Maven Income and Growth VCT 2 Regulatory News (MIG2)

30 Mar 2005 17:29

Aberdeen Growth VCT1 PLC30 March 2005 Aberdeen Growth VCT I PLC The Directors announce the preliminary results, subject to the conclusion of theaudit process, for the year ended 31 January 2005. • 46 investments in the unlisted and AIM portfolio at 31 January 2005, with a total cost of £12.98 million. • 80.3% of the Company's investments are in qualifying holdings. • Net Asset Value of 74.0p per share. • Proposed final dividend of 0.57p per Ordinary share. Investment activity During the year ended 31 January 2005, fourteen new unlisted and AIM investmentswere made at a total cost of £3.05 million. Forty-six unlisted and AIMinvestments, with a total cost of £12.98 million, had been completed as at 31January 2005, which represented a qualifying investment level of 80.3%. The following new investments have been made since the publication of theInterim Report: Deckflat Limited (September 2004) - £500,000. Deckflat (trading as Cash BasesLimited) is a designer and manufacturer of customised cash drawers used as partof an electronic point of sale ('EPOS') installation. The total fundraising was£2 million and Aberdeen Growth Opportunities VCT PLC and Aberdeen DevelopmentCapital PLC were co-investors. Driver Hire Limited (September 2004) - £106,926. Driver Hire is a supplier oftemporary professional drivers. The total fundraising was £8.875 million andAberdeen Murray Johnstone Private Equity Fund, Murray VCT PLC, Murray VCT 2 PLC,Murray VCT 3 PLC, Murray VCT 4 PLC, Aberdeen Growth Opportunities VCT PLC, SouthYorkshire Pensions Authority and West Yorkshire Pension Fund were co-investors. Begbies Traynor Group plc(*) (October 2004) - £250,494. Based in Preston,Begbies is a leading independent insolvency, corporate rescue and recoveryspecialist. Cello Group plc (*) (November 2004) - £128,000. Based in Cheltenham, Edinburghand London, Cello is a group of companies involved in the marketing services/communications sector. Augean plc (*) (November 2004) - £210,001. Based in London, Augean is a group ofbusinesses involved in the UK water management and water supply sectors. (*) Quoted on AIM Portfolio developments The portfolio of private equity investments is still fairly immature and,therefore, exits are not being actively sought at present; however, on anopportunistic basis, sales will be considered where they offer particularlyattractive returns. Encouragingly, several portfolio companies are producing good tradingperformances which, if sustained, offer the prospect of meaningful medium termcapital gains. Where performance has not been in line with expectations,increased attention has been devoted to the company by the Manager and analternative strategy developed. The portfolio of AIM investments is widely spread and is being actively managedto optimise performance from this class of investments. Performance The Net Asset Value (NAV) per share at 31 January 2005 was 74.0p, compared with64.5p at 31 July 2004 and 68.6p at 31 January 2004. This increase in NAV of 7.9%over the year, and 14.7% for the six months from 31 July 2004, can be comparedwith the increase in stock market indices generally and, in particular, the FTSESmallCap Index, which rose by 12.4% over the year, and the FTSE AIM Index, whichrose by 21.9%. The NAV includes the benefit of the Aberdeen Progressive GrowthUnit Trust Uplift Plan which amounts to 4.6p, of which 0.8p was paid in earlyFebruary 2005; the balance, which will recover at least the cost of theinvestment in that fund, will be paid in April 2006 when the holding will beredeemed. Analysing the balance of the increase over the year of 0.8p in the NAV perOrdinary share of the Company, 1.7p is accounted for by the rise in the listedportfolio and 2.0p by the rise in the AIM portfolio, offset by a 1.5p reductionin the unlisted portfolio and 1.4p of capitalised management fees and taxation.The increase in NAV over the second half of the year, excluding the effect ofthe Uplift Plan, arises from an increase of 3.9p from the AIM portfolio, anincrease of 1.3p from the listed portfolio and an increase of 0.3p from theunlisted portfolio. The unlisted investments held by the Company fall into two categories: earlierstage investments, which are normally valued at cost provided development plansare being achieved in line with expectations; and later stage, managementbuy-out/buy-ins and development capital investments, which are held at cost forat least one year. A number of the latter type of investment have previouslybeen provided against, but the Directors are pleased to say that there are somemore promising signs in terms of performance elsewhere in the portfolio, whichmay be reflected in due course in the overall valuation. The Company has also a significant proportion of its investments in companiesquoted on AIM. The AIM market has risen substantially over the past year and theportfolio held by the Company has also risen in line with this overall marketmovement. The most important measures for a VCT are the long term record of income andcapital gains dividend payments and the timing of those payments over the lifeof the company. In the short term, the NAV on its own is a less importantmeasure of performance as the underlying investments are long-term in nature andnot readily realisable. Investment strategy Although more than 70% of the Company's investments are in qualifying holdings,the Company is continuing to build its portfolio of investments but will retainsufficient capacity to support its existing portfolio companies, particularlythose of an early stage nature where further rounds of funding are inherent inthat type of investment. The Manager is engaged in active portfolio managementto help maintain performance of the investee companies and to be in the bestposition to judge which of these investments justify further support. Co-investment Aberdeen Growth VCT I has co-invested with other funds managed by the AberdeenAsset Management Group in a number of investments and is expected to continue todo so. The advantages are that, together, the funds are able to underwrite awider range and size of transaction than would otherwise be the case. Valuation process Investments held by Aberdeen Growth VCT I in unquoted companies are valued atfair value in accordance with the British Venture Capital Associationguidelines. In accordance with normal market practice, investments listed on theAlternative Investment Market ("AIM") or a recognised stock exchange are valuedat their mid-market price, discounted where necessary to reflect any tradingrestrictions. Dividends It was stated in the Company's Prospectus that in the early years dividends, ifany, would be small until such time as capital realisations occurred. The Boarddid not declare an interim dividend but recommends a final dividend of 0.57p pershare, to be paid on 17 June 2005 to Shareholders on the register on 27 May2005. Income flow and the timing of realisations and the resulting distributionsof capital gains will be unpredictable and the dividend stream is likely to varyfrom year to year. Constitution of the Board On 31 August 2004, and as disclosed in the Interim Report, the Board announcedthe appointment of The Hon Robert Kissin as an independent non-executiveDirector, with effect from 1 September 2004. He established and managed Lewis &Peat Merchant Bank Limited in 1973 and subsequently, as a director of GuinnessPeat Group Limited, was responsible for international projects and finance inthe Middle and Far East. Having been appointed Chairman of Lewis & Peat Inc in1981, he was responsible for the Guinness Peat Group's American tradingactivities and, since 1990, he has been involved in a number of energy relatedprojects in America and Central Asia. On 8 December 2004, the Board announced that it had accepted the resignation ofMr Paul Lee as a Director, with effect from 8 December 2004, due to increasingcommitments with his other businesses. The Directors thank Mr Lee for hiscontribution to the Board's deliberations during his time in office and wish himwell for the future. The Manager With effect from 27 September 2004, Mr Bill Nixon, who is responsible for themanagement of Aberdeen Growth Opportunities VCT PLC and Aberdeen GrowthOpportunities VCT 2 PLC, replaced Mr John Simpson as principal fund manager forthe Company. Outlook In the light of the recent performance in the AIM market, the Manager has made anumber of partial realisations from stocks that have shown substantial priceincreases. The Manager intends to continue this policy and will also seek torealise some of the AIM holdings which have been held for some time with a viewto refreshing the AIM portfolio by investing on a selective basis in a number ofthe AIM placings that the Manager anticipates will come to the market during theremainder of 2005. The Manager will ensure, on behalf of the Company, that anacceptable qualifying investment level is maintained at all times. Aberdeen Growth VCT I will also continue to invest in new unquoted investmentsto increase the size of the portfolio and thereby spread the risk. The regionalnetwork of Aberdeen Murray Johnstone Private Equity offices continues to see asteady flow of investment opportunities, despite the very competitive marketenvironment. The Manager will continue to work with the portfolio of investeecompanies in order to maximise proceeds from eventual exits. The Board and Manager remain confident that the wide spread of investmentsleaves the Company well positioned for the future. Aberdeen Growth VCT I PLC Statement of Total Return (Incorporating the Revenue Account*) For the Year to 31 January 2005 Year ended Year ended 31 January 2005 31 January 2004 (unaudited) (audited) Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains on investments 1,547 1,547 - 2,167 2,167 - Income from investments 414 - 414 411 - 411Other income 15 - 15 6 - 6Investment management fees (46) (411) (457) (35) (320) (355)Other expenses (218) - (218) (213) - (213) Net return on ordinary activities before 165 1,136 1,301 169 1,847 2,016taxation Tax on ordinary activities (25) 25 (26) 23 (3) - Return attributable to equity shareholders 140 1,161 1,301 143 1,870 2,013 Ordinary dividends on equity shares (137) - (137) (140) - (140) Transfer to reserves 3 1,161 1,164 3 1,870 1,873 Return per Ordinary share (pence) 0.58 4.76 5.34 0.58 7.62 8.20 * The revenue column of this statement is the profit and loss account of theCompany. ABERDEEN GROWTH VCT I PLC BALANCE SHEET As at 31 January 2005 31 January 2005 31 January 2004 (unaudited) (audited) £'000 £'000 £'000 £'000 Fixed assets Investments 16,399 13,100 Current assets Debtors 571 241 Debtors due after 1 year 910 - Cash and overnight deposits 3,919 66 1,547 4,160 Creditors Amounts falling due within one year 235 451 Net current assets 1,312 3,709 Net assets 17,711 16,809 Capital and reserves Called up share capital 2,393 2,451 Share premium account 10,535 10,535 Capital reserve - realised (5,454) (5,087) Capital reserve - unrealised 116 (1,412) Distributable reserve 10,046 10,308 Capital redemption reserve 67 9 Revenue reserve 8 5 Equity Shareholders' funds 17,711 16,809 Net Asset Value per Ordinary share (pence) 74.0 68.6 ABERDEEN GROWTH VCT I PLC CASH FLOW STATEMENT For the Year ended 31 January 2005 Year ended Year ended 31 January 2005 31 January 2004 (unaudited) (audited) £'000 £'000 £'000 £'000 Operating activities Investment income received 292 337 Deposit interest received 15 7 Other income 84 - Investment management fees paid (542) (375) Secretarial fees paid (64) (76) Directors' expenses paid (65) (94) Other cash payments (98) (102) Net cash outflow from operating activities (378) (303) Financial investment Purchase of investments (5,934) (10,492) Sale of investments 2,829 14,755 Net cash (outflow)/inflow from financialinvestment (3,105) 4,263 Equity dividends paid (140) (169) Net cash (outflow)/inflow before use of liquidresources and financing (3,623) 3,791 Financing Issue of Ordinary shares - 51 Repurchase of Ordinary shares (230) (42) Net cash (outflow)/inflow from financing (230) 9 (Decrease)/increase in cash (3,853) 3,800 This Preliminary Announcement has been prepared on the same basis as that setout in the statutory Financial Statements for the prior year. In respect of the year ended 31 January 2005, returns per Ordinary share havebeen calculated using the average number of shares in issue during the year of24,383,822. Net Asset Value per Ordinary share as at 31 January 2005 has beencalculated using the number of shares in issue at that date of 23,930,935. A summary of investment changes for the year ended 31 January 2005 and aninvestment portfolio summary as at 31 January 2005 are attached. A full copy of the Annual Report and Financial Statements will be printed andissued 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 31 January 2004 have been delivered to the Registrar of Companiesand contained an audit report which was unqualified and did not constitutestatements under Sections 237(2) or (3) of the Companies Act 1985. The Annual General Meeting will be held on 22 June 2005, commencing at 10.30a.m. Copies of this announcement will be available to the public at the office ofAberdeen Asset Managers Limited, 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 SECRETARIES 30 March 2005 ABERDEEN GROWTH VCT I PLC SUMMARY OF INVESTMENT CHANGES For the year ended 31 January 2005 Valuation Net investment/ Appreciation/ Valuation 31 January 2004 (disinvestment) (depreciation) 31 January 2005 £'000 % £'000 £'000 £'000 %Unlisted investments Equities 1,749 10.4 592 255 2,596 14.7 Fixed income 3,812 22.7 1,270 (706) 4,376 24.7 5,561 33.1 1,862 (451) 6,972 39.4 AIM investments Equities 3,533 21.0 473 6,166 34.8 2,160 UK authorised unit 1,588 9.4 415 2,003 11.3trusts - Listed investments Fixed income 2,418 14.4 (1,172) 12 1,258 7.1 Total investments 13,100 77.9 2,850 449 16,399 92.6 Other net assets 3,709 22.1 (3,495) 1,098 1,312 7.4 Net assets* 16,809 100.0 (645) 1,547 17,711 100.0 *Net assets represents Equity Shareholders' funds. ABERDEEN GROWTH VCT I PLC INVESTMENT PORTFOLIO SUMMARY As at 31 January 2005 % of Valuation total Nature of business £'000 assets Unlisted investments PSCA International Government sector publishing 665 3.8 Axeon Developer of semiconductor intellectual property 500 2.8 rights Deckflat Design and manufacture of customised cash drawers 500 2.8 Llanllyr Water Company Extraction and bottling of mineral spring water 500 2.8 Transrent Holdings Provider of trailer and transport solution services 450 2.5 Citel Technologies Telephony hardware developer 436 2.5 Albanet Provider of network services 408 2.3 Elam-T Developer of flat screen technologies 379 2.2 Amgas Manufacturer of gas sensors for application in oil 371 2.1 and gas exploration Essential Viewing Systems Software developer 350 2.0 Room 2 Retailer of household textiles, furniture, 350 2.0 lighting and home accessories Mining Communications Publisher of mining related journals and magazines 340 1.9 ScotNursing Provider of temporary and agency nursing and care 315 1.8 staff Palgrave Brown (Holdings) Manufacturer of timber products 298 1.7 Enterprise Food Group Provider of supply chain and management services to 285 1.6 the bakery industry RMS Europe Port operator 273 1.6 Inovas Software developer 200 1.1 PLM Dollar Group Operator of commercial helicopter fleet 119 0.7 Driver Hire Supplier of temporary professional drivers 107 0.6 GW 1016 Hotel operator 107 0.6 Businesshealth Group Provider of health management services 19 - IS Holdings Provider of biometric software solutions - - Mercury Inns Group Operator of freehold food-led pubs and consultancy - - services Tuscan Energy Group Oil production - - 6,972 39.4 AIM investments Cardpoint Operator of low-cost network of ATMs 1,176 6.6 Glisten Manufacturer of confectionary 625 3.5 Avanti Screen Media Provider of screens and media advertising content 474 2.7 Begbies Traynor Independent insolvency and rescue recovery 436 2.5 specialist Imagesound Provider of background message services 341 1.9 Tikit Group Provider of consultancy services and software 330 1.8 solutions Tanfield Technical solutions and manufacturing group 319 1.8 Dipford Group Specialist corporate finance boutique 310 1.8 Augean Group of companies in water management and water 281 1.6 supply sector Intelligent Environments Supply and production of integrated e-financial 256 1.5 products UBC Media Group Provider of content to various media platforms 206 1.2 Public Recruitment Group Suppliers of doctors and teachers to the state 201 1.0 sector Fountains Specialist environmental services provider 167 0.9 Cello Group Group of companies in the marketing and media 166 0.9 services industry Corpora Specialist provider of knowledge management software 157 0.9 Hartford Operator of restaurants and wine bars 130 0.7 Business Serve Internet service provider 124 0.7 Elevation Events Provider of management events and corporate 122 0.7 hospitality Lloyds British Testing Provider of lifting equipment services 115 0.7 Award International Holdings Niche supplier of marketing and merchandising 79 0.5 Asfare Manufacture and supply of equipment for the 56 0.3 emergency services Blooms of Bressingham Operator of retail garden centres 48 0.3 Corac Group Provider of oil-free engineering products 47 0.3 6,166 34.8 UK authorised unit trusts Aberdeen Progressive Growth Unit Trust 1,714 9.7 Aberdeen UK Growth Unit Trust 289 1.6 2,003 11.3 Listed fixed income investments Conversion 9.5% 18/4/05 728 4.1 Treasury 7.75% 8/9/06 530 3.0 1,258 7.2 Total investments 16,399 92.6 END This information is provided by RNS The company news service from the London Stock Exchange