Maven I&g 4 Regulatory News (MAV4)

31 Aug 2005 16:25

Aberdeen Grwth Opp VCT2 PLC31 August 2005 Aberdeen Growth Opportunities VCT 2 PLC Interim Results The directors announce the interim unaudited results for the forty four weeksended 30 June 2005. Investment Activity The company was formed in August 2004 but until the allotment of shares inFebruary, April and May 2005 there were no funds available for investment. Theinvestments made to date have therefore been made in a relatively short timecompared to the period covered by this report. A total of £7.7 million has beensubscribed by shareholders and three private equity and nine AIM investmentshave been made at a total cost of £1.6 million during the reporting period.Since 30 June 2005, one further private equity investment has been completed.The balance of funds raised has been invested in a range of bonds, gilts, unittrusts and cash to await investment in qualifying companies as required by VCTlegislation. The following investments have been made since launch: Gladstone PLC (February 2005) - £125,000 Gladstone develops software for theleisure industry and in particular for gym membership applications. AberdeenGrowth Opportunities VCT and Talisman First VCT also invested on the admissionof the company to AIM. Travel Class Holdings Limited (February 2005) £125,000 Travel Class providesactivity based holidays for schoolchildren. Aberdeen Development Capital,Aberdeen Growth Opportunities VCT and Aberdeen Growth VCT also invested in themanagement buy-out. Accuma Group PLC (March 2005) - £100,000 Accuma provides advice on debtsolutions to individuals. Aberdeen Growth Opportunities VCT also invested in theAiM placing. Software Radio Technology (UK) Limited (March 2005) £125,000 Software RadioTechnology is a leading edge digital wireless communication developmentbusiness. Aberdeen Growth Opportunities VCT and Aberdeen Growth VCT alsoinvested in a £6.2 million development capital round of funding. Spectrum Interactive PLC (April 2005) £117,000 Spectrum Interactive operatespayphones and provides internet access through terminals located in publicareas. Aberdeen Growth Opportunities VCT, Aberdeen Growth VCT and Murray VCT 4also invested in the AiM placing. Elevation Events PLC (May 2005) - £100,000 Elevation Events is building a groupof events management, corporate hospitality and related niche businesses.Aberdeen Growth Opportunities VCT, Aberdeen Growth VCT and Murray VCT 4 alsoinvested to fund the first acquisition. Original Shoe Company Limited (May 2005) £250,000 Original Shoe is a retailer ofbranded clothing and footwear mainly in Scotland. Aberdeen Development Capital,Aberdeen Growth Opportunities VCT, Aberdeen Growth VCT, Murray VCT 4 andTalisman First VCT also invested to provide development capital to fund thegeographic expansion of the business. Talarius PLC (May 2005) £150,000 Talarius is building a group of businessesoperating in the high street gaming sector. Aberdeen Growth VCT, Murray VCT 4and Talisman First VCT also invested in a round of funding to enable the AiMquoted company to complete an acquisition. United Clearing PLC (May 2005) £98,000 United Clearing provides softwaresolutions to mobile communications operators. Murray VCT 4 and Talisman FirstVCT also invested to provide development capital to this AiM quoted company. Axeon PLC (June 2005) - £150,000 Axeon exploits semiconductor intellectualproperty focusing on the automotive industry. Aberdeen Growth Opportunities VCT,Aberdeen Growth VCT and Murray VCT 4 also invested on the admission of thecompany to AiM. Leisure & Gaming PLC (June 2005) £150,000 Leisure & Gaming is acquiringcompanies in the online gaming sector. Aberdeen Growth VCT, Murray VCT 4 andTalisman First VCT also invested to fund an acquisition by this AiM quotedcompany. System C Healthcare PLC (June 2005) £150,000 System C Healthcare providesinformation services and IT systems to the healthcare sector in England.Aberdeen Growth VCT and Murray VCT 4 also invested in the AiM placing. Kingsley Cards Limited (July 2005) - £200,000 Kingsley Cards designs, producesand distributes greeting cards. Aberdeen Growth Opportunities VCT, AberdeenGrowth VCT, Murray VCT 4 and West Yorkshire Pension Fund also invested toprovide development capital to the business. Portfolio Developments In the Company's Prospectus it was anticipated that the portfolio of investmentswould consist of approximately 50% in private equity investments in relativelymature companies, 25% in earlier stage companies and 25% in AiM quotedinvestments. These proportions will vary from time to time and, at present,there are a larger number of AiM transactions becoming available to the Companyand therefore there have been a higher proportion of investments in thiscategory. The AiM portfolio will be actively traded and during the reportingperiod one AiM investment was realised resulting in a gain of £29,000 (29%) overcost. At the period end, the remaining AiM portfolio had achieved an uplift overcost of £45,000 (4%). The private equity investments portfolio was valued atcost at the period end and all of the companies were trading in line withexpectations. These investments by their nature are less liquid and it will besome time before these companies have developed to the point where exits will besought. Market conditions Interest rate increases imposed to control inflation, in particular in thehousing market, have contributed to a significant downturn in retail sales whichis affecting GDP growth. Interest rates were reduced by a quarter point inAugust reversing the previous trend. However, the rate of inflation announcedwithin days of that decision showed an unexpected increase and this has againintroduced uncertainty to the market over the direction and timing of the nextchange. Oil prices have been at relatively high levels for some time as theimpact of supply and demand imbalances has been felt in increased prices.Inflation forecasts for the medium term show no significant movement away fromthe Government's target. Manufacturing output is continuing to decline althoughthe construction sector remains strong. Net Asset Value The Net Asset Value per share at 30 June 2005 was 95.8p compared with 95pimmediately after launch. The increase reflects the uplift achieved in the AiMportfolio. The unlisted companies in which Aberdeen Growth Opportunities VCT 2 is investedare valued in accordance with the British Venture Capital Associationguidelines. Investments are normally valued at cost until they have been heldfor at least one year; thereafter investments are valued by reference to theirunderlying performance. International Accounting Standards apply to accounting years starting on 1January 2005 or thereafter and these new regulations require that listedholdings, including AIM stocks, are valued at their bid price where previouslythey would have been valued at their closing mid-market price in line withindustry practice. Where trading restrictions apply, an appropriate level ofdiscount will be applied. 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. Dividends The Board does not intend to declare an interim dividend for the period ended 30June 2005. Dividends will be paid tax-free to shareholders but the timing of capitaldividends, which will depend on the achievement of realisations, cannot bereliably predicted. Outlook Deal flow is strong with a growing number of investment opportunities underconsideration throughout Aberdeen Murray Johnstone Private Equity's regionalnetwork of seven offices, ensuring a continual flow of opportunities in whichthe company can invest. The primary focus is to ensure that the Company builds aproperly diversified portfolio of good quality assets which will deliversustained long term performance. The Manager is confident that Aberdeen GrowthOpportunities VCT 2 will achieve the minimum investment target of 70% to complywith the Venture Capital Trust legislation within the three year qualifyingperiod which ends on 31 December 2007. ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLC Statement of Total Return (incorporating the Revenue Account of the Company*) For the 44 weeks ended 30 June 2005 (unaudited) 44 weeks ended 30 June 2005 Revenue Capital Total £'000 £'000 £'000 Gains on investments - 98 98 Income from investments 44 - 44Other income 32 - 32Investment management fees (3) (13) (16)Other expenses (103) (103) - Net return/(loss) on ordinary activities before (30) 85 55taxation Tax on ordinary activities - - - Return/(loss) attributable to equity Shareholders (30) 85 55 Return per Ordinary share (pence) (1.27) 3.59 2.32 * The revenue column of this statement is the profitand loss account of the Company. ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLC Balance Sheet As at 30 June 2005 30 June 2005 (unaudited) Notes £'000 Fixed assets Investments 6,833 Current assets Debtors 115 Cash and overnight deposits 668 783 CreditorsAmounts falling due within oneyear 209 Net current assets 574 7,407 Capital and reserves Called up share capital 773 Share premium 2 6,579 Capital reserves 2 85 Revenue reserve 2 (30) Equity Shareholders' interest 7,407 Net Asset Value per Ordinary share(pence) 95.8p ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLCCash Flow StatementFor the forty four weeks ended 30 June 2005 Forty four weeks to 30 June 2005 (unaudited) £'000 Operating activities Investment income received 14 Deposit interest received 30 Investment management fees paid (5) Secretarial fees paid (7) Cash paid to and on behalf of Directors (22) Other cash payments (26) Net cash inflow from operating activities (16) TaxationCorporation tax - Financial investment Purchase of investments (7,854) Sale of investments 1,049 Net cash outflow from financial investment (6,805) Equity dividends paid - Net cash (outflow)/inflow before financing (6,821) Financing Issue of Ordinary shares 7,731 Expenses of share issue (242)Net cash inflow from financing 7,489 Increase in cash 668 Notes to the Financial Statements 1.Accounting policies Basis of preparation The accounts have been prepared in accordance withapplicable accounting standards and with the Statement of Recommended Practice'Financial Statements of Investment Trust Companies'. The accounts are preparedunder the historical cost convention, modified to include the revaluation offixed asset investments The company had the option to prepare its financial statements in accordancewith the International Financial Reporting Standards ('IFRS'), as adopted by theInternational Accounting Standards Board ('IASB'). The Board has elected toadopt UK Generally Accepted Accounting Principles ('UK GAAP') and therefore touse the new Financial Reporting Standards issued as part of the programme toconverge UK GAAP with IFRS. Income Dividends receivable on equity shares are treated as revenue for the period onan ex-dividend basis. Where no ex-dividend date is available dividendsreceivable on or before the period end are treated as revenue for the period. Provision is made for any dividends not expected to be received. The fixed returns on debt securities and non-equity shares are recognized on atime apportionment basis so as to reflect the effective yield on the debtsecurities and shares. Provision is made for any fixed income not expected tobe received. Interest receivable from cash and short term deposits and interestpayable are accrued to the end of the period. Expenses All expenses are accounted for on an accruals basis. Expenses are chargedthrough the revenue account except as follows: - expenses which are incidental to the acquisition of an investment are included within the cost of the investment - expenses which are incidental to the disposal of an investment are deducted from the disposal proceeds of the investment - expenses are charged to capital reserves where a connection with the maintenance or enhancement of the value of the investments can be demonstrated. In this respect the investment management fee has been allocated 20% to revenue and 80% to capital reserves to reflect the company's investment policy and prospective income and capital growth. Taxation Deferred taxation is provided for by the liability method on timing differences,except where there is a reasonable probability that such liability will notarise in the foreseeable future. The provision is calculated at the rate atwhich it is estimated that the tax will be payable. The tax effect of differentitems of income/gain and expenditure/loss is allocated between capital reservesand revenue account on the same basis as the particular item to which it relatesusing the company's effective rate of tax for the period. Investments Investments are measured initially at cost and are recognized at trade date. For financial assets acquired, the cost is the fair value of the consideration,with changes in fair value going to the profit and loss account. Subsequent toinitial recognition investments are valued at fair value. For listed investmentsthis is assumed to be bid market prices. Unlisted investments are valued byDirectors at fair value, in line with the guidelines of the British Venturecapital Association. Share Capital premium reserve Revenue account realised reserve £'000 £'000 £'000 2. Movement in reserves At 26 August 2004 - - -Issue of shares 6,958 - -Expense of share issue (379) - -Increase in unrealized appreciation - 67 -Investment management fees - (13) -Net gains on realization of investments - 31 -Retained net revenue for period - - -As at 30 June 2005 4,685 (398) 49 The financial information contained in this report has been prepared on thebasis of the accounting policies set out in the Annual Report. The results forthe 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 withthe Registrar of Companies. 3. Earnings per share Earnings per Ordinary share have been calculated using the weighted averagenumber of shares in issue during the period of 2,364,820. Between 26 August2004 and 15 February 2005 only 2 ordinary shares were in issue and therefore theweighted average number of shares and the returns per share are not directlycomparable to the change in net asset value per ordinary share in the period.Net Asset Values per Ordinary share have been calculated using the number ofshares in issue at 31 May 2005 of 10,188,708. A summary of investment changes for the period under review and an investmentportfolio summary as at 30 June 2005 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 office ofAberdeen Asset Management PLC, 123 St Vincent Street, Glasgow and at theregistered office of the Company, One Bow Churchyard, Cheapside, London. By Order of the Board ABERDEEN ASSET MANAGEMENT PLC, SECRETARY 31 August 2005 ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLCSUMMARY OF INVESTMENT CHANGESFor the 44 weeks ended 30 June 2005 Net proceeds Net investment/ Appreciation/ Valuation of share issue * (disinvestment) (depreciation) 30 June 2005 £'000 % £'000 £'000 £'000 %Unlisted investmentsEquities - - 156 - 156 2.1Loan stocks - - 344 - 344 4.6 - - 500 - 500 6.7AIM investmentsEquities - - 1,011 76 1,087 14.7 Listed investmentsFixed income - - 4,218 7 4,225 57.0Unit trusts - - 1,006 15 1,021 13.8Total investments - - 6,735 98 6,833 92.2 Other net assets 7,352 100.0 (6,779) - 573 7.8 Total assets 7,352 100.0 (44) 98 7,406 100.0 * After issue expenses of £378,581 which were equivalent to 5% of monies raised. ABERDEEN GROWTH OPPORTUNITIES VCT 2 PLCPORTFOLIO SUMMARYAs at 30 June 2005 Bookcost Valuation 30/06/05 30/06/05 % ofInvestment Nature of business £'000 £'000 total assets UnlistedOriginal Shoe Company Branded clothing and footwear retailer 250 250 3.3Software Radio Technology (UK) Digital wireless communication 125 125 1.7 development businessTravel Class Provider of activity based educational 125 125 1.7 holidays for children 500 500 6.7AIMAxeon Developer of semi conductor intellectual 150 180 2.5 property rightsLeisure & Gaming Online gaming 150 165 2.2System C Healthcare Provider of information services and IT 150 151 2.0 systems to the healthcare sectorTalarius Adult gaming centres 150 147 2.0United Clearing Provider of software based solutions to 98 119 1.6 mobile communications operatorsSpectrum Interactive Provider of payphones and internet 117 112 1.5 access throughout the UKElevation Events Group Integrated events management and 100 108 1.5 corporate hospitalityGladstone Developer of specialist membership 125 105 1.4 software for the leisure industry 1,040 1,087 14.7Listed fixed incomeKFW 6.375% 7/12/05 905 906 12.2GE FRN 5.019% 4/5/07 901 901 12.2Cades 5.25% 7/12/06 705 708 9.6EIB 6.125% 7/12/05 704 704 9.5Barclays FRN 5.19% 12/3/12 601 600 8.0BNG 4.625% 7/12/06 404 406 5.5 4,220 4,225 57.0Listed unit trustsAberdeen International Fixed 1,006 1,021 13.8Interest 1,006 1,021 13.8 TOTAL 6,766 6,833 92.2 This information is provided by RNS The company news service from the London Stock Exchange