Unicorn Asset Management Regulatory News (UAV)

28 Apr 2006 07:00

UNICORN AIM VCT PLCPRELIMINARY RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2006Chairman's StatementI am pleased to present the preliminary results for the six months ended 31March 2006 for Unicorn AIM VCT plc.Qualifying InvestmentsIn the six months to 31 March 2006 the Ordinary Share Fund made two newqualifying investments at a total cost of ‚£950,000. The investment phase forthe Ordinary Share Fund is now essentially complete with a portfolio ofthirty-four qualifying investments. Overall, the total number of holdings hasreduced following the sale of four investments. The Fund continues to hold cashreserves in order to allow for further qualifying investments and to finance anactive share buyback programme.The Series 2 ("S2") Share Fund was more active during the period, increasingthe number of qualifying investments to twenty-six and the total invested inqualifying investments to ‚£9.5 million. At the current date, the S2 Share Fundis approximately 67% invested in qualifying holdings.The Ordinary Share Fund continues to meet the requirement of retaining at least70% of its investments in qualifying investments set by HM Revenue & Customs,whilst active participation in the new issue market over the period underreview has enabled the S2 Share Fund to make substantial progress towardexceeding the 70% target by September 2006.ResultsOrdinary Share FundFollowing a net gain on investments of ‚£1,966,000 (‚£2,945,000 for the sixmonths ended 31 March 2005) the total return on ordinary activities aftertaxation was ‚£1,532,000, the equivalent of 4.6 pence per share. The deficit onthe revenue account was ‚£141,000 (‚£7,000 deficit for the six months ended 31March 2005), reflecting a continued reduction in interest received from cash ondeposit as funds have been invested in qualifying investments. Dividendpayments from the Ordinary Share Fund will, as before, be substantiallydependent upon capital profits generated from investment realisations. Duringthe period 800,000 Ordinary Shares were bought back for cancellation at anaverage price of 90 pence per share.S2 Share FundFollowing a net gain on investments of ‚£2,379,000 (‚£1,734,000 for the periodended 31 March 2005) the total return on ordinary activities after taxation was‚£2,250,000, the equivalent of 14.3 pence per share. The deficit on the revenueaccount was ‚£43,000 (‚£53,000 surplus for the period ended 31 March 2005), againreflecting a decrease in cash on deposit as the rate of investment in newopportunities continued.DividendsThe Board's policy remains to maximise the stream of dividend distributions toShareholders from the income and capital gains generated by the portfolio.On 30 January 2006, Ordinary Fund Shareholders received a final dividend of 5pence per share in respect of the year ended 30 September 2005. An interimdividend of 5 pence per share on 1 March 2006, bringing total dividends paidsince the launch of the Fund to 26.45p. Of the dividends totalling 10 pence pershare paid during the period, 9.5 pence per share was paid out of capitalprofits realised on the sale of investments and 0.5 pence was paid fromrevenue.On 30 January 2006, S2 Fund Shareholders received a final dividend of 1 pennyper share in respect of the year ended 30 September 2005 comprising 0.35 penceper share from revenue and 0.65 pence per share from capital. Totaldistributions of 1.75 pence per share have been paid to S2 Fund Shareholderssince launch.Net Asset ValueAs at 31 March 2006, the net asset value (NAV) at bid prices for the OrdinaryShare Fund was 99.7 pence per share. Since the launch of the Ordinary ShareFund in November 2001, the total return to shareholders (including dividends)has been 33.5%.Since the launch of the S2 Share Fund in February 2004, the total return toshareholders (including dividends) has been 31.27%.Board of DirectorsRobert Holt was recently appointed as Chairman of Unicorn Asset ManagementLimited, the Investment Manager. In accordance with best practice and to avoidany potential conflict of interest, Robert has resigned from the Board of yourCompany with effect from 25 April 2006. I would like to take this opportunity,on behalf of the Board, to thank him for the substantial contribution he hasmade to the Company's success during his period of office.Jocelin Harris was appointed to the Board on 25 April 2006. Jocelin has over 30years experience in M&A and venture capital investing and I have pleasure inwelcoming him to the Board of Directors.OutlookProspects for the AIM are encouraging. The AIM Index continues to perform welland many companies remain sensibly valued in the sectors in which Unicornoperates. In relative terms the AIM had a poor year in 2005 caused mainly by ahuge number of new issues. A record number of companies were floated on the AIMlast year raising significant funds with the result that the weight of moneyabsorbed by new issues held back overall performance. Since the start of 2006,investor interest in AIM quoted companies has improved and the Funds have madestrong gains. Your Investment Manager is confident that the quality of theunderlying holdings in both portfolios continues to improve.The Board remains optimistic that both Funds are well placed to achieve furthercapital growth thereby generating a strong, tax efficient, dividend flow.Peter DicksChairmanFor further information please contact:Unicorn Asset Management Limited, Tel: 020 7253 0889UNAUDITED NON-STATUTORY ANALYSIS BETWEEN THE ORDINARY SHARE AND THE S2 SHAREFUNDSIncome Statement for the six months ended 31 March 2006 Ordinary S2 Share Share Fund Fund Revenue Capital Total Revenue Capital Total ‚£ ‚£ ‚£ ‚£ ‚£ ‚£ Unrealised gains - 1,546,436 1,546,436 - 2,294,615 2,294,615on investments Gains on - 419,981 419,981 - 84,692 84,692realisations of investments Costs of - (3,778) (3,778) - (5) (5)investment transactions Income 125,618 - 125,618 54,266 - 54,266 Investment (96,416) (289,249) (385,665) (28,441) (85,324) (113,765)management fees Other expenses (170,157) - (170,157) (69,311) - (69,311) -------- -------- -------- -------- -------- -------- (Loss)/return on (140,955) 1,673,390 1,532,435 (43,486) 2,293,978 2,250,492ordinary activities before taxation -------- -------- -------- -------- -------- -------- Tax on ordinary - - - - - -activities (Loss)/return (140,955) 1,673,390 1,532,435 (43,486) 2,293,978 2,250,492attributable to equity shareholders ======== ======== ======== ======== ======== ======== (Loss)/return (0.43)p 5.05p 4.62p (0.28)p 14.57p 14.29pper 1p share Average number 33,121,844 15,743,314of shares in issue Total of both Funds (per Statutory Profit and Loss Account) Revenue Capital Total ‚£ ‚£ ‚£ Unrealised gains - 3,841,051 3,841,051 on investments Gains on - 504,673 504,673 realisations of investments Costs of - (3,783) (3,783) investment transactions Income 179,884 - 179,884 Investment (124,857) (374,573) (499,430) management fees Other expenses (239,468) - (239,468) -------- -------- -------- (Loss)/return on (184,441) 3,967,368 3,782,927 ordinary activities before taxation Tax on ordinary - - - activities -------- -------- -------- (Loss)/return (184,441) 3,967,368 3,782,927 attributable to equity shareholders -------- -------- -------- Balance sheets as at 31 March 2006 Ordinary Share S2 Share Fund Fund ‚£ ‚£ Non current assets Investments 29,866,764 19,445,088 Current assets Debtors and prepayments 148,310 3,901 Current investments 2,832,243 294,313 Cash at bank 29,273 70,361 -------- -------- 3,009,826 368,575 Creditors: amounts falling (432,544) (554,354)due within one year -------- -------- Net current assets/ 2,577,282 (185,779)(liabilities) ======== ======== Net assets 32,444,046 19,259,309 ======== ======== Share capital and reserves Called up share capital 325,442 157,433 Share premium account - 10,148 Revaluation reserve 8,581,045 4,469,017 Capital redemption reserve 24,555 302 Special reserve 22,075,076 14,373,218 Profit and Loss Account 1,437,928 249,191 ======== ======== Equity shareholders' funds 32,444,046 19,259,309 ======== ======== Number of shares in issue 32,544,234 15,743,314 Net asset value per 1p 99.7p 122.3pShare Adjustments Total of both funds (see note below) (per Statutory Balance Sheet) ‚£ ‚£ ‚£ Non current assets Investments - 49,311,852 Current assets Debtors and prepayments (125,944) 26,267 Current investments - 3,126,556 Cash at bank - 99,634 -------- -------- (125,944) 3,252,457 Creditors: amounts falling 125,944 (860,954) due within one year -------- -------- Net current assets - 2,391,503 ======== ======== Net assets - 51,703,355 ======== ======== Share capital and reserves Called up share capital 482,875 Share premium account 10,148 Revaluation reserve 13,050,062 Capital redemption reserve 24,857 Special reserve 36,448,294 Profit and Loss Account 1,687,119 ======== Equity shareholders' funds 51,703,355 ========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 ACCOUNTfor the six months ended 31 March 2006 Six Six months months to 31 to 31 March March 2005 2006 (restated) Revenue Capital Total Revenue Capital Total ‚£ ‚£ ‚£ ‚£ ‚£ ‚£ Unrealised - 3,841,051 3,841,051 - 3,968,695 3,968,695gains on investments Gains on - 504,673 504,673 - 710,628 710,628realisations of investments Cost of - (3,783) (3,783) - - -investment transactions Income 179,884 - 179,884 430,625 - 430,625 Investment (124,857) (374,573) (499,430) (125,633) (376,896) (502,529)management fees Other expenses (239,468) - (239,468) (258,964) - (258,964) -------- -------- -------- -------- -------- -------- (Loss)/profit (184,441) 3,967,368 3,782,927 46,028 4,302,427 4,348,455on ordinary activities before income taxation Tax on - - - - - -ordinary activities -------- -------- -------- -------- -------- -------- (Loss)/profit (184,441) 3,967,368 3,782,927 46,028 4,302,427 4,348,455on ordinary activities after taxation for the financial period ======== ======== ======== ======== ======== ======== Earnings per share Ordinary 4.62p 7.62pShares S2 Shares 14.29p 10.83p Year to 30 September 2005 (audited and restated) Revenue Capital Total ‚£ ‚£ ‚£ Unrealised gains - 3,617,126 3,617,126on investments Gains on - 1,880,687 1,880,687realisations of investments Cost of investment - - -transactions Income 931,791 858,103 1,789,894 Investment (248,109) (744,327) (992,436)management fees Other expenses (517,813) - (517,813) -------- -------- -------- Profit on ordinary 165,869 5,611,589 5,777,458activities before income taxation Tax on ordinary (6,396) 6,396 -activities -------- -------- -------- Profit on ordinary 159,473 5,617,985 5,777,458activities after taxation for the financial period ======== ======== ======== Earnings per share Ordinary Shares 9.62p S2 Shares 15.79pAll the items in the above statement derive from continuing operationsUNAUDITED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSESfor the six months ended 31 March 2006 Six months to 31 March 2006 ‚£ Profit on ordinary 3,782,927 activities after taxation Effects of changes in (1,385,827)accounting policies from the introduction of FRS 25 and FRS 26 ======== Total recognised gains 2,397,100 during the period ========UNAUDITED NOTE OF HISTORICAL COST PROFITS AND LOSSESfor the six months ended 31 March 2006 Six months Six months Year to to to 30 September 31 March 31 March 2005 2006 2005 (restated) (audited and restated) ‚£ ‚£ ‚£ Profit on ordinary 3,782,927 4,348,455 5,777,458activities before taxation Less: unrealised gains on (3,841,051) (3,968,695) (3,617,126)investments Realisation of revaluation 200,656 (116,837) 885,981gains/(losses) of previous years -------- -------- -------- Historical cost profit on 142,532 262,923 3,046,313ordinary activities before taxation ======== ======== ======== Historical cost (loss)/ (3,349,325) (1,583,764) 1,199,626profit for the year after taxation and dividends ======== ======== ========UNAUDITED BALANCE SHEETas at 31 March 2006 As at As at As at 31 March 31 March 30 September 2006 2005 2005 (audited and restated) ‚£ ‚£ ‚£ Non current assets Investments 49,311,852 47,595,991 46,724,558 Current assets Debtors and prepayments 26,267 911,019 2,203,122 Current investments 3,126,556 5,533,574 5,764,584 Cash at bank 99,634 451,658 79,028 -------- -------- -------- 3,252,457 6,896,251 8,046,734 Creditors: amounts falling due within one year Other creditors (556,497) (1,515,271) (1,025,008) Accruals (304,457) (159,951) (224,765) -------- -------- -------- (860,954) (1,675,222) (1,249,773) -------- -------- -------- Net current assets 2,391,503 5,221,029 6,796,961 ======== ======== ======== Net assets 51,703,355 52,817,020 53,521,519 ======== ======== ======== Share capital and reserves Share capital 482,875 498,625 490,875 Share premium account 10,148 10,148 10,148 Revaluation reserve 13,050,062 12,136,059 10,781,672 Capital redemption 24,857 9,107 16,857reserve Special distributable 36,448,294 39,506,771 38,403,160reserve Profit and loss account 1,687,119 656,310 3,818,807 ======== ======== ======== Total Shareholders' funds 51,703,355 52,817,020 53,521,519 ======== ======== ======== Net asset value per 1p share Ordinary Shares 99.7p 106.2p 108.5p S2 Shares 122.3p 105.3p 110.2pUNAUDITED STATEMENT OF CASH FLOWSfor the six months to 31 March 2006 Six months to Six months to Year to 31 March 2006 31 March 2005 30 September (unaudited) (unaudited) 2005 (audited) ‚£ ‚£ ‚£ Operating activities Investment income received 451,300 428,943 1,586,945 Investment management fees (499,430) (502,529) (992,436)paid Other cash payments (171,454) (340,578) (487,777) -------- -------- -------- Net cash (outflow)/inflow (219,584) (414,164) 106,732from operating activities Investing activities Purchase of investments (5,085,850) (6,232,236) (10,765,279) Sale of investments 6,804,676 4,487,579 9,196,261 -------- -------- -------- Net cash inflow/(outflow) 1,718,826 (1,744,657) (1,569,018)from investing activities Dividends Dividends paid (3,491,857) (1,846,687) (1,846,688) -------- -------- -------- Cash outflow before (1,992,615) (4,005,508) (3,308,974)financing and liquid resource management Financing Share capital raised - 10,250 10,250 Share capital repurchased (624,807) (487,721) (1,325,875) -------- -------- -------- (624,807) (477,471) (1,315,625) Management of liquid resources Decrease in monies held 2,638,028 2,073,335 1,842,325pending investment ======== ======== ======== Increase/(decrease) in cash 20,606 (2,409,644) (2,782,274) ======== ======== ========UNAUDITED RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDSfor the six months ended 31 March 2006 As at As at As at 31 March 31 March 2005 30 September 2006 (restated) 2005 (restated) ‚£ ‚£ ‚£ Opening shareholders' 53,521,519 50,976,564 50,976,564funds - as restated for FRS 21 Restated for application (1,385,827) - -of new accounting policies -------- -------- -------- At 1 October 2005 52,135,692 50,976,564 50,976,564(restated) Net share capital (bought (723,407) (661,312) (1,385,816)back) / subscribed for in the period Profit for the period 3,782,927 4,348,455 5,777,458 Dividends paid in period (3,491,857) (1,846,687) (1,846,687) ======== ======== ======== Closing Shareholders' 51,703,355 52,817,020 53,521,519funds ======== ======== ========Notes 1. The accounts have been prepared under the historical cost convention, modified to include the revaluation of investments, and in accordance with applicable accounting standards and, to the extent that it does not conflict with the Companies Act 1985, the 2003 Statement of Recommended Practice, `Financial Statements of Investment Trust Companies', revised 2005. 2. Changes in Accounting Policies With effect from 1 October 2005, the Company has adopted the following Financial Reporting Standards (FRS): FRS21 (Events after the Balance Sheet Date) - Dividends paid by the Company are accounted for in the period in which the Company is liable to pay them. Previously, the Company accrued dividends in the period in which the net revenue, to which those dividends related, was accounted for. FRS 25 (Financial Instruments: Disclosure and Presentation) and FRS 26 (Financial Instruments: Measurement) - The Company has designated its investment assets as being measured at "fair value through profit and loss". The fair value of quoted investments is deemed to be the bid value of these investments at the close of business on the relevant date. The corresponding amounts in these financial statements are, other than those covered by the exceptions permitted by FRS 25, restated in accordance with these new policies. FRS 25 permits the corresponding amounts not to be restated and the Company has adopted this approach. Non current investments which are not quoted are stated at Directors' best estimate of fair value, in accordance with British Venture Capital Association ("BVCA") guidelines published in July 2003. 3. In line with the expected long-term split of returns from the investment portfolios of the Company, the Directors have charged 75% of the investment management fee to the capital reserve. 4. Earnings and return per share Six months to 31 March 2006 Six months to 31 March 2005 (restated) Ordinary S2 Fund Total Ordinary S2 Fund Total Fund Fund ‚£ ‚£ ‚£ ‚£ ‚£ ‚£ Total earnings 1,532,435 2,250,492 3,782,927 2,640,326 1,708,129 4,348,455after taxation Basic earnings 4.62 14.29 7.62 10.83 per share -------- -------- -------- -------- -------- -------- Net revenue from (140,955) (43,486) (6,652) 52,680 ordinary activities after taxation Revenue return (0.43) (0.28) (0.02) 0.33 per share -------- -------- -------- -------- -------- -------- Net realised 419,981 84,692 677,808 32,820 capital gains Net unrealised 1,546,436 2,294,615 2,267,447 1,701,248 capital gains Capital income - - - - Capital expenses (293,027) (85,329) (298,277) (78,619) -------- -------- -------- -------- -------- -------- Total capital 1,673,390 2,293,978 2,646,978 1,655,449 return Capital return 5.05 14.57 7.64 10.50 per share -------- -------- -------- -------- -------- -------- Weighted average 33,121,844 15,743,314 34,657,393 15,759,381 number of shares in issue in the year Year to 30 September 2005 (audited) Ordinary Fund S2 Fund Total ‚£ ‚£ ‚£ Total earnings after taxation 3,288,597 2,488,861 5,777,458 Basic earnings per share 9.62 15.79 -------- -------- -------- Net revenue from ordinary 96,838 62,635 activities after taxation Revenue return per share 0.28 0.40 -------- -------- -------- Net realised capital gains 1,787,190 93,497 Net unrealised capital gains 1,128,894 2,488,232 Capital income 858,103 - Capital expenses (582,428) (155,503) -------- -------- -------- Total capital return 3,191,759 2,426,226 Capital return per share 9.34 15.39 -------- -------- -------- Weighted average number of 34,190,165 15,761,353 shares in issue in the year 5. Net asset value per Ordinary Fund Share is based on net assets at 31 March 2006 and on 32,544,234 (at 31 March 2005: 34,099,234; at 30 September 2005: 33,344,234) Ordinary Fund Shares, being the number of Ordinary Fund Shares in issue on that date. Net asset value per S2 Fund Share is based on net assets at 31 March 2006, and on 15,743,314 (at 31 March 2005: 15,763,314; at 30 September 2005: 15,743,314) S2 Fund Shares, being the number of S2 Fund Shares in issue on that date. 6. The financial information for the six months ended 31 March 2006 and the six months ended 31 March 2005 has not been audited. Other than the changes in accounting policies referred to in Note 2, the accounting policies used by Unicorn AIM VCT plc in preparing the Interim Report are consistent with those used in preparing the statutory accounts for the year ended 30 September 2005. The information for the year ended 30 September 2005 does not comprise full financial statements within the meaning of Section 240 of the Companies Act 1985. The financial statements for the year ended 30 September 2005 have been filed with the Registrar of Companies. The auditors have reported on these financial statements and that report was unqualified and did not contain a statement under Section 237(2) of the Companies Act 1985. 7. Copies of this statement are being sent to all Shareholders. Further copies are available free of charge from the Company's registered office, One Jermyn Street, London SW1Y 4UH. ENDUNICORN AIM VCT PLC