Cambridge, United Kingdom
Cambridge, United Kingdom

Abcam plc is a global biotech company based in the Cambridge Science Park in Cambridge, UK, with offices in Cambridge , San Francisco, Hong Kong, Shanghai, and Tokyo. Wikipedia.


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News Article | May 24, 2017
Site: globenewswire.com

Hargreave Hale AIM VCT 1 Plc Unaudited Interim Results for the six month period ending 31 March 2017 * 30 September 2016 financial highlights represent annual results ** Calculated as total expenses (annualised for half yearly results) minus ad hoc legal costs and adjusted for trail commission written off, divided by period end net assets INVESTMENT OBJECTIVE The objective of the VCT is to achieve long term capital growth and to maximise tax free distributions to shareholders by investing in a diversified portfolio of small UK companies primarily traded on AIM. At least 70% of the Company's funds must be invested in qualifying holdings within three years of raising the funds. The balance of the Company's funds will be invested in liquid assets (such as fixed income securities and bank deposits) and non-qualifying equity investments on an opportunistic basis. The Company is managed as a Venture Capital Trust in order that shareholders in the Company may benefit from the tax relief available. INTRODUCTION In the first half of the financial year the Net Asset Value (NAV) per share increased from 75.93 pence to 78.12 pence equivalent to an increase of 5.8% after adding back the 2.25 pence dividend distributed in January 2017. During the same period the FTSE 100 Total Return Index rose 8.1% and the FTSE AIM All Share Total Return Index rose 14.3%. RESULTS The gain per share for the six month period was 3.98 pence per share (comprising revenue losses of 0.14 pence and capital gains of 4.12 pence). At 31 March 2017 the total return since inception of the fund was 122.37 pence. INVESTMENTS The investment manager, Hargreave Hale Limited, invested a further £3.44 million in 9 qualifying companies during the period of which 6 were AIM companies and 3 unquoted. The fair value of qualifying investments at 31 March 2017 was £33.33 million invested in 69 AIM companies and 10 unquoted companies. The balance of the funds was held in a mix of cash and non-qualifying equities. At 31 March 2017 the VCT was 87.30% invested as measured by HMRC. DIVIDEND A final dividend for the year ended 30 September 2016 of 2.25 pence was paid on 17 January 2017. The directors continue to maintain a policy of distributing at least 5% of the year end NAV to shareholders. An interim dividend of 1.75 pence (2016: 1.75p) will be paid on 30 June 2017, with an ex-dividend date of 8 June 2017 and a record date of 9 June 2017. BUYBACKS We have been able to maintain our policy of offering our shareholders an efficient exit route through the buyback scheme. In total, 318,221 shares were repurchased during the six month period ending 31 March 2017 at a weighted average price of 74.59 pence per share. Since the period a further 206,867 shares have been repurchased at a weighted average price of 76.07 pence. The Board continues to target a share price discount of 5% of the NAV per share (as measured against the mid-price) for market purchases. It should be emphasised that this target is non-binding and dependent on circumstances, including the Company's liquidity from time to time and market conditions. JOINT OFFER FOR SUBSCRIPTION - 2015 On 17 November 2016 the joint offer for subscription for new shares in Hargreave Hale AIM VCT 1 plc and Hargreave Hale AIM VCT 2 plc (launched in December 2015) was closed with £12.46 million raised for Hargreave Hale AIM VCT 1 plc. JOINT OFFER FOR SUBSCRIPTION - 2016 The Directors of the Company announced on 14 December 2016 the launch of a new joint offer for subscription for shares in both Hargreave Hale AIM VCTs to raise up to £10 million in the Company and up to £10 million in Hargreave Hale AIM VCT 2 plc. The offer was approved by shareholders of the Company at a general meeting on 12 January 2017 and was open to both new and existing shareholders. On 9 March 2017 Hargreave Hale AIM VCT 1 plc announced that it had received applications in excess of £10 million and, accordingly, the directors of Hargreave Hale AIM VCT 1 plc announced that they intended to utilise the £5 million Over-Allotment Facility. On 15 March 2017 the Company announced that the offer was fully subscribed, resulting in gross funds being received of £15 million and the issue of 18.96 million new shares in the Company. I am pleased to report that an immediate effect is that the ongoing expense ratio has dropped from 1.99% in September 2016 to 1.83% as at 31 March 2017. VCT REGULATION In order to comply with EU regulations regarding State Aid, the VCT rules were subject to substantial changes in the budget on 8 July 2015, which came into effect on 18 November 2015. In the round we do not think these rules have greatly affected the Company, although we will no longer be able to make non-qualifying investments in companies listed on AIM or UK government bonds. We are able to continue to invest via the Marlborough Special Situations Fund and we are free to invest in companies listed on the main market. BOARD CHANGES Giles Hargreave resigned as a director of the Company on 13 December 2016. I would like to take this opportunity to thank Giles for all his hard work on the Board. Following the resignation of Giles Hargreave, Oliver Bedford was appointed as a non-executive director of the Company on 13 December 2016. I am pleased to report that Giles still works for the manager and that we still benefit from his expertise and sagacity. ELECTRONIC COMMUNICATIONS Following approval at a general meeting on 12 January 2017, the Company has adopted electronic communications. Your Board believes this is beneficial to the Company and its shareholders and will result in substantial cost savings and improved timeliness and transparency of communications. AUDIT TENDER As announced in the annual report and accounts for the year ended 30 September 2016 a mandatory audit tender is required in the current year. I am pleased to confirm the process is underway and a further update will be given in due course. OUTLOOK The outcome of the American elections and Brexit vote does not appear to have had an adverse effect on the stock markets and the drop in the value of sterling seems to have a beneficial effect on exports and the balance of trade.  After the results of recent polls around the world I am reluctant to publish my views on the outcome of the forthcoming election! For the next two years it seems that we will suffer the media's fascination with the Brexit negotiations. Given that the EU has only managed to negotiate one trade deal, Canada, in the last 10 or so years it is hard to believe that the UK will achieve much in two. This will have little effect in the short term but may make the markets more volatile in the longer term. We continue to invest in companies with good management and robust business plans that we hope will weather any storms. Furthermore we are seeing more private equity opportunities in sound companies with future growth and these will not be affected by the vagaries of the market. INTRODUCTION This report covers the first half of the 2016/17 financial year, 1 October 2016 to 31 March 2017. The manager's report contains references to movements in the Net Asset Value (NAV) per share and Total Return per share (NAV per share plus distributed earnings per share). Movements in the NAV per share do not necessarily mirror the earnings per share (EPS) reported in the accounts and elsewhere, which convey the profit after tax for the company within the reported period as a function of the weighted average number of shares in issue for the period. INVESTMENT REPORT The period under review was a strong period for equities with markets taking Trump's election as the US President as a substantial positive despite the many political uncertainties that accompanied his victory.  Politics aside, global economic growth was robust, with US GDP growth and low interest rates leading developed markets higher. Although not new news, ongoing weakness in sterling helped UK equities continue their strong run with foreign earnings providing a welcome earnings kicker for export orientated companies. By and large, VCT regulations channel us into small domestically focussed growth stories, so we were unable to fully benefit from the trend that persisted through much of the first quarter of the financial year, although we did derive some benefit through companies such as Abcam and Craneware, as well as parts of our non-qualifying portfolio.  The positive mood within the major indices filtered down the chain and the second quarter saw a beneficial uptick in risk sentiment within smallcap equities, which favoured our qualifying investments. The second half of the financial year has already thrown up a number of risks and surprises, the French and UK elections being the most recent examples.  Doubtless there will be more; however, for now the UK economy feels strong enough and, although we have seen some evidence of weakness within the housing market and elements of the casual dining sub-sector, by and large the macro picture remains workable.  We expect the UK consumer to be more challenged this year as real wage growth turns negative, with some weakness already showing up in consumer confidence data. But in the round, we find most companies to be positive about the outlook and there seems to be reasonable demand for new capital to support their growth and development. PERFORMANCE In the six months to 31 March 2017, the NAV increased from 75.93 pence to 78.12 pence. A total of 2.25 pence per share was paid in dividends, giving investors a total return of 4.44 pence per share, which translates to a gain of 5.8%. During the same period the FTSE AIM All-Share Total Return gained 14.3%, whilst the FTSE 100 Total Return gained 8.1%. The qualifying investments made a net contribution of 2.86 pence per share with 34 out of the 79 making gains, 11 unchanged and 34 losing ground. The balance was the net of non-qualifying portfolio gains, running costs and investment income. Cohort was the top performing qualifying investment (+38.7%, +0.90 pence per share). The company confirmed the outlook for the year ending April 2017 and announced a series of material contract wins.  The company has a significant net cash balance and remains well positioned to benefit from structural growth in defence spending on specific technologies and platforms.  Animalcare also performed well (+55.4%, +0.82 pence per share). The company delivered a very strong trading update in January, prompting analysts to upgrade numbers. Product development and international sales are translating through to growth in revenues and profits. Maxcyte (+219.3%, +0.73 pence per share), Quixant (+40.7%, +0.55 pence per share) and Learning Technologies Group (+29.7%, +0.48 pence per share) were all also significant contributors over the period. The biggest (unrealised) losses within the period came from TrakM8 (-60.0%, -0.88 pence per share) and K3 Business Technology (-29.0%, -0.48 pence per share).  TrakM8 announced a material profit downgrade after contract deferrals left the company exposed to an overhead that was outsized relative to the revised revenue outcome. K3 Business Technology was another company to report softer market conditions and lengthening sales cycles.  Other losses came from Instem Life (-42.0%, -0.34 pence per share) and Tasty (-51.7%, -0.30 pence per share), all of which pared back their profit guidance. We invested £3.44m into 9 qualifying companies over the period, including 3 further investments into existing qualifying companies; 3 IPOs and 3 additional private investments. Within the qualifying portfolio, several investee companies experienced strong runs in the market, which led us to make partial disposals in Abcam, Craneware, Creo, Directa Plus, DP Poland, ECSC, Loop Up, Maxcyte and Surface Transforms. PORTFOLIO STRUCTURE The VCT is comfortably through the HMRC defined investment test and ended the period at 87.30% invested as measured by the HMRC investment test. By market value, the VCT had a 52.4% weighting to qualifying investments. The allocation to non-qualifying equity investments increased marginally from 15.4% to 18.9%.  We continued to make use of the Marlborough Special Situations Fund as a temporary home for proceeds from fundraising, lifting the allocation from 4.7% to 10.2%. The non-qualifying investments contributed +2.03 pence per share to the overall gains. We sold our remaining fixed income investment and kept cash steady at 18.8%. The HMRC investment tests are set out in Chapter 3 of Part 6 Income Tax Act 2007, which should be read in conjunction with this section of the investment manager's report. Funds raised by VCTs are first included in the investment tests from the start of the accounting period containing the third anniversary of the date on which the funds were raised. Therefore, the allocation of qualifying investments as defined by the legislation can be different to the portfolio weighting as measured by market value relative to the net assets of the VCT. POST HALF YEAR UPDATE Deal flow has been good since period end with 4 new qualifying investments made, 1 as a follow-on investment into an existing qualifying holding and 3 into new qualifying companies. We also have several deals in the pipeline which we expect to complete in the coming weeks. NAV performance has also been good post period end, with the net asset per share gaining 4.4% to 81.55 pence. The majority of listed investments held within the portfolio are listed, headquartered and registered in the UK with the exception of the following: TOP TEN INVESTMENTS As at 31 March 2017 (By Market Value) The top 10 equity investments are shown below; each is valued by reference to the bid price, or, in the case of unquoted companies, values are either based on the last arm's length transaction or valuation techniques, such as earnings multiples. Forecasts, where given, are drawn from a combination of broker research and/or Bloomberg consensus forecasts and exclude amortisation, share based payments and exceptional items. Forecasts are in relation to a period end for which the company results are yet to be released. The net cash values are drawn from published accounts in most cases. For further information please contact: STATEMENT OF DIRECTORS' RESPONSIBILITIES in respect of the half-yearly financial report In accordance with Disclosure Transparency Rule (DTR) 4.2.10, Aubrey Brocklebank Bt (Chairman), David Brock and Oliver Bedford, the Directors, confirm that to the best of their knowledge: On behalf of the Board of Directors. CONDENSED INCOME STATEMENT for the six month period to 31 March 2017 (unaudited) The total column of this statement is the income statement of the Company. All revenue and capital items in the above statement derive from continuing operations. The Company has no other comprehensive income other than the results for the six month period as set out above. The accompanying notes are an integral part of these financial statements. The total column of this statement is the income statement of the Company. All revenue and capital items in the above statement derive from continuing operations. The Company has no other comprehensive income other than the results for the year as set out above. The accompanying notes are an integral part of these financial statements. The accompanying notes are an integral part of these financial statements. CONDENSED STATEMENT OF CHANGES IN EQUITY for the six month period to 31 March 2017 (unaudited) Reserves available for distribution are capital reserve realised, special reserve and revenue reserve. Total distributable reserves at 31 March 2017 were £13.61 million.  The accompanying notes are an integral part of these financial statements. CONDENSED STATEMENT OF CHANGES IN EQUITY for the six month period to 31 March 2016 (unaudited) Reserves available for distribution are capital reserve realised, special reserve and revenue reserve. Total distributable reserves at 31 March 2016 were £16.89 million.  The accompanying notes are an integral part of these financial statements. CONDENSED STATEMENT OF CHANGES IN EQUITY for the year ended 30 September 2016 (audited) Reserves available for distribution are capital reserve realised, special reserve and revenue reserve. Total distributable reserves at 30 September 2016 were £14.93 million.  The accompanying notes are an integral part of these financial statements. CONDENSED STATEMENT OF CASH FLOWS for the six month period to 31 March 2017 (unaudited) The accompanying notes are an integral part of these financial statements. EXPLANATORY NOTES for the six month period to 31 March 2017 (unaudited) A summary of the principal accounting policies, all of which have been applied consistently throughout the period, is set out below: Basis of preparation The Company has prepared its half-yearly financial results for the six month period ending 31 March 2017 in accordance with Financial Reporting Standard 104 (FRS104) and the Statement of Recommended Practice for "Financial Statements of Investment Trust Companies and Venture Capital Trusts" (the SORP). The same accounting policies and methods of computation are followed in the half-yearly financial results as compared with the most recent annual financial statements. Investments All investments are classified as fair value through profit or loss. Investments are measured initially and subsequently at fair value which is deemed to be bid market prices for listed investments and investments traded on AIM. Unquoted investments are valued using the most appropriate methodology recommended by the International Private Equity Venture Capital ("IPEV") guidelines. Where the classification of a financial instrument requires it to be stated at fair value, this is determined by reference to the quoted bid price in an active market wherever possible. Where no such active market exists for the particular asset or liability the Company holds the investment at cost for a period where there is considered to be no change in fair value. Valuations of unquoted investments are reviewed on a six monthly basis and more frequently if events occur that could have a material impact on the investment. Where cost is no longer considered appropriate the Company will use a value indicated by a material arms-length transaction by an independent third party in the shares of a company. Where no such transaction exists the Company will use the most appropriate valuation technique including discounted cash flow analysis, earnings multiples, net assets and industry valuation benchmarks. All inputs are market observable with the exception of level C financial instruments. Investments are recognised and derecognised at trade date where a purchase or sale is under a contract whose terms require delivery within the time frame established by the market concerned. Purchases and sales of unlisted investments are recognised when the contract for acquisition or sale becomes unconditional. Transaction costs are included in the initial book cost or deducted from the disposal proceeds as appropriate. These investments will be managed and their performance evaluated on a fair value basis in accordance with a documented investment strategy and information about them is provided internally on that basis to the Board. Gains and losses arising from changes in fair value (realised and unrealised) are included in the net profit or loss for the period as a capital item in the income statement and are taken to the unrealised capital reserve or realised capital reserve as appropriate. If an investment has been impaired such that there is no realistic expectation that there will be a full return from the investment, the loss is treated as a permanent impairment and transferred to the capital reserve realised. Financial Instruments - fair value measurement hierarchy FRS 102 requires certain disclosures which require the classification of financial assets and financial liabilities measured at fair value using a fair value hierarchy that reflects the significance of the inputs used in making the fair value measurement.                   The fair value hierarchy has the following levels: Key judgements and estimates The preparation of the financial statements requires the Board to make judgements and estimates that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Key estimation uncertainties mainly relate to the fair valuation of unquoted investments, which are based on historical experience and other factors that are considered reasonable including the transfer price of the most recent transaction on an arm's length basis. The estimates are under continuous review with particular attention paid to the carrying value of the investments. The process of estimation is also affected by the determination of the fair value hierarchy.                   Income         Equity dividends are taken into account on the ex-dividend date, net of any associated tax credit. Fixed returns on non-equity shares and debt securities are recognised on a time apportionment basis so as to reflect the effective yield, provided there is no reasonable doubt that payment will be received in due course. All other income, including deposit interest receivable, is recognised on an accruals basis. All revenue and capital items in the unaudited income statement derive from continuing operations. There are no other items of comprehensive income other than those disclosed in the unaudited income statement.                   Expenditure         All expenditure is accounted for on an accruals basis. 75% of management fees are allocated to the capital reserve realised and 25% to the revenue account in line with the Board's expected long term split of investment returns in the form of capital gains to the capital column of the income statement. All other expenditure is charged to the revenue account.                   Trail commission         Trail commission previously due is held as a creditor until such time as claims are made by the relevant intermediary and supporting documentation provided. If claims are not received these amounts are written off after a period of six years.                   Capital reserves         Realised profits and losses on the disposal of investments, due diligence costs and income in relation to private company investments, losses realised on investments considered to be permanently impaired and 75% of investment management fees are accounted for in the capital reserve realised.                   Increases and decreases in the valuation of investments held at the year end are accounted for in the capital reserve unrealised.                   Operating segments         There is considered to be one operating segment as reported to the chief operating decision maker being investment in equity and debt securities.                   Taxation         Deferred tax is recognised in respect of all timing differences that have originated but not yet reversed at the balance sheet date. Deferred tax assets are only recognised to the extent that recovery is probable in the foreseeable future.                   Current tax is expected tax payable on the taxable revenue for the period using the current tax rate. The tax effect of different items of income and expenditure is allocated between capital and revenue on the same basis as the particular item to which it relates.                   Approved VCTs are exempt from tax on capital gains from the sale of fixed asset investments. The Directors intend that the Company will continue to conduct its affairs to maintain its VCT status, no deferred tax has been provided in respect of any capital gains or losses arising from the revaluation or disposal of investments.                   Dividends         Only dividends recognised during the year are deducted from revenue or capital reserves. Final and interim dividends are recognised in the accounts when the Company's liability to pay them has been established.                   Summary of dividends paid in the six months to 31 March 2017 and the financial year ending 30 September 2016 are detailed below: Functional currency In accordance with FRS 102 s.30, the Company is required to nominate a functional currency, being the currency in which the Company predominantly operates. The Board has determined that sterling is the Company's functional currency. Sterling is also the currency in which these accounts are presented. Repurchase of shares to hold in treasury The cost of repurchasing shares into treasury, including the related stamp duty and transaction costs is charged to special reserve and dealt with in the statement of changes in equity. Share repurchase transactions are accounted for on a trade date basis. Where shares held in treasury are subsequently cancelled, the nominal value of those shares is transferred out of share capital and into capital redemption reserve. Should shares held in treasury be reissued, the sale proceeds will be treated as a realised profit up to the amount of the purchase price of those shares and will be transferred to capital reserves. The excess of the sale proceeds over the purchase price will be transferred to share premium. Contingencies, guarantees and financial commitments  There were no contingencies, guarantees or financial commitments of the Company at 31 March 2017.  Legal form and principal activities The Company was incorporated and registered in England and Wales on 16 August 2004 under the Companies Act 1985, registered number 5206425. The Company has been approved as a Venture Capital Trust by HMRC under section 259 of the Income Taxes Act 2007. The shares of the Company were first admitted to the Official List of the UK Listing Authority and trading on the London Stock Exchange on 29 October 2004 and can be found under the TIDM code "HHV". The Company is premium listed. The Company's principal activity is to invest in a diversified portfolio of qualifying small UK based companies, primarily trading on AIM, with a view to maximising tax free dividend distributions to shareholders. The Company is an externally managed fund with a Board comprising of three non-executive directors. Hargreave Hale Limited acts as investment manager, administrator and custodian to the Company and provide the company secretary. The Board has overall responsibility for the Company's affairs including the determination of its investment policy, however, the Board may exercise these responsibilities through delegation to Hargreave Hale as it considers appropriate. The Directors have managed and continue to manage the Company's affairs in such a manner as to comply with Section 259 of the Income Taxes Act 2007. Share capital Ordinary shares are classed as equity. The ordinary shares in issue have a nominal value of one pence and carry one vote each. Reserves A description of each of the reserves follows: Share premium This reserve represents the difference between the issue price of shares and the nominal value of shares at the date of issue, net of related issue costs. Capital redemption reserve This reserve is used for the cancellation of shares bought back under the buyback facility. Special reserve Distributable reserve used to pay dividends and re-purchase shares under the buyback facility. Capital reserve realised Gains/losses on disposal of investments, due diligence costs and income from private company investments, permanent impairment of financial assets and 75% of the investment management fee are accounted for in the capital reserve realised. Capital reserve unrealised Unrealised gains and losses on investments held at the year-end arising from movements in fair value are taken to the capital reserve unrealised. Revenue reserve Net revenue returns and losses of the Company. The gain per ordinary share of 3.98 pence at 31 March 2017 (31 March 2016: 1.52 pence and 30 September 2016: gain 5.58 pence) is based on a net gain for the period of £2,942,172 (31 March 2016:  gain £810,996 and 30 September 2016: gain £3,115,012) and the weighted average number of ordinary shares in issue over the period of 73,942,080 (31 March 2016: 53,331,291 and 30 September 2016: 55,810,087). The results should not be taken as a guide to the results for the financial period ending 30 September 2017. This report may contain forward looking statements with regards to the financial condition and results of the Company, which are made in the light of current economic and business circumstances. Nothing in this report should be considered as a profit forecast. The net asset value per ordinary share at 31 March 2017 of 78.12 pence (31 March 2016: 73.91 pence and 30 September 2016: 75.93 pence) after deducting the 2.25 pence dividend paid in January 2017 is based on net assets of £63,562,650 (31 March 2016: £41,422,656 and 30 September 2016: £47,071,964) and on 81,370,569 shares (31 March 2016: 56,044,604 shares and 30 September 2016: 61,995,274 shares), being the number of ordinary shares in issue as at 31 March 2017. The financial information contained in the 31 March 2017 income statement, balance sheet, statement of cash flows and statement of changes in equity does not constitute full financial statements and has not been audited. The principal risks facing the Company relate to the Company's investment activities and include venture capital trust approval, investment, discount volatility, compliance, economic, fraud, operational, reputational, liquidity and outsourcing risk. Other risks faced by the Company include market risk, currency risk, interest rate risk and credit risk. These risks and the way in which they are managed are described in more detail in the Company's annual report and accounts for the year ended 30 September 2016. The Company's principal risks and uncertainties have not changed materially since the date of that report. Buybacks In total, the Company repurchased 318,221 shares during the six month period ending 31 March 2017 at a total cost of £236,079. The repurchased shares represent 0.51% of ordinary shares in issue on 1 October 2016. The acquired shares have been cancelled. Share issues In total, the Company issued 19,693,516 new shares (nominal value £196,935) during the six month period ending 31 March 2017 raising net proceeds of £15,214,886. Hargreave Hale Limited is considered to be a related party to the Company.  Oliver Bedford, a non-executive director of the Company and a member of its key management personnel, is an employee of Hargreave Hale Limited. In addition Hargreave Hale Limited acts as investment manager, administrator and custodian to the Company and it provides the company secretary. All of the support functions performed by Hargreave Hale Limited are segregated by department and location and are independent of each other. Hargreave Hale Limited in its capacity as investment manager of the fund receives annual fees of 1.5% per annum of the net assets of the Company, calculated and payable quarterly in arrears. Fees for the half-year are £376,830 (2016: £281,241). In relation to the other support functions described above, Hargreave Hale Limited also provides administration services, custody services, company secretarial services and one non-executive director and received fees of £50,000 in the period (2016: £40,000) in relation to these services. Of those fees, £90,032 (2016: £48,972) was still owed at the half-year end.                   Hargreave Hale Limited has agreed to indemnify the Company against annual running costs (such costs excluding VAT, any performance incentive fee and any trail commissions the payment of which is the responsibility of the Company) exceeding 3.5% of its net assets. No fees were waved by Hargreave Hale in the first half of the financial year under the indemnity.                   During the half year, the Company issued 19,693,516 ordinary shares (nominal value £196,935) in a joint offer for subscription which resulted in gross funds being received of £15,545,734. As marketing adviser and receiving agent to the Company, and in return for covering the costs of the joint offer, Hargreave Hale Limited was entitled to 3.5% of the gross proceeds (£544,101), often referred to as the 'premium'. From this, Hargreave Hale Limited paid for the allotment of additional shares to investors with a value of £213,253 and introducer commission of £740, resulting in net fees payable to Hargreave Hale of £330,108. After making enquires, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Issue of equity Following the period end, the offer for subscription resulted in an additional 844,468 ordinary shares being issued, raising gross proceeds of £671,931. Buybacks Since the period end, a further 206,867 ordinary shares have been repurchased at a total value of £158,516. New investments The Company has invested in the following new companies since the period end: Qualifying companies An investment of £618k has been made in Dorcaster plc, £501k in Zoo Digital Group plc and £332k in Velocity Composites plc. The Company's ordinary shares (Code: HHV) are listed on the London Stock Exchange. Shareholders can visit the London Stock Exchange website, www.londonstockexchange.com, for the latest news and share prices of the Company. Further information for the Company can be found on its website at www.hargreaveaimvcts.co.uk. NET ASSET VALUE PER SHARE The Company's NAV per share as at 19 May 2017 was 81.55 pence per share. The Company publishes its unaudited NAV per share on a weekly basis. DIVIDENDS The board has approved the payment of an interim dividend of 1.75 pence in respect of the six months ended 31 March 2017. Shareholders who wish to have future dividends paid directly into their bank account rather than sent by cheque to their registered address can complete a mandate for this purpose. Mandates can be obtained by contacting the Company's Registrar, Equiniti. SELLING YOUR SHARES Hargreave Hale AIM VCT 1 plc operates a share buy-back policy to improve the liquidity in its ordinary shares for cancellation. Share buy-back policies are subject to the Act, the Listing Rules and tax legislation, which may restrict the VCTs' ability to buy shares back in. The policy is non-binding and is at the discretion of the Board. The buy-back policy targets a 5% discount to the last published NAV per share as announced on the London Stock Exchange through a regulatory news service provider. The discount is measured against the mid-price per share as listed on the London Stock Exchange and reflects the price at which the Company buys its shares off the market makers. The Company publishes its unaudited NAV per share on a weekly basis. VCT share disposals settle two business days post trade if the shares are already dematerialised or placed into CREST ahead of the trade, or ten days post trade if the stock is held in certificated form. VCT share disposals are exempt of capital gains tax when the disposal is made at arms' length, which means a shareholder must sell their shares to a market maker through a stockbroker or another share dealing service. Hargreave Hale has particular expertise in the sale of VCT shares and is able to act for VCT shareholders who wish to sell their shares. However, you are free to nominate any stockbroker or share dealing service to act for you. If you would like Hargreave Hale to act for you as their client (as opposed to a shareholder in the Company) then please contact Andrew Pang for further information (020 7009 4900, andrew.pang@hargreave.com). Please note that Hargreave Hale will need to be in possession of the share certificate and a completed CREST transfer form before executing the sale. If you have lost your share certificate, then you can request a replacement certificate from the Company's registrar Equiniti. The registrar will send out an indemnity form, which you will need to sign. The indemnity form will also need to be countersigned by a UK insurance company or bank that is a member of the Association of British Insurers. Since indemnification is a form of insurance, the indemnifying body will ask for a payment to reflect their risk. Fees will reflect the value of the potential liability. SHAREHOLDER ENQUIRIES: For general Shareholder enquiries, please contact Hargreave Hale Limited on 01253 754700 or by e-mail to aimvct@hargreave.com. For enquiries concerning the performance of the Company, please contact the investment manager on 0207 009 4937 or by e-mail to aimvct@hargreave.com. Electronic copies of this report and other published information can be found on the Company's website at www.hargreaveaimvcts.co.uk. CHANGE OF ADDRESS To notify the Company of a change of address please contact the Company's Registrar.


News Article | May 24, 2017
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Hargreave Hale AIM VCT 1 Plc Unaudited Interim Results for the six month period ending 31 March 2017 * 30 September 2016 financial highlights represent annual results ** Calculated as total expenses (annualised for half yearly results) minus ad hoc legal costs and adjusted for trail commission written off, divided by period end net assets INVESTMENT OBJECTIVE The objective of the VCT is to achieve long term capital growth and to maximise tax free distributions to shareholders by investing in a diversified portfolio of small UK companies primarily traded on AIM. At least 70% of the Company's funds must be invested in qualifying holdings within three years of raising the funds. The balance of the Company's funds will be invested in liquid assets (such as fixed income securities and bank deposits) and non-qualifying equity investments on an opportunistic basis. The Company is managed as a Venture Capital Trust in order that shareholders in the Company may benefit from the tax relief available. INTRODUCTION In the first half of the financial year the Net Asset Value (NAV) per share increased from 75.93 pence to 78.12 pence equivalent to an increase of 5.8% after adding back the 2.25 pence dividend distributed in January 2017. During the same period the FTSE 100 Total Return Index rose 8.1% and the FTSE AIM All Share Total Return Index rose 14.3%. RESULTS The gain per share for the six month period was 3.98 pence per share (comprising revenue losses of 0.14 pence and capital gains of 4.12 pence). At 31 March 2017 the total return since inception of the fund was 122.37 pence. INVESTMENTS The investment manager, Hargreave Hale Limited, invested a further £3.44 million in 9 qualifying companies during the period of which 6 were AIM companies and 3 unquoted. The fair value of qualifying investments at 31 March 2017 was £33.33 million invested in 69 AIM companies and 10 unquoted companies. The balance of the funds was held in a mix of cash and non-qualifying equities. At 31 March 2017 the VCT was 87.30% invested as measured by HMRC. DIVIDEND A final dividend for the year ended 30 September 2016 of 2.25 pence was paid on 17 January 2017. The directors continue to maintain a policy of distributing at least 5% of the year end NAV to shareholders. An interim dividend of 1.75 pence (2016: 1.75p) will be paid on 30 June 2017, with an ex-dividend date of 8 June 2017 and a record date of 9 June 2017. BUYBACKS We have been able to maintain our policy of offering our shareholders an efficient exit route through the buyback scheme. In total, 318,221 shares were repurchased during the six month period ending 31 March 2017 at a weighted average price of 74.59 pence per share. Since the period a further 206,867 shares have been repurchased at a weighted average price of 76.07 pence. The Board continues to target a share price discount of 5% of the NAV per share (as measured against the mid-price) for market purchases. It should be emphasised that this target is non-binding and dependent on circumstances, including the Company's liquidity from time to time and market conditions. JOINT OFFER FOR SUBSCRIPTION - 2015 On 17 November 2016 the joint offer for subscription for new shares in Hargreave Hale AIM VCT 1 plc and Hargreave Hale AIM VCT 2 plc (launched in December 2015) was closed with £12.46 million raised for Hargreave Hale AIM VCT 1 plc. JOINT OFFER FOR SUBSCRIPTION - 2016 The Directors of the Company announced on 14 December 2016 the launch of a new joint offer for subscription for shares in both Hargreave Hale AIM VCTs to raise up to £10 million in the Company and up to £10 million in Hargreave Hale AIM VCT 2 plc. The offer was approved by shareholders of the Company at a general meeting on 12 January 2017 and was open to both new and existing shareholders. On 9 March 2017 Hargreave Hale AIM VCT 1 plc announced that it had received applications in excess of £10 million and, accordingly, the directors of Hargreave Hale AIM VCT 1 plc announced that they intended to utilise the £5 million Over-Allotment Facility. On 15 March 2017 the Company announced that the offer was fully subscribed, resulting in gross funds being received of £15 million and the issue of 18.96 million new shares in the Company. I am pleased to report that an immediate effect is that the ongoing expense ratio has dropped from 1.99% in September 2016 to 1.83% as at 31 March 2017. VCT REGULATION In order to comply with EU regulations regarding State Aid, the VCT rules were subject to substantial changes in the budget on 8 July 2015, which came into effect on 18 November 2015. In the round we do not think these rules have greatly affected the Company, although we will no longer be able to make non-qualifying investments in companies listed on AIM or UK government bonds. We are able to continue to invest via the Marlborough Special Situations Fund and we are free to invest in companies listed on the main market. BOARD CHANGES Giles Hargreave resigned as a director of the Company on 13 December 2016. I would like to take this opportunity to thank Giles for all his hard work on the Board. Following the resignation of Giles Hargreave, Oliver Bedford was appointed as a non-executive director of the Company on 13 December 2016. I am pleased to report that Giles still works for the manager and that we still benefit from his expertise and sagacity. ELECTRONIC COMMUNICATIONS Following approval at a general meeting on 12 January 2017, the Company has adopted electronic communications. Your Board believes this is beneficial to the Company and its shareholders and will result in substantial cost savings and improved timeliness and transparency of communications. AUDIT TENDER As announced in the annual report and accounts for the year ended 30 September 2016 a mandatory audit tender is required in the current year. I am pleased to confirm the process is underway and a further update will be given in due course. OUTLOOK The outcome of the American elections and Brexit vote does not appear to have had an adverse effect on the stock markets and the drop in the value of sterling seems to have a beneficial effect on exports and the balance of trade.  After the results of recent polls around the world I am reluctant to publish my views on the outcome of the forthcoming election! For the next two years it seems that we will suffer the media's fascination with the Brexit negotiations. Given that the EU has only managed to negotiate one trade deal, Canada, in the last 10 or so years it is hard to believe that the UK will achieve much in two. This will have little effect in the short term but may make the markets more volatile in the longer term. We continue to invest in companies with good management and robust business plans that we hope will weather any storms. Furthermore we are seeing more private equity opportunities in sound companies with future growth and these will not be affected by the vagaries of the market. INTRODUCTION This report covers the first half of the 2016/17 financial year, 1 October 2016 to 31 March 2017. The manager's report contains references to movements in the Net Asset Value (NAV) per share and Total Return per share (NAV per share plus distributed earnings per share). Movements in the NAV per share do not necessarily mirror the earnings per share (EPS) reported in the accounts and elsewhere, which convey the profit after tax for the company within the reported period as a function of the weighted average number of shares in issue for the period. INVESTMENT REPORT The period under review was a strong period for equities with markets taking Trump's election as the US President as a substantial positive despite the many political uncertainties that accompanied his victory.  Politics aside, global economic growth was robust, with US GDP growth and low interest rates leading developed markets higher. Although not new news, ongoing weakness in sterling helped UK equities continue their strong run with foreign earnings providing a welcome earnings kicker for export orientated companies. By and large, VCT regulations channel us into small domestically focussed growth stories, so we were unable to fully benefit from the trend that persisted through much of the first quarter of the financial year, although we did derive some benefit through companies such as Abcam and Craneware, as well as parts of our non-qualifying portfolio.  The positive mood within the major indices filtered down the chain and the second quarter saw a beneficial uptick in risk sentiment within smallcap equities, which favoured our qualifying investments. The second half of the financial year has already thrown up a number of risks and surprises, the French and UK elections being the most recent examples.  Doubtless there will be more; however, for now the UK economy feels strong enough and, although we have seen some evidence of weakness within the housing market and elements of the casual dining sub-sector, by and large the macro picture remains workable.  We expect the UK consumer to be more challenged this year as real wage growth turns negative, with some weakness already showing up in consumer confidence data. But in the round, we find most companies to be positive about the outlook and there seems to be reasonable demand for new capital to support their growth and development. PERFORMANCE In the six months to 31 March 2017, the NAV increased from 75.93 pence to 78.12 pence. A total of 2.25 pence per share was paid in dividends, giving investors a total return of 4.44 pence per share, which translates to a gain of 5.8%. During the same period the FTSE AIM All-Share Total Return gained 14.3%, whilst the FTSE 100 Total Return gained 8.1%. The qualifying investments made a net contribution of 2.86 pence per share with 34 out of the 79 making gains, 11 unchanged and 34 losing ground. The balance was the net of non-qualifying portfolio gains, running costs and investment income. Cohort was the top performing qualifying investment (+38.7%, +0.90 pence per share). The company confirmed the outlook for the year ending April 2017 and announced a series of material contract wins.  The company has a significant net cash balance and remains well positioned to benefit from structural growth in defence spending on specific technologies and platforms.  Animalcare also performed well (+55.4%, +0.82 pence per share). The company delivered a very strong trading update in January, prompting analysts to upgrade numbers. Product development and international sales are translating through to growth in revenues and profits. Maxcyte (+219.3%, +0.73 pence per share), Quixant (+40.7%, +0.55 pence per share) and Learning Technologies Group (+29.7%, +0.48 pence per share) were all also significant contributors over the period. The biggest (unrealised) losses within the period came from TrakM8 (-60.0%, -0.88 pence per share) and K3 Business Technology (-29.0%, -0.48 pence per share).  TrakM8 announced a material profit downgrade after contract deferrals left the company exposed to an overhead that was outsized relative to the revised revenue outcome. K3 Business Technology was another company to report softer market conditions and lengthening sales cycles.  Other losses came from Instem Life (-42.0%, -0.34 pence per share) and Tasty (-51.7%, -0.30 pence per share), all of which pared back their profit guidance. We invested £3.44m into 9 qualifying companies over the period, including 3 further investments into existing qualifying companies; 3 IPOs and 3 additional private investments. Within the qualifying portfolio, several investee companies experienced strong runs in the market, which led us to make partial disposals in Abcam, Craneware, Creo, Directa Plus, DP Poland, ECSC, Loop Up, Maxcyte and Surface Transforms. PORTFOLIO STRUCTURE The VCT is comfortably through the HMRC defined investment test and ended the period at 87.30% invested as measured by the HMRC investment test. By market value, the VCT had a 52.4% weighting to qualifying investments. The allocation to non-qualifying equity investments increased marginally from 15.4% to 18.9%.  We continued to make use of the Marlborough Special Situations Fund as a temporary home for proceeds from fundraising, lifting the allocation from 4.7% to 10.2%. The non-qualifying investments contributed +2.03 pence per share to the overall gains. We sold our remaining fixed income investment and kept cash steady at 18.8%. The HMRC investment tests are set out in Chapter 3 of Part 6 Income Tax Act 2007, which should be read in conjunction with this section of the investment manager's report. Funds raised by VCTs are first included in the investment tests from the start of the accounting period containing the third anniversary of the date on which the funds were raised. Therefore, the allocation of qualifying investments as defined by the legislation can be different to the portfolio weighting as measured by market value relative to the net assets of the VCT. POST HALF YEAR UPDATE Deal flow has been good since period end with 4 new qualifying investments made, 1 as a follow-on investment into an existing qualifying holding and 3 into new qualifying companies. We also have several deals in the pipeline which we expect to complete in the coming weeks. NAV performance has also been good post period end, with the net asset per share gaining 4.4% to 81.55 pence. The majority of listed investments held within the portfolio are listed, headquartered and registered in the UK with the exception of the following: TOP TEN INVESTMENTS As at 31 March 2017 (By Market Value) The top 10 equity investments are shown below; each is valued by reference to the bid price, or, in the case of unquoted companies, values are either based on the last arm's length transaction or valuation techniques, such as earnings multiples. Forecasts, where given, are drawn from a combination of broker research and/or Bloomberg consensus forecasts and exclude amortisation, share based payments and exceptional items. Forecasts are in relation to a period end for which the company results are yet to be released. The net cash values are drawn from published accounts in most cases. For further information please contact: STATEMENT OF DIRECTORS' RESPONSIBILITIES in respect of the half-yearly financial report In accordance with Disclosure Transparency Rule (DTR) 4.2.10, Aubrey Brocklebank Bt (Chairman), David Brock and Oliver Bedford, the Directors, confirm that to the best of their knowledge: On behalf of the Board of Directors. CONDENSED INCOME STATEMENT for the six month period to 31 March 2017 (unaudited) The total column of this statement is the income statement of the Company. All revenue and capital items in the above statement derive from continuing operations. The Company has no other comprehensive income other than the results for the six month period as set out above. The accompanying notes are an integral part of these financial statements. The total column of this statement is the income statement of the Company. All revenue and capital items in the above statement derive from continuing operations. The Company has no other comprehensive income other than the results for the year as set out above. The accompanying notes are an integral part of these financial statements. The accompanying notes are an integral part of these financial statements. CONDENSED STATEMENT OF CHANGES IN EQUITY for the six month period to 31 March 2017 (unaudited) Reserves available for distribution are capital reserve realised, special reserve and revenue reserve. Total distributable reserves at 31 March 2017 were £13.61 million.  The accompanying notes are an integral part of these financial statements. CONDENSED STATEMENT OF CHANGES IN EQUITY for the six month period to 31 March 2016 (unaudited) Reserves available for distribution are capital reserve realised, special reserve and revenue reserve. Total distributable reserves at 31 March 2016 were £16.89 million.  The accompanying notes are an integral part of these financial statements. CONDENSED STATEMENT OF CHANGES IN EQUITY for the year ended 30 September 2016 (audited) Reserves available for distribution are capital reserve realised, special reserve and revenue reserve. Total distributable reserves at 30 September 2016 were £14.93 million.  The accompanying notes are an integral part of these financial statements. CONDENSED STATEMENT OF CASH FLOWS for the six month period to 31 March 2017 (unaudited) The accompanying notes are an integral part of these financial statements. EXPLANATORY NOTES for the six month period to 31 March 2017 (unaudited) A summary of the principal accounting policies, all of which have been applied consistently throughout the period, is set out below: Basis of preparation The Company has prepared its half-yearly financial results for the six month period ending 31 March 2017 in accordance with Financial Reporting Standard 104 (FRS104) and the Statement of Recommended Practice for "Financial Statements of Investment Trust Companies and Venture Capital Trusts" (the SORP). The same accounting policies and methods of computation are followed in the half-yearly financial results as compared with the most recent annual financial statements. Investments All investments are classified as fair value through profit or loss. Investments are measured initially and subsequently at fair value which is deemed to be bid market prices for listed investments and investments traded on AIM. Unquoted investments are valued using the most appropriate methodology recommended by the International Private Equity Venture Capital ("IPEV") guidelines. Where the classification of a financial instrument requires it to be stated at fair value, this is determined by reference to the quoted bid price in an active market wherever possible. Where no such active market exists for the particular asset or liability the Company holds the investment at cost for a period where there is considered to be no change in fair value. Valuations of unquoted investments are reviewed on a six monthly basis and more frequently if events occur that could have a material impact on the investment. Where cost is no longer considered appropriate the Company will use a value indicated by a material arms-length transaction by an independent third party in the shares of a company. Where no such transaction exists the Company will use the most appropriate valuation technique including discounted cash flow analysis, earnings multiples, net assets and industry valuation benchmarks. All inputs are market observable with the exception of level C financial instruments. Investments are recognised and derecognised at trade date where a purchase or sale is under a contract whose terms require delivery within the time frame established by the market concerned. Purchases and sales of unlisted investments are recognised when the contract for acquisition or sale becomes unconditional. Transaction costs are included in the initial book cost or deducted from the disposal proceeds as appropriate. These investments will be managed and their performance evaluated on a fair value basis in accordance with a documented investment strategy and information about them is provided internally on that basis to the Board. Gains and losses arising from changes in fair value (realised and unrealised) are included in the net profit or loss for the period as a capital item in the income statement and are taken to the unrealised capital reserve or realised capital reserve as appropriate. If an investment has been impaired such that there is no realistic expectation that there will be a full return from the investment, the loss is treated as a permanent impairment and transferred to the capital reserve realised. Financial Instruments - fair value measurement hierarchy FRS 102 requires certain disclosures which require the classification of financial assets and financial liabilities measured at fair value using a fair value hierarchy that reflects the significance of the inputs used in making the fair value measurement.                   The fair value hierarchy has the following levels: Key judgements and estimates The preparation of the financial statements requires the Board to make judgements and estimates that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Key estimation uncertainties mainly relate to the fair valuation of unquoted investments, which are based on historical experience and other factors that are considered reasonable including the transfer price of the most recent transaction on an arm's length basis. The estimates are under continuous review with particular attention paid to the carrying value of the investments. The process of estimation is also affected by the determination of the fair value hierarchy.                   Income         Equity dividends are taken into account on the ex-dividend date, net of any associated tax credit. Fixed returns on non-equity shares and debt securities are recognised on a time apportionment basis so as to reflect the effective yield, provided there is no reasonable doubt that payment will be received in due course. All other income, including deposit interest receivable, is recognised on an accruals basis. All revenue and capital items in the unaudited income statement derive from continuing operations. There are no other items of comprehensive income other than those disclosed in the unaudited income statement.                   Expenditure         All expenditure is accounted for on an accruals basis. 75% of management fees are allocated to the capital reserve realised and 25% to the revenue account in line with the Board's expected long term split of investment returns in the form of capital gains to the capital column of the income statement. All other expenditure is charged to the revenue account.                   Trail commission         Trail commission previously due is held as a creditor until such time as claims are made by the relevant intermediary and supporting documentation provided. If claims are not received these amounts are written off after a period of six years.                   Capital reserves         Realised profits and losses on the disposal of investments, due diligence costs and income in relation to private company investments, losses realised on investments considered to be permanently impaired and 75% of investment management fees are accounted for in the capital reserve realised.                   Increases and decreases in the valuation of investments held at the year end are accounted for in the capital reserve unrealised.                   Operating segments         There is considered to be one operating segment as reported to the chief operating decision maker being investment in equity and debt securities.                   Taxation         Deferred tax is recognised in respect of all timing differences that have originated but not yet reversed at the balance sheet date. Deferred tax assets are only recognised to the extent that recovery is probable in the foreseeable future.                   Current tax is expected tax payable on the taxable revenue for the period using the current tax rate. The tax effect of different items of income and expenditure is allocated between capital and revenue on the same basis as the particular item to which it relates.                   Approved VCTs are exempt from tax on capital gains from the sale of fixed asset investments. The Directors intend that the Company will continue to conduct its affairs to maintain its VCT status, no deferred tax has been provided in respect of any capital gains or losses arising from the revaluation or disposal of investments.                   Dividends         Only dividends recognised during the year are deducted from revenue or capital reserves. Final and interim dividends are recognised in the accounts when the Company's liability to pay them has been established.                   Summary of dividends paid in the six months to 31 March 2017 and the financial year ending 30 September 2016 are detailed below: Functional currency In accordance with FRS 102 s.30, the Company is required to nominate a functional currency, being the currency in which the Company predominantly operates. The Board has determined that sterling is the Company's functional currency. Sterling is also the currency in which these accounts are presented. Repurchase of shares to hold in treasury The cost of repurchasing shares into treasury, including the related stamp duty and transaction costs is charged to special reserve and dealt with in the statement of changes in equity. Share repurchase transactions are accounted for on a trade date basis. Where shares held in treasury are subsequently cancelled, the nominal value of those shares is transferred out of share capital and into capital redemption reserve. Should shares held in treasury be reissued, the sale proceeds will be treated as a realised profit up to the amount of the purchase price of those shares and will be transferred to capital reserves. The excess of the sale proceeds over the purchase price will be transferred to share premium. Contingencies, guarantees and financial commitments  There were no contingencies, guarantees or financial commitments of the Company at 31 March 2017.  Legal form and principal activities The Company was incorporated and registered in England and Wales on 16 August 2004 under the Companies Act 1985, registered number 5206425. The Company has been approved as a Venture Capital Trust by HMRC under section 259 of the Income Taxes Act 2007. The shares of the Company were first admitted to the Official List of the UK Listing Authority and trading on the London Stock Exchange on 29 October 2004 and can be found under the TIDM code "HHV". The Company is premium listed. The Company's principal activity is to invest in a diversified portfolio of qualifying small UK based companies, primarily trading on AIM, with a view to maximising tax free dividend distributions to shareholders. The Company is an externally managed fund with a Board comprising of three non-executive directors. Hargreave Hale Limited acts as investment manager, administrator and custodian to the Company and provide the company secretary. The Board has overall responsibility for the Company's affairs including the determination of its investment policy, however, the Board may exercise these responsibilities through delegation to Hargreave Hale as it considers appropriate. The Directors have managed and continue to manage the Company's affairs in such a manner as to comply with Section 259 of the Income Taxes Act 2007. Share capital Ordinary shares are classed as equity. The ordinary shares in issue have a nominal value of one pence and carry one vote each. Reserves A description of each of the reserves follows: Share premium This reserve represents the difference between the issue price of shares and the nominal value of shares at the date of issue, net of related issue costs. Capital redemption reserve This reserve is used for the cancellation of shares bought back under the buyback facility. Special reserve Distributable reserve used to pay dividends and re-purchase shares under the buyback facility. Capital reserve realised Gains/losses on disposal of investments, due diligence costs and income from private company investments, permanent impairment of financial assets and 75% of the investment management fee are accounted for in the capital reserve realised. Capital reserve unrealised Unrealised gains and losses on investments held at the year-end arising from movements in fair value are taken to the capital reserve unrealised. Revenue reserve Net revenue returns and losses of the Company. The gain per ordinary share of 3.98 pence at 31 March 2017 (31 March 2016: 1.52 pence and 30 September 2016: gain 5.58 pence) is based on a net gain for the period of £2,942,172 (31 March 2016:  gain £810,996 and 30 September 2016: gain £3,115,012) and the weighted average number of ordinary shares in issue over the period of 73,942,080 (31 March 2016: 53,331,291 and 30 September 2016: 55,810,087). The results should not be taken as a guide to the results for the financial period ending 30 September 2017. This report may contain forward looking statements with regards to the financial condition and results of the Company, which are made in the light of current economic and business circumstances. Nothing in this report should be considered as a profit forecast. The net asset value per ordinary share at 31 March 2017 of 78.12 pence (31 March 2016: 73.91 pence and 30 September 2016: 75.93 pence) after deducting the 2.25 pence dividend paid in January 2017 is based on net assets of £63,562,650 (31 March 2016: £41,422,656 and 30 September 2016: £47,071,964) and on 81,370,569 shares (31 March 2016: 56,044,604 shares and 30 September 2016: 61,995,274 shares), being the number of ordinary shares in issue as at 31 March 2017. The financial information contained in the 31 March 2017 income statement, balance sheet, statement of cash flows and statement of changes in equity does not constitute full financial statements and has not been audited. The principal risks facing the Company relate to the Company's investment activities and include venture capital trust approval, investment, discount volatility, compliance, economic, fraud, operational, reputational, liquidity and outsourcing risk. Other risks faced by the Company include market risk, currency risk, interest rate risk and credit risk. These risks and the way in which they are managed are described in more detail in the Company's annual report and accounts for the year ended 30 September 2016. The Company's principal risks and uncertainties have not changed materially since the date of that report. Buybacks In total, the Company repurchased 318,221 shares during the six month period ending 31 March 2017 at a total cost of £236,079. The repurchased shares represent 0.51% of ordinary shares in issue on 1 October 2016. The acquired shares have been cancelled. Share issues In total, the Company issued 19,693,516 new shares (nominal value £196,935) during the six month period ending 31 March 2017 raising net proceeds of £15,214,886. Hargreave Hale Limited is considered to be a related party to the Company.  Oliver Bedford, a non-executive director of the Company and a member of its key management personnel, is an employee of Hargreave Hale Limited. In addition Hargreave Hale Limited acts as investment manager, administrator and custodian to the Company and it provides the company secretary. All of the support functions performed by Hargreave Hale Limited are segregated by department and location and are independent of each other. Hargreave Hale Limited in its capacity as investment manager of the fund receives annual fees of 1.5% per annum of the net assets of the Company, calculated and payable quarterly in arrears. Fees for the half-year are £376,830 (2016: £281,241). In relation to the other support functions described above, Hargreave Hale Limited also provides administration services, custody services, company secretarial services and one non-executive director and received fees of £50,000 in the period (2016: £40,000) in relation to these services. Of those fees, £90,032 (2016: £48,972) was still owed at the half-year end.                   Hargreave Hale Limited has agreed to indemnify the Company against annual running costs (such costs excluding VAT, any performance incentive fee and any trail commissions the payment of which is the responsibility of the Company) exceeding 3.5% of its net assets. No fees were waved by Hargreave Hale in the first half of the financial year under the indemnity.                   During the half year, the Company issued 19,693,516 ordinary shares (nominal value £196,935) in a joint offer for subscription which resulted in gross funds being received of £15,545,734. As marketing adviser and receiving agent to the Company, and in return for covering the costs of the joint offer, Hargreave Hale Limited was entitled to 3.5% of the gross proceeds (£544,101), often referred to as the 'premium'. From this, Hargreave Hale Limited paid for the allotment of additional shares to investors with a value of £213,253 and introducer commission of £740, resulting in net fees payable to Hargreave Hale of £330,108. After making enquires, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Issue of equity Following the period end, the offer for subscription resulted in an additional 844,468 ordinary shares being issued, raising gross proceeds of £671,931. Buybacks Since the period end, a further 206,867 ordinary shares have been repurchased at a total value of £158,516. New investments The Company has invested in the following new companies since the period end: Qualifying companies An investment of £618k has been made in Dorcaster plc, £501k in Zoo Digital Group plc and £332k in Velocity Composites plc. The Company's ordinary shares (Code: HHV) are listed on the London Stock Exchange. Shareholders can visit the London Stock Exchange website, www.londonstockexchange.com, for the latest news and share prices of the Company. Further information for the Company can be found on its website at www.hargreaveaimvcts.co.uk. NET ASSET VALUE PER SHARE The Company's NAV per share as at 19 May 2017 was 81.55 pence per share. The Company publishes its unaudited NAV per share on a weekly basis. DIVIDENDS The board has approved the payment of an interim dividend of 1.75 pence in respect of the six months ended 31 March 2017. Shareholders who wish to have future dividends paid directly into their bank account rather than sent by cheque to their registered address can complete a mandate for this purpose. Mandates can be obtained by contacting the Company's Registrar, Equiniti. SELLING YOUR SHARES Hargreave Hale AIM VCT 1 plc operates a share buy-back policy to improve the liquidity in its ordinary shares for cancellation. Share buy-back policies are subject to the Act, the Listing Rules and tax legislation, which may restrict the VCTs' ability to buy shares back in. The policy is non-binding and is at the discretion of the Board. The buy-back policy targets a 5% discount to the last published NAV per share as announced on the London Stock Exchange through a regulatory news service provider. The discount is measured against the mid-price per share as listed on the London Stock Exchange and reflects the price at which the Company buys its shares off the market makers. The Company publishes its unaudited NAV per share on a weekly basis. VCT share disposals settle two business days post trade if the shares are already dematerialised or placed into CREST ahead of the trade, or ten days post trade if the stock is held in certificated form. VCT share disposals are exempt of capital gains tax when the disposal is made at arms' length, which means a shareholder must sell their shares to a market maker through a stockbroker or another share dealing service. Hargreave Hale has particular expertise in the sale of VCT shares and is able to act for VCT shareholders who wish to sell their shares. However, you are free to nominate any stockbroker or share dealing service to act for you. If you would like Hargreave Hale to act for you as their client (as opposed to a shareholder in the Company) then please contact Andrew Pang for further information (020 7009 4900, andrew.pang@hargreave.com). Please note that Hargreave Hale will need to be in possession of the share certificate and a completed CREST transfer form before executing the sale. If you have lost your share certificate, then you can request a replacement certificate from the Company's registrar Equiniti. The registrar will send out an indemnity form, which you will need to sign. The indemnity form will also need to be countersigned by a UK insurance company or bank that is a member of the Association of British Insurers. Since indemnification is a form of insurance, the indemnifying body will ask for a payment to reflect their risk. Fees will reflect the value of the potential liability. SHAREHOLDER ENQUIRIES: For general Shareholder enquiries, please contact Hargreave Hale Limited on 01253 754700 or by e-mail to aimvct@hargreave.com. For enquiries concerning the performance of the Company, please contact the investment manager on 0207 009 4937 or by e-mail to aimvct@hargreave.com. Electronic copies of this report and other published information can be found on the Company's website at www.hargreaveaimvcts.co.uk. CHANGE OF ADDRESS To notify the Company of a change of address please contact the Company's Registrar.


Immunoassays are commonly used laboratory tests for identification and quantification of proteins. With a range of applications in diagnosis of cancer, immunology and disease research, immunoassays are widely used by scientists in academia and industry. The 2016 Quantitative Immunoassay Dashboard is the third in a series that characterizes the dynamic market for immunoassay products. This 2016 Dashboard provides a snapshot of the current market landscape that is compared with data from all of the previous Quantitative Immunoassay Dashboards , and was developed from responses to a 48-question survey completed by 592 scientists located in North America and Europe. This Dashboard reveals key market indicators for the Quantitative Immunoassay market as a whole as well as for the following techniques representing market sub-segments: - Colorimetric ELISA - Chemiluminescent ELISA - Fluorescent ELISA - Electrochemiluminescence immunoassays - Bead-based immunoassays - This report is focused on the use of Quantitative Immunoassay products in life science research market. The following suppliers were surveyed for this report: - Abcam - Affymetrix/eBioscience - BD Biosciences - Bio-Rad - GE Healthcare/Amersham - KPL/SeraCare - Luminex (direct) - Meso Scale Discovery - Perkin Elmer - R&D Systems/Biotechne - Roche Applied Science - Sigma/EMD Millipore - Thermo Fisher Scientific (including Life Technologies, Pierce, Invitrogen, Novex, Molecular Probes) Key Topics Covered: 1. Executive Summary 2. Dashboard "At A Glance" 3. Market Opportunity Matrix 4. Respondent Qualification 5. Demographics 6. Frequency of Performance: Life Science Techniques 7. Frequency of Use: Immunoassay Methods & Additional Protein Related Method 8. Co-Performance: Quantitative Immunoassay Methods & Life Science Techniques 9. Throughput, Growth Rates, Price & Monthly Spend 10. Market Size 11. Percentage of Spend with Suppliers of Immunoassay Products 12. Customer Satisfaction & Interest in Switching 13. Product Feature Influencing Purchase Decisions 14. Primary Focus/Application of Protein Analysis Research & Use of Protein Classes/Categories 15. Desired Changes to Immunoassay Products 16. Appendix I: Supporting Data 17. Appendix II: The Capabilities and Life Science Dashboards TM Available Companies Mentioned - Abcam - Affymetrix/eBioscience - BD Biosciences - Bio-Rad - GE Healthcare/Amersham - KPL/SeraCare - Luminex (direct) - Meso Scale Discovery - Perkin Elmer - R&D Systems/Biotechne - Roche Applied Science - Sigma/EMD Millipore - Thermo Fisher Scientific (including Life Technologies, Pierce, Invitrogen, Novex, Molecular Probes) For more information about this report visit http://www.researchandmarkets.com/research/w73jmf/quantitative To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/quantitative-immunoassay-life-science-dashboard-a-48-question-survey-completed-by-592-scientists---research-and-markets-300443417.html


News Article | April 17, 2017
Site: globenewswire.com

Dublin, April 17, 2017 (GLOBE NEWSWIRE) -- Research and Markets has announced the addition of the "Quantitative Immunoassay Life Science Dashboard Series 3" report to their offering. Immunoassays are commonly used laboratory tests for identification and quantification of proteins. With a range of applications in diagnosis of cancer, immunology and disease research, immunoassays are widely used by scientists in academia and industry. The 2016 Quantitative Immunoassay Dashboard is the third in a series that characterizes the dynamic market for immunoassay products. This 2016 Dashboard provides a snapshot of the current market landscape that is compared with data from all of the previous Quantitative Immunoassay Dashboards , and was developed from responses to a 48-question survey completed by 592 scientists located in North America and Europe. This Dashboard reveals key market indicators for the Quantitative Immunoassay market as a whole as well as for the following techniques representing market sub-segments: - Colorimetric ELISA - Chemiluminescent ELISA - Fluorescent ELISA - Electrochemiluminescence immunoassays - Bead-based immunoassays - This report is focused on the use of Quantitative Immunoassay products in life science research market. The following suppliers were surveyed for this report: - Abcam - Affymetrix/eBioscience - BD Biosciences - Bio-Rad - GE Healthcare/Amersham - KPL/SeraCare - Luminex (direct) - Meso Scale Discovery - Perkin Elmer - R&D Systems/Biotechne - Roche Applied Science - Sigma/EMD Millipore - Thermo Fisher Scientific (including Life Technologies, Pierce, Invitrogen, Novex, Molecular Probes) Key Topics Covered: 1. Executive Summary 2. Dashboard "At A Glance" 3. Market Opportunity Matrix 4. Respondent Qualification 5. Demographics 6. Frequency of Performance: Life Science Techniques 7. Frequency of Use: Immunoassay Methods & Additional Protein Related Method 8. Co-Performance: Quantitative Immunoassay Methods & Life Science Techniques 9. Throughput, Growth Rates, Price & Monthly Spend 10. Market Size 11. Percentage of Spend with Suppliers of Immunoassay Products 12. Customer Satisfaction & Interest in Switching 13. Product Feature Influencing Purchase Decisions 14. Primary Focus/Application of Protein Analysis Research & Use of Protein Classes/Categories 15. Desired Changes to Immunoassay Products 16. Appendix I: Supporting Data 17. Appendix II: The Capabilities and Life Science Dashboards TM Available Companies Mentioned - Abcam - Affymetrix/eBioscience - BD Biosciences - Bio-Rad - GE Healthcare/Amersham - KPL/SeraCare - Luminex (direct) - Meso Scale Discovery - Perkin Elmer - R&D Systems/Biotechne - Roche Applied Science - Sigma/EMD Millipore - Thermo Fisher Scientific (including Life Technologies, Pierce, Invitrogen, Novex, Molecular Probes) For more information about this report visit http://www.researchandmarkets.com/research/ds2x4b/quantitative


— Cell culture protein surface coating is a procedure in which the cell culture surfaces are coated with proteins or extracellular matrix (ECM) components to enhance the adhesion and proliferation of the cells during in vitro isolation and cultivation. Proteins that are used in coating cells are collagen, fibronectin, vitronectin, laminin, and osteopontin, which are either animal derived, plant derived, synthetic, or human derived. Protein surface coating facilitates the growth of various types of cells such as epithelial, leukocytes, muscle cells, neurons, chinese hamster ovary (CHO) cell lines, fibroblasts, and neurons. Publisher's analysts forecast the global cell culture protein surface coating market to grow at a CAGR of 13.20% during the period 2017-2021. Covered in this report The report covers the present scenario and the growth prospects of the global cell culture protein surface coating market for 2017-2021. To calculate the market size, the report presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources. The market is divided into the following segments based on geography: - Americas - APAC - EMEA Publisher's report, Global Cell Culture Protein Surface Coating Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market. Get Sample of the Report at: http://www.reportsweb.com/inquiry&RW0001713445/sample . Other prominent vendors - Abcam - Agilent Technologies - AM-Pharma - BioLamina - BioMedTech Laboratories - Bio-Techne - BioTime - Caladrius Biosciences - Cedarlane Laboratories - Cell Guidance Systems - CellSystems Biotechnologie Vertrieb - Cellular Dynamics International - Cytoskeleton - Full Moon BioSystems - Greiner Bio-One - GlaxoSmithKline - Histocell - Japan Regenerative Medicine - KANGSTEM BIOTECH - Mesoblast - neuVitro - Orla Protein Technologies - Pall - PerkinElmer - PROGEN Biotechnik - PromoCell - RayBiotech - Sartorius Stedim Biotech - SouthernBiotech - Taiwan Bio Therapeutics - Takeda Pharmaceutical Company - Teva Pharmaceutical Industries - Trevigen - TWO CELLS - U.S. Stem Cell - Viogene Market driver - Government and research centers to promote research activities. - For a full, detailed list, view our report Market challenge - Ethical concerns over usage of animal-derived protein coating material. - For a full, detailed list, view our report Market trend - Increasing preference for 3D cell cultures over 2D cell cultures. - For a full, detailed list, view our report PART 01: Executive summary PART 02: Scope of the report PART 03: Market research methodology PART 04: Introduction PART 05: An overview: Cell culture surfaces PART 06: Market landscape PART 07: Market segmentation by product type PART 08: Geographical segmentation PART 09: Decision framework PART 10: Drivers and challenges PART 11: Market trends PART 12: Vendor landscape PART 13: Key vendor analysis PART 14: Appendix For more information, please visit http://www.reportsweb.com/global-cell-culture-protein-surface-coating-market-2017-2021


The invention provides a rabbit-derived immortal B-lymphocyte capable of fusion with a rabbit splenocyte to produce a hybrid cell that produces an antibody. The immortal B-lymphocyte does not detectably express endogenous immunoglobulin heavy chain and may contain, in certain embodiments, an altered immunoglobulin heavy chain-encoding gene. A hybridoma resulting from fusion between the subject immortal B-lymphocyte and a rabbit antibody-producing cell is provided, as is a method of using that hybridoma to produce an antibody. The subject invention finds use in a variety of different diagnostic, therapeutic and research applications.


A method for producing a library of engineered-antibody producing cells is provided. In certain cases, the method includes isolating nucleic acid sequences encoding IgH variable regions and IgL variable regions from a plurality of antibody producing cells, and introducing the nucleic acids into host cells to obtain cells that produce antibodies comprising non-naturally paired IgH and IgL variable chains.


Patent
Abcam | Date: 2014-02-10

In certain embodiments, the method may comprise: a) obtaining the antibody sequences from a population of B cells; b) grouping the antibody sequences to provide a plurality of groups of lineage-related antibodies; c) testing a single antibody from each of the groups in a bioassay and, after the first antibody has been identified, d) testing further antibodies that are in the same group as the first antibody in a second bioassay. In another embodiment, the method may comprise: a) testing a plurality of antibodies obtained from a first portion of an antibody producing organ of an animal; b) obtaining the sequence of a first identified antibody; c) obtaining from a second portion of said antibody producing organ the sequences of further antibodies that are related by lineage to said first antibody; and, c) testing the further antibodies in a second bioassay.


Patent
Abcam | Date: 2014-02-18

In certain embodiments, the method may comprise: a) obtaining the antibody sequences from a population of B cells; b) grouping the antibody sequences to provide a plurality of groups of lineage-related antibodies; c) testing a single antibody from each of the groups in a bioassay and, after the first antibody has been identified, d) testing further antibodies that are in the same group as the first antibody in a second bioassay. In another embodiment, the method may comprise: a) testing a plurality of antibodies obtained from a first portion of an antibody producing organ of an animal; b) obtaining the sequence of a first identified antibody; c) obtaining from a second portion of said antibody producing organ the sequences of further antibodies that are related by lineage to said first antibody; and, c) testing the further antibodies in a second bioassay.


Grant
Agency: Department of Health and Human Services | Branch: National Institutes of Health | Program: SBIR | Phase: Phase II | Award Amount: 627.91K | Year: 2015

DESCRIPTION provided by applicant The most commonly used method for generating antibodies is through immunization of animals However this method is generally low throughput expensive time consuming and the antibodies generated are not always renewable Recombinant antibodies rAb like single chain variable fragments scFv have many attractive attributes compared to polyclonal antisera and monoclonal antibodies derived from hybridomas They are renewable through overexpression in the appropriate heterologous host they are easily stored and transferred as DNA and they can be genetically engineered as fusions to various enzymes fluorescent proteins and epitope tags While a number of approaches for generating recombinant affinity reagents exist the cost and throughput of current technologies represent significant roadblocks to the development of a comprehensive and broadly available resource of renewable affinity reagents We believe that improvements to both gene synthesis technologies and the increased affordability of high throughput DNA sequencing can be leveraged to create antibody discovery pipelines based on synthetic biology that rival animal immune systems In this proposal we will build a high throughput pipeline for recombinant antibody development in as few as days The proposed platform takes advantage of pre designed diversity next generation sequence analysis and advanced molecular biology techniques to enable the rapid identification of specific antibodies Although our screening platform is being developed with single chain variable fragment antibodies scFvs the technology is applicable to both Fab and yeast display libraries High throughput conversion of the scFvs to full immunoglobulin G IgG will be integrated within the pipeline so that the antibodies can be directly validated in the desired final format In genomics it was thought that the $ genome would be the inflection point at which whole genome sequencing would become commonplace But even at $ per genome researcher uptake was phenomenal and new ways of using the NextGen sequencers like ChIP Seq RNA seq etc were invented In a similar fashion we believe that at $ and weeks researchers will begin to develop new applications where the cost of producing antibodies is no longer a relevant factor and speed becomes everything The ready availability of low cost high quality affinity reagents will potentially accelerate all aspects of basic science research provide diagnostics for disease biomarkers and serve as a proof of concept for therapy Like the $ genome we think antibody identification and production can eventually go to under $ and less than weeks At that point whole proteome analyses for many different organisms and disease states will be possible And new methods will arise PUBLIC HEALTH RELEVANCE At the moment it costs $ and $ to contract out production of rabbit polyclonal and monoclonal antibodies respectively Unfortunately these reagents take months to deliver may not be renewable cannot be engineered and their sequences are not known Recombinant antibodies rAb have many attractive attributes compared to polyclonal antisera and monoclonal antibodies derived from hybridomas They are renewable through overexpression in the appropriate host they are easily stored and transferred as DNA and they can be genetically engineered as fusions to various enzymes fluorescent proteins and tags While a number of approaches for generating recombinant affinity reagents exist the cost and throughput of current technologies represent significant roadblocks to the development of a comprehensive and broadly available resource of renewable antibodies We believe that improvements to both gene synthesis technologies and the increased affordability of high throughput DNA sequencing can be leveraged to create antibody discovery pipelines based on synthetic biology that rival animal immune systems Here we present a platform for the rapid generation of recombinant monoclonal antibodies in as few as days at a cost comparable to that of polyclonals The platform takes advantage of pre designed library diversity that more closely mimics the natural diversity in human antibodies next generation sequence analysis to decode the enriched sequences and advanced molecular biology techniques to enable the rapid identification and production of recombinant antibodies In genomics it was thought that the $ genome would be the inflection point at which whole genome sequencing would become commonplace But even at $ per genome researcher uptake was phenomenal and new ways of using the NextGen sequencers like ChIP Seq RNA seq etc were invented In a similar fashion we do not know what the uptake and inflection points will be for antibodies At $ and weeks researchers may begin to develop new applications where the cost of producing antibodies is no longer a relevant factor and speed becomes everything The ready availability of low cost high quality affinity reagents will potentially accelerate all aspects of basic science research provide diagnostics for disease biomarkers and serve as a proof of concept for therapy Like the $ genome we think antibody identification and production can eventually go to under $ and less than weeks At that point whole proteome analyses for many different organisms and disease states will be possible And new methods will arise

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