Hygea VCT plc : Update for the quarter ended 30 September 2015 <Origin Href="QuoteRef">HYG.L</Origin>

Seneca Growth Capital VCTAnnouncement

04/12/2015 15:20

For immediate release
                                                                                                                
4 December 2015 
 
 HYGEA VCT PLC 
 
 UPDATE FOR THE QUARTER ENDED 30 SEPTEMBER 2015 
 
 The Board of Hygea vct plc ('the company') announces that at 30th September
2015 the unaudited Net Asset Value per Ordinary Share ('NAV') was 75.3p (30th
June 2015: 85.7p) principally due to the reduction in the valuation of its AIM
listed portfolio. The Board also notes the subsequent further reduction in the
bid prices of Scancell plc and EKF Diagnostics Holdings plc shares since that
date and which were 12.25p (30th September: 23.0p) and 10.50p (30th September:
20.0p) as at close of business on 1st December 2015 respectively. Adjusting
only for the decrease in the value of these two investments, the NAV at 2nd
December 2015, based on those bid prices (net of performance fee), would have
been 60.1p. 
 
 In arriving at this NAV the Board has not reviewed the valuation of the
unquoted portfolio but is not aware of any significant facts which would have
had a material influence to those valuations. The unquoted portfolio will be
reviewed in detail at the year-end. 
 
 At 30th September 2015 the company had used £78,842 of its overdraft
facility, which has subsequently been increased from £100,000 to £200,000. 
 
 Since 30th September 2015, the company has invested a further £48,774 into
Fuel 3D Technologies Limited. 
 
 As detailed in the half year announcement, the Board is reviewing the cost
base of the company and the performance fee arrangements. To date the Board
has agreed that the salaries of all Directors  be reduced to £12,000 per
annum from £20,000 and £17,500 for the Chairman and Non-Executive Directors
respectively with effect from 1st July 2015. This reduction will reduce the
annual cost for Directors' salaries by £19,000 (plus employer's national
insurance contributions). 
 
 The Board has revised the performance fee arrangements from those approved at
the 2014 Annual General Meeting and set out in the 2015 Annual Report. The new
arrangements have frozen the sum due to those Directors serving up to 7th
October 2015 at £702,000 (the accrued liability as disclosed in the 2014
audited accounts) and which will only be payable once shareholders have
received 80p in dividends. This liability will be paid at the rate of 20% of
subsequent dividends until the liability of £702,000 has been satisfied, and
is in keeping with the original approved arrangement.  Following the payment
of this liability the future performance fee will be payable at the reduced
rate of 10% of dividends payable above the audited total return at 31st
December 2014, with the outstanding balance subject to a hurdle rate of 6 per
cent. Fuller details will be included in the 2015 Annual Report and Accounts,
which will be published in April 2016. The Board is advised that these changes
do not require formal shareholder approval since there is no consideration or
benefit to any related parties. However the Board intends to seek approval to
this revision to the Directors' Remuneration policy at the 2016 Annual General
Meeting. 
 
 The Board announces that, following John Hustler's appointment as Chairman, 
Richard Roth has been appointed to the company's Audit Committee as Chairman.
The Audit Committee now consists of Richard Roth, Charles Breese and John
Hustler. 
 
 Enquiries:      John Hustler, Chairman on 01428 727985 
 
                         Roland Cornish, Beaumont
Cornish Limited on 020 7628 3396 
 

 This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf
of NASDAQ OMX Corporate Solutions clients. 
 The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein. 
 Source: Hygea VCT plc via Globenewswire 
 HUG#1971546