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Regulatory News


Half-year Report

Thu, 11th Oct 2018 16:07


RNS Number : 8012D
Triple Point VCT 2011 PLC
11 October 2018

Triple Point VCT 2011 plc

LEI: 213800AOOAQA5XQDEA89

Interim Results

The directors of Triple Point VCT 2011 VCT plc are pleased to announce its Interim results for the six months to 31 August 2018.

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

6 months ended 31 August 2018

Unaudited

Ord Shares

A Shares

B Shares

Total

Net assets

'000

-

10,524

6,823

17,347

Net asset value per share

Pence

-

105.77p

99.93p

n/a

Profit/(loss) before tax

'000

-

198

(4)

194

Earnings/(loss) per share

Pence

-

1.62p

(0.07p)

n/a

Cumulative return to shareholders (p)

Net asset value per share

-

105.77p

99.93p

Total dividends paid

-

6.75p

-

Net asset value plus dividends paid

-

112.52p

99.93p

Year ended 28 February 2018

Audited

Ord Shares

A Shares

B Shares

Total

Net assets

'000

-

10,637

6,826

17,463

Net asset value per share

Pence

-

106.90p

100.00p

n/a

(Loss)/profit before tax

'000

(2)

783

16

797

(Loss)/earnings per share

Pence

(0.03p)

6.83p

0.24p

n/a

Cumulative return to shareholders (p)

Net asset value per share

-

106.90p

100.00p

Total dividends paid

115.05p

4.00p

-

Net asset value plus dividends paid

115.05p

110.90p

100.00p

6 months ended 31 August 2017

Unaudited

Ord Shares

A Shares

B Shares

Total

Net assets

'000

875

10,190

6,806

17,871

Net asset value per share

Pence

4.30p

102.41p

99.73p

n/a

(Loss)/profit before tax

'000

(2)

286

(3)

281

(Loss)/earnings per share

Pence

(0.02p)

2.34p

(0.03p)

n/a

Cumulative return to shareholders (p)

Net asset value per share

4.30p

102.41p

99.73p

Total dividends paid

110.75p

4.00p

-

Net asset value plus dividends paid

115.05p

106.41p

99.73p

Triple Point VCT 2011 plc ("the Company") is a Venture Capital Trust ("VCT"). The Investment Manager is Triple Point Investment Management LLP ("TPIM" and "Triple Point"). The Company was incorporated in July 2010.

A Shares: On 30 April 2015 the A Share Class offer closed having raised 10.3 million with a total of 9,951,133 A Shares being issued.

B Shares: On 29 April 2017 the B Share Class offer closed having raised 6.97 million with a total of 6,824,266 B Shares being issued.

Chairman's Statement

I am writing to present the Interim Financial Report for Triple Point VCT 2011 plc ("the Company") for the period ended 31 August 2018.

During the period the Company continued to monitor the ongoing operation of the A Share Class investments and completed the commissioning of the gas power plants in the B Share Class portfolio. We are pleased to report, both the A Share Class and the B Share Class portfolios remain fully invested and are performing in line with expectations.

Furthermore during the period, the Company and Investment Manager were pleased to announce, subject to Shareholder approval, the launch of an Offer for subscription into the Venture Fund, a newly established share class within the Company. The new share class aims to invest in a portfolio of early stage businesses, with the potential for significant long term tax-free capital growth and long term tax-free income. Launching an Offer for the Venture Fund within the Company, as opposed to an offer by a new VCT, has amongst others, the benefit of cost savings for all shareholders.

Investment Portfolio

The Company's funds at 31 August 2018 were 98% invested in a portfolio of VCT qualifying and non-qualifying unquoted investments. It continues to meet the condition that 70% of relevant funds must be invested in qualifying investments.

The Investment Manager's review on pages 4 to 7 gives an update on the portfolio of investments in 12 small unquoted businesses.

A Share Class

The A Share Class has investments in six companies in the Hydroelectric Power sector which between them own seven hydroelectric schemes in the Scottish Highlands.

I am pleased to report the A Share Class has recorded a profit over the period of 1.62p per share and as at 31 August 2018 the NAV per share stood at 105.77p. On 28 June 2018 the A Class Shareholders were paid their second dividend of 273,656 equal to 2.75p per share, taking total dividends paid to A Shareholders to 6.75p per share. As previously reported, the Company's distributable reserves are restricted until March 2019, after which the Board expects the Company to be able to pay dividends at higher levels in order to meet the A Share Class target.

B Share Class

The B Share Class has investments in two companies that have each constructed a gas fired energy centre. In May 2018 both energy centres were successfully commissioned and are now fully operational.

The B Share Class has recorded a small loss over the period of 0.07p per share due to running costs of the Share Class exceeding income while investments are in their start up periods. At 31 August 2018 the NAV per share stood at 99.93p.

Specific Risks

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

Investment risk associated with the VCT's portfolio of unquoted investments;

Risk of failure to maintain approval as a qualifying VCT; and

Risk of inability to realise investments in order to return funds to investors in line with expectations.

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

In the Financial Accounts for the period ended 28 February 2018 we highlighted changes to the VCT landscape with the government, through its 'Financing Growth in Innovative Firms' consultation ("the Patient Capital Review") which emphasised the importance of VCT's in helping to provide investments into SMEs. Several changes proposed, including increasing a VCT's minimum qualifying percentage threshold from 70% to 80% which will come into effect for the Company from 6 April 2020.

Another key finding of the Patient Capital Review is that qualifying investments (from 6 April 2018) must now adhere to new deployment timelines with 30% of new funds required to be invested within the first 12 months compared to the previous timeframe of 3 years.

The Company, along with the Investment Manager, has identified and is currently in the process of introducing new procedures to ensure the transition required will have a minimal effect on the Company. The Board is pleased to report good progress has been made and the Company is on track to implement the required changes.

Venture Fund

In September 2018 the Company launched a new Venture Fund Offer of up to 15 million with an over-allotment facility of a further 15 million. Subject to shareholder approval, the intention of the Offer is to raise capital to acquire a portfolio of Qualifying Investments in early stage companies, capable of generating significant long term capital growth, whilst enabling investors to take advantage of the substantial tax reliefs available to Investors in VCT's, including 30% income tax relief on amounts invested.

The new Venture Fund share class targets significant capital growth by investing in innovative companies. These companies are sourced from Triple Point's Venture Network and have the potential to deliver ground-breaking technology or products, at scale, and to transform markets. The Offer builds on the Investment Manager's strong track record of early stage investing with a distinct approach.

If you have any questions about your investment, please do not hesitate to contact Triple Point on 020 7201 8990.

Jane Owen

Chairman

11 October 2018

Investment Manager's Review

Sector Analysis

During the period there has been no changes to the Unquoted Investment portfolio.

The unquoted investment portfolio can be analysed as follows:

Electricity Generation

SME Funding

Industry Sector

Hydro Electric Power

Gas Power

Hydro Electric Power

Other *

Total Unquoted Investments

'000

'000

'000

'000

'000

Investments at 31 August 2018

A Shares

6,577

-

1,652

1,515

9,744

B Shares

-

5,100

-

1,710

6,810

6,577

5,100

1,652

3,225

16,554

Unquoted Investments %

39.73%

30.81%

9.98%

19.48%

100.00%

* Other SME funding includes 1,515,000 of A Ordinary Share Class investments and 1,710,000 of B Ordinary Share Class investment in to a UK based LLP which provides finance to small and medium sized enterprises.

A Share Class

Hydro Electric Power - 67%

SME Funding Hydro Electric Power - 17%

SME Funding - Other - 16%

B Share Class

Gas Power - 75%

SME Funding - Other - 25%

The VCT was established to fund small and medium sized enterprises. It has two share classes with separate portfolios as detailed on page 4. At the period end the overall portfolio comprised investments in 12 small, unquoted companies in two sectors: electricity generation and SME funding.

On 18 September 2018 the Company launched an Offer for a new Venture Fund Share Class. This is discussed further in the Review & Outlook Section below.

With both remaining share classes fully invested, the Company and the Investment Manager continue to focus on asset optimisation and portfolio management.

The Company's portfolio consists of businesses which are fully operational and revenue generating. Generally, performance during the period across the portfolio has been in line with expectations with the A Share Class recording an uplift in NAV (including dividends) from the performance of its portfolio from 110.90p per share to 112.52p per share. The B Share Class recorded a 0.07p loss which has reduced the NAV from 100.00p per share to 99.93p due to the ongoing operational costs exceeding revenues during the construction phase of the assets.

Review & Outlook

A Share Class

The A Share Class has investments in six hydro-electric companies which between them own seven hydro-electric schemes in the Scottish Highlands. All seven schemes have been commissioned and are operational. The A Share Class also has investments in two other companies which provide funding to SMEs.

We are pleased to report that the performance of the hydro schemes has improved over the course of early 2018. Overall the A Share Class is pleased to have recorded a profit of 1.62p per share for the period.

The seven hydro-electric schemes are "run of river" plants which capture river flow agreed above a certain level as determined by the Scottish Environment Protection Agency (SEPA). Water flow is generally captured before a descent and flows down the penstock (pipe) to a turbine engine which produces electricity. The water is then returned to the river. The hydro companies benefit from government backed Feed-in Tariff payments based on output and also from the sale of the electricity produced to utilities or other power companies under Power Purchase Agreements (PPAs). The companies have continued to obtain better power prices than were originally forecast, currently earning an average of 6.19 pence per kWh compared to an expected 5 pence per kWh at the outset of the projects.

The hydro companies remain highly focussed on seeking further efficiencies and operating improvements.

The companies, together with other industry members and the British Hydropower Association, are continuing to lobby the Scottish Government to recognise the concern on business rates in the Hydro sector.

Two schemes received rateable values for business rates at the end of 2017-18 and the Scottish Government has applied a 25% relief for this year. From 1st April 2018, a 60% relief on business rates for hydro schemes has been applied. Longer term, the Scottish Government has confirmed that it will work alongside industry organisations to fast track a review of the Plant and Machinery Order, which should address business rates in the Hydro sector.

Although it was a very dry, May, June and July, overall we are pleased with the performance of the portfolio to date and we believe that, as the portfolio matures, there remains the opportunity to further enhance its value through continued strategic operational management.

Top Holdings by the A Share Fund

Qualifying

Green Highland Allt Garbh Ltd has constructed a 1,300 KW run-of-river hydro-electric power plant near Glen Affric, Cannich. The scheme completed construction and was commissioned in July 2017. The company earns Feed-in-Tariffs and other revenues from the generation and export of electricity to the National Grid.

Green Highland Allt Ladaidh (1148) Ltd operates a 1,350 KW run-of-river hydro-electric power plant near Loch Garry, Invergarry in the Scottish Highlands. The company earns Feed-in-Tariffs and other revenues from the generation and export of electricity to the National Grid.

Green Highland Allt Luaidhe (228) Ltd operates a 500 KW run-of-river hydro-electric power plant located in Knockie, Whitebridge near Inverness in the Scottish Highlands. The company earns Feed-In-Tariffs from the generation and export of electricity to the National Grid.

Green Highland Allt Phocachain (1015) Ltd operates two separate 500 KW run-of-river hydraulic power plants located in Glen Moriston, in the Scottish Highlands. The company earns Feed-in-Tariffs from generation and export of electricity to the National Grid.

Non-Qualifying

Broadpoint 2 Ltd has provided investment to hydro-electric power companies.

Broadpoint 3 Ltd owns equity stakes in hydro-electric power companies and one rooftop solar PV company.

Funding Path Ltd has invested in an LLP that provides finance to small and medium sized enterprises (SMEs).

Modern Power Generation Ltd has invested in an LLP that provides finance to small and medium sized enterprises (SMEs).

B Share Class

The B Share Class remains fully invested with one Non-Qualifying Investment and two Qualifying Investments in companies operating gas fired energy centres. Both energy centres have now completed construction and were successfully commissioned during May 2018. These energy centres are containerised gas combustion engines that generate electricity for onward sale, especially at times when there is high demand for power. The UK is aiming to close its coal-fired power plants by 2025, and it is therefore expected that there will be a shortage in the supply of energy in the UK. Although renewable energy makes an increasing contribution, the irregular nature of its production means that other baseload sources will also be required to make up the deficit.

The companies have taken advantage of a gap in the market by constructing and operating gas fired energy centres to produce and sell electricity to customers. The energy centres utilise simple technology, provided by Rolls Royce, to deliver a reliable and secure energy supply.

Gas will be purchased from the National Transmission System and combusted in the engines. The electricity will then be exported to the National Grid and sold under a power purchase agreement. The companies will receive revenues from the sale of electricity and income from embedded benefits.

Embedded benefits cover a range of payments available to small electricity generators connected to the distribution network, rather than the transmission grid. Benefits can be earned for generating at peak times and for local distribution.

In addition generators can earn additional revenues by operating outside the peak 4-7pm hours to take advantage of 'intraday' and 'post-gate closure' price volatility.

Both qualifying companies detailed below completed the construction of their gas fired energy centres in May 2018 and are fully operational. The construction had been delayed, but to compensate for loss of revenue, liquidated damages are being charged to the contractor in accordance with the terms of the contract. A more detailed review will be included once the energy centres have sufficient operating history for meaningful analysis.

In the year ahead our focus will be on working with the companies to attempt to maximise their performance in line with the return targets of the Share Class.

Top Holdings by the B Share Fund

Qualifying

Distributed Generators Ltd has constructed a 5 MW gas power plant in Bedford. The 2 x 2.5 MW gas fired MTU Rolls Royce Engines have been successfully installed and the site was commissioned in May 2018.

Green Peak Generation Ltd has constructed a 7.44 MW gas power plant in Workington, Cumbria. The 3 containerised 2.48 MW gas fired MTU Rolls Royce Engines have been successfully installed and the site was commissioned in May 2018.

Non-Qualifying

Modern Power Generation Ltd: has invested in an LLP that provides finance to small and medium sized enterprises (SMEs).

TPIM have agreed to continue not to charge its management fees for the period on the amounts invested in gas power projects. These investments represent circa 75% of the B Share Class NAV, this position will be reviewed once these investments start to generate income for the B Share Class.

Non-Qualifying Investments

SME Funding

The Company has non-qualifying investments in four finance companies. These companies provide funds to a dedicated non-bank SME lending business which aims to address the financing needs of the UK SME market by providing business critical loans and asset finance to over 100,000 UK Corporate and SME customers.

Venture Fund

The Venture Fund was launched in September 2018, and subject to Shareholder approval, will primarily focus on providing funding to unquoted companies at an early stage in their lifecycle to help them grow and scale. For early stage companies, the journey from start-up to scale-up is usually the most uncertain time in its lifecycle. The Venture Fund's investment strategy was developed to help start-ups establish market fit faster and increase their chances of reaching scale. The Company's Venture Fund will typically make initial investments of between 50,000 and 2 million.

Working with industry experts, the Investment Manager has established a network of innovation specialists and venture capitalists (the "Triple Point Venture Network") which will work proactively with high-growth companies that are actively solving problems for large corporates. Together with the Triple Point Venture Network, the Investment Manager, on behalf of the Venture Fund, will identify innovative small businesses and make investment recommendations into small businesses once their products are validated by the market.

Launching an Offer for the Venture Fund within the Company, as opposed to an offer by a new VCT, has amongst other benefits, the potential for cost savings for all investors. Over the lifetime of the Company, there should be a saving per A Share and B Share in the fixed operating costs, as these will be shared with the Venture Fund. Furthermore, as part of introducing the Venture Fund and to improve liquidity, all shareholders will benefit from a proposed improved share buy-back facility, with a reduction in the target discount applied to NAV from 10% to 5%.

If you have any questions, please do not hesitate to call us on 020 7201 8990.

Claire Ainsworth

Partner

For Triple Point Investment Management LLP

11 October 2018

Investment Portfolio

Unaudited

Audited

31 August 2018

28 February 2018

Cost

Valuation

Cost

Valuation

'000

%

'000

%

'000

%

'000

%

Unquoted qualifying holdings

11,423

69.01

11,677

69.21

11,423

68.84

11,677

69.07

Non-Qualifying holdings

4,811

29.06

4,877

28.92

4,811

29.01

4,877

28.84

Financial assets at fair value through profit or loss

16,234

98.07

16,554

98.13

16,234

97.85

16,554

97.91

Cash and cash equivalents

319

1.93

319

1.87

353

2.15

353

2.09

16,553

100.00

16,873

100.00

16,587

100.00

16,907

100.00

Qualifying Holdings

Unquoted

Hydro Electric Power

Green Highland Allt Choire A Bhalachain Ltd

30

0.18

30

0.18

30

0.18

30

0.18

Green Highland Allt Garbh Ltd

2,250

13.59

2,250

13.33

2,250

13.56

2,250

13.31

Green Highland Allt Ladaidh (1148) Ltd

1,470

8.88

1,802

10.68

1,470

8.86

1,802

10.66

Green Highland Allt Luaidhe (228) Ltd

855

5.17

937

5.55

855

5.15

937

5.54

Green Highland Allt Phocachain (1015) Ltd

858

5.18

1,005

5.96

858

5.17

1,005

5.94

Green Highland Shenval Ltd

860

5.20

553

3.28

860

5.18

553

3.27

Gas Power

Distributed Generators Ltd

3,200

19.33

3,200

18.97

3,200

19.29

3,200

18.93

Green Peak Generation Ltd

1,900

11.48

1,900

11.26

1,900

11.45

1,900

11.24

11,423

69.01

11,677

69.21

11,423

68.84

11,677

69.07

Non-Qualifying Holdings

Unquoted

Hydro Electric Power

Green Highland Allt Choire A Bhalachain Ltd

3

0.02

3

0.02

3

0.02

3

0.02

Green Highland Allt Ladaidh (1148) Ltd

30

0.18

30

0.18

30

0.18

30

0.18

Green Highland Allt Luaidhe (228) Ltd

61

0.37

61

0.36

61

0.37

61

0.36

Green Highland Allt Phocachain (1015) Ltd

2

0.01

3

0.02

2

0.01

3

0.02

SME Funding:

Hydro Electric Power

Broadpoint 2 Ltd

550

3.32

550

3.26

550

3.32

550

3.25

Broadpoint 3 Ltd

1,005

6.07

1,005

5.96

1,005

6.06

1,005

5.94

Other

Funding Path Ltd

1,000

6.04

1,000

5.93

1,000

6.03

1,000

5.91

Modern Power Generation Ltd

2,160

13.05

2,225

13.19

2,160

13.02

2,225

13.16

4,811

29.06

4,877

28.92

4,811

29.01

4,877

28.84

Financial Assets including those held for sale are measured at fair value through profit or loss. The initial best estimate of fair value of these investments that are either quoted or unquoted on an active market is the transaction price (i.e. cost). The fair value of these investments is subsequently measured by reference to the enterprise value of the investee company, which is best deemed to reflect the fair value. Where the Board considers the investee company's enterprise value to remain unchanged since acquisition, investments continue to be held at cost less any loan repayments received. Where the Board considers the investee company's enterprise value has changed since acquisition, investments are held at a value measured using a discounted cash flow model or the value to be realised on disposal which is equivalent to fair value.

Directors' Responsibility Statement

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

In preparing the Interim Financial Report for the 6 month period to 31 August 2018, the Directors confirm that to the best of their knowledge this condensed set of financial statements has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union and that the Chairman's statement on pages 2 and 3 includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8 of the Disclosure and Transparency rules of the United Kingdom's Financial Conduct Authority namely:

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

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

c) the Interim Financial Report includes a fair review of related party transactions and changes therein. There were no related party transactions for the accounting period; and

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

The Directors have reasonable expectations that the Company has adequate resources to continue in operational existence for at least the next 12 months. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

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

Jane Owen

Chairman

11 October 2018

Uaudited Statement of Comprehensive Income

Unaudited

Audited

Unaudited

Year ended

Year ended

6 months ended

31 August 2018

28 February 2018

31 August 2017

Note

Revenue

Capital

Total

Revenue

Capital

Total

Revenue

Capital

Total

'000

'000

'000

'000

'000

'000

'000

'000

'000

Investment income

4

364

-

364

715

-

715

364

-

364

(Loss) arising on the realisation of investments during the period

-

-

-

-

(17)

(17)

-

(17)

(17)

Gain arising on the revaluation of investments at the period end

-

-

-

-

264

264

-

6

6

Investment return

364

-

364

715

247

962

364

(11)

353

Investment management fees

5

68

23

91

24

8

32

31

(15)

16

Financial and regulatory costs

14

-

14

26

-

26

12

-

12

General administration

22

-

22

42

(19)

23

2

-

2

Legal and professional fees

20

-

20

38

(2)

36

20

(2)

18

Directors' remuneration

6

23

-

23

48

-

48

24

-

24

Operating expenses

147

23

170

178

(13)

165

89

(17)

72

Profit/(loss) before taxation

217

(23)

194

537

260

797

275

6

281

Taxation

7

(41)

5

(36)

(102)

(2)

(104)

(52)

(3)

(55)

Profit/(loss) after taxation

176

(18)

158

435

258

693

223

3

226

Profit and total comprehensive income/(loss) for the period

176

(18)

158

435

258

693

223

3

226

Basic & diluted earnings per share (pence)

Ordinary Share

8

-

-

-

(0.04p)

0.01p

(0.03p)

(0.03p)

0.01p

(0.02p)

A Share

8

1.77p

(0.15p)

1.62p

4.44p

2.39p

6.83p

2.29p

0.05p

2.34p

B Share

8

(0.02p)

(0.05p)

(0.07p)

(0.01p)

0.25p

0.24p

0.01p

(0.04p)

(0.03p)

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 in accordance with the Association of Investment Companies Statement of Recommended Practice (AIC SORP). All revenue and capital items in the above statement derive from continuing operations. This Statement of Comprehensive Income includes all recognised gains and losses. The accompanying notes are an integral part of this statement.

Unaudited Balance Sheet

Unaudited

Audited

Unaudited

31 August 2018

28 February 2018

31 August 2017

Note

'000

'000

'000

Non-current assets

Financial assets at fair value through profit or loss

16,554

16,554

16,296

Current assets

Receivables

771

779

705

Cash and cash equivalents

9

319

353

985

1,090

1,132

1,690

Total assets

17,644

17,686

17,986

Current liabilities

Payables and accrued expenses

157

120

59

Current taxation payable

140

103

56

297

223

115

Net assets

17,347

17,463

17,871

Equity attributable to equity holders

Share capital

10

168

168

371

Share Premium

16,683

16,683

16,683

Share redemption reserve

-

-

1

Capital reserve

301

319

593

Revenue reserve

195

293

223

Total equity

17,347

17,463

17,871

Shareholders' funds

Net asset value per Ordinary Share

11

-

-

4.30p

Net asset value per A Share

11

105.77p

106.90p

102.41p

Net asset value per B Share

11

99.93p

100.00p

99.73p

The statements were approved by the Directors and authorised for issue on 11 October 2018 and are signed on their behalf by:

Jane Owen

Chairman

11 October 2018

The accompanying notes are an integral part of this statement.

Unaudited Statement of Changes in Shareholders' Equity

Issued Capital

Share Premium

Share Redemption Reserve

Special Distributable Reserve

Capital Reserve

Revenue Reserve

Total

'000

'000

'000

'000

'000

'000

'000

6 months ended 31 August 2018 (Unaudited)

Opening balance

168

16,683

-

-

319

293

17,463

Dividends paid

-

-

-

-

-

(274)

(274)

Transactions with owners

-

-

-

-

-

(274)

(274)

(Loss)/profit after taxation

-

-

-

-

(18)

176

158

Total comprehensive (loss)/profit for the period

-

-

-

-

(18)

176

158

Balance at 31 August 2018

168

16,683

-

-

301

195

17,347

The Capital Reserve consists of:

Investment holding gains

320

Other realised losses

(19)

301

Year ended 28 February 2018 (Audited)

Opening balance

371

16,683

1

255

1,443

715

19,468

Cancellation of shares

(203)

-

(1)

-

1

-

(203)

Dividend Paid

-

-

-

(255)

(1,383)

(857)

(2,495)

Transactions with owners

(203)

-

(1)

(255)

(1,382)

(857)

(2,698)

Profit after taxation

-

-

-

-

258

435

693

Total comprehensive profit for the year

-

-

-

-

258

435

693

Balance at 28 February 2018

168

16,683

-

-

319

293

17,463

The Capital Reserve consists of:

Investment holding gains

320

Other realised losses

(1)

319

6 months ended 31 August 2017 (Unaudited)

Opening balance

371

16,683

1

255

1,443

715

19,468

Dividends paid

-

-

-

(255)

(853)

(715)

(1,823)

Transactions with owners

-

-

-

(255)

(853)

(715)

(1,823)

Profit after taxation

-

-

-

-

3

223

226

Total comprehensive profit for the period

-

-

-

-

3

223

226

Balance at 31 August 2017

371

16,683

1

-

593

223

17,871

The Capital Reserve consists of:

Investment holding gains

62

Other realised gains

531

593

The capital reserve represents the proportion of Investment Management fees charged against capital and realised/unrealised gains or losses on the disposal/revaluation of investments. The unrealised capital reserve is not distributable. The special distributable reserve was created on court cancellation of the share premium account. The revenue reserve, realised capital reserve and special distributable reserve are distributable by way of dividend.

At 31 August 2018 the total reserves available for distribution are 176,000. This consists of the distributable revenue reserve net of the realised capital loss.

Unaudited Statement of Cash Flows

Unaudited

Audited

Unaudited

6 months ended

Year ended

6 months ended

31 August 2018

28 February 2018

31 August 2017

'000

'000

'000

Cash flows from operating activities

Profit before taxation

194

797

281

Loss arising on the disposal of investments during the period

-

17

17

(Gain) arising on the revaluation of investments at the period end

-

(264)

(6)

Cash generated by operations

194

550

292

Decrease in receivables

8

596

16

Increase/(decrease) in payables

38

(97)

(156)

Net cash flows from operating activities

240

1,049

152

Cash flows from investing activities

Sale of financial assets at fair value through profit or loss

-

477

1,131

Net cash flows from investing activities

-

477

1,131

Cash flows from financing activities

Distribution of proceeds from share cancellation

-

(203)

-

Dividends paid

(274)

(2,495)

(1,823)

Net cash flows from financing activities

(274)

(2,698)

(1,823)

Net (decrease) in cash and cash equivalents

(34)

(1,172)

(540)

Reconciliation of net cash flow to movements in cash and cash equivalents

Cash and cash equivalents at 1 March 2018

353

1,525

1,525

Net (decrease) in cash and cash equivalents

(34)

(1,172)

(540)

Cash and cash equivalents at 31 August 2018

319

353

985

The accompanying notes are an integral part of this statement.

Non-Statutory Analysis - The A Share Fund

Statement of Comprehensive Income

Unaudited

Audited

Unaudited

Comprehensive Income

6 months ended 31 August 2018

Year ended 28 February 2018

Revenue

Capital

Total

Revenue

Capital

Total

Revenue

Capital

Total

'000

'000

'000

'000

'000

'000

'000

'000

'000

Investment income

322

-

322

634

-

634

324

-

324

Unrealised gain on investments

-

-

-

-

240

240

-

6

6

Investment return

322

-

322

634

240

874

324

6

330

Investment management fees

(56)

(19)

(75)

(22)

-

(22)

(10)

-

(10)

Other expenses

(49)

-

(49)

(67)

(2)

(69)

(32)

(2)

(34)

Profit/(loss) before taxation

217

(19)

198

545

238

783

282

4

286

Taxation

(41)

4

(37)

(104)

-

(104)

(54)

-

(54)

Profit/(loss) after taxation

176

(15)

161

441

238

679

228

4

232

Profit and total comprehensive income/(loss) for the period

176

(15)

161

441

238

679

228

4

232

Basic and diluted earnings/(loss) per share

1.77p

(0.15p)

1.62p

4.44p

2.39p

6.83p

2.29p

0.05p

2.34p

Unaudited

Audited

Unaudited

Balance Sheet

31 August 2018

28 February 2018

31 August 2017

'000

'000

'000

Non-current assets

Financial assets at fair value through profit or loss

9,744

9,744

9,510

Current assets

Receivables

752

764

688

Cash and cash equivalents

267

274

64

1,019

1,038

752

Current liabilities

Payables

(96)

(40)

(15)

Corporation Tax

(143)

(105)

(57)

Net assets

10,524

10,637

10,190

Equity attributable to equity holders

10,524

10,637

10,190

Net asset value per share

105.77p

106.90p

102.41p

Statement of Changes in Shareholders' Equity

Unaudited

Audited

Unaudited

31 August 2018

28 February 2018

31 August 2017

'000

'000

'000

Opening shareholders' funds

10,637

10,356

10,356

Profit for the period

161

679

232

Dividend paid

(274)

(398)

(398)

Closing shareholders' funds

10,524

10,637

10,190

Investment Portfolio

Unaudited

Audited

31 August 2018

28 February 2018

Cost

Valuation

Cost

Valuation

'000

%

'000

%

'000

%

'000

%

Unquoted qualifying holdings

6,323

64.92

6,577

65.70

6,323

64.86

6,577

65.65

Non-Qualifying holdings

3,151

32.36

3,167

31.63

3,151

32.33

3,167

31.61

Financial assets at fair value through profit or loss

9,474

97.28

9,744

97.33

9,474

97.19

9,744

97.26

Cash and cash equivalents

267

2.72

267

2.67

274

2.81

274

2.74

9,741

100.00

10,011

100.00

9,748

100.00

10,018

100.00

Qualifying Holdings

Unquoted

Hydro Electric Power

Green Highland Allt Choire A Bhalachain Ltd

30

0.31

30

0.30

30

0.31

30

0.30

Green Highland Allt Garbh Ltd

2,250

23.10

2,250

22.48

2,250

23.08

2,250

22.46

Green Highland Allt Ladaidh (1148) Ltd

1,470

15.09

1,802

18.00

1,470

15.08

1,802

17.99

Green Highland Allt Luaidhe (228) Ltd

855

8.78

937

9.36

855

8.77

937

9.35

Green Highland Allt Phocachain (1015) Ltd

858

8.81

1,005

10.04

858

8.80

1,005

10.03

Green Highland Shenval Ltd

860

8.83

553

5.52

860

8.82

553

5.52

6,323

64.92

6,577

65.70

6,323

64.86

6,577

65.65

Unaudited

Audited

31 August 2018

28 February 2018

Cost

Valuation

Cost

Valuation

Non-Qualifying Holdings

'000

%

'000

%

'000

%

'000

%

Unquoted

Hydro Electric Power

Green Highland Allt Choire A Bhalachain Ltd

3

0.03

3

0.03

3

0.03

3

0.03

Green Highland Allt Ladaidh (1148) Ltd

30

0.31

30

0.30

30

0.31

30

0.30

Green Highland Allt Luaidhe (228) Ltd

61

0.63

61

0.61

61

0.63

61

0.61

Green Highland Allt Phocachain (1015) Ltd

2

0.02

3

0.03

2

0.02

3

0.03

SME Funding:

Hydro Electric Power

Broadpoint 2 Ltd

550

5.65

550

5.49

550

5.64

550

5.49

Broadpoint 3 Ltd

1,005

10.32

1,005

10.04

1,005

10.31

1,005

10.03

Other

Funding Path Ltd

1,000

10.27

1,000

9.99

1,000

10.26

1,000

9.98

Modern Power Generation Ltd

500

5.13

515

5.14

500

5.13

515

5.14

3,151

32.36

3,167

31.63

3,151

32.33

3,167

31.61

Non-Statutory Analysis - The B Share Fund

Statement of

Unaudited

Audited

Unaudited

Comprehensive Income

6 months ended 31 August 2018

Year ended 28 February 2018

6 months ended 31 August 2017

Revenue

Capital

Total

Revenue

Capital

Total

Revenue

Capital

Total

'000

'000

'000

'000

'000

'000

'000

'000

'000

Investment income

42

-

42

82

-

82

41

-

41

Unrealised gain on investments

-

-

-

-

24

24

-

-

-

Investment return

42

-

42

82

24

106

41

-

41

Investment management fees

(12)

(4)

(16)

(38)

(8)

(46)

(19)

(4)

(23)

Other expenses

(30)

-

(30)

(44)

-

(44)

(21)

-

(21)

(Loss)/profit before taxation

-

(4)

(4)

-

16

16

1

(4)

(3)

Taxation

-

1

1

-

2

2

-

1

1

(Loss)/profit after taxation

-

(3)

(3)

-

18

18

1

(3)

(2)

Loss and total comprehensive (loss)/income for the period

-

(3)

(3)

-

18

18

1

(3)

(2)

Basic and diluted (loss)/earnings per share

(0.02p)

(0.05p)

(0.07p)

(0.01p)

0.25p

0.24p

0.01p

(0.04p)

(0.03p)

Unaudited

Audited

Unaudited

Balance Sheet

31 August 2018

28 February 2018

31 August 2017

'000

'000

'000

Non-current assets

Financial assets at fair value through profit or loss

6,810

6,810

6,786

Current assets

Receivables

19

15

17

Corporation Tax

3

2

1

Cash and cash equivalents

52

79

12

74

96

30

Current liabilities

Payables

(61)

(80)

(10)

Net assets

6,823

6,826

6,806

Equity attributable to equity holders

6,823

6,826

6,806

Net asset value per share

99.93p

100.00p

99.73p

Statement of Changes in Shareholders' Equity

Unaudited

Audited

Unaudited

31 August 2018

28 February 2018

31 August 2017

'000

'000

'000

Opening shareholders' funds

6,826

6,808

6,808

(Loss)/profit for the period

(3)

18

(2)

Closing shareholders' funds

6,823

6,826

6,806

Investment Portfolio

Unaudited

Audited

28 February 2018

Cost

Valuation

Cost

Valuation

'000

%

'000

%

'000

%

'000

%

Unquoted qualifying holdings

5,100

74.87

5,100

74.32

5,100

74.57

5,100

74.03

Non-Qualifying holdings

1,660

24.37

1,710

24.92

1,660

24.27

1,710

24.82

Financial assets at fair value through profit or loss

6,760

99.24

6,810

99.24

6,760

98.84

6,810

98.85

Cash and cash equivalents

52

0.76

52

0.76

79

1.16

79

1.15

6,812

100.00

6,862

100.00

6,839

100.00

6,889

100.00

Qualifying Holdings

Unquoted

Gas Power

Distributed Generators Ltd

3,200

46.98

3,200

46.63

3,200

46.79

3,200

46.45

Green Peak Generation Ltd

1,900

27.89

1,900

27.69

1,900

27.78

1,900

27.58

5,100

74.87

5,100

74.32

5,100

74.57

5,100

74.03

31 August 2018

28 February 2018

Cost

Valuation

Cost

Valuation

Non-Qualifying Holdings

'000

%

'000

%

'000

%

'000

%

Unquoted

SME Funding

Other

Modern Power Generation Ltd

1,660

24.37

1,710

24.92

1,660

24.27

1,710

24.82

1,660

24.37

1,710

24.92

1,660

24.27

1,710

24.82

Notes to the Unaudited Interim Financial Report

1. Corporate information

The Unaudited Interim Financial Report of the Company for the 6 months ended 31 August 2018 was authorised for issue in accordance with a resolution of the Directors on 11 October 2018.

The Company applied for listing on the London Stock Exchange on 24 December 2010.

Triple Point VCT 2011 plc is incorporated and domiciled in Great Britain and registered in England and Wales. The address of the Company's registered office, which is also its principal place of business, is 18 St Swithin's Lane, London, EC4N 8AD.

The Company is required to nominate a functional currency, being the currency in which the Company predominately operates. The functional and reporting currency is pounds sterling (), reflecting the primary economic environment in which the Company operates.

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

2. Basis of preparation and accounting policies

Basis of preparation

The Unaudited Interim Financial Report of the Company for the 6 months ended 31 August 2018 has been prepared in accordance with IAS 34: Interim Financial Reporting. The same accounting policies and methods of computation are followed in the Interim Financial Report as were followed in the most recent Financial Statements. It does not include all of the information required for full Financial Statements and should be read in conjunction with the Financial Statements for the year ended 28 February 2018.

Estimates

The preparation of the Unaudited Interim Financial Report requires management to make judgements, estimates and assumptions that reflect the application of accounting policies and the reported amounts of assets and liabilities, income and expenditure. However, actual results may differ from these estimates.

3. Segmental reporting

The Directors are of the opinion that the Company only has a single operating segment of business, being investment activity. All revenues and assets are generated and held in the UK.

4. Investment income

Unaudited

Audited

6 months ended 31 August 2018

Year ended 28 February 2018

Ord Shares

A Shares

B Shares

Total

Ord Shares

A Shares

B Shares

Total

'000

'000

'000

'000

'000

'000

'000

'000

Interest receivable on bank balances

-

1

-

1

-

-

-

-

Loan interest

-

321

42

363

(4)

634

82

712

Dividends received

-

-

-

-

3

-

-

3

-

322

42

364

(1)

634

82

715

5. Investment management fees

TPIM provides investment management and administration services to the Company under an Investment Management Agreement effective 23 September 2010 and a deed of variation to that agreement effective 23 December 2015.

A Shares: The agreement provides for an investment management fee of 2.00% per annum of net assets payable quarterly in arrear for A Shares. For A Shares the appointment shall continue for a period of at least 6 years from the admission of those shares.

B Shares: The agreement provides for an investment management fee of 1.90% per annum of net assets payable quarterly in arrear for B Shares. For B Shares the appointment shall continue for a period of at least 6 years from the admission of those shares.

At 31 August 2018 the administration fee was 37,500 per annum and is payable quarterly in arrear. Subject to Shareholder approval at the General Meeting, this will change under an amendment to the IMA to 0.25% of Net Assets per annum.

TPIM agreed not to charge their management fees for the A share class for the financial year ending 28 February 2018, to build up distributable reserves improving the ability of the share class to make dividend payments. TPIM resumed charging its management fees from 1 March 2018.

TPIM agreed not to charge their management fees from 1 January 2017 on the amounts invested in gas power projects, which represent circa 75% of the B Share Class NAV, until these investments started to generate income.

6. Directors' remuneration

Unaudited

Audited

6 months ended 31 August 2018

Year ended 28 February 2018

Ord Shares

A Shares

B Shares

Total

Ord Shares

A Shares

B Shares

Total

'000

'000

'000

'000

'000

'000

'000

'000

Jane Owen

-

5

4

9

1

11

6

18

Chad Murrin

-

4

3

7

1

9

5

15

Tim Clarke

-

5

2

7

-

8

7

15

-

14

9

23

2

28

18

48

The only remuneration received by the Directors was their Directors' fees. The Company has no employees other than the Non-Executive Directors. The average number of Non-Executive Directors in the period was three.

7. Taxation

Unaudited

Audited

6 months ended 31 August 2018

Year ended 28 February 2018

Ord Shares

A Shares

B Shares

Total

Ord Shares

A Shares

B Shares

Total

'000

'000

'000

'000

'000

'000

'000

'000

Profit/(loss) on ordinary activities before tax

-

198

(4)

194

(2)

783

16

797

Corporation tax @ 19%

-

37

(1)

36

-

152

3

155

Effect of:

Capital losses/(gains) not taxable

-

-

-

-

3

(46)

(4)

(47)

Disallowed expenditure

-

-

-

-

(1)

-

-

(1)

Tax charge/(credit) for the period

-

37

(1)

36

2

104

(2)

104

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

8. Earnings per share

The earnings per A Share is 1.62p and is based on a profit from ordinary activities after tax of 160,875 and on the weighted average number of A Shares in issue during the period of 9,951,133.

The loss per B Share is 0.07p, and is based on a loss from ordinary activities after tax of 4,728, and on the weighted average number of B Shares in issue during the period of 6,824,266.

There were no changes to the number of shares in issue during the period therefore the weighted average number of shares in issue during the period for all share classes is equal to the number of shares at 31 August 2018.

9. Cash and cash equivalents

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

10. Share capital

Unaudited

Audited

31 August 2018

28 February 2018

A Ordinary Shares of 0.01 each

Issued & Fully Paid

Number of shares

9,951,133

9,951,133

Par Value '000

100

100

Authorised

Number of shares

10,000,000

10,000,000

Par Value '000

100

100

B Ordinary Shares of 0.01 each

Issued & Fully Paid

Number of shares

6,824,266

6,824,266

Par Value '000

68

68

Authorised

Number of shares

10,000,000

10,000,000

Par Value '000

100

100

Company Total Shares of 0.01 each

Issued & Fully Paid

Number of shares

16,775,399

16,775,399

Par Value '000

168

168

11. Net asset value per share

The net asset value per share for the A Shares is 105.77p and is calculated based on net assets of 10,524,000 divided by the 9,951,133 A Shares in issue.

The net asset value per share for the B Shares is 99.93p and is calculated on net assets of 6,823,000 divided by the 6,824,266 B Shares in issue.

12. Commitments and contingencies

The Company has no contingent liabilities or commitments.

13. Relationship with Investment Manager

During the period, TPIM received 90,564 (which has been expensed by the Company) for providing management services to the Company.

TPIM agreed not to charge their management fees from 1 January 2017 on the amounts invested in gas power projects, which represents circa 75% of the B Share Class NAV.

Fees paid to the Investment Manager for administrative and other services during the period was 18,750

14. Related party transactions

There were no related party transactions during the period.

15. Post balance sheet events

There were no post balance sheet events.

16. Dividend

A Share Class:

On 28 June 2018 a dividend of 273,656 equal to 2.75p per share was paid to the A Class Shareholders. This takes total dividends paid to A Shareholders to 6.75p.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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