Initial San Francisco Giants investments in VCT qualifying companies

Initial explains at&t park concerts investments in baseball tickets understand VCT qualifying companies aregenerally made in amounts ranging from £200,000 to £1 million at cost. The balance of the portfolio isheld in readily realisable interest bearing investments and deposits.Risk diversification and maximum exposuresRisk is spread by investing in a number of different businessesacross different industry sectors. Inaddition, although the VCT can invest less than 30% of an investment in aspecific company in ordinary shares it must have at least 10% by value of itstotal investments in each qualifying company in ordinary shares which carry nopreferential rights.Asset mixThe Investment Manager aims to hold approximately 80% by value ofthe VCT's investments in qualifying holdings. Amongst other conditions, the VCTmay not invest more than 15% of its investments in a single company and mustachieve at least 70% by value of its investments throughout the period inshares or securities in qualifying holdings, of which a minimum overall of 30%by value must be ordinary shares which carry no preferential rights.

to support incumbentmanagement teams in acquiring the business they manage but do not own.Investments are primarily made in companies that are established andprofitable.Uninvested funds are held in cash and low risk money market funds.UK CompaniesThe companies in which investments are made must have no more than£15 million of gross assets at the time of investment to be classed as a VCTqualifying holding.VCT regulationThe investment policy is designed to ensure that the VCT continuesto qualify and is approved as a VCT by HMRC at&t park events . The depth and timescale of theeconomic and market downturn is as yet uncertain, but there is clearly aheightened risk to the smaller company sector in which your VCT invests cubs rooftop . YourBoard continues to believe that the Investment Manager's strategy of investingin MBOs is appropriate, and that, looking forward, good opportunities willpresent themselves for new investment.ConclusionI would like to express my thanks to all Shareholders for yourcontinuing support of the Company san francisco giants . We anticipate that there will besignificant opportunities to invest over the medium term and intend theCompany to participate alongside other MPEP-advised VCTs, at what may be anadvantageous point in the economic cycle.OutlookIn my Statement in the Half-Yearly Report to shareholders, Iemphasised that the Board and the Investment Manager are paying closeattention to current economic indicators sbc park . Due to the reduction in anticipated revenuereturns and the need to preserve the fund's cash position, your Directors willnot be recommending a final income dividend for Ordinary Shareholders, but arerecommending an income dividend for C Shareholders of 1 penny per share whichwill be paid on 18 September 2009 to Shareholders on the register on 28 August2009.New capital raisingThe Offer closed on 30 April 2009, having raised just under £7.3million for the C Share Fund, which the Board regards as a positive outcome indifficult conditions for fund-raising. An amountin excess of this sum has been received since the year-end.DividendsThe revenue account generated a net revenue return for the year of£147,005 for the Ordinary Share Fund (2008: (£214,894)) and £123,412 for the CShare Fund (2008: £242,682).

As a result, total income from investee companies rose from £575,624last year to £605,949 this year att park . Nonetheless, the overall effect of thefactors outlined above was a fall in total income from £1,027,023 to £843,972.Achieving revenue returns in the new financial year will remain difficult.VAT recoverableBoth Funds' returns have been increased by the anticipation of VATrecoverable of £112,000 in total, as a result of recent HMRC policyannouncements willie mays . These now permit recovery of most of the VAT that has beenborne upon Fund management fees in the past three years, at least willie mccovey autographed baseball . Secondly, loanstock interest also fell from £524,202 last year to £391,124 this year,because several investee companies were unable to pay their interest due ontheir loan stocks, and because some of the loan stocks have variable ratecoupons that fell in the year willie mccovey signed baseball . The annualised yield from loan stocks atvaluation is now running at 5.5% (2008:9.2%) and 4.9% (2008: 9.0%) for theOrdinary and C Share Funds respectively.However, income was boosted by higher dividend receipts, notablyfrom PastaKing Holdings Limited, which paid two exceptionally large dividendsthis year, resulting in an increase from £51,422 last year to £214,825 thisyear. As aconsequence of this fall, total income from our cash at the Company levelnearly halved from £451,399 last year to £238,023 this year.

Firstly, both funds' income was adversely affectedby the sharp fall in interest rates in the second half of the year att park tickets . The C Share Fund held investments in thirteencompanies, showing valuations which were 85.8% of cost.Details of these investments are provided in the InvestmentManager's Review below.Income returnsAlthough both Funds have achieved positive revenue returns for theyear, these returns have both fallen compared to the previous year This isprimarily for two reasons baseball tickets . Both fundsmade small follow-on investments in PXP Holdings Limited (O fund: £96,245; Cfund: £67,191), while the C fund also made a small follow-on investment inMonsal Holdings Limited of £85,450.No realisations have occurred in the year, although DiGiCo Europehas made a partial repayment of its loan stock, realising £137,552 for theOrdinary Fund and £96,028 for the C Fund, just after the year-end.The Ordinary Share Fund held 16 investments at the year-end, whichwere valued at 64% of cost cubs rooftop . Bothfunds made an investment in ATG Media Holdings Limited, an MBO transaction,totalling £863,895, of which the O Fund invested £508,736 and the C fundinvested £355,159 san francisco giants . The C Fund also invested £2 million in two companies thatwill seek opportunities in two specific sectors.

These acquisition vehicleshave been established to provide time to seek and complete investmenttransactions of the right quality on sufficiently favourable terms autographed baseball . The after tax revenue return before netcapital gains was 1.27 pence per C Share for the year ended 30 April 2009(2008: 2.65 pence).Portfolio ActivityThis year there has been relatively little new investment,reflecting a desire to be cautious and to retain liquidity in the expectationof better opportunities emerging at a further phase in this recession sbc park . The after taxrevenue return before net capital gains was 1.29 pence per Ordinary Share forthe year ended 30 April 2009 (2008: 1.82 pence).The total return (after tax) attributable to the C Shareholders for the yearwas a loss of £1,021,677 (2008: profit of £259,528) and the NAV per C Share at30 April 2009 was 86.02 pence compared with 98.48 pence as at 30 April 2008.This fall is again explained by a fall in valuations of unrealised investmentsand by payment of a dividend of 2.5 pence per share, in respect of the yearended 30 April 2008, on 19 July 2008 willie mays . The total return (after tax) attributable to the Ordinary Shareholdersfor the year was a loss of £2,545,615 (2008: loss of £633,730) and the NAV perOrdinary Share at 30 April 2009 was 69.03 pence compared with 96.91 pence asat 30 April 2008 . This fall is mainly explained by a fall in valuations ofunrealised investments and by payment of a dividend of 6 pence per share, inrespect of the year ended 30 April 2008, on 19 July 2008.