Unicorn Asset Management Regulatory News (UAV)

Unicorn AIM VCT plc ("the Company")

Interim Management Statement 

For the period from 1 April 2019 to 30 June 2019

Introduction

This voluntary Interim Management Statement (IMS) covers the three month period ended 30 June 2019, together with relevant information up to the date of publication. 

Investment Objective

The Company's objective is to provide Shareholders with an attractive return from a diversified portfolio of investments, predominantly in the shares of AIM quoted companies, by maintaining a steady flow of dividend distributions to Shareholders from the income as well as capital gains generated by the portfolio.

It is also the objective that the Company should continue to qualify as a Venture Capital Trust, so that Shareholders benefit from the taxation advantages that this brings. To achieve this at least 70% (80% for accounting periods commencing after 5 April 2019) of the Company's total assets are to be invested in qualifying investments of which 70% by VCT value (30% in respect of investments made before 6 April 2018 from funds raised before 6 April 2011) must be in 'eligible shares' which carry no preferential rights (save as permitted under VCT rules) to dividends or return of capital and no rights to redemption.

Performance

Despite political and economic uncertainty, the three month period under review has been positive for UK equity markets. During the quarter, the FTSE 100 Index generated a total return of 3.3%, the FTSE 250 Index increased in value by 2.9%, while the FTSE AIM All-Share Index delivered a more modest total return of 0.8%.

The Company experienced a strong quarter, generating an increase in Net Asset Value of 14.1%. The period was notable for an absence of profit warnings, combined with healthy share price recovery from a significant number of the larger quoted company holdings in the portfolio. In addition, a review of the Fair Value of the unquoted investments held within the portfolio was conducted at the period end. The review resulted in meaningful downward adjustments in the carrying value of two of the unquoted investments, while significant uplifts in carrying value were merited for two others. Following these revaluations, the combined carrying value of the investments in unquoted businesses accounts for 13.4% of total asset value.

Of the 77 VCT qualifying investments held in the portfolio, the majority recorded share price gains during the period under review. In aggregate, the unrealised capital gains from the ten largest contributors to performance amounted to over £26.5 million during the quarter. By contrast, the total unrealised capital losses generated by the ten poorest performing investments amounted to c. £5.6 million over the same time period.

As a consequence of the factors described above, Net Asset Value per share increased from 144.4 pence at the start of the period to 164.7 pence as at 30 June 2019, an increase of 14.1%. 

Material Transactions

During the period under review, one follow-on VCT qualifying investment was made, at a total cost of £766,000. In addition, a total of £6.3 million was raised from the disposal two non-qualifying holdings, realising capital gains of c. £290,000.

Top Ten VCT Qualifying Holdings as at 30 June 2019

Share Buy-Backs

During the period, the Company bought back 1,058,436 of its own Ordinary Shares for cancellation, at an average price of 133.2 pence per share. As at 30 June 2019, there were 132,066,383 Ordinary Shares in issue.

Dividends

As previously advised, the Board declared an interim dividend of 3.0 pence per share in respect of the Company's half-year ended 31 March 2019. This interim dividend will be paid on 9 August 2019 to Shareholders who were on the register on 19 July 2019.

Material Events

On 10 June 2019, the Board of Unicorn AIM VCT was pleased to announce the appointment of Tim Woodcock as a Director of the Company. Other than this announcement there were no material events during the period from 1 April 2019 to 30 June 2019.

Chris Hutchinson

Unicorn Asset Management

Investment Manager

24 July 2019