Octopus Aim 2 Regulatory News (OSEC)

16 Feb 2007 14:23

Close IHT AIM VCT PLC16 February 2007 CLOSE IHT AIM VCT PLC PRELIMINARY ANNOUNCEMENT OF FINAL RESULTS FOR THE PERIOD FROM 4 AUGUST 2005 TO 30 NOVEMBER 2006 Close IHT AIM VCT PLC ("the Company"), which invests in companies listed on theAlternative Investment Market ("AIM"), across a variety of sectors, todayannounces finals results for the period from incorporation on 4 August 2005("date of incorporation") to 30 November 2006. The Company commenced activitieson 24 January 2006. This announcement was approved by the Board of Directors on16 February 2007. CHAIRMAN'S STATEMENT I would like to welcome new shareholders to the Company and am pleased topresent your Company's first results, which relate to a period fromincorporation of the Company on 4 August 2005 to 30 November 2006. Between January and March 2006, the Company raised £25 million (£23.63 millionnet of expenses) through three allotments of shares. These share issues weresplit 7.32 million 'A' shares and 17.68 million 'B' shares. The 'A' share classfollow the traditional AIM VCT structure, whereas the novel 'B' share class(with a minimum investment of £50,000) offer investors the opportunity to obtaininheritance tax relief under present legislation. Performance From launch to 30 November 2006, the Company completed twelve investments inqualifying AIM listed companies, totalling £4.4 million. In the period, two ofthese twelve investments - Debts.co.uk and Invocas - were sold, crystallisingprofits in both cases. In addition, as detailed in the prospectus, £3.25 millionwas invested in the Close Special Situations Fund. Further details of theseinvestments can be found in the Investment Manager's report. I am pleased to saythat, in aggregate, these investments are showing a modest premium to book costat 30 November 2006. As a result of this, the Company's net asset value per share has risen slightlyfrom its initial 94.5p (net of fund raising costs) to 94.7p as at 30 November2006. Dividends The Directors believe in maximising tax free dividends to shareholders and theCompany intends to pay dividends twice a year. The Company paid a first dividendof 1.4p in September 2006 to shareholders from the initial allotment on 24January 2006. The Directors have declared a first dividend for the current financial period of1.0p to all shareholders. This dividend will be paid on 23 March 2007 toshareholders on the register as at 2 March 2007. Buy-back Policy The Board has adopted a share buy-back policy whereby the Company, when able,will buy-back shares at around an 8% discount to the prevailing net asset valueper share. This is designed to improve the marketability of the shares and toencourage the shares to trade at a narrower discount to their underlying worth. Shareholders wishing to sell their shares should first contact the InvestmentManager, Close Investments Limited on 020 7426 4059. Shareholders should notethat if they sell their shares within three years of the original purchase, theywould lose any tax relief that have been obtained. Annual General Meeting The Company's Annual General Meeting will be held at 10 Crown Place, London EC2A4FT at 12 noon on Wednesday 18 April 2007. I look forward to seeing as manyshareholders there as possible. The Investment Manager will be presenting areview of the portfolio and it will be an opportunity for you to meet the Boardand the Investment Manager to discuss the Company and its investments. Outlook Despite the continuing popularity of AIM in general, the flow of high qualityVCT qualifying investment opportunities remains thin. The main challenge for theInvestment Manager therefore, is finding enough new attractive qualifyinginvestments at sensible valuations. The UK economy is forecast to record another year of satisfactory growth in2007, although incipient signs of inflation, and the potential consequences forinterest rates, are a concern. To date, such concerns have not had a materialimpact on individual portfolio companies, although they may in due course cometo have a negative impact on sentiment towards smaller companies generally. The Investment Manager anticipates making several new investments in forthcomingmonths. I look forward to updating you on their progress. Keith MullinsChairman16 February 2007 Income Statement for the period from 4 August 2005 to 30 November 2006 Revenue Capital Total £'000 £'000 £'000Gains on investments - 56 56Investment Income 760 - 760Investment management fees (114) (342) (456)Other expenses (119) - (119) -------- -------- --------Return on ordinary activities before finance costsand taxation 527 (286) 241 -------- -------- --------Finance costs (4) - (4) -------- -------- --------Return on ordinary activities before taxation 523 (286) 237Taxation (charge)/credit on ordinary activities (95) 65 (30) -------- -------- --------Return attributable to equity shareholders 428 (221) 207 -------- -------- --------Return per ordinary share (pence) - basic anddiluted 1.86p (0.96)p 0.90p • All of the Company's activities derive from continuing activities. • No operations were acquired or discontinued during the period. • The Company has no recognised gains or losses other than those above, accordingly a statement of total recognised gains and losses is not required. • The total column of the Income Statement represents the profit and loss of the Company. The supplementary revenue return and capital return columns have been prepared in accordance with the Association of Investment Companies' Statement of Recommended Practice. Balance Sheet as at 30 November 2006 £'000Fixed AssetsInvestments 22,342 ----------- Current assetsDebtors 139Cash at bank 1,551 ----------- 1,690 -----------Creditors: amounts falling due (357)within one year -----------Net current assets 1,333 -----------Net assets 23,675 ----------- Capital and reserves:Called up share capital 3Special reserve 23,623Capital reserve - realised (209)Capital reserve - unrealised (12)Revenue reserve 270 -----------Equity shareholders' funds 23,675 -----------Net asset value per Ordinary share (pence) 94.70p ----------- Reconciliation of movements in shareholders' funds for the period from 4 August 2005 to 30 November 2006 Called up share Share premium Special reserve Capital reserve Capital reserve Revenue reserve Total capital - realised - unrealised £'000 £'000 £'000 £'000 £'000 £'000 £'000As at 4 - - - - - - -August2005 Issue ofequity 3 24,998 - - - - 25,001 Issue costsof - (1,375) - - - - (1,375)equity Transfer tospecialreserve - (23,623) 23,623 - - - - Gains onsales - - - 68 - - 68ofinvestments Capitalisedmanagement - - - (342) - - (342)fee Tax oncapitalisedmanagementfees - - - 65 - - 65 Unrealiseddepreciationon - - - - (12) - (12)investments Revenue - - - - - 428 428return Dividends - - - - - (158) (158)paid ------- ------- -------- -------- -------- ------- -------As at 30November 3 - 23,623 (209) (12) 270 23,6752006 ------- ------- -------- -------- -------- ------- ------- Cash Flow Statement for the period from 4 August 2005 to 30 November 2006 £'000Operating activitiesInvestment income received 192Deposit interest received 438Other expenses paid (475) -------------Net cash inflow from operating activities 155 -------------Servicing of financeInterest paid (4) Capital expenditure and financial investmentPurchase of investments (22,448)Disposal of investments 380 -------------Net cash (outflow) from investing activities (22,068) -------------Dividends Equity dividends paid (158) -------------FinancingIssue of Ordinary share capital 23,626 -------------Increase in cash 1,551 ------------- Notes: 1. Details about the Investment Manager Close IHT AIM VCT PLC is managed by Close Investments Limited. Close InvestmentsLimited is authorised and regulated by the Financial Services Authority and is asubsidiary of Close Brothers Group plc. 2. Return per Ordinary share The revenue return per Ordinary share is based on the net revenue return onordinary activities after taxation of £428,000 in respect of the weightedaverage number of shares in issue during the period from commencement ofactivities, being 23,046,946 shares.The capital return per Ordinary share is based on the net capital return onordinary activities after taxation of (£221,000) in respect of the same weightedaverage number of shares in issue as stated above. There are no dilutive elements and hence the basic return per share is the sameas the diluted return per share. 3. Net asset value per share Net asset value per share is based on net assets attributable to Ordinaryshareholders of £23,675,165 and on 25,000,511 Ordinary shares in issue at 30November 2006. 4. Financial Information The financial information set out above is unaudited and does not constitute theCompany's statutory accounts for the period ended 30 November 2006. Statutoryaccounts for the period ended 30 November 2006 will be delivered to theRegistrars of Companies in due course. For further information, please contact: Andrew Buchanan / Freda Isingoma Karen Wagg/Despina ConstantinidesClose Investments Limited Polhill CommunicationsTel: 020 7426 4000 Tel: 0207 6550500 This information is provided by RNS The company news service from the London Stock Exchange