Maven I&g 4 Regulatory News (MAV4)

23 Aug 2006 16:28

Aberdeen Grwth Opp VCT2 PLC23 August 2006 Aberdeen Growth Opportunities VCT 2 PLC Interim results The Directors announce the unaudited interim results for the six months ended 30June 2006. Net Asset Value The Net Asset Value (NAV) per share at 30 June 2006 was 100.6p per share ("pps")compared with 97.4pps as at 31 December 2005 and 95.8pps on 30 June 2005. Theincrease in NAV over the six months of 3.3% compares with the FTSE AIM All-ShareIndex which increased by 3.6% over the period. Since launch, the NAV has increased by 5.6p equivalent to 5.9% of the Net AssetValue immediately after payment of the launch expenses. In the same period, theFTSE AIM All-Share index has risen by 0.2%. The increase in NAV ignores thebenefit of the income tax recovered by shareholders on the amount invested. Unquoted investments held by Aberdeen Growth Opportunities VCT 2 are valued inaccordance with the International Private Equity and Venture Capital ValuationGuidelines, which superseded the British Venture Capital Guidelines forreporting periods beginning after 1 January 2005. Investments which are quoted or traded on the Alternative Investment Market(AIM) or a recognised stock exchange are valued at their bid prices, discountedwhere necessary to reflect any trading restrictions. Co-investment Aberdeen Growth Opportunities VCT 2 has co-invested with other funds managed bythe Aberdeen Asset Management Group in a number of investments and is expectedto continue to do so. The advantage of this arrangement is that, together, thefunds are able to underwrite a wider range and size of transaction than would bethe case on a stand-alone basis. In addition, following the agreement of allAberdeen Asset Managers Growth Capital clients, the staff co-investment schememade its first investment on 30 May 2006 and has co-invested alongside theCompany in each investment made since then. Details of the scheme were containedin the Annual Report for 2005. Dividends and returns to date The board intends to pay a capital dividend of 2p per share from gains generatedto date subject to the approval of the Court of Session to the cancellation ofthe share premium account, application for which has already been made. As isusual with VCTs, the Company will also change its status for tax purposes inorder to be able to distribute capital gains. The board has also decided tosuspend the operation of the dividend reinvestment scheme until further notice,when it is clearer how the new VCT regulations will be applied to the managementof reinvested funds. Investment activity During the six-months to 30 June 2006, one new unquoted and six new AIMinvestments were made at a total cost of £820,000. In addition, one AIMinvestment was realised in a share-for-share transaction with the proceedsre-invested in the acquiring company. A total of £955,000 was invested duringthe six month period, including amounts invested in existing investee companies,resulting in an investment portfolio consisting of thirty-one unquoted and AIMinvestments having a total cost of £4.1 million at 30 June 2006. The following seven new investments, of which four are non-qualifying for VCTpurposes, have been made since the publication of the Annual Report: Unlisted Investment Homelux Nenplas Limited (May 2006) - £199,000: Homelux Nenplas Limited is amanufacturer of tile trims and other wet room furnishing accessories. Itsproducts are distributed through major DIY retail outlets and trade productdistributors.(No website available) AiM investments Fairground Gaming Holdings plc (June 2006) - £74,000: Fairground has been formedwith the intention of acting as a consolidator of companies in the online gamingindustry. (www.fairgroundgaming.com) Gold Frost plc (March 2006) - £100,000: Gold Frost designs, develops &distributes kosher food products. (No website available) Hambledon Mining plc (March 2006) - £130,000: Hambledon is a mining andexploration company developing precious metal deposits in Kazakhstan.(www.hambledon-mining.com) MTI Wireless Edge plc (March 2006) - £70,000: MTI is a developer andmanufacturer of sophisticated antennas and antenna systems for fixed broadbandwireless communications. (www.mtiwe.com) Work Group plc (February 2006) - £150,000: Work Group is a leading UKrecruitment services provider that helps employers to recruit and retain theirstaff more effectively. (www.workcomms.com) Worthington Nicholls Group plc (June 2006) - £99,000: Worthington Nichollsinstalls and maintains air conditioning units in the hotel and retail markets.(www.worthington-nicholls.co.uk) Portfolio developments The fund has achieved its first exits from the unlisted portfolio; a profit hasbeen realised from the sale of Travel Class to a major plc. Proceeds of £311,970were received compared to the cost of investment of £125,000 resulting in a gainof £186,970, equivalent to approximately 2.4p per share. The sale of OriginalShoe Company has also been completed for cost. The major shareholder accepted anoffer for his shares following an approach from a privately owned competitorseeking to increase its geographic coverage. A yield greater than would havebeen earned in bank interest was paid over the life of the investment. While it is very early in the development of the unlisted portfolio, there aresigns of increasing maturity in some investments, and further realisations maybe possible over the course of the remainder of the year. The AIM portfolio has continued to be actively managed during the reportingperiod resulting in gains of £173,000 equivalent to around 2.2p per share. The UK stock markets, including AIM, entered a period of instability around themiddle of May 2006 resulting in a fall in the FTSE AIM index of around11%between mid-May and the end of that month before a recovery was experienced inJune. Despite the fall in the market, the net effect of market movements on theportfolio was minimal. The table below shows details of all of the sales made by the Company during thereporting period. The gains shown below together with the gains reported in the2005 Annual Report of £25,000 bring the total to £385,000, which are nowavailable for distribution. S Share Issue The Board proposes an offer for subscription of up to 15 million "S" OrdinaryShares to raise up to £15 million before the deduction of expenses. Theresolutions relating to the "S" Ordinary Share offer will be put to anExtraordinary General Meeting to be held on 4 October 2006 and, as ashareholder, you are encouraged to support the proposal which does notdisadvantage existing shareholders in any way. The Directors believe that the Sshare issue offers an opportunity to shareholders to participate in futureinvestments made by the fund while benefiting from the terms associated with anew VCT investment. As a result, the Company will be run at a reduced cost per share and allshareholders will benefit from improved profitability and dividends. Inaddition, an increase in the size of the fund should improve the liquidity ofthe Company's shares in the secondary market. The reason that a separate class of shares is being issued is that the rulesgoverning the size of investment which a VCT can make were changed in the Budgetof 2006. For funds raised after 6 April 2006, qualifying investments must be incompanies with gross assets no greater than £7 million before investment and £8million after investment. The original pool of funds raised will still be ableto invest in companies with up to £15 million gross assets, although in practicemany investments which the Fund has previously made would still qualify underthe new rules. In future where an investment qualifies under the new rules, bothpools will invest in proportion to their respective net asset values providedeach has sufficient liquidity to do so. Outlook The outlook for new investments remains positive, with an increasing flow ofboth unquoted and AIM opportunities available for consideration by the Manager.The primary focus is to build, in a measured fashion, a diversified portfolio ofgood quality smaller company assets which will deliver sustained long termperformance. Asset quality will not be sacrificed for short term growth in thequalifying investment portfolio. Realisations during the reporting period Date first Complete/ Cost of Sales Realised invested partial exit shares proceeds gain/ disposed of (loss) £'000 £'000 £'000UnlistedOriginal Shoe 2005 Complete 250 250 -Travel Class 2005 Complete 125 312 187Total unlisted 375 562 187 AIMAxeon 2005 Partial 40 55 15Billing Services 2006 Partial 6 4 (2)Datong Electronics 2005 Partial 12 13 1Gold Frost 2006 Partial 14 16 2Hambledon Mining 2006 Partial 25 47 22Leisure & Gaming 2005 Partial 52 94 42MTI Wireless Edge 2006 Partial 29 39 10Neutrahealth 2005 Partial 31 39 8Software Radio Holdings 2005 Partial 2 4 2Spectrum Interactive 2005 Partial 19 14 (5)Talarius 2005 Partial 22 42 20United Clearing 2005 Complete 159 217 58Total AIM 411 584 173 Total 786 1146 360 Uplift on December 2005 valuation 262 ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLCINCOME STATEMENTFor the six months ended 30 June 2006 Six months ended 30 June 2006 (unaudited) Revenue Capital Total £'000 £'000 £'000 Gains on investments - 243 243Income from investments 152 - 152Other income 4 - 4Investment management fees (14) (56) (70)Other expenses (83) - (83) __________ __________ __________Profit on ordinary activities 59 187 246before taxation Tax on ordinary activities (10) 10 - __________ __________ __________Profit on ordinary activities after taxation 49 197 246 __________ __________ __________ Earnings per share (pence) 0.6 2.5 3.1 __________ __________ __________ Reconciliation of movements in Shareholders' Funds Six months ended 30 June 2006 Opening Shareholders' funds 7,634Total profit for period 246Net proceeds of issue of shares - __________Closing Shareholders' funds 7,880 __________ The accompanying notes are an integral part of the financial statements. ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLC INCOME STATEMENT 44 weeks ended 30 June 2005 (unaudited) Revenue Capital Total £'000 £'000 £'000 Gains on investments - 98 98Income from investments 44 - 44Other income 32 - 32Investment management fees (3) (13) (16)Other expenses (103) - (103) __________ __________ __________Profit on ordinary activities (30) 85 55before taxation Tax on ordinary activities - - - __________ __________ __________Profit on ordinary activities after taxation (30) 85 55 __________ __________ __________ Earnings per share (pence) (1.3) 3.6 2.3 __________ __________ __________ Reconciliation of movements in Shareholders' Funds 44 weeks ended 30 June 2005 Opening Shareholders' funds -Total profit for period 55Net proceeds of issue of shares 7,352 __________Closing Shareholders' funds 7,407 __________ The accompanying notes are an integral part of the financial statements. ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLC INCOME STATEMENT 70 weeks ended 31 December 2005 (audited) Revenue Capital Total £'000 £'000 £'000 Gains on investments - 219 219Income from investments 211 - 211Other income 38 - 38Investment management fees (13) (52) (65)Other expenses (213) - (213) __________ __________ __________Profit on ordinary activities 23 167 190before taxation Tax on ordinary activities (3) 3 - __________ __________ __________Profit on ordinary activities after taxation 20 170 190 __________ __________ __________ Earnings per share (pence) 0.4 3.9 4.3 __________ __________ __________ Reconciliation of movements in Shareholders' Funds 70 weeks ended 31 December 2005 Opening Shareholders' funds -Total profit for period 190Net proceeds of issue of shares 7,444 __________Closing Shareholders' funds 7,634 __________ The accompanying notes are an integral part of the financial statements. 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. ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLC BALANCE SHEET As at 30 June 2006 30 June 30 June 2005 31 December 2006 2005 (unaudited) (unaudited) (audited) Notes £'000 £'000 £'000Fixed assetsInvestments 7,320 6,833 7,269 Current assetsDebtors 230 115 62Cash and overnight deposits 445 668 401 __________ __________ __________ 675 783 463Creditors: amounts falling due within one year (115) (209) (98) __________ __________ __________Net current assets 560 574 365 __________ __________ __________Total net assets 7,880 7,407 7,634 __________ __________ __________ Capital and reservesCalled up share capital 784 773 784Share premium 2 6,660 6,579 6,660Capital reserves - realised 2 293 18 (21)Capital reserves - unrealised 2 74 67 191Revenue reserve 2 69 (30) 20 __________ __________ __________Net assets attributable to Ordinary Shareholders 7,880 7,407 7,634 __________ __________ __________Net asset value per ordinary share (pence) 100.6 95.8 97.4 __________ __________ __________ ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLC CASH FLOW STATEMENT For the six months ended 30 June 2006 Six months to 30 June 44 weeks ended 30 June 70 weeks ended 31 2006 2005 December 2005 (unaudited) (unaudited) (audited) £'000 £'000 £'000 £'000 £'000 £'000 Operating activitiesInvestment income received 87 14 174Deposit interest received 4 30 37Investment management fees paid (47) (5) (61)Secretarial fees paid (31) (7) (37)Cash paid to and on behalf of Directors (14) (22) (48)Other cash payments (48) (26) (44) ________ ________ ________ ________ ________ ________Net cash (outflow)/inflow from operating (49) (16) 21activities TaxationCorporation tax - - - Financial investmentPurchase of investments (1,037) (7,854) (10,396)Sale of investments 1,130 1,049 3,332 ________ ________ ________ ________ ________ ________Net cash inflow/(outflow) from financial 93 (6,805) (7,064)investment Equity dividends paid - - - ________ ________ ________Net cash inflow/(outflow) before 44 (6,821) (7,043)financing ________ ________ ________FinancingIssue of redeemable preference shares - - 50Redemption of redeemable preference - - (50)sharesIssue of ordinary shares - 7,731 7,836Expense of share issue - (242) (392) ________ ________ ________ ________ ________ ________Net cash inflow from financing - 7,489 7,444 ________ ________ ________Increase in cash 44 668 401 ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLC Notes to the Financial Statements 1. Accounting Policies The financial information for the six months ended 30 June 2006 and the 44 weeksended 30 June 2005 comprises non-statutory accounts within the meaning ofsection 240 of the Companies Act 1985. The financial information contained in this report has been prepared on thebasis of the accounting policies set out in the Annual Report and FinancialStatements for the 70 weeks ended 31 December 2005 The results for the 70 weeks ended 31 December 2005 are extracted from the fullaccounts for that period, which received an unqualified report from the Auditorsand have been filed with the Registrar of Companies. Share Capital Capital premium reserves reserves Revenue account realised unrealised reserve £'000 £'000 £'000 £'000 2. Movement in reserves As at 31 December 2005 6,660 (21) 191 20 Gains on sales of investments - 360 - - Decrease in unrealised appreciation - - (117) - Investment management fees - (56) - - Tax effect of capital items - 10 - - Profit on Ordinary activities after taxation - - - 49 ________ ________ ________ ________ As at 30 June 2006 6,660 293 74 69 ________ ________ ________ ________ 3. Return per ordinary share Six months ended 30 June 2006 The returns per share have been based on the following figures: Weighted average number of ordinary shares 7,835,163 Revenue Return 49,000 Capital Return 197,000 The financial information contained in this report has been prepared on the basis of the accounting policies set out in the Annual Report. The results for the year ended 31 August 2001 are abridged from the full accounts for that year, which received an unqualified report from the auditors and have been filed with the Registrar of Companies. A summary of investment changes for the period under review and an investmentportfolio summary as at 30 June 2006 are attached. A full copy of the Interim Report and Financial Statements will be printed andissued to shareholders. Copies of this announcement will be available to the public at the registeredoffice of the Company, 123 St Vincent Street, Glasgow. By Order of the Board ABERDEEN ASSET MANAGEMENT PLC, SECRETARY 23 August 2006 ABERDEEN GROWTH OPPORTUNITIES VCT 2 SUMMARY OF INVESTMENT CHANGES For the period ended 30 June 2006 Valuation Net investment Appreciation Valuation 31 December 2005 (disinvestment) (depreciation) 30 June 2006 £'000 % £'000 £'000 £'000 %Unlisted investmentsEquities 668 8.7 (285) 294 677 8.6Preference 67 0.9 - - 67 0.9Loan stocks 1,363 17.9 (77) (246) 1,040 13.2 ________ ________ ________ ________ ________ ________ 2,098 27.5 (362) 48 1,784 22.7AIM investmentsEquities 2,033 26.6 171 196 2,400 30.5 Listed investmentsFixed income 2,118 27.7 (1) (1) 2,116 26.9Unit Trusts 1,020 13.4 - - 1,020 12.9 ________ ________ ________ ________ ________ ________Total investments 7,269 95.2 (192) 243 7,320 93.0 Other net assets 365 4.8 195 - 560 7.0 ________ ________ ________ ________ ________ ________Total Assets 7,634 100.0 3 243 7,880 100.0 ________ ________ ________ ________ ________ ________ ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLC INVESTMENT PORTFOLIO SUMMARY As at 30 June 2006 % of equity Bookcost Valuation % of % of held by 30/06/2006 30/06/2006 total equity otherInvestment Name Nature of Business £'000 £'000 assets held clients UnlistedBond Aviation Solutions Commercial pilot training services 250 350 4.4% 4.0% 36.0%EIG (Investments) Insurance business focussed mainly 250 250 3.2% 0.1% 1.3% on niche risk areas in motor insuranceMoneyPlus Manages agreements and repayment 225 225 2.9% 4.5% 26.4% plans for credit card holdersStyles & Wood Holdings Independent provider of store fit 200 200 2.5% 0.8% 45.6% outs to the UK retail sectorHomelux Nenplas Extruder of plastic tiling trims and 199 199 2.5% 3.4% 41.6% related productsOled-T Developer of flat panel display 167 167 2.2% 3.9% 14.7% technologiesEssential Viewing Systems Developer of an advanced delivery 150 150 1.9% 9.5% 39.9% technology for video over mobile telephonesVibration Technology Seismic survey for energy 150 150 1.9% 1.3% 8.8% explorationRiverdale Publishing Publisher of greeting cards 1 93 1.2% 5.9% 59.1%Kingsley Cards Greetings card distributor 200 0 0.0% 2.5% 25.0% ________ ______ ______ _______ _______ 1,792 1,784 22.7%AIM ________ ______ ______ _______ _______Software Radio Technology Digital wireless communication 140 264 3.4% 0.7% 3.5% development businessHambledon Mining Exploration and mining of precious 105 181 2.3% 0.3% 0.1% metals in KazakstanAT Communications Group Leading communications integrator 140 163 2.1% 0.6% 1.3%Litcomp National supplier of medical reports 100 160 2.0% 0.0% 5.4% in the support of legal actionsNeutrahealth Provider of BioCare products to 117 153 1.9% 0.8% 2.0% health practitioners and specialist retailersWork Group Provider of recruitment services 150 153 1.9% 0.8% 2.9%Amazing Holdings Leisure and hotel developer 150 130 1.6% 0.5% 1.8%Imprint Provider of a result and search 151 125 1.6% 0.1% 0.4% serviceDatong Electronics Producer of tracker devices to track 151 122 1.5% 0.9% 1.1% vehicles and mobile phonesAxeon Developer of semi conductor 111 120 1.5% 0.8% 7.2% intellectual property rightsLeisure & Gaming Online gaming operator 85 119 1.5% 0.2% 0.7%Gold Frost Designer, developer and distributor 86 108 1.4% 0.5% 0.9% of kosher food productsTalarius High street gaming 60 104 1.3% 0.1% 0.8%Avanti Screenmedia Provider of screens and media 101 103 1.3% 0.2% 2.1% advertisingWorthington Nicholls Group Installer and maintainer of air 99 99 1.3% 0.3% 1.5% conditioning units in the hotel and retail marketsFairground Gaming Holdings An investment company in the on-line 74 74 1.0% 0.3% 1.4% gaming sectorBilling Services Provider of billing services for the 123 72 0.9% 0.1% 0.3% telecommunications industrySystem C Healthcare Provider of information services and 150 69 0.9% 0.3% 1.0% IT systems to the healthcare sectorMTI Wireless Edge Developer and manufacturer of 41 42 0.5% 0.2% 0.3% sophisticated antennas for broadbandSpectrum Interactive Provider of payphones and internet 98 20 0.4% 0.3% 1.3% access throughout the UK.Elevation Events Group Integrated events management and 100 19 0.2% 1.7% 8.9% corporate hospitality ________ ______ ______ _______ _______ 2,332 2,400 30.5% ________ ______ ______ _______ _______ Listed Fixed IncomeInvestmentsBond - GE FRN 04/05/07 900 900 11.5% - -Bond - Barclays FRN 12/03/ 601 601 7.5% - -12Bond - BNG 4.625% 07/12/06 405 405 5.2% - -Bond - Cades 5.25% 07/12/ 210 210 2.7% - -06 ________ ______ ______ _______ _______ 2,116 2,116 26.9% - -Unit Trusts ________ ______ ______ _______ _______Aberdeen International 1,006 1,020 12.9% - -Fixed Interest ________ ______ ______ _______ _______ 1,006 1,020 12.9% - - ________ ______ ______ _______ _______TOTAL 7,246 7,320 93.0% ________ ______ ______ _______ _______ This information is provided by RNS The company news service from the London Stock Exchange