Triple Point Ve Regulatory News (TPV)

TP70 VCT plc

Interim Results

The directors of TP70 VCT plc are pleased to announce its Interim results for the six months to 31 August 2012.

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

Financial Summary

TP70 VCT plc ("the Company") is a Venture Capital Trust ("VCT"). The investment manager is Triple Point Investment Management LLP ("TPIM"). The Company was launched in January 2007 and raised £30.6 million (net of expenses) through an offer for subscription.

Chairman's Statement

I am writing to you to present the unaudited Interim Financial Report for TP70 VCT plc ("the Company") for the 6 months ended 31 August 2012.

30 April 2012 marked the end of the Company's five year VCT holding period. In line with its investment strategy for a rapid exit after five years, the Company commenced realisation of investments and the return of funds to shareholders. As part of this plan, the Company halved its exposure to GAM Diversity with effect from 30 September 2011 and terminated the remaining exposure on 30 March 2012.

Since the year end, £12.3 million of unquoted investments have been realised. Of this, £10.8 million came from the realisation of the Company's investments in companies providing digital projection services to the Odeon Cinema chain. There have also been realisations of £0.4 million from a solar company and £1.1 million from the satellite capacity trading companies.

These transactions, combined with the termination of the GAM Diversity exposure, enabled the Company to pay dividends of 52.4p per share on 25 May 2012 and 3.59p per share on 21 September 2012.

The Company's remaining investments in unquoted companies are estimated to have a realisable value of some £5.3million. Exit routes for these investments have been identified and negotiations to conclude those realisations are progressing.

After the realisation of the remaining investments and further distributions, the Board's intention is to bring forward resolutions to place the Company into members' voluntary liquidation, which will require shareholders' approval. Thereafter it is expected that any remaining funds would be returned to shareholders by way of capital distribution by the Liquidators.

Further details of the ongoing portfolio realisation process are in the Investment Manager's Review.

Results

It is the Directors' present intention that the Company should go into members' voluntary liquidation as part of the realisation process. Therefore the Financial Statements have not been prepared on a going concern basis, but instead have been drawn up on a break-up basis, estimating the values likely to be realised, net of the anticipated costs of realisation and likely costs of liquidation. Note the comparative figures at 29 February 2012 were also presented on a break-up basis. The comparative figures at 31 August 2011, which were presented on the going concern basis, have not been restated to break-up basis.

As at 29 February 2012 the net asset value per share stood at 70.97p. During the six months under review the Company made a profit of 0.91p per share and paid a dividend of 52.4p on 25 May 2012. The resulting net asset value therefore stood at 19.48p at 31 August 2012.

Risks

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

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

·; failure to maintain approval as a qualifying VCT;

·; failure to realise the remaining unquoted investments;

·; failure to return remaining funds to shareholders.

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

Outlook

As noted above, the Company expects to make further distributions as the realisation programme continues and we will keep shareholders informed about the Company's progress.

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

Michael Sherry

Chairman

18 October 2012

Investment Manager's Review

At the period end the Company held 81% of its net assets in qualifying and non-qualifying unquoted investments. These investments are in 13 companies across four sectors; cinema digitisation, satellite capacity trading and electricity generation from solar PV and anaerobic digestion.

As the Company's five year anniversary was passed on the 30 April 2012, the priority has been to arrange an orderly disposal of these investments in order to enable the Company to distribute the proceeds to shareholders.

Investment Realisation Programme

At the time of writing, £12.3 million has been divested from the qualifying investment portfolio. TPIM on behalf of the Company is currently in advanced negotiations to conclude the realisation of the remaining investments.

It should be noted that whilst negotiations are well advanced and the values shown in the accounts reflect the expected amount to be received from the completion of the realisation programme, the actual amounts received could be lower.

Realisations to Date

During the period, the Company realised part of its holdings in six companies that deploy, maintain and operate digital equipment in cinemas in the UK and Continental Europe. These divestments have raised a total of £10.8 million to date with further proceeds still to be realised. Further realisations of £0.4 million have been received from companies that own solar PV panels installed on residential properties and £1.1 million from companies which trade in and supply broadband transmission capacity.

Sector Analysis

The make up of the portfolio of unquoted investments can be analysed as follows:

VCT Portfolio Review

Solar PV

The investments in companies that own roof-mounted residential solar PV panels continue to provide steady, yet strong, cash flows. Over the past six months, the Government has announced further changes to the Feed-in Tariff regime for solar. However, as the Feed-in Tariff is a 'grandfathered' scheme, all existing solar installations, including those in which your Company has invested, remain unaffected.

Anaerobic Digestion

Anaerobic Digestion (AD) is an established technology used to generate electricity from the production of biogas through the biological treatment of organic materials using naturally occurring organisms. Within the portfolio are two investments in small enterprises constructing plants to generate electricity from farm-based AD. The first of the two projects has been energised, connected to the grid and is building up to full electricity output. The equipment used by these AD businesses is supplied by one of Europe's leading suppliers, EnviTec Biogas.

Satellite Capacity

The companies traded in broadband transmission capacity on HYLAS 1, a satellite that uses the latest technology to deliver high-speed, two-way data services across Europe. These companies performed less well than expected, partly due to delays in the launch of the satellite (which had the effect of reducing and delaying their ability to sell capacity) and partly due to weaker overall demand for such capacity. During the period the companies disposed of their remaining capacity and as a result ceased to trade and are no longer VCT qualifying investments.

Cinema Digitisation

The businesses in the portfolio that deploy, maintain and operate digital equipment in cinemas in the UK and Continental Europe continue to perform in line with their objectives. Digital cinema projection conversion is paid for under the globally recognised Virtual Print Fee model, through which Film Studios pay for the cost of the deployment over a number of years. The majority of the revenues come from the six major investment grade Hollywood Studios. Film booking rates are significantly ahead of the base line projections which has built further headroom into the project. Looking ahead, seven of the top ten films of 2012 are expected in the second half of the year including Skyfall, the new Bond film, and Hobbit.

Outlook

As detailed above, progress has been made in the realisation of the investment portfolio, in order to fulfil the undertaking of returning funds to shareholders as soon as practicable following the end of the five year VCT holding period on 30 April 2012.

Claire Ainsworth

Managing Partner

for Triple Point Investment Management LLP

18 October 2012

 Investment Portfolio

Directors' Responsibility Statement

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

In preparing the Interim Financial Report for the 6 month period to 31 August 2012, the Directors confirm that to the best of their knowledge:

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

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

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

d) the Interim Financial Report includes a fair review of related party transactions and changes therein. There are no related party transactions other than those detailed in note 13; and

e) The Directors believe that the Company has sufficient financial resources to complete the process of realisation.

Following completion of shareholders' five year holding period, steps have been taken to realise the Company's investments and initial distributions were made on 25 May 2012 and 21 September 2012. After the realisation of the remaining investments and further distributions have been made, the Board will propose resolutions to place the Company into members' voluntary liquidation which will require shareholders' approval. Thereafter all further funds will be returned to shareholders by way of capital distribution by the Liquidators. In the circumstances this Interim Financial Report has been prepared on a break-up basis taking into account the expected costs of the Company's liquidation.

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

Michael Sherry

Chairman

18 October 2012

Statement of Comprehensive Income

The total column of this statement is the Statement of Comprehensive Income of the Company prepared in accordance with International Financial Reporting Standards (IFRS). The supplementary revenue return and capital columns have been prepared in accordance with the Association of Investment Companies Statement of Recommended Practice (AIC SORP).

All revenue and capital items in the above statement derive from continuing operations. This Statement of Comprehensive Income includes all recognised gains and losses.

The accompanying notes are an integral part of this statement.

Balance Sheet

The accompanying notes are an integral part of this statement.

Statement of Changes in Shareholders' Equity

The capital reserve is not distributable. The special distributable reserve was created on court cancellation of the share premium account. The revenue and special distributable reserve are distributable by way of dividend.

The accompanying notes are an integral part of this statement.

Statement of Cash Flows

The accompanying notes are an integral part of this statement.

Notes to the Unaudited Interim Financial Report

1. Corporate information

The Interim Financial Report of the Company for the 6 months ended 31 August 2012 was authorised for issue in accordance with a resolution of the Directors on 18 October 2012.

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

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

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

The principal activity of the Company is investment. The Company's investment strategy was to offer combined exposure to GAM Diversity (fund of hedge funds) and venture capital investments focused on companies with contractual revenues from financially secure counterparties.

2. Basis of preparation and accounting policies

Basis of preparation

The Interim Financial Report of the Company for the 6 months ended 31 August 2012 has been prepared in accordance with IAS 34: Interim Financial Reporting. It does not include all of the information required for full Financial Statements and should be read in conjunction with the Financial Statements for the year ended 29 February 2012.

Estimates

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

3. Segmental reporting

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

4. Investment income

5. Investment management and administration fees

TPIM provides investment management and administration services to the Company under an Investment Management Agreement effective 5 April 2007. The agreement runs for a period of 5 years and may be terminated at any time thereafter by not less than twelve months' notice given by either party. The agreement provides for an administration and investment management fee of 1.75% per annum of net assets calculated and payable quarterly in arrears. With effect from 1 April 2012 only the administration element of the combined fee is payable, whilst TPIM is due 1% of distributions to shareholders. Should such notice be given, the Investment Manager would perform its duties under the Investment Management Agreement and receive its fee during the notice period.

6. Directors' remuneration

7. Taxation

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

8. Profit per share

The profit per share is based on a profit from ordinary activities after tax of £292,000 and on the number of shares in issue during the period of 31,992,471

9. Cash and cash equivalents

Cash and cash equivalents comprise deposits with HSBC Bank plc.

10. Share capital

11. Net asset value per share

The calculation of net asset value per share is based on net assets of £6,232,000 divided by the 31,992,471 shares in issue.

12. Commitments and contingencies

The Company has no commitments or contingent liabilities.

13. Related party transactions

Michael Sherry, Chairman of the Company, was an equity Member of Triple Point LLP (TPLLP). TPLLP in turn has a controlling interest in Triple Point Investment Management LLP (TPIM). TPIM received £45,527 for the 6 month period for providing management and administrative services to the Company. At 31 August 2012 the Company owed TPIM £3,874 for these management and administration services. In addition a provision has been made for a 1% fee payable to TPIM equal to £229,000 on distributions made or expected to be made to shareholders after 1 April 2012.

14. Post balance sheet events

Other than those detailed in the Chairman's Statement there were no post balance sheet events.