Crown Place Regulatory News (CRWN)

29 Mar 2007 14:43

Crown Place VCT PLC29 March 2007 29 March 2007 CROWN PLACE VCT PLC Preliminary announcement of final results for the ten months ended 31 December2006. Crown Place VCT PLC ("the Company"), managed by Close Ventures Limited, todayannounces the preliminary results for the ten months ended 31 December 2006. Theannouncement has been approved by the Board of Directors on 29 March 2007. Financial Highlights Shareholder value since launch Previous holders of shares in: Proforma (i) Murray Proforma (i) Crown Place VCT PLC Murray VCT 2 PLC VCT PLC *Dividends per share paid to 31 December 2006 32.25 31.91 27.18(pence per share) (ii) Net asset value (pence per share) as at 31 31.49 37.65 44.25December 2006 (i) 63.74 69.56 71.43 (i) The proforma shareholder value is based on the dividends paid to 31December 2006 per share, with a pro-rata net asset value per share based uponthe proportion of shares received by Murray VCT PLC (now renamed CP1 VCT PLC)and Murray VCT 2 PLC (now renamed CP2 VCT PLC) shareholders at the time of themerger. (ii) Prior to 6 April 1999, venture capital trusts were able to add 20%to dividends, and figures for the period until 6 April 1999 are included at thegross equivalent rate actually paid to shareholders. * Formerly Murray VCT 3 PLC In addition to the dividends paid above, the Company paid a second dividend forthe period to 30 June 2007 of 1.25 pence per Crown Place VCT PLC share (0.8pence to be paid out of revenue profits and 0.45 pence out of realised capitalgains) on 19 January 2007. The Directors have also declared a third dividend outof realised capital gains of 0.8 pence per Crown Place VCT PLC share, subject toapproval from HM Revenue & Customs. The record date and payment date for thisdividend will be announced on the London Stock Exchange RNS Service. For further information, please contact: Patrick Reeve/ Emil Gigov Roddi Vaughan-ThomasClose Ventures Limited Peregrine Communications GroupTel: 020 7422 7830 Tel: 020 7223 1552 www.closeventures.co.uk Chairman's statementOverview This is the second interim report of the Company for the sixteen month period to30 June 2007; this report reflects the results for the ten month period to 31December 2006. During this period the Company's net asset value increased from43.0 pence per share to 44.3 pence per share. The Company paid a dividend of1.25p per share in September 2006 and therefore, the total shareholder valuecreated in the period, including dividends paid was 2.55 pence per share. Thisrepresents a return on net asset value of 5.9% in the ten month period. Looking at the performance in the four months since the interim report to 31August 2006, the Company's net asset value increased by 0.3 pence per share to44.3 pence per share. Together with the first dividend of 1.25 pence per sharepaid on 22 September 2006, shareholder value increased by 1.55p in the period,which the Board considers to be a reasonable result. The sustainability of the underlying investment income, and thus revenueprofits, continues to improve as older, underperforming investments have beensold, the health of the remaining older legacy investments has improved, and newincome yielding investments have been made. This is in line with the Company'sstrategy to focus on income generating investments which support the payment offuture dividends to shareholders. Following the period end, a second dividend of1.25p was paid to shareholders on 19 January 2007, bringing the total dividendsince 28 February 2006 to 2.5 pence per share. As reported earlier the Company's accounting year end is 30 June and the nextperiod end will be 30 June 2007. Portfolio review The value of the investment portfolio, taking into account the disposals made,has increased in the four month period since the interim report to 31 August2006. The AIM quoted investments appreciated well and in particular, the priceof Tanfield Group Plc performed strongly. The unquoted portfolio showed modestoverall gains. House of Dorchester Limited continued to trade well and this isreflected in the valuation. The investment in Tower Bridge Health Clubs Limitedalso appreciated, as evidenced by an independent valuation report. Againstthis, we have reduced the valuation of ELE Advanced Technologies Limited, whichhas experienced some trading volatility. New investments During the four month period from 1 September 2006 to 31 December 2006 theCompany made two new investments totalling £410,000. An investment of £210,000was made in Helveta Limited, a company enabling sustainable forestry managementof the world's tropical hardwood resources through the provision of seamlesstraceability, improved production efficiency and compliance checking acrossextended supply chains (www.helveta.com). The company is trading in line withour expectations. An investment of £200,000 was made in Xceleron Limited, whichprovides services to the global drug development industry using thenanotechnology of its accelerator mass spectrometer (www.xceleron.co.uk). Otherfunds managed by Close Ventures Limited first invested in Xceleron Limited inApril 2005 and this funding round will allow the company to step up itsexpansion. The company's trading performance continues to exceed originalexpectations. Following the period end Crown Place VCT PLC invested a total of £2,250,000 infour companies. Chichester Holdings Limited is a management buy-out of a wellestablished drinks distribution business; West Kensington Health Clubs Limitedis a new freehold health and fitness club development in Olympia, London;Premier Leisure Suffolk Limited is a freehold family entertainment centre inIpswich; Rostima Limited is an early-stage enterprise software companyproviding labour management solutions to a range of industries(www.rostima.com). The investment pipeline continues to be strong. Disposals During the period from 1 September to 31 December 2006, the Company sold itsinvestment in Heathcote Restaurants Limited, realising proceeds of £747,000.Inhoco 3426 Limited repaid £275,000 being the first tranche of deferredconsideration following the sale of the company in 2005, while Clamonta Limitedrepaid the entire outstanding consideration of £160,000. The Company alsoreduced its holding in Tanfield Group Plc realising a profit of £102,000 onproceeds of £224,000. Dividends The first dividend of 1.25p was paid on 22 September 2006. A second dividend of1.25p was paid to shareholders on 19 January 2007. A third dividend of 0.8 penceper share will, subject to HM Revenue & Customs approval, be paid in the springof 2007, bringing the total dividend for the period ending 30 June 2007 to 3.3pence per share. The record date and payment date of this dividend will beannounced on the London Stock Exchange RNS service. Chairman's statement (continued) Buy back policy It is the Company's policy to continue to buy back shares in the market, subjectto the overall constraint of ensuring that such purchases are in the Company'sinterest, including the maintenance of sufficient resources for investment inexisting and new investee companies. This policy provides liquidity for the shares and enables the share price discount to net asset value to be narrowed, and thus is to the benefit of shareholders as a whole. During the period from 1 September 2006 to 31 December 2006 the Company bought back 787,757 Ordinary shares at an average price of 39 pence per share. These shares are held in Treasury and may be re-issued at a later date. The total number of Ordinary Shares held in Treasury at the period end was 7,260,410, representing 8.4% of issued share capital. Outlook The investment portfolio continues to perform in line with expectations. Thenumber of investments which provide an income return to the Company isincreasing, which bodes well for the future ability of the Company toconsistently pay dividends to shareholders. Overall, the Board continues to bepositive about the future prospects of the Company. Patrick Crosthwaite Chairman 29 March 2007 Consolidated Income Statement for the ten months ended 31 December 2006 Unaudited Audited Unaudited Ten months to 31 December Year to 28 February 2006 Ten months to 31 December 2005 2006 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Investment income and 1,644 - 1,644 1,073 - 1,073 1,119 - 1,119deposit interest Investment management (150) (450) (600) (160) (481) (641) (69) (207) (276)fees Other expenses (355) 23 (332) (351) (955) (1,306) (316) (316) -Non-recurring operatingexpenses (4) - (4) (749) - (749) (1,562) (1,562) Operating profit/(loss) 1,135 (427) 708 (187) (1,436) (1,623) (828) (207) (1,035) Profit on investments - 1,158 1,158 - 2,504 2,504 - 926 926 Profit/(loss) before 1,135 731 1,866 (187) 1,068 881 (828) 719 (109)taxation Taxation (135) 135 - 42 - 42 - - - Profit/(loss) for the 1,000 866 1,866 (145) 1,068 923 (828) 719 (109)period Basic and diluted return/(loss) perOrdinary share (pence)(excluding treasuryshares) 2.32 2.03 (0.27) The total column of this statement represents the Group's income statement,prepared in accordance with International Financial Reporting Standards ('IFRS'). The supplementary revenue and capital reserve columns are prepared underguidance published by the Association of Investment Companies. The consolidated income statement includes the results of the subsidiaries CP1VCT PLC and CP2 VCT PLC following the acquisition. The (loss)/profit for the ten months to 31 December 2005 was for the Company,prior to the acquisition of CP1 VCT PLC and CP2 VCT PLC. The (loss)/profit forthe year ended 28 February 2006 includes results from the subsidiaries CP1 VCTPLC and CP2 VCT PLC from the date of the acquisition on 13 January 2006. Consolidated Balance Sheet as at 31 December 2006 Unaudited Audited 31 December 2006 28 February 2006 £'000 £'000Non-current assetsInvestments 27,335 30,969 Current assetsTrade and other receivables 86 1,496Cash and cash equivalents 8,102 4,846 8,188 6,342 Total assets 35,523 37,311 Current liabilitiesTrade and other payables (381) (694) Total assets less current liabilities 35,142 36,617 Non-current liabilitiesProvision for bank guarantees (256) (1,662) Total liabilities (637) (2,356) Net assets 34,886 34,955 Equity attributable to equityholdersOrdinary share capital 8,610 8,610Share premium 14,422 14,422Capital redemption reserve 250 250Own shares held (2,848) (1,908)Retained earnings 14,452 13,581 Total shareholders' funds 34,886 34,955 Net asset value per Ordinary share (excluding treasury shares)(pence) 44.3 43.0 The consolidated balance sheets as at 31 December 2006 and 28 February 2006include the results of the subsidiaries CP1 VCT PLC and CP2 VCT PLC from thedate of the acquisition on 13 January 2006. Company Balance Sheet as at 31 December 2006 Unaudited Audited 31 December 2006 28 February 2006 £'000 £'000Fixed assetsFixed asset investments 27,335 30,969Investment in subsidiary undertakings 17,883 17,506 45,218 48,475Current assetsDebtors 72 806Cash at bank 3,327 1,327 3,399 2,133 Total assets 48,617 50,608 Creditors: amounts falling due within one year (13,675) (15,066) Total assets less current liabilities 34,942 35,542 Provision for bank guarantees (56) (587) Total liabilities (13,731) (15,653) Net assets 34,886 34,955 Capital and reservesCalled up share capital 8,610 8,610Share premium 14,422 14,422Capital redemption reserve 250 250Own shares held (2,848) (1,908)Retained earnings 14,452 13,581 Total shareholders' funds 34,886 34,955 Net asset value per Ordinary share (excludingtreasury shares) (pence) 44.3 43.0 The Company Balance sheet has been prepared in accordance with UK GAAP. Consolidated Statement of Changes in Equity for the ten months ended 31 December 2006 (unaudited) Ordinary Capital Own share Share Revaluation redemption shares Retained capital premium reserve reserve held earnings Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 As at 28 February 2006 8,610 14,422 - 250 (1,908) 13,581 34,955 Net profit for the period - - - - - 1,866 1,866 Cost of ordinary shares purchased - - - - (940) - (940) Dividends paid in period - - - - - (995) (995) As at 31 December 2006 8,610 14,422 - 250 (2,848) 14,452 34,886 As at 28 February 2005 (restated) 3,995 - (15,287) 250 - 28,389 17,347 Adjustment in respect of IAS 39 - - - - - (17) (17) Reclassification of revaluationreserve - - 15,287 - - (15,287) - 3,995 - - 250 - 13,085 17,330 Net profit for the period - - - - - (109) (109) Dividends paid in period - - - - - (400) (400) As at 31 December 2005 3,995 - - 250 - 12,576 16,821 As at 28 February 2005 (restated) 3,995 - (15,287) 250 - 28,389 17,347 Adjustment in respect of IAS 39 - - - - - (17) (17) Revised adjustment in respect ofIAS 39 - - - - - (27) (27) Reclassification of revaluationreserve - - 15,287 - - (15,287) - As at 1 March 2005 (restated and adjusted) 3,995 - - 250 - 13,058 17,303 Net profit for the year - - - - - 923 923 Cost of ordinary shares purchased - - - - (1,908) - (1,908) Shares issued in year 4,615 14,422 - - - - 19,037 Dividends paid in year - - - - - (400) (400) As at 28 February 2006 8,610 14,422 - 250 (1,908) 13,581 34,955 Consolidated Cash Flow Statement for the ten months to 31 December 2006 Unaudited Audited Unaudited Ten months to Year to Ten months to 31 December 2006 28 February 2006 31 December 2005 £'000 £'000 £'000Cash flows from operating activitiesInvestment income received 1,472 1,087 814Deposit interest received 167 30 21Secretarial fees paid (51) (91) (58)Investment management fees paid (825) (694) (334)Other cash payments (469) (1,324) (1,223) Cash generated/(expended) from operations 294 (992) (780) 1,431 Tax recovered 90 78 Net cash flows from/(used in) operating 1,725 (902) (702)activites Cash flows from investing activitiesPurchases of investments (2,507) (2,169) (1,739)Disposals of investments 7,413 6,349 6,555Payment to solicitors re loan guarantee (1,406) - - Net cash flows from investing activities 3,500 4,180 4,816 Cash flows from financing activitiesEquity dividends paid (995) (400) (400)Cash acquired from subsidiaries at date - 3,791 -of acquisition Repurchase of Ordinary shares - (140) (140) Purchase of Ordinary shares for treasury (974) (1,897) - Net cash flows (used in)/from financing (1,969) 1,354 (540)activities Increase in cash and cash equivalents 3,256 4,632 3,574 Cash and cash equivalents at start of 4,846 214 214period Cash and cash equivalents at end of 8,102 4,846 3,788period The consolidated cash flow statements for the ten months ended 31 December 2006and the year ended 28 February 2006 include the transactions of the subsidiariesCP1 VCT PLC and CP2 VCT PLC from the date of the acquisition on 13 January 2006. The cash flow statement for the ten months ended 31 December 2005 was for theCompany prior to the acquisition of CP1 VCT PLC and CP2 VCT PLC. Notes to the announcement 1. Details about the Investment Manager Crown Place VCT PLC is managed by Close Ventures Limited. Close Ventures Limitedis a subsidiary of Close Brothers Group plc and is authorised and regulated bythe Financial Services Authority. 2. Statutory accounts The financial information set out in the announcement does not constitute theCompany's statutory accounts for the periods ended 31 December 2006 or 31December 2005, as defined in Section 240 of the Companies Act 1985. Statutoryaccounts for the year ended 28 February 2006 have been delivered to theRegistrar of Companies. The Auditors have reported on those accounts; theirreport was unqualified and did not contain statements under section 237(2) or(3) of the Companies Act 1985. Whilst the financial information included in this preliminary announcement hasbeen computed in accordance with International Financial Reporting Standards(IFRSs), this announcement does not itself contain sufficient information tocomply with IFRSs. The Company expects to publish full financial statementsthat comply with IFRSs within the next two weeks. 3. Accounting policies The accounts have been prepared on the basis of the accounting policies set outin the latest annual report for the year ended 28 February 2006. 4. Basic and diluted return per share Return per share has been calculated on 80,268,569 Ordinary shares being theweighted average number of shares in issue in the period (excluding Treasuryshares). There are no convertible instruments, derivatives or contingent share agreementsin issue for the Company hence there are no dilution effects to the return pershare. The basic return per share is therefore the same as the diluted returnper share. 5. Net asset value The net asset value per share is based on net assets of £34,886,000 and on78,839,463 Ordinary shares being the number of Ordinary shares in issue(excluding Treasury shares) at the period end. This information is provided by RNS The company news service from the London Stock Exchange