OXT.L Regulatory News (OXT)

8 May 2006 12:31

Oxford Technology Vent Cap Tst PLC08 May 2006 Preliminary Announcement for Oxford Technology Venture Capital Trust plc for the year ended 28 February 2006 Chairman's Statement Investment Portfolio Oxford Technology VCT shareholders should now have received the first dividendfollowing the sale of Valid Information Systems in 2003. OTVCT, which originallymade an investment of £270,000, has received a total of £2.5m from the sale, andhas set aside about £1.5m of this to pay out as dividends. However, as part ofthe sale, OTVCT signed certain warranties and the Directors felt it prudent toretain most of this until the warranties expire (for the most part in mid 2006)since there is an extremely small, but nevertheless real chance that theremight be a claim under the warranties. So, whilst the the first 10p per sharehas now been paid out, the balance (20p per share) has been ring fenced, isearning interest, and no management fees are being charged on this sum. At the time of the last accounts, we reported that many of the foundershareholders in Avidex (including OTVCT) were indignant at terms being proposedby Avidex's lead investors for refinancing the company. The proposal would haveleft early shareholders with effectively worthless holdings, regardless of thesubsequent success of the company. As a result of protests, an amended structurefor the refinancing was agreed and founder shareholders are now in a betterposition. So, whilst it is unlikley that this will yield a substantial return,OTVCT should at least gain some benefit if Avidex becomes the success that webelieve it could be. Other companies within the portfolio have experienced varying degrees of successor have struggled. Im-Pak, which has developed a novel technology for plasticinjection moulding, has agreed heads of terms with a public company for alicence on the Im-Pak process for a particular market sector. If the agreementis concluded, Im-Pak would receive lump sum payments, as well as monthlyroyalties as the technology is exploited. Dataflow's sales are increasing and the company is now making a small profit.Getmapping finds itself in a rapidly changing market as Google and Microsoftenter the digital aerial photography sector. MET has modestly increased itssales year on year, and is now making a small profit. Select Technology hasdeveloped interface software for multifunction products (such as printer / fax /copiers) and is now working very closely with the major players in this areasuch as Ricoh. Other companies in the portfolio, including OST, Coralfoam, and Armstrong havehad difficult years, although the outlook for the companies remains hopeful.Fuller information on each of the investee companies is given in the May 2006newsletter. Results for the year Interest on bank deposits and investee loans together with the final paymentfrom the Valid sale produced gross income of £836,000 (2005: £339,000) in theyear. Retained profits were £185,000 (2005: loss of £1,254,000) and earnings pershare for the year was 3.81p (2005: 25.84p) per share. The graph on page 7shows the historical Net Current Assets (chiefly cash) plus Gilts per share, andOther Investments (the fund's venture capital investments) per share. Together,these two figures make up the total Net Asset Value per share. AGM Shareholders should note that the AGM for Oxford Technology VCT will be held onMonday 19th June 2006, at the Magdalen Centre, Oxford Science Park, starting at12.00 noon and will include presentations by some of the companies in which theOxford Technology VCTs have invested. A formal Notice of AGM has been includedat the back of these Accounts together with a Form of Proxy for those notattending. John JacksonChairman5 May 2006 Profit and Loss Account for the year ended 28 February 2006 Year Year ended ended 28/02/05 28/02/06 £000 £000 Turnover 836 339Administrative Expenses (119) (156) -------- ----------Operating Profit 717 183 Loss on revaluation of investments (532) (1,437)Profit/(loss) on ordinary activities 185 (1,254)before taxationProfit/(loss) on ordinary activities 185 (1,254)after taxationRetained proft/(loss) for the year 185 (1,254) ====== ======Earnings per share 3.81p (25.84)p ====== ====== Balance sheet at 28 February 2006 28 February 2006 28 February 2005 Audited Audited £000 £000 £000 £000Fixed assetsInvestments 2,094 2,927Current assetsDebtors & prepayments 5 10Cash at bank 1,881 1,257 _____ _____ 1,886 1,267 Creditors: amounts falling due (6) (5)within one year _____ _____Net current assets/ 1,880 1,262(liabilities) _____ _____Net assets 3,974 4,189 ===== =====Capital and reservesCalled up share capital 485 485Share premium account 4,107Other reserves:Capital reserve - realised - 527Capital reserve - unrealised - (304)Profit and loss account 3,206 (626)Revaluation reserve 283 -Shareholders' funds 3,974 4,189 ===== =====Net asset value per share 82p 86p ===== ===== Cash flow statement for the year ended 28 February 2005 2006 2005 Audited Audited £000 £000 Net cash inflow from operating 723 8activitiesCapital expenditure and financialinvestment Purchase of investments (99) (127) Disposal / redemption of investments - 1,223 ______ ______Net cash inflow from capital (99) 1,096expenditure and financialinvestment ______ ______Increase in cash 624 1,104 ====== ====== 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. Earnings per Ordinary Share The calculation of earnings per share is based on the net profit for thefinancial period of £185,000 (2005: £1,254,000) divided by the weighted averagenumber of ordinary shares of 4,852,900 (2005: 4,852,900) in issue during theyear. 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 profit and loss account,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