TIDMTP7V

RNS Number : 0315Q

TP70 2010 VCT PLC

12 October 2011

TP70 2010 VCT plc

Interim Results

The directors of TP70 2010 VCT plc are pleased to announce its Interim results for the six months to 31 August 2011.

For further information please contact Triple Point Investment Management LLP on 020 7201 8989. The Interim report will be available in full at www.triplepoint.co.uk

Financial Summary

 
                                                Audited Year 
                                    Unaudited          ended         Unaudited 
                               6 months ended    28 February    6 months ended 
                               31 August 2011           2011    31 August 2010 
                                      GBP'000        GBP'000           GBP'000 
 Net assets                             7,741          8,077             8,170 
 Net asset value per share             88.51p         92.35p            93.41p 
---------------------------  ----------------  -------------  ---------------- 
 Net loss before tax                    (336)          (235)             (142) 
 Loss per share                       (3.85p)        (4.68p)           (4.34p) 
---------------------------  ----------------  -------------  ---------------- 
 
 

TP70 2010 VCT plc ("the Company") is a Venture Capital Trust ("VCT"). The investment manager is Triple Point Investment Management LLP ("TPIM"). The Company was launched in October 2009 and raised GBP8.3million (net of expenses) through an offer for subscription, which closed on 31 May 2010.

Chairman's Statement

I am writing to you to present the unaudited Interim Financial Report for TP70 2010 VCT plc ("the Company") for the 6 months ended 31 August 2011.

Investment Strategy

The Company's strategy is to offer combined exposure to a GAM managed portfolio of hedge funds through its Trading II (GAM Trading) fund and to Triple Point managed VCT qualifying investments. During the period the fund had an exposure to GAM of 49% that with leverage gave an effective 75% exposure.

Results

I am pleased to report that during the period, the Company commenced its VCT qualifying investment programme by investing GBP2.5m between seven companies pursuing opportunities in electricity generation from solar Photo Voltaic ("PV"). At cost these represent 31% of investments. The Investment Manager's Review has more detail on these investments.

Over the period the Company made a loss of GBP336,000 or 3.85p per share. Of this loss GBP217,000 was attributable to the decline in value of the investments held in the GAM portfolio.

Board Composition

The Board regularly reviews the independence of its members and as a result a decision was taken that Chris Tottle, a partner of TPIM, should be replaced by a Director who is independent of TPIM. Therefore he resigned as a Director and Professor Elroy Dimson was appointed on 27 April 2011.

Risks

The Board believes that the principal risks facing the Company are:

-- Investment risk associated with exposure to GAM;

-- Investment risk associated with VCT qualifying investments;

-- Failure to continue to satisfy the requirements to qualify as a VCT;

-- Counterparty risk relating to the derivative note held with Exane Finance

The Board believes these risks are manageable and, with the Investment Manager, continues to work to minimise either the likelihood or potential impact of these risks, within the scope of the Company's established investment strategy.

Outlook

The Board is pleased with the progress the Company has made in building its portfolio of VCT qualifying holdings and, based on TPIM's strong deal pipeline, is confident that the Company is on track for VCT qualification.

On 30 September 2011 the Company disposed of the investments held in GAM Multi-Focused Macro SP USD Open and GAM Multi-Systematic Trading USD Open in order to make VCT qualifying investments. This will reduce the effective exposure to GAM from 75% to 57%. In current market conditions we do not expect to be able to obtain the leverage which would enable us to increase this effective exposure.

If you have any queries or comments, please do not hesitate to telephone Triple Point Investment Management LLP on 020 7201 8989.

Charles Metcalfe

Chairman

11 October 2011

Investment Manager's Review

Over the period the Company has maintained both its exposure to GAM funds and begun to build its portfolio of VCT qualifying holdings, in line with its investment strategy.

VCT Qualifying Investments Review and Outlook

I am pleased to report that during the period under review the Company has commenced its VCT investment programme, investing GBP2.5m between seven companies pursuing opportunities in renewable energy from solar PV panels for social housing. The panels will be placed on suitable roofs within housing associations' stock and used to generate electricity for the residents, with any surplus electricity exported to the National Grid. The generation of electricity from solar PV falls within the Government's Feed-in Tariff regime and the seven companies will benefit from this framework. Feed-in Tariffs are linked to inflation and rates for solar PV arrays installed before 2012 have been set for 25 years, providing the companies with a long term, predictable cash flow.

The Company is committed to making two VCT qualifying investments in March 2012, GBP1m in DLN Digital Limited, a company engaged in cinema digitisation, and GBP725,000 in Katharos Organic Limited, which will earn Feed-in Tariffs from power generation from anaerobic digestion.

GAM Review

The Company had 21% exposure to GAM Trading II GBP 1.25XL, 14% exposure to GAM Multi-Focused Macro SP USD Open Class, 4% exposure to GAM Multi-Systematic Trading USD Open and 36% exposure to a 2.5x leveraged note provided by Exane Derivatives, a subsidiary of Credit Agricole. This provided an overall effective exposure of 75%.

Over the period GAM Trading 1.25XL lost 1.73%, GAM Multi-Systematic Trading USD lost 1.30% and GAM Multi-Focused Macro SP USD lost 6.71%. Despite these losses the GAM funds outperformed the FTSE All Share which lost 7.95% and the MSCI World Index which lost 9.01%.

While in aggregate 2011 has been disappointing thus far, GAM's more specialised managers, especially in commodities and emerging markets macro, have outperformed the larger diversified discretionary macro managers. In addition, macro managers who have been quick to adapt have shown an ability to withstand the current environment. GAM, therefore, expects to increase this type of exposure within the diversified macro strategy. Similarly, it expects to increase exposure to managers who have significant experience with more volatile markets and are particularly strong at quantifying risk over long periods of time - namely, managed futures trend managers.

GAM Outlook

GAM Trading II and the GAM funds to which the Company has exposure have historically benefited from uncertainty and dislocation. While the current environment is unusual, GAM believes that the strengths of the strategy will allow it to continue its track record of long-term outperformance. Should the current uncertainty eventually stabilise and translate into more sustained market movements, the opportunity set will only increase. In the interim, GAM believes that its funds' outlook can be enhanced by continuing to focus on managers and approaches that have the flexibility to adapt quickly and successfully to the changing market dynamics.

Our present expectation is that the Company will meet its target of being 70% invested in VCT qualifying investments well ahead of the deadline to secure its VCT status. We will also continue to monitor and manage the performance of the Company's qualifying holdings and its investments with GAM.

Claire Ainsworth

Managing Partner

for Triple Point Investment Management LLP

11 October 2011

Directors' Responsibility Statement

The Directors have prepared the Interim Financial Report for the Company in accordance with International Financial Reporting Standards ("IFRS").

In preparing the Interim Financial Report for the 6 month period to 31 August 2011, the Directors confirm that to the best of their knowledge:

a) the Interim Financial Report has been prepared in accordance with International Accounting Standard IAS34,"Interim Financial Reporting" issued by the International Accounting Standards board;

b) the Interim Financial Report includes a fair review of important events during the period and their effect on the financial statements and a description of principal risks and uncertainties for the remainder of the accounting period;

c) the Interim Financial Report gives a true and fair view in accordance with IFRS of the assets, liabilities, financial position and of the results of the company for the period and complies with IFRS and the Companies Act 2006;

d) the Interim Financial Report includes a fair review of related party transactions and changes therein. Other than detailed in note 15 there are no related party transactions; and

e) the Directors believe that the Company has sufficient financial resources to manage its business risks in the current uncertain economic outlook.

The Directors have reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

This Interim Financial Report has not been audited or reviewed by the auditors.

Charles Metcalfe

Chairman

11 October 2011

Unaudited Consolidated Statement of Comprehensive Income

For the 6 months ended 31 August 2011

 
                                            Unaudited                       Audited                     Unaudited 
                                       6 months ended                  Period ended                6 months ended 
                                       31 August 2011              28 February 2011                31 August 2010 
                         ----------------------------  ----------------------------  ---------------------------- 
                   Note      Rev.      Cap.     Total      Rev.      Cap.     Total      Rev.      Cap.     Total 
                          GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000 
 Income 
 Investment 
  income            5          11         -        11        37         -        37        10         -        10 
 Realised gain 
  on 
  investments       6           -        23        23         -         4         4         -         -         - 
 Unrealised 
  (loss) / gain 
  on 
  investments       6           -     (217)     (217)         -        31        31         -        11        11 
 Investment 
  return                       11     (194)     (183)        37        35        72        10        11        21 
                         --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 
 Expenses 
 Investment 
  management 
  fees              7          25        75       100        46       138       184        21        62        83 
 Financial and 
  regulatory 
  costs                        11         -        11        22         -        22        10         -        10 
 General 
  administration               10         -        10        16         -        16         1         -         1 
 Legal and 
  professional 
  fees                         12         -        12        39         -        39        43         -        43 
 Directors' 
  remuneration      8          20         -        20        46         -        46        26         -        26 
 Operating 
  expenses                     78        75       153       169       138       307       101        62       163 
                         --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Loss before 
  taxation                   (67)     (269)     (336)     (132)     (103)     (235)      (91)      (51)     (142) 
 Taxation           9           -         -         -         -         -         -         -         -         - 
 Loss after 
  taxation                   (67)     (269)     (336)     (132)     (103)     (235)      (91)      (51)     (142) 
                         --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Total 
  comprehensive 
  loss for the 
  period                     (67)     (269)     (336)     (132)     (103)     (235)      (91)      (51)     (142) 
                         --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Basic & diluted 
  loss per 
  share             10    (0.71p)   (3.13p)   (3.85p)   (2.43p)   (2.26p)   (4.68p)   (2.77p)   (1.57p)   (4.34p) 
                         --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 

The Total column of this statement is the statement of comprehensive income of the Company prepared in accordance with International Financial Reporting Standards (IFRS). The supplementary Revenue Return and Capital columns have been prepared under guidance published by the Association of Investment Companies. All revenue and capital items in the above statement derive from continuing operations.This Consolidated Statement of Comprehensive Income includes all recognised gains and losses. The parent Company has taken advantage of section 408 of the Companies Act 2006 not to publish its own statement of comprehensive income. The parent Company's loss for the period is GBP336,000, which is the same as the Group.

The accompanying notes are an integral part of this statement.

Unaudited Consolidated Balance Sheet

At 31 August 2011

 
                                             Unaudited                Audited         Unaudited 
                                        31 August 2011       28 February 2011    31 August 2010 
                                  --------------------   --------------------   --------------- 
                                                Parent                 Parent    Group & Parent 
                                     Group     Company        Group   Company           Company 
                           Note    GBP'000     GBP'000      GBP'000   GBP'000           GBP'000 
 
 Non current assets 
 Financial assets at 
  fair value through 
  profit or loss                     7,209       7,194        4,005     3,995             1,248 
                                  --------  ----------   ----------  --------   --------------- 
 
 Current assets 
 Receivables                            17          29           32        31                13 
 Forward contracts                      15          15           17        17                 - 
 Cash and cash 
  equivalents               11         567         567        4,110     4,108             6,989 
                                       599         611        4,159     4,156             7,002 
                                  --------  ----------   ----------  --------   --------------- 
 Total assets                        7,808       7,805        8,164     8,151             8,250 
                                  --------  ----------   ----------  --------   --------------- 
 
 Current liabilities 
 Payables and accrued 
  expenses                              67          64           87        74                80 
                                        67          64           87        74                80 
                                  --------  ----------   ----------  --------   --------------- 
 
 Net assets                          7,741       7,741        8,077     8,077             8,170 
                                  ========  ==========   ==========  ========   =============== 
 
 Equity attributable to equity 
  holders 
 Share capital              12          87          87           87        87                87 
 Share premium                           -           -        8,225     8,225             8,225 
 Special distributable 
  reserve                            8,225       8,225                                        - 
 Capital reserve                     (372)       (387)        (103)     (113)              (51) 
 Revenue reserve                     (199)       (184)        (132)     (122)              (91) 
 Total equity                        7,741       7,741        8,077     8,077             8,170 
                                  ========  ==========   ==========  ========   =============== 
 Net asset value per        13      88.51p      88.51p       92.35p    92.35p            93.41p 
  share (pence) 
                                  ========  ==========   ==========  ========   =============== 
 
 

The accompanying notes are an integral part of this statement.

Unaudited Consolidated Statement of Changes in Shareholders' Equity

For the 6 months ended 31 August 2011

 
                                            Special 
                   Issued     Share   Distributable   Capital   Revenue 
                  Capital   Premium         Reserve   Reserve   Reserve     Total 
                  GBP'000   GBP'000         GBP'000   GBP'000   GBP'000   GBP'000 
 6 months ended 
 31 August 
 2011 
 Group 
 Balance at 1 
  March 2011           87     8,225               -     (103)     (132)     8,077 
                 --------  --------  --------------  --------  --------  -------- 
 Cancellation 
  of share 
  premium                   (8,225)           8,225         -         -         - 
 Loss after tax         -         -               -     (269)      (67)     (336) 
 Total 
  comprehensive 
  income for 
  the year              -         -               -     (269)      (67)     (336) 
                 --------  --------  --------------  --------  --------  -------- 
 Balance at 31 
  August 2011          87         -           8,225     (372)     (199)     7,741 
                 ========  ========  ==============  ========  ========  ======== 
 
 Capital 
 Reserve 
 consists of: 
 Unrealised 
  gain on 
  Investments                                           (186) 
 Realised 
  losses                                                (186) 
                                                        (372) 
                                                     -------- 
 Parent Company 
 Balance at 1 
  March 2011           87     8,225               -     (113)     (122)     8,077 
                 --------  --------  --------------  --------  --------  -------- 
 Cancellation 
  of share 
  premium               -   (8,225)           8,225         -         -         - 
 Loss after tax         -         -               -     (274)      (62)     (336) 
 Total 
  comprehensive 
  loss for the 
  year                  -         -               -     (274)      (62)     (336) 
                 --------  --------  --------------  --------  --------  -------- 
 Balance at 31 
  August 2011          87         -           8,225     (387)     (184)     7,741 
                 ========  ========  ==============  ========  ========  ======== 
 
 Capital 
 Reserve 
 consists of: 
 Unrealised 
  loss on 
  Investments                                           (276) 
 Realised 
  losses                                                (111) 
                                                        (387) 
                                                     -------- 
 
 

Unaudited Consolidated Statement of Changes in Shareholders' Equity (continued)

For the 6 months ended 31 August 2011

 
                   Issued     Share         Special   Capital   Revenue 
                  Capital   Premium   Distributable   Reserve   Reserve     Total 
                  GBP'000   GBP'000         Reserve   GBP'000   GBP'000   GBP'000 
 Period ended 
 28 February 
 2011 
 Group 
 Issue of share 
  capital              87     8,659               -         -         -     8,746 
 Cost of issue 
  of shares             -     (434)               -         -         -     (434) 
 Transactions 
  with owners          87     8,225               -         -         -     8,312 
                 --------  --------  --------------  --------  --------  -------- 
 Loss after tax         -         -               -     (103)     (132)     (235) 
 Total 
  comprehensive 
  income for 
  the year              -         -               -     (103)     (132)     (235) 
                 --------  --------  --------------  --------  --------  -------- 
 Balance at 28 
  February 
  2011                 87     8,225               -     (103)     (132)     8,077 
                 ========  ========  ==============  ========  ========  ======== 
 
 Capital 
 Reserve 
 consists of: 
 Unrealised 
  gain on 
  Investments                                              31 
 Realised 
  losses                                                (134) 
                                                        (103) 
                                                     -------- 
 Parent Company 
 Issue of share 
  capital              87     8,659               -         -         -     8,746 
 Cost of issue 
  of shares             -     (434)               -         -         -     (434) 
 Transactions 
  with owners          87     8,225               -         -         -     8,312 
                 --------  --------  --------------  --------  --------  -------- 
 Loss after tax         -         -               -     (113)     (122)     (235) 
 Total 
  comprehensive 
  loss for the 
  year                  -         -               -     (113)     (122)     (235) 
                 --------  --------  --------------  --------  --------  -------- 
 Balance at 28 
  February 
  2011                 87     8,225               -     (113)     (122)     8,077 
                 ========  ========  ==============  ========  ========  ======== 
 
 Capital 
 Reserve 
 consists of: 
 Unrealised 
  loss on 
  Investments                                            (53) 
 Realised 
  losses                                                 (60) 
                                                        (113) 
                                                     -------- 
 

The accompanying notes are an integral part of this statement.

Unaudited Consolidated Statement of Cash Flows

For the 6 months ended 31 August 2011

 
                              Unaudited             Audited        Unaudited 
                         6 months ended        Period ended     Period ended 
                                                28 February 
                         31 August 2011                2011   31 August 2010 
                   --------------------  ------------------ 
                                 Parent              Parent          Group & 
                      Group     Company     Group   Company          Company 
                    GBP'000     GBP'000   GBP'000   GBP'000          GBP'000 
 Cash flows from 
 operating 
 activities 
 Loss before 
  taxation            (336)       (336)     (235)     (235)            (142) 
 Realised (gain) 
 on investments           -           -         -      (73)                - 
 Unrealised 
  (gain) / loss 
  on investments        218         223      (31)        53             (11) 
 Cash absorbed by 
  operations          (118)       (113)     (266)     (255)            (153) 
 Decrease / 
  (increase) in 
  receivables            15           2      (32)      (31)             (13) 
 Decrease / 
  (increase) in 
  forward 
  contracts               2           2       (4)       (4)                - 
 (Decrease) / 
  increase in 
  payables and 
  accruals             (20)        (10)        87        74               80 
 Net cash flows 
  from operating 
  activities          (121)       (119)     (215)     (216)             (86) 
                   --------  ----------  --------  --------  --------------- 
 Cash flow from 
 investing 
 activities 
 Purchase of 
  financial 
  assets at fair 
  value through 
  profit or loss    (3,473)     (3,473)   (3,988)   (3,988)          (1,237) 
 Disposal 
  proceeds of 
  financial 
  assets at fair 
  value through 
  profit or loss         51          51         -         -                - 
 Cash acquired on 
 acquisition of 
 subsidiary 
 undertaking              -           -         1         -                - 
 Net cash flows 
  from investing 
  activities        (3,422)     (3,422)   (3,987)   (3,988)          (1,237) 
                   --------  ----------  --------  --------  --------------- 
 Cash flows from 
 financing 
 activities 
 Issue of shares          -           -     8,746     8,746            8,312 
 Cost of share 
  issue                   -           -     (434)     (434)                - 
 Net cash flows 
  from financing 
  activities              -           -     8,312     8,312            8,312 
                   --------  ----------  --------  --------  --------------- 
 Net increase in 
  cash and cash 
  equivalents       (3,543)     (3,541)     4,110     4,108            6,989 
                   ========  ==========  ========  ========  =============== 
 Reconciliation 
 of net cash flow 
 to movements in 
 cash and cash 
 equivalents 
 Cash and cash 
  equivalents at 
  1 March 2011        4,110       4,108         -         -                - 
 Net increase in 
  cash and cash 
  equivalents       (3,543)     (3,541)     4,110     4,108            6,989 
 Cash and cash 
  equivalents at 
  31 August 2011        567         567     4,110     4,108            6,989 
                   ========  ==========  ========  ========  =============== 
 

The accompanying notes are an integral part of this statement.

Notes to the Unaudited Consolidated Interim Financial Report

For the 6 months ended 31 August 2011

1 Corporate Information

The Unaudited Consolidated Interim Financial Report of the Company for the 6 months ended 31 August 2011 was authorised for issue in accordance with a resolution of the Directors on 11 October 2011.

The Company applied for listing on the London Stock Exchange on 29 January 2010.

TP70 2010 VCT plc is incorporated and domiciled in Great Britain. The address of TP70 2010 VCT plc's registered office, which is also its principal place of business, is 4-5 Grosvenor Place, London, SW1X 7HJ.

TP70 2010 VCT plc's Interim Report is presented in Pounds Sterling (GBP) which is also the functional currency of the Company, rounded to the nearest thousand.

The financial information set out in this report does not constitute statutory accounts as defined in S434 of the Companies Act 2006.

The principal activity of the Company is investment. The Company's investment strategy is to offer combined exposure to GAM's Trading strategy and venture capital investments focused on companies with contractual revenues from financially secure counterparties.

2 Basis of preparation and accounting policies

Basis of preparation

The Interim Report of the Company for the 6 months ended 31 August 2011 has been prepared in accordance with IAS 34: Interim Financial Reporting. They do not include all of the information required for full Financial Statements and should be read in conjunction with the Financial Statements for the year ended 28 February 2011.

Estimates

The preparation of the Consolidated Interim Report requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenditure. Actual results may differ from these estimates.

3. Seasonality of operations

The Company's operations are not seasonal.

4. Segmental reporting

The Company's segments are defined by the financial information provided to the Board. The Company only has one class of business, being investment activity. All revenues and assets are generated and held in the UK.

5. Investment Income

 
                                 Unaudited                       Audited                     Unaudited 
                            6 months ended                  Period ended                  Period ended 
                            31 August 2011              28 February 2011                31 August 2010 
              ----------------------------  ----------------------------  ---------------------------- 
                  Rev.      Cap.     Total      Rev.      Cap.     Total      Rev.      Cap.     Total 
               GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000 
 Income 
  receivable 
  on bank 
  balances 
  and money 
  market 
  funds              7         -         7        37         -        37        10         -        10 
 Loan 
  interest 
  receivable         4         -         4         -         -         -         -         -         - 
 Total              11         -        11        37         -        37        10         -        10 
              --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 

6. Gain on Investments

 
                                   Unaudited                       Audited                     Unaudited 
                              6 months ended                  Period ended                  Period ended 
                              31 August 2011              28 February 2011                31 August 2010 
               -----------------------------  ----------------------------  ---------------------------- 
                    Rev.      Cap.     Total      Rev.      Cap.     Total      Rev.      Cap.     Total 
                 GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000 
 Realised 
  gain on 
  forward 
  contract             -        23        23         -         4         4         -         -         - 
 Unrealised 
  gain on 
  forward 
  contract             -         1         1         -        14        14         -         -         - 
 Unrealised 
  (loss)/gain 
  on 
  financial 
  assets held 
  at fair 
  value 
  through 
  profit or 
  loss                 -     (218)     (218)         -        17        17         -        11        11 
 Total                 -     (194)     (194)         -        35        35         -        11        11 
               ---------  --------  --------  --------  --------  --------  --------  --------  -------- 
 

7. Investment management fees

Triple Point Investment Management LLP provides investment management and administration services to the Group under an Investment Management Agreement effective 2 February 2010. The agreement runs for a period of 5 years and may be terminated at any time thereafter by not less than twelve months' notice given by either party and which provides for an administration and investment management fee of 2.25% per annum of net assets calculated and payable quarterly in arrears. Should such notice be given, the Investment Manager would perform its duties under the Investment Management Agreement and receive its management fee during the notice period.

8. Directors' Remuneration

 
                                Unaudited                       Audited                     Unaudited 
                           6 months ended                  Period ended                  Period ended 
                           31 August 2011              28 February 2011                31 August 2010 
             ----------------------------  ----------------------------  ---------------------------- 
                 Rev.      Cap.     Total      Rev.      Cap.     Total      Rev.      Cap.     Total 
              GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000 
 Charles 
  Metcalfe, 
  Chairman          8         -         8        17         -        17        10         -        10 
 Simon 
  Acland            6         -         6        15         -        15         8         -         8 
 Prof. 
  Elroy 
  Dimson            4         -         4         -         -         -         -         -         - 
 Chris 
  Tottle            2         -         2         6         -         6         -         -         - 
 David Dick         -         -         -         8         -         8         8         -         8 
 Total             20         -        20        46         -        46        26         -        26 
             --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 

9. Taxation

 
                                 Unaudited                       Audited                     Unaudited 
                            6 months ended                  Period ended                  Period ended 
                            31 August 2011              28 February 2011                31 August 2010 
              ----------------------------  ----------------------------  ---------------------------- 
                  Rev.      Cap.     Total      Rev.      Cap.     Total      Rev.      Cap.     Total 
               GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000 
 Loss from 
  continued 
  operations 
  before 
  tax             (67)     (269)     (336)     (132)     (103)     (235)      (91)      (51)     (142) 
 Capital 
  losses/ 
  (gains) 
  not 
  taxable            -       194       194         -      (35)      (35)         -      (11)      (11) 
 Taxable 
  loss in 
  the 
  period          (67)      (75)     (142)     (132)     (138)     (270)      (91)      (62)     (153) 
 Taxable 
  losses 
  brought 
  forward 
  from 
  previous 
  year           (132)     (138)     (270)         -         -         -         -         -         - 
 Unused tax 
  losses 
  carried 
  forward        (199)     (213)     (412)     (132)     (138)     (270)      (91)      (62)     (153) 
              --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Tax value 
  of unused 
  tax losses 
  carried 
  forward at 
  21% (21%)         42        45        87        28        29        57        19        13        32 
              --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 Tax charge          -         -         -         -         -         -         -         -         - 
  for 
  period 
              --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 

Capital gains and losses are exempt from corporation tax due to the Company's status as a Venture Capital Trust.

10. Loss per share

The loss per share is based on a loss from ordinary activities after tax of GBP336,000 and on the weighted average number of shares in issue during the period of 8,746,340.

11. Cash and cash equivalents

Cash and cash equivalents comprise deposits with The Royal Bank of Scotland plc.

12. Share Capital

 
 Share capital                 Unaudited                   Audited                   Unaudited 
                          31 August 2011          28 February 2011              31 August 2010 
                 -----------------------   -----------------------   ------------------------- 
                                  Issued                    Issued 
                                       &                         &                    Issued & 
                                   Fully                     Fully                       Fully 
                  Authorised        Paid    Authorised        Paid      Authorised        Paid 
 Ordinary 
 Shares of 1p 
 
 Number of 
  shares          60,000,000   8,746,340    60,000,000   8,746,340      60,000,000   8,746,340 
 Par Value 
  GBP'000                600          87           600          87             600          87 
                 -----------  ----------   -----------  ----------   -------------  ---------- 
 
 

13. Net asset value per share

The calculation of net asset value per share is based on net assets of GBP7,741,000 divided by the 8,746,340 shares in issue.

14. Commitments and contingencies

The Company has no contingent liabilities. The Company's only commitments are to make the VCT qualifying investment of GBP1.725m referred to the Investment Manager's Review.

15. Related party transactions

Chris Tottle, who resigned as a director of the Company on 27 April 2011, has an equity interest in Triple Point LLP (TPLLP). TPLLP in turn has a controlling interest in TPIM. During the period, TPIM received GBP100,000, which has been expensed, for providing management and administrative services to the Company.

16. Post balance sheet events

On 30 September 2011 the Company disposed of the investments held in GAM Multi-Focused Macro SP USD Open and GAM Multi-Systematic Trading USD Open in order to make VCT qualifying investments in line with its investment policy.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR VLLBFFBFEFBX

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