Albion Venture Regulatory News (AAVC)

14 Dec 2005 16:33

Close Brothers Venture Cap Tst PLC14 December 2005 Close Brothers Venture Capital Trust PLC Interim results for the six months to 30 September 2005 14 December 2005 Close Brothers Venture Capital Trust PLC ("the Company"), which invests inqualifying unquoted companies providing a high level of asset backing for thecapital value of the investment, today announces interim results for the six months ended 30 September 2005. Financial highlights The following is an analysis of dividends paid in respect of each class ofshares since their respective launches, together with net asset value. Ordinary shares 'C' shares(ii) Shareholder value created per share since (Pence) (Pence)launch(i): Gross revenue dividends paid during theyear ended 31 March 1997 2.00 -Gross revenue dividends paid during theyear ended 31 March 1998 5.20 2.00Gross interim dividends and net finaldividend paid during the year ended 31March 1999 11.05 8.75Net revenue and capital dividends paidduring the year ended 31 March 2000 3.00 2.70Net revenue and capital dividends paidduring the year ended 31 March 2001 8.55 4.80Net revenue and capital dividends paidduring the year ended 31 March 2002 7.60 7.60Net revenue and capital dividends paidduring the year ended 31 March 2003 7.70 7.70Net revenue and capital dividends paidduring the year ended 31 March 2004 8.20 8.20Net revenue and capital dividends paidduring the year ended 31 March 2005 9.75 9.75Net revenue and capital dividends paidduring the period ended 30 September2005 4.75 4.75 ---------- ---------Total dividends paid or declared to 30September 2005 67.80 56.25 Net asset value 117.61 117.61 ---------- ---------Total return to 30 September 2005 185.41 173.86 ---------- --------- (i)The change in presentation of the above table in comparison to prior periodsreflects the adoption of FRS 21 which requires only approved dividends to berecognised during each period. (ii)The 'C' Shares were raised in 1997 and were converted into Ordinary Shareson 31 May 2000. A capital dividend of 2.55 pence in the year to 31 March 2000enabled the Ordinary Shares and the 'C' Shares to merge on an equal basis.Note 1: following the cessation of tax credits on 5 April 1999, dividends paidby VCTs no longer benefit from tax credits for qualifying UKshareholders.Note 2: the above table does not take into account the income tax relief of 20%nor the capital gains tax deferral relief of 40% upon subscription for shares inthe Company. Notes to Editors: 1) Close Brothers Venture Capital Trust PLC is managed by Close VentureManagement Limited. 2) Close Venture Management Limited is regulated by the Financial ServicesAuthority. 3) The financial information set out in the announcement does notconstitute the Company's statutory accounts for the six months ended 30September 2005 and 2004. The financial information for the year ended 31 March2005 is derived from the statutory accounts delivered to the Registrar ofCompanies. This financial information has been restated in line with the changes in accounting policies set out in Note 1 to this announcement.The auditors reported on those accounts; their report was unqualifiedand did not contain a statement under s237 (2) or (3) of the Companies Act 1985. Chairman's statement During the 6 months to 30 September 2005, the Company made further strongprogress in replacing the investments successfully disposed of during theprevious financial year. A total of £2.0 million was invested or reserved forinvestment during the period in five new and one existing investee companies.The principal new investments were £350,000 into two freehold cinemas, in Exeterand Brixton, London with our partners City Screen Limited and £1 million in TheWeybridge Club Limited, with a further £150,000 reserved for investment, todevelop a health and fitness club on a 30 acre freehold site in Weybridge,Surrey. £460,000 was invested in three further pub companies building upfreehold portfolios in the South West, Central and North West England. The investment programme subsequent to the half year has continued, with afurther £3.6 million invested, including £2.5 million invested or reserved forinvestment in the Crown Hotel, Harrogate, which will undergo a majorrefurbishment. The performance of the portfolio overall continues to be encouraging, althoughin line with the market there has been a continued slow down in sales from ourresidential development companies. The performance of the Express by Holiday InnHotel at Stansted has been particularly strong, and the former Days Inn at theMailbox Centre in Birmingham has recently been rebranded as a Ramada. As a result of the disposal programme in the year to 31 March 2005, income hasfallen slightly with a result that revenue profits before tax were £1.43 millionas opposed to £1.46 million for the 6 months to 30 September 2004. Nevertheless,in line with the Company's progressive dividend policy, the Board has declared anet interim dividend of 4.5 pence per share (2004: 4.25 pence per share). The current financial period is the transition period for the introduction ofnew Financial Reporting Standards (FRS), which have been issued by theAccounting Standards Board to begin the process of converging UK standards withInternational Financial Reporting Standards. The main impact has been to changethe way that dividends and investments are recognised in the accounts. Thecomparative historic figures in this report have been restated to reflect theseaccounting changes. It is the Company's intention to declare a second interim dividend in March 2006payable in April 2006 in place of a final dividend for the year. Results and dividend As at 30 September 2005 the net asset value of the Company was £42.20 million or117.6 pence per share, which compares with a net asset value at 31 March 2005 of£43.29 million as restated (or £41.60 million as previously published) and 120.6pence per share as restated (or 115.9 pence per share as previously published).Net revenue income before taxation was £1.43 million (2004: £1.46 million). TheBoard has declared a first interim dividend of 4.5 pence per share, including1.5 pence out of realised capital reserves, for the six months to 30 September2005 (2004: 4.25 pence per share). The first interim dividend will be paid on 20January 2006 to shareholders registered on 23 December 2005. Portfolio of Investments A summary of the Company's investments at 30 September 2005 is set out below: Investment Cumulative Carrying/ at cost movement in fair value carrying 30 value September 2005Sector andinvestment £'000 £'000 £'000------------------------- -------- ----------- ---------- Hotels Kew Green VCT (Stansted) Limited 4,000 1,103 5,103Premier VCT (Mailbox) Limited 4,600 2,142 6,742The Bear Hungerford Limited 1,700 - 1,700The Place Sandwich VCT Limited 1,000 5 1,005 -------- ----------- ---------- Total investment in the hotel sector 11,300 3,250 14,550 -------- ----------- ---------- Care Homes Applecroft Care Home Limited 1,925 92 2,017Barleycroft Care Home Limited 2,275 19 2,294 -------- ----------- ---------- Total investment in the care home sector 4,200 111 4,311 -------- ----------- ---------- Leisure Churchill Taverns VCT Limited 180 1 181City Screen (Cambridge) Limited 1,210 297 1,507City Screen (Liverpool) Limited 200 (22) 178CS (Brixton) Limited 250 1 251CS (Exeter) Limited 100 - 100CS (Greenwich) Limited 900 - 900GB Pub Company Limited 180 1 181The Bold Pub Company Limited 1,390 57 1,447The Independent Beer Company Limited 150 3 153The Independent Pub Company (VCT) Limited 290 (46) 244The Weybridge Club Limited 1,000 8 1,008 -------- ----------- ---------- Total investment in the leisure sector 5,850 300 6,150 -------- ----------- ---------- Residential property development Chase Midland VCT Limited 1,600 - 1,600Country & Metropolitan VCT Limited 3,000 - 3,000Prime VCT Limited 2,200 (51) 2,149Youngs VCT Limited 1,200 - 1,200 -------- ---------- ---------- Total investment in the residentialproperty development sector 8,000 (51) 7,949 Total qualifying investments 29,350 3,610 32,960 -------- ---------- ---------- Non qualifying investments Premier VCT (Mailbox) Limited - Preference shares 2 - 2 -------- ---------- ---------- Total non-qualifying investments 2 - 2 -------- ---------- ----------Total investments 29,352 3,610 32,962 -------- ---------- ---------- Statement of total return (Unaudited) for the six months to 30 September 2005 Six months to Six months to Year ended 30 September 30 September 31 March 2005 2005 2004 (restated)* (restated)* Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 (Losses)/gainson investments - (87) (87) - 758 758 - 2,684 2,684 Investment income 1,639 - 1,639 1,693 - 1,693 3,384 - 3,384 Investment management fees (120) (361) (481) (97) (292) (389) (263) (788) (1,051) Administration expenses (86) - (86) (129) (129) (232) - (232)------------------------------------------------------------------------------------------------------------------------Return/(loss) on ordinaryactivities beforeinterest and tax 1,433 (448) 985 1,467 466 1,933 2,889 1,896 4,785 Finance charge - - - (5) (16) (21) (5) (16) (21)------------------------------------------------------------------------------------------------------------------------Return/(loss) on ordinaryactivities before tax 1,433 (448) 985 1,462 450 1,912 2,884 1,880 4,764 Tax (charge)/credit on ordinary activities (437) 67 (370) (422) 92 (330) (778) 241 (537)------------------------------------------------------------------------------------------------------------------------Return/(loss) attributableto shareholders 996 (381) 615 1,040 542 1,582 2,106 2,121 4,227 Amounts recognised asdistributions to equityshareholders in the period (1,059) (646) (1,705) (628) (1,345) (1,973) (1,632) (1,865) (3,497)------------------------------------------------------------------------------------------------------------------------Transfer (from)/to reserves (63) (1,027) (1,090) 412 (803) (391) 474 256 730------------------------------------------------------------------------------------------------------------------------Basic and diluted returnper share (pence) 2.8 (1.1) 1.7 2.9 1.5 4.4 5.9 5.9 11.8------------------------------------------------------------------------------------------------------------------------ *Comparative figures have been extracted from the unaudited interim accounts forthe period ended 30 September 2004 and the statutory accounts for the year ended31 March 2005 and have been restated in accordance with FRS 21 in respect ofdeclared dividends and FRS 26 in respect of accrued interest on loans andreceivables as disclosed in note 2. All revenue and capital items in the above statement derive from continuingoperations.No operations were acquired or discontinued during the period.The Company has no recognised gains or losses other than those disclosed above.Accordingly a statement of total recognised gains or losses is not required. Balance Sheet (Unaudited) As at 30 September 2005 30 September 2005 30 September 2004 31 March 2005 (Restated)* (Restated)* £'000 £'000 £'000 Fixed asset investments Qualifying investments 32,960 29,668 29,148Non-qualifying investments 2 62 2-----------------------------------------------------------------------------------------------------------------------Total fixed asset investments 32,962 29,730 29,150 Current assets Debtors and accrued income 33 226 194 Cash at bank and in hand 10,061 12,808 14,737----------------------------------------------------------------------------------------------------------------------- 10,094 13,034 14,931 Creditors: amounts due within one year (860) (601) (795)-----------------------------------------------------------------------------------------------------------------------Net current assets 9,234 12,433 14,136 Total assets less current liabilities 42,196 42,163 43,286----------------------------------------------------------------------------------------------------------------------- Capital and reserves Called up share capital 17,939 17,939 17,939 Special reserve 14,110 14,110 14,110 Capital redemption reserve 1,914 1,914 1,914 Capital reserves realised 3,184 3,674 4,124 unrealised 3,423 2,901 3,510 Revenue reserve 1,626 1,625 1,689-----------------------------------------------------------------------------------------------------------------------Total equity shareholders' funds 42,196 42,163 43,286-----------------------------------------------------------------------------------------------------------------------Net asset value (pence per share) 117.6 117.5 120.6----------------------------------------------------------------------------------------------------------------------- *Comparative figures have been extracted from the unaudited interim accounts forthe period ended 30 September 2004 and the statutory accounts for the year ended31 March 2005 and have been restated in accordance with FRS 21 in respect ofdeclared dividends and FRS 26 in respect of accrued interest on loans andreceivables as disclosed in note 2. Cash flow statement for the six months to 30 September 2005 Unaudited Unaudited Audited Six months to Six months to Year ended 30 September 2005 30 September 2004 31 March 2005 £'000 £'000 £'000 Operating activitiesInvestment income received 1,359 1,399 2,693Dividend income received 12 65 197Deposit interest received 260 190 433Other income received 2 12 13Investment management fees paid (627) (1,032) (1,284)Administrative expenses paid (138) (121) (218)----------------------------------------------------------------------------------------------------Net cash inflow from operating activities 868 513 1,834 Servicing of finance Finance interest - (31) (31) Taxation UK corporation tax paid (115) (355) (743)VAT repaid/(paid) 5 (32) (53) Capital expenditure and financial investmentPurchase of investments (3,785) (4,026) (7,683)Disposal of investments 55 13,977 20,125---------------------------------------------------------------------------------------------------- Net cash (outflow)/inflow frominvesting activities (3,730) 9,951 12,442 Equity dividends paidDividends paid on ordinary shares (1,704) (1,973) (3,497)---------------------------------------------------------------------------------------------------- Net cash(outflow)/inflow before financing (4,676) 8,073 9,952 Financing Repayment of loan facilities - (1,000) (950)-----------------------------------------------------------------------------------------------------Net cash outflow from financing - (1,000) (950)-----------------------------------------------------------------------------------------------------(Decrease)/increase in cash (4,676) 7,073 9,002----------------------------------------------------------------------------------------------------- Notes to the interim results 1. Accounting policies Change in accounting policies Accounting policies consistent with revised UK GAAP, and specifically withFinancial Reporting Standards (FRS) 21-26 which have been issued by theAccounting Standards Board to begin the process of converging UK standards withInternational Financial Reporting Standards ("IFRS"), have been applied witheffect from 1 April 2005. The effects of the relevant accounting policies aredisclosed in the respective notes below, and restatement of the comparativefigures are detailed in note 2. Investments In accordance with FRS 26, equity investments are designated as fair valuethrough profit or loss account (FVTPL). Investments listed on recognisedexchanges are stated at market value based upon the bid price at the end of theaccounting period. Unquoted investments' fair value is determined by thedirectors in accordance with the British Venture Capital Association (BVCA)guidelines. Movements in valuation of equity investments and gains and lossesarising on the disposal of investments are reflected in the capital column ofthe Statement of Total Return for the period. Loan stock is designated as loans and receivables in accordance with FRS 26 andvalued at amortised cost less impairments. Movements in the amortised costrelating to interest income are reflected in the revenue column of the Statementof Total Return and movements in respect of capital provisions are reflected inthe capital column of the Statement of Total Return for the period. Loan stockaccrued interest is recognised in the balance sheet as part of the carryingvalue of the loans and receivables at the end of each 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. It is not the Company's policy to exercise control or significantinfluence over investee companies. Therefore the results of these companies arenot incorporated into the revenue account except to the extent of any incomeaccrued. 2. Adjustment to revenue and realised capital reserves as at 31 March 2005 and30 September 2004 In accordance with FRS 21 "Events after the balance sheet date", comparativesfor revenue reserves at 31 March 2005 and 30 September 2004 have been restatedin recognition of a change in accounting policy. The effect of the above changes as at 31 March 2005 and 30 September 2004 is adecrease in the distribution liability as a result of the de-recognition ofproposed dividends thereon. A reconciliation of reserves incorporating the adjustments and restatementsrequired by the adoption of the FRS 21 is as follows: Reconciliation of revenue reserves 31 March 2005 30 September 2004 £'000 £'000 Revenue reserves previouslyreported at period end 630 621 Adjustment as required by adoption of FRS 21- change in recognition of dividends 1,059 1,004 -------- -------Restated revenue reserves at period end 1,689 1,625 ======== ======= Reconciliation of realised capital reserves 31 March 2005 30 September 2004 £'000 £'000 Realised capital reserves previouslyreported at period end 3,478 3,154 Adjustment as required by adoption of FRS 21- change in recognition of dividends 646 520 -------- -------Restated capital reserves at periodend 4,124 3,674 ======== ======= This information is provided by RNS The company news service from the London Stock Exchange