Half Yearly Report

TP10 VCT plc

Interim Results

The directors of TP10 VCT plc are pleased to announce its Interim results for the six months to 31 August 2014.

For further information please contact Triple Point Investment Management LLP on 020 7201 8989. The Interim report will be available in full at www.triplepoint.co.uk

Financial Summary

TP10 VCT plc ("the Company") is a Venture Capital Trust ("VCT"). The Investment Manager is Triple Point Investment Management LLP. The Company was launched in November 2009 and raised £28.6 million (net of expenses) through an offer for subscription which closed on 31 May 2010.

Chairman's Statement

I am writing to you to present the Unaudited Interim Financial Report for TP10 VCT plc ("the Company") for the 6 months ended 31 August 2014.

Investment Portfolio

The Company's funds are 99% invested in a portfolio of both VCT qualifying and non-qualifying unquoted investments.These investments were all selected for their ability to yield high quality, predictable cash flows.

Of the Company's overall portfolio, qualifying investments account for 84% of its net assets, thus maintaining its VCT qualifying status through satisfying the test of being at least 70% invested in VCT qualifying investments. The sector composition of the portfolio has remained stable for the period of this report, and the Investment Manager's report on pages 3 to 4 gives an update on the investments.

Dividend

We are pleased to report that on 25 July 2014 the Company paid its fourth dividend to shareholders of £997,237 equal to 3.31p per share. This takes the total paid by way of dividends to shareholders to 11.62p per share.

Net Asset Value

The Company made a profit of 0.46p per share for the period and as at 31 August 2014 the Net Asset Value ("NAV") per share stood at 84.20p per share. Taken together with the cumulative dividends of 11.62p per share paid this gives a NAV per share equivalent to 95.82p per share, a 6.19p per share increase from 31 August 2013.

Principal Risks

The Board believes that the principal risks facing the Company are:

· investment risk associated with the VCT's portfolio of unquoted investments;

· risk of failure to maintain approval as a qualifying VCT;

· risk of inability to realise investments in order to return funds to investors after the five year holding period.

The Board believes these risks are manageable and, with the Investment Manager, continues to work to minimise either the likelihood or potential impact of these risks within the scope of the Company's established investment strategy.

Outlook

In June next year, all of the Company's shareholders will have held their shares for the five years required in order to secure the upfront income tax relief. In line with the VCT's investment strategy, both your Board and Triple Point are planning to return funds to shareholders as soon as practical after this point. We will provide you with an update on the Company's realisation proposals in our next report to you with the audited Financial Statements, which we expect to publish next May.

If you have any questions or comments, please do not hesitate to telephone Triple Point Investment Management LLP on 020 7201 8989.

Robin Morrison

Chairman

16 October 2014

Investment Manager's Review

The Company continues to maintain a stable portfolio of qualifying investments, which as at 31 August 2014 represented 84% of net assets, ensuring that the Company continues to satisfy the requirement to be 70% invested in qualifying investments.

The VCT was established to fund small and medium sized enterprises and the overall portfolio now comprises investments in 23 small, unquoted companies which operate in four sectors: cinema digitisation; hydro project management; renewable electricity generation from solar PV, anaerobic digestion and landfill gas; and SME lending.

Each of these investments meets Triple Point's investment criteria, with projected revenues generated by businesses with good quality customers and the potential for steady returns. Investments in each sector have been made with the benefit of rigorous selection criteria, including extensive due diligence and expert technical assessment and are subject to continuous stringent review.

Sector Analysis

The unquoted investment portfolio can be analysed as follows:

VCT Sector Review

Cinema Digitisation

TP10's portfolio of cinema digitisation businesses continues to perform as intended, with the companies benefitting from regular and reliable revenues from their operations in the UK, Germany, Italy and Ireland. The majority of these revenues come from the six major investment grade Hollywood Studios under the globally recognised Virtual Print Fee model, through which film studios pay fees to book films on digital projection equipment in recognition of the cost benefits it brings them. These include a reduction in shipping costs and a reduction in piracy from tighter controls on distribution. For the cinemas some of the advantages include flexible scheduling and the ability to show alternative content such as opera and sport.  

Hydro Project Management

Highland Hydro Services Limited ("HHS") manages the planning and environmental impact studies for a portfolio of new small scale hydro electric power installations in the Scottish Highlands. All nine of the initial applications went according to plan and received planning consent. The return from each project is dependent on concluding sales and HHS is now in the process of selling the first five sites for development, with the remainder of the sales expected to complete this year.

Solar PV

The portfolio includes investments in 13 businesses in the solar PV sector which generate renewable electricity from residential solar PV panels. Over the last six months these businesses have continued to deliver results in line with expectations, generating revenues for the Company. All of these businesses derive their income from the receipt of index-linked Feed-in Tariffs (FiTs). Our portfolio monitoring team continues to work closely with these companies to ensure the effective running of their operations.

Anaerobic Digestion

In April 2012 the Company made investments into two renewable energy businesses; GreenTec Energy Ltd and Katharos Organic Ltd. Each operates a 1 MW on-farm anaerobic digestion plant, which generates green electricity attracting both Feed-in Tariffs and power export revenues. FITs provide for a long term RPI-linked revenue stream, consistent with the objectives of the Company. The good 2014 season maize harvest should enable the plants to continue to operate in line with expectations.

Landfill Gas

The portfolio also includes holdings in two small businesses Craigahulliar Energy Ltd and Aeris Power Ltd; each generates renewable electricity from landfill gas at sites owned respectively by local councils and a large waste management company in Northern Ireland. Both businesses generate electricity for export to the National Grid, earning long term, reliable cash flows through the sale of electricity to a utility company and potentially to the site owners, and through the sale of the Renewables Obligation Certificates.

SME Lending

The Company has a £3.9 million investment in Broadpoint Limited, a finance company which provides short and medium term funding to businesses in the telecoms, finance, cinema and renewable energy sectors.

Outlook

We continue to work closely with the management teams of all the portfolio businesses to ensure that they continue to meet the investment strategy for the VCT and shareholders' objectives.

In June next year all shareholders will have held their shares for the five years required in order to secure the upfront Income Tax relief associated with their investment in the VCT. Consequently, looking ahead to this date, we will be working with the portfolio of companies in order to realise the VCT's investments so that funds can be returned to shareholders as soon as is practical after this date.

If you have any questions, please do not hesitate to call us on 020 7201 8989.

Claire Ainsworth

Managing Partner

for Triple Point Investment Management LLP

16 October 2014

Investment Portfolio

Directors' Responsibility Statement

The Directors have elected to prepare the Interim Financial Report for the Company in accordance with International Financial Reporting Standards ("IFRS").

In preparing the Interim Financial Report for the 6 month period to 31 August 2014, the Directors confirm that to the best of their knowledge:

a) the Interim Financial Report has been prepared in accordance with International Accounting Standard IAS34, "Interim Financial Reporting" issued by the International Accounting Standards Board;

b) the Interim Financial Report includes a fair review of important events during the period and their effect on the Financial Statements and a description of principal risks and uncertainties for the remainder of the accounting period;

c) the Interim Financial Report gives a true and fair view in accordance with IFRS of the assets, liabilities, financial position and of the results of the Company for the period and complies with IFRS and the Companies Act 2006;

d) the Interim Financial Report includes a fair review of related party transactions and changes therein. There are no related party transactions; and

e) The Directors believe that the Company has sufficient financial resources to manage its business risks in the current uncertain economic outlook.

The Directors have reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the Financial Statements.

This Interim Financial Report has not been audited or reviewed by the auditors.

Robin Morrison

Chairman

16 October 2014

Statement of Comprehensive Income

The total column of this statement is the Statement of Comprehensive Income of the Company prepared in accordance with International Financial Reporting Standards (IFRS). The supplementary revenue return and capital columns have been prepared in accordance with the Association of Investment Companies Statement of Recommended Practice (AIC SORP).

All revenue and capital items in the above statement derive from continuing operations. This Statement of Comprehensive Income includes all recognised gains and losses.

The accompanying notes are an integral part of these statements.

Balance Sheet

The accompanying notes are an integral part of this statement.

Statement of Changes in Shareholders' Equity

The capital reserve represents the proportion of Investment Management fees charged against capital and realised/unrealised gains or losses on the disposal/revaluation of investments. The capital reserve is not distributable. The special distributable reserve was created on court cancellation of the share premium account. The revenue and special distributable reserves are distributable by way of dividend.

The accompanying notes are an integral part of this statement.

Statement of Cash Flows

Notes to the Unaudited Interim Financial Report

1. Corporate information

The Unaudited Interim Financial Report of the Company for the six months ended 31 August 2014 was authorised for issue in accordance with a resolution of the Directors on 16 October 2014.

The Company applied for listing on the London Stock Exchange on 29 January 2010.

TP10 VCT plc is incorporated and domiciled in Great Britain. The address of TP10 VCT plc's registered office, which is also its principal place of business, is 18 St. Swithin's Lane, London 4N 8AD.

TP10 VCT plc's Unaudited Interim Financial Report is presented in Pounds Sterling (£) which is also the functional currency of the Company, rounded to the nearest thousand.

The financial information set out in this report does not constitute statutory accounts as defined in S434 of the Companies Act 2006.

The principal activity of the Company is investment. The Company's investment strategy is to offer combined exposure to cash or cash based funds and venture capital investments focused on companies with contractual revenues from financially secure counterparties.

2. Basis of preparation and accounting policies

Basis of preparation

The Unaudited Interim Financial Report of the Company for the 6 months ended 31 August 2014 has been prepared in accordance with IAS 34: 'Interim Financial Reporting'. It does not include all of the information required for full Financial Statements and should be read in conjunction with the Financial Statements for the year ended 28 February 2014.

Estimates

The preparation of the Unaudited Interim Financial Report requires management to make judgements, estimates and assumptions that reflect the application of accounting policies and the reported amounts of assets and liabilities, income and expenditure. However, actual results may differ from these estimates.

3. Segmental reporting

The Company only has one class of business, being investment activity. All revenues and assets are generated and held in the UK.

4. Investment income

5. Investment management fees

Triple Point Investment Management LLP provides investment management and administration services to the Company under an Investment Management Agreement effective 29 January 2010. The agreement provides for an administration and investment management fee of 2.50% per annum of net assets calculated and payable quarterly in arrear and runs for a period of 5 years and may be terminated at any time thereafter by not less than twelve months' notice given by either party. Should notice of termination be given, the Investment Manager would perform its duties under the Investment Management Agreement and receive its management fee during the notice period.

6. Directors' remuneration

7. Taxation

Capital gains and losses are exempt from corporation tax due to the Company's status as a Venture Capital Trust.

8. Earnings per share

The earnings per share is based on a profit from ordinary activities after tax of £136,000 and on the weighted average number of shares in issue during the period of 30,128,014

9. Cash and cash equivalents

Cash and cash equivalents comprise deposits with The Royal Bank of Scotland plc.

10. Share capital

11. Net asset value per share

The calculation of net asset value per share is based on net assets of £25,366,000 divided by the 30,128,014 shares in issue.

12. Commitments and contingencies

The Company has no contingent liabilities or commitments.

13. Relationship with Investment Manager

During the period, TPIM received £328,663 which has been expensed, for providing management and administrative services to the Company. At 31 August 2014 £165,024 was owing to TPIM.

14. Related party transactions

There have been no related party transactions during the period.

15 . Post balance sheet events

There were no post balance sheet events.

16. Dividend

On 25 July 2014 the Company paid a dividend of £997,237 equal to 3.31p per share.