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.