Annual Financial Report

LONDON--()--

Hargreave Hale AIM VCT 1 plc announced its results for the year ended 30 September 2014 on 18 December 2014. The full Financial Statements can be accessed on the Company's website http://www.hargreave-hale.co.uk/fund-management/venture-capital-trusts/hargreave-hale-aim-vct-1/factsheets-and-reports/ or alternatively by following the link at the bottom of this report.

FINANCIAL HIGHLIGHTS

Ordinary Shares (as at 30 September):   2014   2013
 
Net asset value per share 80.31p 71.87p
Cumulative distributions paid per share since launch 33.75p 29.75p
Total return 114.06p 101.62p
 
Annual Returns per share:
Revenue return (0.41)p (0.24)p
Capital return 10.91p 14.05p
Combined Return 10.50p 13.81p
 
Dividends per share:
Interim paid 1.75p 1.5p
Final proposed 2.50p 2.25p
Total dividend for year 4.25p 3.75p
 
Performance Benchmark:
Total Return 120% 107%
FTSE AIM All-share Index 78% 82.3%
(results rebased to 100 at 29 October 2004)

CHAIRMAN’S STATEMENT

Introduction

At 30 September 2014 the NAV was 80.31 pence which after adding back the dividends paid gives a total return since inception of 114.06 pence. The gain per ordinary share for the year was 10.50 pence per share (comprising revenue loss of 0.41 pence and capital gains of 10.91 pence).

Investments

The Investment Manager, Hargreave Hale Limited, invested a further £5.00 million in 24 qualifying companies during the year. The Fair Value of qualifying investments at 30 September 2014 was £23.27 million invested in 54 AIM companies and 7 unquoted companies. £6.18 million was held in a mix of cash, fixed income and other non-qualifying equities.

Dividend

An interim dividend of 1.75 pence was paid on 4 July 2014 (Interim 2013 – 1.50 pence).

A final dividend of 2.50 pence is proposed (2013 – 2.25 pence) which, subject to shareholder approval at the AGM will be paid on 28 January 2015, to ordinary shareholders on the register on 30 December 2014.

The directors have maintained a dividend policy of at least 5% of the year end NAV. Subject to market conditions they expect that this will continue.

Buybacks

We were pleased that we were able to maintain our policy of offering our shareholders an efficient exit route through the buyback scheme. In total, 530,852 shares were purchased during the year at an average price of 77.08 pence per share.

Issue of Equity

The joint offer for subscription (together with Hargreave Hale AIM VCT 2) closed on 25 September 2014 and resulted in funds being received for Hargreave Hale AIM VCT 1 of £7.58 million and the issue of 9.27 million shares.

New Joint Offer for Subscription of Ordinary Shares

After our success this year, on the 3 October 2014 the Directors of Hargreave Hale AIM VCT 1 plc and Hargreave Hale AIM VCT 2 plc announced the launch of a new joint offer for subscription of new shares in both VCT’s to raise up to £10 million into each company.

The offer for subscription was approved by shareholders of the Company at a General Meeting on 7 November 2014 and is open to both new and existing shareholders. Since its launch the offer has resulted at 17 December 2014 in funds being received of £2.37 million and the issue of 3.02 million shares.

Cancellation of Share Premium and Capital Redemption Reserve

At the Annual General Meeting of the Company held on 22 January 2014, a special resolution was passed approving the cancellation of an amount standing to the credit of the Company's share premium account and capital redemption reserve. The Court approved the cancellation on 9 April 2014.

The Company is pleased to announce that, following the approval of the Court and the subsequent registration of the Court order with the Registrar of Companies, the cancellation has now become effective. £15,363,291 and £912,025, previously held in the share premium account and capital redemption reserve respectively, has been transferred to the Company's special reserve account.

Treasury Stock

The Company also cancelled 2,711,134 treasury shares on 27 January 2014 in accordance with the provisions of section 729 of the Companies Act 2006.

VCT Status

To maintain its VCT qualifying status we must invest at least 70% of the net funds raised in any one accounting period in qualifying investments within three years. At the yearend we have achieved 95.80% per cent and have satisfied all the relevant tests.

Outlook

The last 18 months have been kind to the fund which has grown substantially on the back of a rising stock market and with input of successful fund raising. The market has risen on the back of an improving economy and the prospect of improving company results. During the last few months we have seen this growth stutter and fall back a little. Whether this is simply the market taking a “breather” whilst it waits for the results to catch up with expectations or a more permanent adjustment is hard to tell.

There are plenty of circumstances that could unsettle the economy. These include the General Election in less than six months with no clear favourite; the position of the UK in the EU; and the fact that we are still running a multi-billion pound budget deficit.

However there are plenty of good things such as lower oil prices that should be good for the economy. Giles and his team have selected many well run companies which have significantly outperformed their peers and which are well placed to weather any storm and should continue to give the fund better than average performance.

Sir Aubrey Brocklebank

Chairman

Date: 17 December 2014

For further information, please contact:-

Stuart Brookes

Company Secretary

Hargreave Hale AIM VCT 1 Plc

01253 754740

Annual Report and Accounts - Year ended 30 September 2014

Short Name: Hargreave Hale AIM 1
Category Code: ACS
Sequence Number: 445481
Time of Receipt (offset from UTC): 20141218T171445+0000

Contacts

Hargreave Hale AIM 1

Contacts

Hargreave Hale AIM 1