OTT.L Regulatory News (OTT)

8 May 2006 12:44

Oxford Technology 3 VCT PLC08 May 2006 Preliminary Announcement for Oxford Technology 3 Venture Capital Trust plc for the year ended 28 February 2006 Chairman's Statement Investment Portfolio Overall, the Directors of Oxford Technology 3 VCT are pleased with the progressmade by investee companies. As is to be expected, a couple of investee companieshave had disappointing years, but many have performed well, and some havesuccessfully raised further capital at increased share prices, reflecting theunderlying progress made. However, it is not always possible to translate 'general good progress' into anincrease in Net Asset Value, particularly where an investee company has notneeded to raise additional capital, or if the company is not yet profitable(where this is the case, the mechanism for revaluation is clear - either the newshare price, or a suitable price to earnings multiple). On the other hand,investees that have raised capital at a reduced share price, or are failing tomeet significant targets will always be written down in the Net Asset Value. This conservative approach to valuation of recognising poor performance but notalways recognising strong performance means that a reduction in overall NetAsset Value does not necessarily mean the portfolio as a whole is doing badly -and this is true for Oxford Technology 3 VCT, where the Directors are generallypleased with the portfolio, despite the drop in Net Asset Value. Perhaps thebest way to evaluate the performance of the portfolio is to follow theindividual investee companies, and that is why Oxford Technology 3 VCT tries togive fairly full descriptions of each company in its newsletters. A number of companies have performed well over the year (but, in most cases,have not been 'written up' in value). BioAnaLab, which performs clinical assaysfor pharmaceutical companies developing biologic drugs, has continued to growits client base, including securing a contract worth at least £0.5m from onelarge pharmceutical company. Commerce Decisions, which provides software to organisations involved in complexand strategically important procurements (such as battleships, hospitals ortransport infrastructure), achieved its first £1m revenue year in 05/06, and isset to see this grow by about 70% this year. ImmunoBiology, which is developing novel vaccines for tuburculosis and influenza(including pandemic 'bird flu') closed an investment round of £5.5m which seesthe company funded for the next three years, a tremendous achievement for a drugdevelopment company in the current market. Im-Pak, which has developed a noveltechnology for plastic injection moulding, has agreed heads of terms with apublic company for a licence on the Im-Pak process for a particular marketsector. If the agreement is concluded, Im-Pak would receive lump sum payments,as well as monthly royalties as the technology is exploited. Caretek Medical, which has developed an ingenious drug delivery system that isboth needle free and able to deliver drugs painlessly in solid form hascompleted a fund raising of £2m at an increased share price. Ixaris, which hasdeveloped an online payment system, continues to grow its revenues, and raised£3.5m in the year , including £2.0m from Foresight. Telegesis is attractingsignificant interest from major global players for its Zigbee modules. Fuller information on each of the investee companies is given in the latestnewsletter. Results for the year Interest on bank deposits and investee loans together with dividend incomeproduced gross revenue of £25,000 (2005: £56,000) in the year. Net revenue aftertaxation and management expenses was a loss of £133,000 (2005: loss of £104,000)and revenue return for the year was a loss of 2.46p (2005: loss of 1.92p) pershare. Capital return was a loss of 13.17p (2005: gain of 9.14p) per share. Thegraph on page 7 shows the historical Net Current Assets (chiefly cash) plusGilts per share, and Other Investments (the fund's venture capital investments)per share. Together, these two figures make up the total Net Asset Value pershare. The graph also shows cumulative dividends paid to date. AGM Shareholders should note that the AGM for OT3 VCT will be held on Monday 19thJune 2006, at the Magdalen Centre, Oxford Science Park, starting at 12.00 noonand will include presentations by some of the companies in which the OxfordTechnology VCTs have invested. A formal Notice of AGM has been included at theback of these Accounts together with a Form of Proxy for those not attending. John Jackson Chairman 5 May 2006 Statement of total return (incorporating the revenue account)* for the year ended 28 February 2006 2006 2005 Audited Audited Revenue Capital Total Revenue Capital Total £000 £000 £000 £000 £000 £000Gains / (losses) on investments - (712) (712) - 494 494Income 25 - 25 56 - 56Investment managment fee (102) - (102) (105) - (105)Other expenses (56) - (56) (55) - (55) _____ _____ _____ _____ _____ _____Net return / (loss) on ordinary activities (133) (712) (845) (104) 494 390before taxationTax on net return/(loss) on ordinary - - - - - -activities _____ _____ _____ _____ _____ _____Return / (loss) attributable to equity (133) (712) (845) (104) 494 390shareholders and transfers to / (from)reserves ====== ====== ====== ====== ====== ======Loss per ordinary share (2.46)p (13.17)p (15.63)p (1.92)p 9.14p 7.22p ====== ====== ====== ====== ====== ====== * The revenue column of this statement is the profit and loss account of thecompany. All revenue and capital items in the above statement derive from continuingoperations. There were no recognised gains or losses for the year other thanthose shown above. Balance sheet at 28 February 2006 28 February 2006 Audited 29 February 2005 Audited £000 £000 £000 £000Fixed assetsInvestments 4,758 4,880Current assetsDebtors 3 5Cash at bank 237 958 _____ _____ 240 963Creditors: amounts falling due (4) (4)within one year _____ _____Net current assets 236 959 _____ _____Net assets 4,994 5,839 ===== =====Capital and reservesCalled up share capital 541 541Share premium account 4,658 4,658Other reserves:Capital reserve - realised (4) (4)Capital reserve - unrealised 116 828Revenue reserve (317) (184) _____ _____Shareholders' funds 4,994 5,839 ===== =====Net asset value per share 92p 108p ===== ===== Cash flow statement for the year ended 28 February 2006 2006 2005 Audited Audited £000 £000Net cash (outflow) from operating (131) (91)activitiesCapital expenditure and financialinvestment Purchase of investments (590) (778) Disposal / redemption of investments - 1,300 ______ ______Net cash inflow (outflow) from capital (590) 522expenditure and financial investment ______ ______Increase / (decrease) in cash (721) 431 ====== ====== Notes: 1. Basis of preparation The preliminary announcement has been prepared in accordance with applicableaccounting standards and with the Statement of Recommended Practice 'Financialstatements of investment trust companies' issued in January 2003. The principalaccounting policies have remained unchanged from those set out in the company's2003 financial statements. 2. Return per Ordinary Share The calculation of revenue return per share is based on the loss of £133,000(2005: loss of £104,000) for the financial period divided by the weightedaverage number of ordinary shares of 5,406,480 (2005: 5,406,480) in issue duringthe period. The calculation of capital return per share is based on the net capital returnfor the financial period of £712,000 (2005: £494,000) divided by the weightedaverage number of ordinary shares of 5,406,480 (2005: 5,406,480) in issue duringthe period. 3. General The financial information set out in this preliminary announcement does notconstitute statutory accounts as defined in section 240 of the Companies Act1985. The balance sheet at 28 February 2006 and the statement of total return,cash flow statement and associated notes for the year then ended have beenextracted from the company's 2006 statutory financial statements on which theauditors' opinion is unqualified and does not include any statement undersection 237 of the Companies Act 1985. This information is provided by RNS The company news service from the London Stock Exchange