TIDMBNS
Baronsmead VCT 4 plc
Half Yearly Financial Report
18 August 2011
The Directors announce the unaudited half-yearly financial report for the six
months to 30 June 2011 as follows:-
Investment Objective
Baronsmead VCT 4 plc is a tax efficient listed company which aims to achieve
long-term investment returns for private investors.
Investment policy
? To invest primarily in a diverse portfolio of UK growth businesses, whether
unquoted companies or traded on AIM.
? Investments are made selectively across a range of sectors in companies that
have the potential to grow and enhance their value.
Dividend policy
The Board of Baronsmead VCT 4 has the objective to sustain a progressive
dividend policy for shareholders but this depends primarily on the level of
profitable realisations and it cannot be guaranteed. There may be variations in
the amount of dividends paid year on year.
Secondary market in the shares of Baronsmead VCT 4 plc
The existing shares of the Company are listed on the London Stock Exchange and
can be bought and sold using a stockbroker in the same way as shares of any
other listed company.
Qualifying investors* who invest in the existing shares of the Company can
benefit from:
? Tax free dividends;
? Realised gains are not subject to capital gains tax (although any realised
losses are not allowable);
? No minimum holding period; and
? No need to include VCT dividends in annual tax returns.
The UK tax treatment of VCTs is on a first in first out basis and therefore tax
advice should be obtained before shareholders dispose of their shares and also
if they deferred a capital gain in respect of new shares acquired
prior to 6 April 2004.
* UK income tax payers, aged 18 or over, who acquire no more than GBP200,000
worth of VCT shares in a tax
year.
FINANCIAL HEADLINES
? 8.9% - Increase in Net asset value ("NAV") per share during the period to
103.52p before deduction of the interim dividend.
? 3.0p - Interim dividend tax free payable on 29 September 2011 to shareholders
on the register at 16 September 2011, for the six month period to 30 June 2011.
? 7.9% - Tax free return of 7.9 per cent has been received by qualifying
shareholders, based on the 7.0p dividends paid and declared over the last 12
months, and the mid share price of 88.75p at the period end. The gross
equivalent annual yield for a higher rate tax payer is 10.5 per cent.
Performance Summary to 30 June 2011
Total return * 6 months % 1 year % 3 year % 5 year % Inception %
Net Asset Value| 8.7% 17.3% 19.2% 20.7% 68.3%
Share Price| 6.1% 15.6% 14.0% 21.0% 43.7%
FTSE All-Share 3.0% 25.6% 21.0% 24.6% 70.1%
* Source: ISIS EP LLP and AIC.
| These returns for Baronsmead VCT 4 ignore up front tax relief and the impact
of receiving dividends tax free.
Cash Returned to Shareholders
The Board is aware that shareholders are concerned that the original capital
subscribed into Baronsmead VCT 4 has been maintained. The table below shows the
cash returned to shareholders dependent on their subscription cost, including
their income tax reclaimed on subscription.
Income Net Cumulative
Subscription tax cash dividends Net annual Gross
price reclaim invested paid* yield±* yield|
Year subscribed p p p p % %
2002 100.0 20.0 80.0 48.0 6.3 8.4
2006 (C 100.0 40.0 60.0 26.1 8.2 10.9
shareholders)**
2010 (March) 95.9 28.8 67.1 10.0 11.2 14.9
* Includes interim dividend of 3.0p to be paid 29 September 2011.
± Net annual yield represents the cumulative dividends paid expressed as an
annualised percentage of the net cash invested.
| The gross equivalent yield if the dividends had been subject to higher rate
tax (currently 32.5 per cent on dividend income). The new additional rate of
tax on dividend income of 42.5 per cent came into force from the 2010 / 11 tax
year for those who earned more than GBP150,000. For those Shareholders who would
otherwise pay this higher rate of tax on dividends, the future gross equivalent
yield will be higher than the figures shown.
**Dividends paid to C shareholders post conversion have been adjusted by the
conversion ration (1.0372828).
CHAIRMAN'S STATEMENT
I am pleased to report an 8.9 per cent growth in Net Asset Value per share
continuing the positive trend achieved since the banking crisis in autumn 2008.
The growth is due to a series of valuation increases across the portfolio. A
3.0p interim dividend has been declared and is largely funded from profits
realised on the sale of investments.
RESULTS
In the six months to 30 June 2011, the Net Asset Value (NAV) per share grew by
8.9 per cent from 95.09p to 103.52p before payment of a 3.0p per share interim
dividend. The share price total return for Baronsmead VCT 4 was 6.1 per cent
which compares favourably with the FTSE All-Share Index which increased by 3.0
per cent in the same period.
Growth occurred across the investment portfolio with the unquoted and
AIM-traded portfolios increasing by 13 per cent and 11 per cent respectively.
Reed & Mackay was successfully sold at 4.8 times the original cost and the
realised capital profits of GBP3.8 million will add significantly to reserves
available for future dividend payments.
All of the VCT qualifying tests have been met throughout the six months to 30
June 2011.
LONG TERM PERFORMANCEAND SHAREHOLDER RETURNS
The Company raised most of its funds from three prospectus offers in 2002, 2006
and 2010. The cumulative dividends, the respective subscription prices and the
level of subscription income tax relief are shown in the Cash Returned to
Shareholders' table. The table below shows the current value of a GBP10,000
initial investment and the cumulative dividends paid to date, excluding the
effect of VCT tax reliefs and re-invested
dividends.
Year subscribed 2002 20062 2010
Initial Investment GBP10,000 GBP10,000 GBP10,000
Value of holding as at 30 GBP10,352 GBP10,738 GBP10,352
June 20111
Cumulative dividends paid3 GBP4,500 GBP2,302 GBP700
Total GBP14,852 GBP13,040 GBP11,052
1. Based on the current NAV of 103.52p per share
2. The current value of holding and cumulative dividends paid to C
shareholders post conversion have been adjusted by the conversion ratio
(1.0372828).
3. Dividends stated before taking account of the interim dividend of 3.0p
payable on 29 September 2011
Since inception the Net Asset Value Total Return at 30 June 2011 calculated on
the basis of reinvested dividends is 168.3p for each 100p invested before
taking account of any VCT tax reliefs. The comparable NAV total return for
founder shareholders would be 211.5p if this measure of performance was
adjusted to take account of the initial income tax relief available at
inception and reinvested gross dividends assuming higher rate income tax
relief.
The tax free nature of a VCT is of particular benefit for qualifying
shareholders as they do not have to pay income tax on the dividends they
receive, or declare them in a tax return. This means that qualifying
shareholders in Baronsmead VCT 4, who are higher and additional rate tax payers
do not have to pay income tax equivalent to 25 per cent and 36.1 per cent
respectively on the cash dividend they receive from the Company. To generate
the same after-tax dividends, it would be necessary for the dividend received
from a non-VCT investment to be 33.3 per cent or 56.5 per cent higher,
respectively. Disposal of shares is also free of capital gains tax.
PORTFOLIO REVIEW
The portfolio is well-diversified and both the unquoted and AIM-traded
portfolios increased in value by more than 10 per cent over the six month
period.
At 30 June 2011, 51 per cent of the portfolio by value was invested in unquoted
companies and 22 per cent in AIM-traded and listed companies and the balance of
27 per cent remained in cash, government securities or interest bearing
instruments. The trading of the fifty eight portfolio companies remained
consistent over the six months with the performance of 84 per cent of investee
companies now being classified as steady or growing.
The main increases in value within the unquoted portfolio came from Nexus
Vehicle Holdings (the largest unquoted investment at 8.8 per cent of NAV) which
increased by GBP1.2m and Quantix which increased by GBP0.7m from strong trading.
All unquoted portfolio companies provide monthly management accounts to ISIS.
Higher operating profits are being achieved across the portfolio from improving
margins and increased sales.
The investment in Reed & Mackay was sold during the period for 4.8 times cost
and the investment in Getting Personal was profitably sold after the period end
to Card Factory.
The AIM-traded portfolio increased by 11 per cent including a significant
increase in value by IDOX plc the largest quoted investment at 3.3 per cent of
NAV. IDOX plc provides software and IT services mostly to the public sector.
The investment in Craneware plc was sold during the period for 4.2 times cost.
NEW INVESTMENT
During the six months to 30 June 2011 a total of GBP2.64 million was invested by
Baronsmead VCT 4 in one unquoted company and two AIM-traded investments, and
five small funding rounds in existing AIM portfolio companies.
The Baronsmead VCTs invested a total of GBP6.50 million in the unquoted Valldata
Group Limited in January 2011, of which Baronsmead VCT 4 invested GBP1.62
million. Wiltshire based Valldata is the UK's leading provider of outsourced
donation processing and fulfilment services for the UK not-for-profit market.
It services over fifty of the largest UK charities and each year manages over 8
million donor interactions and processes over GBP100 million of funds.
There were two new AIM-traded investments during the period. Baronsmead VCT 4
invested GBP0.50 million into Music Festivals plc an operator of live music
events, and GBP0.13 million into Ubisense Group plc a provider of radio frequency
tracking solutions for the high value manufacturing sector. Five follow on
AIM-traded investments totalling GBP0.39 million were also made in Active Risk
Group plc, Driver Group plc, Green Compliance plc, Netcall plc and STM Group
plc.
SHAREHOLDER MATTERS
A variety of choices exist to shareholders to help them meet their personal
investment and tax planning requirements. These include opportunities to
subscribe for further shares, purchases through the market, share buy-back
arrangements and the dividend reinvestment plan.
On 1 August 2011 an amendment to the EU Prospectus Directive was introduced by
HM Government enabling companies to raise up to EUR5.0m over a twelve month
period without the need to publish a prospectus (increased from the previous
limit of EUR2.5m). Dependent upon the Company's requirement for additional
resources to fund new investments in the current tax year, the Board is
currently planning to raise the sterling equivalent of up to EUR5.0m in the early
part of 2012. If confirmed, I will write to shareholders when the quarterly
fact sheet for the three months to 30 September 2011 is published in November
2011 to give further details.
VCT LEGISLATION
The Association of Investment Companies ("AIC"), on behalf of its VCT members,
has undertaken significant research into the funding of private sector
companies. Over the past twelve months, the AIC has published papers
illustrating the economic impact of VCTs. Baronsmead VCT 4 is a member of the
AIC and our Manager, ISIS Equity Partners ("ISIS"), has provided considerable
supporting data from the VCT portfolios for these studies.
In the Budget on 23 March 2011 the Chancellor announced welcome proposals to
amend VCT legislation. This is excellent news both for entrepreneurs and for
private investors seeking to invest in the growth of smaller enterprises. We
are pleased that the Government has recognised the importance of VCTs in
providing financial and advisory support to this important sector of the UK
economy.
The following key changes to qualifying company limits have been proposed from
April 2012 (subject to EU State Aid approval):
* The limit on the maximum number of employees in an investee company is to
be raised from less than 50 to less than 250;
* The limit on the gross assets of an investee company prior to investment is
to be increased from GBP7 million to GBP15 million;
* The maximum investment a qualifying company can receive in a twelve month
period is to be increased from GBP2 million to GBP10 million.
HM Government has also released its consultation paper on 6 July 2011 to
refocus VCTs to ensure they are targeted at genuine risk investment. ISIS,
along with the AIC and the British Venture Capital Association will respond to
this consultation.
OUTLOOK
Many commentators anticipate modest or no growth in the UK economy over the
next year or so due to public sector cuts, tax rises and continuing high levels
of unemployment. However, the Baronsmead VCT 4 portfolio is showing resilience
with the involvement and encouragement of ISIS Equity Partners in the
underlying companies.
Robert Owen
Chairman
Table of Investments and Realisations
Investments in the six months to 30June2011
Company Location Sector Activity Book cost
GBP'000
Unquoted
investments
New
Valldata Group Melksham Business Payment processing for 1,616
Limited Services not-for-profit sector
Music Festivals London Consumer Owner and operator of live 400
plc (Loan note) Markets music festivals and events
Total unquoted investments 2,016
AIM-traded & listed investments
New
Ubisense Group Cambridge IT & Media Technology & services 130
plc offering location system
solutions
Music Festivals London Consumer Owner and operator of live 100
plc Markets music festivals and events
Follow on
Active Risk Maidenhead IT & Media Risk management software 124
Group plc
Green Cirencester Business Small business compliance 101
Compliance plc Services
Netcall plc St Ives IT & Media Communications software 80
Driver Group Rossendale Business Dispute resolution 64
plc Services
STM Group plc Gibraltar Financial Offshore trust and Company 22
Services administration services
Total AIM-traded & listed 621
investments
Total investments in the 2,637
period
Realisations inthe six months to 30June2011
31December Realised
First 2010 profit/ Overall
(loss)
investment valuation this period multiple
Company date GBP'000 GBP'000 return *
Unquoted
realisations
Reed & Mackay Trade sale Nov 05 4,779 229 4.8
Limited
MLS Limited Loan Jul 06 63 - 1.0
repayment
Total unquoted 4,842 229
realisations
AIM-traded&listed realisations
Craneware plc Full market Sep 07 335 (37) 2.7
sale
Total AIM-traded&listed 335 (37)
realisations
Total realisationsin the period 5,177 192|
*Includes interest/dividends received, loan note redemptions and partial
realisations accounted for in prior periods.
|Proceeds of GBP12,000 were also received in respect of an investment, Country
Artists Limited, which had been written off in a prior period.
Investment Portfolio
InvestmentClassification at 30 June2011
By Sector* Percentage
Business Services 31%
Consumer Markets 21%
Financial Services 3%
Healthcare & Education 9%
IT & Media 36%
Total Assets* Percentage
Unquoted - loan stock 33%
Unquoted - ordinary and preference 18%
shares
AIM, listed & NYSE 22%
Interest bearing securities 25%
Net current assets 2%
Time Investments Held* Percentage
Less than 1 year 10%
Between 1 and 3 years 15%
Between 3 and 5 years 50%
Greater than 5 years 25%
* at 30 June 2011 valuation.
Investment Portfolio
31 30 June % of
December Equity
2010 2011 held by % of
Equity
Book valuation valuation % of Baronsmead held
cost net by
Company Sector GBP'000 GBP'000| GBP'000 assets VCT 4 plc all
funds*
Unquoted
Nexus Vehicle Business 2,367 4,182 5,342 8.8 12.6 57.4
Holdings Limited Services
Quantix Limited IT & Media 1,194 2,025 2,757 4.6 11.4 48.0
CableCom IT & Media 1,381 2,490 2,718 4.5 10.6 48.0
Networking
Holdings Limited
Crew Clothing Consumer 984 2,569 2,493 4.1 5.4 22.8
Company Limited Markets
CSC (World) IT & Media 1,606 1,687 2,079 3.4 8.8 40.0
Limited
Kafévend Consumer 1,252 2,032 2,073 3.4 15.8 66.5
Holdings Limited Markets
Getting Personal Consumer 988 1,013 1,811 3.0 8.3 37.5
Limited° Markets
Fisher Outdoor Consumer 1,423 1,777 1,777 2.9 10.5 44.0
Leisure Holdings Markets
Limited
Valldata Group Business 1,616 - 1,616 2.7 8.9 40.6
Limited Services
Independent Healthcare & 1,161 1,848 1,513 2.5 16.2 68.1
Living Services Education
Limited
MLS Limited IT & Media 718 1,161 1,116 1.8 5.3 22.5
Empire World Business 1,297 869 1,099 1.8 | |
Trade Limited Services
Inspired Business 796 976 1,037 1.7 5.0 22.5
Thinking Group Services
Limited
Surgi C Limited Healthcare & 1,101 919 939 1.5 9.8 44.7
Education
TVC Group IT & Media 1,233 774 789 1.3 13.0 59.3
Limited
Playforce Business 1,033 1,023 767 1.3 9.7 44.0
Holdings Limited Services
Carnell Business 1,499 337 675 1.1 8.3 37.5
Contractors Services
Limited
Music Festivals Consumer 400 - 400 0.7 N/A N/A
plc (Loan note) Markets
Total unquoted 22,049 25,682 31,001 51.1
AIM
IDOX plc IT & Media 738 1,158 2,000 3.3 2.5 9.7
Green Compliance Business 882 938 906 1.5 4.0 19.8
plc Services
Netcall plc IT & Media 869 508 817 1.3 4.1 20.2
Jelf Group plc Financial 727 648 755 1.2 1.4 6.3
Services
Electric Word IT & Media 633 714 675 1.1 5.3 28.8
plc
Tasty plc Consumer 470 318 595 1.0 2.5 17.1
Markets
Brulines Group Business 646 544 528 0.9 1.8 9.6
plc Services
Sinclair IS Healthcare & 524 - 508 0.8 0.5 2.5
Pharma plc^ Education
PROACTIS IT & Media 619 614 478 0.8 5.4 26.2
Holdings plc
Accumuli plc IT & Media 332 409 473 0.8 3.6 20.7
FFastFill plc IT & Media 251 316 445 0.7 0.9 6.2
Plastics Capital Business 473 307 416 0.7 1.7 9.8
plc Services
InterQuest Group Business 310 360 394 0.6 1.8 7.0
plc Services
Kiotech Healthcare & 275 339 335 0.5 2.2 16.0
International Education
plc
EG Solutions plc IT & Media 375 357 300 0.5 3.1 14.2
Driver Group plc Business 503 138 249 0.4 3.5 16.2
Services
Begbies Traynor Financial 217 325 235 0.4 0.6 2.5
Group plc Services
Sanderson Group IT & Media 387 209 217 0.4 1.8 6.9
plc
Brady plc IT & Media 175 199 208 0.3 0.5 3.1
Tangent Business 268 158 202 0.3 2.0 10.3
Communications Services
plc
Tristel plc Healthcare & 217 232 175 0.3 1.0 5.4
Education
Real Good Food Consumer 340 58 174 0.3 0.4 2.3
Company (The) Markets
plc
Active Risk IT & Media 159 44 172 0.3 1.1 5.6
Group plc
Ubisense Group IT & Media 130 - 155 0.3 0.3 1.7
plc
Quadnetics Group Business 185 120 138 0.2 0.4 2.1
plc Services
Praesepe plc Consumer 525 167 131 0.2 0.5 2.7
Markets
Autoclenz Business 400 115 125 0.2 3.1 12.3
Holdings plc Services
Cohort plc Business 179 85 104 0.2 0.3 1.4
Services
Music Festivals Consumer 100 - 100 0.2 1.0 5.2
plc Markets
Prologic plc IT & Media 233 140 99 0.2 3.1 15.0
Dods Group plc IT & Media 313 82 94 0.2 0.8 4.4
STM Group plc Financial 162 47 71 0.1 0.8 4.9
Services
Bglobal plc Business 175 172 56 0.1 0.5 2.7
Services
Hangar8 plc Business 43 44 34 0.1 0.5 2.6
Services
Adventis Group IT & Media 291 74 31 0.1 2.6 20.7
plc
Clarity Commerce IT & Media 50 43 23 0.0 0.3 6.0
Solutions plc
Zoo Digital IT & Media 235 14 14 0.0 0.1 0.9
Group plc
Total AIM 13,411 9,996 12,432 20.5
Listed
Chime IT & Media 369 386 475 0.8 0.2 1.3
Communications
plc
Vectura Group Healthcare & 245 355 405 0.7 0.2 1.3
plc Education
Marwyn Value Financial 64 55 49 0.1 1.3 6.0
Investors plc Services
Total Listed 678 796 929 1.6
New York Stock E
xchange
Alere Inc Healthcare & 157 179 174 0.3 0.0 0.0
Education
Total New York 157 179 174 0.3
Stock Exchange
Interest bearing
securities
UK T-Bill 11/07/ 7,497 - 7,497 12.4
11
UK T-Bill 12/09/ 7,490 - 7,490 12.4
11
Total interest 14,987 - 14,987 24.8
bearing
securities
Total invest 51,282 36,653 59,523 98.3
ments
Net current as 1,053 1.7
sets
Net assets 60,576 100.0
° Getting Personal Limited was sold after the period end.
^ Sinclair IS Pharma plc shares received in exchange for IS Pharma plc shares
following a merger of the two companies.
| Following a restructuring, the effective ownership percentage is dependent on
final exit proceeds.
| The total investment valuation at 31 December 2010 per the table above does
not agree to the audited accounts due to the purchases and sales since that
date.
* All funds managed by the same investment manager, ISIS EP LLP, including
Baronsmead VCT 4.
AIM, Listed and NYSEPortfolio Concentration Analysisat 30June2011
% of
Investment ranking Book cost Valuation Quoted
by valuation GBP'000 GBP'000 portfolio
Top Ten 6,477 7,737 57.2
11-20 3,368 3,469 25.6
21-30 2,556 1,654 12.2
30+ 1,845 675 5.0
Total 14,246 13,535 100.0
Independent Review Report to Baronsmead VCT 4 plc
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30 June
2011 which comprises the Income Statement, Reconciliation of Movement in
Shareholders' Funds, Balance Sheet and Statement of Cash Flows and the related
explanatory notes. We have read the other information contained in the
half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed
set of financial statements.
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the Disclosure
and Transparency Rules ("the DTR") of the UK's Financial Services Authority
("the UK FSA"). Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company for our review work, for
this report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for preparing the
half-yearly financial report in accordance with the DTR of the UK FSA.
As disclosed in note 1, the annual financial statements of the Company are
prepared in accordance with UK Accounting Standards and applicable law (UK
Generally Accepted Accounting Practice). The condensed set of financial
statements included in this half-yearly financial report has been prepared in
accordance with the
Statement Half-Yearly Financial Reports as issued by the UK Accounting
Standards Board.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International
Standards on Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of
financial statements in the half-yearly financial report for the six months
ended 30 June 2011 is not prepared, in all material respects, in accordance
with the Statement Half-Yearly Financial Reports as issued by the UK Accounting
Standards Board and the DTR of the UK FSA.
Simon Pashby
for and on behalf of KPMG Audit Plc
Chartered Accountants, Edinburgh
18 August 2011
Responsibility statement of the Directors in respect of the half-yearly fi
nancial report
We confirm that to the best of our knowledge:
?the condensed set of financial statements has been prepared in accordance with
the Statement `Half-yearly financial reports' issued by the UK Accounting
Standards Board;
? the Chairman's Statement (constituting the interim management report)
includes a fair review of the information required by DTR 4.2.7R of the
Disclosure and Transparency Rules, being an indication of important events that
have occurred during the first six months of the financial year and their
impact on the condensed set of financial statements;
? the Statement of Principal Risks and Uncertainties is a fair review of the
information required by
DTR 4.2.7R being a description of the principal risks and uncertainties for the
remaining six months of the year; and
? the financial statements include a fair review of the information required by
DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during that period; and any changes in the related
party transactions described in the last annual report that could do so.
By Order of the Board,
R Owen
Chairman
18 August 2011
Unaudited Income Statement
For the six months to 30 June 2011
Six months to 30 June Six months to 30 June Year to 31 December
2011 2010 2010*
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP GBP'000 GBP'000 GBP GBP'000 GBP'000 GBP'000*
'000 '000
Unrealised gains on - 4,768 4,768 - 1,366 1,366 - 4,600 4,600
investments
Realised gains on - 204 204 - 731 731 - 1,602 1,602
investments
Income 842 - 842 1,179 - 1,179 2,266 - 2,266
Investment (186) (558) (744) (167) (502) (669) (350) (1,049) (1,399)
management fee
Other expenses (185) - (185) (167) - (167) (362) - (362)
Profit on ordinary 471 4,414 4,885 845 1,595 2,440 1,554 5,153 6,707
activities before
taxation
Taxation on (88) 88 - (210) 210 - (395) 395 -
ordinary activities
Profit on ordinary 383 4,502 4,885 635 1,805 2,440 1,159 5,548 6,707
activities after
taxation
Return per share: 0.65p 7.63p 8.28p 1.11p 3.17p 4.28p 1.99p 9.50p 11.49p
Basic
* These figures are audited.
Unaudited Reconciliation of Movement in Shareholders' Funds
For the six months to 30 June 2011
Six Six
months to months to Year to
30 June 30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000*
Opening shareholders' funds 58,704 47,216 47,216
Profit for the period 4,885 2,440 6,707
Purchase of shares for treasury (640) (716) (1,146)
Gross proceeds of share issues - 8,165 8,165
Expenses of share issue and buy backs for (3) (443) (446)
treasury
Dividends paid (2,370) - (1,792)
Closing shareholders' funds 60,576 56,662 58,704
* These figures are audited.
Notes
1. The unaudited interim results which cover the six months to 30 June 2011
have been prepared in accordance with applicable accounting standards and
adopting the accounting policies set out in the statutory accounts of the
Company for the year to 31 December 2010.
2. Return per ordinary share is based on a weighted average of 59,008,711
ordinary shares in issue (30 June 2010 - 57,060,828 ordinary shares, 31
December 2010 - 58,377,642).
3. Earnings for the six months to 30 June 2011 should not be taken as a guide
to the results of the full financial year to 31 December 2011.
4. During the six months to 30 June 2011 the Company purchased 730,000 ordinary
shares to be held in treasury at a cost of GBP640,000. At 30 June 2011 the
Company holds 5,888,593 ordinary shares in treasury. Excluding treasury shares,
there were 58,514,236 ordinary shares in issue at 30 June 2011 (30 June 2010 -
59,734,236, 31 December 2010 - 59,244,236).
5. The interim dividend of 3.0p per ordinary share (0.65p revenue and 2.35p
capital) will be paid on 29 September 2011 to shareholders on the register on
16 September 2011. The ex-dividend date is 14 September 2011.
6. The financial information contained in this half-yearly report does not
constitute statutory accounts as defined in Section 434 of the Companies Act
2006. The information for the year to 31 December 2010 has been extracted from
the latest published audited financial statements. The audited financial
statements for the year to 31 December 2010 have been filed with the Registrar
of Companies. The auditor's report thereon was (i) unqualified, (ii) did not
include reference to any matters to which the auditors drew attention by way of
emphasis without qualifying their report and (iii) did not contain a statement
under section 498(2) or (3) of the Companies Act 2006. No statutory accounts in
respect of any period after 31 December 2010 have been reported on by the
Company's auditors or delivered to the Registrar of Companies.
7. Copies of the half-yearly financial report have been distributed to
shareholders and are available from the Registered Office of the Company at 100
Wood Street, London EC2V 7AN.
Unaudited Balance Sheet
As at 30 June 2011
As at As at As at
30 June 30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000*
Fixed assets
Unquoted investments 31,001 29,208 30,461
Traded on AIM 12,432 8,875 10,871
Traded on NYSE 174 136 179
Listed on LSE 929 530 796
Interest bearing securities 14,987 15,492 14,980
59,523 54,241 57,287
Current assets
Debtors 631 249 447
Cash at bank and on deposit 884 2,630 1,456
1,515 2,879 1,903
Creditors (amounts falling due within (462) (458) (486)
one year)
Net current assets 1,053 2,421 1,417
Net assets 60,576 56,662 58,704
Capital and reserves
Called-up share capital 6,440 6,440 6,440
Share premium account 21,192 21,192 21,192
Capital redemption reserve 8,622 8,622 8,622
Capital reserve 15,690 15,800 14,811
Revaluation reserve 8,240 4,200 7,304
Revenue reserve 392 408 335
Equity shareholders' funds 60,576 56,662 58,704
* These figures are audited
As at As at As at
30 June 30 June 31 December
2011 2010 2010*
Net asset value per share 103.52p 94.86p 99.09p
Number of ordinary shares in 58,514,236 59,734,236 59,244,236
circulation
Treasury net asset value per share 102.17p 94.02p 98.16p
Number of ordinary shares in 58,514,236 59,734,236 59,244,236
circulation
Number of ordinary shares held in 5,888,593 4,668,593 5,158,593
Treasury
Number of listed ordinary shares in 64,402,829 64,402,829 64,402,829
issue
* These figures are audited.
Unaudited Statement of Cash Flows
For the six months to 30 June 2011
Six months Six months Year
to to to
30 June 31 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000*
Net cash (outflow)/inflow from operating (295) 259 251
activities
Capital expenditure and financial 2,736 (6,809) (5,750)
investment
Equity dividends paid (2,370) - (1,792)
Net cash inflow/(outflow) before financing 71 (6,550) (7,291)
Net cash (outflow)/inflow from financing (643) 7,011 6,578
(Decrease)/increase in cash (572) 461 (713)
Reconciliation of net cash (outflow)/in
flow to movement in net cash
(Decrease)/increase in cash (572) 461 (713)
Opening net cash 1,456 2,169 2,169
Net cash at end of period 884 2,630 1,456
Reconciliation of operating profit before taxation to net cash flow from
operating activities
Profit on ordinary activities before 4,885 2,440 6,707
taxation
Gains on investments (4,972) (2,097) (6,202)
Changes in working capital and other (208) (84) (254)
non-cash items
Net cash (outflow)/inflow from operating (295) 259 251
activities
*These figures are audited.
Principal Risks and Uncertainties
The Company's assets consist of equity and fixed interest investments, cash and
liquid resources. Its principal risks are therefore market risk, credit risk
and liquidity risk. Other risks faced by the Company include economic, loss of
approval as a Venture Capital Trust, investment and strategic, regulatory,
reputational, operational and financial risks. These risks, and the way in
which they are managed, are described in more detail under the heading
Principal risks, risk management and regulatory environment within the Business
Review and Notes in the Company's Annual Report and Accounts for the year to 31
December 2010. The Company's principal risks and uncertainties have not changed
materially since the date of that report.
Related Parties
ISIS EP LLP (`the Manager') manages the investments of the Company. The Manager
also provides or procures the provision of secretarial, accounting,
administrative and custodian services to the Company. Under the management
agreement, the Manager receives a fee of 2.5 per cent per annum of the net
assets of the Company. This is described in more detail under the heading
Management within the Report of the Directors in the Company's Annual Report
and Accounts for the year to 31 December 2010. During the period the Company
has incurred management fees of GBP744,000 and secretarial fees of GBP60,000
payable to the Manager.
Going Concern
After making enquires, and bearing in mind the nature of the Company's business
and assets, the Directors consider that the Company has adequate resources to
continue in operational existence for the foreseeable future. In arriving at
this conclusion the Directors have considered the liquidity of the Company and
its ability to meet obligations as they fall due for a period of at least
twelve months from the date that these financial statements were approved. As
at 30 June 2011 the Company held cash balances & investments in interest
bearing securities with a combined value of GBP15,871,000. Cash flow projections
have been reviewed and show that the Company has sufficient funds to meet both
its contracted expenditure and its discretionary cash outflows in the form of
the share buyback programme and dividend policy. The Company has no external
loan finance in place and therefore is not exposed to any gearing covenants.
Shareholder Information and Contact Details
Shareholder Communication
Baronsmead
Baronsmead VCT 4's website is www.baronsmeadvct4.co.uk.
The Board has a policy of regular and open communication with shareholders
based around quarterly reporting.
ISIS Equity Partners
The Manager for Baronsmead VCT 4 plc is ISIS EP LLP.
For information on asset allocations, dividend policies, investment process,
DRIP mechanism, share price movements, the share price discount and selling
shares please contact:
By email: michael.probin@isisep.com; margaret.barff@isisep.com
By telephone: Michael Probin 020 7506 5796; Margaret Barff 020 7506 5630.
Internet: www.isisep.com
For comparative performance data of Baronsmead VCT 4 and other generalist VCTs
please visit the AIC performance statistics page at: www.theaic.co.uk/
statistics-publications
Computershare
The Registrar for Baronsmead VCT 4 is Computershare Investors Services PLC. To
change the details held by Computershare in respect of your shareholding,
including change of address, bank account details, joining the DRIP, please
contact them as follows:
Baronsmead shareholder helpline: 0870 703 0137
(calls charged at geographical and national rates)
The Baronsmead shareholder helpline is available on UK business days between
Monday and Friday, 8.30a.m. to 5p.m. If you wish to speak to someone please
press `0'. The automated self-service system is available 24 hours a day, 7
days a week. You will need your Shareholder Reference Number (SRN), which for
security reasons you should always keep confidential and is available on your
share certificate and dividend tax voucher, in order to:
* confirm the latest share price
* confirm your current share holding balance
* confirm payment history
* order a Change of Address, Dividend Bank Mandate or Stock Transfer Form
Managing online your own shareholding via the Investor Centre:
www.investorcentre.co.uk
Computershare's secure website, Investor Centre, enables shareholders to manage
their shareholding online. Using your SRN you will be able to do the following:
* Holding Enquiry - view balances, values, history, payments and reinvestments
* Payments Enquiry - view your dividends and other payment types
* Address Change - change your registered address
* Bank Details Update - choose to receive your dividend payments directly into
your bank account instead of by
cheque
* e-Comms sign-up - choose to receive email notification when your shareholder
communications become
available instead of paper communications
* Outstanding Payments - reissue payments using our online replacement service
* Downloadable Forms - including dividend mandates, stock transfer, dividend
reinvestment and change of
address forms
* By email - web.queries@computershare.co.uk
Share Price
The Company's shares are listed on the London Stock Exchange. The mid-price of
the Company's shares is given daily in the Financial Times in the Investment
Companies section of the London Share Service. Share price information can also
be obtained from many financial websites.
Trading Shares
The Company's shares can be bought and sold in the same way as any other quoted
company on the London Stock Exchange via a stockbroker. As buying and selling
existing shares in VCTs is complex, Shareholders should seek to trade shares on
a "best execution" basis if appropriate.
The marketmakers in the shares of Baronsmead VCT 4 plc are:
Matrix Corporate Capital LLP 020 3206 7000 (the Company's broker)
Singer Capital Markets Limited 020 3205 7500
Winterflood Securities Limited 020 3400 0251
Financial Calendar
November 2011 Quarterly Fact Sheet to 30 September 2011
February 2012 Results for the year to 31 December 2011 announced and
annual report and accounts distributed to shareholders
April 2012 Annual General Meeting
Additional Information
The information provided in this report has been produced in order for
shareholders to be informed of the activities of the Company during the period
it covers. ISIS EP LLP does not give investment advice and the naming of
companies in this report is not a recommendation to deal in them.
Baronsmead VCT 4 plc is managed by ISIS EP LLP which is authorised and
regulated by the FSA. Past performance is not necessarily a guide to future
performance. Stockmarkets and currency movements may cause the value of
investments and the income from them to fall as well as rise and investors may
not get back the amount they originally invested. Where investments are made in
unquoted securities and smaller companies, their potential volatility may
increase the risk to the value of, and the income from, the investment.
Corporate Information
Directors Registrar and Transfer Office
Robert Owen (Chairman) Computershare Investor Services PLC
Ian Kirkpatrick|* PO Box 82
Alan Pedder CBE|^ The Pavilions
Robin Williams Bridgwater Road
Bristol BS99 6ZZ
Secretary Tel: 0870 703 0137
ISIS EP LLP
Brokers
Registered Office Matrix Corporate Capital LLP
100 Wood Street One Vine Street
London EC2V 7AN London W1J 0AH
Investment Manager Auditors
ISIS EP LLP KPMG Audit Plc
100 Wood Street Saltire Court
London EC2V 7AN 20 Castle Terrace
Edinburgh EH1 2EG
Investor Relations
Michael Probin Solicitors
020 7506 5796 Norton Rose
3 More London Riverside
Registered Number London SE1 2AQ
04313537
VCT Status Adviser
PricewaterhouseCoopers LLP
| Chairman of the Nomination Committee 1 Embankment Place
* Chairman of the Audit Committee London WC2N 6RH
| Chairman of the Management Engagement
and
Remuneration Committee Website
www.baronsmeadvct4.co.uk
^ Senior Independent Director
Copies of the half yearly report can be obtained from the following website:
www.baronsmeadvct4.co.uk.
END
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on this announcement (or any other website) is
incorporated into, or forms part of, this announcement.
END
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