Baronsmead VCT 4 plc
Half Yearly Financial Report
16 August 2013
The Directors announce the unaudited half-yearly financial report for the six
months to 30 June 2013 as follows:-
Investment Objective
Baronsmead VCT 4 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 VCT qualifying 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.
Share price discount policy
The Company buys back its shares if, in the opinion of the Board, a repurchase
would be in the best interests of the Company's shareholders as a whole. Shares
are bought back through the market rather than directly from shareholders. This
minimises the number of shares bought back by the Company while maximising the
opportunity for investors to invest in the Company's existing shares.
In November 2012, the Company announced a change to its share price discount
policy whereby the Company would seek to narrow the discount between the share
price and the net asset value by buying back shares at a 5 per cent discount to
net asset value instead of 10 per cent.
Shareholder choice
The Board wishes to provide shareholders with a number of choices that enable
them to utilise their investment in Baronsmead VCT 4 in ways that best suit
their personal investment and tax planning and in a way that treats all
shareholders equally.
* Fund raising | From time to time the Company seeks to raise additional
funds by issuing new shares at a premium to the latest published net asset
value to account for issue costs. On 28 January 2013 the Company's offer
for subscription to raise £5 million (£4.75 million after costs) was fully
subscribed.
* Dividend Reinvestment Plan | The Company offers a Dividend Reinvestment
Plan which enables shareholders to purchase additional shares through the
market in lieu of cash dividends. Approximately 263,000 shares were bought
in this way between 1 January 2013 and 30 June 2013.
* Buy back of shares | From time to time the Company buys its own shares
through the market in order to maintain a mid share price discount of
approximately 5 per cent to net asset value. In the six months to 30 June
2013, 730,000 shares were bought back representing 1 per cent of the shares
in issue at 30 June 2013 at prices which represented an average discount of
5 per cent to the latest published net asset values.
* Secondary market | The Company's shares are listed on the London Stock
Exchange and can be bought using a stockbroker or authorised share dealing
service in the same way as shares of any other listed company. In addition
to the shares bought by participants of the Dividend Reinvestment Plan,
approximately 50,000 shares were bought by investors in the Company's
existing shares in the six months to 30 June 2013.
FINANCIAL HEADLINES
● +2.9% - Net asset value ("NAV") per share increased 2.9 per cent to 100.7p in
the six months ended 30 June 2013 before deduction of the interim dividend.
● 3.0p - Interim dividend of 3.0p for the six month period to 30 June 2013.
● £3.9m - Invested in seven new and six follow on investments in the six months
to 30 June 2013.
● 188.4p - NAV total return to shareholders for every 100.0p invested at
launch.
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.
Year subscribed Subscription Income Net Cumulative Net annual Gross
price tax cash dividends yield± yield†
p reclaim invested paid* % %
p p p
2002 100.00 20.00 80.00 62.00 6.7% 9.0%
2006 (C shares)** 100.00 40.00 60.00 40.66 9.3% 12.5%
2010 (March) 95.90 28.80 67.10 24.00 10.7% 14.3%
2012 (December) 107.50 32.30 75.20 7.00 18.1% 24.1%
2013 (March) 102.70 30.80 71.90 3.00 13.7% 18.3%
* Includes interim dividend of 3.0p to be paid on 20 September 2013
± 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
of tax on dividends (currently 32.5 per cent). The gross equivalent yield based
on additional rate of tax on dividends (42.5 per cent in the tax year 2011/12
and 2012/13 and 37.5 per cent from the 2013/14 tax year), has not been
included. For those shareholders who earn over £150,000 per tax year and who
would otherwise pay this additional rate of tax on dividends, the gross
equivalent yield will be higher than the figures stated above.
**Dividends paid to C shareholders post conversion have been adjusted by the
conversion ratio (1.0372828).
CHAIRMAN'S STATEMENT
I am delighted to report an uplift of 2.79p per share in the Net Asset Value
for the six months to June 2013 and an interim dividend of 3p will be paid from
profits realised during the period.
RESULTS AND DIVIDEND
The NAV increased during the period from 97.92p to 100.71p per share before
taking account of the interim dividend of 3.0p.
LONG TERM PERFORMANCE
Since inception in 2001, the Company's objective has been to generate
consistent returns over the long-term through investing in a diverse portfolio
of profitable unquoted and AIM traded companies with growth potential.
The fund has generated a NAV total return of 188.4p for every 100p invested
before taking account of the tax reliefs on both the initial investment and on
dividends paid since inception. It has also paid a consistent dividend of 7p
for the last 6 years which equates to a yield of 7.2 per cent (9.6 per cent for
higher tax payers) based on the 30 June 2013 share price.
PORTFOLIO REVIEW
Portfolio performance
The unquoted portfolio valuation has remained steady during the period partly
reflecting the number of newer investments still held at cost whilst the quoted
portfolio continued to make good progress with a 6 per cent overall increase in
value. The largest valuation movements were an uplift of £1.0 million in the
value of the unquoted holding in CableCom and a fall of £0.7 million in IDOX
following a market correction and a strong increase in the previous twelve
months. The Company sold one third of IDOX earlier in the year, which yielded a
profit of £1.1 million.
New investments
Seven new investments were completed in four of the Company's strategic sectors
together with a number of follow on funding rounds.
The Company invested £2.6 million in 3 new unquoted companies, £1.0 million in
Create Health, a fertility clinic, £0.9 million in Eque2, which delivers
software expertise to the construction and contracting sector and £0.7 million
in Armstrong Craven, a provider of senior talent and HR intelligence to leading
global corporates.
A total investment of £0.7 million was made in four new quoted companies during
the period.
Following the period end an unquoted investment was made in Luxury for Less, an
online bathroom products retailing business using an existing acquisition
vehicle and £0.95 million in Key Travel, a company focussed on the non-profit
sector.
Full details regarding the investments during the period are set out in the
table below.
Growth Fund
The Company's unquoted strategy has always been to invest in larger,
established companies alongside other funds managed by the Company's investment
manager ISIS EP LLP ("ISIS"), which includes the other Baronsmead VCTs and,
prior to 2004, its institutional clients.
The Directors are pleased to report that ISIS has succeeded in raising a fund
of £50 million from leading UK and international, non state aided institutional
investors specifically for the purpose of investing alongside the Baronsmead
VCTs in unquoted companies. This will enable the Company to participate in
investments where the initial commitment exceeds £5 million which, since the
March 2012 Budget, is the maximum amount of investment a company can accept
from state aided funds in any 12 month period. It is anticipated that investing
alongside the new ISIS Growth I LP ("the Growth Fund"), will substantially
increase the investment opportunities available to the Company. Investments
alongside the Growth Fund will be made in accordance with an agreed allocation
basis and on the same terms.
The Growth Fund commenced on 31 May 2013 and three of the unquoted investments
mentioned above, Armstrong Craven, Luxury for Less and Key Travel were
companies in which both the BVCTs and the Growth Fund invested.
Investment realisations
A total of £6.6 million was realised from the total sale of three investments
and one partial realisation detailed in the table below. The unquoted
investments in MLS and Independent Living Services generated multiples of 2.8
and 2.5 times original cost respectively. The quoted investment in FFastFill
realised a multiple of 2.8 and the partial realisation of the Company's holding
in IDOX realised a multiple of 6.1 times the original cost of the shares sold.
SHAREHOLDER MATTERS
Fundraising
The Board is currently considering raising further funds in the current tax
year. It is currently anticipated that the subscription documentation, which
will contain the full terms and conditions, will be available in early 2014.
Shareholders will be sent the subscription documentation as soon as it is
published.
Share price discount policy
The difference between the share price and the net asset value of the Company's
shares has been narrowed from a discount of 10 per cent prevailing before 2012
to an average of 3.8 per cent in the six months to 30 June 2013.
The new share price discount policy will be kept under continuous review and
may be subject to revision.
The Company bought back 730,000 shares during this period (1 per cent of the
shares in issue at the end of the period) at an average discount to NAV of
approximately 5 per cent. Shares will be bought back depending on market
conditions at the time and only where the Directors believe it to be in the
best interests of all shareholders.
OUTLOOK
There appears to be a growing consensus that the outlook for the UK economy is
improving with a greater degree of optimism than has existed for some years
although it is still considered to be fragile and recovery remains uncertain.
The current well funded diverse portfolio is robust, and well resourced and
managed and has demonstrated a high degree of resilience throughout the
downturn. There are encouraging signs that the number of available investment
opportunities is increasing with five unquoted investments completed so far in
2013. We believe that the Company is well placed to take advantage of any
upturn should it occur.
Robert Owen
Chairman
16 August 2013
Table of Investments and Realisations
Investments in the six months to 30 June 2013
Company Location Sector Activity
Unquoted Book
investments cost
New £000
Create Health London Healthcare & Provider of fertility 1,065
Limited Education services
Eque2 Limited Manchester TMT* Enterprise resource 877
planning (ERP) solutions
provider to the
construction industry
Armstrong Manchester Business HR consultancy offering 673
Craven Limited Services provision of executive
search and business
intelligence services
Follow on
Impetus London Business Automotive consultancy and 247
Holdings Services outsourced service
Limited provider
Playforce Melksham Business UK playground design, 163
Holdings Services distribution and
Limited installation
Total unquoted investments 3,025
AIM-traded, listed & PLUS investments
New
Bioventix plc Farnham, Surrey Healthcare & Develops sheep monoclonal 227
Education antibodies
Ideagen plc Matlock TMT* Compliance software 225
solutions
Pinnacle Stirlingshire TMT* B2B telecoms and IT 168
Technology reseller
Group plc
One Media iP Buckinghamshire TMT* Content acquisition and 56
Group plc distribution
Follow on
TLA Worldwide London Business Baseball sports management 113
plc Services and marketing business
Green Worcester Business Small business compliance 50
Compliance plc Services
Accumuli plc Salford TMT* Managed IT security 40
Tangent London Business Digital direct marketing 40
Communications Services
plc
Total AIM-traded,listed & PLUS investments 919
Total investments in the period 3,944
*Technology, Media and Telecommunications ("TMT").
Realisations in the six months to 30 June 2013
Company First 31 Realised Overall
investment December profit/ multiple
date 2012 (loss) return*
valuation this
£'000 period
£'000
Unquoted realisations
MLS Limited Full trade Jul 06 956 6 2.8
sale 2.5
Independent Living Full trade Sep 05 3,322 (718)
Services Limited sale
Total unquoted 4,278 (708)
realisations
AIM-traded & listed realisations
FFastFill plc Full trade Jun 07 612 262 2.8
sale
IDOX plc Market sale May 02 1,247 19 6.1
Total AIM-traded & listed realisations 1,859 281
Total realisations in the period 6,137 (427)
* Includes interest/dividends received, loan note redemptions and partial
realisations accounted for in prior periods.
Summary Investment Portfolio
Company Sector Book 30 June 31 % of % of % of
cost 2013 December net Equity Equity
valuation 2012 assets held by held
£'000 £'000 valuation Baronsmead by all
£'000 VCT 4 plc funds#
Unquoted
CableCom Networking TMT* 1,381 5,361 4,328 8.1 10.6 48.0
Holdings Limited
Nexus Vehicle Business 2,367 4,616 4,768 7.0 12.3 56.0
Holdings Limited Services
CSC (World) Limited TMT* 1,607 2,826 2,410 4.3 8.8 40.0
Kafevend Holdings Consumer 1,252 2,683 2,956 4.1 15.8 66.5
Limited Markets
Crew Clothing Consumer 1,344 2,485 3,020 3.8 6.1 25.5
Holdings Limited Markets
Valldata Group Business 1,617 2,168 1,754 3.3 8.8 39.8
Limited Services
Inspired Thinking Business 796 1,825 1,571 2.8 5.0 22.5
Group Limited Services
Fisher Outdoor Consumer 1,423 1,682 1,656 2.6 10.5 44.0
Leisure Holdings Markets
Limited
Independent Healthcare 1,346 1,569 1,491 2.4 10.9 55.0
Community Care & Education
Management Limited
Impetus Holdings Business 1,304 1,174 1,057 1.8 7.8 39.3
Limited Services
Pho Holdings Limited Consumer 987 1,095 987 1.7 5.5 28.0
Markets
Create Health Healthcare 1,065 1,065 - 1.6 5.7 29.0
Limited & Education
Arcas Investments Business 1,000 1,000 1,000 1.5 9.6 48.6
Limited Services
Consumer Investment Consumer 1,000 1,000 1,000 1.5 9.6 48.6
Partners Limited Markets
HealthTech Healthcare 1,000 1,000 1,000 1.5 9.6 48.6
Innovation Partners & Education
Limited
Quest Venture Business 1,000 1,000 1,000 1.5 9.6 48.6
Partners Limited Services
Riccal Investments Business 1,000 1,000 1,000 1.5 9.6 48.6
Limited Services
Eque2 Limited TMT* 877 877 - 1.3 7.6 38.5
Happy Days Healthcare 833 833 833 1.3 8.4 42.5
Consultancy Limited & Education
Armstrong Craven Business 673 673 - 1.0 7.7 46.0
Limited Services
Other investments 4,936 658 862 1.0
Total unquoted 28,808 36,590 55.6
AIM
Netcall plc TMT* 868 1,931 1,337 2.9 4.1 20.5
IDOX plc TMT* 413 1,780 3,744 2.7 1.3 5.0
Driver Group plc Business 563 1,059 786 1.6 4.1 19.4
Services
Jelf Group plc Financial 727 1,038 990 1.6 1.4 5.8
Services
Tasty plc Consumer 470 1,008 595 1.5 2.5 17.1
Markets
Accumuli plc TMT* 505 990 636 1.5 4.5 24.7
TLA Worldwide plc Business 733 927 589 1.4 4.2 20.4
Services
Escher Group TMT* 614 802 885 1.2 1.9 9.7
Holdings plc
Anpario plc Healthcare 275 689 506 1.1 2.0 14.7
& Education
Dods (Group) plc TMT* 991 542 610 0.8 4.0 20.1
Inspired Energy plc Business 300 476 405 0.7 2.4 11.8
Services
Sinclair IS Pharma Healthcare 524 475 490 0.7 0.4 2.2
plc & Education
Plastics Capital plc Business 473 449 317 0.7 1.7 9.8
Services
Tangent Business 523 439 495 0.7 2.2 11.3
Communications plc Services
Hangar8 plc Business 387 405 456 0.6 3.0 14.0
Services
Electric Word plc TMT* 713 392 371 0.6 5.2 27.7
Vianet Group plc Business 646 378 508 0.6 1.9 9.7
Services
Sanderson Group plc TMT* 387 364 379 0.6 1.8 6.8
GB Group plc TMT* 150 360 341 0.6 0.3 1.7
EG Solutions plc TMT* 375 331 379 0.5 2.8 12.7
Other investments 5,061 2,752 2,570 4.1
Total AIM 15,698 17,587 26.7
Listed
Chime Communications TMT* 369 441 396 0.7 0.2 0.8
plc
Vectura Group plc Healthcare 245 411 427 0.7 0.2 1.3
& Education
Marwyn Value Financial 64 28 33 0.0 1.3 6.0
Investors plc Services
Marwyn Management Financial 525 24 36 0.0 0.3 1.6
Partners plc Services
Total listed 1,203 904 1.4
PLUS
Bioventix plc Healthcare 227 264 - 0.4 1.7 7.7
& Education
Total PLUS 227 264 0.4
Listed interest
bearing securities
UK T-Bill 29/07/13 2,998 2,998 - 4.6
UK T-Bill 02/09/13 2,499 2,499 - 3.8
Total listed 5,497 5,497 8.4
interest bearing
securities
Total investments 51,433 60,842 92.5
Net current assets 4,916 7.5
Net assets 65,758 100.0
# All funds managed by the same investment manager, ISIS EP LLP, including
Baronsmead VCT 4 plc.
* Technology, Media & Telecommunications ("TMT").
The full investment portfolio can be found below.
AIM, Listed & PLUS Portfolio
Concentration Analysis at 30 June 2013
Investment ranking by valuation Book cost Valuation % of quoted
£'000 £'000 portfolio
Top Ten 6,159 10,766 57.4
11-20 4,567 4,230 22.5
21-30 2,645 2,714 14.5
31+ 3,757 1,045 5.6
Total 17,128 18,755 100.0
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
2013 which comprises the Income Statement, Reconciliation of Movement in
Shareholders' Funds, Balance Sheet and Cash Flow Statement 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 Conduct Authority
('the UK FCA'). 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 FCA.
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 2013 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 FCA.
Catherine Burnet
for and on behalf of KPMG Audit Plc
Chartered Accountants, Edinburgh
16 August 2013
Responsibility statement of the Directors in respect of the half-yearly
financial 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 as 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 outlined below 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
16 August 2013
Unaudited Income Statement
For the six months to 30 June 2013
Six months to Six months to Year to
30 June 2013 30 June 2012 31 December 2012*
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Unrealised gains - 1,675 1,675 - 4,551 4,551 - 7,150 7,150
on investments
Realised - (427) (427) - 113 113 - 254 254
(losses)/gains
on investments
Income 1,610 - 1,610 319 - 319 1,132 - 1,132
Investment (207) (622) (829) (191) (572) (763) (385) (1,155) (1,540)
management fee
Other expenses (237) - (237) (193) - (193) (390) - (390)
Profit/(loss) on 1,166 626 1,792 (65) 4,092 4,027 357 6,249 6,606
ordinary
activities
before taxation
Taxation on (217) 217 - - - - (30) 30 -
ordinary
activities
Profit/(loss) on 949 843 1,792 (65) 4,092 4,027 327 6,279 6,606
ordinary
activities
after taxation
Return per 1.45p 1.29p 2.74p (0.10)p 6.70p 6.60p 0.53p 10.22p 10.75p
ordinary share:
Basic
*Figures as at 31 December 2012 are audited.
Unaudited Reconciliation of Movement in Shareholders' Funds
For the six months to 30 June 2013
Six Six
months to months to Year to
30 June 30 June 31 December
2013 2012 2012
£'000 £'000 £'000*
Opening shareholders' funds 66,246 54,786 54,786
Profit for the period 1,792 4,027 6,606
Gross proceeds of share issues 1,054 4,135 8,080
Purchase of shares for treasury (699) (468) (952)
Expenses of share issue & buy backs (35) (198) (418)
for treasury
Dividends paid (2,600) - (1,856)
Closing shareholders' funds 65,758 62,282 66,246
* Figures as at 31 December 2012 are audited.
Notes
1. The unaudited interim results which cover the six months to 30 June 2013
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 2012.
2. Return per ordinary share is based on a weighted average of 65,382,907
ordinary shares in issue (30 June 2012 - 61,039,183; 31 December 2012 -
61,474,340).
3. Earnings for the six months to 30 June 2013 should not be taken as a guide
to the results of the full financial year to 31 December 2013.
4. During the six months to 30 June 2013 the Company purchased 730,000
ordinary shares to be held in treasury at a cost of £699,000. At 30 June
2013, the Company holds 7,920,130 ordinary shares in treasury. Excluding
treasury shares, there were 65,297,059 ordinary shares in issue at 30 June
2013 (30 June 2012 - 61,859,931; 31 December 2012 - 65,000,516).
5. The interim dividend of 3.0p per ordinary share (1.35p revenue, 1.65p
capital) will be paid on 20 September 2013 to shareholders on the register
on 6 September 2013. The ex-dividend date is 4 September 2013.
6. The financial information contained in this half-yearly financial report
does not constitute statutory accounts as defined in Section 434 of the
Companies Act 2006. The information for the year to 31 December 2012 has
been extracted from the latest published audited financial statements. The
audited financial statements for the year to 31 December 2012 have been
filed with the Registrar of Companies. The auditor's report thereon was (i)
unqualified, (ii) did not include a 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 2012 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 2013
As at 30 As at 30 As at 31
June 2013 June 2012 December 2012
£'000 £'000 £'000
Fixed assets
Unquoted investments 36,590 35,235 36,971
Traded on AIM 17,587 16,205 18,001
Listed on LSE 904 763 892
Listed on PLUS 264 - -
Listed interest bearing securities 5,497 7,197 2,899
60,842 59,400 58,763
Current assets
Debtors 350 308 4,236
Cash at bank 2,811 3,046 1,344
Cash on deposit 2,500 - 2,500
5,661 3,354 8,080
Creditors (amounts falling due within one (745) (472) (597)
year)
Net current assets 4,916 2,882 7,483
Net assets 65,758 62,282 66,246
Capital and reserves
Called-up share capital 7,322 6,852 7,219
Share premium account 28,998 24,717 28,078
Capital redemption reserve 8,622 8,622 8,622
Revaluation reserve 9,409 13,134 11,660
Capital reserve 10,408 9,006 10,324
Revenue reserve 999 (49) 343
Equity shareholders' funds 65,758 62,282 66,246
* Figures as at 31 December 2012 are audited.
As at As at As at
30 June 30 June 31 December
2013 2012 2012*
Net asset value per share 100.71p 100.68p 101.92p
Number of ordinary shares in circulation 65,297,059 61,859,931 65,000,516
Treasury net asset value per share 100.29p 99.52p 101.41p
Number of ordinary shares in circulation 65,297,059 61,859,931 65,000,516
Number of ordinary shares held in treasury 7,920,130 6,661,130 7,190,130
Number of listed ordinary shares in issue 73,217,189 68,521,061 72,190,646
* Figures as at 31 December 2012 are audited.
Unaudited Cash Flow Statement
For the six months to 30 June 2013
Six Six Year to
months to months to 31 December
30 June 30 June 2012
2013 2012
£'000 £'000 £'000
Net cash inflow/(outflow) from operating 602 (368) (584)
activities
Capital expenditure and financial investment (604) (2,584) 795
Equity dividends paid (2,600) - (1,856)
Net cash outflow before financing (2,602) (2,952) (1,645)
Net cash inflow from financing 4,069 3,470 2,961
Increase in cash 1,467 518 1,316
Reconciliation of net cash flow to movement in
net cash
Increase in cash 1,467 518 1,316
Opening cash position 3,844 2,528 2,528
Closing cash position 5,311 3,046 3,844
Reconciliation of profit on ordinary
activities before taxation to net cash inflow/
(outflow) from operating activities
Profit on ordinary activities before taxation 1,792 4,027 6,606
Gains on investments (1,248) (4,664) (7,404)
Changes in working capital and other non-cash 58 269 214
items
Net cash inflow/(outflow) from operating 602 (368) (584)
activities
* Figures as at 31 December 2012 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,
liquidity risk and competitive 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 2012. 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 2012. During the period, the Company
has incurred management fees of £829,000 and secretarial and accounting fees of
£67,000 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 2013, the Company held cash balances & investments in interest
bearing securities with a combined value of £10,808,000. 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.
Corporate Information
Directors Registrars and Transfer Office
Robert Owen (Chairman) Computershare Investor Services PLC
Malcolm Groat* PO Box 82
Alan Pedder CBE† The Pavilions
Robin Williams Bridgwater Road
Bristol BS99 6ZZ
Secretary Tel: 0870 889 3251
ISIS EP LLP
Brokers
Registered Office Panmure Gordon & Co
100 Wood Street One New Change
London EC2V 7AN London EC4M 9AF
Investment Manager Auditors
ISIS EP LLP KPMG Audit Plc
100 Wood Street Saltire Court
London EC2V 7AN 20 Castle Terrace
Edinburgh EH1 2EG
FPPE LLP
(Listed interest bearing securities Solicitors
only)
100 Wood Street Norton Rose LLP
London EC2V 7AN 3 More London Riverside
London SE1 2AQ
VCT Status Adviser
PricewaterhouseCoopers LLP
1 Embankment Place
Registered Number London WC2N 6RH
04313537
Website
www.baronsmeadvct4.co.uk
* Chairman of the Audit Committee
† Chairman of the Nomination Committee, Chairman of the Management Engagement
and Remuneration Committee and Senior Independent Director
Copies of the half yearly report can be obtained from the following website:
www.baronsmeadvct4.co.uk.
National Storage Mechanism
A copy of the half-yearly report will be submitted shortly to the National
Storage Mechanism ("NSM") and will be available for inspection at the NSM,
which is situated at: www.hemscott.com/nsm.do
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.