Albion. Dev Vct Regulatory News (AADV)

8 Apr 2005 15:20

Close Brothers Dev VCT PLC08 April 2005 For immediate release: 8 April 2005 CLOSE BROTHERS DEVELOPMENT VCT, CLOSE TECHNOLOGY & GENERAL VCT AND BAMBOO INVESTMENTS REALISE £8.7 MILLION ON DISPOSAL Close Brothers Development VCT ("CBDVCT"), Close Technology & General VCT ("CBT&GVCT) and Bamboo Investments Plc ("Bamboo"), all managed by Close VentureManagement ("CVM") announce the sale of their investment in Automotive Technik(Holdings) Limited ("Automotive") for a total consideration of £8.9m beforetransaction costs. This represents a return of 2.9 times the total amountinvested by the three funds since July 2002. Further consideration of a maximumof £0.6m is payable to the funds subject to certain conditions being met.Automotive, the British group that manufactures the Pinzgauer all-terrainvehicle, has been acquired by US Corporation, Stewart & Stevenson Services Inc. CBDVCT and CBT&GVCT invested £1.2m in Automotive in July 2002 to fund the set upof production of the Pinzgauer off-road vehicle in the UK. Since then Automotivehas grown its turnover from £3 million to £25 million and has becomesignificantly profitable. To fund this rapid growth, CBDVCT, CBT&GVCT and Bambooinvested a further £1.85m during 2003 and 2004. Alan Stanley, Chief Executive of Automotive commented: "In the past 3 yearsAutomotive has been transformed. It has grown from making six vehicles a monthwith 50 people to a leading off-road vehicle manufacturer making eight vehiclesa week, employing 130 people and achieving a significant amount of export sales.CVM has played a key part in this success, not only by providing the financialbacking but also by working closely with our management team on strategicissues. Our relationship with CVM is a clear example of how entrepreneurialbusinesses and venture capital providers can work in partnership to achievesignificant success." As a result of the sale, the preliminary unaudited net asset value of CBDVCT OrdShares, CBDVCT "C" Shares and CBT&GVCT at 31 March 2005 was 100.1 pence, 106.7pence and 120.2 pence per share respectively. Emil Gigov, Director of CVM, commented: "This is an outstanding return for ourinvestors and a tribute to the hard work of Automotive's management team overthe past 3 years." Jeremy Furniss and Jonathan Seal of Livingstone Guarantee LLP advised theshareholders of Automotive on the sale. For further information please visit www.closeventures.co.uk or contact: Emil Gigov - Director John WestPatrick Reeve - Managing Director Clemmie CarrClose Venture Management Tavistock CommunicationsTel: 020 7422 7830 Tel: 020 7920 3150 Notes to Editors Close Venture Management CVM is one of the most successful and longest established Venture Capital Trust(VCT) managers. It was formed in 1996 and currently manages a portfolio of fiveVCTs which have to date raised a total of £160 million from private investors. In addition, CVM advises the Healthcare & Leisure Property Fund, an Isle ofMan-based open-ended investment company participating in asset-based investmentsmade by its VCTs as well as acting as investment manager to Bamboo Investmentsplc, an investment company specialising in early stage, high growth businesses,principally in the technology sector. Close Venture Management is one of the largest VCT managers and concentrates itsinvestment strategy on lower investment risk and higher dividend yield. VCTs under management: Close Brothers Venture Capital Trust PLC invests in a broad range of unquotedasset-backed businesses in the hotel, care home, residential propertydevelopment, health and fitness and cinema sectors. It is aimed at providinginvestors with a lower risk investment profile whilst at the same timegenerating a strong dividend yield. Close Brothers Protected VCT PLC is similarly aimed at providing investors witha lower risk investment opportunity in a portfolio of asset-backed businesses. Close Brothers Development VCT PLC provides equity and debt finance to growingunquoted companies across a variety of sectors, with investments ranging fromtechnology-orientated to service and asset-backed businesses. Close Technology & General VCT PLC offers investors the opportunity toparticipate in a balanced portfolio of technology and non-technology businesses. Close Income & Growth VCT PLC aims to provide investors with a regular andpredictable source of income combined with the prospect of potential longer-termcapital growth. The Income & Growth VCT intends to invest funds raised in amixture of lower risk, ungeared, property-based businesses with a further 10%allocated to engineering and technology spin-outs from Brunel University and thebalance of the net funds will be invested in high growth businesses across avariety of sectors in the UK economy. Close Brothers was voted VCT Group of the Year in the Growth Company Awards 2003and Best VCT Provider at the Professional Adviser Awards 2005. CVM is a member of Close Brothers Group plc and is authorised and regulated bythe Financial Services Authority. This information is provided by RNS The company news service from the London Stock Exchange