Maven Income and Growth VCT 2 Regulatory News (MIG2)

20 Sep 2006 17:10

Aberdeen Growth VCT1 PLC20 September 2006 Aberdeen Growth VCT I PLC Interim Announcement for the six months ended 31 July 2006 (unaudited) The Directors announce the unaudited Interim Results for the six months ended 31July 2006. Highlights • Nine new unlisted and AIM investments made during the period under review. • Successful disposal of Travel Class, realising a gain of £575,870 equivalent to c2.5p per share. • Second capital dividend of 2.0p per Ordinary share declared. • Net Asset Value of 73.0p per Ordinary share at 31 July 2006; compared to 70.7p (adjusted for dividends paid) at 31 January 2006. • Increase of 3.25% in Net Asset Value per share over the six months ended 31 July 2006, compared to reductions of 7.9% in the FTSE AIM All-Share Index and 1.8 % in the FTSE Small Cap Index. • Increase in value of 1.8% in AIM portfolio compared to 12.8% reduction in the FTSE AIM 100 Index. • Continuing re-alignment of the portfolio, realising investments where no upside is likely and targeting new investments in more mature businesses. Net Asset Value The Net Asset Value (NAV) per share at 31 July 2006 was 73.0p per share ("pps")compared with 70.7pps as at 31 January 2006 (adjusted for payment of dividendstotalling 3.2 pps in June 2006). The increase in NAV over the period of 3.25%compares with the FTSE AIM All-Share Index, which decreased by 7.9% over theperiod and the FTSE Small Cap Index, which decreased by 1.8%. Unlisted investments held by Aberdeen Growth VCT I are valued in accordance withthe International Private Equity and Venture Capital Valuation Guidelines, whichsuperseded the British Venture Capital Guidelines for reporting periodsbeginning after 1 January 2005. Investments which are quoted or traded on theAlternative Investment Market (AIM) or a recognised stock exchange are valued attheir bid price, discounted where necessary to reflect any trading restrictions. 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. In addition, following the agreement of all Aberdeen AssetManagers Growth Capital clients, the Manager's staff co-investment scheme madeits first investment on 30 May 2006 and has co-invested alongside the Company ineach investment made since then. Details of the scheme were contained in theAnnual Report for the year ended 31 January 2006. Dividends Following the payment of the Company's first capital dividend of 2.0p on 23 June2006, the Board now declares a further capital dividend of 2.0p to be paid on 17November 2006 to Shareholders on the register at close of business on 20 October2006. These tax-free dividends are in respect of capital gains which have beenrealised to date. Investment activity The Board and Manager have resolved to target future investment on more matureprofitable businesses, typically management buy-outs and buy-ins and developmentcapital opportunities, and to avoid earlier stage investments where the productor service has still to generate significant revenues. During the six-months to31 July 2006, two new unlisted and seven new AIM investments were made at atotal cost of £1.5 million. In addition, one AIM investment was realised in ashare-for-share transaction with the proceeds re-invested in the acquiringcompany. A total of £1.9 million was invested during the six month period,including amounts invested in existing investee companies, resulting in aninvestment portfolio consisting of fifty-two unlisted and AIM investments havinga total cost of £14.2 million at 31 July 2006. The following nine new investments, of which two are non-qualifying for VCTpurposes, have been made since the publication of the Annual Report: Unlisted investments Homelux Nenplas Limited (May 2006) - £323,000: Homelux Nenplas is a manufacturerof tile trims and other wet room furnishing accessories. Its products aredistributed through major DIY retail outlets and trade product distributors. (Nowebsite available) IRW Systems Limited (April 2006) - £90,000: IRW Systems provides softwaresolutions and services to a range of clients across the central belt ofScotland, focusing on consultancy, bespoke software development and networkmanaged services. IRW Systems acquired the trade and assets of IRW SolutionsLimited via the Administration of the Albanet Group in April 2006.(www.irw.co.uk) AIM investments Cohort plc (February 2006) - £190,000: Cohort provides technical advisoryservices and systems engineering to the defence sector. (www.cohortplc.com) Debts.co.uk plc (May 2006) - £50,000: Debts.co.uk provides specialist advice forpersonal debt management. (www.debts.co.uk) Fairground Gaming Holdings plc (June 2006) - £98,000: Fairground has been formedwith the intention of acting as a consolidator of companies in the on-linegaming industry. (www.fairgroundgaming.com) Interactive World plc (April 2006) - £175,000: Interactive World providesdigital media content for mobile phones. (No website available) Netservices plc (March 2006) - £200,000: Netservices is a network serviceprovider primarily of broadband and dialup connections and hosting services.(www.netservicesplc.com) Work Group plc (February 2006) - £250,000: Work Group is a leading UKrecruitment services provider that helps employers to recruit and retain theirstaff more effectively. (www.workcomms.com) Worthington Nicholls Group plc (June 2006) - £172,000: Worthington Nichollsinstalls and maintains air conditioning units in the hotel and retail markets.(www.worthington-nicholls.co.uk) Portfolio developments Following the successful realisations which led to the payment of the firstcapital dividend during June 2006, further profitable disposals have beenachieved as shown in the table of realisations during the reporting period and,in particular, a gain has been realised from the sale of Travel Class to a majorPLC. Proceeds of £960,870 were received compared to the cost of investment of£385,000 resulting in a gain of £575,870 equivalent to c2.5p per share. The saleof Original Shoe Company has also completed for cost following the acceptance bythe major shareholder of an offer for his shares. The approach was made by aprivately owned competitor seeking to increase its geographic coverage. A yieldgreater than would have been earned in bank interest was paid over the life ofthe investment. The maximum deferred consideration was received from the sale of Enterprise FoodGroup and the remaining operating subsidiary, Patisserie (UK), was sold duringthe period resulting in aggregate proceeds of £91,000 all of which is a gainover the cost of the investment. In total, a gain of £180,000 has been realisedfrom the investment in Enterprise Food Group and the Company still retains a2.8% stake in the residual supply management business. The holdings in MercuryInns and the sister company GW1016 were sold during the period which resulted ina combined loss of £143,000 but a modest gain over the January 2006 carryingvalue. Albanet was placed in Administration during the reporting period andthere will be no recovery to the Company from that process; however, one of thesubsidiaries, IRW Systems, was acquired by a new company funded by clients ofthe Manager, including the Company. The AIM portfolio has continued to be actively managed during the reportingperiod, resulting in net gains over cost of £83,000 equivalent to c0.3p pershare. Following the successful listing on AIM of Axeon in June 2005,approximately 25% of the holding was sold in the market during July 2006resulting in a gain of £86,000. The Company still retains a holding of over 3%of Axeon. Significant gains were also realised from Leisure & Gaming,Netservices, Talarius and Tanfield. A number of holdings, where the Manager didnot believe there was scope for upside, were sold at a loss as the process ofre-aligning the AIM portfolio continued. The UK stock markets, including AIM, entered a period of instability around themiddle of May 2006 resulting in a fall in the FTSE AIM 100 Index of c25% betweenmid-May and mid-July. Over the six month period to 31 July 2006, the value ofthe AIM portfolio, after taking account of gains made on disposal, appreciatedby £96,000, 1.8% of the value of the portfolio, in contrast to the FTSE AIM 100Index which declined by 12.8% over the same period. The settlement of the compensation scheme in respect of Aberdeen ProgressiveGrowth Fund was received during the period, recovering the amount invested of£2.8 million of which £188,000 was received last year. This settlement had beenagreed before the last year end and the effect was therefore included in theFinancial Statements for the year ended 31 January 2006. The table of realisations during the reporting period shows details of all ofthe sales from the investment portfolio made by the Company during the sixmonths ended 31 July 2006. Realisations during the reporting period Date first Complete/ partial Cost of Sales Realised gain invested exit shares proceeds /(loss) disposed of £'000 £'000 £'000UnlistedCitel Technologies 2001 Partial 50 50 -Enterprise Food Group/ 2003 Deferred - 91 91 considerationPatisserie (UK)GW1016/Mercury Inns 2002 Complete 299 156 (143)Original Shoe 2005 Complete 500 500 -Travel Class 2005 Complete 385 961 576Total unlisted 1,234 1,758 524 AIMAsfare 2003 Partial 20 16 (4)Axeon 2005 Partial 181 267 86Billing Services 2006 Complete 187 97 (90)Cello Group 2005 Partial 46 56 10Dipford Group 2006 Partial 70 63 (7)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 Holdings 2005 Partial 7 13 6Spectrum Interactive 2005 Partial 4 2 (2)Talarius 2005 Partial 51 96 45Tanfield 2004 Partial 103 208 105United Clearing 2005 Complete 287 314 27Total AIM 1,458 1,541 83 Total 2,692 3,299 607 Outlook The increase in the NAV over the reporting period reflects a continuation of theimprovement in performance since July 2004 and the total return has increased by20.2% since that date. There are increasing signs of maturity in the unlistedportfolio, which may lead to further realisations during the course of theremainder of the year. The Board intends to make further dividend payments outof the gains arising from realisations, but the quantum and timing of thesepayments cannot be predicted. There is a good flow of new opportunities forunlisted investment and in the AIM market, which has stabilised following thedisruption experienced during May. ABERDEEN GROWTH VCT I PLCSummary of Investment ChangesFor the six months ended 31 July 2006 Valuation Net investment/ Appreciation/ Valuation 31 January 2006 (disinvestment) (depreciation) 31 July 2006 £'000 % £'000 £'000 £'000 £'000Unlisted investmentsEquities 2,941 17.4 (885) 732 2,788 17.0Preference shares 571 3.4 - (150) 421 2.6Loan stock 5,498 32.4 (391) (877) 4,230 25.8 9,010 53.2 (1,276) (295) 7,439 45.4 AIM investmentsEquities 4,785 28.2 (156) 859 5,488 33.5 Listed investmentsFixed income - - 1,960 (3) 1,957 11.9UK authorised unit trusts 1,959 11.6 (1,958) (1) - -Total investments 15,754 93.0 (1,430) 560 14,884 90.8 Other net assets 1,189 7.0 332 - 1,521 9.2Net assets 16,943 100.0 (1,098) 560 16,405 100.0 ABERDEEN GROWTH VCT I PLCInvestment Portfolio SummaryAs at 31 July 2006 % of equity % of % of held by Bookcost Valuation total equity otherInvestment Nature of business £'000 £'000 assets held clients*UnlistedAlbanet Provider of network services 408 - - 16.8 28.7AMGas Manufacturer of gas sensors for 83 0.5 1.6 2.9 application in oil and gas 483 explorationBond Aviation Solutions Provision of pilot training 500 700 4.3 8.0 32.0 servicesBusinesshealth Group Provider of health management 302 - - 1.1 7.6 servicesCash Bases Design and manufacture of 500 572 3.5 16.5 11.9 customised cash drawersMoneyPlus Group Debt management 275 275 1.7 5.5 25.4Driver Hire Supplier of temporary drivers 107 107 0.7 0.6 39.0EIG (Investments) Insurance business focused on 501 501 3.1 0.3 1.2 predominately niche risk areas within motor insuranceEnterprise Food Group Supply chain and management - 55 0.3 2.9 14.3Holdings services for catering businessEssential Viewing Systems Software developer 400 400 2.4 18.4 31.0Homelux Nenplas Extruder of plastic tiling 323 323 2.0 5.5 39.5 trims and related productsInovas Software developer 231 231 1.4 18.5 41.5IRW Systems Design, building and management 90 202 1.2 21.2 36.3 of bespoke software and network solutionsIS Holdings Provider of biometric software 595 - - 19.8 - solutionsKingsley Cards Design and production of 500 - - 6.2 21.2 greeting cardsLlanllyr Water Company Extraction and bottling of 500 500 3.0 42.4 7.5 mineral spring waterMining Communications Publisher of specialist trade 340 540 3.3 6.4 14.1 journalsOled-T Developer of flat screen 350 350 2.1 8.1 10.4 technologiesPalgrave Brown (Holdings) Manufacturer of timber products 250 298 1.8 1.9 47.6PLM Dollar Group On-shore helicopter services 119 119 0.8 1.4 29.5PSCA International Producer of publications aimed 331 417 2.5 3.8 19.3 at public sector officialsRiverdale Publishing Publisher of greeting cards 1 233 1.4 14.8 50.2RMS Europe Provider of stevedoring and 278 331 2.0 3.2 24.9 ships agency servicesStyles & Wood Holdings Leading independent provider of 300 660 4.1 1.2 45.2 store fit-out and refurbishment programmes to the UK retail sectorTransrent Holdings Rental and sale of trailers 543 542 3.3 1.9 34.5Tuscan Energy Group Oil production 300 - - 0.5 15.5 8,527 7,439 45.4 AIMAmazing Holdings Leisure and hotel developer 251 208 1.3 0.9 1.4Asfare Manufacture and supply of 32 28 0.2 0.6 2.8 equipment for the emergency servicesAvanti Screenmedia Provider of screens and media 269 411 2.5 0.7 1.6 advertisingAward International Sourcing and delivery of 150 - - 4.6 13.8Holdings merchandising materialsAxeon Developer of semi-conductor 498 582 3.5 3.9 4.1 intellectual propertiesCello Group Group of companies in the 83 97 0.6 0.3 1.8 marketing and media services industryCitel Technologies Integrated solutions for the 974 553 3.4 0.2 0.3 telephony and communications sectorCohort Provider of technical services 191 212 1.4 2.0 0.5 to the defence sectorDebts.co.uk Provider of personal debt 51 54 0.3 0.1 0.3 solutionsDipford Group Specialist corporate finance 205 183 1.1 3.2 - boutiqueElevation Events Group Provider of management events 156 - - 3.0 7.6 and corporate hospitalityFairground Gaming An investment company in the 99 65 0.4 0.4 1.3Holdings on-line gaming sectorFountains Land management services 151 107 0.7 0.8 1.9Imprint Multi-disciplinary recruitment 203 171 1.0 0.2 0.4 businessInteractive World Digital media content provider 176 183 1.1 0.6 0.8Leisure & Gaming Provider of on-line gaming 65 54 0.3 0.1 0.7 servicesLitcomp National supplier of medical 250 400 2.4 - 5.5 reports in support of legal actionsPublic Recruitment Group Suppliers of doctors and 200 60 0.4 0.5 1.5 teachers to the state sectorSoftware Radio Technology Provider of wireless technology 420 790 4.8 2.1 2.1 products and servicesSpectrum Interactive Provider of payphones and internet access throughout the UK 98 22 0.1 0.3 1.3Strategic Retail Retailer of home furnishings 350 298 1.8 1.3 3.9System C Healthcare Information services and IT 189 94 0.6 0.4 1.0 systems to the healthcare sector in EnglandTalarius High street gaming 138 247 1.5 0.3 0.6Tanfield Group Technical solutions and 82 209 1.3 0.3 0.9 manufacturing groupWork Group Provider of recruitment 251 256 1.6 1.3 2.4 servicesWorthington Nicholls Installer and maintainer of air 173 204 1.2 0.5 1.3Group conditioning units in the hotel and retail markets 5,705 5,488 33.5 Listed fixed incomeTreasury 4.5% 2007 1,001 998 6.1Treasury 7.5% 2006 960 959 5.8 1,961 1,957 11.9 Total investments 16,193 14,884 90.8 *Other clients of the Aberdeen Asset Management Group ABERDEEN GROWTH VCT I PLCIncome Statement Six months ended 31 July 2006 (unaudited) Revenue Capital Total £'000 £'000 £'000 Gains on investments - 560 560 Income from investments 203 - 203Other income 6 - 6Investment management fees (24) (219) (243)Other expenses (93) - (93)Profit/(loss) on ordinary activities 92 341 433before taxation Tax on ordinary activities (8) 8 -Profit/(loss) on ordinary activities 84 349 433after taxation Earnings per share (pence) 0.37 1.54 1.91 ABERDEEN GROWTH VCT I PLCIncome Statement Six months ended 31 July 2005 (unaudited) Revenue Capital Total £'000 £'000 £'000 Gains on investments - 55 55 Income from investments 395 - 395Other income 12 - 12Investment management fees (24) (220) (244)Other expenses (98) - (98)Profit/(loss) on ordinary activities 285 (165) 120before taxation Tax on ordinary activities (23) 23 -Profit/(loss) on ordinary activities 262 (142) 120after taxation Earnings per share (pence) 1.11 (0.60) 0.51 ABERDEEN GROWTH VCT I PLCIncome Statement Year ended 31 January 2006 (audited) Revenue Capital Total £'000 £'000 £'000 Gains on investments - 74 74 Income from investments 579 - 579Other income 20 - 20Investment management fees (48) (437) (485)Other expenses (219) - (219)Profit/(loss) on ordinary activities 332 (363) (31)before taxation Tax on ordinary activities (66) 66 -Profit/(loss) on ordinary activities 266 (297) (31)after taxation Earnings per share (pence) 1.14 (1.27) (0.13) A Statement of Total Recognised Gains and Losses has not been prepared, as allgains and losses are recognised in the Income Statement. All items in the above statement are derived from continuing operations. TheCompany has only one class of business and derives its income from investmentsmade in shares, securities and bank deposits. The total column of this statement is the Profit and Loss Account of theCompany. The accompanying Notes are an integral part of the Financial Statements. ABERDEEN GROWTH VCT I PLCReconciliation of movements in Shareholders' Funds Six months ended Six months ended Year ended 31 July 2006 31 July 2005 31 January 2006 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Opening Shareholders' funds 16,943 17,616 17,616Total profit/(loss) for the period 433 120 (31)Repurchase and cancellation of shares (241) (304) (505)Dividends paid - revenue (273) (137) (137)Dividends paid - capital (457) - -Closing Shareholders' funds 16,405 17,295 16,943 The accompanying Notes are an integral part of the Financial Statements. ABERDEEN GROWTH VCT I PLCBalance Sheet 31 July 31 July 31 January 2006 2005 2006 (unaudited) (unaudited) (audited) £'000 £'000 £'000Fixed assetsInvestments 14,884 15,706 15,754 Current assetsDebtors 1,082 1,231 1,076Cash and overnight deposits 459 578 302 1,541 1,809 1,378 CreditorsAmounts falling due within one year (20) (220) (189) Net current assets 1,521 1,589 1,189Net assets 16,405 17,295 16,943 Capital and reservesCalled up share capital 2,249 2,331 2,293Share premium 10,535 10,535 10,535Capital reserves - realised (4,667) (4,606) (4,427)Capital reserves - unrealised (1,308) (1,106) (1,440)Distributable reserve 9,300 9,742 9,541Capital redemption reserve 211 129 167Revenue reserve 85 270 274Net assets attributable to Ordinary 16,405 17,295 16,943Shareholders Net Asset Value per Ordinary share (pence) 73.0 74.2 73.9 The accompanying Notes are an integral part of the Financial Statements. ABERDEEN GROWTH VCT I PLCCash Flow Statement Six months ended Six months ended Year ended 31 July 2006 31 July 2005 31 January 2006 (unaudited) (unaudited) (audited) £'000 £'000 £'000Operating activitiesInvestment income received 115 172 531Deposit interest received 5 10 19Investment management fees paid (345) (122) (383)Secretarial fees paid (51) (32) (65)Directors expenses paid (40) (30) (72)Other cash payments (66) (40) (58)Net cash outflow from operating activities (382) (42) (28) Financial investmentPurchase of investments (4,359) (2,702) (6,970)Proceeds from Aberdeen Progressive Growth Unit - 188 188TrustSale of investments 5,869 3,519 7,720Net cash inflow from financial investment 1,510 1,005 938 Equity dividends paid (730) (137) (137)Net cash inflow before financing 398 826 773 FinancingRepurchase of Ordinary shares (241) (314) (537)Net cash outflow from financing (241) (314) (537)Increase in cash 157 512 236 The accompanying Notes are an integral part of the Financial Statements. Aberdeen Growth VCT I PLCNotes to the Financial Statements 1. Accounting policies The financial information for the six months ended 31 July 2006 and the sixmonths ended 31 July 2005 comprises non-statutory accounts within the meaning ofSection 240 of the Companies Act 1985. The financial information contained inthis report has been prepared on the basis of the accounting policies set out inthe Annual Report and Financial Statements for the year ended 31 January 2006. The results for the year ended 31 January 2006 are extracted from the fullaccounts for that year, which received an unqualified report from the Auditorsand have been filed with the Registrar of Companies. 2. Movement in reserves Share Capital Capital Distribut-able Capital Revenue premium reserves reserves reserve redemption reserve account realised unrealised reserve £'000 £'000 £'000 £'000 £000 £'000At 31 January 2006 10,535 (4,427) (1,440) 9,541 167 274Gains on sales of - 428 - - - -investmentsNet increase in value of - - 132 - - -investmentsInvestment management fees - (219) - - - -Repurchase and - - - (241) 44 -cancellation of sharesDividends paid - (457) - - - (273)Tax effect of capital - 8 - - - -itemsProfit on ordinary - - - - - 84activities after taxationAs at 31 July 2006 10,535 (4,667) (1,308) 9,300 211 85 3. Returns per Ordinary share The returns per Ordinary share are based on the following figures: Six months ended 31 July 2006 £'000 Weighted average number of Ordinary 22,721,548shares in issueRevenue return £84,000Capital return £349,000 Other information The Net Asset Value per Ordinary share has been calculated using the number ofOrdinary shares in issue at 31 July 2006 of 22,483,497. A summary of investment changes for the six months under review and aninvestment portfolio summary as at 31 July 2006 are attached above. 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. On behalf of the Board ABERDEEN ASSET MANAGEMENT PLCSECRETARY 20 September 2006 This information is provided by RNS The company news service from the London Stock Exchange