TIDMBNS
RNS Number : 3186P
Baronsmead VCT 4 PLC
15 August 2014
Baronsmead VCT 4 plc
Half Yearly Financial Report
30 June 2014
The Directors announce the unaudited half-yearly financial
report for the six months to 30 June 2014 as follows:
Investment Objective
Baronsmead VCT 4 is a tax efficient listed company which aims to
achieve long-term investment returns for private investors.
Investment policy
-- To invest primarily in a diverse portfolio of VCT qualifying
UK growth businesses, whether unquoted companies or traded on
AIM.
-- Investments are made selectively across a range of sectors in
companies that have the potential to grow and enhance their
value.
Dividend policy
The Board of Baronsmead VCT 4 has the objective to sustain a
progressive dividend policy for shareholders but this depends
primarily on the level of profitable realisations and it cannot be
guaranteed. There may be variations in the amount of dividends paid
year on year.
Share price discount policy
The Company buys back its shares if, in the opinion of the
Board, a repurchase would be in the best interests of the Company's
shareholders as a whole. Shares are bought back through the market
rather than directly from shareholders. This minimises the number
of shares bought back by the Company while maximising the
opportunity for investors to invest in the Company's existing
shares.
The Board's current policy is to seek to maintain a mid share
price discount of approximately 5 per cent to net asset value,
depending on market conditions at the time.
Shareholder choice
The Board wishes to provide shareholders with a number of
choices that enable them to utilise their investment in Baronsmead
VCT 4 in ways that best suit their personal investment and tax
planning and in a way that treats all shareholders equally.
-- Fund raising | From time to time the Company seeks to raise
additional funds by issuing new shares at a premium to the latest
published net asset value to account for issue costs. On 24
February 2014, the Company's offer for subscription to raise GBP10
million (GBP9.7 million after costs) was fully subscribed
-- Dividend Reinvestment Plan | The Company offers a Dividend
Reinvestment Plan which enables shareholders to purchase additional
shares through the market in lieu of cash dividends. Approximately
447,000 shares were bought in this way between 1 January 2014 and
30 June 2014.
-- Buy back of shares | From time to time the Company buys its
own shares through the market in order to maintain a mid share
price discount of approximately 5 per cent to net asset value. In
the six months to 30 June 2014, 480,000 shares were bought back
representing 0.6 per cent of the shares in issue at 30 June 2014 at
prices which represented an average discount of 6 per cent to the
latest published net asset values.
-- Secondary market | The Company's shares are listed on the
London Stock Exchange and can be bought using a stockbroker or
authorised share dealing service in the same way as shares of any
other listed company. In addition to the shares bought by
participants of the Dividend Reinvestment Plan, approximately
133,000 shares were bought by investors in the Company's existing
shares in the six months ended 30 June 2014.
FINANCIAL HIGHLIGHTS
-- +3.7% - Net asset value ("NAV") per share increased 3.7 per
cent to 103.76p in the six months ended 30 June 2014 before
deduction of dividends.
-- 6.0p - Dividends totalled 6.0p for the six months to 30 June 2014.
-- 208.1p - NAV total return to shareholders for every 100.0p invested at launch.
-- GBP1.8m - GBP1.1m unquoted investments and GBP0.7m quoted
investments made in the six months to 30 June 2014.
Cash Returned to Shareholders
The table below shows the cash returned to shareholders
dependent on their subscription cost, including their income tax
reclaimed on subscription.
Income Net Cumulative
Subscription tax cash dividends Net annual Gross
Year subscribed price reclaim invested paid* yield+/- yield
p p p p % %
2002 100.0 20.0 80.0 72.0 7.2% 9.6%
2006 (C shares) 100.0 40.0 60.0 51.0 10.2% 13.7%
2010 (March) 95.9 28.8 67.1 34.0 11.7% 15.6%
2012 (December) 107.5 32.3 75.2 17.0 14.9% 19.9%
2013 (March) 102.7 30.8 71.9 13.0 13.9% 18.5%
Note - The total return could be higher for those shareholders
who were able to defer a capital gain on subscription and the net
sum invested may be less.
++ Net annual yield represents the cumulative dividends paid
expressed as an annualised percentage of the net cash invested.
The gross equivalent yield if the dividends had been subject to
the higher rate of tax on dividends (currently 32.5 per cent). The
gross equivalent yield based on additional rate of tax on dividends
(37.5 per cent from the 2013/14 tax year), has not been included.
For those shareholders who earn over GBP150,000 per tax year and
who would otherwise pay this additional rate of tax on dividends,
the gross equivalent yield will be higher than the figures stated
above.
**Dividends paid to C shareholders post conversion have been
adjusted by the conversion ratio (1.0372828).
Chairman's Statement
I am delighted to report an uplift of 3.70p in the underlying
Net Asset Value per share for the six months to 30 June 2014 before
interim dividends. This was largely attributable to an increase in
valuation of the quoted portfolio. Following the profitable
realisation of several older investments in the latter half of
2013, an interim dividend of 6p a share was paid on 7 March
2014.
Results and Dividends
The NAV increased during the period from 100.06p to 103.76p per
share before taking account of the interim dividend of 6p paid on 7
March 2014.
Pence per
ordinary
share
------------------------------------------ ----------
NAV as at 1 January 2014 100.06
Valuation uplift (3.7 per cent) 3.70
------------------------------------------ ----------
NAV as at 30 June 2014 before dividends 103.76
------------------------------------------ ----------
Less:
Interim dividend paid on 7 March
2014 (6.00)
------------------------------------------ ----------
NAV as at 30 June 2014 after paying
dividends 97.76
------------------------------------------ ----------
The increase in the value of the AIM portfolio of 8.5 per cent
is a welcome reward for the Company's investment strategy sustained
through the uncertain market conditions in recent years.
Investments are now concentrated in business sectors where ISIS has
a strong position and in those companies where ISIS can have
strategic influence at Board level.
The unquoted portfolio valuation increased by 2.8 per cent
during the period. This modest rise is a reflection of the youth of
the current portfolios following the recent disposals of several of
our more mature holdings.
The Company has paid annual dividends of 7.0p per share for the
last seven years: typically 3.0p per share at the half year and a
further dividend of 4.0p per share at the full year. The interim
dividend of 6.0p per share paid in March 2014 by itself represents
almost an entire year's annual dividend. However, in the absence of
unforeseen circumstances, it is anticipated that a second interim
dividend will be paid during September 2014.
Long Terms Performance
The Company's objective continues to be focused on generating
consistent returns over the long-term through investing in a
portfolio of small unquoted and AIM traded companies with strong
growth prospects.
In the last six months the NAV total return for each 100p
invested in Baronsmead VCT 4 has increased to 192.43p over ten
years (208.13p since launch in 2001) without taking VCT tax reliefs
into account. Cumulative tax free dividends in the past ten years
have been 68.8p per share (72.0p per share for founder shareholders
since launch).
Portfolio Review
At 30 June 2014, the Company had investments in 67 unquoted and
AIM-traded companies.
Investment and Divestment Activity
Following a busy period of investment activity in the six months
to 31 December 2013, the six months under review was more muted. A
total of GBP1.8 million was invested in 3 new and 5 follow-on
investments.
Divestment activity has remained steady with GBP4.4 million
realised from sales during the period under review. From the
unquoted portfolio, the gains realised from the successful sale of
Inspired Thinking Group Limited were largely offset by the loss
from the sale of Empire World Trade Limited.
The Manager has begun the process of consolidating the gains
achieved in the quoted portfolio by taking partial realisations
from a number of the stronger investments and has achieved
realisations of approximately 1.4 times cost in the period.
The tables below provide further information concerning the
Company's investments and divestments during the period.
Shareholder Matters
Fundraising
An offer for subscription to raise gross proceeds of up to GBP10
million before expenses was launched on 22 January 2014. I am very
pleased to report that the Company's offer was fully subscribed by
24 February 2014, raising GBP9.7 million net of expenses. On behalf
of the Board of Directors, I would like to thank the 450 existing
shareholders and extend a very warm welcome to the 600 new
shareholders who subscribed to this fundraising.
VCT legislation & regulation
New legislation, effective from 6 April 2014, prevents the use
of "Enhanced Share Buy Backs" by VCTs and restricts the
availability of upfront VCT income tax relief if a shareholder
sells and re-invests in new shares within a six month period in the
same VCT. Rather than using Enhanced Share Buy Back arrangements,
the Board has always preferred to create an orderly market for all
shareholders through maintaining a narrow share price discount. As
a result, this legislation will not have an impact on the
Company.
In addition, legislation has been introduced to prevent VCTs
from paying dividends out of distributable reserves created by
cancelling the share premium account within three years of the date
of the allotment of new shares and is intended to prevent the
return of capital to shareholders before profits are generated from
investments. As the Company already has significant distributable
reserves, these new rules are not expected to affect future
dividend distributions.
The European Commission has undertaken a review of state aid
regulations and the risk capital guidelines under which VCTs are
approved at the European level. The new guidelines support the
provision of investment incentives for small and medium
enterprises. HM Treasury and HMRC have recently published a
consultation document to ensure that the VCT scheme continues to
work well and maintains the receipt of approval from the European
Commission.
We welcome the UK government's commitment to ensuring that VCTs
continue to channel investment into smaller companies that are an
essential part of the UK's future prosperity. Our trade
association, the AIC and the Manager are engaged in the
consultation process and will actively respond to the questions
raised in the consultation.
Management Arrangements
Having considered the impact on your Company of the Alternative
Investment Fund Managers Directive, an EU Directive that came into
force in July 2013 and, having taken professional advice, the Board
applied for the Company to become authorised as an Alternative
Investment Fund Manager (AIFM) on 1 June 2014. The legislation
provides that AIFMs that manage assets under EUR500 million can
take advantage of a light touch regime which only imposes minimal
additional reporting requirements on the AIFM, thereby minimising
the cost of compliance with this Directive. The Company is able to
take advantage of this regime and was authorised as an AIFM on 22
July 2014. This development will not impact on the day to day
investment activities, although the Investment Management Agreement
has been transferred to ISIS VC LLP, which is controlled and
managed by the same individuals as the previous manager ISIS EP
LLP.
OUTLOOK
Most commentators agree that there are positive signs of
recovery in the UK economy which should benefit our investee
companies. However, our focus remains on improving the performance
of our portfolio through direct involvement of the Manager in the
investee companies to enhance profitability.
The unquoted portfolio has undergone a phase of refreshment as a
result of the realisation of some of the older portfolio companies
and new investments. Consequently, growth in the value of the
unquoted portfolio might be expected to be more modest in the next
year or two as the newer acquisitions mature.
The recent growth in the value of the quoted portfolio provides
an opportunity to realise profits and, coupled with the diversity
of the Company's portfolio of unquoted and AIM-traded investments,
should help to deliver consistent returns in the future.
Robert Owen
Chairman
15 August 2014
Table of Investments and Realisations
Investments in the six months to 30 June 2014
Book cost
Company Location Sector Activity GBP'000
-------------------------------- ----------------- ------------------- -------------------------------- ----------
Unquoted investments
New
Kingsbridge Risk Solutions
Limited Gloucestershire Business Services Independent insurance broker 952
Follow on
Provider of nursery based
childcare
Healthcare & in Cornwall & Plymouth across
Happy Days Consultancy Limited Newquay Education 16 settings 180
Nexus Vehicle Holdings Limited Leeds Business Services Vehicle rental broker 7
-------------------------------- ----------------- ------------------- -------------------------------- ----------
Total unquoted investments 1,139
---------------------------------------------------------------------------------------------------------- ----------
AIM-traded, listed & ISDX investments
New
Rare book and collectibles
Scholium Group plc London Consumer Markets dealer 450
Synety Group plc Leicester TMT* Cloud based telephony platform 113
Follow on
Content acquisition and
One Media iP Group plc Buckinghamshire TMT* distribution 57
Back office optimisation
software
EG Solutions plc Staffordshire TMT* company 33
SME Domain registration &
Daily Internet plc Stockport TMT* hosting 25
Total AIM-traded, listed & ISDX investments 678
--------------------------------------------------- ---------------------------------------------------- ----------
Total investments in the period 1,817
--------------------------------------------------- ---------------------------------------------------- ----------
* Technology, Media and Telecommunications ("TMT").
Realisations in the six months to 30 June 2014
31 December
First 2013 Overall
investment valuation Proceeds!= multiple
Company date GBP'000 GBP'000 return*
Unquoted realisations
Inspired Thinking Group Limited Full trade sale May 10 2,056 2,315 3.4
Arcas Investments Limited Dissolved Sep 11 1,000 998 1.0
Empire World Trade Limited Full trade sale Aug 06 25 25 0
Total unquoted realisations 445 444
AIM-traded & listed realisations
Sinclair IS Pharma plc Full market sale Mar 08 510 546 1.0
Anpario plc Market sale Nov 06 330 284 4.1
Tristel plc Full market sale Nov 10 171 281 1.3
Total AIM-traded & listed realisations 1,011 1,111
Total realisations in the period 4,092 4,449
--------------------------------------------------------- -------------------- ------------ ----------- ----------
!= Proceeds at time of realisation including redemption premium
and interest.
* Includes interest/dividends received, loan note redemptions
and partial realisations accounted for in prior periods.
Proceeds of GBP14,000 were also received in respect of Quantix
Limited, GBP57,000 in respect of CSC (World) Limited and GBP27,000
in respect of Reed & Mackay Limited, all of which had been sold
in a prior period.
Independent Review Report to Baronsmead VCT 4 plc
Introduction
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2014 which comprises the Income Statement,
Reconciliation of Movement in Shareholders' Funds, Balance Sheet
and Cash Flow Statement and the related explanatory notes. We have
read the other information contained in the half-yearly financial
report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
This report is made solely to the company in accordance with the
terms of our engagement to assist the company in meeting the
requirements of the Disclosure and Transparency Rules ("the DTR")
of the UK's Financial Conduct Authority ("the UK FCA"). Our review
has been undertaken so that we might state to the company those
matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company
for our review work, for this report, or for the conclusions we
have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the DTR of the UK FCA.
As disclosed in note 1, the annual financial statements of the
company are prepared in accordance with UK Accounting Standards and
applicable law (UK Generally Accepted Accounting Practice). The
condensed set of financial statements included in this half-yearly
financial report has been prepared in accordance with the Statement
Half-Yearly Financial Reports as issued by the UK Accounting
Standards Board.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board for use in the
UK. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK and Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2014 is not prepared, in all material respects, in accordance
with the Statement Half-Yearly Financial Reports as issued by the
UK Accounting Standards Board and the DTR of the UK FCA.
Catherine Burnet
for and on behalf of KPMG LLP
Chartered Accountants
Saltire Court
20 Castle Terrace
Edinburgh EH1 2EG
15 August 2014
Responsibility Statement of the Directors in respect of the
half-yearly financial report
We confirm that to the best of our knowledge:
-- the condensed set of financial statements has been prepared
in accordance with the Statement Half-Yearly Financial Reports as
issued by the UK Accounting Standards Board;
-- the Chairman's Statement (constituting the interim management
report) includes a fair review of the information required by DTR
4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first
six months of the financial year and their impact on the condensed
set of financial statements;
-- the Statement of Principal Risks and Uncertainties below is a
fair review of the information required by DTR 4.2.7R being a
description of the principal risks and uncertainties for the
remaining six months of the year; and
-- the financial statements include a fair review of the
information required by DTR 4.2.8R of the Disclosure and
Transparency Rules, being related party transactions that have
taken place in the first six months of the current financial year
and that have materially affected the financial position or
performance of the entity during that period; and any changes in
the related party transactions described in the last annual report
that could do so.
By Order of the Board,
Robert Owen
Chairman
15 August 2014
Unaudited Income Statement
For the six months to 30 June 2014
Six months to 30 June Six months to 30 June Year to 31 December 2013*
2014 2013
------------------------------- ------------------------------- -------------------------------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Unrealised gains
on investments - 2,695 2,695 - 1,675 1,675 - 5,489 5,489
Realised
gains/(losses)
on investments - 228 228 - (427) (427) - (1,053) (1,053)
Income 774 - 774 1,610 - 1,610 3,627 - 3,627
Investment
management fee (218) (654) (872) (207) (622) (829) (414) (1,241) (1,655)
Other expenses (239) - (239) (237) - (237) (456) - (456)
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Profit on ordinary
activities
before taxation 317 2,269 2,586 1,166 626 1,792 2,757 3,195 5,952
Taxation on
ordinary
activities (14) 14 - (217) 217 - (543) 543 -
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Profit on ordinary
activities
after taxation 303 2,283 2,586 949 843 1,792 2,214 3,738 5,952
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Return per
ordinary share
Basic 0.43p 3.20p 3.63p 1.45p 1.29p 2.74p 3.39p 5.72p 9.11p
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
* Figures as at 31 December 2013 are audited.
Unaudited Reconciliation of Movement in Shareholders' Funds
For the six months to 30 June 2014
Six months
Six months to to Year to
30 June 30 June 31 December
2014 2013 2013*
GBP'000 GBP'000 GBP'000
Opening shareholders' funds 65,337 66,246 66,246
Profit for the period 2,586 1,792 5,952
Net proceeds of share issues
& costs of buybacks 9,258 320 320
Other costs charged to capital (2) - (10)
Dividends paid (3,918) (2,600) (7,171)
Closing shareholders' funds 73,261 65,758 65,337
-------------------------------- -------------- ----------- -------------
* Figures as at 31 December 2013 are audited.
Notes
1. The unaudited interim results which cover the six months to
30 June 2014 have been prepared in accordance with applicable
accounting standards and adopting the accounting policies set out
in the statutory accounts of the Company for the year to 31
December 2013.
2. Return per ordinary share is based on a weighted average of
71,219,291 ordinary shares in issue (30 June 2013 - 65,382,907; 31
December 2013 - 65,339,630).
3. Earnings for the six months to 30 June 2014 should not be
taken as a guide to the results of the full financial year to 31
December 2014.
4. During the six months to 30 June 2014 the Company purchased
480,000 ordinary shares to be held in treasury at a cost of
GBP442,000. At 30 June 2014, the Company holds 8,400,130 ordinary
shares in treasury. Excluding treasury shares, there were
74,938,013 ordinary shares in issue at 30 June 2014 (30 June 2013 -
65,297,059; 31 December 2013 - 65,297,059).
5. On 14 March 2014 the Company issued 10,120,954 ordinary
shares.
6. The interim dividend of 6.0p per ordinary share (0.46p
revenue, 5.54p capital) was paid on 7 March 2014 to shareholders on
the register on 21 February 2014. The ex-dividend date was 19
February 2014.
7. The financial information contained in this half-yearly
financial report does not constitute statutory accounts as defined
in Section 434 of the Companies Act 2006. The information for the
year to 31 December 2013 has been extracted from the latest
published audited financial statements. The audited financial
statements for the year to 31 December 2013 have been filed with
the Registrar of Companies. The auditor's report thereon was (i)
unqualified, (ii) did not include a reference to any matters to
which the auditors drew attention by way of emphasis without
qualifying their report and (iii) did not contain a statement under
Section 498 (2) or (3) of the Companies Act 2006. No statutory
accounts in respect of any period after 31 December 2013 have been
reported on by the Company's auditors or delivered to the Registrar
of Companies.
8. Copies of the half-yearly financial report have been
distributed to shareholders and are available from the Registered
Office of the Company at 100 Wood Street, London EC2V 7AN.
Unaudited Balance Sheet
As at 30 June 2014
As at As at As at
30 June 30 June 31 December
2014 2013 2013*
GBP'000 GBP'000 GBP'000
Fixed assets
Unquoted investments 27,067 36,590 28,299
Traded on AIM 24,830 17,587 23,331
Listed on LSE 1,318 904 1,322
Traded on ISDX 502 264 346
Listed interest bearing securities 9,996 5,497 4,198
--------------------------------------- --------- --------- -------------
63,713 60,842 57,496
Current assets
Debtors 251 350 178
Cash at bank 4,374 2,811 5,437
Cash on deposit 5,500 2,500 2,750
--------------------------------------- --------- --------- -------------
10,125 5,661 8,365
Creditors (amounts falling due within
one year) (577) (745) (524)
--------------------------------------- --------- --------- -------------
Net current assets 9,548 4,916 7,841
--------------------------------------- --------- --------- -------------
Net assets 73,261 65,758 65,337
--------------------------------------- --------- --------- -------------
Capital and reserves
Called-up share capital 8,334 7,322 7,322
Share premium account 8,687 28,998 -
Capital redemption reserve - 8,622 -
Other reserve 37,610 - 37,610
Revaluation reserve 10,751 9,409 8,247
Capital reserve 7,506 10,408 11,787
Revenue reserve 373 999 371
--------------------------------------- --------- --------- -------------
Equity shareholders' funds 73,261 65,758 65,337
--------------------------------------- --------- --------- -------------
* Figures as at 31 December 2013 are audited.
As at As at As at
30 June 30 June 31 December
2014 2013 2013*
Net asset value per share 97.76p 100.71p 100.06p
Number of ordinary shares in circulation 74,938,013 65,297,059 65,297,059
------------------------------------------ ----------- ----------- -------------
Treasury net asset value per share 97.26p 100.29p 99.51p
Number of ordinary shares in circulation 74,938,013 65,297,059 65,297,059
Number of ordinary shares held in
treasury 8,400,130 7,920,130 7,920,130
Number of listed ordinary shares
in issue 83,338,143 73,217,189 73,217,189
------------------------------------------ ----------- ----------- -------------
* Figures as at 31 December 2013 are audited.
Unaudited Cash Flow Statement
For the six months to 30 June 2014
Six months Six months Year to
to 30 June to 30 June 31 December
2014 2013 2013*
GBP'000 GBP'000 GBP'000
Net cash (outflow)/inflow from operating
activities (352) 602 1,745
Capital expenditure and financial investment (3,294) (604) 5,703
Equity dividends paid (3,918) (2,600) (7,171)
---------------------------------------------- ------------ ------------ -------------
Net cash (outflow)/inflow before financing (7,564) (2,602) 277
Net cash inflow from financing 9,251 4,069 4,066
---------------------------------------------- ------------ ------------ -------------
Increase in cash 1,687 1,467 4,343
---------------------------------------------- ------------ ------------ -------------
Reconciliation of net cash flow to movement
in net cash
Increase in cash 1,687 1,467 4,343
Opening cash position 8,187 3,844 3,844
---------------------------------------------- ------------ ------------ -------------
Closing cash position 9,874 5,311 8,187
---------------------------------------------- ------------ ------------ -------------
Reconciliation of profit on ordinary
activities before taxation to net cash
(outflow)/inflow from operating activities
Profit on ordinary activities before
taxation 2,586 1,792 5,952
Gains on investments (2,923) (1,248) (4,436)
Changes in working capital and other
non-cash items (15) 58 229
Net cash (outflow)/inflow from operating
activities (352) 602 1,745
---------------------------------------------- ------------ ------------ -------------
(*) Figures as at 31 December 2013 are audited.
Principal Risks and Uncertainties
The Company's assets consist of equity and fixed interest
investments, cash and liquid resources. Its principal risks are
therefore market risk, credit risk and competitive risk. Other
risks faced by the Company include economic, loss of approval as a
Venture Capital Trust, investment and strategic, regulatory,
reputational, operational and financial risks. These risks, and the
ways in which they are managed, are described in more detail under
the heading 'Principal risks, risk management and regulatory
environment' within the Strategic Report in the Company's Annual
Report and Accounts for the year to 31 December 2013. The Company's
principal risks and uncertainties have not changed materially since
the date of that report.
Related Parties
ISIS VC LLP ("the Manager") manages the investments of the
Company. The Manager also provides opportunities or procures the
provision of secretarial, accounting, administrative and custodian
services to the Company. Under the management agreement, the
Manager receives a fee of 2.5 per cent per annum of the net assets
of the Company. This is described in more detail under the heading
Management within the Report of the Directors in the Company's
Annual Report and Accounts for the year to 31 December 2013. During
the period, the Company has incurred management fees of GBP872,000
and secretarial and accounting fees of GBP70,000 payable to the
Manager.
Going Concern
After making enquires, and bearing in mind the nature of the
Company's business and assets, the Directors consider that the
Company has adequate resources to continue in operational existence
for the foreseeable future. In arriving at this conclusion, the
Directors have considered the liquidity of the Company and its
ability to meet obligations as they fall due for a period of at
least twelve months from the date that these financial statements
were approved. As at 30 June 2014, the Company held cash balances
& investments in interest bearing securities with a combined
value of GBP19,870,000. Cash flow projections have been reviewed
and show that the Company has sufficient funds to meet both its
contracted expenditure and its discretionary cash outflows in the
form of the share buyback programme and dividend policy. The
Company has no external loan finance in place and therefore is not
exposed to any gearing covenants.
Corporate Information
Directors Registrars and Transfer Office
Robert Owen (Chairman) Computershare Investor Services PLC
Malcolm Groat(#) PO Box 82
Alan Pedder CBE The Pavilions
Robin Williams Bridgwater Road
Bristol BS99 6ZZ
Secretary Tel: 0870 889 3251
ISIS VC LLP
Brokers
Registered Office Panmure Gordon & Co
100 Wood Street One New Change
London EC2V 7AN London EC4M 9AF
Investment Manager Auditors
ISIS VC LLP KPMG LLP
100 Wood Street Saltire Court
London EC2V 7AN 20 Castle Terrace
Tel: 020 7506 5600 Edinburgh EH1 2EG
Registered Number Solicitors
04313537 Norton Rose LLP
3 More London Riverside
Website London SE1 2AQ
www.baronsmeadvct4.co.uk
VCT Status Adviser
PricewaterhouseCoopers LLP
1 Embankment Place
London WC2N 6RH
(#) Chairman of the Audit Committee
Chairman of the Nomination Committee,
Chairman of the Management Engagement
and Remuneration Committee, and Senior
Independent Director
Copies of the half-yearly report can be obtained from the
following website: www.baronsmeadvct4.co.uk
National Storage Mechanism
A copy of the Half-Yearly Report will be submitted shortly to
the National Storage Mechanism ("NSM") and will be available for
inspection at the NSM, which is situated at:
http://www.morningstar.co.uk/uk/NSM
END
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on this announcement (or
any other website) is incorporated into, or forms part of, this
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GGUBPRUPCGAA
Baronsmead Vct 4 (LSE:BNS)
Gráfico Histórico do Ativo
De Dez 2024 até Jan 2025
Baronsmead Vct 4 (LSE:BNS)
Gráfico Histórico do Ativo
De Jan 2024 até Jan 2025
