REG-New Century AIM VCT Plc Half-year Report
14/11/2022 07:00
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Half-year Report
New Century AIM VCT plc
For the six months to 31 August 2022
Chairman’s Statement
The past six months has been a very difficult one for New Century, not just
from a Stock Market point of view, but also with dealing with the many
obstacles we had to face.
I would like to first apologise for the time it has taken to commence the
return of your funds. The previous Board and our investment managers were
opposed to the winding up of your fund. Instead of supporting the wish of the
majority of the shareholders, they did their utmost to prevent such moves.
John Brice, the fund’s former chairman with the support of myself put
forward a motion to remove the Board with the exception of myself. The
opposition to the former Board was so overwhelming that all the directors,
with the exception of myself felt they were directly opposed to the wishes of
the majority of the shareholders and decided to resign from the Board. John
Brice and his colleague, Simon Bragg were appointed to the Board with a view
to returning funds to the shareholders.
With regard to winding up the fund, we took legal advice as to the best way to
achieve this. It was decided that the simplest and cheapest way to carry this
out would be to wind the fund down. This required a legal document to be
prepared by our lawyers which had to be approved by the FCA and then be voted
upon by the shareholders. A resounding 100% of the shareholders who voted,
voted in favour of the winding down of the fund. Unfortunately, by the time
the approvals were met, we were already facing a bear market in the AIM
market.
We are indebted to Simon Bragg who helped enormously in the legal process and
in the preparation of the accounts, all without any remuneration. Having
successfully helped us prepare the way for winding down the fund, Simon
decided to step down from the Board to concentrate on his other interests.
Our previous auditors decided to withdraw from the audit of vct’s and we had
to spend time getting quotes for a replacement auditor. At the same time,
Oberon decided to terminate the bookkeeping facility that they provided to us.
We have now successfully found new auditors and bookkeepers.
Oberon also decided that they were no longer going to provide us with the
facility to make announcements for us to the London Stock Exchange. To set up
a new facility, New Century had to first set up its own website incorporating
my personal email linked to it. Although that involved much work, I’m
pleased to say that we managed to set this up for less than £15.
For 17 years, M D Barnard & Co Ltd and more laterally, Oberon had settled
the few invoices that we had to pay from any cash we held with them. Oberon
decided that they were no longer going to pay third parties on our behalf.
This meant that we had to obtain our own bank account. I imagined that this
would be a relatively simple task but having tried around 25 banks, we have
been unable to find a replacement bank. Initially, we found that one obstacle
was that John Brice was a non UK resident and this proved to be a deterrent to
several banks taking us on. To improve our chances of securing a current
account with a bank, John Brice agreed to step down. We would like to thank
him for his contribution which was also without remuneration. Until we secure
a bank account we are unable to pay a dividend. I am personally covering any
of the fund’s invoices and will be refunded when we eventually obtain a bank
account.
John has been replaced by Spencer Crooks who was one of the founders of
Winterflood Securities who are specialist dealers in the AIM market. His
knowledge of this market is proving to be extremely helpful with regard to the
winding down of the fund.
We have taken a policy decision to initially dispose of the more risky
investments. We are particularly concerned about loss making companies that
have low cash reserves and which are likely to have to come to the market for
fresh funds. With interest rates rising and confidence in the market waning,
we believe it will become more and more difficult for companies to raise fresh
cash. This could lead to new shares being issued at a large discount to their
prevailing share prices and in the worst cases, could lead to some of those
companies being unable to survive. We have avoided quick fire sales of our
holdings but instead been careful with the way we have conducted our selling
with a view to trying to maximise the proceeds from sales. Some of the
holdings have been quite large and it has not always been easy to liquidate
them in one go. Nevertheless, we have successfully sold all the holdings where
we have had concerns. Since the beginning of the company's financial year,
this has involved the complete exit from fifty holdings. With the recent sales
the fund is now 46 % liquid and allows us to pay back a dividend of 28p per
share. As soon as we can obtain a bank account, we plan to pay the maximum
dividend that we can. Following these sales, the fund is now comprised of much
higher quality stocks which are better placed to withstand any economic shocks
and to participate from the eventual recovery.
Michael Barnard
8 November 2022
Unaudited Balance Sheet
Interim Accounts Final Accounts Interim Accounts
as at 31 August 2022 as at 28 February 2022 * as at 31 August 2021
£’000 £’000 £’000 £’000 £’000 £’000
Fixed Assets
Investments 4,810 7,324 9,212
Current Assets
Debtors 472 411 369
472 411 369
Current Liabilities
Creditors: amounts due
Within one year (14) (32) (24)
Net Assets 5,268 7,703 9,557
Capital and Reserves
Share capital 786 786 786
Share premium 682 682 682
Capital redemption reserve 400 400 400
Capital reserve – realised 1,831 1,810 1.272
Special distributable reserve 2,773 3.638 -
Capital reserve – unrealised (1,341) 248 6,246
Revenue reserve 137 139 171
5,268 7,703 9,557
Net Asset Value per share 67p 98p 121.6p
* Audited
Unaudited Statement of Comprehensive Income
(incorporating the revenue account)
6 month period ended 31 August 2022 Year to 28 February 2022* 6 month period ended 31 August 2021
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains/(losses) on investments
Realised - (45) (45) - 448 448 - 114 114
Unrealised - (1,500) (1,500) - (236) (236) - 1,379 1,379
Income 32 - 32 69 - 69 34 - 34
Investment management fees (8) (23) (31) (22) (66) (88) (12) (36) (48)
Other expenses (26) - (26) (73) - (73) (16) - (16)
Return on ordinary activities (2) (1,568) (1,570) (26) 146 120 6 1,457 1,463
Tax on ordinary activities - - - - - - - - -
Return on ordinary activities
after taxation (2) (1,568) (1,570) (26) 146 120 6 1,457 1,463
Return per ordinary share in
pence
(0.02) (19.95) (19.97) (0.33) 1.86 1.53 0.08 18.53 18.61
*Audited
All revenue and capital items in the above statement derive from continuing
operations in the current six month period. No operations were acquired or
discontinued in the current period.
Other than that shown above, the company had no recognised gains or losses.
Accordingly, the above represents the total comprehensive income for the
period. The weighted average number of shares in issue during the period was
7,860,937.
Unaudited Consolidated Statement of Changes in Equity
Share Share Capital Capital Special Capital Revenue Total
Capital Premium Redemption Realised Distributable Unrealised Reserve
Account Account Reserve Reserve
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
As at 1 March 2022 786 682 400 1,810 3,638 248 139 7,703
Realised losses this period - - - (45) - - - (45)
Unrealised decrease in value - - - - - (1,500) - (1,500)
Transfer of unrealised valuation gain to - - - 89 - (89) - -
realised reserves on disposal of
investments
Net revenue before tax - - - - - - (2) (2)
Capital element of investment management - - - (23) - - - (23)
fee
Dividends paid - - - - (865) - - (865)
At 31 August 2022 786 682 400 1,831 2,773 (1,341) 137 5,268
Share Share Capital Capital Special Capital Revenue Total
Capital Premium Redemption Realised Distributable Unrealised Reserve
Account Account Reserve Reserve
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
As at 1 March 2021 786 682 400 1,143 0 4918 165 8,094
Realised gains this period - - - 448 - - - 448
Unrealised decrease in value - - - (236) - (236)
Transfer of unrealised valuation gain to - - - 285 - (285) - -
realised reserves on disposal of
investments
Net revenue before tax - - - - - - (26) (26)
Capital element of investment management - - - (66) - - - (66)
fee
Inter reserve transfer - - - - 4,149 (4,149) - -
Dividends paid - - - - (511) - - (511)
At 28 February 2022* 786 682 400 1,810 3,638 248 139 7,703
*Audited
Note: Some columns on this page may not cast because of rounding differences.
Unaudited Consolidated Statement of Changes in Equity (continued)
Share Share Capital Capital Capital Revenue Total
Capital Premium Redemption Realised Unrealised Reserve
Account Account Reserve
£’000 £’000 £’000 £’000 £’000 £’000 £’000
As at 1 March 2021 786 682 400 1,143 4,918 165 8,094
Realised gains/losses this period - - - 114 - - 114
Unrealised decrease in value - - - 1,379 - 1,379
Transfer of unrealised valuation gain to realised - - - 50 (50) - -
reserves on disposal of investments
Net revenue before tax - - - - - 6 6
Capital element of investment management fee - - - (36) - - (36)
Inter reserve transfer - - - - - - -
At 31 August 2021 786 682 400 1,272 6,246 171 6,557
Note: Some columns on this page may not cast because of rounding differences.
Unaudited Cash Flow Statement
6 month period ended 6 month period ended
31 August 2022 Year to 28 February 2022 * 31 August 2021
£’000 £’000 £’000 £’000 £’000 £’000
Net cash used in operating activities (18) (217) (73)
Cash flows from investing activities
Investment income 32 69 34
Net cash from investing activities 32 69 34
Cash flows from investing activities
Sale of investments 1,159 1,278 529
Purchase of investments (192) (386) (244)
Dividends paid (865) (511) -
Net cash generated from financing activities 102 381 285
Net increase/(decrease} in cash and cash equivalents 116 233 246
Cash and cash equivalents at beginning of period 356 123 123
Cash and cash equivalents at end of period 472 356 369
* Audited
Security Cost Valuation % %
31 August 2022 Cost Valuation
5,709,736 4,669,233 89.75 90.38
Qualifying Investments
Non-qualifying Investments 296,011 140,833 4.65 2.73
6,005,747 4,810,065 94.4 93.11
Uninvested funds 356,250 356,250 5.6 6.89
6,361,997 5,166,315 100.00 100.00
Qualifying Investments
AIM Quoted
AFC Energy 50,254 85,875 0.79 1.66
Angle plc 103,016 111,015 1.62 2.15
Anglo African Oil & Gas plc 45,229 0 0.71 0.00
Arecor Therapeutics 12,816 15,231 0.20 0.29
Audioboom Group plc 121,167 331,542 1.90 6.42
Bango plc 7,563 34,125 0.12 0.66
Belluscara 100,506 171,111 1.58 3.31
Belvoir Lettings plc 23,320 44,000 0.37 0.85
Bigblu Broadband plc 140,398 156,934 2.21 3.04
Bilby/Kinovo plc 156,673 95,413 2.46 1.85
Blackbird plc 96,735 375,375 1.52 7.27
Brighton Pier Group plc 50,253 23,063 0.79 0.45
C4X Discovery Holding plc 60,354 97,681 0.95 1.89
Clean Power Hydrogen 50,253 48,778 0.79 0.94
Cloudbuy plc 58,483 228 0.92 0.00
Concepta plc/Myhealthchecked 75,379 112,219 1.18 2.17
Myhealthchecked 25,128 114,014 0.39 2.21
Coral Products plc 118,095 111,667 1.86 2.16
Cyanconnode Holdings plc 376,755 90,793 5.92 1.76
DCD Media plc 562,800 0 8.85 0.00
Destiny Pharma plc 175,885 128,808 2.76 2.49
Diaceutics plc 10,314 12,285 0.16 0.24
DP Poland plc 20,113 10,472 0.32 0.20
Ecsc Group 20,104 15,018 0.32 0.29
Entertainment Ai/now SEEEN plc 150,754 30,000 2.37 0.58
Escape Hunt plc/now XP Factory 31,006 2,616 0.49 0.05
Falanx Group Ltd 145,939 33,911 2.29 0.66
Feedback plc 100,508 52,048 1.58 1.01
Gear4Music Holdings lc 27,121 27,277 0.43 0.53
Gfinity plc 116,218 43,065 1.83 0.83
Immotion Group plc 130,661 63,363 2.05 1.23
Inspired Energy plc 43,391 157,705 0.68 3.05
Intelligent Ultrasound Group plc 170,320 156,118 2.68 3.02
K3 Business Technology Group plc 90,360 129,870 1.42 2.51
Keywords Studios plc 5,563 111,780 0.09 2.16
Libertine Holdings 75,378 76,856 1.18 1.49
Lightwaverf plc 45,233 2,647 0.71 0.05
Location Sciences Group plc 132,946 9,479 2.09 0.18
M.Winkworth plc 64,320 144,000 1.01 2.79
Marechale Capital plc 133,828 34,980 2.10 0.68
Maxcyte Inc 25,128 161,249 0.39 3.12
Microsaic Components 154,711 2,040 2.43 0.04
N4 Pharma plc 60,304 9,600 0.95 0.19
Pelatro plc 25,128 9,200 0.39 0.18
PHSC plc 169,845 67,600 2.67 1.31
Property Franchise Group plc 156,431 386,446 2.46 7.48
Quixant plc 6,935 21,750 0.11 0.42
Scholium Group plc 50,253 20,000 0.79 0.39
Scancell Holdings plc 54,877 36,775 0.86 0.71
Scancell Holdings plc 75,741 71,906 1.19 1.39
Solid State plc 40,134 181,500 0.63 3.51
SRT Marine Systems plc 4,523 7,500 0.07 0.15
Sysgroup plc 99,177 41,113 1.56 0.80
Touchstar plc 281,400 87,500 4.42 1.69
Trellus Health 25,128 5,150 0.39 0.10
Tristel plc 14,306 118,746 0.22 2.30
Vianet Group plc 40,175 18,363 0.63 0.36
Verici Dx 101,505 72,347 1.60 1.40
Yourgene Health plc 69,349 20,700 1.09 0.40
Yu Group plc 27,893 25,500 0.44 0.49
5,408,083 4,626,343 85.01 89.55
AQSE listed
Sulnox Grp 35,279 19,890 0.55 0.38
Truspine 50,253 23,000 0.79 0.45
85,532 42,890 1.34 0.83
Unlisted Investments
Invocas Group plc 100,400 0 1.58 0.00
Outsourcery plc 45,027 0 0.71 0.00
Optare plc 50,753 0 0.80 0.00
Syqic plc 19,943 0 0.31 0.00
216,122 0 3.40 0.00
Total Qualifying Investments 5,709,737 4,669,233 89.75
90.38
Non Qualifying Investments
AIM Quoted
Audioboom Group plc 1,163 678 0.02 0.01
Bango plc 92 195 0.00 0.00
Bango plc 199 195 0.00 0.00
Cyanconnode Holdings plc 131 16 0.00 0.00
Driver Group plc 8,992 3,300 0.14 0.06
Gateley Holdings plc 4,876 9,600 0.08 0.19
K3 Business Technology Group plc 131 130 0.00 0.00
Rotala plc 60,796 54,945 0.96 1.06
Tristel plc 60 324 0.00 0.01
76,439 69,383 1.20 1.35
UK LISTED
Aviva plv 5,344 5,075 0.08 0.10
Investec plc – preference shares 107,376 66,375 1.69 1.28
112,720 71,450 1.77 1.38
Unlisted Investments
China Food Company plc 65,969 0 1.04 0.00
Gable Holdings Inc 12,112 0 0.19 0.00
Mar City plc 10,053 0 0.16 0.00
Sorbic International plc 18,717 0 0.29 0.00
106,851 0 1.68 0.00
Total Non-qualifying Investments 296,011 140,833 4.65 2.73
Notes to the Accounts
This interim financial information and the unaudited interim accounts for the
six months to 31 August 2022 from which it has been extracted, are the
responsibility of the directors and were approved by them on 8 November 2022,
do not constitute statutory accounts within the meaning of Section 434 of the
Companies Act 2006 and have not been delivered to the Registrar of Companies.
The Company is an investment company as defined in Section 833 of the
Companies Act 2006. The unaudited interim accounts have been prepared in
accordance with the Financial Reporting Council’s (FRC) Financial Reporting
Standard 104 Interim Financial Reporting (March 2018) and with the Statement
of Recommended Practice for Investment Companies re-issued by the Association
of Investment Companies in November 2014 and updated in April 2021.
The unaudited interim accounts have been prepared using accounting policies
that the company applied in the accounts for the year ending 28 February 2022,
incorporating FRS 102 The Financial Reporting Standard applicable in the UK
and Republic of Ireland. The company considers these accounting policies will
be used in the accounts for the year ending 28 February 2022.
Listed, AIM or AQSE Markets-traded investments are stated at market value,
which is based upon market bid prices at the balance sheet date. These would
all meet tier 1 of the fair value hierarchy.
7,860,937 Ordinary Shares of 10 pence each were in issue throughout the period
under review.
The net asset value per share, using bid-prices to value the fund’s
investment portfolio, at 31 August 2022 was 67p (at 28 February 2022: 98p; 31
August 2021: 121.6p).
On the 22 September 2021 a dividend of 9p per share was paid to shareholders.
There have not been any significant events since the balance sheet date.
New Century AIM VCT plc is managed by Oberon Investments Limited (‘OIL’).
Under the terms of the management agreement OIL is entitled to a fee
(exclusive of VAT) equal to 1% per annum of the net assets of the company.
During the period the management fee was £48k (the year ended 28 February
2022: £65k, the period ended 31 August 2021:
£27k).
Bearing in mind that the assets of the Company consist mainly of marketable
securities, the directors are of the opinion that at the time of approving
this interim financial information, the company has adequate resources to
continue in operational existence for the foreseeable future. For this reason,
they continue to adopt the going concern basis in preparing this interim
financial information.
Copies of the Interim Report to Shareholders have been sent to shareholders
and are available at the Company’s Registered Office: Tricor Secretaries
Ltd, 4th Floor, 50 Mark Lane, London EC3R 7QR.
Directors, Investment Managers and Advisors
Directors, Investment Manager and Advisors
Directors
Michael David Barnard (Chairman)
Spencer Crooks (appointed 16 August 2022)
Simon Bragg (appointed 10 February 2022 resigned 30 June 2022)
John Brice (appointed 10 February 2022 resigned 16 August 2022)
Secretary
Tricor Secretaries Ltd
and registered office 4th Floor, 50 Mark Lane
London EC3R 7QR
Investment Manager and Broker
Oberon Investments Limited
First Floor
12 Hornsby Square
Southfields Business Park
Basildon
Essex SS15 6SD
Registrars
Neville Registrars Limited
Neville House
Steelpark Road
Halesowen
West Midlands B62 8HD
Auditor
Hazlewoods
Windsor House
Bayshill Road
Cheltenham GL50 3AT
Solicitors
Douglas Minto
Broadgate Tower
20 Primrose Street
London EC2A 2EW
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