TIDMPPE
PROVEN PLANNED EXIT VCT PLC
ANNUAL FINANCIAL REPORT
PERIOD ENDED 31 JANUARY 2012
Financial summary
Ordinary Shares 31 January 2012
Net asset value per share ("NAV") 88.7p
Dividends paid since launch 3.0p
Total return (NAV plus dividends paid since launch) 91.7p
Mid market share price 97.0p
A Shares 31 January 2012
Net asset value per share ("NAV") 0.1p
Dividends paid since launch -
Total return (NAV plus dividends paid since launch) 0.1p
Mid market share price 0.1p
Chairman's Statement
Introduction
I have pleasure in presenting the first annual report for ProVen Planned Exit
VCT plc ("the Company") to shareholders. The report actually covers the period
from the Company's launch on 2 August 2010 to 31 January 2012, although the
Company first issued new shares to shareholders on 28 March 2011.
The period under review has been one of considerable uncertainty in the
financial markets and the economy as a whole and so the Company's funds have
been kept predominantly in high quality cash deposits and money market funds,
consistent with our objective of being a lower risk VCT. The Investment Manager
has reviewed a significant number of potential transactions during the period
but has been very selective in which ones it has invested. At the period end two
investments had been made and a further GBP1 million was invested in two
qualifying investments subsequent to the period end.
Original share offer
The Company launched an offer for subscription ("the Offer") on 2 November
2010. The Offer closed on 16 September 2011 having raised gross funds from
investors of GBP4.7 million. The Company issued a total of 4,818,235 Ordinary
Shares and 7,227,352 'A' Shares under the Offer which produced net proceeds,
after issue costs, of GBP4.6 million.
Shareholders who subscribed under the Offer were issued equal numbers of
Ordinary and 'A' shares. In accordance with terms of the Offer, the Investment
Manager was allotted 2.4 million 'A' Shares. The 'A' Shares are expected to have
a net asset value of 0.1p per share for the initial years of the Company's life
and this will only change if, and when, a certain level of return has been made
to the Ordinary Shareholders.
Results
The loss on activities after taxation was GBP131,000, comprising a revenue loss of
GBP85,000 and a capital loss of GBP46,000. The net asset value total return,
comprising net asset value and dividends paid, was 91.7p per Ordinary Share and
0.1p per 'A' Share.
Dividends
In accordance with the terms of the Offer, the Directors intend that the Company
pays two dividends per year of 3p each, subject to the availability of
sufficient cash reserves and distributable reserves.
The Company paid an interim dividend for the period ended 31 January 2012 of 3p
per Ordinary Share on 21 December 2011 to Ordinary Shareholders on the register
as at 9 December 2011.
The Company is proposing a final dividend for the period ended 31 January 2012
of 3p per Ordinary Share which will be subject to approval by Shareholders at
the Annual General Meeting of the Company on 30 May 2012. The dividend will,
subject to this approval be paid on 6 June 2012 to Ordinary Shareholders on the
register as at 25 May 2012.
Portfolio activity and valuation
At 31 January 2012, the Company's venture capital investment portfolio comprised
two venture capital investments at a cost and valuation of GBP450,000. In
addition, the Company held cash and liquidity funds of GBP3.9 million. Subsequent
to the period end, the Company has completed two new VCT qualifying investments
totalling GBP1 million.
Further detail on our portfolio activity is provided in the Investment Manager's
Review.
Share buybacks
The Directors intend that, in the five years following the first allotment of
shares, the Company will operate a policy of buying back its own shares for
cancellation at a zero discount to net asset value. It should be noted, however,
that a disposal of VCT shares within five years from allotment may result in the
loss of the initial income tax relief. Given the intended life of the Company,
it is not intended that any shares will be bought back after the 5(th)
anniversary of the first allotment of shares.
No shares were purchased by the Company during the period.
Cancellation of share premium account
On 19 October 2011, the Company cancelled its share premium account created on
the issue of shares and created a special distributable reserve. This special
reserve can be used by the Company for the cancellation of its shares, and other
corporate purposes including the payment of dividends.
Annual general meeting
The first AGM of the Company will be held at 39 Earlham Street, London WC2H 9LT
at 9.30 am on 30 May 2012.
I would also like to take this opportunity to draw your attention to the
Investment Manager's annual shareholder presentation which, as last year, is
expected to be held in central London in November. This event provides
shareholders with an opportunity to meet the Investment Manager and,
additionally, to hear directly from some of the portfolio companies and to meet
other VCT shareholders. Further details of the event will be communicated to
shareholders in the autumn. The Board welcomes the opportunity to meet
shareholders at this event, outside of the more formal business of the AGM, and
I would encourage you to attend if at all possible.
The Board is always pleased to hear comments from shareholders outside of the
AGM and shareholder event and can be contacted through the Company's registered
office at 39 Earlham Street, London WC2H 9LT.
Outlook
The Company was established last year against a backdrop of economic uncertainty
and turmoil with a view to seeking out lower risk opportunities that had, prior
to the financial crisis, been funded by more traditional lenders. I am pleased
to report that the flow of suitable investment opportunities to the Investment
Manager has accelerated and your board is optimistic that further opportunities
will continue to be forthcoming as a result of the banks and traditional lenders
continuing to deleverage their balance sheets.
Whilst it is still early in the cycle, the Board remains optimistic about the
prospects for the Company.
Peter L R Hewitt
Chairman
Investment Manager's Review
Introduction
We have pleasure in presenting our report for ProVen Planned Exit VCT plc ("the
Company" or "PPE") for the period through to 31 January 2012.
Beringea LLP is a specialist venture capital management company which traces its
origins back over 25 years. It currently manages over GBP90 million of VCT funds
through four VCTs and has managed VCTs since their inception in 1996. This
experience, together with the current economic environment, creates interesting
and potentially larger investment opportunities which may not be available to a
smaller standalone VCT.
Against a backdrop of challenging economic and investment conditions, the
Company made two investments totalling GBP450,000 in non-qualifying venture
capital companies during the period ended 31 January 2012. Subsequent to the
period end, the Company has completed two new VCT qualifying investments
totalling GBP1 million.
Investment activity and portfolio valuation
At 31 January 2012, the Company's venture capital investment portfolio comprised
two non-VCT qualifying investments with a cost and valuation of GBP450,000. In
addition, the Company held cash and liquidity funds of GBP3.9 million.
In December 2011, the Company provided a working capital facility of GBP250,000 to
Campden Media, a magazine publisher and event organiser. The Beringea managed
VCTs first invested in Campden Media in 2006 through ProVen VCT and ProVen
Growth and Income VCT and we therefore have over six years experience of working
with the management of the company. The GBP250,000 loan was repaid in March 2012
but a further facility is currently under consideration. The loan facility
provided an attractive yield relative to the interest rates available on cash
alternatives.
In January 2012, the Company provided funding of GBP200,000 in the form of GBP33,000
of equity shares and GBP167,000 of loan notes to Eagle-i Music Limited, a
subsidiary of Eagle Rock Entertainment Group Limited, as part of a total funding
round of GBP1 million by the Company and ProVen Growth and Income VCT plc. Eagle
Rock is a leading independent producer, publisher and distributor of music
programming. The Beringea managed VCTs first invested in Eagle Rock in April
2007 and have now invested a total of GBP3 million in the Group including the
recent investment. The latest investment provides funding for a new publishing
division, dedicated to owning and collecting royalties associated with
publishing rights in the music entertainment industry. The investment has been
structured to provide an attractive yield, security against the assets of the
Company and a redemption premium on the loan that covers the equity investment.
Whilst these investments are modest, they demonstrate the attractiveness of the
Company of being part of a stable of other VCTs. The Company has gained exposure
to businesses which are well known to us and about which we are very
knowledgeable through our investment experience.
Post period end portfolio activity
In February 2012, the Company completed a VCT qualifying investment of GBP600,000
through a combination of equity and loan notes into Cross Solar Limited. This is
a new solar installation company which takes advantage of the Government backed
feed-in-tariffs available on small scale solar installations. These provide
guaranteed income for 25 years, providing an element of income security for the
company and its investors.
In April 2012, the Company made a VCT qualifying investment of GBP400,000 through
a combination of equity and loan notes into Long Eaton Healthcare Limited
("LEH") which will provide pharmacy services in an existing health centre in
Long Eaton, near Nottingham. The pharmacy will be managed by APM Healthcare,
trading as Community Pharmacies ("CP"), an existing investment of the Beringea
managed VCTs. CP is set to revolutionise convenience pharmacy, operating at the
heart of primary care in partnership with GP practices. It encourages operating
freedom for local pharmacies to meet customer needs whilst providing strong head
office support and expertise. CP has already established 5 pharmacies and has a
number of developments in the pipeline. The LEH investment provides PPE with an
attractive yield on the loan and is secured over LEH's assets.
Outlook
In the period to the date of this review, we have made good progress towards our
goal of meeting the investment targets under the VCT legislation. The Company
has until 31 January 2014 to invest, broadly, 70% of the funds raised from the
initial fundraising after adjusting for net expenses and distributions. The
reluctance of banks to provide lending to businesses is providing opportunities
for alternative funders such as VCTs. In addition, the existing portfolios of
the Beringea managed VCTs have provided attractive opportunities which would not
be available to other VCTs. We will continue to be selective about the
opportunities in which we invest with the aim of building up an attractive and
robust portfolio to deliver the targeted returns to investors.
Beringea LLP
Investment Portfolio
as at 31 January 2012
The following investments were held at 31 January 2012:
Cost Valuation Valuation movement in % of portfolio
GBP'000 GBP'000 year by value
GBP'000
Venture capital
investments
=------------------------------------------------------------------------------
Campden Media Limited* 250 250 - 5.7%
=------------------------------------------------------------------------------
Eagle-i Music Limited** 200 200 - 4.6%
=------------------------------------------------------------------------------
450 450 - 10.3%
=------------------------------------------------------------------------------
Other venture capital - - - 0.0%
investments
=------------------------------------------------------------------------------
Total venture capital 450 450 - 10.3%
investments
=------------------------------------------------------------------------------
HSBC liquidity fund 380 8.8%
=------------------------------------------------------------------------------
Cash at bank and in hand 3,523 80.9%
=------------------------------------------------------------------------------
=------------------------------------------------------------------------------
Total investments 4,353 100.0%
=------------------------------------------------------------------------------
All venture capital investments are unquoted unless otherwise stated.
* Campden Media Limited is also held by ProVen VCT plc and ProVen
Growth and Income VCT plc.
** Eagle-i Music Limited is also held by ProVen Growth and Income
VCT plc. ProVen VCT plc and ProVen Growth and Income VCT plc also hold an
investment in Eagle Rock Entertainment Group Limited which is a significant
shareholder in Eagle-i Music Limited.
The relationship between the VCTs managed by Beringea is covered by a co-
investment agreement.
All venture capital investments held at the period end are registered in England
and Wales.
Directors' Responsibilities Statement
The Directors are responsible for preparing the Report of the Directors and the
financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law the Directors have elected to prepare the
financial statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards and applicable laws).
Under company law the directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state of affairs
and profit or loss of the company for that period.
In preparing these financial statements, the Directors are required to:
* select suitable accounting policies and then apply them consistently;
* make judgments and accounting estimates that are reasonable and prudent;
* state whether UK Accounting Standards have been followed, subject to any
material departures disclosed and explained in the financial statements;
* prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the company will continue in business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the company's transactions and disclose with
reasonable accuracy at any time the financial position of the company and enable
them to ensure that the financial statements comply with the Companies Act
2006. They are also responsible for safeguarding the assets of the company and
hence for taking reasonable steps for the prevention and detection of fraud and
other irregularities.
In so far as each of the Directors is aware:
* there is no relevant audit information of which the company's auditor is
unaware; and
* the Directors have taken all steps that they ought to have taken to make
themselves aware of any relevant audit information and to establish that the
auditor is aware of that information.
The Directors are responsible for the maintenance and integrity of the corporate
and financial information included on the company's website. Legislation in the
United Kingdom governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Directors' statement pursuant to the Disclosure and Transparency Rules
Each of the Directors confirms that, to the best of his or her knowledge:
* the financial statements, which have been prepared in accordance with United
Kingdom Generally Accepted Accounting Practice, give a true and fair view of
the assets, liabilities, financial position and loss of the Company; and
* the management report contained in the Chairman's Statement, Investment
Manager's Review and Report of the Directors includes a fair review of the
development and performance of the business and the position of the Company,
together with a description of the principal risks and uncertainties that it
faces.
By Order of the Board
Beringea LLP
Secretary of ProVen Planned Exit VCT plc
Company number: 07333086
Registered Office:
39 Earlham Street
London WC2H 9LT
Income Statement
for the period ended 31 January 2012
Period ended 31 January
2012
Revenue Capital Total
GBP'000 GBP'000 GBP'000
Income 13 - 13
Investment management fees (12) (37) (49)
Other expenses (86) (9) (95)
-----------------------------
Return on ordinary activities before
tax (85) (46) (131)
Tax on ordinary activities - - -
-----------------------------
Return attributable to equity (131)
shareholders (85) (46)
-----------------------------
Basic and diluted return per share:
Ordinary Share (1.9p) (1.0p) (2.9p)
-----------------------------
'A' Share - - -
-----------------------------
All revenue and capital items in the above statement derive from continuing
operations. The total column within the Income Statement represents the profit
and loss account of the Company.
Reconciliation of Movements in Shareholders' Funds
for the period ended 31 January 2012
Period ended 31 January 2012
GBP'000
Opening shareholders' funds -
Proceeds from share issues 4,714
Share issue costs (157)
Total recognised return for the period (131)
Dividends (145)
--------
Closing shareholders' funds 4,281
--------
Balance Sheet
as at 31 January 2012
2012
GBP'000
Fixed assets
Investments 450
--------
Current assets
Debtors 10
Investments 380
Cash at bank and in hand 3,523
--------
3,913
Creditors: amounts falling due within one year (82)
--------
Net current assets 3,831
--------
--------
Net assets 4,281
--------
Capital and reserves
Called up Ordinary Share capital 5
Called up 'A' Share capital 7
Share premium account -
Special reserve 4,400
Capital reserve - realised (46)
Revenue reserve (85)
--------
Total equity shareholders' funds 4,281
--------
Basic and diluted net asset value per share
Ordinary Share 88.7p
--------
'A' Share 0.1p
--------
Cash Flow Statement
for the period ended 31 January 2012
Period ended 31 January 2012
GBP'000
Net cash outflow from operating activities (59)
--------
Capital expenditure
Purchase of investments (450)
--------
Net cash outflow from capital expenditure (450)
--------
Equity dividends paid (145)
--------
Management of liquid resources
Purchase of current investments held as liquidity (500)
funds
Withdrawal from liquidity funds 120
--------
Net cash outflow from liquid resources (380)
--------
Net cash ouflow before financing (1,034)
--------
Financing
Proceeds from Ordinary Share issue 4,707
Proceeds from 'A' Share issue 7
Proceeds from Preference Share issue 50
Redemption of Preference Shares (50)
Share issue costs (157)
--------
Net cash inflow from financing 4,557
--------
Increase in cash 3,523
--------
Notes to the Accounts
for the period ended 31 January 2012
1. Accounting policies
Basis of accounting
The Company has prepared its financial statements under UK Generally Accepted
Accounting Practice ("UK GAAP") and in accordance with the Statement of
Recommended Practice "Financial Statements of Investment Trust Companies and
Venture Capital Trusts" revised January 2009 ("SORP").
The financial statements are prepared under the historical cost convention
except for certain financial instruments measured at fair value.
The Company implements new Financial Reporting Standards ("FRS") issued by the
Accounting Standards Board when required.
Presentation of Income Statement
In accordance with the SORP, supplementary information which analyses the Income
Statement between items of a revenue and capital nature has been presented
alongside the Income Statement. The net revenue is the measure the Directors
believe appropriate in assessing the Company's compliance with certain
requirements set out in S274 of the Income Tax Act 2007.
Fixed assets investments
Investments, including equity and loan stock, are designated as "fair value
through profit or loss" assets due to investments being managed and performance
evaluated on a fair value basis. A financial asset is designated within this
category if it is both acquired and managed, with a view to selling after a
period of time, in accordance with the Company's documented investment policy.
The fair value of an investment upon acquisition is deemed to be cost.
Thereafter investments are measured at fair value in accordance with
International Private Equity and Venture Capital Valuation Guidelines
("IPEVCVG") issued in September 2009 together with FRS26.
The valuation methodologies used by the Directors for assessing the fair value
of unquoted investments are as follows:
* investments are usually retained at cost for an appropriate period following
investment, except where a company's performance against plan is
significantly below the expectations on which the investment was made in
which case a provision against cost is made as appropriate;
* where a company is in the early stage of development it will normally
continue to be held at cost, reviewed for impairment on the basis described
above;
* where a company is well established after an appropriate period, the
investment may be valued by applying a suitable earnings or revenue multiple
to that company's maintainable earnings or revenue. The multiple used is
based on comparable listed companies or a sector but discounted to reflect
factors such as the different sizes of the comparable businesses, different
growth rates and the lack of marketability of unquoted shares;
* where a value is indicated by a material arms-length transaction by a third
party in the shares of the company, the valuation will normally be based on
this, reviewed for impairment as appropriate; and
* where alternative methods of valuation, such as net assets of the business
or the discounted cash flows arising from the business are more appropriate,
then such methods may be used.
The methodology applied takes account of the nature, facts and circumstances of
the individual investment and uses reasonable data, market inputs, assumptions
and estimates in order to ascertain fair value. Methodologies are applied
consistently from year to year except where a change results in a better
estimate of fair value.
Where an investee company has gone into receivership or liquidation, or there is
little likelihood of a recovery from a company in administration, the loss on
the investment, although not physically disposed of, is treated as being
realised.
Gains and losses arising from changes in fair value are included in the Income
Statement for the year as a capital item.
It is not the Company's policy to exercise either significant or controlling
influence over investee companies. Therefore the results of these companies are
not incorporated into the Income Statement except to the extent of any dividends
or interest accrued. This is in accordance with the SORP that does not require
portfolio investments to be accounted for using the equity method of accounting.
Current assets investments
Current asset investments, which comprise investments in liquidity funds with
AAA rating, are held at fair value through profit and loss and are marked-to-
market. Liquidity funds are mutual funds that invest in high quality short-term
money market instruments enabling investors to access a highly diversified and
liquid portfolio. These assets are purchased and redeemed under a contract and
the assets are recognised and derecognised on the trade date. These assets are
initially measured at cost and subsequently valued at fair value, being the
closing price of the fund as issued by the provider.
Income
Dividend income from investments is recognised when the shareholder's right to
receive payment has been established, normally the ex dividend date.
Interest income is accrued on a time apportioned basis, by reference to the
principal outstanding and at the effective interest rate applicable and only
where there is reasonable certainty of collection.
Expenses
All expenses are accounted for on an accruals basis. In respect of the analysis
between revenue and capital items presented within the Income Statement, all
expenses have been presented as revenue items except as follows:
* expenses which are incidental to the acquisition of an investment are
deducted from the Capital Account;
* expenses which are incidental to the disposal of an investment are deducted
from the disposal proceeds of the investment; and
* expenses are split and presented partly as capital items where a connection
with the maintenance or enhancement of the value of the investments held can
be demonstrated and accordingly the investment management fee has been
allocated 25% to revenue and 75% to capital, in order to reflect the
Directors' expected long-term view of the nature of the investment returns
of the Company.
Taxation
The tax effects on different items in the Income Statement are allocated between
capital and revenue on the same basis as the particular item to which they
relate, using the Company's effective rate of tax for the accounting period.
Due to the Company's status as a Venture Capital Trust and the continued
intention to meet the conditions required to comply with S274 of the Income Tax
Act 2007, no provision for taxation is required in respect of any realised or
unrealised appreciation of the Company's investments which arises.
Deferred taxation is provided in full on timing differences that result in an
obligation at the balance sheet date to pay more tax, or a right to pay less tax
at a future date, as rates expected to apply when they crystallise based on
current tax rates and law. Timing differences arise from the inclusion of items
of income and expenditure in taxation computations in periods different from
those in which they are included in the accounts.
Cash
Cash, for the purposes of the cash flow statement, comprises cash in hand and
deposits repayable on demand, less overdrafts payable on demand.
Debtors
The Company's debtors are initially recognised at fair value and subsequently
measured at amortised cost using the effective interest method.
Liabilities
The Company's financial liabilities are initially recognised at fair value and
subsequently measured at amortised cost using the effective interest method.
Issue costs
Issue costs in relation to share issues have been deducted from the share
premium account.
2. Return per share
Ordinary Shares 'A' Shares
Return per share based on:
Net return after taxation for the financial (85) -
period
---------------------------
Weighted average number of shares in 4,552,965 5,625,410
issue
---------------------------
Capital return per share based
on:
Net capital return for the financial period (46) -
( GBP'000)
---------------------------
Weighted average number of shares in 4,552,965 5,625,410
issue
---------------------------
As the Company has not issued any convertible securities or share options, there
is no dilutive effect on the return per Ordinary or 'A' Share. The return per
share disclosed therefore represents both basic and diluted return per Ordinary
and 'A' Share.
3. Net asset value per share
2012
Net asset value
Shares in issue Pence per share
GBP'000
Ordinary shares 4,818,237 88.7 4,274
'A' Shares 7,227,352 0.1 7
--------
Net assets 4,281
--------
The Directors allocate the assets and liabilities of the Company between the
Ordinary Shares and 'A' Shares such that each share class has sufficient net
assets to represent its dividend and return of capital rights.
As the Company has not issued any convertible securities or share options, there
is no dilutive effect on net asset per share. The net asset value per share
disclosed therefore represents both basic and diluted net asset value per share.
4. Principal financial risks
The Company's investment activities expose the Company to a number of risks
associated with financial instruments and the sectors in which the Company
invests. The principal financial risks arising from the Company's operations
are:
* market risks;
* credit risk; and
* liquidity risk.
The Board regularly reviews these risks and the policies in place for managing
them. There have been no significant changes to the nature of the risks that the
Company is exposed to over the period and there have also been no significant
changes to the policies for managing those risks during the period.
The risk management policies used by the Company in respect of the principal
financial risks and a review of the financial instruments held at the period end
are provided below:
Market risks
As a VCT, the Company is exposed to market risks in the form of potential losses
and gains that may arise on the investments it holds. The key market risk to
which the Company is exposed is market price risk. The Company has undertaken
sensitivity analysis on its financial instruments, split into the relevant
component parts, taking into consideration the economic climate at the time of
review in order to ascertain the appropriate risk allocation.
Market price risk
Market price risk arises from uncertainty about the future prices of financial
instruments held in accordance with the Company's investment objectives. It
represents the potential loss that the Company might suffer through changes in
the fair value of unquoted investments.
It is not the Company's policy to use derivative instruments to mitigate market
risk, as the Board believes that the effectiveness of such instruments does not
justify the cost involved.
The sensitivity analysis below assumes that each of the sub categories of
financial instruments (ordinary shares, preference shares, loan stocks and
liquidity funds) held by the Company produces an overall movement of 20%.
Shareholders should note that equal correlation between these sub categories is
unlikely to be the case in reality, particularly in the case of loan stock
instruments. This is because the loan stock instruments would not share in the
impact of any increase in share prices to the same extent as the equity
instruments, as the returns are set by reference to interest rates and premiums
agreed at the time of the initial investment. Similarly, where share prices are
falling, the equity instrument could fall in value before the loan stock
instrument. It is not considered practical to assess the sensitivity of the
loan stock instruments to market price risk in isolation.
Sensitivity 2012-20% fall
Risk exposure Impact on Impact on NAV
net assets per Ordinary
Share
GBP'000 GBP'000 Pence
Venture capital 450 (90) (1.9p)
investments
Liquidity fund 380 (76) (1.5p)
-----------------------------------------------
830 (166) (3.4p)
-----------------------------------------------
Credit risk
Credit risk is the risk that a counterparty to a financial instrument is unable
to discharge a commitment made under that instrument. The Company is exposed to
credit risk through its holdings of investments in liquidity funds, cash
deposits and debtors.
The Company's exposure to credit risk is summarised as follows:
2012
GBP'000
Investments in loan stock 417
Investments in liquidity funds 380
Cash and cash equivalents 3,523
Interest, dividends and other receivables 10
--------
4,330
--------
Credit risk in respect of loan stock is managed with a similar approach as
described under 'market risks' above.
Credit risk in respect of the investment in liquidity funds is minimised by
investing in AAA-rated funds.
Cash is mainly held by HSBC Bank plc, Natwest Bank plc and Bank of Scotland Bank
plc which are AA-, A and A rated financial institutions respectively.
Consequently, the Directors consider that the risk profile associated with cash
deposits is low.
Liquidity risk
Liquidity risk is the risk that the Company encounters difficulties in meeting
obligations associated with its financial liabilities. As the Company only ever
has a low level of creditors and no borrowings, the Board believes that the
Company's exposure to liquidity risk is minimal, given the current large cash
balance.
5. Post balance sheet events
Two VCT qualifying investments totalling GBP1 million were made after the period
end. An investment of GBP600,000 comprising GBP180,000 in ordinary shares and
GBP420,000 in loan stock was made in Cross Solar Limited. An investment of
GBP400,000 comprising GBP120,000 in ordinary shares and GBP280,000 in loan stock was
made in Long Eaton Healthcare Limited.
Announcement based on audited accounts
The financial information set out in this announcement does not constitute the
Company's statutory financial statements in accordance with section 434
Companies Act 2006 for the period ended 31 January 2012, but has been extracted
from the statutory financial statements for the period ended 31 January 2012,
which were approved by the Board of Directors on 27 April 2012 and will be
delivered to the Registrar of Companies following the Company's Annual General
Meeting. The Independent Auditor's Report on those financial statements was
unqualified and did not contain any emphasis of matter nor statements under s
498(2) and (3) of the Companies Act 2006.
The statutory accounts for the period ended 31 October 2011 have been delivered
to the Registrar of Companies and received an Independent Auditors report which
was unqualified and did not contain any emphasis of matter nor statements under
S237(2) or (3) of the Companies Act 1985.
A copy of the full annual report and financial statements for the period ended
31 January 2012 will be printed and posted to shareholders shortly. Copies will
also be available to the public at the registered office of the Company at 39
Earlham Street, London, WC2H 9LT and will be available for download from
www.provenvcts.co.uk.
-End
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: ProVen Planned Exit VCT plc via Thomson Reuters ONE
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