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30 Oct 2012 17:03
Investec Structured Products Calculus VCT plc
Half Yearly Report
for the six months ended 31 August 2012
INVESTMENT OBJECTIVE
Investment Objective
The Company's principal objectives for investors are to:
* invest in a portfolio of Venture Capital Investments and Structured Products that will provide investment returns sufficient to allow the Company to maximise annual dividends and pay an interim return either by way of a special dividend or cash offer for shares on or before an interim return date;
* generate sufficient returns from a portfolio of Venture Capital Investments that will provide attractive long-term returns within a tax efficient vehicle beyond an interim return date;
* review the appropriate level of dividends annually to take account of investment returns achieved and future prospects; and
* maintain VCT status to enable qualifying investors to retain their income tax relief of up to 30 per cent. on the initial investment and receive tax-free dividends and capital growth.
FINANCIAL REVIEWOrdinary Share Fund 6 Months to Year to 6 Months to 31 August 29 February 31 August 2012 2012 2011Total returnTotal return £27,000 (£80,000) (£133,000)Total return per ordinary share 0.6p (1.7)p (2.8)p RevenueNet loss after tax (£27,000) (£71,000) (£37,000)Revenue return per ordinary (0.6)p (1.5)p (0.8)pshare As at 31 As at 29 As at 31 August February August 2012 2012 2011 AssetsNet assets £4,280,000 £4,501,000 £4,450,000Net asset value ("NAV") per 90.3p 95.0p 93.9pordinary share Mid market quotationOrdinary shares 92.5p 97.5p 99.5pPremium to NAV 2.4% 2.6% 6.0%C Share Fund 6 Months to 11 Months to 5 Months to 31 August 29 February 31 August 2012 2012 2011* Total returnTotal return (£1,000) (£33,000) (£16,000)Total return per C share (0.1)p (1.7)p (0.8)p RevenueNet loss after tax (£18,000) (£45,000) (£21,000)Revenue return per C share (1.0)p (2.3)p (1.1)p As at 31 As at 29 As at 31 August February August 2012 2012 2011AssetsNet assets £1,700,000 £1,788,000 £1,806,000NAV per C share 88.0p 92.6p 93.5p Mid market quotationC shares 90.0p 94.0p 94.0pPremium to NAV 2.3% 1.5% 0.5%
* The C shares were issued in three tranches, on 1 April 2011, 5 April 2011 and 4 May 2011.
INTERIM MANAGEMENT REPORTPerformance SummaryThe net asset value per ordinary share was 90.3 pence as at 31 August 2012compared to 95.0 pence as at 29 February 2012. This is after paying 5.25 pencedividends in July 2011 and July 2012 bringing the total return per ordinaryshare to 100.8 pence. The net asset value per C share was 88.0 pence as at 31August 2012 compared to 92.6 pence as at 29 February 2012. This is afterpaying a 4.5 pence dividend in July 2012, bringing the total return per Cshare to 92.5 pence. We are encouraged by the Company's performance to dateand believe the portfolio is well positioned to make further progress in thesecond half of the year.Venture Capital InvestmentsPortfolio developmentsCalculus Capital Limited ("Calculus Capital") manages the VCT's portfolio of qualifyinginvestments. It is intended, over a three year period, to invest approximately75 per cent. of the Company's funds in a diversified portfolio of unquotedqualifying companies. In general, we prefer to take stakes of sufficient sizeto enable us to play a more influential role in helping the companies develop.Investments may be by way of a combination of loan stock and/or preferenceshares as well as equity. This provides income for the VCT to help pay regulardividends and provides a measure of risk mitigation.
The Ordinary Share Fund and the C Share Fund are managed separately although they both have the same investment remit and, therefore, both have very similar portfolios.
As at 31 August 2012, eight qualifying investments were held by the OrdinaryShare Fund: Terrain Energy Limited ("Terrain"), Lime Technology Limited("Lime"), MicroEnergy Generation Services Limited ("MicroEnergy"), Human RaceGroup Limited ("Human Race"), Secure Electrans Limited ("Secure"),Metropolitan (formerly Viscount) Safe Custody Services Limited ("Metropolitan"),Brigantes Energy Limited ("Brigantes") and Corfe Energy Limited ("Corfe").Brigantes and Corfe were originally each set up to acquire oil and gas assetsspun out from InfraStrata plc. The C Share Fund currently has four qualifyinginvestments: Terrain, Human Race, Metropolitan and Secure.
Terrain Energy Limited
Terrain continues to make good progress, and the fair value of the investmenthas increased to reflect this. Terrain currently has interests in sixpetroleum licences: Keddington, Kirklington, Dukes Wood, Kelham Hills, Burtonon the Wolds and Larne in Northern Ireland in which Terrain has a 10 per cent.interest. The main prospect is a conventional gas play thought to be ageological extension of the Morecambe Bay gas field. A 2D seismic survey of399 line kilometres has been completed and a number of structural leads havebeen identified. Terrain also has a 10 per cent. interest in a NauticalPetroleum operated application in the 27th licensing round.The Company has 3.5 per cent. of the equity in Terrain. Other funds managed byCalculus Capital have invested in Terrain and have combined voting rights of19.3 per cent.Lime Technology LimitedLime is a developer of sustainable, low carbon building materials. Whilst theconstruction industry contracted in 2011, the 'green' sector showed a modestupward trend. The price of the original investment in 2010 has been writtendown. Trading was hit by the very bad winter in 2010/11 which effectivelystopped all construction activity in the UK for about three months. To avoidthis problem in the future, Lime accelerated its shift to supplying precastpanels. During this time Calculus Capital also initiated certain managementchanges. Having completed a contract for the new Marks and Spencer superstoreat Cheshire Oaks in 2011, Lime has recently completed its largest contract todate to build the archives for the London Science Museum.
MicroEnergy Generation Services Limited
MicroEnergy has been set up to generate electricity from renewablemicro-generation facilities. As at 31 August 2012, MicroEnergy had 71 turbinesinstalled and this has now increased to 84. The portfolio will provideMicroEnergy with sufficient scale to mitigate against poor short-termperformance at any particular site. The revenues from the fleet of installedturbines come from two sources, both of which are inflation protected, beingdirectly linked to RPI. Firstly there is the Government backed feed-in tariffpaid by the electricity suppliers for every kilowatt of electricity generatedwhich is guaranteed for twenty years. Secondly there is the export tariff forany surplus electricity not used by the site owner that is exported to thegrid.
The Company has 5.1 per cent. of the equity in MicroEnergy. Other funds managed by Calculus Capital have invested in MicroEnergy and have combined voting rights of 5.8 per cent.
Brigantes Energy Limited
Brigantes is an oil and gas exploration and production company with interestsin licences in the East Midlands and Northern Ireland. Brigantes owns 40 percent. of the PL1/10 licence in Northern Ireland which covers 663 squarekilometres with permitted development rights for drilling an exploration well.In September 2011, Brigantes acquired a 5 per cent. interest in UK OnshorePetroleum Exploration and Development Licence ("PEDL") 070 from EgdonResources Avington Limited. PEDL070 includes the Avington oilfield, nearWinchester, which has continued to produce oil from the Great Oolite (BathStone) at an average gross rate of 75 barrels per day since the well wasdrilled.
Corfe Energy Limited
Corfe has interests in two licences: a 5 per cent. interest in Avingtonoilfield in Hampshire and a 12.5 per cent. interest in Burton on the Wolds inthe East Midlands. In February 2012, Corfe entered into a 2:1 farm-in to earna 12.5 per cent. equity interest in PEDL201 located in Nottinghamshire andLeicestershire from Egdon Resources U.K. Limited and Celtique EnergiePetroleum Limited. Corfe is entitled to a 12 per cent. interest in certainonshore licences located at Portland, Dorset awarded to InfraStrata under the26th Offshore Licensing Round.
Human Race Group Limited
In April 2012, the Company invested in Participate Sport Limited("Participate"), a company that owns and operates mass participation sportsevents including running, cycling, swimming and triathlon. The investment wasmade to support the acquisition of Human Race. The merger creates the UK'slargest and most diverse mass participation sports events company. Thecombined group owns and delivers over 55 events in triathlon, cycling,running, duathlon, aquathlon and open water swimming for over 100,000participants of all abilities and ages. Participate's objective is to be aleader in the ownership and delivery of mass participation sports eventsinternationally. The mass participation industry has grown strongly over thepast decade and its rapid growth has been relatively unaffected by the recenteconomic recession. Participate has subsequently changed itsname to Human Race Group Limited.
The Company has 3.0 per cent. of the equity in Human Race. Other funds managed by Calculus Capital have invested in Human Race and have combined voting rights of 36.2 per cent.
Secure Electrans Limited
Secure was founded in 2000 and has developed internationallypatented systems that provide solutions to card payment fraud, a market placethat is ready for high growth. Chip and pin has significantly reduced retailcredit card fraud much of which has moved to 'card not present' transactionson devices such as home computers, mobile phones and other similar paymentdevices. Secure's systems provide two factor verification (chip and pin) forcard not present transactions and has patents that allow an even higher levelof verification (three factor verification) for card not present transactions(chip, pin and geolocation). A pilot roll out involving leading companies inthe payments industry is planned to commence shortly.
Metropolitan (formerly Viscount) Safe Custody Services Limited
In February 2012 the Company invested £280,000 in Metropolitan, a holdingcompany for Metropolitan Safe Deposits Limited that provides safe custodyservices in the central London area. Metropolitan is one of the oldestestablished brand names in the safe custody sector in London. Traditionallythis service has been provided by banks but high street banks are fastwithdrawing from such physical banking services, providing opportunities forindependent operators. Metropolitan is well placed to take advantage of theseopportunities. Metropolitan recently acquired the assets of the London SafeDeposit Company and is launching a gold service to acquire, transport, storeand sell gold on behalf of high net worth customers later in the autumn.
The Company has 3.2 per cent. of the equity in Metropolitan. Other funds managed by Calculus Capital have invested in Metropolitan and have combined voting rights of 38.9 per cent.
Developments since the period end
There have not been any significant developments in the venture capital portfolio since the period end.
Structured Products Portfolio
In line with the Company's strategy set out in the original offer documents, alarge percentage of the initial cash raised has been used to build a portfolioof Structured Products. The portfolio of Structured Products has beenconstructed with different issuers and differing maturity periods to minimiserisk and create a diversified portfolio. In the Ordinary Share Fund, the HSBCinvestment has matured, paying 25.1 per cent. The RBS Autocallable matured inboth the Ordinary Share and C Share Funds, paying a 10.5 per cent. return. TheFTSE 100 Initial Index levels for the remaining investments range from4,940.68 to 5,584.51.The Morgan Stanley Product is the next product due to reach maturity. Thiswill mature on 17 December 2012 and the potential return is 134 per cent. of£500,000, which would total £670,000. The strike is 5,132.50 and the FTSE 100,at 5,805.05 as at 25 October 2012, is sitting comfortably higher.The original intention was to borrow in order to provide cash flow forQualifying Investments pending maturity of some of the portfolio of StructuredProducts. After consideration of the relative costs involved at the time, theBoard decided to sell the Nomura Structured Product early rather than raisefunds by borrowing. The Managers raised £441,875 for Qualifying Investments inthe Ordinary Share Fund by selling the Nomura Structured Product in March atits fair market value to the C Share Fund. The price at which this was soldgave a healthy return to the Ordinary Share Fund and should allow the C ShareFund to gain a better return in nine months than could be had by investing ina primary issue with similar risk. The cash flow improves for the Company as awhole, as returns have been captured earlier than expected. The starting levelof the FTSE 100 for the Nomura Structured Product was 5,188.43. As long as theFinal Index Level is above this level when it matures on 20 February 2013, theproduct will yield the maximum payoff.Over the past three months swap rates have remained low, market volatility hasdeclined further and the FTSE 100 has increased to sit comfortably above allof the products' strike levels. The market environment remains poor, but theFTSE 100 has performed well since the original investments in the StructuredProducts portfolio.As at 31 August 2012, the following investments had been made in StructuredProducts. The Structured Products will achieve their target return subject tothe Final Index Level of the FTSE 100 being higher than the Initial IndexLevel. The capital is at risk on a one-for-one basis ("CAR") if the FTSE 100Index falls more than 50 per cent. any time during the investment term andfails to fully recover at maturity such that the Final Index Level is belowthe Initial Index Level.Ordinary Share Fund Structured Products Portfolio as at 31 August2012 FTSE 100 Valuation Initial
Price as at as at Return/Capital
Strike Maturity Index Notional Purchase 31 August 31 August at RiskIssuer Date Date Level Investment Price Cost 2012 2012 ("CAR") The Royal 05/05/2010 12/05/2015 5,341.93 £275,000 £0.96 £264,000 £1.1851 £325,903 162.5% if FTSEBank of 100* higher; CARScotland if FTSE 100plc falls more than 50% Investec 14/05/2010 19/11/2015 5,262.85 £500,000 £0.98 £489,550 £1.2377 £618,850 185% if FTSEBank plc 100* higher; CAR if FTSE 100 falls more than 50% Abbey 25/05/2010 18/11/2015 4,940.68 £350,000 £0.99 £346,430 £1.3638 £477,330 185% if FTSENational 100* higher; CARTreasury if FTSE 100Services falls more than 50% Morgan 10/06/2010 17/12/2012 5,132.50 £500,000 £1.00 £500,000 £1.2850 £642,500 134% if FTSEStanley 100* higher; CARInternational if FTSE 100 falls more than 50% Abbey 03/08/2011 05/02/2014 5,584.51 £50,000 £1.00 £50,000 £1.0613 £53,065 126% if FTSENational 100* higher; CARTreasury if falls moreServices than 50%Matured/Sold FTSE 100 Initial Valuation Index
Price as at as at Return/Capital
Strike Maturity Level at Notional Purchase Maturity/ Maturity/ at RiskIssuer Date Date Maturity Investment Price Cost Sale Sale ("CAR")HSBC 01/07/2010 06/07/2012 4,805.75 £500,000 £1.00 £500,000 £1.2510 £625,500 125.1% if FTSEBank 100* higher; CARplc if FTSE 100 falls more than 50% The Royal 18/03/2011 19/03/2012 5,718.13 £50,000 £1.00 £50,000 £1.1050 £55,250 AutocallableBank of 10.5% p.a.; CARScotland if FTSE 100plc falls more than 50% Nomura 28/05/2010 20/02/2013 5,188.43 £350,000 £0.98 £343,000 £1.2625 £441,875 137% if FTSEBank 100* higher; CARInternational if FTSE 100** falls more than 50%
The total current valuation of the amount invested in Structured Products in the Ordinary Share Fund as at 31 August 2012 was £2,117,648.
C Share Fund Structured Products Portfolio as at 31 August 2012
FTSE 100
Price Valuation
Initial
as at as at Return/Capital
Strike Maturity Index Notional Purchase 31 August 31 August at RiskIssuer Date Date Level Investment Price Cost 2012 2012 ("CAR") Investec 05/08/2011 10/03/2017 5,246.99 £328,000 £1.00 £328,000 £1.1546 £378,707 182% if FTSE 100*Bank higher; CAR ifplc FTSE 100 falls more than 50% Abbey 03/08/2011 05/02/2014 5,584.51 £200,000 £1.00 £200,000 £1.0613 £212,260 126% if FTSE 100*National higher; CAR ifTreasury falls more thanServices 50% Nomura 28/05/2010 20/02/2013 5,188.43 £350,000 £1.2625 £441,875 £1.2958 £453,530 137% if FTSE 100*Bank higher; CAR ifInternational FTSE 100 falls more than 50% Matured FTSE 100 Initial Index Price Valuation Return/Capital Strike Maturity Level Notional Purchase
as at as at at Risk Issuer Date Date at Maturity Investment Price Cost Maturity Maturity (CAR)
The Royal 18/03/2011 19/03/2012 5,718.13 £200,000 £1.00 £200,000 £1.1050 £221,000 AutocallableBank of 10.5% p.a.;Scotland CAR if FTSEplc 100 falls more than 50%
The total current valuation of the amount invested in Structured Products in the C Share Fund as at 31 August 2012 was £1,044,497.
* The Final Index Level is calculated using 'averaging', meaning that the average of the closing levels of the FTSE 100 is taken on each Business Day over the last 2-6 months of the Structured Product plan term (the length of the averaging period differs for each plan). The use of averaging to calculate the return can reduce adverse effects of a falling market or sudden market falls shortly before maturity. Equally, it can reduce the benefits of an increasing market or sudden market rises shortly before maturity.
** The Nomura Structured Product was sold prior to maturity with a return on initial investment of 28.8 per cent. This was sold to the C Share Fund.
Outlook
Although conditions remain difficult for the UK economy in 2012, there aresigns of improvement for 2013. The companies in the portfolio are positionedto benefit from the upturn. The value of the Structured Products is dependenton the performance of the underlying indices which reflect global economicconditions. Structured Products will represent a decreasing proportion of theportfolio as the Company continues to make Qualifying Investments towards theminimum 70 per cent. target.Calculus Capital Limited Investec Structured Products30 October 2012 30 October 2012
INVESTMENT PORTFOLIO AS AT 31 AUGUST 2012
- ORDINARY SHARE FUNDSector % Structured Products 53%Unquoted - Qualifying Investments 42%
Unquoted - other non-Qualifying Investments 5%
100% Net Assets % Structured Products 50%Unquoted - loan stock 21%Unquoted - ordinary and preference shares 17%Unquoted - other non-Qualifying Investments 5%Net current assets 7% 100% Nature of Book Cost Valuation % of Net % ofCompany Business £'000 £'000 Assets PortfolioStructured ProductsInvestec Bank plc Banking 490 619 15% 16%The Royal Bank ofScotland plc Banking 264 326 8% 8%Abbey National TreasuryServices Banking 396 530 12% 13%Morgan StanleyInternational Banking 500 643 15% 16% Total Structured 1,650 2,118 50% 53%Products
Qualifying Investments
Onshore oil and
Terrain Energy Limited gas production 300 313 7%
8%
Lime Technology Limited Construction 307 266 6%
6%
MicroEnergy GenerationServices Limited Energy 300 300 7%
8%
Brigantes Energy Limited Energy 125 125 3%
3%
Corfe Energy Limited Energy 75 75 2%
2%
Human Race Group Limited Leisure 300 300 7%
8%Heritage House Media Publishing andLimited* media services 127 - - - E-commerce
Secure Electrans Limited security 100 100 2%
2%
Metropolitan Safe Safe depositoryCustody Services Limited services 190 190 4%
5% Total QualifyingInvestments 1,824 1,669 38% 42% Other non-QualifyingInvestments
Fidelity Liquidity Fund Liquidity fund 81 81 2%
2%
Goldman Sachs LiquidityFund Liquidity fund 50 50 1% 1%Scottish WidowsLiquidity Fund Liquidity fund 65 65 2% 2% Total Othernon-QualifyingInvestments 196 196 5% 5% Total investments 3,670 3,983 93% 100% Net current assets lesscreditors due after oneyear 297 7% Net assets 4,280 100%
* Included in the cost is £1,834 invested in Investec SPV Limited, a wholly owned subsidiary of the Company.
INVESTMENT PORTFOLIO AS AT 31 AUGUST 2012
- C SHARE FUNDSector % Structured Products 64%Unquoted - Qualifying Investments 24%
Unquoted - other non-Qualifying Investments 12%
100% Net Assets % Structured Products 62%Unquoted - loan stock 11%
Unquoted - ordinary and preference shares 11% Unquoted - other non-Qualifying Investments 12% Net current assets
4% 100% Nature of Book Cost Valuation % of Net % ofCompany Business £'000 £'000 Assets Portfolio Structured ProductsInvestec Bank plc Banking 328 379 22% 23%Abbey NationalTreasury Services Banking 200 212 13% 13%Nomura BankInternational Banking 442 454 27% 28% Total StructuredProducts 970 1,045 62% 64% QualifyingInvestments Terrain Energy Onshore oil andLimited gas production 90 93 5% 6%Human Race GroupLimited Leisure 150 150 9% 9%Heritage House Media Publishing andLimited* media services 64 - - -Secure Electrans E-commerceLimited security 50 50 3% 3%Metropolitan SafeCustody Services Safe depositoryLimited services 90 90 5% 6% Total QualifyingInvestments 444 383 22% 24% Other non-QualifyingInvestmentsFidelity Liquidity Fund Liquidity fund 101 101 6% 6%Goldman SachsLiquidity Fund Liquidity fund 50 50 3% 3%Scottish WidowsLiquidity Fund Liquidity fund 47 47 3% 3% Total Othernon-QualifyingInvestments 198 198 12% 12% Total investments 1,612 1,626 96% 100% Net current assetsless creditors dueafter one year 74 4% Net assets 1,700 100%
* Included in the cost is £917 invested in Investec SPV Limited.
PRINCIPAL RISKS
The principal risks facing the Company are substantially unchanged since thedate of the Annual Report and Accounts for the year ended 29 February 2012 andcontinue to be as set out in that report.
Risks faced by the Company include, but are not limited to, loss of approval as a venture capital trust and other regulatory breaches, risks of making Venture Capital Investments, risks attaching to investment in Structured Products, liquidity/marketability risk, changes in legislation/taxation, engagement of third party advisers, C shares versus ordinary shares, market price risk and credit risk.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm that to the best of their knowledge:
* the condensed set of financial statements has been prepared in accordance with the Statement on Half Yearly Financial Reports issued by the UK Accounting Standards Board and gives a true and fair view of the assets, liabilities and financial position of the Company; and
* this Half Yearly Financial Report includes a fair review of the information required 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 party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so.
This Half Yearly Financial Report was approved by the Board of Directors on
30 October 2012 and the above responsibility statement was signed on its behalf by Michael O'Higgins, Chairman.
CONDENSED INCOME STATEMENT
FOR THE PERIOD FROM 1 MARCH 2012 TO 31 AUGUST 2012 (UNAUDITED)
6 Months Ended 6 Months Ended 12 Months Ended 31 August 2012 31 August 2011 29 February 2012* Revenue Capital Revenue Capital Revenue Capital Return Return Total Return Return Total Return Return Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Ordinary Share Fund Investment holding(losses)/gains - (159) (159) - (78) (78) - 26 26Realised gains oninvestments - 230 230 - - - - - -Income 32 - 32 23 - 23 48 - 48Investment management fee (5) (17) (22) (6) (18) (24) (12) (35) (47)Other operating expenses (54) - (54) (54) - (54) (107) - (107) (Loss)/profit onordinaryactivitiesbefore taxation (27) 54 27 (37) (96) (133) (71) (9) (80) Taxation onordinaryactivities (note 3) - - - - - - - - - (Loss)/profit onordinaryactivitiesafter taxation (27) 54 27 (37) (96) (133) (71) (9) (80) Return perordinaryshare - basic (0.6)p 1.2p 0.6p (0.8)p (2.0)p (2.8)p (1.5)p (0.2)p (1.7)p(note 2) 6 Months Ended 5 Months Ended 11 Months Ended 31 August 2012 31 August 2011 29 February 2012* Revenue Capital Revenue Capital Revenue Capital Return Return Total Return Return Total Return Return Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000C Share Fund Investment holding(losses)/gains - (10) (10) - 11 11 - 24 24Realised gains oninvestments - 34 34 - - - - - -Income 6 - 6 3 - 3 7 - 7Investmentmanagement fee (2) (7) (9) (2) (6) (8) (4) (12) (16)Other operatingexpenses (22) - (22) (22) - (22) (48) - (48) (Loss)/profit onordinaryactivitiesbefore taxation (18) 17 (1) (21) 5 (16) (45) 12 (33) Taxation onordinaryactivities (note 3) - - - - - - - - - (Loss)/profit onordinaryactivitiesafter taxation (18) 17 (1) (21) 5 (16) (45) 12 (33) Return per Cshare - basic (1.0)p 0.9p (0.1)p (1.1)p 0.3p (0.8)p (2.3)p 0.6p (1.7)p(note 2)* These figures are audited.
The total columns of these statements represent the Income Statement of the Ordinary 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") Statementof Recommended Practice ("SORP"). 6 Months Ended 6 Months Ended 12 Months Ended 31 August 2012 31 August 2011 29 February 2012* Revenue Capital Revenue Capital Revenue Capital Return Return Total Return Return Total Return Return Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Total Investment holding(losses)/gains - (169) (169) - (67) (67) - 50 50Realised gains oninvestments - 264 264 - - - - - -Income 38 - 38 26 - 26 55 - 55Investment
management fee (7) (24) (31) (8) (24) (32) (16) (47) (63)Other operatingexpenses (76) - (76) (76) - (76) (155)
- (155) (Loss)/profit onordinaryactivities
before taxation (45) 71 26 (58) (91) (149) (116) 3 (113) Taxation onordinaryactivities (note 3) - - - - - - - - - (Loss)/profit onordinaryactivitiesafter taxation (45) 71 26 (58) (91) (149) (116) 3 (113) Return perordinaryshare - basic (0.6)p 1.2p 0.6p (0.8)p (2.0)p (2.8)p (1.5)p (0.2)p (1.7)p(note 2) Return per Cshare - basic (1.0)p 0.9p (0.1)p (1.1)p 0.3p (0.8)p (2.3)p (0.6)p (1.7)p(note 2)
* 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 prepared in accordance with the AIC 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 the Income Statement.
The notes form an integral part of these Accounts.
CONDENSED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
FOR THE PERIOD FROM 1 MARCH 2012 TO 31 AUGUST 2012 (UNAUDITED)
Share Capital Capital Share Premium Special Reserve Reserve Revenue Capital Account Reserve Realised Unrealised Reserve Total £'000 £'000 £'000 £'000 £'000 £'000 £'000Ordinary Share Fund For the 6 month period to 31 August20121 March 2012 47 - 4,226 (61) 472 (183) 4,501IFA trail commission accrualadjustment - - 1 - - - 1Unrealised net decrease in value ofinvestments - - - - (159) - (159)Gain on disposal of investments - - - 230 - - 230Management fee allocated to capital - - - (17)
- - (17)Revenue return on ordinaryactivities after tax - - - - - (27) (27)Dividend paid (note 8) - - (249) - - - (249) Closing balance 47 - 3,978 152 313 (210) 4,280 For the 6 month period to 31 August20111 March 2011 47 752 3,729 (26) 446 (112) 4,836Loss for the period - - - (18) (78) (37) (133)Expenses of share issues - (4) - - - - (4)Dividends paid - - (249) - - - (249) 31 August 2011 47 748 3,480 (44) 368 (149) 4,450 For the year ended 29 February2012*1 March 2011 47 752 3,729 (26) 446 (112) 4,836Cancellation of share premium - (747) 747 - - - -Expenses of share issue - (5) (1) - - - (6)Unrealised net increase in valueof investments - - - - 26 - 26Management fee allocated to capital - - - (35)
- - (35)Revenue return on ordinaryactivitiesafter tax - - - - - (71) (71)Dividend paid - - (249) - - - (249) 29 February 2012 47 - 4,226 (61) 472 (183) 4,501 Share Capital Capital Share Premium Special Reserve Reserve Revenue Capital Account Reserve Realised Unrealised Reserve Total £'000 £'000 £'000 £'000 £'000 £'000 £'000C Share Fund For the 6 month period to 31 August20121 March 2012 19 - 1,802 (12) 24 (45) 1,788Unrealised net decrease in value ofinvestments - - - - (10) - (10)Gain on disposal of investments - - - 34 - - 34Management fee allocated to capital - - - (7)
- - (7)Revenue return on ordinaryactivities after tax - - - - - (18) (18)Dividend paid (note 8) - - (87) - - - (87) Closing balance 19 - 1,715 15 14 (63) 1,700 For the 5 month period to 31 August20111 March 2011 - - - - - - -(Loss)/gain for the period - - - (6) 11 (21) (16)
Increase in share capital in issue 19 1,912 - -
- - 1,931Expenses of share issues - (109) - - - - (109) 31 August 2011 19 1,803 - (6) 11 (21) 1,806 For the 11 month period to 29February 2012*1 March 2011 - - - - - - -
Increase in share capital in issue 19 1,912 - -
- - 1,931Cancellation of share premium - (1,802) 1,802 - - - -Expenses of share issue - (110) - - - - (110)Unrealised net increase in valueof investments - - - - 24 - 24Management fee allocated to capital - - - (12)
- - (12)Revenue return on ordinaryactivitiesafter tax - - - - - (45) (45) 29 February 2012 19 - 1,802 (12) 24 (45) 1,788 Share Capital Capital Share Premium Special Reserve Reserve Revenue Capital Account Reserve Realised Unrealised Reserve Total £'000 £'000 £'000 £'000 £'000 £'000 £'000Total For the 6 month period to 31 August20121 March 2012 66 - 6,028 (73) 496 (228) 6,289Share issue expense adjustment - - 1 - - - 1Unrealised net decrease in value ofinvestments - - - - (169) - (169)Gain on disposal of investments - - - 264 - - 264Management fee allocated to capital - - - (24)
- - (24)Revenue return on ordinaryactivities after tax - - - - - (45) (45)Dividend paid (note 8) - - (336) - - - (336) Closing balance 66 - 5,693 167 327 (273) 5,980 For the 6 month period to 31 August20111 March 2011 47 752 3,729 (26) 446 (112) 4,836Loss for the period - - - (24) (67) (58) (149)
Increase in share capital in issue 19 1,912 - -
- - 1,931Expenses of share issues - (113) - - - - (113)Dividends paid - - (249) - - - (249) 31 August 2011 66 2,551 3,480 (50) 379 (170) 6,256 For the year ended 29 February2012*1 March 2011 47 752 3,729 (26) 446 (112) 4,836Increase in share capital in issue 19 1,912 - -
- - 1,931Cancellation of share premium - (2,549) 2,549 - - - -Expenses of share issue - (115) (1) - - - (116)Unrealised net increase in valueof investments - - - - 50 - 50Management fee allocated to capital - - - (47)
- - (47)Revenue return on ordinaryactivitiesafter tax - - - - - (116) (116)Dividend paid - - (249) - - - (249) 29 February 2012 66 - 6,028 (73) 496 (228) 6,289* These figures are audited.
The notes form an integral part of these Accounts.
CONDENSED BALANCE SHEET
AS AT 31 AUGUST 2012 (UNAUDITED)
31 August 31 August 29 February 2012 2011 2012* Note £'000 £'000 £'000Ordinary Share Fund Fixed assets
Investments designated at fair 4 3,983 4,260
4,435value through profit or loss Current assetsDebtors 155 302 119Cash at bank and on deposit 221 147 28 376 449 147 Creditors: amounts falling duewithin one yearCreditors (67) (141) (66) Due to C Share Fund - (100) - Net current assets 309 208 (66) Non-current liabilitiesIFA trail commission (12) (18) 81 Total net assets 4,280 4,450 4,501 Capital and reservesCalled-up share capital 7 47 47 47Share premium account - 748 -Special reserve 3,978 3,480 4,226
Capital reserve - realised 152 (44)
(61)
Capital reserve - unrealised 313 368
472Revenue reserve (210) (149) (183) Total shareholders' funds 4,280 4,450 4,501
Net asset value per ordinary share 5 90.3p 93.9p
95.0p
* These figures are audited.
The notes form an integral part of these accounts.
31 August 31 August 29 February 2012 2011 2012* Note £'000 £'000 £'000C Share Fund Fixed assetsInvestments designated at fairvalue through profit or loss 4 1,626 1,684 1,691 Current assetsDebtors 73 55 51Cash at bank and on deposit 60 29 104 133 84 155 Creditors: amounts falling duewithin one yearCreditors (50) (51) (48) Due from Ordinary Share Fund - 100 - Net current assets 83 133 107 Non-current liabilitiesIFA trail commission (9) (11) (10) Total net assets 1,700 1,806 1,788 Capital and reservesCalled-up share capital 7 19 19 19Share premium account - 1,803 -Special reserve 1,715 - 1,802Capital reserve - realised 15 (6) (12)Capital reserve - unrealised 14 11 24Revenue reserve (63) (21) (45) Total shareholders' funds 1,700 1,806 1,788 Net asset value per C share 5 88.0p 93.5p 92.6p* These figures are audited.
The notes form an integral part of these accounts.
31 August 31 August 29 February 2012 2011 2012* Note £'000 £'000 £'000Total Fixed assetsInvestments designated at fairvalue through profit or loss 4 5,609 5,944 6,126 Current assetsDebtors 228 357 170Cash at bank and on deposit 281 176 132 509 533 302 Creditors: amounts falling duewithin one yearCreditors (117) (192) (114) Net current assets 392 341 (188) Non-current liabilitiesIFA trail commission (21) (29) (25) Total net assets 5,980 6,256 6,289 Capital and reservesCalled-up share capital 7 66 66 66Share premium account - 2,551 -Special reserve 5,693 3,480 6,028
Capital reserve - realised 167 (50)
(73)
Capital reserve - unrealised 327 379
496Revenue reserve (273) (170) (228) Total shareholders' funds 5,980 6,256 6,289
Net asset value per ordinary share 5 90.3p 93.9p
95.0p Net asset value per C share 5 88.0p 93.5p 92.6p* These figures are audited.
The notes form an integral part of these Accounts.
CONDENSED CASH FLOW STATEMENT
FOR TO THE PERIOD FROM 1 MARCH 2012 TO 31 AUGUST 2012 (UNAUDITED)
6 Months 6 Months 12 Months Ended Ended Ended 31 August 31 August 29 February 2012 2011 2012* Note £'000 £'000 £'000 Ordinary Share Fund Operating activitiesInvestment income received 36 10 24Deposit interest received - 2 2Investment management fees (22) (23) (46)Other cash payments (95) (64) (104)
Cash expended from operations 6 (81) (75)
(124)
Cash flow from investing activitiesPurchase of investments (600) (455) (775)Sale of investments 1,123 605 855 Net cash flow from investingactivities 523 150 80 Net cash flow before financing activities 442 75
(44)
Cash flow from financing activitiesExpenses of share issues - (5) (5) Net cash flow from financingactivities - (5) (5) Equity dividend paid 8 (249) (249) (249) Increase/(decrease) in cash at bankand on deposit 193 (179) (298) 6 Months 5 Months 11 Months Ended Ended Ended 31 August 31 August 29 February 2012 2011 2012* Note £'000 £'000 £'000 C Share Fund Operating activities
Investment income received 3 1
4
Investment management fees (9) -
(12)
Other cash payments (40) (155)
(79)
Cash expended from operations 6 (46) (154)
(87)
Cash flow from investing activitiesPurchase of investments (642) (1,673) (2,594)Sale of investments 731 - 928 Net cash flow from investing activities 89 (1,673) (1,666) Net cash flow before financing activities 43 (1,827)
(1,753)
Cash flow from financing activitiesShares issued - 1,931 1,931Expenses of share issue - (75) (74) Net cash flow from financing activities - 1,856 1,857 Equity dividend paid 8 (87) - - (Decrease)/increase in cash at bankand on deposit (44) 29 104 6 Months 6 Months 12 Months Ended Ended Ended 31 August 31 August 29 February 2012 2011 2012* Note £'000 £'000 £'000 Total Operating activities
Investment income received 39 11
28
Deposit interest received - 2
2
Investment management fees (31) (23)
(58)
Other cash payments (135) (219)
(183)
Cash expended from operations 6 (127) (229)
(211)
Cash flow from investing activitiesPurchase of investments (1,242) (2,128) (3,369)Sale of investments 1,854 605 1,783 Net cash flow from investing activities 612 (1,523) (1,586) Net cash flow before financing activities 485 (1,752)
(1,797)
Cash flow from financing activitiesShares issued - 1,931 1,931Expenses of share issues - (80) (79) Net cash flow from financing activities - 1,851 1,852 Equity dividend paid 8 (336) (249) (249) Increase/(decrease) in cash at bankand on deposit 149 (150) (194)* 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 2012.
In determining the analysis of total income and expenses as between capital return and revenue return, the Directors have followed the guidance contained in the AIC SORP, as revised in 2009, and on the assumption that the Company maintains VCT status.
The Accounts are prepared on the basis of the accounting policies set out in the Annual Report and Accounts for the year ended 29 February 2012.
The financial information contained in this report does not constitute full statutory accounts as defined in Section 434 of the Companies Act 2006. The financial information for the six months to 31 August 2012 and the period to 31 August 2011 has not been audited or reviewed by the Company's Auditors pursuant to the Auditing Practices Board guidance on such reviews.
The information for the year ended 29 February 2012 has been extracted from the latest published Annual Report and Accounts, which have been filed with the Registrar of Companies. The report of the Auditors on those Accounts contained no qualification or statement under Section 498(2) or (3) of the Companies Act 2006.
Going concern
After making enquiries, and having reviewed the portfolio, balance sheet andprojected income and expenditure for the next twelve months, the Directorshave a reasonable expectation that the Company has adequate resources tocontinue in operation for the foreseeable future. The Directors have thereforeadopted the going concern basis in preparing these Accounts.2. Return per Share 6 Months Ended Period Ended 12 Months Ended 31 August 2012 31 August 2011 29 February 2012 Revenue Capital Total Revenue Capital Total Revenue Capital Total pence pence pence pence pence pence pence pence pence Return per ordinary (0.6) 1.2 0.6 (0.8) (2.0) (2.8) (1.5) (0.2) (1.7)share Return per C share (1.0) 0.9 (0.1) (1.1) 0.3 (0.8) (2.3) 0.6 (1.7)Ordinary sharesRevenue return per ordinary share is based on the net revenue loss on ordinaryactivities after taxation of £27,000 (31 August 2011: £37,000; 29 February2012: £71,000) and on 4,738,463 ordinary shares (31 August 2011: 4,738,463; 29February 2012: 4,738,463), being the weighted average number of ordinaryshares in issue during the period.Capital return per ordinary share is based on the net capital gain for theperiod of £54,000 (31 August 2011: £96,000 loss; 29 February 2012: £9,000loss) and on 4,738,463 ordinary shares (31 August 2011: 4,738,463; 29 February2012: 4,738,463), being the weighted average number of ordinary shares inissue during the period.Total return per ordinary share is based on the net gain on ordinaryactivities for the period of £27,000 (31 August 2011: £133,000 loss; 29February 2012: £80,000 loss) and on 4,738,463 ordinary shares (31 August 2011:4,738,463; 29 February 2012: 4,738,463), being the weighted average number ofordinary shares in issue during the period.
C shares
Revenue return per C share is based on the net revenue loss on ordinaryactivities after taxation of £18,000 (31 August 2011: £21,000; 29 February2012: £45,000) and on 1,931,095 C shares (31 August 2011: 1,904,924; 29February 2012: 1,919,142) , 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£17,000 (31 August 2011: £5,000; 29 February 2012: £12,000) and on 1,931,095 Cshares (31 August 2011: 1,904,924; 29 February 2012: 1,919,142), being theweighted average number of C shares in issue during the period.Total return per C share is based on the total loss for the period of £1,000(31 August 2011: £16,000; 29 February 2012 £33,000) and on 1,931,095 C shares(31 August 2011: 1,904,924; 29 February 2012: 1,919,142), 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 share funds. This remains unchanged from the prior period.
4. Investments at Fair Value through Profit or Loss
31 August 31 August 29 February 2012 2011 2012 £'000 £'000 £'000Ordinary Share Fund Investment portfolio summaryInvestments in Structured Products 2,118 2,928 3,156Unquoted investments 1,669 887 1,083Other investments 196 445 196 3,983 4,260 4,435 C Share Fund Investment portfolio summaryInvestments in Structured Products 1,045 861 935Unquoted investments 383 90 183Other investments 198 733 573 1,626 1,684 1,691 Total Investment portfolio summaryInvestments in Structured Products 3,163 3,789 4,091Unquoted investments 2,052 977 1,266Other investments 394 1,178 769 5,609 5,944 6,1265. Net Asset Value per Share 31 August 31 August 29 February 2012 2011 2012 pence pence pence
Net asset value per ordinary share 90.3 93.9 95.0
Net asset value per C share 88.0 93.5 92.6
The basic net asset value per ordinary share is based on net assets of £4,280,000 (31 August 2011: £4,450,000; 29 February 2012: £4,501,000) and on 4,738,463 ordinary shares (31 August 2011: 4,738,463; 29 February 2012: 4,738,463), being the number of ordinary shares in issue at the period end.
The basic net asset value per C share is based on net assets of £1,700,000 (31 August 2011: £1,806,000; 29 February 2012: £1,788,000) and on 1,931,095 C shares (31 August 2011: 1,931,095; 29 February 2012: 1,931,095), being the number of C shares in issue at the period end.
6. Reconciliation of Net Profit/(Loss) before Tax to Cash Expended fromOperating Activities 31 August 31 August 29 February 2012 2011 2012 £'000 £'000 £'000Ordinary Share Fund Profit/(loss) on ordinary activities 27 (133) (80)before taxation(Gains)/losses on investments (71) 78 (26)Interfund receipt - (2) -Income reinvested - - (1)(Increase)/decrease in debtors (36) (85) 95(Decrease)/increase in creditors (1) 67 (112)
Cash expended from operating activities (81) (75) (124)
C Share Fund
Loss on ordinary activities before (1) (16) (33)taxationGains on investments (24) (11) (24)Interfund payment - 2 -Income reinvested (1) - (1)Increase in debtors (22) (155) (51)Increase in creditors 2 26 22
Cash expended from operating activities (46) (154) (87)
Total
Profit/(loss) on ordinary activities 26 (149) (113)before taxation(Gains)/losses on investments (95) 67 (50)Income reinvested (1) - (2)(Increase)/decrease in debtors (58) (140) 44Increase/(decrease) in creditors 1 (7) (90)
Cash expended from operating activities (127) (229) (211)
7. Called-up Share Capital 31 August 2012 Number £'000 Ordinary shares of 1p each 4,738,463 47C shares of 1p each 1,931,095 19 8. Dividends
For the year to 29 February 2012 the Ordinary Share Fund declared a final dividend of 5.25p per ordinary share on 4,738,463 shares amounting to £248,769. The dividend was paid on 31 July 2012 to ordinary shareholders on the register at 15 June 2012.
For the year to 29 February 2012 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 31 July 2012 to C shareholders on the register at 15 June 2012.
9. Related Party Transactions
Investec Structured Products is a related party in respect of its appointmentas an Investment Manager to the Company and is entitled to a performanceincentive fee. Investec Structured Products will receive an arrangement fee of0.75 per cent. of the amount invested in each Structured Product. Thisarrangement fee shall be paid to Investec Structured Products by the issuer ofthe relevant Structured Product. No arrangement fee will be paid to InvestecStructured Products in respect of any decision to invest in Investec-issuedStructured Products. Investec Structured Products has agreed not to earn anannual management fee from the Company.As at 31 August 2012, £nil (31 August 2011: £81,000; 29 February 2012: £nil)was payable to Investec Structured Products in relation to the initial fee of5 per cent. of the gross funds raised pursuant to the original ordinary shareoffer. £22,000 (31 August 2011: £22,000; 29 February 2012: £22,000) waspayable to Investec Structured Products in relation to the initial fee of 5per cent. of the gross funds raised pursuant to the C share offer.In addition, £121,000 (31 August 2011: £230,000; 29 February 2012: £81,000)was owed to the Ordinary Share Fund by Investec Structured Products as clawback of costs in excess of the agreed expenses cap of 3 per cent. £68,000 (31August 2011: £33,000; 29 February 2012: £49,000) was owed to the C Share Fund.Calculus Capital is regarded as a related party in respect of its appointmentas an Investment Manager to the Company. For the period ended 31 August 2012,fees of £31,000 (31 August 2011: £32,000; 29 February 2012: £63,000) werepayable to Calculus Capital, of which £15,000 (31 August 2011: £20,000; 29 February 2012: £15,000) was outstanding (£11,000 by the Ordinary Share Fundand £4,000 by the C Share Fund) as at 31 August 2012. Calculus Capital is alsoentitled to a performance incentive fee.
John Glencross is considered to be a related party due to his position as Chief Executive and a director of Calculus Capital, one of the Company's Investment Managers. He does not receive any remuneration from the Company. He is a director of Terrain Energy Limited, Lime Technology Limited and Human Race Group Limited, companies in which the Company has invested.
Calculus Capital receives a fee from Terrain Energy Limited for the provisionof John Glencross as a director, as well as an annual monitoring fee whichalso covers the provision of certain administrative support services. In theperiod ended 31 August 2012, the amount paid to Calculus Capital which wasattributable to the investment made by the Company was £1,441 (31 August 2011:£4,200; 29 February 2012: £3,542) (excluding VAT).An annual fee is payable from Lime Technology Limited for the provision ofJohn Glencross as a director, as well as an annual monitoring fee. In theperiod ended 31 August 2012, the amount payable to Calculus Capital which wasattributable to the investment made by the Company was £1,228 (31 August 2011:£2,400; 29 February 2012: £3,865) (excluding VAT).
Calculus Capital receives an annual monitoring fee from MicroEnergy Generation Services Limited for the provision of a Calculus Capital employee as a director, which also covers the provision of certain administrative support services. In the period ended 31 August 2012, the amount paid to Calculus Capital which was attributable to the investment made by the Company was £1,286 (31 August 2011: £nil; 29 February 2012: £2,833) (excluding VAT).
In the period ended 31 August 2012, Calculus Capital received an arrangementfee of £7,500 (31 August 2011: £nil; 29 February 2012: £nil) as a result ofthe Company's investment in Secure Electrans Limited.In the period ended 31 August 2012, Calculus Capital received an arrangementfee of £13,500 (31 August 2011: £nil; 29 February 2012 £nil) as a result ofthe Company's investment in Human Race Group Limited. Calculus Capital alsoreceives an annual fee from Human Race Group Limited for the provision of aCalculus Capital employee as a director, as well as an annual monitoring fee.In the period ended 31 August 2012, the amount paid to Calculus Capital whichwas attributable to the investment made by the Company was £514 (31 August2011: £nil; 29 February 2012: £nil) (excluding VAT).Calculus Capital also receives an annual fee from Metropolitan Safe CustodyServices Limited for the provision of a Calculus Capital employee as adirector, as well as an annual monitoring fee. In the period ended 31 August2012, the amount paid to Calculus Capital which was attributable to theinvestment made by the Company was £1,182 (31 August 2011: £nil; 29 February2012: £220) (excluding VAT).
COMPANY INFORMATION
Directors Fund Administrator andMichael O'Higgins (Chairman) Company SecretaryKate Cornish-Bowden Capita Sinclair HendersonJohn Glencross (Trading as Capita FinancialSteven Meeks Group - Specialist Fund Services) Beaufort House 51 New North Road Exeter EX4 4EPRegistered OfficeBeaufort House Auditors51 New North Road Grant Thornton UK LLPExeter EX4 4EP 30 Finsbury SquareTelephone: 01392 477 500 London EC2P 2YU Company Number Solicitors07142153 Martineau No. 1 Colmore SquareStructured Products Investment Birmingham B4 6AAManagerInvestec Structured Products Sponsor and Broker2 Gresham Street Nplus1 Singer Advisory LLPLondon EC2V 7QP One Hanover StreetTelephone: 020 7597 4000 London W1S 1YZWebsite:
www.investecstructuredproducts.com
Registrars
Venture Capital Investments Manager Capita Registrars Calculus Capital Limited
The Registry104 Park Street 34 Beckenham RoadLondon W1K 6NF BeckenhamTelephone: 020 7493 4940 Kent BR3 4TU
Website: www.calculuscapital.com Telephone: 0871 644 0300
(Calls cost 10p per minute plus network extras. Lines are open Monday to Friday 8.30 am to 5.30 pm). A copy of the Investec Structured Products Calculus VCT plcHalf Yearly Report for the six months ended 31 August 2012 can be found on thefollowing websites: www.calculuscapital.com andwww.investecstructuredproducts.com.
For further information, please contact:
Investment Manager to the Structured Products PortfolioInvestec Structured ProductsGary DaleTelephone: 020 7597 4065Investment Manager to the Venture Capital PortfolioCalculus Capital LimitedSusan McDonaldTelephone: 020 7493 4940National Storage Mechanism
A copy of the 2012 Half Yearly Report will be submitted shortly to the National Storage Mechanism ("NSM") and will be available for inspection at the NSM, which is situated at: www.hemscott.com/nsm.do.
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on this announcement (or any other website) are incorporated into, or form part of, this announcement.
XLON