Unicorn Asset Management Regulatory News (UAV)

27 Apr 2005 15:38

Unicorn AIM VCT PLC27 April 2005 UNICORN AIM VCT PLC PRELIMINARY RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2005 Chairman's Statement Qualifying Investments In the six months to 31 March 2005 the Ordinary Share Fund made eight newqualifying investments and two follow-on investments at a total cost of £4.5million. Three of the new qualifying investments were in existing AIM listedcompanies, four were new admissions to AIM and the eighth was an unlistedinvestment. The quality of the portfolio was enhanced following the sale of fourunder performing investments and the initial investment phase for the OrdinaryShare Fund is largely complete with a portfolio of 33 qualifying investments.The Fund continues to hold substantial reserves to finance further qualifyinginvestments and an active share buy-back programme. The Series 2 ("S2") Share Fund participated alongside the Ordinary Share Fundincreasing the number of qualifying investments to 15 and the total invested inqualifying investments to £3.9 million. The Inland Revenue's 70% qualifying target has been maintained for the OrdinaryShare Fund and your Board is confident that the Company can capitalise upon theresurgence in the new issue market in order to meet the 70% test for the S2Share Fund by September 2006. Other Inland Revenue tests have been complied withand your Board has been advised that the Company has maintained its venturecapital trust status. Results Following revocation of investment company status on 17 August 2004 and asexplained in the 2004 Annual Report and Accounts the Company is now legallyobliged to include a Profit and Loss Account and Statement of Total RecognisedGains and Losses. In order to provide some continuity of financial reporting theStatement of Total Return has been retained. The deficit on the revenue account for the Ordinary Share Fund was £7,000(£33,000 surplus for the six months ended 31 March 2004). The decline reflects areduction in interest received from cash on deposit and dividends received onthe qualifying portfolio. These funds have been invested in qualifyinginvestments, which by virtue of their early stage of development typically paynominal levels of dividends. The Ordinary Share Fund has now reached a stage ofdevelopment where future dividend payments are likely to be substantiallydependent upon capital profits generated from investment realisations. Followinga net gain on investments of £2,945,000 (£3,655,000 for the six months ended 31March 2004) the total return on ordinary activities after taxation was£2,640,000, the equivalent of 7.6 pence per share. During the period 670,000Ordinary Shares were bought back for cancellation at an average price of 100.2pence per share. Net revenue attributable to S2 Shareholders for the period was £53,000 (£nil forthe period ended 31 March 2004), a significant improvement over the previousperiod, reflecting a full six months contribution since the fundraising inJanuary 2004. Following a net gain on investments of £1,734,000 (£nil for theperiod ended 31 March 2004) the total return on ordinary activities aftertaxation was £1,708,000, the equivalent of 10.8 pence per share. During theperiod 10,225 S2 Shares were issued at an average price of 100 pence per share. Dividends An interim dividend of 5 pence per share was paid to Ordinary Fund Shareholderson 8 March 2005 from capital profits realised on the sale of investments. TheOrdinary Fund has distributed accumulated dividends of 16.45 pence to date. The Board's policy is to maximise the stream of dividend distributions toShareholders from the income and capital gains generated by the portfolio.Whilst the latter objective is likely to take some time for the S2 Share Fund,the goal is to return realised gains to Shareholders whilst maintaining the netasset value per share (NAV) at a level above 100 pence. Performance The NAV for the Ordinary Share Fund at 31 March 2005 was 106.2 pence per share.Since the September 2004 year-end and before providing for the interim dividendthe NAV of the Ordinary Share Fund increased by 7.4%. Over the equivalent periodthe NAV of the S2 Share Fund increased by 11.5% to 105.3 pence per share. Incontrast, the FTSE All Share and FTSE AIM indices increased by 8.0% and 17.8%respectively on a total return basis. The under performance against the AIMIndex reflects the strong performance of the resources sector which is generallydeemed non-qualifying as typically the trading activity is based outside the UK. Since the launch of the Ordinary Share Fund in November 2001 the initial NAV hasincreased by 31.3% on a total return basis (assuming all dividends have beenreinvested), the FTSE All-Share Index has increased by 10.5% and the FTSE AIMIndex has increased by 30.4%. Outlook When assessing the prospects for AIM it should be remembered that, although theAIM Index has recovered strongly since the low reached in April 2003, it stillremains nearly 60% below the high achieved in March 2000. This suggests that,even after allowing for the exuberance associated with the heady days of theinternet boom, there should be an opportunity for further recovery. Moreimportantly, your Manager is confident that the underlying holdings are capableof achieving further growth in profitability and share price ratings in thefuture. Peter Dicks Chairman For further information please contact:Sean O'Flanagan, Unicorn Asset Management Limited, Tel: 020 7253 0889 NON-STATUTORY ANALYSIS BETWEEN THE ORDINARY SHARE AND THE S2 SHARE FUNDS Statement of Total Return for the six months ended 31 March 2005 Ordinary Share Fund S2 Share Fund Notes Revenue Capital Total Revenue Capital Total £ £ £ £ £ £Gains on investments - 2,945,255 2,945,255 - 1,734,068 1,734,068Income 270,443 - 270,443 160,182 - 160,182Investment management 2 (99,426) (298,277) (397,703) (26,207) (78,619) (104,826)feesOther expenses (177,669) - (177,669) (81,295) - (81,295) ------------ ------------ ------------ ------------ ------------ ------------Return on ordinary (6,652) 2,646,978 2,640,326 52,680 1,655,449 1,708,129activities beforetaxation ------------ ------------ ------------ ------------ ------------ ------------Tax on ordinary - - - - - -activitiesReturn attributable to (6,652) 2,646,978 2,640,326 52,680 1,655,449 1,708,129equity shareholders ------------ ------------ ------------ ------------ ------------ ------------Dividends in respect - (1,728,462) (1,728,462) (77) - (77)of equity shares Transfer (from) /to (6,652) 918,516 911,864 52,603 1,655,449 1,708,052reserves ======= ======= ======= ======= ======= =======Return per ordinary 3 (0.02)p 7.64p 7.62p 0.33p 10.50p 10.83pshareAverage number of 34,657,393 15,759,381shares in issue Adjustments Total of both Funds (see note below) (per Statutory Profit and Loss Account) Ordinary Share Fund S2 Share Fund Capital Capital Revenue Capital Total Notes £ £ £ £ £ Gains on (2,267,447) (1,701,248) - 710,628 710,628investments Income - - 430,625 - 430,625 Investment 2 - - (125,633) (376,896) (502,529)management feesOther expenses - - (258,964) - (258,964) ------------------ ------------------ ------------------ ------------------ ------------------Return on (2,267,447) (1,701,248) 46,028 333,732 379,760ordinaryactivities beforetaxationTax on ordinary - - - - - activities ------------------ ------------------ ------------------ ------------------ ------------------Return (2,267,447) (1,701,248) 46,028 333,732 379,760attributable toequityshareholdersDividends in - - (77) (1,728,462) (1,728,539)respect of equityshares ------------------ ------------------ ------------------ ------------------ ------------------Transfer (from)/ (2,267,447) (1,701,248) 45,951 (1,394,730) (1,348,779)to reserves * Note: The adjustment columns represent unrealised gains in the year, whichare part of the capital component of the total shareholder return for the year.However, they are not reported in the Profit and Loss Account below to which the"Total of both funds" columns reconcile. These unrealised gains (total being£3,968,695) are however reported as part of the Statement of Total RecognisedGains and Losses below. NON-STATUTORY ANALYSIS BETWEEN THE ORDINARY SHARE AND THE S2 SHARE FUNDS(continued) Balance Sheet as at 31 March 2005 Ordinary Share Fund S2 Share Fund Notes £ £Fixed assets Investments 35,513,502 12,082,489 Current assets Debtors and prepayments 937,408 33,783Current investments 378,498 5,155,076Cash at bank 364,272 87,386 ------------------- ------------------- 1,680,178 5,276,245 Creditors: amounts falling due (970,013) (765,381)within one year ------------------- -------------------Net current assets 710,165 4,510,864 =================== ===================Net assets 36,223,667 16,593,353 =================== =================== Capital and reserves Called up share capital 340,992 157,633Capital redemption reserve 9,005 102Share premium - 10,148Special distributable reserve 24,951,034 14,555,737Revaluation reserve 10,371,955 1,764,104Profit and Loss Account 550,681 105,629 =========== ============Equity shareholders' funds 36,223,667 16,593,353 =========== ============Number of shares in issue 34,099,234 15,763,314Net asset value per Ordinary Share 4 106.2 105.3 Adjustments Total of both funds (see note below) (per Statutory Balance Sheet) £ £ £Fixed assets Investments - 47,595,991 Current assets Debtors and prepayments (60,172) 911,019Current investments - 5,533,574Cash at bank - 451,658 --------------------- --------------------- (60,172) 6,896,251 Creditors: amounts falling due within 60,172 (1,675,222)one year ---------------------Net current assets - 5,221,029 ===================== =====================Net assets - 52,817,020 ===================== ===================== Capital and reserves Called up share capital 498,625Capital redemption reserve 9,107Share premium 10,148Special reserve 39,506,771Revaluation reserve 12,136,059Profit and Loss Account 656,310 ==========Equity shareholders' funds 52,817,020 ========== Note: the adjustment above nets off the inter-fund debtor and creditorbalances, so that the "Total of both funds" Balance Sheet agrees to theStatutory Balance Sheet below. UNAUDITED PROFIT AND LOSS ACCOUNT For the six months ended 31 March 2005 Six months to 31 March 2005 Six months to 31 March 2004 (restated) Revenue Capital Total Revenue Capital Total Notes £ £ £ £ £ £Gains/(losses) on - 710,628 710,628 - (25,420) (25,420)realisation ofinvestmentsIncome 430,625 - 430,625 344,598 - 344,598Investment (125,633) (376,896) (502,529) (100,556) (301,666) (402,222)management fees 2Other expenses (258,964) - (258,964) (211,108) - (211,108) ---------------- ---------------- ---------------- ---------------- ---------------- ----------------Profit/(Loss) on 46,028 333,732 379,760 32,934 (327,086) (294,152)ordinaryactivities beforetaxationTax on ordinary - - - - - -activities ---------------- -------------- -------------- -------------- -------------- --------------Profit/(Loss) on 46,028 333,732 379,760 32,934 (327,086) (294,152)ordinaryactivities aftertaxation for thefinancial periodDividends in (77) (1,728,462) (1,728,539) - - -respect of equityshares ----------------- -------------- -------------- -------------- -------------- --------------Retained profit/ 45,951 (1,394,730) (1,348,779) 32,934 (327,086) (294,152)(loss) for theyear transferredto/(from)reserves ================== =============== ============= ============== ============== =============Earnings pershareOrdinary Fund 3 1.08p (0.82)pSharesS2 Fund Shares 3 0.04p (0.21)p Year to 30 September 2004 (audited) Revenue Capital Total Notes £ £ £ Gains/(losses) on - 941,964 941,964realisation ofinvestmentsIncome 854,348 - 854,348Investment (231,936) (695,808) (927,744)management fees 2Other expenses (442,889) - (442,889) -------------- -------------- --------------Profit/(Loss) on 179,523 246,156 425,679ordinary activitiesbefore taxationTax on ordinary - - -activities -------------- -------------- --------------Profit/(Loss) on 179,523 246,156 425,679ordinary activitiesafter taxation forthe financial yearDividends in respect (118,148) (3,476,923) (3,595,071)of equity shares -------------- -------------- --------------Retained profit/ 61,375 (3,230,767) (3,169,392)(loss) for the yeartransferred to/(from) reserves ============== ============== ==============Earnings per shareOrdinary Fund Shares 3 1.15pS2 Fund Shares 3 0.20p All the items in the above statement derive from continuing operations UNAUDITED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES for the six months ended 31 March 2005 Six months to 30 March 2005 Six months to 31 March 2004 (restated) Notes Revenue Capital Total Revenue Capital Total £ £ £ £ £ £Profit/(loss) on 46,028 333,732 379,760 32,934 (327,086) (294,152)ordinary activitiesafter taxationUnrealised gains on revaluation of - 3,968,695 3,968,695 - 3,679,737 3,679,737 investmentsTotal recognised gains 46,028 4,302,427 4,348,455 32,934 3,352,651 3,385,585during the period Return per share:Ordinary Fund Shares 3 (0.02)p 7.64p 7.62p 0.09p 9.63p 9.72pS2 Fund Shares 3 0.33p 10.50p 10.83p 0.00p (0.21)p (0.21)p Year to 30 September 2004 (audited) Notes Revenue Capital Total £ £ £Profit/(loss) on 179,523 246,156 425,679ordinaryactivities aftertaxationUnrealised gains on revaluation of - 1,763,696 1,763,696investmentsTotal recognised 179,523 2,009,852 2,189,375gains during theperiod Return per share:Ordinary Fund 3 0.20p 5.80p 6.00pSharesS2 Fund Shares 3 0.96p (0.11)p 0.85p NOTE OF HISTORICAL COST PROFITS AND LOSSES for the six months ended 31 March 2005 Six months to Six months to Year to 30 September 2004 (audited) 31 March 2005 31 March 2004 (restated) £ £ £Profit/(loss) on ordinary activities before taxation 379,760 (294,152) 425,679 Realisation of revaluation (116,837) - 1,639,713(losses)/gains of previousyears ------------------------ ----------------------- -----------------------Historical cost profit/(loss) 262,923 (294,152) 2,065,392on ordinary activities beforetaxation ======================== ======================== =======================Historical cost loss for the (1,465,616) (294,152) (1,529,679)period after taxation anddividends ======================== ======================== ======================= UNAUDITED BALANCE SHEET as at 31 March 2005 As at As at As at 31 March 2005 31 March 2004 30 September 2004 (audited) Notes £ £ £Fixed assets Investments 47,595,991 39,314,970 40,629,972 Current assets Debtors and prepayments 911,019 112,759 126,077Current investments 5,533,574 6,780,382 7,606,909Cash at bank 451,658 485,508 2,861,302 ------------------- ------------------- ------------------- 6,896,251 7,378,649 10,594,288 Creditors: amounts falling duewithin one year Other creditors (1,515,271) (357,848) (141,989)Accruals (159,951) (272,004) (223,855) ------------------- ------------------- ------------------- (1,675,222) (629,852) (365,844) ------------------- ------------------- ------------------- Net current assets 5,221,029 6,748,797 10,228,444 =================== =================== ===================Net assets 52,817,020 46,063,767 50,858,416 =================== =================== =================== Capital and reserves Share capital 498,625 403,781 505,223Capital redemption reserve 9,107 1,725 2,407Share premium 10,148 5,193,908 -Special reserve 39,506,771 32,581,345 42,147,756Revaluation reserve 12,136,059 10,836,740 8,050,527Revenue reserve 656,310 (2,953,732) 152,503 =================== =================== ===================Total Shareholders' funds 52,817,020 46,063,767 50,858,416 =================== =================== =================== Net asset value per ordinaryshare Ordinary Fund Shares 4 106.2p 117.2p 103.5pS2 Fund Shares 4 105.3p 94.5p 94.4p UNAUDITED STATEMENT OF CASH FLOWS for the six months to 31 March 2005 Six months to Six months to Year to 31 March 2005 31 March 2004 30 September 2004 (unaudited) (unaudited) (audited) £ £ £Operating activities Investment income received 428,943 343,717 856,788Investment management fees paid (502,529) (393,140) (927,744)Other cash payments (340,578) (135,833) (397,951) ------------------- ------------------- -------------------Net cash outflow from operating (414,164) (185,256) (468,907)activities Investing activities Purchase of investments (6,232,236) (5,276,758) (19,522,977)Sale of investments 4,487,579 1,095,865 12,709,837 ------------------- ------------------- -------------------Net cash outflow from investing (1,744,657) (4,180,893) (6,813,140)activities Dividends Dividends paid (1,846,687) (157,317) (3,634,240) ------------------- ------------------- -------------------Cash outflow before financing and liquid resource management (4,005,508) (4,523,466) (10,916,287) Financing Share capital raised 10,250 5,249,417 15,763,314Share capital repurchased (487,721) (129,252) (1,048,007) ------------------- ------------------- ------------------- (477,471) 5,120,165 14,715,307 Management of liquid resourcesIncrease/(decrease) in monies held pending investment 2,073,335 (168,074) (994,601) =================== =================== ===================(Decrease)/increase in cash 2,409,644 428,625 2,804,419 =================== =================== =================== Notes 1. The accounts have been prepared under the historical costconvention, modified to include the revaluation of investments, and inaccordance with applicable accounting standards and, to the extent that it doesnot conflict with the Companies Act 1985, the 2003 Statement of RecommendedPractice, 'Financial Statements of Investment Trust Companies'. 2. In line with the expected long-term split of returns from theinvestment portfolios of the Company, the Directors have charged 75% of theinvestment management fee to the capital reserve. 3. Total earnings after taxation for the period showed a profit of£379,760 (6 months ended 31 March 2004: loss of £294,152; year ended 30September 2004: profit of £425,679) comprising a profit on the Ordinary ShareFund after taxation of £372,879 (6 months ended 31 March 2004: loss of £287,390;year ended 30 September 2004: profit of £402,389) and a profit after taxation onthe S2 Share Fund of £6,881 (6 months ended 31 March 2004: loss of £6,762; yearended 30 September 2004: profit of £23,290). The basic earnings per OrdinaryFund Share is based on the net profit from Ordinary Share Fund activities and on34,657,393 (6 months ended 31 March 2004: 34,900,393; year ended 30 September2004: 34,847,936) Ordinary Fund Shares, being the weighted average number ofOrdinary Fund Shares in issue during the period. The basic earning per S2 FundShare is based on the net profit from S2 Share Fund activities and on 15,759,381(6 months ended 31 March 2004: 3,228,240; year ended 30 September 2004:11,564,057) S2 Fund Shares, being the weighted average number of S2 Fund Sharesin issue during the period. The revenue return per Ordinary Fund Share is based on the net deficit onrevenue on ordinary activities after taxation of £6,652 (6 months ended 31March 2004: revenue of £32,885; year ended 30 September 2004: revenue of£68,377) and is based on 34,657,393 (6 months ended 31 March 2004: 34,900,393;year ended 30 September 2004: 34,847,936) Ordinary Fund Shares, being theweighted average number of Ordinary Fund Shares in issue during the period. The revenue return per S2 Fund Share is based on the net revenue on ordinaryactivities after taxation of £52,680 (6 months ended 31 March 2004: revenue of£40; year ended 30 September 2004: revenue of £111,146), and is based on15,759,381 (6 months ended 31 March 2004: 3,228,240; year ended 30 September2004: 11,564,057) S2 Fund Shares, being the weighted average number of S2 FundShares in issue during the period. The capital return per Ordinary Fund Share is based on net realised capitalgains of £677,808 (6 months ended 31 March 2004: loss of £25,420; year ended 30September 2004: gains of £941,964), on net unrealised capital gains of£2,267,447 (6 months ended 31 March 2004: gains of £3,679,737; year ended 30September 2004: gains of £1,688,240), capital expenses of £298,277 (6 monthsended 31 March 2004: £294,855; year ended 30 September 2004: £607,952), and on34,657,393 (6 months ended 31 March 2004: 34,900,393; year ended 30 September2004: 34,847,936) Ordinary Fund Shares, being the weighted average number ofOrdinary Fund Shares in issue during the period. The capital return per S2 Fund Share is based on net realised capital gains of£32,820 (6 months ended 31 March 2004: £nil; year ended 30 September 2004:£nil), on net unrealised capital gains of £1,701,248 (6 months ended 31 March2004: £nil; year ended 30 September 2004: gains of £75,456), capital expenses of £78,619 (6 months ended 31 March 2004: £6,811; year ended 30 September 2004:£87,856), and on 15,759,381 (6 months ended 31 March 2004: 3,228,240; year ended30 September 2004: 11,564,057) S2 Fund Shares, being the weighted average numberof S2 Fund Shares in issue during the period. 4. Net asset value per Ordinary Fund Share is based on net assetsat 31 March 2005, and on 34,099,234 (at 31 March 2004: 34,827,234; at 30September 2004: 34,769,234) Ordinary Fund Shares, being the number of OrdinaryFund Shares in issue on that date. Net asset value per S2 Fund Share is based on net assets at 31 March 2005, andon 15,763,314 (at 31 March 2004: 5,550,893; at 30 September 2004: 15,753,089) S2Fund Shares, being the number of S2 Fund Shares in issue on that date. 5. The financial information for the six months ended 31 March2005 and the six months ended 31 March 2004 has not been audited. The accountingpolicies used by Unicorn AIM VCT plc in preparing the Interim Report areconsistent with those used in preparing the statutory accounts for the yearended 30 September 2004. The information for the year ended 30 September 2004 does not comprise fullfinancial statements within the meaning of Section 240 of the Companies Act1985. The financial statements for the year ended 30 September 2004 have beenfiled with the Registrar of Companies. The auditors have reported on thesefinancial statements and that report was unqualified and did not contain astatement under Section 237(2) of the Companies Act 1985. 6. Copies of this statement are being sent to all Shareholders.Further copies are available free of charge from the Company's registeredoffice, One Jermyn Street, London SW1Y 4UH. ENDS This information is provided by RNS The company news service from the London Stock Exchange