NCA.L Regulatory News (NCA)

28 Jun 2007 15:53

NEW CENTURY AIM VCT PLC PRELIMINARY ANNOUNCEMENT AS AT 28 FEBRUARY 2007 Financial Summary \* T Period ended Period ended 28 February 2007 31 March 2006Revenue return per share (pence) for the period 0.73 1.54Total return per share (pence) for the period 10.49 27.15Dividends per share (pence) 1.00 -Cumulative dividends per share (pence) 1.00 -Net asset value per share (pence) 135 126NAV total return (net asset value plus cumulative dividends per share) (pence) 136 126Shareholders' funds (£'000) 11434 10678\* T Investment Manager's Review Chairman's Statement The eleven month period to 28th February 2007 was not an easy one for the fund,with the FTSE AIM Index falling by 8%. Against this unfavourable backdrop, I ampleased to report that the net asset value of your fund rose by 7.1% to 135p During the period, we realised net profits of £1.176 million. At the financialyear end, qualifying stocks accounted for 68.76% by value of the fund. By theend of February 2008, we shall require to maintain in excess of 70% of the fundin VCT qualifying stocks. Going forward, we shall have to ensure that whenselling, we do not let the VCT qualifying stocks fall much below 70% by value ofthe fund. Indeed, for prudence sake, we would like our VCT qualifying stocks tobe considerably in excess of 70% as we approach the February deadline. Our costs of £143,000 of which investment management fees amounted to £117,000,represented just 1.25% of the funds under management. Reflecting the reduction of funds on deposit during the year into lower yieldingequities, net revenue declined to £56,000 for the eleven-month period comparedto £131,000 for the previous twelve months. In the light of this, the Directorshave decided to reduce the net dividend for the period to 0.7p compared to 1pfor the previous twelve months. This reduced payment substantially utilises thetotal revenue reserves as at 28th February 2007. The excellent performance of your fund is a reflection of the dedication of ourinvestment management team who have diligently analysed each proposed newinvestment while monitoring the existing investments with a view to part ortotal realisation of those investments when it is deemed appropriate. Annual General Meeting The annual general meeting will be held at 11.30 a.m. on Thursday, 30 August2007 at 17-21 New Century Road, Laindon, Essex SS15 6AG. I look forward tomeeting those shareholders that are able to attend. John BriceChairman28 June 2007 Introduction During our second year of management of your fund, we have continued in the samevein as in the previous year. We have maintained a high level of VCT-qualifyingstocks, though to reduce risks, we have realised profits from some of thelargest holdings and looked to expand the Company into more and more smallerholdings. By the end of the Company's financial year, the number of stocks heldhad risen to 48, while cash awaiting investment had risen to £2.528 million,equal to 22.05% of the value of the Company. During the year, we became increasingly concerned over thetoughening competitive pressures being faced by IVAs and we took the decision tosubstantially reduce our commitment to this sector. Another concern for us was the reducing price of ethanol during which grainprices were sharply rising. This was not a good omen for GTL and Renova, whichmake ethanol from grain. As a result, we decided to realise a substantial profiton these investments. We reduced our holdings in Internet Business Group, Tanfield and WorthingtonNicholls which were becoming disproportionately large holdings, and took massivegains for your fund in the process. Talarius was taken over during the period, resulting in additional usefulprofits. Fortunately, we decided to cut a small loss on Torex Retail, since when, thiscompany has got into financial difficulties. System C continued to suffer from a lack of orders from the NHS and given itsuncertain future, we decided to cut our losses here. Having suffered from theshortcomings of the NHS, we have switched our attention to a company that standsto benefit from these failings and invested in General Medical Clinics, acompany that provides primary medical care in the City, specialising in generalpractice, health screening, occupational health, physiotherapy and travelvaccinations. General Medical operates three private clinics and, under contractwith the Department of Health, an NHS walk-in centre. As in our previous year, we have invested in companies likely to benefit fromchanges in legislation or from those that will benefit from measures being takento provide a greener environment. We have bought into Hightex which is a leading specialist in the polymermembrane market for the roofing industry using solar power technologies. We haveparticipated in the secondary placing of CKS, which specialises in the recyclingof redundant computers, and we have invested in Air Touring, a Biggin Hillcompany which sells services and repairs private light aircraft. With everlonger delays at airports leading to a rising demand for more efficient airtravel and more stringent measures when testing for air worthiness, we believeAir Touring is well placed to benefit. We continue to see potential in companies providing services to the oil industryand have taken the opportunity to invest in Lamprell and Velosi which are bothinvolved in this sector. Prospects The current year has started well. Since the year end, we have generated furthernet profits of £1.337 million for your Company and VCT-qualifying investmentshave risen to 70.2% of the Company. Cash balances represent 19.6% of the fund,thus providing some protection in the event of a Market fall but alsooffering the opportunity to invest in further promising new investments. Thetotal number of holdings now amounts to 55 and you will be pleased to learn thatas at 19th June 2007, the net asset value of the Company has risen to 154.7p pershare. Michael BarnardIncome Statement (incorporating the revenue account) for the period to 28 February 2007 \* T Period ended Period ended 28 February 2007 31 March 2006 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000Gains on investments- realised 0 1175 1175 0 55 55- unrealised 0 -262 -262 0 2180 2180Income 111 - 111 226 0 226Investment management fee -29 -87 -117 -27 -83 -110Other expenses -25 - -25 -38 - -38 -------------- ----------- ------ ----------- --------- --------Return on ordinary activities before taxation 56 825 881 161 2152 2313Tax (charge)/credit on ordinary activities 0 0 0 -30 15 -15 -------------- ----------- ------ ----------- --------- --------Return on ordinary activities after taxation 56 825 881 131 2167 2298Dividends - - - - - - -------------- ----------- ------ ----------- --------- --------Transfer to reserves 56 825 881 131 2167 2298 ============== =========== ====== =========== ========= ======== Return per ordinary share 0.73 9.76 10.49 1.54 25.61 27.15\* T All revenue and capital items in the above statement are from continuingoperations in the current year. No operations were acquired or discontinued inthe current period. Other than shown above, the company had no recognised gainsor losses. Accordingly no statement of total recognised gains and losses hasbeen prepared. \* T Period ended Period ended 31 March 2006Balance Sheet 28 February 2007 £000At 28 February 2007 £000 Fixed assetsInvestments 8,934 9,088 Current assetsDebtors 2,528 1,637 Creditors: amounts falling duewithin one year -29 -47 ---------------------- ---------------------- 11,433 10,678 ====================== ======================Capital and reservesCalled up share capital 846 846Share premium 7,534 7,534Capital reserve - realised 1,131 68Capital reserve - unrealised 1,862 2,099Revenue reserve 60 131 ---------------------- ----------------------Total equity shareholders' funds 11,434 10,678 ====================== ======================Net asset value per ordinary share 135p 126p ====================== ======================\* T Cash Flow Statement for the period to 28 February 2007 \* TOperating activity £000 £000Operating profit 2,313Profit on sale of investments -55Unrealised gains on investments -2,180Investment income -226Increase in creditors 32Net cash inflow from operating activities -116Returns on investmentsInterest received 213Investment income 13Net cash inflow for returns on investments and servicing of finance 226TaxationCapital expenditure & financial investmentSale of investments 864Purchase of investments -7,717Net cash outflow for capital expenditure & financial investment -6,853 ______Net cash outflow before financing -6,743Share issue 8,464Expenses paid in connection with share issue -84Net cash inflow from financing 8,380Uninvested funds with Broker 1,637\* T Notes 1 Return per share The Revenue return per ordinary share is based on net revenue on ordinaryactivities after taxation of £56,174 (2006:£130,399) and on 8,464,500 ordinaryshares (2006:8,464,500), being the weighted average number of ordinary shares inissue during the year. The capital return per ordinary share is based on a net realised and unrealisedcapital profit of £825,813 (2006:£2,167,892) and on 8,464,500 ordinary shares(2006:8,464,500), being the weighted average number of ordinary shares in issueduring the period. 2 Dividend The directors are proposing a final dividend of 0.7p per share for the periodended 28 February 2007. 3 Accounts The results set out above are not full accounts within the meaning of s.240 ofthe Companies Act 1985 and have not been reported on but have been agreed withthe company's auditors. The Annual Report and Accounts for the period ended 28 February 2007 will befiled at the Registrar of Companies following the annual general meeting andwill be posted to shareholders shortly. 4 Announcement A copy of this announcement will be available at the offices of the Company for14 days from the date of this announcement. This preliminary announcement is notbeing posted to shareholders. Directors John Roger Simpson Brice (Chairman)Michael David BarnardGeoffrey GambleRobin KirbyPeter William Riley All directors are non-executive. Management and Administration \* TRegistered Office & Registered Number Investment Manager and Broker4th Floor, M D Barnard & Company Limited150-152 Fenchurch Street 17-21 New Century RoadLondon EC3M 6BB Laindon Essex SS15 6AG5352611Company Secretary Auditor & VCT Status Adviser Woodside Secretaries Limited UHY Hacker Young4th Floor, St Alphage House150-152 Fenchurch Street 2 Fore StreetLondon EC3M 6BB London EC2Y 5DHRegistrar Sponsor Neville Registrars Limited Teather & Greenwood LimitedNeville House, 18 Laurel Lane Beaufort HouseHalesowen, West Midlands B63 3DA 15 St Botolph StreetGlasgow G2 2BR London EC3A 7QRSolicitors Bankers Dundas & Wilson Bank of Scotland5th Floor, Northwest Wing New Uberior HouseBush House 11 Earl Grey StreetAldwych Edinburgh EH3 9BNLondon WC2B 4EZ\* T Copyright Business Wire 2007