RNS Number : 6589O
Triple Point Income VCT PLC
08 November 2016
Triple Point Income VCT plc
Interim Results
The Directors of Triple Point Income VCT plc are pleased to announce its Interim results for the six months to 30 September 2016.
For further information please contact Ben Beaton or Belinda Thomas at Triple Point Investment Management LLP on 020 7201 8989. The Interim report will be available in full at www.triplepoint.co.uk
Interim Financial Report - Financial Summary
Unaudited
Audited
Unaudited
6 months ended 30 September 2016
Year ended 31 March 2016
6 months ended 30 September 2015
Ord. Shares
A Shares
C Shares
D Shares
Total
Ord. Shares
A Shares
C Shares
D Shares
Total
Ord. Shares
A Shares
C Shares
D Shares
Total
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
Net assets
13,259
2,145
13,625
14,124
43,153
13,175
2,118
14,118
13,875
43,286
16,242
2,115
13,597
13,681
45,635
Net asset value per share
68.13p
41.79p
101.37p
103.08p
n/a
67.69p
41.28p
105.03p
101.26p
n/a
83.40p
41.22p
101.16p
99.85p
n/a
Net profit/(loss) before tax
102
32
225
299
658
729
(39)
807
377
1,874
568
(43)
235
135
895
Earnings/(loss) per share
0.44p
0.51p
1.34p
1.82p
n/a
3.64p
(0.72p)
5.27p
2.19p
n/a
2.91p
(0.79p)
1.40p
0.75p
n/a
Cumulative return to shareholders (p)
Net asset value per share
68.13
41.79
101.37
103.08
Dividends paid
25.56
56.20
5.00
-
Net asset value plus dividends paid
93.69
97.99
106.37
103.08
Triple Point Income VCT plc ("the Company") is a Venture Capital Trust ("VCT"). The Investment Manager is Triple Point Investment Management LLP ("TPIM").
Ordinary Shares: these are held by the shareholders that were in the Company prior to the merger on 21 November 2012; and by former TP70 2008(II) VCT plc shareholders; and shares that were held by the B Ordinary Shareholders which were converted to Ordinary Shares on 31 October 2013.
A Ordinary Shares: these are held by the former TP12(I) VCT plc shareholders prior to the merger on 21 November 2012.
C Ordinary Shares: these are the shares issued in the Offer that closed on 27 May 2014. A total of 14.0 million was raised and 13,441,438 C Shares were issued.
D Ordinary Shares: these are the shares issued in the Offer that closed on 30 April 2015. A total of 14.3 million was raised and 13,701,636 D Shares were issued.
Chairman's Statement
I am writing to present the Unaudited Interim Financial Report for the Company for the period ended 30 September 2016, a period which has seen modest appreciation in all share classes, in line with expectations.
There have been significant changes to the VCT legislation in the last 12 months, which have further restricted the investments which a VCT can make on both a Qualifying and a Non-Qualifying basis. Some of the investments which we have targeted and made would no longer be permitted, but most of the changes took effect from 6th April and therefore do not affect the Company's existing investment portfolio.
Investment Portfolio
The Company's funds at 30 September 2016 are 97% invested in a portfolio of VCT qualifying and non-qualifying unquoted investments. It continues to meet the condition that 70% of funds must be invested in VCT qualifying investments within three years.
The Investment Manager's review on pages 4 to 6 gives an update on the portfolio of investments in 21 small unquoted businesses.
Ordinary Share Class
The Ordinary Share Class has a diverse portfolio consisting of cinema digitisation, electricity generation, crematorium management and SME funding.
The Ordinary Share Class has recorded a profit over the period of 0.44p per share. As at 30 September 2016 the net asset value stood at 68.13p per share. Adding back the total dividends of 25.56p paid to Ordinary Class Shareholders takes the total return including net asset value to 93.69p per share, which compares to a weighted average share price at acquisition or conversion of 83.6p.
A Share Class
After the realisation of a substantial part of its portfolio in 2015 the remaining portfolio consists of three investments, two in landfill gas and one in an SME Funding company.
The A Share Class has recorded a profit over the period of 0.51p per share. As at 30 September 2016 the net asset value stood at 41.79p per share. Adding back the dividends paid to A Class Shareholders of 56.2p per share takes the total return including net asset value to 97.99p per share, which compares to a weighted average share price at conversion of 86.4p. The Company has not paid a dividend to the A Class Shareholders thus far this year due to insufficient cash resources following the payment of a special dividend of 40p paid to this share class in August 2015.
The coming months will see us focus on proposals for the realisation of the remaining investments in the A Share Class as April 2017 will mark the end of the minimum five year holding period.
C Share Class
The C Share Class has investments in three companies in the Hydro Electric Power sector which between them own five hydroelectric schemes in the Scottish Highlands. All schemes have been successfully commissioned and are operating in line with expectations. The C Share Class also has invested in companies which provide SME funding in the hydro electric power sector.
The C Share Class has recorded a profit over the period of 1.34p per share. At 30 September 2016 the net asset value stood at 101.37p per share. The Company paid its first dividend to C Class Shareholders of 672,072 equal to 5p per share on 8 July 2016. Adding back this dividend takes the total return including the net asset value to 106.37p per share.
D Share Class
The D Share Class has investments in five companies in the Hydro Electric Power sector which between them own six hydroelectric schemes in the Scottish Highlands. As expected five of the schemes have been successfully commissioned and are operational, with the final scheme due to be commissioned in May 2017. The D Share Class also has invested in two companies, providing funding to SMEs one of which focuses on the hydro electric power sector.
The D Share Class has recorded a profit over the period of 1.82p per share. At 30 September 2016 the net asset value stood at 103.08p per share.
Risks
The Board believes that the principal risks currently facing the Company are:
investment risk associated with holding VCT qualifying investments;
risk of failure to maintain approval as a VCT;
risk of ability to return funds to investors in line with expectations.
The Board and the Investment Manager continue to work to minimise the likelihood and the potential impact of these risks.
Outlook
The Company and the Investment Manager continue to monitor the performance of the Ordinary Share portfolio and to seek exits for the A Share portfolio.
The Company's focus on the C and D Share Class investments in the hydro electric power sector will be on the operation of completed sites and progress of the remaining scheme under construction.
As noted above the Company is now fully invested, meeting the 70% qualifying investment condition including funds raised last year. Both the Company and the Investment Manager are therefore well placed to raise and invest further funds and we are pleased to report the launch in October of an offer, for subscription into a new E Share Class in the Company of up to 30 million. The existing share classes will benefit from this offer with an allocation of fixed costs to the new share class.
If you have any questions or comments, please do not hesitate to contact Triple Point on 020 7201 8989.
David Frank
Chairman
8 November 2016
Investment Manager's Review
The Company's funds at 30 September 2016 are 97% invested in a portfolio of VCT qualifying and non-qualifying unquoted investments. It continues to meet the condition that 70% of funds must be invested in VCT qualifying investments within three years.
The VCT was established to fund small and medium sized enterprises. It has four share classes each invested in their own portfolio as detailed on page 5. At 30 September 2016 the overall portfolio comprised investments in 21 small, unquoted companies in four sectors: cinema digitisation; crematorium management; electricity generation; and SME Funding.
Portfolio Review
Cinema Digitisation
The Company maintains two holdings in cinema digitisation businesses which provide cinema digitisation services in the UK, Germany and Ireland.These businesses continue to look for opportunities to grow and to acquire projectors.
Crematorium Management
The Company has an investment in a business that provides crematory and mercury abatement services for the crematoria of a London Borough. In line with expectations for the sector this investment has delivered a modest but steady return over the 7 years that it has been held.
Electricity Generation:
Solar
The Company holds an investment in Green Energy For Education Limited ("GEFE"), a company that owns a portfolio of rooftop PV systems. The PV systems have been outperforming their electricity generation targets and the investment continues to provide an attractive exposure to a business benefitting from low risk Feed in Tariffs. The Company also holds an investment in Cmore Energy Limited ("Cmore"), a ground mount solar farm located in Herefordshire. Revenues are earned from the sale of Renewable Obligation Certificates and the sale of electricity. Cmore's revenues have been protected from the wider decline in wholesale electricity prices due to a long term Power Purchase Agreement.
Landfill Gas
Craigahulliar Energy Ltd ("CEL") and Aeris Power Ltd ("APL") each generate renewable electricity from landfill gas at sites operated respectively by local councils and a large waste management company in Northern Ireland. Both businesses continue to generate electricity for export to the Grid, earning long term cash flows through the sale of electricity to a utility company and potentially to the site owners, as well as through the sale of the Renewable Obligation Certificates. CEL is generating in line with expectations while APL's generation is running at lower levels than planned due to lower than expected gas extraction. Management have taken actions to address this and APL continues to be able to comfortably meet the VCT's interest payments.The Company is in discussions with a potential acquirer of its holdings in both these companies.
Hydro Electric Power
The Company has investments in nine companies which between them own eleven hydroelectric schemes in the Scottish Highlands. In total ten schemes have been commissioned. Four schemes were commissioned at the end of 2015 and the first quarter of the year was spent addressing snagging issues and bringing the schemes up to full capacity. Rainfall levels and generation were below forecast during the second quarter but ahead of forecast during the summer and the schemes are operating efficiently. A further two schemes were commissioned in August and September 2016 and have operated well during this initial period. The final scheme is forecast to be commissioned during the second quarter 2017.
Gas Power
The Company holds an investment pursuing opportunities in combined heat and other gas power projects.
SME Funding
The Company has invested in three companies which provide funding to a range of small and medium sized businesses. Two of these companies focus on the hydro electric power sector. All three companies are performing in line with expectation.
Sector Analysis
The unquoted investment portfolio can be analysed as follows:
Electricity Generation
SME Funding
Industry Sector
Cinema Digitisation
Crematorium Management
Hydro Electric Power
Other
Hydro Electric Power
Other
Total Unquoted Investments
'000
'000
'000
'000
'000
'000
'000
Investments at 31 March 2016
Ord Shares
3,294
788
4,098
3,970
-
450
12,600
A Shares
-
-
-
789
-
950
1,739
C Shares
-
-
10,434
-
3,698
-
14,132
D Shares
-
-
11,083
1
1,206
800
13,090
Total
3,294
788
25,615
4,760
4,904
2,200
41,561
Investments made during the period
Ord Shares
-
-
-
-
350
-
350
A Shares
-
-
-
-
-
-
-
C Shares
-
-
-
-
-
-
-
D Shares
-
-
-
-
-
-
-
-
-
-
-
350
-
350
Investments realised during the period
Ord Shares
-
-
(508)
-
-
-
(508)
A Shares
-
-
-
-
-
-
-
C Shares
-
-
-
-
(462)
-
(462)
D Shares
-
-
-
-
-
-
-
-
-
(508)
-
(462)
-
(970)
Investments at 30 September 2016
Ord Shares
3,294
788
3,590
3,970
350
450
12,442
A Shares
-
-
-
789
-
950
1,739
C Shares
-
-
10,434
-
3,236
-
13,670
D Shares
-
-
11,083
1
1,206
800
13,090
Total
3,294
788
25,107
4,760
4,792
2,200
40,941
Total investments %
8.05%
1.92%
61.33%
11.63%
11.70%
5.37%
100.00%
Outlook
As Investment Manager we are committed to ensuring that returns on the investment portfolio are optimised and that the VCT continues to be managed in line with the Company's investment strategy and risk profile.
As noted in the Chairman's Statement the Company is now fully invested, meeting the 70% qualifying investment condition including funds raised last year. Both the Company and the Investment Manager are therefore well placed to raise and invest further funds with an offer for subscription into a new E Share Class in the Company of up to 30 million.
Ordinary Share Class
The Company and the Investment Manager will continue to focus on monitoring the performance of the Ordinary Share Class investment portfolio and on maintaining or improving the performance of the Share Class within its target range.
A Share Class
The Company and the Investment Manager will continue to focus on the successful realisation of the A Share Class investments. April 2017 will mark the end of the five year minimum VCT holding period for this share class. In line with its investment strategy we will be working towards facilitating a rapid exit for shareholders. To date the Company has distributed 56.2p per share to the A Class Shareholders.
C Share Class
The Company and the Investment Manager will monitor the ongoing operation and efficiency of the C Share Class investments in hydro electricity generation businesses. The Company paid its first dividend to the C Share Class on 8 July 2016 of 5p per share.
D Share Class
We are pleased to report that five of the six Hydro schemes held by the D Share Class were commissioned on time and within budget. Our focus now turns to improving operation and efficiency of the schemes. In line with initial expectations the sixth scheme is under construction and due to be commissioned during the second quarter of 2017.
There has been speculation of a second referendum. Overall our analysis remains the same as prior to the Scottish Referendum vote in 2014. We believe that, should Scotland vote for independence its new government would not want to jeopardise investor confidence, nor Scotland's highly prized energy sector by retrospectively changing any commercial obligations. However potential currency risk in the event of Scottish independence cannot be eliminated.
If you have any questions, please do not hesitate to call us on 020 7201 8989.
Ben Beaton
Managing Partner
for Triple Point Investment Management LLP
8 November 2016
Investment Portfolio
Unaudited
Audited
30 September 2016
31 March 2016
Cost
Valuation
Cost
Valuation
'000
%
'000
%
'000
%
'000
%
Unquoted Holdings
Unquoted qualifying holdings
30,584
73.27
31,191
73.69
31,088
73.99
31,695
74.42
Unquoted non-qualifying holdings
9,782
23.43
9,750
23.05
9,898
23.56
9,866
23.23
Financial assets at fair value through profit or loss
40,366
96.70
40,941
96.74
40,986
97.55
41,561
97.65
Cash and cash equivalents
1,376
3.30
1,376
3.26
1,032
2.45
1,032
2.35
41,742
100.00
42,317
100.00
42,018
100.00
42,593
100.00
Unquoted Qualifying Holdings
'000
%
'000
%
'000
%
'000
%
Cinema Digitisation
Digima Ltd
1,262
3.02
1,274
3.01
1,262
3.00
1,274
2.99
Digital Screen Solutions Ltd
2,020
4.84
2,020
4.77
2,020
4.81
2,020
4.74
Solar
C More Energy Ltd
1,000
2.40
1,153
2.72
1,000
2.38
1,153
2.71
Green Energy for Education Ltd
475
1.14
608
1.44
475
1.13
608
1.43
PJC Renewable Energy Ltd
5
0.01
5
0.01
5
0.01
5
0.01
Landfill Gas
Aeris Power Ltd
525
1.26
424
1.00
525
1.25
424
1.00
Craigahulliar Energy Ltd
350
0.84
365
0.86
350
0.83
365
0.86
Hydro Electric Power
Elementary Energy Ltd
2,060
4.94
2,130
5.03
2,060
4.90
2,130
5.00
Green Highland Allt Choire A Bhalachain (225) Ltd
3,130
7.50
3,130
7.40
3,130
7.45
3,130
7.35
Green Highland Allt Garbh Ltd
2,710
6.49
2,710
6.40
2,710
6.45
2,710
6.36
Green Highland Allt Ladaidh (1148) Ltd
3,500
8.38
3,500
8.27
3,500
8.33
3,500
8.22
Green Highland Allt Luaidhe (228) Ltd
1,995
4.78
1,995
4.71
1,995
4.75
1,995
4.68
Green Highland Allt Phocachain (1015) Ltd
3,932
9.42
3,932
9.29
3,932
9.36
3,932
9.23
Green Highland Shenval Ltd
1,120
2.68
1,120
2.65
1,624
3.87
1,624
3.81
Green Highland Renewables (Achnacarry) Ltd
4,300
10.30
4,625
10.93
4,300
10.23
4,625
10.86
Gas Power
Green Peak Generation Ltd
2,200
5.27
2,200
5.20
2,200
5.24
2,200
5.17
30,584
73.27
31,191
73.69
31,088
73.99
31,695
74.42
Unaudited
Audited
30 September 2016
31 March 2016
Cost
Valuation
Cost
Valuation
Unquoted Non-Qualifying Holdings
'000
%
'000
%
'000
%
'000
%
Crematorium Management
Furnace Managed Services Ltd
820
1.96
788
1.86
820
1.95
788
1.85
Hydro Electric Power
Elementary Energy Ltd
344
0.82
344
0.81
344
0.82
344
0.81
Green Highland Allt Choire A Bhalachain (225) Ltd
341
0.82
341
0.81
341
0.81
341
0.80
Green Highland Allt Garbh Ltd
-
-
-
-
30
0.07
30
0.07
Green Highland Allt Luaidhe (228) Ltd
185
0.44
185
0.44
185
0.44
185
0.43
Green Highland Allt Phocachain (1015) Ltd
169
0.40
169
0.40
175
0.42
175
0.41
Kinlochteacius Hydro Limited
762
1.83
762
1.80
762
1.81
762
1.79
Green Highland Renewables (Achnacarry) Ltd
117
0.28
117
0.28
133
0.32
133
0.31
Gas Power
Green Peak Generation Ltd
-
-
-
-
4
0.01
4
0.01
SME Funding
Hydro Electric Power:
Broadpoint 2 Ltd
2,834
6.79
2,834
6.70
2,894
6.89
2,894
6.79
Broadpoint 3 Ltd
2,010
4.82
2,010
4.75
2,010
4.78
2,010
4.72
Other:
Funding Path Ltd
2,200
5.27
2,200
5.20
2,200
5.24
2,200
5.24
9,782
23.43
9,750
23.05
9,898
23.56
9,866
23.23
Directors' Responsibility Statement
The Directors have elected to prepare 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 30 September 2016, 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 in the period; and
e) the Directors believe that the Company has sufficient financial resources to manage its business risks in the current uncertain economic outlook.
The Directors have reasonable expectation that the Company has adequate resources to continue in operational existence for at least the next 12 months. Thus they continue to adopt the going concern basis of accounting in preparing the Financial Statements.
This Interim Financial Report has not been audited or reviewed by the auditors.
David Frank
Chairman
8 November 2016
Non-Statutory Analysis - The Ordinary Share Fund
Statement of Comprehensive Income
Unaudited
Audited
6 months ended
Year ended
Note
30 September 2016
31 March 2016
Revenue
Capital
Total
Revenue
Capital
Total
'000
'000
'000
'000
'000
'000
Investment income
4
227
-
227
694
-
694
Realised gain on investments
-
-
-
-
342
342
Unrealised gain on investments
-
-
-
-
80
80
Investment return
227
-
227
694
422
1,116
Investment management fees
5
(81)
(22)
(103)
(183)
(61)
(244)
Other expenses
(22)
-
(22)
(127)
(16)
(143)
Profit before taxation
124
(22)
102
384
345
729
Taxation
7
(25)
7
(18)
(33)
12
(21)
Profit after taxation
99
(15)
84
351
357
708
Profit/(loss) and total comprehensive income for the period
99
(15)
84
351
357
708
Basic and diluted earnings per share
8
0.51p
(0.07p)
0.44p
1.80p
1.84p
3.64p
Unaudited
Audited
Balance Sheet
Note
30 September 2016
31 March 2016
'000
'000
Non-current assets
Financial assets at fair value through profit or loss
11,834
11,992
Current assets
Assets held for sale
608
608
Receivables
405
334
Cash and cash equivalents
9
508
326
1,521
1,268
Current liabilities
Payables
(96)
(85)
Net assets
13,259
13,175
Equity attributable to equity holders
13,259
13,175
Net asset value per share
11
68.13p
67.69p
Statement of Changes in Shareholders' Equity
Unaudited
Audited
30 September 2016
31 March 2016
'000
'000
Opening shareholders' funds
13,175
16,649
Purchase of own shares
-
(7)
Issue of new shares
-
3
Profit for the period
84
708
Dividends paid
-
(4,178)
Closing shareholders' funds
13,259
13,175
Unaudited
Audited
30 September 2016
31 March 2016
Cost
Valuation
Cost
Valuation
'000
%
'000
%
'000
%
'000
%
Unquoted qualifying holdings
10,142
80.40
10,510
81.16
10,646
84.54
11,014
85.21
Unquoted non-qualifying holdings
1,964
15.57
1,932
14.91
1,618
12.84
1,586
12.27
Financial assets at fair value through profit or loss
12,106
95.97
12,442
96.07
12,264
97.38
12,600
97.48
Cash and cash equivalents
508
4.03
508
3.93
326
2.62
326
2.52
12,614
100.00
12,950
100.00
12,590
100.00
12,926
100.00
Unquoted Qualifying Holdings
'000
%
'000
%
'000
%
'000
%
Cinema digitisation
Digima Ltd
1,262
10.00
1,274
9.84
1,262
10.02
1,274
9.86
Digital Screen Solutions Ltd
2,020
16.01
2,020
15.60
2,020
16.04
2,020
15.63
Solar
C More Energy Ltd
1,000
7.93
1,153
8.90
1,000
7.94
1,153
8.92
Green Energy for Education Ltd
475
3.77
608
4.69
475
3.77
608
4.70
PJC Renewable Energy Ltd
5
0.04
5
0.04
5
0.04
5
0.04
Hydro Electric Power
Elementary Energy Ltd
2,060
16.33
2,130
16.45
2,060
16.36
2,130
16.48
Green Highland Shenval Ltd
1,120
8.88
1,120
8.65
1,624
12.90
1,624
12.56
Gas Power
Green Peak Generation Ltd
2,200
17.44
2,200
16.99
2,200
17.47
2,200
17.02
10,142
80.40
10,510
81.16
10,646
84.54
11,014
85.21
Unquoted Non-Qualifying Holdings
Crematorium Management
Furnace Managed Services Ltd
820
6.50
788
6.08
820
6.51
788
6.10
Hydro Electric Power
Elementary Energy Ltd
344
2.73
344
2.66
344
2.73
344
2.66
Gas Power
Green Peak Generation Limited
-
-
-
-
4
0.03
4
0.03
SME Funding
Hydro Electric Power:
Broadpoint 2 Ltd
350
2.77
350
2.70
-
-
-
-
Other:
Funding Path Ltd
450
3.57
450
3.47
450
3.57
450
3.48
1,964
15.57
1,932
14.91
1,618
12.84
1,586
12.27
Non-Statutory Analysis - The A Share Fund
Statement of Comprehensive Income
6 months ended
Year ended
Note
30 September 2016
31 March 2016
Revenue
Capital
Total
Revenue
Capital
Total
'000
'000
'000
'000
'000
'000
Investment income
4
54
-
54
490
-
490
Realised loss on investments
-
-
-
-
(362)
(362)
Unrealised (loss) on investments
-
-
-
-
(101)
(101)
Investment return
54
-
54
490
(463)
27
Investment management fees
5
(15)
(4)
(19)
(39)
(13)
(52)
Other expenses
(3)
-
(3)
(10)
(4)
(14)
Profit/(loss) before taxation
36
(4)
32
441
(480)
(39)
Taxation
7
(7)
2
(5)
(1)
2
1
Profit/(loss) after taxation
29
(2)
27
440
(478)
(38)
Profit/(loss) and total comprehensive income for the period
29
(2)
27
440
(478)
(38)
Basic and diluted earnings/(loss) per share
8
0.56p
(0.05p)
0.51p
8.57p
(9.29p)
(0.72p)
Unaudited
Audited
Balance Sheet
Note
30 September 2016
31 March 2016
'000
'000
Non-current assets
Financial assets at fair value through profit or loss
950
950
Current assets
Assets held for sale
789
789
Receivables
320
313
Cash and cash equivalents
9
101
78
1,210
1,180
Current liabilities
Payables
(15)
(12)
Net assets
2,145
2,118
Equity attributable to equity holders
2,145
2,118
Net asset value per share
11
41.79p
41.28p
Unaudited
Audited
Statement of Changes in Shareholders' Equity
30 September 2016
31 March 2016
'000
'000
Opening shareholders' funds
2,118
4,465
Profit/(loss) for the period
27
(38)
Dividends paid
-
(2,309)
Closing shareholders' funds
2,145
2,118
Investment Portfolio
Unaudited
Audited
30 September 2016
31 March 2016
Cost
Valuation
Cost
Valuation
'000
%
'000
%
'000
%
'000
%
Unquoted qualifying holdings
875
45.43
789
42.88
875
45.98
789
43.43
Unquoted non-qualifying holdings
950
49.33
950
51.63
950
49.92
950
52.28
Financial assets at fair value through profit or loss
1,825
94.76
1,739
94.51
1,825
95.90
1,739
95.71
Cash and cash equivalents
101
5.24
101
5.49
78
4.10
78
4.29
1,926
100.00
1,840
100.00
1,903
100.00
1,817
100.00
Unquoted Qualifying Holdings
'000
%
'000
%
'000
%
'000
%
Landfill Gas
-
Aeris Power Ltd
525
27.26
424
23.04
525
27.59
424
23.34
Craigahulliar Energy Ltd
350
18.17
365
19.84
350
18.39
365
20.09
875
45.43
789
42.88
875
45.98
789
43.43
Unquoted Non-Qualifying Holdings
'000
%
'000
%
'000
%
'000
%
SME Funding
Other:
Funding Path Ltd
950
49.33
950
51.63
950
49.92
950
52.28
950
49.33
950
51.63
950
49.92
950
52.28
Non-Statutory Analysis - The C Share Fund
Statement of Comprehensive Income
Unaudited
Audited
6 months ended
Year ended
Note
30 September 2016
31 March 2016
Revenue
Capital
Total
Revenue
Capital
Total
'000
'000
'000
'000
'000
'000
Investment income
4
408
-
408
832
-
832
Unrealised gain on investments
-
-
-
-
325
325
Investment return
408
-
408
832
325
1,157
Investment management fees
5
(124)
(35)
(159)
(230)
(77)
(307)
Other expenses
(24)
-
(24)
(43)
-
(43)
Profit/(loss) before taxation
260
(35)
225
559
248
807
Taxation
7
(53)
7
(46)
(113)
15
(98)
Profit/(loss) after taxation
207
(28)
179
446
263
709
Profit/(loss) and total comprehensive income for the period
207
(28)
179
446
263
709
Basic and diluted earnings/(loss) per share
8
1.55p
(0.21p)
1.34p
3.31p
1.96p
5.27p
Unaudited
Audited
Balance Sheet
Note
30 September 2016
31 March 2016
'000
'000
Non current assets
Financial assets at fair value through profit or loss
13,670
14,132
Current assets
Receivables
5
2
Cash and cash equivalents
9
366
246
371
248
Current liabilities
Payables
(416)
(262)
Net assets
13,625
14,118
Equity attributable to equity holders
13,625
14,118
Net asset value per share
11
101.37p
105.03p
Statement of Changes in
Unaudited
Audited
Shareholders' Equity
30 September 2016
31 March 2016
'000
'000
Opening shareholders' funds
14,118
13,409
Profit for the period
179
709
Dividends paid
(672)
-
Closing shareholders' funds
13,625
14,118
Investment Portfolio
Unaudited
Audited
30 September 2016
31 March 2016
Cost
Valuation
Cost
Valuation
'000
%
'000
%
'000
%
'000
%
Unquoted qualifying holdings
9,430
68.78
9,755
69.50
9,430
67.10
9,755
67.85
Unquoted non-qualifying holdings
3,915
28.55
3,915
27.89
4,377
31.15
4,377
30.45
Financial assets at fair value through profit or loss
13,345
97.33
13,670
97.39
13,807
98.25
14,132
98.28
Cash and cash equivalents
366
2.67
366
2.61
246
1.75
246
1.70
13,711
100.00
14,036
100.00
14,053
100.00
14,378
100.00
Unquoted Qualifying Holdings
'000
%
'000
%
'000
%
'000
%
Hydro Electric Power
Green Highland Allt Choire A Bhalachain (225) Ltd
3,130
22.83
3,130
22.30
3,130
22.27
3,130
21.77
Green Highland Allt Phocachain (1015) Ltd
2,000
14.59
2,000
14.25
2,000
14.23
2,000
13.91
Green Highland Renewables (Achnacarry) Ltd
4,300
31.36
4,625
32.95
4,300
30.60
4,625
32.17
9,430
68.78
9,755
69.50
9,430
67.10
9,755
67.85
Unquoted Non-Qualifying Holdings
'000
%
'000
%
'000
%
'000
%
Hydro Electric Power
Green Highland Allt Choire A Bhalachain (225) Ltd
341
2.49
341
2.43
341
2.43
341
2.37
Green Highland Allt Garbh Ltd
-
-
-
-
30
0.21
30
0.21
Green Highland Allt Phocachain (1015) Ltd
169
1.23
169
1.20
175
1.25
175
1.22
Green Highland Renewables (Achnacarry) Ltd
117
0.85
117
0.83
133
0.95
133
0.93
SME Funding
Hydro Electric Power:
Broadpoint 2 Ltd
2,484
18.12
2,484
17.70
2,894
20.59
2,894
20.13
Broadpoint 3 Ltd
804
5.86
804
5.73
804
5.72
804
5.59
3,915
28.55
3,915
27.89
4,377
31.15
4,377
30.45
Non-Statutory Analysis - The D Share Fund
Statement of Comprehensive Income
Unaudited
Audited
6 months ended
Year ended
Note
30 September 2016
31 March 2016
Revenue
Capital
Total
Revenue
Capital
Total
'000
'000
'000
'000
'000
'000
Investment income
4
470
-
470
687
-
687
Realised gain on investments
-
-
-
-
1
1
Investment return
470
-
470
687
1
688
Investment management fees
5
(114)
(33)
(147)
(141)
(46)
(187)
Other expenses
(24)
-
(24)
(76)
(48)
(124)
Profit/(loss) before taxation
332
(33)
299
470
(93)
377
Taxation
7
(66)
16
(50)
(94)
9
(85)
Profit/(loss) after taxation
266
(17)
249
376
(84)
292
Profit/(loss) and total comprehensive income for the period
266
(17)
249
376
(84)
292
Basic and diluted earnings/(loss) per share
8
1.94p
(0.12p)
1.82p
2.82p
(0.63p)
2.19p
Unaudited
Audited
Balance Sheet
Note
30 September 2016
31 March 2016
'000
'000
Non current assets
Financial assets at fair value through profit or loss
13,090
13,090
Current assets
Receivables
856
561
Cash and cash equivalents
9
401
382
1,257
943
Current liabilities
Payables
(223)
(158)
Net assets
14,124
13,875
Equity attributable to equity holders
14,124
13,875
Net asset value per share
11
103.08p
101.26p
Statement of Changes in
Unaudited
Audited
Shareholders' equity
30 September 2016
31 March 2016
'000
'000
Opening shareholders' funds
13,875
5,198
Issue of new shares
-
8,385
Profit for the period
249
292
Closing shareholders' funds
14,124
13,875
Investment Portfolio
Unaudited
Audited
30 September 2016
31 March 2016
Cost
Valuation
Cost
Valuation
'000
%
'000
%
'000
%
'000
%
Unquoted qualifying holdings
10,137
75.14
10,137
75.14
10,137
75.25
10,137
75.25
Unquoted non-qualifying holdings
2,953
21.89
2,953
21.89
2,953
21.92
2,953
21.92
Financial assets at fair value through profit or loss
13,090
97.03
13,090
97.03
13,090
97.17
13,090
97.17
Cash and cash equivalents
401
2.97
401
2.97
382
2.83
382
2.83
13,491
100.00
13,491
100.00
13,472
100.00
13,472
100.00
Unquoted Qualifying Holdings
'000
%
'000
%
'000
%
'000
%
Hydro Electric Power
Green Highland Allt Garbh Ltd
2,710
20.09
2,710
20.09
2,710
20.12
2,710
20.12
Green Highland Allt Ladaidh (1148) Ltd
3,500
25.94
3,500
25.94
3,500
25.98
3,500
25.98
Green Highland Allt Luaidhe (228) Ltd
1,995
14.79
1,995
14.79
1,995
14.81
1,995
14.81
Green Highland Allt Phocachain (1015) Ltd
1,932
14.32
1,932
14.32
1,932
14.34
1,932
14.34
10,137
75.14
10,137
75.14
10,137
75.25
10,137
75.25
Unquoted Non-Qualifying Holdings
'000
%
'000
%
'000
%
'000
%
Hydro Electric Power
Green Highland Allt Luaidhe (228) Ltd
185
1.37
185
1.37
185
1.37
185
1.37
Kinlochteacius Hydro Limited
762
5.65
762
5.65
762
5.66
762
5.66
SME Funding
Hydro electric Power:
Broadpoint 3 Ltd
1,206
8.94
1,206
8.94
1,206
8.95
1,206
8.95
Other:
Funding Path Ltd
800
5.93
800
5.93
800
5.94
800
5.94
2,953
21.89
2,953
21.89
2,953
21.92
2,953
21.92
Statement of Comprehensive Income
Unaudited
Audited
Unaudited
6 months ended
Year ended
Year ended
30 September 2016
31 March 2016
30 September 2015
Note
Rev.
Cap.
Total
Rev.
Cap.
Total
Rev.
Cap.
Total
'000
'000
'000
'000
'000
'000
'000
'000
'000
Income
Investment income
4
1,159
-
1,159
2,703
-
2,703
1,669
-
1,669
(Loss) arising on the disposal of investments during the period
-
-
-
-
(19)
(19)
-
(21)
(21)
Gain/(loss) arising on the revaluation of investments at the period end
-
-
-
-
304
304
-
(106)
(106)
Investment return
1,159
-
1,159
2,703
285
2,988
1,669
(127)
1,542
Expenses
Investment management fees
5
334
94
428
593
197
790
300
100
400
Financial and regulatory costs
15
-
15
24
-
24
14
-
14
General administration
7
-
7
16
-
16
6
-
6
Legal and professional fees
27
-
27
55
68
123
21
69
90
Directors' remuneration
6
24
-
24
48
-
48
24
-
24
Interest payable
-
-
-
113
-
113
113
-
113
Operating expenses
407
94
501
849
265
1,114
478
169
647
Profit/(loss) before taxation
752
(94)
658
1,854
20
1,874
1,191
(296)
895
Taxation
7
(151)
32
(119)
(241)
38
(203)
(105)
19
(86)
Profit/(loss) after taxation
601
(62)
539
1,613
58
1,671
1,086
(277)
809
Profit/(loss) and total comprehensive income for the period
601
(62)
539
1,613
58
1,671
1,086
(277)
809
Basic and diluted earnings per share
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
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 under guidance published by the Association of Investment Companies.
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
Unaudited
Audited
30 September 2016
31 March 2016
Note
'000
'000
Non-current assets
Financial assets at fair value through profit or loss
39,544
40,164
Current assets
Assets held for sale
1,397
1,397
Receivables
1,586
1,210
Cash and cash equivalents
9
1,376
1,032
4,359
3,639
Total Assets
43,903
43,803
Current liabilities
Payables and accrued expenses
433
316
Current taxation payable
317
201
750
517
Net Assets
43,153
43,286
Equity attributable to equity holders of the parent
Share capital
518
518
Share redemption reserve
2
2
Share premium
16,307
16,307
Special distributable reserve
27,301
27,447
Capital reserve
(1,577)
(1,515)
Revenue reserve
602
527
Total equity
43,153
43,286
Net asset value per share
n/a
n/a
The statements were approved by the Directors and authorised for issue on 8 November 2016 and are signed on their behalf by:
David Frank
Chairman
8 November 2016
The accompanying notes are an integral part of this statement.
Statement of Changes in Shareholders' Equity
Issued Capital
Share Redemption Reserve
Share Premium
Special Distributable Reserve
Capital Reserve
Revenue Reserve
Total
'000
'000
'000
'000
'000
'000
'000
6 months ended 30 September 2016
Opening balance
518
2
16,307
27,447
(1,515)
527
43,286
Dividends paid
-
-
-
(146)
-
(526)
(672)
Transactions with owners
-
-
-
(146)
-
(526)
(672)
Profit/(loss) for the period
-
-
-
-
(62)
601
539
Profit and total comprehensive income/(loss) for the period
-
-
-
-
(62)
601
539
Balance at 30 September 2016
518
2
16,307
27,301
(1,577)
602
43,153
Capital reserve consists of:
Investment holding gains
575
Other realised losses
(2,152)
(1,577)
Year ended 31 March 2016
Opening balance
434
451
32,405
6,997
(1,573)
1,007
39,721
Issue of new shares
84
-
8,687
(383)
-
-
8,388
Purchase of own shares
-
-
-
(7)
-
-
(7)
Cancellation of share premium
-
(449)
(24,785)
25,234
-
-
-
Dividend paid
-
-
-
(4,394)
-
(2,093)
(6,487)
Transactions with owners
84
(449)
(16,098)
20,450
-
(2,093)
1,894
Profit for the year
-
-
-
58
1,613
1,671
Profit and total comprehensive income for the year
-
-
-
58
1,613
1,671
Balance at 31 March 2016
518
2
16,307
27,447
(1,515)
527
43,286
Capital reserve consists of:
Investment holding gains
575
Other realised losses
(2,090)
(1,515)
6 months ended 30 September 2015
Opening balance
434
451
32,405
6,997
(1,573)
1,007
39,721
Issue of new shares
84
-
8,688
(384)
-
-
8,388
Dividend paid
-
-
-
(2,275)
-
(1,008)
(3,283)
Transactions with owners
84
-
8,688
(2,659)
-
(1,008)
5,105
Profit/(loss) for the period
-
-
-
-
(277)
1,086
809
Profit/ and total comprehensive income/(loss) for the period
-
-
-
-
(277)
1,086
809
Balance at 30 September 2015
518
451
41,093
4,338
(1,850)
1,085
45,635
Capital reserve consists of:
Investment holding gains
165
Other realised losses
(2,015)
(1,850)
The capital reserve represents the proportion of Investment Management fees charged against capital and realised/unrealised gains or losses on the disposal/revaluation of investments. The special distributable reserve was created on court cancellation of the share premium account. The net of the revenue reserve and special distributable reserve are distributable by way of dividend.
Statement of Cash Flows
Unaudited
Audited
6 months ended
Year ended
30 September 2016
31 March 2016
'000
'000
Cash flows from operating activities
Profit before taxation
658
1,874
Loss arising on the disposal of investments during the period
-
19
(Gain) arising on the revaluation of investments at the period end
-
(304)
Cash flow generated by operations
658
1,589
(Increase) in receivables
(376)
(429)
Increase/(decrease) in payables
117
(2,195)
Taxation
(3)
(118)
Net cash flows from operating activities
396
(1,153)
Cash flow from investing activities
Purchase of financial assets at fair value through profit or loss
-
(16,707)
Proceeds of sale of financial assets at fair value through profit or loss
620
16,005
Net cash flows from investing activities
620
(702)
Cash flows from financing activities
Issue of new shares
-
8,388
Purchase of own shares
-
(7)
Dividends paid
(672)
(6,487)
Net cash flows from financing activities
(672)
1,894
Net increase/(decrease) in cash and cash equivalents
344
39
Reconciliation of net cash flow to movements in cash and cash equivalents
Opening cash and cash equivalents
1,032
993
Net increase/(decrease) in cash and cash equivalents
344
39
Closing cash and cash equivalents
1,376
1,032
The accompanying notes are an integral part of this statement.
Notes to the Unaudited Interim Financial Report
1. Corporate information
The Unaudited Interim Financial Report of the Company for the 6 months ended 30 September 2016 was authorised for issue in accordance with a resolution of the Directors on 8 November 2016.
The Company is listed on the London Stock Exchange.
Triple Point Income VCT plc is incorporated and domiciled in Great Britain. The address of Triple Point Income VCT plc's registered office, which is also its principal place of business, is 18 St. Swithin's Lane, London EC4N 8AD.
Triple Point Income VCT plc's Unaudited 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 is that at least 70% of the Company's net assets are or will be invested in VCT qualifying unquoted companies. The remaining assets are exposed either to cash or cash-based similar liquid investments or investments originated in line with the Company's VCT qualifying Investment Policy.
2. Basis of preparation and accounting policies
Basis of preparation
The Unaudited Interim Financial Report of the Company for the 6 months ended 30 September 2016 has been prepared in accordance with IAS 34: Interim Financial Reporting. The same accounting policies and methods of computation are followed in the Interim Financial Report as were followed in the most recent Financial Statements. 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 31 March 2016.
Estimates
The preparation of the Interim Report requires the Board to make judgements, estimates and assumptions that reflect the application of accounting policies and the reported amounts of assets and liabilities, income and expenditure. However, actual results may differ from these estimates.
3. Segmental reporting
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
Unaudited
Audited
6 months ended
Year ended
30 September 2016
31 March 2016
Ord.
A
C
D
Ord.
A
C
D
Shares
Shares
Shares
Shares
Total
Shares
Shares
Shares
Shares
Total
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
Loan stock interest
227
54
408
470
1,159
458
55
828
683
2,024
Dividends receivable
-
-
-
-
-
232
434
-
-
666
Interest receivable on bank balances
-
-
-
-
-
4
1
4
4
13
227
54
408
470
1,159
694
490
832
687
2,703
5. Investment management fees
TPIM provides investment management and administration services to the Company under an Investment Management Agreement effective 6 February 2008 and three deeds of variation to that agreement effective 21 November 2012, 20 December 2013 and 28 October 2014. The agreement provides for an administration and investment management fee of 1.75% per annum of net assets payable quarterly in arrear for both Ordinary Shares and A Shares. For the Ordinary Shares issued under the 2007 offer the agreement ran until 6 February 2014 after which the management fee proportion of 1.5% has not been charged. For all other Ordinary Shares the appointment shall continue until at least 30 April 2018. For A Shares the appointment shall continue until at least 30 April 2017. The agreement provides for an administration and investment management fee of 2.25% per annum of net assets payable quarterly in arrear for C Shares and D Shares. For C Shares and D Shares the appointment shall continue for a period of at least 6 years from the admission of those shares.
6. Directors' remuneration
Unaudited
Audited
6 months ended
Year ended
30 September 2016
31 March 2016
Ord.
A
C
D
Ord.
A
C
D
Shares
Shares
Shares
Shares
Total
Shares
Shares
Shares
Shares
Total
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
David Frank
3
-
3
3
9
6
2
5
5
18
Simon Acland
2
-
3
3
8
5
1
4
5
15
Michael Stanes
2
1
2
2
7
6
1
5
3
15
Total
7
1
8
8
24
17
4
14
13
48
Directors' remuneration is allocated proportionately against each share class.
7. Taxation
Unaudited
Audited
6 months ended
Year ended
30 September 2016
31 March 2016
Ord.
A
C
D
Ord.
A
C
D
Shares
Shares
Shares
Shares
Total
Shares
Shares
Shares
Shares
Total
'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
Profit/(loss) on ordinary activities before tax
102
32
225
299
658
729
(39)
807
377
1,874
Corporation tax @ 20%
21
6
45
60
132
146
(8)
162
75
375
Effect of:
-
-
Capital (gains)/losses not taxable
-
-
-
-
-
(84)
93
(65)
-
(56)
Income received not taxable
-
-
-
-
-
(46)
(87)
-
10
(123)
Disallowed expenditure
-
-
-
-
3
1
-
-
4
Unrelieved tax losses arising in the year
-
-
-
(1)
-
-
-
(1)
Prior year adjustment
(3)
(1)
1
(10)
(13)
3
-
(1)
-
2
Tax charge/credit
18
5
46
50
119
21
(1)
96
85
201
Capital gains and losses are exempt from corporation tax due to the Company's status as a Venture Capital Trust.
8. Earnings/(loss) per share
The earnings per share for Ordinary Shares is based on the profit after tax of 84,000, and on the weighted average number of shares in issue during the period of 19,463,120, which is equal to the number of shares at 30 September 2016.
The earnings per share for A Shares is based on the profit after tax of 27,000, and on the weighted average number of shares in issue during the period of 5,131,353, which is equal to the number of shares at 30 September 2016.
The earnings per share for C Shares is based on the profit after tax of 179,000, and on the weighted average number of shares in issue during the period of 13,441,438, which is equal to the number of shares at 30 September 2016.
The earnings per share for D Shares is based on the profit after tax of 249,000, and on the weighted average number of shares in issue during the period of 13,701,636, which is equal to the number of shares at 30 September 2016.
9. Cash and cash equivalents
Cash and cash equivalents comprise deposits with The Royal Bank of Scotland plc.
10. Share capital
30 September 2016
31 March 2016
Ordinary Shares of 0.01 each
Issued & Fully Paid
Number of Shares
19,463,120
19,463,120
Par Value '000
195
195
A Ordinary Shares of 0.01 each
Issued & Fully Paid
Number of shares
5,131,353
5,131,353
Par Value '000
51
51
C Ordinary Shares of 0.01 each
Issued & Fully Paid
Number of shares
13,441,438
13,441,438
Par Value '000
135
135
D Ordinary Shares of 0.01 each
Issued & Fully Paid
Number of shares
13,701,636
13,701,636
Par Value '000
137
137
11. Net asset value per share
The calculation of the Company's net asset value per share for Ordinary Shares is based on the Company's net assets attributable to the Ordinary Shares of 13,259,000 divided by the 19,463,120 Ordinary Shares in issue.
The calculation of the Company's net asset value per share for A Shares is based on the Company's net assets attributable to the A Shares of 2,145,000 divided by the 5,131,353 A Shares in issue.
The calculation of the Company's net asset value per share for C Shares is based on the Company's net assets attributable to the C Shares of 13,625,000 divided by the 13,441,438 C Shares in issue.
The calculation of the Company's net asset value per share for D Shares is based on the Company's net assets attributable to the D Shares of 14,124,000 divided by the 13,701,636 D Shares in issue.
12. Commitments and contingencies
The Company had no commitments or contingent liabilities at 30 September 2016.
13. Relationship with Investment Manager
During the period TPIM provided investment management and administration services to the Company for a fee amounting to 431,894. At 30 September 2016 271,439 was due to TPIM.
14. Related party transactions
There are no related party transactions.
15. Post balance sheet events
There were no post balance sheet events, other than the new E Share Class offer as described in the Investment Manager's Review.
16. Dividends
A dividend of 5p per share, equivalent to 672,072 was paid to the C Class Shareholders on 8 July 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BUBDBXDGBGLI
