Albion. Dev Vct Regulatory News (AADV)

21 Sep 2006 15:00

Close Brothers Dev VCT PLC21 September 2006 CLOSE BROTHERS DEVELOPMENT VCT PLC INTERIM RESULTS Close Brothers Development VCT PLC VCT PLC ("the Company"), today announces itsinterim results for the six months to 30 June 2006. For further information, please contact: Patrick Reeve Clemmie CarrClose Venture Management Limited Tavistock CommunicationsTel: 020 7422 7830 Tel: 020 7920 3150 Notes to Editors: Close Brothers Development VCT PLC is managed by Close Venture ManagementLimited. Close Venture Management Limited is a subsidiary of Close Brothers Group Plc andis regulated by the Financial Services Authority. Unaudited interim reports for the period will be sent to shareholders shortly. The financial information set out in the announcement does not constitute theCompany's statutory accounts for the six months ended 30 June 2006 or 2005. Thefinancial information for the year ended 31 December 2005 is derived from thestatutory accounts delivered to the Registrar of Companies. The auditorsreported on those accounts; their report was unqualified and did not contain astatement under s237 (2) or (3) of the Companies Act 1985. CHAIRMAN'S STATEMENT Introduction The investment strategy of the company is to establish a diversified portfolioof holdings in smaller unquoted companies whilst at the same time selecting andstructuring investments in such a way as to limit the risk normally associatedwith investments in these companies. Following the amendments to the company'sinvestment policy, approved at the Annual General Meeting held in May of thisyear, the portfolio also includes a limited number of higher risk companieswhich the Board believes have greater growth prospects. Investment review Ordinary share portfolio After the strong performance of the last two years, where the recovery in thenet asset value of the Ordinary shares was driven in large part by threesuccessful trade sales and a flotation, the first six months of this year hasbeen a period of consolidation. This resulted in a negative return for theperiod of 6.8 pence per share, the majority of which was caused by the reductionin the share price of our holding in Careforce plc which is quoted on AIM. Inaddition, partial provision has been made against two investments, PeakdaleMolecular and Evolutions Television, where previous strong growth slowed in theearly months of the year (these have been reduced to around cost). Otherbusinesses, however, have performed promisingly, in particular The Bold PubCompany, where a strong return is being achieved on its thirty freehold pubs inthe Northwest of England, and Lowcosttravelgroup, the online travel business,where sales have increased sharply since our investment in 2005. C share portfolio The C share portfolio showed a negative return for the period of 1.4 pence pershare for similar reasons to those stated for the Ordinary shares. The portfoliois now nearing its required 70% investment level with some £1.2 million investedduring the period with further investments in progress. Key new investments,which were shared with the Ordinary share portfolio, included RFI GlobalServices, which provides testing facilities to mobile phone manufacturersworldwide, Blackbay, which provides systems for field force and supply chainlogistics, and Dexela, which has designed a potentially revolutionary form ofimaging system for the screening of breast cancer. Results and dividends As at 30 June 2006 the net asset value of the company's Ordinary shares was£12.4m or 95.0p per share (2005: £13.1m or 96.8p per share). Net income aftertaxation was £201,000 (2005: £180,000). It is currently anticipated that thedirectors will be able to declare a second dividend for the year of 2p perordinary share which is expected to be announced in November. As at 30 June 2006 the net asset value of the C shares was £19.0m or 105.0p pershare (2005: £19.3m or 104.9p per share). It is currently anticipated that thedirectors will be able to declare a second dividend for the C shares of 3p peryear per share, which is also expected to be announced in November. Shareholders are reminded that the Ordinary shares and C shares will merge afterthe end of this financial year, with the C shares converting to the Ordinaryshares in the ratio of their respective net asset values. We will be writing toyou further on this subject in due course. R M DavidsonChairman 20 September 2006 FINANCIAL HIGHLIGHTS The following is the total return of the Company since launch in January 1999. Ordinary Shares C Shares-------------------------- ---------- ----------Shareholder value per share since launch: Pence per share(ii) Pence per share(ii)Dividends paid during the year to31 December 1999 (i) 1.00 -Dividends paid during the year to31 December 2000 3.65 -Dividends paid during the year to31 December 2001 3.20 -Dividends paid during the year to31 December 2002 4.20 -Dividends paid during the year to31 December 2003(iii) & (iv) 4.50 0.75Dividends paid during the year to31 December 2004 4.00 2.00Dividends paid during the year to31 December 2005 5.20 5.90Dividends paid during the sixmonths to 30 June 2006 1.00 1.50 ---------- ---------- 26.75 10.15Net asset value at 30 June 2006 95.04 105.02 ---------- ----------Total cumulative return at 30 June 2006 121.79 115.17 ---------- ---------- Notes (i) Assuming subscription for Ordinary Shares by the First Closing on 26 January1999. (ii) Excluding tax benefits received upon subscription. (iii) Assuming subscription for C Shares by the First Closing on 31 December2002. (iv) Those subscribing for C Shares after 30 June 2003 were not entitled to theinterim dividend. INCOME STATEMENT for the six months to 30 June 2006 Ordinary Shares Unaudited Unaudited Audited Six months to Six months to Year to 30 June 2006 30 June 2005 31 December 2005 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 -------- ------ ----- ----- ----- ----- ----- ----- -----(Losses)/gains oninvestments - (987) (987) - 657 657 - 1,423 1,423Investmentincome 371 - 371 343 - 343 696 - 696Investmentmanagement fee (42) (127) (169) (44) (131) (175) (88) (263) (351)Other expenses (43) - (43) (42) - (42) (77) - (77) ----- ------- ---- ----- ------- ---- ------ ----- -----Return/(loss) onordinary activitiesbefore tax 286 (1,114) (828) 257 526 783 531 1,160 1,691Tax on ordinaryactivities (85) 32 (53) (77) 42 (35) (150) 85 (65) ----- ------- ---- ----- ------- ---- ------ ----- -----Return/(loss)attributable toequity shareholders 201 (1,082) (881) 180 568 748 381 1,245 1,626 ===== ======= ==== ===== ======= ==== ====== ===== =====Basic and dilutedreturn/(loss) pershare (pence) 1.5 (8.3) (6.8) 1.3 4.1 5.4 2.8 9.1 11.9----------- ----- ------- ---- ----- ------ ---- ------ ----- ----- All of the Company's activities derive from continuing operations. The Company has no recognised gains or losses other than the results for theyear as set out above, accordingly a statement of total recognised gains andlosses is not required. The total column of this Income Statement represents the profit and loss accountof the Ordinary Shares. The supplementary revenue return and capital returncolumns have been prepared in accordance with the Association of InvestmentTrust Companies' Statement of Recommended Practice. INCOME STATEMENT for the six months to 30 June 2006 C Shares Unaudited Unaudited Audited Six months to Six months to Year to 30 June 2006 30 June 2005 31 December 2005 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 -------- ------ ----- ----- ----- ----- ----- ----- -----(Losses)/gains oninvestments - (422) (422) - 1,009 1,009 - 1,638 1,638Investmentincome 556 - 556 582 - 582 1,092 - 1,092Investmentmanagement fee (59) (178) (237) (64) (191) (255) (127) (382) (509)Other expenses (60) - (60) (55) - (55) (102) - (102) ----- ------ ---- ----- ------ ----- ------ ----- -----Return/(loss) onordinary activitiesbefore tax 437 (600) (163) 463 818 1,281 863 1,256 2,119Tax on ordinaryactivities (133) 41 (92) (137) 63 (74) (253) 127 (126) ----- ------ ---- ----- ------ ----- ------ ---- -----Return/(loss)attributable toequity shareholders 304 (559) (255) 326 881 1,207 610 1,383 1,993 ===== ======= ==== ===== ======= ===== ====== ===== =====Basic and dilutedreturn/(loss) pershare (pence) 1.7 (3.1) (1.4) 1.8 4.8 6.6 3.3 7.5 10.8 ----- ------- ---- ----- ------- ----- ------ ------ ----- All of the Company's activities derive from continuing operations. The Company has no recognised gains or losses other than the results for theyear as set out above, accordingly a statement of total recognised gains andlosses is not required. The total column of the Income Statement represents the profit and loss accountof the C Shares. The supplementary revenue return and capital return columnshave been prepared in accordance with the Association of Investment TrustCompanies' Statement of Recommended Practice. INCOME STATEMENT for the six months to 30 June 2006 Total Unaudited Unaudited Audited Six months to Six months to Year to 30 June 2006 30 June 2005 31 December 2005 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 (Losses)/gains oninvestments - (1,409) (1,409) - 1,666 1,666 - 3,061 3,061Investmentincome 927 - 927 925 - 925 1,788 - 1,788Investmentmanagement fee (101) (305) (406) (108) (322) (430) (215) (645) (860) Other expenses (103) - (103) (97) - (97) (179) - (179) ----- ------- ----- ----- ------ ----- ------ ----- ----- Return/(loss) onordinary activitiesbefore tax 723 (1,714) (991) 720 1,344 2,064 1,394 2,416 3,810 Tax on ordinaryactivities (218) 73 (145) (214) 105 (109) (403) 212 (191) ----- ------- ----- ----- ------- ----- ------ ----- ----- Return/(loss)attributable toequity shareholders 505 (1,641) (1,136) 506 1,449 1,955 991 2,628 3,619 ===== ======= ===== ===== ======= ===== ====== ===== ===== The total column of the Income Statement represents the profit and loss accountof the Company. The supplementary revenue return and capital return columns havebeen prepared in accordance with the Association of Investment Trust Companies'Statement of Recommended Practice. BALANCE SHEET as at 30 June 2006 Ordinary Shares Unaudited Unaudited Audited 30 June 2006 30 June 2005 31 December 2005 £'000 £'000 £'000 ---------- ---------- ----------- Fixed asset investmentsQualifying investments 8,713 6,944 8,759Non-qualifying investments - 60 46 ---------- ---------- ----------- Total fixed asset investments 8,713 7,004 8,805 Current assetsDebtors 428 68 111Cash at bank 3,512 6,678 4,975 ---------- ---------- ----------- 3,940 6,746 5,086 Creditors: amounts fallingdue within one year (257) (605) (201) ---------- ---------- ----------- Net current assets 3,683 6,141 4,885 ---------- ---------- ----------- Net assets 12,396 13,145 13,690 ========== ========== =========== Capital and reservesCalled up share capital 6,521 6,788 6,678Share premium 48 48 48Special reserve 5,199 5,671 5,477Capital redemption reserve 863 596 706Realised capital reserve (1,036) (875) (941)Unrealised capital reserve 633 877 1,621Revenue reserve 168 40 101 ---------- ---------- ----------- Equity shareholders' funds 12,396 13,145 13,690 ========== ========== =========== Net asset value per share(pence) 95.0 96.8 102.5 BALANCE SHEET as at 30 June 2006 C Shares ---------- ---------- ----------- Unaudited Unaudited Audited 30 June 2006 30 June 2005 31 December 2005 £'000 £'000 £'000 ---------- ---------- ----------- Fixed asset investmentsQualifying investments 11,389 6,768 9,456Non-qualifying investments 3,598 7,762 7,704 ---------- ---------- ----------- Total fixed asset investments 14,987 14,530 17,160 Current assetsDebtors 6 130 55Cash at bank 4,848 4,916 2,907 ---------- ---------- ----------- 4,854 5,046 2,962 Creditors: amounts fallingdue within one year (811) (256) (390) ---------- ---------- ----------- Net current assets 4,043 4,790 2,572 ---------- ---------- ----------- Net assets 19,030 19,320 19,732 ========== ========== =========== Capital and reservesCalled up share capital 9,060 9,212 9,151Share premium 3,160 3,160 3,160Special reserve 4,695 4,976 4,864Capital redemption reserve 310 159 219Realised capital reserve 254 483 393Unrealised capital reserve 1,285 1,113 1,707Revenue reserve 266 217 238 ---------- ---------- ----------- Equity shareholders' funds 19,030 19,320 19,732 ========== ========== =========== Net asset value per share(pence) 105.0 104.9 107.8 BALANCE SHEET as at 30 June 2006 Total ---------- ---------- ----------- Unaudited Unaudited Audited 30 June 2006 30 June 2005 31 December 2005 £'000 £'000 £'000 ---------- ---------- ----------- Fixed asset investmentsQualifying investments 20,102 13,712 18,215Non-qualifying investments 3,598 7,822 7,750 ---------- ---------- ----------- Total fixed asset investments 23,700 21,534 25,965 Current assetsDebtors 434 198 166Cash at bank 8,360 11,594 7,882 ---------- ---------- ----------- 8,794 11,792 8,048 Creditors: amounts fallingdue within one year (1,068) (861) (591) ---------- ---------- ----------- Net current assets 7,726 10,931 7,457 ---------- ---------- ----------- Net assets 31,426 32,465 33,422 ========== ========== =========== Capital and reservesCalled up share capital 15,581 16,000 15,829Share premium 3,208 3,208 3,208Special reserve 9,894 10,647 10,341Capital redemption reserve 1,173 755 925Realised capital reserve (782) (392) (548)Unrealised capital reserve 1,918 1,990 3,328Revenue reserve 434 257 339 ---------- ---------- ----------- Equity shareholders' funds 31,426 32,465 33,422 ========== ========== =========== This interim information was approved by the Board of Directors on 20 September2006. Signed on behalf of the Board of Directors Roderick DavidsonChairman RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS for the year ended 30 June 2006 Ordinary Shares Called up Capital Realised Unrealised share Share Special redemption capital capital Revenue capital premium reserve reserve reserve reserve reserve Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 As at 1 July 2005 6,788 48 5,671 596 (875) 877 40 13,145Net realised gains on investments inthe period - - - - 23 - - 23Capitalised investment management andperformance fees - - - - (131) - - (131)Tax relief on costs charged to capital - - - - 42 - - 42Share redemptions (110) - (194) 110 - - - (194)Movement in unrealised appreciation - - - - - 744 - 744Revenue return - - - - - - 222 222Dividends - - - - - - (161) (161) ------- ------- ------- ------- ------- ------- ------- ------As at 31 December 2005 6,678 48 5,477 706 (941) 1,621 101 13,690 ------- ------- ------- ------- ------- ------- ------- ------ Net realised gains on investments inthe year - - - - 1 - - 1Capitalised investment management andperformance fees - - - - (127) - - (127)Tax relief on costs charged to capital - - - - 32 - - 32Share redemptions (157) - (278) 157 - - - (278)Movement in unrealised appreciation - - - - - (988) - (988)Revenue return - - - - - - 201 201Dividends - - - - - - (134) (134) ------- ------- ------- ------- ------- ------- ------- ------As at 30 June 2006 6,521 48 5,199 863 (1,036) 633 168 12,396 ------- ------- ------- ------- ------- ------- ------- ------ RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS for the year ended 30 June 2006 C Shares Called up Capital Realised Unrealised share Share Special redemption capital capital Revenue capital premium reserve reserve reserve reserve reserve Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 As at 1 July 2005 9,212 3,160 4,976 159 483 1,113 217 19,320Net realised gains on investments inthe period - - - - (104) - - (104)Capitalised investment management andperformance fees - - - - (72) - - (72)Tax relief on costs charged to capital - - - - 86 - - 86Share redemptions (61) - (112) 60 - - - (113)Movement in unrealised appreciation - - - - - 594 - 594Revenue return - - - - - - 335 335Dividends - - - - - - (314) (314) ------- ------- ------- ------- ------- ------- ------- -------As at 31 December 2005 9,151 3,160 4,864 219 393 1,707 238 19,732 ------- ------- ------- ------- ------- ------- ------- -------Net realised gains on investments inthe year - - - - - - - -Capitalised investment management andperformance fees - - - - (178) - - (178)Tax relief on costs charged to capital - - - - 41 - - 41Share redemptions (91) - (169) 91 - - - (169)Movement in unrealised appreciation - - - - - (422) - (422)Revenue return - - - - - - 304 304Dividends - - - - - - (277) (277) ------- ------- ------- ------- ------- ------- ------- -------As at 30 June 2006 9,060 3,160 4,695 310 254 1,285 266 19,030 ------- ------- ------- ------- ------- ------- ------- ------- Cash flow statement for the six months to 30 June 2006 Ordinary Shares ---------- --------- ------------ Unaudited Unaudited Audited Six months to Six months to Year ended 30 June 2006 30 June 2005 31 December 2005 £'000 £'000 £'000 ---------- --------- ------------Operating activitiesInvestment income received 182 122 253Deposit income received 68 70 144Other income received 3 - 6Investment management fees paid (181) (126) (453)Other cash payments (390) (79) (3) ---------- --------- ------------ Net cash (outflow)/inflowfrom operating activities (318) (13) (53) TaxationUK corporation tax paid - (148) (536) Capital expenditure and financial investmentPurchase of qualifying investments (760) (660) (1,595)Disposals of qualifying investments 27 2,388 2,405 ---------- --------- ------------ Net cash (outflow)/inflowfrom investing activities (733) 1,728 810 Equity dividends paidDividends paid on ordinary shares (134) (551) (713) ---------- --------- ------------ Net cash (outflow)/inflowbefore financing (1,185) 1,016 (492) FinancingCancellation of shares (278) (318) (513) ---------- --------- ------------ Net cash outflow from financing (278) (318) (513) ---------- --------- ------------ (Decrease)/increase in cash in the period (1,463) 698 (1,005) ========== ========= ============ Cash flow statement for the six months to 30 June 2006 C Shares ---------- ---------- ------------ Unaudited Unaudited Audited Six months to Six months to Year ended 30 June 2006 30 June 2005 31 December 2005 £'000 £'000 £'000 ---------- ---------- ------------ Operating activitiesInvestment income received 328 327 482Deposit income received 233 114 528Other income received - - 16Investment management fees paid (262) (175) (451)Other cash (payments)/receipts 301 (18) - ---------- ---------- ------------ Net cash inflow fromoperating activities 600 248 575 Taxation - - - Capital expenditure and financial investmentPurchase of qualifying investments (2,147) (1,685) (3,620)Purchase of non-qualifying investments (68) (92) (92)Disposals of qualifying investments - 2,316 2,340Disposals of non-qualifying investments 4,000 - - ---------- ---------- ------------ Net cash inflow/(outflow)from investing activities 1,785 539 (1,372) Equity dividends paidDividends paid on ordinary shares (277) (779) (1,093) ---------- ---------- ------------ Net cash inflow/(outflow) before financing 2,108 8 (1,890) FinancingCancellation of shares (167) (137) (248) ---------- ---------- ------------ Net cash outflow from financing (167) (137) (248) ---------- ---------- ------------ Increase/(decrease) in cash in the period 1,941 (129) (2,138) ========== ========== ============ Cash flow statement for the six months to 30 June 2006 Total ---------- --------- ------------ Unaudited Unaudited Audited Six months to Six months to Year ended 30 June 2006 30 June 2005 31 December 2005 £'000 £'000 £'000 ---------- --------- ------------Operating activitiesInvestment income received 510 449 735Deposit income received 301 184 672Other income received 3 - 22Investment management fees paid (443) (301) (904)Other cash payments (89) (97) (3) ---------- --------- ------------ Net cash inflow from operating activities 282 235 522 TaxationUK corporation tax paid - (148) (536) Capital expenditure and financial investmentPurchase of qualifying investments (2,907) (2,345) (5,215)Purchase of non-qualifying investments (68) (92) (92)Disposals of qualifying investments 27 4,704 4,745Disposals of non-qualifying investments 4,000 - - ---------- --------- ------------ Net cash inflow/(outflow) from investing activities 1,052 2,267 (562) Equity dividends paidDividends paid on ordinary and C shares (411) (1,330) (1,806) ---------- --------- ------------ Net cash inflow/(outflow) before financing 923 1,024 (2,382) FinancingCancellation of shares (445) (455) (761) ---------- --------- ------------ Net cash outflow from financing (445) (455) (761) ---------- --------- ------------ Increase/(decrease) in cash in the period 478 569 (3,143) ========== ========= ============ This information is provided by RNS The company news service from the London Stock Exchange