Maven Income 1 Regulatory News (MIG1)

26 Apr 2007 17:30

Murray VCT 4 PLC26 April 2007 Murray VCT 4 PLC Preliminary results for the year ended 28 February 2007 The Directors are pleased to report that the improvement in the performance ofthe Company which has been achieved since late 2004 has continued over the pastyear. The Company has now seen an increase in NAV total return at each reportingperiod end since August 2004, and the payment of an increased level of dividendsduring that period. Among the highlights are: • NAV at year end of 81.1p per share ("pps"), up 9.4% over the year (after adjusting for dividends paid); • Total return 99.6pps at year end, up 8.0% over the year; • Five successful exits from unlisted companies during the year, generating gains of more than £4.0 million; • Net realised gains from AIM stocks of £1.2 million for the year; • Capital dividends paid during the year of 4.6pps, with a further dividend paid on 23 March 2007 of 4.0pps; and • Final dividend proposed of 2.8pps (comprising 0.8pps revenue and 2pps capital). Performance The Net Asset Value (NAV) per Ordinary Share at 28 February 2007, before paymentof a dividend in respect of the year then ended, was 81.1pps compared with79.1pps at 28 February 2006. The NAV has increased by 9.4% compared to the valueat 28 February 2006, after adjusting for the dividends paid during the yeartotalling 5.4pps, which compares with a decrease in the FTSE AIM All-share Indexof 6.2%. The uplift achieved in the NAV during the year ended 28 February 2007, afteradjusting for the effect of dividends paid and shares bought back, governs thelevel of management fee payable for that period and, based on the performanceduring the year, a fee of £599,000 (excluding VAT) was payable. Dividends The Company has paid a total of 5.4pps to Shareholders during the course of theyear. This includes both the final revenue dividend of 0.8pps in respect of theyear ending 28 February 2006 and the capital dividends of 1.6pps per share paidin July 2006 and 3.0pps paid in December 2006. This has been achieved due tocapital gains arising in the year ended February 2007 and in earlier years. Inaddition, subsequent to the year-end, a further capital dividend of 4.0pps waspaid to Shareholders in March 2007. In light of the results for the year ended 28 February 2007, the Board is nowrecommending the payment of a final dividend of 2.8pps, comprising 0.8pps ofrevenue and 2.0pps of capital, to be paid on 27 July 2007 to Shareholders on theregister on 29 June 2007. Upon payment of the final dividend, the Company willhave paid 12.2pps in the twelve month period to 27 July 2007, equivalent to anannual yield of 20.3% to a higher-rate tax payer on an effective initialinvestment of 80pps, or 29.2% based on the current mid-market share price of55.75p. Since the Company's launch, and including the payment of the proposedfinal dividend, Ordinary Shareholders will have received 25.3pps in tax-freedividends. The effect of paying the capital dividend in March and the proposed dividendwill be to reduce the NAV as at 28 February 2007 to 74.3pps. The Board intends to pay regular dividends from realised capital gains and,while not making a formal forecast, the Board expects the Company to declaredividends totalling at least 4.0pps in respect of the year ending 28 February2008. This would be equivalent to an annual yield of 6.7% to a higher-ratetaxpayer on an effective initial investment of 80pps, or 9.6% based on thecurrent mid-market share price of 55.75p. The most important measure for a VCT is the NAV total return, being the longterm record of income and capital gains dividend payments plus the current NAV.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. The NAV total return per Ordinary Share at 28 February 2007was 99.6pps, an increase of 8.0% over the equivalent figure at February 2006. Investment activity At the year end, the portfolio stood at 63 unlisted and AIM investments at atotal cost of £26.5 million. A total of £4.9 million was invested during theyear ended 28 February 2007, with twelve new unlisted and AIM investments beingcompleted. Realisations achieved during the year have resulted in a reducedunlisted portfolio; since these realisations occurred, the Manager had made twonew unlisted investments by 28 February 2007 and a further five have beencompleted early in the current year, in addition to five new AIM investments.There is also a healthy pipeline of in-progress transactions which will rebuildthe portfolio. The following new investments have been completed during the year:- Investment Date Activity £'000 Website Unlisted Buildstore Sep 2006 On-line services to self-build 98 www.buildstore.co.uk home owners.Crossco (982) (Martel Jan 2007 Production of hand held 796 www.martelinstruments.comInstruments) printers and terminals.Enpure Holdings Nov 2006 Project engineering in the 100 www.enpure.co.uk water and waste water sector.Homelux Nenplas May 2006 Manufacturer of tile trims and 522 www.homelux.co.uk other wet room furnishing accessories.Oliver Kay Holdings Jan 2007 Distributor of fresh produce 771 www.oliverkayproduce.co.uk to the on-trade catering industry.Riverdale Publishing Apr & Nov Greetings cards publisher. 343 www.riverdalepublishing.co.uk 2006 AIM Brulines (Holdings) Oct 2006 System for monitoring flow 121 www.brulines.co.uk rates of beer in public houses.Concateno Oct & Dec Testing services for alcohol 296 www.concateno.com 2006 and drugs for employers.Hasgrove Nov 2006 Communication services for 174 www.hasgrove.com public relations.Hexagon Human Capital Feb 2007 Executive search and 99 www.hexagonhc.com recruitment.Individual Restaurant Dec 2006 Restaurant operator. 176 www.individualrestaurants.co.ukCompanyTangent Feb 2007 Digital printing and marketing 99 www.documedia.co.ukCommunications services. Murray VCT 4 has co-invested with Aberdeen Development Capital, Aberdeen GrowthVCT I, Aberdeen Growth Opportunities VCT, Aberdeen Growth Opportunities VCT 2and Talisman First Venture Capital Trust in some or all of the abovetransactions and is expected to continue to do so with these as well as otherclients of the Manager. The advantage is that, together, the funds are able tounderwrite a wider range and size of transaction than would be the case on astand alone basis. Co-investment scheme of the Manager A co-investment scheme which allows executive members of the Manager to investalongside the Company was implemented during the year. The scheme operatesthrough a nominee company which invests alongside the Company in each and everytransaction made by the Company, including any follow-on investments. The impact of the scheme in terms of dilution is negligible, but the scheme moreclosely aligns the interests of the executives and the Company's Shareholderswhile introducing an incentive to enable the Manager to retain the existingskills and capacity of its investment team in a highly competitive market. Realisations The year has seen five profitable exits from the unlisted investment portfoliowhich, together, have generated gains of over £4.0 million. All of those exitsoccurred in the second half of the year, although four had been anticipated andtheir valuations in the Interim Report reflected the eventual proceeds. Netgains have also been realised from the AIM portfolio totalling £1.2 million forthe year. Details of all realisations from the portfolio during the year aregiven in the table below: Date first Complete/ Cost Sales Realised invested partial exit of shares proceeds gain/ disposed of (loss) £'000 £'000 £'000UnlistedBond Aviation Solutions 2005 Complete 750 1,302 552EIG (Investments) 2006 Complete 751 1,456 705GW1016/Mercury Inns 2002 Complete 896 469 (427)Heathcotes Restaurants 2001 Complete 1,583 722 (861)Mining Communications 2003 Complete 750 1,180 430Original Shoe Company 2005 Complete 750 750 -Styles & Wood Holdings 2005 Complete 400 1,597 1,197TMI Foods 2003 Complete 230 1,391 1,161Others 328 518 190 Total unlisted 6,438 9,385 2,947 AIMAssetCo 2003 Partial 116 111 (5)Avanti Screenmedia 2005 Partial 99 120 21Axeon 2005 Partial 67 92 25Billing Services Group* 2006 Complete 370 192 (178)Cello Group 2004 Partial 292 359 67Fountains 2004 Partial 84 76 (8)Leisure & Gaming 2005 Partial 188 278 90Mattioli Woods 2005 Partial 93 154 61Synexus 2001 Partial 296 543 247Talarius 2005 Complete 190 471 281Tanfield Group 2004 Partial 263 731 468United Clearing* 2005 Complete 280 370 90Others 215 272 57 Total AIM 2,553 3,769 1,216 Total 8,991 13,154 4,163 *During the year, Billing Services Group used the compulsory purchase provisionsof the Companies Act to acquire United Clearing in a share-for-sharetransaction. Investment strategy The strategy remains to invest in unlisted and AIM companies which offerexcellent growth prospects and to realise capital gains in the medium and longerterm from those investments while maintaining VCT qualifying status. The Companyhas exited from eight major unlisted investments during the year and, in theshort term, it is unlikely that further exits from unlisted investments willoccur until the process of rebuilding the unlisted portfolio is completed. As the process of rebuilding of the portfolio continues, the Board considersthat it may be an appropriate time for the Company to take advantage of itsability to use gearing for the purpose of maintaining its investment strategyand, if necessary, borrow an amount of up to 10% of Net Asset Value. The Manageralso continues to have discretion to make investments in companies which do notrepresent qualifying holdings for VCTs, but always subject to ensuring that theCompany itself continues to qualify as a VCT at all times. Valuation process Investments held by Murray VCT 4 in unquoted companies are valued in accordancewith the International Private Equity and Venture Capital Valuation Guidelines.Investments quoted or traded on a recognised stock exchange, including theAlternative Investment Market ("AIM"), are valued at their bid price. Constitution of the Board As intimated in the 2006 Annual Report, the Board was aware that AnthonyWhitworth intended to retire at the Annual General Meeting to be held on 17 July2007 and he has confirmed to the Board that he does not intend to seekre-election. Anthony has been a Director of the Company since launch and servedas Chairman from October 2002 until July 2005. The Directors would like to takethis opportunity to extend to Anthony the sincere appreciation of the Board forthe significant and valuable contribution he has made to the deliberations ofthe Board during his time in office and for his leadership during the periodwhen he was Chairman, which included a time of some difficulty for the Company. The Board had already put in place a succession plan. During the second half ofthe year, the Directors conducted a thorough selection process, including theuse of an independent agency, before making a final decision on an appointment.As announced on 26 January 2007, John Pocock was appointed as a Director witheffect from 1 March 2007. John is an experienced entrepreneur and will bring tothe Board a breadth of knowledge in the smaller companies and financial servicessectors. As required by company law, John will require to stand for re-electionby Shareholders at the first AGM following his appointment and the Directorshope that Shareholders will support the Board's recommendation and vote infavour of the Resolution put before the meeting. Change of name of the Company Since August 2004, the closest date to when the Manager changed its lead fundmanager, the investment portfolio has undergone a full restructuring. The NAVtotal return has increased by 18.4% and the amount paid in dividends hasincreased from a total of 9.5pps paid in the four years before that date to atotal (including the dividend paid in March and the proposed final dividend) of15.8pps paid in the two and a half years since that date. Over that period, theBoard has had some considerable debate as to whether there were any residualbenefits to the Company and its Shareholders in retaining the name of Murray VCT4 in the longer term. With the full restructuring of the portfolio now largely complete and a clearinvestment strategy for the future having been established, the Board nowconsiders that the time is right for the Company to change its name to AberdeenGrowth and Income VCT PLC. The Directors believe that this name would betterreflect the future direction of the Company and its strategy to continue toinvest in both private and AIM quoted companies and to distribute realisedcapital gains whenever possible, whilst retaining some funds to allow investmentin businesses offering excellent growth prospects. The Board also believes thatthe benefits of the additional marketing expertise and higher profile thatAberdeen can provide outweigh any need for the Company to retain its originalname. A Resolution will, therefore, be put to the Annual General Meeting to proposethat the name of the Company be changed to Aberdeen Growth and Income VCT PLC.The Directors hope that Shareholders will recognise the reasons for this andsupport the proposal. Treasury shares During the year ended 28 February 2007, within established guidelines, theCompany bought back a total of 561,984 shares for cancellation and the Boardintends that the Company should retain its ability to buy back its own shares infuture. The Board have also decided that it would be in the interests ofShareholders for the Company to be able to hold shares in Treasury as well andan appropriate authority will be sought at this year's AGM. This would give theDirectors the ability to re-issue these shares to meet any demand in the marketrather than issue new shares. While shares re-issued from Treasury do notqualify for the initial income tax relief, any dividend payments will betax-free and, on disposal, no capital gains tax will be paid by qualifyingShareholders. Treasury shares may also be cancelled at any time. Outlook Following the successful realisations which occurred during the year, theimmediate focus is to rebuild the unlisted element of a diversified portfolio ofgood quality smaller company assets which will deliver sustained long termperformance. The Manager has completed ten new unlisted and AIM investmentssince the end of the reporting period and has a number of further potentialinvestments in hand. The Manager applies an active management style to both its unlisted and AIMquoted portfolios and this more dynamic approach has resulted in the improvedperformance of the Company over the last two years. If economic conditionsremain favourable, the Directors are optimistic that this level of performancecan be maintained which, in turn, should continue to generate further positivereturns for Shareholders. Murray VCT 4 PLCIncome Statement*For the year ended 28 February 2007 Year ended Year ended 28 February 2007 28 February 2006 (unaudited) (audited) Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Investment income and deposit interest 687 - 687 1,053 - 1,053Investment management fees (141) (563) (704) (165) (660) (825)Other expenses (193) - (193) (187) - (187)Gains on investments - 2,748 2,748 - 1,931 1,931 Profit on ordinary activities before taxation 353 2,185 2,538 701 1,271 1,972 Tax on ordinary activities (51) 51 - (196) 196 - Profit on ordinary activities after taxation 302 2,236 2,538 505 1,467 1,972 Earnings per share (pence) 0.8 6.3 7.1 1.4 4.0 5.4 A Statement of Total Recognised Gains and Losses has not been prepared, as allgains and losses are recognised in the Income Statement. \* The total column of this statement is the Profit and Loss Account of theCompany. Reconciliation of Movements in Shareholders' FundsFor the year ended 28 February 2007 Year ended Year ended 28 February 2007 28 February 2006 (unaudited) (audited) £'000 £'000 Opening Shareholders' funds 28,488 28,632Total profit for year 2,538 1,972Repurchase and cancellation of shares (356) (979)Dividends paid - revenue (286) (406)Dividends paid - capital (1,639) (731) Closing Shareholders' funds 28,745 28,488 MURRAY VCT 4 PLCBALANCE SHEETAs at 28 February 2007 28 February 2007 28 February 2006 (unaudited) (audited) £'000 £'000 £'000 £'000 Investments at fair value through profit or 21,559 27,906lossCurrent assetsDebtors 899 834Cash and overnight deposits 6,922 242 7,821 1,076 CreditorsAmounts falling due within one year 635 494 Net current assets 7,186 582 Net assets 28,745 28,488 Capital and reservesCalled up share capital 3,546 3,602Share premium account 17,235 17,235Realised capital reserve 452 (3,192)Unrealised capital reserve (5,270) (3,862)Capital redemption reserve 339 283Profit and loss account 12,443 14,422 Net assets attributable to Ordinary 28,745 28,488Shareholders Net Asset Value per 81.1 79.1Ordinary Share (pence) MURRAY VCT 4 PLCCASH FLOW STATEMENTFor the year ended 28 February 2007 28 February 2007 28 February 2006 (unaudited) (audited) £'000 £'000 £'000 £'000Operating activitiesInvestment income received 1,065 1,706Deposit interest received 44 23Investment management fees paid (700) (460)Secretarial fees paid (50) (66)Directors' expenses paid (64) (49)Other cash payments (89) (88) Net cash inflow from operating activities 206 1,066 Financial investmentPurchase of investments (6,283) (12,190)Sale of investments 15,038 13,322 Net cash inflow from financial investment 8,755 1,132 Equity dividends paid (1,925) (1,137) Net cash inflow before financing 7,036 1,061 FinancingRepurchase of Ordinary Shares (356) (1,079) Net cash outflow from financing (356) (1,079) Increase/(decrease) in cash 6,680 (18) MURRAY VCT 4 PLC Other information (unaudited) This Preliminary Announcement has been prepared on the same basis as the AnnualReport and Financial Statements for the year ended 28 February 2006. Although the Company is no longer an investment company, as investment companystatus was revoked in order to permit the distribution of capital profits, theDirectors believe that the presentation of the Income Statement is enhanced byshowing additional non-statutory information on the returns attributable torevenue and to capital. In respect of the year ended 28 February 2007, earnings per Ordinary Share havebeen calculated using the weighted average number of shares in issue during theyear of 35,650,705 (2006: 36,988,753). Net Asset Value per Ordinary Share as at28 February 2007 has been calculated using the number of share in issue at thatdate of 35,463,992 (2006: 36,025,976). A summary of investment changes for the year ended 28 February 2007 and aportfolio summary as at 28 February 2007 are attached. The results for the year ended 28 February 2007 will be filed with the Registrarof Companies and a full copy of the Annual Report and Financial Statements willbe printed and issued to Shareholders. The financial information contained within this Preliminary Announcement doesnot constitute the Company's statutory Financial Statements as defined inSection 240 of the Companies Act 1985. The statutory Financial Statements forthe year ended 28 February 2006 have been delivered to the Registrar ofCompanies and contained an audit report which was unqualified and did notconstitute statements under Sections 237(2) or (3) of the Companies Act 1985. The Annual General Meeting will be held on 17 July 2007, commencing at 2.15 p.m. Copies of this announcement will be available to the public at the registeredoffice of the Company, One Bow Churchyard, Cheapside, London EC4M 9HH and at theoffice of Aberdeen Asset Managers Limited, 123 St Vincent Street, Glasgow G25EA. By Order of the BoardMurray Johnstone LimitedSecretary 26 April 2007 MURRAY VCT 4 PLCSUMMARY OF INVESTMENT CHANGESFor the year ended 28 February 2007 (unaudited) Net investment/ Appreciation/ Valuation Valuation 28 February 2006 (disinvestment) (depreciation) 28 February 2007 £'000 % £'000 £'000 £'000 % Unlisted investments Equities 6,305 22.1 (4,669) 4,358 5,994 20.9 Preference shares 657 2.3 (176) 269 750 2.6 Loan stocks 10,732 37.7 (1,054) (2,003) 7,675 26.7 17,694 62.1 (5,899) 2,624 14,419 50.2 AIM investments Equities 8,357 29.4 (2,323) 131 6,165 21.4 Listed investments Fixed income 1,855 6.5 (873) (7) 975 3.4 Total investments 27,906 98.0 (9,095) 2,748 21,559 75.0 Net current assets 582 2.0 6,604 - 7,186 25.0 Net assets 28,488 100.0 (2,491) 2,748 28,745 100.0 MURRAY VCT 4 PLCINVESTMENT PORTFOLIO SUMMARYAs at 28 February 2007 (unaudited) Bookcost Valuation % of net % of equity % of equity held by other Nature of business £'000 £'000 assets held clientsUnlisted investmentsTransys Projects Engineering services to the 825 10.0 rail industry 2,874 20.9 20.9TLC (Tender Loving Operator of daycare nurseries 1,516 5.3 23.2 -Childcare) 1,516House of Dorchester Speciality chocolate 910 4.7 manufacturer 1,338 44.2 -RMS Europe Provider of stevedoring and 784 3.9 ships agency services 1,117 9.7 20.4MoneyPlus Group Arranger and manager of debt 750 3.5 management plans and IVAs 1,016 15.0 16.0PSCA International Producer of publications aimed 660 3.3 at public sector officials 949 7.6 15.5Homelux Nenplas Manufacturer of tile trims and 522 2.9 related products 826 8.9 36.1Crossco 982 (Martel Manufacturer of hand-held 796 2.8Instruments) printers and terminals 796 11.3 22.1Oliver Kay Holdings Distributor of fresh produce to 771 771 2.7 4.9 15.1 the on-trade catering industryAstraeus Charter airline 751 751 2.6 4.5 20.0ELE Advanced Precision engineering 342 565 2.0 11.3 -TechnologiesPLM Dollar Group On-shore helicopter services 402 402 1.4 4.6 26.2Sanastro Business to business financial 750 402 1.4 9.6 publishing 3.5Voxsurf Software development 750 309 1.1 4.8 -Driver Hire Supplier of temporary drivers 171 166 0.6 1.0 38.7Enpure Holdings Project engineering in the 100 0.3 0.4 79.2 water and waste water sector 100The BigWord Holdings Translation services 99 99 0.3 - -Buildstore On-line services to self-build 98 98 0.3 0.8 homeowners 9.2Unique Communications TV production and 798 66 0.2 5.5 7.5 communications consultancyRiverdale Publishing Greeting cards publisher 343 59 0.2 4.0 7.7Other unlisted 7,624 199 0.7investments (13) 19,762 14,419 50.2 AIM investmentsTanfield Group Technical solutions and 110 923 3.2 0.4 0.3 manufacturing groupCello Group Marketing and media services 459 2.1 1.3 0.5 600Strategic Retail Retailer of home furnishings 700 2.0 2.6 2.6 574Concateno Provider of services for the 270 1.5 0.7 1.9 testing of employees for drugs 427 and alcoholAvanti Screenmedia Provider of screens and media 322 1.4 0.6 1.0 advertising 409Synexus Clinical trials 328 1.2 1.8 1.3 339Amazing Holdings Leisure and hotel developer 251 0.8 0.9 1.4 220AT Communications Leading communications 301 0.7 1.4 0.6Group integrator 208 Hasgrove Provider of communication 174 0.7 0.8 1.5 services in public relations 206Imprint Provider of recruitment and 203 0.7 0.2 0.4 search services 192Individual Restaurant Restaurant operator 132 0.7 0.4 0.9Company 187Axeon Developer of semi-conductor 184 0.6 1.3 6.7 intellectual properties 180Brulines (Holdings) Provider of data systems that 121 156 0.5 0.4 0.9 monitor the through flow of beer in pubsSystem C Healthcare Provider of information 311 156 0.5 0.6 0.7 services and IT systems to the healthcare sectorFountains Land management services 168 154 0.5 0.9 0.9Autoclenz Provider of valeting services 185 141 0.5 1.2 0.3Careforce Group Provider of domiciliary care 137 140 0.5 0.9 0.4 servicesInspicio Acqusition and management of 71 120 0.4 0.1 0.1 businesses in the inspection and testing sectorMattioli Woods Provider of pension 60 111 0.4 0.3 consultancy, troubleshooting - and administration servicesPublic Recruitment Public sector staffing in 467 103 0.4 1.0 0.7Group healthcare and education1st Dental Provider of dental laboratory 180 102 0.4 1.4Laboratories services -Hexagon Human Capital Executive search and 99 100 0.3 0.3 0.7 recruitmentTangent Digital printing and marketing 99 97 0.3 0.5 0.9Communications services companyAssetCo Manufacture and supply of 56 87 0.3 1.1 0.7 equipment for the emergency servicesNeutrahealth Provider of BioCare products to 91 78 0.3 0.6 1.4 health practitioners and specialist retailersSpectrum Interactive Provider of payphones and 209 70 0.2 0.7 0.9 internet access throughout the UKCitel Technologies Integrated solutions for the 170 53 0.2 0.5 telephony and communications - sectorLeisure & Gaming Provider of on-line gaming 314 32 0.1 0.4 0.3 servicesAward International Sourcing and delivery of 350 10.8 7.7Holdings merchandising materials - -Elevation Events Events management 200 - - 3.4 7.2Group 6,722 6,165 21.4 Listed fixed income investmentsTreasury 4.5% 2007 975 975 3.4 Total investments 27,459 21,559 75.0 This information is provided by RNS The company news service from the London Stock Exchange