16th Dec 2011 10:11
Unicorn AIM VCT plc ("the Company")
Annual financial report announcement for the year ended 30 September 2011
Investment Objective
The Company's objective is to provide Shareholders with an attractive returnfrom a diversified portfolio of investments, predominantly in the shares of AIMquoted companies, by maximising the stream of dividend distributions toShareholders from the income and capital gains generated by the portfolio.
It is also the objective that the Company should continue to qualify as a Venture Capital Trust, so that Shareholders benefit from the taxation advantages that this brings. To achieve this at least 70% of the Company's total assets are to be invested in qualifying investments of which 30% by value must be in ordinary shares carrying no preferential rights to dividends or return of capital and no rights to redemption.
Investment Policy
In order to achieve the Company's Investment Objective, the Board has agreed anInvestment Policy which requires the Investment Manager to identify and investin a diversified portfolio, predominantly of VCT qualifying companies quoted onAIM that display a majority of the following characteristics: * experienced and well-motivated management; * products and services supplying growing markets; * sound operational and financial controls; and * good cash generation to finance ongoing development allied with a progressive dividend policy.
Asset allocation and risk diversification policies, including maximum exposures, are to an extent governed by prevailing VCT legislation. Specific conditions for HMRC approval of VCTs include the requirement that no single holding may represent more than 15% (by value) of the Company's total investments and cash, at the date of investment.
The Investment Manager is responsible for managing sector and stock specificrisk and the Board does not impose formal limits in respect of such exposures.However, in order to maintain compliance with HMRC rules and to ensure that anappropriate spread of investment risk is achieved, the Board receives andreviews comprehensive reports from the Investment Manager and the Administratoron a monthly basis. When the Investment Manager proposes to make an investmentin an unquoted company, the prior approval of the Board is required.Where capital is available for investment while awaiting suitable VCTqualifying opportunities, or in excess of the 70% VCT qualification threshold,it may be invested in collective investment funds or in non-qualifying sharesand securities in smaller listed UK companies.To date the Company has operated without recourse to borrowing. The Board mayhowever consider the possibility of introducing modest levels of gearing up toa maximum of 10% of the adjusted capital and reserves, should circumstancessuggest that such action is in the interests of shareholders.
Chairman's Statement
I am pleased to present the tenth Annual Report of the Company for the financial year ended 30 September 2011.
The period under review has been one of modest progress for your Company despite a progressively deteriorating economic outlook, the consequences of which were evident in very weak equity markets towards the end of the financial year.
Audited net asset value per share as at 30 September 2011 was 103.34 pence pershare and the total return for the financial year, after adding back dividendspaid, was 3.1%. During the same period the FTSE All-Share Index lost 4.4% on atotal return basis, whilst the FTSE AIM All-Share Index declined by 9.8%.
The Company remains the largest AIM focused VCT in the market, with audited net assets as at 30 September 2011 of £60.45m.
As anticipated at the time of the merger with Unicorn AIM VCT II plc, which wascompleted in March 2010, the total running costs of the Company reduced duringthe period. Total cost savings amount to approximately £350,000 this yearcompared to the last full financial year for each VCT before they were merged.As a result, the total expense ratio remains low by industry standards at 2.69%of total assets.The Board continues to buy back shares for cancellation from time to time. Atotal of 4.3m shares were purchased for cancellation during the course of theyear at an average price of 97 pence per share. These shares were purchased ata discount to net assets of between 10% and 20%.
Dividend payments of 4 pence per share totalling £2.38m were made to shareholders in respect of the year ended 30 September 2011 on 14 January 2011.
During the year a total of £3.3m (net of expenses) was raised under an Offer for Subscription which closed on 30 June 2011. I would like to take this opportunity to welcome all new shareholders and to thank our existing shareholders for their continued support.
The year under review started positively for both the Company and for equitymarkets generally as corporate profitability improved and developed economiesappeared to be generating economic growth, however modest. Between October 2010and early May 2011, the FTSE All-Share Index appreciated by just over 10%, andthe net asset value of the Company increased by a similar amount.As summer progressed, however, concerns over the sustainability of globaleconomic recovery began to re-emerge. The continuing sovereign debt crisis inthe Eurozone, exceptionally high levels of borrowing in the US and signs ofslowdown in emerging market economies have all contributed to a heightenedsense of uncertainty. The problems caused by excessive levels of debt continueto affect all major global economies. The continued absence of a credible,coherent and politically acceptable financial rescue plan for the Greek economyis of particular concern and has been a notable contributor to the weakperformance of equity markets in recent monthsAt the time of writing, the threat that Greece might default on its sovereigndebt obligations remains, despite several rounds of financial support from theEuropean Central Bank and the International Monetary Fund. The almostinevitable consequence of such a default would be to trigger a domino effectamongst the other financially weak members of the European Union, which in turncould exacerbate the liquidity position of the major European banks.Between the start of July and the end of September 2011, the FTSE All-ShareIndex lost more than 13% in value, whilst the FTSE AIM All-Share Index fell byover 18%, wiping out all the gains made in the previous three quarters of theperiod under review. The declines in Europe were even more extreme, with themain German and French stock indices down by more than 28%. It therefore givesme some comfort to report that the performance of the investment portfolio hasbeen relatively resilient in the face of this market turmoil, with net assetsfalling by 9.2% over the same three month period.The uncertain economic environment combined with increasingly volatile marketconditions meant that it was a quiet year for Initial Public Offerings withonly 78 UK companies listing on AIM in the 12 month period to 30 September2011, of which relatively few were VCT qualifying. This compares with a peak ofalmost 400 admissions during 2005. Our Investment Manager maintains a highlyselective approach to new investments and participated in four VCT qualifyingopportunities in the period. Of these new investments, two were in companiesnew to AIM, whilst the other two took the form of secondary placings. Inaddition to these new investments, four qualifying follow-on investments weremade in companies in which the Company already held a stake.
In terms of disposals, M & A activity resulted in three qualifying companies being sold, and a partial disposal was made of Abcam through a series of secondary market trades.
The non-qualifying portfolio continued to develop during the year with the Investment Manager making ten new investments, three follow-on investments, seven outright disposals and a number of partial disposals. In addition, one non-qualifying company was sold, following its acquisition by a trade buyer.
Over the twelve months to 30 September 2011 there was a net gain on investmentsof £1.95 million and the total gain on ordinary activities after taxation was £1.41 million, the equivalent of 2.37 pence per share. The profit on the revenueaccount was £288,000. At the financial year end, the qualifying portfolioconsisted of 55 holdings whilst the non-qualifying portfolio had grown to 33.The Company remains comfortably above one of the key thresholds required byHMRC, whereby 70% of total assets must be invested in VCT qualifying companies.At the financial year end, the Company held 77.4% (reflecting the tax value ofinvestments as defined in the tax legislation), of its total investment assetsin VCT qualifyingcompanies.
A detailed report on the performance of both the qualifying and the non-qualifying portfolios is contained in the Investment Manager's Review on pages 7 to 13 in the Annual Report and Accounts ("Annual Report").
The Board remains committed to a policy of maximising the stream of dividenddistributions to shareholders from the income and capital gains generated bythe portfolio. Since the original launch in 2001, shareholders have received inexcess of £23m in tax free dividend distributions. The Board has now consideredthe payment of a final dividend for the financial year ended 30 September 2011.Despite the relatively modest income and capital gains made during the year,your Company retains significant distributable reserves and taking this intoaccount, the Board is pleased to recommend a dividend of 5 pence per share.Finally, it is worth noting that your Investment Manager has this year beenrecognised by the wider investment community, winning five investmentperformance awards across a range of funds, whilst being shortlisted for afurther three. It is particularly pleasing to report that Unicorn AssetManagement was named `VCT Manager of the Year' at the 2011 Growth CompanyAwards, whilst Unicorn AIM VCT was awarded `Best Venture Capital Trust' by WhatInvestment Magazine. The awards were based on an assessment of net asset valueperformance over three and five year time periods respectively and are anencouraging endorsement of the Unicorn team's conservative, disciplined andlong-term approach to investment management. I look forward to being able toreport on further progress in due course, hopefully when the wider fearssurrounding sovereign debt and global economic slowdown have begun to ease.Peter DicksChairman15 December 2011
Directors' Responsibilities Statement
The Directors confirm to the best of their knowledge that:
(a) that the financial statements, which have been prepared in accordance withUK Generally Accepted Accounting Practice and the 2009 Statement of RecommendedPractice, `Financial Statements of Investment Trust Companies and VentureCapital Trusts' give a true and fair view of the assets, liabilities, financialposition and profit or loss of the Company; and(b) that the management report, comprising the Chairman's Statement, InvestmentManager's Review, Investment Portfolio Summary and Directors' Report includes afair review of the development and performance of the business and the positionof the Company, together with a description of the principal risks anduncertainties that it faces.
Principal risks and uncertainties
The Directors review the principal risks faced by the Company as part of theinternal controls process (see the Corporate Governance Statement on page 32 inthe Annual Report for further information). The principal risks identified bythe Directors are: * Investment and strategic risk - Unsuitable investment strategy or stock selection could lead to poor returns to shareholders. * Regulatory and tax risk - The Company is subject to relevant laws and
regulations including Companies Act 2006, Income Tax Act 2007, UK Listing
Authority Rules and United Kingdom Accounting Standards. There is a risk
that the Company may breach these rules and face public censure, suspension
from the Official List and/or financial penalties. There is a risk that the
Company may lose its VCT status under the Income Tax Act 2007 before
shareholders have held their shares for the minimum period required to
retain their tax reliefs. Should the Company lose its VCT status,
shareholders may lose any upfront income tax relief they received and be
taxed on any future dividends paid and capital gain received if they
dispose of their shares. Inappropriate accounting policies or failure to
comply with accounting standards could lead to misreporting or breaches of
regulations.
* Operational risk - The Company has no employees and is therefore reliant on
third party service providers. Failure of the systems at third party service providers could lead to inaccurate reporting or monitoring. Inadequate controls could lead to the misappropriation or insecurity of assets. * Fraud and dishonesty risks - Fraud may occur involving company assets perpetrated by a third party, the Investment Manager or other service provider. * Financial Instruments risks - The main risks arising from the Company's financial instruments are due to fluctuations in the market price and
interest rates, credit risk and liquidity risk. The Board regularly reviews
and agrees policies for managing these risks and full details can be found
in note 19 on pages 49 to 53 in the Annual Report. * Economic risk - Events such as recession, inflation or deflation and movements in interest rates could affect trading conditions for smaller companies and consequently the value of the Company's investments. Investment Manager's ReviewInvestment Policy
It is the aim of the Investment Manager to identify and invest in a diversified portfolio of companies that display a majority of the following characteristics:
* experienced and well-motivated management; * products and services supplying growing markets; * sound operational and financial controls; and * good cash generation to finance ongoing development allied with a progressive dividend policy.
Performance
The audited net assets of the Company as at 30 September 2011 totalled £60.4m,equivalent to 103.34 pence per share. This compares with an audited net assetper share of 104.15 pence as at 30 September 2010. After adding back dividendspaid of 4 pence per share in the period, the total return amounted to 3.1%.
Investment strategy
The policy of investing in companies which have a demonstrable record ofprofitability and positive cash generation remains unchanged. The VCTqualifying and the non-qualifying portfolios are diversified both by sector andby number of investments held. The Company remains comfortably above thethreshold required to retain VCT qualifying status (whereby 70% of totalinvestment assets must be invested in VCT qualifying companies). YourInvestment Manager will continue to adopt a highly selective approach to newinvestment opportunities.
Alternative Investment Market(AIM)review
UK equity markets, which had remained relatively resilient for much of theperiod under review, came under severe pressure during August and September asfears of another financial crisis eroded confidence. The FTSE AIM All-ShareIndex ended the twelve months to 30 September 2011 down by 9.8% on a totalreturn basis, whilst the FTSE All-Share Index fell by 4.4% over the sameperiod. Interestingly, the worst performing sector across both indices was themining sector, which reacted negatively to a collapse in commodity prices.Precious metals, including silver and gold and base metals, such as nickel andlead all fell by around 20% from their peaks. These declines were triggered byfears of a sharp slowdown in economic growth in China combined with increasingfears that sovereign nations such as Greece, could default on their debtrepayment obligations thus potentially triggering another banking crisis.As noted in previous years, the performance of the AIM Index is closely linkedto the performance of the Mining and Oil & Gas sectors, which account for over40% of the Index by value.Unicorn AIM VCT has had minimal exposure to Mining & Resource companies, whichin part explains the strong relative performance achieved during the financialyear under review.The number of companies listing on AIM remains at historically low levels, withonly 55 UK and 17 International admissions in the first nine months of 2011. Intotal, these companies raised £531.5m in new money, which puts 2011 on courseto be the worst year for new fundraising on AIM for almost a decade. There canbe little doubt that this paucity of transactions is a reflection of widereconomic concerns. Nonetheless, it has to be of concern that, due to asignificant increase in delistings, there are now almost a third fewercompanies listed on AIM than there were at the peak in 2007. On a positivenote, average daily volumes and average daily value of trades have recoveredquite sharply during 2011 .
Qualifying investments
Despite a difficult end to the financial year, it is pleasing to report thatthe majority of our VCT qualifying companies remain in good health, bothoperationally and financially. Clearly, the outlook has become more uncertainin recent months and, as a result, management teams are expressing a cautiousview on prospects. However, the fact that so many of these companies survivedthe financial crisis of 2008 and the subsequent recession bodes well for theirfuture prospects. One of the few benefits that can result from a retrenchmentin economic activity is that capable management teams can seize the opportunityto examine their cost base, focus on cash generation, improve productivity andrefine their approach to customer service. For those businesses that are swiftto respond to more challenging trading conditions the benefits can beconsiderable and are often manifested in improved profitability, strongerbalance sheets, a more motivated workforce and greater loyalty from customers.It is for these reasons that many of the constituents of the qualifyingportfolio performed relatively resiliently in what was a difficult year forquoted companies generally.A review of the main positive contributors to performance in the VCT qualifyingportfolio follows (bracketed figures represent the share price movement for theyear under review on a bid price basis):-Abcam (+5.7%) is a global leader in the manufacture and supply of therapeuticantibodies and protein research tools to the worldwide life science researchmarket. This company continues to expand. Results for the financial year ended30 June 2011 confirmed that growth has remained strong. Annual revenuesincreased by 17% to £83.3m, whilst pre-tax profits grew by 25% to £32.1m. Thiscompany remains strongly cash generative with net cash increasing to £55.6m(2010 - £40.2m) despite a £10m outflow to fund acquisitions and dividendpayments. Abcam shares rose by 5.7% during the period under review, once againsignificantly outperforming the AIM Index. As a result, the relative weightingof Abcam within the qualifying portfolio remains significant. In order tomitigate this stock specific risk, further partial disposals were made duringthe financial year. The net amount of these realisations was £855k and therealised capital gain was £615k, at an average price on disposal of over £4 pershare. As at 30 September 2011, Abcam had a market capitalisation in excess of£660m.Animalcare (+71.8%) is a leading UK supplier of veterinary medicines,identification and welfare products to the companion animal market. In thetwelve months to 30 June 2011, this company grew turnover by 5%, whichtranslated into a 21% increase in profit before tax of £3m. Although there iscurrently little or no growth in the veterinary medicines market in the UK, theBoard of Animalcare believes that the business can continue to grow throughproduct launches and increased market share. Animalcare has launched six newproducts since the beginning of July 2010 and is planning to launch a furtherfour drugs during its current financial year.Avingtrans (+17.6%) designs, manufactures and supplies critical components tothe medical, energy, industrial and global aerospace sectors. Following adifficult year in 2010, this company is now witnessing improving demand acrossthe majority of its markets. Global economic recovery combined with operationalefficiency improvements have resulted in a much improved financial performance.The results for the twelve months to 31 May 2011 reflect this recovery withturnover up 27% to £36.3m and operating profit increasing almost threefold to £1.4m, highlighting the inherent operational gearing of the business. The Boardhas also reinstated the final dividend and confirmed its commitment to pursuinga progressive dividend policy.Belgravium (+182.3%) designs and manufactures real-time data capture systems.In the six month period to 30 June 2011, turnover improved by 30.5% to £4.77m(2010 - £3.66m) generating a profit before tax of £321,000 compared to aneffective break even position during the equivalent period in 2010. It isparticularly pleasing to report a significant strengthening of the balancesheet with net cash of £638,000 versus a net debt position of £711,000 twelvemonths ago.Cohort (+39.5%) is a technology group with three operating subsidiaries each ofwhich is focused on providing specialist technical products or services,primarily to the defence market. In the financial year ended 30 April 2011,Cohort posted revenue of £65.1m and a profit before tax of £2.7m. Havingsuffered a number of significant operational issues during the past two years,the three operating businesses now appear to have solid prospects. The orderbook at this company's financial year end stood at £103.2m and this provides asolid platform for the current financial year, despite continuing uncertaintyin the UK defence market. Cohort's businesses have strong market positions andthe Group has a solid balance sheet with net cash of £6.7m as at 30 April 2011.Dillistone (+62.2%) is a global supplier of executive recruitment software tothe search and selection market. This company's core product is a softwaresystem known as Filefinder, which is specifically designed to supporteverything that an executive recruiter does. Filefinder is used by over 1,000firms in more than 55 countries around the world. The recently reported interimresults for the six months ended 30 June 2011, showed revenues up 16% to £2.3mand pre-tax profits up 8% at £551,000.Idox (+89.4%) is a leading independent supplier of software and services to theUK public sector and other markets. In the six month period ended 30 April2011, Idox delivered revenue growth of 21% to £18m whilst pre-tax profitdeclined 8% to £2m on higher amortisation and share option charges. Thiscompany's net cash position improved to £4.1m despite funding fouracquisitions, increasing the dividend and paying off remaining debt early. Theinterim dividend was increased by 140%, reflecting the Board's confidence inthe long term strength of the business.Mattioli Woods (+10.9%) is a specialist pensions consultancy and wealthmanagement business. Mattioli Woods recently recorded a sixth consecutive yearof growth since listing on AIM in 2006. In the financial year ended 31 May 2011revenues increased by 12.3% to £15.4m, whilst adjusted earnings per share grewby 14.1%. Assets under administration grew by 21.7% to £2.3bn and the dividendwas increased by 13.8%.Surgical Innovations (+186.4%), the designer and manufacturer of innovativemedical devices for minimally invasive surgery, continues to make positiveprogress. In the first half of the financial year ended 30 June 2011 sales andprofits were lower on a like-for-like basis primarily because of an anticipatedreduction in business with an industrial customer. Demand for branded productswas strong however, and significant investment in people, product developmentand infrastructure has therefore continued in anticipation of further growth in2012. Current trading and customer demand across the business is reported asbeing encouraging, with strong demand for its branded products as well as asignificant improvement in OEM sales.Tangent Communications (+48.8%) is a market leading provider of technology anddigital marketing services. For the financial year ended 28 February 2011turnover increased by 23% to £22.4m, whilst underlying operating profitincreased by 65% to £1.3m. Cash generated from operations also increasedsignificantly to £1.8m representing 135% of underlying operating profit.Trading in the first half of this company's current financial year is reportedto be in line with management expectations.Tracsis (+26.6%) is a provider of operational planning software and consultancyservices to the transport industry. In August, Tracsis reported that trading inthe second half of its financial year to 31 July 2011 was ahead of marketexpectations and that the enlarged group anticipates delivering full yearrevenues and profits significantly ahead of forecast, including over £1m ofrevenue contribution from the acquired operations of MPEC Technology Limitedcompleted on 1 June 2011.Zetar (+21.8%) is a leading manufacturer of confectionery and natural snackswith a reputation for quality and product innovation. Financial results for theyear ended 30 April 2011 demonstrated the resilience of the business despite adramatic rise in commodity prices. The confectionery division achieved a recordresult reflecting an increase in sales and an improved mix of higher marginproducts allied to further cost efficiencies, whilst margins in the naturalsnacks division improved significantly in the second half as price increaseswere implemented. Overall, revenues were up marginally to £135m, whilstearnings per share increased by 9% to 35.8 pence. Management's confidence inthe prospects for the business was reflected in the Board's decision to pay aninaugural dividend.
Of the qualifying investments that fared less well during the year, the majority remain in sound financial health, despite operating in particularly challenging markets. A review of these investments follows:-
Access Intelligence (Ordinary Shares -47.4%) comprises a group of Software as aService (Saas) businesses that delivers compliance solutions to the public andprivate sectors. This company's strategy has been to acquire growth businessesin targeted sectors and then build value through driving organic growth andincreasing cross-selling opportunities. In the six month period to 31 May 2011,turnover declined marginally to £4.0m (2010 - £4.1m) whilst profits before taxfell to break-even levels. The principal cause of the decline in profitabilityrelates to difficulties encountered at the acquired compliance trainingbusiness, Cobent, where sales opportunities have proven slow to close in theprevailing economic environment. A new management team has been installed atCobent and costs are being streamlined to bring them in line with current saleslevels. In July 2011, Access Intelligence announced the disposal of anothersubsidiary, Solcara, realising cash proceeds of £2.5m. The disposal of thisbusiness was achieved on a multiple of 3.3x Solcara's revenues for the yearended 30 November 2010 and will therefore significantly increase AccessIntelligence's reported cash balance of £2.7m once the transaction hascompleted. Importantly, Access Intelligence has also established a sizeablecustomer base from which it derives recurring revenues, currently representing65% of annual turnover.Crawshaw Group (-59.1%) operates a chain of retail butchers in the North ofEngland. In its interim results for the six months to 31 July 2011, thiscompany reported on a particularly challenging retail climate, where risingmeat prices coupled with reduced levels of disposable income were conspiring todepress footfall and average spend. Despite an increase in the number ofoperating units, total revenues for the period were flat, whilst like for likesales were down by 4%. As a consequence, profit before tax declined to £68,000from £233,000 during the equivalent period in 2010.Green Compliance (-24.3%) is a provider of water, fire and pest control servicesto UK businesses nationwide. The business continues to develop positively andhas recently delivered results that were in line with expectations. However,share price performance remains a disappointment. In the period under reviewthe share price fell by almost a quarter. Following a share consolidation inAugust 2011, and the successful clearing of a large overhang of shares, theshare price has stabilised.Maxima Holdings (-63.1%) is an IT business systems and managed servicescompany, which grew rapidly through acquisition after floating on AIM inNovember 2004. The business has struggled in recent years as managementattempted a controlled migration of customers from legacy mainframe support tonew, more focused and higher margin, managed services and solutions. Followingthe completion of a strategic review in September 2011, Maxima has undergone achange of management and successfully raised £2m via an issue of equity. Thenewly appointed Executive Chairman has also announced the sale of non-coreoperating units. This process is to be conducted over the coming months,following which it is to be hoped that Maxima will be well positioned to focuson providing next generation IT managed services and solution to new andexisting customers.Snack Time (Ordinary Shares -52.0%) is the third largest vending company in theUK following a series of acquisitions. In an update related to trading in thefirst six months of its financial year, this company reported that it wasmaking good progress despite the impact of high input inflation, the increasein VAT and ongoing deterioration in consumer confidence. Snacktime has alsosuccessfully completed a major restructuring in the period, which has resultedin significant upfront exceptional costs. Savings from the restructuring of theoperating division began to be evident toward the end of the six month periodto 30 September 2011. These savings are expected to offset the impact of inputprice inflation following the large increases in commodity prices experiencedover the last 12 months. The combination of new customer contracts and furtherefficiencies means that the management of SnackTime expect to deliver marginimprovements during the second half of the financial year.Other qualifying holdings which struggled in share price terms include PressureTechnologies (-22.3%), Tristel (-23.1%) and Vianet, formerly Brulines (-22.5%).Each of these businesses remains fundamentally sound, with good long termprospects, capable management and strong balance sheets. The Investment Manageris confident that their market valuations will recover in due course.
New qualifying investments
At the financial year end the Company held over 77% of total investment assetsin VCT qualifying businesses as calculated in accordance with HMRC taxvaluation rules. New VCT qualifying investments are only made if the companiesconcerned meet the Investment Manager's clearly defined investment criteria.During the period, four VCT qualifying companies were introduced to theportfolio. These were:-Accumuli (+31%) is a `buy and build' company focused on acquiring businessesoperating in the managed security services sector of the IT market. Following aperiod of restructuring and management change, this company successfullycompleted a fundraising in November 2010 and has since announced that it is toacquire three businesses, all operating in the fast growing IT security sector.Hangar 8 (-8.0%) is one of Europe's largest operators of privately ownedpassenger jet aircraft. This company currently manages twenty-one jets onbehalf of their owners and charters them out to third party customers. The sizeof Hangar 8's fleet today enables it to offer cost effective management feesand attractive levels of charter income for owners, whilst providing chartercustomers with a competitively priced service. This company listed on AIM inNovember 2010. Final results for the 14 month period ended 30 June 2011 showedstrong growth in turnover, profitability and net cash.Instem Life Science Systems (+27.1%) is a software company focused on the lifesciences and biotechnology markets. Instem has developed world leading softwareto enable pharmaceutical companies to collect, analyse and report large volumesof complex scientific data in an accurate and efficient manner. The businesshas been consistently profitable and cash generative over recent years. Thiscompany was admitted to AIM in October 2010 following a successful placing ofshares which raised £9m. Interim results for the six months to 30 June 2011were in line with expectations and the outlook statement highlightedmanagement's confidence in delivering further growth in the current financialyear.Omega Diagnostics (+21.08%) is an AIM-listed medical diagnostics company whichraised £7.8m from institutional investors, including Unicorn AIM VCT, inNovember 2010. The proceeds of the placing have been used to fund theacquisition of a profitable European allergy testing business. The combinedbusinesses now establish Omega as one of the UK's leading companies in the fastgrowing areas of food intolerance and allergy testing. This company is also aspecialist in testing for infectious diseases such as Syphilis, TB, DengueFever and Malaria.
In addition, four qualifying follow-on investments were made during the period in Brady, Green Compliance, IS Pharma and Tristel.
Non-qualifying, follow-on investments were made in Dillistone, HML Holdings and Tangent Communications.
Realisations
There were a limited number of realisations in the year to 30 September 2011.
As previously reported, the disposal of Amber Taverns was concluded in October2010. Amber Taverns is an unquoted operator of public houses in the North Westof England which was acquired by a private equity firm following a competitivesales process. Total cash proceeds from this disposal amounted to more than £5.3m and were received in full in October 2010, generating a realised capitalprofit of £3.3m, the majority of which was recognised as an unrealised gain inthe previous year's report and accounts.
The acquisition of Mount Engineering by Cooper Controls was also concluded early in the financial year realising net proceeds of £351,000 and a capital gain of £86,000.
Individual Restaurant Company was delisted in June 2011 following an offer bymanagement to take the business private, generating cash proceeds of £69,000and crystallising a capital loss of £496,000.
Shieldtech, the designer and manufacturer of body armour, was placed into administration in October 2010. The value of the holding had already been written down to zero in last year's Report & Accounts.
The portfolio's holding in Universe Group was sold to Brookwell, a portfolio realisation specialist, in exchange for an equivalent value of shares in Brookwell.
Non-qualifying portfolios
Following the merger with Unicorn AIM VCT II plc in March 2010, the combinedassets of the Company remain diversified and the level of qualifying investmentwas comfortably above the threshold required by HMRC to retain VCT qualifyingstatus at the financial year end. As a result, the process of developing thenon-qualifying portfolio has continued. During the period, ten newnon-qualifying companies were added to the portfolio. The total cost of theseinvestments amounted to £3.4m.
A brief description of the new holdings follows:-
ATH Resource Share price as at 30 September 41p 2011
ATH Resources operates surface coal mines and is one of the largest producers of coal in the UK, providing coal principally to the electricity supply
industry and also the industrial and house coal markets
Communisis Share price as at 30 September 25p 2011
Communisis is a leading marketing services group, with increasing presence in the fast growing digital marketing segment. Communisis has successfully
developed the capabilities necessary to deliver end to end marketing solutions for its clients thus helping them to efficiently deliver more effective and
profitable communications. IQE Share price as at 30 September 24p 2011
IQE is a leading global manufacturer and supplier of advanced semiconductor wafers with products that cover a diverse range of applications, such as computers, mobile phones and photovoltaic solar devices. The technology is
supported by innovative outsourced foundry services that allows the Group to provide a 'one stop shop' for the wafer needs of the world's leading
semiconductor manufacturers.
Phoenix IT Group Share price as at 30 September 191p 2011
The Phoenix IT Group provides managed IT Infrastructure support services,
including systems management, communications, remote telephone support, project & consultancy services and business continuity.
SSE (Scottish & Southern Energy) Share price as at 30 September 1,287p 2011
SSE is involved in the generation, transmission, distribution and supply of
electricity, in the production, storage, distribution and supply of gas and in other energy services. Since the year end, this holding has been sold.
Specialist Energy Group Share price as at 30 September 43p 2011
Specialist Energy Group is a niche engineering and manufacturing group. Its main operating subsidiary, Hayward Tyler, is the worldwide market leader in boiler circulating pumps and is focused on the energy sector. The Group supplies pumps to energy related companies operating in sectors such as conventional fossil fired power generation, nuclear power generation and oil & gas exploration. Stadium Group Share price as at 30 September 670p 2011 Stadium Electronics is a specialist contract manufacturer focused on providing electronic and power products to OEMs in the security, medical, transportation and communications sectors. Stadium operates low cost manufacturing facilities in the UK and China. Staffline Share price as at 30 September 210p 2011 Staffline provides and manages industrial workforces with a focus on supplying temporary labour to the food processing, manufacturing and logistics sectors. Tricon Share price as at 30 September 26p 2011
Tricorn is a manufacturer of specialist pipe and tubing assemblies supplying worldwide markets in the aerospace, energy, transportation and utilities
sectors. VP (Vibroplant) Share price as at 30 September 229p 2011
VP is a specialist equipment rental company, engaged in the rental and sale of products to the civil engineering, rail, oil and gas exploration, construction,outdoor events, and industrial markets. A number of the new non-qualifying investments have not performed as well asanticipated in the short term. The sharp sell-off in equity markets generallyand in smaller quoted companies in particular during the final three months ofthe financial year has been primarily responsible for the weaker than expectedperformance from some of the new investments, rather than any particular stockspecific issues. The strategy for the non-qualifying portfolio is to buildrevenue reserves by continuing to identify investment opportunities incompanies that are sensibly valued and which have an established track recordof paying dividends together with the aim of pursuing a progressive dividendpolicy. Your Manager remains confident in the long term prospects for these newinvestments. As at 30 September 2011 their aggregate carrying value amounted to£2.8m.
Within the non-qualifying portfolio, the contribution to performance from the investment in sub-funds of the Unicorn Investment Funds OEIC has remained strong.
All five sub-funds of the Unicorn Investment Funds OEIC performed well, withfour out of five performing in the top decile of their respective asset classesover the twelve month period ended 30 September 2011. All of the sub-fundsachieved positive total returns in the period, ranging from +1% in theOutstanding British Companies Fund to +12% from the Unicorn Free Spirit Fund.It is important to note that the Investment Manager's fees are based on the netasset value of the Company excluding the value of the investments in these OEICFunds, as the Investment Manager earns fees from managing the OEIC fundsseparately, thus ensuring there is no double charging of fees.
Prospects
The issues surrounding excessive debt continue to weigh heavily on developedeconomies. It is likely that the debt reduction measures currently beingimplemented, although necessary, will slow the pace of economic recovery. Inparticular, the cutbacks in public sector spending are creating an almostinevitable increase in the unemployment numbers.There appears to be a dawning realisation that the many and serious problemsfaced by most western economies cannot be solved easily or quickly. Investorsin UK equity markets have been adapting to this new and harsh reality. Inrecent months, many soundly financed, well managed, quoted companies have seentheir valuations tumble as it becomes increasingly likely that sustainableeconomic recovery will be elusive. However, as highlighted in previous years,many of the British companies quoted on UK equity markets now operate on aglobal scale. This geographic diversification provides some protection when thedomestic economy is struggling, whilst also presenting opportunities togenerate growth from emerging market economies. Many of the companies held inthe qualifying and non-qualifying portfolios sell their products or services ona worldwide basis and are currently enjoying an added competitive advantagegained from the continuing relative weakness of Sterling.
The established policy of investing in conservatively managed, sustainably profitable businesses with strong balance sheets and healthy cashflows has contributed to the resilient performance delivered in the year under review. Your Investment Manager intends to retain this prudent investment approach since, in our opinion, it provides the most effective method of delivering superior returns over the longer term.
Following recent market turmoil, the valuation of the smaller quoted companysector is looking increasingly attractive, even after factoring in probabledowngrades to earnings forecasts in 2012 and beyond. However, the outlook foreconomic growth remains modest at best and the operating environment for manysmaller quoted companies has become more challenging in recent months. We willtherefore continue to invest selectively in this area as and when we are ableto identify VCT qualifying companies that meet our strict investment criteriaand which are available at compelling valuations. At the same time, we will aimto develop and broaden the quality of the non-qualifying portfolio, with theintention of meeting the objective of increasing the capital and revenuereserves available for distribution to shareholders over the longer term.Chris HutchinsonUnicorn Asset Management Limited15 December 2011
Income Statement
For the year ended 30 September 2011
30 September 2011 30 September 2010 Notes Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Net unrealised gains on 9 - 781 781 - 7,184 7,184investments Net gains on realisation 9 - 1,170 1,170 - 1,557 1,557of investments Income 2 1,103 - 1,103 930 - 930 Investment management 3 (276) (829) (1,105) (195) (585) (780)fees Other expenses 4 (539) - (539) (539) - (539) Merger costs - - - (98) - (98) ----- ----- ----- ----- ----- ----- Profit on ordinary 288 1,122 1,410 98 8,156 8,254activities before taxation Tax on profit on ordinary 6 - - - - - -activities ----- ----- ----- ----- ----- ----- Profit on ordinary 288 1,122 1,410 98 8,156 8,254activities after taxation for the financial year ==== ==== ==== ==== ==== ==== Basic and diluted earnings per share: Ordinary Share 8 0.48p 1.89p 2.37p 0.20p 16.57p 16.77p
All revenue and capital items in the above statement derive from continuing operations of the Company.
The comparatives reported in these financial statements reflect the activitiesof what were previously the Ordinary Share Fund, the S2 Share Fund and the S3Share Fund of the Company, which were consolidated on 9 March 2010, for thewhole period. In addition, these comparative results include the transfer ofthe assets and liabilities of Unicorn AIM VCT II PLC to the Company, witheffect from 9 March 2010.
There were no other recognised gains or losses in the year.
The total column of this statement is the profit and loss account of the Company.
Other than revaluation movements arising on investments held at fair value through Profit and Loss Account, there were no differences between the profit as stated above and at historical cost.
The notes below form part of these financial statements.
Balance sheetas at 30 September 2011 30 September 2011 30 September 2010 Notes £'000 £'000 £'000 £'000 Non-current assets Investments at fair 59,563 61,432value Current assets Debtors and prepayments 177 452 Current investments 779 375 Cash at bank 650 349 ---- ---- 1,606 1,176 Creditors: amounts (722) (329) falling due within one year ---- ---- ---- ---- Net current assets 884 847 ---- ---- Net assets 60,447 62,279 ==== ==== Capital Called up share capital 585 598 Capital redemption 283 240reserve Share premium account 28,422 25,143 Revaluation reserve 2,685 5,955 Special distributable 18,838 24,263reserve Profit and loss account 9,634 6,080 ---- ---- Equity shareholders' 60,447 62,279funds ==== ==== Net asset value per share of 1 pence each: Ordinary Shares 103.34p 104.15p
The notes below form part of these financial statements.
Cash flow statement
For the year ended 30 September 2011
30 September 2011 30 September 2010 Notes £'000 £'000 £'000 £'000 Operating activities Investment income received 1,306 708 Other income received 50 50 Investment management fees (1,106) (743) paid Other cash payments (781) (655) Payment of merger costs of - (120) the company ---- ---- ---- ---- Net cash outflow from (531) (760)operating activities Investing activities Purchase of investments (7,834) (8,128) Sale of investments 11,817 6,002 ---- ---- ---- ---- 3,983 (2,126) Equity dividends Equity dividends paid to (2,378) (1,418)Unicorn AIM VCT plc shareholders Equity dividends paid in - (1,353)
respect of dividends declared
to Unicorn AIM VCT II plc shareholders but not paid
before assets and liabilities were transferred to Unicorn
AIM VCT plc ---- ---- Net cash (outflow)/inflow 1,074 (5,657)
before financing and liquid
resource management Financing
Cash received on acquisition - 3,736 of net assets from Unicorn
AIM VCT II plc
Stamp duty on shares issued - (98)
to acquire net assets of Unicorn AIM VCT II plc
Payments to meet merger costs - (170) of Unicorn AIM VCT II plc
Share capital raised 3,309
Share capital bought back (3,678) (1,365)
---- ---- ---- ---- (369) 2,103
Management of liquid
resources (Increase)/Decrease in (404) 3,537current investments ---- ---- Net (decrease)/increase in 301 (17)cash ==== ====
Reconciliation of movements in Shareholders' funds
for the year ended 30 September 2011
30 September 2011 30 September 2010 Notes £'000 £'000 As at 1 October 2010 62,279 32,138 Net share capital bought back in (4,173) (1,267)the year Net share capital raised 3,309 - Profit for the year 1,410 8,254 Dividends paid (2,378) (1,418) Shares issued upon acquisition -
24,670
of assets and liabilities from
Unicorn AIM VCT II plc Stamp duty on shares issued - (98) ---- ---- Closing Shareholders' funds at 60,447 62,27930 September 2011 ==== ====Notes to the accounts
For the year ended 30 September 2011
1 Accounting policies
A summary of the principal accounting policies, all of which have been applied consistently throughout the year, is set out below:
a) Basis of accounting
The accounts have been prepared under UK Generally Accepted Accounting Practice(UK GAAP) and the Statement of Recommended Practice, `Financial Statements ofInvestment Trust Companies and Venture Capital Trusts' ("the SORP") issued bythe Association of Investment Companies in January 2009.The comparatives reported in these financial statements reflect the activitiesof what were previously the Ordinary Share Fund, the S2 Share Fund and the S3Share Fund of the Company, which were consolidated on 9 March 2010, for thewhole period. In addition, these comparative results include the transfer ofthe assets and liabilities of Unicorn AIM VCT II PLC to the Company, witheffect from 9 March 2010.As a result of the Directors' decision to distribute capital profits by way ofa dividend, the Company revoked its investment company status as defined undersection 266(3) of the Companies Act 1985, on 17 August 2004.
b) Presentation of the Income Statement
In order to better reflect the activities of a VCT and in accordance with theSORP, supplementary information which analyses the Income Statement betweenitems of a revenue and capital nature has been presented alongside the IncomeStatement. The revenue column of the profit attributable to shareholders is themeasure the Directors believe appropriate in assessing the Company's compliancewith certain requirements set out in section 274 Income Tax Act 2007.
c) Investments
All investments held by the Company are classified as "fair value throughprofit and loss", in accordance with the International Private Equity andVenture Capital Valuation ("IPEVCV") guidelines, as updated in September 2009.This classification is followed as the Company's business is to invest infinancial assets with a view to profiting from their total return in the formof capital growth and income.For investments actively traded on organised financial markets, fair value isgenerally determined by reference to Stock Exchange market quoted bid prices atthe close of business on the balance sheet date. Purchases and sales of quotedinvestments are recognised on the trade date where a contract of sale existswhose terms require delivery within a time frame determined by the relevantmarket. Purchases and sales of unlisted investments are recognised when thecontract for acquisition or sale becomes unconditional.
Unquoted investments are stated at fair value by the Directors in accordance with the following rules, which are consistent with the IPEVCV guidelines:
All unquoted investments are held at the price of a recent investment for anappropriate period where there is considered to have been no change in fairvalue. Where such a basis is no longer considered appropriate, the followingfactors will be considered:
i. Where a value is indicated by a material arms-length transaction by an
independent third party in the shares of a company, this value will be
used.
ii. In the absence of i), and depending upon both the subsequent trading
performance and investment structure of an investee company, the valuation
basis will usually move to either:-
a. an earnings multiple basis. The shares may be valued by applying a suitable
price-earnings ratio to that company's historic, current or forecast
post-tax earnings before interest and amortisation (the ratio used being
based on a comparable sector but the resulting value being adjusted to
reflect points of difference identified by the Investment Manager compared
to the sector including, inter alia, a lack of marketability).
or:-
b. where a company's underperformance against plan indicates a diminution in
the value of the investment, provision against cost is made, as
appropriate. Where the value of an investment has fallen permanently below
cost, the loss is treated as a permanent impairment and as a realised loss,
even though the investment is still held. The Board assesses the portfolio
for such investments and, after agreement with the Investment Manager, will
agree the values that represent the extent to which an investment loss has
become realised. This is based upon an assessment of objective evidence of
that investment's future prospects, to determine whether there is potential
for the investment to recover in value.
iii. Premiums on loan stock investments are accrued at fair value when the
Company receives the right to the premium and when considered recoverable.
iv. Where an earnings multiple or cost less impairment basis is not appropriate
and overriding factors apply, discounted cash flow or net asset valuation
bases may be applied. d) IncomeDividends receivable on quoted equity shares are brought into account on theex-dividend date. Dividends receivable on unquoted equity shares are broughtinto account when the Company's right to receive payment is established andthere is no reasonable doubt that payment will be received. Fixed returns onnon-equity shares are recognised on a time apportioned basis so as to reflectthe effective interest rate, provided there is no reasonable doubt that paymentwill be received in due course. Fixed returns on debt securities are recognisedon a time-apportioned basis so as to reflect the effective yield.
e) Capital reserves
i. Realised (included within the Profit and Loss Account reserve)
The following are accounted for in this reserve:
* Gains and losses on realisation of investments; * Permanent diminution in value of investments; * Transaction costs incurred in the acquisition of investments; and
* 75% of management fee expense, together with the related tax effect to this
reserve in accordance with the policies.
ii. Revaluation reserve (Unrealised capital reserve)
Increases and decreases in the valuation of investments held at the year-endare accounted for in this reserve, except to the extent that the diminution isdeemed permanent.
In accordance with stating all investments at fair value through profit and loss, all such movements through both revaluation and realised capital reserves are shown within the Income Statement for the year.
iii. Special distributable reserve
The cost of share buybacks are charged to this reserve. In addition, any realised losses on the sale of investments, and 75% of the management fee expense, and the related tax effect, are transferred from the Profit and Loss Account reserve to this reserve.
f) Expenses
All expenses are accounted for on an accruals basis. Expenses are chargedwholly to revenue, with the exception of expenses incidental to the acquisitionor disposal of an investment, which are charged to capital, and with thefurther exception that 75% of the fees payable to the Investment Manager arecharged against capital. This is in line with the allocation followed by mostother VCTs. IFA trail commission is expensed in the period in which it isincurred.
g) Taxation
Deferred tax is recognised in respect of all timing differences that haveoriginated but not reversed at the balance sheet date where transactions orevents that result in an obligation to pay more tax in the future or a right topay less tax in the future have occurred at the balance sheet date. Timingdifferences are differences between the Company's taxable profits and itsresults as stated in the financial statements that arise from the inclusion ofgains and losses in the tax assessments in periods different from those inwhich they are recognised in the financial statements.Deferred tax is measured at the average tax rates that are expected to apply inthe years in which the timing differences are expected to reverse based on taxrates and laws that have been enacted or substantially enacted at the balancesheet date. Deferred tax is measured on a non-discounted basis.A deferred tax asset is recognised only to the extent that it is more likelythan not that future taxable profits will be available against which the assetcan be utilised.Any tax relief obtained in respect of management fees allocated to capital isreflected in the capital reserve - realised and a corresponding amount ischarged against revenue. The tax relief is the amount by which corporation taxpayable is reduced as a result of these capital expenses.
h) Liquid resources
Liquid resources are the current investments disclosed in note 12, regarded asavailable for investment, rather than to meet the Company's running expenses,as at the year-end.2. Income 2011 2010 £'000 £'000 Interest receivable - from bank deposits - - ---- ---- - - Income from investments - from equities 906 595 - from loan stocks 106 194
- from money-market funds and Unicorn managed OEICs 91
85 ---- ---- 1,103 874 Other income - 56 ---- ---- Total income 1,103 930 ==== ==== Total income comprises Dividends 997 680 Interest 106 194 Other income - 56 ---- ---- 1,103 930
Income from investments comprises
Listed UK securities 222 131 Listed Overseas securities 6 15 Unlisted UK securities 875 728 ---- ---- 1,103 874 ==== ====3. Taxation 2011 2010 £'000 £'000
Taxation on ordinary activities -
- 2011 2010 £'000 £'000
a) Analysis of tax charge in the year -current and total tax charge (note 6b) -
-
b) Factors affecting tax charge for the year: Profit on ordinary activities before tax 1,410
8,254
Profit on ordinary activities multiplied by standard small 289 1,733 profits rate of corporation tax in the UK of 20.5% (2010:
21%) Non-taxable UK dividend income (203)
(122)
Non-taxable unrealised (gains)/losses (160) (1,509) Non-taxable realised gains (240) (327)
Allowable expense not charged to revenue 170
123 Disallowable expenses 2 - Losses carried forward 142 102 ---- ----
Actual current charge - revenue -
-
Impact of allowable expenditure credited to capital (170) (123)reserve
Additional losses carried forward to future years 170
123 ---- ----
Actual current charge - capital -
- ---- ----
Current tax charge for the year -
- ==== ====
Tax relief relating to investment management fees is allocated between Revenue and Capital in the same proportion as such fees.
There is no taxation in relation to capital gains or losses. Due to the Company's status as a Venture Capital Trust, and the intention to continue meeting the conditions required to obtain approval in the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments.
No deferred tax asset has been recognised on surplus management expensescarried forward. At present it is not envisaged that any tax will be recoveredin the foreseeable future. The deferred tax amount not recognised is £1,878,000(30 September 2010: £1,647,000).4. Dividends 2011 2010 £'000 £'000 Amounts recognised as distributions to equity holders in the year: Ordinary Share Fund
Final capital of 4p per share 2,378
-for the year ended 30 September 2010 paid on 14 January 2011 Ordinary Fund (up until 9 March 2010) Interim capital dividend of -
1,058
3.5p per Ordinary Share for the year ended 30 September
2009 paid on 29th January 2010 S2 Fund
Interim capital dividend of -
360
2.5p per S2 Share for the year ended 30 September 2009
paid on 29th January 2010 ---- ---- 50 1,418 ==== ====
Any proposed final dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements.
Set out below are the total income dividends payable in respect of the financial year, which is the basis on which the requirements of Section 274 of the Income Tax Act 2007 are considered.
2011 2010 £'000 £'000
Revenue available for distribution by way of 288
98dividends for the year
Proposed final dividend of 0.75p (2010:£nil) for 439
Nil
the year ended 30 September 2011
5. Basic and diluted earnings and return per share
2011 2010 £'000 £'000 Total earnings after 1,410 8,254taxation: ---- ---- Basic and diluted earnings 2.37p 16.77pper share (note a) Net revenue from ordinary 288 98activities after taxation ---- ---- Revenue earnings per share 0.48p 0.20p(note b) Net unrealised capital 781 7,184gains Net realised capital gains 1,170 1,557 Capital expenses (net of (829) (585)taxation) Total capital return 1,122 8,156 ---- ---- Capital earnings per share 1.89p 16.57p(note c) Weighted average number of 59,414,982 49,209,889
shares in issue in the year*
Notes
a. Basic and diluted earnings per share is total earnings after taxation
divided by the weighted average number of shares in issue.
b. b) Revenue earnings per share is net revenue after taxation divided by the
weighted average number of shares in issue.
c. Capital earnings per share is total capital return divided by the weighted
average number of shares in issue.
There are no instruments in place that will increase the number of shares inissue in future. Accordingly, the above figures currently represent both basicand diluted returns.6. Current investmentsThese comprise investments in two Dublin based OEIC money market funds, managedby Royal Bank of Scotland and Blackrock Investment Management UK Limited andone UK based OEIC, managed by Prime Rate Capital Management. All of these fundsof £779,000 (30 September 2010: £375,000) are subject to same day access. Thesesums are regarded as monies held pending investment.7. Net asset values 2011 2010 £'000 £'000 Net Assets 60,447 62,279 Number of shares in issue 58,492,674 59,795,232 ---- ---- Net asset value per share 103.34p 104.15p8. Related party transactionsUnder the terms of the previous agreement dated 1 October 2001, and the amendedagreement dated 9 March 2010, the Company has appointed UAML to be theInvestment Manager. The fee arrangements for these services and the feespayable are set out in note 3. UAML also received a fee of £188,000 for actingas promoter to the company (2010: £nil).
9. Commitments
At the year end, the Company had made no further commitments to invest.
10. Non-statutory accounts
These are not full accounts in terms of section 434 of the Companies Act 2006.The Annual Report for the year to 30 September 2011 will be sent toshareholders shortly and will then be available for inspection at One VineStreet, London W1J 0AH, the registered office of the Company. Copies of theAnnual Report will shortly be available on the Company Secretary's and theInvestment Manager's websites, details of which can be found at www.unicornaimvct.com. Statutory accounts will be delivered to the Registrar ofCompanies after the Annual General Meeting. The audited accounts for the yearended 30 September 2011 contain an unqualified audit report.
11. Annual general meeting
The Annual General Meeting of the Company will be held at 10.30 am on 7 January 2011 at One Vine Street, London W1J 0AH.
DISCLAIMER
Neither the contents of the Company's website nor the contents of any websiteaccessible from hyperlinks on the Company's website (or any other website) isincorporated into, or forms part of, this announcement.
Contact details for further enquiries:
Chris Hutchinson of Unicorn Asset Management Limited (the Investment Manager), on 020 7253 0889.
Rob Brittain of Matrix-Securities Limited (the Company Secretary) on 020 3206 7000 or by e-mail on [email protected].
ENDS
XLONRelated Shares:
Unicorn Asset Management