TIDMTPVE TIDMTTM TIDMTPVD TIDMTPVC

RNS Number : 2739U

Triple Point Inc VCT - TPVE

21 November 2019

Triple Point Income VCT plc

Interim Results

The Directors of Triple Point Income VCT plc are pleased to announce its Interim results for the six months to 30 September 2019.

FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:

 
  Triple Point Investment Management    Tel: 020 7201 8989 
   LLP 
   (Investment Manager) 
  Ben Beaton 
   Belinda Thomas 
 

The Company's LEI is 213800IXD8S5WY88L245

Further information on the Company can be found on its website https://www.triplepoint.co.uk/current-vcts/triple-point-income-vct-plc/s1238/.

Unaudited Interim Financial Report - Financial Summary

 
  6 months ended 30 September 
   2019 
  Unaudited                            Ord Shares    A Shares    C Shares    D Shares    E Shares     Total 
  Net assets               GBP'000              -           -      17,851      15,557      29,340    62,748 
  Net asset value per 
   share                    Pence               -           -     132.80p     113.54p     101.35p       n/a 
-----------------------  ----------  ------------  ----------  ----------  ----------  ----------  -------- 
  Net profit/(loss) 
   before tax              GBP'000              -           -         459         203       (333)       329 
  Earnings/(loss) per 
   share                    Pence               -           -       3.22p       1.20p     (1.21p)       n/a 
-----------------------  ----------  ------------  ----------  ----------  ----------  ----------  -------- 
 
  Cumulative return 
   to shareholders (p) 
  Net asset value per 
   share                                        -           -      132.80      113.54      101.35 
  Dividends paid                            98.87       99.99       20.00       15.00           - 
                                                                                       ---------- 
  Net asset value plus 
   dividends paid                           98.87       99.99      152.80      128.54      101.35 
-----------------------------------  ------------  ----------  ----------  ----------  ----------  -------- 
 
  Year ended 31 March 
   2019 
  Audited                              Ord Shares    A Shares    C Shares    D Shares    E Shares     Total 
  Net assets               GBP'000              -           -      18,088      16,077      29,691    63,856 
  Net asset value per 
   share                    Pence               -           -     134.58p     117.34p     102.56p       n/a 
-----------------------  ----------  ------------  ----------  ----------  ----------  ----------  -------- 
  Net profit before 
   tax                     GBP'000             35           -       3,652       2,083       1,263     7,033 
  Earnings per share        Pence           0.07p           -      26.74p      14.36p       4.24p       n/a 
-----------------------  ----------  ------------  ----------  ----------  ----------  ----------  -------- 
  Cumulative return 
   to shareholders (p) 
  Net asset value per 
   share                                        -           -      134.58      117.34      102.56 
  Dividends paid                            97.87       99.99       15.00       10.00           - 
                                                                                       ---------- 
  Net asset value plus 
   dividends paid                           97.87       99.99      149.58      127.34      102.56 
-----------------------------------  ------------  ----------  ----------  ----------  ----------  -------- 
 
  6 months ended 30 September 
   2018 
  Unaudited                            Ord Shares    A Shares    C Shares    D Shares    E Shares     Total 
  Net assets               GBP'000            986           -      15,032      14,363      28,758    59,139 
  Net asset value per 
   share                    Pence           5.07p           -     111.83p     104.82p      99.34p       n/a 
-----------------------  ----------  ------------  ----------  ----------  ----------  ----------  -------- 
  Net profit before 
   tax                     GBP'000             16           -         572         312         306     1,206 
  Earnings per share        Pence           0.07p           -       3.99p       1.84p       1.02p       n/a 
-----------------------  ----------  ------------  ----------  ----------  ----------  ----------  -------- 
  Cumulative return 
   to shareholders (p) 
  Net asset value per 
   share                                     5.07           -      111.83      104.82       99.34 
  Dividends paid                            93.80       99.99       15.00       10.00           - 
  Net asset value plus 
   dividends paid                           98.87       99.99      126.83      114.82       99.34 
-----------------------------------  ------------  ----------  ----------  ----------  ----------  -------- 
 

Triple Point Income VCT 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 November 2007.

-- C Ordinary Shares: these are the shares issued in the Offer that closed on 27 May 2014. A total of GBP14.0 million was raised and 13,441,438 C Shares were issued.

-- D Ordinary Shares: these are the shares issued in the Offer that closed on 30 April 2015. A total of GBP14.3 million was raised and 13,701,636 D Shares were issued.

-- E Ordinary Shares: these are the shares issued in the Offer that closed on 15 May 2017. Just under GBP30 million was raised and 28,949,575 E Shares were issued.

Unaudited Interim Financial Report - Chairman's Statement

I am pleased to present the Interim Financial Report for the Company for the period ended 30 September 2019.

Investment Portfolio

The Company's funds at 30 September 2019 are invested in a portfolio of VCT qualifying and non-qualifying quoted and unquoted investments. At 30 September 2019 the Company continues to meet the condition that at least 70% by value of the Company's investments are represented by qualifying holdings.

Legislation introduced through the Finance Act 2018 will begin to apply to the Company from 1 April 2020, implementing an increase to the qualifying test to 80%. The Investment Manager monitors this ratio closely and the Board is confident that the Company will meet the new requirement when it comes into effect for the Company.

The Company continues to satisfy all other tests relevant to its status as a Venture Capital Trust.

The Investment Manager's review on pages 5 to 10 gives an update on the portfolio of investments in 17 small unquoted businesses and 1 quoted Real Estate Investment Trust.

C Share Class

The C Share Class has investments in three companies in the Hydroelectric power sector, which between them own six hydroelectric schemes in the Scottish Highlands. All schemes have been successfully commissioned and are operating in line with expectations. The last quarter has seen good performance with all schemes outperforming their targets.

The C Share Class has also invested in companies which provide SME funding in the Hydroelectric power sector.

I am pleased to report the C Share Class has recorded a profit over the period of 3.22p per share. At 30 September 2019 the net asset value stood at 132.80p per share. Adding back the total dividends paid to date takes the total return, including the net asset value, to 152.80p per share.

The target for the C Share Class is to return 100.00p per share by the end of year six, comprising the income tax rebate, four annual tax-free dividends of an average 5p per share, followed by a partial realisation of 50.00p. Thereafter an ongoing dividend of 3.50p per annum is targeted for a further nine years and a final capital realisation of c 50p per share in 2029 following the sale of the VCTs hydro project's.

During the period the Company paid a fourth dividend to C Class Shareholders of GBP672,072, equal to 5.00p per share. This brings total dividends to date to 20.00p per share. This is in line with the original target for the C Share Class.

The Board is pleased to announce that a special dividend of 21.00p per share will be paid to C Shareholders on 19 December 2019 to shareholders on the register on 29 November 2019. This distribution contributes significantly to the partial realisation target.

D Share Class

The D Share Class has investments in five companies in the Hydroelectric power sector, which between them own six hydroelectric schemes in the Scottish Highlands. All schemes have now been commissioned and are now operating in line with expectations. The D Share Class has also invested in a company which provides SME funding to the Hydroelectric power sector.

The target for the D Share Class is to return 100.00p per share by the end of year six, comprising the income tax rebate, four annual tax-free dividends of an average 5p per share, followed by a partial realisation of 50.00p. Thereafter an ongoing dividend of 3.50p per annum is targeted for a further nine years and a final capital realisation of c 50p per share in 2030 following the sale of the VCTs hydro projects.

I am pleased to report that the D Share Class has recorded a profit over the period of 1.20p per share. At 30 September 2019 the net asset value stood at 113.54p per share. Adding back the total dividends paid takes the total return, including the net asset value, to 128.54p per share.

During the period the Company paid a third dividend to D Class Shareholders of GBP685,082, equal to 5.00p per share. This brings total dividends to date to 15.00p per share which continues to be in line with the original target for the D Share Class.

E Share Class

The E Share Class holds a diverse portfolio of investments spanning sectors such as gas power, solar and vertical growing. Further information about these investments and sectors can be found in the Investment Manager's Review starting on page 5.

During the period, the construction of a pioneering Vertical Growing facility was completed. Following delays during the construction process, the first crop is expected to be delivered during the fourth quarter of 2019.

The E Share Class also has a non-qualifying investment of GBP5.4m in Triple Point Social Housing REIT plc ("REIT"). This investment generates income from a widespread portfolio of long term, inflation linked, specialised supported housing property leases and is targeting a regular dividend to its investors of 5.00p per share per annum rising in line with inflation. Further information on this investment is included in the Investment Manager's Review on pages 5 to 10.

The E Share Class recorded a loss over the period of 1.21p per share as a result of revaluation of investments. At 30 September 2019 the net asset value stood at 101.35p per share.

Specific Risks

The Board believe that the specific risks facing the Company are:

   --    Compliance risk of failure to maintain approval as a qualifying VCT; 

-- Investment risk associated with the VCT's portfolio of unquoted investments, including the inability to invest funds raised and the inability to realise funds to facilitate return to investors;

   --    Financial risk of investing on a medium to long-term basis; and 
   --    Risk of failure of internal controls. 

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

The investment portfolio of the Company continues to operate well with much of the portfolio being in companies which are mature and profitable, providing attractive income returns.

One of the Company's objectives is a partial realisation of the C and D Share Class after 5 years. The Board and the Investment Manager are now working towards investment structuring to enable funding of the target distribution as well as continuing to optimise the portfolio owned by the E Shareholders.

The Board and Investment Manager continue to monitor and discuss the possible impact of Brexit on the underlying portfolio to identify the principal areas of risk. We are continuing to monitor the ongoing Brexit negotiations and will take mitigating action where necessary and when required to do so.

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

David Frank

Chairman

21 November 2019

Unaudited Interim Financial Report - Investment Manager's Review

Sector Analysis

The unquoted investment portfolio can be analysed as follows:

 
                                               Electricity Generation            SME Funding 
                -------------              ----------------------------  -------------------------- 
                                                                Other 
  Industry        Crematorium    Vertical    Hydroelectric     Electric    Hydroelectric                 Quoted          Total 
   Sector          Management     Growing        Power          Power          Power        Other*     Investments    Investments 
                -------------  ----------  ---------------  -----------  ---------------  --------- 
                      GBP'000     GBP'000          GBP'000      GBP'000          GBP'000    GBP'000        GBP'000        GBP'000 
                -------------  ----------  ---------------  -----------  ---------------  ---------  -------------  ------------- 
  Investments 
   at 1 April 
   2019 
                -------------  ----------  ---------------               ---------------  ---------  -------------  ------------- 
  C Shares                  -           -           14,527            -            2,888          -              -         17,415 
  D Shares                  -           -           13,529            -            1,206          -              -         14,735 
  E Shares                103       5,000            2,875        7,862              750      2,297          5,901         24,788 
  Total                   103       5,000           30,931        7,862            4,844      2,297          5,901         56,938 
                               ---------- 
  Investments 
   realised 
   during the 
   period 
                -------------  ----------  ---------------               ---------------  ---------  -------------  ------------- 
  C Shares                  -           -             (35)            -                -          -              -           (35) 
  D Shares                  -           -          (2,717)            -                -          -              -        (2,717) 
  E Shares                  -           -             (25)            -                -          -              -           (25) 
                                                                                                                    ------------- 
                            -           -          (2,777)            -                -          -              -        (2,777) 
                               ---------- 
  Investments 
  valued 
  during 
  the period 
                -------------  ----------  ---------------               ---------------  ---------  -------------  ------------- 
  E Shares                  -           -                -            -                -          -          (448)          (448) 
                                                                                                                    ------------- 
                            -           -                -            -                -          -          (448)          (448) 
                               ---------- 
  Investments 
  at 30 
  September 
  2019 
  C Shares                  -           -           14,492            -            2,888          -              -         17,380 
  D Shares                  -           -           10,812            -            1,206          -              -         12,018 
  E Shares                103       5,000            2,850        7,862              750      2,297          5,453         24,315 
  Total                   103       5,000           28,154        7,862            4,844      2,297          5,453         53,713 
  Total 
   investments 
   %                    0.19%       9.31%           52.44%       14.64%            9.02%      4.28%         10.14%        100.00% 
                -------------  ----------  ---------------               ---------------             -------------  ------------- 
 

* Other SME funding includes GBP2,297,000 of E Ordinary Share Class investment into a UK based LLP which provides finance to small and medium sized enterprises.

C Share Class

Hydroelectric power - 83%

SME Funding (hydroelectric power) - 17%

D Share Class

Hydroelectric power - 90%

SME Funding (hydroelectric power) - 10%

E Share Class

Crematorium Management - 1%

Vertical Growing - 21%

Quoted Investments - 22%

Hydroelectric power - 12%

SME Funding (hydroelectric power) - 3%

SME Funding (other) - 9%

Electricity Generation - 32%

The VCT was established to fund small and medium sized enterprises. At 30 September 2019 it had three share classes, each invested in their own portfolio as detailed on page 5. The overall portfolio comprised investments in 17 small, unquoted companies and one quoted Real Estate Investment Trust, across 5 sectors: crematorium management, electricity generation, vertical growing, SME funding and investment property.

At 30 September 2019 the Company continues to meet the condition that at least 70% of relevant funds must be invested in VCT qualifying investments within three years.

Review and Outlook

C Share Class

The Company and the Investment Manager continue to monitor the ongoing operation and efficiency of the C Share Class investments. The C Share Class has investments in three hydroelectric companies which, between them, own six schemes in the Scottish Highlands. Further updates on the Hydroelectric power sector are detailed below.

D Share Class

The D Share Class has investments in five hydroelectric companies which between them own six hydroelectric schemes in the Scottish Highlands. All six schemes have been commissioned and are fully operational. Further updates on the hydroelectric power sector are detailed below.

Hydroelectric Power

The ten hydroelectric schemes are all "run of river" plants and each company benefits from government backed Feed-in Tariff (FiT) payments based on output and 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, earning an average of 6.3 pence per kWh compared to the 5 pence per kWh which was projected at the time of investment. The companies have recently renewed their PPA contracts and continue to achieve higher prices than the current available export tariff.

Although rainfall variability is to be expected over the 40-year period of generation which our hydroelectric companies are expected to experience, overall, we continue to be pleased with the efficiency of the hydroelectric schemes owned by them. The hydroelectric companies remain highly focussed on improving efficiencies and maximising output and are working alongside hydro experts to further enhance performance.

During the 6 months to 30 September 2019, the hydroelectric companies generated 7,880 MWh of electricity. Based on an average of 3.8 MWh annual use per household, the hydroelectric companies generated enough electricity for 4,147 homes during the period.

Industry Update

The hydroelectric 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. For the financial year 2019/20, the hydroelectric companies received a 60% relief and it is expected that this relief will continue to be applied each year until such time as the Scottish Government addresses the issue of the business rates in the hydro sector.

An update from the Scottish Government is expected sometime in the near future.

In July 2018, the government announced the end of the FiT scheme for renewable energy from 31 March 2019. All businesses that already have FiT registrations will continue to receive payments for the remainder of their agreement. Therefore, as the companies entered in to 20-year agreements prior to this announcement, the seven hydroelectric companies are unaffected by this change.

E Share Class

The E Share Class has successfully deployed 83% of its funds into various investments in a diverse range of sectors. Further information on these sectors is detailed below.

Going forward, the Company and the Investment Manager are focused on ensuring that the remaining funds are invested in line with the Company's strategy and the requirements of the VCT legislation.

Crematorium Management

The Company has an investment in a business that provides crematory and mercury abatement services for the crematoria of a London Borough. This investment receives revenues from local authorities and has consistently generated a steady return over the years it has been held.

Solar

The Company holds an investment in four portfolios of rooftop solar PV systems through the following investee companies:

-- Green Energy for Education Limited ("GEFE"), which owns a portfolio of 120 systems on residential rooftops in Luton;

-- Campus Link Limited ("CMP"), which owns a portfolio of 36 systems on residential rooftops in south west England;

-- Digima ("DIG") Limited, which owns a portfolio of 82 systems on residential rooftops in East Anglia; and

-- Digital Screen Solutions ("DSS") Limited, which owns a portfolio of 324 systems on residential rooftops in Northern Ireland.

After a successful review and intervention to improve performance at the DIG portfolio, all four portfolios are now performing in line with or exceeding expectations.

Hydroelectric Power

The E Share Class has investments in two companies which own, either directly or indirectly, hydroelectric schemes in the Scottish Highlands. Further updates on this sector are detailed above.

Vertical Growing

The E Share Class has invested in Perfectly Fresh Cheshire Ltd, a company which has constructed a pioneering vertical growing facility. Vertical Growing is the practice of producing food in an indoor growing amenity where all inputs (water, light and nutrients) meet the optimum needs of the crop. Vertical Growing facilities are designed to have a sealed environment, meaning that the product is grown in a controlled manner, with positive air pressure to prevent any contaminants entering the facility. This ensures that insects and other pests cannot access the crop, thus removing the need to use pesticides on the crop being grown. A large variety of produce can be grown including herbs and salad leaves.

Expert in horticulture, Perfectly Fresh has recently expanded their growing facilities to cater for a growing number of customers, including two of the UKs largest supermarket brands.

Its operations currently span over 1,100 square metres and are a pioneering example of the latest technology being harnessed to meet the growing needs of an ever-expanding population.

Since the end of the period production has recently commenced.

Gas Power

The Company has an investment in Green Peak Generation Ltd which has constructed a gas fired energy centre that provides a reliable and secure energy supply. The energy centre was commissioned during May 2018 and it consists of containerised gas combustion engines that generate electricity for onward sale, especially at times when there is high demand for power.

The energy centre utilises simple technology, provided by Rolls Royce, which can respond rapidly to grid fluctuations to deliver a reliable and secure energy supply.

Gas is purchased from the National Transmission System and combusted in the engines to generate electricity. The electricity is then exported to the grid and sold under a power purchase agreement. The company receives revenues from the sale of electricity and additional income from embedded benefits.

During the six-month period to 30 September 2019, the energy centre generated 8,042 MWh of electricity. Based on an average of 3.8 MWh annual use per household, this was enough electricity for 4,232 homes during the period.

In August 2019, the engine silencers at the energy centre were replaced due to their poor acoustic performance. This replacement was performed at no extra cost to Green Peak Generation Ltd.

Industry Update

The Capacity Market consists of fixed payments to power generators to ensure they are available during periods of high demand. Eligible power generators must bid in an auction process to win a contract. They will then receive the payments in exchange for ensuring the generator is available during the peak demand periods.

On 15 November 2018, the European Court of Justice unexpectedly announced that it did not believe that sufficient work had been undertaken when the European Commission ('EC') approved the UK's Capacity Market scheme, leading to a halt to all payments under the scheme.

The UK's Department for Business, Energy and Industrial Strategy ('BEIS') have indicated they are working closely with the EC to secure approval and have suggested they anticipate securing this approval by the end of 2019 (including making the currently frozen Capacity Market payments). As the expected impact of this announcement is only a delay in payments which will be received by the projects, it is not anticipated that this will have a material impact on investor returns, but there is currently uncertainty over the timing of when these revenues will be received.

In addition, Ofgem completed its review of embedded benefits available to small generators and announced certain planned changes. If these changes are implemented, they are expected to have a minor negative impact on investor returns.

Non-Qualifying Investments

Real Estate Investment Trust ("REIT")

Triple Point Social Housing REIT plc invests in social housing assets within the UK, in particular homes in the supported housing sector. These homes are adapted to provide care and support to vulnerable tenants with specific requirements, providing tenants with greater independence than institutional care accommodation. The REIT has a portfolio of properties which benefit from long-term index linked leases of at least twenty years to Approved Providers, such as housing associations, who are bodies that receive their funding from central and local government. Through these long leases it is able to offer its shareholders an attractive and consistent level of inflation-linked income.

The net asset value per share of the REIT as at 30 September 2019 was 104.47p. The REIT has continued to deliver an index linked dividend yield of 5 pence per share which is paid quarterly. Shares in the REIT are listed on the London Stock Exchange and are valued at the closing price on the balance sheet date. Along with other funds in this sector the REIT continues to trade at a discount to NAV. This has resulted in a downward valuation and contributed to the loss during the period.

SME Funding

The Company has non-qualifying investments in four companies which provide finance to small and medium size businesses. Two of these companies are non-bank SME lending businesses which aim to address the financing needs of the UK SME market by providing business critical loans and asset finance to over 60,000 UK Corporate and SME customers. The remaining two companies provide finance in the hydroelectric power sector.

Brexit

The Investment Manager and the Board continue to keep the possible impact of Brexit on the Company under review. The Company's strategy of investing in small UK based businesses means that it is unlikely to be directly exposed to the terms of an exit from the EU. We are, however, going through a period of some political and, potentially, economic uncertainty. We believe that by investing carefully, monitoring our portfolio rigorously and providing support to the businesses in which we have invested we can minimise the effects of this uncertainty.

UN Sustainable Development Goals

The United Nation's Sustainable Development Goals set the blueprint for achieving a better and more sustainable future, globally. The Goals interconnect so that nobody is left behind and set a target of being achieved by 2030.

Triple Point shares the view that in order to achieve long-term business success, people from around the world should be able to live in a way that is not detrimental to our environment, does not excessively deplete scarce resources, and is positive for their own communities.

If you have any questions, please do not hesitate to call us on 020 7201 8989.

Ben Beaton

Partner

for Triple Point Investment Management LLP

21 November 2019

Unaudited Interim Financial Report - Investment Portfolio

 
                                                  Unaudited                                  Audited 
                                              30 September 2019                           31 March 2019 
                                  ----------------------------------------  ---------------------------------------- 
                                              Cost             Valuation                Cost             Valuation 
                                    GBP'000         %    GBP'000         %    GBP'000         %    GBP'000         % 
 
  Unquoted qualifying holdings       30,995     57.78     39,813     64.36     33,704     61.90     42,523     67.37 
  Quoted non-qualifying holdings      6,001     11.19      5,453      8.81      6,001     11.02      5,901      9.35 
  Unquoted non-qualifying 
   holdings                           8,497     15.83      8,447     13.66      8,563     15.72      8,513     13.48 
  Financial assets at fair value 
   through profit or loss            45,493     84.80     53,713     86.83     48,268     88.64     56,937     90.20 
  Cash and cash equivalents           8,151     15.20      8,151     13.17      6,188     11.36      6,188      9.80 
                                     53,644    100.00     61,864    100.00     54,456    100.00     63,125    100.00 
                                  =========  ========  =========  ========  =========  ========  =========  ======== 
 
  Qualifying Holdings 
  Unquoted 
  Solar 
  Digima Ltd                          1,262      2.35      1,612      2.61      1,262      2.32      1,612      2.55 
  Digital Screen Solutions Ltd        2,020      3.77      2,658      4.30      2,020      3.71      2,658      4.21 
  Green Energy for Education 
   Ltd                                  475      0.89      1,127      1.82        475      0.87      1,127      1.79 
  Hydro Electric Power 
  Elementary Energy Ltd               2,060      3.84      2,409      3.89      2,060      3.78      2,409      3.82 
  Green Highland Allt Choire 
   A Bhalachain (225) Ltd             3,130      5.83      3,642      5.89      3,130      5.75      3,642      5.77 
  Green Highland Allt Garbh 
   Ltd                                    -         -          -         -      2,710      4.98      2,710      4.29 
  Green Highland Allt Ladaidh 
   (1148) Ltd                         3,500      6.52      5,010      8.10      3,500      6.43      5,010      7.94 
  Green Highland Allt Luaidhe 
   (228) Ltd                          1,996      3.72      2,407      3.89      1,995      3.66      2,407      3.81 
  Green Highland Allt Phocachain 
   (1015) Ltd                         3,932      7.33      4,871      7.87      3,932      7.22      4,871      7.72 
  Green Highland Shenval Ltd          1,120      2.09        797      1.29      1,120      2.06        797      1.26 
  Green Highland Renewables 
   (Achnacarry) Ltd                   4,300      8.02      7,857     12.70      4,300      7.90      7,857     12.45 
 
  Gas Power 
  Green Peak Generation Ltd           2,200      4.10      2,423      3.92      2,200      4.04      2,423      3.84 
  Vertical Growing 
  Perfectly Fresh Cheshire Ltd        5,000      9.32      5,000      8.08      5,000      9.18      5,000      7.92 
                                     30,995     57.78     39,813     64.36     33,704     61.90     42,523     67.37 
                                  =========  ========  =========  ========  =========  ========  =========  ======== 
 
 
                                                  Unaudited                                Audited 
                                              30 September 2019                         31 March 2019 
                                   --------------------------------------  -------------------------------------- 
                                              Cost            Valuation               Cost            Valuation 
  Non-Qualifying Holdings            GBP'000        %    GBP'000        %    GBP'000        %    GBP'000        % 
  Quoted 
  Investment property 
 
    TP Social Housing REIT Plc 
    Equity                             6,001    11.19      5,453     8.81      6,001    11.02      5,901     9.35 
                                       6,001    11.19      5,453     8.81      6,001    11.02      5,901     9.35 
                                   =========  =======  =========  =======  =========  =======  =========  ======= 
  Unquoted 
  Crematorium Management 
 
    Furnace Managed Services Ltd         486     0.91         93     0.15        496     0.91        103     0.16 
 
    Hydroelectric Power 
 
    Elementary Energy Ltd                233     0.43        233     0.38        248     0.46        248     0.39 
  Green Highland Allt Choire 
   A Bhalachain (225) Ltd                281     0.52        281     0.45        289     0.53        289     0.46 
  Green Highland Allt Luaidhe 
   (228) Ltd                             173     0.32        173     0.28        180     0.33        180     0.29 
  Green Highland Allt Phocachain 
   (1015) Ltd                            116     0.22        116     0.19        122     0.22        122     0.19 
  Green Highland Renewables 
   (Achnacarry) Ltd                        6     0.01          6     0.01         26     0.05         27     0.04 
 
    SME Funding 
  Hydroelectric Power: 
 
    Broadpoint 2 Ltd                   2,834     5.28      2,834     4.58      2,834     5.20      2,834     4.49 
  Broadpoint 3 Ltd                     2,010     3.75      2,010     3.25      2,010     3.69      2,010     3.18 
 
    Other: 
  Aeris Power Ltd                        158     0.29        501     0.81        158     0.29        500     0.79 
  Funding Path Ltd                     2,200     4.10      2,200     3.56      2,200     4.04      2,200     3.49 
                                       8,497    15.83      8,447    13.66      8,563    15.72      8,513    13.48 
                                   =========  =======  =========  =======  =========  =======  =========  ======= 
 

Unaudited Interim Financial Report - 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 30 September 2019, 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 3 and 4 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.

David Frank

Chairman

21 November 2019

Unaudited Statement of Comprehensive Income

 
                                        Unaudited                         Audited                         Unaudited 
                                     6 months ended                     Year ended                     6 months ended 
                                                                                                         30 September 
                                    30 September 2019                  31 March 2019                         2018 
                            -------------------------------  -------------------------------  ------------------------------- 
                      Note       Rev.       Cap.      Total       Rev.       Cap.      Total       Rev.       Cap.      Total 
                              GBP'000    GBP'000    GBP'000    GBP'000    GBP'000    GBP'000    GBP'000    GBP'000    GBP'000 
  Income 
  Investment 
   income              4        1,563          -      1,563      2,923          -      2,923      1,649          -      1,649 
  Gain arising on 
   the disposal of 
   investments 
   during 
   the period                       -          -          -          -        420        420          -          -          - 
  (Loss)/gain 
   arising 
   on the 
   revaluation 
   of investments 
   at 
   the period end                   -      (448)      (448)          -      5,049      5,049          -        250        250 
  Investment 
   return                       1,563      (448)      1,115      2,923      5,469      8,392      1,649        250      1,899 
                            ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  --------- 
 
  Expenses 
  Investment 
   management 
   fees                5          454        151        605        771        257      1,028        400        133        533 
  Financial and 
   regulatory 
   costs                           24          -         24         37          -         37         20          -         20 
  General 
   administration                 107          -        107        184          -        184         86          -         86 
  Legal and 
   professional 
   fees                            22          -         22         55          -         55         26          -         26 
  Directors' 
   remuneration        6           28          -         28         55          -         55         28          -         28 
  Operating 
   expenses                       635        151        786      1,102        257      1,359        560        133        693 
                            ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  --------- 
  Profit/(loss) 
   before 
   taxation                       928      (599)        329      1,821      5,212      7,033      1,089        117      1,206 
  Taxation             7        (109)         29       (80)      (264)         35      (229)      (131)         25      (106) 
  Profit/(loss) 
   after 
   taxation                       819      (570)        249      1,557      5,247      6,804        958        142      1,100 
                            ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  --------- 
  Profit and total 
   comprehensive 
   income/(loss) 
   for the period                 819      (570)        249      1,557      5,247      6,804        958        142      1,100 
                            ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  --------- 
 
  Basic and 
  diluted 
  earnings/(loss) 
  per share 
  (pence) 
 
  Ordinary Share       8            -          -          -      0.13p    (0.06p)      0.07p      0.06p      0.01p      0.07p 
 
  C Share              8        3.50p    (0.28p)      3.22p      5.53p     21.21p     26.74p      4.22p    (0.23p)      3.99p 
 
  D Share              8        1.44p    (0.24p)      1.20p      3.93p     10.43p     14.36p      2.02p    (0.18p)      1.84p 
 
  E Share              8        0.52p    (1.73p)    (1.21p)      0.86p      3.38p      4.24p      0.35p      0.67p      1.02p 
 
 

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 under guidance published by the Association of Investment Companies. 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 
                                            30 September    31 March     30 September 
                                                    2019        2019             2018 
                                    Note         GBP'000     GBP'000          GBP'000 
 
  Non-current assets 
  Financial assets at fair 
   value through profit or loss                   53,713      56,937           52,289 
                                          --------------  ----------  --------------- 
 
  Current assets 
  Receivables                                      1,157       1,250            1,383 
  Cash and cash equivalents          9             8,151       6,188            6,152 
                                                   9,308       7,438            7,535 
                                          --------------  ----------  --------------- 
 
  Total Assets                                    63,021      64,375           59,824 
                                          --------------  ----------  --------------- 
 
  Current liabilities 
  Payables and accrued expenses                       20         327              490 
  Current taxation payable                           254         193              195 
                                                     274         520              685 
                                          --------------  ----------  --------------- 
 
  Net Assets                                      62,747      63,855           59,139 
                                          ==============  ==========  =============== 
 
  Equity attributable to equity 
   holders of the parent 
  Share capital                      10              561         561              756 
  Share redemption reserve                             -           -                2 
  Share premium                                   28,661      28,661           44,968 
  Special distributable reserve                   26,887      26,887           11,370 
  Capital reserve                                  5,619       6,189            1,085 
  Revenue reserve                                  1,019       1,557              958 
  Total equity                                    62,747      63,855           59,139 
                                          ==============  ==========  =============== 
 
  Shareholders' funds 
 
  Ordinary Share                     11                -           -            5.07p 
 
  C Share                            11          132.80p     134.58p          111.83p 
 
  D Share                            11          113.54p     117.34p          104.82p 
 
  E Share                            11          101.35p     102.56p           99.34p 
 

The statements were approved by the Directors and authorised for issue on 21 November 2019 and are signed on their behalf by:

David Frank

Chairman

21 November 2019

The accompanying notes are an integral part of this statement.

Unaudited Statement of Changes in Shareholders' Equity

 
                                                                           Special 
                          Issued    Share Redemption       Share     Distributable     Capital     Revenue 
                         Capital             Reserve     Premium           Reserve     Reserve     Reserve       Total 
                         GBP'000             GBP'000     GBP'000           GBP'000     GBP'000     GBP'000     GBP'000 
  6 months ended 30 
  September 
  2019 
  Opening balance            561                   -      28,661            26,887       6,189       1,557      63,855 
                      ----------  ------------------  ----------  ----------------  ----------  ----------  ---------- 
  Dividends paid               -                   -           -                 -           -     (1,357)     (1,357) 
  Transactions with 
   owners                      -                   -           -                 -           -     (1,357)     (1,357) 
                      ----------  ------------------  ----------  ----------------  ----------  ----------  ---------- 
  (Loss)/profit for 
   the 
   period                      -                   -           -                 -       (570)         819         249 
  Profit and total 
   comprehensive 
   (loss)/income for 
   the 
   period                      -                   -           -                 -       (570)         819         249 
                      ----------  ------------------  ----------  ----------------  ----------  ----------  ---------- 
  Balance at 30 
   September 
   2019                      561                   -      28,661            26,887       5,619       1,019      62,747 
                      ==========  ==================  ==========  ================  ==========  ==========  ========== 
  Capital reserve 
  consists 
  of: 
  Investment holding 
   gains                                                                                 7,855 
  Other realised 
   losses                                                                              (2,236) 
                                                                                         5,619 
                                                                                    ========== 
  Year ended 31 
  March 
  2019 
  Opening balance            756                   2      44,968            23,968         942         582      71,218 
                      ----------  ------------------  ----------  ----------------  ----------  ----------  ---------- 
  Cancellation of 
   shares                  (195)                 195           -                 -           -           -           - 
  Cancellation of 
   share 
   premium                     -                   -    (16,307)            16,307           -           -           - 
  Dividend paid                -                   -           -          (13,390)           -       (582)    (13,972) 
  Transfer on share 
   redemption                  -                 (2)           -                 2           -           -           - 
  Repayment of 
   capital                     -               (195)           -                 -           -           -       (195) 
  Transactions with 
   owners                  (195)               (197)    (16,307)             2,919           -       (582)    (14,167) 
                      ----------  ------------------  ----------  ----------------  ----------  ----------  ---------- 
  Profit for the 
   year                        -                               -                 -       5,247       1,557       6,804 
  Profit and total 
   comprehensive 
   income for the 
   year                        -                               -                 -       5,247       1,557       6,804 
                      ----------  ------------------  ----------  ----------------  ----------  ----------  ---------- 
  Balance at 31 
   March 
   2019                      561                   -      28,661            26,887       6,189       1,557      63,855 
                      ==========  ==================  ==========  ================  ==========  ==========  ========== 
  Capital reserve 
  consists 
  of: 
  Investment holding 
   gains                                                                                 8,671 
  Other realised 
   losses                                                                              (2,482) 
                                                                                         6,189 
                                                                                    ========== 
  6 months ended 30 
  September 
  2018 
  Opening balance            756                   2      44,968            23,968         942         582      71,218 
                      ----------  ------------------  ----------  ----------------  ----------  ----------  ---------- 
  Dividend paid                -                   -           -          (12,597)           -       (582)    (13,179) 
  Transactions with 
   owners                      -                   -           -          (12,597)           -       (582)    (13,179) 
                      ----------  ------------------  ----------  ----------------  ----------  ----------  ---------- 
  Profit for the 
   period                      -                   -           -                 -         142         958       1,100 
  Profit and total 
   comprehensive 
   income for the 
   period                      -                   -           -                 -         142         958       1,100 
                      ----------  ------------------  ----------  ----------------  ----------  ----------  ---------- 
  Balance at 30 
   September 
   2018                      756                   2      44,968            11,371       1,084         958      59,139 
                      ==========  ==================  ==========  ================  ==========  ==========  ========== 
  Capital reserve 
  consists 
  of: 
  Investment holding 
   gains                                                                                 3,505 
  Other realised 
   losses                                                                              (2,421) 
                                                                                         1,084 
                                                                                    ========== 
 

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, share redemption reserve and share premium reserve are not distributable. The special distributable reserve was created on court cancellation of the share premium account. The revenue, special distributable and realised capital reserves are distributable by way of dividend.

At 30 September the total reserves available for distribution were GBP25,670,000. This consisted of the distributable revenue reserve, net of the realised capital loss, plus the special distributable reserve.

Unaudited Statement of Cash Flows

 
                                                    Unaudited       Audited         Unaudited 
                                               6 months ended    Year ended    6 months ended 
                                                 30 September      31 March      30 September 
                                                         2019          2019              2018 
                                                      GBP'000       GBP'000           GBP'000 
  Cash flows from operating activities 
  Profit before taxation                                  329         7,033             1,206 
  (Gain) arising on the disposal 
   of investments during the period                         -         (420)                 - 
  Loss/(gain) arising on the revaluation 
   of investments at the period end                       448       (5,049)             (250) 
  Cashflow generated by operations                        777         1,564               956 
  Decrease/(increase) in receivables                       93           126               (7) 
  (Decrease)/increase in payables                       (307)         (332)             (169) 
  Cash flows from operating activities                    563         1,358 
                                               --------------  ------------  ---------------- 
  Tax paid                                               (19)         (127)               (2) 
  Net cash flows from operating activities                544         1,231               778 
                                               --------------  ------------  ---------------- 
 
  Cash flow from investing activities 
  Proceeds of sale of financial assets 
   at fair value through profit or 
   loss                                                 2,776           676               105 
  Net cash flows from investing activities              2,776           676               105 
                                               --------------  ------------  ---------------- 
 
  Cash flows from financing activities 
  Repayment of capital                                      -         (195)                 - 
  Dividends paid                                      (1,357)      (13,972)          (13,179) 
  Net cash flows from financing activities            (1,357)      (14,167)          (13,179) 
                                               --------------  ------------  ---------------- 
  Net decrease/(increase) in cash 
   and cash equivalents                                 1,963      (12,260)          (12,296) 
                                               ==============  ============  ================ 
  Reconciliation of net cash flow 
   to movements in cash and cash equivalents 
  Opening cash and cash equivalents                     6,188        18,448            18,448 
  Net decrease/(increase) in cash 
   and cash equivalents                                 1,963      (12,260)          (12,296) 
  Closing cash and cash equivalents                     8,151         6,188             6,152 
                                               ==============  ============  ================ 
 

The accompanying notes are an integral part of this statement.

Non-Statutory Analysis - The C Share Fund

 
  Statement of Comprehensive Income                Unaudited                         Audited 
                                                6 months ended                     Year ended 
                                               30 September 2019                  31 March 2019 
                                       -------------------------------  ------------------------------- 
                                         Revenue    Capital      Total    Revenue    Capital      Total 
                                         GBP'000    GBP'000    GBP'000    GBP'000    GBP'000    GBP'000 
  Investment income                          692          -        692      1,127          -      1,127 
  Unrealised gain on investments               -          -          -          -      2,913      2,913 
  Investment return                          692          -        692      1,127      2,913      4,040 
  Investment management fees               (164)       (46)      (210)      (273)       (76)      (349) 
  Other expenses                            (23)          -       (23)       (39)          -       (39) 
  Profit/(loss) before taxation              505       (46)        459        815      2,837      3,652 
  Taxation                                  (33)          9       (24)       (72)         14       (58) 
  Profit/(loss) after taxation               472       (37)        435        743      2,851      3,594 
                                       ---------  ---------  ---------  ---------  ---------  --------- 
  Profit and total comprehensive 
   income/(loss) for the period              472       (37)        435        743      2,851      3,594 
                                       ---------  ---------  ---------  ---------  ---------  --------- 
  Basic and diluted earnings/(loss) 
   per share                               3.50p    (0.28p)      3.22p      5.53p     21.21p     26.74p 
                                       ---------  ---------  ---------  ---------  ---------  --------- 
 
  Balance Sheet                                         6 months ended                       Year ended 
                                                     30 September 2019                    31 March 2019 
                                                               GBP'000                          GBP'000 
  Non-current assets 
  Financial assets at fair 
   value through profit or 
   loss                                                         17,380                           17,415 
                                                             ---------                        --------- 
 
  Current assets 
  Receivables                                                      160                               83 
  Cash and cash equivalents                                        411                              759 
                                                                   571                              842 
  Current liabilities 
  Payables                                                        (11)                            (103) 
  Corporation tax                                                 (89)                             (66) 
                                                             ---------                        --------- 
  Net assets                                                    17,851                           18,088 
                                                             ---------                        --------- 
 
  Equity attributable to 
   equity holders                                               17,851                           18,088 
                                                             ---------                        --------- 
  Net asset value per share                                    132.80p                          134.58p 
                                                             ---------                        --------- 
 
 
  Statement of Changes in                               6 months ended                       Year ended 
  Shareholders' Equity                               30 September 2019                    31 March 2019 
                                                               GBP'000                          GBP'000 
 
  Opening shareholders' funds                                   18,088                           15,166 
  Profit for the period                                            435                            3,594 
  Dividends paid                                                 (672)                            (672) 
  Closing shareholders' funds                                   17,851                           18,088 
                                                             ---------                        --------- 
 
 
                                                  Unaudited                                  Audited 
  Investment Portfolio                        30 September 2019                           31 March 2019 
                                  ----------------------------------------  ---------------------------------------- 
                                              Cost             Valuation                Cost             Valuation 
                                    GBP'000         %    GBP'000         %    GBP'000         %    GBP'000         % 
 
  Unquoted qualifying holdings        9,430     71.80     14,089     79.19      9,430     69.78     14,089     77.52 
  Unquoted non-qualifying 
   holdings                           3,291     25.06      3,291     18.49      3,325     24.60      3,326     18.30 
  Financial assets at fair value 
   through profit or loss            12,721     96.86     17,380     97.68     12,755     94.38     17,415     95.82 
  Cash and cash equivalents             411      3.14        411      2.32        759      5.62        759      4.18 
                                     13,132    100.00     17,791    100.00     13,514    100.00     18,174    100.00 
                                  =========  ========  =========  ========  =========  ========  =========  ======== 
 
  Qualifying Holdings 
  Unquoted 
 
    Hydroelectric Power 
 
    Green Highland Allt Choire 
    A Bhalachain (225) Ltd            3,130     23.83      3,642     20.47      3,130     23.16      3,642     20.04 
  Green Highland Allt Phocachain 
   (1015) Ltd                         2,000     15.23      2,590     14.56      2,000     14.80      2,590     14.25 
  Green Highland Renewables 
   (Achnacarry) 
   Ltd                                4,300     32.74      7,857     44.16      4,300     31.82      7,857     43.23 
                                      9,430     71.80     14,089     79.19      9,430     69.78     14,089     77.52 
                                  =========  ========  =========  ========  =========  ========  =========  ======== 
 
 
  Non-Qualifying Holdings 
  Unquoted 
 
  Hydroelectric Power 
 
    Green Highland Allt Choire 
    A Bhalachain (225) Ltd              281      2.14        281      1.58        289      2.14        289      1.59 
  Green Highland Allt Phocachain 
   (1015) Ltd                           116      0.88        116      0.65        122      0.90        122      0.67 
  Green Highland Renewables 
   (Achnacarry) 
   Ltd                                    6      0.05          6      0.03         26      0.19         27      0.15 
 
    SME Funding 
 
    Hydroelectric Power: 
  Broadpoint 2 Ltd                    2,084     15.87      2,084     11.71      2,084     15.42      2,084     11.47 
  Broadpoint 3 Ltd                      804      6.12        804      4.52        804      5.95        804      4.42 
                                      3,291     25.06      3,291     18.49      3,325     24.60      3,326     18.30 
                                  =========  ========  =========  ========  =========  ========  =========  ======== 
 

Non-Statutory Analysis - The D Share Fund

 
  Statement of Comprehensive Income                Unaudited                         Audited 
                                                6 months ended                     Year ended 
                                               30 September 2019                  31 March 2019 
                                       -------------------------------  ------------------------------- 
                                         Revenue    Capital      Total    Revenue    Capital      Total 
                                         GBP'000    GBP'000    GBP'000    GBP'000    GBP'000    GBP'000 
  Investment income                          411          -        411        919          -        919 
  Unrealised gain on investments               -          -          -          -      1,475      1,475 
  Investment return                          411          -        411        919      1,475      2,394 
  Investment management fees               (145)       (40)      (185)      (215)       (58)      (273) 
  Other expenses                            (23)          -       (23)       (38)          -       (38) 
  Profit/(loss) before taxation              243       (40)        203        666      1,417      2,083 
  Taxation                                  (46)          8       (38)      (126)         11      (115) 
  Profit/(loss) after taxation               197       (32)        165        540      1,428      1,968 
                                       ---------  ---------  ---------  ---------  ---------  --------- 
  Profit and total comprehensive 
   income/(loss) for the period              197       (32)        165        540      1,428      1,968 
                                       ---------  ---------  ---------  ---------  ---------  --------- 
  Basic and diluted earnings/(loss) 
   per share                               1.44p    (0.24p)      1.20p      3.93p     10.43p     14.36p 
                                       ---------  ---------  ---------  ---------  ---------  --------- 
 
  Balance Sheet                                         6 months ended                       Year ended 
                                                     30 September 2019                    31 March 2019 
                                                               GBP'000                          GBP'000 
  Non-current assets 
  Financial assets at fair 
   value through profit or 
   loss                                                         12,018                           14,735 
                                                             ---------                        --------- 
 
  Current assets 
  Receivables                                                      801                              821 
  Cash and cash equivalents                                      2,900                              719 
                                                                 3,701                            1,540 
                                                             ---------                        --------- 
  Current liabilities 
  Payables                                                         (8)                             (82) 
  Corporation tax                                                (154)                            (116) 
                                                             ---------                        --------- 
  Net assets                                                    15,557                           16,077 
                                                             ---------                        --------- 
 
  Equity attributable to 
   equity holders                                               15,557                           16,077 
                                                             ---------                        --------- 
  Net asset value per share                                    113.54p                          117.34p 
                                                             ---------                        --------- 
 
 
  Statement of Changes in                               6 months ended                       Year ended 
  Shareholders' equity                               30 September 2019                    31 March 2019 
                                                               GBP'000                          GBP'000 
 
  Opening shareholders' funds                                   16,077                           14,794 
  Profit for the period                                            165                            1,968 
  Dividends paid                                                 (685)                            (685) 
  Closing shareholders' funds                                   15,557                           16,077 
                                                             ---------                        --------- 
 
 
                                                  Unaudited                                  Audited 
  Investment Portfolio                        30 September 2019                           31 March 2019 
                                  ----------------------------------------  ---------------------------------------- 
                                              Cost             Valuation                Cost             Valuation 
                                    GBP'000         %    GBP'000         %    GBP'000         %    GBP'000         % 
 
  Unquoted qualifying holdings        8,531     66.59     10,639     71.31     11,240     84.23     13,349     86.39 
  Unquoted non-qualifying 
   holdings                           1,379     10.76      1,379      9.24      1,386     10.39      1,386      8.96 
                                                                            ---------  --------  ---------  -------- 
  Financial assets at fair value 
   through profit or loss             9,910     77.35     12,018     80.55     12,626     94.62     14,735     95.35 
  Cash and cash equivalents           2,900     22.65      2,900     19.45        719      5.38        719      4.65 
                                     12,810    100.00     14,918    100.00     13,345    100.00     15,454    100.00 
                                  =========  ========  =========  ========  =========  ========  =========  ======== 
 
  Qualifying Holdings 
  Unquoted 
 
    Hydroelectric Power 
 
    Elementary Energy                   342      2.67        400      2.68        342      2.56        400      2.59 
  Green Highland Allt Garbh Ltd           -         -          -         -      2,710     20.31      2,710     17.54 
  Green Highland Allt Ladaidh 
   (1148) Ltd                         3,500     27.32      5,010     33.58      3,500     26.23      5,010     32.42 
  Green Highland Allt Luaidhe 
   (228) Ltd                          1,996     15.58      2,407     16.13      1,995     14.95      2,407     15.58 
  Green Highland Allt Phocachain 
   (1015) Ltd                         1,932     15.08      2,281     15.29      1,932     14.48      2,281     14.76 
  Green Highland Shenval Ltd            761      5.94        541      3.63        761      5.70        541      3.50 
                                      8,531     66.59     10,639     71.31     11,240     84.23     13,349     86.39 
                                  =========  ========  =========  ========  =========  ========  =========  ======== 
 
  Non-Qualifying Holdings 
  Unquoted 
 
    Hydroelectric Power 
 
    Green Highland Allt Luaidhe 
    (228) Ltd                           173      1.35        173      1.16        180      1.35        180      1.16 
 
    SME Funding 
  Hydroelectric Power: 
  Broadpoint 3 Ltd                    1,206      9.41      1,206      8.08      1,206      9.04      1,206      7.80 
                                      1,379     10.76      1,379      9.24      1,386     10.39      1,386      8.96 
                                  =========  ========  =========  ========  =========  ========  =========  ======== 
 

Non-Statutory Analysis - The E Share Fund

 
  Statement of Comprehensive 
   Income                                          Unaudited                         Audited 
                                                6 months ended                     Year ended 
                                               30 September 2019                  31 March 2019 
                                       -------------------------------  ------------------------------- 
                                         Revenue    Capital      Total    Revenue    Capital      Total 
                                         GBP'000    GBP'000    GBP'000    GBP'000    GBP'000    GBP'000 
  Investment income                          460          -        460        855          -        855 
  Realised gain on investments                 -          -          -          -        420        420 
  Unrealised loss on investments               -      (448)      (448)          -        660        660 
  Investment return                          460      (448)         12        855      1,080      1,935 
  Investment management 
   fees                                    (240)       (65)      (305)      (460)      (126)      (586) 
  Other expenses                            (40)          -       (40)       (86)          -       (86) 
  Profit/(loss) before taxation              180      (513)      (333)        309        954      1,263 
  Taxation                                  (30)         12       (18)       (59)         24       (35) 
  Profit/(loss) after taxation               150      (501)      (351)        250        978      1,228 
                                       ---------  ---------  ---------  ---------  ---------  --------- 
  Profit/(loss) and total 
   comprehensive income for 
   the period                                150      (501)      (351)        250        978      1,228 
                                       ---------  ---------  ---------  ---------  ---------  --------- 
  Basic and diluted earnings/(loss) 
   per share                               0.52p    (1.73p)    (1.21p)      0.86p      3.38p      4.24p 
                                       ---------  ---------  ---------  ---------  ---------  --------- 
 
  Balance Sheet                                         6 months ended                       Year ended 
                                                     30 September 2019                    31 March 2019 
                                                               GBP'000                          GBP'000 
  Non-current assets 
  Financial assets at fair 
   value through profit or 
   loss                                                         24,315                           24,787 
                                                             ---------                        --------- 
 
  Current assets 
  Receivables                                                      196                              346 
  Cash and cash equivalents                                      4,840                            4,711 
                                                                 5,036                            5,057 
                                                             ---------                        --------- 
  Current liabilities 
  Payables                                                           -                            (143) 
  Corporation tax                                                 (11)                             (10) 
  Net assets                                                    29,340                           29,691 
                                                             ---------                        --------- 
 
  Equity attributable to 
   equity holders                                               29,340                           29,691 
                                                             ---------                        --------- 
  Net asset value per share                                    101.35p                          102.56p 
                                                             ---------                        --------- 
 
 
  Statement of Changes in                               6 months ended                       Year ended 
  Shareholders' equity                               30 September 2019                    31 March 2019 
                                                               GBP'000                          GBP'000 
 
  Opening shareholders' 
   funds                                                        29,691                           28,463 
  Profit for the period                                          (351)                            1,228 
  Closing shareholders' 
   funds                                                        29,340                           29,691 
                                                             ---------                        --------- 
 
 
                                                  Unaudited                                  Audited 
  Investment Portfolio                        30 September 2019                           31 March 2019 
                                              Cost             Valuation                Cost             Valuation 
                                    GBP'000         %    GBP'000         %    GBP'000         %    GBP'000         % 
 
  Unquoted qualifying holdings       13,034     47.05     15,085     51.75     13,034     47.23     15,085     51.13 
  Quoted non-qualifying holdings      6,001     21.66      5,453     18.70      6,001     21.75      5,901     20.01 
  Unquoted non-qualifying 
   holdings                           3,827     13.81      3,777     12.96      3,852     13.96      3,801     12.89 
  Financial assets at fair 
   value through profit or loss      22,862     82.52     24,315     83.41     22,887     82.94     24,787     84.03 
  Cash and cash equivalents           4,840     17.48      4,840     16.59      4,711     17.06      4,711     15.97 
                                     27,702    100.00     29,155    100.00     27,598    100.00     29,498    100.00 
  Qualifying Holdings 
  Unquoted 
  Solar 
 
  Digima Ltd                          1,262      4.56      1,612      5.53      1,262      4.57      1,612      5.46 
  Digital Screen Solutions 
   Ltd                                2,020      7.29      2,658      9.12      2,020      7.32      2,658      9.01 
  Green Energy for Education 
   Ltd                                  475      1.71      1,127      3.87        475      1.72      1,127      3.82 
 
  Hydroelectric Power 
 
  Elementary Energy Ltd               1,718      6.20      2,009      6.89      1,718      6.23      2,009      6.81 
  Green Highland Shenval Ltd            359      1.30        256      0.88        359      1.30        256      0.87 
 
  Gas Power 
 
  Green Peak Generation Ltd           2,200      7.94      2,423      8.31      2,200      7.97      2,423      8.21 
 
  Vertical Growing 
 
  Perfectly Fresh Cheshire 
   Ltd                                5,000     18.05      5,000     17.15      5,000     18.12      5,000     16.95 
 
                                     13,034     47.05     15,085     51.75     13,034     47.23     15,085     51.13 
  Non-Qualifying Holdings 
  Quoted 
  Investment Property 
 
  TP Social Housing REIT Plc 
   Equity                             6,001     21.66      5,453     18.70      6,001     21.75      5,901     20.01 
 
                                      6,001     21.66      5,453     18.70      6,001     21.74      5,901     20.00 
  Unquoted 
  Crematorium Management 
 
  Furnace Managed Services 
   Ltd                                  486      1.75         93      0.32        496      1.80        103      0.35 
 
  Hydroelectric Power 
 
  Elementary Energy Ltd                 233      0.84        233      0.80        248      0.90        248      0.84 
 
  SME Funding 
  Hydroelectric Power: 
  Broadpoint 2 Ltd                      750      2.71        750      2.57        750      2.72        750      2.54 
  Other: 
  Funding Path Ltd                    2,200      7.94      2,200      7.55      2,200      7.97      2,200      7.46 
  Aeris Power Ltd                       158      0.57        501      1.72        158      0.57        500      1.70 
 
                                      3,827     13.81      3,777     12.96      3,852     13.96      3,801     12.89 
 

Notes to the Unaudited Interim Financial Report

   1.           Corporate information 

The Unaudited Interim Financial Report of the Company for the 6 months ended 30 September 2019 was authorised for issue in accordance with a resolution of the Directors on 21 November 2019.

The Company is listed on the London Stock Exchange.

Triple Point Income VCT plc is incorporated and domiciled in Great Britain. The address of the Company's registered office, which is also its principal place of business, is 1 King William Street, London, EC4N 7AF.

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.

The financial information set out in this report does not constitute statutory accounts as defined in S434 of the Companies Act 2006.

   2.           Basis of preparation and accounting policies 

Basis of preparation

The Unaudited Interim Financial Report of the Company for the 6 months ended 30 September 2019 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 31 March 2019.

Estimates

The preparation of the Interim Report requires the Board 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 
 
                                   Ord Shares    C Shares    D Shares    E Shares      Total 
  Unaudited                           GBP'000     GBP'000     GBP'000     GBP'000    GBP'000 
  6 months ended 30 September 
   2019 
  Loan stock interest                       -         360         410         288      1,058 
  Dividends receivable                      -         331           -          20        351 
  Interest receivable on bank 
   and other balances                       -           1           1           5          7 
  Other Investment Income                   -           -           -          44         44 
  Property Income                           -           -           -         103        103 
 
                                            -         692         411         460      1,563 
 
 
                                  Ord Shares    C Shares    D Shares    E Shares      Total 
  Audited                            GBP'000     GBP'000     GBP'000     GBP'000    GBP'000 
  Year ended 31 March 2019 
  Loan stock interest                      4         733         918         531      2,186 
  Dividends receivable                     -         393           -           -        393 
  Interest receivable on bank 
   and other balances                     19           1           1          42         63 
  Other Investment Income                  -           -           -         123        123 
  Property Income                          -           -           -         158        158 
                                          23       1,127         919         854      2,923 
 
   5.           Investment management fees 

TPIM provides investment management and administration services to the Company under an Investment Management Agreement effective 6 February 2008 and deeds of variation to that agreement effective 21 November 2012, 28 October 2014 and 7 October 2016.

Ordinary Shares: The agreement provides for an investment management fee of 1.5% per annum of net assets payable quarterly in arrear for the Ordinary Shares. For the Ordinary Shares issued under the 2007 offer the agreement ran until 6 February 2014 after which the management fee of 1.5% has not been charged. For all other Ordinary Shares, the appointment continued to 30 April 2019 after which there was a 1% exit fee on all funds returned to shareholders.

C shares: The agreement provides for an administration and investment management fee of 2% per annum of net assets payable quarterly in arrear for an appointment of at least six years from the admission of those shares. Subject to distributions to the C Shareholders exceeding the C Share hurdle, the Investment Manager will be entitled to a performance incentive fee of 20%.

D shares: The agreement provides for an administration and investment management fee of 2% per annum of net assets payable quarterly in arrear for an appointment of at least six years from the admission of those shares. Subject to distributions to the D Shareholders exceeding the D Share hurdle, the Investment Manager will be entitled to a performance incentive fee of 20%.

E shares: The agreement provides for an administration and investment management fee of 2% per annum of net assets payable quarterly in arrear for an appointment of at least six years from the admission of those shares. Subject to distributions to the E Shareholders exceeding the E Share hurdle, the Investment Manager will be entitled to a performance incentive fee of 20%.

To date there have been no performance fees paid.

An administration fee equal to 0.25% per annum of the Company's net assets is payable quarterly in arrear.

 
                               Ord Shares    C Shares    D Shares    E Shares      Total 
                                  GBP'000     GBP'000     GBP'000     GBP'000    GBP'000 
  6 months ended 30 September 2019 
  Unaudited 
 
  Investment Management 
   Fees                                 -         183         161         261        605 
 
                                        -         183         161         261        605 
 
 
  Year ended 31 March 2019 
  Audited 
 
  Investment Management 
   Fees                              (12)         305         231         504      1,028 
 
                                     (12)         305         231         504      1,028 
 
   6.           Directors' remuneration 

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.

 
                                  C Shares    D Shares    E Shares      Total 
                                   GBP'000     GBP'000     GBP'000    GBP'000 
  6 months ended 30 September 
   2019 
  David Frank                            3           3           4         10 
  Simon Acland                           3           2           4          9 
  Michael Stanes                         2           2           5          9 
                                         8           7          13         28 
 
  Year ended 31 March 2019 
  David Frank                            5           4          10         19 
  Simon Acland                           4           4          10         18 
  Michael Stanes                         4           4          10         18 
                                        13          12          30         55 
 
   7.           Taxation 
 
                                           Ord Shares    C Shares    D Shares    E Shares      Total 
                                              GBP'000     GBP'000     GBP'000     GBP'000    GBP'000 
  Unaudited 
  6 months ended 30 September 
   2019 
  Profit on ordinary activities 
   before tax                                       -         459         203       (333)        329 
 
  Corporation tax @ 19%                             -          86          38        (63)         61 
  Effect of: 
  Capital (gains) not taxable                       -           -           -          85         85 
  Income received not taxable                       -        (63)           -         (4)       (67) 
  Tax charge/(credit)                               -          23          38          18         79 
 
  Audited 
  Year ended 31 March 2019 
  Profit/(loss) on ordinary activities 
   before tax                                      35       3,652       2,083       1,263      7,033 
 
  Corporation tax @ 20%                             7         694         396         240      1,337 
  Effect of: 
  Capital (gains) not taxable                       -       (553)       (280)       (205)    (1,038) 
  Income received not taxable                       -        (75)           -           -       (75) 
  Unrelieved tax losses arising 
   in the year                                      -           -           -         (1)        (1) 
  Prior year adjustment                            13         (7)           -           -          6 
  Tax charge                                       20          59         116          34        229 
 

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 share for C Shares is based on the profit after tax of c.GBP435,000, and on the weighted average number of shares in issue during the period of 13,441,438, which is equal to the number of shares at 30 September 2019.

The earnings per share for D Shares is based on the profit after tax of c.GBP165,000, and on the weighted average number of shares in issue during the period of 13,701,636, which is equal to the number of shares at 30 September 2019.

The earnings per share for E Shares is based on the loss after tax of c.GBP351,000, and on the weighted average number of shares in issue during the period of 28,949,575, which is equal to the number of shares at 30 September 2019.

   9.           Cash and cash equivalents 

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

   10.         Net asset value per share 

The calculation of the Company's net asset value per share for C Shares is based on the Company's net assets attributable to the C Shares of c.GBP17,851,000 divided by the 13,441,438 C Shares in issue.

The calculation of the Company's net asset value per share for D Shares is based on the Company's net assets attributable to the D Shares of c.GBP15,557,000 divided by the 13,701,636 D Shares in issue.

The calculation of the Company's net asset value per share for E Shares is based on the Company's net assets attributable to the E Shares of GBP29,340,000 divided by the 28,949,575 E Shares in issue.

   11.         Commitments and contingencies 

The Company had no commitments or contingent liabilities at 30 September 2019.

   12.         Relationship with Investment Manager 

During the period, TPIM charged GBP261,526 (which has been expensed by the Company) for providing management services to the Company.

Fees paid to the Investment Manager for administrative and Company Secretarial services during the period were GBP44,000.

At 30 September 2019 no fees were due to TPIM.

   13.         Related party transactions 

There are no related party transactions.

   14.         Dividends 

C Shares:

The Company paid a dividend to C Class Shareholders of GBP672,072, equal to 5p per share, on 25 July 2019.

The Board has resolved to pay a special dividend to C Class Shareholders of GBP2,822,702 equal to 21.00p per share which will be paid on 19 December 2019 to shareholders on the register as at 28 November 2019.

D Shares:

The Company paid a dividend to D Class Shareholders of GBP685,082, equal to 5p per share, on 25 July 2019.

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 QFLFLKFFBFBD

(END) Dow Jones Newswires

November 21, 2019 11:17 ET (16:17 GMT)

Grafico Azioni Triple Point Income Vct (LSE:TPVC)
Storico
Da Feb 2024 a Mar 2024 Clicca qui per i Grafici di Triple Point Income Vct
Grafico Azioni Triple Point Income Vct (LSE:TPVC)
Storico
Da Mar 2023 a Mar 2024 Clicca qui per i Grafici di Triple Point Income Vct