Calculus Vct Regulatory News (CLC)

Investec Structured Products Calculus VCT plcHalf Yearly Reportfor the six months ended 31 August 2014 INVESTMENT OBJECTIVE The Company's principal objectives for investors are to: ●invest in a portfolio of Venture Capital Investments and Structured Productsthat will provide investment returns that are sufficient to allow the Companyto maximise annual dividends and pay an interim return either by way of aspecial dividend or cash offer for shares on or before an interim return date; ●generate sufficient returns from a portfolio of Venture Capital Investmentsthat will provide attractive long-term returns within a tax efficient vehiclebeyond an interim return date; ●review the appropriate level of dividends annually to take account ofinvestment returns achieved and future prospects; and ●maintain VCT status to enable qualifying investors to retain their income taxrelief of up to 30 per cent. on the initial investment and receive tax-freedividends and capital growth. FINANCIAL REVIEW Ordinary Share Fund 6 Months to 6 Months to 12 Months to 31 August 31 August 28 February 2014 2013 2014 Total returnTotal return £Nil £46,000 £199,000Total return per ordinary share 0.0p 1.0p 4.2p RevenueNet (loss)/profit after tax (£20,000) £8,000 (£44,000)Revenue return per ordinaryshare (0.4)p 0.2p (0.9)p As at As at As at 31 August 31 August 28 February 2014 2013 2014 Assets (investments valued at bidmarket prices) Net assets £4,263,000 £4,359,000 £4,512,000Net asset value ("NAV") per ordinaryshare 90.0p 92.0p 92.5p Mid-market quotationOrdinary shares 85.5p 87.5p 85.5pDiscount to NAV (5.0)% (4.9)% (10.2)% C Share Fund 6 Months to 6 Months to 12 Months to 31 August 31 August 28 February 2014 2013 2014 Total returnTotal return £10,000 £45,000 £47,000Total return per C share 0.5p 2.3p 2.4p RevenueNet loss after tax (£13,000) (£13,000) (£25,000)Revenue return per C share (0.7)p (0.7)p (1.3)p As at As at As at 31 August 31 August 28 February 2014 2013 2014 Assets (investments valued at bidmarket prices)Net assets £1,688,000 £1,763,000 £1,765,000NAV per C share 87.4p 91.3p 91.4p Mid-market quotationC shares 90.0p 90.0p 90.0pPremium/(discount) to NAV 3.0% (1.4)% (1.5)% INTERIM MANAGEMENT REPORT Performance Summary The net asset value per ordinary share was 90.0 pence as at 31 August 2014compared to 92.5 pence as at 28 February 2014. The major part of this movementis attributable to the dividend of 5.25 pence per ordinary share paid in July2014. This dividend payment took cumulative dividends paid on the ordinaryshares since inception to 21.0 pence, bringing the total return per ordinaryshare to 111.0 pence. The net asset value per C share was 87.4 pence as at 31 August 2014 compared to91.4 pence as at 28 February 2014. A dividend of 4.5 pence per C share was paidin July 2014. This dividend payment took cumulative dividends paid on the Cshares since inception to 13.5 pence, bringing the total return per C share to100.9 pence. We are encouraged by the Company's performance to date and believe theportfolio is well positioned to make further progress in the second half of theyear. Special Dividend on the Ordinary Shares In the documents relating to the subscription for ordinary shares in 2010, itwas stated that the Company's investment objectives were to pay annualdividends of 5.25p per share and an interim return of at least 43.75p by way ofa special dividend or cash tender offer for the ordinary shares on or before 14December 2015. In view of the fact that the Structured Products are now worthsignificantly more than their original cost and the Company has to maintain itsVCT status at all times to enable qualifying investors to retain their incometax relief, the Board is considering whether to redeem some Structured Productsbefore their maturity date and declare a special dividend on the ordinaryshares, that would constitute part of the interim return. Venture Capital Investments Portfolio developments Calculus Capital Limited manages the Company's portfolio of QualifyingInvestments. In general, we prefer to take stakes of sufficient size to enableus to play a more influential role in helping the companies develop.Investments may be by way of loan stock and/or preference shares as well asequity. This provides income for the Company to help pay regular dividends andprovides a measure of risk mitigation. The Ordinary Share Fund and the C Share Fund are managed separately althoughthey both have the same investment remit and, therefore, both have very similarportfolios. As at 31 August 2014, the Company held 13 Qualifying Investmentsand 11 Qualifying Investments on behalf of the Ordinary Share Fund and the CShare Fund respectively. Terrain Energy Limited ("Terrain") (Ordinary and C Share Funds) Terrain Energy is an oil and gas exploration and production company withlicence interests in the East Midlands, Surrey, Northern Ireland and Germany.The company's strength lies in the quality of its management team, developmentand exploration assets, which reduces risk; the size of its reserves,especially prospective resources, which are due to be drilled in the nearfuture; and that it has sufficient cash to meet its commitments. Terrain hasinterests in ten petroleum licences: Keddington, Kirklington, Dukes Wood,Kelham Hill and Burton on the Wolds in the East Midlands; Larne and a licenceoffshore to the north of Larne in Northern Ireland; Brockham in Surrey; andBruckmuhl and Starnberger See in Germany. The estimated resources for all theprospects on the Larne licence gives unrisked P50 prospective resources of 450million barrels of oil ("mmbo") (net 45 mmbo to Terrain). The first well,scheduled for late 2014, will test a structure with an estimated 40 mmbo oil inplace and 14 mmbo recoverable (assuming a 30 per cent. recovery rate), or 1.3mmbo net to Terrain. In July, Terrain redeemed loan stock held by the OrdinaryShare Fund. Lime Technology Limited ("Lime") (Ordinary Share Fund) Lime was established in 2002 and is a developer of sustainable, low carbonbuilding materials. The business comprises two parts: Lime Mortars - were used in the renovation of St Pancras Station. This divisionalso has a developing business in external wall insulation ("EWI") whichaddresses the significant proportion of existing housing stock - mainly pre1970s - which suffers from poor insulation. Lime Building Systems - the company's hemp panels were used in the externalwall construction at the Science Museum's 'large object' archive at Wroughton,near Swindon. Lime's prefabricated panels are classed as 'zero carbon' and showsuperior performance against comparable products in terms of temperature,moisture control and fire resistance. A new Chief Operating Officer was appointed in March. Since his appointment,costs have been cut, including a renegotiation and reduction of rent, andmargins have increased. The group, which is now trading profitably, intends todevelop a range of prefabricated house structures and sizes based on thegroup's low carbon panels and materials which can be bought 'off the shelf' bydevelopers and single home 'self-build' customers. MicroEnergy Generation Services Limited ("MicroEnergy") (Ordinary Share Fund) MicroEnergy owns and operates a fleet of small onshore wind turbines (greaterthan 5kW). As at 31 August 2014, 153 turbines had been installed on farm landin East Anglia and Yorkshire. The portfolio will provide MicroEnergy withsufficient scale to mitigate against concerns of poor short-term performance atany particular site. Revenues from the fleet of installed turbines come fromtwo sources, both of which are inflation protected, being directly linked toRPI. Firstly, there is the Government backed feed-in tariff ("FIT") paid by theelectricity suppliers for every kilowatt of electricity generated for 20 years.Secondly, there is an export tariff for any surplus electricity not used by thesite owner that is exported to the grid. The company is in the process ofmigrating to a new system with new remote monitoring whereby the generationfrom each system can be monitored half hourly, to help speed up the time inwhich any problems are recognised. The Company holds 5.1 per cent. of the equity in MicroEnergy. Other fundsmanaged by Calculus Capital have invested in MicroEnergy and have combinedvoting rights of 5.8 per cent. AnTech Limited ("AnTech") (Ordinary Share Fund) AnTech is an oil services company founded in 1994 and based in Exeter. Inaddition to its established business supplying customised and standard productsacross a wide range of upstream oil and gas applications, AnTech has developeda new generation of directional drilling tools which provide the platform for astep-change transformation in the manner and efficiency in which oil and gaswells can be drilled with coil tubing. The first commercial use of thiscommenced in France in September this year and the company has receivedinterest from many major oil producing regions, including North America andSaudi Arabia. Dryden Human Capital Group ("Dryden") (Ordinary Share Fund) Dryden is a global professional services recruitment and executive search groupand its first business commenced operations in 1996. Headquartered in the UK,it specialises in the actuarial, insurance and compliance recruitment sectorsand operates out of London, Zurich and Hong Kong. In July 2014, the groupappointed a new CEO, James Gregory, who returns to the group having previouslybeen head of Dryden's European Division. Hampshire Cosmetics Limited ("Hampshire") (Ordinary and C Share Funds) Founded in the 1970s, Hampshire is an established company which develops andmanufactures a comprehensive range of products covering fragrances, bodytreatments, skincare and shampoos. The original investment in December 2012was part of a turnaround led by an experienced management buy-in team. Thishas progressed well to date, with an improvement in revenue and profitability.Performance has in fact been ahead of plans, and the company movedsignificantly into profitability for the year to December 2013. In December2013, a further investment of £50,000 equity and £100,000 loan stock was madeby the C Share Fund. This facilitated the acquisition of Mr Pets, a fastgrowing and highly successful on-line retailer of veterinary and ancillary petproducts, which sells through the company's own website and third party saleschannels. The acquisition complements Hampshire's strategy to widen its productrange and expand into new, high-growth markets. In addition, the company hasundertaken a strategic review of the market and has also identified additionalopportunities for further product diversification and margin improvement. Someof the identified strategies will be implemented during the coming year, aswell as delivering further improvements from the capital investment alreadyundertaken. The Company has 6.3 per cent. of the equity in Hampshire. Other funds managedby Calculus Capital have invested in Hampshire and have combined voting rightsof 0.9 per cent. Brigantes Energy Limited ("Brigantes") (Ordinary Share Fund) Brigantes originally held a 40 per cent. interest in licence PL1/10 at Larne,Northern Ireland, from InfraStrata plc when the company was established andlater acquired an additional 5 per cent. Brigantes has subsequently agreed afarm-in arrangement with Larne Oil & Gas Limited, which will pay the company'sshare of the estimated costs of the first well, leaving Brigantes with a 16.67per cent. interest going forward. This well, Woodburn Forest-1, will targetpotential resources of 40 mmbo oil in place and 14 mmbo recoverable (assuming a30 per cent. recovery rate), or 2.3 mmbo net to Brigantes, and is planned to bedrilled in late 2014/early 2015. Brigantes also holds a 16.67 per cent.interest in offshore licence P2123, covering waters adjacent to PL1/10, whichwas awarded under the 27th Round of Offshore Licensing. Brigantes purchased an 18 per cent. interest in UK offshore licence P1918(blocks 97/14, 97/15 and 98/11) from InfraStrata plc in March 2014. The licencecontains a major part of the Purbeck Prospect (3-15 million barrels gross ofunrisked prospective resources) and most of the 98/11-3 Prospect (80 millionbarrels gross of unrisked prospective resources). A well is planned forSeptember 2015. Brigantes also has a 5 per cent. working interest in UK onshorelicence PEDL070, which contains the producing Avington field. The Company has 3.4 per cent. of the equity in Brigantes. Other funds managedby Calculus Capital have invested in Brigantes and have combined voting rightsof 25.6 per cent. Corfe Energy Limited ("Corfe") (Ordinary Share Fund) Corfe, like Brigantes, was set up to hold certain exploration and productionassets acquired from InfraStrata plc. Today, it has interests in five licences:Osprey, Lulworth Banks and Ballard Point (adjacent to Wytch Farm) in Dorset,Burton on the Wolds in the East Midlands and the Avington field. Burton on theWolds -1 well is expected to begin drilling in September. The Dorset prospectsare a combination of conventional gas and shale gas plays. The company recentlyacquired a 12.5 per cent. interest in the Burton on the Wolds oil explorationlicence in the East Midlands. Corfe has a production interest in the Avingtonfield in Hampshire and has applied for additional licences under the 14thonshore licencing round. Human Race Group Limited ("Human Race") (Ordinary and C Share Funds) Human Race owns and operates over 58 events in triathlon, cycling, running,duathlon, aquathlon and open water swimming for over 50,000 participants of allabilities and ages. The portfolio of events includes the Windsor Triathlon,Wiggle Dragon Ride, Cycletta, the Eton Triathlon Super Sprints, KingstonBreakfast Run, Etape Cymru and an Off-Road Winter Series. Following a strategic review of the events portfolio, a greater emphasis isbeing put on those flagship events likely to attract maximum interest and drivegrowth. As a result, the strategy for the group going forward will be todevelop and grow the portfolio of those larger flagship events. In addition tothe three existing flagship events - the Dragon Ride, the Windsor Triathlon andthe London Cycle Sportive - there is immediate potential for future flagshipevents in the London Winter Run, a new event that has been added to the 2015calendar. In addition, the company has advanced several new event acquisitiondiscussions and during the year acquired the Chiltern 100 Sportive - aprestigious, well-established sportive, with potential for further developmentand expansion. Looking to 2015 events, several new conversations are in placefor deals at the larger end of the spectrum, including new events, newacquisitions and new sponsors. Secure Electrans Limited ("Secure") (Ordinary and C Share Funds) Secure was founded in 2000 to develop internationally patented systems toprovide solutions to card payment fraud. Secure developed an end-to-end paymentand security infrastructure which incorporated chip and pin and which hadreceived certification from leading industry bodies and participants.Unfortunately, the company's size forestalled it winning contracts from banksand other large financial institutions, notwithstanding the superiority of thesolutions, and the company entered administration in March 2014. Tollan Energy Limited ("Tollan") (Ordinary Share Fund) Tollan has been set up to generate electricity from renewable micro-generationfacilities. The company currently owns 322 solar photovoltaic ("PV")installations located on rooftops in Northern Ireland, the vast majority beingon private rooftops, with the remainder on commercial rooftops. The solar PVgenerating capacity benefits from Northern Ireland Renewable ObligationCertificates ("NIROC"s). Tollan's revenue comes from two sources, both of whichare inflation protected, being directly linked to RPI. Firstly, there is theGovernment backed NIROC for every unit of electricity generated. Under thecurrent NIROC regime, solar installations of less than 50kW per site receive 4NIROCs per megawatt of electricity generated indexed for 20 years. Secondly,there is the export tariff for any surplus electricity not used by thehomeowner that is exported to the grid. The Company has 6.4 per cent. of the equity in Tollan. Venn Life Sciences Holdings plc ("Venn") (Ordinary and C Share Funds) Venn is a Clinical Research Organisation ("CRO") with operations in France, theNetherlands, Ireland and a branch office in Switzerland. Venn's near-termobjective is the consolidation of a number of small European CROs to build amid-sized CRO focused on the European market, offering clients a full service,multi-centred capability in Phase II-IV trials across a range of principaldisease areas. The company successfully raised £1 million in March 2014 through privateplacing. Funds are to be used to develop the opportunities provided by therecent acquisition of the intellectual property rights in Labskin™, SYN1113 andrelated equipment of Evocutis plc. The company has continued to groworganically and through acquisition. In the third quarter of the financial yearending 31 December 2014, the company acquired a French CRO and signed a majorcontract worth over €2.4 million to conduct an international study into aninnovative new heart treatment. Metropolitan Safe Custody Limited ("Metropolitan") (Ordinary and C Share Funds) Metropolitan provides safe custody services in central London to around 4,500customers. Metropolitan currently runs two safe custody sites, one inKnightsbridge, the other in St. John's Wood. These profitable, stablebusinesses serve around 4,500 customers providing access to the vaults sevendays a week. The company invested significantly in the Knightsbridge site in2013 and the St John's Wood site in 2014, upgrading security systems,increasing capacity and enhancing customer facilities. In June 2014, thecompany launched its online gold and silver bullion service which enablescustomers to link directly to Sharps Pixley's online trading platform topurchase gold and silver bars and coins directly from one of the oldest namesin bullion. Metropolitan receives a commission for the introduction and is ableto store and insure the items purchased. The Company has 3.2 per cent. of the equity in Metropolitan. Other fundsmanaged by Calculus Capital have invested in Metropolitan and have combinedvoting rights of 38.9 per cent. Scancell Holdings plc ("Scancell") (C Share Fund) Scancell is developing novel immunotherapies for the treatment of cancer. ItsSCIB1 ImmunoBody® is being developed for the treatment of melanoma and is beingevaluated in a Phase 1/2 trial. Scancell recently announced encouraging resultsfrom its ongoing Phase 1/2 clinical trial in later stage patients (Stage III/IVmelanoma) - treated with the SCIB1 ImmunoBody® - at the 2014 American Societyof Clinical Oncology ("ASCO") meeting in Chicago on 1 June 2014. Whilst thePhase 1/2 clinical trials are relatively small, there is consistent evidencethat Scancell's SCIB1 ImmunoBody® therapy can produce a reduction in tumoursize and stimulate a power immune response. When taken together with theapparent delay in disease progression and increasingly extended survival data,these results are highly encouraging. Most encouraging is the reported survivaltimes: only 2 of 25 patients receiving at least three doses of 2-8mg of SCIB1have died since the study started in 2010. Pico's Limited (trading as "Benito's Hat") (C Share Fund) Benito's Hat is a Mexican-themed, fast casual restaurant business with plans toexpand in central London. Offering tailor-made burritos, tacos, salads and arange of specials, Benito's Hat provides an authentic Mexican experience andhigh-quality food, at an affordable price. The C Share Fund invested in May 2013 and in April 2014 the company received anadditional £1.5 million equity investment which was led by Calculus Capital.The additional funding will allow the company to execute on a strong pipelineof new sites. The business ended its financial year to 31 July 2014 withlike-for-like sales up across the site portfolio, with the two new sites openedduring the year (Leadenhall Street and Farringdon) continuing to mature duringthe first quarter of the financial year to 31 July 2015. Horizon Discovery Limited ("Horizon") (C Share Fund) In May 2013, the C Share Fund made a £50,000 investment into Horizon, aninternational life science company supplying research tools to organisationsengaged in genomics research and the development of personalised medicines. InMarch 2014, Horizon had an Initial Public Offering on AIM raising approximately£40 million of new money. In September 2014, the company acquired Sage Labs Incin a $48 million cash and shares deal, thereby creating a fully integrated andworld leading genomics platform and strengthening its US footprint. Quai Administration Services Limited ("Quai") (C Share Fund) Quai provides white-label administration services for high-volume personalsavings products. Quai's proprietary technology platform provides automatedadministration, straight-through processing, online web access andmulti-currency portfolio management services. It allows the company toadminister many thousands of individual savings plans at a fraction of the costincurred by established insurance companies and wealth managers, making it anideal outsourcing partner. The investment by the C Share fund, together with investments by other fundsmanaged by Calculus Capital, has allowed the company to make furtherinvestments in its platform services and expand its customer base. Quai hassecured a number of new corporate contracts in recent months and the salespipeline for the coming year has developed well. In order to meet customerdemand, the company is continuing to expand the technological capabilities ofthe platform and broaden the service offering. The company has moved to strengthen both the board and operational team,appointing Tony Filbin, formerly managing director of Legal & General's £7billion workplace pensions business, as a non-executive director and JaySwanston, formerly of Cogent, as Chief Operating Officer. The Company has 3.0 per cent. of the equity in Quai. Other funds managed byCalculus Capital have invested in Quai and have combined voting rights of 37.0per cent. The One Place Capital Limited (trading as Money Dashboard) (C Share Fund) Founded in 2009, Money Dashboard is a free web-based application which empowersconsumers to take control of their finances. By using Money Dashboard, aconsumer is able to view all of their internet enabled current accounts,savings accounts and credit cards in one secure place, providing the true viewof their financial lives. Transaction data is sorted into easily understoodcategories and, by using the simple charts and graphs, consumers can see wheretheir money is going and budget for the future. Since investment, Money Dashboard has released a series of product upgrades,including the release of a mobile app, and has significantly grown its userbase. In August 2014, funds managed by Calculus Capital participated in afurther funding round in the company. At the time of the August 2014 fundinground the Investec Calculus VCT was fully invested, and accordingly it did notparticipate. The additional funds raised will be used to continue with MoneyDashboard's marketing and customer acquisition strategy, capitalising on theexisting relationship with Bartle Bogle Hegarty. Developments since the period end There have not been any significant developments in the venture capitalportfolio since the period end. Structured Products Portfolio A significant proportion of the portfolio of Structured Products have nowreached full term and there has been little change over the past six months inthe portfolio. The continuing strong performance of the FTSE 100 has supported valuations inthe Structured Products portfolio, and the FTSE 100 has increased to sitcomfortably above all of the product's strike levels. As at 29 August 2014, theFTSE 100 was 6,819.75. Over the past three months, swap rates have increasedvery slightly along with market volatility, but are still low when looking atmid-term highs. Values of the Structured Product portfolio look strong, withthe highest strike value at 5,341.93 in the Ordinary Share Fund and 5,584.51 inthe C Share Fund. No new investments were made in Structured Products during the period. The Structured Products will achieve their target return subject to the FinalIndex Level of the FTSE 100 being higher than the Initial Index Level. Thecapital is at risk on a one-for-one basis ("CAR") if the FTSE 100 Index fallsmore than 50 per cent. at any time during the investment term and fails tofully recover at maturity such that the Final Index Level is below the InitialIndex Level. As at 31 August 2014, the following investments had been made inStructured Products: Ordinary Share Fund Structured Products Portfolio as at 31 August 2014 FTSE Price 100 Initial as at Strike Index Notional Purchase 31 August Maturity Return/CapitalIssuer Date Level Investment Price 2014 Date at Risk ("CAR") 162.5% if FTSE 100The Royal Bank higher*; CAR if FTSE 100of Scotland plc 05/05/2010 5,341.93 £275,000 £0.96 £1.6028 12/05/2015 falls more than 50% 185% if FTSE 100Investec Bank higher*; CAR if FTSE 100plc 14/05/2010 5,262.85 £500,000 £0.98 £1.7623 19/11/2015 falls more than 50% Abbey National 185% if FTSE 100Treasury higher*;CAR if FTSE 100Services 25/05/2010 4,940.68 £350,000 £0.99 £1.7845 18/11/2015 falls more than 50% Matured/Sold FTSE 100 Initial Index Price at Maturity Strike Level at Notional Purchase Maturity/ Date/ Return/CapitalIssuer Date Maturity Investment Price Sale Date Sold at Risk ("CAR") 125.1% if FTSE 100 Returned higher*; CAR if FTSE 100HSBC Bank plc 01/07/2010 4,805.75 £500,000 £1.00 £1.2510 06/07/2012 falls more than 50% Autocallable 10.5% p.a.;The Royal Bank Returned CAR if FTSE 100 fallsof Scotland plc 18/03/2011 5,718.13 £50,000 £1.00 £1.1050 19/03/2012 more than 50% 137% if FTSE 100Nomura Bank Sold at higher*; CAR if FTSE 100International** 28/05/2010 5,188.43 £350,000 £0.98 £1.2625 30/03/2012 falls more than 50% 134% if FTSE 100Morgan Stanley Sold at higher*;CAR if FTSE 100International 10/06/2010 5,132.50 £500,000 £1.00 £1.3224 31/10/2012 falls more than 50% Abbey National 126% if FTSE 100Treasury Sold at higher*;CAR if FTSE 100Services 03/08/2011 5,584.51 £50,000 £1.00 £1.1900 21/06/2013 falls more than 50% The total current valuation of the amount invested in Structured Products in the Ordinary Share Fund as at31 August 2014 was £1,946,511. C Share Fund Structured Products Portfolio as at 31 August 2014 FTSE 100 Initial Index Notional Purchase Price at 31 Maturity Return/Capital at RiskIssuer Strike Date Level Investment Price August 2014 Date ("CAR") 182% if FTSE 100Investec Bank higher*; CAR if FTSE 100plc 05/08/2011 5,246.99 £328,000 £1.00 £1.5830 10/03/2017 falls more than 50% Matured FTSE 100 Initial Index Strike Level at Notional Purchase Price at Maturity Return/Capital at RiskIssuer Date Maturity Investment Price Maturity Date ("CAR") Autocallable 10.5% p.a.;The Royal Bank Returned CAR if FTSE 100* fallsof Scotland plc 18/03/2011 5,718.13 £200,000 £1.00 £1.1050 19/03/2012 more than 50% 137% if FTSE 100Nomura Bank Returned higher*; CAR if FTSE 100International** 28/05/2010 5,188.43 £350,000 £1.26 £1.3700 20/02/2013 falls more than 50% Abbey National 126% if FTSE 100Treasury Returned higher*;CAR if FTSE 100Services 03/08/2011 5,584.51 £200,000 £1.00 £1.2600 05/02/2014 falls more than 50% The total current valuation of the amount invested in Structured Products inthe C Share Fund as at 31 August 2014 was £519,212. * The Final Index Level is calculated using 'averaging', meaning that theaverage of the closing levels of the FTSE 100 is taken on each Business Dayover the last 2-6 months of the Structured Product plan term (the length of theaveraging period differs for each plan). The use of averaging to calculate thereturn can reduce adverse effects of a falling market or sudden market fallsshortly before maturity. Equally, it can reduce the benefits of an increasingmarket or sudden market rises shortly before maturity. ** The Nomura Structured Product was sold prior to maturity with a return oninitial investment of 28.8 per cent. This was sold to the C Share Fund. Calculus Capital Limited Investec Structured Products29 October 2014 29 October 2014 INVESTMENT PORTFOLIO AS AT 31 AUGUST 2014- ORDINARY SHARE FUND % of Net Assets Structured Products 46%Unquoted - loan stock 20%Quoted and unquoted - ordinary and preference shares 34%Unquoted - liquidity funds -Net current assets - 100% Sector - % of Portfolio Structured Products 46%Quoted and unquoted - Qualifying Investments 54%Unquoted - other non-Qualifying Investments - 100% Nature of Book Cost Valuation % of Net % ofCompany Business £'000 £'000 Assets Portfolio Structured ProductsInvestec Bank plc Banking 490 881 21% 21%Abbey National TreasuryServices Banking 346 624 15% 15%The Royal Bank of Scotlandplc Banking 264 441 10% 10% Total Structured Products 1,100 1,946 46% 46% Qualifying Investments Brigantes Energy Limited Oil and gas exploration and production 127 322 8% 8%Human Race Group Limited Leisure 300 287 7% 7%Hampshire Cosmetics Limited Cosmetics 250 277 6% 6%AnTech Limited Oil services 270 255 6% 6%Lime Technology Limited Construction 307 255 6% 6%Metropolitan Safe Custody Safe depositoryLimited services 190 229 5% 5%Terrain Energy Limited Onshore oil and gas production 100 176 4% 4%Tollan Energy Limited Energy 150 150 4% 4%Corfe Energy Limited Oil and gas exploration and production 76 139 3% 3%MicroEnergy GenerationServices Limited Energy 150 138 3% 3%Venn Life Sciences Holdingsplc Clinical research 120 64 2% 2%Dryden Human Capital GroupLimited Human resources 100 11 - -Secure Electrans Limited E-commerce security 112 - - -Heritage House Limited Publishing and media services 127 - - - Total Qualifying Investments 2,379 2,303 54% 54% Other non-QualifyingInvestments Scottish Widows LiquidityFund Liquidity fund 1 1 - - Total Other non-QualifyingInvestments 1 1 - - Total Investments 3,480 4,250 100% 100% Net Current Assets lessCreditors due after one year 13 - Net Assets 4,263 100% INVESTMENT PORTFOLIO AS AT 31 AUGUST 2014- C SHARE FUND % of Net Assets Structured Products 30%Unquoted - loan stock 17%Quoted and unquoted - ordinary and preference shares 52%Unquoted - liquidity funds -Net current assets 1% 100% Sector - % of Portfolio Structured Products 30%Quoted and unquoted - Qualifying Investments 70%Unquoted - other non-Qualifying Investments - 100% Nature of Book Cost Valuation % of Net % ofCompany Business £'000 £'000 Assets Portfolio Structured ProductsInvestec Bank plc Banking 328 519 31% 31% Total Structured Products 328 519 31% 31% Qualifying InvestmentsHampshire Cosmetics Limited Cosmetics 150 152 9% 9%Quai Administration ServicesLimited Technology 150 150 9% 9%Scancell Holdings plc Biotech 100 147 9% 9%Human Race Group Limited Leisure 150 143 8% 9%Terrain Energy Limited Onshore oil and gas production 95 127 7% 7%The One Place Capital Limited Personal finance 127 127 7% 7%Metropolitan Safe Custody Safe depositoryLimited services 90 108 6% 6%Horizon Discovery Limited Biotechnology 50 96 6% 6%Pico's Limited Leisure 50 64 4% 4%Venn Life SciencesHoldings plc Clinical research 80 43 3% 3%Secure Electrans Limited E-commerce security 75 - - -Heritage House Limited Publishing and media services 64 - - - Total Qualifying Investments 1,181 1,157 68% 69% Other non-QualifyingInvestmentsFidelity Liquidity Fund Liquidity fund - - - -Scottish Widows LiquidityFund Liquidity fund 1 1 - - Total Other non-QualifyingInvestments 1 1 - - Total Investments 1,510 1,677 99% 100% Net Current Assets lesscreditors due after one year 11 1% Net Assets 1,688 100% PRINCIPAL RISKS The principal risks facing the Company are substantially unchanged since thedate of the Annual Report and Accounts for the year ended 28 February 2014 andcontinue to be as set out in that report. Risks faced by the Company include, but are not limited to, loss of approval asa venture capital trust and other regulatory breaches, risks of making VentureCapital Investments, risks attaching to investment in Structured Products,liquidity/marketability risk, changes in legislation/taxation, engagement ofthird party advisers, C shares versus ordinary shares, market price risk andcredit risk. DIRECTORS' RESPONSIBILITY STATEMENT The Directors confirm that to the best of their knowledge: ● the condensed set of financial statements has been prepared in accordancewith the Statement on Half Yearly Financial Reports issued by the UK AccountingStandards Board and gives a true and fair view of the assets, liabilities andfinancial position of the Company; and ● this Half Yearly Financial Report includes a fair review of the informationrequired by: a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication ofimportant events that have occurred during the first six months of thefinancial year and their impact on the condensed set of financial statements;and a description of the principal risks and uncertainties for the remainingsix months of the year; and b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related partytransactions that have taken place in the first six months of the currentfinancial year and that have materially affected the financial position orperformance of the Company during that period; and any changes in the relatedparty transactions described in the last Annual Report that could do so. This Half Yearly Financial Report was approved by the Board of Directors on 29October 2014 and the above responsibility statement was signed on its behalf byMichael O'Higgins, Chairman. CONDENSED INCOME STATEMENTFOR THE PERIOD FROM 1 MARCH 2014 TO 31 AUGUST 2014(UNAUDITED) 6 Months Ended 6 Months Ended 12 Months Ended 31 August 2014 31 August 2013 28 February 2014* Revenue Capital Revenue Capital Revenue Capital Return Return Total Return Return Total Return Return Total Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Ordinary Share Fund Investment holding gains - 34 34 - 46 46 - 267 267Gain on disposal ofinvestments - 3 3 - 10 10 - 10 10Income 40 - 40 69 - 69 74 - 74Investment managementfee (6) (17) (23) (6) (18) (24) (11) (34) (45)Other operating expenses (54) - (54) (55) - (55) (107) - (107) (Loss)/profit on ordinary activities before taxation (20) 20 - 8 38 46 (44) 243 199 Taxation on ordinary activities 3 - - - - - - - - - (Loss)/profit for theperiod (20) 20 - 8 38 46 (44) 243 199 Basic and diluted earnings per ordinary share 2 (0.4)p 0.4p 0.0p 0.2p 0.8p 1.0p (0.9)p 5.1p 4.2p 6 Months Ended 6 Months Ended 12 Months Ended 31 August 2014 31 August 2013 28 February 2014* Revenue Capital Revenue Capital Revenue Capital Return Return Total Return Return Total Return Return Total Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 C Share Fund Investment holding gains - 30 30 - 65 65 - 33 33Gain on disposal ofinvestments - - - - - - - 52 52Income 11 - 11 11 - 11 22 - 22Investment managementfee (2) (7) (9) (2) (7) (9) (4) (13) (17)Other operatingexpenses (22) - (22) (22) - (22) (43) - (43) (Loss)/profit onordinary activitiesbefore taxation (13) 23 10 (13) 58 45 (25) 72 47 Taxation on ordinary 3 - - - - - - - - -activities (Loss)/profit for theperiod (13) 23 10 (13) 58 45 (25) 72 47 Basic and dilutedearnings perC share 2 (0.7)p 1.2p 0.5p (0.7)p 3.0p 2.3p (1.3)p 3.7p 2.4p * These figures are audited. The total columns of these statements represent the Income Statement of theOrdinary Share Fund and the C Share Fund. The supplementary revenue return and capital return columns are both preparedin accordance with the Association of Investment Companies ("AIC") Statement ofRecommended Practice ("SORP"). 6 Months Ended 6 Months Ended 12 Months Ended 31 August 2014 31 August 2013 28 February 2014* Revenue Capital Revenue Capital Revenue Capital Return Return Total Return Return Total Return Return Total Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Total Investment holding gains - 64 64 - 111 111 - 300 300Gain on disposal ofinvestments - 3 3 - 10 10 - 62 62Income 51 - 51 80 - 80 96 - 96Investment management fee (8) (24) (32) (8) (25) (33) (15) (47) (62)Other operating expenses (76) - (76) (77) - (77) (150) - (150) (Loss)/profit on ordinaryactivities before taxation (33) 43 10 (5) 96 91 (69) 315 246 Taxation on ordinaryactivities 3 - - - - - - - - - (Loss)/profit for theperiod (33) 43 10 (5) 96 91 (69) 315 246 Basic and diluted earningsper ordinary share 2 (0.4)p 0.4p 0.0p 0.2p 0.8p 1.0p (0.9)p 5.1p 4.2p Basic and diluted earningsper C share 2 (0.7)p 1.2p 0.5p (0.7)p 3.0p 2.3p (1.3)p 3.7p 2.4p * These figures are audited. The total column of this statement represents the Company's Income Statement. The supplementary revenue return and capital return columns are both preparedin accordance with the AIC's SORP. No operations were acquired or discontinued during the period. All items in the above statements derive from continuing operations. There were no recognised gains or losses other than those passing through theIncome Statement. The notes form an integral part of these Accounts. CONDENSED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDSFOR THE PERIOD FROM 1 MARCH 2014 TO 31 AUGUST 2014(UNAUDITED) Capital Capital Share Special Reserve Reserve Revenue Capital Reserve Realised Unrealised Reserve Total £'000 £'000 £'000 £'000 £'000 £'000 Ordinary Share Fund For the 6 month period to 31 August 2014 1 March 2014 47 3,729 273 736 (273) 4,512Investment holding gains - - - 34 - 34Gain on disposal of investments - - 3 - - 3Management fee allocated to capital - - (17) - - (17)Revenue return on ordinary activitiesafter tax - - - - (20) (20)Dividend paid (note 8) - (249) - - - (249) 31 August 2014 47 3,480 259 770 (293) 4,263 For the 6 month period to 31 August 20131 March 2013 47 3,978 297 469 (229) 4,562Investment holding gains - - - 46 - 46Gain on disposal of investments - - 10 - - 10Management fee allocated to capital - - (18) - - (18)Revenue return on ordinary activitiesafter tax - - - - 8 8Dividend paid - (249) - - - (249) 31 August 2013 47 3,729 289 515 (221) 4,359 For the 12 months ended 28 February 2014 * 1 March 2013 47 3,978 297 469 (229) 4,562Investment holding gains - - - 267 - 267Gain on disposal of investments - - 10 - - 10Management fee allocated to capital - - (34) - - (34)Revenue return on ordinary activitiesafter tax - - - - (44) (44)Dividend paid - (249) - - - (249) 28 February 2014 47 3,729 273 736 (273) 4,512 * These figures are audited.The notes form an integral part of these Accounts. Capital Capital Share Special Reserve Reserve Revenue Capital Reserve Realised Unrealised Reserve Total £'000 £'000 £'000 £'000 £'000 £'000 C Share Fund For the 6 month period to 31 August 20141 March 2014 19 1,628 86 137 (105) 1,765Investment holding gains - - - 30 - 30Management fee allocated to capital - - (7) - - (7)Revenue return on ordinary activities aftertax - - - - (13) (13)Dividend paid (note 8) - (87) - - - (87) 31 August 2014 19 1,541 79 167 (118) 1,688 For the 6 month period to 31 August 20131 March 2013 19 1,715 47 104 (80) 1,805Investment holding gains - - - 65 - 65Management fee allocated to capital - - (7) - - (7)Revenue return on ordinary activities aftertax - - - - (13) (13)Dividend paid - (87) - - - (87) 31 August 2013 19 1,628 40 169 (93) 1,763 For the 12 months ended 28 February 2014*1 March 2013 19 1,715 47 104 (80) 1,805Investment holding gains - - - 33 - 33Gain on disposal of investments - - 52 - - 52Management fee allocated to capital - - (13) - - (13)Revenue return on ordinary activities aftertax - - - - (25) (25)Dividend paid - (87) - - - (87) 28 February 2014 19 1,628 86 137 (105) 1,765 * These figures are audited.The notes form an integral part of these Accounts. Capital Capital Share Special Reserve Reserve Revenue Capital Reserve Realised Unrealised Reserve Total £'000 £'000 £'000 £'000 £'000 £'000 Total For the 6 month period to 31 August 20141 March 2014 66 5,357 359 873 (378) 6,277Investment holding gains - - - 64 - 64Gain on disposal of investments - - 3 - - 3Management fee allocated to capital - - (24) - - (24)Revenue return on ordinary activities aftertax - - - - (33) (33)Dividend paid (note 8) - (336) - - - (336) 31 August 2014 66 5,021 338 937 (411) 5,951 For the 6 month period to 31 August 20131 March 2013 66 5,693 344 573 (309) 6,367Investment holding gains - - - 111 - 111Gain on disposal of investments - - 10 - - 10Management fee allocated to capital - - (25) - - (25)Revenue return on ordinary activities aftertax - - - - (5) (5)Dividend paid - (336) - - - (336) 31 August 2013 66 5,357 329 684 (314) 6,122 For the 12 months ended 28 February 2014*1 March 2013 66 5,693 344 573 (309) 6,367Investment holding gains - - - 300 - 300Gain on disposal of investments - - 62 - - 62Management fee allocated to capital - - (47) - - (47)Revenue return on ordinary activities aftertax - - - - (69) (69)Dividend paid - (336) - - - (336) 28 February 2014 66 5,357 359 873 (378) 6,277 \* These figures are audited. The notes form an integral part of these Accounts. CONDENSED BALANCE SHEETAS AT 31 AUGUST 2014(UNAUDITED) 31 August 31 August 28 February 2014 2013 2014* Note £'000 £'000 £'000 Ordinary Share Fund Fixed assetsInvestments 4 4,250 4,354 4,573 Current assetsDebtors 99 79 73Cash at bank and on deposit 6 14 - 105 93 73 Creditors: amounts falling due withinone yearCreditors (90) (80) (107)Bank overdraft - - (22) (90) (80) (129) Net current assets/(liabilities) 15 13 (56) Non-current liabilitiesIFA trail commission (2) (8) (5) Total net assets 4,263 4,359 4,512 Capital and reservesCalled-up share capital 7 47 47 47Special reserve 3,480 3,729 3,729Capital reserve - realised 259 289 273Capital reserve - unrealised 770 515 736Revenue reserve (293) (221) (273) Total shareholders' funds 4,263 4,359 4,512 Net asset value per ordinary sharebasic 5 90.0p 92.0p 95.2p * These figures are audited.The notes form an integral part of these Accounts. 31 August 31 August 28 February 2014 2013 2014* Note £'000 £'000 £'000 C Share Fund Fixed assetsInvestments 4 1,677 1,553 1,647 Current assetsDebtors 41 16 29Cash at bank and on deposit 11 226 130 52 242 159 Creditors: amounts falling duewithin one yearCreditors (37) (26) (36) Net current assets 15 216 123 Non-current liabilitiesIFA trail commission (4) (6) (5) Total net assets 1,688 1,763 1,765 Capital and reservesCalled-up share capital 7 19 19 19Special reserve 1,541 1,628 1,628Capital reserve - realised 79 40 86Capital reserve - unrealised 167 169 137Revenue reserve (118) (93) (105) Total shareholders' funds 1,688 1,763 1,765 Net asset value per C share -basic 5 87.4p 91.3p 91.4p \* These figures are audited.The notes form an integral part of these Accounts. 31 August 2014 31 August 2013 28 February 2014* Note £'000 £'000 £'000 Total Fixed assetsInvestments 4 5,927 5,907 6,220 Current assetsDebtors 140 95 102Cash at bank and on deposit 17 240 130 157 335 232 Creditors: amounts falling due withinone yearCreditors (127) (106) (143)Bank overdraft - - (22) (127) (106) (165) Net current assets 30 229 67 Non-current liabilitiesIFA trail commission (6) (14) (10) Total net assets 5,951 6,122 6,277 Capital and reservesCalled-up share capital 7 66 66 66Special reserve 5,021 5,357 5,357Capital reserve - realised 338 329 359Capital reserve - unrealised 937 684 873Revenue reserve (411) (314) (378) Total shareholders' funds 5,951 6,122 6,277 Net asset value per ordinary share -basic 5 90.0p 92.0p 95.2p Net asset value per C share - basic 5 87.4p 91.3p 91.4p * These figures are audited.The notes form an integral part of these Accounts. CONDENSED CASH FLOW STATEMENTFOR TO THE PERIOD FROM 1 MARCH 2014 TO 31 AUGUST 2014(UNAUDITED) 6 Months 6 Months 12 Months Ended Ended Ended 31 August 31 August 28 February 2014 2013 2014* Note £'000 £'000 £'000 Ordinary Share Fund Operating activitiesInvestment income received 44 65 104Investment management fees (56) (23) (22)Other cash payments (74) (26) (103) Cash flow from operations 6 (86) 16 (21) Cash flow from investing activitiesPurchase of investments - (12) (12)Sale of investments 363 260 261 Net cash flow from investing activities 363 248 249 Equity dividend paid 8 (249) (249) (249) Net cash flow before financing 28 15 (21) Cash flow from financing activitiesExpenses of share issues - (5) (5) Net cash flow from financing activities - (5) (5) Increase/(decrease) in cash at bank and ondeposit 28 10 (26) * These figures are audited.The notes form an integral part of these Accounts. 6 Months 6 Months 12 Months Ended Ended Ended 31 August 31 August 28 February 2014 2013 2014* Note £'000 £'000 £'000 C Share Fund Operating activitiesInvestment income received 11 12 22Deposit interest received - 1 1Investment management fees (13) (17) (17)Other cash payments (30) (4) (38) Cash flow from operations 6 (32) (8) (32) Cash flow from investing activitiesPurchase of investments - (230) (657)Sale of investments - - 353 Net cash flow from investing activities - (230) (304) Equity dividend paid 8 (87) (87) (87) Net cash flow before financing (119) (325) (423) Cash flow from financing activitiesExpenses of share issue - (5) (3) Net cash flow from financing activities - (5) (3) Decrease in cash at bank and on deposit (119) (330) (426) * These figures are audited.The notes form an integral part of these Accounts. 6 Months 6 Months 12 Months Ended Ended Ended 31 August 31 August 28 February 2014 2013 2014* Note £'000 £'000 £'000 Total Operating activitiesInvestment income received 55 77 126Deposit interest received - 1 1Investment management fees (69) (40) (39)Other cash payments (104) (30) (141) Cash flow from operations 6 (118) 8 (53) Cash flow from investing activitiesPurchase of investments - (242) (669)Sale of investments 363 260 614 Net cash flow from investing activities 363 18 (55) Equity dividend paid 8 (336) (336) (336) Net cash flow before financing (91) (310) (444) Cash flow from financing activitiesExpenses of share issues - (10) (8) Net cash flow from financing activities - (10) (8) (Decrease)/increase in cash at bank and on deposit (91) (320) (452) * These figures are audited.The notes form an integral part of these Accounts. CONDENSED NOTES TO THE ACCOUNTS 1. Nature of Financial Information Basis of accounting These Accounts have been prepared under the historical cost convention, exceptfor the valuation of financial assets at fair value through profit or loss, inaccordance with UK Generally Accepted Accounting Practice ("UK GAAP"). TheseAccounts cover the six month period ended 31 August 2014. In determining the analysis of total income and expenses as between capitalreturn and revenue return, the Directors have followed the guidance containedin the AIC SORP, as revised in 2009, and on the assumption that the Companymaintains VCT status. The Accounts are prepared on the basis of the accounting policies set out inthe Annual Report and Accounts for the year ended 28 February 2014. The financial information contained in this report does not constitute fullstatutory accounts as defined in Section 434 of the Companies Act 2006. Thefinancial information for the six month period ended 31 August 2014 and the sixmonth period ended 31 August 2013 has not been audited or reviewed by theCompany's Auditors pursuant to the Auditing Practices Board guidance on suchreviews. The information for the year ended 28 February 2014 has been extracted from thelatest published Annual Report and Accounts, which have been filed with theRegistrar of Companies. The report of the Auditors on those Accounts containedno qualification or statement under Section 498(2) or (3) of the Companies Act2006. Going concern After making enquiries, and having reviewed the portfolio, balance sheet andprojected income and expenditure for the next twelve months, the Directors havea reasonable expectation that the Company has adequate resources to continue inoperation for the foreseeable future. The Directors have therefore adopted thegoing concern basis in preparing these Accounts. 2. Return per Share 6 Months Ended 6 Months Ended 12 Months Ended 31 August 2014 31 August 2013 28 February 2014 Revenue Capital Total Revenue Capital Total Revenue Capital Total pence pence pence pence pence pence pence Pence pence Return perordinaryshare (0.4) 0.4 0.0 0.2 0.8 1.0 (0.9) 5.1 4.2 Return perC share (0.7) 1.2 0.5 (0.7) 3.0 2.3 (1.3) 3.7 2.4 Ordinary shares Revenue return per ordinary share is based on the net revenue loss on ordinaryactivities after taxation of £20,000 (31 August 2013: gain of £8,000; 28February 2014: loss of £44,000) and on 4,738,463 ordinary shares (31 August2013: 4,738,463; 28 February 2014: 4,738,463), being the weighted averagenumber of ordinary shares in issue during the period. Capital return per ordinary share is based on the net capital gain for theperiod of £20,000 (31 August 2013: £38,000; 28 February 2014: £243,000) and on4,738,463 ordinary shares (31 August 2013: 4,738,463; 28 February 2014:4,738,463), being the weighted average number of ordinary shares in issueduring the period. Total return per ordinary share is based on the net gain on ordinary activitiesfor the period of £nil (31 August 2013: £46,000; 28 February 2014: £199,000)and on 4,738,463 ordinary shares (31 August 2013: 4,738,463; 28 February 2014:4,738,463), being the weighted average number of ordinary shares in issueduring the period. C shares Revenue return per C share is based on the net revenue loss on ordinaryactivities after taxation of £13,000 (31 August 2013: £13,000; 28 February2014: £25,000) and on 1,931,095 C shares (31 August 2013: 1,931,095; 28February 2014: 1,931,095), being the weighted average number of C shares inissue during the period. Capital return per C share is based on the net capital gain for the period of£23,000 (31 August 2014: £58,000; 28 February 2014: £72,000) and on 1,931,095C shares (31 August 2013: 1,931,095; 28 February 2014: 1,931,095), being theweighted average number of C shares in issue during the period. Total return per C share is based on the total gain for the period of £10,000(31 August 2013: £45,000; 28 February 2014: £47,000) and on 1,931,095 C shares(31 August 2013: 1,931,095; 28 February 2014: 1,931,095), being the weightedaverage number of C shares in issue during the period. 3. Taxation on Ordinary Activities The estimated effective tax rate at the year end is 0 per cent. for both sharefunds. This remains unchanged from the prior period. 4. Investments at Fair Value through Profit or Loss 31 August 31 August 28 February 2014 2013 2014 £'000 £'000 £'000 Ordinary Share Fund Investment portfolio summaryInvestments in Structured Products 1,946 1,727 1,883Quoted/unquoted investments 2,303 2,625 2,689Other investments 1 2 1 4,250 4,354 4,573 C Share Fund Investment portfolio summaryInvestments in Structured Products 519 707 503Quoted/unquoted investments 1,157 743 1,143Other investments 1 103 1 1,677 1,553 1,647 Total Investment portfolio summaryInvestments in Structured Products 2,465 2,434 2,386Quoted/unquoted investments 3,460 3,368 3,832Other investments 2 105 2 5,927 5,907 6,220 5. Net Asset Value per Share 31 August 31 August 28 February 2014 2013 2014 pence pence pence Net asset value per ordinary share 90.0 92.0 95.2 Net asset value per C share 87.4 91.3 91.4 The basic net asset value per ordinary share is based on net assets (includingcurrent period revenue) of £4,263,000 (31 August 2013: £4,359,000; 28 February2014: £4,512,000) and on 4,738,463 ordinary shares (31 August 2013: 4,738,463;28 February 2014: 4,738,463), being the number of ordinary shares in issue atthe period end. The basic net asset value per C share is based on net assets of £1,688,000 (31August 2013: £1,763,000; 28 February 2014: £1,765,000) and on 1,931,095 Cshares (31 August 2013: 1,931,095; 28 February 2014: 1,931,095), being thenumber of C shares in issue at the period end. 6. Reconciliation of Net Profit before Tax to Cash Flow from OperatingActivities 31 August 31 August 28 February 2014 2013 2014 £'000 £'000 £'000 Ordinary Share Fund Profit on ordinary activities before tax - 46 199Gain on investments (37) (56) (277)(Increase)/decrease in debtors (26) 31 37(Decrease)/increase in creditors (23) (5) 20 Cash flow from operating activities (86) 16 (21) C Share Fund Profit on ordinary activities before tax 10 45 47Gain on investments (30) (65) (85)(Increase)/decrease in debtors (12) (18) 6Decrease in creditors - (6) - Cash flow from operating activities (32) (8) (32) Total Profit on ordinary activities before tax 10 91 246Gain on investments (67) (121) (362)(Increase)/decrease in debtors (38) 49 43(Decrease)/increase in creditors (23) (11) 20 Cash flow from operating activities (118) 8 (53) 7. Called-up Share Capital 31 August 2014 Number £'000 Ordinary shares of 1p each 4,738,463 47 C shares of 1p each 1,931,095 19 8. Dividends For the year to 28 February 2014, the Ordinary Share Fund declared a finaldividend of 5.25p per ordinary share on 4,738,463 shares amounting to £248,769.The dividend was paid on 24 July 2014 to ordinary shareholders on the registerat 30 May 2014. For the year to 28 February 2014, the C Share Fund declared a final dividend of4.5p per C share on 1,931,095 shares amounting to £86,899. The dividend waspaid on 24 July 2014 to C shareholders on the register at 30 May 2014. 9. Transactions with Related Parties John Glencross, a Director of the Company, is considered to be a related partydue to his position as Chief Executive and a director of Calculus Capital, oneof the Company's Investment Managers. He does not receive any remuneration fromthe Company. He is a director of Terrain Energy Limited and Lime TechnologyLimited, companies in which the Company has invested. Fees for the provision ofMr Glencross as a director of these companies are paid to Calculus Capital andare disclosed in note 10. 10. Transactions with Investment Managers Investec Structured Products is an Investment Manager to the Company and isentitled to a performance incentive fee. Investec Structured Products willreceive an arrangement fee of 0.75 per cent. of the amount invested in eachStructured Product. This arrangement fee shall be paid to Investec StructuredProducts by the issuer of the relevant Structured Product. No arrangement feewill be paid to Investec Structured Products in respect of any decision toinvest in Investec-issued Structured Products. Investec Structured Products hasagreed not to earn an annual management fee from the Company. As at 31 August 2014, £84,238 (31 August 2013: £24,749; 28 February 2014:£56,734) was owed by Investec Structured Products as claw back of costs inexcess of the agreed expenses cap of 3 per cent. to the Ordinary Share Fund.£34,699 (31 August 2013: £10,702; 28 February 2014: £23,236) was owed to the CShare Fund. Calculus Capital receives an investment management fee from the Company. Forthe period ended 31 August 2014, fees of £22,790 (31 August 2013: £23,310; 28February 2014: £45,171) were payable to Calculus Capital by the Ordinary ShareFund. As at 31 August 2014, fees of £9,001 (31 August 2013: £9,099; 28 February2014: £17,774) were payable by the C Share Fund. Calculus Capital is alsoentitled to a performance incentive fee. Calculus Capital receives an award fee from Terrain, Lime, Human Race,Metropolitan, Hampshire, Money Dashboard and Quai for the provision of adirector, as well as an annual monitoring fee which also covers the provisionof certain administrative support services. In the period ended 31 August 2014,the amount paid to Calculus Capital which was attributable to the investmentmade by the Company was £533 (31 August 2013: £1,648; 28 February 2014: £2,291)from Terrain; £1,069 (31 August 2013: £1,356; 28 February 2014: £2,112) fromLime; £1,870 (31 August 2013: £1,705; 28 February 2014: £3,665) from HumanRace; £1,302 (31 August 2013: £482; 28 February 2014: £1,201) fromMetropolitan; £1,561 (31 August 2013: £1,219; 28 February 2014: £2,167) fromHampshire; £753 (31 August 2013: £nil; 28 February 2014: £186) from MoneyDashboard; and £677 (31 August 2013: £nil; 28 February 2014: £nil) from Quai(all excluding VAT). Calculus Capital receives an annual fee from Dryden, Corfe, Brigantes andBenito's Hat for the provision of a director. In the period ended 31 August2014, the amount paid to Calculus Capital which was attributable to theinvestment made by the Company was £202 (31 August 2013: £901; 28 February2014: £1,186) from Dryden; £375 (31 August 2013: £364; 28 February 2014: £734)from Brigantes; £222 (31 August 2013: £216; 28 February 2014: £435) from Corfe,and £149 (31 August 2013: £94; 28 February 2014: £374) from Benito's Hat (allexcluding VAT). Calculus Capital also receives an annual monitoring fee from Tollan,MicroEnergy and AnTech which covers the provision of certain administrativesupport services. In the period ended 31 August 2014, the amount paid toCalculus Capital which was attributable to the investment made by the Companywas £1,218 (31 August 2013: £1,406; 28 February 2014: £2,813) from Tollan; £630(31 August 2013: £1,003; 28 February 2014: £2,097) from MicroEnergy; and £1,029(31 August 2013: £nil; 28 February 2014: £2,455) from AnTech (all excludingVAT). COMPANY INFORMATION Directors Fund Administrator andMichael O'Higgins (Chairman) Company SecretaryKate Cornish-Bowden Capita Sinclair Henderson LimitedJohn Glencross (Trading as Capita Asset Services)Steven Meeks Beaufort House 51 New North Road Exeter EX4 4EP Registered OfficeBeaufort House Auditors51 New North Road Grant Thornton UK LLPExeter EX4 4EP 30 Finsbury SquareTelephone: 01392 477 500 London EC2P 2YU Company Number Sponsor and Broker07142153 Nplus1 Singer Advisory LLP One Hanover StreetStructured Products Investment London W1S 1YZManagerInvestec Structured Products Registrars2 Gresham Street Capita Asset ServicesLondon EC2V 7QP The RegistryTelephone: 020 7597 4000 34 Beckenham RoadWebsite: Beckenhamwww.investecstructuredproducts.com Kent BR3 4TU Telephone: 0871 644 0300 Venture Capital Investments ManagerCalculus Capital Limited (Calls cost 10p per minute plus network extras. Lines are open Monday to Friday 9.00104 Park Street am to 5.30 pm).London W1K 6NFTelephone: 020 7493 4940Website: www.calculuscapital.com Printed copies of the Investec Structured Products Calculus VCT plc Half YearlyReport for the six months ended 31 August 2014 has not been posted toshareholders. However a copy can be found on the following websites:www.calculuscapital.com and www.investecstructuredproducts.com. For further information, please contact: Investment Manager to the Structured Products PortfolioInvestec Structured ProductsGary DaleTelephone: 020 7597 4065 Investment Manager to the Venture Capital PortfolioCalculus Capital LimitedSusan McDonaldTelephone: 020 7493 4940 Neither the contents of the Company's website nor the contents of any websiteaccessible from hyperlinks on this announcement (or any other website) areincorporated into, or form part of, this announcement.