26 Oct 2012 15:45
New Century AIM VCT plc
For the six months to 31st August 2012
Chairman's Statement
In the 6 months to 31st August, 2012, the net asset value of your fund slipped by 1.0% to 56.8p which is marginally above the 2.3% decline of the FTSE Aim Index over the same period. Qualifying investments at 75% remained above the 70% required under VCT rules.
During the period, the fund benefited from the takeovers of Boomerang and General Medical Clinics. Although this resulted in a loss on both against book value, they still appreciated in value by £67,500 since the company's year-end. ILX disappointed when the company announced a breach of banking covenants. Since then, this company has had a capital injection and the shares have been recovering. Lighthouse shares fell sharply when the company announced it was going private. However, the majority of shareholders voted against this move and the Directors were forced to reverse their decision. The share price has since seen a large recovery. Music Festivals was adversely affected by poor attendances at their music concerts due to a combination of bad weather, increased competition from other concerts, and the general lack of consumer expenditure. Unfortunately, this company has now gone into receivership. Poor results and a cash raising exercise led to a sharp fall in the shares of Merchant House. Although the company is still trading, their shares are currently suspended. Nature Group who treat waste marine oil had an explosion in one of their storage tanks and this has impacted both their profitability and their share price. The company is still awaiting the results of an insurance claim. On a positive front, Advanced Computer continued to announce excellent results and your fund's holding in that company has increased by £223,100 over the period.
Dividends and interest over the period have increased from £39,000 to £60,000 which augers well for dividend prospects for the year as a whole.
The second half has started very well with the asset value as at the 21st October, 2012 rising to 60.9p per share.
For many years it has been possible to sell large quantities of shares in the company at a small discount to asset value, without resorting to a buy back. However, over the past year there has been very little demand for the shares with the consequence that the shares have fallen sharply on low volume and now stand at a large discount to net asset value. To rectify this situation, the Directors are implementing a buy back programme. This involves a capital reconstruction, details of which have already been sent to shareholders. We plan to contact shareholders when the reconstruction goes through, giving them the opportunity to tender any of their shares for sale at a 5% discount to asset value. We are allowed to buy back up to 15% of the share capital per annum providing we have the reserves and cash to do so. The share reconstruction will also give us scope to have a more progressive dividend policy unencumbered by past capital losses.
Geoff Gamble
26 October 2012
New Century AIM VCT plc
For the six months to 31st August 2012
Balance Sheet
| Interim Accounts | Final Accounts | Interim Accounts | |||||||||||||||||
| as at 31 August 2012 | as at 29 February 2012* | as at 31 August 2011 | |||||||||||||||||
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | ||||||||||||||
| Fixed Assets | |||||||||||||||||||
| Investments | 5,743 | 6,074 | 5,929 | ||||||||||||||||
| Current Assets | |||||||||||||||||||
| Sundry debtors | 0 | 0 | 0 | ||||||||||||||||
| Uninvested cash | 386 | 386 | 115 | 115 | 320 | 320 | |||||||||||||
| Current Liabilities | |||||||||||||||||||
| Creditors: amounts due | |||||||||||||||||||
| within one year | -25 | -25 | 0 | ||||||||||||||||
| 6,104 | 6,164 | 6,249 | |||||||||||||||||
| Capital and Reserves | |||||||||||||||||||
| Share capital | 1,073 | 1,073 | 1,073 | ||||||||||||||||
| Share premium | 9,003 | 9,003 | 9,003 | ||||||||||||||||
| Capital reserve - realised | 2,016 | 2,144 | 2,287 | ||||||||||||||||
| Capital reserve - unrealised | -6,067 | -6,100 | -6,149 | ||||||||||||||||
| Revenue reserve | 79 | 44 | 35 | ||||||||||||||||
| 6,104 | 6,164 | 6,249 | |||||||||||||||||
| Asset Value per share | 57p | 57p | 58p | ||||||||||||||||
|
| *Audited accounts | ||||||||||||||||||
New Century AIM VCT plc
For the six months to 31st August 2012
Unaudited Income Statement
(incorporating the revenue account)
| 6 month period ended 31 August 2012 | Year to 29 February 2012* | 6 month period ended 31 August 2011 | |||||||||||||||||||||
| Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total | |||||||||||||||
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |||||||||||||||
| Gains on investments | |||||||||||||||||||||||
| Realised | 0 | 105 | 105 | 0 | 71 | 71 | 0 | 71 | 71 | ||||||||||||||
| Unrealised | 0 | -177 | -177 | 0 | -310 | -310 | 0 | -239 | -239 | ||||||||||||||
| Income | 60 | 0 | 60 | 94 | 0 | 94 | 39 | 0 | 39 | ||||||||||||||
| Investment management fees | -8 | -23 | -31 | -15 | -48 | -63 | -8 | -24 | -32 | ||||||||||||||
| Other expenses | -17 | 0 | -17 | -36 | 0 | -36 | -16 | 0 | -16 | ||||||||||||||
| Return on ordinary activities | 35 | -95 | -60 | 43 | -287 | -244 | 15 | -192 | -177 | ||||||||||||||
| Tax on ordinary activities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
| Return on ordinary activities | |||||||||||||||||||||||
| after taxation | 35 | -95 | -60 | 43 | -287 | -244 | 15 | -192 | -177 | ||||||||||||||
| Return per ordinary share in pence | 0.33 | -0.89 | -0.56 | 0.40 | -2.67 | -2.27 | 0.14 | -1.79 | -1.65 | ||||||||||||||
| *Audited Accounts | |||||||||||||||||||||||
| All revenue and capital items in the above statement derive from continuing operations. | |||||||||||||||||||||||
| The company has only one class of business and derives its income from investments in shares and securities, and | |||||||||||||||||||||||
| from bank and money market funds. | |||||||||||||||||||||||
| The weighted average number of shares in issue during the period was 10,734,329. | |||||||||||||||||||||||
New Century AIM VCT plc
For the six months to 31st August 2012
Unaudited Cash Flow Statement
| 6 month period ended 31 August 2012 | Year to 29 February 2012* | 6 month period ended 31 August 2011 | ||||||||||
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |||||||
| Operating activity: Net cash outflow | -48 | -99 | -73 | |||||||||
| Returns on investments | ||||||||||||
| Interest received | 6 | 5 | 2 | |||||||||
| Investment income | 54 | 60 | 89 | 94 | 37 | 39 | ||||||
| Taxation | 0 | 0 | 0 | |||||||||
| Dividend paid | 0 | -19 | 0 | |||||||||
| Financial investment | ||||||||||||
| Sale of investments | 562 | 1,033 | 469 | |||||||||
| Purchase of investments | -303 | 259 | -1,337 | -304 | -557 | -88 | ||||||
| Net cash inflow/ -outflow before financing | 271 | -328 | -122 | |||||||||
| Net proceeds of share issue | 0 | 111 | 110 | |||||||||
| 271 | -217 | -12 | ||||||||||
| Increase/ -decrease in uninvested cash with broker | 271 | -217 | -12 | |||||||||
| *Audited Accounts | ||||||||||||
New Century AIM VCT plc
| Security | Cost | Valuation | % | % | |||||||
| 31 August 2012 | Cost | Valuation | |||||||||
| Qualifying Investments | 9166242.04 | 3952721.04 | 75.27 | 64.49 | |||||||
| Non-qualifying Investments | 2626582.91 | 1790669.20 | 21.56 | 29.22 | |||||||
| 11792824.95 | 5743390.24 | 96.83 | 93.71 | ||||||||
| Uninvested funds | 385690.50 | 385690.50 | 3.17 | 6.29 | |||||||
| 12178515.45 | 6129080.74 | 100.00 | 100.00 | ||||||||
| Qualifying Investments | |||||||||||
| AIM Quoted | |||||||||||
| Tristel plc | 245871.62 | 226764.00 | 2.02 | 3.70 | |||||||
| PHSC plc | 182910.00 | 52500.00 | 1.50 | 0.86 | |||||||
| DCD Media plc | 522600.00 | 16000.00 | 4.29 | 0.26 | |||||||
| Legion Group plc | 175875.00 | 0.00 | 1.44 | 0.00 | |||||||
| K3 Business Technology Group | 90359.55 | 184815.00 | 0.74 | 3.01 | |||||||
| Belgravium Technologies | 281400.00 | 140000.00 | 2.31 | 2.28 | |||||||
| ILX Group | 753750.00 | 85312.50 | 6.19 | 1.39 | |||||||
| Lighthouse Group plc | 203512.50 | 60000.00 | 1.67 | 0.98 | |||||||
| AT Communications Group | 422100.00 | 0.00 | 3.47 | 0.00 | |||||||
| Invocas Group plc | 100399.50 | 9000.00 | 0.82 | 0.15 | |||||||
| Jelf Group plc | 157131.75 | 84075.00 | 1.29 | 1.37 | |||||||
| Relax Group | 135675.00 | 0.00 | 1.11 | 0.00 | |||||||
| Brulines (Hldgs) plc | 40174.88 | 32825.00 | 0.33 | 0.54 | |||||||
| HML Holdings plc | 351549.00 | 198400.00 | 2.89 | 3.24 | |||||||
| Sinclair Pharma | 211050.09 | 217630.80 | 1.73 | 3.55 | |||||||
| Western & Oriental plc | 502500.00 | 0.00 | 4.13 | 0.00 | |||||||
| EBTM plc | 640887.50 | 0.00 | 5.26 | 0.00 | |||||||
| Sport Media Group | 125624.50 | 0.00 | 1.03 | 0.00 | |||||||
| Environ Group plc | 704900.00 | 0.00 | 5.79 | 0.00 | |||||||
| Kurawood plc | 150750.00 | 0.00 | 1.24 | 0.00 | |||||||
| Fishworks plc | 180900.00 | 0.00 | 1.49 | 0.00 | |||||||
| Optare plc | 50752.59 | 808.00 | 0.42 | 0.01 | |||||||
| Advanced Computer Software | 331449.00 | 1202800.00 | 2.72 | 19.62 | |||||||
| Cyan Holdings plc | 250792.19 | 163267.00 | 2.06 | 2.66 | |||||||
| Marechale Capital plc | 202005.00 | 25000.00 | 1.66 | 0.41 | |||||||
| Lombard Risk Mgt | 24120.00 | 54000.00 | 0.20 | 0.88 | |||||||
| Savile Group | 126254.13 | 20625.00 | 1.04 | 0.34 | |||||||
| Winkworth plc | 72360.00 | 74700.00 | 0.59 | 1.22 | |||||||
| Green Compliance plc | 100627.89 | 15750.18 | 0.83 | 0.26 | |||||||
| Bango plc | 43215.00 | 167000.00 | 0.35 | 2.72 | |||||||
| Cupid plc | 155272.50 | 533025.00 | 1.27 | 8.70 | |||||||
| Kennedy Ventures | 70350.00 | 500.00 | 0.58 | 0.01 | |||||||
| Eco City Vehicles | 76682.60 | 28109.83 | 0.63 | 0.46 | |||||||
| Corac Group plc | 109277.73 | 50738.38 | 0.90 | 0.83 | |||||||
| Brady plc | 41805.08 | 66975.00 | 0.34 | 1.09 | |||||||
| Angel Biotech | 133383.53 | 76161.42 | 1.10 | 1.24 | |||||||
| Music Festivals plc | 68089.67 | 2605.58 | 0.56 | 0.04 | |||||||
| Inspired Energy | 131161.49 | 143833.35 | 1.08 | 2.35 | |||||||
| Microsaic Systems | 20104.00 | 19500.00 | 0.17 | 0.32 | |||||||
| 8187623.29 | 3952721.04 | 67.24 | 64.49 | ||||||||
| Plus Markets Quoted | |||||||||||
| CKS Group plc | 526368.75 | 0.00 | 4.32 | 0.00 | |||||||
| Air Touring | 201000.00 | 0.00 | 1.65 | 0.00 | |||||||
| 727368.75 | 0.00 | 5.97 | 0.00 | ||||||||
| Unlisted Investments | |||||||||||
| Air Touring Group plc | 251250.00 | 0.00 | 2.06 | 0.00 | |||||||
| 251250.00 | 0.00 | 2.06 | 0.00 | ||||||||
| Total qualifying investments | 9166242.04 | 3952721.04 | 75.27 | 64.49 | |||||||
| Non Qualifying Investments | |||||||||||
| AIM Quoted | |||||||||||
| Arbuthnot Banking Group | 33310.66 | 37450.00 | 0.27 | 0.61 | |||||||
| Commodity Growth plc | 150750.00 | 42000.00 | 1.24 | 0.68 | |||||||
| DCD Media plc | 40200.00 | 1000.00 | 0.33 | 0.02 | |||||||
| Impact Holdings (UK) plc | 26160.00 | 2490.00 | 0.22 | 0.04 | |||||||
| STM Group plc | 54738.50 | 39520.00 | 0.45 | 0.64 | |||||||
| NetDimensions Ltd | 31155.00 | 16000.00 | 0.26 | 0.26 | |||||||
| Ashley House plc | 116974.50 | 14700.00 | 0.96 | 0.24 | |||||||
| Sanderson Group | 92521.02 | 87500.00 | 0.76 | 1.43 | |||||||
| Eco City Vehicles | 62116.00 | 21000.00 | 0.51 | 0.34 | |||||||
| Pactolus Hungarian Prop. | 49748.50 | 19500.00 | 0.41 | 0.32 | |||||||
| Burford Capital | 25250.00 | 26750.00 | 0.21 | 0.44 | |||||||
| Rotala plc | 70007.50 | 81700.00 | 0.57 | 1.33 | |||||||
| Motivcom | 25470.72 | 29370.00 | 0.21 | 0.48 | |||||||
| First Derivatives plc | 19797.00 | 32900.00 | 0.16 | 0.54 | |||||||
| Tristel plc | 59.79 | 36.00 | 0.00 | 0.00 | |||||||
| K3 Business Technology | 131.36 | 185.00 | 0.00 | 0.00 | |||||||
| Bango plc | 290.90 | 334.00 | 0.00 | 0.01 | |||||||
| Interior Services | 9393.00 | 6250.00 | 0.08 | 0.10 | |||||||
| China Food Co plc | 46219.52 | 24725.00 | 0.38 | 0.40 | |||||||
| Hansard Global plc | 24727.00 | 17850.00 | 0.20 | 0.29 | |||||||
| 2Ergo Group | 37878.73 | 17522.50 | 0.31 | 0.29 | |||||||
| Bezant Resources plc | 15078.00 | 8475.00 | 0.12 | 0.14 | |||||||
| In-Deed Online | 133811.70 | 117290.00 | 1.10 | 1.91 | |||||||
| Merchant House Group | 45228.00 | 0.00 | 0.37 | 0.00 | |||||||
| Geong International | 9801.75 | 1062.50 | 0.08 | 0.02 | |||||||
| Spectra Systems | 24886.19 | 6576.20 | 0.20 | 0.11 | |||||||
| Networkers International | 25014.12 | 25900.00 | 0.21 | 0.42 | |||||||
| Microsaic Systems plc | 31516.00 | 46800.00 | 0.26 | 0.76 | |||||||
| Merchant House | 18095.38 | 0.00 | 0.15 | 0.00 | |||||||
| Renew Hldgs | 20763.52 | 26100.00 | 0.17 | 0.43 | |||||||
| Numis Corp | 16570.00 | 19000.00 | 0.14 | 0.31 | |||||||
| Randall & Quilter Inv plc | 29395.00 | 31200.00 | 0.24 | 0.51 | |||||||
| Hightex | 21676.20 | 24650.00 | 0.18 | 0.40 | |||||||
| Nature Group plc | 26636.50 | 13000.00 | 0.22 | 0.21 | |||||||
| Top Level Domain | 4648.55 | 2803.00 | 0.04 | 0.05 | |||||||
| Probability plc | 14952.00 | 14600.00 | 0.12 | 0.24 | |||||||
| Quindell Portfolio | 23745.46 | 28000.00 | 0.19 | 0.46 | |||||||
| Alliance Pharma | 21368.00 | 20800.00 | 0.18 | 0.34 | |||||||
| Avingtrans | 14638.90 | 19090.00 | 0.12 | 0.31 | |||||||
| 32 RED | 9055.12 | 10750.00 | 0.07 | 0.17 | |||||||
| Gable Holdings | 12112.11 | 12000.00 | 0.10 | 0.20 | |||||||
| 1435892.20 | 946879.20 | 11.79 | 15.45 | ||||||||
| UK Listed | |||||||||||
| Investec | 477227.00 | 160000.00 | 3.92 | 2.61 | |||||||
| Premier Farnell | 44542.00 | 41250.00 | 0.37 | 0.67 | |||||||
| Diploma plc | 35926.72 | 85400.00 | 0.30 | 1.39 | |||||||
| 4Imprint Group | 30806.00 | 60600.00 | 0.25 | 0.99 | |||||||
| Tesco plc | 25625.37 | 21840.00 | 0.21 | 0.36 | |||||||
| British American Tobacco | 44188.50 | 66030.00 | 0.36 | 1.08 | |||||||
| Astrazeneca | 61213.05 | 58720.00 | 0.50 | 0.96 | |||||||
| G4S plc | 19464.03 | 18975.00 | 0.16 | 0.31 | |||||||
| Greggs plc | 30775.46 | 29400.00 | 0.25 | 0.48 | |||||||
| Aviva plc | 22268.19 | 16300.00 | 0.18 | 0.27 | |||||||
| Chemring Group | 39378.86 | 19740.00 | 0.32 | 0.32 | |||||||
| HSBC | 21955.47 | 19145.00 | 0.18 | 0.31 | |||||||
| KCOM Group | 25982.55 | 27300.00 | 0.21 | 0.44 | |||||||
| Tullett Prebon | 18010.04 | 14500.00 | 0.15 | 0.24 | |||||||
| TT Electronics | 24595.46 | 22200.00 | 0.20 | 0.36 | |||||||
| William Hill plc | 24677.26 | 30000.00 | 0.20 | 0.49 | |||||||
| Vodafone Group | 17174.00 | 18100.00 | 0.14 | 0.29 | |||||||
| BP | 22425.85 | 22050.00 | 0.19 | 0.36 | |||||||
| Sportingbet | 15903.82 | 19500.00 | 0.13 | 0.32 | |||||||
| Imperial Tobacco | 23763.20 | 24560.00 | 0.20 | 0.40 | |||||||
| Marstons | 15054.32 | 16650.00 | 0.12 | 0.27 | |||||||
| IMI | 14737.38 | 12900.00 | 0.13 | 0.21 | |||||||
| Carrillion | 13664.26 | 13850.00 | 0.11 | 0.23 | |||||||
| Lonrho | 14811.62 | 12000.00 | 0.12 | 0.20 | |||||||
| GKN | 11042.30 | 12780.00 | 0.09 | 0.21 | |||||||
| 1095212.71 | 843790.00 | 8.99 | 13.77 | ||||||||
| Unlisted Investments | |||||||||||
| Environ plc | 50250.00 | 0.00 | 0.41 | 0.00 | |||||||
| Merchant House | 45228.00 | 0.00 | 0.37 | 0.00 | |||||||
| 95478.00 | 0.00 | 0.78 | 0.00 | ||||||||
| Total non-qualifying investments | 2626582.91 | 1790669.20 | 21.56 | 29.22 |
New Century AIM VCT plc
Notes to the Accounts
| 1 | This interim financial information and the unaudited interim accounts for the six months to 31 August 2012 from | |
| which it has been extracted, are the responsibility of the directors and were approved by them on 26 October 2012, | ||
| do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 and have | ||
| not been delivered to the Registrar of Companies. | ||
| 2 | The Company is an investment company as defined in Section 833 of the Companies Act 2006. The financial | |
| statements have been prepared under the historical cost convention, modified to include the revaluation of fixed | ||
| asset investments, and in accordance with applicable accounting standards in the UK and with the Statement | ||
| of Recommended Practice "Financial statements and investment trust companies" issued in January 2003 | ||
| and revised in December 2005. | ||
| 3 | Listed, AIM or Plus Markets-traded investments are stated at market value, which is based upon market bid prices | |
| at the balance sheet date. | ||
| 4 | 10,734,329 Ordinary Shares of 10 pence each were in issue throughout the period under review. | |
| 5 | Net Asset Value per share at 31 August 2012 was 57p (at 29 February 2012: 57p; 31 August 2011 58p). | |
| 6 | On 30 August 2012 the Company passed a special resolution to cancel all of its Share Premium. The Share Premium in issue will be transferred to retained earnings as part of the revenue reserve once Court approval has been obtained. | |
| 7 | No dividend was paid in the period. | |
| 8 | Copies of the Interim Report to Shareholders have been sent to shareholders and are available at the Company's | |
| Registered Office: 17/21 New Century Road, Laindon SS15 6AG or from Woodside Corporate Services, | ||
| 4th Floor, 150-152 Fenchurch Street, London EC2M 6BB. |
New Century AIM VCT plc
Directors, Investment Managers and Advisors
| Directors, Investment Manager and Advisors | |||
| Directors | Geoffrey Charles Gamble (Chairman) | ||
| Michael David Barnard | |||
| Peter William Riley | |||
| Ian Cameron-Mowat | |||
| Secretary | Woodside Secretaries Ltd | ||
| and registered office | 7th Floor, 52-54 Gracechurch Street | ||
| London EC3V 0EH | |||
| Investment Manager and Broker | MD Barnard & Co Ltd | ||
| 17-21 New Century Road | |||
| Laindon | |||
| Essex SS15 6AG | |||
| Registrars | Neville Registrars | ||
| 18 Laurel Lane | |||
| Halesowen | |||
| B63 3DA | |||
| Auditor and VCT status advisors | UHY Hacker Young LLP | ||
| Quadrant House | |||
| 4 Thomas More Square | |||
| London E1W 1YW | |||
| Bankers | Bank of Scotland | ||
| New Uberior House | |||
| 11 Earl Grey Street | |||
| Edinburgh EH3 9BN | |||
Copyright Business Wire 2012