Maven Income and Growth VCT 2 Regulatory News (MIG2)

28 Mar 2007 17:07

Aberdeen Growth VCT1 PLC28 March 2007 Aberdeen Growth VCT I PLC The Directors announce the unaudited preliminary results for the year ended 31January 2007, which were approved by the Board on 28 March 2007, and are pleasedto report continuing improvement in the performance of the Company over the pastyear. Among the highlights are: • NAV at year end of 73.8p per share (pps) up 6.9% over the year (after adjusting for dividends paid). • Total Return since inception of 81.22pps at year end, up 6.7% over the year. • Five successful exits from unlisted companies during the year generating gains of 11.0pps. • Net realised gains from AIM stocks of 2.1pps for the year. • Capital dividends paid during the year of 4.0pps. • Final revenue dividend proposed of 0.5pps. Performance The Net Asset Value (NAV) per Ordinary share at 31 January 2007, before paymentof the proposed final dividend was 73.8pps compared with 73.9pps at 31 January2006. The NAV has increased by 6.9% compared to the value at 31 January 2006,after adjusting for the dividends of 3.2pps paid in June 2006 and 2.0pps paid inDecember 2006. This compares with a decrease in the FTSE AIM All-share Index of5.3%. 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 total return per Ordinary Share at 31 January 2007 was81.22pps, an increase of 6.7% over the equivalent figure at January 2006. Since 31 July 2004, the reporting date closest to that of the change of leadfund manager, the NAV total return since inception has increased by 24.6%, whichthe Board considers to be a highly commendable achievement. During that period,the Company has been able to pay an increasing level of dividend, with theamount paid to Shareholders during the year under review being more than doublethe aggregate of all previous payments. This trend, along with a stable NAV, hascontributed to the improvement in total return. Dividends The Company revoked investment company status during the year which enabled thecapital dividend of 2.0pps to be paid in June 2006 and a further capitaldividend of 2.0pps in November 2006. The Board is now recommending the paymentof a final revenue dividend of 0.5pps, to be paid on 22 June 2007 toShareholders on the register on 25 May 2007. Final dividends are paid from theexcess available from the revenue account and the amount available for thecurrent year has reduced compared to the prior year because of provisions takenagainst income due from investee companies where the Manager no longer believesthat the income will be recoverable. The effect of paying the proposed dividendwill be to reduce the NAV to 73.3pps. The Board intends to continue to pay regular dividends from realised gains andhopes that the level of payment will increase further over time, although thiscannot be guaranteed. While not making a formal forecast, the Board expects tothe Company to pay dividends totalling at least 4.0pps during the year ending 31January 2008, equivalent to an annual yield of 6.7% to a high-rate tax payer onan effective initial investment of 80p. All dividends are paid tax-free toShareholders and, upon payment of the proposed final dividend and since theCompany's launch, Shareholders will have received 7.92pps. Investment strategy The strategy remains to invest in unlisted and AIM quoted 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 a number of major unlisted investments during the year and, inthe short term, there is a need to rebuild the portfolio and it is unlikely thatfurther exits from unlisted investments will occur in the short term. Investment activity During the year ended 31 January 2007, seventeen new unlisted and AIMinvestments were completed and a total of £4.0 million was invested. At the yearend, the portfolio stood at 56 unlisted and AIM investments at a total cost of£14.4 million. Since 31 January 2007, four further new unlisted investments havebeen made at a cost of £1,566,000. The following new investments have been completed during the year: Investment Date Activity Invested Website cost £'000UnlistedBuildstore Sep 2006 On-line services to the self- 99 www.buildstore.co.uk build sectorCrossco (982) Jan 2007 Production of hand-held 482 www.martelinstruments.com(Martel printers and terminalsInstruments)Enpure Holdings Nov 2006 Project engineering in the 100 www.enpure.co.uk water and waste water sectorHomelux Nenplas May 2006 Manufacturer of tile trims and 323 www.homelux.co.uk other wet room furnishing accessoriesIRW Systems Apr 2006 Provider of software solutions 90 www.irw.co.uk and servicesOliver Kay Holdings Jan 2007 Distributor of fresh produce 458 www.oliverkayproduce.co.uk to the on-trade catering industryAIMBrulines (Holdings) Oct 2006 System for monitoring flow 101 www.brulines.co.uk rates of beer in public housesCohort Feb 2006 Technical advisory services 192 www.cohortplc.com and systems to the defence sectorConcateno Oct 2006 Alcohol and drugs testing 149 www.concateno.com services for employersDebts.co.uk May 2006 Specialist advice for personal 51 www.debts.co.uk debt managementFairground Gaming Jun 2006 On-line gaming 100 www.fairgroundgaming.comHoldingsHasgrove Nov 2006 Communication services for 100 www.hasgrove.com public relationsIndividual Dec 2006 Restaurant operator 105 www.individualrestaurants.co.ukRestaurant Company Interactive World Apr 2006 Digital media content for 177 www.interactiveworld.com mobile phonesNetservices Mar 2006 Network services provider 200 www.netservicesplc.com Work Group Feb 2006 Recruitment services 251 www.workcomms.com Worthington Jun 2006 Installation and maintenance 176 www.worthington-nicholls.co.uk Nicholls Group of air conditioning systems Co-investment Aberdeen Growth VCT I has co-invested with Aberdeen Development Capital,Aberdeen Growth Opportunities VCT, Aberdeen Growth Opportunities VCT 2, MurrayVCT 4 and 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 small, 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. Portfolio developments Aberdeen Growth VCT I has an objective of building a diversified portfolio ofunlisted and AIM investments with good growth prospects and, therefore, theopportunity to generate capital gains in the medium and longer term. In theInterim Report reference was made to the increasing maturity of a number of theprivate equity investments and further realisations being expected over thecourse of the remainder of the year. During the year, exits from the unlisted investment portfolio have generated netgains of over £2.4 million over the original cost. One of those exits, TravelClass, occurred in the first half of the year and the gain on sale of £576,000was recorded in the Interim Report. The sale of Bond Aviation Solutions, EIG(Investments), Mining Communications and Styles & Wood Holdings all took placein the latter half of the year and produced gains of £346,000, £468,000,£181,000 and £898,000 over cost respectively for the Company. In aggregate, thegains realised from these five major disposals are equivalent to 11.0pps. The AIM portfolio continued to be actively traded and net gains of £478,000 overcost were generated during the year, representing 2.1pps to Shareholders. Thisperformance compares favourably with the AIM Market; the AIM All-share Indexfell over the course of the year by 5.3% while the Company's AIM portfolioachieved an increase of 1.1% over the same period after taking account ofrealised gains when compared to values at 31 January 2006. Details of all realisations from the portfolio during the year are given in thetable below: Date first Complete/ Cost of shares Sales proceeds Realised gain/ invested disposed of partial exit (loss) £'000 £'000 £'000UnlistedBond Aviation Solutions 2005 Complete 500 846 346EIG (Investments) 2006 Complete 501 969 468GW1016/Mercury Inns Group 2002 Complete 299 156 (143)Mining Communications 2003 Complete 340 521 181Styles & Wood Holdings 2005 Complete 300 1,198 898Travel Class 2005 Complete 385 961 576Others 553 642 89Total unlisted 2,878 5,293 2,415 AIMAvanti Screenmedia 2005 Partial 64 98 34Axeon 2005 Partial 181 267 86Billing Services Group* 2006 Complete 187 97 (90)Imagesound 2006 Partial 113 41 (72)Legend Communications 2004 Partial 150 77 (73)Leisure & Gaming 2005 Partial 39 71 32Netservices 2006 Complete 200 220 20Software Radio Technology 2005 Partial 40 72 32Talarius 2005 Complete 189 441 252Tanfield Group 2004 Partial 132 365 233United Clearing* 2005 Complete 287 314 27Others 216 213 (3)Total AIM 1,798 2,276 478 Total 4,676 7,569 2,893 *During the year, Billing Services Group used the compulsory purchase provisionsof the Companies Act to acquire United Clearing in a share-for-sharetransaction. The early realisations from unlisted investments has resulted in a portfoliowhich is weighted more towards AIM stocks than previously; this has arisen dueto circumstances rather than by design and the Manager had completed two newunlisted investments by 31 January 2007, with a further healthy pipeline ofin-progress transactions which will begin to redress the balance back in favourof the majority of assets being invested in unlisted companies. In contrast to the realised gains mentioned previously, details of which can befound in the table above, unrealised losses compared to valuations at January2006 totalling £716,000 arose on the investment portfolio. Of the total, £1.4million arose on unlisted investments with gains of £60,000 arising on AIMinvestments. The major reductions in value in the unlisted portfolio occurred onTransrent Holdings (£872,000), Kingsley Cards (£500,000) and Albanet (£408,000)all of which ceased to trade during the year and resulting in full provisionsbeing taken against their cost. In contrast, the valuation of Cash Bases,Homelux Nenplas and RMS Europe were increased by £500,000, £188,000 and £222,000respectively to reflect the improved profitability of those companies. The major changes in the valuation of AIM investments were increases in thevalues of Tanfield Group (£278,000) and Worthington Nicholls Group (£309,000),partly offset by reductions in the value of Axeon (£162,000), Citel Technologies(£193,000) and Leisure & Gaming (£100,000) where legislation was introduced inthe US to outlaw internet gambling and which reduced the value of all companiesin that sector. In addition, Elevation Events ceased to trade during the yearresulting in a write down of £103,000 in its value. The settlement of the compensation scheme in respect of the Aberdeen ProgressiveGrowth Fund was received during the year, recovering the full amount that hadbeen invested (£2.8 million) and which had been recognised in the 2006 FinancialStatements. Investments in the unlisted portfolio are generally trading well but, if thereis any underperformance, particular attention is paid to those companies by theManager to effect an improvement and protect the value of the investment. Valuation process Investments held by Aberdeen Growth VCT I in unquoted companies are valued inaccordance with the International Private Equity and Venture Capital ValuationGuidelines. Investments quoted or traded on a recognised stock exchange,including the Alternative Investment Market (AIM), are valued at their bidprice. Outlook Following the significant level of profitable realisations which occurred duringthe year, the immediate focus has changed to rebuilding the unlisted element ofa diversified portfolio of high quality smaller company assets which willdeliver sustained long-term performance, through capital appreciation and asubstantial revenue yield. The Manager completed two new unlisted investmentstowards the end of the financial year and has a number of further potentialinvestments in hand which will form the basis of the next step in this process. 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 believe that this level of performance can bemaintained which, in turn, should continue to generate further positive returnsfor Shareholders. Aberdeen Growth VCT I PLC INCOME Statement* For the year ended 31 January 2007 Year ended Year ended 31 January 2007 31 January 2006 (unaudited) (audited) Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains on investments - 1,373 1,373 - 74 74Income from investments 398 - 398 579 - 579Other income 19 - 19 20 - 20Investment management fees (49) (442) (491) (48) (437) (485)Other expenses (219) - (219) (219) - (219)Net return/(loss) on ordinary activities 149 931 1,080 332 (363) (31)before tax Tax on ordinary activities - - - (66) 66 -Profit/(loss) attributable to equity 149 931 1,080 266 (297) (31)Shareholders Earnings per Ordinary Share (pence) 0.66 4.12 4.78 1.14 (1.27) (0.13) * The total column of this statement is the Profit and Loss Account of theCompany. A Statement of Total Recognised Gains and Losses has not been prepared as allgains and losses are recognised in the Income Statement. ABERDEEN GROWTH VCT I PLCRECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDSFor the year ended 31 January 2007 Year ended Year ended 31 January 2007 31 January 2006 (unaudited) (audited) £'000 £'000 Opening Shareholders' funds 16,943 17,616Total profit/(loss) for the year 1,080 (31)Repurchase and cancellation of shares (241) (505)Dividends paid - revenue (273) (137)Dividends paid - capital (908) -Closing Shareholders' funds 16,601 16,943 ABERDEEN GROWTH VCT I PLCBALANCE SHEETAs at 31 January 2007 31 January 2007 31 January 2006 (unaudited) (audited) £'000 £'000 £'000 £'000Investments at fair value through profit and 12,015 15,754loss Current assetsDebtors 638 1,076Cash and overnight deposits 4,000 302 4,638 1,378 CreditorsAmounts falling due within one year (52) (189)Net current assets 4,586 1,189 Net assets 16,601 16,943 Capital and reservesCalled up share capital 2,248 2,293Share premium account 10,535 10,535Capital reserve - realised (2,157) (4,427)Capital reserve - unrealised (2,779) (1,440)Distributable reserve 8,392 9,541Capital redemption reserve 212 167Revenue reserve 150 274Equity Shareholders' funds 16,601 16,943 Net Asset Value per Ordinary Share (pence) 73.8 73.9 ABERDEEN GROWTH VCT I PLCCASH FLOW STATEMENTFor the year ended 31 January 2007 Year ended Year ended 31 January 2007 31 January 2006 (unaudited) (audited) £'000 £'000 £'000 £'000Operating activitiesInvestment income received 523 531Deposit interest received 17 19Investment management fees paid (593) (383)Secretarial fees paid (85) (65)Directors' expenses paid (71) (72)Other cash payments (103) (58)Net cash outflow from operating activities (312) (28) Financial investmentPurchase of investments (6,358) (6,782)Sale of investments 11,790 7,720Net cash inflow from financial investment 5,432 938 Equity dividends paid (1,181) (137) Net cash inflow before financing 3,939 773 FinancingShare repurchases (241) (537)Net cash outflow from financing (241) (537) Increase in cash 3,698 236 Aberdeen Growth VCT I PLC Other information (unaudited) This Preliminary Announcement has been prepared on the same basis as the AnnualReport and Financial Statements for the year ended 31 January 2006. In respect of the year ended 31 January 2007, earnings per Ordinary Share havebeen calculated using the average number of Ordinary Shares in issue during theyear of 22,601,544 (2006: 23,413,707). Net Asset Value per Ordinary Share as at31 January 2007 has been calculated using the number of Ordinary Shares in issueat that date of 22,483,497(2006: 22,928,195). A summary of investment changes for the year ended 31 January 2007 and aninvestment portfolio summary as at 31 January 2007 are attached. The Annual Report and Financial Statements for the year ended 31 January 2007will be filed with the Registrar of Companies and issued to Shareholders in duecourse. 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 2006 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 12 June 2007, 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 PLCSECRETARIES 28 March 2007 ABERDEEN GROWTH VCT I PLCSummary of Investment ChangesFor the year ended 31 January 2007 (unaudited) Valuation Net investment/ Appreciation/ Valuation (disinvestment) (depreciation) 31 January 2006 31 January 2007 £'000 % £'000 £'000 £'000 £'000Unlisted investmentsEquities 2,941 17.4 (3,244) 2,849 2,546 15.3Preference shares 571 3.4 (250) (245) 76 0.5Loan stocks 5,498 32.4 (313) (1,584) 3,601 21.7 9,010 53.2 (3,807) 1,020 6,223 37.5 AIM investmentsEquities 4,785 28.2 285 358 5,428 32.7 Listed investmentsFixed income - - 368 (4) 364 2.2UK authorised unit trusts 1,959 11.6 (1,958) (1) - -Total investments 15,754 93.0 (5,112) 1,373 12,015 72.4 Net current assets 1,189 7.0 3,397 - 4,586 27.6Net assets 16,943 100.0 (1,715) 1,373 16,601 100.0 ABERDEEN GROWTH VCT I PLCInvestment Portfolio SummaryAs at 31 January 2007 (unaudited) % of equity % of % of held by Bookcost Valuation net equity otherInvestment Nature of business £'000 £'000 assets held clients*UnlistedAlbanet Provider of network services 408 - - 16.8 28.7 AMGas Manufacturer of gas sensors for application in oil and gas exploration 483 32 0.2 1.6 2.9 Buildstore On-line services to the self-build 99 98 9.2 0.6 0.8 sector Businesshealth Group Provider of health management services 302 - - 1.1 7.6 Cash Bases Design and manufacture of customised 500 1,000 6.0 16.5 11.9 cash drawers Crossco (982) (Martel Production of hand-held printers and 482 482 2.9 6.8 26.5Instruments) terminals Driver Hire Supplier of temporary drivers 107 104 0.6 0.6 39.0 Enpure Holdings Project engineering in the water and 100 100 0.6 0.4 79.2 waste water sector Enterprise Food Group Supply chain and management services - 95 0.6 2.9 14.3Holdings for catering businesses Essential Viewing Software developer 413 413 2.5 18.4 31.0Systems Homelux Nenplas Manufacturer of tile trims and other 323 511 3.1 5.5 39.5 wet room furnishing accessoriesInovas Software developer 231 - - 18.5 41.5 IRW Systems Provider of software solutions and 90 202 1.2 21.2 36.3 services IS Holdings Provider of biometric software 595 - - 19.8 - solutions Kingsley Cards Design and production of greeting 500 - - 6.2 21.2 cards Llanllyr Water Company Extraction and bottling of mineral 500 500 3.0 42.4 7.5 spring water MoneyPlus Group Debt management 275 373 2.2 5.5 25.4Oled-T Developer of flat screen technologies 350 350 2.1 8.1 10.4 Oliver Kay Holdings Distributor of fresh produce to the 458 458 2.8 2.9 17.1 on-trade catering industryPalgrave Brown Manufacturer of timber products 253 298 1.8 1.9 49.6(Holdings)PLM Dollar Group On-shore helicopter services 119 119 0.7 1.4 29.5 PSCA International Producer of publications aimed at 331 477 2.9 3.8 19.3 public sector officialsRiverdale Publishing Publisher of greeting cards 229 112 0.7 2.7 9.0 RMS Europe Provider of stevedoring and ships 278 499 3.0 3.4 26.6 agency services Transrent Holdings Rental and sale of trailers 872 - - 1.9 34.5 Tuscan Energy Group Oil production 300 - - 0.5 15.5 8,598 6,223 37.5 AIMAmazing Holdings Leisure and hotel developer 251 190 1.1 0.9 1.4 Asfare Manufacture and supply of equipment 17 24 0.1 0.3 1.5 for the emergency services Avanti Screenmedia Provider of screens and media 206 367 2.2 0.5 1.1 advertising Award International Sourcing and delivery of merchandising 150 - - 4.6 13.8Holdings materials Axeon Developer of semi-conductor 498 391 2.4 3.9 4.1 intellectual properties Brulines (Holdings) System for monitoring flow rates of 101 129 0.8 0.3 0.9 beer in public houses Cello Group Group of companies in the marketing 79 99 0.6 0.2 1.6 and media services industry Citel Technologies Integrated solutions for the telephony 974 316 1.9 0.2 0.3 and communications sector Cohort Technical advisory services and 192 272 1.6 0.5 0.1 systems to the defence sectorConcateno Alcohol and drugs testing services for 149 244 1.5 0.4 2.4 employersDebts.co.uk Specialist advice for personal debt 51 33 0.2 0.1 0.3 managementDipford Group Specialist corporate finance boutique 205 139 0.8 3.2 - Elevation Events Group Provider of management events and 156 - - 3.0 7.6 corporate hospitality Fairground Gaming On-line gaming 100 22 0.1 0.3 1.0Holdings Fountains Land management services 100 87 0.5 0.5 1.3 Hasgrove Communication services for public 100 108 0.7 0.4 1.8 relationsImprint Multi-disciplinary recruitment 203 174 1.0 0.2 0.4 business Individual Restaurant Restaurant operator 99 146 0.9 0.3 1.0Company Interactive World Digital media content for mobile 177 182 1.1 0.5 0.6 phones Leisure & Gaming Provider of on-line gaming services 66 9 0.1 0.1 0.6 Litcomp National supplier of medical reports 250 342 2.1 - 4.9 in support of legal actions Public Recruitment Suppliers of doctors and teachers to 200 50 0.3 0.4 1.3Group the state sectorSoftware Radio Provider of wireless technology 388 591 3.6 1.7 1.7Technology products and servicesSpectrum Interactive Provider of payphones and internet 97 25 0.2 0.3 1.3 access throughout the UKStrategic Retail Retailer of home furnishings 350 289 1.7 1.3 3.9 System C Healthcare Information services and IT systems to 189 84 0.5 0.4 1.0 the healthcare sector in England Tanfield Group Technical solutions and manufacturing 56 386 2.3 0.2 0.5 group Work Group Recruitment services 251 243 1.5 1.2 2.2 Worthington Nicholls Installation and maintenance of air 176 486 2.9 0.5 1.2Group conditioning systems 5,831 5,428 32.7 Listed fixed incomeTreasury 4.5% 2007 364 2.2 365 365 364 2.2 Total investments 14,794 12,015 72.4 *Other clients of the Aberdeen Asset Management Group This information is provided by RNS The company news service from the London Stock Exchange