Albion. Tch Vct Regulatory News (AATG)

13 Apr 2006 15:00

Close Technology & General VCT PLC13 April 2006 CLOSE TECHNOLOGY & GENERAL VCT PLC PRELIMINARY RESULTS 13 April 2006 Close Technology & General VCT PLC ("the Company"), which offers investors theopportunity to participate in a balanced portfolio of technology andnon-technology businesses, today announces preliminary results for the yearended 31 December 2005. This announcement has been approved by the Board ofDirectors on 13 April 2006. Year ended 31 December 2005 Dividends paid per Ordinary share (pence) 9.00 Net asset value per Ordinary share (pence) 120.6 Pence per Ordinary share (ii)Ordinary shareholder value created per share since launch: Total dividends paid during the year ended 31December 2001 (i) 1.00Total dividends paid during the year ended 31December 2002 2.00Total dividends paid during the year ended 31December 2003 1.50Total dividends paid during the year ended 31December 2004 7.50Total dividends paid during the year ended 31December 2005 9.00 -------------Total dividends paid to 31 December 2005 21.00 Net asset value at 31 December 2005 120.6----------------------------------- ------------- Total return to 31 December 2005 141.6----------------------------------- ------------- Notes (i) Based on subscription by the first closing on 16 January 2001. Investors subscribing thereafter, up to 30 June 2001 received 0.5 penceper share. (ii) Excludes tax benefits upon subscription. For further information, please contact: Patrick Reeve Clemmie Carr / John WestClose Venture Management Limited Tavistock CommunicationsTel: 020 7422 7830 Tel: 020 7920 3150 Notes 1) Close Technology & General VCT PLC is managed by Close Venture Management Limited. 2) Close Venture Management Limited is authorised and regulated by the FinancialServices Authority. 3) The financial information set out in this announcement does not constitute the Company's statutory accounts for the years ended 31 December 2005 or 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 innote 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 arisingfrom capital transactions 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 with International Financial Reporting Standards ("IFRS"). Inthe case of FRS 25 and 26, the Company applied the exemption from restating 2004comparative figures on transition at 1 January 2005. The effects of the relevantaccounting policies are disclosed in the respective notes below, restatementand 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 ("FVTPL"). Thetotal 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 arereflected in the revenue column of the Statement of Total Return and movementsin respect of capital provisions are reflected in the capital column of theStatement of Total Return. Loan stock accrued interest is recognised in theBalance Sheet as part of the carrying value of loans and receivables at the endof each 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 FRS 26, theopening balances for revenue and unrealised capital reserves at 1 January 2005in relation to the carrying values of loans and receivables and equityinvestment valuations have been adjusted to reflect the impact of the adoptionof FRS 26. The adoption of FRS 26 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 adecrease in the revenue reserve as at 1 January 2005 as a result of theadjustment to the treatment of loan stock investment now held at amortised costas determined by the EIR method. Dividends In accordance with FRS 21 "Events after the balance sheet date", dividendsdeclared by the Company are accounted for in the period in which the dividendhas been approved. Comparatives for revenue reserves at 31 December 2004 havebeen restated in recognition of a change in accounting policy. The adoption ofFRS 21 has resulted in a decrease in the distribution liability as a result ofthe de-recognition of proposed dividends thereon and an increase in the revenuereserves as at 31 December 2004. A reconciliation of reserves incorporating the restatements and adjustmentsrequired by the adoption of FRS 21 and FRS 26 is illustrated below: Reconciliation of revenue reserves £'000 Revenue reserves previously reported at 31 December 2004 147Restatement as required by adoption of FRS 21 - change in accounting for dividends 139 --------Restated revenue reserves at 31 December 2004 286 Adjustment as required by adoption of FRS 26 - change in valuation of loan stock investments to amortised cost (60) using the EIR method --------Revenue reserves as at 1 January 2005 as adjusted 226 ======== Reconciliation of unrealised capital reserves £'000 Unrealised capital reserves previously reported at 31 December2004 (637) Adjustment as required by adoption of FRS 26 - change in valuation of quoted investments to bid price (111) --------Unrealised capital reserves as at 1 January 2005 as adjusted (748) ======== The restatements and adjustments to reserves at 31 December 2004 and 1 January2005 as described in note 5 above are noted in the reconciliation of reserves asfollows: Capital Realised Share Special redemption capital Unrealised Revenue premium reserve reserve reserve capital reserve £'000 £'000 £'000 £'000 £'000 £'000 --------------------- ------ ------ ------- ------- ------- ------- At 31 December2004 165 5,894 237 2,722 (637) 147FRS 21 prioryearadjustment 139 ------ ------ ------- ------- ------- -------Restatedopeningreserves as at31 December2004 165 5,894 237 2,722 (637) 286Adjustment tobalances as at1 January 2005for FRS 26 (111) (60) ------ ------ ------- ------- ------- -------Adjustedopeningreserves at 1January 2005 165 5,894 237 2,722 (748) 226 Cancellationof shares - (109) 50 - - -Capitalisedfees andexpenses - - - (381) - -Tax effect ofcapitalisedfees andexpenses - - - 105 - -Realised gainson investments - - - 2,767 - -Commission onpurchase/disposal - - - (112) - -Foreignexchange - - - 36 - -Increase inunrealisedappreciation - - - - (279) -Distributions - - - (829) - (415)Retained netrevenue - - - - - 425 --------------------- ------ ------ ------- ------- ------- ------- At 31 December 2005 165 5,785 287 4,311 (1,027) 235--------------------- ------ ------ ------- ------- ------- ------- With the exception of the revised accounting policies as described in note 5above, this announcement has been prepared on the basis of the accountingpolicies as stated in the previous years' financial statements. CHAIRMAN'S STATEMENT Introduction I am delighted once again to report a further year of excellent performance foryour Company. The total return per share was 18.5 pence, compared to 9.8 pencefor the previous financial year, while net asset value rose from 112.3 pence pershare (restated) to 120.6 pence. This means that for every £1 invested byshareholders on flotation, ignoring any tax reliefs, shareholders have received141.6 pence in value, of which 21 pence has been paid in the form of dividends. Investment progress As reported at the interim stage, two attractive sales of investments wereachieved. The first was in the disposal of Automotive Technik, a manufacturer ofmilitary vehicles, which realised a profit of £2.05 million and the second wasin the sale of Cassium Technologies, a software services provider, where profitof £790,000 was realised. The main new investments on the technology side of the portfolio were made inXceleron (£500,000), a spin-out from York University which provides analysisservices to the pharmaceutical industry, and Lowcosttravelgroup (£120,000), afast-growing provider of internet travel services. On the non-technology side of the portfolio, new investments included a further£667,000 in Q Gardens, which secured the VCT a first charge over the 7 acrefreehold garden centre in Fareham, £500,000 in Weybridge Limited, which isdeveloping a health and fitness club on a 30 acre freehold site in Weybridge,Grosvenor Health (£100,000) to fund an acquisition by this successful providerof occupational healthcare, City Screen (Brixton) and City Screen (Exeter)(£210,000) to purchase these two freehold art-house cinemas, and Tower BridgeHealth Clubs (£170,000) to develop a new health and fitness club on the Thamesnext to Tower Bridge. In addition, a further £560,000 was invested in sixseparate companies owning and operating freehold pubs around the UK. Overall, the portfolio is performing well with particular uplifts in valuationsin Peakdale Molecular, Grosvenor Health, and Evolutions Television, offset inpart by declines in the holding values of sparesFinder, Q Gardens, and of someAIM quoted investments (primarily Tepnel Life Sciences and Portrait Software). New C Share issue A new issue of C Shares, to be invested alongside the current issue of Ordinaryshares, has successfully raised £35.5 million and closed before its finalclosing date of 4 April 2006. The investment programme has now begun withinvestments, alongside the Ordinary Shares, in RFI Global Services whichprovides testing services to mobile phone manufacturers worldwide, EvolutionsTelevision, to support an acquisition, and Blackbay, a provider of software formobile field services. Dividend and prospects Overall, we continue to be encouraged by the progress of the portfolio and theprospects of the Company look promising for the year ahead. As already indicated, it is intended that, as far as practicable, and if theCompany's performance permits, the Company will pay a total dividend of 8 penceper share per annum for future periods in respect of the Ordinary Shares.Following the introduction of the revised financial reporting standards and theresulting changes to the way dividends are recognised in the accounts, Ordinaryshareholders received an extra dividend of 4 pence per share on 4 November 2005.The first dividend for the current financial year will also be 4 pence perOrdinary Share payable out of capital profits and will be paid on 26 May 2006 tothose shareholders on the register on 28 April 2006. The first dividend inrespect of the new C Shares will be declared in September 2006 and paid inNovember 2006. Dr Neil Cross Chairman 13 April 2006 Statement of Total Return (incorporating the Revenue Account) Year ended 31 December 2005 Year ended 31 December 2004 (Restated)* Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 ---------------------- ------- ------- ------- --- ------ ------ ------- Gains oninvestments - 2,412 2,412 - 1,274 1,274Investmentincome 812 - 812 670 - 670Investmentmanagementfees (126) (381) (507) (104) (312) (416)Other expenses (128) - (128) (126) - (126)---------------------- ------- ------- ------- --- ------ ------ ------- Return onordinaryactivitiesbefore tax 558 2,031 2,589 440 962 1,402Tax onordinaryactivities (133) 105 (28) (101) 78 (23)---------------------- ------- ------- ------- --- ------ ------ ------- Returnattributableto shareholders 425 2,136 2,561 339 1,040 1,379Dividends (415) (829) (1,244) (353) (699) (1,052)---------------------- ------- ------- ------- --- ------ ------ ------- Transferto/(from) reserves 10 1,307 1,317 (14) 341 327---------------------- ------- ------- ------- --- ------ ------ ------- Basic anddiluted returnper share (pence) 3.1 15.4 18.5 2.4 7.4 9.8---------------------- ------- ------- ------- --- ------ ------ ------- *Comparative figures have been restated in accordance with FRS 21 in respect ofdividends as disclosed in note 5 to this announcement. The total column of this Statement of Total Return represents the profit andloss account of the Company in accordance with FRS 26. There are no recognised gains and losses other than the results for either yeardisclosed above. Accordingly a statement of total recognised gains and losses isnot required. Balance Sheet 31 December 31 December 2005 2004 (Restated)* £'000 £'000 ----------- --------------- Fixed asset investmentsQualifying 10,438 9,534Non-qualifying 1,847 1,328 ----------- ---------------Total fixed asset investments 12,285 10,862 Current AssetsDebtors 45 61Cash at bank 4,754 4,819 ----------- -------------- 4,799 4,880 Creditors: amounts falling duewithin one year (420) (117) ----------- --------------Net current assets 4,379 4,763 ----------- -------------- Total assets less current 16,664 15,625liabilities ----------- -------------- Capital and reservesCalled up share capital 6,908 6,958Share premium 165 165Special reserve 5,785 5,894Capital redemption reserve 287 237Realised capital reserve 4,311 2,722Unrealised capital reserve (1,027) (637)Revenue reserve 235 286----------------------- ----------- -------------- Total equity shareholders' funds 16,664 15,625----------------------- ----------- -------------- Net asset value per share (pence) 120.6 112.3----------------------- ----------- -------------- *Comparative figures have been restated in accordance with FRS 21 in respect of dividends as disclosed in note 5 to this announcement. Cash Flow Statement Year ended Year ended 31 December 31 December 2005 2004 £'000 £'000 ----------- ------------ Operating activitiesInvestment income received 614 593Deposit interest received 112 50Other cash receipt 174 -Investment management fees paid (389) (480)Other cash payments (136) (119) ----------- ------------ Net cash inflow from operatingactivities 375 44 TaxationUK corporation tax paid (25) (8) Capital expenditure and financial investmentsPurchase of qualifying investments (3,524) (2,645)Purchase of non-qualifyinginvestments (1,075) (314)Disposals of qualifying investments 4,616 7,067Disposals of non-qualifyinginvestments 1,016 568Cost of disposals (95) - ----------- ------------ Net cash inflow from investingactivities 938 4,676 Equity dividends paidDividends paid on ordinary shares (1,244) (1,052) ----------- ------------ Net cash inflow before financing 44 3,660 ----------- ------------ FinancingCancellation of share capital (109) (351) ----------- ------------Net cash outflow from financing (109) (351) ----------- ------------Cash (outflow)/inflow in the year (65) 3,309 ----------- ------------ This information is provided by RNS The company news service from the London Stock Exchange