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.
|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|
|Annual Returns per share:|
|Dividends per share:|
|Total dividend for year||4.25p||3.75p|
|FTSE AIM All-share Index||78%||82.3%|
|(results rebased to 100 at 29 October 2004)|
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).
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.
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.
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.
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.
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.
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
Date: 17 December 2014
For further information, please contact:-
Hargreave Hale AIM VCT 1 Plc