TIDMILV1 
 
RNS Number : 3613R 
Ingenious Live VCT 1 plc 
20 August 2010 
 

 
INGENIOUS LIVE VCT 1 PLC 
20 August 2010 
             Half-yearly results for the six months to 30 June 2010 
 
Interim management report 
I am delighted to present the half-yearly financial report of Ingenious Live VCT 
1 plc (the "Company") for the six months ended 30 June 2010 (the "Reporting 
Period"). 
 
The Company has now fully committed its funds and is focused on driving 
commercial returns from each investment. 
Festivals 
Creamfields 
Investment amount: GBP850,000 (GBP1,700,000 across the Company and Ingenious 
Live VCT 2 plc). 
Creamfields was voted 'best festival' at the 2010 Music Week Awards in London 
beating competitors such as the Glastonbury Festival and the Reading and Leeds 
Festivals. This year sees the two-day dance music event expand in size to a 
40,000 capacity and will take place on 28 and 29 August 2010. The Cheshire based 
event boasts a line up that includes world famous DJs Tiesto, David Guetta, 
Sasha, DeadMau5 and Calvin Harris playing alongside special guests and 
electronic pioneers Leftfield. 
Ticket sales for this year's event have exceeded all expectations and the 
promoters have announced that both days have sold out in advance. This should 
generate a good return to the Company, further information will be provided in 
the full year accounts to 31 December 2010. 
Underage and Field Day Festivals 
Investment amount: GBP500,000 (GBP1,000,000 across the Company and Ingenious 
Live VCT 2 plc). 
The London based Underage and Field Day Festivals made strong returns for the 
Company in both 2009 and 2010. 
This year the Underage Festival continued to move from strength to strength with 
2010 boasting an impressive lineup featuring artists such as M.I.A, Tinie 
Tempah, Tinchy Stryder, Ellie Goulding and Crystal Castles. Following four 
successful years the event has firmly established its market niche as the summer 
music event for under 18 year olds. 
Meanwhile, Field Day which is well established as the leading alternative music 
festival in London, featured electric performances from Phoenix, Moderat and The 
Fall. The 2010 events delivered a solid profit for the Company. 
80s Rewind Festival 
Investment amount: GBP346,848 (GBP693,696 across the Company and Ingenious Live 
VCT 2 plc, and GBP545,196 across Ingenious Entertainment VCT 1 plc and Ingenious 
Entertainment VCT 2 plc). 
We are pleased to report that the 80s Rewind Festival, a two-day music festival 
to be held in Henley-on- Thames between 20 and 22 August 2010, is proving very 
popular with anticipated sales of over 35,000 tickets. The 2010 event hosts a 
list of 80s stars including Rick Astley, Boy George, T'Pau, Marc Almond, Level 
42, Tony Hadley with ABC and Go West.  We also anticipate that this event will 
generate a profit for the Company. 
Powderham Castle/80s Rewind Tour 
Investment amount: GBP328,350 (GBP656,700 across the Company and Ingenious Live 
VCT 2 plc). 
Following two years of losses, the investment underwent a thorough review and 
the decision was taken not to proceed with future Powderham Castle concerts. 
The funds have been reinvested in the Reporting Period into the 80s Rewind 
Christmas Tour - an adjunct to the successful 80s Rewind Festival in 
Henley-on-Thames. The tour takes place in 8 major venues starting in November 
2010; London Wembley Arena, Manchester MEN Arena, Birmingham LG Arena, 
Sheffield, Glasgow, Bournemouth, Cardiff and Newcastle. 
Exhibitions 
Brand Events - Taste of Christmas and the Taste Festivals 
Investment amount (Taste of Christmas): GBP902,489 (GBP1,804,978 across the 
Company and Ingenious Live VCT 2 plc). 
Taste of Christmas, the festive food and drink event, returns to the ExCel 
Centre in London during December 2010 after attracting over 20,000 people to a 
well received show in 2009. The Company expects the event to generate a profit 
for the first time in 2010. 
Investment amount (Taste Festivals): GBP1,000,000 (GBP2,000,000 across the 
Company and Ingenious Live VCT 2 plc). 
The Taste Festivals are established and successful outdoor food and wine events 
featuring a number of famous chefs including Gary Rhodes and Antony Worrall 
Thompson who serve up their signature dishes for the public to taste. They are 
currently held throughout the world in 18 different locations including Cape 
Town, Sydney and Dubai. The London event took place in Regent's Park from 17 to 
20 June 2010, whilst the Edinburgh event was held in Inverleith Park from 28 to 
29 May 2010. The investment generated a small profit to the Company. 
Golf Live 
Investment amount: GBP275,000 (GBP1,100,000 across the Company, Ingenious Live 
VCT 2 plc, Ingenious Entertainment VCT 1 plc and Ingenious Entertainment VCT 2 
plc). 
In December 2009, the Company, Ingenious Live VCT 2 plc, Ingenious Entertainment 
VCT 1 plc and Ingenious Entertainment VCT 2 plc invested alongside Brand Events 
Limited to co-promote 02 Golf Live a new three-day interactive golf event which 
was staged at Stoke Park in Buckinghamshire between 14 and 16 May 2010. 
Brand Events Limited has established a strong reputation within the UK for 
successfully launching new consumer shows. Brand Events Limited has now 
established two key shows: the Taste Festivals, food festivals celebrating 
different foods; and Top Gear Live, the Top Gear branded live motoring theatre 
format. 
The event represents a creative way of bringing the Sports and Exhibition 
markets closely together, and the longer term aim is to role the event out to 
further prestigious golf courses around the world. O2, Jaguar and the European 
Tour were amongst the partners for the initial UK event. 
The event made a loss in the first year, but was extremely well received by both 
the corporate partners and the paying public. The audience satisfaction rating 
was the highest that Brand Events Limited had ever received. Golf Live is 
considered to have strong long term potential to build on the significant brand 
awareness that it has created in its first year. 
Live Venues 
Scarborough Open Air Theatre 
Investment amount: GBP1,000,000 (GBP2,000,000 across the Company and Ingenious 
Live VCT 2 plc). 
The Company co-promotes the Scarborough Open Air Theatre, the largest open air 
theatre venue in Europe, with Apollo Resorts and Leisure Scarborough Ltd. 
Originally opened in 1932, a major restoration has been taking place as part of 
the North Bay Project to reinstate the theatre which opened on 23 July 2010. The 
theatre, which seats up to 6,300 people, will become a major venue in the north 
east of England for theatre, concerts, opera and dance. 
Her Majesty the Queen visited Scarborough to open the venue and recent Grand 
Gala show hosted performances from José Carreras and Dame Kiri Te Kanawa. This 
summer's schedule has also included other major shows such as the 80s Rewind 
Tour, The Doves/Newton Faulkner/The Futureheads and performances by Justin 
Fletcher, the Bafta award winning children's presenter and star of Cbeebies' 
Something Special, in Justin Live. 
Theatre and Television Format 
Let's Dance 
Investment amount: GBP500,000 (GBP2,000,000 across the Company, Ingenious Live 
VCT 2 plc, Ingenious Entertainment VCT 1 plc and Ingenious Entertainment VCT 2 
plc). 
Let's Dance was commissioned by the BBC for Comic Relief in 2009 and proved to 
be an instant hit, with audience ratings peaking at 8.6 million viewers for the 
final on BBC 1. 
The show was recommissioned as Let's Dance for Sports Relief in 2010 which aired 
for four weeks in February to equally impressive audience figures. Following the 
ratings success of both series the format has now been sold and aired in both 
Germany and Holland. The Investment Manager is in discussions in a number of 
other territories around the world regarding the licensing of this format and 
the Company expects these sales to return a profit in the near future. 
Annie Get Your Gun 
Investment amount: GBP252,500 (GBP505,000 across the Company and Ingenious Live 
VCT 2 plc). 
In November 2009, the Company invested into the theatrical production of Annie 
Get Your Gun (starring Jane Horrocks).  It completed a successful season at the 
Young Vic in London in January 2010, and delivered a small profit to the 
Company.  We are currently exploring further opportunities with regards to this 
investment. 
 
 
The Company is managed as a venture capital trust ("VCT"), enabling Shareholders 
to benefit from both the income and capital gains tax relief available. 
Shareholders will be aware that in order to qualify for this tax relief 70% of 
net funds raised must be invested in VCT qualifying companies within three 
years. The Company can confirm that over 70% of net funds had been fully 
deployed in VCT qualifying companies in advance of the 31 December 2009 
deadline. 
 
 
The Company made a loss on ordinary activities of GBP137,000 in the period to 30 
June 2010 (30 June 2009: GBP108,000 loss; 31 December 2009: GBP104,000 profit). 
The Company paid its first interim dividend of 7 pence per share during the 
reporting period (30 June 2009: GBPNil; 31 December 2009: GBPNil). 
 
The net asset value of each share is 88.6 pence (31 December 2009: 97.1 pence; 
30 June 2009: 94.8 pence), the 30 June 2010 net asset value reflects the payment 
of 7.0 pence per share interim dividend. 
 
 
The Company's assets consist of equities and interest bearing investments, cash 
and realisable marketable securities. Its principal risks and uncertainties for 
the remaining six months of the year are therefore market risk, interest rate 
risk, credit risk and liquidity risk. Other risks faced by the Company include 
investment and strategic risks, loss of approved status as a Venture Capital 
Trust, regulatory, financial and other external risks. These risks, and the way 
in which they are managed, are described in more detail in the Directors' Report 
and Business Review in the Annual Report and Accounts for the year ended 31 
December 2009. The Company's principal risks and uncertainties have not changed 
materially since the date of that report. 
 
It was noted in our review of the market in the 31 December 2009 Annual Report 
and Accounts that the challenging economic environment would be likely to 
adversely affect the live events sector as consumers became more cautious about 
their discretionary spending. However, I am pleased to report that the live 
events sector has performed resiliently in the downturn. 
For example, a report from the Association of Independent Festivals released in 
the reporting period demonstrates that the music festival business remains 
strong and despite the economic downturn is contributing more than GBP1bn each 
year to the UK economy. 
Our investment strategy of underpinning investments with contractual minimum 
guarantees, as well as working with only the very best event partners in the 
industry, has ensured exposure to risks from the economic environment has been 
minimised. In fact, the portfolio has performed strongly in the reporting period 
with investments such as Let's Dance, Underage and Field Day and Creamfields 
indicating that there continues to be a strong market for live events. 
I intend to report further on such activity in my full statement to accompany 
the Annual Report and Accounts for the year ending 31 December 2010. 
 
Patrick McKenna 
Chairman 
19 August 2010 
 
For further information, please visit: www.ingeniousvcts.com or contact: 
Ingenious Ventures 
Paul Bedford 
 
 020 7319 4000 
 
 
directors' responsibility statement 
The directors are responsible for preparing the half-yearly financial report and 
the condensed set of financial statements in accordance with the Accounting 
Standards Board's Statement 'Half-Yearly Financial Reports'. 
In preparing these condensed financial statements, the directors are required 
to: 
·      select suitable accounting policies and then apply them consistently; 
·      make judgements and estimates that are reasonable and prudent; 
·      state whether applicable United Kingdom accounting standards have been 
followed; and 
·      prepare the condensed financial statements on the going concern basis 
unless it is inappropriate to presume that the Company will continue in 
business. 
The directors are responsible for keeping proper accounting records that 
disclose with reasonable accuracy at any time the financial position of the 
Company and enable them to ensure that the financial statements comply with the 
Companies Act 2006. They are also responsible for safeguarding the assets of the 
Company and hence for taking reasonable steps for the prevention and detection 
of fraud and other irregularities. 
The directors are responsible for the maintenance and integrity of the corporate 
and financial information included on the Company's website. Legislation in the 
United Kingdom governing the preparation and dissemination of the condensed 
financial statements may differ from legislation in other jurisdictions. 
To the best of my knowledge: 
·      the financial statements, prepared in accordance with the applicable set 
of accounting standards, give a true and fair view of the assets, liabilities, 
financial position and profit or loss of the Company; and 
·      the interim management report includes a fair review of the development 
and performance of the business and the position of the Company, together with a 
description of the principal risks and uncertainties they face. 
 
 
Patrick McKenna 
Chairman 
19 August 2010 
 
 
income statement (unaudited) 
for the six months ended 30 June 2010 
+--------------------------------+------+---------+---------+---------+ 
|                                |      |      Six months ended       | 
|                                |      |        30 June 2010         | 
|                                |      |        (unaudited)          | 
+--------------------------------+------+-----------------------------+ 
|                                |Note  | Revenue | Capital |   Total | 
|                                |      | GBP'000 | GBP'000 | GBP'000 | 
+--------------------------------+------+---------+---------+---------+ 
| Gain on disposal of            |      |       - |      57 |      57 | 
| investments                    |      |         |         |         | 
+--------------------------------+------+---------+---------+---------+ 
| (Decrease)/increase in fair    |      |       - |   (214) |   (214) | 
| value of investments held      |      |         |         |         | 
+--------------------------------+------+---------+---------+---------+ 
| Investment income              |      |     162 |       - |     162 | 
+--------------------------------+------+---------+---------+---------+ 
| Investment management fees     |      |    (45) |    (45) |    (90) | 
+--------------------------------+------+---------+---------+---------+ 
| Other expenses                 |      |    (52) |       - |    (52) | 
+--------------------------------+------+---------+---------+---------+ 
| (Loss)/profit on ordinary      |      |      65 |   (202) |   (137) | 
| activities before taxation     |      |         |         |         | 
+--------------------------------+------+---------+---------+---------+ 
| Tax on ordinary activities     |      |       - |       - |       - | 
+--------------------------------+------+---------+---------+---------+ 
| (Loss)/profit attributable to  |      |      65 |   (202) |   (137) | 
| equity shareholders            |      |         |         |         | 
+--------------------------------+------+---------+---------+---------+ 
| Basic and diluted return per   |  2   |     0.7 |   (2.2) |   (1.5) | 
| share (pence)                  |      |         |         |         | 
+--------------------------------+------+---------+---------+---------+ 
The Company has no recognised gains and losses other than those disclosed above. 
The total column is the income statement of the Company for the year. The 
supplementary capital and revenue columns are prepared with guidance published 
by the Association of Investment Companies (AIC). 
 
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS (UNAUDITED) 
for the six months ended 30 June 2010 
+---------------+-------------+-------------+-----------+ 
|               |          30 |          30 |        31 | 
|               |        June |        June |  December | 
|               |        2010 |        2009 |      2009 | 
|               | (unaudited) | (unaudited) | (audited) | 
|               |     GBP'000 |     GBP'000 |   GBP'000 | 
+---------------+-------------+-------------+-----------+ 
| Opening       |       8,973 |       8,869 |     8,869 | 
| shareholders' |             |             |           | 
| funds         |             |             |           | 
+---------------+-------------+-------------+-----------+ 
| Dividends     |       (647) |           - |         - | 
+---------------+-------------+-------------+-----------+ 
| (Loss)/profit |       (137) |       (108) |       104 | 
| for the       |             |             |           | 
| period        |             |             |           | 
+---------------+-------------+-------------+-----------+ 
| Closing       |       8,189 |       8,761 |     8,973 | 
| shareholders' |             |             |           | 
| funds         |             |             |           | 
+---------------+-------------+-------------+-----------+ 
The accompanying notes form an integral part of these financial statements. 
+--------------------------------+------+---------+---------+---------+ 
|                                |      |      Six months ended       | 
|                                |      |        30 June 2009         | 
|                                |      |        (unaudited)          | 
+--------------------------------+------+-----------------------------+ 
|                                |Note  | Revenue | Capital |   Total | 
|                                |      | GBP'000 | GBP'000 | GBP'000 | 
+--------------------------------+------+---------+---------+---------+ 
| Gain on disposal of            |      |       - |     105 |     105 | 
| investments                    |      |         |         |         | 
+--------------------------------+------+---------+---------+---------+ 
| (Decrease)/increase in fair    |      |       - |    (69) |    (69) | 
| value of investments held      |      |         |         |         | 
+--------------------------------+------+---------+---------+---------+ 
| Investment income              |      |       4 |       - |       4 | 
+--------------------------------+------+---------+---------+---------+ 
| Investment management fees     |      |    (44) |    (44) |    (88) | 
+--------------------------------+------+---------+---------+---------+ 
| Other expenses                 |      |    (55) |     (5) |    (60) | 
+--------------------------------+------+---------+---------+---------+ 
| (Loss)/profit on ordinary      |      |    (95) |    (13) |   (108) | 
| activities before taxation     |      |         |         |         | 
+--------------------------------+------+---------+---------+---------+ 
| Tax on ordinary activities     |      |       - |       - |       - | 
+--------------------------------+------+---------+---------+---------+ 
| (Loss)/profit attributable to  |      |    (95) |    (13) |   (108) | 
| equity shareholders            |      |         |         |         | 
+--------------------------------+------+---------+---------+---------+ 
| Basic and diluted return per   |  2   |   (1.0) |   (0.1) |   (1.1) | 
| share (pence)                  |      |         |         |         | 
+--------------------------------+------+---------+---------+---------+ 
|                                |      |      Six months ended       | 
|                                |      |      31 December 2009       | 
|                                |      |          (audited)          | 
+--------------------------------+------+-----------------------------+ 
|                                |Note  | Revenue | Capital |   Total | 
|                                |      | GBP'000 | GBP'000 | GBP'000 | 
+--------------------------------+------+---------+---------+---------+ 
| Gain on disposal of            |      |       - |     154 |     154 | 
| investments                    |      |         |         |         | 
+--------------------------------+------+---------+---------+---------+ 
| (Decrease)/increase in fair    |      |       - |     178 |     178 | 
| value of investments held      |      |         |         |         | 
+--------------------------------+------+---------+---------+---------+ 
| Investment income              |      |      68 |       - |      68 | 
+--------------------------------+------+---------+---------+---------+ 
| Investment management fees     |      |    (89) |    (89) |   (178) | 
+--------------------------------+------+---------+---------+---------+ 
| Other expenses                 |      |   (105) |    (13) |   (118) | 
+--------------------------------+------+---------+---------+---------+ 
| (Loss)/profit on ordinary      |      |   (126) |     230 |     104 | 
| activities before taxation     |      |         |         |         | 
+--------------------------------+------+---------+---------+---------+ 
| Tax on ordinary activities     |      |       - |       - |       - | 
+--------------------------------+------+---------+---------+---------+ 
| (Loss)/profit attributable to  |      |   (126) |     230 |     104 | 
| equity shareholders            |      |         |         |         | 
+--------------------------------+------+---------+---------+---------+ 
| Basic and diluted return per   |  2   |   (1.4) |     2.5 |     1.1 | 
| share (pence)                  |      |         |         |         | 
+--------------------------------+------+---------+---------+---------+ 
 
balance sheet (unaudited) 
as at 30 June 2010 
+------------------------------+------+-------------+-------------+-----------+ 
|                              |Note  |          30 |          30 |        31 | 
|                              |      |        June |        June |  December | 
|                              |      |        2010 |        2009 |      2009 | 
|                              |      | (unaudited) | (unaudited) | (audited) | 
|                              |      |     GBP'000 |     GBP'000 |   GBP'000 | 
+------------------------------+------+-------------+-------------+-----------+ 
| Fixed assets                 |      |             |             |           | 
+------------------------------+------+-------------+-------------+-----------+ 
| Qualifying investments       |      |       6,242 |       4,427 |     6,242 | 
+------------------------------+------+-------------+-------------+-----------+ 
| Current assets               |      |             |             |           | 
+------------------------------+------+-------------+-------------+-----------+ 
| Debtors                      |      |          68 |           9 |        68 | 
+------------------------------+------+-------------+-------------+-----------+ 
| Non-qualifying investments   |  3   |       1,776 |       4,286 |     2,598 | 
+------------------------------+------+-------------+-------------+-----------+ 
| Cash at bank in hand         |      |         127 |          68 |        93 | 
+------------------------------+------+-------------+-------------+-----------+ 
|                              |      |       1,971 |       4,363 |     2,759 | 
+------------------------------+------+-------------+-------------+-----------+ 
|                              |      |             |             |           | 
+------------------------------+------+-------------+-------------+-----------+ 
| Creditors: amounts falling   |      |        (24) |        (29) |      (28) | 
| due within one year          |      |             |             |           | 
+------------------------------+------+-------------+-------------+-----------+ 
| Net current assets           |      |       1,947 |       4,334 |     2,731 | 
+------------------------------+------+-------------+-------------+-----------+ 
| Net assets                   |      |       8,189 |       8,761 |     8,973 | 
+------------------------------+------+-------------+-------------+-----------+ 
|                              |      |             |             |           | 
+------------------------------+------+-------------+-------------+-----------+ 
| Capital and reserves         |      |             |             |           | 
+------------------------------+------+-------------+-------------+-----------+ 
| Called-up share capital      |      |          92 |          92 |        92 | 
+------------------------------+------+-------------+-------------+-----------+ 
| Share premium account        |      |       4,383 |       4,383 |     4,383 | 
+------------------------------+------+-------------+-------------+-----------+ 
| Other reserves               |      |       3,735 |       4,382 |     4,382 | 
+------------------------------+------+-------------+-------------+-----------+ 
| Capital reserve              |      |         414 |         373 |       616 | 
+------------------------------+------+-------------+-------------+-----------+ 
| Revenue reserve              |      |       (435) |       (469) |     (500) | 
+------------------------------+------+-------------+-------------+-----------+ 
| Equity shareholders' funds   |      |       8,189 |       8,761 |     8,973 | 
+------------------------------+------+-------------+-------------+-----------+ 
| Net asset value (pence per   |  4   |        88.6 |        94.8 |      97.1 | 
| share)                       |      |             |             |           | 
+------------------------------+------+-------------+-------------+-----------+ 
The accompanying notes form an integral part of these financial statements. 
 
cash flow statement (unaudited) 
for the six months ended 30 June 2010 
+---------------------+-------------+-------------+-----------+ 
|                     |         Six |         Six |      Year | 
|                     |      months |      months |     ended | 
|                     |       ended |       ended |           | 
+---------------------+-------------+-------------+-----------+ 
|                     |          30 |          30 |        31 | 
|                     |        June |        June |  December | 
|                     |        2010 |        2009 |      2009 | 
|                     | (unaudited) | (unaudited) | (audited) | 
|                     |     GBP'000 |     GBP'000 |   GBP'000 | 
+---------------------+-------------+-------------+-----------+ 
| Net                 |        (89) |        (39) |     (134) | 
| cash                |             |             |           | 
| outflow             |             |             |           | 
| from                |             |             |           | 
| operating           |             |             |           | 
| activities          |             |             |           | 
+---------------------+-------------+-------------+-----------+ 
| Capital             |             |             |           | 
| expenditure         |             |             |           | 
+---------------------+-------------+-------------+-----------+ 
| Purchase            |        (74) |     (1,675) |   (3,203) | 
| of                  |             |             |           | 
| qualifying          |             |             |           | 
| investments         |             |             |           | 
+---------------------+-------------+-------------+-----------+ 
| Disposal            |          74 |           - |         - | 
| of                  |             |             |           | 
| qualifying          |             |             |           | 
| investments         |             |             |           | 
+---------------------+-------------+-------------+-----------+ 
| Net                 |           - |     (1,675) |   (3,203) | 
| cash                |             |             |           | 
| outflow             |             |             |           | 
| from                |             |             |           | 
| capital             |             |             |           | 
| expenditure         |             |             |           | 
+---------------------+-------------+-------------+-----------+ 
| Management          |             |             |           | 
| of liquid           |             |             |           | 
| resources           |             |             |           | 
+---------------------+-------------+-------------+-----------+ 
| Disposal            |         770 |       1,690 |     3,338 | 
| of                  |             |             |           | 
| non-qualifying      |             |             |           | 
| investments         |             |             |           | 
+---------------------+-------------+-------------+-----------+ 
| Net                 |         770 |       1,690 |     3,338 | 
| cash                |             |             |           | 
| inflow              |             |             |           | 
| from                |             |             |           | 
| liquid              |             |             |           | 
| resources           |             |             |           | 
+---------------------+-------------+-------------+-----------+ 
| Financing           |             |             |           | 
+---------------------+-------------+-------------+-----------+ 
| Dividends           |       (647) |           - |         - | 
+---------------------+-------------+-------------+-----------+ 
| Net                 |       (647) |           - |         - | 
| cash                |             |             |           | 
| outflow             |             |             |           | 
| from                |             |             |           | 
| financing           |             |             |           | 
+---------------------+-------------+-------------+-----------+ 
| Increase/(decrease) |          34 |        (24) |         1 | 
| in cash             |             |             |           | 
+---------------------+-------------+-------------+-----------+ 
 
Reconciliation of (loss)/profit before taxation to net cash flow from operating 
activities 
+---------------------+---------+---------+---------+ 
|                     | GBP'000 | GBP'000 | GBP'000 | 
+---------------------+---------+---------+---------+ 
| (Loss)/profit       |   (137) |   (108) |     104 | 
| on ordinary         |         |         |         | 
| activities          |         |         |         | 
| before tax          |         |         |         | 
+---------------------+---------+---------+---------+ 
| Decrease/(increase) |     214 |      69 |   (178) | 
| in fair value of    |         |         |         | 
| investments held    |         |         |         | 
+---------------------+---------+---------+---------+ 
| Investment          |   (162) |       - |       - | 
| income              |         |         |         | 
+---------------------+---------+---------+---------+ 
| Increase            |       - |     (3) |    (62) | 
| in                  |         |         |         | 
| receivables         |         |         |         | 
+---------------------+---------+---------+---------+ 
| (Decrease)/increase |     (4) |       3 |       2 | 
| in payables         |         |         |         | 
+---------------------+---------+---------+---------+ 
| Net                 |    (89) |    (39) |   (134) | 
| cash                |         |         |         | 
| outflow             |         |         |         | 
| from                |         |         |         | 
| operating           |         |         |         | 
| activities          |         |         |         | 
+---------------------+---------+---------+---------+ 
 
Reconciliation of net cash flow to movement in net funds 
+------------------+---------+---------+---------+ 
|                  | GBP'000 | GBP'000 | GBP'000 | 
+------------------+---------+---------+---------+ 
| Opening          |      93 |      92 |      92 | 
| cash             |         |         |         | 
| balances         |         |         |         | 
+------------------+---------+---------+---------+ 
| Net              |      34 |    (24) |       1 | 
| cash             |         |         |         | 
| inflow/(outflow) |         |         |         | 
+------------------+---------+---------+---------+ 
| Closing          |     127 |      68 |      93 | 
| cash             |         |         |         | 
| balances         |         |         |         | 
+------------------+---------+---------+---------+ 
 
notes to the financial statements (unaudited) 
for the six months ended 30 June 2010 
1.     Accounting Policies 
a)     Basis of Accounting 
The financial statements for the Reporting Period have been prepared in 
compliance with UK Generally Accepted Accounting Practice, and with the 
Statement of Recommended Practice (the "SORP") entitled "Financial Statements of 
Investment Trust Companies and Venture Capital Trusts" which was issued in 
January 2009. 
These financial statements have been drawn up adopting the accounting policies 
set out in the Annual Report and Accounts for the year to 31 December 2009, with 
the exception of the accounting policy below on Investment Income. The adoption 
of that policy has not led to an adjustment to the prior period financial 
statements as the effect is not significant. 
b)    Valuation of Investments 
The Company's business is investing in financial assets with a view to profiting 
from their total return in the form of income and capital growth.  As set out in 
the prospectus all investments are designated at fair value. 
Investee Companies 
Unquoted investments including equity and loan investments are designated at 
fair value and valued in accordance with the International Private Equity and 
Venture Capital Guidelines and Financial Reporting Standard 26 "Financial 
Instruments: Recognition and Measurement" ("FRS 26").  Investments are initially 
recognised at fair value. The investments are subsequently re-measured at fair 
value, as estimated by the Directors with prudence and good faith. Investment 
holding gains or losses arising from the revaluation of investments are taken 
directly to the income statement.  Fair value is determined as follows: 
·      Fair value is the amount for which an asset could be exchanged between 
knowledgeable,        willing parties in an arm's length transaction. 
·      In estimating fair value for an investment, the Investment Manager will 
apply a methodology that is appropriate in light of the nature, facts and 
circumstances of the investment and its materiality in the context of the total 
investment portfolio and will use reasonable assumptions and estimations. 
·      An appropriate methodology incorporates available information about all 
factors that are likely to materially affect the fair value of the investment. 
The valuation methodologies are applied consistently from period to period, 
except where a change would result in a better estimate of fair value. Any 
changes in valuation methodologies will be clearly disclosed in the financial 
statements. 
The most widely used methodologies are listed below.  In assessing which 
methodology is appropriate, the Directors are predisposed towards those 
methodologies that draw upon market-based measures of risk and return. 
·      Price of recent investment 
·      Earnings multiple 
·      Net assets 
·      Available market prices 
Of these the two methodologies most applicable to the Company's investments are: 
1 - Price of recent investment 
Where the investment being valued was made recently, its cost will generally 
provide a good indication of value. It is generally considered that this would 
only apply for a limited period; in practice a period up to the start of the 
first live event which forms the investment is often applied as the long stop 
date for such a valuation. 
2 - Discounted cash flows/earnings of the underlying business 
Investments can be valued by calculating the net present value of expected 
future cashflows of the companies in which the Company has invested (the 
"Investee Companies"). In relation to the Company's investments, anticipating 
future cashflows in excess of the guaranteed amounts would clearly require 
highly subjective judgements to be made in the early stage of each investment 
and therefore would not be an appropriate methodology to apply in the early 
stage of the investment. 
In the period prior to the first live event it is considered appropriate to use 
the price paid for the recent investment as the latest available information. 
Thereafter, the portfolio of investments is fair valued on the discounted cash 
flow/earnings basis using the latest available information on the performance of 
the live event or entertainment content. Gains or losses arising from changes in 
the fair value of the 'financial assets at fair value through profit or loss' 
category are presented in the income statement in the period in which they 
arise. 
As a result of the above basis of valuation, there is significant judgement 
associated with the valuation of investments. 
Non-qualifying Investments - Open Ended Investment Companies 
The Company's non-qualifying investments in interest bearing money market open 
ended investment companies ("OEICs") are valued at fair value, this is bid 
price.  They have been designated as fair value through profit and loss for the 
purposes of FRS 26. 
Gains and losses arising from changes in fair value of qualifying and 
non-qualifying investments are recognised as part of the capital return within 
the income statement and allocated to the realised or unrealised capital reserve 
as appropriate. Transaction costs attributable to the acquisition or disposal of 
investments are charged to capital within the income statement. 
c)    Investment Income 
Interest income is recognised in the income statement under the effective 
interest rate method. The effective interest rate is the rate required to 
discount the expected future income streams over the life of the loan to its 
initial carrying amount. The main impact for the Company in that regard is the 
accounting treatment of the loan note premiums. Where those loan note premiums 
are charged in lieu of higher interest then they are credited to income over the 
life of the advance to the extent those premiums are anticipated to be 
collected. 
d)    Dividend Income 
Dividend income is recognised in the income statement once declared by any 
investee company. 
e)    Expenses 
All expenses are accounted for on an accruals basis. Expenses are charged to the 
revenue account within the income statement except that: 
·      expenses which are incidental to the acquisition or disposal of an 
investment are charged to capital in the income statement as incurred; and 
·      expenses are split and presented partly as capital items where a 
connection with the maintenance or enhancement of the value of the investments 
held can be demonstrated. 
 
f)     Deferred Taxation 
Deferred taxation is recognised in respect of all timing differences that have 
originated but not reversed at the balance sheet date where transactions or 
events that result in an obligation to pay more or a right to pay less, tax in 
the future have occurred at the balance sheet date. This is subject to deferred 
tax assets only being recognised if it is considered more likely than not that 
there will be suitable profits from which the future reversal of the underlying 
timing differences can be deducted. Timing differences are differences arising 
between the Company's taxable profits and its results as stated in the financial 
statements which are capable of reversal in one or more subsequent periods. 
2.     Basic and Diluted Return per Share 
The calculation of basic return per share is based on the return on ordinary 
activities after tax for the period and on a weighted average of 9,242,845 
ordinary shares in issue for the six months ended 30 June 2010 (31 December 
2009: 9,242,845; 30 June 2009: 9,242,845). 
There are no dilutive elements and therefore the basic return per share is the 
same as the diluted return per share. 
3.     Non-qualifying Investments 
In order to safeguard the capital available for investment in VCT qualifying 
investments and balance this with the need to provide good returns to investors, 
available funds from the net proceeds are invested in appropriate securities 
(money market securities and cash funds) until required for Qualifying 
Investment purposes. 
4.     Net Asset Value per Share 
The net asset value per share has been calculated based on 9,242,845 ordinary 
shares being the number of ordinary shares in issue as at 30 June 2010 (31 
December 2009: 9,242,845; 30 June 2009: 9,242,845). 
5.     Related Party Transactions 
a)     Ingenious Ventures Limited was the investment manager until 28 February 
2008, when the investment management agreement was novated to Ingenious Asset 
Management Limited, and Ingenious Ventures became a trading division of 
Ingenious Asset Management Limited. Patrick McKenna is a director of Ingenious 
Asset Management Limited and was a director of Ingenious Ventures Limited until 
1 June 2009, which are both wholly-owned subsidiaries within the Ingenious Media 
Holdings plc group of companies (the "Ingenious Group"), which is controlled by 
Patrick McKenna. 
Ingenious Ventures (the "Manager"), as per the management agreement, receives a 
management fee of 0.5% of the net asset value payable quarterly in advance. The 
Manager also charges an administration fee of GBP19k per annum and irrecoverable 
VAT. 
b)    The funds invested in OEICs are managed by Ingenious Asset Management 
Limited, a company of which Patrick McKenna is a director. Ingenious Asset 
Management Limited is a wholly-owned subsidiary of the Ingenious Group, which is 
controlled by Patrick McKenna. There is no fee associated with this transaction. 
 
During the period the Company has entered into transactions with the 
above-mentioned related parties in the normal course of business and on an arm's 
length basis: 
 
+------------------+--------+---------+---------+----------+---------+---------+----------+ 
|                  |        |      Expenditure Paid        |         Amounts Due          | 
+------------------+--------+------------------------------+------------------------------+ 
| Entity           |  Note  |      30 |      30 |       31 |      30 |      30 |       31 | 
|                  |        |    June |    June | December |    June |    June | December | 
|                  |        |    2010 |    2009 |     2009 |    2010 |    2009 |     2009 | 
|                  |        | GBP'000 | GBP'000 |  GBP'000 | GBP'000 | GBP'000 |  GBP'000 | 
+------------------+--------+---------+---------+----------+---------+---------+----------+ 
| Ingenious Asset           |         |         |          |         |         |          | 
| Management Limited        |         |         |          |         |         |          | 
+---------------------------+---------+---------+----------+---------+---------+----------+ 
| Investment       |      a |      90 |      88 |      178 |       - |       - |        - | 
| management fee   |        |         |         |          |         |         |          | 
+------------------+--------+---------+---------+----------+---------+---------+----------+ 
| Administration   |      a |      10 |       9 |       18 |       - |       - |        - | 
| fee              |        |         |         |          |         |         |          | 
+------------------+--------+---------+---------+----------+---------+---------+----------+ 
| Irrecoverable    |      a |       - |      10 |        8 |       4 |      10 |        3 | 
| VAT              |        |         |         |          |         |         |          | 
+------------------+--------+---------+---------+----------+---------+---------+----------+ 
 
     Transactions between Related Parties 
Ingenious Media Consulting Limited, a company which is a wholly-owned subsidiary 
in the Ingenious Group, which is controlled by Patrick McKenna, has entered into 
consultancy agreements with each of the Company's investee companies to provide 
management services.  For the provision of such services, consulting fees 
totalling GBP110k excluding VAT (31 December 2009: GBP242k; 30 June 2009: 
GBP108k), have been invoiced in the period, no amounts remain outstanding as at 
30 June 2010 (31 December 2009: GBP39k; 30 June 2009: GBP8k). 
6.     Comparative Information 
The unaudited half-yearly financial report for the period ended 30 June 2010 
does not constitute statutory accounts within the meaning of Section 434 of the 
Companies Act 2006 and has not been delivered to the Registrar of Companies. 
The Company's statutory financial statements for the year ended 31 December 2009 
have been delivered to the Registrar of Companies. The auditor's report on those 
financial statements was unqualified and did not contain statements under 
Section 498 (2) or section 498 (3) of the Companies Act 2006. 
7.     Availability of the Half-Yearly Financial Report 
Copies of the half-yearly financial report are being sent or made available 
electronically to all Shareholders. Further copies can be downloaded from the 
Company's website: www.ingeniousvcts.co.uk 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IR GGUUGRUPUGAB 
 

Ingenious 1 (LSE:ILV1)
Historical Stock Chart
From May 2024 to Jun 2024 Click Here for more Ingenious 1 Charts.
Ingenious 1 (LSE:ILV1)
Historical Stock Chart
From Jun 2023 to Jun 2024 Click Here for more Ingenious 1 Charts.