Notes to the

Financial Statements

1. CORPORATE INFORMATION

The Financial Statements of the Company for the year ended

28 February 2023 were authorised for issue in accordance with a

resolution of the Directors on 7 June 2023.

The Company applied for listing on the London Stock Exchange on

24 December 2010.

Triple Point VCT 2011 plc is incorporated and domiciled in Great

Britain and registered in England and Wales. The address of the

Company’s registered office, which is also its principal place of

business, is 1 King William Street, London, EC4N 7AF.

The Company is required to nominate a functional currency, being

the currency in which the Company predominantly operates. The

functional and reporting currency is pounds sterling (£), reflecting the

primary economic environment in which the Company operates.

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.

2.

BASIS OF PREPARATION AND

ACCOUNTING POLICIES

BASIS OF PREPARATION

The Financial Statements of the Company for the year to 28 February

2023 have been prepared in accordance with UK-adopted

international accounting standards and the applicable legal

requirements of the Companies Act 2006 and comply with the

Statement of Recommended Practice: “Financial Statements of

Investment Trust Companies and Venture Capital Trusts” (“SORP”)

issued by the Association of Investment Companies (“AIC”) in July

2022.

The Financial Statements are prepared on a historical cost basis

except that investments are shown at fair value through profit or loss

(“FVTPL”).

GOING CONCERN

After making the necessary enquiries, the Directors confirm that they

are satisfied that the Company has adequate resources to continue in

business for at least 12 months from the date of approval of these

financial statements. The Board receives regular reports from the

Investment Manager and the Directors believe that, as no material

uncertainties leading to significant doubt about going concern have

been identified, it is appropriate to continue to apply the going

concern basis in preparing the Financial Statements.

At the Balance Sheet date, the Company had a cash Balance of £18.2

million. Following the period end, the Company has also raised

further capital of circa £9 million. Whilst 30% of this new fund raise

needs to be deployed in 12 months under VCT legislation, this still

leaves the Company a sufficient cash runway to continue to meet its

liabilities as they fall due. Other than Investment Management fees &

dividends, the Company has a low level of non-discretionary cash

outflows. Should cash flow come under pressure, the Company has

the option to suspend dividends and negotiate deferral of investment

management fees. The impact on the business of the Russia-Ukraine

invasion is set out further in the Chair’s statement on pages 6 to 13

and Investment Manager’s review on pages 26 to 35.

On this basis, the Directors believe the going concern basis is and

continues to be appropriate.

CRITICAL ACCOUNTING JUDGEMENTS

AND ESTIMATES

The preparation of Financial Statements in conformity with UK-

adopted IFRS requires management to make judgements, estimates

and assumptions that affect the application of policies and the

reported amounts of assets and liabilities, income and expenses. The

estimates and associated assumptions are based on historical

experience and various other factors believed to be reasonable under

the circumstances, the results of which form the basis of making the

judgements about carrying values of assets and liabilities that are not

readily apparent from other sources. Actual results may differ from

these judgements.

The estimates and assumptions that have a significant risk of causing

a material adjustment to the carrying amounts of assets and liabilities

relate to:

•

the valuation of unlisted financial investments held at fair value

through profit or loss, which are valued on the basis noted

below (under the heading Non-Current Asset Investments)

and in note 11;

•

the recognition or otherwise of accrued income on loan notes

and similar instruments granted to investee companies, which

are assessed in conjunction with the overall valuation of

unlisted financial investments as noted above; and

The key estimates made by Directors are in the valuation of non-

current assets and the assessment of unrealised losses. The estimates

and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognised in the period in

which the estimate is revised if the revision affects that period or in

the period of revision and future periods if the revision affects both

current and future periods. The carrying value of investments is

disclosed in note 11.

Useful lives of the Company’s Hydro investment are based on the

Investment Manager’s estimates of the period over which the assets

will generate revenue which are periodically reviewed for continued

appropriateness. Climate Change may have an impact on the

estimated useful life of these assets. The actual useful lives may be a

shorter or longer period depending on the actual operating

conditions experienced by the asset.

The Directors do not believe that there are any further key

judgements made in applying accounting policies or estimates in

respect of the Financial Statements.

ACCOUNTING POLICIES

These accounting policies have been applied consistently in

preparing these Financial Statements.

NEW AND AMENDED STANDARDS AND

INTERPRETATIONS

A number of new standards and amendments to standards are

effective for the annual periods beginning after 1 January 2023. None

of these are expected to have a significant effect on the measurement

of the amounts recognised in the financial statements of the

Company. The Company intends to adopt the standards and

interpretations in the reporting period when they become effective

and the Board does not anticipate that the adoption of these

standards and interpretations in future periods will materially impact

the Company’s financial results in the period of initial application

although there may be revised presentations to the financial

statements and additional disclosures.

NEW AND AMENDED STANDARDS AND

INTERPRETATIONS NOT APPLIED

The relevant new and amended standards and interpretations that are

issued, but not yet effective, up to the date of issuance of the

Company’s financial statements are disclosed below. These standards

are not expected to have a material impact on the entity in future

reporting periods and on foreseeable future transactions.

AMENDMENTS TO IAS 1: CLASSIFICATION OF

LIABILITIES AS CURRENT OR NON-CURRENT

In January 2020, the IASB issued amendments to paragraphs 69 to 76

of IAS 1 to specify the requirements for classifying liabilities as current

or non-current. The amendments are effective for annual reporting

periods beginning on or after 1 January 2023.

DEFINITION OF ACCOUNTING ESTIMATES –

AMENDMENTS TO IAS 8

In February 2021, the IASB issued amendments to IAS 8, in which it

introduces a definition of “accounting estimates”. The amendments

are effective for annual reporting periods beginning on or after

1 January 2023.

DISCLOSURE OF ACCOUNTING POLICIES –

AMENDMENTS TO IAS 1 AND IFRS PRACTICE

STATEMENT 2

In February 2021, the IASB issued amendments to IAS 1 and IFRS

Practice Statement 2 Making Materiality Judgements. The

amendments to IAS 1 are applicable for annual periods beginning on

or after 1 January 2023.

PRESENTATION OF STATEMENT OF

COMPREHENSIVE INCOME

In order better to reflect the activities of a Venture Capital Trust, and

in accordance with the guidance issued by the Association of

Investment Companies, supplementary information which analyses

the Statement of Comprehensive Income between items of a revenue

and capital nature has been presented alongside the Income

Statement.

NON-CURRENT ASSET INVESTMENTS

The Company invests in financial assets with a view to profiting from

their total return through income and capital growth. Consistent with

the business model, these investments are managed, and their

performance is evaluated on a fair value basis. Accordingly, upon

initial recognition the investments are classified by the Company as

“at fair value through profit or loss” in accordance with IFRS 9.

They are included initially at fair value, which is taken to be their cost

(excluding expenses incidental to the acquisition which are written off

in the Statement of Comprehensive Income and allocated to “capital”

at the time of acquisition). Subsequently the investments are valued at

“fair value” which is the price that would be received to sell an asset

or paid to transfer a liability (exit price) in an orderly transaction

between market participants at the measurement date.

This is measured as follows:

Unlisted investments are fair valued by the Directors in accordance

with the International Private Equity and Venture Capital Valuation

Guidelines. Fair value is established by using measurements of value

such as calibrating to the initial cost of investment, latest funding

rounds for our Venture investments and discounted cash flows.

The Board believe that those investments valued based on the

transaction price adjusted for business performance and market

indicators are done so because the transaction price is still

representative of fair value.

Where securities are classified upon initial recognition at fair value

through profit or loss, gains and losses arising from changes in fair

value are included in the Statement of Comprehensive Income for the

year as capital items in accordance with the AIC SORP 2022. The

profit or loss on disposal is calculated net of transaction costs of

disposal.

Investments are recognised as financial assets on legal completion of

the investment contract and are de-recognised on legal completion of

the sale of an investment.

The Company has taken the exemption permitted by IAS 28

“Investments in Associates and Joint Ventures” and IFRS 11 “Joint

Arrangements” for entities similar to investment entities and measures

its investments in associates and joint ventures at fair value. The

Directors consider an associate to be an entity over which the

Company has significant influence, through an ownership of between

20% and 50%. The Company’s associates and joint ventures are

disclosed in note 12.

INCOME

Investment income includes interest earned on bank balances and

investment loans and includes income tax withheld at source. Dividend

income is shown net of any related tax credit and is brought into

account on the ex-dividend date.

Fixed returns on investment loans and debt are recognised on a time

apportionment basis so as to reflect the effective yield, provided there

is no reasonable doubt that payment will be received in due course.

EXPENSES

All expenses are accounted for on the accruals basis. Expenses are

charged to revenue with the exception of the investment management

exit fee which has been charged to the capital account and the

investment management fee which was previously charged 75% to the

revenue account and 25% to the capital account to reflect, in the

Directors’ opinion, the expected long-term split of returns in the form

of income and capital gains respectively from the investment portfolio.

From 1 March 2022, the investment management fee has been

charged 10% to the revenue account and 90% to the capital account

recognising the significant increase to the Venture investments and the

expected nature of returns from them.

The Company’s general expenses are split between the Share Classes

using the net asset value of each Share Class divided by the total net

asset value of the Company.

TAXATION

Corporation tax payable is applied to profits chargeable to

corporation tax, if any, at the current rate in accordance with IAS 12

“Income Taxes”. The tax effect of different items of income/gain and

expenditure/loss is allocated between capital and revenue on the

“marginal” basis as recommended by the AIC SORP 2022.

In accordance with IAS 12, deferred tax is recognised using the

balance sheet method providing for temporary differences between

the carrying amounts of assets and liabilities for financial reporting

purposes and the amounts used for taxation purposes. A deferred tax

asset is recognised to the extent that it is probable that future taxable

profits will be available against which the temporary difference can be

utilised. Deferred tax is measured at the tax rates that are expected to

be applied to the temporary differences when they reverse, based on

the laws that have been enacted or substantively enacted by the

reporting date. The Directors have considered the requirements of

IAS 12 and do not believe that any provision should be made.

FINANCIAL INSTRUMENTS

The Company’s principal financial assets are its investments and the

accounting policies in relation to those assets are set out above.

Financial liabilities and equity instruments are classified according to

the substance of the contractual arrangements entered.

An equity instrument is any contract that evidences a residual interest

in the assets of the entity after deducting all of its financial liabilities.

Where the contractual terms of share capital do not have any terms

meeting the definition of a financial liability then this is classed as an

equity instrument.

Financial assets and financial liabilities are recognised in the

Company’s Statement of Financial Position when the Company

becomes a party to the contractual provisions of the instrument.

At 28 February 2023 and 28 February 2022 the carrying amounts of

cash and cash equivalents, receivables, payables, accrued expenses

and short-term borrowings reflected in the financial statements are

reasonable estimates of fair value in view of the nature of these

instruments or the relatively short period of time between the original

instruments and their expected realisation.

FINANCIAL ASSETS

The classification of financial assets at initial recognition depends on

the purpose for which the financial asset was acquired and its

characteristics. All financial assets are initially recognised at fair value.

All purchases of financial assets are recorded at the date on which the

Company became party to the contractual requirements of the

financial asset.

The Company’s financial assets principally comprise of investments

held at fair value and loans and receivables.

The Company holds trade receivables with the objective to collect the

contractual cash flows and therefore measures them subsequently at

amortised cost using the effective interest method.

The Company’s loan and equity investments are held at fair value.

Gains or losses resulting from the movement in fair value are

recognised in the Company’s Statement of Comprehensive Income at

each valuation date.

Financial assets are recognised/derecognised at the date of the

purchase/disposal. Investments are initially recognised at cost, being

the fair value of consideration given. Transaction costs are recognised

in the Consolidated Statement of Comprehensive Income as incurred.

Fair value is defined as the amount for which an asset could be

exchanged between knowledgeable willing parties in an arm’s length

transaction. Fair value is calculated on an unlevered, discounted cash

flow basis in accordance with IFRS 13 and IFRS 9.

Derecognition of financial assets (in whole or in part) takes effect:

•

when the Company has transferred substantially all the risks

and rewards of ownership; or

•

when the contractual right to receive cash flow has expired.

FINANCIAL LIABILITIES

Financial liabilities are classified according to the substance of the

contractual agreements entered into and are recorded on the date on

which the Company becomes party to the contractual requirements of

the financial liability.

All loans and borrowings are initially recognised at cost, being fair

value of the consideration received, less issue costs where applicable.

After initial recognition, all interest-bearing loans and borrowings are

subsequently measured at amortised cost using the effective interest

rate method.

The Company’s other financial liabilities measured at amortised cost

include trade and other payables which are initially recognised at fair

value and subsequently measured at amortised cost using the

effective interest rate method.

A financial liability (in whole or in part) is derecognised when the

Company has extinguished its contractual obligations, it expires or is

cancelled. Any gain or loss on derecognition is taken to the Statement

of Comprehensive Income.

ISSUED SHARE CAPITAL

A Shares, B Shares and Venture Shares are classified as equity

because they do not contain an obligation to transfer cash or another

financial asset.

Issue costs associated with the allotment of Shares have been

deducted from the Share premium account in accordance with IAS 32.

The Company had no external debt at the reporting date;

consequently, all capital is represented by the value of Share capital,

distributable and other reserves. Total Shareholder equity at

28 February 2023 was £50.07 million (2022: £35.17 million).

CASH AND CASH EQUIVALENTS

Cash and cash equivalents representing cash available at less than

three months’ notice are classified as Financial Assets at amortised

cost under IFRS 9.

RESERVES

The revenue reserve (retained earnings) and capital reserve reflect the

guidance in the AIC SORP. 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 special distributable reserve was created on court cancellations of

the Share premium account, most recently and during the financial

year on 16 August 2022 in respect of the Venture Share Class.

The revenue reserve, the portion of the capital reserve representing

realised capital profits and losses less unrealised gains and the special

distributable reserve are distributable by way of dividend.

FOREIGN CURRENCIES

Transactions in foreign currencies are translated at the foreign

exchange rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies at

the reporting date are translated at the foreign exchange rate ruling

at that date. Foreign exchange differences arising on translation are

recognised in the Statement of Comprehensive Income under

Revenue or Capital column wherever appropriate.

DIVIDENDS

Dividends payable are recognised as distributions in the financial

statements when the Company’s obligation to make payment has

been established.

3. SEGMENTAL REPORTING

The Directors are of the opinion that the Company only has a single

operating segment of business, being investment activity.

All revenues and assets are generated and held in the UK

4. INVESTMENT INCOME

Year Ended

28 February 2023

Year Ended

28 February 2022

Total

Total

£’000

£’000

Interest receivable on bank balance

34

3

Loan interest and fixed deposit interest

179

232

213

235

Disclosure by share class is unaudited.

5.

INVESTMENT MANAGEMENT

FEES

TPIM provides investment management and administration services

to the Company under an Investment Management Agreement

effective 23 September 2010 and a deed of variation to that

agreement effective 14 September 2018.

A Shares:

The agreement provides for an investment management

fee of 2.00% per annum of net assets payable quarterly in arrear for A

Shares. For A Shares, the appointment shall continue for a period of

at least 6 years from the admission of those Shares.

B Shares:

The agreement provides for an investment management

fee of 1.90% per annum of net assets payable quarterly in arrear for B

Shares. For B Shares, the appointment shall continue for a period of

at least six years from the admission of those Shares.

Venture:

The agreement provides for an investment management fee

of 2.00% per annum of net assets payable quarterly in arrear for

Venture Shares. For Venture Shares, the appointment shall continue

for a period of at least six years from the admission of those Shares.

Following a deed of variation to the Investment Management

agreement, dated 14 September 2018. An administration fee equal to

0.25% of the Company’s NAV replaces the previously charged

£37,500 per annum.

Year Ended

28 February 2023

Year Ended

28 February 2022

Total

Total

£’000

£’000

Investment Management Fees

1,127

538

Performance Fees

–

1,066