asset value per share
The net asset value per share for the A Shares is 105.77p and is
calculated based on net assets of GBP10,524,000 divided by the
9,951,133 A Shares in issue.
The net asset value per share for the B Shares is 99.93p and is
calculated on net assets of GBP6,823,000 divided by the 6,824,266 B
Shares in issue.
12. Commitments and contingencies
The Company has no contingent liabilities or commitments.
13. Relationship with Investment Manager
During the period, TPIM received GBP90,564 (which has been
expensed by the Company) for providing management services to the
Company.
TPIM agreed not to charge their management fees from 1 January
2017 on the amounts invested in gas power projects, which
represents circa 75% of the B Share Class NAV.
Fees paid to the Investment Manager for administrative and other
services during the period was GBP18,750
14. Related party transactions
There were no related party transactions during the period.
15. Post balance sheet events
There were no post balance sheet events.
16. Dividend
A Share Class:
On 28 June 2018 a dividend of GBP273,656 equal to 2.75p per
share was paid to the A Class Shareholders. This takes total
dividends paid to A Shareholders to 6.75p.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR BUBDGBGBBGIB
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October 11, 2018 11:07 ET (15:07 GMT)
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