TIDMUAV
RNS Number : 9264I
Unicorn AIM VCT PLC
17 December 2020
Unicorn AIM VCT plc (the "Company" or the "VCT")
LEI: 21380057QDV7D34E9870
Annual Results Announcement for the year ended 30 September
2020
The full Annual Report and Accounts for the year ended 30
September 2020 can be found on the Company's website
www.unicornaimvct.co.uk
FINANCIAL HIGHLIGHTS
(for the year ended 30 September 2020)
-- Net asset value ("NAV") total return for the year ended 30
September 2020, after adding back the dividends of 6.5p paid in the
year, rose by 20.3%
-- Final dividend of 3.5 p proposed for the financial year ended 30 September 2020
-- Offer for Subscription raised GBP24.2 million (after costs)
Fund performance
Ordinary Shares Net asset Cumulative Net asset
Shareholders' value dividends value plus
Funds* per share + paid cumulative Share price
(GBP million) (NAV) per share dividends (p)
(p) (p)# paid per share
(p)#
30 September
2020 260.2 178.6 61.0 239.6 142.5
31 March 2020 167.0 128.4 58.0 186.4 116.5
30 September
2019 201.1 153.9 54.5 208.4 137.0
31 March 2019 178.3 144.4 51.5 195.9 129.0
* Shareholders funds/net assets as shown on the Statement of
Financial Position below.
+ The Board has recommended a final dividend of 3.5p per share
for the year ended 30 September 2020 bringing total dividends for
the year to 6.5 per share, unchanged from the previous year. If
approved by Shareholders, this payment will bring total dividends
paid since the merger with Unicorn AIM VCT II plc on 9 March 2010
to 64.5p.
# Since the merger of the Company with Unicorn AIM VCT II plc on
9 March 2010 and merger of all former share classes.
STRATEGIC REPORT
The purpose of this Strategic Report is to inform Shareholders
of the Company's progress on key matters and assist them in
assessing the extent to which the Directors have performed their
legal duty to promote the success of the Company in accordance with
section 172 of the Companies Act 2006.
The Investment Manager's Review also includes a comprehensive
analysis of the development of the business during the financial
year and the position of the Company's investments at the end of
the year.
Chairman's Statement
I am pleased to present the Company's Annual Report and Audited
Financial Statements for the year ended 30 September 2020.
Introduction
This is my first Annual Report since taking over the Chair
following the Annual General Meeting (AGM) in January 2020. At the
time of the AGM, the global economy was functioning in a relatively
normal fashion, albeit the emergence of a Coronavirus ("Covid-19")
was just beginning to be discussed as a possible threat to health.
Within a very short space of time however, any expectation of 2020
being considered a 'normal' year had been abandoned. As we all now
fully appreciate, the Covid-19 pandemic has had a dramatic impact
on all countries around the world. Your Board, alongside every
other business, has had to respond and adapt to the new
environment. The Company's key service providers, including the
Company Secretary and the Investment Manager, have successfully
adapted to remote working. The adoption of video-conferencing
technology has helped us to successfully conduct scheduled Board
Meetings. As a consequence of these changes, all important aspects
of the day to day running of the Company continue to function as
normal.
While a more detailed analysis of performance is contained
within the Investment Manager's Review, I am delighted to report
that the Company has enjoyed an exceptionally strong year in terms
of both absolute and relative performance as shown in the
Investment Performance Review section below.
Economic & Market Review
The year under review has been remarkable in so many respects.
The period commenced in fairly standard fashion, dominated by the
usual concerns surrounding political division and economic
uncertainty. By the time of the Company's AGM in January however,
the world had started to change dramatically. Clearly, the effects
of what rapidly developed into a worldwide pandemic have been
enormous and are now much more clearly understood. Restrictions on
social and economic activity have inevitably had a major impact on
economies, on businesses and, most important, on people around the
world. Many governments have sought to mitigate these effects by
introducing unprecedented levels of financial support to businesses
and individuals. In the UK, these measures have provided much
needed protection to some of the hardest hit sectors of the
economy.
As far as the performance of equity markets was concerned, the
initial response by investors to the pandemic was distinctly
negative, resulting in a rapid and steep decline in the value of
indices worldwide. For example, by the time your Company reached
the half way point of its financial year at 31 March 2020, the FTSE
AIM All-Share Index had fallen by 21.3% on a total return basis.
Equity markets soon began a sustained recovery however, as global
asset allocators generally began to reduce exposure to bonds and
direct property investment, while increasing their allocation to
equities. In addition, it became evident that businesses operating
in certain sectors, including technology and life sciences, were
likely to benefit from the pandemic, which, helped to further fuel
the rally in global equity markets.
By the end of the financial year, the FTSE AIM All-Share Index
had recovered all of the losses incurred during the main sell-off
in March.
The upturn in equity markets was driven by a number of key
sectors, to which the Company is fortunate to have good exposure,
most notably: financial services, healthcare, life-sciences,
technology and computer gaming businesses. On the other hand, those
businesses dependent on consumer spending, especially those in the
retail, hospitality and leisure sectors, suffered great hardship,
mainly because their ability to generate revenues was severely
curtailed as a consequence of the imposition of national lockdown
measures. It is therefore of some small comfort that the Company
has limited exposure to the most vulnerable sectors of the economy.
Inevitably however, the investments made in businesses that operate
in these areas have performed poorly.
Economic and market prospects over the course of the next few
months are likely to remain highly unpredictable given the obvious
risks, which include: the economic fallout from the re-introduction
of lockdown restrictions, the consequences of the outcome from the
BREXIT negotiations, and the potential consequences for UK/US trade
following the recent presidential election in North America.
Investment Performance Review
Despite the social and economic disruption, the investment
portfolio during the year ended 30 September 2020 has performed
well. In absolute terms, Net Asset Value per share rose from 153.9
pence to 178.6 pence during the course of the financial year. After
adding back the 6.5 pence per share of dividends paid during the
year, this represents a positive total return of 20.3%. In relative
terms, the total return of the Company out-performed that of the
FTSE AIM All-Share Index by 9.3% and significantly outshone the
negative total return of 18.1% generated by the FTSE 100 Index over
the same period.
Given that the year under review was an extremely challenging
one for all businesses, it is unsurprising that the NAV of the
Company was more than usually volatile. Over the course of the
financial year, NAV per share fluctuated significantly. Having
started the financial year at 153.9 pence per share, NAV rose
steadily to 173.6 pence per share on 31 December 2019. By 31 March
2020, the NAV had fallen to 128.4 pence. In the following six
months, the Company's NAV recovered strongly to end the financial
year at an all-time high of 178.6 pence per share.
Although, the financial year under review has been incredibly
challenging, such difficult periods underline the benefits of a
long-term approach to investment. This is especially true when
applied to investment in venture capital funds. Over the nineteen
years since launch, the Investment Manager has constructed a
diverse portfolio of investments in businesses operating across a
variety of sectors and at different stages of development. Many of
these investee companies are relatively mature and have developed
to the extent that they have become substantial in size. The core
portfolio of VCT qualifying investments is made up of meaningful
stakes held in relatively mature businesses that, in normal
circumstances, would be expected to be profitable, cash generative,
dividend paying and debt free. Despite the headwinds encountered
during 2020, most of these businesses are therefore well-positioned
to survive the tough times currently being experienced and, in
time, ought to return to strong growth.
The level of dividend income received from investee companies
has sadly, but inevitably, declined. During the year under review,
dividends were paid, or proposed, by 37.9% of the companies held in
the portfolio and total dividend income received amounted to GBP1.4
million. This figure represents a decline of 41.7% or GBP1.0
million when compared to the dividend income received in the
previous financial year. In view of the changes to VCT legislation
made in recent years, it is also no longer realistic to expect
businesses, in which the Investment Manager now invests, to be
mature enough initially to pay dividends; nor should they be
expected to for a number of years.
In terms of liquidity and stock specific risk, the portfolio
continues to be prudently managed. All of the investee companies in
the top fifteen by value have a market capitalisation in excess of
GBP65 million, while the largest is capitalised at more than GBP2
billion. The largest single holding accounts for around 11.6% of
total net assets, while only 2 of the top fifteen investments are
in unquoted companies and therefore categorised as being
illiquid.
At the financial year end, the investment portfolio consisted of
74 active VCT qualifying companies and 20 non-qualifying
companies.
Unquoted Investments
As you may have noted, the strong increase in NAV during the
year was helped by the outstanding performance of two of our
unquoted holdings, Interactive Investor and Hasgrove. As an AIM VCT
we are conscious that this has increased our unquoted holdings to
over 20% of NAV. Valuation of unquoted securities is initially
proposed by the Investment Manager and is subject to review and
final approval by the Board. It is inevitably more subjective than
when there is a market quote to refer to and because the valuation
exercise involves a great deal of work by all concerned it is only
carried out at the end of each quarter as is the case with other
VCTs. While we continue to announce an updated valuation each month
end based on closing quoted market prices the full portfolio
valuations at the quarter ends are disproportionally impacted by
the changes in the unquoted valuations. Our policy is only to
adjust the valuation of an unquoted holding at an intervening month
end if it has been the subject of an announcement of a significant
event or corporate action since the previous quarter end. We are of
course delighted with the progress made by Interactive Investor and
Hasgrove and hope that at some point the management teams at both
may consider a flotation on the AIM market but in the meantime the
Board feels it is important that all Shareholders understand how
valuation of these two holdings and other unquoted investments are
dealt with. The valuation process is described on page 41 of the
Annual Report.
Net Assets
As at 30 September 2020, the audited net assets of the Company
were GBP260.2 million, as compared to GBP201.1 million at the start
of October 2019. Total net assets rose substantially in the year,
partly due to the support received from new and existing
Shareholders in the Offer for Subscription which raised GBP24.2
million, and partly because of strong share price performance
delivered by a number of companies held within the portfolio.
Portfolio Activity
During the period, 3 new VCT qualifying investments were made,
at a total cost of GBP4.2 million. In addition, GBP2.7 million of
VCT qualifying capital was allocated across 8 of the existing
investee companies, in order to support their further planned
growth.
A number of full and partial disposals were made during the
course of the financial year. Total proceeds from disposals of
qualifying investments amounted to GBP4.7 million, realising an
overall capital loss of GBP1.2 million. The Investment Manager also
made a number of full and partial disposals of non-qualifying
investments during the year. The total amount realised from these
transactions was GBP6.1 million and the overall capital gain
realised amounted in aggregate to GBP0.1 million.
The portfolio generated unrealised gains of GBP50.5 million in
the year under review.
A more detailed analysis of investment activity and performance
can be found in the Investment Manager's Review below.
Dividends
An interim dividend of 3.0 pence per share, for the half year
ended 31 March 2020, was paid to Shareholders on 12 August
2020.
The Board is recommending a final dividend for the financial
year ended 30 September 2020 of 3.5 pence per share (income: 0.0
pence; capital: 3.5 pence), payable on 11 February 2021 to
Shareholders on the register as at 8 January 2021.
Subject to receiving Shareholders' approval for payment of the
proposed final dividend, total dividends in respect of the
financial year ended 30 September 2020, will be 6.5 pence per
share. This represents a tax free yield to eligible UK Shareholders
of 3.6% based on the year-end Net Asset Value of 178.6 pence per
share and 4.6% based on a share price of 142.5 pence per share as
at 30 September 2020.
Share Buybacks & Share Issues
The Board continues to believe that it is in the best interests
of the Company and its Shareholders to make market purchases of its
shares from time to time. During the period from 1 October 2019 to
30 September 2020, the Company bought back 3,072,006 of its own
Ordinary Shares for cancellation, at an average price of 135.0
pence per share including costs.
Future repurchases of shares will continue to be made, if deemed
appropriate, in accordance with guidelines established by the Board
and will be subject to the Company having the appropriate
authorities from Shareholders and sufficient funds available for
this purpose. Share buybacks will also continue to be subject to
the Listing Rules and any applicable law at the relevant time.
Shares bought back in the market are cancelled.
The Offer for Subscription mentioned above was launched and
closed, fully subscribed, on 11 June 2020. The total raised, net of
all costs, was GBP24.2 million and resulted in the issue of
17,832,898 new shares. On behalf of the Board, I would like to
welcome all new Shareholders and to thank existing Shareholders for
their continued support. As at 30 September 2020, there were
145,732,541 Ordinary Shares in issue.
Costs
The Board reviews the costs incurred by the Company on a regular
basis and we remain focused on maintaining a competitively low
ongoing charges ratio. During the year, total costs amounted to
2.2% of net assets, as calculated in accordance with the AIC's
"Ongoing Charges" methodology. As at 30 September 2020, the Company
was ranked in the lowest quartile for total ongoing charges by all
VCTs.
VCT Status
No major changes to VCT legislation were announced during the
year under review.
The most recent rule changes came into effect in the 2019/2020
tax year and were designed to ensure that capital is directed at
young, developing businesses, which might otherwise find it
difficult to secure funding to finance their plans for growth. One
of the key tests, from accounting periods commencing after 6 April
2019, is the requirement for at least 80% (previously 70%) of net
assets to be invested in qualifying companies. I am pleased to
report that, excluding new capital raised in Offers for
Subscription within the last three years, the Company's qualifying
percentage at 30 September 2020 was 87.86% of assets by VCT value.
All other HM Revenue & Customs tests have also been complied
with and the Board has been advised by its VCT status adviser, PwC,
that the Company continues to maintain its status. It will, of
course, remain a key priority of the Board to ensure that the
Company retains this status.
Annual General Meeting
The Board has been considering the potential impact of the
Covid-19 pandemic on the arrangements for the Company's forthcoming
AGM. Given current restrictions and the considerable uncertainty
surrounding the future evolution of the pandemic, the Board has
concluded that, in the interests of safety, the AGM will not follow
the format of previous years. Instead, the AGM will be held on 4
February 2021, behind closed doors, without Shareholders being able
to attend in person or online.
The Board will organise a Zoom presentation by the Investment
Manager at 12 noon on 4 February 2021 and Shareholders are invited
to view the presentation and submit questions to the Directors via
email.
Further details of how Shareholders can vote, ask questions, and
listen to this presentation are set out on page 32 of the Annual
Report.
Outlook
The latest NAV at 30 November 2020 was 187.3 pence per
share.
While preserving life and maintaining health will remain the UK
Government's top priority, it is also attempting to: i) negotiate
an acceptable trade deal with the European Union; and ii) manage
the economy at a moment of extreme pressure and somehow provide
sufficient fiscal and monetary support to keep households and
businesses afloat.
It is therefore impossible to predict accurately the outcome of
the current crisis, other than that political and economic concerns
will continue to be overshadowed by the overwhelming imperative to
bring the Covid-19 pandemic under control. The uncertainty
surrounding when and how this will be achieved may well continue to
unsettle equity markets and it is therefore probable that the
Company's NAV performance will remain volatile.
As at the year end, the Company continued to hold substantial
cash balances, which will enable the Investment Manager to continue
providing financial support to the best VCT qualifying
opportunities. It is particularly heartening to know that the
Investment Manager has previously backed several businesses that
are now actively engaged in the battle against Covid-19. As a
consequence of all these factors, there is good reason to be
optimistic that your Company will continue to thrive over the
longer term.
Offer for Subscription for shares
The Company announced on 7 December 2020 that it intended to
launch an Offer for Subscription to raise up to GBP15 million,
through the issue of new ordinary shares. The prospectus, which
will contain the full details and terms and conditions of the
Offer, is expected to be available in January 2021.
Finally, I would like to wish you all continued good health
during these difficult times.
Tim Woodcock
Chairman
16 December 2020
Investment Manager's Review
Introduction
The year under review will be remembered for the emergence of
Covid-19. In view of the global crisis that has continued to unfold
over the course of 2020, together, with the considerable attendant
uncertainties that it has created, we are pleased with the positive
performance generated during the year.
Performance Review
The year under review has been difficult for equity markets
around the world, as the full implications of the pandemic started
to become clear. Investor sentiment deteriorated markedly from the
beginning of March 2020 as markets reacted to the inevitability of
major economic disruption. During periods of heightened volatility,
it is normal to see levels of risk aversion increase. In March
2020, most global equity markets went into freefall, as investors
panicked about the emerging pandemic and its potentially
devastating impact on the valuation of quoted companies around the
world. In the UK, all FTSE Indices fell heavily. The Company's
portfolio of quoted investments did not escape the carnage and, by
the end of March, NAV had fallen by 16.6%. In the following six
months to 30 September 2020, equity markets stabilised and the
value of the portfolio recovered even more strongly, with NAV per
share increasing by 39.1% from this reduced value.
The investment environment has been extremely challenging for
well-understood and thoroughly discussed reasons. It is therefore
heartening that the Company was able to end the financial year so
strongly. In the face of such extreme challenges, the portfolio
demonstrated remarkable resilience. Although a number of our
investee companies inevitably suffered badly as the virus spread
and the incidence of profit warnings increased, the negative impact
of these setbacks was more than offset by strong performances from
a meaningful proportion of the AIM-listed holdings in the
portfolio. In addition, significant uplifts to the carrying values
of two unquoted investee companies were made: Hasgrove and
Interactive Investor, reflecting their strong and continued
growth.
During the financial year, we invested in one AIM Initial Public
Offering and in two businesses already listed on AIM, that had not
previously been in the portfolio. In addition, 8 VCT-qualifying
follow-on investments were made. Encouragingly, the share price
performance of these new investments has been good, with all but
three making a positive contribution to performance.
The investment portfolio remains diversified both by number of
holdings and by sector exposure. At the financial year end, the
Company held investments in 74 active VCT qualifying companies and
20 non-qualifying investments. These investments are spread across
27 different sectors.
Major Contributors to Performance
(bracketed figures represent the movement in value of the
holding for the year under review or, if invested in the current
year, since the date of investment)
Interactive Investor (+GBP15.9 million) is an online investment
platform, which provides retail investors with independent
financial information, together with trading and portfolio
management services for managing their investments. Interactive
Investor has delivered strong growth in customer numbers, revenues
and profits over the past 12 months, benefiting in part from
significant economies of scale achieved from its acquisition of
Alliance Trust Savings in June 2019 and The Share Centre in July
2020. Strong trading continued throughout the first half of
Interactive's financial year, as volatile market conditions led to
a sharp increase in daily average trading volumes. During this
period, revenues increased by 62% to GBP63 million, while
underlying pre-tax profit grew 295% to GBP26.2 million, reflecting
high levels of operational leverage across the platform. Active
customer numbers also grew strongly, increasing by 154% to over
340,000, while assets under administration are now in excess of
GBP31 billion, making it the second largest online investment
platform in the UK. As a consequence of this rapid growth, the Fair
Value of the Company's holding in Interactive Investor, was
increased to GBP382.06 per share, representing an increase of
+111.1% on the reported Fair Value as at your Company's previous
financial year end. To put this uplift in value in context, the
Board of Interactive Investor issued new shares in July 2020 in
part consideration for the acquisition of The Share Centre, which
valued the acquiror at GBP675 million or GBP441.62 per share. The
discount applied reflects the fact that Unicorn AIM VCT is a
minority shareholder in a privately owned business, controlled by
the private equity firm J C Flowers, and the illiquid nature of the
investment. We are delighted with the progress made by Interactive
Investor in the past twelve months and hope to be in a position to
report on further positive developments during the current
financial year.
Hasgrove (+GBP9.4 million) is a holding company, with a wholly
owned subsidiary called Interact. Interact is a fast growing global
provider of corporate intranet solutions that operates a Software
as a Service (SaaS) business model. Interact's intranet service
offers customers the benefits of a highly secure communication
platform, which can improve efficiency and productivity and
provides substantially better employee engagement. Interact
continues to grow rapidly by winning ever larger contracts,
especially in its core market in North America. The company
reported strong trading in its most recent financial year and this
momentum has continued into the current financial year. Interact
benefits from high levels of recurring revenues, which results in a
high degree of visibility over revenues and profits. The rate of
growth in recurring revenues puts Interact in a strong position to
deliver double-digit growth in sales and profits in its current
financial year. The business is cash generative and has no debt.
The board of Hasgrove recently decided to return a proportion of
the company's surplus cash to shareholders via a Tender Offer,
which was announced in September 2020. As a result, we elected to
tender a percentage of the Company's holding in Hasgrove. Following
significant oversubscription, the tender was scaled back. The
transaction completed subsequent to your Company's financial year
end at a price of GBP18 per share. The partial sale of the
Company's stake in Hasgrove generated proceeds of GBP358,326 and
realised a capital profit of GBP342,432. In recognition of this
recent transaction, the carrying Fair Value of the Company's
holding in Hasgrove was marked up to GBP14.40 per share,
representing an increase of +64.4% on the reported Fair Value as at
the Company's prior financial year end. The difference between the
Tender Offer price and the Fair Value represents a discount of 20%,
which is designed to take into account the continuing illiquidity
of the remaining stake held.
Avacta (+GBP7.4 million) develops innovative cancer therapies
and diagnostics, based on its proprietary Affimer(R) and
pre|CISION(TM) platforms. Avacta also provides reagents, for
research and diagnostics purposes, to other Biotech and Life
Sciences businesses. Avacta made significant progress during the
six month period ended 30 June 2020, largely driven by its
diagnostics division, which has been at the forefront of developing
diagnostic testing kits related to the Covid-19 virus. Avacta has
successfully developed tests, via collaborative agreements with
several life sciences companies, which are designed to
commercialise its Affimer reagents for use in high throughput
antigen tests for mass population screening. In addition,
preliminary findings by the Centre for Virus Research at the
University of Glasgow showed that certain Affimer reagents could
act as a potential therapy to combat Covid-19 in humans by binding
to the virus spike protein and thereby preventing the spread of
infection. Avacta's therapeutics division also made notable
progress, by establishing and announcing a joint venture with a
leading South Korean pharmaceutical company to develop stem cell
treatments for patients who are seriously ill with Covid-19. In
June 2020, Avacta successfully raised an additional GBP48 million,
through an equity funding round, in order to accelerate investment
in, and development of, its diagnostics and therapeutics
programmes, together with its Covid-19 antigen testing
programme.
MaxCyte (+GBP7.5 million) is a clinical-stage cell-based
therapies and life sciences business that has developed a leading,
patented cell-engineering platform. Over the past year, MaxCyte has
gained significant commercial momentum in its cell therapies
business and now counts amongst its customer base the world's ten
largest global pharmaceutical companies. In the past twelve months,
the business has also agreed three new commercial licences with
leading cell therapy partners, which should drive significant
growth in its pipeline opportunities over the next three years.
These licences together with the company's existing commercial
agreements are expected to deliver a series of substantial
milestone payments as programmes progress through the clinical and
commercialisation stages of their development. Existing group
revenues grew by 30.1% to $10.9 million in the company's first
half-year period, driven by recurring annual fees as well as
up-front instrument sales. MaxCyte has a wholly-owned subsidiary
CARMA Cell Therapies which has developed a novel mRNA-based cell
therapy platform to treat solid tumours. Having successfully
established the CARMA platform, management intend to establish
CARMA as a stand-alone and independently financed company, in order
to prioritise growth in MaxCyte's core cell-engineering.
Tristel (+GBP3.1 million) is a manufacturer of infection
prevention, contamination control and hygiene products. Tristel has
been a direct beneficiary of the extraordinary circumstances
resulting from the Covid-19 pandemic. Sales of its hospital surface
disinfectant products increased sharply during its financial year
to the end of June 2020, although growth was held back by
disruption in sales of medical device decontamination products as
hospitals deferred non-critical surgical procedures. In the
financial year ended 30 June 2020, Tristel reported an increase in
sales of 21% to GBP31.7 million, while underlying pre-tax profit
grew by 27% to GBP7.1 million. Strong growth was driven by the
expansion of international operations, which now account for around
60% of total group revenues. Notwithstanding the possibility of
further disruption to hospital procedures from a prolonged
resurgence of Covid-19 cases during the critical winter months,
Tristel remains well positioned to deliver further growth in its
current financial year.
Detractors (bracketed figures represent the movement in value
for the year under review, or since the date of investment)
City Pub Group (-GBP4.2 million) owns and operates an estate of
premium quality pubs across the southern parts of England and
Wales. Clearly, the market backdrop during the year under review
has been extremely challenging for all hospitality businesses, as
the sector bore the brunt of the UK Government's lockdown measures.
City Pub Group has recently been forced into a full shutdown of all
its pubs and hotels for the second time and this has prevented the
Group from generating revenues. In order to mitigate the financial
damage, the management team of City Pub Group was quick to
strengthen the company's balance sheet by raising GBP22 million
through an equity placing and open offer, which immediately reduced
its debt burden by approximately two thirds. In addition, swift
action was taken to manage costs by using a combination of
available Government support mechanisms and through internally
generated savings. Despite such difficult market conditions, the
decisive actions taken, combined with the asset backing provided by
its estate of predominantly freehold properties, ought to ensure
that City Pub Group can survive the current crisis.
Bonhill Group (GBP-1.8 million) is a media company providing
business information, live events and data & insight
propositions to its customers. The global pandemic has clearly had
a significantly negative impact on the Group's financial
performance during the year under review, with revenues falling by
28% in the six month period to the end of June. This decline in
sales was predominantly a result of the forced cancellation of all
live events. The outlook for a recovery in revenues from Bonhill's
events division remains bleak, but this is being partially offset
by a growing level of subscription revenues from the Group's media
brands. As at 30 June 2020, the Group reported a net cash position
of GBP3.4 million, which was better than expected due to a
significant reduction in costs and the suspension of dividends.
Hardide (-GBP1.6 million) is a provider of advanced tungsten
carbide coatings that significantly increase the life of metal
components. Hardide's patented technology is particularly
applicable for prolonging the useful life of machinery that
operates in abrasive, erosive, corrosive and chemically aggressive
environments. In its interim results for the period ended 31 March
2020, Hardide reported 29% growth in revenues to a record GBP3
million. Unfortunately, as Covid-19 spread across the world, demand
for Hardide's highly specialised coatings suffered a rapid and
significant decline and caused delays to the delivery of existing
orders. Hardide's management team has taken decisive action to
preserve cash and reduce costs, which has enabled the business to
remain financially strong. In a trading update released on 23
September, the company reported that cash at bank was expected to
be GBP2.7 million as at the end of September 2020.
Immotion Group (-GBP1.1 million) is an entertainment business
focused on creating virtual reality content. Immotion's products
are typically sold to leisure operators such as: aquariums, theme
parks and retail centres. Needless to say, the leisure sector has
faced particularly difficult trading conditions as many operators
have been forced to close their doors to the public for extended
periods. As a consequence, Immotion's ability to generate
meaningful revenues has been curtailed. In a recently released
Interim Results statement, Immotion reported that it had cash on
hand of GBP1.2 million as at 25 September 2020.
Escape Hunt (-GBP0.9 million) is a provider of live 'escape the
room' experiences. The emergence and rapid spread of Covid-19 has
caused the forced closure of all of Escape Hunt's venues around the
world. Although some sites have been allowed to re-open, most
remain closed for the foreseeable future. The management team has
taken action to reduce costs and preserve cash, enabling the
company to report a cash balance of GBP4.3 million as at the end of
August 2020 and providing some confidence that the business will
survive the current crisis.
Fully Listed and Other Investments
(bracketed figures represent the total return for the year under
review)
The non-qualifying investments held by the Company, are
typically in larger, more liquid quoted companies that are listed
on the FTSE 350 Index. Non-qualifying investments are normally held
in the portfolio in lieu of cash, in order to generate additional
dividend income for future distribution to Shareholders, while
awaiting suitable VCT qualifying investment opportunities. In the
main, these investments performed poorly as the full effects of the
pandemic unfolded. The largest detractors from performance were:
HSBC (-GBP0.7 million), Babcock International (-GBP1.0 million) and
Lloyds Banking Group (-GBP1.2 million).
Investment Activity
In terms of new investment activity, the number and quality of
available VCT qualifying investment opportunities increased
steadily during the course of the year. At the financial year end,
the investment pipeline was particularly strong and the expectation
is that significant levels of capital will continue to be deployed
across a number of new, AIM-listed, VCT qualifying companies in the
coming months. At the same time, the rate of follow-on investment
opportunities remains healthy. The Company's requirement and
ability to maintain its VCT Status at all times is a top priority.
The Company is comfortably on target to meet one of the key rules
imposed, whereby 30% of new capital raised in a single tax year
must be invested in VCT qualifying companies within 12 months of
the end of the financial year in which the money was raised. This
target has also been comfortably exceeded in all previous
fundraisings to which this rule applies.
During the period under review, three new VCT qualifying
investments were made in Feedback Medical, Ilika and The British
Honey Company, at a total cost of GBP4.2 million.
Feedback Medical is a specialist technology company providing
innovative software and systems to benefit those working in the
field of medical imaging. Feedback's products assist the work of
radiologists, clinicians and medical researchers by improving
workflows and giving unique insights into diseases, such as cancer.
Feedback's core product, Bleepa, is a revolutionary medical imaging
communications app. Following a potentially transformative year
during which a substantial equity funding round was successfully
completed, including a GBP2 million investment from your Company,
Feedback is well placed to generate strong revenue streams and
further enhance the Bleepa service.
Ilika is a pioneer in solid state battery technology, enabling
solutions for many different customers that require, safe,
portable, flexible, fast charging, high energy battery solutions.
Ilika's solid state battery technology, in both miniaturised and
large scale formats is designed to power wireless sensors across a
wide range of applications, from hostile industrial environments to
medical implants.
The British Honey Company is a UK based producer of spirits,
honey and jams. The business initially focused on honey production
and, later, expanded into honey infused spirits. The British Honey
Company now produces 13 honey products and 16 spirits including
gin, vodka, rum and whiskey, many of which have won awards in the
UK and abroad. The company's facilities provide it with a scalable
platform from which their directors plan to expand operations
through organic growth and acquisition both in the UK and overseas.
The company has invested significantly in its infrastructure which
includes a fully operational distillery and a bottling facility
capable of processing the equivalent of approximately 1.5 million
bottles a year.
Each of these businesses appears capable of generating
significant growth in future years, although it is important to
emphasise that they are all at relatively early stages in their
development. It is also relevant to note that the current crisis
may be adversely affecting their development plans.
Follow-on investments were made in a number of existing
investments, which remained eligible for further State Aided
funding. A total of GBP2.7 million of new capital was allocated to
these investee companies in order to help finance their expansion
plans.
In aggregate, almost GBP10.8 million was raised from the full
and partial disposal of a number of holdings during the year. As a
reminder, the normal purpose of such disposals is threefold: to
ensure stock specific risk is contained; to lock in capital profits
for future distribution to Shareholders via dividend payments; and
to help manage liquidity requirements.
Realisations
Four AIM-listed companies were taken over during the year,
following receipt of recommended offers. The net proceeds from
these realisations amounted to GBP4.4 million, realising an
aggregate capital loss on investment cost of GBP1.3 million. A
number of other partial disposals in qualifying holdings together
with full and partial disposals in non-qualifying investments were
also made. These transactions generated total proceeds of GBP6.4
million and an aggregate capital profit of GBP0.2 million. The
total value of all disposals made during the year therefore
amounted to GBP10.8 million. Including partial disposals, the total
realised capital loss over the lifetime of the holding from the
sale of investments amounted to GBP1.1 million.
Prospects
In the context of the difficulties experienced during the year,
the Company's positive NAV performance was pleasing. In overall
terms, the new financial year has also started satisfactorily for
the Company's diverse portfolio of investments.
It is possible that prospects for the wider economy may start to
improve once rapid and accurate Covid-19 testing kits and, more
important, effective vaccines are made available to the UK
population. The timing related to reaching these milestones remains
unpredictable however, despite it becoming increasingly clear that
progress is being achieved.
In the meantime, an extended period of economic contraction and
a significant increase in unemployment appear certain. In addition,
the financial burden of the UK Government's response to the
pandemic will surely be felt for many years to come. As a result,
investor sentiment toward UK equities may remain weak for some
time. This heightened level of caution and negativity may well be
maintained if an acceptable trade agreement following Britain's
exit from the European Union cannot be reached.
The outlook for the remainder of the current financial year
therefore remains uncertain. As a result, we are focused on
monitoring the health of the Company's portfolio, while also
seeking to identify and support emerging businesses through the
provision of much needed capital. We look forward to the moment
when it becomes clear that Covid-19 has been successfully brought
under control. In the meantime, we would like to thank all
Shareholders for their continued support and wish you and your
families continued good health.
Chris Hutchinson
Unicorn Asset Management Limited
16 December 2020
Financial and Performance Review
Net Assets
As at 30 September 2020, the audited net assets of the Company
were GBP260.2 million, as compared to GBP201.1 million on 1 October
2019. The growth in total net assets was due to the support
received from new and existing Shareholders under the Offer for
Subscription, which raised GBP24.2 million net of costs, and the
strong performance from the investment portfolio.
Performance during the year
As at 30 September 2020, the audited NAV of the Company was
178.6 pence per share, having risen by 24.7 pence from 153.9 pence
per share at the start of the financial year under review, compared
with a decline of 17.9 pence per share in the year ended 30
September 2019. After adding back dividends of 6.5 pence per share
paid in the year, the total return to Shareholders increased by
31.2 pence or 20.3% compared with an decline of 11.4 pence or 6.6%
in the previous year. In comparison, the total return from the FTSE
AIM All-Share Total Return Index was 11.0% over the year to 30
September 2020.
At the financial year end, there were 74 active VCT qualifying
and 20 non-qualifying companies held in the portfolio. These
investments are spread across 27 different sectors.
In the year to 30 September 2020, a total of GBP10.8 million was
realised through the sale of investments, approximately GBP6.9
million was deployed in new investments and approximately GBP9.0
million was paid out as dividends to Shareholders. A further GBP4.9
million was spent on the operating costs of the Company and GBP4.1
million on share buybacks.
Share Issues and Buybacks
The Company raised GBP24.2 million (after costs) through the
Offer for Subscription and issued 17,832,898 shares, details of
which are given in note 13 on page 62 of the Annual Report.
In addition, the Company allotted 311,578 shares under the
Dividend Reinvestment Scheme ("DRIS") at an average price of 163.6
pence per share.
Throughout the year a total of 3,072,006 (2019: 3,273,771)
shares were bought back for cancellation for a total cost of GBP4.1
million (2019: GBP4.4 million).
Total Return
The Company generates returns from both capital growth and
dividend income. For the year ended 30 September 2020, the total
return was GBP47.5 million (2019: GBP12.2 million loss), of which
there was a GBP47.7 million gain (2019: GBP13.2 milli0on loss) from
capital and a GBP0.2 million loss (2019: GBP1.0 million gain) from
revenue. Full details of the total return can be found in the
Income Statement below. The Company's allocation of expenses is
described in Note 1 (f) on page 55 of the Annual Report.
The total net earnings per share were 34.6p (2019: loss 9.8p).
The total net return per share was made up of 34.7p from capital
and a loss of 0.1p from revenue.
Revenue Return
The income of GBP1.6 million (2019: GBP2.7 million) represents
dividend income derived from the Company's investments, interest on
loan stocks and interest on cash balances. The decrease in
investment income of 40.6% for the year was mainly due to investee
companies reducing their dividend distributions as a result of the
Covid-19 pandemic.
Capital Return
At the year end the investment portfolio was valued at GBP239.6
million (2019: GBP192.6 million). The investment portfolio
delivered a realised return on disposals of GBP0.3 million (2019:
GBP0.7 million) and unrealised valuation gains on investment of
GBP50.5 million (2019: GBP11.1 million losses). The valuation basis
of the Company's investments is described in Note 1 (c) on page 54
of the Annual Report.
Ongoing Charges and Running Costs
The Ongoing Charges of the Company for the financial year under
review represented 2.2% (2019: 2.3%) of average net assets, which
remains below the agreed cap of 2.75%.
The total expenses amounted to GBP4.9 million (2019: GBP4.4
million) and include investment management fees of GBP4.2 million
(2019: GBP3.7 million), administrative service fees of GBP0.2
million (2019: GBP0.2 million) and other third-party service
providers fees of GBP0.2 million (2019: GBP0.2 million).
Under the revised management agreement effective from 1 October
2018 and as shown in note 3, the Investment Manager receives a
management fee of 2% per annum of net assets up to GBP200 million
and 1.5% per annum of net assets in excess of GBP200 million (other
than on investments in OEICs managed by the Investment Manager).
Other expenses are shown in note 4 on page 57 of the Annual
Report.
Further information in respect of the Company's performance can
be found in the Financial Highlights above.
Cash and Cash Equivalents
During the year the Company has increased its cash balances
through the Offer for Subscription and the sale of investments.
These were partially offset by the purchase of investments and the
payment of running costs, share buybacks and dividends. The cash
balance at the year end was GBP21.4 million (2019: GBP9.4
million).
Key Performance Indicators
The Board uses the key indicators below to measure the
Investment Manager's performance, thereby helping Shareholders to
assess how the Company is performing against its objective. A
number of these ae classified as Alternative Performance Measures
(APM's) in line with Financial Reporting Council guidelines.
- NAV per share, cumulative dividends paid and cumulative total Shareholder return
- Earnings per share
- Annual and cumulative total return
- 5 year NAV and share price comparison
- Running costs
Further details can be found on pages 19 and 20 of the Annual
Report.
The Company and its Business Model
The Company is registered in England and Wales as a Public
Limited Company (registration number 04266437) and is approved as a
Venture Capital Trust ("VCT") under section 274 of the Income Tax
Act 2007 (the "ITA"). In common with many other VCTs, the Company
revoked its status as an investment company as defined in section
266 of the Companies Act 1985 on 17 August 2004, to make it
possible to pay dividends from capital. A summary of the VCT
regulations is shown on page 73 of the Annual Report.
The Company's shares are listed on the London Stock Exchange
main market under the code UAV and ISIN GB00B1RTFN43.
The Company is an externally managed fund with a Board currently
comprising four non-executive Directors. Investment management and
operational support are outsourced to external service providers,
with the strategic and operational framework and key policies set
and monitored by the Board as described in the diagram on page 21
of the Annual Report. Further information on the service providers
is outlined in the Corporate Governance Statement on pages 38 and
39 of the Annual Report.
The Board has overall responsibility for the Company's affairs
including the determination of its investment policy. Risk is
spread by investing in a number of different businesses across
different industry sectors. The Investment Manager is responsible
for managing sector and stock specific risk and the Board does not
impose formal limits in respect of such exposures. However, in
order to maintain compliance with HMRC rules and to ensure that an
appropriate spread of investment risk is achieved, the Board
receives and reviews comprehensive reports from the Investment
Manager on a monthly basis. When the Investment Manager proposes to
make any investment in an unquoted company, the prior approval of
the Board is required.
A summary of the relationship between the Board, the Company's
Shareholders and the external service providers is depicted on page
21 of the Annual Report.
The Board's Strategy
Investment Objective
The Company's objective is to provide Shareholders with an
attractive return from a diversified portfolio of investments,
predominantly in the shares of AIM quoted companies, by maintaining
a steady flow of dividend distributions to Shareholders from the
income as well as capital gains generated by the portfolio.
It is also the objective that the Company should continue to
qualify as a Venture Capital Trust, so that Shareholders benefit
from the taxation advantages that this brings. To achieve this at
least 80% for accounting periods commencing after 6 April 2019
(previously 70%) of the Company's total assets are to be invested
in qualifying investments of which 70% by VCT value (30% made in
respect of investments made before 6 April 2018 from funds raised
before 6 April 2011) must be in ordinary shares which carry no
preferential rights (save as permitted under VCT rules) to
dividends or return of capital and no rights to redemption.
Investment Policy
In order to achieve the Company's investment objective, the
Board has agreed an investment policy which requires the Investment
Manager to identify and invest in a diversified portfolio,
predominantly of VCT qualifying companies quoted on AIM that
display a majority of the following characteristics:
-- experienced and well-motivated management;
-- products and services supplying growing markets;
-- sound operational and financial controls; and
-- potential for good cash generation to finance ongoing
development and support for a progressive dividend policy.
Asset allocation and risk diversification policies, including
maximum exposures, are to an extent governed by prevailing VCT
legislation. No single holding may represent more than 15% (by VCT
value) of the Company's total investments and cash, at the date of
investment.
There are a number of VCT conditions which need to be met by the
Company which may change from time to time. The Investment Manager
will seek to make qualifying investments in accordance with such
requirements.
Asset mix
Where capital is available for investment while awaiting
suitable VCT qualifying opportunities or is in excess of the 80%
VCT qualification threshold for accounting periods commencing after
6 April 2019 (previously 70%), it may be held in cash or invested
in money market funds, collective investment vehicles or
non-qualifying shares and securities of fully listed companies
registered in the UK.
Borrowing
To date the Company has operated without recourse to borrowing.
The Board may, however, consider the possibility of introducing
modest levels of gearing up to a maximum of 10% of the adjusted
capital and reserves, should circumstances suggest that such action
is in the interests of Shareholders.
The effect of any borrowing is discussed further on page 32 of
the Annual Report under "AIFMD".
Key Policies
The Board sets the Company's policies and objectives and ensures
that its obligations to Shareholders are met. Besides the
Investment Policy already referred to, the other key policies set
by the Board are outlined below.
Dividend policy
The Board remains committed to a policy of maintaining a steady
flow of dividend distributions to Shareholders from the income and
capital gains generated by the portfolio. Total dividends of 6.5
pence per share were paid during the year which amounted to
approximately GBP9.0 million.
The ability to pay dividends and the amount of such dividends is
at the Board's discretion and is influenced by the performance of
the Company's investments, available distributable reserves and
cash, as well as the need to retain funds for further investment
and ongoing expenses.
The Company paid an interim dividend during the year of 3.0
pence per share on 12 August 2020.
The Directors are recommending a final dividend of 3.5 pence for
approval at the Annual General Meeting to be held on 4 February
2021. This would bring total dividends to 6.5 pence for the year
under review.
Details of the Company's Dividend Reinvestment Scheme are
outlined on page 70 of the Annual Report.
Share buybacks and discount policy
The Board believes that it is in the best interests of the
Company and its Shareholders to make market purchases of its shares
from time to time.
There are three main advantages to be gained from maintaining a
flexible approach to share buybacks; namely:
1. Regular share buybacks provide a reliable mechanism through
which Shareholders can realise their investment in the Company,
rather than being reliant on what is typically a very limited
secondary market.
2. Share buybacks, when carried out at a discount to underlying
net assets, help modestly to enhance NAV per share for continuing
Shareholders.
3. Implementing share buybacks on a regular basis helps to control the discount to NAV.
The Board agrees the level of discount to NAV at which shares
will be bought back and keeps this under regular review. The Board
seeks to maintain a balance between the interests of those wishing
to sell their shares and continuing Shareholders.
The Company has continued to buy back shares for cancellation at
various points throughout the financial year in accordance with the
above policy. Details of the shares purchased for cancellation are
shown on pages 17 and 62 of the Annual Report. At the financial
year end, the Company's shares were quoted at a mid-price of 142.5
pence per share representing a discount to NAV per share of 20.2%.
This was before the announcement of the upward revaluation in
unquoted investments following the year end.
The Board intends to continue with the above buyback policy. Any
future repurchases will be made in accordance with guidelines
established by the Board from time to time and will be subject to
the Company having the appropriate authorities from Shareholders
and sufficient funds available for this purpose. Share buybacks
will also be subject to prevailing market conditions, Market Abuse
Rules and any other applicable law at the relevant time. Shares
bought back are cancelled.
Principal risks and uncertainties
The Directors have carried out a review of the principal risks
faced by the Company as part of the internal controls process, as
outlined below. Note 17 to the Financial Statements on page63 to 68
of the Annual Report also provides information on the Company's
financial risk management objectives and exposure to risks. The
Directors process for monitoring risks is shown below.
Risk Possible consequence How the Board guards against
risk
Investment and Unsuitable investment Regular review of investment
strategic risk strategy or share or strategy by the Board.
investment selection Monitoring of the performance
could lead to poor returns of the investment portfolio
to Shareholders. on a regular basis.
All purchases and sales of unquoted
investments require prior investment
authorisation from the Board.
Regulatory and The Company is required Regulatory and legislative developments
tax risk to comply with the Companies are kept under close review
Act 2006, ITA, AIFMD by the Board, the Investment
(as applicable to small Manager and the Company Secretary.
registered UK AIFMs), The Company's VCT qualifying
UKLA Rules and UK Accounting status is continually reviewed
Standards. Breaching by the Investment Manager and
these rules may result the Administrator.
in a public censure, PricewaterhouseCoopers LLP has
suspension from the Official been retained by the Board to
List and/or financial undertake a bi-annual independent
penalties. There is a VCT status monitoring role.
risk that the Company
may lose its VCT status
under the ITA. Should
this occur, Shareholders
may lose any upfront
income tax relief they
received and be taxed
on any future dividends
paid and capital gains
if they dispose of their
shares.
Operational risk The Company has no employees Internal control reports are
and is therefore reliant provided by service providers
on third party service on an annual basis.
providers. Failure of The Board considers the performance
the systems at third of the service providers annually
party service providers and monitors activity on a monthly
could lead to inaccurate basis.
reporting or monitoring. The Board discusses succession
Inadequate controls could planning with its service providers.
lead to the misappropriation
of assets.
Fraud and dishonesty Fraud involving Company Internal control reports are
risks assets may occur, perpetrated provided by service providers
by a third party, the on a regular basis.
Investment Manager or The Administrator is independent
other service provider. of the Investment Manager.
Cyber attacks on the
Company could lead to
financial loss and impact
on the Company's reputation.
Cyber attacks on the
Company's investee companies
could affect the value
of the Company's investments.
Financial Instrument The main risks arising The Board regularly reviews
risks from the Company's financial and agrees policies for managing
instruments are due to these risks and full details
fluctuations in their can be found in Note 17 on pages
market prices, interest 63 to 68 of the Annual Report.
rates, credit risk and
liquidity risk.
Economic, BREXIT Events such as recession, While no single policy can obviate
and political inflation or deflation, such risks the Company invests
risks movements in interest in a diversified portfolio of
rates and technological companies, whilst seeking to
change can affect trading maintain adequate liquidity.
conditions and consequently
the value of the Company's
investments.
The withdrawal of the
UK from the European
Union creates significant
uncertainty in markets
and regulatory environments
which may affect the
value of the Company's
investments.
Other geographical issues
may affect the Company's
performance at both macro
and micro economic level.
Global Pandemics Events such as the Covid-19 The Board actively liaises with
pandemic could adversely the Investment
affect Manager to obtain a full understanding
investee companies. of the
Key service providers impact on the investee companies.
could experience high The Board receives details from
levels of staff its key service
illness and interruption providers of the steps taken
to their operations. to protect their
employees and operations and
the alternative
working policies they have in
place to ensure
continued business services.
The Board is also responsible for assessing the possibility of
new and emerging risks.
The Regulatory Environment
The Board and Investment Manager are required to consider the
regulatory environment when setting the Company's strategy and
making investment decisions. A summary of the key considerations is
outlined below.
Human rights
The Board seeks to conduct the Company's affairs responsibly and
expects the Investment Manager to consider human rights
implications when making investment decisions.
Recruitment and succession planning
As announced last year, Peter Dicks stood down as Chairman
following the Annual General Meeting in January 2020. In May 2020,
he stood down as a Director. The Board will continue to assess its
composition in the future and undertake succession planning. The
Board's policy on the tenure of the Chair is shown on page 38 of
the Annual Report.
Diversity
The Directors are aware of the need to have a Board which, as a
whole, comprises an appropriate balance of skills, experience and
diversity. Appointments to the Board are made according to
expertise and knowledge. Following the retirement of Peter Dicks
during the year, the Board comprises three male and one female
non-executive Directors.
The Board's operational and entrepreneurial skills have been
extended by the appointment of Tim Woodcock as Chairman. His
extensive experience in the development of fast growth companies
complements the considerable investment industry experience
possessed by other members of the Board.
Anti-bribery, corruption and tax evasion policy
The Company has a zero tolerance approach to bribery. It is the
Company's policy to conduct all of its business in an honest and
ethical manner and it is committed to acting professionally, fairly
and with integrity in all its business dealings and relationships
where it operates.
Directors and service providers must not promise, offer, give,
request, agree to receive or accept a financial or other advantage
in return for favourable treatment, to influence a business outcome
or to gain any other business advantage on behalf of themselves or
of the Company or encourage others to do so.
The Company has communicated its anti-bribery policy to each of
its service providers. It requires each of its service providers to
have policies in place which reflect the key principles of this
policy and procedures and which demonstrate that they have adopted
procedures of an equivalent standard to those instituted by the
Company.
Further information relating to the Company's anti-bribery
policy can be found on its website: www.unicornaimvct.co.uk. A full
copy of the VCT's anti-bribery policy and procedures can be
obtained from the Company Secretary by sending an email to:
unicornaimvct@iscaadmin.co.uk .
Environmental and social responsibility
The Board seeks to conduct the Company's affairs responsibly and
expects the Investment Manager to consider relevant social and
environmental matters when appropriate, particularly with regard to
investment decisions. The Company offers electronic communications
to reduce the volume of paper it uses in sending communications to
Shareholders. In addition, Board and Committee meetings are held by
video or voice conference call where it is appropriate to do so.
The Company's Annual and Half-Yearly reports are printed on paper
sourced from forests certified by the Forestry Stewardship Council
("FSC") that meet environmental, social and economic standards.
Viability Statement
The Board' assessment of the ability of the Company to meet all
liabilities when due and that it can continue to operate for a
period of at least twelve months from the date of signing the
Annual Report is shown on page 32 of the Annual Report.
Under the UK Corporate Governance code there is a requirement
that the Board performs a robust assessment of the Company's
principal and emerging risks and the disclosures in the Annual
Report that describe the principal risks and the procedures in
place to identify emerging risks and explain how they are being
managed or mitigated. The last review was performed in September
2020.
The Directors have considered the viability of the Company as
part of their continuing programme of monitoring risk and conclude
that five years is a reasonable time horizon to consider the
continuing viability of the Company. This is also in line with the
requirement for the Company to continue in operation so investors
subscribing for new shares issued by the Company can hold their
shares for the minimum five year period to allow them to benefit
from the tax incentives offered when those shares were issued. The
last allotment of shares being in June 2020.
In order to maintain viability, the Company has a detailed risk
control framework which has the objective of reducing the
likelihood and impact of: poor judgement in decision-making,
risk-taking that exceeds the levels agreed by the Board, human
error, or control processes being deliberately circumvented. These
controls are reviewed by the Board on a regular basis to ensure
that controls are working as prescribed. In addition, formal
reviews of all service providers are undertaken annually and
activity is monitored at least monthly.
In its assessment of the viability of the Company, the Board has
recognised factors such as the continuation of the current State
Aid regulations, the ability of the Company to raise money from
future Offers for Subscription and there being sufficient VCT
qualifying investment opportunities available.
The Directors consider that the Company is viable for the five
year time horizon for the following reasons:
-- At the year end the Company had a diversified investment
portfolio in addition to its VCT qualifying investments comprising:
GBP10.7 million invested in non-qualifying, fully listed shares
which are readily realisable and a further GBP27.1 million in open
ended funds and cash. The Company therefore has sufficient
immediate liquidity in the portfolio for any near-term
requirements.
-- The ongoing charges ratio of the Company as calculated using
the AIC recommended methodology equates to 2.2% of net assets.
-- The Board anticipates that there will continue to be suitable
qualifying investments available that will enable the Company to
maintain its operations successfully over the five year time
horizon.
-- The Company has no debt or other external funding apart from its ordinary shares.
-- The payment of dividends and buybacks are at the discretion of the Board.
The Directors have also considered the viability of the Company
should there be a slowdown in the economy or a collapse of the
markets leading to lower dividend receipts and asset values. As
stated above Ongoing Charges equate to 2.2% of net assets of which
the Investment Management fee (as reduced by the Company's
investments in Unicorn funds) equates to 2.0% of net assets up to
GBP200 million and 1.5% of net assets in excess of GBP200 million.
Therefore, any fall in the value of net assets will result in a
corresponding fall in the major expense of the Company.
The Directors have concluded that there is a reasonable
expectation that the Company can continue in operation over the
five year period.
Prospects
The prospects for the Company are discussed in detail in the
Outlook section of the Chairman's Statement above.
For and behalf of the Board
Tim Woodcock
Chairman
16 December 2020
EXTRACT FROM DIRECTORS' REPORT
Share Capital
At the year-end there were 145,732,541 (2019: 130,660,071)
Ordinary shares of 1p each in issue, none of which are held in
Treasury. The issues and buybacks of the Company's shares during
the year are shown in note 13 on page 62 of the Annual Report. No
shares have been bought back subsequent to the year end, therefore,
at the date of this announcement the Company had 145,732,541 shares
in issue. All shares are listed on the main market of the London
Stock Exchange.
Going concern
After due consideration, the Directors believe that the Company
has adequate resources for a period of at least 12 months from the
date of the approval of the Financial Statements and that it is
appropriate to apply the going concern basis in preparing the
Financial Statements. As at 30 September 2020, the Company held
cash balances of GBP21.4 million, GBP10.7 million in fully listed
stocks and GBP5.7 million in Unicorn OEIC funds. The majority of
the Company's investment portfolio remains invested in qualifying
and non-qualifying AIM traded equities which may be realised,
subject to the need for the Company to maintain its VCT status. The
cash flow projections taking into account the impact of Covid-19
and covering a period of at least twelve months from the date of
approving the Financial Statements have been reviewed and show that
the Company has access to sufficient liquidity to meet both
contracted expenditure and any discretionary cash outflows from
buybacks and dividends. The Company has no borrowings in place and
is therefore not exposed to any gearing covenants.
The full Annual Report and Accounts contains the following
statement regarding responsibility for the Financial
Statements.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report
and the Financial Statements in accordance with applicable law and
regulations.
Company law requires the Directors to prepare Financial
Statements for each financial year. Under that law the Directors
have elected to prepare the Company's Financial Statements in
accordance with United Kingdom Generally Accepted Accounting
Practice ("UK GAAP') (United Kingdom Accounting Standards and
applicable law). Under company law the Directors must not approve
the Financial Statements unless they are satisfied that they give a
true and fair view of the state of affairs of the Company and of
the profit or loss for the Company for that period.
In preparing these Financial Statements the Directors are
required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether they have been prepared in accordance with UK
GAAP subject to any material departures disclosed and explained in
the Financial Statements; and
- prepare a Director's Report, a Strategic Report and Director's
Remuneration Report which comply with the requirements of the
Companies Act 2006.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's
transactions and 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 ensuring that the Annual Report and accounts, taken as a whole,
are fair, balanced and understandable and provides the information
necessary for Shareholders to assess the Company's position and
performance, business model and strategy.
Website publication
The Directors are responsible for ensuring the Annual Report and
the Financial Statements are made available on a website. Financial
Statements are published on the Company's website in accordance
with legislation in the United Kingdom governing the preparation
and dissemination of Financial Statements, which may vary from
legislation in other jurisdictions. The maintenance and integrity
of the Company's website is the responsibility of the Directors.
The Directors' responsibility also extends to the ongoing integrity
of the Financial Statements contained therein.
Directors' responsibilities pursuant to DTR4
The Directors confirm to the best of their knowledge:
-- The Financial Statements have been prepared in accordance
with UK GAAP and give a true and fair view of the assets,
liabilities, financial position and profit of the Company.
-- The Annual Report includes a fair review of the development
and performance of the business and the financial position of the
Company, together with a description of the principal risks and
uncertainties that it faces.
For and on behalf of the Board
Tim Woodcock
Chairman
16 December 2020
NON-STATUTORY ACCOUNTS
The financial information set out below does not constitute the
Company's statutory accounts for the years ended
30 September 2020 or 30 September 2019 but is derived from those
accounts. Statutory accounts for the year ended 30 September 2019
have been delivered to the Registrar of Companies and statutory
accounts for the year ended 30 September 2020 will be delivered to
the Registrar of Companies in due course. The Auditor has reported
on those accounts; their reports were (i) unqualified, (ii) did not
include a reference to any matters to which the Auditor drew
attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under Section 498 (2) or (3) of
the Companies Act 2006. The text of the Auditor's reports can be
found in the Company's full Annual Report and Accounts at
www.unicornaimvct.co.uk .
PRIMARY FINANCIAL STATEMENTS
Income Statement
for the year ended 30 September 2020
Year ended Year ended
30 September 2020 30 September 2019
Notes Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Net unrealised
gains/(losses)
on investments - 50,506 50,506 - (11,102) (11,102)
Net gains
on realisation
of investments - 337 337 - 650 650
Income 2 1,620 - 1,620 2,700 28 2,728
Investment
management
fees 3 (1,042) (3,126) (4,168) (916) (2,748) (3,664)
Other expenses (747) - (747) (772) - (772)
-------- -------- -------- -------- --------- ---------
(Loss)/
profit on
ordinary
activities
before taxation (169) 47,717 47,548 1,012 (13,172) (12,160)
-------- -------- -------- -------- --------- ---------
Tax on (loss)/profit
on ordinary
activities - - - - - -
(Loss)/
profit on
ordinary
activities
after taxation
for the
financial
year (169) 47,717 47,548 1,012 (13,172) (12,160)
-------- -------- -------- -------- --------- ---------
Basic and
diluted
earnings
per share:
Ordinary
Shares 5 (0.12)p 34.69p 34.57p 0.81p (10.56)p (9.75)p
-------- -------- -------- -------- --------- ---------
All revenue and capital items in the above statement derive from
continuing operations of the Company.
The total column of this statement is the Statement of Total
Comprehensive Income of the Company prepared in accordance with
applicable Financial Reporting Standards ("FRS"). The supplementary
revenue return and capital return columns are prepared in
accordance with the Statement of Recommended Practice ("AIC SORP")
issued in October 2019 by the Association of Investment
Companies.
Other than revaluation movements arising on investments held at
fair value through profit or loss, there were no differences
between the profit as stated above and at historical cost.
The notes below form part of these financial statements.
Statement of Financial Position
as at 30 September 2020
30 September 2020 30 September 2019
Notes GBP'000 GBP'000 GBP'000 GBP'000
Non-current assets
Investments at fair
value 6 239,566 192,551
Current assets
Debtors 916 426
Cash at bank and
in hand 21,387 9,393
--------- ---------
22,303 9,819
Creditors: amounts
falling due within
one year (1,663) (1,254)
--------- ---------
Net current assets 20,640 8,565
Net assets 260,206 201,116
--------- ---------
Capital
Called up share capital 1,457 1,307
Capital redemption
reserve 56 25
Share premium account 38,320 13,856
Capital reserve 117,421 65,535
Special reserve 98,434 114,297
Profit and loss account 4,518 6,096
Equity Shareholders'
funds 260,206 201,116
--------- ---------
Net asset value per
Ordinary share:
Ordinary shares 7 178.55p 153.92p
--------- ---------
The financial statements were approved and authorised for issue
by the Board of Directors on 16 December 2020 and were signed on
their behalf by:
Tim Woodcock
Chairman
The notes below form part of these financial statements.
Statement of Changes in Equity
for the year ended 30 September 2020
Called Capital Share Unrealised Special Profit Total
up share redemption premium capital reserve* and loss
capital reserve account reserve account*
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 October
2019 1,307 25 13,856 65,535 114,297 6,096 201,116
Shares repurchased
for cancellation
and cancelled (31) 31 - - (4,147) - (4,147)
Shares issued
under Offer
for Subscription 178 - 24,570 - - - 24,748
Expenses of
shares issued
under Offer
for Subscription - - (583) - - - (583)
Proceeds from
DRIS share
issues 3 - 507 - - - 510
Expenses of
DRIS share
issues - - (30) - - - (30)
Transfer to
special reserve - - - - (7,295) 7,295 -
Gains on disposal
of investments
(net of transaction
costs) - - - - - 337 337
Realisation
of previously
unrealised
valuation
movements - - - 1,380 - (1,380) -
Net increases
in unrealised
valuations
in the year - - - 50,506 - - 50,506
Dividends
paid - - - - (4,421) (4,535) (8,956)
Investment
Management
fee charged
to capital - - - - - (3,126) (3,126)
Revenue return
for the year - - - - - (169) (169)
---------- ------------ --------- ----------- ---------- ---------- ----------
At 30 September
2020 1,457 56 38,320 117,421 98,434 4,518 260,206
---------- ------------ --------- ----------- ---------- ---------- ----------
Called Capital Share premium Unrealised Special Profit Total
up share redemption account capital reserve* and loss
capital reserve reserve account*
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 October 2018 1,172 99 106,325 80,152 7,401 6,279 201,428
Shares repurchased
for cancellation
and cancelled (32) 32 - - (4,430) - (4,430)
Shares issued under
Offer for Subscription 167 - 24,726 - - - 24,893
Expenses of shares
issued under Offer
for Subscription - - (570) - - - (570)
Cancellation of
Share premium account
and Capital redemption
reserve - (106) (116,625) - 116,731 - -
Transfer to special
reserve - - - - (5,405) 5,405 -
Gains on disposal
of investments
(net of transaction
costs) - - - - - 650 650
Realisation of
previously unrealised
valuation movements - - - (3,515) - 3,515 -
Capita dividend
received - - - - - 28 28
Net decreases in
unrealised valuations
in the year - - - (11,102) - - (11,102)
Dividends paid - - - - - (8,045) (8,045)
Investment Management
fee charged to
capital - - - - - (2,748) (2,748)
Revenue return
for the year - - - - - 1,012 1,012
---------- ------------ -------------- ----------- ---------- ---------- ----------
At 30 September
2019 1,307 25 13,856 65,535 114,297 6,096 201,116
---------- ------------ -------------- ----------- ---------- ---------- ----------
* The special reserve and profit and loss account are
distributable to Shareholders. The cancellation of the Share
premium account and Capital redemption reserve was approved by the
Court on 26 March 2019.
The notes form part of these financial statements.
Statement of Cash Flows
for the year ended 30 September 2020
30 September
2020 30 September 2019
Notes GBP'000 GBP'000 GBP'000 GBP'000
Operating activities
Investment income received 1,638 2,657
Investment management fees paid (3,936) (2,691)
Other cash payments (757) (855)
-------- --------- --------- ---------
Net cash outflow from operating
activities (3,055) (889)
Investing activities
Purchase of investments (6,910) (23,115)
Sale of investments 10,239 20,270
-------- --------- --------- ---------
Net cash inflow/(outflow) from
investing activities 3,329 (2,845)
Net cash inflow/(outflow) before financing 274 (3,734)
Financing
Dividends paid 4 (8,446) (8,045)
Shares issued under Offer for Subscription
(net of transaction costs) 24,343 24,323
Expenses of DRIS share issues (30) -
Shares repurchased for cancellation (4,147) (4,430)
Net cash inflow from financing 11,720 11,848
-------- --------- --------- ---------
Net increase in cash and cash equivalents 11,994 8,114
-------- --------- --------- ---------
Cash and cash equivalents at 30
September 2019 9,393 1,279
-------- --------- --------- ---------
Cash and cash equivalents at 30
September 2020 21,387 9,393
-------- --------- --------- ---------
The notes below form part of these financial statements.
Notes to the Financial Statements
for the year ended 30 September 2020
1 Accounting policies
A summary of the principal accounting policies, all of which
have been applied consistently throughout the year, is set out on
pages 54 and 55 of the Annual Report.
a) Basis of accounting
The Financial Statements have been prepared under FRS 102 and
the SORP issued by the Association of Investment Companies in
October 2019.
In accordance with the requirements of FRS 102, those
undertakings in which the Company holds more than 20% of the equity
as part of an investment portfolio are not accounted for using the
equity method. In these circumstances the investment is measured at
"fair value through profit or loss". The Company is exempt from
preparing consolidated accounts under the investment entities
exemption as permitted by FRS 102.
The Financial Statements have been prepared on a going concern
basis under the historical cost convention, except for the
measurement at fair value of investments designated as fair value
through profit or loss.
As a result of the Directors' decision to distribute capital
profits by way of a dividend, the Company revoked its investment
company status as defined under section 266(3) of the Companies Act
1985, on 17 August 2004.
2 Income
2020 2019
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Income from investments:
- equities 1,418 - 1,418 2,432 28 2,460
- loan stocks 39 - 39 36 - 36
- bank interest 11 - 11 16 - 16
- Unicorn managed
OEICs (including reinvested
dividends) 152 - 152 216 - 216
-------- -------- -------- -------- -------- --------
Total income 1,620 - 1,620 2,700 28 2,728
-------- -------- -------- -------- -------- --------
Total income comprises:
Dividends 1,570 - 1,570 2,648 28 2,676
Interest 50 - 50 52 - 52
-------- -------- -------- -------- -------- --------
1,620 - 1,620 2,700 28 2,728
-------- -------- -------- -------- -------- --------
Income from investments
comprises:
Listed UK securities 312 - 312 866 - 866
Unlisted UK securities
(AIM and unquoted
companies) 1,308 - 1,308 1,834 28 1,862
-------- -------- -------- -------- -------- --------
1,620 - 1,620 2,700 28 2,728
-------- -------- -------- -------- -------- --------
3 Investment Management fees
2020 2019
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Unicorn Asset Management
Limited 1,042 3,126 4,168 916 2,748 3,664
-------- -------- -------- -------- -------- --------
Unicorn Asset Management Limited ("UAML") receive an annual
management fee of 2% of the net asset value of the Company,
excluding the value of the investments in the OEICs, up to net
assets of GBP200 million and 1.5% of net assets in excess of GBP200
million. If the Company raises further funds during a quarter the
net asset value for that quarter is reduced by an amount equal to
the amount raised, net of costs, multiplied by the percentage of
days in that quarter prior to the funds being raised. The annual
management fee charged to the Company is calculated and payable
quarterly in arrears. In the year ended 30 September 2020, UAML
also earned fees of GBP46,500 (2019: GBP37,000), being OEIC
management fees calculated on the value of the Company's holdings
in each OEIC on a daily basis. This management fee is 0.75% per
annum of the OEIC value for each of Unicorn UK Smaller Companies
OEIC, Unicorn UK Growth OEIC (formerly Unicorn Free Spirit OEIC)
and Unicorn UK Ethical Fund OEIC.
The management fee will be subject to repayment to the extent
that there is an excess of the annual costs of the Company incurred
in the ordinary course of business over 2.75% of the closing net
assets of the Company at the year end. There was no excess of
expenses for year 2019/20 or the prior year.
4 Dividends
2020 2019
GBP'000 GBP'000
Amounts recognised as distributions to equity holders in the year:
Interim capital dividend of 3.0 pence (2019: 2.8 pence) per share for the year ended 30 September
2020 paid on 12 August 2020 4,421 3,698
Interim income dividend of nil pence (2019: 0.2 pence) per share for the year ended 30 September
2020 paid on 12 August 2020 - 264
Final capital dividend of 3.0 pence (2019: 2.5 pence) per share for the year ended 30 September
2019 paid on 6 February 2020 3,903 2,916
Final income dividend of 0.5 pence (2019: 1.0 pence) per share for the year ended 30 September
2019 paid on 6 February 2020 650* 1,167
-------- --------
Total dividends paid in the year# 8,974 8,045
Unclaimed dividends returned (18) -
-------- --------
Total dividends 8,956 8,045
-------- --------
* The amount actually paid in dividends for 2019 differs from
that shown in last year's Annual Report as 572,375 shares were
bought back between 15 October 2019 and the record date of 9
January 2020.
# The difference between total dividends and that shown in the
Cash Flow Statement is GBP510,000 which is the amount of dividends
reinvested under the DRIS.
The proposed final dividend is subject to approval by
Shareholders at the Annual General Meeting and has not been
included as a liability in these financial statements.
Set out below are the total income dividends payable in respect
of the 2019/20 financial year, which is the basis on which the
requirements of Section 274 of the Income Tax Act 2007 are
considered.
2020 2019
GBP'000 GBP'000
Revenue available for distribution by way of dividends for the year (169) 1,012
Interim income dividend paid of nil pence (2019: 0.2 pence) - 264
-------- --------
Proposed final income dividend of nil pence (2019: 0.5 pence) for the year ended 30 September
2020 - 652
-------- --------
5 Basic and diluted earnings and return per share
2020 2019
GBP'000 GBP'000
Total earnings after taxation: 47,548 (12,160)
Basic and diluted earnings per share (Note a) 34.57p (9.75)p
------------ ------------
Net revenue from ordinary activities after taxation (169) 1,012
Revenue earnings per share (Note b) (0.12)p 0.81p
------------ ------------
Total capital return 47,717 (13,172)
Capital earnings per share (Note c) 34.69p (10.56)p
------------ ------------
Weighted average number of shares in issue during the year 137,556,594 124,761,066
------------ ------------
Notes
a) Basic and diluted earnings per share is total earnings after
taxation divided by the weighted average number of shares in issue
during the year.
b) Revenue earnings per share is net revenue after taxation
divided by the weighted average number of shares in issue during
the year.
c) Capital earnings per share is total capital return divided by
the weighted average number of shares in issue during the year.
There are no instruments in place that will increase the number
of shares in issue in future. Accordingly, the above figures
currently represent both basic and diluted returns.
6 Investments at fair value
Unlisted Unicorn
Fully Traded Unlisted loan OEIC 2020 2019
listed on AIM shares stock funds Total Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Opening book cost
at 30 September 2019 19,726 95,312 15,109 300 5,755 136,202 127,340
Unrealised (losses)/gains
at 30 September 2019 (331) 44,747 20,357 - 762 65,535 80,151
Permanent impairment
in value of investments - (6,819) (2,367) - - (9,186) (7,439)
-------- -------- --------- --------- -------- --------- ---------
Opening valuation
at 30 September 2019 19,395 133,240 33,099 300 6,517 192,551 200,052
Shares delisted - (2,310) 2,310 - - - -
Purchases at cost - 5,909 500 500 20 6,929 23,144
Sale proceeds (3,566) (6,373) (524) (300) - (10,763) (20,270)
Net realised (losses)/gains (696) 1,356 (317) - - 343 727
(Decrease)/increase
in unrealised gains (4,439) 32,428 23,378 - (861) 50,506 (11,102)
Closing valuation
at 30 September 2020 10,694 164,250 58,446 500 5,676 239,566 192,551
-------- -------- --------- --------- -------- --------- ---------
Book cost at 30 September
2020 15,211 91,508 16,338 500 5,775 129,332 136,202
Unrealised (losses)/gains
at 30 September 2020 (4,517) 79,561 42,475 - (99) 117,420 65,535
Permanent impairment
in value of investments - (6,819) (367) - - (7,186) (9,186)
-------- -------- --------- --------- -------- --------- ---------
Closing valuation
at 30 September 2020 10,694 164,250 58,446 500 5,676 239,566 192,551
-------- -------- --------- --------- -------- --------- ---------
Transaction costs on the purchase and disposal of investments of
GBP6,000 were incurred in the year. These have not been deducted
from realised gains shown above of GBP343,000 but have been
deducted in arriving at gains on realisation of investments
disclosed in the Income Statement of GBP337,000.
The shares delisted during the year relates to Brady
(GBP17,000), Lightwave RF (GBP1,451,000), Reach4Entertainment
(GBPnil) and Synnovia (GBP842,000).
Note: Permanent impairments of GBP7,186,000 continue to be held
in respect of losses on quoted investments held at the year end.
There were no additional impairments provided for in the year. The
reduction in impairments of GBP2,000,000 relates to Blue Inc. which
was dissolved in August 2019.
Reconciliation of cash movements in investment transactions
The difference between the purchases in Note 6 and that shown in
the Cash Flows is GBP19,000 which represents the reinvested
dividends on the Unicorn Ethical Fund. The difference between the
sales in Note 6 and that shown in the Cash Flows is GBP524,000
which represents a trade outstanding for settlement which is shown
in debtors.
7 Net asset value
2020 2019
Net Assets GBP260,206,000 GBP201,116,000
Number of shares in issue 145,732,541 130,660,071
--------------- ---------------
Net asset value per share 178.55p 153.92p
--------------- ---------------
8 Post balance sheet events
The Company was advised on 30 October 2020 that its shareholding
in Synnovia had been compulsory purchased following a takeover in
January 2020.
9 Capital commitments and contingent liabilities
There were no capital commitments or contingent liabilities at
30 September 2020 (2019: nil).
10 Shareholder information
Dividend
The Directors have proposed a final dividend of 3.50 pence per
share. Subject to Shareholder approval, the dividend will be paid
on 11 February 2021 to Shareholders on the Register on 8 January
2021.
The Board has made the decision that after the payment of the
dividend in February 2021 the Company will move to paying all cash
dividends by bank transfer rather than by cheque.
Shareholders will have the following options available for
future dividends:
-- Complete a bank mandate form and receive dividends via direct
credit to a UK domiciled bank account.
-- Reinvest the dividends for additional shares in the Company
through the Dividend Reinvestment Scheme (DRIS).
For those Shareholders who currently receive their dividend by
cheque a bank mandate form will be included with the dividend
payment in February 2021. The mandate form will also be available
on the Company's website. Once completed the form should be sent to
the Company's Registrars, City Partnership at the address shown on
page 74 of the Annual Report. If Shareholders have any questions
regarding the completion of the form, they are advised to contact
the City Partnership on 01484 240910 or by email:
registrars@city.uk.com.
Dividend Reinvestment Scheme
Shareholders may elect to reinvest their dividends by
subscribing for new shares in the Company. Shares will be issued at
the latest published Net Asset Value prior to the allotment. For
details of the scheme see the Company's website
www.unicornaimvct.co.uk/dividend-reinvestment-scheme or contact the
scheme administrators, The City Partnership, on 01484 240910.
11 Statutory information
These are not full accounts in terms of section 434 of the
Companies Act 2006. The Annual Report for the year to 30 September
2020 will be sent to Shareholders shortly and will then be
available for inspection at Suite 8, Bridge House, Courtenay
Street, Newton Abbot TQ12 2QS, the registered office of the
Company. Copies of the Annual Report will shortly be available on
the Company's website, www.unicornaimvct.co.uk . Statutory accounts
will be delivered to the Registrar of Companies after the Annual
General Meeting.
12 Annual General Meeting
The Annual General Meeting of the Company will be held on
Thursday, 4 February 2021 at 11.30 am at the offices of Unicorn
Asset Management, Preacher's Court, The Charterhouse, Charterhouse
Square, London EC1M 6AU. Due to Covid-19 restrictions Shareholders
will not be permitted to attend the meeting in person.
13 National Storage Mechanism
A copy of the 2020 Annual Report and Accounts will be submitted
shortly to the National Storage Mechanism ("NSM") and will be
available for inspection at the NSM, which is situated at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Contact details for further enquiries:
Chris Hutchinson of Unicorn Asset Management Limited (the
Investment Manager), on 020 7253 0889.
Jon Carslake at ISCA Administration Services Limited (the
Company Secretary) on 01392 487056 or by e-mail on
unicornaimvct@iscaadmin.co.uk
DISCLAIMER
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of any website accessible from hyperlinks on the Company's website
(or any other website) is incorporated into, or forms part of, this
announcement.
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