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Downing FOUR VCT plc  -  D467   

Downing FOUR VCT plc : Final Results

Released 16:24 31-Jul-2017

Downing FOUR VCT plc : Final Results

Downing FOUR VCT plc
Report & Accounts for the year ended 31 March 2017

FINANCIAL HIGHLIGHTS
  31 March
2017
  31 March
2016
  pence   pence
       
DSO B Share pool      
Net asset value per DSO B Share 20.7   17.6
Net asset value per DSO C Share 0.1   0.1
Cumulative distributions 91.5   91.5
Adjusted for performance estimate (5.5)   (4.8)
Total return per DSO B Share and DSO C Share 106.8 1 104.4
       
DSO D Share pool      
Net asset value per DSO D Share 76.1   75.6
Cumulative distributions 25.0   20.0
Total return per DSO D Share 101.1 2 95.6
       
DP67 Share pool      
Net asset value per DP67 Share 66.1   60.4
Cumulative distributions (since original launch) 27.8   23.8
Total return per DP67 Share 93.9   84.2
       
DP2011 General Share pool      
Net asset value per DP2011 General Ordinary Share 15.0   75.1
Net asset value per DP2011 General A Share 31.2   5.9
Cumulative distributions (since original launch) 55.0   22.5
Total return per DP2011 General Ordinary Share and DP2011 General A Share 101.2 3 103.5
       
DP2011 Structured Share pool      
Net asset value per DP2011 Structured Ordinary Share 4.8   77.1
Net asset value per DP2011 Structured A Share 31.9   6.1
Cumulative distributions (since original launch) 65.0   22.5
Total return per DP2011 Structured Ordinary Share and DP2011 Structured A Share 101.7 4 105.7
       
DP2011 Low Carbon Share pool      
Net asset value per DP2011 Low Carbon Share 43.0   41.6
Cumulative distributions (since original launch) 73.9   73.9
Adjusted for performance estimate (2.5)   -
Total return per DP2011 Low Carbon Share 114.4 5 115.5
       
Generalist Share pool      
Net asset value per Generalist Share 99.9   N/A
Cumulative distributions per Generalist Share -   N/A
Total return per Generalist Share 99.9   N/A
       
Healthcare Share pool      
Net asset value per Healthcare Share 99.7   N/A
Cumulative distributions per Healthcare Share -   N/A
Total return per Healthcare Share 99.7   N/A
       

1 Based on Total Return levels at 31 March 2017, performance fees are expected to become due to management.  These are estimated to be 5.5p per DSO B/DSO C Share.
2 At this stage in the share pools life there is no estimate for performance fees.
3 The total return to shareholders at 31 March 2017 is shown net of performance fees which are expected to become due to management. These are estimated to be 4.7p per DP2011 General Ordinary share.
4 The total return to shareholders at 31 March 2017 is shown net of performance fees which are expected to become due to management. These are estimated to be 4.8p per DP2011 Structured Ordinary share.
5 Based on Total Return levels at 31 March 2017, performance fees are expected to become due to management.  These are estimated to be 2.5p per DP2011 Low Carbon Share.

CHAIRMAN'S STATEMENT

Introduction
I am pleased to present the Company's Annual Report for the year ended 31 March 2017.

It has been a busy year for your Company as a number of the planned exit share pools continue to make progress in returning funds to investors as they move toward the end of their life. At the same time, the Company also launched fundraisings for two new "evergreen" share classes, which have raised a significant level of new funds for investment.

Share pool review
As at 31 March 2017 the Company has eight active share pools. A brief review of each is given below.

DSO B Share pool
The DSO B Shares and C Shares were originally issued in 2010. The process of realising the portfolio is now approaching completion.

At the year end, the Net Asset Value ("NAV") of a combined holding of one DSO B Share and one DSO C Share stood at 20.8p, an increase of 3.1p (17.5%) over the year. Based on these values, it is estimated that there will be a performance incentive payable to members of the management team equivalent to 5.5p per B Share.

After providing for this incentive, the Total Return to Shareholders (NAV plus dividends paid to date less performance incentive) is estimated to be 106.8p for a holding of one DSO B Share and one DSO C Share (split 96.0p per DSO B Share and 10.8p per DSO C Share), compared to the cost for Shareholders who invested in the DSO B Share offer of 100.0p or 70.0p net of income tax relief.

The share pool now has four remaining investments with attributable value, each of which is in an active sales process. The Manager is optimistic that these sales will complete in the coming months and that the share pool will then be able to make a final distribution to B Shareholders.

A detailed review of the DSO B Share pool is presented in the Investment Manager's report.

DSO D Share pool
The DSO D Shares were originally issued in 2012. The fifth anniversary of the close of the offer falls later this year, at which time the process of starting to unwind the investment portfolio will commence.

The DSO D Share NAV stood at 76.1p at the year end, an increase of 5.5p per share or 7.3% over the year after adjusting for the dividends of 5.0p per share paid in the year. Total Return now stands at 101.1p per share, compared to the cost for Shareholders who invested in the DSO D Share offer of 100.0p or 70.0p net of income tax relief.

The performance of the DSO D Share pool was held back in the initial years by disappointing performance from a small number of investments. Over the year, the share pool has been able to make some progress and the Manager believes that there are prospects for some further growth before the portfolio is realised and funds returned to investors.

A more detailed review of the DSO D Share pool is presented in the Investment Manager's Report.
                               
DP67 Share pool
The DP67 shares were originally issued in 2007, although many shareholders took advantage of the opportunity to participate in a Share Realisation and Reinvestment Scheme in 2013, which started a new 5-year holding period for those investors. The task of seeking to realise the DP67 share pool investments will therefore commence in 2018.

The DP67 Share NAV stood at 66.1p at the year end, an increase of 9.7p per share or 16.1% over the year after adjusting for the dividends paid of 4.0p per share. Total Return now stands at 93.9p per share, compared to the original cost for Shareholders who invested in 2007 of 100.0p or 70.0p net of income tax relief.

A more detailed review of the DP67 Share pool is presented in the Investment Manager's report.

DP2011 General Share pool
The DP2011 General Shares were originally issued in 2011 and so the process of seeking to realise the investments has now commenced.

The NAV of a combined holding of one DP2011 General Ordinary Share and one DP2011 General A Share stood at 46.2p at the year end, a decrease of 2.3p per share or 2.8% for the year, after adjusting for the dividends paid of 32.5p per share. Total Return now stands at 101.2p per share, compared to the cost for Shareholders of 100.0p or 70.0p net of income tax relief.
The share pool has a significant number of remaining investments, however most now have a path to exit.  We expect to see a number of disposals in the coming months and anticipate that the task of realising the whole portfolio might be completed by the end of the year.

A more detailed review of the DP2011 General Share pool is presented in the Investment Manager's report.

DP2011 Structured Share pool
The DP2011 Structured Shares were originally issued in 2011 and so the process of seeking to realise the investments has also now commenced.

The NAV of a combined holding of one DP2011 Structured Ordinary Share and one DP2011 Structured A Share stood at 36.7p at the year end, a decrease of 4.0p per share or 4.8% for the year, after adjusting for the dividends of 42.5p per share. Total Return now stands at 101.7p per share, compared to the cost for Shareholders 100.0p or 70.0p net of income tax relief.

As with the DP2011 General Share pool, there are still a significant number of remaining investments, but most are progressing plans for a sale. We anticipate that there will be several disposals in the coming months and believe that it is a realistic target for the Share pool to realise all the investments by the end of the year.

A more detailed review of the DP2011 Structured Share pool is presented in the Investment Manager's Report.

DP2011 Low Carbon Share pool
The DP2011 Low Carbon Shares were originally issued in 2011. The process of realising the investments is now nearing completion.

The DP2011 Low Carbon Share pool NAV stood at 43.0p at the year end, an increase of 1.4p per share or 3.4% for the year. Based on the above values, total Shareholder proceeds are projected to trigger the hurdle levels at which a performance fee is paid to management. The performance fee is estimated to be 2.5p per DP2011 Low Carbon Share.  After providing for such a fee, it is estimated that the final Total Return to Shareholders will be 114.4p, compared to the cost for Shareholders who invested in the DP2011 Low Carbon Share offer 100.0p or 70.0p net of income tax relief.

The Share pool has four remaining investments, all of which are part of sales processes. The Manager is hopeful that these transactions can be completed in the next two to three months, after which the share pool will make a final distribution.

A more detailed review of the DP2011 Low Carbon Share pool is presented in the Investment Manager's report.

Generalist and Healthcare Share pools
In December 2016, the Company launched offers for subscription seeking to raise new funds for two new "evergreen" share classes. The Generalist Share pool will invest in general growth opportunities, which is a good fit with the new VCT regulations introduced over the last two years. The Healthcare Share pool will invest in the life sciences sector. The Manager, Downing LLP, is being supported by Bioscience Managers Limited, an experienced investment manager in this sector, in investing these funds.

The Generalist and Healthcare offers have raised £30.0m and £7.7m respectively to date. As at 31 March 2017, £225,000 and £25,000 had been invested by the Generalist and Healthcare Share pools respectively. The task of investing the remaining funds is now underway and further investments will be covered in the next Half Yearly Report.

Dividends
In the initial 5-year period of each planned exit share pool, the Company's usual policy is to pay annual dividends totalling at least 5p per share (on a twice-yearly basis).  The target is at least 4p per annum for the DP67 Share pool.

In line with this policy, subject to approval at the forthcoming AGM, a dividend of 2.5p per DSO D Share and 2.0p per DP67 Share will be paid on 29 September 2017 to DSO D Shareholders and DP67 Shareholders respectively on the register at 1 September 2017.

Dividends from the other planned exit share pools will be declared as and when sufficient disposals have completed for a further payment to be made to Shareholders.

Board
As I reported in the last Half Yearly Report, there were some Board changes during the year. In view of the fact that some of the original planned exit share pools have wound up and others are in the process, Mark Mathias and Robin Chamberlayne decided to retire as directors in December 2016.
I would like to personally thank both Mark and Robin for their insightful and valuable contributions since the Company's launch as Downing Protected Opportunities VCT1 plc in 2009 and wish them every success in their other ventures.

Their departure leaves the Company with a Board comprising three non-executive directors, which the Directors have agreed is satisfactory for a Company of this size at the current time.

Share buybacks
In the initial 5-year period of each share class, the Company operates a policy of buying in its own shares that become available in the market subject to regulatory restrictions and other factors such as availability of liquid funds. Any such purchases are undertaken at a price approximately equal to NAV i.e. at a nil discount.  80,473 DP67 Shares were purchased in the year to 31 March 2017.

Now that the DSO B Share pool and all of the DP2011 Share pools have commenced realisations to return funds to Shareholders, the Company no longer undertakes any further share buybacks in respect of the DSO B Shares, DSO C Shares, DP2011 General Ordinary Shares, DP2011 General A Shares, DP2011 Structured Ordinary Shares, DP2011 Structured A Shares and DP2011 Low Carbon Shares. The Board believes it is fairer to all Shareholders to distribute proceeds from the investment realisations to all the above Shareholders by way of dividends, rather than setting aside sums to fund share buybacks.

The policy for buying in shares is still in operation for the DP67, Generalist and Healthcare Shares.

Annual General Meeting ("AGM")
The Company's seventh AGM will be held at Fifth Floor, Ergon House, Horseferry Road, London, SW1P 2AL at 11.15 a.m. on 5 September 2017.

Three items of special business are proposed.  The Board may, in due course, give consideration to a further offer for subscription for both the Generalist and Healthcare Shares. To give the Board flexibility and eliminate the costs of issuing a separate Shareholder circular, the Board is seeking Shareholder approval to give the Directors power to allot up to approximately £40M worth of Generalist Shares and £30M of Healthcare Shares and is also seeking to waive pre-emption right on those shares.  The Directors will only proceed with such an offer if they consider that market conditions are supportive and it to be in the best interest of Shareholders. Resolutions 7 and 8 to be proposed at the AGM deal with these approvals. 

Resolution 9 is a special resolution seeking to renew the authority to allow the Company to make market purchases of its shares.

Outlook
I expect the coming year to be as busy as the last. A number of the planned exit share pools are expected to complete the return of funds to investors in the next 12 months.

The focus of the Manager will also be on investing the new funds in the new Generalist and Healthcare Share pools, which launched during the year. We expect to see a significant level of new investments made as these portfolios are created.

As these two processes progress the Company will gradually transform from being a collection of planned exit offerings, to a more mainstream generalist VCT. I look forward to reporting developments in the Half Yearly Report to 30 September 2017.

Lord Flight
Chairman

INVESTMENT MANAGER'S REPORT- DSO B SHARE POOL

Introduction
The DSO B Share pool has made good progress during the year in realising investments with six full exits completed. We are in the process of fulfilling realisation plans for the remainder four live investments in the portfolio, which had a value of £1.8m as at 31 March 2017.

Net asset value and results
The NAV per DSO B Share at 31 March 2017 stood at 20.7p and per DSO C Share at 0.1p, a rise of 3.1p for a combined holding of one DSO B Share and one DSO C Share over the year after adjusting for dividends. Total Return (combined NAV plus cumulative dividends) stood at 106.8p for a combined holding, after taking account of the estimated performance incentive fee of 5.5p.

The return on ordinary activities after taxation for the year was £619,000 (2016: £1.3 million), comprising a revenue return of £59,000 (2016: £736,000) and a capital return of £560,000 (2016: £559,000).

Venture Capital investments
Portfolio activity
Six investments were fully exited during the year generating proceeds of £1.8m and a realised gain on opening valuations of £474,000.

The remaining investments have been revalued to reflect the expected proceeds from their respective exit processes, resulting in an overall gain of £20,000 in the year.

Realisation Plans
There are exit plans in place for the remaining investments and the holdings in Westcountry Solar Solutions Limited, Avon Solar Energy Limited and Mosaic Spa and Health Clubs Limited are all in exit processes and we expect them to complete in the summer.

Outlook
The timing of the remaining exits is difficult to estimate due to our reliance on third parties, however we envisage that the final DSO B Share pool dividend will be paid later in the year.

Downing LLP

Portfolio of investments

The following investments were held at 31 March 2017:

  Cost  

 

Valuation
Valuation
Movement
in year
% of portfolio
   £'000  £'000 £'000  
         
         
Venture Capital investments        
Avon Solar Energy Limited 420 515 80 12.2%
Mosaic Spa & Health Clubs Limited* 692 441 (79) 10.5%
Westcountry Solar Solutions Limited 500 434 (66) 10.3%
Fenkle Street LLP** 154 362 85 8.6%
Future Biogas (Reepham Road) Limited 632 - - 0.0%
Quadrate Spa Limited* 276 - - 0.0%
         
  2,674 1,752 20 41.6%
         
Cash at bank and in hand   2,475   58.4%
         
Total investments   4,227   100.0%

* partially qualifying investment
** non-qualifying investment

All Venture Capital investments are incorporated in England and Wales.

Investment movements for the year ended 31 March 2017

DISPOSALS

  Cost Valuation
at
31/3/16
Proceeds Profit
vs. cost
Realised
gain
  £'000 £'000 £'000 £'000 £'000
Sales          
Quadrate Catering Limited 56 - 313 257 313
Camandale Limited 592 - 5 (587) 5
Redmed Limited** 66 57 57 (9) -
Future Biogas (SF) Limited 122 122 147 25 25
Kidspace Adventures Holdings Limited 750 930 939 189 9
Future Biogas (Reepham Road) Limited 258 193 257 (1) 64
           
Deferred consideration          
Kilmarnock Monkey Bar Limited - - 12 12 12
Liverpool Nurseries (Holdings) Limited - - 46 46 46
  1,844 1,302 1,776 (68) 474

** non-qualifying investment

INVESTMENT MANAGER'S REPORT- DSO D SHARE POOL

Introduction
At 31st March 2017, the DSO D Share pool was fully invested and held investments in 14 Venture Capital investments with a value of £4.8 million and 1 Structured Product investment with a value of £598,000.

Net asset value and results
The net asset value ("NAV") per DSO D Share at 31 March 2017 stood at 76.1p, an increase of 5.5p or 7.3% over the year after adjusting for dividends paid. Total Return stands at 101.1p per share compared to initial cost to Shareholders, net of income tax relief, of 70.0p per share.

The profit on ordinary activities after taxation for the year was £437,000 (2016: £48,000), comprising a revenue profit of £49,000 (2016: £129,000) and a capital gain of £388,000 (2016: loss of £81,000).

Venture Capital investments
Portfolio activity
No new investments were made in the period and one follow on investment of £145,000 was made into Goonhilly Earth Station Limited, the satellite station in Cornwall, which takes the total investment cost to £715,000.

Grasshopper 2007 Limited, the owner of the Grasshopper Inn in Kent, was the only full exit in the period and generated proceeds equal to the original cost of £294,000.

Portfolio valuation
Four value uplifts were recognised in the period totalling £376,000.

Nightjar Sustainable Power Limited, an operational run-of-river hydroelectric scheme in Argyll, Scotland, was uplifted by £115,000 due to the project performing ahead of budget.

Pearce & Saunders Limited, the owner of three pubs in south east London, which was previously written down, was uplifted by £108,000 to a value equivalent to cost following a significant increase in property prices in the area.

Lambridge Solar Limited, the owner of a solar farm in Lincolnshire, has increased in value by £78,000 following good performance of the solar arrays.

Merlin Renewables Limited is a 2MW gas injection anaerobic digestion plant in Norfolk. The plant continues to perform to expectations and an uplift of £75,000 has been recognised in the year.

Structured Product Portfolio
Two Structured Product investments matured in the period and returned £606,000 to the Share pool. The one remaining Structured Product increased in value by £26,000 during the year and matured in April 2017.

Outlook
The focus for the DSO D Share portfolio is now on close monitoring and support of the portfolio companies in order to maximise growth opportunities until the realisation process commences later in the year.

Downing LLP

Portfolio of investments

The following investments were held at 31 March 2017:

  Cost  

 

Valuation
Valuation
Movement
in year
 

% of portfolio
   £'000  £'000 £'000  
         
Structured Product investments        
HSBC 5.4% Dual Index Synthetic Zero 501 598 26 10.3%
         
Venture Capital investments        
Vulcan Renewables Limited  653  779 - 13.4%
Goonhilly Earth Station Limited  715  715 - 12.3%
Nightjar Sustainable Power Limited  485  600 115 10.3%
Lambridge Solar Limited  500  595 78 10.3%
Merlin Renewables Limited  500  575 75 9.9%
Apex Energy Limited  400  400 - 6.9%
Pearce and Saunders Limited*  300  300 108 5.2%
City Falkirk Limited  562  236 - 4.1%
Fubar Stirling Limited  357  225 - 3.9%
Fresh Green Power Limited  200  200 - 3.4%
Green Energy Production UK Limited  100  100 - 1.7%
Cheers Dumbarton Limited  64  22 - 0.4%
Pearce and Saunders DevCo Limited**  20  20 - 0.3%
Lochrise Limited  17  -  - 0.0%
  4,873 4,767 376 82.1%
         
  5,374 5,365 402 92.4%
         
Cash at bank and in hand   435   7.6%
         
Total investments   5,800   100.0%

*              partially qualifying investment, previously written down
**           non-qualifying investment

All Venture Capital investments are incorporated in England and Wales.

Investment movements for the year ended 31 March 2017

ADDITIONS

   
  £'000
Venture Capital investments  
Goonhilly Earth Station Limited 145
  145

DISPOSALS

  Cost Valuation
at
31/3/16
 

 

Proceeds
Profit
vs. cost
Realised
gain
  £'000 £'000 £'000 £'000 £'000
Structured Product investments          
Credit Suisse 7% Defensive Worst Of Auto-Call 251 291 303 52 12
HSBC 7.1% Defensive Worst-Of-Auto-Call 251 286 303 52 17
           
Venture Capital investments          
Grasshopper 2007 Limited 294 294 294 - -
  796 871 900 104 29
           

INVESTMENT MANAGER'S REPORT - DP67 SHARE POOL
Introduction
The DP67 Share pool was formed as part of the merger in July 2015 and includes the portfolios of Downing Planned Exit VCT 6 plc and Downing Planned Exit VCT 7 plc. These companies were sister companies which held identical investment portfolios.

Net asset value and results
The net asset value ("NAV") per DP67 Share at 31 March 2017 stood at 66.1p an increase of 9.7p or 16.1% over the year after adjusting for dividends paid. Total Return stands at 93.9p per share compared to initial cost to Shareholders, net of income tax relief, of 70.0p per share.

The profit on ordinary activities after taxation for the year (2016: period) was £1,090,000 (2016: £259,000), comprising a revenue profit of £79,000 (2016: £93,000) and a capital gain of £1,011,000 (2016: £166,000).

Venture Capital investments
Portfolio activity
The DP67 pool holds eight investments, of which Cadbury House and Snow Hill represent a significant proportion of the pool's net assets.

There were two qualifying additions to the portfolio during the period: £300,000 in Brownfields Limited, which was subsequently disposed of at cost during June 2017; and £400,000 in Yamuna Renewables Limited, which is working on an opportunity in the wood refinery sector.

Divestment proceeds totalling £2.4 million were received in the period and generated a realised gain over opening value of £715,000. This included £849,000 of proceeds on Gatewales Limited, £550,000 on Snow Hill Developments Limited, and the redemption (at par) of £965,000 of loan notes in Kidspace Adventures Holdings Limited and Hobblers Heath Limited.

Portfolio valuation
The DP67 portfolio continues to perform well, and produced unrealised gains of £168,000 for the year. The most significant of these was on Snow Hill Developments LLP, the developer of a Holiday Inn Express in Birmingham, where performance continues to be on target and cash flows from the business back to the fund continue to be strong. As such the value was increased by £213,000.

Fenkle Street LLP and Gatewales Limited generated an uplift of £159,000 and a write down of £40,000 respectively.

Unfortunately, a value write down has also been taken on Oak Grove Renewables Limited, the owner of an anaerobic digestion plant in Norfolk, which is performing below our expectations.

Outlook
We are pleased with the overall performance of the DP67 Share pool portfolio, as is reflected in the recent uplifts in value. The portfolio is now fully invested and our attention is focussed on monitoring performance to ensure that opportunities for growth are maximised.

Downing LLP

Portfolio of investments

The following investments were held at 31 March 2017:

  Pre-merger cost  

 

 

Cost
 

 

 

Valuation
Valuation
Movement
in year
 

% of portfolio
   £'000  £'000  £'000 £'000  
           
Venture Capital investments          
Cadbury House Holdings Limited 1,206 1,409 1,613 - 21.7%
Snow Hill Developments LLP** 750 809 1,060 213 14.2%
Fenkle Street LLP** 77 405 678 159 9.1%
Oak Grove Renewables Limited 820 820 451 (164) 6.1%
Gatewales Limited* 876 408 446 (40) 6.0%
Yamuna Energy Limited - 400 400 - 5.4%
Brownfields Limited - 300 300 - 4.0%
London City Shopping Centre Limited** - 99 99 - 1.3%
           
    4,650 5,047 168 67.8%
           
Cash at bank and in hand     2,396   32.2%
           
Total investments     7,443   100.0%

*              partially qualifying investment
**           non-qualifying investment

All Venture Capital investments are incorporated in England and Wales.

The figures shown in the "Pre-merger Cost" column are the original costs of the investments to Downing Planned Exit VCT 6 and 7 before the merger in July 2015.

Investment movements for the year ended 31 March 2017

ADDITIONS

  £'000
Yamuna Energy Limited 400
Brownfields Limited 300
  700
   

DISPOSALS

  Cost Valuation
at
01/04/16
 

Proceeds
Profit/
vs. cost
Realised
gain
  £'000 £'000 £'000 £'000 £'000
           
Gatewales Limited* 156 363 849 693 486
Snow Hill Developments LLP** 275 321 550 275 229
Kidspace Adventures Holdings Limited 578 578 578 - -
Hobblers Heath Limited 387 387 387 - -
  1,396 1,649 2,364 968 715

* partially qualifying investment
** non-qualifying investment

INVESTMENT MANAGER'S REPORT - DP2011 GENERAL SHARE POOL

Introduction
At 31 March 2017 the DP2011 General Share pool was fully invested with a portfolio value of £7.4 million, comprising 10 fully or partly qualifying investments and a further 5 non-qualifying investments.

Now that the five year anniversary has passed, we will look to seek appropriate exit strategies to maximise returns to Shareholders.

Net asset value and results
The combined net asset value ("NAV") of one DP2011 General Ordinary Share and one DP2011 General A Share at 31 March 2017 stood at 46.2p an decrease of 2.3p or 2.8% over the year after adjusting for dividends paid. Total Return stands at 101.2p per share compared to initial cost to Shareholders, net of income tax relief, of 70.0p per share.

The profit on ordinary activities after taxation for the year (2016: period) was £347,000 (2016: £32,000) comprising a revenue profit of £280,000 (2016: £383,000) and a capital gain of £67,000 (2016: loss of 351,000).

Venture Capital investments
Investment activity
The DP2011 General Share began the period with £10.4 million of investments and ended with £7.4 million spread across a portfolio of 15 Venture Capital investments. No new or follow on investments were made in the year.

The process of exiting investments in the portfolio has begun in order to return funds to Shareholders. As such, three exits occurred in the year generating proceeds of £3.2 million and a gain over opening value of £80,000.

Portfolio valuation
Valuation movements in the year resulted in an overall unrealised gain of £84,000.  The most significant of these was on Snow Hill Developments LLP, the developer of a Holiday Inn Express in Birmingham, where performance continues to be on target and cash flows from the business back to the fund continue to be strong. As such the value was increased by £233,000.

Two small uplifts were made on Avon Solar Energy Limited and Wickham Solar Limited of £95,000 and £50,000 respectively.

Unfortunately, these gains were partially offset by unrealised losses totalling £294,000. Mosaic Spa and Health Clubs Limited is in an exit process and the £130,000 value reduction is reflective of anticipated proceeds.

Smaller write downs on Oak Grove Renewables Limited and Westcountry Solar Limited of £85,000 and £79,000 respectively have also been made in the year.

Outlook
The focus for the Share pool is on realisations and monitoring performance in order to maximise growth opportunities. Several companies are currently in exit processes and we hope to see further progress in this regard over the next few months.

Downing LLP

Portfolio of investments

The following investments were held at 31 March 2017:

  Pre-merger cost  

 

 

 

Cost
 

 

 

 

Valuation
Valuation
Movement
in year
 

% of portfolio
   £'000  £'000  £'000 £'000  
           
Venture Capital investments          
Vulcan Renewables Limited 1,845 2,199 2,199 - 28.7%
Snow Hill Developments LLP** 750 750 983 233 12.8%
Mosaic Spa and Health Clubs Limited* 1,500 1,147 825 (130) 10.8%
Avon Solar Energy Limited 505 505 618 95 8.1%
Wickham Solar Limited 473 550 600 50 7.8%
Odysian (Holdings) Limited 857 873 591 - 7.7%
Westcountry Solar Solutions Limited 600 600 521 (79) 6.8%
City Falkirk Limited 674 330 283 - 3.7%
Fubar Stirling Limited 429 410 270 - 3.5%
Oak Grove Renewable Limited 400 400 233 (85) 3.0%
London City Shopping Centre Limited** 50 88 88 - 1.2%
Clean Electricity Limited** 70 70 70 - 0.9%
UK Renewable Power Limited** 55 55 55 - 0.7%
Cheers Dumbarton Limited 76 27 27 - 0.3%
21st Century Energy Limited** 22 22 22 - 0.3%
           
    8,026 7,385 84 96.3%
           
Cash at bank and in hand     266   3.7%
           
Total investments     7,651   100.0%

*              partially qualifying investment
**           non-qualifying investment

All Venture Capital investments are incorporated in England and Wales.
Investment movements for the year ended 31 March 2017

DISPOSALS

  Cost Valuation
at
01/4/16
 

Proceeds
Profit
vs. cost
Realised
gain
  £'000 £'000 £'000 £'000 £'000
           
           
Kidspace Adventures Holdings Limited 1,351 1,384 1,398 47 14
Tooting Tram and Social Limited* 1,187 1,223 1,289 102 66
Kidspace Adventures Limited** 539 539 539 - -
           
  3,077 3,146 3,226 149 80

* partially qualifying investment
** non-qualifying investment

INVESTMENT MANAGER'S REPORT- DP2011 STRUCTURED SHARE POOL

Introduction
At 31 March 2017 the DP2011 Structured Share pool was fully invested with a portfolio value of £4.2 million, comprising 10 fully or partially qualifying venture capital investments.

Now that the five-year anniversary has passed, we are looking to seek appropriate exit strategies to maximise returns to Shareholders.

Net asset value and results
The net asset value ("NAV") of a combined holding of one DP2011 Structured Ordinary Share and one DP2011 Structured A Share at 31 March 2017 stood at 36.7p a decrease of 4.0p or 4.8% over the year after adjusting for dividends paid. Total Return stands at 101.7p per share compared to initial cost to Shareholders, net of income tax relief, of 70.0p per share.

The profit on ordinary activities after taxation for the year (2016: period) was £72,000 (2016: £10,000), comprising a revenue profit of £192,000 (2016: £247,000) and a capital loss of £120,000 (2016: £257,000).

Venture Capital investments
Investment activity
The DP2011 Structured Share pool began the period with £7.3 million of investments and ended the period with £4.2 million spread across a portfolio of 10 Venture Capital investments. There were no new or follow on investments made in the year

Two full disposals were made during the period generating total proceeds of £1.6 million and gains of £53,000.

Portfolio valuation
Two small uplifts were made on Avon Solar Energy Limited and Wickham Solar Limited of £64,000 and £50,000 respectively.

Unfortunately these gains were offset by unrealised losses totalling £255,000. Oak Grove Renewables continues to experience operating issues and was written down by £115,000 as a result. Mosaic Spa and Health Clubs Limited is in an exit process and the £87,000 value reduction is reflective of the anticipated proceeds. A smaller write down on Westcountry Solar Limited of £53,000 was also made in the year.

Structured Products
The Structured portfolio was sold in the year, resulting in realised gains totalling £31,000.

Outlook
The focus for the Share pool is on realisations and monitoring performance in order to maximise growth opportunities. Several companies are currently in exit processes and we hope to see further progress in this regard over the next few months.

Downing LLP

Portfolio of investments

The following investments were held at 31 March 2017:

  Pre-merger cost  

 

 

 

Cost
 

 

 

 

Valuation
Valuation
Movement
in year
 

% of portfolio
   £'000  £'000  £'000 £'000  
Venture Capital investments          
Vulcan Renewables Limited 1,091 1,305 1,305 - 30.6%
Wickham Solar Limited 473 550 600 50 14.1%
Mosaic Spa and Health Clubs Limited* 920 685 470 (87) 11.0%
Avon Solar Energy Limited 336 336 412 64 9.7%
Odysian (Holdings) Limited 571 582 394 - 9.2%
Westcountry Solar Solutions Limited 400 400 347 (53) 8.1%
Oak Grove Renewables Limited 545 545 318 (115) 7.5%
City Falkirk Limited 450 220 189 - 4.4%
Fubar Stirling Limited 286 273 180 - 4.2%
Cheers Dumbarton Limited 51 18 18 - 0.4%
           
    4,914 4,233 (141) 99.2%
           
Cash at bank and in hand     28   0.8%
           
Total investments     4,261   100.0%

*              partially qualifying investment

All Venture Capital investments are incorporated in England and Wales.

Investment movements for the year ended 31 March 2017

DISPOSALS

  Cost Valuation
at
01/4/16
 

 Proceeds
Profit
vs. cost
Realised
gain
  £'000 £'000   £'000 £'000 £'000
Structured Product investments          
HSBC 7.1% Defensive Worst-Of-Auto-Call 447 458 469 22 11
RBS 6 Yr Dual Index Synthetic Zero 10.16% 373 380 385 12 5
Credit Suisse 10% Defensive Worst Of Auto Call 290 293 302 12 9
Credit Suisse 7% Defensive Worst Of Auto Call 279 291 297 18 6
           
           
Venture Capital investments          
Kidspace Adventures Holdings Limited 901 923 932 31 9
Tooting Tram and Social Limited* 613 637 681 68 44
  2,903 2,982 3,066 163 84
           

* partially qualifying investment

INVESTMENT MANAGER'S REPORT- DP2011 LOW CARBON SHARE POOL

Introduction
The task of building the DP2011 Low Carbon portfolio was completed at an early stage.  The process of realising the portfolio and returning funds to Shareholders is now underway.

Net asset value and results
The net asset value ("NAV") per DP2011 Low Carbon Share at 31 March 2017 stood at 43.0p, an increase of 1.4p or 3.4% over the year after adjusting for dividends paid. Total Return stands at 114.4p per share compared to initial cost to Shareholders, net of income tax relief, of 70.0p per share, after rebasing to 100p during the merger.

The profit on ordinary activities after taxation for the year (2016: period) was £107,000 (2016: £424,000), comprising a revenue profit of £83,000 (2016: £211,000) and a capital gain of £24,000 (2016: £213,000).

Venture Capital investments
Investment activity
The DP2011 Low Carbon Share pool began the period with £3.0 million of investments and ended with £3.1 million spread across a portfolio of 4 Venture Capital investments.  All of the investments own solar PV panels sited on a mix of commercial and residential rooftops, all of which received Feed in Tariffs ("FiTs").

The Share pool is in the exit stage and therefore no new or further investments have been made in the period. All four investments are currently in an exit process and the valuations reflect the anticipated proceeds.

Outlook
The exit processes are progressing with the four companies in this Share pool, and it is our expectation that these will be completed during the summer.

Downing LLP

Portfolio of investments

The following investments were held at 31 March 2017:

  Pre-merger cost  

 

 

 

Cost
 

 

 

 

Valuation
Valuation
Movement
in year
 

% of portfolio
   £'000  £'000  £'000 £'000  
           
Venture Capital investments          
Progressive Power Generation Limited 800 800 800 - 25.2%
UK Renewable Power Limited 780 780 780 - 24.5%
21st Century Energy Limited 600 708 775 67 24.4%
Clean Electricity Limited 780 710 710 - 22.3%
           
    2,998 3,065 67 96.4%
           
Cash at bank and in hand     116   3.6%
           
Total investments     3,181   100.0%

All Venture Capital investments are incorporated in England and Wales.

Investment movements for the year ended 31 March 2017

There were no additions or disposals during the year.

INVESTMENT MANAGER'S REPORT - GENERALIST SHARE POOL

Introduction
The Generalist Share pool raised a total of £21.7m to 31 March 2017.  The process of investing the funds is under way with £225,000 invested during the year.

Net asset value and results
At 31 March 2017, the NAV of a Generalist share stood at 99.9p, a decrease of 0.1p on the initial price, resulting from the initial "cash drag" of holding uninvested funds.

The return on ordinary activities for the Generalist Share pool for the year was a loss of £11,000, being a revenue loss of £6,000 and a capital loss of £5,000.

Venture Capital investments
Investment activity
Two investments totalling £225,000 were made during the year, as we start to build the portfolio of the Generalist Share pool.

£200,000 was invested in Xupes Limited, an online retailer of pre-owned luxury goods including designer watches, handbags, jewellery and antiques. The management team has built a profitable business with a strong brand selling high-quality products, centred on exceptional customer service.

£25,000 was also invested in The MI Downing UK Micro-Cap Growth Fund, which invests in a concentrated portfolio of 25-30 UK listed companies at the smallest end of the UK equity market.

No valuation adjustments have been made in the period, with all investments remaining at cost.

Outlook
The task of building the Generalist Share portfolio has very recently begun. We will continue to seek investment opportunities as we develop the investment portfolio.

Downing LLP

Portfolio of investments

The following investments were held at 31 March 2017:

     

 

Cost
 

 

Valuation
Valuation
Movement
in year
 

% of portfolio
     £'000  £'000 £'000  
           
Venture Capital investments          
Xupes Limited   200 200 - 0.9%
MI Downing UK Micro-Cap Growth Fund**   25 25 - 0.1%
           
    225 225 - 1.0%
           
Cash at bank and in hand     21,225   99.0%
           
Total investments     21,450   100.0%

** non-qualifying investment

All Venture Capital investments are incorporated in England and Wales.

INVESTMENT MANAGER'S REPORT- HEALTHCARE SHARE POOL

Introduction
The Healthcare Share pool raised a total of £4.5m to 31 March 2017.  The process of investing the funds is under way with £25,000 invested during the year.

Net asset value and results
At 31 March 2017, the NAV of a Healthcare share stood at 99.7p, a decrease of 0.3p on the initial price, resulting from the initial "cash drag" of holding uninvested funds.
The return on ordinary activities for the Healthcare Share pool for the year was a loss of £6,000, being a revenue loss of £3,000 and a capital loss of £3,000.

Venture Capital investments
Investment activity
One investment of £25,000 was made in The MI Downing UK Micro-Cap Growth Fund, which invests in a concentrated portfolio of 25-30 UK listed companies at the smallest end of the UK equity market.

No valuation adjustments have been made in the period, with the investment remaining at cost.

Outlook
The task of building the Healthcare Share portfolio has very recently begun. We will continue to seek investment opportunities as we develop the investment portfolio.

Downing LLP

Portfolio of investments

The following investments were held at 31 March 2017:

     

 

Cost
 

 

Valuation
Valuation
Movement
in year
 

% of portfolio
     £'000  £'000 £'000  
           
Venture Capital investments          
MI Downing UK Micro-Cap Growth Fund**   25 25 - 0.6%
           
    25 25 - 0.6%
           
Cash at bank and in hand     4,500   99.4%
           
Total investments     4,525   100.0%

** non-qualifying investment

All Venture Capital investments are incorporated in England and Wales.

Directors' responsibilities
The Directors are responsible for preparing the Report of the Directors, the Directors' Remuneration Report and the financial statements in accordance with applicable law and regulations. They are also responsible for ensuring that the Annual Report includes information required by the Listing Rules of the Financial Conduct Authority.

Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom accounting standards and applicable law) including Financial Reporting Standard 102, the financial reporting standard applicable in the UK and Republic of Ireland (FRS 102). Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements the Directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
- carry out a robust assessment of the principal risks facing the Company as set out in the Strategic report.
             
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions, to disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In addition, each of the Directors considers that the Annual Report, taken as a whole, is fair, balanced and understandable and provides the information necessary for Shareholders to assess the Company's position, performance, business model and strategy.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements and other information included in the annual reports may differ from legislation in other jurisdictions.

Directors' statement pursuant to the Disclosure Rules and Transparency Rules
Each of the Directors confirms that, to the best of each person's knowledge:

- the financial statements, which have been prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

- the management report included within the Report of the Directors, Strategic report, Chairman's Statement, Investment Manager's Report, and Review of Investments includes a fair review of the development and performance of the business and the position of the company, together with a robust assessment of the principal risks and uncertainties that it faces.
             
By order of the Board

Grant Whitehouse
Secretary of Downing FOUR VCT plc

INCOME STATEMENT
for the year ended 31 March 2017


 
  Year ended 31 March 2017

 

Year ended 31 March 2016
     

 

 
    Revenue Capital Total   Revenue Capital Total
    £'000 £'000 £'000   £'000 £'000 £'000
                 
Income                
 - continuing   1,731 268 1,999   1,790 - 1,790
 - acquisition   - - -   1,645 - 1,645
                 
    1,731 268 1,999   3,435 - 3,435

 

               
Net gain/(loss) on investments                
 - continuing   - 1,980 1,980   - 899 899
 - acquisition   - - -   - (18) (18)
                 
    1,731 2,248 3,979   3,435 881 4,316
                 
Investment management fees   (328) (328) (656)   (389) (389) (778)
                 
Other expenses   (515) - (515)   (568) - (568)
                 
Return on ordinary activities before tax 888 1,920 2,808   2,478 492 2,970
                 
Tax on total comprehensive income and ordinary activities   (151) - (151)   (351) - (351)
                 
Return attributable to equity shareholders, being total comprehensive income for the year  

737
 

1,920
 

2,657
   

2,127
 

492
 

2,619
                 
Basic and diluted return per share:              
DSO Ordinary Share   - - -   3.2p 2.4p 5.6p
DSO A Share   - - -   - - -
DSO B Share   0.3p 2.8p 3.1p   3.7p 2.8p 6.5p
DSO C Share   - - -   - - -
DSO D Share   0.6p 4.9p 5.6p   1.6p (1.0p) 0.6p
DP67 Share   0.7p 9.0p 9.7p   0.8p 1.5p 2.3p
DP2011 General Share   1.8p 0.4p 2.2p   2.4p (2.2p) 0.2p
DP2011 Structured Share   1.8p (1.1p) 0.7p   2.3p (2.4p) (0.1p)
DP2011 Low Carbon   1.1p 0.3p 1.4p   2.8p 2.8p 5.6p
Generalist   (1.0p) (1.0p) (2.0p)   - - -
Healthcare   (1.3p) (1.2p) (2.5p)   - - -

The total column within the Income Statement represents the Statement of Total Comprehensive Income of the Company prepared in accordance with Financial Reporting Standard 102 ("FRS 102").  The supplementary revenue return and capital return columns are prepared in accordance with the Statement of Recommenced Practice issued in November 2014 by the Association of Investment Companies ("AIC SORP").

INCOME STATEMENT (analysed by share pool)
for the year ended 31 March 2017

Split as:

DSO B Share pool


 
Year ended 31 March 2017

 

Year ended 31 March 2016
   

 

 

 

Revenue Capital Total   Revenue Capital Total

 

£'000 £'000 £'000   £'000 £'000 £'000
               
Income 177 93 270   1,047 - 1,047

 

             
Net gain on investments - 494 494   - 656 656
               
  177 587 764   1,047 656 1,703
               
Investment management fees (27) (27) (54)   (97) (97) (194)
               
Other expenses (55) - (55)   (98) - (98)
               
Return on ordinary activities before tax 95 560 655   852 559 1,411
               
Tax on total comprehensive income and ordinary activities (36) - (36)   (116) - (116)
               
Return attributable to equity shareholders, being total comprehensive income for the year 59 560 619   736 559 1,295

DSO D Share pool


 
Year ended 31 March 2017

 

Year ended 31 March 2016
   

 

 

 

Revenue Capital Total   Revenue Capital Total

 

£'000 £'000 £'000   £'000 £'000 £'000
               
Income 174 - 174   255 - 255

 

             
Net (loss)/gain on investments - 431 431   - (39) (39)
               
  174 431 605   255 (39) 216
               
Investment management fees (43) (43) (86)   (42) (42) (84)
               
Other expenses (80) - (80)   (81) - (81)
               
Return/(loss) on ordinary activities before tax 51 388 439   132 (81) 51
               
Tax on total comprehensive income and ordinary activities (2) - (2)   (3) - (3)
               
Return/(loss) attributable to equity shareholders, being total comprehensive income for the year 49 388 437   129 (81) 48

INCOME STATEMENT (analysed by share pool)
for the year ended 31 March 2017

DP67 Share pool


 
Year ended 31 March 2017

 

Period from 21 July 2015 to 31 March 2016

   

 

 

 

 

 

Revenue Capital Total   Revenue Capital Total

 

£'000 £'000 £'000   £'000 £'000 £'000
               
Income 325 175 500   204 - 204

 

             
Net gain on investments - 883 883   - 201 201
               
  325 1,058 1,383   204 201 405
               
Investment management fees (47) (47) (94)   (35) (35) (70)
               
Other expenses (70) - (70)   (61) - (61)
               
Return on ordinary activities before tax 208 1,011 1,219   108 166 274
               
Tax on total comprehensive income and ordinary activities (129) - (129)   (15) - (15)
               
Return attributable to equity shareholders, being total comprehensive income for the year 79 1,011 1,090   93 166 259

DP2011 General Share pool


 
Year ended 31 March 2017

 

Period from 21 July 2015 to 31 March 2016

   

 

 

 

 

 

Revenue Capital Total   Revenue Capital Total

 

£'000 £'000 £'000   £'000 £'000 £'000
               
Income 521 - 521   659 - 659

 

             
Net gain/ (loss) on investments - 164 164   - (271) (271)
               
  521 164 685   659 (271) 388
               
Investment management fees (97) (97) (194)   (80) (80) (160)
               
Other expenses (145) - (145)   (119) - (119)
               
Return/(loss) on ordinary activities before tax 279 67 346   460 (351) 109
               
Tax on total comprehensive income and ordinary activities 1 - 1   (77) - (77)
               
Return/(loss) attributable to equity shareholders, being total comprehensive income for the year 280 67 347   383 (351) 32

DP2011 Structured Share pool


 
Year ended 31 March 2017

 

Period from 21 July 2015 to 31 March 2016

   

 

 

 

 

 

Revenue Capital Total   Revenue Capital Total

 

£'000 £'000 £'000   £'000 £'000 £'000
               
Income 354 - 354   429 - 429

 

             
Net loss on investments - (57) (57)   - (201) (201)
               
  354 (57) 297   429 (201) 228
               
Investment management fees (63) (63) (126)   (56) (56) (112)
               
Other expenses (100) - (100)   (78) - (78)
               
Return/(loss) on ordinary activities before tax 191 (120) 71   295 (257) 38
               
Tax on total comprehensive income and ordinary activities 1 - 1   (48) - (48)
               
Return/(loss) attributable to equity shareholders, being total comprehensive income for the year 192 (120) 72   247 (257) (10)

DP2011 Low Carbon Share pool


 
Year ended 31 March 2017

 

Period from 21 July 2015 to 31 March 2016

   

 

 

 

 

 

Revenue Capital Total   Revenue Capital Total

 

£'000 £'000 £'000   £'000 £'000 £'000
               
Income 179 - 179   353 - 353

 

             
Net gain on investments - 67 67   - 253 253
               
  179 67 246   353 253 606
               
Investment management fees (43) (43) (86)   (40) (40) (80)
               
Other expenses (65) - (65)   (59) - (59)
               
Return on ordinary activities before tax 71 24 95   254 213 467
               
Tax on total comprehensive income and ordinary activities 12 - 12   (43) - (43)
               
Return attributable to equity shareholders, being total comprehensive income for the year 83 24 107   211 213 424

Generalist Share pool


 
Year ended 31 March 2017

 

Period from 21 July 2015 to 31 March 2016

   

 

 

 

 

 

Revenue Capital Total   Revenue Capital Total

 

£'000 £'000 £'000   £'000 £'000 £'000
               
Income - - -   - - -

 

             
Net gain on investments - - -   - - -
               
  - - -   - - -
               
Investment management fees (5) (5) (10)   - - -
               
Other expenses (1) - (1)   - - -
               
Return on ordinary activities before tax (6) (5) (11)   - - -
               
Tax on total comprehensive income and ordinary activities - - -   - - -
               
Return attributable to equity shareholders, being total comprehensive income for the year (6) (5) (11)   -  

-
-

Healthcare Share pool


 
Year ended 31 March 2017

 

Period from 21 July 2015 to 31 March 2016

   

 

 

 

 

 

Revenue Capital Total   Revenue Capital Total

 

£'000 £'000 £'000   £'000 £'000 £'000
               
Income - - -   - - -

 

             
Net gain on investments - - -   - - -
               
  - - -   - - -
               
Investment management fees (3) (3) (6)   - - -
               
Other expenses - - -   - - -
               
Return on ordinary activities before tax (3) (3) (6)   - - -
               
Tax on total comprehensive income and ordinary activities - - -   - - -
               
Return attributable to equity shareholders, being total comprehensive income for the year (3) (3) (6)   -  

-
-

BALANCE SHEET
as at 31 March 2017


 
  2017

 

2016
  £'000   £'000

 

       
Fixed assets        
Investments   27,095   35,351
         
Current assets        
Debtors   1,709   1,077
Cash at bank and in hand   31,441   9,533
    33,150   10,610
         
 

Creditors: amounts falling due within one year
   

(833)
   

(879)
         
Net current assets 32,317   9,731
         
Net assets   59,412   45,082
         

8BCapital and reserves

       
Called up Share capital   144   161
Capital redemption reserve   31   5
Special reserve   30,620   44,441
Share premium account   10,074   -
Funds held in respect of shares not yet allotted   16,137   -
Revaluation reserve   (1,980)   (2,645)
Capital reserve - realised   3,331   1,949
Revenue reserve   1,055   1,171
         
Total equity shareholders' funds   59,412   45,082
       
Basic and diluted net asset value per Share:      
DSO B Share   20.7p   17.6p
DSO C Share   0.1p   0.1p
DSO D Share   76.1p   75.6p
DP67 Share   66.1p   60.4p
DP2011 General Ordinary Share   15.0p   75.1p
DP2011 General A Share   31.2p   5.9p
DP2011 Structured Ordinary Share   4.8p   77.1p
DP2011 Structured A Share   31.9p   6.1p
DP2011 Low Carbon   43.0p   91.6p
Generalist   99.9p   N/A
Healthcare   99.7p   N/A

BALANCE SHEET (ANALYSED BY SHARE POOL)
as at 31 March 2017

DSO B Shares


 
  2017

 

2016
    £'000

 

£'000
Fixed assets        
Investments   1,752   3,034
Current assets        
Debtors   74   20
Cash at bank and in hand   2,475   634
    2,549   654
Creditors: amounts falling due within one year   (151)   (160)
Net current assets   2,398   494
Net assets   4,150   3,528
         

Capital and reserves

       
Called up share capital - B Shares   20   20
Called up share capital - C Shares   30   30
Capital redemption reserve   31   -
Special reserve   3,186   3,662
Share premium reserve   -   -
Revaluation reserve   (1,108)   (1,485)
Capital reserve - realised   1,705   1,231
Revenue reserve   286   70
Total equity shareholders' funds   4,150   3,528

DSO D Shares


 
  2017

 

2016
    £'000

 

£'000
Fixed assets        
Investments   5,365   5,689
Current assets        
Debtors   254   162
Cash at bank and in hand   435   159
    689   321
Creditors: amounts falling due within one year   (62)   (65)
Net current assets   627   256
Net assets   5,992   5,945
         

Capital and reserves

       
Called up share capital   8   8
Capital redemption reserve   -   -
Special reserve   6,598   6,802
Share premium reserve   -   -
Revaluation reserve   (9)   (338)
Capital reserve - realised   (510)   (538)
Revenue reserve   (95)   11
Total equity shareholders' funds   5,992   5,945

DP67 Shares


 
  2017

 

2016
    £'000

 

£'000
Fixed assets        
Investments   5,047   5,828
Current assets        
Debtors   392   198
Cash at bank and in hand   2,396   911
    2,788   1,109
Creditors: amounts falling due within one year   (404)   (100)
Net current assets   2,384   1,009
Net assets   7,431   6,837
         

Capital and reserves

       
Called up share capital   11   11
Capital redemption reserve   -   -
Special reserve   5,836   5,897
Share premium reserve   -   -
Revaluation reserve   396   482
Capital reserve - realised   1,070   354
Revenue reserve   118   93
Total equity shareholders' funds   7,431   6,837

DP2011 General Shares


 
  2017

 

2016
    £'000

 

£'000
Fixed assets        
Investments   7,385   10,446
Current assets        
Debtors   585   390
Cash at bank and in hand   266   2,186
    851   2,576
Creditors: amounts falling due within one year   (143)   (196)
Net current assets   708   2,380
Net assets   8,093   12,826
         

Capital and reserves

       
Called up share capital - Ordinary Shares   16   16
Called up share capital - A Shares   18   18
Capital redemption reserve   -   -
Special reserve   7,805   12,681
Share premium reserve   -   -
Revaluation reserve   (641)   (657)
Capital reserve - realised   466   385
Revenue reserve   429   383
Total equity shareholders' funds   8,093   12,826

DP2011 Structured Shares


 
  2017

 

2016
    £'000

 

£'000
Fixed assets        
Investments   4,233   7,356
Current assets        
Debtors   365   230
Cash at bank and in hand   28   1,556
    393   1,786
Creditors: amounts falling due within one year   (94)   (141)
Net current assets   299   1,645
Net assets   4,532   9,001
         

Capital and reserves

       
Called up share capital - Ordinary Shares   11   11
Called up share capital - A Shares   13   13
Capital redemption reserve   -   -
Special reserve   4,565   8,929
Share premium reserve   -   -
Revaluation reserve   (682)   (463)
Capital reserve - realised   346   264
Revenue reserve   279   247
Total equity shareholders' funds   4,532   9,001

DP2011 Low Carbon Shares


 
  2017

 

2016
    £'000

 

£'000
Fixed assets        
Investments   3,065   2,998
Current assets        
Debtors   140   46
Cash at bank and in hand   116   4,011
    256   4,057
Creditors: amounts falling due within one year   (59)   (113)
Net current assets   197   3,944
Net assets   3,262   6,942
         

Capital and reserves

       
Called up share capital   8   8
Capital redemption reserve   -   -
Special reserve   2,639   6,470
Share premium reserve   -   -
Revaluation reserve   67   -
Capital reserve - realised   253   253
Revenue reserve   295   211
Total equity shareholders' funds   3,262   6,942

Generalist


 
  2017

 

2016
    £'000

 

£'000
Fixed assets        
Investments   225   -
Current assets       -
Debtors   -   -
Cash at bank and in hand   21,225   -
    21,225   -
Creditors: amounts falling due within one year   (10)   -
Net current assets   21,215   -
Net assets   21,440   -
         

Capital and reserves

       
Called up share capital   7   -
Special reserve   (5)   -
Share premium reserve   7,633   -
Funds held in respect of shares not yet allotted   14,012   -
Revenue reserve   (207)   -
Total equity shareholders' funds   21,440   -

Healthcare


 
  2017

 

2016
    £'000

 

£'000
Fixed assets        
Investments   25   -
Current assets       -
Debtors   -   -
Cash at bank and in hand   4,500   -
    4,500   -
Creditors: amounts falling due within one year   (7)   -
Net current assets   4,493   -
Net assets   4,518   -
         

Capital and reserves

       
Called up share capital   2   -
Special reserve   (3)   -
Share premium reserve   2,441   -
Funds held in respect of shares not yet allotted   2,125   -
Revenue reserve   (47)   -
Total equity shareholders' funds   4,518   -

STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2017

  Share
capital
Capital
Redemption
reserve
Special
reserve
Share
premium
account
Funds held in respect of
 shares not yet allotted
Revaluation
Reserve
Capital
reserve
-realised
Revenue
reserve
Total
  £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
                   
At 31 March 2015 84 5 20,895 2,794 - (1,544) 2,500 1,181 25,915
Total comprehensive income - - - - - (1,194) 1,686 2,127 2,619
Issue of share capital on acquisition 77 - - 35,999 - - - - 36,076
Share premium cancellation - - 38,692 (38,692) - - - - -
Transfer between reserves* - - (15,056) - - 93 15,531 (568) -
Transactions with owners                  
Dividend paid - - - - - - (17,768) (1,569) (19,337)
Purchase of own shares - - (8) (30) - - - - (38)
Share issue costs - - (82) (71) - - - - (153)
At 31 March 2016 161 5 44,441 - - (2,645) 1,949 1,171 45,082
Total comprehensive income - - - - - 599 1,321 737 2,657
Transfer between reserves* - - (13,772) - - 66 13,706 - -
Unallotted shares - - - - 16,137 - - - 16,137
Transactions with owners                  
Dividend paid - - - - - - (13,645) (608) (14,253)
Cancellation of shares (26) 26 - - - - - - -
Purchase of own shares - - (49) - - - - - (49)
Issue of shares 9 - - 10,074 - - - - 10,083
Share issue costs - - - - - - - (245) (245)
At 31 March 2017 144 31 30,620 10,074 16,137 (1,980) 3,331 1,055 59,412

* A transfer of £66,000 (2016: £93,000) representing previously recognised realised gains on disposal of investments during the year ended 31 March 2017 has been made from the Revaluation Reserve to the Capital Reserve realised.  A transfer of £13.7 million (2016: £15.5 million)  representing realised gains on disposal of investments, less capital expenses and capital dividends in the year was made from Capital Reserve - realised to Special reserve.  In 2016 a transfer of £568,000 was made from Capital Reserve - realised to Revenue reserve to reconcile the Ordinary Share pool reserves.

STATEMENT OF CASH FLOWS
for the year ended 31 March 2017

  Year ended 31 March 2017
  DSO B
Share
pool
DSO D
Share
pool
DP67 Share
pool
DP2011 Gen Share pool DP2011 Struc
Share
pool
DP2011
LC Share pool
Generalist Healthcare Total
    £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
                   
Cash flows from operating activities                
Return on ordinary activities before taxation 655 439 1,219 346 71 95 (11) (6) 2,808
Losses/(gains) on investments (494) (431) (883) (164) 57 (67) - - (1,980)
Decrease/(increase) in debtors 13 (91) 174 (193) (136) (92) - - (325)
(Decrease)/increase in creditors (75) 13 21 (18) (21) (29) 11 6 (92)
Net cash inflow from operating activities   99 (70) 531 (29) (29) (93) - - 406
Corporation tax paid  

(110)
 

(15)
 

(211)
 

(32)
 

(26)
 

(14)
 

-
 

-
 

(408)
Net cash generated from operating activities   (11) (85) 320 (61) (55) (107) - - (2)

 

                   
Cash flow from investing activities                
Purchase of  investments - (145) (700) - - - (225) (25) (1,095)

Proceeds from disposal of investments

  1,776 755 1,664 3,226 3,066 - (225) (25) 10,237
Net cash inflow/(outflow) from investing activities 1,776 755 1,664 3,226 3,066 - (225) (25) 10,237

 

                   
Net cash flows before financing  

1,765
 

670
 

1,984
 

3,165
 

3,011
 

(107)
 

(225)
 

(25)
 

10,235

 

                 
Cash flows from financing activities                

Repurchase of shares

  - - (49) - - - - - (49)

Issue of share capital

  - - - - - - 7,438 2,400 9,838

Unallotted shares

  - - - - - - 14,012 2,125 16,137
Equity dividends paid - (394) (450) (5,085) (4,539) (3,788) - - (14,253)
Net cash (outflow)/ inflow from financing - (394) (499) (5,085) (4,539) (3,788) 21,450 4,525 11,673

 

                   
Net movement in cash                  
Cash and cash equivalents at start of year 710 159 911 2,186 1,556 4,011 - - 9,533
Cash and cash equivalents at end of year 2,475 435 2,396 266 28 116 21,225 4,500 31,441

 

                   
Cash and cash equivalents comprise                
Cash at bank and in hand 2,475 435 2,396 266 28 116 21,225 4,500 31,441
Total cash and cash equivalents 2,475 435 2,396 266 28 116 21,225 4,500 31,441

STATEMENT OF CASH FLOWS
for the year ended 31 March 2016

 

  Year ended 31 March 2016  

 

     
DSO Ord
Share
pool
DSO B
Share
pool
DSO D
Share
pool
DP67 Share
pool
DP2011 Gen
Share
pool
DP2011
Struc
Share
pool
DP2011
LC Share pool
Total  
    £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000  
                     
Cash flows from operating activities              
Return on ordinary activities before taxation 620 1,411 51 274 109 38 467 2,970
(Gains)/losses on investments (282) (656) 39 (201) 271 201 (253) (881)
Decrease/(increase) in debtors 35 260 (77) (94) (2) (16) (30) 136
Increase/(decrease) in creditors - (57) (53) 10 31 29 55 (95)
Net cash inflow/(outflow) from operating activities   373 958 (40) (11) 409 252 189 2,130  

Corporation tax paid

  (88) (225) (27) (153) (249) (126) (139) (1,007)  
Net cash generated /(utlilised) from operating activities   285 733 (67) (164) 160 126 50 1,123  

 

                   
Cash flows from investing activities                
Purchases of investments   (383) (806) (552) (2,625) (38) - - (4,404)  
Proceeds from disposal of investments   6,233 12,091 1,231 1,587 2,401 1,628 4,133 29,304  
Cash acquired in merger   - - - 2,362 101 81 37 2,581  
Net cash inflow from investing activities 5,850 11,285 679 1,324 2,464 1,709 4,170 27,481  

 

                   
Net cash inflow before financing 6,135 12,018 612 1,160 2,624 1,835 4,220 28,604  

 

                   

Cash flows from financing

                   

Equity dividends paid

  (6,124) (11,746) (393) (226) (392) (267) (189) (19,337)  

Share issue costs

  - (30) (52) (23) (16) (12) (20) (153)  

Purchase of own shares

  - - (8) - (30) - - (38)  
Net cash outflow from financing (6,124) (11,776) (453) (249) (438) (279) (209) (19,528)  

 

                   

Net increase in cash

  11 242 159 911 2,186 1,556 4,011 9,076  
Cash and cash equivalents at start of year   65 392 - - - - - 457  
Cash and cash equivalents at end of year   76 634 159 911 2,186 1,556 4,011 9,533  

 

                   
Cash and cash equivalents comprise                

Cash at bank and in hand

  76 634 159 911 2,186 1,556 4,011 9,533  
Total cash and cash equivalents 76 634 159 911 2,186 1,556 4,011 9,533  

NOTES TO THE ACCOUNTS
for the year ended 31 March 2017

 1. Accounting policies
Basis of accounting
The Company has prepared its financial statements in accordance with the Financial Reporting Standard 102 ("FRS 102") and in accordance with the Statement of Recommended Practice "Financial Statements of Investment Trust Companies and Venture Capital Trusts" revised November 2014 ("SORP").

The Company implements new Financial Reporting Standards ("FRS") issued by the Financial Reporting Council when required.

The financial statements are presented in pounds sterling and rounded to thousands.  The Company's functional and presentational currency is pounds sterling.

Presentation of Income Statement
In order to better reflect the activities of a Venture Capital Trust, and in accordance with the SORP, supplementary information which analyses the Income Statement between items of a revenue and capital nature has been presented alongside the Income Statement. The revenue return is the measure the Directors believe appropriate in assessing the Company's compliance with certain requirements set out in Part 6 of the Income Tax Act 2007.

Judgements in applying accounting policies and key sources of estimation uncertainty
Investments
All investments are designated as "fair value through profit or loss" assets due to investments being managed and performance evaluated on a fair value basis, in accordance with Section 9.9B(a) of FRS 102. A financial asset is designated within this category if it is both acquired and managed on a fair value basis, with a view to selling after a period of time, in accordance with the Company's documented investment policy.
It is possible to determine the fair values within a reasonable range of estimates.  The fair value of an investment upon acquisition is deemed to be cost. Thereafter investments are measured at fair value in accordance with FRS 102 sections 11 and 12, together with the International Private Equity and Venture Capital Valuation Guidelines ("IPEV").

Structured Product investments are measured using bid prices.

For unquoted investments, fair value is established by using the IPEV guidelines. The valuation methodologies for unquoted entities used by the IPEV to ascertain the fair value of an investment are as follows:

- Price of recent investment;
- Multiples;
- Net assets;
- Discounted cash flows or earnings (of underlying business);
- Discounted cash flows (from the investment); and
- Industry valuation benchmarks.

The methodology applied takes account of the nature, facts and circumstances of the individual investment and uses reasonable data, market inputs, assumptions and estimates in order to ascertain fair value. The valuation of investments is detailed in Note 9 of the full financial statements.

Gains and losses arising from changes in fair value are included in the Income Statement for the year as a capital item and transaction costs on acquisition or disposal of the investment are expensed. Where an investee company has gone into receivership or liquidation, or administration (where there is little likelihood of recovery), the loss on the investment, although not physically disposed of, is treated as being realised.

It is not the Company's policy to exercise significant influence or joint control over investee companies. Therefore, the results of these companies are not incorporated into the Income Statement except to the extent of any income accrued. This is in accordance with FRS 102 sections 14 and 15 and the SORP, that do not require portfolio investments to be accounted for using the equity method of accounting.

Income
Dividend income from investments is recognised when the Shareholders' rights to receive payment has been established, normally the ex-dividend date.

Interest income is accrued on a time apportionment basis, by reference to the principal sum outstanding and at the effective rate applicable, and only where there is reasonable certainty of collection in the foreseeable future.

Distributions from investments in limited liability partnerships ("LLPs") are recognised as they are paid to the Company. Where such items are considered capital in nature they are recognised as capital profits.

Expenses
All expenses are accounted for on an accruals basis, and are stated inclusive of any VAT charged. In respect of the analysis between revenue and capital items presented within the Income Statement, all expenses have been presented as revenue items except as follows:

- Expenses which are incidental to the disposal of an investment are deducted from the disposal proceeds of the investment;
- Expenses are split and presented partly as capital items where a connection with the maintenance or enhancement of the value of the investments held can be demonstrated. The Company has adopted a policy of charging 50% of the investment management fees to the revenue account and 50% to the capital account to reflect the Board's estimated split of investment returns which will be achieved by the company over the long term.

Expenses and liabilities not specific to a share class are generally allocated pro rata to the net asset values of each share class.

Taxation
The tax effects on different items in the Income Statement are allocated between capital and revenue on the same basis as the particular item to which they relate, using the Company's effective rate of tax for the accounting period.

Due to the Company's status as a Venture Capital Trust, and the continued intention to meet the conditions required to comply with Part 6 of the Income Tax Act 2007, no provision for taxation is required in respect of any realised or unrealised appreciation of the Company's investments which arises.

Deferred taxation, which is not discounted, is provided in full on timing differences that result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the accounts.

Other debtors and other creditors
Other debtors (including accrued income) and other creditors are included within the accounts at amortised cost.

Issue costs
Issue costs in relation to the shares issued for each share class have been deducted from the share premium account, special reserve or revenue reserve, as applicable, for the relevant share class.

Funds held in respect of shares not yet allotted
Cash received in respect of applications for new shares that have not yet been allotted is shown as "Funds held in respect of shares not yet allotted" and recorded on the Balance Sheet.

Acquisitions
Acquisitions made during the year are accounted for using the acquisition method.  The purchase consideration is measured at the fair value of equity issued compared to the fair value of the assets and liabilities acquired.

Operating segments
The Company has one operating segment.

2. Basic and diluted return per share

  Weighted average number
of shares in issue
Revenue
Return
Capital gain/(loss) Total comprehensive income
Return per share is calculated on the following:   £'000 £'000 £'000
         
         
Year ended 31 March 2017 DSO B Shares 19,911,070 59 560 619
  DSO C Shares 29,926,070 - - -
  DSO D Shares 7,867,247 49 388 437
  DP67 Shares 11,239,785 79 1,011 1,090
  DP2011 General Shares 15,644,066 280 67 347
  DP2011 General A Shares 18,418,614 - - -
  DP2011 Structured  Shares 10,678,725 192 (120) 72
  DP2011 Structured A Shares 12,572,817 - - -
  DP2011 Low Carbon Shares 7,575,419 83 24 107
  Generalist Shares 537,081 (6) (5) (11)
  Healthcare Shares 234,044 (3) (3) (6)
           
Year ended 31 March 2016 DSO Ordinary Shares 10,228,157 328 243 571
  DSO A Shares 15,506,488 - - -
  DSO B Shares 19,911,070 736 559 1,295
  DSO C Shares 29,926,070 - - -
  DSO D Shares 7,814,325 129 (81) 48
  DP67 Shares 11,320,258 93 166 259
  DP2011 General Shares 15,663,577 383 (351) 32
  DP2011 General A Shares 18,438,125 - - -
  DP2011 Structured  Shares 10,678,725 247 (257) (10)
  DP2011 Structured A Shares 12,572,817 - - -
  DP2011 Low Carbon Shares 7,575,419 211 213 424

As the Company has not issued any convertible securities or share options, there is no dilutive effect on return per DSO B Share, DSO C Share, DSO D Share, DP67 Share, DP2011 General Share, DP2011 General A Share, DP2011 Structured Ordinary Share, DP2011 Structured A Share, DP2011 Low Carbon Share, Generalist Shares or Healthcare Shares.  The return per share disclosed therefore represents both the basic and diluted return per Share for all classes of Share.

3. Basic and diluted net asset value per share

    2017   2016
    Net asset value   Net asset value
   

  Shares in issue
Pence per
share
   

 

£'000
  Pence per
share
   

 

£'000
  2017 2016              
                   
DSO Ordinary Shares - 10,288,157 -   -   -   3
DSO A Shares - 15,506,488 -   -   -   -
DSO B Shares 19,911,070 19,911,070 20.7   4,119   17.6   3,508
DSO C Shares 29,926,070 29,926,070 0.1   31   0.1   20
DSO D Shares 7,867,247 7,867,247 76.1   5,992   75.6   5,945
DP67 Shares 11,239,785 11,320,258 66.1   7,431   60.4   6,837
DP2011 General Ordinary Shares 15,644,066 15,644,066 15.0   2,347   76.1   11,900
DP2011 General A Shares 18,418,614 18,418,614 31.2   5,746   5.9   926
DP2011 Structured Ordinary Shares 10,678,725 10,678,725 4.8   515   78.2   8,349
DP2011 Structured A Shares   12,572,817   12,572,817 31.9   4,017   6.1   652
DP2011 Low Carbon Shares 7,575,419 7,575,419 43.0   3,262   91.6   6,942
Generalist Shares 7,438,093 - 99.9   7,427       -
Healthcare Shares 2,400,195 - 99.7   2,394       -
Funds held in respect of shares not yet allotted   16,137       -
Net assets per Balance Sheet     59,412       45,082

The Directors allocate the assets and liabilities of the Company between the DSO B Shares, DSO C Shares, DSO D Shares, DP67 Shares, DP2011 General Ordinary Shares, DP2011 General A Shares, DP2011 Structured Shares, DP2011 Structured A Shares, DP2011 Low Carbon Shares, Generalist Shares and Healthcare Shares such that each share class has sufficient net assets to represent its dividend and return of capital rights as described in note 12 of the full financial statements..
As the Company has not issued any convertible shares or share options, there is no dilutive net asset value per DSO B Share, per DSO C Share, per DSO D Share, per DP67 Share, per DP2011 General Ordinary Share, per DP2011 General A Share, per DP2011 Structured Ordinary Share, per DP2011 Structured A Share, per DP2011 Low Carbon Share, per Generalist Share or per Healthcare Share. The net asset value per share disclosed therefore represents both the basic and diluted net asset value per DSO B Share, per DSO C Share, per DSO D Share, per DP67 Share, per DP2011 General Ordinary Share, per DP2011 General A Share, per DP2011 Structured Ordinary Share, per DP2011 Structured A Share per DP2011 Low Carbon Share, per Generalist Share, and per Healthcare Share.

4. Principal risks
The Company's investment activities expose the Company to a number of risks associated with financial instruments and the sectors in which the Company invests. The principal financial risks arising from the Company's operations are:

- Market risks;
- Credit risk; and
- Liquidity risk.

The Board regularly reviews these risks and the policies in place for managing them. There have been no significant changes to the nature of the risks that the Company is exposed to over the year and there have also been no significant changes to the policies for managing those risks during the year.

The risk management policies used by the Company in respect of the principal financial risks and a review of the financial instruments held at the year end are provided below:

Market Risks
As a VCT, the Company is exposed to investment risks in the form of potential losses and gains that may arise on the investments it holds in accordance with its investment policy. The management of these market risks is a fundamental part of investment activities undertaken by the Investment Manager and overseen by the Board. The Manager monitors investments through regular contact with management of investee companies, regular review of management accounts and other financial information and attendance at investee company board meetings. This enables the Manager to manage the investment risk in respect of individual investments. Investment risk is also mitigated by holding a diversified portfolio spread across various business sectors and asset classes.

The key market risks to which the Company is exposed are:
- Investment price risk; and
- Interest rate risk.

Investment price risk
Investment price risk arises from uncertainty about the future prices and valuations of financial instruments held in accordance with the Company's investment objectives. It represents the potential loss that the Company might suffer through market price movements in respect of Structured Products, and also changes in the fair value of unquoted investments that it holds.

Interest rate risk
The Company accepts exposure to interest rate risk on floating-rate financial assets through the effect of changes in prevailing interest rates. The Company receives interest on its cash deposits at a rate agreed with its bankers. Investments in loan stock attract interest predominately at fixed rates.

Credit risk
Credit risk is the risk that a counterparty to a financial instrument is unable to discharge a commitment to the Company made under that instrument. The Company is exposed to credit risk through its holdings of loan stock in investee companies, cash deposits, debtors and Structured Products. Credit risk relating to loan stock investee companies is considered to be part of market risk.

Liquidity risk
Liquidity risk is the risk that the Company encounters difficulties in meeting obligations associated with its financial liabilities. Liquidity risk may also arise from either the inability to sell financial instruments when required at their fair values or from the inability to generate cash inflows as required.

ANNOUNCEMENT BASED ON AUDITED ACCOUNTS
The financial information set out in this announcement does not constitute the Company's statutory financial statements in accordance with section 434 Companies Act 2006 for the year ended 31 March 2017, but has been extracted from the statutory financial statements for the year ended 31 March 2017 which were approved by the Board of Directors on 31 July 2017 and will be delivered to the Registrar of Companies. The Independent Auditor's Report on those financial statements was unqualified and did not contain any emphasis of matter nor statements under s 498(2) and (3) of the Companies Act 2006.

The statutory accounts for the year ended 31 March 2016 have been delivered to the Registrar of Companies and received an Independent Auditors report which was unqualified and did not contain any emphasis of matter nor statements under s 498(2) and (3) of the Companies Act 2006.




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Downing FOUR VCT plc via Globenewswire


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Downing FOUR VCT plc : Final Results - RNS