RNS Number : 4207S
Triple Point Inc VCT - TPVE
15 November 2021
 

15 November 2021

 

Triple Point Income VCT plc

(the "Company")

RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

 

The Directors of Triple Point Income VCT plc are pleased to announce the unaudited results for the six months ended 30 September 2021.

 

You may view the Interim Report in due course on the Triple Point website: www.triplepoint.co.uk

 

FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:

Triple Point Investment Management LLP

(Investment Manager)

Tel: 020 7201 8989

 

Jonathan Parr

Belinda Thomas

 


 

The Company's LEI is 213800IXD8S5WY88L245

 

Further information on the Company can be found on its website https://www.triplepoint.co.uk/current-vcts/triple-point-income-vct-plc/s1238/.

 

Financial Summary

 

Six months ended 30 September 2021








C Shares

D Shares

E Shares


Total

Net assets

£'000

10,936

7,968

26,444


45,348

Net asset value per share

Pence

81.56p

58.57p

91.38p



Net profit before tax

£'000

(3)

123

89


209

Earnings per share

Pence

(0.01p)

0.74p

0.29p










Cumulative return to Shareholders (p)







Net asset value per share


81.56p

58.57p

91.38p



Dividends paid


75.25p

71.75p

15.00p



Net asset value plus dividends paid*


156.81p

130.32p

106.38p










Year ended 31 March 2021









C Shares

D Shares

E Shares


Total

Net assets

£'000

11,194

8,106

27,382


46,682

Net asset value per share

Pence

83.30p

59.59p

94.59p



Net profit before tax

£'000

267

349

(174)


442

Earnings per share

Pence

1.93p

2.08p

(0.61p)



Cumulative return to Shareholders (p)







Net asset value per share


83.30p

59.59p

94.59p



Dividends paid


73.50p

70.00p

11.50p



Net asset value plus dividends paid


156.80p

129.59p

106.09p










Six months ended 30 September 2020






Unaudited


C Shares

D Shares

E Shares


Total

Net assets

£'000

11,184

7,970

27,882


47,036

Net asset value per share

Pence

83.20p

58.60p

96.31p



Net profit/(loss) before tax

£'000

255

182

330


767

Earnings/(loss) per share

Pence

1.83p

1.09p

1.12p



Cumulative return to shareholders (p)







Net asset value per share


83.20p

58.60p

96.31p



Dividends paid


73.50p

70.00p

11.50p



Net asset value plus dividends paid


156.70p

128.60p

107.81p



 

* The final sale price for the hydroelectric assets is being negotiated. The value to be distributed will also be subject to the performance fee payable on distribution, as a result the total return may be lower than indicated in these interim statements for the period to 30 September 2021. Further details on the net proceeds expected to be returned will be provided to Shareholders in due course.

 

Triple Point Income VCT plc ("the Company") is a Venture Capital Trust ("VCT"). The Investment Manager is Triple Point Investment Management LLP ("TPIM" or "Triple Point"). The Company was incorporated in November 2007 and currently has three classes of issued Ordinary Shares:

 

·      C Ordinary Shares ("C Shares"): these are the shares issued in the Offer that closed on 27 May 2014. A total of £14 million was raised and 13,413,088 C Shares were issued.

 

·      D Ordinary Shares ("D Shares"): these are the shares issued in the Offer that closed on 30 April 2015. A total of £14.3 million was raised and 13,604,637 D Shares were issued.

 

·      E Ordinary Shares ("E Shares"): these are the shares issued in the Offer that closed on 15 May 2017. Just under £30 million was raised and 28,940,076 E Shares were issued.

 

Key Highlights

 

·      C Shares Cumulative Dividends Paid: 75.25p (a dividend of 1.75 pence per share C Share was paid on 30 July 2021).

·      D Shares Cumulative Dividends Paid: 71.75p (a dividend of 1.75 pence per D Share was paid on 30 July 2021)

·      E Shares Cumulative Dividends Paid: 15.00p (a dividend of 3.50 pence per E Share was paid on 30 July 2021)

·      Total Return per C Share1: 156.81p2

·      Total Return per D Share1: 130.32p2

·      Total Return per E Share1: 106.38p2

 

1 Total Return is made up by current Net Asset Value plus Dividends paid to date. Total Return is defined as an Alternative Performance Measure ("APM"). Total Return, calculated by reference to the cumulative dividends paid plus net asset value (excluding tax reliefs received by shareholders), is the primary measure of performance in the VCT industry.

 

2 The final sale price for the hydroelectric assets is being negotiated. The value to be distributed will also be subject to the performance fee payable on distribution, as a result the total return may be lower than indicated in these interim statements for the period to 30 September 2021. Further details on the net proceeds expected to be returned will be provided to Shareholders in due course.

 

Chair's Statement

 

I am pleased to present the Interim Report for the Company for the period ended 30 September 2021.

 

During the period we have seen the welcome lift of restrictions imposed due to the Covid-19 pandemic, and the refocus of the market onto other globally important issues, including the part that renewable energy has to play in tackling climate change and the role that intermittent energy generation plays to support the rise of renewables. We have also seen volatility of power prices. However, as the majority of our revenues are generated from renewable incentive schemes, the Company's investments in both hydroelectric schemes and rooftop solar companies have not been materially adversely affected by this volatility. The gas fired-energy centre has been impacted by rising gas costs, but has also benefitted from high electricity prices leading to record profits, subject to those engines being operationally available.

 

Sale of hydroelectric assets

 

We are pleased to report, and as announced on 29 September 2021, that the Company has entered into a period of exclusivity for the sale of its portfolio of hydroelectric power assets in the C Share Class, and a partial sale of its hydroelectric power assets in the D and E Share Classes. We are exploring options to dispose of the interest in Green Highland Shenval Limited ("Shenval") within the D and E Share Class once a favourable sale price and terms can be achieved, and an update will be provided to D and E Shareholders in due course. This followed shareholder approval of the resolution to revise the Company's Investment Policy to remove the 16-year holding period for the C and D Share Classes at the 2021 AGM. This has allowed the Board to take advantage of favourable market conditions to proceed with a sale of the hydroelectric assets.

 

As a result of entering into exclusivity for the sale of the hydroelectric assets, the Company is expected to pay the net proceeds of sale to the C, D and E Shareholders.

 

We will work hard to ensure that funds are paid promptly to Shareholders following the conclusion of the sale process of hydroelectric assets, where a final sale price is being negotiated. The value to be distributed will be subject to the final sale price and to the performance fee payable on distributions; as a result the total return may be lower than indicated in these interim statements. Further details on the net proceeds expected to be returned will be provided to Shareholders in due course.

 

Investment Portfolio

 

The Company's funds at 30 September 2021 are invested in a portfolio of VCT qualifying and non-qualifying quoted and unquoted investments.

 

The Investment Manager's review on pages 13 to 20 gives an update on the portfolio of investments in 17 small unquoted businesses.

 

Regulation

 

Legislation introduced through the Finance Act 2018 began to apply to the Company from 1 April 2020, implementing an increase in the qualifying investment test to 80%. The Investment Manager continues to monitor this ratio closely and the Company continues to meet the requirements.

 

In line with HMRC guidance, any new investments to be made by the Company would be self-assured by the Board and the Investment Manager on a case-by-case basis and always with confirmation from professional advisers that they are Qualifying Investments. Advance Assurance would be sought where there is an element of uncertainty or doubt over the application of the rules.

 

The Company continued to satisfy all other tests relevant to its status as a Venture Capital Trust.

 

C Share Class

 

The C Share Class has investments in three companies in the hydroelectric power sector, which between them own six hydroelectric schemes in the Scottish Highlands.

 

The C Share Class recorded a small loss over the period of 0.01 pence per share predominately due to management fees and running costs of the VCT exceeding loan interest income.

 

At 30 September 2021 the net asset value stood at 81.56 pence per share. Adding back the total dividends paid to date of 75.25 pence per share takes the total return, including the net asset value, to 156.81 pence per share.

 

The original target for the C Share Class was to return 100.00 pence per share by the end of year six, comprising the income tax relief, four annual tax-free dividends of an average 5.00 pence per share, followed by a partial realisation of 50.00p. Thereafter an ongoing dividend of around 3.50p per annum was targeted for a further nine years and a final capital realisation of c.50 pence per share in 2029 following the sale of the Company's hydro projects. The Company has therefore exceeded its original target of 100.00 pence per share by the end of year six, having returned a total of 75.25 pence per share along with the initial tax relief. As set out above, the net proceeds of the sale of hydroelectric assets will be paid to C Shareholders, thereby amending the ongoing target of 3.50p per annum and final capital realisation of 50 pence per share in 2029. An update on the net proceeds expected to be returned to C Shareholders will be provided in due course.

 

D Share Class

 

The D Share Class has investments in five companies in the hydroelectric power sector, which between them own six hydroelectric schemes in the Scottish Highlands.

 

The D Share Class recorded a profit over the period of 0.74 pence per share. At 30 September 2021 the net asset value stood at 58.57 pence per share. Adding back the total dividends paid to date of 71.75 pence per share takes the total return, including the net asset value, to 130.32 pence per share.

 

The original target for the D Share Class was to return 100.00 pence per share by the end of year six, comprising the income tax relief, four annual tax-free dividends of an average 5.00 pence per share, followed by a partial realisation of 50.00p. Thereafter an ongoing dividend of around 3.50p per annum was targeted for a further nine years and a final capital realisation of c.50 pence per share in 2030 following the sale of the Company's hydro projects. The Company has therefore achieved its original target of 100.00 pence per share by the end of year six, having returned a total of 71.75 pence per share along with the initial tax relief. As set out above, the net proceeds of the sale of hydroelectric assets will be paid to D Shareholders, thereby amending the ongoing target of 3.50p per annum and final capital realisation of 50 pence per share in 2029. An update on the net proceeds expected to be returned to D Shareholders will be provided in due course.

 

E Share Class

 

The E Share Class holds a diverse portfolio of investments spanning vertical growing, energy production from a gas fired energy centre, crematorium management, solar and hydro. While the E Share Class is at an earlier stage in its life cycle in comparison to the C and D Share Class, the Board is pleased with its progress to date.

 

The E Share Class recorded a profit over the period of 0.29 pence per share. At 30 September 2021 the net asset value stood at 91.38 pence per share. The E Share Class declared a third dividend of 3.50 pence per share on 16 July 2021. This dividend was paid to Shareholders on 30 July 2021. This payment takes total dividends paid to E Shareholders to 15.00 pence per share.

 

It is intended that following the sale of the hydroelectric assets, the net proceeds will be returned to E shareholders by way of a special dividend, in lieu of future regular dividends that would have otherwise been paid by the E Share Class. It is expected that any further dividends will not be paid until such time as the Company has realised some or all of the remaining investments within the E Share Class.

 

With respect to the E Share Class's gas-fired energy centre investment, Green Peak Generation Limited ("Green Peak"), the sales process has been paused whilst operational issues to do with engine defects are rectified. Further information is set out in the Investment Manager's Review.

Our investment in Perfectly Fresh Cheshire ("PFC"), the vertical growing business, has seen a rebound in demand following the lifting of restrictions of the Covid-19 pandemic. Over the summer, an exercise was carried out to identify areas of design improvements that could be implemented to enhance crop yield and reduce running costs. These modifications and improvements will be installed over the coming months during which time production will be temporarily suspended, in consultation with PFC's main customer. In order for the business to pursue its growth ambitions and capitalise on the progress made to date, significant further investment is required, and fundraising will be a focus for the coming period. Further information on this, and the work being undertaken on the infrastructure improvements, can be found in the Investment Manager's Review. 

Outlook

 

Following the change to our Investment Policy, the Board has taken advantage of the favourable market conditions and demand with a proposed sale of the hydroelectric assets.

 

The Board will continue to monitor the progress of the sale of hydroelectric assets and the resulting return of capital to investors, along with seeking to dispose of Shenval once a favourable sale price and terms are achieved. Following the sale of the hydroelectric assets the Company will focus on optimising returns on its remaining assets.

 

If you have any questions or comments, please do not hesitate to contact Triple Point on 020 7201 8990.

 

David Frank

Chair

15 November 2021

 

Investment Manager's Review

 

Sector Analysis

 


 

 

Electricity Generation

SME Funding

 

 

Industry Sector

Crematorium Management

Vertical Growing

Hydroelectric Power

Other Electric Power

Hydroelectric Power

Other

Quoted Investments

Total Investments


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Investments at 30 September 2021









C Shares

-  

-  

11,035

-  

-  

-  

-  

11,035

D Shares

-  

-  

10,036

-  

-  

-  

-  

10,036

E Shares

112

6,282

5,803

7,235

3,348

3,404

558

26,742

Total

112

6,282

26,874

7,235

3,348

3,404

558

47,813

Total investments %

0.23%

13.14%

56.21%

15.13%

7.00%

7.12%

1.17%

100.00%

 

Investments by Sector - C Share Class

 

Hydroelectric Power

100%

 

Investments by Sector - D Share Class

 

Hydroelectric Power

100%

 

Investments by Sector - E Share Class

 

Crematorium Management

1%

Vertical Growing

23%

Quoted Investments

2%

Hydroelectric Power

22%

SME Funding - Hydroelectric Power

13%

SME Funding - Other

13%

Electricity Generation - Other

26%

 

We are pleased to present our interim review of the six months ended 30 September 2021.

 

The VCT was established to fund small and medium-sized enterprises. As at 30 September 2021 it has three share classes. The overall portfolio comprises investments in 17 small, unquoted companies spanning sectors including crematorium management, electricity generation, SME funding and vertical growing.

 

At 30 September 2021 the Company continues to meet the condition that at least 80% of relevant funds must be invested in VCT qualifying investments within three years.

 

Review and Future Developments

 

In the six months that this Interim Report covers we have seen a lifting of the Covid-19 restrictions and staged reopening of the country. Our portfolio, on the whole, was relatively unaffected by the restrictions imposed due to Covid-19, other than our vertical growing business which was significantly impacted by reduced demand due to changing customer patterns, The vertical growing facility has also been impacted by a decision to temporarily shut down operations in order to effect modifications to improve its resilience to changing demand profiles. Further information on our vertical growing business and all our other assets are set out below.

 

All Share Classes within the Company remain fully invested. Both the C and D Share Classes are exclusively invested across companies in the hydroelectric power sector. The E Share Class contains investments across the hydroelectric power sector, gas power sector, rooftop solar, crematorium management, SME funding and vertical growing.

 

Energy Investments - Active Asset Management

 

Investments across the hydroelectric power, gas power sector and rooftop solar within the C, D and E Share Classes continue to generate electricity.

 

Pleasingly there have been minimal supply chain disruptions leading to no substantial delays for the majority of any key components for the hydroelectric and solar projects. Unrelated to Covid-19, there have been delays with procurement of replacement parts at the gas fired energy project owned by Green Peak due to operational issues faced by the manufacturer. Triple Point continue to liaise with our Operation and Maintenance contractors, and manufacturers where possible to try and avert any potential future delays in the procurement process.

 

Triple Point continue to work actively to increase the value of the Company's electricity generation portfolio through operational improvements in the underlying assets. Other areas where hands-on asset management delivers additional shareholder value is the negotiation of major commercial contracts including the Power Purchase Agreements (PPAs) and operation and maintenance agreements.

 

Triple Point continue to seek to reduce operating costs on a project-by-project basis by, for example, successfully appealing business rates assessments which has delivered significant savings for investee companies.

 

Hydroelectric Power

 

The Company has investments in seven companies which own, either directly or indirectly, hydroelectric schemes in the Scottish Highlands. The ten hydroelectric schemes are all "run of river" plants and each company benefits from government backed Feed-in-Tariff (FiT) payments based on output and from the sale of the electricity produced to utilities or other power companies under PPAs, thereby, avoiding the volatility continuing to be experienced in power markets to ensure regularity of income.

 

The primary means of optimising revenue from, and hence capital value of hydroelectric assets, is to ensure the plant is kept available to generate electricity and to increase the revenue per unit produced. For the period to 30 September 2021, the Scottish Highlands has seen exceptionally low rainfall with some schemes performing significantly below expectation. This is not unexpected as rainfall variability has been factored into the 40-year period of generation. We continue to be pleased with the availability of our hydroelectric schemes.

 

During the six months to 30 September 2021, the hydroelectric companies generated 3,119 MWh of electricity. Based on an average of 3.8 MWh annual use per household, the hydroelectric companies generated enough electricity to power the equivalent of 1,641 homes during the period. In the wider market, power prices are rising and power purchase agreements ("PPAs") entered into by the hydro companies continue to be above the government FiT Export Tariff of 5.50p per kWh. In addition, there continues to be no notable impact of Covid-19 on the maintenance of the hydro schemes and sourcing parts has not been an issue.

 

As set out in the Chair's Statement, the Company has entered into a period of exclusivity for the sale of its portfolio of hydroelectric power assets in the C Share Class, and a partial sale of its hydroelectric power assets in the D and E Share Classes. A sale at this time enables shareholders to capitalise on the current favourable market conditions reflecting low discount rates, scarcity of in demand hydroelectric assets with inflation-linked FiT income, and a long c.15 year remaining FIT period, making these assets attractive to a buyer. Given that this area of the market is relatively niche, several bidders with a strong understanding of small scale run of the river hydroelectric assets were selected and invited into the sale process to optimise value for shareholders. Pleasingly, offers were received from all those invited to bid and the offers were assessed by the Investment Manager and presented to the Board. Bids were assessed based on reference to key criteria of: consideration; conditionality of the bid, and acceptance of the share price agreement terms, with a preferred bidder being chosen. The Investment Manager was pleased with the outcome of the process and will work together with the Board and the preferred bidder with a view to completing the transaction as soon as possible.

 

Crematorium Management

 

The Company has an investment in a business that provides crematory and mercury abatement services for the crematoria of a London Borough. This investment receives revenues from local authorities and has consistently generated a steady return over the years it has been held.

 

Solar

 

The solar portfolios are performing slightly below expectations due to low irradiance period. However, availability has improved across the majority of the portfolio in the six-month period.

 

Vertical Growing

 

The E Share Class has invested in PFC, a company which has constructed a pioneering vertical growing facility. Vertical Growing is the practice of producing food in an indoor growing amenity where all inputs (water, light and nutrients) meet the optimum needs of the crop. Vertical Growing facilities are designed to have a sealed environment, meaning that the product is grown in a controlled manner, with positive air pressure to prevent any contaminants entering the facility. This ensures that insects and other pests cannot access the crop, thus removing the need to use pesticides on the crop being grown. A large variety of produce can be grown, such as herbs and salad leaves.

PFC has made significant progress over the past year, particularly in relation to the strength of its customer base and technological and system developments. Over the coming months various design improvements will be implemented at the facility, with particular focus on irrigation and air movement which should reduce losses through driving improved yields, reducing running costs and lowering energy usage. Production has been temporarily paused whilst the works are carried out, which has been agreed with its customers who are willing to pay a premium for the quality of the product and a desire to have all future yield that can be produced.

The capital-intensive nature of the business means that, even with the support of a key customer and increased certainty of being able to sell substantial volumes of premium product, the company's ambitions can only be realised by securing significant additional third-party funding. Therefore, PFC is now exploring the potential of raising third party finance to fund the build out of a new facility that can meet the increased level of customer demand.

Gas Power

 

The Company has an investment in Green Peak which has constructed a gas fired energy centre. During the six-month period to 30 September 2021, the energy centre generated 5,766 MWh of electricity. Based on an average of 3.76 MWh annual use per household, this was enough electricity for 3,067 homes during the period.

 

The gas fired energy centre was commissioned in May 2018 and consists of containerised gas combustion engines that generate electricity for onward sale, especially at times when there is high demand for power. Although renewable energy makes an increasing contribution to the supply of energy in the UK, the irregular nature of its production means that other sources will continue to be required to make up the deficit. The fast start up times and low running costs of the gas fired energy centre allow them to take advantage of increased energy market volatility caused by the continued penetration of irregular renewables onto the grid. For example, if there is a sudden lull in wind output, prices begin to spike and the energy centre can quickly take a profitable advantage, whilst simultaneously helping balance the grid.

 

There have been operational challenges during the period causing Green Peak to underperform compared with the expected level of energy generation. One of the three engines operated by Green Peak has been offline caused by damage due to a water ingress issue. The damage to this asset has been evaluated by the original manufacturer who will be carrying out the necessary repairs as soon as practically possible. Green Peak has notified its insurers for both the property damage and business interruption for the downtime of the engine. We and the Board are monitoring the progress of repairing the engine and the outcome from the insurers closely.

 

That said, the electricity market has been very favourable over the period, and the company was able to trade its operating engines successfully. Notably Green Peak, with only two operational engines, has returned to achieving gross profits of marginally below the level we would expect with three engines over the six months.

 

Outlook

 

We remain committed to seeking to improve generation and returns of the assets within all share classes and achieving an optimal value for the sale of the hydroelectric assets.

 

If you have any questions, please do not hesitate to call us on 020 7201 8990.

 

Jonathan Parr

Partner, Head of Energy

Triple Point Investment Management LLP

15 November 2021

 

Investment Portfolio Summary

 


Unaudited


Audited


30 September 2021


31 March 2021


        Cost 

     Valuation


        Cost 

     Valuation


£'000

£'000


£'000

£'000











Unquoted qualifying holdings

30,350

81.52

40,062

85.10


30,936

79.89

40,649

83.75

Quoted non-qualifying holdings

-  

-  

-  

-  


570

1.47

558

1.15

Unquoted non-qualifying holdings

6,690

17.97

6,814

14.48


6,690

17.28

6,815

14.03

Financial assets at fair value through profit or loss

37,040

99.49

46,876

99.58


38,196

98.64

48,022

98.93

Cash and cash equivalents

192

0.51

192

0.42


521

1.36

521

1.07


37,232

100.00

47,068

100.00


38,717

100.00

48,543

100.00











Qualifying Holdings










Unquoted










Solar










Digima Limited

1,262

3.39

1,716

3.65


1,262

3.26

1,716

3.54

Digital Screen Solutions Limited

2,020

5.43

2,776

5.90


2,020

5.22

2,776

5.72

Green Energy for Education Limited

400

1.07

1,329

2.82


475

1.23

1,404

2.89

Hydroelectric Power










Elementary Energy Limited

2,060

5.53

2,461

5.23


2,060

5.32

2,461

5.07

Green Highland Allt Choire A Bhalachain (255) Limited

3,130

8.41

3,763

7.99


3,130

8.08

3,763

7.75

Green Highland Allt Ladaidh (1148) Limited

3,400

9.13

4,671

9.92


3,500

9.04

4,771

9.83

Green Highland Allt Luaidhe (228) Limited

1,995

5.36

2,425

5.15


1,995

5.15

2,425

5.00

Green Highland Allt Phocachain (1015) Limited

3,531

9.48

4,589

9.75


3,931

10.15

4,989

10.28

Green Highland Shenval Limited

1,120

3.01

739

1.57


1,120

2.89

739

1.52

Achnacarry Hydro Ltd

4,232

11.37

7,785

16.54


4,243

10.96

7,797

16.06











Gas Power










Green Peak Generation Limited

2,200

5.91

1,339

2.84


2,200

5.68

1,339

2.76

Vertical Growing










Perfectly Fresh Cheshire Limited

5,000

13.43

6,469

13.74


5,000

12.91

6,469

13.33


30,350

81.52

40,062

85.10


30,936

79.89

40,649

83.75

 


Unaudited


Audited


30 September 2021


31 March 2021


        Cost 

     Valuation


        Cost 

     Valuation

Non-Qualifying Holdings

£'000

£'000


£'000

£'000

Quoted










Investment property










Triple Point Social Housing REIT Plc - Equity

-  

-  

-  

-  


570

1.47

558

1.15












-  

-  

-  

-  


570

1.47

558

1.15

Unquoted










Crematorium Management










Furnace Managed Services Limited

488

1.31

113

0.24


488

1.26

113

0.23

Hydroelectric Power










Elementary Energy Limited

140

0.38

140

0.30


140

0.36

140

0.29

SME Funding










Hydroelectric Power:










Broadpoint 2 Limited

1,334

3.58

1,448

3.08


1,334

3.45

1,449

2.98

Broadpoint 3 Limited

2,010

5.40

2,010

4.27


2,010

5.19

2,010

4.14

Other:










Aeris Power Limited

518

1.39

602

1.28


518

1.34

602

1.24

Funding Path Limited

2,200

5.91

2,501

5.31


2,200

5.68

2,501

5.15












6,690

17.97

6,814

14.48


6,690

17.28

6,815

14.03

 

Principal Risks and Uncertainties

 

The Audit Committee, which assists the Board with its responsibilities for managing risk, considers that the principal risks and uncertainties as presented on pages 22 and 23 of our 2021 Annual Report were unchanged during the period and will remain unchanged for the remaining six months of the financial year.

 

 

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 six month period to 30 September 2021, the Directors confirm that, to the best of their knowledge, this condensed set of financial statements has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union and that the Chair's statement on pages 6 to 11 includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8 of the Disclosure and Transparency rules of the United Kingdom's Financial Conduct Authority namely:

 

a)     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 specific risks and uncertainties for the remainder of the accounting period;

b)    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; 

c)     the Interim Financial Report includes a fair review of related party transactions and changes therein. There were no related party transactions for the accounting period; and

d)    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 expectations 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 Company's auditor.

 

David Frank

Chair

15 November 2021

 

Unaudited Statement of Comprehensive Income

 



Unaudited


Audited


Unaudited



Six months ended


Year ended


Six months ended



30 September 2021


31 March 2021


 30 September 2020


Note

Revenue

Capital

Total


Revenue

Capital

Total


Revenue

Capital

Total



£'000

£'000

£'000


£'000

£'000

£'000


£'000

£'000

£'000

Income













Investment income

4

937

-  

937


2,274

-  

2,274


1,285

-  

1,285

Loss arising on the disposal of investments during the year


-  

4

4


-  

(204)

(204)


-  

(204)

(204)

Gain/(loss) arising on the revaluation of investments at the year end


-  

12

12


-  

(173)

(173)


-  

414

414














Investment return


937

16

953


2,274

(377)

1,897


1,285

210

1,495














Investment management fees

5

349

116

465


708

236

944


362

121

483

Other expenses


227

-  

227


402

5

407


193

-  

193

Finance costs


52

-  

52


104

-  

104


52

-  

52
















628

116

744


1,214

241

1,455


607

121

728














Profit before taxation


309

(100)

209


1,060

(618)

442


678

89

767














Taxation

7

(50)

22

(28)


(125)

46

(79)


(73)

23

(50)














Profit after taxation


259

(78)

181


935

(572)

363


605

112

717














Other comprehensive income


-  

-  

-  


-  

-  

-  


-  

-  

-  














Total comprehensive income


259

(78)

181


935

(572)

363


605

112

717














Basic and diluted earnings/(loss) per share (pence)


























C Share

8

0.16p

(0.17p)

(0.01p)


2.27p

(0.34p)

1.93p


2.00p

(0.17p)

1.83p














D Share

8

0.86p

(0.12p)

0.74p


2.35p

(0.27p)

2.08p


1.21p

(0.12p)

1.09p














E Share

8

0.42p

(0.14p)

0.28p


1.08p

(1.69p)

(0.61p)


0.59p

0.52p

1.11p
















1.44p

(0.43p)

1.01p


5.70p

(2.30p)

3.40p


3.80p

0.23p

4.03p














 

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.

 

Unaudited Balance Sheet

 

 



Unaudited


Audited


Unaudited



30 September 2021


31 March 2021


 30 September 2020


Note

£'000


£'000


£'000








Non-current assets







Financial assets at fair value through profit or loss


46,876


48,022


48,096








Current assets







Receivables


1,338


984


1,239

Cash and cash equivalents

9

192


521


610



1,530


1,505


1,849








Total Assets


48,406


49,527


49,945








Current liabilities







Payables and accrued expenses


636


452


447

Current taxation payable


122


93


162

Short-term debt facility


2,300


2,300


2,300



3,058


2,845


2,909








Net Assets

45,348


46,682


47,036








Equity attributable to equity holders of the parent







Share capital


560


560


560

Share redemption reserve


1


1


1

Share premium


28,661


28,661


28,661

Special distributable reserve


9,069


10,555


10,855

Capital reserve


6,814


6,892


6,957

Revenue reserve


243


13


2

Total equity


45,348


46,682


47,036








Shareholder' funds














C Share

10

81.56p


83.30p


83.20p








D Share

10

58.57p


59.59p


58.60p








E Share

10

91.38p


94.59p


96.31p

 

The Statements were approved by the Directors and authorised for issue on 15 November 2021 and are signed on their behalf by:

 

David Frank

Chair

15 November 2021

 

The accompanying notes are an integral part of this statement.

 

Unaudited 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

Six months ended 30 September 2021








Opening balance

560

1

28,661

10,555

6,892

13

46,682

Issue of new shares

-  

-  

-  

-  

-  

-  

-  

Purchase of own shares

-  

-  

-  

-  

-  

(29)

(29)

Dividends paid

-  

-  

-  

(1,486)

-  

-

(1,486)

Transactions with owners

-

-

-  

(1,486)

-  

(29)

(1,515)

Profit for the year

-  

-  

-  

-  

(78)

259

181

Other comprehensive income

-  

-  

-  

-  

-  

-  

-  

Profit and total comprehensive income for the year

-  

-  

-  

-  

(78)

259

181

Balance at 30 September 2021

560

1

28,661

9,069

6,814

243

45,348

Capital reserve consists of:








Investment holding gains





9,838



Other realised losses





(3,024)








6,814



Year ended 31 March 2021








Opening balance

561

-  

28,661

12,960

6,845

380

49,407

Purchase of own shares

(1)

1

-

-

-

(51)

(51)

Dividends paid

-  

-  

-  

(2,405)

-  

(632)

(3,037)

T/f revenue to unrealised

-

-

-

-

619

(619)

-

Transactions with owners

(1)

1

-  

(2,405)

619

(1,302)

(3,088)

Profit for the year

-  


-  

-  

(572)

935

363

Profit and total comprehensive income for the year

-  


-  

-  

(572)

935

363

Balance at 31 March 2021

560

1

28,661

10,555

6,892

13

46,682

Capital reserve consists of:








Investment holding gains





9,826



Other realised losses





(2,934)








6,892



Six months ended 30 September 2020








Opening balance

561

-  

28,661

12,960

6,845

380

49,407

Purchase of own shares

(1)

1




(51)

(51)

Dividends paid

-  

-  

-  

(2,105)  

-  

(932)

(3,037)

Transactions with owners

(1)  

1  

-  

(2,105)  

-  

(983)

(3088)

(Loss)/profit for the period

-  

-  

-  

-  

112

605

717

(Loss)/profit and total comprehensive income for the period

-  

-  

-  

-  

112

605

717

Balance at 30 September 2020

560

1

28,661

10,855

6,957

2

47,036

Capital reserve consists of:








Investment holding gains





9,794



Other realised losses





(2,837)







6,957



 

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 unrealised capital reserve, share redemption reserve and share premium reserve are not distributable. The special distributable reserve was created on court cancellation of the share premium account. The revenue, special distributable and realised capital reserves are distributable by way of dividend.

 

At 30 September 2021 the total reserves available for distribution were £8,021,000. This consisted of the distributable revenue reserve, net of the realised capital loss, plus the special distributable reserve.

 

Unaudited Statement of Cash Flows

 


Unaudited


Audited


Unaudited

Six months ended


Year ended


Six months ended


30 September 2021


31 March 2021


30 September 2020


£'000


£'000


£'000

Cash flows from operating activities






Profit before taxation

209


442


767  

Adjustments for:






Add back financing costs

52


104


-

Transfer from revenue reserve to unrealised capital reserve

-


(619)


-

(Gain) arising on the disposal of investments during the period

(4)


204


204

(Gain) arising on the revaluation of investments at the period end

(12)


173


(414)

Cashflow generated by operations

245


304


557

(Increase)/decrease in receivables

(352)


(198)


(452)

Increase in payables

184


22


18

Cash flows from operating activities

77


128


                         123

Tax paid

1  


(98)


-  

Net cash flows from operating activities

78


30


123







Cash flow from investing activities






Purchase of financial assets at fair value through profit or loss

-  


-  


-  

Proceeds of sale of financial assets at fair value through profit or loss

1,160


2,982


2,875

Net cash flows from investing activities

1,160


2,982


2,875







Cash flows from financing activities






Issue of new shares

-  


-  


-  

Repayment of capital

(29)


(51)


(51)

Dividends paid

(1,486)


(3,037)


(3,037)

Proceeds from short-term debt

(52)


(104)


-  

Net cash flows from financing activities

(1,567)  


(3,192)  


(3,088)

Net (decrease)/increase in cash and cash equivalents

(329)


(5,487)


(90)

Reconciliation of net cash flow to movements in cash and cash equivalents






Opening cash and cash equivalents

521


701


701

Net (decrease)/increase in cash and cash equivalents

(329)


(180)


(90)

Closing cash and cash equivalents

192


521


611

 

The accompanying notes are an integral part of this statement.

 

Unaudited Non-Statutory Analysis - The C Share Fund

 

Statement of Comprehensive Income









Six months ended


Year ended


Six months ended



30 September 2021


31 March 2021


 30 September 2020



Revenue

Capital

Total


Revenue

Capital

Total


Revenue

Capital

Total



£'000

£'000

£'000


£'000

£'000

£'000


£'000

£'000

£'000

Investment income


170

-  

170


602

-  

602


418

-  

418

Unrealised gain on investments


-  

-  

-  


-  

-  

-  


-  

-  

-  

Investment return


170

-  

170


602

-  

602


418

-  

418

Investment management fees


(108)

(28)

(136)


(217)

(56)

(273)


(109)

(28)

(137)

Other expenses


(37)

-  

(37)


(62)

-  

(62)


(26)

-  

(26)

Profit before taxation


25

(28)

(3)


323

(56)

267


283

(28)

255

Taxation


(4)

5

1


(20)

11

(9)


(12)

5

(7)

Profit after taxation


21

(23)

(2)


303

(45)

258


271

(23)

248

Profit and total comprehensive

income for the period


21

(23)

(2)


303

(45)

258


271

(23)

248

Basic and diluted earnings/(loss)

per share


0.16p

(0.17p)

(0.01p)


2.27p

(0.34p)

1.93p


2.00p

(0.17p)

1.83p














Balance Sheet


Six months ended



Year ended


Six months ended



30 September 2021


31 March 2021


 30 September 2020





£'000




£'000




£'000

Non-current assets













Financial assets at fair value

through profit or loss




11,035




11,244




11,342














Current assets













Receivables




272




252




202

Cash and cash equivalents




99




120




92





371




372




294

Current liabilities













Payables




(162)




(113)




(108)

Corporation tax




(8)




(9)




(44)

Short-term debt facility




(300)




(300)




(300)  

Net assets




10,936




11,194




11,184














Equity attributable to equity holders




10,936




11,194




11,184

Net asset value per share




81.56p




83.30p




83.20p



























Statement of Changes in


Six months ended



Year ended


Six months ended

Shareholders' Equity


30 September 2021



31 March 2021


 30 September 2020





£'000




£'000




£'000














Opening shareholders' funds




11,194




11,406




11,406

Purchase of own shares




(21)




-




-

Profit for the period




(2)




258




248

Dividends paid




(235)




(470)




(470)

Closing shareholders' funds




10,936




11,194




11,184

 

Investment Portfolio

30 September 2021


31 March 2021


        Cost 

     Valuation


        Cost 

     Valuation


£'000

£'000


£'000

£'000











Unquoted qualifying holdings

7,176

98.64

11,035

99.11


7,384

98.40

11,244

98.95

Unquoted non-qualifying holdings

-  

-  

-  

-  


-  

-  

-  

-  

Financial assets at fair value through profit or loss

7,176

98.64

11,035

99.11


7,384

98.40

11,244

98.95

Cash and cash equivalents

99

1.36

99

0.89


120

1.60

120

1.05


7,275

100.00

11,134

100.00


7,504

100.00

11,364

100.00











Qualifying Holdings










Unquoted










Hydro Electric Power










Green Highland Allt Choire A Bhalachain (255) Limited

2,466

33.90

2,965

26.63


2,466

32.86

2,965

26.09

Green Highland Allt Phocachain (1015) Limited

1,376

18.91

1,936

17.39


1,576

21.00

2,136

18.80

Achnacarry Hydro Ltd

3,334

45.83

6,134

55.09


3,342

44.54

6,143

54.06


7,176

98.64

11,035

99.11


7,384

98.40

11,244

98.95





















 

Unaudited Non-Statutory Analysis - The D Share Fund

 

 

Statement of Comprehensive Income









Six months ended


Year ended


Six months ended



30 September 2021


31 March 2021


 30 September 2020



Revenue

Capital

Total


Revenue

Capital

Total


Revenue

Capital

Total



£'000

£'000

£'000


£'000

£'000

£'000


£'000

£'000

£'000

Investment income


289

-  

289


676

-  

676


345

-  

345

Unrealised gain on investments


-  

-  

-  


-  

-  

-  


-  

-  

-  

Investment return


289

-  

289


676

-  

676


345

-  

345

Investment management fees


(118)

(20)

(138)


(236)

(46)

(282)


(119)

(21)

(140)

Other expenses


(28)

-  

(28)


(45)

-  

(45)


(23)

-  

(23)

Profit/(loss) before taxation


143

(20)

123


395

(46)

349


203

(21)

182

Taxation


(27)

4

(23)


(75)

9

(66)


(39)

4

(35)

Profit after taxation


116

(16)

100


320

(37)

283


164

(17)

147

Profit and total comprehensive income for the period


116

(16)

100


320

(37)

283


164

(17)

147

Basic and diluted earnings/(loss) per share


0.86p

(0.12p)

0.74p


2.35p

(0.27p)

2.08p


1.21p

(0.12p)

1.09p














Balance Sheet


Six months ended


Year ended


Six months ended



30 September 2021


31 March 2021


 30 September 2020





£'000




£'000




£'000

Non-current assets













Financial assets at fair value through profit or loss




9,736




10,036




10,036














Current assets













Receivables




570




206




88

Cash and cash equivalents




(125)




17




28





445




223




116

Current liabilities













Payables




(123)




(86)




(78)

Corporation tax




(90)




(67)




(104)

Short-term debt facility




(2,000)




(2,000)




(2,000  

Net assets




7,968




8,106




7,970














Equity attributable to equity holders




7,968




8,106




7,970

Net asset value per share




58.57p




59.59p




58.60p



























Statement of Changes in


Six months ended



Year ended


Six months ended

Shareholders' equity


30 September 2021



31 March 2021


 30 September 2020





£'000




£'000




£'000














Opening shareholders' funds




8,106




8,559




8,559

Purchase of own shares




-




(51)  




(51)  

Profit for the period




100




283




147

Dividends paid




(238)




(685)




(685)

Closing shareholders' funds




7,968




8,106




7,970

 

Investment Portfolio

30 September 2021


31 March 2021


        Cost 

     Valuation


        Cost 

     Valuation


£'000

£'000


£'000

£'000











Unquoted qualifying holdings

7,947

101.60

9,736

101.30


8,247

99.80

10,036

99.83

Unquoted non-qualifying holdings

-  

-  

-  

-  


-  

-  

-  

-  

Financial assets at fair value through profit or loss

7,947

101.60

9,736

101.30


8,247

99.80

10,036

99.83

Cash and cash equivalents

(125)

(1.60)

(125)

(1.30)


17

0.20

17

0.17


7,822

100.00

9,611

100.00


8,264

100.00

10,053

100.00











Qualifying Holdings










Unquoted










Hydro Electric Power










Elementary Energy Limited

337

4.31

380

3.95


337

4.08

380

3.78

Green Highland Allt Ladaidh (1148) Limited

3,274

41.86

4,522

47.05


3,374

40.83

4,622

45.98

Green Highland Allt Luaidhe (228) Limited

1,918

24.52

2,341

24.36


1,918

23.21

2,341

23.29

Green Highland Allt Phocachain (1015) Limited

1,657

21.18

1,991

20.72


1,857

22.47

2,191

21.79

Green Highland Shenval Limited

761

9.73

502

5.22


761

9.21

502

4.99


7,947

101.60

9,736

101.30


8,247

99.80

10,036

99.83











 

Non-Statutory Analysis - The E Share Fund

 

Statement of Comprehensive Income








Six months ended


Year ended


Six months ended



30 September 2021


31 March 2021


 30 September 2020



Revenue

Capital

Total


Revenue

Capital

Total


Revenue

Capital

Total



£'000

£'000

£'000


£'000

£'000

£'000


£'000

£'000

£'000

Investment income


478

-  

478


996

-  

996


522

-  

522

Realised gain on investments


-  

4

4


-  

(204)

(204)


-  

(204)

(204)

Unrealised loss on investments


-  

12

12


-  

(173)

(173)


-  

414

414

Investment return


478

16

494


996

(377)

619


522

210

732

Investment management fees


(245)

(68)

(313)


(502)

(139)

(641)


(258)

(72)

(330)

Other expenses


(92)

-  

(92)


(152)

-  

(152)


(72)

-  

(72)

Profit/(loss) before taxation


141

(52)

89


342

(516)

(174)


192

138

330

Taxation


(19)

13

(6)


(30)

26

(4)


(22)

14

(8)

Profit/(loss) after taxation


122

(39)

83


312

(490)

(178)


170

152

322

Profit/(loss) and total comprehensive income for the period


122

(39)

83


312

(490)

(178)


170

152

322

Basic and diluted earnings/(loss) per share


0.42p

(0.14p)

0.28p


1.08p

(1.69p)

(0.61p)


0.59p

0.52p

1.11p














Balance Sheet


Six months ended


Year ended


Six months ended



30 September 2021


31 March 2021


 30 September 2020





£'000




£'000




£'000

Non-current assets













Financial assets at fair value through profit or loss




26,105




26,742




26,718














Current assets













Receivables




496




526




949

Cash and cash equivalents




218




384




491





714




910




1,440

Current liabilities













Payables




(351)




(253)




(262)

Corporation tax




(24)




(17)




(14)

Net assets




26,444




27,382




27,882














Equity attributable to equity holders




26,444




29,442




27,882

Net asset value per share




91.38p




94.59p




96.31p



























Statement of Changes in


Six months ended



Year ended


Six months ended

Shareholders' equity


30 September 2021



31 March 2021


 30 September 2020





£'000




£'000




£'000














Opening shareholders' funds




27,382




29,442




29,442

Purchase of own shares




(8)




-




-

Profit for the period




83




(178)




322

Dividends paid




(1,013)




(1,882)




(1,882)

Closing shareholders' funds




26,444




27,382




27,882

 

Investment Portfolio

30 September 2021


31 March 2021


        Cost 

     Valuation


        Cost 

     Valuation


£'000

£'000


£'000

£'000











Unquoted qualifying holdings

15,227

68.80

19,291

73.30


15,305

66.70

19,369

71.41

Quoted non-qualifying holdings

-  

-  

-  

-  


570

2.48

558

2.06

Unquoted non-qualifying holdings

6,690

30.22

6,814

25.89


6,690

29.16

6,815

25.13

Financial assets at fair value through profit or loss

21,917

99.02

26,105

99.19


22,565

98.34

26,742

98.60

Cash and cash equivalents

218

0.98

218

0.81


384

1.66

384

1.40


22,135

100.00

26,323

100.00


22,949

100.00

27,126

100.00











Qualifying Holdings










Unquoted










Solar










Digima Limited

1,262

5.70

1,716

6.52


1,262

5.50

1,716

6.33

Digital Screen Solutions Limited

2,020

9.13

2,776

10.55


2,020

8.80

2,776

10.23

Green Energy for Education Limited

400

1.81

1,329

5.05


475

2.07

1,404

5.18

Hydro Electric Power










Elementary Energy Limited

1,723

7.78

2,081

7.91


1,723

7.51

2,081

7.67

Green Highland Shenval Limited

359

1.62

237

0.90


359

1.56

237

0.87

Green Highland Allt Choire A Bhalachain (255) Limited

664

3.00

798

3.03


664

2.89

798

2.94

Green Highland Allt Ladaidh (1148) Limited

126

0.57

149

0.57


126

0.55

149

0.55

Green Highland Allt Luaidhe (228) Limited

77

0.35

84

0.32


77

0.34

84

0.31

Green Highland Allt Phocachain (1015) Limited

498

2.25

662

2.51


498

2.17

662

2.44

Achnacarry Hydro Ltd

898

4.06

1,651

6.27


901

3.93

1,654

6.10

Gas Power










Green Peak Generation Limited

2,200

9.94

1,339

5.09


2,200

9.59

1,339

4.94

Vertical Growing










Perfectly Fresh Cheshire Limited

5,000

22.59

6,469

24.58


5,000

21.79

6,469

23.85












15,227

68.80

19,291

73.30


15,305

66.70

19,369

71.41











Non-Qualifying Holdings










Quoted










Investment Property










Triple Point Social Housing REIT Plc - Equity

-  

-  

-  

-  


570

2.48

558

2.06












-  

-  

-  

-  


570

2.48

558

2.06

Unquoted










Crematorium Management










Furnace Managed Services Limited

488

2.20

113

0.43


488

2.13

113

0.42

Hydro Electric Power










Elementary Energy Limited

140

0.63

140

0.53


140

0.61

140

0.52

SME Funding










Hydroelectric Power:










Broadpoint 2 Limited

1,334

6.03

1,448

5.50


1,334

5.81

1,449

5.34

Other:










Funding Path Limited

2,200

9.94

2,501

9.50


2,200

9.59

2,501

9.22

Aeris Power Limited

518

2.34

602

2.29


518

2.26

602

2.22

Broadpoint 3 Limited

2,010

9.08

2,010

7.64


2,010

8.76

2,010

7.41












6,690

30.22

6,814

25.89


6,690

29.16

6,815

25.13

 

 

Condensed Notes to the Unaudited Interim Financial Statements

 

1.           Corporate information             

                                                                                                                     

The Interim Report of the Company for the six months ended 30 September 2021 was authorised for issue in accordance with a resolution of the Directors on 15 November 2021.

 

The Company is listed on the London Stock Exchange.

 

Triple Point Income VCT plc is incorporated and domiciled in Great Britain. The address of the Company's registered office, which is also its principal place of business, is 1 King William Street, London, EC4N 7AF.

 

The Company is required to nominate a functional currency, being the currency in which the Company predominately operates. The functional and reporting currency is pounds sterling (£), reflecting the primary economic environment in which the Company operates.

 

The principal activity of the Company is investment. The Company's investment strategy is to offer combined exposure to cash or cash-based funds and venture capital investments focused on companies with contractual revenues from financially secure counterparties.

 

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

                  

2.           Basis of preparation and accounting policies                                      

                                                                                                                                        

Basis of preparation

 

The Interim Report of the Company for the six months ended 30 September 2021 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 Annual Report. 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 2021.

 

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 Directors are of the opinion that the Company only has a single operating segment of business, being investment activity.

 

All revenues and assets are generated and held in the UK.

 

4.                Investment income


C Shares

D Shares

E Shares


Total

Unaudited

£'000

£'000

£'000


£'000

Six months ended 30 September 2021






Loan stock interest

164

289

438


891

Dividends receivable

6

-  

40


46

Other Investment Income

-  

-  

-  


-  

Property Income

-  

-  

-  


-  


170

289

478


937

Audited






Year ended 31 March 2021






Loan stock interest

382

676

860


1,918

Dividends receivable

220

-  

99


319

Interest receivable on bank balances

-  

-  

-  


-  

Other Investment Income

-  

-  

22


22

Property Income

-  

-  

15


15


602

676

996


2,274

 

5.           Investment management fees

 

TPIM provides investment management and administration services to the Company under an Investment Management Agreement effective 6 February 2008 and deeds of variation to that agreement effective 21 November 2012, 28 October 2014, 7 October 2016 and an amended and restated investment management and administration agreement dated 27 April 2020.

 

C shares: The agreement provides for an administration and investment management fee of 2% per annum of net assets payable quarterly in arrear for an appointment of at least six years from the admission of those shares. Subject to distributions to the C Shareholders exceeding the C Share hurdle, the Investment Manager will be entitled to a performance incentive fee of 20%.

 

D shares: The agreement provides for an administration and investment management fee of 2% per annum of net assets payable quarterly in arrear for an appointment of at least six years from the admission of those shares. Subject to distributions to the D Shareholders exceeding the D Share hurdle, the Investment Manager will be entitled to a performance incentive fee of 20%.

 

E shares: The agreement provides for an administration and investment management fee of 2% per annum of net assets payable quarterly in arrear for an appointment of at least six years from the admission of those shares. Subject to distributions to the E Shareholders exceeding the E Share hurdle, the Investment Manager will be entitled to a performance incentive fee of 20%.

 

There have been no performance fees paid to date

 

An administration fee equal to 0.25% per annum of the Company's net assets is payable quarterly in arrears.

 

6.           Directors' remuneration

 


C Shares

D Shares

E Shares


Total

 

Unaudited

£'000

£'000

£'000


£'000

 

Six months ended 30 September 2021





David Frank

3

2

6


11



Simon Acland

3

2

6


11



Michael Stanes

2

2

7


11




8

6

19


33



Audited








Year ended 31 March 2021








David Frank

6

4

14


24



Simon Acland

5

4

12


21



Michael Stanes

5

3

13


21




16

11

39


66



 

The only remuneration received by the Directors was their Directors' fees. The Company has no employees other than the Non-Executive Directors. The number of Non-Executive Directors in the period was three.

 

7.           Taxation


C Shares

D Shares

E Shares


Total

Unaudited

£'000

£'000

£'000


£'000

Six months ended 30 September 2021






Profit on ordinary activities before tax

(3)

123

89


209







Corporation tax @ 19%

-  

23

17


40

Effect of:






Capital (gains) not taxable

-  

-  

(3)


(3)

Income received not taxable

(1)

-  

(8)


(9)

Tax charge

(1)

23

6


28







Audited






Year ended 31 March 2021






Profit on ordinary activities before tax

267

349

(174)


442







Corporation tax @ 19%

51

66

(33)


84

Effect of:






Capital (gains)/losses not taxable

-  

-  

72


72

Income received not taxable

(42)

-  

(19)


(61)

Unrelieved tax losses arising in the year

-  

-  

-  


-  

Prior year adjustment

-  

-  

(16)


(16)

Tax charge

9

66

4


79

 

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

 

8.           Earnings per share

 

 

The earnings per share for C Shares is based on the loss after tax of c.£1,200, and on the weighted average number of shares in issue during the period of 13,413,088, which is equal to the number of shares at 30 September 2021.

 

The earnings per share for D Shares is based on the profit after tax of c.£100,000, and on the weighted average number of shares in issue during the period of 13,604,637, which is equal to the number of shares at 30 September 2021.

 

The earnings per share for E Shares is based on the profit after tax of c.£84,000, and on the weighted average number of shares in issue during the period of 28,940,076, which is equal to the number of shares at 30 September 2021.

 

9.           Cash and cash equivalents

 

Cash and cash equivalents comprise deposits with The Royal Bank of Scotland plc.

 

10.         Net asset value per share

 

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 c.£10,939,000 divided by the 13,413,088 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 c.£7,968,000 divided by the 13,604,637 D Shares in issue.

 

The calculation of the Company's net asset value per share for E Shares is based on the Company's net assets attributable to the E Shares of £26,444,000 divided by the 28,940,076 E Shares in issue.

 

11.         Commitments and contingencies                                                                                     

                                                                                                                                          

The Company had no commitments or contingent liabilities at 30 September 2021.

 

12.         Relationship with Investment Manager                          

 

During the period, TPIM charged £467,428 (which has been expensed by the Company) for providing management services to the Company.

 

Fees paid to the Investment Manager for administrative and Company Secretarial services during the period were £70,000.

 

At 30 September 2021 £499,784 was due to TPIM.

 

13.         Related party transactions                         

 

There are no related party transactions.

 

14.         Dividends

 

C Shares:

The Company paid a dividend to C Class Shareholders of £234,729, equal to 1.75 pence per share, on 30 July 2021.

 

D Shares:

The Company paid a dividend to D Class Shareholders of £238,081, equal to 1.75 pence per share, on 30 July 2021.

 

E Shares:

The Company paid a dividend to E Class Shareholders of £1,012,903, equal to 3.5 pence per share, on 30 July 2021.

 

 

 

 

 

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