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 2015.

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 2015.

Investment Portfolio

At the period end, the Company's funds are 86% invested in a portfolio of both VCT qualifying and non-qualifying unquoted investments. 

During the period the solar PV companies in which the Company invested disposed of a significant part of their portfolios of roof-mounted solar systems. The disposal resulted in an up-lift to the valuation of these investee companies of an aggregate £2.9 million, equivalent to 9.77p per share, which was recognised at 28 February 2015. Subsequently the Company has sold all of these investments.

In June, the Company completed the sale of its investment in two Anaerobic Digestion companies for £2.6 million resulting in an up-lift to the valuation of £335,000, equivalent to 1.11p per share.

As shown on page 6, qualifying holdings accounted for 56% of the overall investment portfolio at 31 August 2015. Qualifying investments that have been disposed of continue to count towards the VCT qualifying status for six months after disposal. Therefore the Company continues to meet the requirement that 70% of the portfolio must be invested in VCT qualifying investments.

Dividend

We are pleased to report that during the period the Company paid two further dividends. A dividend of £1.3 million equal to 4.32p per share was paid on 19 June 2015 and a dividend of £13.3 million equal to 44.0p per share was paid on 31 July 2015. This takes the total paid by way of dividends to shareholders to 61.63p per share.

Net Asset Value

Following the sales detailed above, investment income has reduced, so that the Company's recurring income is less than the running costs for the period. The uplift on the sale of the Anaerobic Digestion companies has however resulted in a profit for the period of 0.23p per share. At 31 August 2015 the Net Asset Value ("NAV") per share stood at 44.63p per share. Taken together with the cumulative dividends of 61.63p per share paid this gives a NAV per share equivalent to 106.26p per share.

Principal Risks

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

· 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;

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

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 this year, all of the Company's shareholders had 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 distributions have been made and both your Board and Triple Point are planning to return all remaining funds to shareholders as soon as is practicable.  

The Unaudited Interim Financial Report has been prepared on a break up basis to reflect the intention to realise the assets of the Company within the next six months after which the Directors will seek shareholders approval to place the Company into Members' Voluntary Liquidation.

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

14 October 2015

Investment Manager's Review

In June 2015, the 13 investee companies which generated renewable electricity from residential solar PV panels were sold and as a result of the sale, the Company realised a total of £14.8m. This was the first large scale sale of its kind in the UK VCT sector, and we are pleased to report that this contributed to a significant uplift of 9.77p per share, equivalent to £2.9m on the net asset value of the Company.

The two anaerobic digestion companies were also successfully sold in June 2015, which resulted in a realisation of £1.6m. This contributed to an uplift of 1.11p per share, equivalent to £0.3m.

As shown on page 6, qualifying holdings accounted for 56% of the overall investment portfolio at 31 August 2015. Qualifying investments that have been disposed of continue to count towards the VCT qualifying status for six months after disposal. Therefore the Company continues to meet the requirement that 70% of the portfolio must be invested in VCT qualifying investments.

The remaining portfolio comprises investments in companies active in four sectors, cinema digitisation, hydro project management, renewable energy and SME leasing.

Sector Analysis

The unquoted investment portfolio can be analysed as follows:

Remaining Investments

Cinema Digitisation

Over the six month period, TP10's portfolio of cinema digitisation businesses continued to perform as intended, with the companies benefitting from regular and reliable revenues from their operations in the UK, Germany, Italy and Ireland.  It is expected that this portfolio will be realised by the end of the year.

Hydro Project Management

Highland Hydro Services Limited ("HHS") manages the planning and environmental impact studies for a portfolio of new small scale run-of-river hydroelectric schemes in the Scottish Highlands. All nine of the initial applications went according to plan and received planning consent. HHS has successfully sold the rights to the first six schemes and is expecting to conclude the final sales this calendar year.

Landfill Gas

Craigahulliar Energy Ltd (CEL) and Aeris Power Ltd (APL) each generates renewable electricity from landfill gas at sites operated respectively by local councils and a large waste management company in Northern Ireland. Both businesses continue to generate electricity for export to the Grid, earning long term 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. CEL is generating in line with expectations while APL's generation is running slightly lower than expected due to lower than expected gas extraction. Management have taken actions to address this and while the company continues to be comfortably able to meet the VCT's interest payments, we have deemed it is prudent to reflect slightly lower cash flow projections in the recent valuation.

SME Lending

The Company has a £3.7 million investment in Broadpoint Limited, a finance company which provides short and medium term funding to a range of small and medium sized businesses. The Company is able to withdraw its funds from Broadpoint with one months' notice.

Outlook

Following the fifth anniversary of TP10 in June 2015, the realisation of the Company's remaining investments is now at an advanced stage. We are working to realise the remaining balance of the portfolio and we expect the Company to pay further dividends and enter into a Members' Voluntary Liquidation in the coming months. This process is designed to deliver an exit for investors as soon as practicable, and we continue to work closely with the Board and all the portfolio companies to meet investors' expectations.

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

15 October 2015

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 2015, 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.

After the completion of the shareholders' five year holding period in June this year, steps have been taken to realise the Company's investments. In the circumstances this Interim Financial Report has been prepared on a break-up basis taking into account the expected costs of the Company's liquidation.

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

Robin Morrison

Chairman

14 October 2015

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

The accompanying notes are an integral part of this statement.

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 2015 was authorised for issue in accordance with a resolution of the Directors on 14 October 2015.

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 EC4N 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

In preparation for the completion of shareholders five year holding period, steps have been taken to realise the Company's investments. The Board's intention will be to propose resolutions to place the Company into Members Voluntary Liquidation after completion of the realisation of unquoted investments which will require shareholders approval. Thereafter all funds will be returned to shareholders by way of capital distribution by the liquidators. In the circumstances these Financial Statements have been prepared on a break up basis taking into account the expected costs of the Company's liquidation.

The Unaudited Interim Financial Report of the Company for the 6 months ended 31 August 2015 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 2015.

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 £72,000 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 £13,447,000 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 £319,904 which has been expensed, for providing management and administrative services to the Company. TPIM also received an exit fee on funds returned to Shareholders of £130,515 which has been expensed. At 31 August 2015 £141,934 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

A dividend of £1.3 million equal to 4.32p per share was paid on 19 June 2015 and a dividend of £13.3 million equal to 44.0p per share was paid on 31 July 2015.