This interim management statement has been prepared solely to provide additional information to the shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules, and should not be relied on by any other party or for any other purpose.
This interim management statement considers the future of the fund and, as such, forward-looking assertions have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report. This statement should therefore be treated with due caution due to the inherent uncertainties of the effect of both economic and business risk factors in considering forward-looking information.
This interim management statement relates to the period from 1 September 2012 to 30 November 2012 and contains information that covers this period and up to the date of publication of this interim management statement.
The objective of Amati VCT plc ("the Company") is to provide an attractive return to shareholders. The Company generates tax-free capital gains and income by building and maintaining a well-balanced portfolio of qualifying investments and non-qualifying investments, for the purposes of the tax legislation under which the Company operates. The qualifying investments are predominantly in AIM traded companies or companies to be traded on AIM. The Company is managed as a venture capital trust in order that shareholders in the Company may benefit from the tax reliefs available.
Performance during the period
The NAV (Total Return) over the three months to 30 November 2012 was up 3.6%, which compares to a rise of 2.0% for the FTSE AIM All-Share Total Return Index. Economic news during the quarter was dominated by activity in the US, with an extension to quantitative easing, the presidential election and 'fiscal cliff' negotiations all featuring heavily and influencing equity markets. Outside the US, an easing of the troubled Eurozone members' bond yields and improved Chinese data both helped investor sentiment.
The greatest positive contributions to performance came from IDOX, Craneware, Belvoir Lettings and Anpario. IDOX continued its strong share price performance, which was underpinned by another well priced acquisition of a facilities management software company, as well as final results which were comfortably ahead of market expectations. Craneware rallied during the period following solid results and a confident outlook. Belvoir Lettings saw its share price rise on its interim results, which reported impressive year-on-year growth and a confident outlook. Likewise, Anpario released its half year figures, which disclosed a 20% increase in underlying earnings, driven by solid performances across all the divisions of this feed additives business.
The most disappointing performers were Fulcrum Utility Services, a holding which we had significantly reduced over the summer, and London Capital. Fulcrum Utility Services reported an unchanged revenue line due to continued challenging market conditions, although continued progress with the company's turnaround plan resulted in a much improved earnings per share figure; and London Capital fell after reporting low trading volumes, the primary driver of its turnover line.
Regarding new investments, four new non-qualifying positions were acquired. Two were oil and gas exploration and production companies: Amerisur, a South America focused oil and gas exploration company, which we purchased mainly as it raised $40m to fund itself for an application to licence an adjacent exploration block to their main production area in Columbia; and Providence Resources, an exploration and development company focused on opportunities onshore UK and offshore Ireland. The third was Blinkx, a leader in video search technology. The Blinkx technology is unusual in that it searches visual as well as speech and text content of an online video clip in order to place advertising inventory more appropriately. The fourth was Brooks Macdonald, a fast growing UK wealth management business, was added as part of a £21.5m placing to acquire Spearpoint, a Channel Islands based fund manager. We also added to Entertainment One, an existing non-qualifying holding, as it raised money to acquire Alliance Films.We exited ADVFN in the qualifying portfolio, whilst XP Power and Anglo Pacific were sold from the non-qualifying portfolio.
As at 30 November 2012
As at 31 August 2012
Total Net Asset Value ("NAV")
Shares in issue
NAV per share *
* taking account of amounts receivable or chargeable to the VCT's income account.
The top ten investments in the Company's portfolio are listed below.
Detailed monthly updates on portfolio activity and performance are posted on the Amati Global Investors website (see http://www.amatiglobal.com/avct_performance.php). Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
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