Proven Vct Regulatory News (PVN)

2 Jun 2005 17:12

Proven VCT PLC02 June 2005 ProVen VCT plc PRELIMINARY ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2005 Financial Highlights Year ended Year ended Year ended Year ended 28 February 29 February 28 February 28 February 2005 2004 2003 2002Revenue return per share (pence) for the year 1.9p 0.2p 1.2p 2.4pTotal return per share (pence) for the year 14.6p 30.8p (16.1)p (5.2p)Dividends per share (pence) 6.5p 3.5p 1.0p 2.3pCumulative dividends per share (pence) 15.7p 9.2p 5.7p 4.7pNet asset value per share (pence) 106.7p 98.7p 71.4p 88.4pNAV total return (net asset value plus cumulative 122.4p 107.9p 77.1p 93.1pdividends per share) (pence)Mid-market price per share (pence) 93.0p 70.0p 65.0p 90.0pShareholders' funds (£'000) 23,998 21,521 15,639 19,406 The statement to shareholders by the Chairman, Andrew Davison, includes thefollowing comments: Introduction I have pleasure in presenting the annual report and accounts for your companyfor the year ended 28 February 2005. The year has been marked by 11% growth inthe FTSE All Share Index despite geopolitical uncertainty and concerns in thewider international economy. Investment Portfolio During the year your company made one new investment of £200,000 and a further£762,000 was invested in existing portfolio companies. Your company also made anumber of realisations realising a profit of £1.0 million. These realisationsinclude cash and shares from the sale of Espotting Media to US NASDAQ listedFindWhat.com which concluded in July 2004. Subsequent to the year end,Notability Solutions was sold generating a return of 2.4 times the initialinvestment in only two years. At the balance sheet date your company had a portfolio of 24 investments at atotal cost of £16.9 million and a valuation of £21.7 million. Your company alsoheld £3.1 million in cash and liquidity funds. Net Asset Value and Dividends The total net asset value return per share at 28 February 2005 was 122.4pcomprising a net asset value per share of 106.7p and dividends paid and proposedof 15.7p. This represents a return of 29% over the initial net asset value atlaunch of 95p and compares very favourably with the total return on the FTSE AllShare Index of -7% over the same period. Your company is proposing a final dividend of 3.5p per share. This is inaddition to the interim dividend of 3.0p per share paid in November 2004. Thisdividend will be paid on 6 July 2005 to shareholders on the register at 10 June2005. Share Capital Issues and Buy Backs During the year your company issued a further 1,110,732 shares following theoffer for subscription for the tax year 2003/2004. Subsequent to 28 February2005, in the 2004/2005 and 2005/2006 tax years, your company has issued afurther 2,143,430 shares following two further offers for subscription. Thefunds raised from these offers are required to be 70% invested in qualifyingholdings within approximately three years and will be used to further diversifythe portfolio. Your company also purchased 415,955 shares in the market at a cost of £374,000,representing a discount of 10% to the published net asset value at the time ofthe purchases. In order to maintain your company's ability to purchase its ownshares where this is in the interest of shareholders, the Board will at theforthcoming annual general meeting once again be seeking shareholder approval torenew its authority to purchase shares in the market. Any shareholder wishing tosell shares should contact Downing Corporate Finance in the first instance. Prospects The performance of the portfolio continues to be encouraging and is reflected inthe increased valuations for a number of companies. This results from a numberof factors: the initial due diligence process which identifies which investmentsare to be made; the quality of the portfolio companies' management teams indelivering goods and services in their respective markets and the conversion ofthis performance to shareholder value; and the ongoing advice provided by theinvestment manager to the portfolio companies. These efforts have been rewardedwith the strong performance of your company relative to its peer group. In addition, the individual portfolio companies' performance and valuations aresensitive to the market in which we operate. The prospects for the UK economylook more uncertain than at this time last year and we expect the market forinvestments to be affected by the £500 million recently raised by other VCTs forinvestment. Nonetheless I continue to have confidence in the performance ofyour company. Annual General Meeting The annual general meeting will be held at 11.00 a.m. on 5 July 2005 at 39Earlham Street, London WC2H 9LT. I look forward to meeting those shareholdersthat are able to attend. Statement of Total Return (incorporating the revenue account)for the year ended 28 February 2005 Year ended Year ended 28 February 2005 29 February 2004 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000Gains on investments- realised - 1,000 1,000 - 607 607- unrealised - 2,248 2,248 - 6,363 6,363 Income 866 - 866 356 - 356Investment management fee (152) (456) (608) (97) (290) (387)Other expenses (188) - (188) (213) - (213) Return on ordinary activities before 526 2,792 3,318 46 6,680 6,726taxation Tax (charge)/credit on ordinary activities (92) 92 - (9) 6 (3) Return on ordinary activities after taxation 434 2,884 3,318 37 6,686 6,723Dividends (508) (956) (1,464) - (763) (763)Transfer (from)/to reserves (74) 1,928 1,854 37 5,923 5,960 Return per ordinary shareBasic and fully diluted 1.9p 12.7p 14.6p 0.2p 30.6p 30.8p The revenue return per ordinary share is based on the net revenue on ordinaryactivities after taxation of £434,000 (2004 - £37,000) and on 22,656,549ordinary shares (2004 - 21,860,400 ordinary shares), being the weighted averagenumber of ordinary shares in issue during the year. The capital return per ordinary share is based on a net realised and unrealisedcapital profit of £2,884,000 (2004 - profit of £6,686,000) and on22,656,549 ordinary shares (2004 - 21,860,400 ordinary shares), being theweighted average number of ordinary shares in issue during the year. Balance Sheet at 28 February 2005 28 February 29 February 2005 2004 £'000 £'000 Fixed assetsInvestments 21,673 19,741 Current assetsDebtors 256 612Cash at bank and in hand 3,129 2,103 3,385 2,715 Creditors: amounts falling due (1,060) (935) within one year Net current assets 2,325 1,780 Total assets less current liabilities 23,998 21,521 Capital and reservesCalled up share capital 1,125 1,090Share premium 941 -Special reserve 16,743 17,722Capital redemption reserve 30 9Capital reserve - realised 353 68Capital reserve - unrealised 4,751 2,503Revenue reserve 55 129Total equity shareholders' funds 23,998 21,521 Net asset value per share 106.7p 98.7p Net asset value per share is based on net assets at 28 February 2005 of£23,998,000 (2004 - £21,521,000) and on 22,490,512 ordinary shares (2004 -21,795,735 ordinary shares) in issue at that date. Cash Flow Statementfor the year to 28 February 2005 Year ended Year ended 28 February 29 February 2005 2004 £'000 £'000 Net cash outflow from operating activitiesNet revenue from ordinary activities before tax 526 46(Increase)/decrease in debtors (176) 82Increase in creditors 56 17Capitalised interest receipts (175) -Management fees charged to capital (456) (290) Net cash outflow from operating activities (225) (145) Financial investmentPurchase of investments (787) (5,023)Sale of investments 2,809 6,992) Net cash inflow from financial investment 2,022 1,969 Corporation tax paid - (3) Equity dividends paid (1,439) - FinancingIssue of ordinary shares 1,054 -Share issue expenses (58) -Purchase of ordinary shares (328) (78)Net cash inflow/(outflow) from financing 668 (78)Increase in cash in the year 1,026 1,743 Analysis of cash balanceAt 29 February 2004 2,103 360Net cash inflow for the year 1,026 1,743At 28 February 2005 3,129 2,103 Announcement based on statutory accounts (unqualified audit report) The financial information set out in the announcement does not constitute thecompany's statutory accounts for the year ended 28 February 2005. The statutoryaccounts for the year ended 28 February 2005 will be delivered to the Registrarof Companies following the company's Annual General Meeting. The financial information for the year ended 29 February 2004 is derived fromthe statutory accounts for that year which have been delivered to the Registrarof Companies. The auditors reported on those accounts; this report wasunqualified and did not contain a statement under section 237(2) or (3) of theCompanies Act 1985. The financial information set out in the announcement is prepared on the basisof the accounting policies consistent with those in the full financialstatements. The company revoked its investment company status within the meaning of s266,Companies Act 1985 during the year. However, it conducts its affairs as aventure capital trust for taxation purposes under s842AA of the Income andCorporation Taxes Act 1988. Notwithstanding, and as permitted by the Statementof Recommended Practice "Financial Statements of Investment Trust Companies"(SORP), issued by the Association of Investment Companies in January 2003, thecompany has prepared its financial statements in accordance with the SORP. Thedirectors consider that the departure from the Companies Act 1985 is necessaryto enable the financial statements to give a true and fair view. A copy of the full annual report and financial statements for the year ended 28February 2005 will be printed and posted to shareholders. Copies will also beavailable to the public at the registered office of the company at 39 EarlhamStreet, London WC2H 9LT. This announcement was approved by the Board on 2 June 2005. This information is provided by RNS The company news service from the London Stock Exchange