Albion. Dev Vct Regulatory News (AADV)

1 Mar 2007 13:51

Close Brothers Dev VCT PLC01 March 2007 CLOSE BROTHERS DEVELOPMENT VCT PLC PRELIMINARY RESULTS 1 March 2007 Close Brothers Development VCT PLC ("the Company"), which provides equity anddebt finance to growing unquoted and quoted companies across a variety ofsectors, with investments ranging from service to asset-backed businesses, todayannounces preliminary results for the year ended 31 December 2006. Thisannouncement has been approved by the Board of Directors on 28 February 2007. Financial Highlights: Ordinary Shares C Shares Year ended Year ended 31 December 2006 31 December 2006 Dividends paid per share (pence) 3.00 4.50Net asset value per share (pence) 94.60 101.40 Shareholder value per share since launch: Pence per share(ii) Pence per share(ii) Dividends paid during the period ended 31 December 1999 (i) 1.00 -Dividends paid during the year to 31 December 2000 3.65 -Dividends paid during the year to 31 December 2001 3.20 -Dividends paid during the year to 31 December 2002 4.20 -Dividends paid during the year to 31 December 2003 (iii) & (iv) 4.50 0.75Dividends paid during the year to 31 December 2004 4.00 2.00Dividends paid during the year to 31 December 2005 5.20 5.90Dividends paid during the year to 31 December 2006 3.00 4.50 28.75 13.15Net asset value per share as at 31 December 2006 94.60 101.40 Total cumulative shareholder return at 31 December 2006 123.35 114.55 Notes (i) assuming subscription for Ordinary Shares by the First Closing on 26 January 1999. (ii) excluding tax benefits received upon subscription. (iii) assuming subscription for C Shares by the First Closing on 31 December 2002. (iv) those subscribing for C Shares after 30 June 2003 were not entitled to the interim dividend. For further information, please contact: Patrick Reeve Roddi Vaughan-ThomasClose Ventures Limited Peregrine Communications GroupTel: 020 7422 7831 Tel: 020 7223 1552 CHAIRMAN'S STATEMENT Investment Commentary The results of your company for year to 31 December 2006 are set out below. AsI said at the time of the interim results, after the strong performance of thelast two years, this year has been a period of consolidation and, while theperiod saw total dividends paid of 3.0 pence per Ordinary share and 4.5 penceper C share, NAV declined by 7.9 pence per Ordinary share to 94.6 pence, and 6.4pence per C share to 101.4 pence. The resulting negative return for the period of 5.3 pence for the Ordinaryshares and 2.1 pence for the C shares was caused principally by the reduction inthe share price of our holding in Careforce plc which is quoted on AIM, andpartial provisions against three investments, Peakdale Molecular, EvolutionsTelevision and Grosvenor Health, where previous strong growth slowed in theearly months of last year. The Ordinary share portfolio was also affected by aslowdown in trading at Consolidated Communications. Other businesses, however,have performed promisingly, in particular The Bold Pub Company,Lowcosttravelgroup and Tower Bridge Health Clubs. Overall, we believe that theinvestment portfolio is solid and forms a decent platform for future growth. Over the period, we made twelve new investments, with a cost of £1.6 million forthe Ordinary shares and £3.6 million for the C shares. These included Blackbay(£740,000) which provides mobile data solutions for the logistics and fieldservices sectors, and Kensington Health Clubs (£1 million) which has purchased a26,000 square foot building at Olympia in West London, which it will convertinto a new health and fitness club. Following these investments, the C shareportfolio exceeded its 70% investment target as required by the VCT regulations. Conversion of C shares into Ordinary shares As required under your Company's Articles of Association, the C shares convertinto Ordinary shares on the ratio of their respective net asset values per shareat 31 December 2006. The conversion is effective from 31 March 2007, followingthe Annual General Meeting to approve those accounts. Based on their respectivenet asset values, C shareholders will receive 1.0715 new Ordinary shares foreach C share held. Once the new Ordinary share certificates have beendispatched, which is expected to be by 20 April 2007, the C share certificateswill have no further value and should be destroyed. New Management Performance Incentive The Management Performance Incentive for the Ordinary shares came to an end on31 December 2006. These schemes are important for the recruitment and retentionof quality investment managers, and consequently we will be writing toshareholders shortly to propose a new scheme. This scheme will be subject toshareholder approval at an Extraordinary General Meeting to be confirmed. Board I have been Chairman of your Company since its launch in 1999, and as I will beseventy early next year, I will be retiring from the Board before the nextAnnual General Meeting in 2008. A selection process for my successor iscurrently underway, and we will inform shareholders once a new candidate hasbeen appointed. Results and dividends As at 31 December 2006 the net asset value of the company's Ordinary shares was£12.1 million or 94.6 pence per share (2005: £13.7 million or 102.5 pence pershare). Net income after taxation was £396,000 (2005: £381,000). As at thesame date, the net asset value of the C shares was £18.2 million or 101.4 penceper share (2005: £19.7 million or 107.8 pence per share), while net income aftertaxation was £657,000 (2005: £610,000). Subject to sufficient profitability, the Company intends to pay a first dividendfor the new financial year of 1.5 pence per share in May 2007, following theconversion of the two classes of share. Roderick Davidson Chairman Income Statement for the year to 31 December 2006 Ordinary Shares C Shares Total Year Year Year ended ended ended 31 December 2006 31 December 2006 31 December 2006 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Losses oninvestments - (910) (910) - (766) (766) - (1,676) (1,676)Investment income 733 - 733 1,160 - 1,160 1,893 - 1,893Investment management fee (84) (251) (335) (126) (377) (503) (210) (628) (838)Other expenses (85) - (85) (106) - (106) (191) - (191) Return onordinaryactivitiesbefore tax 564 (1,161) (597) 928 (1,143) (215) 1,492 (2,304) (812)Tax (charge)/credit onordinaryactivities (168) 73 (95) (271) 114 (157) (439) 187 (252)Returnattributable toequityshareholders 396 (1,088) (692) 657 (1,029) (372) 1,053 (2,117) (1,064)Basic and dilutedreturn pence per 3.0 (8.3) (5.3) 3.6 (5.7) (2.1) 6.6 (14.0) (7.4)share (excludingtreasury shares) The total column of this Income Statement represents the profit and loss accountof the Company. The supplementary revenue and capital return columns have beenprepared in accordance with the Association of Investment Trust Companies'Statement of Recommended Practice. All revenue and capital items in the above statement derive from continuingoperations. There were no recognised gains or losses other than the results for the year asdisclosed above. Accordingly a statement of total recognised gains and lossesis not required. Income Statement for the year to 31 December 2005 Ordinary Shares C Shares Total Year Year Year ended ended ended 31 December 2005 31 December 2005 31 December 2005 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Gains oninvestments - 1,423 1,423 - 1,638 1,638 - 3,061 3,061Investment income 696 - 696 1,092 - 1,092 1,788 - 1,788Investmentmanagement fee (88) (263) (351) (127) (382) (509) (215) (645) (860)Other expenses (77) - (77) (102) - (102) (179) - (179)Return onordinaryactivitiesbefore tax 531 1,160 1,691 863 1,256 2,119 1,394 2,416 3,810Tax (charge)/credit on ordinaryactivities (150) 85 (65) (253) 127 (126) (403) 212 (191)Returnattributable toequityshareholders 381 1,245 1,626 610 1,383 1,993 991 2,628 3,619Basic and dilutedreturn pence per 2.8 9.1 11.9 3.3 7.5 10.8 6.1 16.6 22.7share The total column of this Income Statement represents the profit and loss accountof the Company. The supplementary revenue and capital return columns have beenprepared in accordance with the Association of Investment Trust Companies'Statement of Recommended Practice. All revenue and capital items in the above statement derive from continuingoperations. There were no recognised gains or losses other than the results for the year asdisclosed above. Accordingly a statement of total recognised gains and lossesis not required. Balance Sheet Ordinary Shares C Shares Total 31 December 31 December 31 December 2006 2006 2006 £'000 £'000 £'000 Fixed asset investmentsQualifying investments 9,512 12,363 21,875Non-qualifying investments - 3,892 3,892Total fixed asset investments 9,512 16,255 25,767 Current assetsDebtors 20 389 409Cash at bank 2,597 1,639 4,236 2,617 2,028 4,645 Creditors: amounts falling due within one year (48) (70) (118) Net current assets 2,569 1,958 4,527 Total assets less current liabilities 12,081 18,213 30,294 Capital and reservesCalled up share capital 6,521 9,060 15,581Share premium 48 3,160 3,208Special reserve 5,196 4,693 9,889Capital redemption reserve 863 310 1,173Realised capital reserve (1,118) (26) (1,144)Unrealised capital reserve 711 941 1,652Own treasury shares reserve (239) (149) (388)Revenue reserve 99 224 323 Total equity shareholders' funds 12,081 18,213 30,294 Net asset value per share (pence) (excluding 94.6 101.4treasury shares) The financial statements were approved by the Board of Directors on 28 February2007. Balance Sheet Ordinary Shares C Shares Total 31 December 31 December 31 December 2005 2005 2005 £'000 £'000 £'000 Fixed asset investmentsQualifying investments 8,759 9,456 18,215Non-qualifying investments 46 7,704 7,750 Total fixed asset investments 8,805 17,160 25,965 Current assetsDebtors 111 55 166Cash at bank 4,975 2,907 7,882 5,086 2,962 8,048 Creditors: amounts falling due within one year (201) (390) (591) Net current assets 4,885 2,572 7,457 Total assets less current liabilities 13,690 19,732 33,422 Capital and reservesCalled up share capital 6,678 9,151 15,829Share premium 48 3,160 3,208Special reserve 5,477 4,864 10,341Capital redemption reserve 706 219 925Realised capital reserve (941) 393 (548)Unrealised capital reserve 1,621 1,707 3,328Revenue reserve 101 238 339 Total equity shareholders' funds 13,690 19,732 33,422 Net asset value per share (pence) 102.5 107.8 Reconciliation of movement in shareholders' funds For the year ended 31 December 2006 Ordinary shares Called Share Capital Realised Unrealised Own up Special Revenue capital capital Treasury share redemption shares capital premium reserve reserve reserve reserve Total reserve reserve £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 As adjusted at 1 6,964 48 5,991 420 (2,206) 1,640 - 433 13,290January 2005 Net realised gains oninvestments inthe period - - - - 1,442 - - - 1,442Capitalised investmentmanagementand performance fees - - - - (263) - - - (263)Tax relief on costs - - - - 85 - - - 85charged to capitalCancellation of own (286) - (514) 286 - - - - (514)sharesMovement in unrealised - - - - - (19) - - (19)appreciationRevenue return - - - - - - - 381 381attributable toshareholdersDividends paid - - - - - - - (713) (713)As at 31 December 2005 6,678 48 5,477 706 (942) 1,621 - 101 13,690Net realised gains oninvestments inthe year - - - - 1 - - - 1Capitalised investmentmanagementand performance fees - - - - (251) - - - (251)Tax relief on costs - - - - 73 - - - 73charged to capitalCancellation of own (157) - (281) 157 - - - - (281)sharesPurchase of own shares - - - - - - (239) - (239)for TreasuryMovement in unrealised - - - - - (910) - - (910)appreciationRevenue return - - - - - - - 396 396attributable toshareholdersDividends paid - - - - - - - (398) (398) As at 31 December 2006 6,521 48 5,196 863 (1,118) 711 (239) 99 12,081 Reconciliation of movement in shareholders' funds For the year ended 31 December 2006 C shares Called Capital Realise Own up Unrealised Treasury Share Share Capital capital shares Special Redemption Revenue Capital Reserve Reserve reserve reserve Total Premium Reserve reserve £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 As at 1 January 2005 9,278 3,160 5,100 93 (362) 1,262 - 535 19,066 Net realised gains oninvestments inthe period - - - - 1,193 - - - 1,193Capitalised investmentmanagementand performance fees - - - - (382) - - - (382)Tax relief on costs - - - - 127 - - - 127charged to capitalShare redemptions (126) - (236) 126 - - - - (236)Movement in unrealised - - - - - 445 - - 445appreciationRevenue return - - - - - - - 610 610attributable toshareholdersDividends paid - - - - (186) - - (907) (1,093)As at 31 December 2005 9,151 3,160 4,864 219 393 1,707 - 238 19,732Net realised gains oninvestments inthe year - - - - - - - - -Capitalised investmentmanagementand performance fees - - - - (377) - - - (377)Tax relief on costs - - - - 114 - - - 114charged to capitalShare redemptions (91) - (171) 91 - - - - (171)Purchase of own shares - - - - - - (149) - (149)for TreasuryMovement in unrealised - - - - - (766) - - (766)appreciationRevenue return - - - - - - - 657 657attributable toshareholdersDividends paid - - - - (156) - - (671) (827) As at 31 December 2006 9,060 3,160 4,693 310 (26) 941 (149) 224 18,213 Cash flow Statement for the year ended 31 December 2006 Ordinary Shares C Shares Total Year ended Year ended Year ended 31 December 2006 31 December 2006 31 December 2006 £'000 £'000 £'000 Operating activitiesInvestment income received 506 577 1,083Deposit income received 141 387 528Other income received 22 13 35Investment management fees paid (429) (637) (1,066)Other operating expenses paid (98) (116) (214)Other cash payments 39 (380) (341) Net cash inflow/(outflow) from operating 181 (156) 25activities Taxation (144) (268) (412) Capital expenditure and financial investmentPurchase of qualifying investments (1,565) (3,253) (4,818)Purchase of non-qualifying investments - (377) (377)Disposals of qualifying investments 1 - 1Disposals of non-qualifying investments - 4,000 4,000 Net cash (outflow)/inflow from investing (1,564) 370 (1,194)activities Equity dividends paidDividends paid on ordinary shares (398) (827) (1,225) Net cash outflow before financing (1,925) (881) (2,806) FinancingCancellation of shares (281) (171) (452)Own treasury shares (239) (149) (388)Intercompany account movement 67 (67) - Net cash outflow from financing (453) (387) (840) Decrease in cash in the year (2,378) (1,268) (3,646) Cash flow Statement for the year ended 31 December 2005 Ordinary Shares C Shares Total Year ended Year ended Year ended 31 December 2005 31 December 2005 31 December 2005 £'000 £'000 £'000 Operating activitiesInvestment income received 253 482 735Deposit income received 144 528 672Other income received 6 16 22Investment management fees paid (453) (451) (904)Other cash payments (3) - (3) Net cash (outflow)/inflow from operating (53) 575 522activities Taxation (536) - (536) Capital expenditure and financial investmentPurchase of qualifying investments (1,595) (3,620) (5,215)Purchase of non-qualifying investments - (92) (92)Disposals of non-qualifying investments 2,405 2,340 4,745 Net cash inflow/(outflow) from investing 810 (1,372) (562)activities Equity dividends paidDividends paid on ordinary shares (713) (1,093) (1,806) Net cash outflow before financing (492) (1,890) (2,382) FinancingCancellation of shares (513) (248) (761) Net cash outflow from financing (513) (248) (761) Decrease in cash in the year (1,005) (2,138) (3,143) Notes 1) Close Brothers Development VCT PLC is managed by Close Ventures Limited. 2) Close Ventures Limited is authorised and regulated by the FinancialServices Authority. 3) The financial information set out in this announcement does notconstitute the Company's statutory accounts for the year ended 31 December 2006or 2005. 4) The financial information for the year ended 31 December 2005 is derivedfrom the statutory accounts for that year delivered to the Registrar ofCompanies. The auditors reported on those accounts; their report was unqualifiedand did not contain any emphasis of matter or a statement under s237(2) or (3)Companies Act 1985. 5) The financial information for the year ended 31 December 2006 has beenderived from the statutory accounts for the year which will be delivered to theRegistrar of Companies shortly. The auditors reported on those accounts; theirreport was unqualified and did not contain statements under s237(2) or (3)Companies Act 1985. 6) The financial information has been prepared on the basis of theaccounting policies set out in the Company's financial statements for the yearended 31 December 2005. 7) There were no changes in equity other than those arising from capitaltransactions with owners and distributions to owners. This information is provided by RNS The company news service from the London Stock Exchange