Maven I&g 4 Regulatory News (MAV4)

28 Feb 2008 16:36

Aberdeen Grwth Opp VCT2 PLC28 February 2008 Aberdeen Growth Opportunities VCT 2 PLC Preliminary Announcement I am pleased to report on a year of further consolidation and progress for yourcompany. Among the highlights are: • £5m raised in the S Share issue • Qualifying threshold of 70% achieved in Ordinary Share Pool • Total Return on Ordinary shares stable at 112.9p per share (pps) at year end, fractionally down 1.1% over the year • NAV of Ordinary shares at year end of 104.9pps • NAV of S shares 97.2pps at year end up from 95.0p immediately after launch, an increase of 2.3% • Strong level of new investment activity; 12 new private equity investments completed for Ordinary Share pool, 9 for S share • One successful exit from an unlisted company during the year generating a gain of 3.2p per Ordinary share • Net realised gains from AIM stocks of 1.5p per Ordinary share for the year • Dividends proposed of 1.5p per Ordinary share and 1.25p per S Share S Share issue The Company successfully raised £5 million in the S Share issue, increasing thesize of the overall capital base by approximately 60% without a correspondingincrease in costs. This means that the cost base will be defrayed over a largerfund size thereby improving the efficiency of the Company. VCT Qualifying Status I am also pleased to report that during the year the Company achieved the 70%qualifying investment hurdle which it was required to do to maintain approval asa VCT. The Company must continue to exceed the threshold at all times in thefuture subject to certain exemptions in particular circumstances. The Manageris well placed through its regional network of offices to provide a suitableflow of quality investment opportunities to ensure that actual investment levelsallow your company to significantly exceed this minimum level. Performance The Total Return per Ordinary Share at 31 December 2007 was 112.9pps, a decreaseof 1.1% over the equivalent figure at December 2006, while for the S Share poolit was 97.2pps compared with 95.0pps immediately after launch, an increase of2.3%. The full year position of the Ordinary share has fallen back from theadvance achieved at the half year due to a reduction in the value of the AIMportfolio, which largely reflects the 13.7% decline in the AIM market in thesecond half of the year. The Net Asset Value (NAV) per Ordinary share at 31 December 2007, before paymentof a dividend in respect of the year then ended, was 104.9p compared with 112.2pat 31 December 2006; however dividends totalling 6.0p had been paid during theyear which effectively reduced the opening NAV by that amount. The NAV per S Share at 31 December 2007 was 97.2p which has increased by 2.2psince deduction of the launch expenses. The effect of paying the proposed dividends of 1.5p per share on the Originalpool and 1.25p on the S Shares will be to reduce the NAVs to 103.4p and 95.95prespectively. The most important measure for a VCT is the total return being thelong term record of revenue and capital gains dividend payments plus the currentNAV. In the short term, the NAV on its own is a less important measure of theperformance as the underlying investments are long-term in nature and notreadily realisable. Dividend policy It was stated in the Company's Prospectus that in the early years dividends, ifany, would be small until such times as capital realisations occurred. Due tothe exceptional gains achieved in 2006, the Board declared dividends on theOrdinary shares totalling 6.0p which were paid during 2007. The Board is nowrecommending the payment of a final dividend of 1.5p per Ordinary share and1.25p per S Share, both to be paid on 30 April 2008 to shareholders on theregister on 28 March 2008. The Board intends to pay regular dividends from realised gains and hopes thatthe level of payment will be increased over time but this cannot be guaranteed.All dividends are of course paid tax free to shareholders and a net dividend of6.0p is equivalent to a yield of 10.0% to a higher rate taxpayer; if the initialtax relief of 40% is taken into account the effective annual yield rises to16.7%. Since the Company's launch, Ordinary shareholders will have received 9.5pper share in tax free dividends after receipt of the final dividend. Investment Strategy The strategy for both the Ordinary share pool and the S Share pool remains tobuild a diversified portfolio of unlisted and AIM investments which offerexcellent growth prospects and therefore the opportunity for capital gains inthe medium and longer term while maintaining VCT qualifying status. The Companydoes not currently utilise gearing in making its investments but the Boardconsiders that it may be appropriate in due course to take advantage on aselective basis of its ability to borrow up to 10% of Net Asset Value in pursuitof the investment strategy. Dividend Re-investment The Board suspended the operation of the dividend re-investment scheme followingthe changes made in recent Budgets to the VCT regulations in so far as theoperation of such schemes might be affected by those changes. Once HMRC hadclarified the situation, the Board examined the practicalities of introducing adividend re-investment scheme for Shareholders who wished to increase theirholdings in the Company and decided that Shareholders could gain access to theCompany's shares on better terms in the current market through their ownbrokers. In addition, it is unlikely that there will be sufficient S Ordinaryshares available in the market to enable the envisaged dividend reinvestmentscheme to operate until after the end of the five year minimum holding period.Whilst there are generally no S Ordinary shares available at present, a limitednumber of Ordinary shares is currently available for purchase in the market.Shareholders acquiring shares in the market will not qualify for front-end taxrelief but, provided the purchase is within the £200,000 a year limit, alldividends received, out of capital or income, are free of tax for a higher ratetaxpayer. Portfolio Developments There was one successful exit from the Ordinary share unlisted portfolio duringthe course of the year resulting in a gain of £251,000, equivalent to 3.2p pershare. Strong progress was made in the continued establishment of a diversifiedportfolio of private company investments with 12 new investments made by theOrdinary Share pool and 9 made by the S Shares. Pleasingly, early performanceacross this new portfolio of private company assets is generally very good,offering the prospect of future growth and profit potential if this can besustained. The sale of the investment in EIG (Investments) was successfully completed inJanuary 2007 approximately 15 months after first investing realising £502,000during the reporting period compared to the cost of the investment of £251,000. In addition to the realised gains mentioned above details of which can be foundin the table below, unrealised losses compared to valuations at December 2006totalling £250,000 arose on the Ordinary share portfolio of investments. In theunlisted portfolio, unrealised gains on Countcar (£71,000), Cyclotech (£47,000),Homelux Nenplas (£61,000), ID Support Services (£125,000) and Money Plus(£80,000), reflecting improving prospects for those companies, were offset byreductions in the value of Riverdale Publishing (£267,000) and Oled-T(£177,000). The uplifts in the values of Countcar, Cyclotech and ID SupportServices apply to the S share pool albeit at lower levels. On the AIM portfolios, realised gains amounting to 1.5p per Ordinary share and0.1p per S Share were also achieved over the year. Further details of all ofthese disposals are given in a table below. For the Ordinary shareholders,unrealised gains on Axeon (£78,000) and Litcomp (£50,000) were offset byreductions in the market values of Imprint (£79,000) and Worthington Nicholls(£204,000). For the S shareholders, the most significant item was againWorthington Nicholls, which fell in value by £43,000. The AIM Market performed well in the first half achieving an increase of 15% inthe FTSE AIM All-share index. Since then, however, stocks markets generally havedeclined and the FTSE AIM All-share index has given up all of that increase tofinish the year 0.5% below its starting point and since then has continued todecline as credit crises and fears of recession have gripped the markets. Forthe full year, the Ordinary share AIM portfolio saw a reduction in value of 2.1%and the S Share pool a reduction of 11.4% compared to a reduction in the FTSEAIM All-share index of 0.5% over the year. This reflects the fact that, with alaunch date of April 2007, the S share pool began to invest at a point whenmarkets became less stable and turned down. In context, the bulk of the assets held by both the Ordinary Pool and the SShares are in well managed, growing private companies which are immune to shortterm quoted market pricing movements, and where performance remains generallyencouraging. The Manager will continue to focus on the market for privateequity transactions, seeking to invest in well priced and yielding assets in anattempt to drive future growth in the level of Total Return. Investment Activity During the year ended 31 December 2007, twelve new unlisted and sixteen AIMinvestments were completed and a total of £6.07 million was invested of which£4.6 million was from the Original pool and £1.5 million was from the S Sharepool. At the year end, the portfolio stood at 56 unlisted and AIM investments ata total cost of £9.0 million. Since 31 December 2007, two further newinvestments have been made at a cost of £300,000. The following new investments have been completed during the year. Investment Date Activity Investment cost Website £'000 S Share Original Pool poolUnlisted Adler & Allan Jun-07 Handling and disposal 150 75 www.adlerandallan.co.uk of liquid wasteCamwatch Mar-07 Provider of CCTV 211 www.cctv-monitoring.net monitoring and installation servicesSilkwater May-07 Provider of services to 249 99 www.cyclotech.comHoldings the energy sector(trading asCyclotech)Darwen Group Sep-07 Bus manufacturer and 149 100 www.elcb.co.uk low emission technology groupEnergy Services Nov-07 Provider of services to 248 99Investment Co the energy sectorFuneral Mar-07 Operator of funeral 298 124Services directorsPartnershipID Support Mar-07 CCTV security and air 204 50 www.id-group.co.ukServices conditioning systemsLime Mar-07 Company set up to 199Investments acquire branded premium-end or niche food and beverage businessesMartel Jan-07 Manufacturer of 224 www.martelinstruments.comInstruments compact, handheld printers and display devicesMoney Plus Dec-07 Provider of debt 25 125 www.chiltern.uk.com management services to individualsSteminic Apr-07 Provider of industrial 184 85 www.msis.uk.com(trading as MS cleaning and wasteIndustrial management services toServices) the oil and industrial sectorsOliver Kay Jan-07 Supplier of fresh 209 www.oliverkayproduce.co.ukHoldings produce to the on-trade catering industry in the UKRiverdale Apr-07 Publisher of greeting 174 www.riverdalepublishing.co.ukPublishing cardsTransys Dec-07 Engineering Services to 249 149 www.transysprojects.ltd.ukHoldings the rail industryOther 99 38Total Unlisted 2,872 944investment AIM/PLUS Avanti Apr-07 Provides satellite 69 www.avanti-communications.comCommunications telecommunications services in Europe using leased satellite capacityBglobal Apr-07 Provider of automatic 52 25 www.bglobalmetering.com meter reading and meter management) of electricity and gas metersConcateno Jun-07 Provider of services 91 51 www.concateno.com for the testing of employees for drugs and alcoholCraneware Sep-07 Provider of billing and 150 49 www.craneware.com auditing software for use in the US healthcare marketDM Apr-07 Direct marketing group 100 50 www.dmplc.com specialising in gathering consumer data for use in direct marketing campaignsEssentially Jul-07 Sports marketing, media 135 49 www.essentiallygroup.comGroup management and professional services groupExpansys Apr-07 Seller of mobile and 100 25 www.expansys.com wireless technology products over the internetFormation Group Jun-07 Provider of wealth 50 50 www.formationgroupplc.com management and related professional servicesMelorio Oct-07 UK provider of onsite 148 90 www.melorio.com assessment and training within the construction industryMount Jun-07 Manufacturer, stockist 172 49 www.mountengineering.comEngineering and distributor of engineering products for oil, gas, power, water and general industrial marketsPlastics Dec-07 Manufacturer of plastic 197 50 www.plasticscapital.comCapital partsPressure Jun-07 Niche designer and 148 www.pressuretrechnologies.co.ukTechnologies manufacturer of high pressure seamless steel gas cylinders for global energy and defence marketSmart Identity Sep-07 Software developer of 72 www.smartidentity.co.uk identity management solutionsSt Helen's Jun-07 Provider of corporate 26 www.sthelenscapital.comCapital advisory services.Universe Group Apr-07 Provider of managed 100 www.universe-group.co.uk services and payment solutions to the petrol retail sectorWorthington May-07 Installation and 47 www.worthington-nicholls.co.ukNicholls maintenance of air conditioning units in the hotel and retail marketsOther 81 28 Total AIM/PLUS 1,691 563investment Total 4,563 1,507 Aberdeen Growth Opportunities VCT 2 has co-invested with Aberdeen DevelopmentCapital, Aberdeen Growth VCT I, Aberdeen Growth Opportunities VCT, TalismanFirst Venture Capital Trust, Aberdeen Income and Growth VCT and Guinness FlightVenture Capital Trust in some or all of the above transactions and is expectedto continue to do so with these as well as other clients of the Manager. Theadvantage is that, together, the funds are able to underwrite a wider range andsize of transaction than would be the case on a stand alone basis. Outlook There has been a strong flow of new unlisted investments over the course of theyear. The new investments are generally trading well and should form the basisof successful realisations in future periods, although it is too early topredict the quantum and timing of those realisations. The Manager continues tobe extremely selective in the choice of AIM investments; these holdings aregenerally acquired with a shorter term investment horizon than unlisted holdingsand will continue to be actively traded where early profits are available. There is a continual need to re-invest following the realisation of successfulinvestments. The Company is well placed to achieve this given the Manager'sextensive network and local relationships throughout the UK from whichinvestments can be sourced. The pipeline of new private company investments remains healthy, withsignificant merger and acquisition activity currently in evidence on the back ofimpending changes in Capital Gains Tax legislation, which is motivating someowners of private companies to sell their businesses now in order to avoidpotentially higher future tax liabilities. Conversely, opportunities to investin the AIM market are currently reduced; recent volatility has seen fewer newIPOs in the early part of 2008 and we expect this trend to continue for theimmediate future. Overall, the level of new investment activity remains very positive with asignificant number of new transactions in process across the Manager's networkof UK offices. This activity will help further build the unlisted portfolio heldby your company throughout 2008 and beyond. Realisations during the financial year The following table shows all sales from the investment portfolio made by theCompany during the year: Ordinary Share Pool S Share Pool Date first Complete/ Cost of Sales Realised Cost of Sales Realised invested Partial shares Proceeds Gain/ shares Proceeds Gain/ Exit disposed Loss disposed Loss of of £'000 £'000 £'000 £'000 £'000 £'000Unlisted EIG (Investments) 2005 Complete 251 502 251Other 251 502 251 AIM AT Communications 2005 Partial 121 137 16Avanti Screenmedia 2005 Complete 78 79 1Bglobal 2007 Complete 52 57 5 25 27 2Eleco 2006 Complete 99 115 16Expansys 2007 Partial 68 82 14 17 20 3Hambledon Mining 2006 Partial 21 46 25MTI Wireless Edge 2006 Complete 41 52 11Pressure 2007 Partial 53 70 17TechnologiesVelosi 2006 Complete 100 128 28Worthington Nicholls 2006 Partial 8 26 18Other 149 121 (28) 6 8 2 790 913 123 48 55 7 Total 1,041 1,415 374 48 55 7 ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLCINCOME STATEMENT For the year ended 31 December 2007 Ordinary Shares S Ordinary Shares TOTAL Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000(Losses)/gains on investments - (120) (120) - 69 69 - (51) (51)Income from investments 334 - 334 145 - 145 479 - 479Other income 28 - 28 27 - 27 55 - 55Investment management fees (37) (148) (185) (14) (56) (70) (51) (204) (255)Other expenses (155) - (155) (64) - (64) (219) - (219)Profit/(loss) on ordinary 170 (268) (98) 94 13 107 264 (255) (9)activities before taxation Tax on ordinary activities (29) 29 - (17) 17 - (46) 46 -Profit/(loss) on ordinary 141 (239) (98) 77 30 107 218 (209) (9)activities after taxation Earnings per share (pence) 1.8 (3.1) (1.3) 1.8 0.7 2.5 3.6 (2.4) 1.2 A Statement of Total Recognised Gains and Losses has not been prepared, as allgains and losses are recognised in the Income Statement. All items in the above statement are derived from continuing operations. TheCompany has only one class of business and derives its income from investmentsmade in shares, securities and bank deposits. The total column of this statement is the Profit and Loss Account of theCompany. Reconciliation of movements in Shareholders' Funds For the year ended 31 December 2007 Ordinary S Ordinary TOTAL Shares Shares £'000 £'000 £'000Opening Shareholders' funds 8,789 - 8,789Total (loss)/profit for year (98) 107 9Net proceeds of issue of shares 4,724 - 4,724Dividends paid - revenue (39) - (39)Dividends paid - capital (431) - (431)Closing Shareholders' funds 8,221 4,831 13,052 ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLCINCOME STATEMENT For the year ended 31 December 2006 Ordinary Shares S Ordinary Shares TOTAL Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Gains on investments 1,304 1,304 - - 1,304 1,304 - Income from investments 309 - 309 - - - 309 - 309Other income 17 - 17 - - - 17 - 17Investment management fees (21) (84) (105) - - - (21) (84) (105)Other expenses (213) - (213) - - - (213) - (213)Profit on ordinary activities before taxation 92 1,220 1,312 - - - 92 1,220 1,312Tax on ordinary activities (14) 14 - - - - (14) 14 - Profit on ordinary activities after taxation 78 1,234 1,312 - - - 78 1,234 1,312 Earnings per share (pence) 1.0 15.7 16.7 - - - 1.0 15.7 16.7 A Statement of Total Recognised Gains and Losses has not been prepared, as allgains and losses are recognised in the Income Statement. All items in the above statement are derived from continuing operations. TheCompany has only one class of business and derives its income from investmentsmade in shares, securities and bank deposits. The total column of this statement is the Profit and Loss Account of theCompany. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS For the year ended 31 December 2006 Ordinary Shares S Ordinary Shares TOTAL £'000 £'000 £'000 Opening Shareholders' funds 7,634 - 7,634Total profit for year 1,312 - 1,312Dividends paid - capital (157) - (157)Closing Shareholders' funds 8,789 - 8,789 ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLCBALANCE SHEET As at 31 December 2007 31 December 2007 31 December 2006 Ordinary S Ordinary Ordinary S Ordinary Shares Shares Total Shares Shares Total £'000 £'000 £'000 £'000 £'000 £'000 Investments at fair value through profit or loss 7,714 4,494 12,208 8,109 - 8,109 Current assetsDebtors 152 72 224 263 - 263Cash and overnight deposits 444 307 751 503 - 503 596 379 975 766 - 766 Creditors: amounts falling due within one year (89) (42) (131) (86) - (86)Net current assets 507 337 844 680 - 680 Total net assets 8,221 4,831 13,052 8,789 - 8,789 Capital and reservesCalled up share capital 784 497 1,281 784 - 784Share premium - 4,227 4,227 - - -Distributable reserve 6,660 - 6,660 6,660 - 6,660Capital reserves - realised 965 (32) 933 1,121 - 1,121Capital reserves - unrealised (388) 62 (326) 126 - 126Revenue reserve 200 77 277 98 - 98Net assets attributable to Ordinary Shareholders 8,221 4,831 13,052 8,789 - 8,789 Net asset value per ordinary share (pence) 104.9 97.2 112.2 - ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLCCASH FLOW STATEMENT For the year ended 31 December 2007 Year to 31 December 2007 Year to 31 December 2006 Ordinary S Ordinary Ordinary S Ordinary Shares Shares Total Shares Shares Total £'000 £'000 £'000 £'000 £'000 £'000Operating activitiesInvestment income received 297 56 353 245 - 245Deposit interest received 36 25 61 15 - 15Investment management fees paid (183) (51) (234) (81) - (81)Secretarial fees paid (48) (13) (61) (61) - (61)Cash paid to and on behalf of Directors (39) (12) (51) (93) - (93)Other cash payments (63) (18) (81) (93) - (93)Net cash inflow/(outflow) from operating activities - (13) (13) (68) (68) TaxationCorporation tax - - - - - - Financial investmentPurchase of investments (6,407) (4,459) (10,866) (3,288) - (3,288)Sale of investments 6,818 55 6,873 3,615 - 3,615Net cash inflow/(outflow) from financial investment 411 (4,404) (3,993) 327 - 327 Equity dividends paid (470) - (470) (157) - (157) Net cash (outflow)/inflow before financing (59) (4,417) (4,476) 102 - 102 FinancingIssue of ordinary shares - 4,972 4,972 - - -Expense of share issue - (248) (248) - - -Net cash inflow from financing - 4,724 4,724 - - -(Decrease)/increase in cash (59) 307 248 102 - 102 ABERDEEN GROWTH OPPORTUNITIES VCT 2SUMMARY OF INVESTMENT CHANGES - ORDINARY SHARES For the year ended 31 December 2007 Valuation Net investment Appreciation Valuation 31 December 2006 (disinvestment) (depreciation) 31 December 2007 £'000 % £'000 £'000 £'000 % Unlisted investments Equities 734 8.4 256 71 1,061 12.9 Preference 67 0.8 (35) (1) 31 0.4 Loan stocks 916 10.4 2,149 (123) 2,942 35.8 1,717 19.6 2,370 (53) 4,034 49.1 AIM investments Equities 2,369 27.0 778 (64) 3,083 37.5 Listed investments Fixed income 2,983 33.9 (2,399) (584) - Unit Trusts 1,040 11.8 (1,024) 581 597 7.3 Total investments 8,109 92.3 (275) (120) 7,714 93.9 Other net assets 680 7.7 (173) - 507 6.1 Total Assets 8,789 100.0 (448) (120) 8,221 100.0 ABERDEEN GROWTH OPPORTUNITIES VCT 2 SUMMARY OF INVESTMENT CHANGES - S ORDINARY SHARES For the period ended 31 December 2007 Valuation Net investment Appreciation Valuation 31 December 2006 (disinvestment) (depreciation) 31 December 2007 £'000 % £'000 £'000 £'000 %Unlisted investments Equities - - 128 108 236 4.9Preference - - 4 - 4 0.1Loan stocks - - 812 - 812 16.8 - - 944 108 1,052 21.8AIM investments Equities - - 508 (58) 450 9.3 Listed investments Fixed income - - 2,973 19 2,992 61.9Unit Trusts - - - - - -Total investments - - 4,425 69 4,494 93.0 Other net assets - - 337 - 337 7.0 Total Assets - - 4,762 69 4,831 100.0 INVESTMENT PORTFOLIO SUMMARY As at 31 December 2007 Investment Name Ordinary S % of % of Shares Ordinary equity equity Shares held held by other clients Valuation Cost % of Valuation Cost % of total total assets assetsUnlisted Nature Of BusinessInvestmentsHomelux Nenplas Manufacturer of 376 199 4.6% - - - 3.4% 41.6%Limited plastic tiling trims and related productsMoney Plus Debt management 330 250 4.0% 125 125 2.7% 5.9% 33.1%Group Limited services to individualsID Support Provider of CCTV 329 204 4.0% 80 50 1.8% 2.7% 29.4%Services security and airHoldings Ltd conditioning systemsFuneral Operator of funeral 298 298 3.6% 124 124 2.7% 3.0% 25.0%Services directorsPartnershipLimitedSilkwater Provider of 296 249 3.6% 118 99 2.5% 4.8% 14.0%Holdings services to the(trading as energy sectorCyclotech)Transys Provider of 285 249 3.5% 171 149 3.6% 4.6% 65.0%Holdings engineeringLimited services to the rail industryEnergy Services Provider of 248 248 3.0% 99 99 2.1% 13.3% 68.2%Investment services to theCompany (ESIC) energy sectorLimitedMartel Manufacturer of 224 224 2.7% - - - 3.2% 30.2%Instruments compact, handheld Holdings printers andLimited display devicesCamwatch Provider of CCTV 211 211 2.6% - - - 4.0% 39.5%Limited monitoring and installation servicesOliver Kay Supplier of fresh 209 209 2.5% - - - 1.3% 18.7%Holdings produce to the Limited on-trade catering industry in the UKLime Company set up to 199 199 2.4% - - - 7.6% 72.4%Investments acquire branded Limited premium-end or niche food and beverage businessesSteminic Provider of 184 184 2.2% 84 84 1.8% 4.5% 40.0%(trading as MS industrial cleaningIndustrial and wasteServices Ltd) management services to the oil and industrial sectorsAdler & Allan Provider of liquid 150 150 1.8% 75 75 1.7% 1.0% 38.6%Holdings waste handling andLimited disposal servicesDarwen Group Bus manufacturer 149 149 1.8% 100 100 2.2% 7.0% 15.1%plc and low emission technology groupEssential Developer of video 122 162 1.5% - - - 9.5% 39.9%Viewing Systems streaming softwareLimitedBuildstore Provider of 105 105 1.3% - - - 0.6% 7.1%Limited services to self build homeownersEnpure Holdings Provider of process 100 100 1.2% - - - 0.4% 79.2%Limited engineering and project management servicesRiverdale Publisher of 81 265 1.0% - - - 3.2% 40.9%Publishing greeting cards LimitedCountcar Provider of tool, 77 6 1.0% 43 3 - 2.0% 24.6% plant hire and hydraulic products and services to the oil and gas industryOthers 61 447 0.8% 33 36 0.7% 4,034 4,108 49.1% 1052 944 21.8% AIM/PLUSConcateno plc Provider of 212 176 2.6% 43 50 0.9% 0.4% 1.1% services for the testing of employees for drugs and alcoholSoftware Radio Provider of 210 138 2.6% - - - 0.4% 2.2%Technology PLC wireless technology products and servicesLitcomp plc National supplier 185 100 2.3% - - - - 4.9% of medical reports in support of legal actionsPlastics Manufacturer of 171 197 2.1% 44 50 0.9% 0.9% 2.0%Capital Plc plastic partsAxeon plc Developer of 170 106 2.1% - - - 0.4% 3.2% semiconductor intellectual property specifically geared to the automotive industryHambledon Exploration and 168 94 2.0% - - - 0.2% 0.1%Mining PLC mining of precious metals in KazakhstanCraneware plc Provider of billing 166 143 2.0% 54 49 1.1% 0.9% 0.6% and auditing software for use in the US healthcare marketMount Manufacturer, 163 172 2.0% 46 49 1.0% 1.3% 1.1%Engineering plc stockist and distributor of engineering products for oil, gas, power, water and general industrial marketsAmazing Leisure and hotel 158 151 1.9% - - 0.0% 0.5% 1.7%Holdings PLC developerMelorio Plc UK provider of 155 148 1.9% 94 90 1.9% 0.8% 0.3% onsite assessment and training within the construction industryPressure Niche designer and 124 95 1.5% - - - 0.6%Technologies manufacturer of PLC high pressure seamless steel gas cylinders for global energy and defence marketWork Group PLC Provider of 124 151 1.5% - - - 0.7% 2.6% recruitment servicesEssentially Sports marketing, 118 135 1.4% 43 49 0.9% 1.0% 0.6%Group PLC media management and professional services groupDatong PLC Producer of devices 118 151 1.4% - - - 0.9% 1.1% that enable government intelligence and defence agencies to covertly track vehicles and mobile phonesDM PLC Direct marketing 90 94 1.1% 45 47 0.9% 0.6% 0.0% group specialising in gathering consumer data for use in direct marketing campaignsUniverse Group Provider of managed 89 100 1.1% - - - 1.2% 1.4%PLC services and payment solutions to the petrol retail sectorNeutrahealth Manufacturer and 78 89 0.9% - - - 0.6% 1.3%plc distributor of nutraceutical productsSmart Identity Software developer 74 72 0.9% - - - 9.6% 17.1%plc of identity management solutionsSystem C Information 65 150 0.8% - - - 0.3% 1.0%Healthcare plc services and IT systems to the healthcare sector in EnglandAvanti Provides satellite 60 69 0.7% - - - 0.1% 1.3%Communications telecommunications Group Plc services in Europe using leased satellite capacityHasgrove plc Provider of 54 49 0.7% - - - 0.2% 1.8% communication services in public relations, public affairs, graphic design, advertising and on-line marketingImprint PLC Provider of 50 152 0.6% - - - 0.1% 0.4% recruitment servicesGold Frost Producer of kosher 47 85 0.6% - - - 0.5% 0.9%Limited food products Formation Group Provider of wealth 46 49 0.6% 46 50 1.0% 0.2% 0.2%PLC management and related professional servicesSt Helen's Provider of 40 25 0.5% - - - 0.6% 4.2%Capital PLC corporate advisory servicesIndividual Restaurant operator 37 45 0.5% - - - 0.1% 1.1%Restaurant Company plcWorthington Installation and 27 107 0.3% - - - 0.2% 1.3%Nicholls Group maintenance of air PLC conditioning units in the hotel and retail marketseXpansys PLC Seller of mobile 25 31 0.3% - - - 0.1% 0.2% and wireless technology products over the internetOthers 59 332 0.6% 35 81 0.7% 3,083 3,406 37.5% 450 515 9.3%Listed FixedIncomeTreasury 5% 07/ 1,500 1,499 31.0%03/08Treasury 4% 07/ 597 588 7.3% 1,492 1,474 30.9%03/09 597 588 7.3% 2,992 2,973 61.9% Total 7,714 8,102 93.9% 4,494 4,432 93.0% This preliminary announcement is prepared on the basis of the accountingpolicies as stated in the previous year's financial statement. Returns per Ordinary share have been calculated using the weighted averagenumber of shares in issue during the period of 7,835,163 (2006 - 7,835,163). TheNet Asset Value per Ordinary share has been calculated using the number ofshares in issue at 31 December 2007 of 7,835,163 (2006 - 7,835,163). Returns per S Ordinary share have been calculated using the weighted averagenumber of shares in issue during the period of 4,343,413 (2006 - nil). The NetAsset Value per S Ordinary share has been calculated using the number of sharesin issue at 31 December 2007 of 4,972,459 (2006 - nil). The financial information set out in the announcement does not constitute thecompany's statutory accounts for the years ended 31 December 2006 or 2007. Thefinancial information for the year ended 31 December 2006 is derived from thestatutory accounts for that year which have been delivered to the Registrar ofCompanies. The auditors reported on those accounts; their report was unqualifiedand did not contain a statement under s237(2) or (3) Companies Act 1985. Theaudit of the statutory accounts for the year ended 31 December 2007 is not yetcomplete. These accounts will be finalised on the basis of the financialinformation presented by the directors in this preliminary announcement and willbe delivered to the Registrar of Companies following the company's annualgeneral meeting. Whilst the financial information included in this preliminary announcement hasbeen computed in accordance with United Kingdom Generally Accepted AccountingPractice (UK GAAP), this announcement does not itself contain sufficientinformation to comply with UK GAAP. The Company expect to publish full financialstatements that comply with UK GAAP. Copies of this announcement will be available to the public at the registeredoffice of the Company, 149 St Vincent Street, Glasgow and at the office ofAberdeen Asset Managers Limited, One Bow Churchyard, London. By Order of the Board ABERDEEN ASSET MANAGEMENT PLCSECRETARIES 28 February 2008 This information is provided by RNS The company news service from the London Stock Exchange