Pennine AIM VCT 6 Announcements

Pennine AIM VCT 6 PLC
15 January 2007
PENNINE AIM VCT 6 PLC
PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2006
Performance summary 30 September 2006
pence

Net asset value per share 93.4

Proposed final dividend per share 0.9

The statement to shareholders by the Chairman, Christopher Powell, includes the
following comments:

I have pleasure in presenting the first Annual Report and Accounts for Pennine
AIM VCT 6 plc for the period ended 30 September 2006.
Fundraising

The Company's Offer for Subscription was fully subscribed and closed on 5 April
2006 having raised total funds of £26.7 million or £25.2 million net of costs of
issue.
Net Asset Value

At 30 September 2006, the Company's Net Asset Value per share ("NAV") stood at
93.4p, a small fall of 1.1p (1.2%) from the initial NAV of 94.5p.
Venture capital investments

The Investment Manager, Rathbone Investment Management Limited, has made good
progress in investing the Company's funds making 11 investments at a total cost
of £3.3 million in this first period.

The portfolio investments performed satisfactorily throughout the period with
two significant exceptions. The Company made investments of £251,000 in Chariot
(UK) plc, the company behind the 'Monday' lottery and £375,000 in NetServices
plc, a specialist provider of converged voice and data networks. Both companies
suffered major setbacks resulting in large falls in their respective share
prices.

Despite these two major blows, other investments provided small gains such that
the portfolio showed total unrealised losses of £381,000 for the period.

Since the period end, a further £3.0 million has been invested in VCT qualifying
companies. The Board is satisfied with progress made by the Investment Manager
in progressing towards it's target of having 70% of the Company's funds invested
in VCT qualifying investments before the deadline of 30 September 2008.
Listed fixed income securities

During the period the Company invested £7.5 million in treasury stocks. The
investments were valued at £7.5 million at the period end and generated
unrealised losses of £11,000 during the period.
Results and dividend

The loss on activities after taxation for the period was £280,000 comprising a
revenue profit of £242,000 and a capital loss of £522,000.

The Board is proposing to pay a revenue dividend of 0.9p per share on 28
February 2007 to Shareholders on the register at the close of business on 26
January 2007.
Share repurchase

Your Board is conscious that the Company's share price is affected by the
illiquidity of its shares in the market. This results principally from the
requirement that most shareholders must retain their shares for at least three
years in order to retain their tax benefits and that investors do not receive
upfront income tax relief on VCT shares acquired in the market.

The Company therefore operates a policy of purchasing shares in the market at a
price equivalent to approximately a 10% discount to the Company's most recently
published Net Asset Value (subject to close periods and other regulatory
restrictions).

Buying in shares for cancellation has a negative effect on the Company's ability
to pay revenue dividends. Therefore, in line with usual practice for VCTs, the
Company has cancelled its Share Premium account and created a distributable
Special Reserve, which can be utilised to buy back shares without affecting the
Company's ability to pay dividends. Court confirmation for the cancellation was
received on 6 December 2006.

Registrars

The Board has changed the Company's Registrars from Computershare plc to Capita
Registrars ("Capita").

Annual General Meeting

The Company's first Annual General Meeting will be held at 159 New Bond Street,
London, W1Y 9PA at 2.30 pm on 26 February 2007.
Notice of the meeting is at the end of this document. One item of Special
Business is proposed as follows:
? to authorise the Directors to purchase up to 3,973,696 ordinary shares in
the market, representing approximately 14.9% of the current issued shares.
Outlook

Some setbacks, such as those we have experienced in this initial period, are
inevitable, however the Company's strategy of aiming to develop a diversified
portfolio of carefully selected investments should bring rewards in the medium
to long term.

The Manager reports that deal flow remains strong, and, with the Company making
a further nine investments at a total cost of £3.0 million since the year end,
the Board is satisfied that the Company is comfortably on schedule to achieve
the VCT qualification target of having 70% of its funds invested in VCT
qualifying companies before 30 September 2008.

I look forward to updating Shareholders with the interim results to 31 March
2007.

INCOME STATEMENT
for the period ended 30 September 2006
Period ended 30 September 2006
Revenue Capital Total
£'000 £'000 £'000

Income 604 - 604

Losses on investments - (381) (381)

604 (381) 223

Investment management fees (66) (198) (264)

Other expenses (205) - (205)

Return on ordinary activities before tax 333 (579) (246)

Tax on ordinary activities (91) 57 (34)

Return attributable to equity shareholders 242 (522) (280)

Return per share 1.3p (2.8p) (1.5p)

All Revenue and Capital items in the above statement derive from continuing
operations.
A Statement of Total Recognised Gains and Losses has not been prepared as all
gains and losses are recognised within the Income Statement shown above.

RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS

Period ended
30 September 2006

£'000

Opening shareholders' funds -
Proceeds from share issue 26,669
Share issue costs (1,467)
Total recognised net losses for the period (280)

Closing shareholders' funds 24,922
BALANCE SHEET
as at 30 September 2006
2006
£'000 £'000
Fixed Assets
Investments at fair value through profit or loss 10,400

Current assets
Debtors 47
Cash at bank and in hand 14,600
14,647

Creditors: amounts falling due within one year (125)

Net current assets 14,522

Net assets 24,922

Capital and reserves

Called up share capital 267
Share premium account 24,935
Capital reserve - realised (141)
Capital reserve - unrealised (381)
Revenue reserve 242

Total equity shareholders' funds 24,922

Net asset value per ordinary share 93.4p

CASH FLOW STATEMENT

for the period ended 30 September 2006
Period
ended
30 Sept 2006
£'000

Net cash inflow from operating activities 179

Capital expenditure
Purchase of investments (10,781)
Net cash outflow from capital expenditure (10,781)

Net cash outflow before financing (10,602)

Financing
Proceeds from ordinary share issue 26,669
Proceeds from preference share issue 50
Share issue costs (1,467)
Redemption of preference shares (50)
Net cash inflow from financing 25,202

Increase in cash 14,600
Reconciliation of net cash flow to movement in net funds

Increase in cash during the period 14,600

Net funds at 22 September 2005 -

Net funds at 30 September 2006 14,600

NOTES TO THE ACCOUNTS

for the period ended 30 September 2006

Accounting policies
Basis of accounting

The Company has prepared its financial statements under UK Generally Accepted
Accounting Practice ("UK GAAP") and in accordance with the Statement of
Recommended Practice "Financial Statements of Investment Trust Companies"
revised December 2005 ("SORP").

The financial statements are prepared under the historical cost convention
except for the revaluation of certain financial instruments.
Presentation of Income Statement

In order to better reflect the activities of a venture capital trust and in
accordance with guidance issued by the Association of Investment Companies
("AIC"), supplementary information which analyses the income statement between
items of a revenue and capital nature has been presented alongside the income
statement. The net revenue is the measure the directors believe appropriate in
assessing the Company's compliance with certain requirements set out in Section
842 Income and Corporation Taxes Act 1988.
Investments at fair value through profit or loss

Venture capital investments are designated as "fair value through profit or
loss" assets and are initially measured at cost. Thereafter the investments are
measured at subsequent reporting dates at fair value.

Listed fixed income investments, investments quoted on AIM and those traded on
the PLUS Market (formerly OFEX) are measured using bid prices with marketability
discounts applied where deemed appropriate.

In respect of unquoted instruments, fair value is established by using
International Private Equity and Venture Capital Valuation Guidelines. Where no
reliable fair value can be estimated for such unquoted equity investments they
are carried at cost, subject to any provision for impairment. Where an investee
company has gone into receivership or liquidation the investment, although not
physically disposed of, is treated as being realised.

Gains and losses arising from changes in fair value are included in the income
statement for the year as a capital item and transaction costs on acquisition or
disposal of the investment expensed.

It is not the Company's policy to exercise either significant or controlling
influence over investee companies. Therefore the results of these companies are
not incorporated into the revenue account except to the extent of any income
accrued.
Income

Dividend income from investments is recognised when the shareholders' rights to
receive payment has been established, normally the ex dividend date.

Interest income is accrued on a timely basis, by reference to the principal
outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected life
of the financial asset to that asset's net carrying amount, and only where there
is reasonable certainty of collection.
Expenses

All expenses are accounted for on an accruals basis. In respect of the analysis
between revenue and capital items presented within the income statement, all
expenses have been presented as revenue items except as follows:
? Expenses which are incidental to the disposal of an investment
are deducted from the disposal proceeds of the investment.

? Expenses are split and presented partly as capital items where a
connection with the maintenance or enhancement of the value of the
investments held can be demonstrated and accordingly the investment
management fee and finance costs have been allocated 25% to revenue
and 75% to capital, in order to reflect the directors expected
long-term view of the nature of the investment returns of the Company.

Issue costs

Issue costs have been deducted from the share premium account.
Deferred Taxation

Deferred taxation is provided in full on timing differences that result in an
obligation at the balance sheet date to pay more tax, or a right to pay less
tax, at a future date, at rates expected to apply when they crystallise based on
current tax rates and law. Timing differences arise from the inclusion of items
of income and expenditure in taxation computations in periods different from
those in which they are included in the accounts.
Announcement based on draft accounts (unqualified audit report)

The financial information set out in the announcement does not constitute the
Company's statutory accounts in accordance with section 240 Companies Act 1985
for the period ended 30 September 2006. The statutory accounts for the period
ended 30 September 2006 will be finalised on the basis of the financial
information presented by the directors in this preliminary announcement and will
be delivered to the Registrar of Companies following the Company's Annual
General Meeting.

A copy of the full annual report and financial statements for the period ended
30 September 2006 will be printed and posted to shareholders. Copies will also
be available to the public at the registered office of the Company at 69
Eccleston Square, London SW1V 1PJ and for download from www.downing.co.uk.

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