LONDON (Alliance News) - Oxford Technology VCT PLC saw its net asset value per share decline in the year to end-February, and said it was appealing the withdrawal of its venture capital trust status.
The trust posted a net asset value per share of 65 pence per share, down from 74 pence in the previous year.
It posted a pretax profit of GBP36,000, down from GBP2.7 million in the previous year. This was due to seeing no income during the year, and lower unrealised gains on the fair value of its investments.
In March the company's status as a venture capital trust was withdrawn by HM Revenue and Customs, which it has subsequently appealed.
This was a result of the company's investment in Scancell Holdings PLC; the HMRC's rules state that when a company makes a new investment the value of its holding has to be valued at the most recent price paid for the shares. No company is allowed to account for more than 15% of the trusts portfolio, however due to the sharp increase in Scancell's share value this rule was breached.
The company realised this had happened in October, and informed HMRC of the breach, it said.
Oxford Technology said that HMRC had taken "a hard line" over the rule, despite "the fact that this technical rule had been breached no harm had been done to anyone."
The trust reiterated that shareholders should seek their own financial advice to ascertain the implications of it losing its VCT approval, and take appropriate action. Oxford Technology said it was continued to operate as a VCT, but that if its appeal was unsuccessful would work under the structure of an investment trust.
Shares in Oxford Technology Venture Capital Trust last traded up 22.2% at 55.00 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Scancell Holdings (SCLP)