ProVen VCT plc Annual Report and Accounts for the year ended 28 February 2011

	Page
Principal Investment Objectives and Financial Highlights	1
Fund Overview	2
Chairman's Statement	3
Investment Manager's Review	6
Investment Portfolio and Review of Investments	9
Board of Directors	23
Directors' Report and Business Review	24
Statement of Corporate Governance	32
Directors' Remuneration Report	36
Independent Auditor's Report	39
Income Statement	41
Reconciliation of Movements in Shareholders' Funds	43
Balance Sheet	44
Cash Flow Statement	45
Notes to the Accounts	46
Shareholder Information	61
Company Information	62
Notice of Annual General Meeting	63
Form of Proxy

ProVen-VCTplc-

Principal Investment Objectives

toachieveatotalreturnsignificantlygreaterthanthatavailablefromdirectinvestmentinquotedbusinessesbyinvestinginaportfolioofcarefullyselectedsmallercompanieswithexcellentgrowthprospects;-
tominimisetheriskofeachinvestmentandtheportfolioasawhole;and-
toobtainandmaintain-VCTstatusinordertosecurethesubstantialtaxbenefitsavailableforinvestmentina-VCT.-

Financial Highlights

162.5p	Ordinary Share net asset value total return per share since launch (net asset value at 28 February 2011 plus cumulative dividends paid)
9.2p	Average annual Ordinary Share dividends paid since launch
81.6p	'C' Share net asset value total return per share since launch (net asset value at 28 February 2011 plus cumulative dividends paid)
1.0p	Average annual 'C' Share dividends paid since launch
90.0p	'D' Share net asset value total return per share since launch (net asset value at 28 February 2011 No 'D' Share dividends paid to date)

Fund Overview

Financial summary

	Shares	'C'		'D'	Shares
2011	2010	2011	2010	2011	2010
pence	pence	pence	pence	pence	pence
61.0	54.8	76.8	75.5	90.0	92.2
101.5	93.4	4.8	4.8
162.5	148.2	81.6	80.3	90.0	92.2

9.6%		1.6%		2.4%
17.0%		17.0%		17.0%
		Ordinary		Shares

Shareholder investment and returns analysis

Thechartbelowshowstheoriginalsubscriptionprice,netcostaftertax-(assumingfullincometaxreliefattheraterulingatthetimeoftheinvestment),andtotalreturn-(netassetvalueanddividendspaid)foreachshareclassandtaxyearfundraising,asat-28-February-2011.-Fundsraisedunderthe-Offeropenat-28-February-2011areexcludedasnoshareshadbeenissued.-The-Ordinary-Sharefundsraisedin-2005/2006wereissuedateither-108.15ppershare,priorto-13-May-2005,or-112.91ppershare,after-13-May-2005.-Noaccounthasbeentakenofthepossiblebenefitofanycapitalgainstaxdeferral-(availablefornewinvestmentsuptoandincludingtaxyear-2003/2004)orofadditionalsharesthatmayhavebeenavailablethroughearlybirdorfinancialintermediarydiscounts.-

Subscription-Price Net-Cost-After-Tax Total-Return-(Dividends-Paid-Plus-Net-Asset-

Value)

Chairman's Statement

Iampleasedtopresentthe-Annual-Reportfor-ProVen-VCTplcfortheyearended-28-February-2011.-

Theyear,to-28-February-2011,sawtheformationofacoalitiongovernmentinthe-UKwhichhasinstigatedanausterityprogrammeaimedatimprovingthe-UK'sbudgetdeficitposition.-Internationaleventshavebeennolessimportant:oilandcommoditypriceinflation,politicalandsocialunrestinthe-Middle-Eastand-North-Africaand-Japan'searthquakeandtsunami,allimpact,directlyorindirectly,onthe-UKconsumer.-

Againstthisunsettledbackground,the-Company's-Ordinary-Sharepoolstillsawanupliftinnetassetvaluepershare-("NAV")overtheyear,producedbystrongperformancesbyanumberofportfoliocompaniesalongwithonehighlyprofitabledisposal.-The-'D'-Sharepoolmadeanumberofnewinvestmentsasitstartedtobuilditsinvestmentportfolio.-

Net asset value

Ordinary-Shares-

At-28-February-2011,the-Company's-Ordinary-Share-NAVstoodat-61.0ppershare.-Thisrepresentsanincreaseof-14.2por-25.9%since-28-February-2010afteradjustingforthedividendsof-8.0pwhichwerepaidduringtheyear.-Thetotalreturn-(NAVplusdividendspaidtodate)to-Ordinary-Shareholdersthatinvestedatthe-Company'slaunchnowstandsat-162.5pper-Ordinary-Share,equivalenttoan-IRRof-6.1%perannum.-

'C'-Shares-

The-NAVofthe-Company's-'C'-Sharesstoodat-76.8pat-28-February-2011,anincreaseof-1.3por-1.6%since-28-February-2010.-Thetotalreturn-(NAVplusdividendspaidtodate)to-'C'-Shareholdersthatinvestedatthelaunchofthe-'C'-Sharepoolnowstandsat-81.6ppershare.-Nodividendswerepaidto-'C'-Shareholdersduringtheyear.-

'D'-Shares-

The-NAVofthe-Company's-'D'-Sharesstoodat-90.0pat-28-February-2011,adecreaseof-2.2por-2.4%since-28-February-2010-.-Nodividendshavebeenpaidto-'D'-Shareholderstodate.-Thefallin-NAVreflectsthefactthatuninvestedcashproducesinsufficientincometocoverrunningcostsandmostrecentinvestmentsarestillvaluedatoriginalcost.-

Portfolio activity and valuation

Ordinary-Sharepool-

The-Ordinary-Sharepoolislargelyfullyinvestedandconsequentlyhadamodestlevelofinvestmentactivityduringtheyear.-However,itdidrealiseasubstantialgainonthedisposalof-Saffron-Media-Group-Limited,exitingatmorethanfivetimesthevalueoftheoriginalinvestment,whichisreflectedintheincreasein-NAV.-

The-Boardreviewedthevaluationsoftheunquotedinvestmentsattheyearendwhichproducedanetunrealisedgainfortheyearof-£1.8million.-Furtherdetailsareprovidedinthe-Investment-Manager's-Reviewandthe-Reviewof-Investments.-

'C'-Sharepool-

The-'C'-Sharepoolmadesevennewandtwofollowoninvestmentsduringtheyearatatotalcostof-£1.9million.-

The-Boardsimilarlyreviewedthevaluationsoftheunquotedinvestmentsinthe-'C'-Shareportfolioattheyearend.-Thenetunrealisedgainfortheyearwas-£1.0millionfortheyear.-

'D'-Sharepool-

The-'D'-Sharepoolmadesevennewinvestmentsduringtheyearatatotalcostof-£1.7million.-Allinvestmentscontinuetobevaluedatlevelsequaltocost,withoneexception,whereasmallprovisionhasbeenmade.-

Furtherdetailsareprovidedinthe-Investment-Manager's-Reviewandthe-Reviewof-Investments.-

Results and dividends

Thetotalreturnonordinaryactivitiesfortheyearwasasfollows:-

	Revenue	Capital	Total
	£'000	£'000	£'000
Ordinary Shares	460	3,141	3,601
'C' Shares	1	183	184
'D' Shares	(43)	(203)	(246)
	418	3,121	3,539

On-27-August-2010,the-Companypaidafinaldividendinrespectoftheyearended-28-February-2010of-8.0pper-Ordinary-Share-(2010:-1.0pper-Ordinary-Share).-

The-Boardhasdeclaredaninterimdividendinrespectoftheyearended-28-February-2011of-6.25pper-Ordinary-Share,payableon-29-July-2011to-Ordinary-Shareholdersontheregisterat-3-June-2011.-The-Boardisnotproposingtopayfinaldividendsinrespectofanyshareclassfortheyearended-28-February-2011.-

Dividend questionnaire

At-Shareholdermeetings,andonotheroccasions,anumberof-Shareholdershaveaskedaboutthe-Company'sdividendpolicy.-Whenthe-Companyfirstbegantomakesubstantialprofitsontherealisationofinvestments,itwasthe-Board'spolicytopaymostoftheseprofitsto-Shareholdersasdividends.-The-Companyalsotooktheopportunitytoabsorbinvestmentlossesintodistributablereservescreatedfromthecancellationofsharepremiumaccountsinordertomaximisethedividendspaidunderthispolicy.-Thisapproachwasthoughttobebeneficialtoall-Shareholdersbecausetheabsenceofawellestablishedsecondarymarketfor-VCTshareholdersmeansthatdividendsareaneffectivewaytogeneratecashreturnstoallinvestors,withoutinvestorshavingtosellsharesatadiscounttonetassetvalue.-Additionally,-Shareholderswhotookadvantageofdeferralreliefoncapitalgainsthatwasavailableon-VCTsubscriptionspriorto-5-April-2004potentiallyfacecrystallisingasignificanttaxchargeiftheywishtodisposeofsomeoralloftheirshares.

Morerecentlythe-Boardhassoughttoprovideamoreregulardividendstreamto-Shareholdersbuttheyarestillpaidfromgrossrealisedgainswithoutnecessarilyoffsettingrealisedlossesandallothercosts.-Theconsequenceofthedividendpaymentsisthereforethat,formost-Ordinary-Shareholders,the-NAVhasfallenbelowtheinitialsubscriptionpriceoftheshares.-The-Company'sperformanceincentivescheme,setoutinmoredetailinthe-Directors'-Reportonpage-27,paysincentivefeesbasedondividendspaidto-Shareholders,providedcertainhurdlesareachieved.-Inrespectofdividendspaidoutofrealisationsfromthe-Ordinary-Sharepool,thesehurdleshavebeenmetbecausehistoricallythe-Ordinary-Sharepoolhasbeenverysuccessful.-The-Managerthereforecurrentlyreceivesanincentiveonalldividendspaidfromrealisationsfromthispool,althoughthefallinnetassetvalueafterthedividendpaymentmeansthatitsmanagementfeeisreduced.-

Inordertotrytogauge-Shareholders'viewsondividendpolicy,-Ihavearrangedforaquestionnairetobeprepared.-Thequestionnaireasksasmallnumberofquestionsrelatedtodividendsandshouldgivethe-Boardanindicationofwhether-Shareholderswouldpreferthe-Companytocontinuewiththesamepolicyorforadifferentapproachtobeconsidered.-Thequestionnaireisbeingsentwiththe-Annual-Reportand-Iwouldbeverygratefulifyouwouldtakeafewminutestocompleteitandreturnitintheenvelopeprovided.-

New fundraisings

The-Linked-'D'-Share-Offerlaunchedwith-ProVen-Growthand-Income-VCTplcin-November-2009andclosedon-29-October-2010havingraisedatotalofapproximately-£2.6millionforthe-Company.-The-Companyalsoundertookasmall-Ordinary-Share-TopUp-Offeratthesametimewith-ProVen-Growthand-Income-VCTplcand-ProVen-Health-VCTplcwhichraised-£0.7million.-

On-11-January-2011,the-Companylaunchedafurther-Ordinary-Share-TopUp-Offerseekingtoraiseuptoapproximately-£1.5million.-Iampleasedtoreportthattheofferhasnowclosedafterbeingfullysubscribed.-

Share buybacks

Inordertoensureliquidityinthemarketinthe-Company'sshares,the-Companyhasoperatedapolicyofbuyinginitsownsharesthatbecomeavailableinthemarket.-

Chairman's Statement (continued)

Share buybacks (continued)

Duringtheyear,the-Companyrepurchased-524,829-Ordinary-Sharesforcancellationatanaveragepriceof-47.4ppershare,-56,375-'C'-Sharesforcancellationatanaveragepriceof-66.8ppershareand-55,698-'D'-Sharesforcancellationatanaveragepriceof-91.0ppershare.-

The-Boardintendstocontinuetomakepurchasesofitsshareswhentheybecomeavailableinthemarketandhasacurrentpolicyofpurchasing-Ordinary-Sharesand-'C'-Sharesatapriceequivalenttoa-10%discounttothelatestpublished-NAVandata-5%discountinrespectof-'D'-Sharesinaccordancewiththepoliciessetoutintherelevantprospectuses.-

Aspecialresolutiontoallowthe-Boardtocontinuetopurchasesharesforcancellationwillbeproposedattheforthcoming-AGM.-

Annual General Meeting

The-Annual-General-Meeting-("AGM")ofthe-Companywillbeheldin-The-Forest-Roomat-The-Hospital-Club,-24-Endell-Street,-Covent-Garden,-London-WC2H-9HQat-10:30a.m.on-24-August-2011.-Noticeofthemeetingisattheendofthisdocument.-

Fouritemsofspecialbusinesswillbeproposedatthe-AGM,oneresolutioninrespectofsharebuybacks,oneresolutionamendingthe-Articlesof-Association-(asdescribedinthe-Reportofthe-Directors)andtworesolutionsinconnectionwithauthorityforthe-Directorstoallotshares.-

Shareholder event

Iwouldliketodraw-Shareholders'attentionto-Proven-VCT'sannualshareholderpresentationwhichwillbeheldon-Wednesday-2-November-2011atthe-Royal-Instituteof-British-Architects,-66-Portland-Place,-London-W1B-1AD.-Thisprovides-Shareholderswithanopportunitytomeetthe-Investment-Managerand,additionally,toheardirectlyfromsomeoftheportfoliocompaniesandtomeetother-VCTshareholders.-Aformalinvitationwillbesentto-Shareholdersshortly.-Thecorrespondingeventin-2010wasverysuccessfuland-Ilookforwardtowelcomingyoutothisyear'sevent.-

Outlook

Theperformanceofthe-Ordinary-Sharepoolovertheyearhasfurtherdemonstratedtherewardsthatcanbedeliveredbyinvestmentsincertainnichesectorsastheymature.-Thenewmediasectorisoneinwhichthe-Companyhasareasonablelevelofexposureandonewherethe-Managerhasasignificantamountofexperience.-Althoughtheeconomicoutlookremainsuncertainandsomeportfoliocompanieswillcontinuetofacemanychallengespresentedbytherecession,othersoperateinsectorswhicharenotsodirectlyaffectedbythegeneraleconomicconditionsorhavebeenresilientenoughtocontinuetomakeprogress.-Webelievethesegivethe-Ordinary-Sharepoolthepotentialtodeliverfurthergoodreturnsto-Shareholders.-

Althoughthe-'C'-Sharepoolhassufferedsomeearlylossesandtheinvestmentsaregenerallylessmaturethanthoseinthe-Ordinary-Sharepool,thereishopethatthefallin-NAVwillbemadeupinthefuture.-

The-'D'-Shareportfolioisstillintheearlystagesofbeingbuiltandweexpecttoseeasignificantlevelofnewinvestmentactivityovertheforthcomingyear.-The-Managerreportsreasonablystrongdealflowandtheongoinglackofappetitebythebankstolendtosmallbusinessesislikelytocontinuetoproduceadditionalopportunities.-Aswiththe-Ordinary-Sharepool,the-Boardbelievesthatabalancedportfoliowithareasonablelevelofexposuretoqualityyoungbusinessesinthenewmediaandsimilarsectorscan,inthemediumterm,producehealthyreturnstoinvestors.-

Lookingfurtherahead,inlinewiththeplanssetoutatthelaunchofthe-'C'-Shares,the-Companyintendstoundertakeapartialtenderofferinrespectofthe-'C'-Sharesinthefirsthalfof-2012.-Followingthis,the-Ordinary-Sharepooland-'C'-Sharepoolwillbemerged.-The-Boardwillprovidefurtherdetailsnearerthetime.-

Andrew-Davison-Chairman-30-June-2011

Investment Manager's Review

Introduction

Beringeaisaspecialistventurecapitalmanagementcompany,whichhasbeenestablishedfor-25yearsandmanagesover-\$400minthe-UKandthe-USA.-Inthe-UK,-Beringeahasadedicatedteamfocusedonmanaging-£85macrossfour-VCTs.-Proven-VCTplchasbeenmanagedby-Beringeasinceitsinceptionin-2000.-

The-Companycurrentlyhasthreeshareclasses:-Ordinary-Shares,-'C'-Sharesand-'D'-Shares.-Thesharepoolsareinitiallykeptasseparatepoolsofassets.-The-Ordinary-Shareand-'C'-Sharepoolsareduetomergein-2012followingapartialtenderofferto-'C'-Shareholders;the-'D'-Shareswillcontinueasaseparatepool.-

Beringea's investment approach

Weendeavourtogive-Shareholdersaninvestmentinadiverseportfolioofprivatelyheldbusinessesledbyentrepreneurialmanagementthatarelikelytoachieveaboveaveragereturns.-

Inevaluatingsuitablebusinesses,weseektomitigateriskandimprovetheprospectofhigherreturnsbyinvestinginestablishedandgrowingbusinessesinsectorswheretherewillbeabovemarketaveragespend.-Suchbusinesseswilltypicallyhave-"bestinclass"traitsandtheexpectationtoultimatelyattractasubstantialpremiumonexit.-

Findingsuchbusinessesandhelpingthemprosperanddeliverasuccessfulreturnforinvestorsarethekeychallengesfor-Beringea.-Wedothisbynurturingourowntalentedinvestmentteamwhoeachhavestrongandspecificsectorexpertise,agoodnetworkofdealflowprovidersandaproventrackrecordofinvestmentsuccessacrossthe-UKandthe-USA.-

Wehopeyouwillbeabletojoinusatthe-Shareholdereventon-Wednesday-2-November-2011asmentionedinthe-Chairman's-Statement,wherewehopetodemonstrateourinvestmentapproachandgiveyoutheopportunitytomeetandquestionboththeinvestmentteamand-CEOsof-VCTportfoliocompanies.-

Review of the year

The-Company'sinvestmentrateincreasedduringtheyearwithatotalof-£4.6million-(2010:-£3.0million)beinginvestedacrossthethreesharepools,including-£3.4millioninsixinvestmentsthatwerenewtotheportfolio.-Inaddition,wewerealsoverypleasedtorealisethe-Ordinary-Sharepool'sinvestmentin-Saffron-Media-Group,generatingagrossreturnof-£2.8million,ormorethanfivetimestheoriginalinvestmentcost,inlessthanfouryears.-

Ordinary Share pool – portfolio activity and valuation

At-28-February-2011,the-Company's-Ordinary-Shareinvestmentportfoliocomprisedholdingsin-16companies,ofwhich-13wereunquotedandthreequoted,atavaluationof-£11.0millionandoriginalacquisitioncostof-£10.4million.-Inaddition,the-Ordinary-Sharepoolhadcashandliquidityfundsof-£4.9million,-£2.4millionofthisresultingfromthesaleof-Saffronshortlybeforetheyearend.-

The-Ordinary-Sharepoolislargelyfullyinvestedbutonenewinvestmentinhealthyeatingchain,-Tossed,wasmadeearlyinthe-Company'sfinancialyearandafurther-£0.5millionwasinvestedin-Espresso,-Overtisand-Campden-Media.-Espressocontinuestoaccountforasignificantproportionofthe-Ordinary-Shareventurecapitalportfolio-(30%byvalue)andisperformingwell,particularlyinthe-USmarketwhichitistargetingalongsidepartner-Defined-Learning-Inc.-Goodprogresswasalsomadeacrossanumberofothercompaniesincluding-Think,-Donatantonioand-Fjordnet.-

Thehighlightforthe-Ordinary-Shareportfoliowas,however,thedisposalof-Saffron-Media-Group.-Saffron,adeveloperofvideodeliveryplatformswassoldtoglobalsmartphoneproducer-HTCof-Taiwan.-The-Companyinvested-£480,000in-Saffronin-2007,alongside-ProVen-Growthand-Income-VCT,generatingagrossreturnofmorethanfivetimescost.-

'C' Share pool – portfolio activity and valuation

At-28-February-2011,the-Company's-'C'-Shareinvestmentportfoliocomprisedholdingsin-19unquotedcompaniesatavaluationof-£8.8millionandoriginalacquisitioncostof-£7.8million.-Inaddition,the-'C'-Sharepoolhadcashandliquidityfundsof-£2.3million.-

Investment Manager's Review (continued)

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duringtheyearincludinginvestmentsincluded-SpeedTrap,usersinteractwithjewellerybrandwithhigh-Knightleyand-Cheryl-Cole;comparisonservice,largelyinamaturation-Heritage-Partnersataloss-The-Vending-Corporationresultinglossestreatedasaccountingpolicy.-

Digitalmediaagency,-Fjordnet,accountsfor-16%,byvalue,ofthe-'C'-Shareventurecapitalportfolioandcontinuestoperformwell.-Donatantonio-(13%byvalueoftheventurecapitalportfolio),thesupplierof-Mediterraneanfoods,isnowshowingsteadygrowthfollowingearlydifficultiescoincidingwiththefirststagesofthefinancialcrisisandisnowvaluedabovecost.-

Furtherinvestmentstotalling-£393,000weremadeaftertheyearendin-Campden-Media,-Overtis-Groupand-SenseLogix.-

Subsequenttotheyearend,in-May-2011,the-Companyrealiseditsinvestmentin-Steak-Media-Limitedinasaletoa-Japanesemediaagencynetwork,-Dentsu.-Thisdisposalresultedinaninitialprofitovercostwiththepossibilityoffurtherearnoutproceedsinthethreeyearsfollowingthesale.-

'D' Share pool – portfolio activity and valuation

The-'D'-Sharepoolmadeitsfirstinvestmentsduringtheyearand,at-28-February-2011,-£1.7millionhadbeeninvestedinseveninvestments,sixofwhichwerenewtothe-Companyasawhole.-The-'D'-Shareportfolioalsohadcashandliquidityfundsof-£5.8millionattheyearend.-

MatsSoftaccountedfor-£650,000,or-40%,ofthe-£1.7millioninvested;thecompanyprovidespowerfulandinnovativewebbasedworkflowandcommunicationssolutions,allowingcompaniesandorganisationstodriveefficiencygains,costreductionsandserviceimprovementsacrossawholehostofbusinessprocessesandacrossarangeofbusinesssectors.-Investmentswerealsomadein-SpeedTrap,-Tossed,-Monica-Vinader,-Cinergyand-SenseLogix.-SenseLogixdesignsandmanufacturessystemstomanageenergyusageincommercialandbusinesspremisesandfurtherfollowonfundingwasprovidedaftertheyearend.-

Outlook

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Theoutlookforthe-UKeconomyremainschallenging.-Modest-GDPgrowthinthefirstthreequartersof-2010wasfollowedbyafallin-GDPinthefourthquarterof-2010andonlymodestgrowthinthefirstquarterof-2011.-Thatsaid,thedisposalof-Saffrondemonstratesthatstrongreturnscanbegeneratedfromqualitybusinesses.-Inanagewhencustomersexpectmorefromthebusinessestheyinteractwith,webelievethatanumberoftheportfoliocompaniesarewellpositionedforfuturegrowthbytargetingefficiencysavingsand/orimprovingthecustomerexperiencethroughmakingthebestuseofnewordevelopingtechnologies.-

Beringea-LLP-30-June-2011

Investmentactivityduringtheyearissummarisedasfollows:-

Additions	Cost
	£'000
Ordinary Share pool
Tossed Limited	468
Campden Media Limited	314
Overtis Group Limited	143
Espresso Group Limited	59
	984
'C' Share pool
SpeedTrap Holdings Limited	470
Tossed Limited	345
Overtis Group Limited	242
Monica Vinader Limited	224
Steak Media Limited*	181
Cinergy International Limited*	170
MatsSoft Limited**	125
SenseLogix Limited	112
Breeze Tech Limited	16
	1,885
'D' Share pool
MatsSoft Limited**	650
SpeedTrap Holdings Limited	300
Fjordnet Limited*	276
Tossed Limited	183
Monica Vinader Limited	138
Cinergy International Limited	115
SenseLogix Limited	69
	1,731
Total	4,600

Disposals				(Loss)/gain	Total realised
		Market value	Disposal	against	(loss)/gain
	Cost	at 01/03/10	proceeds	cost	during the year
	£'000	£000	£'000	£'000	£'000
Ordinary Share pool
Saffron Media Group Limited	480	637	2,526	2,046	1,889
Overtis Group Limited**	429	429	429
Ashford Colour Press Limited	125	125	125
Sports Holdings Limited	73	73	73
Think Limited	68	68	68
	1,175	1,332	3,221	2,046	1,889
'C' Share pool
Path Group Limited	1,000	495		(1,000)	(495)
Overtis Group Limited**	342	342	342
Think Limited	67	67	67
Heritage Partners Limited	900	248	98	(802)	(150)
The Vending Corporation Limited	1,012			(1,012)
	3,321	1,152	507	(2,814)	(645)
Total	4,496	2,484	3,728	(768)	1,244

*-Nonqualifyinginvestment-**-Partiallynonqualifyinginvestment-

Alloftheaboveinvestments,withtheexclusionof-Think-Limited,werealsoheldby-ProVen-Growthand-Income-VCTplc.-

Investment Portfolio – Ordinary Share Pool

as at 28 February 2011

Ordinary Share portfolio of investments

Thefollowinginvestmentswereheldat-28-February-2011:-

movement % of Cost Valuation in year portfolio £'000 £'000 £'000 by value Top ten venture capital investments (by value) Espresso Group Limited 1,317 3,331 213 21.0% SPC International Limited 1,618 1,660 956 10.4% Eagle Rock Entertainment Group Limited 1,010 1,310 (424) 8.2% Campden Media Limited 1,289 1,170 392 7.4% Think Limited 403 741 338 4.7% Donatantonio Limited 582 728 349 4.6% Tossed Limited 468 468 2.9% Pilat Media Global plc 173 436 130 2.7% Ashford Colour Press Limited 500 433 66 2.7% Fjordnet Limited 200 346 58 2.2% 7,560 10,623 2,078 66.8% Other venture capital investments 2,835 393 (257) 2.5% Total venture capital investments 10,395 11,016 1,821 69.3% Liquidity funds 3,400 21.4%





















	Cash at bank and in hand	1,464	9.3%

Total Ordinary Share investments 15,880 100.0%

Otherventurecapitalinvestmentsat-28-February-2011comprise:-Overtis-Group-Limited**,-UBC-Media-Groupplc,-Sports-Holdings-Limited*,-Coolabiplc**and-Baby-Innovations-S.A.t/a-Steribottle*.-

*-Nonqualifyinginvestment-

**-Partiallynonqualifyinginvestment-

Withtheexclusionof-Pilat-Media-Globalplc,-UBC-Media-Groupplcand-Coolabiplc,whicharequotedon-AIM,allventurecapitalinvestmentsareunquoted.-

Alloftheaboveinvestments,withtheexclusionof-Think-Limited,werealsoheldby-ProVen-Growthand-Income-VCTplc.-

Allventurecapitalinvestmentsareregisteredin-Englandand-Wales,withtheexceptionof-Baby-Innovations-S.A.,whichisregisteredin-Madeira.-

Review of Investments – Ordinary Share Pool

as at 28 February 2011

Furtherdetailsofthetenlargestinvestments-(byvalue)aresetoutbelow:-Espresso-Group-Limited-

Cost:		£1,317,000	Valuation at 28/02/11:	£3,331,000
Investment comprises:			Valuation at 28/02/10:	£3,059,000
Ordinary shares:		£681,000	Valuation method:	Earnings multiple
'A' ordinary shares:		£574,000
'B' ordinary shares:		£62,000

Audited accounts:	31/07/10	31/07/09	Dividend income:
Turnover:	£13.3m	£15.2m	Loan note income:
Loss before tax:	£(3,000)	£192,000	Proportion of equity held:	20.1%
Net assets:	£6.5m	£6.8m	Diluted equity:	19.4%

Espresso-Groupdevelopsanddeliversmultimediaeducationcontentforschools.-Over-10,000primaryschools,equaltoapproximately-60%ofthe-UKprimaryschoolmarket,nowsubscribetoitsflagship-"Espressofor-Schools"product.-Followingtheacquisitionof-4-Learning,theeducationalbusinessof-Channel-4,thecompanyhasexpandedintothe-UKsecondaryschoolsmarketwithencouragingresults.-Opportunitiesexistforexpansionintoothergeographicalterritoriesandthecompanyhasrecentlylaunchedaserviceinthe-United-States.-

www.espresso.co.uk

SPC-International-Limited-

Cost:		£1,618,000	Valuation at 28/02/11:	£1,660,000
Investment comprises:			Valuation at 28/02/10:	£705,000
Ordinary shares:		£195,000	Valuation method:	Earnings multiple
'A' Ordinary shares		£190,000
'B' Ordinary shares:		£7,000
Loan stock:		£1,226,000

Audited accounts:	30/09/09	30/09/08	Dividend income:
Turnover:	£12.7m	£9.7m	Loan note income:	£152,000
Loss before tax:	£(366,000)	£108,000	Proportion of equity held:	22.6%
Net assets:	£2.8m	£3.2m	Diluted equity:	22.6%

SPCspecialisesintherepairandrefurbishmentofelectronicequipmentinthe-IT,bankingandretailsectors.-ProVen-VCTplcinvested-£518,000in-June-2003,and-£195,000in-November-2004.-Afurther-£934,000wasinvestedin-March-2008.-£863,000oftheinvestmentisintheformofaloansecuredonthecompany'spropertyassets.-

www.spcint.com

Eagle-Rock-Entertainment-Group-Limited-

Cost:		£1,010,000	Valuation at 28/02/11:	£1,310,000
Investment comprises:			Valuation at 28/02/10:	£1,734,000
Ordinary shares:		£101,000	Valuation method:	Earnings multiple
Preference shares:		£378,000
Loan stock:		£531,000

Audited accounts:	31/12/09	31/12/08	Dividend income:	£13,230
Turnover:	£27.3m	£25m	Loan note income:	£42,374
Loss before tax:	£(643,000)	£(2.6)m	Proportion of equity held:	10.5%
Net assets:	£16.9m	£17.3m	Diluted equity:	10.5%

Eagle-Rockisaleadingindependentproducer,publisheranddistributorofmusicprogrammingfortelevisionand-DVD,comprisingliveconcertsanddocumentaries.-Eaglehasanextensivecatalogueofaudiovisual-IPR,whichisavailableformultimediaexploitationincludingbroadcast,broadbandandtelephony.-

www.eaglerockent.com

Review of Investments – Ordinary Share Pool (continued)

Campden-Media-Limited-

Cost:		£1,289,000	Valuation at 28/02/11:	£1,170,000
Investment comprises:			Valuation at 28/02/10:	£463,000
Ordinary shares:		£195,000	Valuation method:	Price of recent
				investment
'A' ordinary shares:		£2,000
Loan stock:		£1,092,000

Audited accounts:	31/12/09	31/12/08	Dividend income:
Turnover:	£5.3m	£6.7m	Loan note income:	£320,588
Loss before tax:	£(0.3)m	£(0.7)m	Proportion of equity held:	11.0%
Net assets:	£1.3m	£1.5m	Diluted equity:	11.0%

Campden-Mediaisamagazinepublisherandeventorganiserinthehealthcareandprivatewealthmanagementsectors.-Thecompanypublishesarangeoftitles,manyofwhichareendorsedbytherelevantprofessionalbodies.-Thebusinesshasastrongandprovenmanagementteamandoperatesinsectorswhichareregardedasmoreresilienttoadversemacroeconomicmovements.-

www.campdenmedia.com

Think-Limited-

	£403,000	Valuation at 28/02/11:	£741,000
comprises:		Valuation at 28/02/10:	£470,000
	£75,000	Valuation method:	Earnings multiple
	£125,000
	£203,000

31/10/09	31/10/08	Dividend income:
Unpublished		Loan note income:	£13,380
Unpublished		Proportion of equity held:	14.5%
£0.6m	£1m	Diluted equity:	14.5%
		information information

Think-Limitedisanawardwinningdigitalmediaagencywithoperationsin-Newcastleand-London.-Thecompanyhasdevelopedareputationfordeliveringdigitalsolutionsthatcombineexcellentcreativity,cuttingedgetechnologyandanimpressiveunderstandingoftheuserexperience.-Itsclientsincludethe-BBC,-Sage,-Lloydsand-Blackberry.-

www.think.eu

Donatantonio-Limited-

Cost:		£582,000	Valuation at 28/02/11:	£728,000
Investment comprises:			Valuation at 28/02/10:	£379,000
Ordinary shares:		£7,000	Valuation method:	Earnings multiple
'A' ordinary shares:		£89,000
Preference shares:		£19,000
Loan stock:		£467,000

Audited accounts:	31/01/11	31/01/10	Dividend income:
Turnover:	£18.7m	£17.9m	Loan note income:
Profit/loss before tax:	£87,000	£(150,000)	Proportion of equity held:	10.3%
Net liabilities:	£(156,000)	£(159,000)	Diluted equity:	10.3%

Donatantonio-Limitedisthe-UKmarketleaderintheimportanddistributionofpremiumquality,authentic-Mediterraneaningredientstothe-UKfoodmanufacturingandfoodservicessectors.-Donatantonio'sstateoftheartfacilitiesallowittoprovidecertificationoffoodqualityoncethegoodsreachthe-UK.-Thismeansthattheproductssuppliedtofoodmanufacturersarereadyforimmediateincorporationintofinishedproductsanddonotrequirefurthertestingbythemanufacturerbeforeproductioncanbegin.-

www.donatantonio.com

Tossed-Limited-

Cost:	£468,000	Valuation at 28/02/11:	£468,000
Investment comprises:		Valuation at 28/02/10:	£n/a
Ordinary shares:	£156,000	Valuation method:	Price of recent
			investment
Preference shares:	£156,000
Loan stock:	£156,000

Audited accounts:	No accounts filed	Dividend income:
		Loan note income:
		Proportion of equity held:	10.0%
		Diluted equity:	10.0%

Tossedoperatesaseriesoftakeawayfocusedhealthyeatingestablishments.-Therearecurrentlysevenlocationsinoperation,includingtwofranchiselocations,allbasedin-London.-ProVen-VCTinvested-£1.5millionalongside-ProVen-Growth-&-Income-VCTplcin-April-2010.-

Cost:		£173,000	Valuation at 28/02/11:	£436,000
Investment comprises:			Valuation at 28/02/10:	£307,000
Ordinary shares:		£173,000	Valuation method:	Bid price

Audited accounts:	31/12/09	31/12/08	Dividend income:
Turnover:	£19.3m	£17.8m	Loan note income:	n/a
Profit before tax:	£0.6m	£(2.4)m	Proportion of equity held:	1.5%

Pilat-Mediaisan-AIMquotedcompanysupplyingbusinessmanagementsoftwaretobroadcastersworldwide,including-BSkyBand-Five-(UK),-Discovery-Communications-(US),-Network-Ten-(Australia)andthe-South-African-Broadcasting-Corporation.-ProVen-VCTfirstinvestedinthecompanyin-2002onadmissionto-AIMandhassincemadeanumberofpartialdisposalsrecoupingitsinitialinvestment.-

Cost:		£500,000	Valuation at 28/02/11:	£433,000
Investment comprises:			Valuation at 28/02/10:	£492,000
'A' ordinary shares:		£133,000	Valuation method:	Earnings multiple
Loan stock:		£367,000

Audited accounts:	31/03/10	31/03/09	Dividend income:
Turnover:	£12.5m	£12.5m	Loan note income:	£48,403
Profit before tax:	£211,000	£44,000	Proportion of equity held:	23.5%
Net assets:	£2.2m	£2m	Diluted equity:	23.5%

Ashford-Colour-Press-Limitedisamediumsizedprintingbusiness,basedin-Hampshire,specialisingintheeducationalsector.-Beringealedthe-£5millionmanagementbuyoutofthecompanyin-September-2002inwhich-ProVen-VCTplcinvestedalongside-ProVen-Growth-&-Income-VCTplc.-Thebusinessislongestablishedandhasastrongoperationalmanagementteamwithsignificantexperienceintheprintingbusiness.-

Pilat-Media-Globalplc-

Ashford-Colour-Press-Limited-

www.ashfordcolourpress.co.uk

Review of Investments – Ordinary Share Pool (continued)

Fjordnet-Limited-Cost: £200,000 Valuationat-28/02/11:- £346,000 Investmentcomprises: Valuationat-28/02/10:- £288,000 Ordinaryshares: £100,000 Valuationmethod:- Earningsmultiple Preferenceshares:- £100,000 Auditedaccounts: 31/12/09 31/12/08 Dividendincome:- Turnover: £11.9m £7m Loannoteincome: n/a Profitbeforetax: £1.4m £1m Proportionofequityheld:- 2.2% Netassets: £3.4m £1.9m Dilutedequity:-1.6%

Fjordisanestablisheddigitaldesignagencyinthetelecommunicationsandmediasectors.-Ithasworkedonmarketleadingflagshipprojects-includingprojectsforthe-BBC,-Nokia,-Orange,-Swisscomand-Yahoo!.-Itwasinstrumentalinbringingthehugelysuccessfulaward winning-BBCiPlayertomobile.-Thecompanyhasofficesin-London,-Helsinki,-Berlin,-New-Yorkand-Madrid.-

www.fjordnet.com

Referencestothelatestaccountsrefertothelatestannualreportandaccountspublishedbytheinvesteecompanyfollowingthedateofinvestmentby-ProVen-VCTplc.-

Portfoliocompanyfinancialinformationisbasedonpublicallyavailableinformationfiledat-Companies-Houseinthe-UK-(orequivalentlocationsinoverseasjurisdictions).-Certaininformationmaynotberequiredtobefiled,dependent,forexample,onthecompany'ssize,and,intheinterestsofportfoliocompanyconfidentiality,isnotdisclosedhere.-

Analysis of investments by commercial sector

Thesplitofthe-Ordinary-Sharepoolventurecapitalinvestmentsbycommercialsector-(byvalueandcostat-28-February-2011)issummarisedasfollows:-

Spreadof-Investmentsby-Sector- Ordinary-Share-Pool

Analysis of investments by investment type

The following shows the split of the- Ordinary- Share pool's investment portfolio by type of instrument held at- 28-February-2011:-

	Portfolio split
	28 Feb 2011
VCT qualifying investments	63.2%
Nonqualifying investments (including cash at bank and liquidity funds)	36.8%
	100.0%

Investment Portfolio – 'C' Share Pool

as at 28 February 2011

'C' Share portfolio of investments

Thefollowinginvestmentswereheldat-28-February-2011:-

			Valuation
			movement	% of
	Cost	Valuation	in year	portfolio
	£'000	£'000	£'000	by value
Top ten venture capital investments (by value)
Fjordnet Limited	800	1,384	232	12.4%
Donatantonio Limited**	885	1,107	531	10.0%
Lazurite Limited	1,000	968	(32)	8.7%
Think Limited**	403	741	338	6.7%
Charterhouse Leisure Limited	700	679	(186)	6.1%
SPC International Limited	403	605	208	5.4%
Steak Media Limited**	456	531	187	4.8%
SpeedTrap Holdings Limited	470	470		4.2%
Chess Technologies Limited	600	455	(204)	4.0%
Tossed Limited	345	345		3.1%
	6,062	7,285	1,074	65.4%

Other venture capital investments	1,755	1,548	(87)	13.9%

Total venture capital investments	7,817	8,833	987	79.3%

Liquidity funds		1,350		12.1%
Cash at bank and in hand		950		8.6%

Total 'C' Share investments		11,133		100.0%

Otherventurecapitalinvestmentsat-28-February-2011comprise-Overtis-Group-Limited**,-Eagle-Rock-Entertainment-Group-Limited*,-Blismobile-Limited,-Monica-Vinader-Limited,-Cinergy-International-Limited,-Dianomi-Limited,-SenseLogix-Limited,-MatsSoft-Limited**and-Isango!-Limited.-

*-Nonqualifyinginvestment-

**-Partiallynonqualifyinginvestment-

Allventurecapitalinvestmentsareunquotedunlessotherwisestated.-

Alloftheaboveinvestments,withtheexclusionof-Think-Limited,werealsoheldby-ProVen-Growthand-Income-VCTplc.-

Allventurecapitalinvestmentsareunquotedandareregisteredin-Englandand-Wales.-

Review of Investments – 'C' Share Pool

Fjordnet-Limited-

	£800,000	Valuation at 28/02/11:	£1,384,000
comprises:		Valuation at 28/02/10:	£1,153,000
	£400,000	Valuation method:	Earnings multiple
	£400,000

31/12/09	31/12/08	Dividend income:
£11.9m	£7m	Loan note income:	n/a
£1.4m	£1m	Proportion of equity held:	8.4%
£3.4m	£1.9m	Diluted equity:	6.5%

www.fjordnet.com

Donatantonio-Limited-

Cost:		£885,000	Valuation at 28/02/11:	£1,107,000
Investment comprises:			Valuation at 28/02/10:	£577,000
Ordinary shares:		£11,000	Valuation method:	Earnings multiple
'A' ordinary shares:		£135,000
Preference Shares:		£29,000
Loan stock:		£710,000
Audited accounts:	31/01/141	31/01/10	Dividend income:
Turnover:	£18.7m	£17.9m	Loan note income:
Loss before tax:	£(87,000)	£(150,000)	Proportion of equity held:	15.6%
Net (liabilities)	£(156,000)	£(159,000)	Diluted equity:	15.6%

www.donatantonio.com

Lazurite-Limited-

Cost:	£1,000,000	Valuation at 28/02/11:	£968,000
Investment comprises:		Valuation at 28/02/10:	£1,000,000
Ordinary shares:	£100,000	Valuation method:	Net assets
Loan stock:	£900,000

Unaudited accounts:	31/12/09	Dividend income:
Turnover:	£nil	Loan note income:	£19,993
Loss before tax:	£(37,000)	Proportion of equity held:	24.9%
Net assets:	£64,000	Diluted equity:	24.9%

Lazurite-Limitedwasestablishedtoexploit-VCTqualifyingopportunitiesincompaniesthatownandcreateintellectualproperty,anareainwhichthe-VCThasenjoyedconsiderablesuccess.-Intellectualpropertyownershipisakeydriverforcompanieslookingtoexpandandthe-Investment-Managerbelievesthatthecurrenteconomicclimatewillprovideanumberofinterestingacquisitiontargets.-

Think-Limited-

Cost:		£403,000	Valuation at 28/02/11:	£741,000
Investment comprises:			Valuation at 28/02/10:	£470,000
Ordinary shares:		£75,000	Valuation method:	Earnings multiple
'A' ordinary shares:		£125,000
Loan stock:		£203,000

Audited accounts:	31/10/09	31/10/08	Dividend income:
Turnover:	Unpublished	information	Loan note income:	£13,380
Profit before tax:	Unpublished	information	Proportion of equity held:	14.5%
Net assets:	£0.6m	£1m	Diluted equity:	14.5%

Think-Limitedisanawardwinningdigitalmediaagencywithoperationsin-Newcastleand-London.-The-Companyhasdevelopedareputationfordeliveringdigitalsolutionsthatcombineexcellentcreativity,cuttingedgetechnologyandanimpressiveunderstandingoftheuserexperience.-Itsclientsincludethe-BBC,-Sage,-Lloydsand-Blackberry.-

www.think.eu

Charterhouse-Leisure-Limited-

www.coalgrillandbar.co.uk

SPC-International-Limited-

www.spcint.com

Cost:		£700,000	Valuation at 28/02/11:	£679,000
Investment comprises:			Valuation at 28/02/10:	£865,000
Ordinary shares:		£140,000	Valuation method:	Earnings multiple
Loan stock:		£560,000

Audited accounts:	28/02/10	28/02/09	Dividend income:
Turnover:	£4.9m	£3.3m	Loan note income:	£20,701
Loss before tax:	£(187,000)	£(333,000)	Proportion of equity held:	19.4%
Net assets:	£611,000	£474,000	Diluted equity:	14.7%

Charterhouse-Leisuretradesunderthename-"Coal-Grill-&-Bar",agrowingrestaurantchainprovidinginformaldininganddrinkinginacomfortableandmodernatmosphere.-Thecompanyhasfourbranchesandhasplanstorolloutthechainnationwide.-Thecoremanagementteamdevelopedandranthe-"Ma-Potters"restaurantchain,aformer-ProVen-VCTinvestmentthatwassoldin-2007foratotalreturnofover-2.5timestheinitialinvestment.-

	£403,000	Valuation at 28/02/11:	£605,000
comprises:		Valuation at 28/02/10:	£397,000
	£6,000	Valuation method:	Earnings multiple
	£397,000

30/09/09	30/09/08	Dividend income:
£12.7m	£9.7m	Loan note income:
£(366,000)	£108,000	Proportion of equity held:	1.0%

£2.8m	£3.2m	Diluted equity:	1.0%

SPCspecialisesintherepairandrefurbishmentofelectronicequipmentinthe-IT,bankingandretailsectors.-ProVen-VCTplcinvested-£950,000in-June-2003,and-£223,000in-November-2004.-Afurther-£875,000wasinvestedin-March-2008intheformofaloansecuredonthecompany'spropertyassets.-

Review of Investments – 'C' Share Pool (continued)

Steak-Media-Limited-

Cost:		£456,000	Valuation at 28/02/11:	£531,000
Investment comprises:			Valuation at 28/02/10:	£163,000
Ordinary shares:		£329,000	Valuation method:	Earnings multiple
Preference shares:		£127,000

Audited accounts:	28/02/10	28/02/09	Dividend income:	£19,038
Turnover:	£26.1m	£27.5m	Loan note income:
Loss before tax:	£(69,000)	£(824,000)	Proportion of equity held:	13.1%
Net liabilities:	£(345,000)	£(232,000)	Diluted equity:	13.1%

Steak-Mediaisadigitalmediaagencyspecialisinginsearchenginemarketing-(SEM),mediaplanningandbuying,mobilemarketingandotherintegratedonlinemarketingstrategies.-Thecompanyoperatesin-London,-New-Yorkand-Melbourne.-ProVen-VCTinvested-£275,000in-August-2007andafurther-£181,000in-March-2010.-Thecompanywasacquiredby-Japaneseagencynetwork,-Dentsu,in-May-2011.-

www.steakdigital.co.uk

Cost:		£470,000	Valuation at 28/02/11:	£470,000
Investment comprises:			Valuation at 28/02/10:	£n/a
Ordinary shares:		£182,000	Valuation method:	Price of recent
				investment
Loan stock:		£288,000

Audited accounts:	31/12/09	31/12/08	Dividend income:
Turnover:	Unpublished	information	Loan note income:	£6,004
Profit before tax:	Unpublished	information	Proportion of equity held:	4.7%
Net assets:	£4m	£3.8m	Diluted equity:	4.7%

SpeedTrapisasoftwarecompanyprovidingenterpriseand-Softwareasa-Service-("SaaS")solutionswhichallowscorporatedigitalplatformownerstocapture,analyseandinterpretdigitalinteractionswithusersoftheirplatforms.-Thesoftwarealsoallowsthecustomertomakerealtimedecisionsandtotakeproactiveactionsinresponsetothisinformationviathedigitalplatform.-

Chess-Technologies-Limited-

Cost:		£600,000	Valuation at 28/02/11:	£455,000
Investment comprises:			Valuation at 28/02/10:	£659,000
Ordinary shares:		£300,000	Valuation method:	Earnings multiple
Loan stock:		£300,000

Audited accounts:	30/04/10	30/04/09	Dividend income:
Turnover:	Unpublished	information	Loan note income:	£21,994
Profit before tax:	Unpublished	information	Proportion of equity held:	12.0%
Net assets:	£2.5m	£2.4m	Diluted equity:	11.0%

Chessdesignsandmanufactureselectroopticalsystemsforuseindefenceapplicationsworldwide.-Chess'sleadingedgeengineeringskillsandinhousedevelopmentofinnovativetechnologiesenableittoproduceanextensiverangeofstandardandcustomisedsolutionsforland,seaandairapplications.-

www.chessdynamics.com

Tossed-Limited-

Cost:	£345,000	Valuation at 28/02/11:	£345,000
Investment comprises:		Valuation at 28/02/10:	£n/a
Ordinary shares:	£115,000	Valuation method:	Price of recent investment
Preference shares:	£115,000
Loan stock:	£115,000
Audited accounts:	No accounts filed	Dividend income:
		Loan note income:
		Proportion of equity held:	7.4%
		Diluted equity:	7.4%

Tossedoperatesaseriesoftakeawayfocusedhealthyeatingestablishments.-Therearecurrentlysevenlocationsinoperation,includingtwofranchiselocations,allbasedin-London.-ProVen-VCTplcinvested-£1.5millionalongside-ProVen-Growth-&-Income-VCTplcin-April-2010.-

Referencestothelatestaccountsrefertothelatestannualreportandaccountstobepreparedbytheinvesteecompanyfollowingthedateofinvestmentby-ProVen-VCTplc.-

Thesplitofthe-'C'-Sharepoolventurecapitalinvestmentsbycommercialsector-(byvalueandcostat-28-February-2011)issummarisedasfollows:-

Spreadof-Investmentsby-Sector- 'C'-Share-Pool

Analysis of investments by investment type

Thefollowingshowsthesplitofthe-'C'-Sharepool'sinvestmentportfoliobytypeofinstrumentheldat-28-February-2011:-

	Portfolio split
	28 Feb 2011
VCT qualifying investments	71.9%
Nonqualifying investments (including cash at bank and liquidity funds)	28.1%
	100.0%

Investment Portfolio – 'D' Share Pool

as at 28 February 2011

'D' Share portfolio of investments

Thefollowinginvestmentswereheldat-28-February-2011:-

			Valuation
			movement	% of
	Cost	Valuation	in year	portfolio
	£'000	£'000	£'000	by value
Venture capital investments (by value)
MatsSoft Limited**	650	650		8.7%
SpeedTrap Holdings Limited	300	300		4.0%
Fjordnet Limited*	276	186	(90)	2.5%
Tossed Limited	183	183		2.5%
Monica Vinader Limited	138	138		1.8%
Cinergy International Limited	115	115		1.5%
SenseLogix Limited	69	69		0.9%
Total venture capital investments	1,731	1,641	(90)	21.9%

Liquidity funds		4,450		59.4%
Cash at bank and in hand		1,400		18.7%
Total 'D' Share investments		7,491		100.0%

*-Nonqualifyinginvestment-

**-Partiallynonqualifyinginvestment-

Allventurecapitalinvestmentsareunquotedunlessotherwisestated.-

Alloftheaboveinvestmentswerealsoheldby-ProVen-Growthand-Income-VCTplc.-

Allventurecapitalinvestmentsareunquotedandareregisteredin-Englandand-Wales.-

Review of Investments – 'D' Share Pool

MatsSoft-Limited-

Cost:		£650,000	Valuation at 28/02/11:	£650,000

Investment comprises:			Valuation at 28/02/10:	£n/a
Ordinary shares:		£197,000	Valuation method:	Price of recent
				investment
'A' ordinary shares:		£236,000
Loan stock:		£217,000

Audited accounts:	31/12/09	31/12/08	Dividend income:
Turnover:	Unpublished	information	Loan note income:	£226
Profit before tax:	Unpublished	information	Proportion of equity held:	10.0%
Net assets:	£192,000	£5,000	Diluted equity:	10.0%

MatsSoftisasoftwarecompanyspecialisingindevelopinghosted-Softwareasa-Service-("SaaS")businessprocessmanagement,workflowandcustomerandcommunicationssolutions,completewithacomprehensivesuiteofmanagementinformationandconfigurationtools.-MatsSofthasbuiltastrongreputationbyprovidingsolutionsforenterprisecustomersthatdeliverdramaticprocessingefficiencieswhilstkeepingcustomersatisfactionhighthroughproactivecommunication.-

www.matssoft.co.uk-

SpeedTrap-Holdings-Limited-

www.speedtrap.com-

Fjordnet-Limited-

www.fjordnet.com

Cost:		£300,000	Valuation at 28/02/11:	£300,000
Investment comprises:			Valuation at 28/02/10:	£n/a
Ordinary shares:		£116,000	Valuation method:	Price of recent
				investment
Loan stock:		£184,000

Audited accounts:	31/12/09	31/12/08	Dividend income:
Turnover:	Unpublished	information	Loan note income:	£3,838
Profit before tax:	Unpublished	information	Proportion of equity held:	3.1%
Net assets:	£4m	£3.8m	Diluted equity:	3.1%

SpeedTrapisasoftwarecompanyprovidingenterpriseand-SaaSsolutionswhichallowscorporatedigitalplatformownerstocapture,analyseandinterpretdigitalinteractionswithusersoftheirplatforms.-Thesoftwarealsoallowsthecustomertomakerealtimedecisionsandtotakeproactiveactionsinresponsetothisinformationviathedigitalplatform.-

Cost:		£276,000	Valuation at 28/02/11:	£186,000
Investment comprises:			Valuation at 28/02/10:	£n/a
'A' ordinary shares:		£276,000	Valuation method:	Earnings multiple

Audited accounts:	31/12/09	31/12/08	Dividend income:

Turnover:	£11.9m	£7m	Loan note income:
Profit before tax:	£1.4m	£1m	Proportion of equity held:	1.9%
Net assets:	£3.4m	£1.9m	Diluted equity:	1.2%

Review of Investments – 'D' Share Pool (continued)

Tossed-Limited-

www.tosseduk.com

Monica-Vinader-Limited-

Cost:	£183,000	Valuation at 28/02/11:	£183,000
Investment comprises:		Valuation at 28/02/10:	£n/a
Ordinary shares:	£61,000	Valuation method:	Price of recent
			investment
Preference shares:	£61,000
Loan stock:	£61,000

Audited accounts:	No accounts filed	Dividend income:
		Loan note income:
		Proportion of equity held:	3.9%
		Diluted equity:	3.9%

Tossedoperatesaseriesoftakeawayfocusedhealthyeatingestablishments.-Therearecurrentlysevenlocationsinoperation,includingtwofranchiselocations,allbasedin-London.-ProVen-VCTplcinvested-£1.5millionalongside-ProVen-Growth-&-Income-VCTplcin-April-2010.-

Cost:		£138,000	Valuation at 28/02/11:	£138,000
Investment comprises:			Valuation at 28/02/10:	£n/a
Ordinary shares:		£69,000	Valuation method:	Price of recent investment
Loan stock:		£69,000

Audited accounts:	30/04/10	30/04/09	Dividend income:
Turnover:	Unpublished	information	Loan note income:
Profit before tax:	Unpublished	information	Proportion of equity held:	4.0%
Net assets/(liabilities):	£113,000	£(67,000)	Diluted equity:	4.0%

Monica-Vinaderisahighend,awardwinningfashionjewellerybrand.-Designer-Monica-Vinaderbeganproducingjewelleryin-2002andcommercialisedthebrandin-2006.-Itnowgetsregularfeaturesinglossymagazinessuchas-Vogue,-Harpersand-Grazia,andboastsacelebrityfollowingof-Cameron-Diaz,-Keira-Knightleyand-Cheryl-Cole.-

www.monicavinader.com-

Cinergy-International-Limited-

Cost:		£115,000	Valuation at 28/02/11:	£115,000
Investment comprises:			Valuation at 28/02/10:	£n/a
Ordinary shares:		£12,000	Valuation method:	Price of recent
				investment
Loan stock:		£103,000

Audited accounts:	31/12/09	31/12/08	Dividend income:
Turnover:	£784,000	£661,000	Loan note income:
Loss before tax:	£(98,000)	£(113,000)	Proportion of equity held:	0.3%
Net (liabilities)/assets:	£(47,000)	£41,000	Diluted equity:	0.3%

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Cost:	£69,000	Valuation at 28/02/11:	£69,000
Investment comprises:		Valuation at 28/02/10:	£n/a
Ordinary shares:	£69,000	Valuation method:	Price of recent
			investment
Audited accounts:	31/03/10	Dividend income:
Turnover:	Unpublished information	Loan note income:
Profit before tax:	Unpublished information	Proportion of equity held:	3.7%
Net assets:	£22,000	Diluted equity:	3.7%
SenseLogix™ is an SenseLogix deliver	award winning provider of robust, intuitive hardware and	energy reduction for the buildings software solutions designed	market. to measure

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andmanageelectricityincommercialbusinesses,publicsector,educationandotherofficebasedenvironments,toeliminateelectricalwaste.-

Referencestothelatestaccountsrefertothelatestannualreportandaccountspublishedbytheinvesteecompanyfollowingthedateofinvestmentby-ProVen-VCTplc.-

Thesplitofthe-'D'-Sharepoolventurecapitalinvestmentsbycommercialsector-(byvalueandcostat-28-February-2011)issummarisedasfollows:-

Spreadof-Investmentsby-Sector- 'D'-Share-Pool

Analysis of investments by investment type

Thefollowingshowsthesplitofthe-'D'-Sharepool'sinvestmentportfoliobytypeofinstrumentheldat-28-February-2011:-

	Portfolio split 28 Feb 2011
VCT qualifying investments	15.2%
Nonqualifying investments (including cash at bank and liquidity funds)	84.8%
	100.0%

Board of Directors

Andrew Davison-(chairman)iscurrentlychairmanof-Cityof-London-Investment-Group-PLCandanonexecutivedirectorof-Downing-Distribution-VCT-2plc.-Hewasformerlychairmanandchiefexecutiveof-Business-Mortgages-Bankplcfrom-1987-–-1991.-Hejoined-County-Bank-Limitedin-1972andby-1984hadbecomemanagingdirectorof-NatWest-Ventures-Limited.-Heisacharteredaccountantandaformercouncilmemberofthe-British-Venture-Capital-Association.-

Barry Deanisacharteredaccountantandhasover-25years'experienceintheprivateequityindustry,including-14yearsasmanagingdirectorof-Dresdner-Kleinwort-Benson-Private-Equity-Limited.-Heiscurrentlyadirectorof-Henderson-Private-Equity-Investment-Trustplc-(aquotedinvestmenttrustinvestinginprivateequity)andanon executivedirectorof-Downing-Absolute-Income-VCT-2plcand-Elderstreet-VCTplc.-Barryisalsoanadvisorycommitteememberfor-Parallel-Private-Equity-LLPandservesontheinvestmentcommitteeof-Beamreach-Capital-LLP,whichinvestsinprivateequity.

Malcolm Mossisaseniormanagingdirectorandfounderof-Beringea-LLP.-Overthelast-20yearshehasbeenresponsibleforthegrowth,developmentandmanagementoftheprivateequitybusinessof-Beringeainboththe-UKandthe-USA.-Inadditiontosittingontheboardsof-ProVen-VCTplc,-ProVen-Growth-&-Income-VCTplcand-ProVen-Planned-Exit-VCTplc,hesitsontheinvestmentcommitteesoftwoof-Beringea'sventurefunds:--InvestCare-Partnersand-Global-Rights-Fund-II-andasanonexecutivedirectoronseveralotherportfolioinvestments.-Priortofounding-Beringea,-Malcolmgained-Europewideindustrial,planningandanalyticalexperienceinhealthcare,engineeringandfinancialserviceswith,respectively,-Baxter-International,-Uniroyal-Inc.and-Lloyds-TSB-Group.-

Allthe-Directorsarenonexecutiveand,withtheexceptionof-Malcolm-Moss,areconsideredbythe-Boardtobeindependentofthe-Investment-Managerasthe-Boardconsidersthateachofthemhassuitableexperiencetobeabletoexerciseproperjudgement.-

Directors' Report and Business Review

The-Directorspresentthe-Annual-Reportand-Accountsofthe-Companyfortheyearended-28-February-2011.-

Principal activity and status

Theprincipalactivityofthe-Companyisthatofaventurecapitaltrust.-Ithasbeenapprovedby-HM-Revenueand-Customs-("HMRC")asaventurecapitaltrustinaccordancewith-Part-6ofthe-Income-Tax-Act-2007,andintheopinionofthe-Directorsthe-Companyhasconducteditsaffairssoastoenableittocontinuetomaintainapproval.-Approvalfortheyearended-28-February-2011issubjecttoreviewshouldtherebeanysubsequentenquiryundercorporationtaxselfassessment.-

The-Directorsconsiderthatthe-Companywasnot,atanytime,uptothedateofthisreport,aclosecompanywithinthemeaningof-Section-414ofthe-Incomeand-Corporation-Taxes-Act-1988.-

The-Companyhasnoemployees-(otherthanthe-Directors).-Thesamewastrueofthepreviousyear.-

Business review and developments

The-Company'sbusinessreviewanddevelopmentsduringtheyeararereviewedinthe-Chairman's-Statementandthe-Investment-Manager's-Review.-

Thetotalrunningcostsofthe-Companyexceededrevenuearisingfromtheinvestmentsheld-(includingcashatbankandliquidityfunds)by-£418,000.-Thetotalexpenseratio-(excludingperformancefees,recoverable-VATandprovisionforloanstockinterest)inrespectoftheyearended-28-February-2011,comparedtonetassetsattheyearend,was-2.6%-(2010:-3.3%).-

Results and dividends

	£'000	Pence per share
Return on ordinary activities after tax for the year ended 28 February 2011 split as:
Ordinary Shares	3,601	14.2p
'C' Shares	184	1.3p
'D' Shares	(246)	(3.1p)
	3,539

Duringtheyearended-28-February-2011,the-Companypaidafinaldividendof-8.0pper-Ordinary-Share-(2010:-1.0p)inrespectoftheyearended-28-February-2010.-

Aninterimdividendof-6.25pper-Ordinary-Share-(being-1.8prevenueand-4.25pcapital)hasbeendeclaredinrespectoftheyearended-28-February-2011,whichwillbepaidon-29-July-2011to-Shareholdersontheregisterat-3-June-2011.-Nodividendshavebeendeclaredinrespectofthe-'C'-Sharesor-'D'-Shares.-

Directors

The-Directorsofthe-Companyduringtheyearandtheirbeneficialinterestsintheissued-Ordinary-Shares,-'C'-Shares,and-'D'-Sharesofthe-Company,at-28-February-2010,-28-February-2011andthedateofthisreportwereasfollows:-

Director		At the date of this report	28 Feb 2011	28 Feb 2010
Andrew Davison	Ords	29,039	11,908	8,948
	'C' Shares	9,335	9,335	9,335
	'D' Shares	2,637	2,637	2,637
Barry Dean	'C' Shares	10,300	10,300	10,300
Malcolm Moss	'D' Shares	3,165	3,165	3,165

Nicholas-Lewisresignedasa-Directoron-24-August-2010.-Heheld-21,356-Ordinary-Sharesat-28-February-2010.-

Directors' Report and Business Review (continued)

Barry-Deanand-Andrew-Davisonretireattheforthcoming-Annual-General-Meeting-("AGM")and,beingeligible,areofferingthemselvesforreelection.-Theremainderofthe-Boardfeelthattheyhavemadevaluablecontributionsduringthetermsoftheirappointmentandremaincommittedtotheirroles.-Theyhaveconsiderableexperiencein-VCTsandotherareas,asshownintheirbiographiesonpage-23,andthe-Boardthereforerecommendsthat-Shareholderssupporttheresolutionstoreelectthematthe-AGM.-

Eachofthe-Directorshasanagreedletterofappointmentwhichisterminablebythreemonths'noticeoneitherside.-Totheextentpermittedunderthe-Companies-Act-2006,the-Companyindemnifieseachofthe-Directorsagainstallcosts,charges,losses,expensesandliabilitieswhichmightariseintheexecutionoftheirduties,saveforcertainexceptions.-Each-Directorisrequiredtodevotesuchtimetotheaffairsofthe-Companyasthe-Boardrequires.-

Atthelast-AGMon-14-July-2010,-Directorsweregrantedtheauthoritytomakemarketpurchasesofupto-14.9%oftheissuedsharecapitalofthe-Company,todisapplypreemptionrightsandallotuptoamaximumnominalamountof-£3,000,000-Ordinary-Shares,-£364,283-'C'-Sharesand-£8,099-'D'-Shares.-Theauthoritytomakemarketpurchaseswasusedasdescribedonpage-28.-

Investment policy

The-Company'sinvestmentpolicycoversseveralareasasfollows:-

Qualifyinginvestments-

The-Companyseekstomakeinvestmentsin-VCT-Qualifyingcompanieswiththefollowingcharacteristics:-

astrong,balancedandwellmotivatedmanagementteamwithaproventrackrecordofachievement;-
adefensiblemarketposition;-
goodgrowthpotential;-
anattractiveentrypriceforthe-Company;-
theabilitytostructuretheinvestmentwithaproportionofsecuredloannotesinordertoreducerisk;and-
aclearlyidentifiedrouteforaprofitablerealisationwithinathreefouryearperiod.-

The-Companyinvestsincompaniesatvariousstagesofdevelopment,includingthoserequiringcapitalforexpansionandinmanagementbuyouts,butnotinstartups.-Investmentsarespreadacrossarangeofdifferentsectors.-

Inrespectofthe-'C'-Sharepoolonly,itisintendedthatatleast-90%ofthepool'squalifyinginvestments-(bycost)willbeinunquotedcompanies,withupto-10%beingincompaniesquotedon-AIM.-Alsoinrespectofthe-'C'-Sharepoolonly,approximately-75%ofthepool's-VCTqualifyinginvestments-(bycost)willbemadeintocompaniesinabroadrangeofsectors,withtheremainderbeinginarangeofdifferentcompaniesinthemediaindustry.-

Inrespectofthe-'D'-Sharepoolonly,itisintendedthatby-29-February-2012,-75%ofthefundsraisedunderthefirst-'D'-Share-Linkedofferwillbeinvestedinqualifyinginvestmentsandthatby-28-February-2013,-75%ofthefundsraisedunderthesecond-'D'-Share-Linkedofferwillalsobeinvestedinqualifyinginvestments.-

Otherinvestments-

Fundsnotinvestedinqualifyinginvestmentswillbeheldincash,liquidityfunds,fixedinterestsecuritiesof-Aratingorbetterorininvestmentsoriginatedinlinewiththe-Company'squalifying-VCTpolicybutwhichdonotqualifyunderthe-VCTrulesfortechnicalreasons.-

Venturecapitaltrustregulations-

Incontinuingtomaintainits-VCTstatus,the-Companycomplieswithanumberofregulationsassetoutin-Part-6ofthe-Income-Tax-Act-2007.-Howthemainregulationsapplytothe-Companyissummarisedasfollows:-

1. The-Companyholdsatleast-70%ofitsinvestmentsinqualifyingcompanies-(asdefinedby-Part-6ofthe-Income-Tax-Act-2007);-
1. Atleast-30%-(70%inrespectoffundsraisedafter-5-April-2011) ofthe-Company'squalifyinginvestments-(byvalue)areheldin-"eligibleshares"-–-("eligibleshares"generallybeingordinarysharecapital);-
1. Atleast-10%ofeachinvestmentinaqualifyingcompanyisheldin-"eligibleshares"-(bycostattimeofinvestment);-
1. Noinvestmentconstitutesmorethan-15%ofthe-Company'stotalinvestments-(byvalueattimeofinvestment);-
1. The-Company'sincomeforeachfinancialyearisderivedwhollyormainlyfromsharesandsecurities;-
1. The-Companydistributessufficientrevenuedividendstoensurethatnotmorethan-15%oftheincomefromsharesandsecuritiesinanyoneyearisretained;and-
1. Amaximumunitsizeof-£1millionineach-VCTqualifyinginvestment-(pertaxyear).

Borrowings-

Itisnotthe-Company'sintentiontohaveanyborrowings.-The-Companydoes,however,havetheabilitytoborrowamaximumamounteffectivelyequaltothesumofitssharecapitalandreserves,whichiscurrentlyequalto-£34million.-Therearenoplanstoutilisethisfacilityatthecurrenttime.-

Environmental and social policy

The-Boardseekstoconductthe-Company'saffairsresponsiblyandconsidersrelevantsocialandenvironmentalmatterswhereappropriate.-

Investment management and administration fees

Beringea-LLP-("Beringea")providesinvestmentmanagementservicestothe-Companyforanannualfeeof-2.0%ofthe-Ordinary-Sharenetassets,-'C'-Sharenetassetsandthe-'D'-Sharenetassetsperannum.-Beringeaisalsoentitledtoreceiveperformanceincentivefeesasdescribedfurtherbelow.-Theinvestmentmanagementagreementisterminablebyeitherpartyatanytimebyoneyear'spriorwrittennotice.-

The-Boardissatisfiedwith-Beringea'sapproachandproceduresinprovidinginvestmentmanagementservicestothe-Company.-The-Directorshavethereforeconcludedthatthecontinuingappointmentof-Beringea-LLPasinvestmentmanagerremainsinthebestinterestsof-Shareholders.-

Downing-Management-Services-Limited-("DMS")providesadministrationservicestothe-Companyforafeeof-£43,000-(plus-VAT-&-RPIadjustment)perannum.-

Theannualrunningcosts-(excludinganyperformancefeespayable)ofthe-Company,fortheyear,aresubjecttoacapof-3.25%ofthe-Company'snetassets.-

Directors' Report and Business Review (continued)

Performance incentive fees

Ordinary-Shares-

Beringeaand-Downing-Corporate-Finance-Limited-("DCF")areentitledtoreceiveperformanceincentivefees,whicharecalculatedasfollowsforeachfinancialyearstartingonorafter-1-March-2006:-

(i) 33%ofthecumulativedividendspaidinrelationtofinancialyearsstartingonorafter-1-March-2006overandabove-3pper-Ordinary-Shareperannumbutlessthan-6pper-Ordinary-Shareperannum;plus-
(ii) 20%ofthecumulativedividendspaidinrelationtofinancialyearsstartingonorafter-1-March-2006inexcessof-6pper-Ordinary-Shareperannum,lessthecumulativeamountofanyperformancefeepreviouslypaid.-

Theperformanceincentivefeesareonlypayablewhenthesumofthenetassetvalueper-Ordinary-Shareplusalldistributionsper-Ordinary-Sharepaidsincelaunchexceeds-130p.-

Beringeaisentitledto-91%oftheperformanceincentivefeesand-DCFisentitledtotheother-9%.-Theperformancefeespayableinrespectoftheyearunderreviewwere-£327,000-(2010:-£44,000)to-Beringeaand-£33,000-(2010:-£9,000)to-DCF.-

'C'-Shares-

Beringeaisentitledtoreceiveperformanceincentivefeesinrespectofthe-'C'-Shares.-Thesearefirstcalculatedinrelationtothefinancialyearstartingon-1-March-2012andprovidedthat:-

(i) the-Companyhasreturnedtoholdersof-'C'-Shareswhosubscribedunderthe-'C'-Shareprospectusinaggregateanamountequalto-25pper-£1sosubscribed;and-
(ii) thesumofthenetassetvalueper-'C'-Shareplusdistributionsper-'C'-Sharepaidsincelaunchexceeds-130p,-

anannualperformanceincentivefee-(inclusiveof-VATifapplicable)ispayable,equalto:-

(i) 33%ofthecumulativedividendspaidinrelationtothefinancialyearsstartingonorafter-1-March-2010overandabove-3pper-'C'-Shareperannumbutlessthan-6pper-'C'-Shareperannum;plus-
(ii) 20%ofthecumulativedividendspaidinrelationtothefinancialyearsstartingonorafter-1-March-2010inexcessof-6pper-'C'-Shareperannum,-

lessthecumulativeamountofanyincentivefeepreviouslypaidtothe-Investment-Manager.-

Nosuchfeeswerepaidinrespectofthe-'C'-Sharesintheyearunderrevieworintheprioryear.-

'D'-Shares-

Beringeaisentitledtoreceiveperformanceincentivefeesinrespectofthe-'D'-Shares.-Thesearefirstcalculatedinrelationtothefinancialyearstartingon-1-March-2012andprovidedthat:-

(i) the-Companyhasreturnedtoholdersof-'D'-Shareswhosubscribedunderthe-'D'-Shareprospectusinaggregateanamountequalto-25pper-£1sosubscribed;and-
(ii) thesumofthenetassetvalueper-'D'-Shareplusdistributionsper-'D'-Sharepaidsincelaunchexceeds-130p,-

anannualperformanceincentivefee-(inclusiveof-VATifapplicable)ispayable,equalto:-

(i) 33%ofthecumulativedividendspaidinrelationtothefinancialyearsstartingonorafter-1-March-2012overandabove-3pper-'D'-Shareperannumbutlessthan-6pper-'D'-Shareperannum;plus-
(ii) 20%ofthecumulativedividendspaidinrelationtothefinancialyearsstartingonorafter-1-March-2012inexcessof-6pper-'D'-Shareperannum,-

lessthecumulativeamountofanyincentivefeepreviouslypaidtothe-Investment-Manager.-

Nosuchfeeswerepaidinrespectofthe-'D'-Sharesintheyearunderrevieworintheprioryear.-

VCT status

The-Companyhasretained-PricewaterhouseCoopers-LLP-("PwC")toadviseitoncompliancewith-VCTrequirements,includingevaluationofinvestmentopportunitiesasappropriate,andregularreviewoftheportfolio.-Although-PwCworkscloselywiththe-Investment-Managerand-Administration-Manager,theyreportdirectlytothe-Board.-Compliancewiththemain-VCTregulationsasat-28-February-2011andfortheyearthenendedissummarisedasfollows:-

1.	70% of its investments in qualifying companies	77.4%
2.	At least 30% of the Company's qualifying investments in "eligible shares"	38.4%
3.	At least 10% of each investment held in "eligible shares"	Complied
4.	No investment constitutes more than 15% of the Company's portfolio	Complied
5.	Income is derived wholly or mainly from shares and securities	97.2%
6.	No more than 15% of the income from shares and securities is retained	0.0%
7.	A maximum unit size of £1 million in each VCT qualifying investment (per tax year)	Complied

Share capital

The-Companyhasthreeclassesofshares:-Ordinary-Sharesof-5peach-("Ordinary-Shares"),-'C'-Sharesof-25peach-("'C'-Shares")and-'D'sharesof-1peach-("'D'-Shares").-Eachshareclasshasaseparatepoolofassetsattributabletoit,witheachclassbearingaproportionoftherunningcostsofthe-Company.-Ordinary-Shares,-'C'-Sharesand-'D'-Sharesrankparipassuwitheachotherintermsofvotingandotherrights.-Theproportionofthe-Company'snetassetsattributabletothe-Ordinary-Shares,-'C'-Sharesand-'D'-Sharesare-45%,-33%and-22%respectively.-

Atthe-2010-AGM,-Shareholdersauthorisedthe-Companytomakemarketpurchasesofitsownsharesofupto-14.9%ofthesharecapitalinissueatthatdateandtowaivepreemptionrightsandissueupto-3,803,933-Ordinary-Shares,-2,178,244-'C'-Sharesand-1,213,983-'D'-Shares.-

Between-23-March-2010and-29-October-2010,-2,800,108-'D'-Shareswithanaggregatenominalvalueof-£28,000were issued at- £1 per share pursuant to the offer for subscription under the prospectus dated- 20- November-2009.-Theaggregateconsiderationfortheshareswas-£2,765,000whichexcludedshareissuecostsof-£154,000.-

Between-1-April-2010and-28-May-2010,-2,136,795-Ordinary-Shareswithanaggregatevalueof-£107,000wereissuedat-56.1ppersharepursuanttothetopupofferforsubscriptiondated-16-November-2009.-Theaggregateconsiderationfortheshareswas-£1,171,000whichexcludedshareissuecostsof-£66,000.-

Inaccordancewiththe-Company'spolicyasdiscussedinthe-Chairman's-Statement,duringtheyear,the-Companyrepurchased-524,829-Ordinary-Shareswithanaggregatenominalvalueof-£26,000,being-2.2%ofthe-Ordinary-Sharecapital.-The-Ordinary-Shareswererepurchasedforanaverageconsiderationof-47.4ppershareandanaggregateconsiderationof-£249,000.-The-Companyalsorepurchased-56,375-'C'-Shareswithanaggregatenominalvalueof-£14,000,being-0.4%ofthe-'C'-Sharecapital.-The-'C'-Shareswererepurchasedforanaverageconsiderationof-66.8ppershareandanaggregateconsiderationof-£38,000.-Inaddition,the-Companyrepurchased-55,698-'D'-Shareswithanaggregatenominalvalueof-£600,being-1.0%ofthe-'D'-Sharecapital.-The-'D'-Shareswererepurchasedforanaverageconsiderationof-91.0ppershareandanaggregateconsiderationof-£51,000.-Allsharesrepurchasedweresubsequentlycancelled.-

Directors' Report and Business Review (continued)

Creditor payment policy

The-Company'spaymentpolicyistopaycreditorswithinthirtydaysofreceiptofaninvoiceexceptwhereothertermshavebeenagreed.-Tradecreditorsofthe-Companyattheyearendamountedto-£nil-(2010:-£nil).-

Key performance indicators

Ateach-Boardmeeting,the-Directorsconsideranumberofperformancemeasurestoassessthe-Company'ssuccessinmeetingitsinvestmentobjectives-(asshownonpage-1).-The-Boardbelievesthe-Company'skeyperformanceindicatorsare-Net-Asset-Value-Total-Return-(NAVpluscumulativedividendspaidtodate)anddividendspershare-(seepage-2).-

Inaddition,the-Boardconsidersthe-Company'sperformanceinrelationtoother-VCTs.-

Principal risks and uncertainties

Theprincipalfinancialrisksfacedbythe-Company,whichincludemarketpricerisk,interestraterisk,creditriskandliquidityrisk-(beingminimal),aresummarisedwithinnote-20tothefinancialstatements.-

Inadditiontotheserisks,the-Company,asafullylisted-Companyonthe-London-Stock-Exchangeandasa-Venture-Capital-Trust,operatesinacomplexregulatoryenvironmentand,therefore,facesanumberofrelatedrisks.-Abreachofthe-VCT-Regulationscouldresultinthelossof-VCTstatusandconsequentlossoftaxreliefscurrentlyavailableto-Shareholdersandthe-Companybeingsubjecttocapitalgainstax.-Seriousbreachesofotherregulations,suchasthe-UKLA-Listing-Rulesandthe-Companies-Act-2006,couldleadtosuspensionfromthe-Stock-Exchangeanddamagetothe-Company'sreputation.-

The-Boardreviewsandagreespoliciesformanagingeachoftheserisks.-The-Directorsreceivequarterlyreportsfromthe-Managerswhichmonitorthecomplianceoftheserisks,andplacerelianceonthe-Managerstogiveupdatesintheinterveningperiods.-Thesepolicieshaveremainedunchangedsincethebeginningofthefinancialyear.-

Auditor

Aresolutiontoreappoint-Deloitte-LLPasthe-Company'sauditorwillbeproposedattheforthcoming-Annual-General-Meeting.-

Amended Articles of Association

The-Directorsareproposingthatthe-Companyamends-Article-174ofits-Articlesof-Associationtoextendthedateonwhich-Shareholderswillvoteastowhetherthe-Companyshouldcontinueasaventurecapitaltrustfromtheannualgeneralmeetingtobeheldin-2016,tothattobeheldin-2019,sothatintheeventthe-Companyissuesnewsharesinthenexttaxyears,itcontinuesasa-VCTforasufficientdurationtoenablenewinvestorstoretainthebenefitsofthetaxreliefsavailableto-VCTs.-Resolution-9willtobeputto-Shareholdersattheforthcoming-AGMseekingapprovalforthisamendment.-

Annual General Meeting

The-Annual-General-Meetingwillbeheldin-The-Forest-Roomat-The-Hospital-Club,-24-Endell-Street,-Covent-Garden,-London-WC2H-9HQat-10:30a.m.on-24-August-2011.-The-Noticeofthe-Annual-General-Meetingand-Formof-Proxyareattheendofthisdocument.-

Substantial interests

Asat-28-February-2011,andatthedateofthisreport,the-Companywasnotawareofanybeneficialinterestexceeding-3%oftheissuedsharecapital.-

Future developments

The-Directorsdonotforeseeanymajorchangesintheactivityundertakenbythe-Companyinthecomingyear.-The-Companycontinueswithitsobjectivetoinvestinunquotedcompaniesthroughoutthe-United-Kingdomwithaviewtominimisingtherisksofinvestmentandprovidingbothcapitalgrowthanddividendincometo-Shareholdersoverthelongtermwhilstmaintaining-VCTqualifyingstatus.-

Statement of Directors' responsibilities

The-Directorsareresponsibleforpreparingthe-Directors'-Report,the-Directors'-Remuneration-Reportandthefinancialstatementsinaccordancewithapplicablelawandregulations.-Theyarealsoresponsibleforensuringthattheannualreportincludesinformationrequiredbythe-Listing-Rulesofthe-Financial-Services-Authority.-

Companylawrequiresthe-Directorstopreparefinancialstatementsforeachfinancialyear.-Underthatlawthe-Directorshaveelectedtopreparethefinancialstatementsinaccordancewith-United-Kingdom-Generally-Accepted-Accounting-Practice-(United-Kingdom-Accounting-Standardsandapplicablelaw).-Undercompanylaw,the-Directorsmustnotapprovethefinancialstatementsunlesstheyaresatisfiedthattheygiveatrueandfairviewofthestateofaffairsofthe-Companyandoftheprofitorlossofthe-Companyforthatperiod.-

Inpreparingthosefinancialstatements,the-Directorsarerequiredto:-

selectsuitableaccountingpoliciesandthenapplythemconsistently;-
makejudgementsandestimatesthatarereasonableandprudent;-
statewhetherapplicableaccountingstandardshavebeenfollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements;and-
preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethatthe-Companywillcontinueinbusiness.-

The-Directorsareresponsibleforkeepingadequateaccountingrecordsthataresufficienttoshowandexplainthe-Company'stransactionsanddisclosewithreasonableaccuracyatanytimethefinancialpositionofthe-Companyandtoenablethemtoensurethatthefinancialstatements,andthe-Directors'-Remuneration-Report,complywiththerequirementsofthe-Companies-Act-2006.-Theyarealsoresponsibleforsafeguardingtheassetsofthe-Companyandhencefortakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.-

The-Directorsareresponsibleforthemaintenanceandintegrityofthecorporateandfinancialinformationrelatingtothe-Companyincludedonthe-Managers'websites.-Legislationinthe-United-Kingdomgoverningthepreparationanddisseminationofthefinancialstatementsandotherinformationincludedinannualreportsmaydifferfromlegislationinotherjurisdictions.-

Directors' statement pursuant to the Disclosure and Transparency Rules

Eachofthe-Directors,whosenamesarelistedonpage-23,confirmsthattothebestofeachperson'sknowledge:-

thefinancialstatements,preparedinaccordancewith-United-Kingdom-Generally-Accepted-Accounting-Practice,giveatrueandfairviewoftheassets,liabilities,financialpositionandresultsofthe-Company;and-
the-Chairman's-Statement,-Investment-Manager's-Reviewand-Directors'-Reportincludeafairreviewofthedevelopmentandperformanceofthebusinessandthepositionofthe-Companytogetherwithadescriptionoftheprincipalrisksanduncertaintiesthatitfaces.-

Electronic publication

Thefinancialstatementsarepublishedonwww.provenvcts.co.uk-(maintainedbythe-Investment-Manager)andalsoonwww.downing.co.uk.-

Directors' Report and Business Review (continued)

Corporate governance

The-Company'scompliancewith,anddeparturesfrom,the-Financial-Reporting-Council's-Combined-Codeon-Corporate-Governance-June-2008-(www.frc.org.uk)isshownonpages-32 to-35.-

The-Corporate-Governance-Statementdescribeshowtheprinciplesandsupportingprincipleswithinthe-Combined-Code,publishedin-June-2008,havebeenappliedbythe-Companythroughouttheyearended-28-February-2011,exceptwheredisclosedwithinthe-Corporate-Governance-Statement.-

Statement as to disclosure of information to the Auditor

The-Directorsinofficeatthedateofthereporthaveconfirmed,asfarastheyareaware,thatthereisnorelevantauditinformationofwhichthe-Auditorisunaware.-Eachofthe-Directorshasconfirmedthattheyhavetakenallthestepsthattheyoughttohavetakenas-Directorsinordertomakethemselvesawareofanyrelevantauditinformationandtoestablishthatithasbeencommunicatedtothe-Auditor.-Thisconfirmationisgivenandshouldbeinterpretedinaccordancewiththeprovisionsofsection-418ofthe-Companies-Act-2006.-

Byorderofthe-Board-

Grant-Whitehouse-Secretary-39-Earlham-Street-London-WC2H-9LT-

30-June-2011-

Statement of Corporate Governance

The-Directorssupporttherelevantprinciplesofthe-Combined-Codeissuedin-June-2008-("the-Combined-Code"),beingtheprinciplesofgoodgovernanceandthecodeofbestpractice,assetoutinthe-Combined-Code.-Witheffectfrom-1-March-2011,the-Companyadoptedtheprinciplesoftheupdated-UK-Corporate-Governance-Code-(issued-May-2010).-

Application of the Principles of the Code

The-Boardattachesimportancetomatterssetoutinthe-Combined-Codeanditsprinciples.-However,asaventurecapitaltrustcompany,mostofthe-Company'sdaytodayresponsibilitiesaredelegatedtothirdpartiesandthe-Directorsareallnonexecutive.-

The Board

The-Companyhasa-Boardcomprisingthreenonexecutive-Directors.-The-Chairmanandsenior-Directoris-Andrew-Davison.-Andrew-Davisonand-Barry-Deanareconsideredtobeindependent-Directorsbythe-Board.-Biographicaldetailsofall-Boardmembers-(includingthesignificantcommitmentsofthe-Chairman)areshownonpage-23.-

Directorsaresubjecttoreelectionatthefirst-AGMaftertheirappointmentandbyrotationthereafter.-Inaccordancewiththe-Combined-Code,two-Directorswerereelectedduringtheyear Atthenext-AGM,two-Directorsareofferingthemselvesforreelection.-Barry-Deanisretiringbyrotationand,inaccordancewiththe-UK-Corporate-Governance-Code,-Andrew-Davisonisretiringasaresultofbeinga-Directorofthe-Companyformorethannineyears.-

Full-Boardmeetingstakeplacequarterlyandthe-Boardmeetsmoreregularlytoaddressspecificissues,includingconsideringrecommendationsfromthe-Investment-Manager,andreviews,periodically,thetermsofengagementofallthirdpartyadvisers-(includingthe-Investment-Managerand-Administration-Manager).-The-Boardhasaformalscheduleofmattersspecificallyreservedforitsdecision.-

Thefollowingtablesetsoutthe-Directors'attendanceatfull-Boardand-Committeemeetingsheldduringtheyearended-28-February-2011.-

			Audit		Remuneration
	Board meetings		Committee meetings		Committee meetings
Director	held	attended	held	attended	held	Attended
Andrew Davison	4	4	2	2
Barry Dean	4	3	2	2
Malcolm Moss	4	3	2	2

The-Boardhasalsoestablishedprocedureswhereby-Directorswishingtodosointhefurtheranceoftheirdutiesmaytakeindependentprofessionaladviceatthe-Company'sexpense.-

All-Directorshaveaccesstotheadviceandservicesofthe-Company-Secretary.-The-Company-Secretaryprovidesthe-Boardwithfullinformationonthe-Company'sassetsandliabilitiesandotherrelevantinformationrequestedbythe-Chairman,inadvanceofeach-Boardmeeting.-

The-Boardhasnotappointedanominationcommitteeasitconsidersitselftobesmallanditcompriseswhollynon executive-Directors.-Appointmentsofnew-Directorsaredealtwithbythefull-Board.-

Board performance evaluation

Anevaluationoftheperformanceofthe-Board,eachofits-Committeesandofthenonexecutive-Directorswasconductedusingaseriesofquestionnaires.-Abroadrangeofstandardtopicswascovered,includingtheprogrammeofregular-Boardor-Committeebusiness,-Boardbehavioursandstrategy.-Differentquestionswereusedforassessingtheskillsandcontributionsofeachofthe-Chairmanandnonexecutive-Directors.-Thesurveywillbeupdatedeachyear,includingtheapproachtorisk,-Boardtrainingand-Directors'abilitytoprovideeffectivechallenge.-

Statement of Corporate Governance (continued)

The-Boardconsideredwhethertointroduceanexternalfacilitatortomanagetheevaluation.-However,itconcludedthatthe-Company-Secretarywaswellplacedtodeviseupdatedquestionsthatarerelevantandappropriatetothe-Companyandthat,havingattended-Boardand-Committeemeetingsthroughouttheyear,heandthe-Chairmanwouldalsounderstandandensureafullandfrankdiscussionaroundanyconcernsraised.-

The-Chairmanhasreviewedtheresultsofthequestionnaireandfolloweduprelevantmatterswitheach-Director.-Theoutcomeofthe-2011-Boardreviewhasconfirmedthatthe-Directorsconsiderthe-Boardtohaveagoodbalanceofskillsandtobeworkingwell.-

Remuneration Committee

The-Boardhasappointeda-Remuneration-Committeecomprisingall-Directorsandchairedby-Andrew-Davison.-The-Committeegenerallymeetsonceayearandatothertimesasrequiredandhasspecifictermsofreferenceinordertofulfilitsdutiesinrespectofmattersrelatingtoremuneration.-

Audit Committee

The-Companyhasan-Audit-Committeecomprising-Barry-Deanand-Andrew-Davison.-This-Committeehasdefinedtermsofreferenceandduties.-The-Committeemettwiceduringtheyearwithallmembersbeinginattendance.-Eachofthemembersofthe-Audit-Committeehasrecentandrelevantfinancialexperienceasevidencedbytheirbiographiesonpage-23.-

The-Audit-Committeeisresponsibleforreviewingtheannualaccountsbeforetheyarepresentedtothe-Board,andnormallywillalsoreviewthehalfyearlyaccounts.-Itisalsoresponsibleforreviewingthetermsofappointmentofthe-Auditor,togetherwiththeirremuneration,aswellasafullreviewoftheeffectivenessofthe-Company'sinternalcontrolandriskmanagementsystems.-

Anynonauditservicesprovidedbythe-Auditorarereviewedandapprovedbythe-Committeepriortobeingundertaken,toensurethatauditorobjectivityandindependenceissafeguarded.-The-Committeeissatisfiedwiththeperformanceofthe-Auditorandrecommendsto-Shareholdersthattheybereappointedasauditorfortheforthcomingyear.-

The-Committeereviewedtheinternalfinancialcontrolsandconcludedthattheywerestillappropriatetothe-Company.-Theyalsoconsideredtheneedforaninternalauditfunctionandconcludedthatthisfunctionwouldnotbeanappropriatecontrolforaventurecapitaltrust.-Asthe-Companyhashadnostaff,otherthan-Directors,therearenoproceduresinplaceinrespectof-C3.4ofthe-Combined-Code.-

Relations with Shareholders

Shareholdershavetheopportunitytomeetthe-Boardatthe-AGM.-The-Boardisalsohappytorespondtoanywrittenqueriesmadeby-Shareholdersduringthecourseoftheyear,ortomeetwithmajor-Shareholdersifsorequested.-Ashareholderpresentationforall-ProVen-VCTsisalsoheldeachyearand-Shareholdersareinvitedtoattend.-

Inadditiontotheformalbusinessofthe-AGM,representativesofthemanagementteamandthe-Boardareavailabletoansweranyquestionsa-Shareholdermayhave.-

Separateresolutionsareproposedatthe-AGMoneachsubstantiallyseparateissue.-The-Administration-Managercollatesproxyvotesandtheresults-(togetherwiththeproxyforms)areforwardedtothe-Company-Secretaryimmediatelypriortothe-AGM.-Inordertocomplywiththe-Combined-Code,proxyvotesareannouncedatthe-AGM,followingeachvoteonashowofhands,exceptintheeventofapollbeingcalled.-

Thenoticeofthenext-AGMandproxyformcanbefoundattheendofthesefinancialstatements.-

Thetermsofreferenceofthe-Auditand-Remuneration-Committeesandtermsandconditionsofappointmentofnon executive-Directorsareavailableto-Shareholdersuponrequest.-

Financial reporting

The-Directors'statementofresponsibilitiesforpreparingtheaccountsissetoutinthe-Directors'-Reportonpage-30andastatementbythe-Auditorabouttheirreportingresponsibilitiesissetoutinthe-Independent-Auditor's-Reportonpage-39.-

Internal control

The-Boardhasadoptedan-Internal-Control-Manual-("Manual")forwhichtheyareresponsible,whichhasbeencompiledtocomplywiththe-Combined-Code-(andgoingforwardtocomplywiththe-UK-Corporate-Governance-Code).-The-Manualisdesignedtoprovidereasonable,butnotabsolute,assuranceagainstmaterialmisstatementorloss,whichitachievesbydetailingtheperceivedrisksandcontrolsinplacetomitigatethem.-The-Boardreviewstheperceivedrisksinlinewithrelevantguidanceonanannualbasisandimplementsadditionalcontrolsasappropriate.-

The-Boardisresponsibleforensuringthattheprocedurestobefollowedbytheadvisersandthemselvesareinplace,andreviewstheeffectivenessofthe-Manual,basedonthereportfromthe-Audit-Committee,onanannualbasistoensurethatthecontrolsremainrelevantandwereinoperationthroughouttheyear.-

Althoughthe-Boardisultimatelyresponsibleforsafeguardingtheassetsofthe-Company,the-Boardhasdelegated, throughwrittenagreements,thedaytodayoperationofthe-Companytothefollowingadvisers:-

Venture-Capital-Investment-Management-Administration Beringea-LLP- Downing-Management-Services-Limited-

Share capital

Therightsandobligationsattachingtothe-Company'sshares,includingthepowerofthe-Companytobuybacksharesanddetailsofanysignificant-Shareholders,aresetoutonpages-4and-5ofthe-Chairman's-Statementandpage-29-Reportofthe-Directors.

Going concern

The-Company'sbusinessactivities,togetherwiththefactorslikelytoaffectitsfuturedevelopment,performanceandposition,aresetoutinthe-Chairman's-Statementonpage-3,the-Investment-Manager's-Reviewonpage-6andthe-Directors'-Reportonpage-24.-Thefinancialpositionofthe-Company,itscashflows,liquiditypositionandborrowingfacilitiesareshowninthe-Balance-Sheetonpage-44,the-Cash-Flow-Statementonpage-45andthe-Directors'-Reportonpage-24.-Inaddition,notes-15and-20tothefinancialstatementsincludethe-Company'sobjectives,policiesandprocessesformanagingitscapital;itsfinancialriskmanagementobjectives;detailsofitsfinancialinstruments;anditsexposurestocreditriskandliquidityrisk.-

The-Companyhasconsiderablefinancialresourcesbothattheyearendandatthedateofthisreport,andholdsadiversifiedportfolioofinvestments.-Asaconsequence,the-Directorsbelievethatthe-Companyiswellplacedtomanageitsbusinessriskssuccessfullydespitethecurrentuncertaineconomicoutlook.-

The-Directorshaveareasonableexpectationthatthe-Companyhasadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.-Thus,theycontinuetoadoptthegoingconcernbasisofaccountinginpreparingtheannualfinancialstatements.-

Statement of Corporate Governance (continued)

Compliance statement

The-Listing-Rulesrequirethe-Boardtoreportoncompliancewiththefortyeight-Combined-Codeprovisionsthroughouttheaccountingperiod.-Withtheexceptionofthelimiteditemsoutlinedbelow,the-Companyhascompliedthroughouttheaccountingyearended-28-February-2011withtheprovisionssetoutin-Section-1ofthe-Combined-Code:-

a) New-Directorsdonotreceiveafull,formalandtailoredinductiononjoiningthe-Board.-Suchmattersareaddressedonanindividualbasisastheyarise.-Alsothe-Companyhasnomajor-Shareholdersso-Shareholdersarenotgiventheopportunitytomeetanynewnonexecutive-Directorsataspecificmeetingotherthanatthe-Annual-General-Meeting.-(A51,-A33)-
b) The-Directorsdonothaveservicecontractsinplace-(B16).-The-Directorshaveagreedlettersofappointmentinplacewithathreemonthnoticeperiod.-
c) Until-24-August-2010,the-Companydidnothaveamajorityofindependentdirectors,asdefinedbythe-Combined-Codeissuedin-June-2008,asaresultofotherdirectorshipsofcompanieswiththesameinvestmentmanager.-Thiswascorrectedwhen-Nicholas-Lewisresigned.-Until-24-August-2010,the-Boardconsideredthatall-Directorshadsufficientexperiencetobeabletoexerciseproperjudgementwithinthemeaningofthe-Combined-Code.-(A32,-A33)-(Consequentlytheremunerationandauditcommitteesdidnotcomplywith-B21and-C31.)-
d) Duetothesizeofthe-Board,the-Companydoesnothaveaformalnominationcommittee.-Relevantmattersweredealtwithbythefull-Board.-(A41,-B2)-

Byorderofthe-Board-

Grant-Whitehouse-

Secretary-39-Earlham-Street-London-WC2H-9LT-

30-June-2011-

Directors' Remuneration Report

The-Boardand-Remuneration-Committeehavepreparedthisreport,inaccordancewiththerequirementsofthe-Companies-Act-2006.-Aresolutiontoapprovethisreportwillbeputtothemembersatthe-Annual-General-Meetingtobeheldon-24-August-2011.-

Undertherequirementsof-Section-497,the-Company's-Auditorisrequiredtoauditcertaindisclosurescontainedwithinthereport.-Thesedisclosureshavebeenhighlightedandtheauditopinionthereoniscontainedwithinthe-Independent-Auditor's-Reportonpage-39.-

Remuneration Committee

The-Remuneration-Committeecomprisesallmembersofthe-Boardandischairedby-Andrew-Davison.-

Directors' remuneration policy

Directors'remunerationiscalculatedinaccordancewiththe-Company's-Articlesof-Associationasfollows:-

- The-Directorsshallbepaidoutofthefundsofthe-Companybywayoffeesfortheirservices,anaggregatesumnotexceeding-£100,000perannum.-The-Directorsshallalsoreceivebywayofadditionalfeessuchfurthersums-(ifany)asthe-Companyin-General-Meetingmayfromtimetotimedetermine.-Suchfeesandadditionalfeesshallbedividedamongthe-Directorsinsuchproportionandmannerastheymaydetermineandindefaultofdeterminationequally.-
- The-Directorsshallbeentitledtoberepaidallreasonabletravel,hotelandotherexpensesincurredbythemrespectivelyintheperformanceoftheirdutiesas-Directorsincludinganyexpensesincurredinattendingmeetingsofthe-Boardorof-Committeesofthe-Boardor-General-Meetingsandif,intheopinionofthe-Directors,itisdesirablethatanyoftheirnumbershouldmakeanyspecialjourneysorperformanyspecialservicesonbehalfofthe-Companyoritsbusiness,such-Directoror-Directorsmaybepaidreasonableadditionalremunerationandexpensesasthe-Directorsmayfromtimetotimedetermine.-

Directors'remuneration,asshowninthetablebelow,issetataleveldesignedtoreflectthetimecommitmentandhighlevelresponsibilitybornebythenonexecutivedirectorsandshouldbebroadlycomparablewiththatpaidbysimilarcompanies.-

Directors' agreements

Eachofthe-Directorshasanagreedletterofappointmentwherebyheisrequiredtodevotesuchtimetotheaffairsofthe-Companyasthe-Boardreasonablyrequiresconsistentwithhisroleasanonexecutive-Director.-Athreemonthrollingnoticeapplies.-

Directors' remuneration (audited)

Directors'remunerationfortheyearunderreviewwasasfollows:-

	Year ended	Year ended
	28 Feb 2011	28 Feb 2010
	£'000	£'000
Andrew Davison (Chairman)	25	20
Barry Dean	21	20
Malcolm Moss	15	15
Nicholas Lewis (resigned 24 August 2010)	2	15
	63	70

Nootheremolumentsorpensioncontributionswerepaidbythe-Companyto,oronbehalfof,any-Director.-Theremunerationlevelsfortheforthcomingyearareexpectedtobeatthefollowingrates:-

	Annual Rate
	£'000
Andrew Davison (Chairman)	30
Barry Dean	22
Malcolm Moss	15
	67

Directors' Remuneration Report (continued)

Insurance cover

Directors'and-Officers'liabilityinsurancecoverisheldbythe-Companyinrespectofthe-Directors.-

Performance graph

Thechartsbelowrepresentthe-Company's-Ordinary-Share,-'C'-Share,and-'D'-Shareperformanceoverthereportingperiodssincelaunchoftherespectiveshareclassesandcomparesthe-Net-Asset-Value-Total-Returnandthe-Share-Price-Total-Returntoarebased-FTSE-All-Share-Total-Return-Index.-Net-Asset-Value-Total-Returniscalculatedas-Net-Asset-Valueplusdividendsand/orcapitaldistributionsreinvestedintheshareclassatthe-Net-Asset-Valueprevailingatthedatethedividends/distributionswerepaid.-Share-Price-Total-Returniscalculatedinasimilarway,butreinvestingdividendsatthemidmarketsharepriceatthedatedividendsarepaid.-The-FTSE-All-Share-Total-Return-Indexisnotconsideredtobeabenchmarkforthe-Companybuthasbeenselectedasitisconsideredtobethemostrelevantpubliclyavailableindex.-Allserieshavebeenrebasedto-100attherelevantlaunchdates.-

Ordinary-Shareperformancechart

'C'-Shareperformancechart

'D'-Shareperformancechart

Byorderofthe-Board-

Grant-Whitehouse-

Secretary-39-Earlham-Street-London-WC2H-9LT-

30-June-2011-

Independent Auditor's Report to the Members of ProVen VCT plc

Wehaveauditedthefinancialstatementsof-ProVen-VCTplcfortheyearended-28-February-2011whichcomprisethe-Income-Statement,the-Reconciliationof-Movementsin-Shareholders'-Funds,the-Balance-Sheet,the-Cash-Flow-Statementandtherelatednotes-1to-23.-Thefinancialreportingframeworkthathasbeenappliedintheirpreparationisapplicablelawand-United-Kingdom-Accounting-Standards-(United-Kingdom-Generally-Accepted-Accounting-Practice).-

Thisreportismadesolelytothe-Company'smembers,asabody,inaccordancewith-Chapter-3of-Part-16ofthe-Companies-Act-2006.-Ourauditworkhasbeenundertakensothatwemightstatetothe-Company'smembersthosematterswearerequiredtostatetotheminanauditor'sreportandfornootherpurpose.-Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthanthe-Companyandthe-Company'smembersasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.-

Respective responsibilities of directors and auditor

Asexplainedmorefullyinthe-Directors'-Responsibilities-Statement,the-Directorsareresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview.-Ourresponsibilityistoauditandexpressanopiniononthefinancialstatementsinaccordancewithapplicablelawand-International-Standardson-Auditing-(UKand-Ireland).-Thosestandardsrequireustocomplywiththe-Auditing-Practices-Board's-Ethical-Standardsfor-Auditors.-

Scope of the audit of the financial statements

Anauditinvolvesobtainingevidenceabouttheamountsanddisclosuresinthefinancialstatementssufficienttogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorerror.-Thisincludesanassessmentof:whethertheaccountingpoliciesareappropriatetothe-Company'scircumstancesandhavebeenconsistentlyappliedandadequatelydisclosed;thereasonablenessofsignificantaccountingestimatesmadebythedirectors;andtheoverallpresentationofthefinancialstatements.-Inaddition,wereadallthefinancialandnonfinancialinformationintheannualreporttoidentifymaterialinconsistencieswiththeauditedfinancialstatements.-Ifwebecomeawareofanyapparentmaterialmisstatementsorinconsistenciesweconsidertheimplicationsforourreport.-

Opinion on financial statements

Inouropinionthefinancialstatements:-

giveatrueandfairviewofthestateofthe-Company'saffairsasat-28-February-2011andofitsprofitfortheyearthenended;-
havebeenproperlypreparedinaccordancewith-United-Kingdom-Generally-Accepted-Accounting-Practice;and-
havebeenpreparedinaccordancewiththerequirementsofthe-Companies-Act-2006.-

Opinion on other matters prescribed by the Companies Act 2006

Inouropinion:-

thepartofthe-Directors'-Remuneration-Reporttobeauditedhasbeenproperlypreparedinaccordancewiththe-Companies-Act-2006;and-
theinformationgiveninthe-Directors'-Reportforthefinancialyearforwhichthefinancialstatementsarepreparedisconsistentwiththefinancialstatements.-

Matters on which we are required to report by exception

Wehavenothingtoreportinrespectofthefollowing:-

Underthe-Companies-Act-2006wearerequiredtoreporttoyouif,inouropinion:-

adequateaccountingrecordshavenotbeenkept,orreturnsadequateforouraudithavenotbeenreceivedfrombranchesnotvisitedbyus;or-
thefinancialstatementsandthepartofthe-Directors'-Remuneration-Reporttobeauditedarenotinagreementwiththeaccountingrecordsandreturns;or-
certaindisclosuresofdirectors'remunerationspecifiedbylawarenotmade;or-
wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.-

Underthe-Listing-Ruleswearerequiredtoreview:-

thedirectors'statement,containedwithinthe-Statementof-Corporate-Governance,inrelationtogoingconcern;-
thepartofthe-Statementof-Corporate-Governancerelatingtothe-Company'scompliancewiththenineprovisionsofthe-June-2008-Combined-Codespecifiedforourreview;and-
certainelementsofthereportto-Shareholdersbythe-Boardondirectors'remuneration.-

Stuart-McLaren-(Senior-Statutory-Auditor)-

forandonbehalfof-Deloitte-LLP-Chartered-Accountantsand-Statutory-Auditor-London,-United-Kingdom-

30-June-2011

Income Statement

for the year ended 28 February 2011

Company Position

		Year	ended 28 February	2011	Year	ended 28 February	2010
	Note	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Income	2	831		831	266		266
Gains on investments	11		3,961	3,961		591	591
		831	3,961	4,792	266	591	857
Investment management fees	3	(160)	(480)	(640)	(144)	(431)	(575)
Performance incentive fees	4		(360)	(360)		(53)	(53)
Recoverable VAT	5					1	1
Other expenses	6	(253)		(253)	(713)		(713)
Return on ordinary activities before tax		418	3,121	3,539	(591)	108	(483)
Tax on ordinary activities	8
Return attributable to equity shareholders		418	3,121	3,539	(591)	108	(483)
Return per Ordinary Share	10	1.8p	12.4p	14.2p	(0.8p)	(1.2p)	(2.0p)
Return per 'C' Share	10	(0.0p)	1.3p	1.3p	(2.3p)	3.1p	0.8p
Return per 'D' Share	10	(0.5p)	(2.6p)	(3.1p)	(1.1p)	(1.4p)	(2.5p)

Allrevenueandcapitalmovementsintheyearforthe-Ordinary-Shares,-'C'-Sharesand-'D'-Sharesrelatetocontinuingoperations.-Nooperationswereacquiredordiscontinuedduringtheyear.-Thetotalcolumnwithinthe-Income-Statementrepresentstheprofitandlossaccountofthe-Company,preparedinaccordancewiththeaccountingpoliciesdetailedinnote-1tothefinancialstatements.-Thesupplementaryrevenueandcapitalcolumnsarepresentedforinformationpurposesinaccordancewiththe-Statementof-Recommended-Practiceissuedby-The-Associationof-Investment-Companies.-

A-Statementof-Total-Recognised-Gainsand-Lossesrelatingtoeachclassofsharehasnotbeenpreparedasallgainsandlossesarerecognisedintherelevant-Income-Statementsinthecurrentandprioryearasshownonpages-42and-43 andabove.-

Otherthanrevaluationmovementsarisingoninvestmentsheldatfairvaluethroughthe-Income-Statement,therewerenodifferencesbetweenreturnasstatedonpages-42and-43andaboveathistoricalcost.-

Income Statement

for the year ended 28 February 2011

Split as:

Ordinary Shares
	Year ended 28 February 2011			Year	ended 28 February 2010
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Income	626		626	170		170
Gains/(losses) on investments		3,709	3,709		(26)	(26)
	626	3,709	4,335	170	(26)	144
Investment management fees	(70)	(208)	(278)	(66)	(197)	(263)
Performance incentive fees		(360)	(360)		(53)	(53)
Recoverable VAT					1	1
Other expenses	(96)		(96)	(304)		(304)
Return on ordinary activities before tax	460	3,141	3,601	(200)	(275)	(475)
Tax on ordinary activities
Return attributable to equity shareholders	460	3,141	3,601	(200)	(275)	(475)

'C' Shares

	Year ended 28 February 2011			Year ended 28 February 2010
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Income	153		153	75		75
Gains on investments		342	342		617	617
	153	342	495	75	617	692
Investment management fees Performance incentive fees Recoverable VAT	(53)	(159)	(212)	(55)	(165)	(220)
Other expenses Return on ordinary activities before tax Tax on ordinary activities	(99) 1	183	(99) 184	(355) (335)	452	(355) 117
Return attributable to equity shareholders	1	183	184	(335)	452	117

Income Statement

for the year ended 28 February 2011

'D' Shares

	Year	ended 28 February	2011	Year ended 28 February 2010
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Income	52		52	21		21
Losses on investments		(90)	(90)
	52	(90)	(38)	21		21
Investment management fees Performance incentive fees	(37)	(113)	(150)	(23)	(69)	(92)
Recoverable VAT Other expenses	(58)		(58)	(54)		(54)
Return on ordinary activities before tax	(43)	(203)	(246)	(56)	(69)	(125)
Tax on ordinary activities
Return attributable to equity shareholders	(43)	(203)	(246)	(56)	(69)	(125)

Reconciliation of Movements in Shareholders' Funds for the year ended 28 February 2011

	Year	ended 28	February	2011	Year	ended 28 February 2010
	Ordinary	'C'	'D'		Ordinary	'C'	'D'
	Shares	Shares	Shares	Total	Shares	Shares	Shares	Total
Note	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000

Opening shareholders' funds	12,929	10,996	5,097	29,022	13,824	11,053		24,877
Issue of shares	1,199		2,800	3,999			5,526	5,526
Share issue costs	(66)		(154)	(220)			(304)	(304)
Purchase of own shares	(249)	(38)	(51)	(338)	(180)	(28)		(208)
Total recognised gains/(losses) for the year	3,601	184	(246)	3,539	(475)	117	(125)	(483)
Distributions 9	(2,036)			(2,036)	(240)	(146)		(386)

Closing shareholders' funds	15,378	11,142	7,446	33,966	12,929	10,996	5,097	29,022

Theaccompanyingnotesareanintegralpartofthesefinancialstatements.

Balance Sheet

as at 28 February 2011

		28 February 2011					28 February 2010
		Ordinary	'C'	'D'		Ordinary	'C'	'D'
		Shares	Shares	Shares	Total	Shares	Shares	Shares	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Fixed assets
Investments	11	11,016	8,833	1,641	21,490	9,543	7,114		16,657

Current assets
Debtors	12	160	109	19	288	31	9	1	41
Current investments	13	3,400	1,350	4,450	9,200	3,190	3,460	3,550	10,200
Cash at bank and in hand		1,464	950	1,400	3,814	1,172	519	2,633	4,324
		5,024	2,409	5,869	13,302	4,393	3,988	6,184	14,565
Creditors: amounts falling
due within one year	14	(662)	(100)	(64)	(826)	(1,007)	(106)	(1,087)	(2,200)

Net current assets		4,362	2,309	5,805	12,476	3,386	3,882	5,097	12,365
Total assets less current	liabilities/
Net assets		15,378	11,142	7,446	33,966	12,929	10,996	5,097	29,022

Capital and reserves
Called up share capital	15	1,260	3,629	83	4,972	1,179	3,643	55	4,877
Capital redemption reserve	16	211	26	1	238	185	12		197
Share premium	16	1,026		7,785	8,811			5,167	5,167
Special reserve	16	8,247	6,666		14,913	8,961	9,676		18,637
Capital reserve – realised	16	3,700		(182)	3,518	3,553		(69)	3,484
Revaluation reserve	16	622	1,016	(90)	1,548	(1,041)	(2,139)		(3,180)
Revenue reserve	16	312	(195)	(151)	(34)	92	(196)	(56)	(160)
Equity shareholders' funds		15,378	11,142	7,446	33,966	12,929	10,996	5,097	29,022

Net asset value per share	17	61.0p	76.8p	90.0p		54.8p	75.5p	92.2p

Thefinancialstatementsonpages-41 to-60 wereapprovedandauthorisedforissuebythe-Boardof-Directorson-30-June-2011andweresignedonitsbehalfby

Andrew-Davison-Chairman-ProVen-VCTplc-Companynumber:-3911323-

Theaccompanyingnotesareanintegralpartofthesefinancialstatements.-

Cash Flow Statement

for the year ended 28 February 2011

		Year ended 28 February 2011				Year ended 28 February 2010
		Ordinary	'C'	'D'		Ordinary	'C'	'D'
		Shares	Shares	Shares	Total	Shares	Shares	Shares	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000

Net cash (outflow)/inflow from
operating activities	18	(582)	(264)	(1,197)	(2,043)	(1,463)	(198)	961	(700)

Capital expenditure
Purchase of investments	11	(984)	(1,885)	(1,731)	(4,600)	(1,203)	(1,799)		(3,002)
Sale of investments	11	3,220	508		3,728	547	21		568
Net cash (outflow)/inflow from
capital expenditure		2,236	(1,377)	(1,731)	(872)	(656)	(1,778)		(2,434)

Equity dividends paid	9	(2,036)			(2,036)	(240)	(146)		(386)

Management of liquid resources
Purchase of current investments	held as
liquidity funds		(210)		(900)	(1,110)			(3,550)	(3,550)
Withdrawal from liquidity funds			2,110		2,110	1,000	2,550		3,550
Net cash inflow/(outflow) from
liquid resources		(210)	2,110	(900)	1,000	1,000	2,550	(3,550)

Net cash (outflow)/inflow
before financing		(592)	469	(3,828)	(3,951)	(1,359)	428	(2,589)	(3,520)

Financing
Proceeds from share issues		1,199		2,800	3,999			5,526	5,526
Share issue costs	15	(66)		(154)	(220)			(304)	(304)
Purchase of own shares	15	(249)	(38)	(51)	(338)	(180)	(28)		(208)
Net cash inflow/(outflow) from
financing		884	(38)	2,595	3,441	(180)	(28)	5,222	5,014

(Decrease)/increase in cash	19	292	431	(1,233)	(510)	(1,539)	400	2,633	1,494

Theaccompanyingnotesareanintegralpartofthesefinancialstatements.-

Notes to the Accounts

for the year ended 28 February 2011

1 Accounting policies

Basisofaccounting-

The-Companyhasprepareditsfinancialstatementsunder-UK-Generally-Accepted-Accounting-Practice-("UK-GAAP")andinaccordancewiththe-Statementof-Recommended-Practice-"Financial-Statementsof-Investment-Trust-Companiesand-Venture-Capital-Trusts"revised-January-2009-("SORP").-

Thefinancialstatementsarepreparedunderthehistoricalcostconventionexceptfortherevaluationofcertainfinancialinstrumentsmeasuredatfairvalue.-

The-Companyimplementsnew-Financial-Reporting-Standards-("FRS")issuedbythe-Accounting-Practices-Boardwhenrequired.-

Goingconcern

The-Directorshave,atthetimeofapprovingthefinancialstatements,areasonableexpectationthatthe-Companyhasadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.-Thustheycontinuetoadoptthegoingconcernbasisofaccountinginpreparingthefinancialstatements.-Furtherdetailiscontainedinthe-Statementof-Corporate-Governanceonpage-34.-

Presentationof-Income-Statement-

Inordertobetterreflecttheactivitiesofaninvestmentcompanyandinaccordancewithguidanceissuedbythe-Associationof-Investment-Companies-("AIC"),supplementaryinformationwhichanalysesthe-Income-Statementbetweenitemsofarevenueandcapitalnaturehasbeenpresentedalongsidethe-Income-Statement.-Thenetrevenueisthemeasurethe-Directorsbelieveappropriateinassessingthe-Company'scompliancewithcertainrequirementssetoutin-Part-6ofthe-Income-Tax-Act-2007.

Fixedassetsinvestments-

Investmentsaredesignatedas-"fairvaluethroughprofitorloss"assetsduetoinvestmentsbeingmanagedandperformanceevaluatedonafairvaluebasis.-Afinancialassetisdesignatedwithinthiscategoryifitisbothacquiredandmanaged,withaviewtosellingafteraperiodoftime,inaccordancewiththe-Company'sdocumentedinvestmentpolicy.-Thefairvalueofaninvestmentuponacquisitionisdeemedtobecost.-Thereafter,investmentsaremeasuredatfairvalueinaccordancewiththe-International-Private-Equityand-Venture-Capital-Valuation-Guidelines-("IPEV-Guidelines")togetherwith-FRS26--Financial-Instruments:-Recognitionand-Measurements.-

Publiclytradedinvestmentsaremeasuredusingbidpricesinaccordancewiththe-IPEV-Guidelines.-

Thevaluationmethodologiesusedbythe-Directorsforassessingthefairvalueofunquotedinvestmentsareasfollows:-

- Priceofrecentinvestment;-
-Multiples;-
- Netassets;-
- Discountedcashflowsorearnings-(ofunderlyingbusiness);-
- Discountedcashflows-(fromtheinvestment);and-
- Industryvaluationbenchmarks.-

Themethodologyappliedtakesaccountofthenature,factsandcircumstancesoftheindividualinvestmentandusesreasonabledata,marketinputs,assumptionsandestimatesinordertoascertainfairvalue.-

Fixedassetinvestmentsarederecognisedwhenthecontractualrightstothecashflowsfromtheassetexpireorittransferstheassetandsubstantiallyalltherisksandrewardsofownershipoftheassettoanotherentity.-

Notes to the Accounts (continued)

for the year ended 28 February 2011

1 Accounting policies (continued)

Whereaninvesteecompanyhasgoneintoreceivershiporliquidation,orthereislittlelikelihoodofarecoveryfromacompanyinadministration,thelossontheinvestment,althoughnotphysicallydisposedof,istreatedasbeingrealised.-

Gainsandlossesarisingfromchangesinfairvalueareincludedinthe-Income-Statementfortheyearasacapitalitem.-

Itisnotthe-Company'spolicytoexercisesignificantinfluenceoverinvesteecompanies.-Therefore,theresultsofthesecompaniesarenotincorporatedintothe-Income-Statementexcepttotheextentofanyincomeaccrued.-Thisisinaccordancewiththe-SORPthatdoesnotrequireportfolioinvestmentstobeaccountedforusingtheequitymethodofaccounting.-

Currentassetsinvestments-

Currentassetinvestments,whichcompriseinvestmentsinliquidityfundswith-AAArating,areheldatfairvaluethroughprofitandlossandaremarkedtomarket.-Theseassetsarepurchasedandredeemedunderacontractandtheassetsarerecognisedandderecognisedonthetradedate.-Theseassetsareinitiallymeasuredatcostandsubsequentlyvaluedatfairvalue,beingtheclosingpriceofthefundasissuedbytheprovider.-

Income-

Dividendincomefrominvestmentsisrecognisedwhentheshareholders'rightstoreceivepaymenthasbeenestablished,normallytheexdividenddate,or,wherenoexdividenddateisestablished,whenthe-Company'srighttoreceivepaymentisestablished.-

Interestincomeisaccruedonatimebasis,byreferencetotheprincipaloutstandingandattheeffectiveinterestrateapplicableandonlywherethereisreasonablecertaintyofcollection.-Incomewhichisnotcapableofbeingreceivedwithinareasonableperiodoftimeisreflectedinthecapitalvalueoftheinvestments.-

Expenses-

Allexpensesareaccountedforonanaccrualsbasis.-Inrespectoftheanalysisbetweenrevenueandcapitalitemspresentedwithinthe-Income-Statement,allexpenseshavebeenpresentedasrevenueitemsexceptasfollows:-

expenseswhichareincidentaltotheacquisitionofaninvestmentaredeductedfromthe-Capital-Account;-
expenseswhichareincidentaltothedisposalofaninvestmentaredeductedfromthedisposalproceedsoftheinvestment;and-
expensesaresplitandpresentedpartlyascapitalitemswhereaconnectionwiththemaintenanceorenhancementofthevalueoftheinvestmentsheldcanbedemonstratedandaccordinglytheinvestmentmanagementfeehasbeenallocated-25%torevenueand-75%tocapital,inordertoreflectthe-Directors'expectedlongtermviewofthenatureoftheinvestmentreturnsofthe-Company.-

Taxation-

Thetaxeffectsofdifferentitemsinthe-Income-Statementareallocatedbetweencapitalandrevenueonthesamebasisastheparticularitemtowhichtheyrelateusingthe-Company'seffectiverateoftaxfortheaccountingperiod.-

Duetothe-Company'sstatusasaventurecapitaltrustandthecontinuedintentiontomeettheconditionsrequiredtocomplywith-Part-6ofthe-Income-Tax-Act-2007,noprovisionfortaxationisrequiredinrespectofanyrealisedorunrealisedappreciationofthe-Company'sinvestments.-

Deferredtaxationisprovidedinfullontimingdifferencesthatresultinanobligationatthebalancesheetdatetopaymoretax,orarighttopaylesstax,atafuturedate,atratesexpectedtoapplywhentheycrystallisebasedoncurrenttaxratesandlaw.-

1 Accounting policies (continued)

Taxation-(continued)-

Timingdifferencesarisefromtheinclusionofitemsofincomeandexpenditureintaxationcomputationsinperiodsdifferentfromthoseinwhichtheyareincludedinthefinancialstatements.-Deferredtaxassetsarerecognisedtotheextentthatitisregardedasmorelikelythannotthattheywillberecovered.-Deferredtaxassetsandliabilitiesarenotdiscounted.-

Otherdebtorsandothercreditors-

Otherdebtorsandothercreditorsareincludedwithintheaccountsatamortisedcostlessprovisionforimpairment.-

Shareissuecosts-

Expensesinrelationtoshareissuesaredeductedfromthe-Share-Premium-Accountuponallotmentofshares.-

2 Income

	2011	2010

	£'000	£'000
Income from investments
Loan stock interest	707	144
Dividend income	43	32
Liquidity funds interest	58	68
	808	244
Other income
Deposit interest	23	22
Other income
	831	266

The-Directorsconsiderthatthe-Companyhasoneclassofbusinessandthatallitsactivitiesariseinthe-United-Kingdom.-

3 Investment management fees

	2011	2010
	£'000	£'000

Investment management fees	640	575

The-Companyhasanagreementwith-Beringea-LLPfortheprovisionofmanagementservicesinrespectofitsportfolioofventurecapitalinvestments,whichisterminablewithoneyear'snotice.-Themanagementfeeisbaseduponanannualamountof-2.0%ofnetassets.-Theannualrunningcosts-(excludingperformanceincentivefeesandtrailcommission)ofthe-Companyaresubjecttoacapof-3.25%ofthe-Company'snetassets.-

4 Performance incentive fees

	2011	2010
	£'000	£'000

Beringea LLP	327	44
Downing Corporate Finance Limited	33	9
	360	53

Beringea-LLP-("Beringea")and-Downing-Corporate-Finance-Limited-("DCF")areentitledtoreceiveperformanceincentivefeesasdescribedinthe-Directors'-Reportonpage-27.-Theperformanceincentivefeesaboverelatesolelytothe-Ordinary-Sharesandarestatedinclusiveof-VAT.-Feesareattributedtocapitalorrevenueinaccordancewiththedividendonwhichtheyarebased.-Noperformanceincentivefeesweredueduringtheyearinrespectofthe-'C'-Sharepoolorthe-'D'-Sharepool.

Notes to the Accounts (continued)

for the year ended 28 February 2011

5 Recoverable VAT

	2011	2010
	£'000	£'000
VAT recoverable on investment management fees		1
Other expenses
	2011	2010
	£'000	£'000

Administration services	57	53
Directors' remuneration	72	72
Social security costs	5	5
Auditor's remuneration for audit of the Company's annual accounts	19	16
Provision for loan stock interest (previously recognised)		411
Other	100	156
	253	713

7 Directors' remuneration

Detailsofremuneration-(excludingemployers'-NICand-VAT)aregiveninthe-Directors'-Remuneration-Reportonpage-36.-

The-Companyhadnoemployees-(otherthan-Directors)duringeitheryear.-Costsinrespectof-Directorsaredisclosedinnote-6.-

8 Tax on ordinary activities

	2011	2010
	£'000	£'000
(a) Tax charge for year
Current year
UK corporation tax (charged to the revenue account)
Charged to capital expenses
Charge for year
(b) Factors affecting tax charge for the year
Return on ordinary activities before taxation	3,539	(483)
Tax charge calculated on return on ordinary activities before taxation at the
applicable rate of 21% (2010: 28%)	743	(135)
Effects of:
UK dividend (income)	(9)	(9)
Gain on investments	(832)	(165)
Disallowable expenses	11	13
Excess capital investment management fees	87	296

(c)-Excessmanagementfees

Excessmanagementfees,whichareavailabletobecarriedforwardandsetoffagainstfuturetaxableincome,amountedto-£4,066,000-(2010:-£3,650,000).-Thedeferredtaxassetof-£1,098,000-(2010:-£1,022,000)hasnotbeenrecognisedduetothefactthatitisunlikelytheexcessmanagementfeeswillbesetoffintheforeseeablefuture.-

9 Dividends

		Year ended	28 February	2011	Year	ended 28 February	2010
		Revenue	Capital	Total	Revenue	Capital	Total
	Pence	£'000	£'000	£'000	£'000	£'000	£'000
Ordinary Share dividends
Paid in year
2010 Final	8.00		2,036	2,036
2009 Final	1.00					240	240
			2,036	2,036		240	240
'C' Share dividends
Paid in year
2009 Final	1.00					146	146
						146	146

The-Companydeclaredaninterimdividendinrespectoftheyearended-28-February-2011of-6.25pper-Ordinary-Share-(being-1.8prevenueand-4.45pcapital)on-15-February-2011,tobepaidon-29-July-2011to-Shareholdersontheregisteron-3-June-2011.-Itisestimatedthattheaggregateamountofthisdividendwillbe-£1,729,000basedonthe-Ordinary-Sharesinissueatthedateofthisreport.-

10 Basic and diluted return per share

	Year	ended 28 February	2011	Year ended 28 February 2010
	Ordinary	'C'	'D'	Ordinary	'C'	'D'
	Shares	Shares	Shares	Shares	Shares	Shares
Revenue return per share based on:
Net revenue after taxation (£'000)	460	1	(43)	(200)	(335)	(56)
Weighted average number of
shares in issue	25,260,698	14,524,976	7,964,787	23,857,331	14,610,800	5,077,961

Pence per share	1.8p	(0.0p)	(0.5p)	(0.8p)	(2.3p)	(1.1p)
Capital return/(loss) per share based	on:
Net capital gain/(loss) for the
financial year (£'000)	3,141	183	(203)	(275)	452	(69)
Weighted average number of
shares in issue	25,260,698	14,524,976	7,964,787	23,857,331	14,610,800	5,077,961
Pence per share	12.4p	1.3p	(2.6p)	(1.2p)	3.1p	(1.4p)

Asthe-Companyhasnotissuedanyconvertiblesecuritiesorshareoptions,thereisnodilutiveeffectonreturnpershare.-Thereturnpersharedisclosedthereforerepresentsbothbasicanddilutedreturnpershare.-

Notes to the Accounts (continued)

for the year ended 28 February 2011

11 Investments

"Fairvaluethroughprofitorloss"assets

	Investments quoted	Unlisted
	on AIM	investments	Total
	£'000	£'000	£'000

Opening cost at 1 March 2010	1,573	18,264	19,837
Losses at 1 March 2010	(1,036)	(2,144)	(3,180)
Opening fair value at 1 March 2010	537	16,120	16,657

Movement in year
Purchases at cost		4,600	4,600
Sales proceeds		(3,728)	(3,728)
realised gains on sales		1,244	1,244
Unrealised gains in the income statement	85	2,632	2,717

Closing fair value at 28 February 2011	622	20,868	21,490

Closing cost at 28 February 2011	1,574	18,369	19,943
(Losses)/gains at 28 February 2011	(952)	2,499	1,547
Closing fair value at 28 February 2011	622	20,868	21,490

Thebasisofvaluationwaschangedforanumberofinvestmentsheldthroughouttheyear.-Thecombinedeffectofthesechangeswasanupliftof-£583,000inthevaluationofthe-Ordinary-Sharepoolandareductionof-£37,000inthevaluationofthe-'C'-Sharepool,relativetotheprioryear.-Inthe-Ordinary-Sharepool,thevaluationof-Campden-Media-(28-February-2011valuation-£1,170,000,upliftof-£392,000)waschangedfromanearningsmultiplebasistoapriceofrecentinvestmentbasisandthevaluationof-Think-(28-February-2011valuation-£741,000,upliftof-£338,000)waschangedfromapriceofrecentinvestmentbasistoanearningsmultiplebasis.-Inthe-'C'-Sharepool,thevaluationof-Charterhouse-Leisure-(28-February-2011valuation-£679,000,adecreaseof-£186,000)waschangedfromapriceinrecentinvestmentbasistoanearningsmultiplebasis;thevaluationof-Chess-Dynamics-(28-February-2011valuation-£455,000,adecreaseof-£204,000)waschangedfromarevenuemultiplebasistoanearningsmultiplebasis;thevaluationof-Think-(28-February-2011valuation-£741,000,upliftof-£338,000)waschangedfromarevenuemultiplebasistoanearningsmultiplebasis;andthevaluationof-Blismobile-(28-February-2011valuation-£270,000,upliftof-£196,000)waschangedfromarevenuemultiplebasistoapriceofrecentinvestmentbasis.-The-Directorsconsiderthesechangeswerenecessarytoenableabetterassessmentofthefairvalueoftherelevantinvestments.-

12 Debtors

	2011	2010
	£'000	£'000

Other debtors	238
Prepayments and accrued Income	50	41
	288	41
13 Current investments
"Fair value through profit or loss" assets	2011	2010
	£'000	£'000
BlackRock Liquidity Fund (formerly BGI Sterling Liquidity First Fund)	3,000	3,000
Insight Liquidity Fund	3,000	3,000
Standard Life Investments GBP Liquidity Fund	2,000	3,000
RBS Liquidity Fund	1,200	1,200
	9,200	10,200

14 Creditors: amounts falling due within one year

	2011	2010
	£'000	£'000

Unallotted share capital	538	948
Other social security costs	7	7
Other creditors		986
Accruals and deferred income	281	259
	826	2,200

Othercreditorsareinvestorsubscriptionsfor-'D'-Sharesand-Ordinary-Sharesowedto-ProVen-Growthand-Income-VCTplcand-ProVen-Health-VCTplc.

15 Called up share capital

	2011	2010
	£'000	£'000
Issued, allotted, called up and fullypaid:
25,190,612 (2010: 23,578,646) Ordinary Shares of 5p each	1,260	1,179
14,514,942 (2010: 14,571,317) 'C' Shares of 25p each	3,629	3,643
8,269,911 (2010: 5,525,501) 'D' Shares of 1p each	83	55
	4,972	4,877

Managementofcapital-

The-Company'scapitalismanagedinaccordancewithitsinvestmentpolicyasshowninthe-Directors'-Report,inpursuitofitsprincipalinvestmentobjectivesasstatedonpage-1.-Therehasbeennosignificantchangeintheobjectives,policiesorprocessesformanagingcapitalfromthepreviousyear.-

Byitsnaturethe-Companyhasanamountofcapitalwhichmustbeinvested,andretained,intherelativelyhighriskassetclassofsmall-UKcompaniesbroadlywithinthreeyearsofthatcapitalbeingsubscribed.-The-Companyaccordinglyhaslimitedscopetomanageitscapitalstructureinlightofchangesineconomicconditionsandtheriskcharacteristicsoftheunderlyingassets.-Subjecttothisoverallconstraintuponthechangingcapitalstructure,the-Companymayadjusttheamountofdividendspaidto-Shareholders,purchaseitsownshares,issuenewsharesorsellassetsifsorequiredtomaintainalevelofliquiditytoremainagoingconcern.-Althoughthe-Companyispermittedtoborrowtogiveadegreeofflexibility,therearenocurrentplanstodoso.-

Asthe-Companyhasalowlevelofliabilities,the-Boardconsidersthe-Company'snetassetstobeitscapital.-The-Companydoesnothaveanyexternallyimposedcapitalrequirements.-

The-Companyhastheauthoritytobuybacksharesasdescribedinthe-Directors'-Report.-

Between-23-March-2010and-29-October-2010,-2,800,108-'D'-Sharesof-1peach-("'D'-Shares")withanaggregatenominalvalueof-£28,000,wereissuedat-£1persharepursuanttotheofferforsubscriptionunderaprospectusdated-20-November-2009.-Theaggregateconsiderationfortheshareswas-£2,800,000whichexcludedshareissuecostsof-£154,000.-

Between-1-April-2010and-28-May-2010,-2,136,795-Ordinary-Sharesof-5peach-("Ordinary-Shares")withanaggregatenominalvalueof-£107,000,wereissuedat-56.1ppersharepursuanttothetopupofferforsubscriptiondated-16-November-2009.-Theaggregateconsiderationfortheshareswas-£1,199,000whichexcludedshareissuecostsof-£66,000.-

Notes to the Accounts (continued)

for the year ended 28 February 2011

15 Called up share capital (continued)

Duringtheyear,the-Companyrepurchased-524,829-Ordinary-Shareswithanaggregatenominalvalueof-£26,000,foranaverageconsiderationof-47.4ppersharebeinganaggregateconsiderationof-£249,000,andrepresenting-2.2%oftheissued-Ordinary-Sharecapital.-Thesesharesweresubsequentlycancelled.-

Duringtheyear,the-Companyrepurchased-56,375-'C'-Sharesof-25peachwithanaggregatenominalvalueof-£14,000,foranaverageconsiderationof-66.8ppersharebeinganaggregateconsiderationof-£38,000,andrepresenting-0.4%oftheissued-'C'-Sharecapital.-Thesesharesweresubsequentlycancelled.-

Duringtheyear,the-Companyrepurchased-55,698-'D'-Sharesof-1peachwithanaggregatenominalvalueof-£600,foranaverageconsiderationof-91.0ppersharebeinganaggregateconsiderationof-£51,000,andrepresenting-1.0%oftheissued-'D'-Sharecapital.-Thesesharesweresubsequentlycancelled.-

16 Reserves

	Capital			Capital
	redemption	Special	Share	reserve	Revaluation	Revenue
	reserve	reserve	premium	realised	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000


At 1 March 2010	197	18,637	5,167	3,484	(3,180)	(160)	24,145
Issue of new shares			3,644				3,644
Purchase of own shares	41	(288)				(52)	(299)
Expenses capitalised				(840)			(840)
Gains on investments				1,244	2,718		3,962
Retained revenue						418	418
Transfer between reserves		(3,436)		1,666	2,010	(240)
Distributions paid				(2,036)			(2,036)
At 28 February 2011	238	14,913	8,811	3,518	1,548	(34)	28,994

Split between:

Ordinary Shares
At 1 March 2010	185	8,961		3,553	(1,041)	92	11,750
Issue of new shares			1,026				1,026
Purchase of own shares	26	(250)					(224)
Expenses capitalised				(568)			(568)
Gains on investments				1,889	1,821		3,710
Retained revenue						460	460
Transfer between reserves		(464)		862	(158)	(240)
Distributions paid				(2,036)			(2,036)
At 28 February 2011	211	8,247	1,026	3,700	622	312	14,118

'C' Shares
At 1 March 2010	12	9,676			(2,139)	(196)	7,353
Issue of new shares
Purchase of own shares	14	(38)					(24)
Expenses capitalised				(159)			(159)
Gains/(losses) on investments				(645)	987		342
Retained revenue						1	1
Transfer between reserves		(2,972)		804	2,168
Distributions paid
At 28 February 2011	26	6,666			1,016	(195)	7,513

16 Reserves (continued)

	Capital			Capital
	redemption	Special	Share	reserve	Revaluation	Revenue
	reserve	reserve	premium	realised	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000

'D' Shares
At 1 March 2010			5,167	(69)		(56)	5,042
Issue of new shares			2,618				2,618
Purchase of own shares	1					(52)	(51)
Expenses capitalised				(113)			(113)
Gains/(losses) on investments					(90)		(90)
Retained revenue						(43)	(43)
Distributions paid
At 28 February 2011	1		7,785	(182)	(90)	(151)	7,363

The-Specialreserveisavailabletothe-Companytoenablethepurchaseofitsownsharesinthemarketwithoutaffectingitsabilitytopaycapitaldistributions.-The-Specialreserve,-Capitalreserve-–realisedand-Revenuereservearealldistributablereserves.-The-Revaluationreserveincludeslossesof-£2,977,000whichthedistributablereservesisreducedby.-

17 Basic and diluted net asset value per share

			2011		2010
	Shares in	Issue	Net asset	value	Net asset	value
			per		per
	2011	2010	share	£'000	share	£'000

Ordinary Shares	25,190,612	23,578,646	61.0p	15,378	54.8p	12,929
'C' Shares	14,514,942	14,571,317	76.8p	11,142	75.5p	10,996
'D' Shares	8,269,911	5,525,501	90.0p	7,446	92.2p	5,097
				33,966		29,022

Asthe-Companyhasnotissuedanyconvertiblesecuritiesorshareoptions,thereisnodilutiveeffectonnetassetpershare.-Thenetassetvaluepersharedisclosedthereforerepresentsbothbasicanddilutedreturnpershare.-

18 Reconciliation of return on ordinary activities before tax to net cash flow from operating activities

	2011				2010
	Ordinary	'C'	'D'		Ordinary	'C'	'D'
	Shares	Shares	Shares	Total	Shares	Shares	Shares	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Return/loss return on ordinary activities before taxation	3,601	184	(246)	3,539	(475)	117	(125)	(483)
Loss/(gain) on investment	(3,709)	(342)	90	(3,961)	26	(617)		(591)
(Increase)/decrease in prepayments, accrued income and other debtors	(129)	(100)	(18)	(247)	584	299	(1)	882
(Decrease)/increase in accruals and other creditors	(345)	(6)	(1,023)	(1,374)	(1,598)	3	1,087	(508)
Net cash (outflow)/inflow from operating activities	(582)	(264)	(1,197)	(2,043)	(1,463)	(198)	961	(700)

Notes to the Accounts (continued)

for the year ended 28 February 2011

19 Reconciliation of net cash flow to movement in net funds

	2011	2010
	£'000	£'000

Beginning of year	4,324	2,830
Net cash (outflow)/ inflow	(510)	1,494
End of year	3,814	4,324

20 Financial instruments

The-Company'sfinancialinstrumentscompriseequityandloanstockinvestmentsinquotedcompaniesandunquotedcompanies,liquidityfunds,cashdepositsandshorttermdebtorsandcreditorsarisingfromitsoperations.-Themainpurposeofthesefinancialinstrumentsistogeneratecashflow,revenueandcapitalappreciationforthe-Company'soperations.-The-Companyhasnogearingorotherfinancialliabilitiesapartfromshorttermcreditorsanddoesnotuseanyderivatives.-

Principalrisksandmanagementobjectives-

The-Company'sinvestmentactivitiesexposethe-Companytoanumberofrisksassociatedwithfinancialinstrumentsandthesectorsinwhichthe-Companyinvest.-Theprincipalfinancialriskarisingfromthe-Company'soperationsare:-

- Marketrisks;-
- Creditrisk;and-
- Liquidityrisk.-

The-Boardregularlyreviewstheserisksandthepoliciesinplaceformanagingthem.-Therehavebeennosignificantchangestothenatureoftherisksthatthe-Companyisexposedtoovertheyearandtherehavealsobeennosignificantchangestothepoliciesformanagingthoserisksduringtheyear.-

Theriskmanagementpoliciesusedbythe-Companyinrespectoftheprincipalfinancialrisksandareviewofthefinancialinstrumentsheldattheyearendareprovidedbelow:-

Marketrisks-

Asa-VCT,the-Companyisexposedtomarketrisksintheformofpotentiallossesandgainsthatmayariseontheinvestmentsitholds.-Themanagementofthesemarketrisksisafundamentalpartofinvestmentactivitiesundertakenbythe-Investment-Managerandoverseenbythe-Board.-The-Managermonitorsinvestmentsthroughregularcontactwithmanagementofinvesteecompanies,regularreviewofmanagementaccountsandotherfinancialinformationandattendanceatinvesteecompanyboardmeetings.-Thisenablesthe-Managertomanagetheinvestmentriskinrespectofindividualinvestments.-Marketriskisalsomitigatedbyholdingaportfoliodiversifiedacrossseveralbusinesssectorsandassetclasses.-

Thekeymarketriskstowhichthe-Companyisexposedare:-

- Marketpricerisk;and-
- Interestraterisk.-

Marketpricerisk-

Marketpriceriskarisesfromuncertaintyaboutthefuturepricesandvaluationsoffinancialinstrumentsheldinaccordancewiththe-Company'sinvestmentobjectives.-Itrepresentsthepotentiallossthatthe-Companymightsufferthroughmarketpricemovementsinrespectofquotedinvestmentsandalsochangesinthefairvalueofunquotedinvestmentsthatitholds.-

At-28-February-2011,the-AIMquotedportfoliowasvaluedat-£622,000-(2010:-£537,000).-

20 Financial instruments (continued)

The-Company'ssensitivitytofluctuationsinthesharepricesofits-AIMquotedinvestmentsissummarisedbelow.-A-10%movementinthesharepriceofallofthe-AIMquotedstocksheldbythe-Companywouldhaveaneffectasfollows:-

10% movement in AIMquoted stocks		2011		2010
	Impact on net assets £'000	Impact on NAV per share pence	Impact on net assets £'000	Impact on NAV per share pence
Ordinary Shares	62	0.3p	54	0.2p
'C' Shares
'D' Shares

At-28-February-2011,theunquotedportfoliowasvaluedat-£20,868,000-(2010:-£16,120,000).-

Asmanyofthe-Company'sunquotedinvestmentsarevaluedusingrevenueorearningsmultiplesofcomparablecompaniesorsectors,afallinsharepricesgenerallywouldimpactonthevaluationoftheunquotedportfolio.-A-10%movementinthevaluationsofalloftheunquotedinvestmentsheldbythe-Companywouldhaveaneffectasfollows:

10% movement in unquoted	investment valuations			2010
	Impact on net assets		Impact on net assets	Impact on NAV per share
	£'000	pence	£'000	pence
Ordinary Shares	1,039	4.1p	901	3.8p
'C' Shares	883	6.1p	711	4.9p
'D' Shares	164	2.0p

Thesensitivityanalysisforunquotedvaluationsaboveassumesthateachofthesubcategoriesoffinancialinstruments-(ordinaryshares,preferencesharesandloanstocks)heldbythe-Companyproducesanoverallmovementof-10%.-Shareholdersshouldnotethatequalcorrelationbetweenthesesubcategoriesisunlikelytobethecaseinreality,particularlyinthecaseofloanstockinstruments.-Wheresharepricesarefalling,theequityinstrumentcouldfallinvaluebeforetheloanstockinstrument.-Itisnotconsideredpracticaltoassessthesensitivityoftheloanstockinstrumentstomarketpriceriskinisolation.-

Interestraterisk-

The-Companyisexposedtointerestrateriskonfloatingratefinancialassetsthroughtheeffectofchangesinprevailinginterestrates.-The-Companyreceivesinterestonitscashdepositsatarateagreedwithitsbankersandonliquidityfundsatratesbasedontheunderlyinginvestments.-Investmentsinloanstockandfixedinterestinvestmentsattractinterestpredominatelyatfixedrates.-Asummaryoftheinterestrateprofileofthe-Company'sinvestmentsisshownbelow.-

Therearethreecategoriesinrespectofinterestwhichareattributabletothefinancialinstrumentsheldbythe-Companyasfollows:-

- "Fixedrate"assetsrepresentinvestmentswithpredeterminedyieldtargetsandcomprisecertainloannoteinvestmentsand-Preference-Shares.-
- -"Floatingrate"assetspredominantlybearinterestatrateslinkedto-Bankof-Englandbaserateor-LIBORandcomprisecashatbankandliquidityfundinvestmentsandcertainloannoteinvestments.-
- "Nointerestrate"assetsdonotattractinterestandcompriseequityinvestments,certainloannoteinvestments,loansandreceivables-(excludingcashatbank)andotherfinancialliabilities.-

Notes to the Accounts (continued)

for the year ended 28 February 2011

20 Financial instruments (continued)

	Average interest rate	Average period until maturity	2011 £'000	2010 £'000
Fixed rate	6.7%	1,331 days	7,680	5,412
Floating rate	0.9%		14,558	14,524
No interest rate			11,728	9,086
			33,966	29,022

The-Companymonitorsthelevelofincomereceivedfromfixed,floatingandnoninterestrateassetsand,ifappropriate,maymakeadjustmentstotheallocationbetweenthecategories,inparticular,shouldthisberequiredtoensurecompliancewiththe-VCTregulations.-

Basedontheassumptionthattheyieldofallfloatingratefinancialinstrumentswouldchangebyanamountequaltothemovementinprevailinginterestrates,itisestimatedthatanincreaseof-1%ininterestrateswouldhaveincreasedtotalreturnbeforetaxationfortheyearby-£145,000.-Asthe-Bankof-Englandbaseratestoodat-0.5%perannumthroughouttheyear,itisnotbelievedthatareductionfromthislevelislikely.-

Creditrisk-

Creditriskistheriskthatacounterpartytoafinancialinstrumentisunabletodischargeacommitmenttothe-Companymadeunderthatinstrument.-The-Companyisexposedtocreditriskthroughitsholdingsofloanstockin investee companies, investments in liquidity funds, cash deposits and debtors.- Credit risk relating to loanstockinvesteecompaniesisconsideredtobepartofmarketrisk.-

The-Company'sexposuretocreditriskissummarisedasfollows:-

	2011	2010
	£'000	£'000

Investments in liquidity funds	9,200	10,200
Investments in loan stocks	9,762	7,572
Cash and cash equivalents	3,814	4,324
Interest, dividends and other receivables	216	38
	22,992	22,134

The-Managermanagescreditriskinrespectofloanstockwiththeapproachdescribedunder-'marketrisks'above.-Similarlythemanagementofcreditriskassociatedwithinterest,dividendsandotherreceivablesiscoveredwithintheinvestmentmanagementprocedures.-

Creditriskinrespectofinvestmentsinliquidityfundsisminimisedbyinvestingin-AAAratedfunds.-

Cashismainlyheldby-Bankof-Scotlandplcand-Royal-Bankof-Scotlandplc,bothofwhichare-Aratedfinancialinstitutionsandbothalsoultimatelypartownedbythe-UK-Government.-Consequently,the-Directorsconsiderthattheriskprofileassociatedwithcashdepositsislow.-

Therehavebeennochangesinfairvalueduringtheyearthataredirectlyattributabletochangesincreditrisk.-

Liquidityrisk-

Liquidityriskistheriskthatthe-Companyencountersdifficultiesinmeetingobligationsassociatedwithitsfinancialliabilities.-Liquidityriskmayalsoarisefromeithertheinabilitytosellfinancialinstrumentswhenrequiredattheirfairvaluesorfromtheinabilitytogeneratecashinflowsasrequired.-The-Companygenerallymaintainsarelativelylowlevelofcreditors-(£289,000at-28-February-2011excludingunallottedsharecapital)andhasnoborrowings.-Also,liquidityfundsandsomequotedinvestmentsheldbythe-Companyareconsideredtobereadilyrealisable.-The-Companyalwaysholdssufficientlevelsoffundsascashandreadilyrealisableinvestmentsinordertomeetexpensesandothercashoutflowsasrequired.-Forthesereasons,the-Boardbelievesthatthe-Company'sexposuretoliquidityriskisminimal.-

20 Financial instruments (continued)

The-Company'sliquidityriskismanagedbythe-Investment-Managerinlinewithguidanceagreedwiththe-Boardandisreviewedbythe-Boardatregularintervals.-

Althoughthe-Company'sinvestmentsarenotheldtomeetthe-Company'sliquidityrequirements,thetablebelowshowsananalysisoftheassets,highlightingthelengthoftimethatitcouldtakethe-Companytorealiseitsassetsifitwererequiredtodoso.-

Thecarryingvalueofloanstockinvestmentsheldat-28-February-2011,whichisanalysedbyexpectedmaturitydate,isasfollows:-

As at 28 February 2011	Not later	Between	Between	Between	More
	than 1	1 and 2	2 and 3	3 and 5	than 5
	year	years	years	years	years	Total
	£'000	£'000	£'000	£'000	£'000	£'000

Full performing loan stock		283	666	3,020	1,879	5,848
Renegotiated loan stock	125	1,272	660	1,438	419	3,914
Impaired loan stock
Past due loan stock
	125	1,555	1,326	4,458	2,298	9,762

Asat-28-February-2010 -

Full performing loan stock	607		636	3,734	45	5,022
Renegotiated loan stock	1,448	239	173	345	345	2,550
Impaired loan stock
Past due loan stock
	2,055	239	809	4,079	390	7,572

Loanstockinvestmentsshownas-"renegotiated"mayotherwisehavebeendisclosedas-"pastdue".-

Fair-Valueof-Financial-Instruments-

- - -- -

Investmentsarevaluedatfairvalueasdeterminedusingthemeasurementpoliciesdescribedinnote-1.-Thecarryingvalueoffinancialassetsandfinancialliabilitiesrecordedatamortisedcost,whichincludesshortformdebtorsandcreditors,isconsideredbythe-Directorstobeequivalenttotheirfairvalue.-

The-Companyhascategoriseditsfinancialinstrumentsthataremeasuredsubsequenttoinitialrecognitionatfairvalue,usingthefairvaluehierarchyasfollows:-

Level-1- Reflectsfinancialinstrumentsquotedinanactivemarket-(liquidityfundinvestments,investmentslistedonthe-Main-Marketandinvestmentsquotedon-AIM);-
Level-2- Reflectsfinancialinstrumentsthathavepricesthatareobservableeitherdirectlyorindirectly-(nosuchinvestmentscurrentlyheld);-
Level-3- Reflectsfinancialinstrumentsthathavepricesthatarenotbasedonobservablemarketdata-(unquotedequityinvestmentsandloannoteinvestments).-

Notes to the Accounts (continued)

for the year ended 28 February 2011

20 Financial instruments (continued)

		2011				2010
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000

AIM quoted	622			622	537			537
Loan notes			9,762	9,762			7,572	7,572
Unquoted			11,106	11,106			8,548	8,548
Liquidity fund	9,200			9,200	10,200			10,200
	9,822		20,868	30,690	10,737		16,120	26,857

Therewerenotransfersbetweenlevelsduringtheyear-(2010:none).

--- - --- - -- - - -

	£'000
Balance at 28 February 2010	16,120

Movements in the income statement:
Unrealised gains in the income statement	2,632
Realised gains in the income statement	1,244
	3,876

Purchases at cost	4,600
Sales proceeds	(3,728)
Balance at 28 February 2011	20,868

FRS-29requiresdisclosuretobemadeifchangingoneormoreoftheinputstoreasonablypossiblealternativeassumptionswouldresultinasignificantchangeinthefairvalueofthe-Level-3investments.-Thereisanelementofjudgementinthechoiceofassumptionsforunquotedinvestmentsanditispossiblethatdifferentassumptionscouldhavebeenmadeandthattheseassumptionscouldhaveresultedindifferentvaluationsforsomeinvestments.-The-Directorsand-Investment-Managerbelieve,however,thatthevaluationsasat-28-February-2011,calculatedinaccordancewith-IPEV-Guidelines,reflectthemostappropriateassumptionsatthatdateandthatitisnotpossibletoundertakeanymeaningfulsensitivityanalysiswhichwouldbeusefulto-Shareholders.-

21 Post balance sheet events

Between- 5- April- 2011 and the date of this report, the- Company issued- 2,519,590- Ordinary- Shares for anaggregateconsiderationof-£1,537,000.-Shareissuecoststhereonamountedto-£85,000.-

Furtherinvestmentstotalling-£393,000weremadeaftertheyearendin-Campden-Media-Limited,-Overtis-Group-Limitedand-SenseLogix-Limited.-

In-May-2011,the-Companyrealiseditsinvestmentin-Steak-Media-Limitedinasaleto-Japanesemediaagencynetwork,- Dentsu.- The disposal resulted in an initial profit over cost, with the possibility of further earnoutproceedsinthethreeyearsfollowingthesale.-

22 Contingencies, guarantees and financial commitments

The-Companyhasguaranteedbankborrowingsononeofitsinvestments,-Donatantonio-Limited,amountingto-£225,000.-Athirdpartyhasprovidedaguaranteetothe-Companyamountingto-£112,500inrespectoftheaboveguaranteesuchthatthe-Company'snetexposureis-£112,500-(2010:-£112,500).-

The-Companyhasnoothercontingentliabilities,guaranteesandfinancialcommitmentsattheyearend.-

23 Controlling party and related party transactions

Intheopinionofthe-Directorsthereisnoimmediateorultimatecontrollingparty.-

Beringea-LLP,ofwhich-Malcolm-Mossisapartner,actedaspromotertothefurther-Linked-'D'-Share-Offerandthe-Ordinary-Share-TopUp-Offer,bothlaunchedin-November-2009.-Beringea-LLPreceived-5.5%ofthegrossproceedsoftheoffers,outofwhichitpaidthecostsoftheoffersincludinginitialcommissions.-Thefeesintheyearamountedto-£154,000onthe-'D'-Share-Offerand-£66,000onthe-Ordinary-Share-Offer.-Noissuecostsweredueoroutstandingattheyearend.-

Beringea-LLPalsoactedasapromotertothe-Ordinary-Share-TopUp-Offerlaunchedin-January-2011.-Beringea-LLPreceives-5.5%ofthegrossproceedsoftheoffer,outofwhichitmustpaythecostsoftheofferincludingtheinitialcommissions.-

Beringea-LLPwasalsotheinvestmentmanagerduringtheyear.-Thefeesrelatingtothisservice,togetherwithperformanceincentivefeesdueintheyearundertheagreement,amountedto-£967,000-(2010:-£624,000)-(inclusiveof-VATwhereapplicable),ofwhich-£176,000-(2010:-£149,000)wasoutstandingattheyearend.-

Nicholas-Lewis-(whoresignedasdirectorof-ProVen-VCTplcon-24-August-2010)isadirectorof-Downing-Management-Services-Limited,whichprovidesadministrationservicestothecompany.-Thetotalfeerelatingtothisserviceduringtheyearwas-£57,000-(2010:-£53,000),inclusiveof-VAT,ofwhich-£14,000-(2010:-£12,000)wasoutstandingattheyearend.-

Downing-Corporate-Finance-Limitedwasentitledtoperformanceincentivefeesduringtheyeartotalling-£32,000-(2010:-£4,000)-(inclusiveof-VAT),ofwhich-£5,000-(2010:-£4,000)wasoutstandingattheyearend.-

Atthepreviousyearendof-28-February-2010,-Malcolm-Moss,-Nicholas-Lewisand-Andrew-Davisonwereeachdirectorsofthe-Companyandalsoof-ProVen-Growthand-Income-VCTplc.-Atthatdate,-ProVen-Growthand-Income-VCTplcwasowed-£910,000inrespectofsubscriptionmoniesforshares.-Thisamountwasincludedwithinothercreditors.-

Shareholder Information

Websites

Latestfinancialinformation,includinginformationonrecentinvestmenttransactions,newslettersandelectroniccopiesof-Annual-Reports,-Half-Yearly-Financial-Statementsand-Interim-Management-Statementscanbefoundonthe-Investment-Managers'website:-

www.provenvcts.co.uk

Dividendhistory,linksto-Companyannouncementsandotherfinancialinformationcanbefoundon-Downing'swebsiteatwww.downing.co.uk.-Shareholderscanalsocheckdetailsoftheirshareholdingsusing-Capita-Registrar'swebsiteatwww.capitaregistrars.com,byclickingon-"Shareholders".-

Dividends

Dividendsarepaidbythe-Registraronbehalfofthe-Company.-Shareholderswhowishtohavedividendspaiddirectlyintotheirbankaccountratherthanbychequetotheirregisteredaddresscancompleteamandateformforthispurpose-(formcanbedownloadedfromwww.capitaregistrars.com).-Queriesrelatingtodividendsandrequestsformandateformsshouldbedirectedtothe-Company's-Registrar,-Capita-Registrars,bycalling-0871-664-0324-(callscost-10pperminuteplusnetworkextras),orbywritingtothemattheaddressshownonpage-62.-

Share prices

The-Company'ssharepricescanbefoundonvariousfinancialwebsiteswiththefollowing-TIDM/EPICcodes-

	Ordinary Shares	'C' Shares	'D' Shares
TIDM/EPIC code	"PVN"	"PVNC"	"PVND"
Latest share price (29 June 2011):	39.0p per share	66.0p per share	88.0p per share

Selling shares

The-Company'ssharescanbeboughtandsoldinthesamewayasanyotherquotedcompanyonthe-London-Stock-Exchangeviaastockbroker.-Shareholderswhoinvestedinthe-Companyinthe-2006/2007taxyearandsubsequenttaxyearsshouldbeawarethattheyneedtoholdtheirsharesforaminimumperiodtoretaintheincometaxrelieftheyreceivedoninvestment.-Sellingyoursharesmayhavetaxconsequencesthereforeyoushouldcontactyourindependentfinancialadviserifyouhaveanyqueries.-

The-Companyoperatesapolicyofbuyingitsownsharesforcancellationastheybecomeavailable.-The-Companyis,however,unabletobuybacksharesdirectfrom-Shareholders,soyouwillneedtouseastockbrokertosellyourshares.-Downing-Management-Services-Limitedisabletoprovidedetailsofcloseperiods-(whenthe-Companyisprohibitedfrombuyinginshares)anddetailsofthepriceatwhichthe-Companyhasboughtinshares.-Contactdetailsareshownonpage-62ofthisdocument.-

Financial calendar
24 August 2011	Annual General Meeting
October 2011	Announcement of half year results

Unsolicited communication with Shareholders

Weareawareofcasesofshareholdersin-VCTshavingreceivedunsolicitedtelephonecalls,emailsorcorrespondenceconcerninginvestmentmatters.-Pleasenotethatitisveryunlikelythateitherthe-Company,-Beringeaorthe-Companyregistrar,-Capita-Registrars,wouldmakeunsolicitedtelephonecalls,orsendemails,to-Shareholders.-Shareholderscan,however,expectofficialdocumentationinconnectionwiththe-Companyandmayreceivedetailsofinvestmentactivityandnew-VCToffersfromthe-Investment-Manager.-Furthermore,pleasebeassuredthatthe-Companylimitsaccesstothe-Company'sshareregisterbythirdpartiestothemaximumextentpermissibleunderthe-Companies-Act-2006.-Ifyoureceiveeitheranunexpectedtelephonecallorcorrespondenceaboutwhichyouhaveconcerns,pleasecontact-Grant-Whitehouse,the-Company-Secretary,on-020-7416-7780.

Notification of change of address

Communicationswith-Shareholdersaremailedtotheregisteredaddressheldontheshareregister.-Intheeventofachangeofaddressorotheramendmentthisshouldbenotifiedtothe-Company'sregistrar,-Capita-Registrars,underthesignatureoftheregisteredholder.-

Notice of the Annual General Meeting of ProVen VCT plc

NOTICE-IS-HEREBY-GIVENthatthe-Annual-General-Meetingof-ProVen-VCTplcwillbeheldin-The-Forest-Roomat-The-Hospital-Club,-24-Endell-Street,-Covent-Garden,-London-WC2H-9HQat-10:30a.m.on-24-August-2011forthetransactionofthefollowingbusiness:-

As-Ordinary-Business,toconsiderand,ifthoughtfit,passthefollowingresolutionswhichwillbeproposedas-Ordinary-Resolutions:-

1.- Toreceiveandadoptthe-Reportofthe-Directorsand-Accountsofthe-Companyfortheyearended-28-February-2011togetherwiththereportoftheauditorsthereon.-
2.- Toapprovethe-Directors'-Remuneration-Report.-
3.- Toreappoint-Deloitte-LLPas-Auditorofthe-Companytoholdofficeuntiltheconclusionofthenext-Annual-General-Meetingatwhichaccountsofthe-Companyarepresentedandtoauthorisethe-Directorstodeterminetheirremuneration.-
4.- Toreelectas-Director,-Andrew-Davison,whoretiresinaccordancewiththe-UK-Corporate-Governance-Codeand,beingeligible,offershimselfforreelection.-
5.- Toreelectas-Director,-Barry-Dean,whoretiresbyrotationand,beingeligible,offershimselfforreelection.-

As-Special-Business,toconsiderand,ifthoughtfit,passthefollowingresolutions:-

- -

6.- THATthe-Directorsbegenerallyandunconditionallyauthorisedinaccordancewith-Section-551ofthe-Companies-Act-2006-(the-"Act")toallot:-
(i)- Ordinary-Shares,ortograntrightstosubscribeforortoconvertanysecuritiesinto-Ordinary-Shares,uptoamaximumnominalamountof-£2,200,000-(representingapproximately-159%ofthe-Ordinary-Sharecapitalinissueattoday'sdate);-
(ii)- 'C'-Shares,ortograntrightstosubscribeforortoconvertanysecuritiesinto-'C'-Shares,uptoamaximumnominalamountof-£362,495-(representingapproximately-10%ofthe-'C'-Sharecapitalinissueattoday'sdate);and-
(iii)-'D'-Shares,ortograntrightstosubscribeforortoconvertanysecuritiesinto-'D'-Shares,uptoamaximumnominalamountof-£8,270-(representingapproximately-10%ofthe-'D'-Sharecapitalinissueattoday'sdate);-

thisauthoritytoexpireattheearlieroftheconclusionofthe-Company's-Annual-General-Meetingnextfollowingthepassingofthisresolutionandtheexpiryof-15monthsfromthepassingoftherelevantresolution-(unlesspreviouslyrevoked,variedorextendedbythe-Companyingeneralmeeting)butsothatsuchauthorityallowsthe-Companytomakeoffersoragreementsbeforetheexpirythereofwhichwouldormightrequiresharestobeallotted,orrightstosubscribeforortoconvertanysecuritiesintosharestobegranted,aftertheexpiryofsuchauthority.-

- -

7.- Toempowerthe-Directorspursuantto-Section-570(1)ofthe-Acttoallotormakeoffersoragreementstoallotequitysecurities-(asdefinedin-Section-560(1)ofthe-Act)forcashpursuanttotheauthorityreferredtoinresolution-6asif-Section-561(1)ofthe-Actdidnotapplytoanysuchallotmentsandsothat:-
(a) referencetoallotmentinthis-Resolutionshallbeconstruedinaccordancewith-Section-560(2)ofthe-Act;and-
(b) thepowerconferredbythis-Resolutionshallenablethe-Companytomakeanyofferoragreementbeforetheexpiryofthesaidpowerwhichwouldormightrequireequitysecuritiestobeallottedaftertheexpiryofthesaidpowerandthe-Directorsmayallotequitysecuritiesinpursuanceofsuchofferoragreementnotwithstandingtheexpiryofsuchpower,andthispower,unlesspreviouslyvaried,revokedorrenewed,shallcometoanendattheconclusionofthe-Annual-General-Meetingofthe-Companynextfollowingthepassingofthis-Resolutionor,ifearlier,ontheexpiryof-15monthsfromthepassingofthisresolution.-
8.- THATthe-Companybeandisherebygenerallyandunconditionallyauthorisedtomakemarketpurchases-(withinthemeaningof-Section-693(4)ofthe-Companies-Act-2006)ofitsown-Ordinarysharesof-5peach-("Ordinary-Shares"),-'C'sharesof-25peach-("'C'-Shares")and-'D'-Sharesof-1peach-("'D'-Shares")inthecapitalofthe-Companyprovidedthat:-
(i) themaximumnumberof-Ordinary-Sharesherebyauthorisedtobepurchasedis-4,122,471-Ordinary-Shares,representingapproximately-14.9%ofthepresentissued-Ordinary-Sharecapital,and-2,160,469-'C'-Shares,representingapproximately-14.9%ofthepresentissued-'C'-Sharecapitaland-1,232,216-'D'-Shares,representingapproximately-14.9%ofthepresentissued-'D'-Sharecapital;-
(ii) theminimumpricewhichmaybepaidforan-Ordinary-Shareis-5p,fora-'C'-Shareis-25pandfora-'D'-Shareis-1p,exclusiveofallexpenses;-
(iii) themaximumpricewhichmaybepaidforan-Ordinary-Share,a-'C'-Shareora-'D'-Shareisanamount,exclusiveofallexpenses,equalto-105%oftheaverageofthemiddlemarketquotationsofthe-Ordinary-Shares,-'C'-Sharesor-'D'-Sharesasderivedfromthe-Daily-Official-Listofthe-London-Stock-Exchange,foreachofthefivebusinessdaysimmediatelyprecedingthedayonwhichtheshareiscontractedtobepurchased;-
(iv) the-Companymayvalidlymakeacontracttopurchase-Ordinary-Shares,-'C'-Sharesor-'D'-Sharesundertheauthorityherebyconferredpriortotheexpiryofsuchauthoritywhichwillormaybeexecutedwhollyorpartlyaftertheexpiryofsuchauthority,andmayvalidlymakeapurchaseof-Ordinary-Shares,-'C'-Sharesor-'D'-Sharesinpursuanceofanysuchcontract;-

andthispower,unlesspreviouslyvaried,revokedorrenewed,shallcometoanendattheconclusionofthe-Annual-General-Meetingofthe-Companynextfollowingthepassingofthis-Resolutionor,ifearlier,ontheexpiryof-15monthsfromthepassingofthisresolution.-

9.- THATthearticlesofassociationofthe-Companybeamendedbythereplacementoftheyear-"2016"withtheyear-"2019"inarticle-174.-

Byorderofthe-Board-

Grant-Whitehouse-

Secretary-Registered-Office-39-Earlham-Street-London-WC2H-9LT-

30-June-2011-

Informationregardingthe-Annual-General-Meeting,includingtheinformationrequiredbysection-311Aofthe-Companies-Act-2006,isavailablefromwww.downing.co.uk.-

Notes-

(a) Anymemberofthe-Companyentitledtoattendandvoteatthe-Annual-General-Meetingisalsoentitledtoappointoneormoreproxiestoattend,speakandvoteinsteadofthatmember.-Amembermayappointmorethanoneproxyinrelationtothe-Annual-General-Meetingprovidedthateachproxyisappointedtoexercisetherightsattachedtoadifferentshareorsharesheldbythatmember.-Aproxymaydemand,orjoinindemanding,apoll.-Aproxyneednotbeamemberofthe-Companybutmustattendthe-Annual-General-Meetinginordertorepresenthisappointor.-Amemberentitledtoattendandvoteatthe-Annual-General-Meetingmayappointthe-Chairmanoranotherpersonashisproxyalthoughthe-Chairmanwillnotspeakforthemember.-Amemberwhowisheshisproxytospeakforhimshouldappointhisownchoiceofproxy-(notthe-Chairman)andgiveinstructionsdirectlytothatperson.-Ifyouarenotamemberofthe-Companybutyouhavebeennominatedbyamemberofthe-Companytoenjoyinformationrights,youdonothavearighttoappointanyproxiesundertheproceduressetoutinthese-Notes.-Pleaseread-Note-(h)below.-Undersection-319Aofthe-Act,the-Companymustansweranyquestionamemberasksrelatingtothebusinessbeingdealtwithatthe-Annual-General-Meetingunless:-
answeringthequestionwouldinterfereundulywiththepreparationforthe-Annual-General-Meetingorinvolvethedisclosureofconfidentialinformation;-
theanswerhasalreadybeengivenonawebsiteintheformofananswertoaquestion;or-
itisundesirableintheinterestsofthe-Companyorthegoodorderofthe-Annual-General-Meetingthatthequestionbeanswered.-
(b) Tobevalid,a-Formof-Proxyandthepowerofattorneyorotherwrittenauthority,ifany,underwhichitissignedoranofficeornotariallycertifiedcopyoracopycertifiedinaccordancewiththe-Powersof-Attorney-Act-1971ofsuchpowerandwrittenauthority,mustbedeliveredto-Downing-Management-Services-Limited,-10-Lower-Grosvenor-Place,[email protected],ineachcasenotlessthan-48hours-(excludingweekendsandpublicholidays)beforethetimeappointedforholdingthe-Annual-General-Meetingoradjournedmeetingatwhichthepersonnamedinthe-Formof-Proxyproposestovote.-Inthecaseofapolltakenmorethan-48hours-(excludingweekendsandpublicholidays)afteritisdemanded,thedocument(s)mustbedeliveredasaforesaidnotlessthan-24hours-(excludingweekendsandpublicholidays)beforethetimeappointedfortakingthepoll,orwherethepollistakennotmorethan-48hours-(excludingweekendsandpublicholidays)afteritwasdemanded,bedeliveredatthemeetingatwhichthedemandismade.-
(c) Inordertorevokeaproxyinstructionamemberwillneedtoinformthe-Companyusingoneofthefollowingmethods:-
bysendingasignedhardcopynoticeclearlystatingtheintentiontorevoketheproxyappointmentto-Downing-Management-Services-Limited,-10-Lower-Grosvenor-Place,-London-SW1W-0EN.-Inthecaseofamemberwhichisacompany,therevocationnoticemustbeexecutedunderitscommonsealorsignedonitsbehalfbyanofficerofthecompanyoranattorneyforthecompany.-Anypowerofattorneyoranyotherauthorityunderwhichtherevocationnoticeissigned-(oradulycertifiedcopyofsuchpowerorauthority)mustbeincludedwiththerevocationnotice;or- [email protected]

Ineithercase,therevocationnoticemustbereceivedby-Downing-Management-Services-Limitedbeforethe-Annual-General-Meetingortheholdingofapollsubsequentlythereto.-Ifamemberattemptstorevokehisorherproxyappointmentbuttherevocationisreceivedafterthetimespecifiedthen,subjectto-Note-(d)directlybelow,theproxyappointmentwillremainvalid.-

(d) Completionandreturnofa-Formof-Proxywillnotprecludeamemberofthe-Companyfromattendingandvotinginperson.-Ifamemberappointsaproxyandthatmemberattendsthe-Annual-General-Meetinginperson,theproxyappointmentwillautomaticallybeterminated.-
(e) Copiesofthe-Directors'-Lettersof-Appointmentandthe-Registerof-Directors'interestsinthe-Ordinary-Shares,-'C'-Sharesand-'D'-Sharesofthe-Company,willbeavailableforinspectionattheregisteredofficeofthe-Companyduringusualbusinesshoursonanyweekday-(Saturdayand-Public-Holidaysexcluded)fromthedateofthisnotice,untiltheendofthe-Annual-General-Meetingforatleast-15minutespriortoandduringthemeeting.-
(f) Pursuantto-Regulation-41ofthe-Uncertificated-Securities-Regulations-2001,the-Companyhasspecifiedthatonlythoseholdersofthe-Company'ssharesregisteredonthe-Registerof-Membersofthe-Companyasat-10:30a.m.on-22-August-2011or,intheeventthatthe-Annual-General-Meetingisadjourned,onthe-Registerof-Members-48hoursbeforethetimeofanyadjournedmeeting,shallbeentitledtoattendandvoteatthesaid-Annual-General-Meetinginrespectofsuchsharesregisteredintheirnameattherelevanttime.-Changestoentriesonthe-Registerof-Membersafter-10:30a.m.on-22-August-2011or,intheeventthatthe-Annual-General-Meetingisadjourned,onthe-Registerof-Memberslessthan-48hoursbeforethetimeofanyadjournedmeeting,shallbedisregardedindeterminingtherightofanypersontoattendandvoteatthe-Annual-General-Meeting.-
(g) Asat-9:00a.m.on-30-June-2011,the-Company'sissuedsharecapitalcomprised-27,667,590-Ordinary-Shares,-14,499,790-'C'-Sharesand-8,269,911-'D'-Sharesandthetotalnumberofvotingrightsinthe-Companywere-50,437,291.-Thewebsitereferredtoabovewillincludeinformationonthenumberofsharesandvotingrights.-
(h)-Ifyouareapersonwhohasbeennominatedundersection-146ofthe-Acttoenjoyinformationrights-("Nominated-Person"):-
Youmayhavearightunderanagreementbetweenyouandthememberofthe-Companywhohasnominatedyoutohaveinformationrights-("Relevant-Member")tobeappointedortohavesomeoneelseappointedasaproxyforthe-Annual-General-Meeting;-
- Ifyoueitherdonothavesucharightorifyouhavesucharightbutdonotwishtoexerciseit,youmayhavearightunderanagreementbetweenyouandthe-Relevant-Membertogiveinstructionstothe-Relevant-Memberastotheexerciseofvotingrights;and-
- Yourmainpointofcontactintermsofyourinvestmentinthe-Companyremainsthe-Relevant-Member-(orperhapsyourcustodianorbroker)andyoushouldcontinuetocontactthem-(andnotthe-Company)regardinganychangesorqueriesrelatingtoyourpersonaldetailsandyourinterestinthe-Company-(includinganyadministrativematters).-Theonlyexceptiontothisiswherethe-Companyexpresslyrequestsaresponsefromyou.-
(i)- Acorporationwhichisamembercanappointoneormorecorporaterepresentativeswhomayexercise,onitsbehalf,allitspowersasamemberprovidedthatnomorethanonecorporaterepresentativeexercisespoweroverthesameshare.-
(j)- Avotewithheldisnotavoteinlaw,whichmeansthatthevotewillnotbecountedinthecalculationofvotesfororagainsttheresolution.-Ifnovotingindicationisgiven,theproxywillvoteorabstainfromvotingathisorherdiscretion.-Theproxywillvote-(orabstainfromvoting)asheorshethinksfitinrelationtoanyothermatterwhichisputbeforethe-Annual-General-Meeting.-
(k)- Exceptasprovidedabove,memberswhohavegeneralqueriesaboutthe-Annual-General-Meetingshouldwritetothe-Chairmanattheregisteredofficesetoutabove.-
(l)- Membersmaynotuseanyelectronicaddressprovidedeitherinthisnoticeof-Annual-General-Meeting,oranyrelateddocuments-(includingthe-Chairman'sletterand-Formof-Proxy),tocommunicatewiththe-Companyforanypurposesotherthanthoseexpresslystated.

Form of Proxy - ProVen VCT Plc

Foruseatthe-Annual-General-Meetingoftheabovenamed-Companytobeheldon-24-August-2011in-The-Forest-Roomat-The-Hospital-Club,-24-Endell-Street,-Covent-Garden,-London-WC2H-9HQat-10:30a.m.

I/We*………………………………………………………………………………………………………………………………………	(in BLOCK CAPITALS please)
of ………………………………………………………………………………………………………………………………………………………………………………………
being the holder(s)* of ordinary shares of 5p/'C' shares of 25p/'D' hereby appoint the Chairman of the meeting (see note 1)	shares of 1p* each in the abovenamed Company,
or ………………………………………………………………………………………………………………………………………………………………………………………

of-………………………………………………………………………………………………………………………………………………………………………………………..-

asmy/our*proxytoattendforme/us*onmy/our*behalfatthe-Annual-General-Meetingofthe-Companytobeheldin-The-Forest-Roomat-The-Hospital-Club,-24-Endell-Street,-Covent-Garden,-London-WC2H-9HQon-24-August-2011oratanyadjournmentthereof.-

I/We*desiretovoteontheresolutionsasindicatedintheappropriatecolumnbelow.-Pleaseindicatewithan-"X"howyouwishyourvotetobecast.-

Detailsoftheresolutionsaresetoutinthe-Noticeofthe-Annual-General-Meeting.-

ORDINARY-

BUSINESS FOR AGAINST- WITHHELD 1.- Toreceiveandadoptthe-Directors'-Reportand-Accounts. -2.--Toapprovethe-Directors'-Remuneration-Report. -3.- Toreappointtheauditorsandauthorisethe-Directorstodeterminetheir remuneration.- -4.- Toreelect-Andrew-Davisonasa-Director. -5.- Toreelect-Barry-Deanasa-Director.- -SPECIAL-BUSINESS -6.- Toauthorisethe-Directorstoallotshares.- -7.- Todisapplypreemptionrights.- -8.- Toauthorisethe-Companytomakemarketpurchasesofitsshares. -9.- Toamendthearticlesofassociationofthe-Company. -Datedthis-………………………………dayof-………….………………………………………………………………………………………………………-2011-Signature(s)*-…………………………………………………………………………../……….………………………………………………..………………………..-

Notes:

1. Anymemberofthe-Companyentitledtoattendandvoteatthe-Meetingisalsoentitledtoappointoneormoreproxiestoattend,speakandvoteinsteadofthatmember.-Amembermayappointmorethanoneproxyinrelationtothe-Annual-General-Meetingprovidedthateachproxyisappointedtoexercisetherightsattachedtoadifferentshareorsharesheldbythatmember.-Aproxymaydemand,orjoinindemanding,apoll.-Aproxyneednotbeamemberofthe-Companybutmustattendthe-Meetinginordertorepresenthisappointor.-Amemberentitledtoattendandvoteatthemeetingmayappointthe-Chairmanoranotherpersonashisproxyalthoughthe-Chairmanwillnotspeakforthemember.-Amemberwhowisheshisproxytospeakforhimshouldappointhisownchoiceofproxy-(notthe-Chairman)andgiveinstructionsdirectlytothatperson.-
1. Delete-"the-Chairmanofthemeeting"ifitisdesiredtoappointanyotherpersonandinserthisorhernameandaddress.-Ifnonameisinserted,theproxywillbedeemedtohavebeengiveninfavourofthe-Chairmanofthemeeting.-Ifthis-Formof-Proxyisreturnedwithoutstatinghowtheproxyshallvoteonanyparticularmattertheproxywillexercisehisdiscretionastowhether,andifsohow,hevotes.-
Anyalterationstothe-Formof-Proxyshouldbeinitialled.-
1. Tobevalid,this-Formof-Proxyandthepowerofattorneyorotherwrittenauthority,ifany,underwhichitissignedoranofficeornotariallycertifiedcopyoracopycertifiedinaccordancewiththe-Powersof-Attorney-Act-1971ofsuchpowerandwrittenauthority,mustbedeliveredto-Downing-Management-Services-Limited,-10-Lower-Grosvenor-Place,-London-SW1W-0ENnotlessthan-48hours-(excludingweekendsandpublicholidays)beforethetimeappointedforholdingthe-Meetingoradjournedmeetingatwhichthepersonnamedinthis-Formof-Proxyproposestovote.-Inthecaseofapolltakenmorethan-48hours-(excludingweekendsandpublicholidays)afteritisdemanded,thedocument(s)mustbedeliveredasaforesaidnotlessthan-24hours-(excludingweekendsandpublicholidays)beforethetimeappointedfortakingthepoll,orwherethepollistakennotmorethan-48hours-(excludingweekendsandpublicholidays)afteritwasdemanded,andbedeliveredatthemeetingatwhichthedemandismade.-
1. Inthecaseofacorporation,thisformmustbeunderitscommonsealorunderthehandofsomeofficerorattorneydulyauthorisedonthatbehalf.-6. Inthecaseofjointholders,thevoteoftheseniorholdertenderingavotewillbeacceptedtotheexclusionofthevotesoftheotherjointholders.-Senioritydependsonthe-
orderinwhichthenamesstandintheregisterofmembers.-7. Thecompletionandreturnofthis-Formof-Proxywillnotprecludeyoufromattendingandvotingatthe-Annual-General-Meetingshouldyousubsequentlydecidetodoso.-Ifamemberappointsaproxyandthatmemberattendsthe-Annual-General-Meetinginperson,theproxyappointmentwillautomaticallybeterminated.-
1. Avotewithheldisnotavoteinlaw,whichmeansthatthevotewillnotbecountedinthecalculationofvotesfororagainsttheresolution.-Ifnovotingindicationisgiven,theproxywillvoteorabstainfromvotingathisorherdiscretion.-Theproxywillvote-(orabstainfromvoting)asheorshethinksfitinrelationtoanyothermatterwhichisputbeforethe-Annual-General-Meeting.-

Third fold and tuck in edge

Second Fold

First Fold

AI Terminal

PROVEN VCT PLC

4792_10-k_2011-02-28_089929cc-faac-4eb3-8c8e-95bd40898814.pdf

Contents

ProVen-VCTplc-

Principal Investment Objectives

Financial Highlights

Fund Overview

Financial summary

Shareholder investment and returns analysis

Chairman's Statement

Net asset value

Ordinary-Shares-

'C'-Shares-

'D'-Shares-

Portfolio activity and valuation

Ordinary-Sharepool-

'C'-Sharepool-

'D'-Sharepool-

Results and dividends

Dividend questionnaire

New fundraisings

Share buybacks

Chairman's Statement (continued)

Share buybacks (continued)

Annual General Meeting

Shareholder event

Outlook

Investment Manager's Review

Introduction

Beringea's investment approach

Review of the year

Ordinary Share pool – portfolio activity and valuation

'C' Share pool – portfolio activity and valuation

Investment Manager's Review (continued)

'D' Share pool – portfolio activity and valuation

Outlook

Investment Portfolio – Ordinary Share Pool

Ordinary Share portfolio of investments

Review of Investments – Ordinary Share Pool

SPC-International-Limited-

Eagle-Rock-Entertainment-Group-Limited-

Review of Investments – Ordinary Share Pool (continued)

Campden-Media-Limited-

Think-Limited-

Donatantonio-Limited-

Tossed-Limited-

Ashford-Colour-Press-Limited-

Review of Investments – Ordinary Share Pool (continued)

Analysis of investments by commercial sector

Spreadof-Investmentsby-Sector- Ordinary-Share-Pool

Analysis of investments by investment type

Investment Portfolio – 'C' Share Pool

'C' Share portfolio of investments

Review of Investments – 'C' Share Pool

Fjordnet-Limited-

Donatantonio-Limited-

www.donatantonio.com

Lazurite-Limited-

Think-Limited-

Charterhouse-Leisure-Limited-

www.coalgrillandbar.co.uk

SPC-International-Limited-

Review of Investments – 'C' Share Pool (continued)

Steak-Media-Limited-

Chess-Technologies-Limited-

Tossed-Limited-

Spreadof-Investmentsby-Sector- 'C'-Share-Pool

Analysis of investments by investment type

Investment Portfolio – 'D' Share Pool

'D' Share portfolio of investments

Review of Investments – 'D' Share Pool

MatsSoft-Limited-

SpeedTrap-Holdings-Limited-

Review of Investments – 'D' Share Pool (continued)

Tossed-Limited-

Monica-Vinader-Limited-

www.monicavinader.com-

Cinergy-International-Limited-

Spreadof-Investmentsby-Sector- 'D'-Share-Pool