TIDMTPVE TIDMTPVC TIDMTPVD
RNS Number : 4523F
Triple Point Inc VCT - TPVE
16 November 2020
16 November 2020
Triple Point Income VCT plc
(the "Company")
RESULTS FOR THE SIX MONTHSED 30 SEPTEMBER 2020
The Directors of Triple Point Income VCT plc are pleased to
announce the unaudited results for the six months ended 30
September 2020.
You may view the Interim Report in due course on the Triple
Point website: www.triplepoint.co.uk . Please note that page
numbers in this announcement are in reference to the Interim
Report.
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/
.
Financial Summary
Six months ended 30 September
2020
C Shares D Shares E Shares Total
Net assets GBP'000 11,184 7,970 27,882 47,036
Net asset value per
share Pence 83.20p 58.60p 96.31p n/a
----------------------- ---------- ---------- ---------- ---------- --------
Net profit before
tax GBP'000 255 182 330 767
Earnings per share Pence 1.83p 1.09p 1.12p n/a
----------------------- ---------- ---------- ---------- ---------- --------
Cumulative return
to Shareholders (p)
Net asset value per
share 83.20 58.60 96.31
Dividends paid 73.50 70.00 11.50
Net asset value plus
dividends paid 156.70 128.60 107.81
----------------------------------- ---------- ---------- ---------- --------
Year ended 31 March
2020
C Shares D Shares E Shares Total
Net assets GBP'000 11,406 8,559 29,442 49,407
Net asset value per
share Pence 84.87p 62.46p 101.69p n/a
----------------------- ---------- ---------- ---------- ---------- --------
Net profit before
tax GBP'000 746 86 1,217 2,049
Earnings per share Pence 5.29p 0.12p 4.13p n/a
----------------------- ---------- ---------- ---------- ---------- --------
Cumulative return
to Shareholders (p)
Net asset value per
share 84.87 62.46 101.69
Dividends paid 70.00 65.00 5.00
----------
Net asset value plus
dividends paid 154.87 127.46 106.69
----------------------------------- ---------- ---------- ---------- --------
Six months ended 30 September
2019
Unaudited 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 20.00 15.00 -
Net asset value plus
dividends paid 152.80 128.52 101.35
----------------------------------- ---------- ---------- ---------- --------
Triple Point Income VCT plc ("the Company") is a Venture Capital
Trust ("VCT"). The Investment Manager is Triple Point Investment
Management LLP ("TPIM" or "Triple Point"). The Company was
incorporated in November 2007 and currently has three classes of
issued ordinary shares:
-- C Ordinary Shares ("C Shares"): these are the shares issued
in the Offer that closed on 27 May 2014. A total of GBP14 million
was raised and 13,441,438 C Shares were issued.
-- D Ordinary Shares ("D 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 ("E 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.
Key Highlights
-- C Shares Cumulative Dividends Paid: 73.50p ( A dividend of
3.50 pence per C Share was paid on 30 June 2020).
-- D Shares Cumulative Dividends Paid: 70.00p ( A dividend of
5.00 pence per D Share was paid on 30 June 2020).
-- E Shares Cumulative Dividends Paid: 11.50p ( A dividend of
6.50 pence per E Share was paid on 30 June 2020).
-- Total Return per C Share*: 156.70p ( Total Return for the C
Share Class was 156.70 pence per share, which includes cumulative
dividends paid of 73.50 pence per C share).
-- Total Return per D Share*: 128.60p ( Total Return for the D
Share Class was 128.60 pence per share, which includes cumulative
dividends paid of 70.00 pence per D share).
-- Total Return per E Share*: 107.81p ( Total Return for the E
Share Class was 107.81 pence per share, which includes cumulative
dividends paid of 11.50 pence per E share).
*Total Return is made up by current Net Asset Value plus
Dividends paid to date. Total Return is defined as an Alternative
Performance Measure ("APM"). Total Return, calculated by reference
to the cumulative dividends paid plus net asset value (excluding
tax reliefs received by shareholders), is the primary measure of
performance in the VCT industry.
Chairman's Statement
I am pleased to present the Interim Report for the Company for
the period ended 30 September 2020.
The continuing COVID-19 global pandemic has presented a
wide-ranging set of challenges that span public policy, economics
and renewable energy to mention a few. Each one has been, and
continues to be, extraordinary in both complexity and impact.
The depth and speed of the economic contraction across the
developed world is unparalleled in modern times and it appears
extremely optimistic to believe that by the end of 2021 we will be
back to where we were at the start of the year. As I write, England
has just entered a second national lockdown. The social, economic
and financial impact of COVID-19 has been, and remains, immense,
uncertainty over the nature and timing of recovery remains.
Many individual businesses and certain business sectors have
required recapitalisation, with huge damage caused to fragile
supply chains and with heavily dented consumer confidence. Few
business models remain truly unaffected. For at least the next
year, and likely longer than that, economic prospects will be
heavily influenced by the nature of the recovery from the pandemic
and how long-lasting the effects of the resultant recession prove
to be.
The food system in the UK continues to be under strain and t he
E Share Class investment into the vertical growing solution,
Perfectly Fresh Cheshire Limited ("PFC"), continues to help bridge
this gap. The business has continued to operate despite the
obstacles provided by the pandemic. Through this period, PFC has
liaised closely with its main customer in its response to COVID-19,
and I am delighted to say that it has been able to greatly support
them with the product continuing to be grown, delivered on time and
as requested.
Reflecting the severity and timing of COVID-19 measures, power
demand was significantly reduced at the peak of movement
restrictions across the UK, the average demand is running
approximately 10% below 2019 levels. Short-term power prices have
seen extreme volatility as a result of the COVID-19 pandemic and
associated first lockdown. The Company's investments in both
hydroelectric schemes and rooftop solar companies have been
somewhat insulated from this volatility as the majority of revenues
are generated from renewable incentive schemes. As a result, the
valuations have been minimally affected.
Investment Portfolio
The Company's funds at 30 September 2020 are invested in a
portfolio of VCT qualifying and non-qualifying quoted and unquoted
investments. At 30 September 2020 t he Company continues to meet
the condition that at least 80% by value of the Company's
investments are represented by qualifying holdings.
The Investment Manager's review on pages 15 to 24 gives an
update on the portfolio of investments in 17 small unquoted
businesses and one quoted Real Estate Investment Trust.
Regulation
Legislation introduced through the Finance Act 2018 began to
apply to the Company from 1 April 2020, implementing an increase in
the qualifying investment test to 80%. The Investment Manager
continues to monitor this ratio closely and the Board is pleased
that the Company comfortably navigated the transition period and
continues to meet the new requirements.
In line with HMRC guidance, any new investments made by the
Company are now self-assured by the Board and the Investment
Manager on a case-by-case basis and always with confirmation from
professional advisers that they are Qualifying Investments. Advance
Assurance is sought where there is an element of uncertainty or
doubt over the application of the rules.
The Company continued to satisfy all other tests relevant to its
status as a Venture Capital 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 continue to operate in line with
expectations.
I am pleased to report the C Share Class has recorded a profit
over the period of 1.83 pence per share. At 30 September 2020 the
net asset value stood at 83.20 pence per share. Adding back the
total dividends paid to date takes the total return, including the
net asset value, to 156.70 pence per share.
The original target for the C Share Class was to return 100.00
pence per share by the end of year six, comprising the income tax
rebate, four annual tax-free dividends of an average 5.00 pence per
share, followed by a partial realisation of 50.00p. Thereafter an
ongoing dividend of around 3.50p per annum is targeted for a
further nine years and a final capital realisation of c.50 pence
per share in 2029 following the sale of the Company's hydro
projects. I am pleased to say that the Company is achieving this
target for C Shareholders.
The Company has to date returned 73.50 pence per share to
Shareholders: including the initial tax relief this is a return of
over 100 pence per share.
The Board continues to monitor investment activity across the
wider hydro sector and will consider on a regular basis if it is in
shareholders' interests to retain or realise the portfolio on a
regular basis.
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 original target for the D Share Class was to return 100.00
pence per share by the end of year six, comprising the income tax
rebate, four annual tax-free dividends of an average 5.00 pence per
share, followed by a partial realisation of 50.00p. Thereafter an
ongoing dividend of around 3.50p per annum is targeted for a
further nine years and a final capital realisation of c.50 pence
per share in 2030 following the sale of the Company's hydro
projects.
I am pleased to say that the Company is achieving this target
for D Shareholders. The Company has to date returned 70.00 pence
per share to Shareholders: including the initial tax relief this is
a return of 100 pence per share.
T he D Share Class has recorded a profit over the period of 1.09
pence per share. At 30 September 2020 the net asset value stood at
58.60 pence per share. Adding back the total dividends paid takes
the total return, including the net asset value, to 128.60 pence
per share.
The Board continues to monitor investment activity across the
wider hydro sector and will consider on a regular basis if it is in
shareholders' interests to retain or realise the portfolio on a
regular basis.
E Share Class
The E Share Class holds a diverse portfolio of investments
spanning sectors such as vertical growing and energy production
from gas fired energy centres, solar and hydro. While the E Share
Class is at an earlier stage in its life cycle in comparison to the
C and D Share Class, the Board is pleased with its progress to
date.
The E Share Class recorded a profit over the period of 1.12
pence per share as a result of revaluation of investments. At 30
September 2020 the net asset value stood at 96.31 pence per
share.
The E Share Class declared a second dividend of 6.5 pence per
share on 4 June 2020. This dividend was paid to Shareholders on 30
June 2020. This payment takes total dividends paid to E
Shareholders to 11.5 pence per share.
Outlook
The speed and extent to which COVID-19 has changed daily life is
hard to overstate. Whilst the first wave of the pandemic appeared
to be behind us and movement restrictions were being clarified,
uncertainty has increased, particularly in the short term as
England has entered a second national lockdown. We do not yet know
how quickly economies will recover or for how long governments can
continue to run up such enormous deficits.
In June 2019, the UK parliament adopted a net zero emissions
target for 2050, going further than previous legislation, which
mandated 80% emission reductions by 2050. Decarbonisation of the
electricity sector, primarily through renewable generation, will be
critical to achieving this. The Company continues to support this
target through all its Share Classes and their investments in
hydroelectricity, solar and gas fired energy centres. The UK still
experiences significant peaks and troughs in energy consumption.
Gas fired energy centres help to solve these short-term peaks in
the electricity demand profile. Natural gas neatly bridges the gap
between environmentally unfriendly fossil fuels and more irregular
solar and wind power.
The UK left the EU on 31January 2020 and then entered into the
transition period. The period during which an extension could be
requested expired at the end of June, suggesting that both parties
now must agree on a trade deal by December 2020. There continues to
be a risk that both parties may not agree a deal, though this
remains uncertain. With the UK officially leaving the EU's internal
energy market at the end of the year, both the UK Government and
European Commission have stated that they are keen on maintaining a
strong co-operation on energy policy and will establish a new
energy trade deal. Given the UK focus of the Company and the
sectors the Company operates within, we do not expect that Brexit
will have a significant impact on the current operations of the
Company.
If you have any questions or comments, please do not hesitate to
contact Triple Point on 020 7201 8989.
David Frank
Chairman
16 November 2020
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 30
September
2020
-------------- ------------- ---------- --------------- ----------- --------------- --------- ------------- -------------
C Shares - - 11,342 - - - - 11,342
D Shares - - 10,036 - - - - 10,036
E Shares 97 6,282 5,812 7,872 3,348 2,717 590 26,718
Total 97 6,282 27,190 7,872 3,348 2,717 590 48,096
Total
investments
% 0.20% 13.06% 56.53% 16.37% 6.96% 5.65% 1.23% 100.00%
------------- ---------- --------------- ----------- --------------- --------- -------------
C Share Class
Hydroelectric Power 100%
D Share Class
Hydroelectric Power 100%
E Share Class
Crematorium Management 1%
Vertical Growing 24%
Quoted Investments 2%
Hydroelectric Power 22%
SME Funding - Hydroelectric
Power 13%
SME Funding - Other 10%
Electricity Generation
- Other 28%
We have the pleasure in presenting our interim review of the six
months ended 30 September 2020.
The VCT was established to fund small and medium-sized
enterprises. At 30 September 2020 it had three share classes, each
invested in their own portfolio. The overall portfolio comprised
investments in 17 small, unquoted companies and one quoted Real
Estate Investment Trust, across five sectors: crematorium
management, electricity generation, vertical growing, SME funding
and investment property.
At 30 September 2020 the Company continues to meet the condition
that at least 80% of relevant funds must be invested in VCT
qualifying investments within three years.
Review and Future Developments
In the six months that this Interim Report covers we have been
confronted with rapidly changing data related to the social,
political and increasingly financial impact of the response to the
COVID-19 pandemic. The onset of significant travel restrictions and
other social distancing measures, in the United Kingdom and across
over 80% of the world's population, in response to managing the
public health fallout from the disease, will have serious
consequences for economic and financial conditions. The health and
economic impacts of the pandemic have highlighted areas of
structural weakness in the global economy, particularly in relation
to sustainability and the vulnerability of supply chains.
One of the few beneficial effects of the reduction in activity
caused by the COVID-19 pandemic has been the short-term reduction
in carbon emissions globally and improved air quality. With a clear
and pressing need for economic stimulus to drive economic recovery,
there is broad political support in the EU and the UK to use
recovery funds as a means to drive forward the energy transition to
a future without greenhouse gas emissions.
Energy Investments - Active Asset Management
All Share Classes within the Company remain fully invested, both
the C and D Share Classes are exclusively invested across companies
in the hydroelectric power sector. The E Share Class contains
investments across the hydroelectric power sector, gas power
sector, rooftop solar, crematorium management, vertical growing,
SME funding and investment property.
Despite the ongoing pandemic and the change in electricity
demand profile, investments across the hydroelectric power, gas
power sector and rooftop solar within the C, D and E share classes
continue to generate electricity with minimal disruption.
The companies across all Share Classes in the electricity
generation sectors have been minimally affected by the COVID-19
pandemic, there have been minimal supply chain disruptions leading
to no substantial delays in the sourcing of any key components for
the hydroelectric, solar or gas fired energy projects. Triple Point
continue to liaise with our Operation and Maintenance contractors
across all companies to try and avert any potential future delays
in the procurement process.
Triple Point continue to work actively to both increase the
value of the Company's electricity generation portfolio through
operational improvements in the underlying assets and to protect
value where market conditions have deteriorated. This is best
illustrated by fixing power prices in the near term. Other areas
where hands-on asset management delivers additional shareholder
value is in relation to the negotiation of major commercial
contracts including the power purchase agreements for each
individual site and operation and maintenance agreements.
Triple Point continue to seek to reduce operating costs on a
project by project basis by, for example, successfully appealing
business rates assessments which has delivered significant savings
for investee companies.
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.
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.
E Share Class
The E Share Class has successfully deployed its funds into
various investments in a diverse range of sectors.
Hydroelectric Power
The E Share Class has investments in nine companies which own,
either directly or indirectly, hydroelectric schemes in the
Scottish Highlands.
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). These contracts allowed the companies to avoid
the volatility experienced in power markets during the earlier days
of the pandemic.
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 focused on improving
efficiencies and maximising output and are working alongside hydro
experts to further enhance performance.
During the six months to 30 September 2020, the hydroelectric
companies generated 5,773 MWh of electricity. Based on an average
of 3.8 MWh annual use per household, the hydroelectric companies
generated enough electricity to power the equivalent of 1,519 homes
during the period.
As we highlighted in our review accompanying the Annual Report
the hydroelectric companies, together with other industry members
and the British Hydropower Association, had been lobbying the
Scottish Government to recognise the concern on business rates in
the hydro sector. As a result of this, the Tretton Review report
was published in January 2020, which unfortunately found that no
changes to business rates would be applied.
This was very disappointing news for us and the Hydro
Companies.
The report suggests temporary government reliefs, which do not
apply equally across the sector and are not guaranteed, should
continue, rather than recommending an industry-preferred permanent
solution to the unfair rateable value increase in 2017 which far
outstripped that faced by other businesses.
The British Hydropower Association, along with other industry
members, continues to pursue this matter and is putting forward
different ideas to the Scottish Government.
In the six-month period to 30 September 2020, our hydro
companies have all successfully applied for and received the
applicable rates relief from the Highland Council for the financial
year 2020/21.
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
After a successful review and intervention to improve
performance of the Digima portfolio, all four portfolios are now
performing in line with or exceeding expectations. Excellent
irradiation during the period made for generation 11% above
expectations for the portfolio. Availability has mostly held stable
since restrictions caused by the COVID-19 pandemic prevented
maintenance from taking place.
Vertical Growing
The E Share Class has invested in Perfectly Fresh Cheshire
Limited ("PFC"), 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, PFC has recently expanded their growing
facilities to cater for a growing number of customers, including
two of the United Kingdom's 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.
The COVID-19 pandemic has highlighted the need for greater food
security, it is expected that this will continue to be an item high
on the government agenda. We believe that PFC is poised to
capitalise on this changing landscape while it could see an active
increase in valuations across the sector.
Gas Power
The Company has an investment in Green Peak Generation Limited
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 2020, the energy
centre generated 10,340 MWh of electricity. Based on an average of
3.8 MWh annual use per household, this was enough electricity for
2,721 homes during the period.
Outlook
The economic outlook for the UK continues to remain highly
uncertain. While some countries have begun to rebound as they have
reopened from lockdowns, investment and realisation activity
remains well below pre-COVID levels in most economies.
The speed of recovery will depend on many factors including how
the pandemic evolves, medical interventions, policy responses, and
general consumer and business sentiment. The recovery is unlikely
to be linear and, for most economies, economic activity may not
return to pre-COVID levels until 2022. While our portfolio
companies have been affected in the short term, albeit minimally,
we are of the view that there will be a negligible effect on
valuations due to the nature of the Company's investments and that
the majority of the portfolio are the beneficiaries of
inflation-linked income through FITs or Renewable Obligation
Certificates. The impact of COVID-19, and the Government's response
to it, should therefore be relatively minor on these revenue
streams and not materially impact the ongoing NAV of these
businesses.
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.
If you have any questions, please do not hesitate to call us on
020 7201 8989.
Ben Beaton
Partner
Triple Point Investment Management LLP
16 November 2020
Investment Portfolio Summary
Unaudited Audited
30 September 2020 31 March 2020
---------------------------------------- ----------------------------------------
Cost Valuation Cost Valuation
GBP'000 % GBP'000 % GBP'000 % GBP'000 %
Unquoted qualifying holdings 30,966 79.57 41,133 84.47 30,980 73.62 41,144 79.95
Quoted non-qualifying holdings 570 1.47 591 1.21 3,319 7.89 2,927 5.69
Unquoted non-qualifying
holdings 6,760 17.38 6,372 13.09 7,082 16.83 6,692 13.00
Financial assets at fair value
through profit or loss 38,296 98.42 48,096 98.77 41,381 98.34 50,763 98.64
Cash and cash equivalents 611 1.58 611 1.23 701 1.66 701 1.36
38,907 100.00 48,707 100.00 42,082 100.00 51,464 100.00
========= ======== ========= ======== ========= ======== ========= ========
Qualifying Holdings
Unquoted
Solar
Digima Limited 1,262 3.24 1,661 3.41 1,262 3.00 1,661 3.23
Digital Screen Solutions
Limited 2,020 5.19 2,586 5.31 2,020 4.80 2,586 5.02
Green Energy for Education
Limited 475 1.22 1,260 2.59 475 1.13 1,260 2.45
Hydroelectric Power
Elementary Energy Limited 2,060 5.29 2,461 5.05 2,060 4.90 2,461 4.78
Green Highland Allt Choire A
Bhalachain
(255) Limited 3,130 8.04 3,763 7.73 3,130 7.44 3,763 7.31
Green Highland Allt Ladaidh
(1148)
Limited 3,500 9.00 4,771 9.80 3,500 8.32 4,771 9.27
Green Highland Allt Luaidhe
(228)
Limited 1,995 5.13 2,425 4.98 1,995 4.74 2,425 4.71
Green Highland Allt Phocachain
(1015) Limited 3,931 10.10 4,989 10.24 3,932 9.34 4,989 9.69
Green Highland Shenval Limited 1,120 2.88 739 1.52 1,120 2.66 739 1.44
Achnacarry Hydro Ltd 4,273 10.98 7,830 16.08 4,286 10.18 7,841 15.24
Gas Power
Green Peak Generation Limited 2,200 5.65 2,366 4.86 2,200 5.23 2,366 4.60
Vertical Growing
Perfectly Fresh Cheshire
Limited 5,000 12.85 6,282 12.90 5,000 11.88 6,282 12.21
30,966 79.57 41,133 84.47 30,980 73.62 41,144 79.95
========= ======== ========= ======== ========= ======== ========= ========
Unaudited Audited
30 September 2020 31 March 2020
-------------------------------------- --------------------------------------
Cost Valuation Cost Valuation
Non-Qualifying Holdings GBP'000 % GBP'000 % GBP'000 % GBP'000 %
Quoted
Investment property
Triple Point Social Housing REIT
Plc - Equity 570 1.47 591 1.21 3,319 7.89 2,927 5.69
570 1.47 591 1.21 3,319 7.89 2,927 5.69
========= ======= ========= ======= ========= ======= ========= =======
Unquoted
Crematorium Management
Furnace Managed Services Limited 486 1.25 98 0.20 486 1.15 97 0.19
Hydroelectric Power
Elementary Energy Limited 140 0.36 140 0.29 200 0.48 199 0.39
Green Highland Allt Choire A
Bhalachain
(255) Limited 72 0.19 72 0.15 223 0.53 223 0.43
Green Highland Allt Luaidhe (228)
Limited - - - - 109 0.26 110 0.21
Green Highland Allt Phocachain
(1015) Limited - - - - - - - -
Green Highland Renewables
(Achnacarry)
Limited - - - - - - - -
SME Funding
Hydroelectric Power:
Broadpoint 2 Limited 1,334 3.43 1,334 2.74 1,335 3.17 1,334 2.59
Broadpoint 3 Limited 2,010 5.17 2,010 4.13 2,010 4.78 2,010 3.91
Other:
Aeris Power Limited 518 1.33 518 1.06 519 1.23 519 1.01
Funding Path Limited 2,200 5.65 2,200 4.52 2,200 5.23 2,200 4.27
6,760 17.38 6,372 13.09 7,082 16.83 6,692 13.00
--------- ------- --------- ------- --------- ------- --------- -------
Principal Risks and Uncertainties
The Directors seek to mitigate the Company's principal risks by
regularly reviewing performance and monitoring progress and
compliance. In the mitigation and management of these risks, the
Directors carry out a robust assessment of the Company's emerging
and principal risks, including those that would threaten its
business model, future performance, solvency or liquidity.
The main areas of risk identified by them, along with the risks
to which the Company is exposed through its operational and
investing activities, were described in detail in the Company's
last Annual Report.
VCT Qualifying Status Risk: the Company is required at all times
to observe the conditions laid down in the Income Tax Act 2007 for
the maintenance of approved VCT status. The loss of such approval
could lead to the Company losing its exemption from corporation tax
on capital gains, to investors being liable to pay income tax on
dividends received from the Company and, in certain circumstances,
to investors being required to repay the initial income tax relief
on their investment.
Mitigation: The Investment Manager keeps the Company's VCT
qualifying status under continual review and reports to the Board
on a quarterly basis. The Board has also appointed Philip Hare
& Associates LLP to undertake an independent VCT status
monitoring role.
Investment Risk : the Company's VCT qualifying investments will
be held in small and medium-sized unquoted investments which, by
their nature, entail a higher level of risk and lower liquidity
than investments in large quoted companies. This could make it
difficult to realise investments in line with the relevant
strategy.
Mitigation: The Directors and Investment Manager aim to limit
the risk attached to the portfolio as a whole by careful selection
and timely realisation of investments, by carrying out rigorous due
diligence procedures and by maintaining a spread of holdings in
terms of industry sector and geographical location. The Board
reviews the investment portfolio with the Investment Manager on a
regular basis.
Financial Risk : as a VCT the Company is exposed to market price
risk, credit risk, fair value risk, liquidity risk and interest
rate risk. As most of the Company's investments will involve a
medium to long-term commitment and will be relatively illiquid, the
Directors consider that it is inappropriate to finance the
Company's activities through borrowing, other than for short-term
liquidity.
Mitigation: The key elements of financial risk were discussed in
detail in the Company's last Annual Report.
Failure of Internal Controls Risk : the Board regularly reviews
the system of internal controls, both financial and non-financial,
operated by the Company and the Investment Manager. These include
controls designed to ensure that the Company's assets are
safeguarded and that proper accounting records are maintained.
Mitigation: The Board maintains a risk register which sets out
the risks affecting both the Company and the investee companies in
which the Company is invested. This risk register is reviewed and
updated at least annually to ensure that procedures are in place to
identify the principal risks which may affect the Company and its
portfolio companies, mitigate and minimise the impact of those
risks should they crystallise and to identify emerging risks and to
determine whether any actions are required. This enables the Board
to carry out a robust assessment of the risks facing the Group,
including those risks that would threaten its business model,
future performance, solvency or liquidity.
Liquidity Risk: In line with t he Company's initial mandate for
the C and D Share Classes the Company has entered into a short-term
loan facility of GBP2.3 million which has repayment terms of 364
days. The Company currently has GBP611k of cash. This therefore
poses a slight risk to the Company's liquidity and cash flow
prospects.
Mitigation: The Company and the lender have reviewed longer-term
cash flow forecasts and the Company is comfortable that it will
generate sufficient cash from its current investments to service
and repay the borrowing. The Company keeps an open dialogue with
the lender and will continue to update the lender on the outlook
for its loan and on the performance of the Company's investment
portfolio. The lender has indicated its willingness to extend the
facility if required. T he Company has entered into a similar
facility agreement with a different lender which includes the same
key terms, but also has a two year availability period. This
agreement was put in place to mitigate the risk of the existing
loan facility not being extended by the existing lender.
Emerging Risks
COVID-19
The impact of COVID-19 is discussed at length in both the
Chairman's Statement on pages 8 to 13 and the Investment Manager's
Review on pages 15 to 24.
Brexit
Following the United Kingdom's withdrawal from the European
Union ("EU") on 31 January 2020, the Investment Manager and the
Board continue to keep the impact of Brexit on the Company under
review. Despite the UK having now left the EU the current economic
outlook and potential impact from Brexit is relatively unknown as
the terms of the UK's exit has not been finalised with the EU. Any
potential impact of the UK's withdrawal is difficult to
quantify.
The Company's strategy of investing in small UK-based
businesses, however, means that it is unlikely to be directly
exposed to the terms of any future deals negotiated with the EU. We
are, however, going through a period of some political and 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.
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 six month
period to 30 September 2020, 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
16 November 2020
Unaudited Statement of Comprehensive Income
For the Six months ended 30 September 2020
Unaudited Audited Unaudited
Six months ended Year ended Six months ended
30 September
30 September 2020 31 March 2020 2019
------------------------------- ------------------------------- -------------------------------
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 1,285 - 1,285 2,743 - 2,743 1,563 - 1,563
Loss arising on
the
disposal of
investments
during the year - (204) (204) - (181) (181) - - -
Gain/(loss)
arising
on the
revaluation of
investments at
the year
end - 414 414 - 1,076 1,076 - (448) (448)
Investment
return 1,285 210 1,495 2,743 895 3,638 1,563 (448) 1,115
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Investment
management
fees 5 362 121 483 896 297 1,193 454 151 605
Other expenses 193 - 193 393 - 393 181 - 181
Finance costs 52 - 52 3 - 3 - - -
607 121 728 1,292 297 1,589 635 151 786
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Profit before
taxation 678 89 767 1,451 598 2,049 928 (599) 329
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Taxation 7 (73) 23 (50) (180) 57 (123) (109) 29 (80)
Profit after
taxation 605 112 717 1,271 655 1,926 819 (570) 249
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Other
comprehensive
income - - - - - - - - -
Total
comprehensive
income 605 112 717 1,271 655 1,926 819 (570) 249
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Basic and
diluted
earnings/(loss)
per share
(pence)
C Share 8 2.00p (0.17p) 1.83p 4.18p 1.11p 5.29p 3.50p (0.28p) 3.22p
D Share 8 1.21p (0.12p) 1.09p 2.61p (2.49p) 0.12p 1.44p (0.24p) 1.20p
E Share 8 0.59p 0.52p 1.11p 1.21p 2.92p 4.13p 0.52p (1.73p) (1.21p)
3.80p 0.23p 4.03p 8.00p 1.54p 9.54p 5.46p (2.25p) 3.21p
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
At 30 September 2020
Unaudited Audited Unaudited
30 September 31 March 30 September
2020 2020 2019
Note GBP'000 GBP'000 GBP'000
Non-current assets
Financial assets at fair
value through profit or
loss 48,096 50,763 53,713
-------------- ---------- ---------------
Current assets
Receivables 1,239 785 1,157
Cash and cash equivalents 9 611 701 8,151
1,850 1,486 9,308
-------------- ---------- ---------------
Total Assets 49,946 52,249 63,021
-------------- ---------- ---------------
Current liabilities
Payables and accrued expenses 448 430 20
Current taxation payable 162 112 254
Short-term debt facility 2,300 2,300 -
2,910 2,842 274
-------------- ---------- ---------------
Net Assets 47,036 49,407 62,747
============== ========== ===============
Equity attributable to
equity holders of the
parent
Share capital 560 561 561
Share redemption reserve 1 - -
Share premium 28,661 28,661 28,661
Special distributable
reserve 10,855 12,960 26,887
Capital reserve 6,956 6,845 5,619
Revenue reserve 3 380 1,019
Total equity 47,036 49,407 62,747
============== ========== ===============
Shareholder' funds
C Share 10 83.20p 84.87p 132.80p
D Share 10 58.60p 62.46p 113.54p
E Share 10 96.31p 101.69p 101.35p
T he statements were approved by the Directors and authorised
for issue on 16 November 2020 and are signed on their behalf
by:
David Frank
Chairman
16 November 2020
The accompanying notes are an integral part of this
statement.
Unaudited Statement of Changes in Shareholders' Equity
For the Six months ended 30 September 2020
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
Six months ended
30
September 2020
Opening balance 561 - 28,661 12,960 6,844 381 49,407
---------- ------------------ ---------- ---------------- ---------- ---------- ----------
Issue of new
shares - - - - - - -
Purchase of own
shares (1) 1 - - - (51) (51)
Dividends paid - - - (2,105) - (932) (3,037)
Transactions with
owners (1) 1 - (2,105) - (983) (3,088)
---------- ------------------ ---------- ---------------- ---------- ---------- ----------
Profit for the
year - - - - 112 605 717
Other
comprehensive
income - - - - - - -
Profit and total
comprehensive
income for the
year - - - - 112 605 717
---------- ------------------ ---------- ---------------- ---------- ---------- ----------
Balance at 30
September
2020 560 1 28,661 10,855 6,956 3 47,036
========== ================== ========== ================ ========== ========== ==========
Capital reserve
consists
of:
Investment holding
gains 9,793
Other realised
losses (2,837)
6,956
==========
Year ended 31
March
2020
Opening balance 561 - 28,661 26,887 6,189 1,557 63,855
---------- ------------------ ---------- ---------------- ---------- ---------- ----------
Dividends paid - - - (13,927) - (2,447) (16,374)
Transactions with
owners - - - (13,927) - (2,447) (16,374)
---------- ------------------ ---------- ---------------- ---------- ---------- ----------
Profit for the
year - - - 655 1,271 1,926
Profit and total
comprehensive
income for the
year - - - 655 1,271 1,926
---------- ------------------ ---------- ---------------- ---------- ---------- ----------
Balance at 31
March
2020 561 - 28,661 12,960 6,844 381 49,407
========== ================== ========== ================ ========== ========== ==========
Capital reserve
consists
of:
Investment holding
gains 9,379
Other realised
losses (2,535)
6,844
==========
Six 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
(Loss)/profit and
total
comprehensive
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
==========
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 GBP8,021,000. This consisted of the distributable revenue
reserve, net of the realised capital loss, plus the special
distributable reserve.
Unaudited Statement of Cash Flows
For the Six months ended 30 September 2020
Unaudited Audited Unaudited
Six months
Six months ended Year ended ended
30 September 31 March 30 September
2020 2020 2019
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit before taxation 767 2,049 700
(Gain) arising on the disposal
of investments during the period 204 181 (76)
(Gain) arising on the revaluation
of investments at the period end (414) (1,076) (65)
Cashflow generated by operations 557 1,154 559
(Increase)/decrease in receivables (452) 465 (78)
Increase in payables 18 103 278
Cash flows from operating activities 123 1,722
-------------- ------------ --------------
Tax paid - (204) (5)
Net cash flows from operating activities 123 1,518 754
-------------- ------------ --------------
Cash flow from investing activities
Purchase of financial assets at
fair value through profit or loss - - -
Proceeds of sale of financial assets
at fair value through profit or
loss 2,875 7,069 1,028
Net cash flows from investing activities 2,875 7,069 1,028
-------------- ------------ --------------
Cash flows from financing activities
Issue of new shares - - 28,950
Repayment of capital (51) - -
Dividends paid (3,037) (16,374) (4,100)
Proceeds from short-term debt - 2,300 -
Net cash flows from financing activities (3,088) (14,074) 24,850
-------------- ------------ --------------
Net (decrease)/increase in cash
and cash equivalents (90) (5,487) 26,632
============== ============ ==============
Reconciliation of net cash flow
to movements in cash and cash equivalents
Opening cash and cash equivalents 701 6,188 2,534
Net (decrease)/increase in cash
and cash equivalents (90) (5,487) 26,632
Closing cash and cash equivalents 611 701 29,166
============== ============ ==============
The accompanying notes are an integral part of this
statement.
Unaudited Non-Statutory Analysis - The C Share Fund
For the Six months ended 30 September 2020
Statement of
Comprehensive
Income
Six months ended Year ended Six months ended
30 September 2020 31 March 2020 30 September 2019
------------------------------- ------------------------------- -------------------------------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Investment income 418 - 418 988 - 988 692 - 692
Unrealised gain
on investments - - - - 218 218 - - -
Investment return 418 - 418 988 218 1,206 692 - 692
Investment
management
fees (109) (28) (137) (316) (86) (402) (164) (46) (210)
Other expenses (26) - (26) (58) - (58) (23) - (23)
Profit before
taxation 283 (28) 255 614 132 746 505 (46) 459
Taxation (12) 5 (7) (53) 17 (36) (33) 9 (24)
Profit after
taxation 271 (23) 248 561 149 710 472 (37) 435
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Profit and total
comprehensive
income
for the period 271 (23) 248 561 149 710 472 (37) 435
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Basic and diluted
earnings/(loss)
per share 2.00p (0.17p) 1.83p 4.18p 1.11p 5.29p 3.50p (0.28p) 3.22p
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Balance Sheet Six months ended Year ended Six months ended
30 September 2020 31 March 2020 30 September 2019
GBP'000 GBP'000 GBP'000
Non-current
assets
Financial assets
at fair value
through
profit or loss 11,342 11,502 17,380
--------- --------- ---------
Current assets
Receivables 202 66 160
Cash and cash
equivalents 92 193 411
294 259 571
Current
liabilities
Payables (108) (17) (11)
Corporation tax (44) (38) (89)
Short-term debt
facility (300) (300) -
--------- --------- ---------
Net assets 11,184 11,406 17,851
--------- --------- ---------
Equity
attributable
to equity
holders 11,184 11,406 17,851
--------- --------- ---------
Net asset value
per share 83.20p 84.87p 132.80p
--------- --------- ---------
Statement of
Changes
in Shareholders'
Equity Six months ended Year ended Six months ended
30 September 2020 31 March 2020 30 September 2019
GBP'000 GBP'000 GBP'000
Opening
shareholders
funds 11,406 18,088 18,088
Profit for the
period 248 710 435
Dividends paid (470) (7,392) (672)
Closing
shareholders'
funds 11,184 11,406 17,851
--------- --------- ---------
Unaudited Non-Statutory Analysis - The C Share Fund
For the Six months ended 30 September 2020
Investment Portfolio 30 September 2020 31 March 2020
---------------------------------------- ----------------------------------------
Cost Valuation Cost Valuation
GBP'000 % GBP'000 % GBP'000 % GBP'000 %
Unquoted qualifying holdings 7,409 97.83 11,270 98.56 7,417 94.69 11,279 96.44
Unquoted non-qualifying
holdings 72 0.95 72 0.63 223 2.85 223 1.91
Financial assets at fair
value through profit or loss 7,481 98.78 11,342 99.19 7,640 97.54 11,502 98.35
Cash and cash equivalents 92 1.22 92 0.81 193 2.46 193 1.65
7,573 100.00 11,434 100.00 7,833 100.00 11,695 100.00
========= ======== ========= ======== ========= ======== ========= ========
Qualifying Holdings
Unquoted
Hydro Electric Power
Green Highland Allt Choire
A Bhalachain (255) Limited 2,466 32.56 2,965 25.93 2,466 31.48 2,965 25.35
Green Highland Allt Phocachain
(1015) Limited 1,576 20.81 2,136 18.68 1,576 20.12 2,136 18.26
Achnacarry Hydro Ltd 3,367 44.46 6,169 53.95 3,375 43.09 6,178 52.83
7,409 97.83 11,270 98.56 7,417 94.69 11,279 96.44
========= ======== ========= ======== ========= ======== ========= ========
Non-Qualifying Holdings
Unquoted
Hydro Electric Power
Green Highland Allt Choire
A Bhalachain (255) Limited 72 0.95 72 0.63 223 2.85 223 1.91
72 0.95 72 0.63 223 2.85 223 1.91
========= ======== ========= ======== ========= ======== ========= ========
Unaudited Non-Statutory Analysis - The D Share Fund
For the Six months ended 30 September 2020
Statement of
Comprehensive
Income
Six months ended Year ended Six months ended
30 September 2020 31 March 2020 30 September 2019
------------------------------- ------------------------------- -------------------------------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Investment income 345 - 345 780 - 780 411 - 411
Unrealised gain
on investments - - - - (277) (277) - - -
Investment return 345 - 345 780 (277) 503 411 - 411
Investment
management
fees (119) (21) (140) (286) (79) (365) (145) (40) (185)
Other expenses (23) - (23) (52) - (52) (23) - (23)
Profit/(loss)
before
taxation 203 (21) 182 442 (356) 86 243 (40) 203
Taxation (39) 4 (35) (83) 15 (68) (46) 8 (38)
Profit after
taxation 164 (17) 147 359 (341) 18 197 (32) 165
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Profit and total
comprehensive
income
for the period 164 (17) 147 359 (341) 18 197 (32) 165
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Basic and diluted
earnings/(loss)
per share 1.21p (0.12p) 1.09p 2.61p (2.49p) 0.12p 1.44p (0.24p) 1.20p
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Balance Sheet Six months ended Year ended Six months ended
30 September 2020 31 March 2020 30 September 2019
GBP'000 GBP'000 GBP'000
Non-current
assets
Financial assets
at fair value
through
profit or loss 10,036 10,146 12,018
--------- --------- ---------
Current assets
Receivables 88 378 801
Cash and cash
equivalents 28 173 2,900
116 551 3,701
--------- --------- ---------
Current
liabilities
Payables (78) (69) (8)
Corporation tax (104) (69) (154)
Short-term debt
facility (2,000) (2,000) -
--------- --------- ---------
Net assets 7,970 8,559 15,557
--------- --------- ---------
Equity
attributable
to equity
holders 7,970 8,559 15,557
--------- --------- ---------
Net asset value
per share 58.60p 62.46p 113.54p
--------- --------- ---------
Statement of
Changes
in Six months ended Year ended Six months ended
Shareholders'
equity 30 September 2020 31 March 2020 30 September 2019
GBP'000 GBP'000 GBP'000
Opening
shareholders
funds 8,559 16,077 16,077
Purchase of own
shares (51) - -
Profit for the
period 147 18 165
Dividends paid (685) (7,536) (685)
Closing
shareholders'
funds 7,970 8,559 15,557
--------- --------- ---------
Unaudited Non-Statutory Analysis - The D Share Fund
For the Six months ended 30 September 2020
Investment Portfolio 30 September 2020 31 March 2020
---------------------------------------- ----------------------------------------
Cost Valuation Cost Valuation
GBP'000 % GBP'000 % GBP'000 % GBP'000 %
Unquoted qualifying holdings 8,247 99.66 10,036 99.73 8,248 96.69 10,036 97.25
Unquoted non-qualifying
holdings - - - - 109 1.28 110 1.07
--------- -------- --------- --------
Financial assets at fair value
through profit or loss 8,247 99.66 10,036 99.73 8,357 97.97 10,146 98.32
Cash and cash equivalents 28 0.34 28 0.27 173 2.03 173 1.68
8,275 100.00 10,064 100.00 8,530 100.00 10,319 100.00
========= ======== ========= ======== ========= ======== ========= ========
Qualifying Holdings
Unquoted
Hydro Electric Power
Elementary Energy 337 4.07 380 3.78 337 3.95 380 3.68
Green Highland Allt Ladaidh
(1148)
Limited 3,374 40.77 4,622 45.93 3,374 39.55 4,622 44.79
Green Highland Allt Luaidhe
(228)
Limited 1,918 23.18 2,341 23.26 1,918 22.49 2,341 22.69
Green Highland Allt Phocachain
(1015) Limited 1,857 22.44 2,191 21.77 1,858 21.78 2,191 21.23
Green Highland Shenval Limited 761 9.20 502 4.99 761 8.92 502 4.86
8,247 99.66 10,036 99.73 8,248 96.69 10,036 97.25
========= ======== ========= ======== ========= ======== ========= ========
Non-Qualifying Holdings
Unquoted
Hydro Electric Power
Green Highland Allt Luaidhe
(228)
Limited - - - - 109 1.28 110 1.07
- - - - 109 1.28 110 1.07
========= ======== ========= ======== ========= ======== ========= ========
Non-Statutory Analysis - The E Share Fund
For the Six months ended 30 September 2020
Statement of
Comprehensive
Income
Six months ended Year ended Six months ended
30 September 2020 31 March 2020 30 September 2019
------------------------------- ------------------------------- -------------------------------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Investment income 522 - 522 975 - 975 460 - 460
Realised gain on
investments - (204) (204) - (181) (181) - - -
Unrealised loss
on investments - 414 414 - 1,135 1,135 - (448) (448)
Investment return 522 210 732 975 954 1,929 460 (448) 12
Investment
management
fees (258) (72) (330) (485) (132) (617) (240) (65) (305)
Other expenses (72) - (72) (95) - (95) (40) - (40)
Profit/(loss)
before
taxation 192 138 330 395 822 1,217 180 (513) (333)
Taxation (22) 14 (8) (44) 25 (19) (30) 12 (18)
Profit/(loss)
after
taxation 170 152 322 351 847 1,198 150 (501) (351)
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Profit/(loss) and
total
comprehensive
income for the
period 170 152 322 351 847 1,198 150 (501) (351)
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Basic and diluted
earnings/(loss)
per share 0.59p 0.52p 1.11p 1.21p 2.92p 4.13p 0.52p (1.73p) (1.21p)
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Balance Sheet Six months ended Year ended Six months ended
30 September 2020 31 March 2020 30 September 2019
GBP'000 GBP'000 GBP'000
Non-current
assets
Financial assets
at fair value
through
profit or loss 26,718 29,115 24,315
--------- --------- ---------
Current assets
Receivables 949 341 196
Cash and cash
equivalents 491 335 4,840
1,440 676 5,036
--------- --------- ---------
Current
liabilities
Payables (262) (344) -
Corporation tax (14) (5) (11)
Net assets 27,882 29,442 29,340
--------- --------- ---------
Equity
attributable
to equity
holders 27,882 29,442 29,340
--------- --------- ---------
Net asset value
per share 96.31p 101.69p 101.35p
--------- --------- ---------
Statement of
Changes
in Shareholders'
equity Six months ended Year ended Six months ended
30 September 2020 31 March 2020 30 September 2019
GBP'000 GBP'000 GBP'000
Opening
shareholders
funds 29,442 29,691 29,691
Profit for the
period 322 1,198 (351)
Dividends paid (1,882) (1,447) -
Closing
shareholders'
funds 27,882 29,442 29,340
--------- --------- ---------
Non-Statutory Analysis - The E Share Fund
For the Six months ended 30 September 2020
Investment Portfolio 30 September 2020 31 March 2020
---------------------------------------- ----------------------------------------
Cost Valuation Cost Valuation
GBP'000 % GBP'000 % GBP'000 % GBP'000 %
Unquoted qualifying holdings 15,310 66.39 19,827 72.86 15,315 59.55 19,829 67.34
Quoted non-qualifying holdings 570 2.47 591 2.17 3,319 12.90 2,927 9.94
Unquoted non-qualifying
holdings 6,688 29.02 6,300 23.15 6,750 26.25 6,359 21.60
--------- ---------
Financial assets at fair value
through profit or loss 22,568 97.88 26,718 98.18 25,384 98.70 29,115 98.88
Cash and cash equivalents 491 2.12 491 1.82 335 1.30 335 1.12
23,059 100.00 27,209 100.00 25,719 100.00 29,450 100.00
========= ======== ========= ======== ========= ======== ========= ========
Qualifying Holdings
Unquoted
Solar
Digima Limited 1,262 5.47 1,661 6.10 1,262 4.91 1,661 5.64
Digital Screen Solutions
Limited 2,020 8.76 2,586 9.50 2,020 7.85 2,586 8.78
Green Energy for Education
Limited 475 2.06 1,260 4.63 475 1.85 1,260 4.28
Hydro Electric Power
Elementary Energy Limited 1,723 7.47 2,081 7.65 1,723 6.70 2,081 7.07
Green Highland Shenval Limited 359 1.56 237 0.87 359 1.40 237 0.80
Green Highland Allt Choire A
Bhalachain (255) Limited 664 2.88 798 2.93 664 2.58 798 2.71
Green Highland Allt Ladaidh
(1148) Limited 126 0.55 149 0.55 126 0.49 149 0.51
Green Highland Allt Luaidhe
(228) Limited 77 0.33 84 0.31 77 0.30 84 0.29
Green Highland Allt Phocachain
(1015) Limited 498 2.16 662 2.43 498 1.94 662 2.25
Achnacarry Hydro Ltd 906 3.93 1,661 6.10 911 3.54 1,663 5.65
Gas Power
Green Peak Generation Limited 2,200 9.54 2,366 8.70 2,200 8.55 2,366 8.03
Vertical Growing
Perfectly Fresh Cheshire
Limited 5,000 21.68 6,282 23.09 5,000 19.44 6,282 21.33
15,310 66.39 19,827 72.86 15,315 59.55 19,829 67.34
========= ======== ========= ======== ========= ======== ========= ========
Non-Qualifying Holdings
Quoted
Investment Property
Triple Point Social Housing
REIT Plc - Equity 570 2.47 591 2.17 3,319 12.90 2,927 9.94
570 2.47 591 2.17 3,319 12.90 2,927 9.94
========= ======== ========= ======== ========= ======== ========= ========
Unquoted
Crematorium Management
Furnace Managed Services
Limited 486 2.11 98 0.36 486 1.89 97 0.33
Hydro Electric Power
Elementary Energy Limited 140 0.61 140 0.51 200 0.78 199 0.68
SME Funding
Hydroelectric Power:
Broadpoint 2 Limited 1,334 5.79 1,334 4.90 1,335 5.19 1,334 4.53
Other:
Funding Path Limited 2,200 9.54 2,200 8.09 2,200 8.55 2,200 7.47
Aeris Power Limited 518 2.25 518 1.90 519 2.02 519 1.76
Broadpoint 3 Limited 2,010 8.72 2,010 7.39 2,010 7.82 2,010 6.83
6,688 29.02 6,300 23.15 6,750 26.25 6,359 21.60
========= ======== ========= ======== ========= ======== ========= ========
Condensed Notes to the Unaudited Interim Financial
Statements
For the six months ended 30 September 2020
1. Corporate information
The Interim Report of the Company for the six months ended 30
September 2020 was authorised for issue in accordance with a
resolution of the Directors on 16 November 2020.
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 Interim Report of the Company for the six months ended 30
September 2020 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 Annual Report. 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 2020.
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
C Shares D Shares E Shares Total
Unaudited GBP'000 GBP'000 GBP'000 GBP'000
Six months ended 30 September 2020
Loan stock interest 198 345 427 970
Dividends receivable 220 - 79 299
Other Investment Income - - 15 15
Property Income - - 1 1
418 345 522 1,285
---------- ---------- ---------- ---------
Audited
Year ended 31 March 2020
Loan stock interest 655 771 637 2,063
Dividends receivable 331 - 40 371
Interest receivable on bank balances 2 9 35 46
Other Investment Income - - 63 63
Property Income - - 200 200
988 780 975 2,743
---------- ---------- ---------- ---------
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, 7 October 2016 and an amended and
restated investment management and administration agreement dated
27 April 2020.
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%.
There have been no performance fees paid to date
An administration fee equal to 0.25% per annum of the Company's
net assets is payable quarterly in arrear.
6. Directors' remuneration
C Shares D Shares E Shares Total
Unaudited GBP'000 GBP'000 GBP'000 GBP'000
Six months ended 30 September 2020
David Frank 3 2 7 12
Simon Acland 3 2 6 11
Michael Stanes 2 2 7 11
8 6 20 34
---------- ---------- ---------- ---------
Audited
Year ended 31 March 2020
David Frank 5 5 10 20
Simon Acland 5 5 8 18
Michael Stanes 5 4 8 17
15 14 26 55
---------- ---------- ---------- ---------
The only remuneration received by the Directors was their
Directors' fees. The Company has no employees other than the
Non-Executive Directors. The number of Non-Executive Directors in
the period was three.
7. Taxation
C Shares D Shares E Shares Total
Unaudited GBP'000 GBP'000 GBP'000 GBP'000
Six months ended 30 September 2020
Profit on ordinary activities before tax 255 182 330 767
---------- ---------- ---------- ---------
Corporation tax @ 19% 48 35 63 146
Effect of:
Capital (gains) not taxable - - (40) (40)
Income received not taxable (42) - (15) (57)
Unrelieved tax losses arising in the year 1 - - 1
Prior year adjustment - - - -
Tax charge 7 35 8 50
---------- ---------- ---------- ---------
Audited
Year ended 31 March 2020
Profit on ordinary activities before tax 746 86 1,217 2,049
---------- ---------- ---------- ---------
Corporation tax @ 20% 142 15 231 388
Effect of:
Capital (gains)/losses not taxable (41) 53 (181) (169)
Income received not taxable (63) - (8) (71)
Unrelieved tax losses arising in the year (2) - - (2)
Prior year adjustment - - (23) (23)
Tax charge 36 68 19 123
---------- ---------- ---------- ---------
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.GBP246,000, 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 2020.
The earnings per share for D Shares is based on the profit after
tax of c.GBP149,000, and on the weighted average number of shares
in issue during the period of 13,668,773, which is equal to the
number of shares at 30 September 2020.
The earnings per share for E Shares is based on the loss after
tax of c.GBP323,000, 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 2020.
9. Cash and cash equivalents
Cash and cash equivalents comprise deposits with The Royal Bank
of Scotland plc.
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.GBP11,184,000 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.GBP7,970,000 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 GBP27,882,000 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 2020.
12. Relationship with Investment Manager
During the period, TPIM charged GBP481,631 (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 GBP72,000.
At 30 September 2020 GBP393,645 was 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
GBP470,450, equal to 3.5 pence per share, on 30 June 2020.
D Shares:
The Company paid a dividend to D Class Shareholders of
GBP685,082, equal to 5 pence per share, on 30 June 2020.
E Shares:
The Company paid a dividend to E Class Shareholders of
GBP1,881,722, equal to 6.5 pence per share, on 30 June 2020.
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END
IR EAAFKFDEEFFA
(END) Dow Jones Newswires
November 16, 2020 07:34 ET (12:34 GMT)
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