Half-yearly Report

Investec Structured Products Calculus VCT plc Half Yearly Report for the six months ended 31 August 2013 INVESTMENT OBJECTIVE The Company's principal objectives for investors are to: - invest in a portfolio of Venture Capital Investments and StructuredProducts that will provide investment returns sufficient to allow the Companyto maximise annual dividends and pay an interim return either by way of aspecial dividend or cash offer for shares on or before an interim return date; - generate sufficient returns from a portfolio of Venture CapitalInvestments that will provide attractive long-term returns within a taxefficient vehicle beyond an interim return date; - review the appropriate level of dividends annually to take account ofinvestment returns achieved and future prospects; and - maintain VCT status to enable qualifying investors to retain their incometax relief of up to 30 per cent. on the initial investment and receivetax-free dividends and capital growth. FINANCIAL REVIEW Ordinary Share Fund 6 Months to 6 Months to 12 Months to 31 August 31 August 28 February 2013 2012 2013 Total return £46,000 £27,000 £309,000Total return per ordinary share 1.0p 0.6p 6.5p RevenueNet profit/(loss) after tax £8,000 (£27,000) (£46,000)Revenue return per ordinaryshare 0.2p (0.6)p (1.0)p As at As at As at 31 August 31 August 28 February 2013 2012 2013Assets (investments valued atbid market prices)Net assets £4,359,000 £4,280,000 £4,562,000Net asset value ("NAV") perordinary share 92.0p 90.3p 96.3p Mid market quotationOrdinary shares 87.5p 92.5p 92.5p(Discount)/premium to NAV (4.9)% 2.4% (3.9)% C Share Fund 6 Months to 6 Months to 12 Months to 31 August 31 August 28 February 2013 2012 2013 Total return £45,000 (£1,000) £104,000Total return per C share 2.3p (0.1)p 5.4p RevenueNet loss after tax (£13,000) (£18,000) (£35,000)Revenue return per C share (0.7)p (1.0)p (1.8)p As at As at As at 31 August 31 August 28 February 2013 2012 2013 Assets (investments valued atbid market prices)Net assets £1,763,000 £1,700,000 £1,805,000NAV per C share 91.3p 88.0p 93.5p Mid market quotationC shares 90.0p 90.0p 90.0p(Discount)/premium to NAV (1.4)% 2.3% (3.7)% INTERIM MANAGEMENT REPORT Performance Summary The net asset value per ordinary share was 92.0 pence as at 31 August 2013 comparedto 96.3 pence as at 28 February 2013. The major part of this movement is attributableto the dividend of 5.25 pence per ordinary share paid in July 2013. This dividendpayment took cumulative dividends paid on the ordinary shares since inception to 15.75pence, bringing the total return per ordinary share to 107.8 pence. The net asset value per C share was 91.3 pence as at 31 August 2013 compared to 93.5pence as at 28 February 2013. A dividend of 4.5 pence per C share was paid in July 2013.This dividend payment took cumulative dividends paid on the C shares since inception to9.0 pence, bringing the total return per C share to 100.3 pence. We are encouraged by the Company's performance to date and believe the portfolio is wellpositioned to make further progress in the second half of the year. Venture Capital Investments Portfolio developments Calculus Capital Limited manages the Company's portfolio of Qualifying Investments. Ingeneral, we prefer to take stakes of sufficient size to enable us to play a moreinfluential role in helping the companies develop. Investments may be by way of loanstock and/or preference shares as well as equity. This provides income for the Companyto help pay regular dividends and provides a measure of risk mitigation. The Ordinary Share Fund and the C Share Fund are managed separately although they bothhave the same investment remit and, therefore, both have very similar portfolios. As at31 August 2013, the Company held 14 Qualifying Investments and 9 Qualifying Investmentson behalf of the Ordinary Share Fund and the C Share Fund respectively. Terrain Energy Limited ("Terrain") (Ordinary and C Share Funds) In July, Terrain redeemed the loan stock held by the Ordinary Share Fund. Terrain continuesto make good progress. In January 2013, Terrain appointed Steve Jenkins as non-executivechairman. Steve has extensive exploration and production experience, having been CEOof Nautical Petroleum. Terrain's current licence portfolio comprises interests in sevenlicences onshore in the UK, comprising a combination of production and exploration interests.In August 2013, Terrain purchased a 20 per cent. interest in the Brockham oil field nearDorking in Surrey. Brockham is currently producing 45 bpd (barrels per day) gross whichthey are hoping to increase to 60 bpd following some upgrades to the site. Terrain alsohas a 10 per cent. interest in the Larne-Lough Neagh Basin (PL1/10) with combined unriskedP50 prospective resources, net to Terrain, of 45 million barrels. Following a £4.5 millionfundraising in August, Terrain intends to acquire interests in additional licences over thenext 18 months. Lime Technology Limited ("Lime") (Ordinary Share Fund) Lime was established in 2002 and provides low carbon building products to the constructionindustry. The business comprises three parts: Lime Mortars, which are most appropriate tothe renovation and preservation of older buildings; Lime Building Systems, which are thezero carbon panels used in Marks and Spencer's new superstore at Cheshire Oaks and theScience Museum's large object archives at Wroughton, near Swindon; and a hemp, linseed andrape processing facility. Lime's products have been featured on Channel 4 (Kevin McCloud'sGrand Designs), the Discovery Channel and Al Jazeera Television. The group is going througha turnaround phase with a new management team, product lines and direction. Whilst thebuilding products industry remains depressed, the 'green' sector is showing strong growth. MicroEnergy Generation Services Limited ("MicroEnergy") (Ordinary Share Fund) MicroEnergy owns and operates a fleet of small onshore wind turbines (less than 5kW). As at31 August 2013, 153 turbines had been installed on farm land in East Anglia and Yorkshire.The portfolio will provide MicroEnergy with sufficient scale to mitigate against concernsof poor short-term performance at any particular site. Revenues from the fleet of installedturbines come from two sources, both of which are inflation protected, being directly linkedto RPI. Firstly, there is the Government backed feed-in tariff ("FIT") paid by the electricitysuppliers for every kilowatt of electricity generated for 20 years. Secondly, there is an exporttariff for any surplus electricity not used by the site owner that is exported to the grid. The Company has 5.1 per cent. of the equity in MicroEnergy. Other funds managed by CalculusCapital have invested in MicroEnergy and have combined voting rights of 5.8 per cent. AnTech Limited ("AnTech") (Ordinary Share Fund) Exeter-based AnTech Limited is a long-established oil services company. Founded in 1994,AnTech has developed a new generation of directional drilling tools, primarily for use inwells drilled using coiled tubing. Coiled tubing drilling provides a lower cost approach todrilling shallower wells. Whilst the primary initial market for AnTech's expansion will beNorth America, the company has also received interest from the other major oil-producingregions, including Saudi Arabia, Eastern Europe, Russia, China, Malaysia and Australia. SaudiAramco Energy Ventures (the corporate venturing arm of Saudi Aramco), the world's largest oilcompany by production and reserves, invested alongside the Company and other funds managedby Calculus Capital. Dryden Human Capital Group ("Dryden") (Ordinary Share Fund) Dryden is a global professional services recruitment and executive search group and itsfirst business commenced operations in 1996. Headquartered in the UK, it specialises in theactuarial, insurance and compliance recruitment sectors and operates out of London, Zurich,Mumbai,Shanghai, Hong Kong, Sydney and New York. In April 2012, the group appointed a newCEO with extensive experience in the recruitment industry and the Asia Pacific markets.Dryden has also invested in improved technical equipment across the business, providing agood platform for growth. Hampshire Cosmetics Limited ("Hampshire") (Ordinary Share Fund) Founded in the 1970s, Hampshire is an established company which develops and manufactures acomprehensive range of products covering fragrances, body treatments, skincare and shampoos.The business and trade and assets have been acquired by a management team that has previouslybeen backed by Calculus Capital in a successful investment. The business has performedwell in the first half of this calendar year, and management's focus on quality customerdelivery, profitability and cash flow is delivering positive results, with sales increasingand the company returning to profit. The outlook is positive for the remaining part of theyear. In addition, Hampshire has undertaken a strategic review of the market and has identifiedadditional opportunities for product diversification and margin improvement. Some of theidentified strategies will be implemented during the coming financial year. The Company has 4.6 per cent. of the equity in Hampshire. Brigantes Energy Limited ("Brigantes") (Ordinary Share Fund) Brigantes and Corfe Energy Limited (below) were originally set up to hold certain explorationinterests spun out of InfraStrata plc. Brigantes acquired a 45 per cent. interest inInfraStrata's licence PL1/10 at Larne, Northern Ireland. Brigantes plans to farm out apercentage to cover its costs in drilling a first exploration well, such that it will retaina 25 per cent. interest going forward. InfraStrata, as operator, recently released the resultsof a study of the prospects on PL1/10 which indicates the upside potential of the licence to beas much as 450 million barrels of recoverable oil (112.5 million barrels net to Brigantes afterthe farm out). Brigantes also has a 5 per cent. working interest in UK onshore licence PEDL 070which contains the producing Avington field. The field produces at an average rate of 60-70 bpd andBrigantes' share in the field has entitled it to 2,754 barrels since acquisition on 1 June 2011to 5 September 2013. The company participated at a 10 per cent. interest level in a Cairn-ledlicence application under the 27th Offshore Licensing Round in May. The result of this should beknown within the next few months. The Company has 3.3 per cent. of the equity in Brigantes. Other funds managed by Calculus Capitalhave invested in Brigantes and have combined voting rights of 25.6 per cent. Corfe Energy Limited ("Corfe") (Ordinary Share Fund) Corfe acquired an interest in certain InfraStrata assets applied for under the 26th OnshoreLicensing Round in the Dorset area. In relation to this, as part of the license award, Corfe hasbeen awarded a 12 per cent. interest in blocks 97/14, 97/15 and 98/11. Corfe also has a 5 per cent.working interest in UK onshore licence PEDL 070 which contains the producing Avington field. InFebruary, Corfe entered into an agreement with Egdon Resources and Celtique Energy under the termsof which Corfe will earn a 12.5 per cent. interest in UK onshore licence PEDL 201. Test drilling isplanned for later in 2013 and the estimate of reserves is up to 3.2 million barrels. In March 2013, Corfe entered into an agreement with Egdon Resources, Aurora and First Oil Exprounder which it acquired a 25 per cent. working interest in UK onshore licences PL090 (excluding theWaddock Cross development area in PL090) and PEDL 237, subject to the consent of the Department ofEnergy and Climate Change. The group intends to shoot a 3D seismic survey over the area. Theoperator's best estimate of potential resources in the main Sherwood prospect is 60 million barrelsof recoverable oil should drilling prove successful (7.5 million net to Corfe). Human Race Group Limited ("Human Race") (Ordinary and C Share Funds) Human Race owns and operates over 58 mass participation sporting events for over 100,000 participants.The portfolio of events includes the Windsor Triathlon, Cycletta, Wiggle Dragon Ride, Etape Cymru,and the Speedo Open Water Swimming Series. The group has had a successful year, with flagshipevents continuing to go from strength to strength and the financial performance to date is in linewith budget. Human Race is undertaking a strategic review of its events, with a focus on growingthe core profitable events. Near-term performance will likely be impacted by the strategic review,with the effect of delaying medium-term targets. The equity has been revalued accordingly. Human Racehas successfully maintained many existing sponsorship relationships and the outlook for newrelationships is positive. Secure Electrans Limited ("Secure") (Ordinary and C Share Funds) Secure was founded in 2000 and has developed internationally patented systems that provide solutionsto card payment fraud, a market place that is ready for high growth. Secure's systems providesolutions to card payment fraud for 'card not present' ("CNP") transactions. The adoption of chip andpin technology in retail environments has specifically reduced instore card fraud and Secure'ssolution takes chip and pin technology from the retail sector and applies it to internet-based CNPtransactions. Secure has developed an end-to-end payment and security infrastructure whichincorporates chip and pin and has received certification from leading industry bodies and participants. Tollan Energy Limited ("Tollan") (Ordinary Share Fund) Tollan has been set up to generate electricity from renewable micro-generation facilities. In February2013, Tollan entered into an agreement with Southern Energy Solutions Limited and PD Advice & ServicesLimited (collectively, the Developer) to acquire a portfolio of installed solar PV panels. The solarphotovoltaic generating capacity, which will be installed on residential and potentially commercialroofs in Northern Ireland, will benefit from Northern Ireland Renewable Obligation Certificates("NIROC"s). Tollan's revenues will come from two sources both of which are inflation protected,being directly linked to RPI. Firstly, there is the Government backed NIROC for every unit ofelectricity generated. Under the current NIROC regime, solar installations of less than 50kW per sitereceive 4 NIROCs per megawatt of electricity generated indexed for 20 years. Secondly, there is theexport tariff for any surplus electricity not used by the homeowner that is exported to the grid. The Company has 6.4 per cent. of the equity in Tollan. Venn Life Sciences Holdings plc ("Venn") (Ordinary and C Share Funds) Venn is a Clinical Research Organisation ("CRO") with operations in France, the Netherlands, Irelandand a branch office in Switzerland. Venn's near term objective is the consolidation of a number ofsmall European CROs to build a mid-sized CRO focused on the European market, offering clients a fullservice, multi-centred capability in Phase II-IV trials across a range of principal disease areas. The Company has 3.4 per cent. of the equity in Venn. Other funds managed by Calculus Capital haveinvested in Venn and have combined voting rights of 9.1 per cent. Metropolitan Safe Custody Limited ("Metropolitan") (Ordinary and C Share Funds) Metropolitan provides safe custody services in central London to around 4,500 customers. Metropolitancurrently runs two safe custody sites, one in Knightsbridge, the other in St. John's Wood. Theseprofitable, stable businesses serve around 4,500 customers providing access to the vaults sevendays a week. In June 2012, Metropolitan purchased the trade and certain assets of London SafeDeposit ("LSD"). LSD, one of the oldest providers in Central London, closed due to the redevelopmentof its site. The Company has 3.2 per cent. of the equity in Metropolitan. Other funds managed by Calculus Capitalhave invested in Metropolitan and have combined voting rights of 38.9 per cent. New Holdings Scancell Holdings plc ("Scancell") (C Share Fund) In August 2013, the Company invested £100,000 on behalf of the C Share Fund in Scancell, a developerof novel therapeutic vaccines for the treatment of cancer and infectious diseases. Scancell wasfounded in 1997 by Professor Lindy Durrant and IPO'd on AIM in July 2010. Scancell's vaccines arebased on its proprietary ImmunoBody and Moditope technology 'platforms'. Scancell's first vaccine,which is in phase 2 clinical trials, is for the treatment of melanoma. Scancell's scientific platformis also applicable to the delivery of other therapeutic vaccines which is likely to lead to licensingdeals with other pharmaceutical companies. Pico's Limited (trading as "Benito's Hat") (C Share Fund) In May 2013, the Company invested £50,000 in Benito's Hat on behalf of the C Share Fund. Benito's Hatis a Mexican-themed fast casual restaurant business with plans to expand in central London. Offeringtailor-made burritos, tacos, soups and salads, Benito's Hat is a restaurant brand centred on anauthentic experience and high-quality food, at an affordable price point. The brand has a devotedcustomer following and has won many accolades from food critics. Benito's Hat launched its first sitein the West End of London in 2008 and has since opened three further sites in Covent Garden,Oxford Circus and King's Cross. Benito's Hat will use the investment received in May 2013 to fundthe roll-out of restaurant openings to reach new customers across London and the UK. A fifth siteis due to open in Farringdon in October 2013, with others in the pipeline. Horizon Discovery Limited ("Horizon") (C Share Fund) Also in May 2013, the Company invested £50,000 in Horizon on behalf of the C Share Fund. Founded in2007, Cambridge-based Horizon is a translational genomics company developing and supplyingpatient-relevant drug discovery and diagnostic research tools. Horizon has developed GENESIS™, aproprietary genome-editing platform, as well as a range of Genomic Reference Standards ("Reagents")which are standardised synthetic DNA extractions from tumour biopsies. It is in the process ofdeveloping genomic cell-based testing kits ("Cell Line Kits"), which can be used by clients toperform medical testing on certain genomic cell lines. Developments since the period end There have not been any significant developments in the venture capital portfolio since the periodend. Structured Products Portfolio A significant proportion of the portfolio of Structured Products have now reached full term andthere has been little change over the past six months in the portfolio. The small Abbey StructuredProduct holding in the Ordinary Share Fund was sold on 21 June 2013 at 119 per cent., resultingin a return of £9,500 on the original £50,000 investment. This product was sold early to releasecash flow to purchase Qualifying Investments and to cover expenses. The continuing strong performance of the FTSE 100 has supported valuations in the StructuredProducts portfolio, and the FTSE 100 has increased to sit comfortably above all of the product'sstrike levels. As at 30 August 2013 the FTSE 100 was 6,412.93. Over the past three months, swap rateshave increased very slightly along with market volatility, though still low when looking at mid-termhighs. Values of the Structured Product portfolio look strong, with the highest strike value at5,341.93 in the Ordinary Share Fund and 5,584.51 in the C Share Fund. No new investments were made in Structured Products during the period. The Structured Products will achieve their target return subject to the Final Index Level of theFTSE 100 being higher than the Initial Index Level. The capital is at risk on a one-for-one basis("CAR") if the FTSE 100 Index falls more than 50 per cent. at any time during the investment termand fails to fully recover at maturity such that the Final Index Level is below the Initial IndexLevel. As at 30 August 2013, the following investments had been made in Structured Products: Ordinary Share Fund Structured Products Portfolio as at 31 August 2013 FTSE 100 Price Initial as at Index Notional Purchase 31 August Maturity Return/CapitalIssuer Strike Date Level Investment Price 2013 Date at Risk ("CAR") 162.5% if FTSE 100*The Royal higher; CAR if FTSEBanks of 100 falls more thanScotland plc 05/05/2010 5,341.93 £275,000 £0.96 £1.4474 12/05/2015 50% 185% if FTSE 100* higher; CAR if FTSEInvestec 100 falls more thanBank plc 14/05/2010 5,262.85 £500,000 £0.98 £1.5210 19/11/2015 50% Abbey 185% if FTSE 100*National higher; CAR if FTSETreasury 100 falls more thanServices 25/05/2010 4,940.68 £350,000 £0.99 £1.6255 18/11/2015 50% Matured/Sold FTSE 100 Initial Level Price at Maturity at Notional Purchase Maturity/ Date/ Return CapitalIssuer Strike Date Maturity Investment Price Sale Date Sold at Risk ("CAR") 125.1% if FTSE 100* higher; CAR if FTSE 100HSBC Bank Returned falls more thanplc 01/07/2010 4,805.75 £500,000 £1.00 £1.2510 06/07/2012 50% AutocallableThe Royal 10.5% p.a.; CARBank of if FTSE 100*Scotland Returned falls more thanplc 18/03/2011 5,718.13 £50,000 £1.00 £1.1050 19/03/2012 50% 137% if FTSE 100* higher; CAR if FTSE 100Nomura Bank Sold at falls more thanInternational**28/05/2010 5,188.43 £350,000 £0.98 £1.2625 30/03/2012 50% 134% if FTSE 100* higher; CAR if FTSE 100Morgan Stanley Sold at falls more thanInternational 10/06/2010 5,132.50 £500,000 £1.00 £1.3224 31/10/2012 50% 126% if FTSE 100* higher;Abbey National CAR if FTSE 100Treasury Sold at falls more thanServices 03/08/2011 5,584.51 £50,000 £1.00 £1.1900 21/06/2013 50% The total current valuation of the amount invested in Structured Products in the Ordinary Share Fundas at 31 August 2013 was £1,727,440. C Share Fund Structured Products Portfolio as at 31 August 2013 FTSE 100 Price as Initial at 31 Index Notional Purchase August Maturity Return/Capital atIssuer Strike Date Level Investment Price 2013 Date Risk ("CAR") 182% if FTSE 100* higher; CAR if FTSEInvestec Bank 100 falls more thanplc 05/08/2011 5,246.99 £328,000 £1.00 £1.4044 10/03/2017 50% 126% if FTSE 100*Abbey National higher; CAR if FTSETreasury 100 falls more thanServices 03/08/2011 5,584.51 £200,000 £1.00 £1.2289 05/02/2014 50% Matured/Sold FTSE 100 Initial Index Price at Maturity Level at Notional Purchase Maturity/ Date/ Return/CapitalIssuer Strike Date Maturity Investment Price Sale Date Sold at Risk ("CAR") Autocallable 10.5% p.a.; CARThe Royal Bank if FTSE 100*of Scotland Returned falls more thanplc 18/03/2011 5,718.13 £200,000 £1.00 £1.1050 19/03/2012 50% 137% if FTSE 100* higher; CAR if FTSE 100Nomura Bank Returned falls more thanInternational 28/05/2010 5,188.43 £350,000 £1.2625 £1.3700 20/02/2013 50% The total current valuation of the amount invested in Structured Products in the C Share Fund as at31 August 2013 was £706,435. * The Final Index Level is calculated using 'averaging', meaning that the average of the closing levelsof the FTSE 100 is taken on each Business Day over the last 2-6 months of the Structured Product plan term(the length of the averaging period differs for each plan). The use of averaging to calculate the returncan reduce adverse effects of a falling market or sudden market falls shortly before maturity. Equally,it can reduce the benefits of an increasing market or sudden market rises shortly before maturity. ** The Nomura Structured Product was sold prior to maturity with a return on initial investment of 28.8 percent. This was sold to the C Share Fund. Calculus Capital Limited Investec Structured Products29 October 2013 29 October 2013 INVESTMENT PORTFOLIO AS AT 31 AUGUST 2013- ORDINARY SHARE FUND % of Net Assets Structured Products 40%Unquoted - loan stock 28%Unquoted - ordinary and preferenceshares 32%Unquoted - liquidity funds 0%Net current assets 0% 100% Sector % of Portfolio Structured Products 40%Unquoted - Qualifying Investments 60%Unquoted - other non-QualifyingInvestments 0% 100% Nature of Book Cost Valuation % of Net % ofCompany Business £'000 £'000 Assets Portfolio Structured ProductsInvestec Bank plc Banking 490 760 18% 18%Abbey National TreasuryServices Banking 346 569 13% 13%The Royal Bank ofScotland plc Banking 264 398 9% 9% Total Structured 1,100 1,727 40% 40%Products Qualifying InvestmentsTollan Energy Limited Energy 360 360 8% 8%Human Race Group Limited Leisure 300 300 7% 7%MicroEnergy GenerationServices Limited Energy 300 300 7% 7%AnTech Limited Oil Services 270 270 6% 6%Lime Technology Limited Construction 307 258 6% 6%Hampshire CosmeticsLimited Cosmetics 250 250 6% 6%Metropolitan SafeCustody Limited Safe depositary services 190 226 5% 5%Brigantes Energy Limited Oil and gas exploration and production 125 140 3% 3%Terrain Energy Limited Onshore oil and gas production 100 113 3% 3%Secure Electrans Limited E-commerce security 112 112 3% 3%Venn Life Sciences ClinicalHoldings plc research 120 100 2% 2%Dryden Human Capital HumanGroup Limited resources 100 100 2% 2%Corfe Energy Limited Oil and gas exploration and production 75 96 2% 2%Heritage House Limited Publishing and media services 127 - - - Total QualifyingInvestments 2,736 2,625 60% 60% Other non-QualifyingInvestments Fidelity Liquidity Fund Liquidity fund 1 1 - -Scottish Widows LiquidityLiquidity Fund fund 1 1 - - Total Othernon-QualifyingInvestments 2 2 - - Total Investments 3,838 4,354 100% 100% Net Current Assets lessCreditors due after oneyear 5 - Net Assets 4,359 100% INVESTMENT PORTFOLIO AS AT 31 AUGUST 2013- C SHARE FUND % of Net Assets Structured Products 40%Unquoted - loan stock 12%Unquoted - ordinary and preferenceshares 30%Unquoted - liquidity funds 6%Net current assets 12% 100%Sector % of Portfolio Structured Products 45%Unquoted - Qualifying Investments 48%Unquoted - other non-QualifyingInvestments 7% 100% Nature of Book Cost Valuation % of Net % ofCompany Business £'000 £'000 Assets Portfolio Structured ProductsInvestec Bank plc Banking 328 461 26% 29%Abbey National Banking 200 246 14% 16%Treasury Services Total Structured 528 707 40% 45%Products QualifyingInvestmentsHuman Race Group Leisure 150 150 8% 10%LimitedScancell Holdings Biotech 100 149 8% 10%PlcMetropolitan Safe Safe depository 90 106 6% 7%Custody Limited servicesTerrain Energy Onshore oil and 95 97 6% 6%Limited gas productionSecure Electrans E-commerce 75 75 4% 5%Limited securityVenn Life Sciences Clinical researchHoldings plc 80 66 4% 4%Horizon Discovery BiotechnologyLimited 50 50 3% 3%Pico's Limited Leisure 50 50 3% 3%Heritage House Publishing andLimited media services 64 - - - Total QualifyingInvestments 754 743 42% 48% Other non-QualifyingInvestmentsFidelity Liquidity Liquidity fund 102 102 6% 7%FundScottish Widows Liquidity fund 1 1 - -Liquidity Fund Total Othernon-QualifyingInvestments 103 103 6% 7% Total Investments 1,385 1,553 88% 100% Net Current Assetsless Creditors dueafter one year 210 12% Net Assets 1,763 100% PRINCIPAL RISKS The principal risks facing the Company are substantially unchanged since the date of theAnnual Report and Accounts for the year ended 28 February 2013 and continue to be as set out inthat report. Risks faced by the Company include, but are not limited to, loss of approval as a venturecapital trust and other regulatory breaches, risks of making Venture Capital Investments, risksattaching to investment in Structured Products, liquidity/marketability risk, changes inlegislation/taxation, engagement of third party advisers, C shares versus ordinary shares, marketprice risk and credit risk. DIRECTORS' RESPONSIBILITY STATEMENT The Directors confirm that to the best of their knowledge: - the condensed set of financial statements has been prepared in accordance with the Statement onHalf Yearly Financial Reports issued by the UK Accounting Standards Board and gives a true and fairview of the assets,liabilities and financial position of the Company; and - this Half Yearly Financial Report includes a fair review of the information required by: a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication ofimportant events that have occurred during the first six months of thefinancial year and their impact on the condensed set of financial statements;and a description of the principal risks and uncertainties for the remainingsix months of the year; and b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related partytransactions that have taken place in the first six months of the currentfinancial year and that have materially affected the financial position orperformance of the Company during that period; and any changes in the relatedparty transactions described in the last Annual Report that could do so. This Half Yearly Financial Report was approved by the Board of Directors on 29October 2013 and the above responsibility statement was signed on its behalfby Michael O'Higgins, Chairman. CONDENSED INCOME STATEMENT FOR THE PERIOD FROM 1 MARCH 2013 TO 31 AUGUST 2013 (UNAUDITED) 6 Months Ended 6 Months Ended 12 Months Ended 31 August 2013 31 August 2012 28 February 2013* Revenue Capital Revenue Capital Revenue Capital Return Return Total Return Return Total Return Return Total Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Ordinary Share Fund Investment holdinggains/(losses) - 46 46 - (159) (159) - (3) (3)Gain on disposal ofinvestments - 10 10 - 230 230 - 391 391Income 69 - 69 32 - 32 71 - 71Investment management fee (6) (18) (24) (5) (17) (22) (11) (33) (44)Other operating expenses (55) - (55) (54) - (54) (106) - (106)Profit/(loss) onordinary activitiesbefore taxation 8 38 46 (27) 54 27 (46) 355 309Taxation on ordinaryactivities 3 - - - - - - - - - Profit/(loss)for the 8 38 46 (27) 54 27 (46) 355 309periodBasic and dilutedearnings perordinary share 2 0.2p 0.8p 1.0p (0.6)p 1.2p 0.6p (1.0)p 7.5p 6.5p 6 Months Ended 6 Months Ended 12 Months Ended 31 August 2013 31 August 2012 28 February 2013* Revenue Capital Revenue Capital Revenue Capital Return Return Total Return Return Total Return Return Total Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 C Share FundInvestment holdinggains/(losses) - 65 65 - (10) (10) - 80 80Gain on disposal ofinvestments - - - - 34 34 - 72 72Income 11 - 11 6 - 6 13 - 13Investment management fee (2) (7) (9) (2) (7) (9) (4) (13) (17)Other operating expenses (22) - (22) (22) - (22) (44) - (44) (Loss)/profit on ordinaryactivities before taxation (13) 58 45 (18) 17 (1) (35) 139 104 Taxation on ordinary 3 - - - - - - - - -activities (Loss)/profit for the (13) 58 45 (18) 17 (1) (35) 139 104period Basic and diluted earningsper C share 2 (0.7)p 3.0p 2.3p (1.0)p 0.9p (0.1)p (1.8)p 7.2p 5.4p * These figures are audited. The total columns of these statements represent the Income Statement of the Ordinary Share Fund and theC Share Fund. The supplementary revenue return and capital return columns are both prepared in accordance with theAssociation of Investment Companies ("AIC") Statement of Recommended Practice ("SORP"). 6 Months Ended 6 Months Ended 12 Months Ended 31 August 2013 31 August 2012 28 February 2013* Revenue Capital Revenue Capital Revenue Capital Return Return Total Return Return Total Return Return Total Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Total Investment holdinggains/(losses) - 111 111 - (169) (169) - 77 77Gain on disposal ofinvestments - 10 10 - 264 264 - 463 463Income 80 - 80 38 - 38 84 - 84Investment management fee (8) (25) (33) (7) (24) (31) (15) (46) (61)Other operating expenses (77) - (77) (76) - (76) (150) - (150) (Loss)/profit on ordinaryactivities before taxation (5) 96 91 (45) 71 26 (81) 494 413 Taxation on ordinary 3 - - - - - - - - -activities (Loss)/profit for the (5) 96 91 (45) 71 26 (81) 494 413period Basic and diluted earningsper ordinary share 2 0.2p 0.8p 1.0p (0.6)p 1.2p 0.6p (1.0)p 7.5p 6.5p Basic and diluted earningsper C share 2 (0.7)p 3.0p 2.3p (1.0)p 0.9p (0.1)p (1.8)p 7.2p 5.4p * These figures are audited. The total column of this statement represents the Company's Income Statement. The supplementary revenue return and capital return columns are both prepared in accordance with the AIC's SORP. No operations were acquired or discontinued during the period. All items in the above statements derive from continuing operations. There were no recognised gains or losses other than those passing through the Income Statement. The notes form an integral part of these Accounts. CONDENSED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDSFOR THE PERIOD FROM 1 MARCH 2013 TO 31 AUGUST 2013 (UNAUDITED) Capital Capital Share Special Reserve Reserve Revenue Capital Reserve Realised Unrealised Reserve Total £'000 £'000 £'000 £'000 £'000 £'000 Ordinary Share Fund For the 6 month period to 31 August 2013 1 March 2013 47 3,978 297 469 (229) 4,562Investment holding gains - - - 46 - 46Gain on disposal of investments - - 10 - - 10Management fee allocated to capital - - (18) - - (18)Revenue return on ordinaryactivities after tax - - - - 8 8Dividend paid (note 8) - (249) - - - (249) Closing balance 47 3,729 289 515 (221) 4,359 For the 6 month period to 31 August 2012 1 March 2012 47 4,226 (61) 472 (183) 4,501Change in accrual of IFA trailcommission - 1 - - - 1Investment holding losses - - - (159) - (159)Gain on disposal of investments - - 230 - - 230Management fee allocated to capital - - (17) - - (17)Revenue return on ordinaryactivities after tax - - - - (27) (27)Dividend paid - (249) - - - (249) 31 August 2012 47 3,978 152 313 (210) 4,280 For the 12 months ended 28 February2013*1 March 2012 47 4,226 (61) 472 (183) 4,501Change in accrual of IFA trailcommission - 1 - - - 1Investment holding losses - - - (3) - (3)Gain on disposal of investments - - 391 - - 391Management fee allocated to capital - - (33) - - (33)Revenue return on ordinary - - - - (46) (46)activities after taxDividend paid - (249) - - - (249) 28 February 2013 47 3,978 297 469 (229) 4,562 * These figures are audited. The notes form an integral part of these Accounts. Capital Capital Share Special Reserve Reserve Revenue Capital Reserve Realised Unrealised Reserve Total £'000 £'000 £'000 £'000 £'000 £'000C Share Fund For the 6 month period to 31 August 2013 1 March 2013 19 1,715 47 104 (80) 1,805Investment holding gains - - - 65 - 65Management fee allocated to capital - - (7) - - (7)Revenue return on ordinaryactivities after tax - - - - (13) (13)Dividend paid (note 8) - (87) - - - (87) Closing balance 19 1,628 40 169 (93) 1,763 For the 6 month period to 31 August 2012 1 March 2012 19 1,802 (12) 24 (45) 1,788Investment holding losses - - - (10) - (10)Gain on disposal of investments - - 34 - - 34Management fee allocated to capital - - (7) - - (7)Revenue return on ordinaryactivities after tax - - - - (18) (18)Dividend paid - (87) - - - (87) 31 August 2012 19 1,715 15 14 (63) 1,700 For the 12 months ended 28 February 2013 1 March 2012 19 1,802 (12) 24 (45) 1,788Investment holding gains - - - 80 - 80Gain on disposal of investments - - 72 - - 72Management fee allocated to capital - - (13) - - (13)Revenue return on ordinary - - - - (35) (35)activities after taxDividend paid - (87) - - - (87) 28 February 2013 19 1,715 47 104 (80) 1,805 Capital Capital Share Special Reserve Reserve Revenue Capital Reserve Realised Unrealised Reserve Total £'000 £'000 £'000 £'000 £'000 £'000 Total For the 6 month period to 31 August 2013 1 March 2013 66 5,693 344 573 (309) 6,367Investment holding gains - - - 111 - 111Gain on disposal of investments - - 10 - - 10Management fee allocated to capital - - (25) - - (25)Revenue return on ordinaryactivities after tax - - - - (5) (5)Dividend paid (note 8) - (336) - - - (336) Closing balance 66 5,357 329 684 (314) 6,122 For the 6 month period to 31 August 2012 1 March 2012 66 6,028 (73) 496 (228) 6,289Change in accrual of IFA trailcommission - 1 - - - 1Investment holding losses - - - (169) - (169)Gain on disposal of investments - - 264 - - 264Management fee allocated to capital - - (24) - - (24)Revenue return on ordinaryactivities after tax - - - - (45) (45)Dividend paid - (336) - - - (336) 31 August 2012 66 5,693 167 327 (273) 5,980 For the 12 months ended 28 February 2013* 1 March 2012 66 6,028 (73) 496 (228) 6,289Change in accrual of IFA trail - 1 - - - 1commissionInvestment holding gains - - - 77 - 77Gain on disposal of investments - - 463 - - 463Management fee allocated to capital - - (46) - - (46)Revenue return on ordinary - - - - (81) (81)activities after taxDividend paid - (336) - - - (336) 28 February 2013 66 5,693 344 573 (309) 6,367 * These figures are audited. The notes form an integral part of these Accounts. CONDENSED BALANCE SHEETAS AT 31 AUGUST 2013 (UNAUDITED) 31 August 2013 31 August 2012 28 February 2013* Note £'000 £'000 £'000 Ordinary Share Fund Fixed assetsInvestments 4 4,354 3,983 4,545 Current assetsDebtors 79 155 110Cash at bank and on deposit 14 221 4 93 376 114 Creditors: amounts falling duewithin one yearCreditors (80) (67) (87) Net current assets 13 309 27 Non-current liabilitiesIFA trail commission (8) (12) (10) Total net assets 4,359 4,280 4,562 Capital and reservesCalled-up share capital 7 47 47 47Special reserve 3,729 3,978 3,978Capital reserve - realised 289 152 297Capital reserve - unrealised 515 313 469Revenue reserve (221) (210) (229) Total shareholders' funds 4,359 4,280 4,562 Net asset value per ordinary share- basic 5 92.0p 90.3p 96.3p* These figures are audited. The notes form an integral part of these Accounts. 31 August 2013 31 August 2012 28 February 2013* Note £'000 £'000 £'000 C Share Fund Fixed assetsInvestments 4 1,553 1,626 1,258 Current assetsDebtors 16 73 35Cash at bank and on deposit 226 60 556 242 133 591 Creditors: amounts falling duewithin one yearCreditors (26) (50) (36) Net current assets 216 83 555 Non-current liabilitiesIFA trail commission (6) (9) (8) Total net assets 1,763 1,700 1,805 Capital and reservesCalled-up share capital 7 19 19 19Special reserve 1,628 1,715 1,715Capital reserve - realised 40 15 47Capital reserve - unrealised 169 14 104Revenue reserve (93) (63) (80) Total shareholders' funds 1,763 1,700 1,805 Net asset value per C share - basic 5 91.3p 88.0p 93.5p * These figures are audited. The notes form an integral part of these Accounts. 31 August 2013 31 August 2012 28 February 2013* Note £'000 £'000 £'000 Total Fixed assetsInvestments 4 5,907 5,609 5,803 Current assetsDebtors 95 228 145Cash at bank and on deposit 240 281 560 335 509 705 Creditors: amounts falling duewithin one yearCreditors (106) (117) (123) Net current assets 229 392 582 Non-current liabilitiesIFA trail commission (14) (21) (18) Total net assets 6,122 5,980 6,367 Capital and reservesCalled-up share capital 7 66 66 66Special reserve 5,357 5,693 5,693Capital reserve - realised 329 167 344Capital reserve - unrealised 684 327 573Revenue reserve (314) (273) (309) Total shareholders' funds 6,122 5,980 6,367 Net asset value per ordinary share 5 92.0p 90.3p 96.3p- basic Net asset value per C share - basic 5 91.3p 88.0p 93.5p * These figures are audited. The notes form an integral part of these Accounts. CONDENSED CASH FLOW STATEMENTFOR TO THE PERIOD FROM 1 MARCH 2013 TO 31 AUGUST 2013 (UNAUDITED) 6 Months 6 Months 12 Months Ended Ended Ended 31 August 31 August 28 February 2013 2012 2013* Note £'000 £'000 £'000 Ordinary Share Fund Operating activitiesInvestment income received 65 36 56Deposit interest received - - 2Investment management fees (23) (22) (22)Other cash payments (26) (95) (85) Cash flow from operations 6 16 (81) (49) Cash flow from investing activitiesPurchase of investments (12) (600) (1,700)Sale of investments 260 1,123 1,978 Net cash flow from investingactivities 248 523 278 Net cash flow before financing 264 442 229 Cash flow from financing activitiesExpenses of share issues (5) - (4) Net cash flow from financingactivities (5) - (4) Equity dividend paid 8 (249) (249) (249) Increase/(decrease) in cash at bankand on deposit 10 193 (24) 6 Months 6 Months 12 Months Ended Ended Ended 31 August 31 August 28 February 2013 2012 2013* Note £'000 £'000 £'000 C Share Fund Operating activitiesInvestment income received 12 3 8Deposit interest received 1 - -Investment management fees (17) (9) (9)Other cash payments (4) (40) (20) Cash flow from operations 6 (8) (46) (21) Cash flow from investing activitiesPurchase of investments (230) (642) (722)Sale of investments - 731 1,307 Net cash flow from investing (230) 89 585activities Net cash flow before financing (238) 43 564 Cash flow from financing activitiesExpenses of share issue (5) - (25) Net cash flow from financing (5) - (25)activities Equity dividend paid 8 (87) (87) (87) (Decrease)/increase in cash at bankand on deposit (330) (44) 452 6 Months 6 Months 12 Months Ended Ended Ended 31 August 31 August 28 February 2013 2012 2013* Note £'000 £'000 £'000 Total Operating activitiesInvestment income received 77 39 64Deposit interest received 1 - 2Investment management fees (40) (31) (31)Other cash payments (30) (135) (105) Cash flow from operations 6 8 (127) (70) Cash flow from investing activitiesPurchase of investments (242) (1,242) (2,422)Sale of investments 260 1,854 3,285 Net cash flow from investing 18 612 863activities Net cash flow before financing 26 485 793 Cash flow from financing activitiesExpenses of share issues (10) - (29) Net cash flow from financing (10) - (29)activities Equity dividend paid 8 (336) (336) (336) (Decrease)/increase in cash at bankand on deposit (320) 149 428 * These figures are audited. The notes form an integral part of these Accounts. CONDENSED NOTES TO THE ACCOUNTS 1. Nature of Financial Information Basis of accounting These Accounts have been prepared under the historical cost convention, except for thevaluation of financial assets at fair value through profit or loss, in accordance with UKGenerally Accepted Accounting Practice ("UK GAAP"). These Accounts cover the six month periodended 31 August 2013. In determining the analysis of total income and expenses as between capital return and revenuereturn, the Directors have followed the guidance contained in the AIC SORP, as revised in 2009,and on the assumption that the Company maintains VCT status. The Accounts are prepared on the basis of the accounting policies set out in the Annual Reportand Accounts for the year ended 28 February 2013. The financial information contained in this report does not constitute full statutory accounts asdefined in Section 434 of the Companies Act 2006. The financial information for the six monthperiod ended 31 August 2013 and the six month period ended 31 August 2012 has not been audited orreviewed by the Company's Auditors pursuant to the Auditing Practices Boardguidance on such reviews. The information for the year ended 28 February 2013 has been extracted from the latest publishedAnnual Report and Accounts, which have been filed with the Registrar of Companies. The report ofthe Auditors on those Accounts contained no qualification or statement under Section 498(2) or(3) of the Companies Act 2006. Going concern After making enquiries, and having reviewed the portfolio, balance sheet and projected income andexpenditure for the next twelve months, the Directors have a reasonable expectation that the Companyhas adequate resources to continue in operation for the foreseeable future. The Directors have thereforeadopted the going concern basis in preparing these Accounts. 2. Return per Share 6 Months Ended 6 Months Ended 12 Months Ended 31 August 2013 31 August 2012 28 February 2013 Revenue Capital Total Revenue Capital Total Revenue Capital Total pence pence pence pence pence pence pence pence pence Return per ordinary 0.2 0.8 1.0 (0.6) 1.2 0.6 (1.0) 7.5 6.5share Return per C share (0.7) 3.0 2.3 (1.0) 0.9 (0.1) (1.8) 7.2 5.4 Ordinary shares Revenue return per ordinary share is based on the net revenue gain on ordinary activities after taxationof £8,000 (31 August 2012: loss of £27,000; 28 February 2013: loss of £46,000) and on 4,738,463ordinary shares (31 August 2012: 4,738,463; 28 February 2013: 4,738,463), being the weighted average number ofordinary shares in issue during the period. Capital return per ordinary share is based on the net capital gain for the period of £38,000(31 August 2012: £54,000; 28 February 2013: £355,000) and on 4,738,463 ordinary shares(31 August 2012: 4,738,463; 28 February 2013: 4,738,463), being the weighted average number ofordinary shares in issue during the period. Total return per ordinary share is based on the net gain on ordinary activities for the period of£46,000 (31 August 2012: £27,000; 28 February 2013: £309,000) and on 4,738,463 ordinary shares(31 August 2012: 4,738,463; 28 February 2013: 4,738,463), being the weighted average number ofordinary shares in issue during the period. C shares Revenue return per C share is based on the net revenue loss on ordinary activities after taxationof £13,000 (31 August 2012: £18,000; 28 February 2013: £35,000) and on 1,931,095 C shares(31 August 2012: 1,931,095; 28 February 2013: 1,931,095), being the weighted average number ofC shares in issue during the period. Capital return per C share is based on the net capital gain for the period of £58,000(31 August 2012: £17,000; 28 February 2013: £139,000) and on 1,931,095 C shares(31 August 2012: 1,931,095; 28 February 2013: 1,931,095), being the weighted average number of C sharesin issue during the period. Total return per C share is based on the total gain for the period of £45,000(31 August 2012: loss of £1,000; 28 February 2013 £104,000) and on1,931,095 C shares (31 August 2012: 1,931,095; 28 February 2013: 1,931,095), being the weighted averagenumber of C shares in issue during the period. 3. Taxation on Ordinary Activities The estimated effective tax rate at the year end is 0 per cent. for both share funds. This remainsunchanged from the prior period. 4. Investments at Fair Value through Profit or Loss 31 August 31 August 28 February 2013 2012 2013 £'000 £'000 £'000 Ordinary Share Fund Investment portfolio summaryInvestments in Structured Products 1,727 2,118 1,734Unquoted investments 2,625 1,669 2,809Other investments 2 196 2 4,354 3,983 4,545 C Share Fund Investment portfolio summaryInvestments in Structured Products 707 1,045 687Unquoted investments 743 383 469Other investments 103 198 102 Total 1,553 1,626 1,258 Investment portfolio summaryInvestments in Structured Products 2,434 3,163 2,421Unquoted investments 3,368 2,052 3,278Other investments 105 394 104 5,907 5,609 5,803 5. Net Asset Value per Share 31 August 31 August 28 February 2013 2012 2013 pence pence pence Net asset value per ordinary share 92.0 90.3 96.3 Net asset value per C share 91.3 88.0 93.5 The basic net asset value per ordinary share is based on net assets(including current period revenue) of £4,359,000 (31 August 2012: £4,280,000;28 February 2013: £4,562,000) and on 4,738,463 ordinary shares (31 August2012: 4,738,463; 28 February 2013: 4,738,463), being the number of ordinaryshares in issue at the period end. The basic net asset value per C share is based on net assets of£1,763,000 (31 August 2012: £1,700,000; 28 February 2013: £1,805,000) and on1,931,095 C shares (31 August 2012: 1,931,095; 28 February 2013: 1,931,095),being the number of C shares in issue at the period end. 6. Reconciliation of Net Gain/(Loss) before Taxation to Cash Flow fromOperating Activities 31 August 31 August 28 February 2013 2012 2013 £'000 £'000 £'000 Ordinary Share Fund Gain on ordinary activities before 46 27 309taxationGain on investments (56) (71) (388)Decrease/(increase) in debtors 31 (36) 9(Decrease)/increase in creditors (5) (1) 21 Cash flow from operating activities 16 (81) (49) C Share Fund Gain/(loss) on ordinary activities 45 (1) 104before taxationGain on investments (65) (24) (152)Income reinvested - (1) -Decrease/(increase) in debtors 18 (22) 16(Decrease)/increase in creditors (6) 2 11 Cash flow from operating activities (8) (46) (21) Total Gain on ordinary activities before 91 26 413taxationGain on investments (121) (95) (540)Income reinvested - (1) -Decrease/(increase) in debtors 49 (58) 25(Decrease)/increase in creditors (11) 1 32 Cash flow from operating activities 8 (127) (70) 7. Called-up Share Capital 31 August 2013 Number £'000 Ordinary shares of 1p each 4,738,463 47C shares of 1p each 1,931,095 19 8. Dividends For the year to 28 February 2013 the Ordinary Share Fund declared a final dividend of 5.25pper ordinary share on 4,738,463 shares amounting to £248,769. The dividend was paid on24 July 2013 to ordinary shareholders on the register at 31 May 2013. For the year to 28 February 2013 the C Share Fund declared a final dividend of 4.5p per C share on1,931,095 shares amounting to £86,899. The dividend was paid on 24 July 2013 to C shareholders onthe register at 31 May 2013. 9. Transactions with Related Parties John Glencross is considered to be a related party due to his position as Chief Executive and adirector of Calculus Capital, one of the Company's Investment Managers. He does not receive anyremuneration from the Company. He is a director of Terrain Energy Limited and Lime TechnologyLimited, and stepped down from the board of Human Race Group Limited during the period, companiesin which the Company has invested. 10. Transactions with Investment Managers Investec Structured Products is a related party in respect of its appointment as an InvestmentManager to the Company and is entitled to a performance incentive fee. Investec StructuredProducts will receive an arrangement fee of 0.75 per cent. of the amount invested in eachStructured Product. This arrangement fee shall be paid to Investec Structured Products bythe issuer of the relevant Structured Product. No arrangement fee will be paid to InvestecStructured Products in respect of any decision to invest in Investec-issued Structured Products.Investec Structured Products has agreed not to earn an annual management fee from the Company. As at 31 August 2013, £nil (31 August 2012: £nil; 28 February 2013: £nil) was payable toInvestec Structured Products in relation to the initial fee of 5 per cent. of the gross fundsraised pursuant to the original ordinary share offer. £nil (31 August 2012: £22,000;28 February 2013: £nil) was payable to Investec Structured Products in relation to the initialfee of 5 per cent. of the gross funds raised pursuant to the C share offer. In addition, £25,000 (31 August 2012: £121,000; 28 February 2013: £62,000) was owed to theOrdinary Share Fund by Investec Structured Products as claw back of costs in excess of theagreed expenses cap of 3 per cent. £11,000 (31 August 2012: £68,000; 28 February 2013: £28,000)was owed to the C Share Fund. Calculus Capital is regarded as a related party in respect of its appointment as an InvestmentManager to the Company. For the period ended 31 August 2013, fees of £33,000(31 August 2012: £31,000; 28 February 2013: £61,000) were payable to Calculus Capital.As at 31 August 2013, fees of £39,000 (31 August 2012: £15,000; 28 February 2013: £46,000) wereoutstanding(£34,000 by the Ordinary Share Fund and £5,000 by the C Share Fund). CalculusCapital is also entitled to a performance incentive fee. Calculus Capital receives a fee from Terrain, Lime Technology, MicroEnergy, Human Race,Metropolitan, Hampshire and Tollan for the provision of a director, as well as an annualmonitoring fee which also covers the provision of certain administrative support services.In the period ended 31 August 2013, the amount paid to Calculus Capital which was attributableto the investment made by the Company was £1,648 (31 August 2012: £1,441; 28 February 2013: £3,951)from Terrain; £1,356 (31 August 2012: £1,228; 28 February 2013: £5,695) from Lime; £1,003(31 August 2012: £1,286; 28 February 2013: £2,728) from MicroEnergy; £1,705(31 August 2012: £514; 28 February 2013: £2,662) from Human Race; £482 (31 August 2012: £1,182;28 February 2013: £2,899) from Metropolitan; £1,219 (31 August 2012: £nil; 28 February 2013: £112)from Hampshire; and £1,406 (31 August 2012: £nil; 28 February 2013: £nil) from Tollan (all excluding VAT). In the period ended 31 August 2013, Calculus Capital paid to the Company arrangement fees receivedfrom Secure Electrans in 2012. The net amount paid to the Company as a result of the Company'sinvestment in Secure Electrans Limited was £1,890 (31 August 2012: £nil; 28 February 2013: £nil). Calculus Capital also receives an annual fee from Dryden Human Capital, Corfe and Brigantes forthe provision of a director. In the period ended 31 August 2013, the amount paid to CalculusCapital which was attributable to the investment made by the Company was £901 (31 August 2012:£nil; 28 February 2013: £nil) from Dryden; £364 (31 August 2012: £nil; 28 February 2013: £378)from Brigantes; and £216 (31 August 2012: £nil; 28 February 2013: £223) from Corfe (allexcluding VAT). In the period ended 31 August 2013, Calculus Capital received arrangement fees as a result of theCompany's new investments. Calculus Capital received an arrangement fee of £1,500 (31 August 2012:£nil; 28 February 2013: £nil) as a result of the Company's investment in Pico's Limited(trading as Benito's Hat), £150 (31 August 2012: £nil; 28 February 2013 £nil)for the investment inTerrain Energy Limited and £2,000 (31 August 2012: £nil; 28 February 2013: £nil) for the investmentin Scancell plc. Kate Cornish-Bowden is a non-executive director of Scancell Holdings plc, havingbeen nominated by Calculus Capital following the Company's investment. Calculus Capital alsoreceived £94 from Benito's Hat for the provision of a director (31 August 2012: £nil;28 February 2013: £nil). COMPANY INFORMATION Directors Fund Administrator andMichael O'Higgins (Chairman) Company SecretaryKate Cornish-Bowden Capita Sinclair HendersonJohn Glencross (Trading as Capita AssetSteven Meeks Services) Beaufort House 51 New North Road Exeter EX4 4EPRegistered OfficeBeaufort House Auditors51 New North Road Grant Thornton UK LLPExeter EX4 4EP 30 Finsbury SquareTelephone: 01392 477 500 London EC2P 2YU Company Number Sponsor and Broker07142153 Nplus1 Singer Advisory LLP One Hanover StreetStructured Products Investment London W1S 1YZManagerInvestec Structured Products Registrars2 Gresham Street Capita Asset ServicesLondon EC2V 7QP The RegistryTelephone: 020 7597 4000 34 Beckenham RoadWebsite: Beckenhamwww.investecstructuredproducts.com Kent BR3 4TU Telephone: 0871 644 0300 Venture Capital Investments ManagerCalculus Capital Limited104 Park Street (Calls cost 10p per minute plusLondon W1K 6NF network extras. Lines are open Monday to Friday 8.30 am to 5.30 pm). Telephone: 020 7493 4940Website: www.calculuscapital.com A copy of the Investec Structured Products Calculus VCT plc Half Yearly Report for the six monthsended 31 August 2013 can be found on the following websites: www.calculuscapital.com andwww.investecstructuredproducts.com. For further information, please contact: Investment Manager to the Structured Products PortfolioInvestec Structured ProductsGary DaleTelephone: 020 7597 4065 Investment Manager to the Venture Capital PortfolioCalculus Capital LimitedSusan McDonaldTelephone: 020 7493 4940 National Storage Mechanism A copy of the 2013 Half Yearly Report will be submitted shortly to theNational Storage Mechanism ("NSM") and will be available for inspection at theNSM, which is situated at: www.morningstar.co.uk/uk/NSM. Neither the contents of the Company's website nor the contents of any websiteaccessible from hyperlinks on this announcement (or any other website) areincorporated into, or form part of, this announcement.

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