29 May 2009 13:05
Preliminary Announcement for
Oxford Technology Venture Capital Trust plc for the year ended
28 February 2009
Chairman's Statement
Investment Portfolio
Oxford Technology VCT (OT1) owns 33% of Select Technology which is reaching an exciting stage in its development. Since 2005, it has been working closely with Ricoh, the world's leading manufacturer of modern photocopiers, known as multifunction products (MFPs), which scan, print, email and fax. All Ricoh's MFPs now contain Ricoh's ESA (Embedded Software Architecture) and Select, with Ricoh's support, has developed its own ESA-based software platform, known as m3i, which controls the MFP either through the MFP's own touchscreen (Chameleon) or remotely via a user's own device (MyUI). Once the basic m3i platform is installed, customers will be able subsequently to download a range of customised UIs created either by Select or third party developers. An example is the MyUI/Access Module, an accessible UI developed to allow compliance with disability legislation. Wheelchair users who are not able to see easily and use the MFP's own touchscreen MFP can now use their own PDA or Smartphone to control the copier; visually impaired users are provided with a large print UI with contrasting colours; blind users can control the MFP via voice commands.
Select has also completed its first Chameleon UI, a simple scan-to-email solution. In addition, two third party developers are using the m3i platform to create enhanced versions of their own existing products for launch later in 2009. The platform/solutions will be sold via Ricoh's direct and indirect sales channels in Europe and America, which number 2000+ outlets. Frustratingly, there have been numerous delays in fully launching the product while Ricoh has undergone significant restructuring following its purchase of both Lanier and Ikon, which it has been integrating alongside previous acquisitions such as NRG Group and Savin. Some sales are being achieved, mainly by Select selling to longstanding customers in the UK, but the global launch via Ricoh is now scheduled for Q2 2009 via Ricoh's new European and American technology partner programs. Sales are affected by the downloading of licence codes from the m3i website, and Select will receive a minimum of $375 per sale ($150 for the platform and $225 for each UI). Ricoh manufacture and sell about 700,000 MFDs each year. So the key question for Select is what % of these will use the m3i module. Due to the unique nature of the product, this is difficult to predict, but the potential is significant.
OT1 owns 19% of Membrane Extraction Technology, a spin-out from Imperial College. The company has developed a novel range of organic solvent nanofiltration membranes which are useful in separating molecules from organic liquids, to separate out the desired or the undesired fractions. Several of the world's largest pharmaceutical companies are using these membranes, so far at lab scale only. MET is still small, but has been growing steadily and has been profitable for the last two years. In March 2009, it began moving into new factory premises in West London.
Prosurgics has been making encouraging progress with its latest surgical robot, Freehand, but OT1 owns less than 1% of this company.
In September 2008, Scancell 'listed' on PLUS, and completed a fund raising of just over £1.5m, of which OT1 invested £100k. The company is making good progress and expects to take its first vaccine into Phase I/IIa clinical trials in 2009.
Fundraising
On 3 April 2009 OTVCT completed a fundraising which raised £91,440 and has resulted in an additional 229,943 shares being allotted. This is a post balance sheet event and is not reflected in the Net Asset Value figures. This will enable us to offer modest support to our investee companies in their additional fundraising rounds.
Results for the year
Interest on bank deposits and investee loans produced gross income of £23,000 (2008: £31,000) in the year. The loss for the year was £214,000 (2008 : £123,000) and earnings per share for the year showed a loss of 4.2p (2008: 2.5p).
AGM
Shareholders should note that the AGM for Oxford Technology VCT will be held on Friday 3rd July 2009, at the Magdalen Centre, Oxford Science Park, starting at 12.00 noon and will include presentations by some of the companies in which the Oxford Technology VCTs have invested. A formal Notice of AGM has been included at the back of these Accounts together with a Form of Proxy for those not attending.
John Jackson
Chairman
20 May 2009
Profit and Loss Account for the year ended 28 February 2009
|
| Year ended 28/02/09 | Year ended 29/02/08 | |||
|
| £000 | £000 | |||
| Unrealised (loss)/gain on fair value of investments | (167) | (85) | |||
| Other income | 23 | 31 | |||
| Investment management fees | (29) | (28) | |||
| Other expenses | (41) | (41) | |||
| ________ | _______ | ||||
| (Loss)/profit on ordinary activities before tax | (214) | (123) | |||
| Taxation on profit/(loss) on ordinary activities | - | - | |||
|
| ====== | ====== | |||
| (Loss)/profit on ordinary activities after tax | (214) | (123) | |||
|
| ====== | ====== | |||
| Earnings per share (basic and diluted) | (4.2)p | (2.5)p | |||
| ====== | ====== | ||||
Historic cost profits and losses note
|
| Year ended 28/02/09 | Year ended 29/02/08 | |||
|
| £000 | £000 | |||
| Loss for the year: | (214) | (123) | |||
| Unrealised loss/(gain) on fair value of investments | 167 | 85 | |||
| Realisation of prior year's net gains | - | - | |||
| Historical cost loss before tax | (47) | (38) | |||
| Historical cost loss after tax | (47) | (38) |
Balance sheet at 28 February 2009
| | 28 February 2009 Audited | 29 February 2008 Audited | ||
| | £000 | £000 | £000 | £000 |
| Fixed assets | | | | |
| Investments at fair value | | 1,658 | | 1,652 |
| Current assets | | | | |
| Debtors & prepayments | 1 | | 2 | |
| Cash at bank | 150 | | 526 | |
| | _____ | | _____ | |
| | 151 | | 528 | |
| Creditors: amounts falling due within one year | (7) | | (4) | |
| | _____ | | _____ | |
| Net current assets | | 144 | | 524 |
| | | _____ | | _____ |
| Net assets | | 1,802 | | 2,176 |
| | | ===== | | ===== |
| Capital and reserves | | | | |
| Called up share capital | | 506 | | 485 |
| Share premium | | 71 | | - |
| Profit and loss account | | 1,377 | | 1,676 |
| | | | | |
| Revaluation reserve | | (152) | | 15 |
| | | | | |
| | | | | |
| | | | | |
| Shareholders’ funds | | 1,802 | | 2,176 |
| | | ===== | | ===== |
| Net asset value per share | | 36p | | 45p |
| | | | | |
| | | ===== | | ===== |
| | | | | |
Cash flow statement for the year ended 28 February 2009
|
| 2009 Audited | 2008 Audited | |||
|
| £000 | £000 | |||
| Net cash (outflow)/inflow from operating activities | (43) | (39) | |||
| Capital expenditure and financial investment |
|
| |||
| Purchase of investments | (173) | (20) | |||
| Disposal of investments | - | 23 | |||
|
| ______ | ______ | |||
| Net cash (outflow)/inflow from capital expenditure and financial investment | (173) | 3 | |||
| Net cash outflow before financing | (216) | (3) | |||
| Financing | |||||
| Issue of Shares | 97 | - | |||
| Expenses paid in connection with share issue | (5) | - | |||
| Net cash inflow from financing | 92 | - | |||
| Dividends paid | (252) | - | |||
|
| ______ | ______ | |||
| (Decrease)/increase in cash | (376) | (36) | |||
|
| ====== | ====== |
Notes:
1. Basis of preparation
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments. The financial statements have been prepared in accordance with applicable accounting standards and with the Statement of Recommended Practice 'Financial statements of investment trust companies' issued in December 2005.
2. Earnings per Ordinary Share
The calculation of earnings per share for the period is based on the profit attributable to shareholders divided by the weighted average number of shares in issue during the period.
3. Valuation of Investments
Quoted investments are stated at the bid price. Unquoted investments are stated at fair value, where fair value is estimated after following the guidelines laid down by the International Private Equity and Venture Capital Guidelines. The Directors' policy is to initially state investments at cost and then to review the valuation every six months. The Directors' may then apply an appropriate methodology which, as far as possible, draws on external, objective market data such as where fair value is indicated by:
• a material arms length transaction by a third party in the shares of the company; or
• a suitable revenue or earnings multiple where the company is well established and generating maintainable profits. The multiple will be based on comparable listed companies but may be discounted to reflect a lack of marketability; or
• the net assets of the business.
Where such objective data is not available the Directors' may choose to maintain the value of the company as previously stated or to discount this where indicated by underperformance against plan.
The directors consider that this basis of valuation of unquoted investments is consistent with the International Private Equity and Venture Capital Guidelines.
4. General
The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The balance sheet at 28 February 2009 and the profit and loss account, cash flow statement and associated notes for the year then ended have been extracted from the company's 2008 statutory financial statements on which the auditors' opinion is unqualified and does not include any statement under section 237 of the Companies Act 1985.