Albion. Dev Vct Regulatory News (AADV)

30 Mar 2006 12:00

Close Brothers Dev VCT PLC30 March 2006 CLOSE BROTHERS DEVELOPMENT VCT PLC PRELIMINARY RESULTS 30 March 2006 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 2005. Thisannouncement has been approved by the Board of Directors on 29 March 2006. Financial Highlights: Ordinary Shares C Shares Year ended Year ended 31 December 2005 31 December 2005Dividends paid pershare 5.20 5.90Net asset value pershare 102.51 107.81 Shareholder value per share since launch: Pence per Pence per share(ii) share(ii) Dividends paid duringthe period ended 31December 1999 (i) 1.00 0.00 Dividends paid duringthe year to 31December 2000 3.65 0.00 Dividends paid duringthe year to 31December 2001 3.20 0.00 Dividends paid duringthe year to 31December 2002 4.20 0.00 Dividends paid duringthe year to 31December 2003 (iii) &(iv) 4.50 0.75 Dividends paid duringthe year to 31December 2004 4.00 2.00 Dividends paid duringthe year to 31December 2005 5.20 5.90 ---------- ---------- 25.75 8.65Net asset value at 31December 2005 102.51 107.81 ---------- ---------- Total cumulativereturn at 31 December2005 128.26 116.46 ---------- ---------- Notes (i) assuming subscription for Ordinary Shares by the FirstClosing on 26 January 1999. (ii) excluding tax benefits received upon subscription. (iii) assuming subscription for C Shares by the First Closing on31 December 2002. (iv) those subscribing for C Shares after 30 June 2003 were notentitled to the interim dividend. For further information, please contact: Patrick Reeve Clemmie Carr / John WestClose Venture Management Limited Tavistock CommunicationsTel: 020 7422 7831 Tel: 020 7920 3150 Notes 1) Close Brothers Development VCT PLC is managed by Close VentureManagement Limited. 2) Close Venture Management Limited is authorised and regulated by theFinancial Services Authority. 3) The financial information set out in this announcement does notconstitute the Company's statutory accounts for the years ended 31 December 2005or 2004, but is derived from those accounts. The restated financial information for the year ended 31 December 2004 is derived from the statutory accounts for that year. These statutory accounts prior to the restatement changes as described in note 5 below have been delivered to the Registrar of Companies. The financial information for the year ended 31 December 2005 has been derived from the statutory accounts for the year which will be delivered to the Registrar of Companies shortly. The auditors reported on those accounts; their report was unqualified and did not contain statements under s237(2) or (3) Companies Act 1985. 4) There were no changes in equity other than those arising from capitaltransactions with owners and distributions to owners. 5) Changes in accounting policies With effect from 1 January 2005, the Company adopted the new Financial ReportingStandards ("FRS") 21-26, that have been issued by the Accounting Standards Boardas part of the convergence process between United Kingdom Generally AcceptedAccounting Practice and International Financial Reporting Standards ("IFRS").In the case of FRS 25 and 26, the Company applied the exemption from restating2004 comparative figures available on the transition at 1 January 2005. The effects of the relevant accounting policies are disclosed in the respective notes below, and restatement and adjustment of the relative comparative figures are detailed in note 5. Investments In accordance with FRS 26 "Financial Instruments Measurement", equityinvestments are designated as fair value through profit or loss account("FVTPL"). The total column of the Statement of Total Return represents the Company's profit and loss account. Investments listed on recognised exchanges are valued at the closing bid prices at the end of the accounting period. Unquoted investments' fair value is determined by the directors in accordance with the International Private Equity and Venture Capital Valuation Guidelines. Fair value movements on equity investments and gains and losses arising on the disposal of investments are reflected in the capital column of the Statement of Total Return in accordance with the AITC SORP. Unquoted loan stock is classified as loans and receivables in accordance withFRS 26 and carried at amortised cost using the Effective Interest Rate ("EIR")method. Movements in the amortised cost relating to interest income are reflected in the revenue column of the Statement of Total Return and movements in respect of capital provisions are reflected in the capital column of the Statement of Total Return. Loan stock accrued interest is recognised in the Balance Sheet as part of the carrying value of loans and receivables at the end of the reporting period. Investments are recognised as financial assets on legal completion of theinvestment contract and are de-recognised on legal completion of the sale of aninvestment. Under the terms of the transitional provisions contained within FRS26, the opening balances for revenue and unrealised capital reserves at 1 January 2005 in relation to the carrying values of loans and receivables and equity investment valuations have been adjusted to reflect the impact of the adoption of FRS 26. The adoption of FRS26 has resulted in a decrease in unrealised capital reservesand a decrease in the carrying value of the equity investment at 1 January 2005as a result of moving from mid to bid value. In addition it has resulted in a decrease in the Ordinary Share revenue reserve and an increase in the C Share revenue reserve as at 1 January 2005 as a result of the adjustment to the treatment of loan stock investment now held at amortised cost as determined by the EIR method. Dividends In accordance with FRS 21 "Events after the balance sheet date", dividendsdeclared by the Company are accountd for in the period in which the dividend has been approved. Comparatives for revenue reserves at 31 December 2004 have beenrestated in recognition of a change in accounting policy. The adoption of FRS 21 has resulted in a decrease in the distribution liability as a result of the de-recognition of proposed dividends thereon and an increase in the revenue reserves as at 31 December 2004. A reconciliation of reserves incorporating the restatements and adjustmentsrequired by the adoption of FRS21 and FRS26 is illustrated below: Reconciliation of revenue reserves Ordinary Shares C Shares £'000 £'000 ----------------------------------Revenue reserves previously reportedat 31 December 2004 182 50 Restatement as required by adoption of FRS21 - change in accounting for dividends 306 445 ---------- -------- Restated revenue reserve at 31 December 2004 488 495 Adjustment as required by adoption of FRS26 - change in valuation of loan stock investment to amortised cost using the EIR method (55) 40 ---------- ----------Revenue reserves as at 1 January 2005as adjusted 433 535 ========== ========== Reconciliation of unrealised capital reserves----------------------------------------------- Ordinary Shares C Shares £'000 £'000 Unrealised capital reservespreviously reported at 31 December 2004 1,679 1,272 Adjustment as required by adoption of FRS26 - change in valuation of AIM quoted investments to bid price (39) (10) --------- --------Unrealised capital reserves as at 1January 2005 as adjusted 1,640 1,262 ========== ========== The restatement and adjustments to reserves at 31 December 2004 and 1 January 2005 as described in note 5 above are noted in the reconciliation of reserves asfollows: Share Special Capital Realised Unrealised Premium reserve redemption capital capital Revenue reserve reserve reserve reserve £'000 £'000 £'000 £'000 £'000 £'000 Ordinary SharesAt 31 December 2004- (restated for FRS 21) 48 5,991 420 (2,206) 1,679 488 Adjustment to balances - for FRS 26 at 1 January 2005(note 5) - - - - (39) (55) Cancellation of ownshares - (514) 286 - - - Gains/(losses oninvestments - - - 1,442 (19) - Retained net capital account - - - (178) - - Retained net revenue - - - - - (332) ------------- ------ ------ -------- -------- ------At 31 December 2005 48 5,477 706 (941) 1,621 101 ------------- ------ ------ -------- -------- ------ Share Special Capital Realised Unrealised Premium reserve redemption capital capital Revenue reserve reserve reserve reserve £'000 £'000 £'000 £'000 £'000 £'000 C SharesAt 31 December 2004- (restated for FRS 21) 3,160 5,100 93 (362) 1,272 495 Adjustment to balances - for FRS 26 at 1 January 2005(note 5) - - - - (10) 40 Cancellation of ownshares - (236) 126 - - - Gains/(losses oninvestments - - - 1,193 445 - Retained net capital account - - - (441) - - Retained net revenue - - - - - (297) ------------- ------ ------ -------- -------- ------At 31 December 2005 3,160 4,864 219 393 1,707 238 ------------- ------ ------ -------- -------- ------ With the exception of the revised accounting policies as described in note 5 above, this announcement has been prepared on the basis of the accounting policies as stated in the previous years' financial statements. CHAIRMAN'S STATEMENT Introduction I am pleased to report another successful year for the Company; NAV for theOrdinary Shares rose 7% to 102.5 pence per share while the C Shares rose 5% to107.8 pence per share. In addition, excluding the final dividend for the year to31 December 2004, Ordinary Shareholders have been paid two dividends totalling 3pence per share and C Shareholders have been paid two dividends totalling 3.5pence per share during the year. Investment review As reported at the interim stage, the Company saw the successful sale in April2005 of Automotive Technik, the manufacturer of military vehicles, whichrealised a gain of £1.4 million for the Ordinary Share portfolio and a gain of£1.5 million for the C Share portfolio. A number of new investments were madeduring the period. These included the development of a new health and fitnessclub on a 30 acre freehold site in Weybridge, Surrey; the purchase of twocinemas, being the Ritzy in Brixton and the Exeter Picture House; thedevelopment of a new health and fitness club at Tower Bridge in London; and theprovision of development finance to RFI Global Services, which provides testingservices to mobile phone manufacturers. In addition, investments were made infive new companies which own and manage freehold pubs. As a whole, the investment portfolio is performing well. In particular, therehave been uplifts in valuation in Peakdale Molecular, the provider of servicesto the pharmaceutical industry, Grosvenor Health, the occupational healthcareprovider, and Evolutions Television, the TV post-production company. In allthree, performance has continued to improve as the businesses have grown overprevious periods. Proposed amendment to investment policy As set out in more detail in the circular to shareholders enclosed with thisreport and accounts, your Board is recommending at the forthcoming AGM thatshareholders approve an amendment to the Company's existing investment policy.This amendment is designed to give the manager greater flexibility in theinvestments it can make on behalf of the Company, while at the same time aimingto preserve the philosophy of seeking to reduce the risks associated withinvestment in smaller, unquoted companies. Prospects and projected dividends In the current year, your Board considers that the further growth prospects forthe Company's portfolio of investee companies are good. It is the Board'scurrent intention to declare a first dividend at the time of the next quarterlyannouncement of the Company's net asset value, for 31 March 2006, which isexpected to be announced in early May. As reported at the interim stage, theincome generated from the C Share portfolio is strong and growing, whereas theOrdinary Share portfolio's successful disposal programme in late 2004 and early2005 has, while greatly boosting asset value, depressed revenue as high yieldingloan stock has been repaid. It is therefore anticipated that the directors willbe able to declare a first interim dividend of 1 penny per Ordinary Share and1.5 pence per C Share. Results Ordinary Shares As at 31 December 2005 the net asset value of the Ordinary Shares of yourCompany was £13.7 million, compared to £13.4 million (restated) at 31 December2004. This equates to a net asset value per share of 102.5 pence (2004: 96.1pence restated). Net income after taxation for the year amounted to £381,000(2004: £675,000). C Shares As at 31 December 2005 the net asset value of the C Shares of your Company was£19.8 million, compared to £19.0 million (restated) at 31 December 2004. Thisequates to a net asset value per share of 107.8 pence (2004: 102.6 pencerestated). Net income after taxation for the year amounted to £610,000 (2004:£616,000). Roderick Davidson Chairman 29 March 2006 THE PORTFOLIO OF INVESTMENTS Ordinary Shares At 31 December 2005 At 31 December 2004 Equity Investments Cumulative* Total Investments Cumulative* Total Change in owned at cost movement in carrying at cost movement in carrying carrying carrying /fair carrying /fair /fair /fair value /fair value value for value value the year net of investments in the year £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 ----- ------- ------- ------ ------- ------ ------ -------Qualifying investments AutomotiveTechnik (Holdings) Ltd - - - - 819 436 1,255 - CareforceGroup Plc 14% 534 1,859 2,393 534 1,968 2,502 (109) ChurchillTaverns VCT Ltd 5% 115 11 126 - - - - City Screen(Liverpool) Ltd 5% 50 2 52 50 (6) 44 8 CS (Brixton)Ltd 4% 150 - 150 - - - - CS (Exeter) Ltd 4% 60 - 60 - - - - CS (Greenwich) Ltd 2% 110 3 113 110 - 110 3 Consolidated CommunicationsManagement Ltd 11% 1,000 53 1,053 1,000 4 1,004 49 Evolutions Television Ltd 6% 700 117 817 702 1 703 116 GB Pub Company VCT Ltd 4% 170 1 171 - - - - Grosvenor Health Ltd 6% 435 306 741 325 190 515 116 Lowcosttravelgroup Ltd 1% 130 2 132 - - - - Peakdale Molecular Ltd 9% 1,064 179 1,243 1,064 (154) 910 333 The Bold Pub Company Ltd 3% 400 21 421 320 15 335 6 The Dunedin Pub CompanyLtd 3% 80 1 81 - - - - The IndependentBeer Company Ltd 4% 90 (8) 82 - - - - The IndependentPub Co. (VCT) Ltd 3% - - - 60 - 60 - The Q Garden Company Ltd 17% 1,032 (472) 560 682 (417) 265 (55) The Rutland Pub CompanyLtd 4% 60 1 61 - - - - The Weybridge Club Ltd 3% 300 3 303 - - - - Tower Bridge Health ClubsLtd 3% 200 - 200 - - - - ------- ------ ------- ------- ------- ------- ------ Totalqualifying investments 6,680 2,079 8,759 5,666 2,037 7,703 467 Non-qualifying investmentsThe Independent Pub Co.(VCT)Ltd 3% 60 (14) 46 - - - (14) ------- ------ ------- ------- ------ ------- ------Total investments 6,740 2,065 8,805 5,666 2,037 7,703 453 ------- ------ ------- ------- ------ ------- ------- Close Brothers Development VCT PLC Ordinary Shares has also committed funds of£200,000 to a further investment in The Weybridge Club Limited. *Included in this movement is capital appreciation/(depreciation) on the equityinvestments amounting to £1,621,000 (2004: £1,640,000) and the movement incarrying value of loans and receivables of £444,000 (2004: £397,000). THE PORTFOLIO OF INVESTMENTS (Cont'd) C Shares At 31 December 2005 At 31 December 2004 Equity Investments Cumulative* Total Investments Cumulative* Total Change in owned at cost movement in carrying at cost movement in carrying carrying carrying /fair /fair carrying /fair /fair /fair value /fair value value for value value the year net of investments in the year £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 ----- ------- ------- ------ ------- ------ ------ -------Qualifying investments AutomotiveTechnik (Holdings) Ltd - - - - 839 469 1,308 - Careforce Group Plc 4% 263 362 625 263 390 653 (28) Churchill Taverns VCTLtd 6% 160 14 174 - - - - City Centres Breweries Ltd - - - - 804 (320) 484 - CS (Brixton) Ltd 5% 175 - 175 - - - - CS (Exeter) Ltd 4% 65 - 65 - - - - CS (Greenwich) Ltd 13% 650 20 670 650 - 650 20 EvolutionsTelevision Ltd 10% 1,300 194 1,494 305 - 305 194 GB Pub Company VCT Ltd 5% 200 2 202 - - - - GrosvenorHealth Ltd 26% 1,570 1,326 2,896 1,430 788 2,218 538 Lowcosttravelgroup Ltd 2% 160 2 162 - - - - Peakdale Molecular Ltd 3% 133 - 133 133 (100) 33 100 The Bold Pub Company Ltd 12% 1,440 91 1,531 1,350 65 1,415 26 The Dunedin Pub CompanyLtd 4% 100 1 101 - - - - The IndependentBeer Company Ltd 4% 100 (9) 91 - - - - The IndependentPub Co. (VCT) Ltd 7% - - - 230 - 230 (54) The Rutland Pub CompanyLtd 4% 70 - 70 - - - - The Weybridge Club Ltd 8% 800 6 806 - - - - Tower Bridge Health ClubsLtd 4% 260 1 261 - - - - ------- ------- ----- ------- ------- ------ ------- Total qualifyinginvestments 7,446 2,010 9,456 6,004 1,292 7,296 796 Non-qualifying investments Bradford & Bingley FRNApril 06 1,997 3 2,000 1,997 2 1,999 1 Citigroup FRNMarch 2009 2,999 6 3,005 2,999 - 2,999 6 Woolwich FRNApril 06 2,003 (3) 2,000 2,003 - 2,003 (3) Smiles BrewingCompany Limited 48% 155 (33) 122 - - - - Smiles Pub CompanyLimited 48% 430 (29) 401 - - - - The IndependentPub Co. (VCT) Ltd 7% 230 (54) 176 - - - - ------- ------- ------- ------- -------- ----- ------- 7,814 (110) 7,704 6,999 2 7,001 4 ------- ------- ------- ------- -------- ----- ------- Total investments 15,260 1,900 17,160 13,003 1,294 14,297 800 ------- ------- ------- -------- -------- ------ ------- Close Brothers Development VCT PLC C Shares has also committed funds of £1.3million to a future investment in Evolutions Television Limited. *Included in this movement is capital appreciation/(depreciation) on the equityinvestments amounting to £1,707,000 (2004: £1,262,000) and the movement incarrying value of loans and receivables of £193,000 (2004: £32,000). Statement of Total Return (incorporating the revenue account) for the year to 31 December 2005 ----------- -------------- -------------- Ordinary Shares C Shares Total Year ended Year ended Year 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 £'000 ----------------------------------------------------------------------------------------------------------- Gains oninvestments - 1,423 1,423 - 1,638 1,638 - 3,061 3,061 Investmentincome 696 - 696 1,092 - 1,092 1,788 - 1,788 Investmentmanagement fee (88) (263) (351) (127) (382) (509) (215) (645) (860) Other expenses (77) - (77) (102) - (102) (179) - (179) ----- ------ ----- ----- ------ ----- ----- ------ ----- Return onordinary activitiesbefore tax 531 1,160 1,691 863 1,256 2,119 1,394 2,416 3,810 Tax on ordinaryactivities (150) 85 (65) (253) 127 (126) (403) 212 (191) ----- ------ ----- ----- ------ ----- ----- ------ ----- Returnattributable toequity shareholders 381 1,245 1,626 610 1,383 1,993 991 2,628 3,619 Amounts recognised asdistributions to equityshareholdersin the period (713) - (713) (907) (186) (1,093) (1,620) (186) (1,806) ----- ------ ----- ----- ------ ----- ----- ------ ----- Transfer (from)/toreserves (332) 1,245 913 (297) 1,197 900 (629) 2,442 1,813 ===== ====== ===== ===== ====== === ===== ===== ====== Basic and diluted returnper share (pence) 2.8 9.1 11.9 3.3 7.5 10.8 ----------- ----- ------ ---- ----- ----- ------ ----- ----- ----- All of the Company's activities derive from continuing operations.The total column of this Statement of Total Return represents the profit and loss account of the Company in accordance with FRS 26. There were no recognised gains and losses other than the results for the year asdisclosed above. Accordingly a statement of total recognised gains and losses isnot required. Statement of Total Return (incorporating the revenue account) for the year to 31 December 2004 (Restated)* ----------- -------------- -------------- Ordinary Shares C Shares Total Year ended Year ended Year ended 31 December 2004 31 December 2004 31 December 2004 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 ----------------------------------------------------------------------------------------------------------- Gains oninvestments - 2,463 2,463 - 1,366 1,366 - 3,829 3,829 Investmentincome 1,121 - 1,121 1,097 - 1,097 2,218 - 2,218 Investmentmanagement fee (76) (229) (305) (101) (303) (404) (177) (532) (709) Other expenses (81) - (81) (116) - (116) (197) - (197) ----- ----- ------ ------- ----- ----- ------ ----- ------ Return onordinary activitiesbefore tax 964 2,234 3,198 880 1,063 1,943 1,844 3,297 5,141 Tax on ordinaryactivities (289) 72 (217) (264) 93 (171) (553) 165 (388) ----- ----- ------ ------- ----- ----- ------ ----- ------ Returnattributable to equityshareholders 675 2,306 2,981 616 1,156 1,772 1,291 3,462 4,753 Amounts recognised asdistributions to equityshareholdersin the period (577) - (577) (233) - (233) (810) - (810) ----- ----- ------ ------- ----- ----- ------ ----- ------ Transfer toreserves 98 2,306 2,404 383 1,156 1,539 481 3,462 3,943 ====== ======== ======= ======= ======= ====== ====== ====== ======= Basic and diluted returnper share (pence) 4.7 16.1 20.8 3.6 6.8 10.4 ------ --------- ------- ------- ------- ------ * Comparative figures have been extracted from the statutory accounts for theyear ended 31 December 2004 and have been restated in accordance with FRS21 asexplained in note 5. All of the Company's activities derive from continuing operations. There were no recognised gains and losses other than the results for the year asdisclosed above. Accordingly a statement of total recognised gains and losses isnot required. Balance Sheet as at 31 December 2005 ---------------------- ---------- ---------- ---------- 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 duewithin one year (201) (390) (591) ---------- ---------- ---------- Net current assets 4,885 2,572 7,457 ---------- ---------- ---------- Total assets less currentliabilities 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 ---------------------- ---------- ---------- ---------- Balance Sheet as at 31 December 2004 (Restated)* ---------------------- ---------- ---------- ---------- Ordinary Shares C Shares Total 31 December 31 December 31 December 2004 2004 2004 £'000 £'000 £'000 ---------------------- ---------- ---------- ---------- Fixed asset investmentsQualifying investments 7,703 7,297 15,000Non-qualifying investments - 7,000 7,000 ---------- ---------- ---------- Total fixed asset investments 7,703 14,297 22,000 Current assetsDebtors 186 110 296Cash at bank 5,980 5,045 11,025 ---------- ---------- ---------- 6,166 5,155 11,321 Creditors: amounts falling duewithin one year (485) (416) (901) ---------- ---------- ---------- Net current assets 5,681 4,739 10,420 ---------- ---------- ---------- Total assets less currentliabilities 13,384 19,036 32,420 ========== ========== ========== Capital and reservesCalled up share capital 6,964 9,278 16,242Share premium 48 3,160 3,208Special reserve 5,991 5,100 11,091Capital redemption reserve 420 93 513Realised capital reserve (2,206) (362) (2,568)Unrealised capital reserve 1,679 1,272 2,951Revenue reserve 488 495 983 ---------- ---------- ---------- Total equity shareholders' funds 13,384 19,036 32,420 ========== ========== ========== Net asset value per share (pence) 96.1 102.6 ---------------------- ---------- ---------- ---------- * Comparative figures have been restated in accordance with FRS21 in respect of declared dividends. Cash flow Statement for the year ended 31 December 2005 ----------------------- ---------- ---------- ---------- Ordinary Shares C Shares Total Year ended Year ended Year ended 31 December 31 December 31 December 2005 2005 2005 £'000 £'000 £'000 ----------------------- ---------- ---------- ---------- Operating activitiesInvestment incomereceived 253 482 735Deposit incomereceived 144 528 672Other incomereceived 6 16 22Investmentmanagement feespaid (453) (451) (904)Other cashpayments (3) - (3) ---------- ---------- ---------- Net cash (outflow)/inflowfrom operatingactivities (53) 575 522 Taxation (536) - (536) Capital expenditure and financial investmentPurchase ofqualifyinginvestments (1,595) (3,620) (5,215)Purchase ofnon-qualifyinginvestments - (92) (92)Disposals ofqualifyinginvestments 2,405 2,340 4,745 ---------- ---------- ---------- Net cashinflow/(outflow)from investingactivities 810 (1,372) (562) Equity dividends paidDividends paid onordinary shares (713) (1,093) (1,806) ---------- ---------- ---------- Net cash(outflow)before financing (492) (1,890) (2,382) FinancingCancellation ofshares (513) (248) (761) ---------- ---------- ---------- Net cash outflowfrom financing (513) (248) (761) ---------- ---------- ---------- Decrease in cashin the period (1,005) (2,138) (3,143) ========== ========== ========== Cash flow Statement for the year ended 31 December 2004 ----------------------- ----------- ---------- ---------- Ordinary Shares C Shares Total Year ended Year ended Year ended 31 December 31 December 31 December 2004 2004 2004 £'000 £'000 £'000 ----------------------- ----------- ---------- ---------- Operating activitiesInvestment incomereceived 1,397 822 2,219Deposit incomereceived 84 192 276Other incomereceived 1 - 1Investmentmanagement feespaid (366) (403) (769)Other cashpayments (101) 27 (74) ----------- ---------- ---------- Net cash inflowfrom operatingactivities 1,015 638 1,653 Capital expenditure and financial investmentPurchase ofqualifyinginvestments (1,741) (4,733) (6,474)Purchase ofnon-qualifyinginvestments - (2,999) (2,999)Disposals ofqualifyinginvestments 5,240 1,056 6,296Disposals ofnon-qualifyinginvestments - 1,999 1,999 ----------- ---------- ---------- Net cashinflow/(outflow)from investingactivities 3,499 (4,677) (1,178) Equity dividends paidDividends paid onordinary shares (577) (233) (810) ----------- ---------- ---------- Net cashinflow/outflowbefore financing 3,937 (4,272) (335) FinancingIssue of equitynet of expenses - 6,671 6,671Cancellation ofshares (425) (146) (571) ----------- ---------- ---------- Net cash (outflow)/inflowfrom financing (425) 6,525 6,100 ----------- ---------- ---------- Increase in cashin the year 3,512 2,253 5,765 =========== ========== ========== This information is provided by RNS The company news service from the London Stock Exchange