Edge Performance VCT Public : Annual Report and Financial Statement for the year ended 28 February 2021

EDGE PERFORMANCE VCT PUBLIC LIMITED COMPANY

ANNUAL REPORT & FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2021

Edge Performance VCT Public Limited Company

Incorporated in England and Wales with registration number 05558025

Contents
Financial Summary	1	Strategic Report	15	Statement of Comprehensive Income	34
Investment Policy	3	Directors' Report	18	Balance Sheet	36
Chairman's Statement	4	Directors' Remuneration Report	22	Statement of Changes in Equity	38
The Directors & Investment Manager	6	Statement of Corporate Governance	25	Statement of Cash Flows	39
Investment Manager's Review	8	Statement of Directors' Responsibilities	28	Notes to the Financial Statements	40
Investment Portfolios	12	Independent Auditor's Report	29	Corporate Information	57

Financial Summary

2021

	2021	2021	2021
Year ended 28 February	H	I	Total
Net assets £'000	15,838	8,638	24,476
Net asset value per Share, p	136.62	11.82	n/a
Net asset value total return per Share, p*	158.62	46.82	n/a
Investment income £'000	107	128	235
Return before tax £'000
- Revenue	(243)	(363)	(606)
- Capital	8,119	(11,069)	(2,950)
- Total	7,876	(11,432)	(3,556)
Return per Share, p**
- Revenue	(2.11)	(0.51)	n/a
- Capital	70.04	(15.14)	n/a
- Total	67.93	(15.65)	n/a
Dividend per Share paid or declared/recommended in respect of the year, p
- Revenue	-	-	-
- Capital	24[1]	8.5[1]	-
- Total	24	8.5	-
Share price at end of year, p	112.50	9.00	n/a

• i.e. net asset value per share plus total dividends paid per share to date. See note 17.
• i.e. return for the year over the weighted average number of shares. See note 10.

1. Reflects (a) the interim dividend of 4.0p declared on 26 November 2020, paid on 18 December 2020 to H shareholders as shown in the Company's register of members as at 4 December 2020; (b) the interim dividend of 20.0p declared on 12 August 2021 to be paid on 27 August 2021 to H shareholders as shown in the Company's register of members as at 20 August 2021; and (c) the interim dividend of 8.5p declared on 12 August 2021 to be paid on 27 August 2021 to I shareholders as shown in the Company's register of members as at 20 August 2021.

Edge Performance VCT Public Limited Company

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Financial Summary continued

2020

	2020	2020	2020
Year ended 29 February	H	I	Total
Net assets £'000	8,426	20,081	28,507
Net asset value per Share, p	72.69	27.47	n/a
Net asset value total return per Share, p*	90.69	62.47	n/a
Investment income £'000	44	162	206
Return before tax £'000
- Revenue	(109)	(525)	(634)
- Capital	2,940	(7,664)	(4,724)
- Total	2,831	(8,189)	(5,358)
Return per Share, p**
- Revenue	(0.94)	(0.72)	n/a
- Capital	25.36	(10.48)	n/a
- Total	24.42	(11.20)	n/a
Dividend per Share paid or declared/recommended in respect of the year, p
- Revenue	-	-	-
- Capital	4.0[1]	-	-
- Total	4.0	-	-
Share price at end of year, p	38.50	13.50	n/a

• i.e. net asset value per share plus total dividends paid per share to date. See note 17.
• i.e. return for the year over the weighted average number of shares. See note 10.

1. Reflects the interim dividend of 4.0p declared on 13 December 2019, paid on 7 January 2020 to H shareholders as shown in the Company's register of members as at 13 December 2019.

2Edge Performance VCT Public Limited Company

Investment Policy

Investment Policy

Edge Performance VCT Public Limited Company ("Edge Performance VCT" or the "Company") was set up to offer the opportunity to invest in the entertainment and media industry in a broad range of companies (thereby diversifying risk) and seeks to allow investors to take advantage of VCT tax reliefs while combining the features described below.

The full text of the Company's investment policy can be found at https://edge.uk.com/ edge-performance-funds/#governance.

H Share Fund

With the "evergreen" H Share Fund, Edge Performance VCT is seeking to achieve an annual yield for investors, growth, risk reduction and liquidity.

The Company is targeting building to a consistent tax-free annual dividend yield for investors. To align the interests of the Investment Manager, Edge Investments Limited (Edge Investments), with this objective, the Investment Manager's performance fee is payable only if cumulative dividends are at least 7p per H Share per year on average and the net asset value per H Share grows.

The Company will invest at least 80% of the H Share Fund in VCT-qualifying investments which the Company believes are capable of generating an appropriate level of growth or return.

The Company intends that the majority of any gain made from the realisation of VCT- qualifying investments will be distributed to H shareholders, to maintain and improve the H shareholders' yield, with the remaining proceeds of realisation being reinvested in further VCT-qualifying investments, in order to drive compound growth for the H shareholders.

I Share Fund

All of Edge Performance VCT's "planned exit" share classes (namely C Shares, D Shares, E Shares, F Shares, G Shares and I Shares) were consolidated into a single enlarged I Share Fund in September 2016.

Through a blend of fixed income securities, cash and near-cash,VCT-qualifying investments with a high level of underpinning and other VCT investments intended to achieve growth, the Company is looking to provide shareholders with significant capital preservation coupled with the potential for upside from the growth investments.

All of the Company's higher-underpinnedVCT-qualifying investments have now been realised. The Company is therefore now seeking to maximise returns for

I Shareholders within a reasonable timescale having regard to the market positions of its remaining portfolio companies.

Asset Allocation

VCT-qualifying investments will normally be made up of ordinary shares or other eligible shares (as defined under VCT rules) in the investee company, together with - wherever practicable - loan stock or other loan finance and/or preference shares.

Borrowings

Although Edge Performance VCT's articles of association allow the Company to incur borrowings to fund its operations, it currently has no intention to do so.

VCT Status and Maximum Exposures

Edge Performance VCT must be approved by HM Revenue and Customs in order to retain its venture capital trust status. The conditions which must be satisfied to retain such status include the restriction on the maximum exposure of the Company that not more than 15% by 'VCT value' of the Company's total investments can be held in a single company or group (other than a VCT). The Company will not commit more than 15% to a single company or group even in the event of an increase in the limit imposed by VCT rules.

Edge Performance VCT Public Limited Company

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