Half-year report | MarketScreener

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17 June 2022

HARGREAVE HALE AIM VCT PLC
(the “Firm”)

Unaudited Interim Outcomes

The Firm publicizes its half-year outcomes for the six months ended 31 March 2022.

These half-year outcomes can be accessible on the Firm’s web site at https://www.hargreaveaimvcts.co.uk/document-library/.

In accordance with Itemizing Rule 9.6.1, copies of those paperwork will even be submitted to the UK Itemizing Authority by way of the Nationwide Storage Mechanism and can be accessible for viewing shortly at https://information.fca.org.uk/#/nsm/nationalstoragemechanism.

For additional info, please contact:

JTC (UK) Restricted
Susan Fadil
Uloma Adighibe
HHV.CoSec@jtcgroup.com
+44 20 3893 1005
+44 20 7409 0181

LEI: 213800LRYA19A69SIT31

Monetary highlights for the six month interval ending 31 March 2022

Internet asset worth (NAV) per share NAV whole return Tax free dividends paid within the interval Share worth whole return Ongoing expenses ratio
77.13p(1) -17.54%(1) 5.65p -16.24%(1) 2.10%(1)
  • £8.6 million invested in Qualifying Corporations within the interval.
  • 85.63% invested by VCT tax worth in Qualifying Investments at 31 March 2022.
  • Provide for subscription to lift £20 million, along with an over-allotment facility to lift an additional £20 million absolutely subscribed as introduced by the Firm on 22 October 2021.
  • Particular dividend of two.50 pence per share paid 29 October 2021 and remaining dividend of three.15 pence per share paid 11 February 2022.
  • Interim dividend of 1 penny authorized by the Board.
Abstract monetary information Six months ending 31-Mar-22 Six months ending 31-Mar-21 12 months ending
30 Sept-21
NAV (£m) 206.37 220.64 228.96
NAV per share (p)(1) 77.13  95.71 100.39(2)
NAV whole return (%)(1) -17.54 33.53 42.26
Market capitalisation (£m) 200.00  207.47 212.11
Share worth (p) 74.75 90.00 93.00
Share worth low cost to NAV per share (%)(1) 3.09  5.97 5.00(3)
Share worth 5 yr common low cost to NAV per share (%)(1) 6.02 6.31 6.31(3)
Share worth whole return (%)(1) -16.24  40.38 51.36
Loss/acquire per share for the interval (p) -18.74 25.61 30.45
Dividends paid per share (p) 5.65  2.65 4.40
Ongoing expenses ratio (%)(1) 2.10 2.29 2.12

(1)   Various efficiency measure illustrations and definitions might be discovered beneath.

(2)   Cumulative of particular dividend paid submit year-end.

(3)   The Firm’s shares went ex-dividend on 30 September 2021. The FY21 yr finish low cost to NAV and the 5 yr common low cost to NAV is a perform of the yr finish ex-dividend NAV of 97.89 pence per share and the yr finish share worth.

Monetary Calendar  
Report date for interim dividend 1 July 2022
Cost of interim dividend 29 July 2022
Announcement of annual outcomes for the yr ending 30 September 2022 December 2022
Annual Common Assembly February 2023
Cost of annual dividend (topic to approval by shareholders on the AGM) February 2023

Chairman’s assertion

Introduction

Might I begin by welcoming the various new shareholders who’ve joined us by means of the current profitable fundraise and naturally by thanking all shareholders for his or her persevering with help which is tremendously appreciated. We’ll always remember that you’ve got the selection of many different VCTs to your funding funds.

As soon as once more, I discover myself writing to you a few new set of challenges. Like everybody, we’re shocked by the conflict in Ukraine, which has added considerably to the outlook for inflation and put additional strain on provide chains that have been nonetheless within the strategy of rebalancing following COVID and Brexit induced disruption.

The interval underneath overview has been tough. Inflation has accelerated, rates of interest have elevated and taxes have gone up. The outlook has deteriorated with the Workplace for Price range Accountability, the Financial institution of England and the OECD all downgrading their forecasts for financial output this yr and subsequent. Except for the FTSE 100, world fairness markets have fallen sharply.

Central banks are struggling to convey inflation again according to coverage goals. No family or enterprise is proof against the challenges introduced by the very excessive ranges of inflation we’re witnessing, be it an erosion of non-essential spending and family wealth, the extra price of borrowing that can inevitably observe or strain on industrial fashions and revenue margins. Coverage makers face a tough balancing act in containing ahead trying measures of inflation while engineering a smooth touchdown for the financial system. The chance of a coverage error will not be insignificant.

That having been mentioned, we enter these tougher instances from a place of relative energy: employment and job vacancies stay optimistic, family wealth is excessive, albeit not evenly distributed, and wage development and financial measures will soften among the impression of the strain on family budgets.

The impression on investee corporations will fluctuate. Some know-how and healthcare corporations needs to be effectively insulated from the decrease stage of financial exercise as they additional develop their know-how or industrial footprint. Most client going through corporations will discover it tough to take care of their present forecasts for revenues and revenue margins. As is usually the case in difficult instances, the market will turn out to be extra Darwinian and the sturdy will emerge stronger, even when there may be some ache to be endured within the short-term.

Efficiency

We stay in difficult instances. Fairly other than the human struggling, the conflict in Ukraine has added a further layer of threat and uncertainty that has challenged world fairness markets and has additional embedded an inflationary drawback that many had hoped would possibly show to be transitory. While the numerous transfer greater in US rates of interest has depressed valuations of shares around the globe, the impression has been most acute for development corporations. Financial development is slowing down within the US, UK and elsewhere and will flip adverse later this yr or subsequent yr. We proceed to watch industrial progress inside portfolio corporations and, while we’re seeing some proof of a decelerate and strain on revenue margins, it’s under no circumstances common.

At 31 March 2022, the NAV per share was 77.13 pence which, after adjusting for the dividends paid within the half yr of 5.65 pence, provides a NAV whole return for the interval of -17.54%. The NAV whole return (dividends reinvested) for the half yr was -18.49% in contrast with -15.80% within the FTSE AIM All-Share Index Complete Return (additionally calculated on a dividends reinvested foundation). The Administrators contemplate this to be probably the most applicable benchmark from a shareholder’s perspective, nonetheless, as a result of funding restrictions positioned on a VCT it’s not wholly comparable.

Rolling Returns to finish March 2022 Six months 1Y 3Y 5Y 10Y
NAV whole return -17.54% -11.68% 32.56% 31.95% 97.27%
Share worth whole return -16.24% -8.72% 33.28% 36.08% 114.20%
NAV whole return (dividends reinvested) (1) (2) -18.49% -12.99% 33.36% 35.56% 122.92%
Share worth whole return (dividends reinvested)(1) (2) -16.67% -9.93% 35.06% 41.44% 146.06%
FTSE AIM All-Share Index Complete Return -15.80% -12.14% 17.38% 18.75% 47.27%

Supply: Canaccord Genuity Fund Administration/ Bloomberg

(1)   Various efficiency measure illustrations and definitions might be discovered beneath.

(2)   The NAV whole return (dividends reinvested) and Share worth whole return (dividends reinvested) measures have been included to enhance comparability with the FTSE AIM All-Share index Complete Return which can be calculated on that foundation.

The earnings per share whole return for the yr was a lack of 18.74 pence (comprising a income lack of 0.28 pence and a capital lack of 18.46 pence). Income earnings within the interval declined by 5.5% to £0.37m. For probably the most half, this was a consequence of the lowered allocation to Non-Qualifying Investments.

The share worth decreased from 93.00 pence to 74.75 pence over the reporting interval which, after adjusting for dividends paid, provides a share worth whole return of -16.24%.

Investments
The Funding Supervisor invested £8.6 million into 6 Qualifying Corporations throughout the interval. The truthful worth of Qualifying Investments at 31 March 2022 was £143.2 million (69.4% of NAV) invested in 65 AIM corporations and seven unquoted corporations. £21.5 million (10.4% of NAV) was invested in non-qualifying equities, £4.3 million (2.1% of NAV) was invested within the Marlborough Particular Conditions Fund and £38 million (18.5% of NAV) was held in money on the interval finish. Many of the non-qualifying equities are listed within the FTSE 350 and supply good ranges of liquidity ought to the necessity come up.

Dividend
The Administrators proceed to take care of their coverage of focusing on a tax free dividend yield equal to five% of the yr finish NAV per share.

A particular dividend of two.50 pence was paid on 29 October 2021 and a remaining dividend for the yr ended 30 September 2021 of three.15 pence was paid on 10 February 2022.

An interim dividend of 1 penny (2021: 1.75 pence) can be paid on 29 July 2022, with an ex-dividend date of 30 June 2022 and a report date of 1 July 2022. The ultimate dividend can be decided on the yr finish.

Dividend re-investment scheme
Shareholders could elect to reinvest their dividends by subscribing for brand spanking new shares within the Firm. Election to affix the scheme might be made at any time by finishing a DRIS mandate kind. Additional info on tips on how to apply might be discovered within the shareholder info part of the half yr report.

On 29 October 2021, 327,293 strange shares have been allotted at a worth of 94.09 pence per share, which was calculated, in accordance with the phrases and situations of the DRIS, on the idea of the final reported NAV per share as at 8 October 2021, to shareholders who elected to obtain shares as an alternative choice to the particular dividend introduced on 23 September 2021.

On 10 February 2022, 624,916 strange shares have been allotted at a worth of 86.69 pence per share, which was calculated, in accordance with the phrases and situations of the DRIS, on the idea of the final reported NAV per share as at 21 January 2022, to shareholders who elected to obtain shares as an alternative choice to the ultimate dividend for the yr ended 30 September 2021.

Purchasebacks
In whole, 2,106,208 shares (nominal worth £21,062) have been repurchased throughout the six month interval ending 31 March 2022 at a price of £1,739,296 (common worth: 82.58 pence per share). As at 15 June 2022, an additional 935,939 shares have been repurchased at a price of £678,633 (common worth of 72.51 pence per share).

Share worth low cost
The Firm goals to enhance liquidity and to take care of a reduction of roughly 5 per cent. to the final revealed NAV per share (as measured towards the mid-price) by making secondary market purchases of its shares in accordance with parameters set by the Board).

We continued to function the low cost management and administration of share liquidity coverage successfully throughout the interval. The Firm has 1 and 5 yr common share worth reductions of 4.57% and 6.02% respectively.

The share worth low cost as at 31 March 2022 was 3.09% in comparison with 5.00% at 30 September 2021. The interval finish valuation overview led to decreases within the valuation of a number of non-public corporations and, due to this fact, a small lower within the interval finish NAV per share relative to the beforehand revealed NAV per share. In consequence, the low cost reported at 31 March 2022 was decrease than that reported on the yr finish.  

As at 16 June 2022 the low cost to NAV is 4.7% of the final revealed NAV per share.

Provide for subscription
The Administrators of the Firm introduced on 2 September 2021 the launch of a proposal for subscription for shares to lift as much as £20 million, along with an over-allotment facility of as much as an additional £20 million. On 22 September 2021, the Firm introduced it had obtained legitimate functions in extra of £17 million and due to this fact meant to utilise the £20 million over-allotment facility.

On 22 October 2021, the Firm introduced it had obtained legitimate functions in respect of the total £20 million over-allotment facility and due to this fact the supply for subscription was closed to additional functions.

The supply resulted in gross funds being obtained of £40.0 million and the difficulty of 41.6 million shares.

Intention to launch a proposal for subscription
On 9 June 2022, the Firm introduced its intention to launch a proposal for subscription of latest strange shares in or round September 2022. It’s anticipated that the Firm will search to lift at least £20 million underneath the supply. Full particulars can be set out in a prospectus to be revealed by the Firm in reference to the supply. An additional announcement can be made upon the supply’s launch.

Value effectivity
Your Board opinions prices incurred by the Firm frequently and is targeted on sustaining a aggressive ongoing expenses ratio. The interval finish ongoing expenses ratio was 2.10% when calculated in accordance with the AIC’s “Ongoing Prices” methodology. This compares with the 30 September 2021 ratio of two.12%.

Board composition
Ashton Bradbury retired from his function as non-executive director on the Annual Common Assembly in February 2022. We’re grateful to Ashton for his help and recommendation since becoming a member of the Board in Might 2018. His contribution, dedication and smart counsel each to the Board and the Firm has been tremendously appreciated and valued. The Board needs Ashton all the most effective for the long run.

With impact from 1st June 2022, the Board is delighted to report the appointments of Megan McCracken and Busola Sodeinde as impartial non-executive administrators of the Firm. Megan brings cross sector information from her government profession and insights from her non government profession gained on monetary providers and digital boards from FTSE 250 to smaller, excessive development companies. Busola brings important regulatory and governance expertise from her operational and strategic management roles in monetary providers and a eager curiosity and involvement in entrepreneurial enterprises. Each Megan and Busola have a powerful concentrate on and fervour for environmental, social and governance points and the Board is trying ahead to incorporating their variety of thought and method in its work to your Firm.

Shareholder occasion
Each your Board and the Funding Supervisor are eager to enhance interplay with our shareholders. On 24 November 2021, following sturdy curiosity from shareholders, the Firm held an in-person shareholder occasion at Everyman Cinema, Broadgate, Metropolis of London. The occasion included displays from the Funding Supervisor’s VCT workforce, a number of portfolio corporations and concluded with the screening of a characteristic movie.

Digital communications
As ever, we’re respectfully asking shareholders to choose into digital communications as we proceed to search for financial savings in our printing and manufacturing prices and to scale back our environmental footprint. In case you are interested by making the transition, please electronic mail us at aimvct@canaccord.com and we’ll organize for the type of election to be despatched to you by Equiniti, the Firm’s registrar.

On an identical be aware, we might even be grateful if shareholders would contemplate updating their dividend fee desire from cheque to financial institution switch, serving to us to additional scale back prices and paper utilization. Cheques are extremely prone to fraud and cheque fraud is likely one of the most typical types of monetary crime. It’s changing into more and more tough to deposit cheques safely with the rising variety of small department closures and expenses could apply to re-issue misplaced or expired cheques.

According to our want to encourage using digital communications and the observe of many corporations, with impact from the interim outcomes to be revealed in 2023, the Firm will not print and distribute Interim Reviews to shareholders.  The interim outcomes will proceed to be accessible for obtain on our web site https://www.hargreaveaimvcts.co.uk and a abstract of the outcomes can be revealed by way of a Regulatory Info Service on the London Inventory Trade.

We’re happy to verify that, with impact from the interim dividend payable in July 2022, digital tax vouchers can be issued rather than paper tax vouchers to these shareholders who’ve opted in to digital communications and registered with Equiniti’s Shareview system.

Regulatory replace
There have been no main adjustments to VCT laws throughout the interval underneath overview.

VCT standing

I’m happy to report that we proceed to carry out effectively towards the necessities of the laws, the interval finish funding check was 85.63% (2021: 95.23%) towards an 80% requirement when measured utilizing HMRC’s methodology. The Firm efficiently met the 30% check for funds raised within the 2021 monetary yr and glad all different assessments related to its standing as a Enterprise Capital Belief.

Key info doc
In accordance with the EU’s Packaged retail funding and insurance coverage merchandise (PRIIPs) rules, the Firm’s Key Info Doc (KID) is revealed on the Firm’s web site at
https://www.hargreaveaimvcts.co.uk.

Buyers’ consideration is drawn to the March 2022 coverage assertion revealed by the FCA in relation to amendments to the KID produced by VCTs in accordance with UK PRIIPs Legal guidelines. The coverage addresses considerations that the present methodology for calculating the Abstract Threat Indicator (SRI) leads to an inappropriately low SRI being utilized for VCTs and now mandates that KIDs issued by VCTs have to be assigned an SRI of no decrease than 6. The coverage assertion additionally replaces the necessities and methodologies for presentation of efficiency eventualities within the KID with a requirement for narrative info to be supplied. The handbook guidelines and Regulatory Technical Customary got here into drive on 25 March 2022, with a transitional interval which can finish on 31 December 2022.

The 19 April 2022 KID has been ready utilizing the outgoing methodology prescribed within the PRIIPS regulation.

Threat overview
Your Board has reviewed the dangers going through the Firm and additional element might be discovered within the principal and rising dangers and uncertainties part throughout the half yr report.

Outlook

Though it’s tough to foresee a big enchancment within the financial outlook within the short-term with out an surprising cessation of hostilities in Ukraine, many corporations will proceed to report development within the yr forward, presumably at ranges which can be decrease than presently forecast. As a enterprise capital fund, we’re investing in rising corporations which can be typically on their very own distinctive journeys that don’t require excessive ranges of GDP development to help the adoption of their services or products.

The funding portfolio comprises some early stage excessive threat development corporations. Inevitably, a few of these will wrestle. To the extent that we will, we mitigate this by the cautious curation of a portfolio of more and more mature corporations. Intensive diversification limits firm particular threat in order that, when errors are made or exogenous dangers intervene, the impression is painful however contained.

Wanting forward, recessionary or close to recessionary environments have beforehand yielded some attention-grabbing funding alternatives in attractively valued corporations. As all the time, we stay effectively positioned to capitalize on those who meet our funding standards.  

I stay up for reporting to you additional on the VCT’s efficiency in six months’ time.

David Brock

Chairman

Date: 17 June 2022

Funding Supervisor’s report

Introduction
This report covers the primary half of the 2021/22 monetary yr, 1 October 2021 to 31 March 2022. The Funding Supervisor’s report comprises references to actions within the NAV per share and NAV whole return per share for the interval. Actions within the NAV per share don’t essentially mirror the earnings per share whole return reported within the accounts and elsewhere, which convey the revenue after tax of the Firm throughout the reported interval as a perform of the weighted common variety of shares in difficulty for the interval.

Funding efficiency measures contained on this report are calculated on a pence per share foundation and embrace realised and unrealised beneficial properties and losses.

Funding report
Though sturdy ranges of UK financial development and excessive ranges of employment made for a optimistic backdrop within the autumn, it turned more and more obvious that points with labour market liquidity, provide chain disruption and rising enter costs have been weighing on company earnings and more likely to stay an element deep into 2022. The emergence of the Omicron variant added additional draw back threat in the direction of the top of the primary quarter; nonetheless, proof shortly emerged that the impression was more likely to be much less profound than initially feared, permitting markets to maneuver greater because the yr drew to an in depth.

The markets turned more and more tough by the second quarter with the conflict in Ukraine additional undermining the macro-economic outlook and including a brand new and deeply disturbing dimension to the geopolitical overlay. Commodity costs soared, including to the tough inflationary atmosphere that central banks have been already struggling to include. Within the UK, 12-month Shopper Worth Inflation (CPI) reached 7.0% in March 2022. The Financial institution of England is presently forecasting CPI to peak at barely above 11% in late 2022, earlier than returning to its 2% goal within the medium time period.

Reflecting the deteriorating outlook for inflation, the Financial institution of England elevated the bottom charge from 0.1% to 0.75% within the interval and to 1.25% submit interval finish because it began to unwind the historic stage of financial stimulus to the UK financial system.

Arguably, extra related is the very substantial change in financial coverage underway within the US, which weighed closely on US development shares and roiled fairness markets globally. Responding to Federal Open Market Committee (FOMC) steering, traders have shortly reset their outlook for rates of interest within the US, with US 10-year actual yields turning optimistic for the primary time in additional than 2 years. A shock GDP contraction within the US within the 3 months to 31 March 2022 is seen by many as additional proof {that a} slowdown in US is underway, as recommended by an inversion of the US yield curve.

Larger inflation and continued provide chain disruption is predicted to weigh on the outlook for the UK financial exercise with the Financial institution of England Might 2022 report guiding to GDP development of three.8% in 2022, falling to -0.25% in 2023. Forecasting is rarely simple; nonetheless, given the various uncertainties, it’s affordable to anticipate additional revisions to the outlook.

Shopper confidence within the UK has collapsed to its lowest stage for the reason that monetary disaster with PwC’s Spring 2022 Shopper Sentiment Survey detailing the most important one-year decline in client confidence for the reason that world monetary disaster. It’s unclear how it will impression precise client spending given the buildup of family wealth throughout the pandemic, however it’s at greatest unhelpful. Inside the UK, while many retailers are having to take care of a difficult buying and selling atmosphere, pubs, bars, eating places and experiential leisure proceed to report optimistic buying and selling as customers pivot away from the (over) consumption of products in favour of providers. It’s tough to understand how lengthy it will final given the outlook for family spending on meals, power and different staples.

For these seeking to sketch out a extra optimistic outlook, it’s not unreasonable to postulate that we could quickly hit peak inflation and that the worst could quickly be behind us. Monetarists, who appropriately foresaw that final yr’s inflation wouldn’t be transitory, now level to the speedy tightening of monetary situations and the repricing of assorted asset lessons as proof that central financial institution messaging is having the specified impact. It will likely be attention-grabbing to see how this performs out.

The FTSE 100, typically a laggard amongst the worldwide indices, returned 7.8% within the half yr, benefitting from compositional biases in favour of oil & fuel, mining and banking. This, in flip, helped the FTSE All-Share submit a optimistic 4.7% return. This didn’t carry over to AIM, which has continued to underperform with the FTSE AIM All-Share down -15.8% within the interval as traders rotated away from excessive threat, excessive development corporations in favour of extra liquid shares in bigger, extra established and extra defensive corporations.

Efficiency
Within the six months to 31 March 2022, the unaudited NAV per share decreased from 100.39 pence to 77.13 pence. A particular dividend of two.50 pence and a remaining dividend of three.15 pence have been paid on 29 October 2021 and 10 February 2022 respectively, giving a NAV whole return to traders of -17.61 pence per share, which interprets to a lack of -17.54%. The NAV whole return (dividends reinvested) for the interval was -18.49% in contrast with -15.8% within the FTSE AIM All-Share Index Complete Return and +4.70% within the FTSE All-Share Index Complete Return (additionally calculated on a dividends reinvested foundation).

The Qualifying Investments made a web contribution of -13.43 pence per share while the Non-Qualifying Investments returned -3.08 pence per share. The adjusting stability was the online of working prices and funding earnings. The contribution to NAV efficiency is break up out in additional element beneath.

Bidstack was the highest performing funding (+122.9%, +0.81 pence per share) having signed quite a lot of key partnerships over the interval, together with a 2-year partnership with digital media platform Azerion and a multi-year cope with a number one world video games writer. In consequence, the corporate has secured a minimal of $30 million assured promoting spend over the following 2 years, which underpins their forecasts.

On 9 December 2021, CloudCall (+43.0%, +0.27 pence per share), a software program and built-in communications enterprise, introduced a advisable all money supply by a personal fairness backed funding firm. The 81.5 pence per share supply worth valued the corporate at £40 million. The acquisition accomplished in January 2022.

The phased leisure of journey restrictions allowed AirPortr (+100%, +0.20 pence per share) to renew operations at London Heathrow and Geneva airport. The corporate has formidable development plans and is progressing discussions with industrial companions.

A robust UK property market helped The Property Franchise Group (+25.7%, +0.09 pence per share) to report natural income development of 26% in 2021. Reported income, which included a maiden contribution from Hunters, grew by +118% to £24 million. Adjusted revenue earlier than tax grew strongly too and the corporate stays extremely money generative. Though property gross sales are anticipated to normalize again to 2019 ranges in 2022, the sturdy outlook for the lettings market underpins the corporate’s outlook.

BiVictrix (+22.2%, +0.09 pence per share), a UK-based biopharma firm targeted on the event of novel most cancers therapies, introduced the enlargement of its therapeutic pipeline with two extra programmes getting into the early levels of growth.

Expertise and healthcare shares have been underneath strain throughout the market. This variation of sentiment was the most important issue within the derating witnessed by quite a lot of the portfolio corporations and probably the most important detractor to efficiency over the half yr.

Polarean (-36.9%, -1.07 pence per share) introduced in early October that the FDA didn’t approve the brand new drug software for its drug-device mixture product. The problems have been largely associated to manufacturing, and the corporate has resubmitted its new drug software to the FDA in response. The brand new overview is predicted to ship a dedication by 30 September 2022. Within the meantime, the corporate has continued to safe a small variety of analysis unit orders and the stability sheet stays sturdy.

Shares in Maxcyte (-40.0%, -1.02 pence per share) have been weak, according to the devaluation seen in US healthcare friends. The corporate continued to make sturdy progress in 2021 with full yr outcomes according to expectations, together with income development of 30% to $33.9 million and an EBITDA lack of $11.5 million. The pipeline of potential milestones grew by 32% to $1.25 billion throughout 15 agreements. Steerage for 2022 was barely forward of expectations and, in a submit interval finish replace, the corporate elevated its income steering for 2022. The stability sheet stays very sturdy with a money place of $255 million.

Ideagen (-32.4%, -1.00 pence per share) reported good development in its interim outcomes, in addition to asserting the acquisition of MailManager, thereby persevering with the execution of its profitable purchase and construct technique. Submit interval finish, the corporate introduced a advisable money supply from non-public fairness at 350 pence per share. If the deal completes, the sale would be the greatest exit (in worth phrases) from the portfolio and realise a acquire of 15x ebook price.

Studying Applied sciences Group (-24.7%, -0.91 pence per share) accomplished the acquisition of GP Methods in October, leading to an enlarged firm with pro-forma revenues of £500 million. The corporate revealed its FY21 preliminary outcomes submit interval finish. The outcomes have been marginally forward of expectations and confirmed a powerful begin to FY22.

Blackbird (-54.4%, -0.85 pence per share), a cloud video enhancing and publishing platform, steadily declined all through interval. Though the corporate reported a 37% improve in revenues to £2.1 million in FY21 and a 93% improve in its order ebook, the progress was inadequate to supply elementary help to the valuation within the absence of any dealer forecasts. The corporate is effectively funded having secured a further £8.0 million from traders in December 2021. The corporate reported yr finish web money of £12.8 million.

Inside the qualifying portfolio, we exited Cloudcall by a takeover, and bought our investments in Reneuron, KRM 22, Mirriad Promoting and Synairgen following intervals of poor efficiency. We additionally bought the funding in Vertu motors in anticipation of a deteriorating provide chain atmosphere and important structural adjustments to the automotive retail market.

Inside the non-qualifying portfolio, we bought investments in James Fisher, Halma, Liontrust, Spirax Sarco and XP Energy. Apart from James Fisher, which continued to report disappointing information, the disposals have been made in response to the growing threat atmosphere.

Portfolio construction
The VCT is comfortably by the HMRC outlined funding check and ended the interval at 85.63% invested as measured by the HMRC funding check. By market worth, the VCT had a 69.4% weighting to Qualifying Investments.

Qualifying Funding exercise was comparatively muted within the half yr with £8.6 million invested into 6 qualifying AIM corporations, together with three new AIM investments and three follow-on investments.

According to the funding coverage, we made investments within the Marlborough Particular Conditions Fund as a short lived residence for the fundraising proceeds. Our funding within the Marlborough Particular Conditions Fund at first and finish of interval was comparatively secure, rising from 1.6% to 2.1% (regardless of an intra-period rise and subsequent fall submit the fundraising). The non-qualifying portfolio lowered from 11.2% to 10.4%. Money elevated from 11.4% to 18.5% of web belongings.

The HMRC funding assessments are set out in Chapter 3 of Half 6 Revenue Tax Act 2007, which needs to be learn along with this Funding Supervisor’s report. Funds raised by VCTs are first included within the funding assessments from the beginning of the accounting interval containing the third anniversary of the date on which the funds have been raised. Due to this fact, the allocation to Qualifying Investments as outlined by the laws might be completely different to the portfolio weighting as measured by market worth relative to the online belongings of the VCT.

Submit interval finish replace

At 10 June 2022, the FTSE AIM All-Share Complete Return Index had declined by 8.5% for the reason that interval finish, while the
FTSE All-Share Complete Return Index had declined by 2.6%. The Firm’s NAV has fallen by 5.8% to
72.68 pence (10 June 2022).

As of 16 June 2022, the share worth of 69.25 pence represented a reduction of 4.7% to the final revealed web asset worth per share.

For additional info please contact:

Oliver Bedford
Lead Supervisor

Date: 17 June 2022

Hargreave Hale AIM VCT plc
Talisman Home
Boardmans Approach
Blackpool
FY4 5FY
0207 523 4837
aimvct@canaccord.com         

Investment portfolio abstract
As at 31 March 2022

Qualifying Investments Internet Property % Value £000 Cumulative motion in worth £000 Valuation £000 Market COI(1)
Qualifying Investments            
SCA Investments Ltd (Gousto) 6.91 2,484 11,779 14,263 Unlisted Sure
Studying Applied sciences Group plc 3.53 2,238 5,057 7,295 AIM Sure
Ideagen plc 2.66 1,992 3,507 5,499 AIM Sure
Zoo Digital Group plc 2.60 2,266 3,093 5,359 AIM Sure
Ilika plc 2.54 1,636 3,616 5,252 AIM No
Floor Transforms plc 2.50 1,744 3,405 5,149 AIM Sure
Polarean Imaging plc 2.24 2,081 2,542 4,623 AIM No
Tortilla Mexican Grill plc 2.00 1,125 3,000 4,125 AIM No
PCI-PAL plc 1.95 2,280 1,734 4,014 AIM Sure
Maxcyte Inc 1.94 1,270 2,735 4,005 AIM Sure
Bidstack Group plc 1.87 1,983 1,884 3,867 AIM No
Eagle Eye Options Group plc 1.86 1,642 2,202 3,844 AIM Sure
XP Manufacturing facility plc 1.81 4,067 (326) 3,741 AIM Sure
Infinity Reliance Ltd (My 1st Years)(2) 1.55 2,500 694 3,194 Unlisted Sure
Beeks Monetary Cloud Group plc 1.51 1,038 2,077 3,115 AIM Sure
Creo Medical Group plc 1.24 2,329 224 2,553 AIM Sure
Aquis Trade plc 1.16 765 1,630 2,395 AIM Sure
Abcam plc 1.11 55 2,230 2,285 AIM No
Verici DX plc 1.10 1,926 336 2,262 AIM Sure
Angle plc 1.09 1,158 1,091 2,249 AIM No
C4X Discovery Holdings plc 1.05 1,550 619 2,169 AIM No
Cohort plc 1.01 619 1,466 2,085 AIM Sure
Diaceutics plc 0.99 1,550 489 2,039 AIM Sure
Velocys plc 0.97 2,220 (208) 2,012 AIM No
AnimalCare Group plc 0.93 720 1,200 1,920 AIM Sure
Blackbird plc 0.92 615 1,291 1,906 AIM Sure
Zappar Ltd 0.91 1,600 276 1,876 Unlisted No
Eneraqua Applied sciences plc 0.90 1,955 (92) 1,863 AIM No
Hardide plc 0.90 3,566 (1,710) 1,856 AIM Sure
Craneware plc 0.79 125 1,502 1,627 AIM Sure
Belvoir Group plc 0.75 762 781 1,543 AIM Sure
CentralNic Group plc 0.74 588 931 1,519 AIM Sure
Science in Sport plc 0.66 1,479 (108) 1,371 AIM No
BiVictrix Therapeutics plc 0.64 1,200 120 1,320 AIM No
EKF Diagnostics Holdings plc 0.63 565 731 1,296 AIM Sure
Eden Analysis plc 0.60 1,355 (113) 1,242 AIM No
Arecor Therapeutics plc 0.60 712 517 1,229 AIM No
Instem plc 0.59 297 927 1,224 AIM Sure
Crossword Cybersecurity plc 0.58 1,289 (102) 1,187 AIM Sure
Clever Ultrasound Group plc 0.57 1,150 31 1,181 AIM No
The Property Franchise Group plc 0.56 377 777 1,154 AIM Sure
Kidly Ltd 0.56 1,150 1,150 Unlisted No
Idox plc 0.55 135 992 1,127 AIM Sure
e-therapeutics plc 0.50 500 529 1,029 AIM No
OneMedia iP Group plc 0.49 1,141 (123) 1,018 AIM Sure
Crimson Tide plc 0.43 1,260 (378) 882 AIM Sure
Strip Tinning Holdings plc 0.41 1,054 (199) 855 AIM No
Quixant plc 0.41 1,209 (357) 852 AIM No
Skillcast Group plc 0.41 1,570 (721) 849 AIM No
Equals Group plc 0.37 750 21 771 AIM Sure
Globaldata plc 0.33 173 498 671 AIM Sure
ULS Expertise plc 0.31 770 (122) 648 AIM Sure
In The Fashion Group plc 0.30 1,667 (1,042) 625 AIM No
Tristel plc 0.30 543 77 620 AIM No
Intercede Group plc 0.30 305 311 616 AIM Sure
Out In Collective Ltd 0.27 1,749 (1,187) 562 Unlisted No
AirPortr Applied sciences Ltd(2) 0.26 1,888 (1,359) 529 Unlisted No
Everyman Media Group plc 0.25 600 (80) 520 AIM Sure
Trellus Well being Plc 0.25 1,074 (564) 510 AIM Sure
K3 Enterprise Expertise Group plc 0.22 270 186 456 AIM Sure
Faron Prescription drugs Oy 0.21 1,374 (934) 440 AIM No
Yourgene Well being plc 0.20 521 (101) 420 AIM No
Gfinity plc 0.20 2,026 (1,609) 417 AIM Sure
Rosslyn Information Applied sciences plc 0.19 750 (360) 390 AIM Sure
Fusion Antibodies plc 0.19 624 (242) 382 AIM No
DP Poland plc 0.16 1,390 (1,060) 330 AIM Sure
Diurnal Group plc 0.15 672 (368) 304 AIM No
Renalytix AI plc 0.09 82 100 182 AIM Sure
Trakm8 Holdings plc 0.08 486 (325) 161 AIM No
MYCELX Applied sciences Company 0.06 361 (243) 118 AIM Sure
Osirium Applied sciences plc 0.02 858 (820) 38 AIM No
Sincere Brew Ltd(2) 2,800 (2,800) Unlisted No
Laundrapp Ltd(2) 2,450 (2,450) Unlisted No
Mporium Group plc 33 (33) Unlisted No
Flowgroup plc 26 (26) Unlisted No
Infoserve Group plc(3) Unlisted No
Complete – fairness Qualifying Investments            67.93        93,134          47,046 140,180    
             
Qualifying fastened earnings investments            
Kidly Ltd (mortgage notes) 0.84 1,350 385 1,735 Unlisted No
Osirium Applied sciences plc (mortgage notes) 0.54 800 311 1,111 Unlisted No
Sincere Brew Ltd (mortgage notes) 0.07 300 (150) 150 Unlisted No
             
Complete qualifying fastened earnings investments             1.45 2,450 546 2,996    
             
Complete Qualifying Investments 69.38 95,584 47,592 143,176    
             
Non-Qualifying Investments Internet Property % Value £000 Cumulative motion in worth £000 Valuation £000 Market COI(1)
             
Marlborough Particular Conditions Fund 2.06 4,610 (352) 4,258 Unlisted  
Complete unit trusts            2.06           4,610             (352) 4,258    
             
Watches of Switzerland Group plc 1.00 1,760 293 2,053 Foremost Sure
Hilton Meals Group plc 0.72 1,262 226 1,488 Foremost Sure
SThree plc 0.67 1,687 (302) 1,385 Foremost Sure
Howden Joinery Group plc 0.67 1,391 (9) 1,382 Foremost Sure
Bytes Expertise Group plc 0.67 842 533 1,375 Foremost Sure
Glencore plc 0.65 1,132 218 1,350 Foremost No
Future plc 0.63 599 701 1,300 Foremost Sure
Trifast Group plc 0.55 1,318 (188) 1,130 Foremost Sure
JD Sports activities Style plc 0.49 1,318 (317) 1,001 Foremost Sure
WH Smith plc 0.43 948 (58) 890 Foremost Sure
Bodycote plc 0.41 990 (136) 854 Foremost Sure
NCC Group plc 0.39 985 (182) 803 Foremost Sure
Workspace Group plc 0.38 1,025 (238) 787 Foremost Sure
Shaftesbury plc 0.38 761 23 784 Foremost No
Rotork plc 0.33 737 (52) 685 Foremost No
Hollywood Bowl Group plc 0.33 797 (119) 678 Foremost Sure
S4 Capital plc 0.31 431 216 647 Foremost Sure
On the Seashore Group plc 0.26 868 (340) 528 Foremost No
Wickes Group plc 0.22 585 (124) 461 Foremost Sure
Tortilla Mexican Grill plc 0.22 161 288 449 AIM Sure
Chemring Group plc 0.17 358 (10) 348 Foremost Sure
Cohort plc 0.16 271 68 339 AIM No
BAE Methods plc 0.16 346 (9) 337 Foremost No
Seraphine Group plc 0.15 1,853 (1,545) 308 Foremost Sure
MYCELX Applied sciences Company 0.07 298 (161) 137 AIM No
Genagro Ltd(4) Unlisted Sure
             
Complete – equity Non-Qualifying Investments           10.42 22,723            (1,224)         21,499    
             
Complete – Non-Qualifying Investments            12.48         27,333            (1,576)      25,757    
             
Complete investments        81.86 122,917 46,016 168,933    
Money at financial institution           18.45     38,082    
Prepayments, accruals (0.31)     (643)    
Internet belongings 100.00     206,372    

(1)   COI – Co-investments with different funds managed by the Funding Supervisor at 31 March 2022.

(2)   Totally different lessons of shares held in unlisted corporations throughout the portfolio have been aggregated.

(3)   Impaired absolutely by the revenue and loss account and due to this fact exhibits a zero price.

(4)   Firm awaiting liquidation.

The investments listed beneath are both listed, headquartered or registered exterior the UK:

  Listed Headquartered Registered
Listed Investments:      
Abcam plc UK/USA UK UK
Bytes Expertise Group plc UK/South Africa UK UK
Crimson Tide UK/Republic of Eire UK UK
Craneware plc UK UK/USA UK
Faron Prescription drugs Oy UK/Finland Finland Finland
Glencore plc UK/South Africa Switzerland Switzerland
Maxcyte Inc UK/USA USA USA
Mycelx Applied sciences Company plc UK USA USA
Polarean Imaging plc UK USA UK
Renalytix AI plc UK/USA USA UK
Trellus Well being plc UK UK/USA UK
Verici DX plc UK UK/USA UK
       
Unlisted non-public corporations:      
Genagro Ltd(1) UK Jersey

(1)   Firm awaiting liquidation.

  

Top ten investments

As at 31 March 2022 (by market value)
The highest ten investments are proven beneath. Every funding is valued by reference to the bid worth, or, within the case of unquoted corporations, the IPEV pointers utilizing a number of valuation methods in line with the character, information and circumstances of the funding. Forecasts, the place given, are drawn from a mixture of dealer analysis and/or Bloomberg consensus forecasts and exclude amortisation, share based mostly funds and distinctive objects. Forecasts are in relation to a interval finish for which the corporate outcomes are but to be launched. Printed accounts are used for personal corporations or public corporations with no revealed dealer forecasts. The web asset figures and web money values are from revealed accounts generally.

SCA Investments Ltd (Gousto)   Unquoted
Funding date July 2017 Outcomes for the yr to December 2021
Fairness held 1.24%(1) Turnover (£’000) 315,281
Av. Buy Worth 3711.0p (Loss) earlier than tax (£’000) (19,984)
Value (£’000) 2,484 Internet money December 2021 (£’000) 80,117
Valuation (£’000) 14,263 Internet belongings December 2021 (£’000) 176,242
Revenue recognised in interval (£) Voting rights held 1.31%
(1) Totally diluted
Firm description
Based in February 2012, Gousto is an e-commerce firm providing recipe equipment packing containers which embrace contemporary elements for step-by-step chef designed recipes to be made at residence. Consumers choose meals from a wide range of choices on Gousto’s e-commerce platform.
Studying Applied sciences Group plc   Share Worth: 162.10p
Funding date November 2014 Forecasts for the yr to December 2022
Fairness held 0.57% Turnover (£’000) 531,000
Av. Buy Worth 49.7p Revenue earlier than tax (£’000) 83,600
Value (£’000) 2,238 Internet (debt) December 2021 (£’000) (141,412)
Valuation (£’000) 7,295 Internet belongings December 2021 (£’000) 371,338
Firm description
Studying Applied sciences Group offers office digital studying and expertise administration software program and providers to company and authorities shoppers. The group presents end-to-end studying and expertise options starting from strategic consultancy, by a spread of content material and platform options to analytical insights that allow company and authorities shoppers to satisfy their efficiency goals.
Ideagen plc   Share Worth: 213.0p
Funding date December 2014 Forecasts for the yr to April 2022
Fairness held 0.88% Turnover (£’000) 84,600
Av. Buy Worth 77.2p Revenue earlier than tax (£’000) 22,900
Value (£’000) 1,992 Internet money October 2021 (£’000) 4,427
Valuation (£’000) 5,499 Internet belongings October 2021 (£’000) 134,214
Firm description
Ideagen is a provider of compliance-based info administration software program with operations within the UK and the US. The corporate specialises in enterprise governance, threat and compliance and healthcare options for organisations working inside extremely regulated industries. Ideagen offers full content material lifecycle options that allow organisations to satisfy their regulatory and high quality compliance requirements, serving to them to scale back prices and enhance effectivity.

  

Zoo Digital Group plc   Share Worth: 116.0p
Funding date April 2017 Forecasts for the yr to March 2022
Fairness held 5.23% Turnover ($’000) 70,000
Av. Buy Worth 49.1p Revenue earlier than tax ($’000) 2,400
Value (£’000) 2,266 Internet money September 2021 ($’000) 3,350
Valuation (£’000) 5,359 Internet belongings September 2021 ($’000) 20,507
Firm description
Zoo Digital is a number one supplier of cloud-based dubbing, subtitling, localisation and distribution providers for the worldwide leisure business. Zoo’s shoppers are among the best-known manufacturers on the earth together with main Hollywood studios, world broadcasters and impartial distributors. Zoo’s level of distinction within the market is its growth and use of revolutionary cloud know-how that ensures that content material is localised in any language and delivered to all the most important on-line platforms similar to Amazon, iTunes, Google and Hulu with lowered time to market, greater high quality and decrease prices.
Ilika plc   Share Worth: 142.0p
Funding date February 2014 Forecasts for the yr to April 2022
Fairness held 2.35% Turnover (£’000) 500
Av. Buy Worth 44.2p (Loss) earlier than tax (£’000) (8,200)
Value (£’000) 1,636 Internet money October 2021 (£’000) 26,933
Valuation (£’000) 5,252 Internet belongings October 2021 (£’000) 35,053
Firm description
Ilika is a pioneer in solid-state battery know-how with their revolutionary Stereax micro batteries designed for the Industrial Web of Issues (IoT) and MedTech markets, and their Goliath giant format batteries for the electrical automobile and client electronics markets.
Floor Transforms plc   Share Worth: 52.0p
Funding date March 2016 Forecasts for the yr to December 2022
Fairness held 5.07% Turnover (£’000) 14,500
Av. Buy Worth 17.6p (Loss) earlier than tax (£’000) (100)
Value (£’000) 1,744 Internet money December 2021 (£’000) 11,402
Valuation (£’000) 5,149 Internet belongings December 2021 (£’000) 20,892
Firm description
Floor Transforms is a UK based mostly developer and producer of carbon ceramic brake discs for the automotive and aerospace markets.
Polarean Imaging plc   Share Worth: 65.0p
Funding date April 2020 Forecasts for the yr to December 2022
Fairness held 3.39% Turnover ($’000) 1,500
Av. Buy Worth 29.3p (Loss) earlier than tax ($’000) (17,700)
Value (£’000) 2,081 Internet money December 2021 ($’000) 28,875
Valuation (£’000) 4,623 Internet belongings December 2021 ($’000) 31,738
Firm description
Polarean Imaging specialises in using hyperpolarised Xenon fuel as an imaging agent and has developed gear that allows present Magnetic Resonance Imaging (MRI) methods to realize improved imaging of pulmonary perform. Present investigational makes use of embrace figuring out early diagnoses of respiratory ailments in addition to monitoring development and therapeutic response.
Tortilla Mexican Grill plc (1)   Share Worth: 165.0p
Funding date October 2009 Forecasts for the yr to December 2022
Fairness held 7.17% Turnover (£’000) 62,000
Av. Buy Worth 46.4p Revenue earlier than tax (£’000) 3,880
Value (£’000) 1,286 Internet money January 2022 (£’000) 6,741
Valuation (£’000) 4,574 Internet belongings January 2022 (£’000) 3,867
(1) Mexican Grill floated on AIM on 8 October 2021 and its title has modified to Tortilla Mexican Grill plc.

 

Firm description

Tortilla is the UK’s largest fast-casual Mexican restaurant model, providing a California-style Mexican menu. Based in October 2007, Tortilla operates a multichannel order technique throughout dine in, take away, click on and gather and supply choices. The present property contains 50 Tortilla eating places throughout the UK, 10 websites in Dubai and Saudi Arabia, a cloud kitchen property and unique supply partnership with Deliveroo. Following the acquisition of Chilango Ltd in Might 2022, the corporate additionally operates 8 websites throughout the UK underneath the Chilango model.
PCIPAL plc   Share Worth: 58.0p
Funding date January 2018 Forecasts for the yr to June 2022
Fairness held 10.58% Turnover (£’000) 11,500
Av. Buy Worth 32.9p (Loss) earlier than tax (£’000) (3,100)
Value (£’000) 2,280 Internet money December 2021 (£’000) 5,528
Valuation (£’000) 4,014 Internet belongings December 2021 (£’000) 2,521
Firm description
PCI-PAL plc offers organisations globally with safe cloud fee and information safety options for any enterprise communications atmosphere together with voice, chat, social, electronic mail and speak to centre.
Maxcyte Inc   Share Worth: 534.0p
Funding date March 2016 Forecasts for the yr to December 2022
Fairness held 0.74% Turnover ($’000) 43,800
Av. Buy Worth 169.3p (Loss) earlier than tax ($’000) (19,500)
Value (£’000) 1,270 Internet money December 2021 ($’000) 47,782
Valuation (£’000) 4,005 Internet belongings December 2021 ($’000) 262,897
Firm description
By way of its cell-engineering platform applied sciences, Maxcyte helps convey the promise of next-generation cell and gene-editing therapies to life. The corporate’s know-how is presently being deployed by main drug builders worldwide, together with the entire prime ten world biopharmaceutical corporations.

For additional info please contact:

Oliver Bedford
Lead Supervisor

Hargreave Hale AIM VCT plc
Talisman Home
Boardmans Approach
Blackpool
FY4 5FY
0207 523 4837
aimvct@canaccord.com        
        

Principal dangers and uncertainties

The principal dangers going through the Firm relate to the Firm’s funding actions and embrace enterprise capital belief approval, funding, compliance, operational threat and outsourcing, key personnel and exogenous dangers similar to financial, political, monetary, local weather change and well being threat. Different dangers confronted by the Firm embrace market threat, foreign money threat, rate of interest threat, liquidity threat and credit score threat. These dangers and the best way during which they’re managed are described in additional element within the Firm’s annual report and accounts for the yr ended 30 September 2021.

The Board has recognized the next adjustments to the dangers going through the Firm beforehand disclosed by the Firm’s annual report and accounts for the yr ended 30 September 2021.

Warfare in Ukraine
The conflict in Ukraine presents challenges to the European safety order with financial penalties by restricted entry to sure commodities, disruption to produce chains and impacts on enterprise and client confidence, commerce and funding, employment and financial development throughout the area, together with the UK. Larger commodity costs and provide chain disruption could proceed to help excessive ranges of inflation that require materials will increase in rates of interest within the UK and elsewhere with adverse penalties for financial development and world fairness markets.

Going concern

The Firm’s enterprise actions and the elements affecting its future growth are set out within the Chairman’s assertion and the Funding Supervisor’s report. The Firm’s principal dangers are set out above.

The Board receives common reviews from the supervisor and administrator and opinions the monetary place, efficiency and liquidity of the Firm’s funding portfolio. Income forecasts and expense budgets are ready in the beginning of every monetary yr and efficiency towards plan is reviewed by the Board. Money forecasts are ready and reviewed by the Board as a part of the HMRC funding check compliance monitoring.

The Administrators have an inexpensive expectation that the Firm has enough assets to proceed in operational existence for a interval of no less than twelve months. No materials uncertainties associated to occasions or situations which will solid important doubt concerning the means of the Firm to proceed as a going concern have been recognized by the Administrators. Because of this, they proceed to undertake the going concern foundation in making ready the monetary statements.

On behalf of the Board of Administrators.

David Brock
Chairman

Date: 17 June 2022

  
Different issues

Dividend coverage
The Firm’s dividend coverage is to focus on a tax free dividend yield equal to five% of the yr finish NAV per share. The power to pay dividends relies on the Firm’s accessible distributable reserves and money assets, the Act, the Itemizing Guidelines and the VCT Guidelines. The coverage is non-binding and on the discretion of the Board. Dividend funds could fluctuate from yr to yr in each quantum and timing. The extent of dividend paid every year will depend upon the efficiency of the Firm’s portfolio. In years the place there may be sturdy funding efficiency, the Administrators could contemplate the next dividend fee, together with the fee of particular dividends. In years the place funding efficiency will not be as sturdy, the Administrators could scale back and even pay no dividend.

Low cost management and administration of share liquidity coverage
The Firm goals to enhance liquidity and to take care of a reduction of roughly 5 per cent. to the final revealed NAV per share (as measured towards the mid-price) by making secondary market purchases of its shares in accordance with parameters set by the Board.

This coverage is non-binding and on the discretion of the Board. Its operation is dependent upon a spread of things together with the Firm’s liquidity, shareholder permissions, market situations and compliance with all legal guidelines and rules. These elements could limit the efficient operation of the coverage and forestall the Firm from attaining its goals.

Range
The Board includes three male non-executive administrators and three feminine non-executive administrators with a various vary of expertise, abilities, size of service and backgrounds. The Board considers variety when reviewing Board composition and has made a dedication to contemplate variety when making future appointments. The Board will all the time appoint the most effective particular person for the job. It is not going to discriminate on the grounds of gender, race, ethnicity, faith, sexual orientation, age or bodily means.

Environmental Social and Governance (ESG) Issues
The Board seeks to take care of excessive requirements of conduct with respect to environmental, social and governance points and to conduct the Firm’s affairs responsibly.

The Firm doesn’t have any workers or workplaces and so the Board doesn’t keep any particular insurance policies concerning workers, human rights, social and neighborhood points however does anticipate the Funding Supervisor to contemplate them when fulfilling its function.

The administration of the Firm’s funding portfolio has been delegated to its Funding Supervisor, Hargreave Hale Ltd (buying and selling as Canaccord Genuity Fund Administration). The Firm has not instructed the Funding Supervisor to incorporate or exclude any particular sorts of funding on ESG grounds. Nonetheless, it expects the Funding Supervisor to take account of ESG issues in its funding course of for the choice and ongoing monitoring of underlying investments. The Board has additionally given the Funding Supervisor discretion to train voting rights on resolutions proposed by investee corporations.

The Funding Supervisor continues to develop its method to ESG points.

To minimise the direct impression of its actions the Firm presents digital communications the place acceptable to scale back the amount of paper it makes use of and makes use of 100% recycled paper to print its monetary reviews. Vegetable based mostly inks are used within the printing course of the place applicable.

David Brock
Chairman

Date: 17 June 2022

Statement of administrators’ duties
in respect of the half-yearly monetary report

In accordance with Disclosure Transparency Rule (DTR) 4.2.10, David Brock (Chairman), Oliver Bedford, Angela Henderson, Justin Ward, Megan McCracken and Busola Sodeinde, the Administrators, affirm that to the most effective of their information:

  • The half-yearly monetary outcomes have been ready in accordance with UK GAAP and provides a real and truthful view of the belongings, liabilities, monetary place and revenue of the Firm as at 31 March 2022 as required by DTR 4.2.4;
  • The interim administration report consisting of the Chairman’s assertion, Funding Supervisor’s report, funding portfolio abstract, principal dangers and uncertainties disclosure and notes to the half-yearly report features a truthful overview of the data required by the Monetary Conduct Authority Disclosure and Transparency Guidelines, being;
    • a sign of the vital occasions which have occurred throughout the first six months of the monetary yr and their impression on the condensed set of monetary statements;
    • an outline of the principal dangers and uncertainties for the remaining six months of the yr; and
    • an outline of associated occasion transactions which have taken place within the first six months of the present monetary yr, which will have materially affected the monetary place or efficiency of the Firm throughout that interval and any adjustments within the associated occasion transactions described within the final annual report that would achieve this.

On behalf of the Board of Administrators.

David Brock
Chairman

Date: 17 June 2022

Condensed earnings assertion
for the six month interval to 31 March 2022 (unaudited)

    For the six month interval to For the six month interval to
    31 March 2022 (unaudited) 31 March 2021 (unaudited)
  Word Income Capital Complete Income Capital Complete
    £000 £000 £000 £000 £000 £000
Internet (loss)/acquire on investments held at truthful worth by revenue or loss 5 (43,893) (43,893) 54,987 54,987
Revenue 2 370 370 391 391
    370 (43,893) (43,523) 391 54,987 55,378
Administration charge   (475) (1,425) (1900) (417) (1,252) (1,669)
Different bills   (587) (5) (592) (498) (12) (510)
    (1,062) (1,430) (2,492) (915) (1,264) (2,179)
(Loss)/revenue on strange actions earlier than taxation   (692) (45,323) (46,015) (524) 53,723 53,199
Taxation        
(Loss)/revenue after taxation   (692) (45,323) (46,015) (524) 53,723 53,199
Fundamental and diluted (loss)/earnings per share 3 (0.28) (18.46) (18.74) (0.25)p 25.86p 25.61p

The entire columns of those statements are the earnings statements of the Firm. All income and capital objects within the above statements derive from persevering with operations. There was no different complete earnings aside from the earnings/losses for the six-month intervals as set out above. The accompanying notes are an integral a part of these monetary statements.

Condensed earnings assertion
for the yr ended 30 September 2021 (audited)

    For the yr to
    30 September 2021 (audited)
  Word Income Capital Complete
    £000 £000 £000
Internet acquire on investments held at truthful worth by revenue or loss 5 71,337 71,337
Revenue 2 894 141 1,035
    894 71,478 72,372
Administration charge   (908) (2,722) (3,630)
Different bills   (850) (21) (871)
    (1,758) (2,743) (4,501)
(Loss)/revenue on strange actions earlier than taxation   (864) 68,735 67,871
Taxation  
(Loss)/revenue after taxation   (864) 68,735 67,871
Fundamental and diluted (loss)/earnings per share 3 (0.39)p 30.84p 30.45p

The entire column of this assertion is the earnings assertion of the Firm. All income and capital objects within the above assertion derive from persevering with operations. There was no different complete earnings aside from the revenue for the yr as set out above. The accompanying notes are an integral a part of these monetary statements.

Condensed stability sheet
as at 31 March 2022 (unaudited)

  Word 31 March 31 March 30 September
    2022 2021 2021
    (unaudited) (unaudited) (audited)
    £000 £000 £000
Mounted belongings        
Investments at truthful worth by revenue or loss 5 168,933 191,016 202,800
         
Present belongings        
Debtors 7 496 197 330
Money at financial institution   38,082 30,457 27,016
    38,578 30,654 27,346
         
Collectors: quantities falling due inside one yr 8 (1,139) (1,030) (1,183)
Internet present belongings   37,439 29,624 26,163
Complete belongings much less present liabilities   206,372 220,640 228,963
         
         
Capital and Reserves        
Known as up share capital   2,675 2,305 2,280
Share premium   92,707 52,691 53,802
Capital redemption reserve   179 122 158
Capital reserve – unrealised   63,852 92,944 102,311
Particular reserve   68,107 91,475 84,004
Capital reserve – realised   (18,297) (17,078) (11,433)
Income reserve   (2,851) (1,819) (2,159)
Complete shareholders’ funds   206,372 220,640 228,963
         
Internet asset worth per share (fundamental and diluted) 4 77.13p 95.71p 100.39p
         

The accompanying notes are an integral a part of these monetary statements.

Condensed assertion of adjustments in fairness
for the six month interval to 31 March 2022 (unaudited)

    Non-distributable reserves Distributable reserves (1)  
    Share Share Capital Capital Particular Capital Income Complete
    capital premium redemption reserve reserve reserve reserve  
        reserve unrealised   realised    
  Word £000 £000 £000 £000 £000 £000 £000 £000
At 1 October 2021   2,280 53,802 158 102,311 84,004 (11,433) (2,159) 228,963
                   
Loss and whole complete earnings for the interval                  
Realised loss on investments 5 (2,161) (2,161)
Unrealised loss on investments 5 (41,732) (41,732)
Administration charge charged to capital   (1,425) (1,425)
Revenue allotted to capital 2
Due diligence funding prices   (5) (5)
Income (loss) after taxation for the interval   (692) (692)
Complete loss after taxation for the interval   (41,732) (3,591) (692) (46,015)
                   
Contributions by and distributions to homeowners                  
Subscription share points 9 406 38,794 39,200
Challenge prices 14 (729) (729)
Share buybacks 9 (21) 21 (1,739) (1,739)
DRIS share points 9 10 840 850
Fairness dividends paid 6 (14,158) (14,158)
Complete contributions by and distributions to homeowners   395 38,905 21 (15,897) 23,424
                   
Different actions                  
Diminution in worth 5 3,273 (3,273)
Complete different actions   3,273 (3,273)
At 31 March 2022   2,675 92,707 179 63,852 68,107 (18,297) (2,851) 206,372

Reserves accessible for distribution are capital reserve realised, particular reserve and income reserve. Complete distributable reserves at 31 March 2022 have been £47.0 million. The accompanying notes are an integral a part of these monetary statements.

(1) The Revenue Taxes Act 2007 restricts distribution of capital from reserves created by the conversion of the share premium account right into a particular (distributable) reserve till the third anniversary of the share allotment that led to the creation of that a part of the share premium account. As at 31 March 2022, not one of the particular reserve was topic to this restriction.

Condensed assertion of adjustments in fairness

for the six month interval to 31 March 2021 (unaudited)

    Non-distributable reserves Distributable reserves (1)  
    Share Share Capital Capital Particular Capital Income Complete  
    capital premium redemption reserve reserve reserve reserve    
        reserve unrealised   realised      
  Word £000 £000 £000 £000 £000 £000 £000 £000  
At 1 October 2020   1,995 24,238 91 46,580 99,785 (24,437) (1,295) 146,957  
                     
Revenue/(loss) and whole complete earnings for the interval                    
Realised beneficial properties on investments 5 8,239 8,239  
Unrealised beneficial properties on investments 5 46,748 46,748  
Administration charge charged to capital   (1,252) (1,252)  
Revenue allotted to capital 2  
Due diligence funding prices   (12) (12)  
Income (loss) after taxation for the interval   (524) (524)  
Complete revenue after taxation for the interval   46,748 6,975 (524) 53,199  
                     
Contributions by and distributions to homeowners                    
Subscription share points   338 28,730 29,068  
Challenge prices   (523) (523)  
Share buybacks   (31) 31 (2,599) (2,599)  
DRIS share points   3 246 249  
Fairness dividends paid   (5,711) (5,711)  
Complete contributions by and distributions to homeowners   310 28,453 31 (8,310) 20,484  
                     
Different actions                    
Diminution in worth   (384) 384  
Complete different actions   (384) 384  
At 31 March 2021   2,305 52,691 122 92,944 91,475 (17,078) (1,819) 220,640  

Reserves accessible for distribution are capital reserve realised, particular reserve and income reserve. Complete distributable reserves at 31 March 2021 have been £72.6 million. The accompanying notes are an integral a part of these monetary statements.

(1) The Revenue Taxes Act 2007 restricts distribution of capital from reserves created by the conversion of the share premium account right into a particular (distributable) reserve till the third anniversary of the share allotment that led to the creation of that a part of the share premium account. As at 31 March 2021, £24.2 million of the particular reserve was topic to this restriction.

Condensed assertion of adjustments in fairness
for the yr ended 30 September 2021 (audited)

 

 

  Non-distributable reserves Distributable reserves (1)  
   

Word

 

Share
Capital

 

Share
Premium

Capital Redemption Reserve Capital
Reserve Unrealised
 

Particular
Reserve

Capital
Reserve Realised
 

Income Reserve

 

Complete

    £000 £000 £000 £000 £000 £000 £000 £000
At 1 October 2020   1,995 24,238 91 46,580 99,785 (24,437) (1,295) 146,957
                   
Revenue and whole complete earnings for the yr                  
Realised beneficial properties on investments 5 13,189 13,189
Unrealised beneficial properties on investments 5 58,148 58,148
Administration charge charged to capital   (2,722) (2,722)
Revenue allotted to capital 2 141 141
Due diligence investments prices   (21) (21)
Income (loss) after taxation for the yr   (864) (864)
Complete revenue after taxation for the yr   58,148 10,587 (864) 67,871
                   
Contributions by and distributions to homeowners                  
Subscription share points   347 29,649 29,996
Challenge prices   (531) (531)
Share buybacks   (67) 67 (6,044) (6,044)
DRIS share points   5 446 451
Fairness dividends paid 6 (9,737) (9,737)
Complete contributions by and distributions to homeowners   285 29,564 67 (15,781) 14,135
                   
Different actions                  
Diminution in worth   (2,417) 2,417
Complete different actions   (2,417) 2,417
At 30 September 2021   2,280 53,802 158 102,311 84,004 (11,433) (2,159) 228,963

Reserves accessible for distribution are capital reserve realised, particular reserve and income reserve. Complete distributable reserves at 30 September 2021 have been £70.4 million. The accompanying notes are an integral a part of these monetary statements.

(1) The Revenue Taxes Act 2007 restricts distribution of capital from reserves created by the conversion of the share premium account right into a particular (distributable) reserve till the third anniversary of the share allotment that led to the creation of that a part of the share premium account. As at 30 September 2021, £24.2 million of the particular reserve was topic to this restriction.

Condensed assertion of money flows
for the six month interval to 31 March 2022 (unaudited)

    31 March 2022 31 March 2021 30 September 2021(1)
  Word (unaudited) (unaudited) (audited)
    £000 £000 £000
Complete (loss)/revenue on strange actions earlier than taxation   (46,015) 53,199 67,871
Realised losses/(beneficial properties) on investments 5 2,161 (8,239) (13,189)
Unrealised losses/(beneficial properties) on investments 5 41,732 (46,748) (58,148)
(Improve) in debtors 7 (166) (24) (157)
(Lower)/improve in collectors 8 (44) 212 365
Non-cash distributions 2 (54) (66) (140)
Internet money (outflow) from working actions   (2,386) (1,666) (3,398)
Buy of investments 5 (22,737) (22,488) (39,618)
Sale of investments 5 12,765 18,432 40,202
Internet money (utilized in)/supplied by investing actions   (9,972) (4,056) 584
Share buybacks 9 (1,739) (2,599) (6,044)
Challenge of share capital 9 39,200 29,068 29,996
Challenge prices 14 (729) (523) (531)
Dividends paid 6 (13,308) (5,462) (9,286)
Internet money supplied by financing actions   23,424 20,484 14,135
Internet improve in money   11,066 14,762 11,321
         
Opening money   27,016 15,695 15,695
Closing money   38,082 30,457 27,016

(1) 30 September 2021 money circulate represents annual outcomes

The accompanying notes are an integral a part of these monetary statements.

Explanatory notes
for the six month interval to 31 March 2022 (unaudited)

Foundation of preparation
The Firm has ready its half-yearly monetary outcomes for the six month interval ending 31 March 2022. The condensed monetary statements have been ready in accordance with UK Typically Accepted Accounting Apply (“UK GAAP”), together with Monetary Reporting Customary 104 (“FRS 104”) and with the Corporations Act 2006 and the Assertion of Really useful Apply for “Monetary Statements of Funding Belief Corporations and Enterprise Capital Trusts” April 2021 (“SORP”).

They don’t embrace all disclosures that might in any other case be required in an entire set of monetary statements and needs to be learn along with the 2021 annual report.

1.   Important accounting insurance policies

Hargreave Hale AIM VCT plc has utilized the identical accounting insurance policies and strategies of computation in its interim condensed monetary statements as in its 2021 annual monetary statements.

Segmental reporting
There may be thought-about to be one working section being funding in fairness and debt securities.

Key judgements and estimates
The preparation of the monetary statements requires the Board to make judgements and estimates that have an effect on the applying of insurance policies and reported quantities of belongings, liabilities, earnings and bills. Key estimation uncertainties primarily relate to the truthful valuation of unquoted investments.

The evaluation of truthful worth will replicate the market situations on the measurement date no matter which valuation method is used.

The IPEV pointers describe a spread of valuation methods, as described within the “monetary devices” part.

The estimates are underneath steady overview with explicit consideration paid to the carrying worth of the investments. The method of estimation can be affected by the dedication of the truthful worth hierarchy described in be aware 5 to the monetary statements.

2.    Revenue

  Six months to 31 March 2022 (unaudited) £000 Six months to 31 March 2021 (unaudited) £000 12 months ended 30 September 2021 (audited) £000
Revenue from investments      
Income:      
Dividend earnings 251 308 686
Mounted earnings curiosity 116(1) 82(2) 204(2)
Curiosity 3 1 4
  370 391 894
Capital:      
Return of capital 67(3)
In-specie dividend 74(4)
  141
       
Complete earnings 370 391 1,035

(1)   The Firm’s accrued fastened curiosity from a convertible mortgage be aware in XP Manufacturing facility plc (£54.0k) was transformed into shares on 2 February 2022.
(2)   The Firm’s accrued fastened curiosity from a convertible mortgage be aware in Oxford Genetics (£66.4k) was transformed into shares. This was triggered by the sale of the corporate to WuXi AppTec.
(3)   Return of capital from Melrose Industries plc funded from the sale of its Nordek Air Administration Division to Madison Industries LLC.
(4)   Dividend in specie shares in Trellus Well being plc to facilitate the spin-out of the corporate’s shareholding to EKF Diagnostics Holdings Plc shareholders.

3.    Earnings per share whole return (fundamental and diluted)

  Six months to 31 March 2022 (unaudited) Six months to 31 March 2021 (unaudited) 12 months ended 30 September 2021 (audited)
Achieve/(loss) per share (18.74p) 25.61p 30.45p
Internet acquire/(loss) for the interval (£46,014,820) £53,199,049 £67,870,686
Weighted common variety of shares 245,572,062 207,716,466 222,903,748

4.    Internet asset worth per share

  Six months to 31 March 2022 (unaudited) Six months to 31 March 2021 (unaudited) 12 months ended 30 September 2021 (audited)
Internet asset worth per share 77.13p 95.71p 100.39p
Internet belongings £206,371,986 £220,639,512 £228,962,940
Variety of shares in difficulty at interval finish 267,559,694 230,520,864 228,079,956

5.    Investments

  Listed Unlisted Complete   Complete Complete
  Investments Investments(1) Investments   Investments Investments
  31-Mar-22 31-Mar-22 31-Mar-22   31-Mar-21 30-Sep-21
  £000 £000 £000   £000 £000
Opening valuation 163,928 38,872 202,800   131,907 131,907
Re-classification adjustment 5,901(2) (5,901)(2)  
Purchases at price 14,402 8,335 22,737   22,488 39,618
Non-cash distribution 54(3) 54   66(4) 140(4)(5)
Sale proceeds (6,852) (5,913) (12,765)   (18,432) (40,202)
Realised (losses)/beneficial properties (1,401) (760) (2,161) (6)   8,239(6) 13,189(6)
Unrealised (losses)/beneficial properties (35,927) (5,805) (41,732)(6)   46,748(6) 58,148(6)
Closing valuation 140,105 28,828 168,933   191,016 202,800
Value at interval finish 99,177 23,740 122,917   114,669 115,051
Unrealised beneficial properties at interval finish 50,380 13,472 63,852   92,943 102,311
Diminution in worth at interval finish(7) (9,452) (8,384) (17,836)   (16,596) (14,562)
Valuation at interval finish 140,105 28,828 168,933   191,016 202,800

(1)  Consists of £4.3 million invested within the Marlborough Particular Conditions Fund.
(2)  Consists of Mexican Grill (£4.5m) listed on the London Inventory Trade on 8 October 2021 and conversion of the XP Manufacturing facility mortgage be aware into listed fairness shares on 2 February 2022.
(3)  The Firm elected to transform accrued fastened curiosity (£54.0k) from the convertible mortgage be aware in XP Manufacturing facility plc into shares on 2 February 2022.

(4)  The Firm elected to transform accrued fastened curiosity (£66.4k) from the convertible mortgage be aware in Oxford Genetics into shares. This was triggered by the sale of the corporate to WuXi AppTec.
(5)  Dividend in specie shares in Trellus Well being plc (£73.8k) to facilitate the spin-out of the corporate’s shareholding to EKF Diagnostics Holdings Plc shareholders.
(6)  The web acquire/(loss) on investments held at truthful worth by revenue or loss within the earnings assertion is the sum of the realised (losses)/beneficial properties and unrealised beneficial properties/(losses) for the interval as detailed within the desk above.
(7)  Diminishments of £6,026,620 have been made within the six month interval ending 31 March 2022. As soon as adjusted for disposals of £1,782,073 and diminishment reversals of £971,333, diminishments on the interval finish are £17,835,680.

Monetary Devices – truthful worth measurement hierarchy
The desk beneath units out truthful worth measurements utilizing FRS102 (appendix to part 2 truthful worth measurement) truthful worth hierarchy. The Firm has one class of belongings, being at truthful worth by revenue or loss.

•        Stage 1: Quoted costs (unadjusted) in lively markets for an identical belongings or liabilities
•   Stage 2: Inputs aside from quoted costs included inside stage 1 which can be observable for the asset or legal responsibility, both straight (i.e. as costs) or not directly (i.e. derived from costs)
•        Stage 3: Valued by reference to valuation methods utilizing inputs that aren’t based mostly on observable market information.

  Stage 1 Investments
£’000
Stage 2
Investments
£’000
Stage 3
Investments
£’000
Complete
Investments
£’000
Six months ended 31 March 2022 (unaudited) 144,368 24,570 168,933
12 months ended 30 September 2021 (audited) 167,629 35,171 202,800
Six months ended 31 March 2021 (unaudited) 160,947 30,069 191,016

The next desk units out the idea of valuation for the fabric Stage 3 investments and people the place the worth has modified throughout the interval, held throughout the portfolio at 31 March 2022.

Stage 3 Unquoted Investments
SCA Investments Ltd (Gousto)

 

The truthful worth of the funding decreased within the interval. EV/EBITDA peer group ratios and discounted money circulate evaluation have been used to help the valuation.
Sincere Brew Ltd

 

The truthful worth of the funding was lowered following a tough buying and selling interval and a downgrade to its income forecasts for FY22. In June 2022, the Firm was positioned into administration as a way to full a sale of its belongings.
Kidly Ltd The corporate delivered yr over yr development in FY22 regardless of provide chain challenges and elevated advertising prices. The corporate is forecasting additional development in FY23. The truthful worth of the fairness funding, which was reviewed towards EV/Gross sales multiples throughout a peer group of listed corporations, was unchanged. The truthful worth of the convertible mortgage be aware funding decreased following a discount within the worth of the conversion possibility. The conversion possibility is valued utilizing the Black-Scholes possibility pricing mannequin.
Infinity Reliance Ltd (My 1st Years)

 

Though the corporate efficiently resumed buying and selling following the lack of its operational hub to a warehouse fireplace in Might 2021, it subsequently took a extra cautious method to forecasting the restoration of key advertising channels in a difficult retail atmosphere. The truthful worth of the funding was lowered to replicate the revisions to the corporate’s forecast for FY22 and was set close to EV/Gross sales multiples throughout a peer group of listed corporations, lots of which had fallen in worth throughout the interval.
Out In Collective Ltd

 

The truthful worth of the funding was lowered following beneath funds development and revisions to the deliberate rollout of latest cloud service kitchens. The valuation was lowered and set close to varied potential eventualities, together with the potential liquidation of the corporate and a return of capital to shareholders.
Portr Ltd The corporate resumed operations in July 2021 following the relief of UK journey restrictions. The evaluation of truthful worth was elevated and set close to FY24 income projections and utilizing EV/Gross sales multiples throughout a peer group of listed friends.
Zappar Ltd The truthful worth of the funding was lowered. The valuation was set close to monetary projections for FY23 and EV/Gross sales multiples throughout a peer group of listed corporations, lots of which had fallen in worth throughout the interval.
Osirium Applied sciences plc – convertible mortgage be aware The corporate raised new fairness in February 2022 and, in consequence, set a brand new decrease strike worth for the worth of the choice to transform the mortgage be aware into the corporate’s strange shares, which elevated the worth of the choice to transform and, in consequence, the worth of the convertible mortgage be aware. The worth of the conversion possibility was calculated utilizing the Black-Scholes possibility pricing mannequin.

Stage 3 Unquoted Funding disposals

There have been no disposals of unquoted investments within the interval.

Mexican Grill Ltd listed on the London Inventory Trade on 8 October 2021 and adjusted its title to Tortilla Mexican Grill plc. The XP Manufacturing facility plc mortgage be aware held (along with accrued fastened curiosity) was transformed into listed fairness shares on 2 February 2022.

6.    Dividends paid

Abstract of dividends paid within the six months to 31 March 2022 and the monetary yr ending 30 September 2021 are detailed beneath:

  Six months ended 31 March 2022 (unaudited) £’000 12 months ended 30 September 2021 (audited) £’000
Last capital dividend of two.65 pence for the yr ended 30 September 2020 paid on 11 February 2021 5,711
Interim capital dividend of 1.75 pence per share for the half yr ended 31 March 2021 paid on 30 July 2021 4,026
Particular capital dividend of two.50 pence per share paid on 29 October 2021 5,704
Last capital dividend of three.15 pence per share for the yr ended 30 September 2021 paid on 10 February 2022 8,454
Complete 14,158(1) 9,737(2)

(1)   The distinction between whole dividends paid for the interval ending 31 March 2022 and the money circulate assertion is £850,000 which is the quantity of dividends reinvested underneath the DRIS for the interval.
(2)   The distinction between whole dividends paid for the interval ending 30 September 2021 and the money circulate assertion is £451,000 which is the quantity of dividends reinvested underneath the DRIS for the interval.

7.    Debtors

  Six months to 31 March 2022 (unaudited) £000 Six months to 31 March 2021 (unaudited) £000 12 months ended 30 September 2021 (audited) £000
Prepayments and accrued earnings 496 197 330

8.    Collectors: quantities falling due inside one yr

  Six months to 31 March 2022 (unaudited) £000 Six months to 31 March 2021 (unaudited) £000 12 months ended 30 September 2021 (audited) £000
Commerce Collectors 20 1
Accruals and deferred earnings 1,119 1,029 1,183
  1,139 1,030 1,183

9.   Transactions in shares

Buybacks
In whole, the Firm repurchased 2,106,208 shares throughout the six month interval ending 31 March 2022 at a complete price of £1,739,296. The repurchased shares symbolize 0.92% of strange shares in difficulty on 1 October 2021. The acquired shares have been cancelled.

Share points
In whole, the Firm issued 40,633,737 new shares (nominal worth £406,337) by a proposal for subscription throughout the six month interval ending 31 March 2022 elevating web proceeds of £38,471,398.

The Firm additionally issued 952,209 shares underneath the DRIS scheme.

10.   Contingencies, ensures and monetary commitments

There have been no contingencies, ensures or monetary commitments of the Firm at 31 March 2022.

11.   Authorized kind and principal actions

The Firm was integrated and registered in England and Wales on 16 August 2004 underneath the Corporations Act 1985, registered quantity 5206425.

The Firm has been authorized as a Enterprise Capital Belief by HMRC underneath part 259 of the Revenue Taxes Act 2007. The shares of the Firm have been first admitted to the Official Record of the UK Itemizing Authority and buying and selling on the London Inventory Trade on 29 October 2004 and might be discovered underneath the TIDM code “HHV”. The Firm is premium listed.

In frequent with many different VCTs, the Firm revoked its standing as an funding firm as outlined in Part 256 of the Corporations Act 1985 on 23 Might 2006 to facilitate the fee of dividends out of capital earnings.

The Firm’s principal exercise is to spend money on a diversified portfolio of qualifying small UK based mostly corporations, primarily buying and selling on AIM, with a view to producing capital returns and earnings from its portfolio and to make distributions from capital and earnings to shareholders while sustaining its standing as a VCT.

The Firm is registered as a small UK Various Funding Fund Supervisor (AIFM) with a Board comprising of six non-executive administrators, 5 of whom are impartial. Oliver Bedford will not be thought-about impartial as he’s an worker of Hargreave Hale Restricted, the Firm’s Funding Supervisor. Canaccord Genuity Wealth Restricted acts as administrator and custodian and JTC (UK) Restricted present firm secretarial providers to the Firm.

The Board has general duty for the Firm’s affairs together with the dedication of its funding coverage, nonetheless, the Board could train these duties by delegation to Hargreave Hale Restricted, Canaccord Genuity Wealth Restricted and JTC (UK) Restricted because it considers applicable.

The Administrators have managed and proceed to handle the Firm’s affairs in such a way as to adjust to Part 259 of the Revenue Taxes Act 2007.

12.    Cautionary assertion

The outcomes shouldn’t be taken as a information to the outcomes for the monetary interval ending 30 September 2022. This report could include ahead trying statements on the subject of the monetary situation and outcomes of the Firm, that are made within the gentle of present financial and enterprise circumstances. Nothing on this report needs to be thought-about as a revenue forecast.

13.    Publication of non-statutory accounts

The monetary info contained within the 31 March 2022 earnings assertion, stability sheet, assertion of money flows and assertion of adjustments in fairness has not been audited and doesn’t comprise full monetary statements throughout the which means of Part 434 of the Corporations Act 2006. No statutory accounts in respect of any interval after 30 September 2021 have been reported on by the Firm’s auditor.

The comparative figures for the monetary yr ended 30 September 2021 have been extracted from the most recent revealed audited Annual Report and Monetary Statements. These accounts have been reported on by the Firm’s auditor and lodged with the Registrar of Corporations. The report of the auditor was (i) unqualified, (ii) didn’t embrace a reference to any issues to which the auditor drew consideration by means of emphasis with out qualifying their report, and (iii) didn’t include a press release underneath part 498 (2) or (3) of the Corporations Act 2006.

14.   Associated occasion transactions and conflicts of curiosity

The remuneration of the Administrators, who’re key administration personnel of the Firm is disclosed within the desk beneath.

Director Position Charges for the six-month interval ending 31 March 2022
David Brock Chairman £18,000
Oliver Bedford Director £12,875
Angela Henderson Director £14,875
Justin Ward Director £15,625
Ashton Bradbury Director(1) (retired) £9,633

(1)   Ashton Bradbury retired as a director of the Firm on 3 February 2022.

David Brock was a shareholder in and the non-executive Chairman of Sincere Brew Ltd, an investee firm. Throughout the interval David Brock and shut household made additional investments in Sincere Brew Ltd on the identical industrial phrases as impartial third occasion traders. The Board, excluding David Brock, reviewed potential conflicts of curiosity in relation to this matter in accordance with management measures beforehand established to mitigate any conflicts which will come up. In June 2022, the corporate was positioned into administration as a way to full a sale of its belongings.

Transactions with the supervisor

Because the Firm’s Funding Supervisor, Hargreave Hale Restricted (buying and selling as Canaccord Genuity Fund Administration) is a associated occasion to the Firm for the needs of the Itemizing Guidelines. Because the Funding Supervisor and Canaccord Genuity Wealth Restricted (CGWL) are a part of the identical CGWL group, CGWL additionally falls into the definition of associated occasion.

Oliver Bedford, a non-executive director of the Firm can be an worker of the Funding Supervisor which obtained charges of £12,875 for the interval ended 31 March 2022 in respect of his place on the Board (2021: £12,500). Of those charges £6,625 was owed on the interval finish.

CGWL acted as administrator and custodian to the Firm and supplied firm secretarial providers till 15 January 2021 after they stepped down and JTC (UK) Ltd have been appointed.

  31 March 2022
(£)
31 March 2021
(£)
30 September 2021
(£)
Custody 15,000 15,000 30,000
Administration 97,500 97,500 195,000
Firm secretarial 4,902 4,902
Complete 112,500 117,402 229,902
Nonetheless owed on the interval finish 55,980 55,745

Below a proposal settlement dated 2 September 2021, CGWL have been appointed by the Firm to manage the supply for subscription and act as receiving agent in relation to the supply. Below the phrases of the settlement CGWL obtained a charge of three.5 per cent. of the gross proceeds of the supply for offering these providers. The Administrator agreed to discharge commissions payable to monetary advisers in respect of accepted functions for Provide Shares submitted by them, together with any path fee. 

The Administrator additionally agreed to discharge and/or reimburse all prices and bills of and incidental to the supply and the preparation of the prospectus, together with with out limitation to the generality of the foregoing, FCA vetting charges in relation to the prospectus, sponsor and authorized charges, bills of the Firm and CGWL, the Firm’s tax adviser’s charges and bills, registrar’s charges, prices of printing, postage, promoting, publishing and circulating the prospectus and advertising the supply, together with any introductory fee and reductions to traders. Nonetheless, the Administrator was not liable for the fee of itemizing charges related to the admission of the strange shares to the premium section of the Official Record and to buying and selling on the principle market of the London Inventory Trade.

Following the ultimate allotment underneath the supply, CGWL rebated £100,000 to the Firm, being the utmost rebate accessible underneath the supply settlement.

Throughout the half yr, the Firm issued 40,633,737 strange shares (nominal worth £406,377) within the supply for subscription which resulted in gross funds being obtained of £39,200,400. As advertising adviser and receiving agent to the Firm, CGWL was entitled to three.5% of the gross proceeds (£1,372,014), also known as the ‘premium’. From this, CGWL paid for the allotment of extra shares to traders with a price of £543,012, leading to web charges payable to CGWL of £829,002 to cowl the prices of the supply.

Hargreave Hale Restricted (buying and selling as Canaccord Genuity Fund Administration) is appointed as Funding Supervisor to the Firm and receives an funding administration charge of 1.7% every year.

Funding administration charges for the half-year are £1,900,193 (2021: £1,668,914). Of those charges £864,490 was nonetheless owed on the interval finish. Because the Funding Supervisor to the Firm and the funding advisor to the Marlborough Particular Conditions Fund (during which the Firm could make investments), the Funding Supervisor makes an adjustment as essential to its funding administration charge to make sure the Firm will not be charged twice for his or her providers.

Upon completion of an funding, the Funding Supervisor is permitted underneath the funding administration settlement to cost non-public investee corporations a charge equal to 1.5 per cent. of the funding quantity.  This charge is topic to a cap of £40,000 per funding and is payable straight from the investee firm to the Funding Supervisor. The Funding Supervisor could get better exterior due diligence and transactional providers prices straight from non-public investee corporations. No charges have been charged to investee corporations within the interval to 31 March 2022 underneath this settlement. 

Complete fee of £26,126 was paid to CGWL within the half yr for dealer providers.

The Funding Supervisor has agreed to indemnify the Firm and preserve indemnified the Firm in respect of the quantity by which the annual working prices of the Firm exceed 3.5 per cent. of the online belongings of the Firm, such prices shall exclude any VAT payable thereon and any funds to monetary intermediaries, the fee of which is the duty of the Firm. No charges have been waived by the Funding Supervisor within the first half of the monetary yr underneath the indemnity.

As at 31 March 2022 the Firm had money deposits of £38,081,700. Of this, £9,307,227 was held within the shopper account at CGWL.

15.   Post stability sheet occasions

Buybacks
Because the interval finish, an additional 935,939 strange shares have been bought at a median worth of 72.51 pence and a complete price of £678,633.

Share points
Because the interval finish, an additional 1,008,168 new shares have been issued (nominal worth £10,082) elevating web proceeds of £778,190. The supply is now absolutely subscribed and closed.

Intention to launch a proposal for subscription
On 9 June 2022, the Firm introduced its intention to launch a proposal for subscription of latest strange shares in or round September 2022. It’s anticipated that the Firm will search to lift at least £20 million underneath the supply. Full particulars can be set out in a prospectus to be revealed by the Firm in reference to the supply. Additional bulletins can be made sooner or later.

Investments
The Firm has made no investments for the reason that interval finish.

Sincere Brew Ltd
In June 2022, the Firm was positioned into administration as a way to full a sale of its belongings. On 6 Might 2022, underneath recommendation from the Funding Supervisor, the Board (excluding David Brock) absolutely impaired the residual carrying worth of the mortgage to Sincere Brew Ltd.

Various efficiency measures
Another efficiency measure (“APM”) is a monetary measure of the Firm’s historic or future monetary efficiency, monetary place or money flows which isn’t outlined or specified within the relevant monetary reporting framework.

The Administrators assess the Firm’s efficiency towards a spread of standards that are seen as notably related for a VCT.

The definition of every APM is within the glossary of phrases within the half yr outcomes. The place the calculation of the APM will not be detailed throughout the monetary statements, an evidence of the methodology employed is beneath:

NAV whole return

    31 March 2022 31 March 2021
Opening NAV per share A 100.39p 73.66p
Particular dividend paid B 2.50p
Last dividend paid C 3.15p 2.65p
Closing NAV per share D 77.13p 95.71p
NAV whole return [(B+C+D-A)/A]*100 -17.54% 33.53%

NAV whole return (dividends reinvested)

      31 March 2022 % Return
Opening NAV per share
(30 September 2021)
  A 100.39p  
Closing NAV per share
(31 March 2022)
    77.13p  
  Particular dividend paid October 2021 2.50p    
  Last dividend for yr paid February 2022 3.15p    
Complete dividend funds     5.65p  
Closing NAV per share plus dividends paid     82.78p  

-17.54% (33.53% 31 March 2021)

In yr efficiency of reinvested dividends     -0.95p  
NAV whole return (dividends reinvested) ((B-A)/A)*100 B 81.83p -18.49% (34.00% 31 March 2021)

Share worth whole return

    31 March 2022 31 March 2021
Opening share worth A 93.00p(1) 66.00p
Last dividend paid B 3.15p 2.65p
Closing share worth C 74.75p 90.00p
Share worth whole return ((B+C-A)/A)*100 -16.24% 40.38%

(1) Ex-dividend (particular).

Share worth whole return (dividends reinvested)

      31 March 2022 % Return
Opening share worth
(30 September 2021)
  A 93.00p(1)  
Closing share worth
(31 March 2022)
    74.75p  
  Last dividend for yr paid February 2022 3.15p    
Complete dividend funds     3.15p  
Closing share worth plus dividends paid     77.90p -16.24% (40.38% 31 March 2021)
In yr efficiency of reinvested dividends     (0.40p)  
Share worth whole return (dividends reinvested) ((B-A)/A)*100 B 77.50p -16.67%
(41.06% 31 March 2021)

(1)   Ex-dividend (particular).

Ongoing expenses ratio
The continued expenses ratio has been calculated utilizing the AIC’s “Ongoing Prices” methodology.

    31 March 2022
£000
31 March 2021
£000
Funding administration charge(1)   3,800 3,338
Different bills(1) (2)   1086 904
VCT proportion of MSSF bills(1)   34 69
Ongoing expenses A 4,920 4,311
Common web belongings B 234,128 187,989
Ongoing expenses ratio (A/B)*100 2.10% 2.29%

(1)   Figures for the interval ending 31 March 2021/22 have been annualised to calculate the continued expenses ratio

(2)   Different bills exclude London Inventory Trade charges of £49k (2022) and £58k (2021) for admission of shares underneath the supply for subscription because the Board don’t contemplate this price to be an ongoing price to the fund.

Share worth low cost

    31 March 2022 31 March 2021
Share worth A 74.75p 90.00p
NAV per share B 77.13p 95.71p
(Low cost) / premium [(A/B)-1]*100 -3.09% -5.97%

The 1 yr common low cost of 4.57% is calculated by taking the common of the share worth low cost at every month finish between 30 April 2021 and 31 March 2022.

The 5 yr common low cost of 6.02% is calculated by taking the common of the share worth low cost at every month finish between 30 April 2017 and 31 March 2022.

 

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