Maven Income and Growth VCT 2 Regulatory News (MIG2)

20 Sep 2005 07:00

Aberdeen Growth VCT1 PLC20 September 2005 Aberdeen Growth VCT I PLC Interim Announcement for the six months ended 31 July 2005 (unaudited) The Directors announce the unaudited Interim Results for the six months ended 31July 2005. Highlights • 8 new unlisted and AIM investments made during the period under review. • Net Asset Value of 74.2p per Ordinary share at 31 July 2005; compared to 73.6p (restated) at 31 January 2005. • Net gain of 3.7% from the AIM portfolio for the six months ended 31 July 2005, compared to a fall of 2.0% in the FTSE AIM All-Share Index. Investment activity The following investments have been made since publication of the Annual Report: Travel Class Holdings Limited (February 2005) £385,000 Travel Class providesactivity based holidays for schoolchildren. Aberdeen Development Capital,Aberdeen Growth Opportunities VCT and Aberdeen Growth Opportunities VCT 2 alsoinvested in the management buy-out. Software Radio Technology (UK) Limited (March 2005) £375,000 Software RadioTechnology is a leading edge digital wireless communication developmentbusiness. Aberdeen Growth Opportunities VCT and Aberdeen Growth OpportunitiesVCT 2 also invested 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 Opportunities VCT 2and Murray VCT 4 also invested in the AIM placing. Original Shoe Company Limited (May 2005) £500,000 Original Shoe is a retailer ofbranded clothing and footwear, operating mainly in Scotland. AberdeenDevelopment Capital, Aberdeen Growth Opportunities VCT, Aberdeen GrowthOpportunities VCT 2, Murray VCT 4 and Talisman First VCT also invested toprovide development capital to fund the geographic expansion of the business. Talarius PLC* (May 2005) £348,000 Talarius is building a group of businessesoperating in the high street gaming sector. Aberdeen Growth Opportunities VCT 2,Murray VCT 4 and Talisman First VCT also invested in a round of funding toenable the AIM quoted company to complete an acquisition. Leisure & Gaming PLC* (June 2005) £113,000 Leisure & Gaming is acquiringcompanies in the online gaming sector. Aberdeen Growth Opportunities VCT 2,Murray VCT 4 and Talisman First VCT also invested to fund an acquisition by thisAIM quoted company. System C Healthcare PLC* (June 2005) £189,000 System C Healthcare providesinformation services and IT systems to the healthcare sector in England.Aberdeen Growth Opportunities VCT 2 and Murray VCT 4 also invested in the AIMplacing. Kingsley Cards Limited (July 2005) - £500,000 Kingsley Cards designs, producesand distributes greeting cards. Aberdeen Growth Opportunities VCT, AberdeenGrowth Opportunities VCT 2, Murray VCT 4 and West Yorkshire Pension Fund alsoinvested to provide development capital to the business. * quoted on the Alternative Investment Market ("AIM"). Portfolio developments The increasing maturity of some of the earlier unquoted investments made by theCompany is now leading to an improved level of exit opportunities. One holding,ScotNursing, was realised during the period resulting in a gain over its cost of£73,250, while Axeon successfully achieved an AIM flotation during June 2005. Weremain actively engaged in portfolio management to maintain performance of theinvestee companies and to determine which companies justify further supportwhere that is necessary. The AIM portfolio has been actively traded and during the reporting periodsubstantial realisations were made from nine companies, resulting in a net gainover cost of £781,000. At the period end, the remaining AIM portfolio hadachieved an uplift over cost of £819,000 (18%). Market conditions Interest rate increases imposed to control inflation, in particular in thehousing market, have contributed to a significant downturn in retail sales whichis flowing through to GDP growth and the Monetary Policy Committee acted toreduce interest rates at their meeting in August. This was immediately followedby the release of inflation figures which showed an unexpected increase, therebyplacing doubt on the timing of future interest rate reductions. Oil prices havebeen at relatively high levels for some time as the impact of supply and demandimbalances has been felt in increased prices. Inflation forecasts for the mediumterm show no significant variation from the Government's target. Manufacturingoutput is continuing to decline, although the construction sector remainsstrong. Valuation policy The unlisted companies in which Aberdeen Growth VCT I is invested are valued inaccordance with the British Venture Capital Association guidelines. Investmentsare normally valued at cost until they have been held for at least one year;thereafter investments are valued by reference to their underlying performance. Revised UK Accounting Standards are being introduced for the current financialyear and the introduction of these standards requires that listed holdings,including AIM quoted stocks, are valued at their bid price, where previouslythey would have been valued at their closing mid-market price. The effect ofchanging the basis of valuation to bid price has been to reduce the value of thelisted and AIM portfolio by £233,000, equivalent to 1.0p per share. Net Asset Value Notwithstanding the detrimental change in basis of valuation of listed and AIMinvestments referred to above, the Company has still achieved a modestimprovement in Net Asset Value ("NAV") per share since the year end, with NAVper share at 31 July 2005 of 74.2p compared with 73.6p at 31 January 2005, asrestated. During the six months ended 31 July 2005, active management of theAIM portfolio generated a net gain of £191,000 over the previous valuation,representing 3.7% of the restated value of AIM investments at 31 January 2005(adjusted to take account of transactions during the period), and compared to a2.0% fall in the FTSE AIM All-Share index. 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 advantage of this arrangement is that, together, the funds are ableto underwrite a wider range and size of transaction than would be the case on astand-alone basis. Dividends The Board does not intend to declare an interim dividend for the period ended 31July 2005. Outlook Deal flow is strong with a growing number of investment opportunities underconsideration throughout Aberdeen's regional network of seven offices, ensuringa continual flow of opportunities in which the Company can invest. The primaryfocus is to ensure that the Company builds a properly diversified portfolio ofgood quality assets which will deliver sustained long term performance. ABERDEEN GROWTH VCT I PLCSUMMARY OF INVESTMENT CHANGESFor the six months ended 31 July 2005 Valuation 31 January 2005 Net investment/ Appreciation/ Valuation (restated) (disinvestment) Transfers (depreciation) 31 July 2005 £'000 % £'000 £'000 £'000 £'000 %Unlisted investmentsEquities 2,596 14.7 369 (142) (229) 2,594 15.0Fixed income 4,376 24.9 1,105 (358) 22 5,145 29.7 6,972 39.6 1,474 (500) (207) 7,739 44.7 AIM investmentsEquities 5,989 34.0 (1,326) 500 191 5,354 31.0 UK authorised unit trusts 1,948 11.1 - - 141 2,089 12.1 Listed investmentsFixed income 1,258 7.1 (735) - 1 524 3.0 Total investments 16,167 91.8 (587) - 126 15,706 90.8 Other net assets 1,449 8.2 211 - (71) 1,589 9.2 Net assets* 17,616 100.0 (376) - 55 17,295 100.0 *Net assets represents Equity Shareholders' funds. ABERDEEN GROWTH VCT I PLCINVESTMENT PORTFOLIOAs at 31 July 2005 % of Valuation net Nature of business £'000 assetsUnlisted investments PSCA International Government sector publishing 518 3.0 Llanllyr Water Company Extraction and bottling of mineral spring water 500 2.9 Deckflat Design and manufacture of customised cash drawers 500 2.9 Kingsley Cards Publisher of greetings cards 500 2.9 Original Shoe Company Clothing and footwear retailer 500 2.9 Transrent Holdings Provider of trailer and transport solution services 450 2.6 Citel Technologies Group Telephony hardware developer 436 2.5 AMGas Manufacturer of gas sensors for application in oil and gas exploration 427 2.5 Essential Viewing Systems Software developer 420 2.4 Albanet Software and services 409 2.4 Travel Class Children's adventure holidays 385 2.2 Elam-T Developer of flat screen technologies 379 2.2 Software Radio Technology Provision of digital wireless technology communications 375 2.2 Mining Communications Publisher of mining related journals and magazines 340 2.0 Palgrave Brown (Holdings) Manufacturer of timber products 298 1.7 Enterprise Food Group Provider of supply chain and management services to the bakery industry 285 1.6 RMS Holdings Port operator 273 1.6 Inovas Software developer 200 1.1 Room 2 Retailer of household textiles, furniture, lighting and home accessories 175 1.0 GW 1016 Hotel operator 143 0.8 PLM Dollar Group Operator of commercial helicopter fleet 119 0.7 Driver Hire Supplier of temporary professional drivers 107 0.6 Businesshealth Group Provider of health management services - - I S Holdings Provider of biometric software solutions - - Mercury Inns Operator of freehold food-led pubs and consultancy services - - Tuscan Energy Group Oil production - - 7,739 44.7 AIM investments Axeon Developer of semiconductor intellectual property rights 755 4.4 Cardpoint Operator of network of ATMs 576 3.3 Tikit Group Provider of consultancy services and software solutions 403 2.3 Talarius High street gaming and casinos 365 2.1 Tanfield Technical solutions and manufacturing group 358 2.1 Glisten Manufacturer of confectionery, ingredients and snacking products 344 2.0 Dipford Group Specialist corporate finance boutique 285 1.6 Imagesound Provider of background message services 263 1.5 Avanti Screen Media Provider of screens and media advertising content 215 1.2 Public Recruitment Suppliers of doctors and teachers to the state sector 193 1.1 Elevation Events Provider of management events and corporate hospitality 192 1.1 System C Healthcare Provider of information services and IT systems to the healthcare sector 191 1.1 Fountains Specialist environmental services provider 171 1.0 Cello Group Group of companies in the marketing and media services industry 154 0.9 Intelligent Environments Supply and production of integrated e-financial products 150 0.9 Leisure & Gaming Provider of on-line gaming services 144 0.8 Business Serve Internet service provider 130 0.8 Spectrum Interactive Operator of payphones and internet terminals 116 0.7 Hartford Group Operator of restaurants and wine bars 111 0.6 Augean Group of companies in water management and water supply sector 61 0.4 Blooms of Bressingham Operator of retail garden centres 58 0.4 Corac Group Provider of oil-free engineering products 51 0.3 Asfare Group Manufacture and supply of equipment for the emergency services 49 0.3 Award International Niche supplier of marketing and merchandising 19 0.1 Holdings 5,354 31.0 UK authorised unit trustsAberdeen Progressive Growth Fund 1,787 10.3Aberdeen UK Growth Fund 302 1.8 2,089 12.1 Listed fixed income investments Treasury 7.75% 8/9/2006 524 3.0 524 3.0 Total investments 15,706 90.8 * Shares traded on Alternative Investment Market (AIM) ABERDEEN GROWTH VCT I PLCStatement of Total Return Six months to 31 July 2005 (unaudited) Revenue Capital Total £'000 £'000 £'000 Gains/(losses) on investments - 55 55 Income from investments 395 - 395Other income 12 - 12Investment management fees (24) (220) (244)Other expenses (98) - (98) Net return/(loss) on ordinary activities before taxation 285 (165) 120 Tax on ordinary activities (23) 23 - Return/(loss) on ordinary activities after taxation 262 (142) 120 Return/(loss) per Ordinary share (pence) 1.11 The total column of this statement is the Profit and Loss Account of the Company. \* These Financial Statements have been restated to reflect the change to accounting practicesas set out in Note 2. ABERDEEN GROWTH VCT I PLCStatement of Total Return Six months to 31 July 2004 (unaudited) (restated*) Revenue Capital Total £'000 £'000 £'000 Gains/(losses) on investments - (732) (732) Income from investments 203 - 203Other income 6 - 6Investment management fees (24) (213) (237)Other expenses (101) - (101) Net return/(loss) on ordinary 84 (945) (861)activities before taxation Tax on ordinary activities (13) 13 - Return/(loss) on ordinary activities after taxation 71 (932) (861) Return/(loss) per Ordinary share (3.52)(pence) The total column of this statement is the Profit and Loss Account of the Company. \* These Financial Statements have been restated to reflect the change to accounting practicesas set out in Note 2. ABERDEEN GROWTH VCT I PLCStatement of Total Return Six months to 31 January 2005 (audited) (restated*) Revenue Capital Total £'000 £'000 £'000 Gains/(losses) on investments - 1,706 1,706 Income from investments 414 - 414Other income 15 - 15Investment management fees (46) (411) (457)Other expenses (218) - (218) Net return/(loss) on ordinary activities before taxation 165 1,295 1,460 Tax on ordinary activities (25) 25 - Return/(loss) on ordinary activities after taxation 140 1,320 1,460 Return/(loss) per Ordinary share 5.99(pence) The total column of this statement is the Profit and Loss Account of the Company. \* These Financial Statements have been restated to reflect the change to accounting practicesas set out in Note 2. ABERDEEN GROWTH VCT I PLCBalance SheetAs at 31 July 2005 31 July 31 July 31 January 2005 2004 2005 (unaudited) (unaudited) (audited) (restated*) (restated*) £'000 £'000 £'000 Fixed assets Investments 15,706 13,938 16,167 Current assets Debtors 1,231 267 571 Debtors due after one year - - 910 Cash and overnight deposits 578 1,720 66 1,809 1,987 1,547 Creditors Amounts falling due within one year 220 425 98 Net current assets 1,589 1,562 1,449 Net assets 17,295 15,500 17,616 Capital and reserves Called up share capital 2,331 2,437 2,393 Share premium 10,535 10,535 10,535 Distributable reserve 9,742 10,251 10,046 Capital reserves (5,712) (7,822) (5,570) Capital redemption reserve 129 23 67 Revenue reserve 270 76 145 Equity Shareholders' funds 17,295 15,500 17,616 Net Asset Value per Ordinary share 74.2 63.6 73.6(pence) \* These Financial Statements have been restated to reflect the change to accounting practices as set outin Note 2. ABERDEEN GROWTH VCT I PLCCash Flow StatementFor the six months ended 31 July 2005 Six months to Six months to Year ended 31 July 2005 31 July 2004 31 January 2005 (unaudited) (unaudited) (audited) £'000 £'000 £'000Operating activitiesInvestment income received 172 199 292Deposit interest received 10 6 15Other income - - 84Investment management fees paid (122) (217) (542)Secretarial fees paid (32) (32) (64)Cash paid to and on behalf of Directors (30) (35) (65)Other cash payments (40) (35) (98)Net cash outflow from operating activities (42) (114) (378) Financial investmentPurchase of investments (2,702) (3,843) (5,939)Proceeds from capital uplift plan on unit trust holdings 188 - -Sale of investments 3,519 1,955 2,834Net cash inflow/(outflow) from financial investment 1,005 (1,888) (3,105) Equity dividends paid (137) (140) (140)Net cash inflow/(outflow) before use of liquid resources and financing 826 (2,142) 3,623 FinancingRepurchase of Ordinary shares (314) - (230)Expenses of share issue - (57) -Net cash outflow from financing (314) (57) (230)Increase/(decrease) in cash 512 (2,199) (3,853) Aberdeen Growth VCT I PLCNotes to the Financial Statements 1. Accounting policies The financial information for the six months ended 31 July 2005 and the sixmonths ended 31 July 2004 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 year ended 31 January 2005, with the exception of the itemsset out in Note 2. The results for the year ended 31 January 2005 are extracted from the fullaccounts for that year, subject to the adjustments detailed in Note 2, whichreceived an unqualified report from the Auditors and have been filed with theRegistrar of Companies. 2. Basis of restatement During the six months ended 31 July 2005, the Company became subject to newFinancial Reporting Standards issued as part of the programme to converge UKGAAP with International Accounting Standards. As a consequence of this, theresults for the year ended 31 January 2005 and the six months ended 31 July 2004have been restated to reflect the changes of accounting practice in relation tothe following: • investments are measured initially at cost and are recognised at trade date; and • for financial assets acquired, the cost is the fair value of the consideration. Subsequent to initial recognition, investments are valued at fair value. For listed and AIM quoted investments, this is deemed to be bid market prices sourced from The London Stock Exchange. Unlisted investments are valued by the Directors at fair value, in line with the guidelines of the British Venture Capital Association. In accordance with FRS 21 - Events after the Balance Sheet Date, dividends arenot accrued in the Financial Statements unless they have been declared beforethe Balance Sheet Date. Final dividends are therefore recognised in the periodin which they are declared and paid. As a result of this change, the FinancialStatements for the year ended 31 January 2005 have been restated. The impact of these changes is shown below: Reconciliation of Balance Sheets 31 January 2005 31 July 2004 31 January 2004 (audited) (unaudited) (audited) £'000 £'000 £'000Net assets as previously reported 17,711 15,714 16,809Restatement of investments at bid value (232) (214) (391)Reversal of provision for final dividend 137 - 140Restated net assets 17,616 15,500 16,558 Reconciliation of the Statement of Total Return Year ended Six months ended 31 January 2005 31 July 2004 (audited) (unaudited) £'000 £'000Total transfer to reserve per originally reported Statement of Total Return 1,164 (1,038)Add year to 31 January 2005 final dividend on Ordinary shares 137 -Change from mid to bid basis at 31 January 2004 391 391Change from mid to bid basis at 31 January 2005 (232) -Change from mid to bid basis at 31 July 2004 - (214)Return on ordinary activities after tax per restated 1,460 (861)Statement of Total Return Ordinary dividends on equity shares deducted from reserves are analysed asfollows: Six months ended Six months ended Year ended 31 July 2005 31 July 2004 31 January 2005 (unaudited) (unaudited) (audited) £'000 £'000 £'000Ordinary dividends onequity shares:Year ended 31 January 2004 - final dividend of 0.57p paid - 140 140Year ended 31 January 2005 - final dividend of 0.57p paid 137 - - 137 140 140 3. Statement of changes in Equity Shareholders' funds Share Distribut- Capital Share premium able Capital redemption Revenue capital account reserve reserve reserve reserve Total £'000 £'000 £'000 £'000 £000 £'000 £'000 At 31 January 2004 2,451 10,535 10,308 (6,499) 9 5 16,809Effect of restatement - - - (391) - 140 (251)At 31 January 2004 (as restated) 2,451 10,535 10,308 (6,890) 9 145 16,558Final dividend 2004 paid and declared - - - - - (140) (140)Shares bought back and cancelled (58) - (262) - 58 - (262) Net return on ordinary activities - - - 1,320 - 140 1,460 At 31 January 2005 (as restated) 2,393 10,535 10,046 (5,570) 67 145 17,616Final dividend 2004 paid and declared - - - - - (137) (137)Shares bought back and cancelled (62) - (304) - 62 - (304) Net return on ordinary activities - - - (142) - 262 120As at 31 July 2005 2,331 10,535 9,742 (5,712) 129 270 17,295 4. Returns per Ordinary share The returns per Ordinary share are based on the following figures: 6 months ended 6 months ended Year ended 31 July 2005 31 July 2004 31 January 2005 (restated) (restated) £'000 £'000 £'000 Revenue return 262 71 140Capital return (142) (932) 1,320 Total return 120 (861) 1,460 Weighted average number of Ordinary shares in issue 23,692,993 24,463,412 24,383,822 Revenue return per Ordinary share 1.11p 0.29p 0.58pCapital return per Ordinary share (0.60p) (3.81p) 5.41p Return per Ordinary share 0.51p (3.52p) 5.99p The Net Asset Value per Ordinary share has been calculated using the number ofOrdinary shares in issue at 31 July 2005 of 23,313,214. A summary of investment changes for the six months under review and aninvestment portfolio summary as at 31 July 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 19 September 2005 This information is provided by RNS The company news service from the London Stock Exchange