VEN2.L Regulatory News (VEN2)

1 Jun 2007 13:49

Ventus 2 VCT PLC01 June 2007 VENTUS 2 VCT Plc Preliminary Results for the period 5 January 2006 to 28 February 2007 The Directors of Ventus 2 VCT plc announce the preliminary results for theperiod ended 28 February 2007. Chairman's Statement I am pleased to present the first preliminary results for Ventus 2 VCT plc (the"Company") for the period ended 28 February 2007. The Company was incorporated on 5 January 2006 and its shares were listed on theLondon Stock Exchange on 10 March 2006. The share offer, which closed on 9 June2006, raised £11.2m before expenses. Net Asset Value and Results Revenue attributable to shareholders for the period was £222,200 or 2.13 penceper share. The capital loss attributable to shareholders for the period was£172,718 or 1.65 pence per share, resulting in a total return to shareholdersfor the period of £49,482 or 0.47 pence per share. The main source of revenuewas interest earned on UK treasury bills and cash deposits. Running costs of theCompany (before irrecoverable VAT) were less than 3.6% of Net Asset Value ("NAV") in accordance with the Investment Management Agreement. The Company declared a dividend for the period to 31 August 2006 of 0.75 penceper share and proposes to declare a further dividend of 0.75 pence for the sixmonths to 28 February 2007, resulting in a total dividend of 1.50 pence pershare for the period. At 28 February 2007, the Company's NAV stood at £10.6 million or 94.5 pence pershare. Investments The Company's Investment Manager, Climate Change Capital Limited, continues tobe actively engaged in identifying and negotiating potential investmentopportunities. As at 28 February 2007, the Company had made one qualifying investment of£169,013. This was an investment in mezzanine loan stock and ordinary shares ofCraig Wind Farm Limited, a company developing a 10 megawatt wind farm in theScottish Borders. The Company has now completed its investment in Craig Wind Farm Limited byinvesting a further £179,809 in ordinary shares, bringing its total investmentin the company to £348,822. After the period end, the Company invested £30,000 in ordinary shares of AchairnEnergy Limited, a company developing a 6 megawatt wind farm in Caithness,Scotland. The Company also continues to hold one other long term exclusivitywith A7 Energy Limited in respect of a consented 6 megawatt site in Lanarkshire,Scotland. As at the date of the Annual Report the Company has therefore made investmentsand/or agreed terms and/or entered into exclusivity agreements with a total ofthree companies representing total funds invested and committed of £378,822 andpotential further investments of £670,000. The Investment Manager's Report in the Annual Report provides details of theinvestments made as at 28 February 2007, the investments made as at 30 May 2007and the amounts committed and/or under exclusivity agreements as at 30 May 2007.All investments to date have been structured so as to be treated as qualifyingholdings for the purposes of VCT regulations. Venture Capital Trust ("VCT") Qualifying Status The Company has appointed PricewaterhouseCoopers LLP to review its compliancewith VCT regulations. PricewaterhouseCoopers has confirmed that the Company hasbeen in compliance with the required conditions throughout the period. Dividend The Directors recommend a final dividend of 0.75 pence per ordinary share inrespect of the period ended 28 February 2007. This, together with the interimdividend of 0.75 pence already paid, will make a total dividend for the year of1.50 pence per share. The shares will be marked ex-dividend on 11 July 2007 and,subject to shareholder approval, the dividend will be paid on 6 August 2007 toshareholders on the register on 13 July 2007. Income statementfor the period 5 January 2006 to 28 February 2007 Revenue Capital Total £000 £000 £000Income 453 - 453 --------------- ------------- --------------- 453 - 453 --------------- ------------- ---------------ExpenditureManagement fees 71 214 285Other expenses 106 - 106 --------------- ------------- --------------- 177 214 391 --------------- ------------- ---------------Return on ordinary activities before taxation 276 (214) 62Tax on ordinary activities (54) 41 (13) --------------- ------------- --------------- Return attributable to equity shareholders 222 (173) 49 _______________ _____________ _____________ Basic and diluted return per ordinary share (p) 2.13 (1.65) 0.47 All revenue and capital items in the above statement derive from continuingoperations. The Company has only one class of business and derives its income frominvestments made. The total column of this statement is the profit and loss account of theCompany. The supplementary revenue return and capital return columns have beenprepared under guidance published by the Association of Investment Companies. There were no recognised gains and losses for the period other than those shownabove. Balance sheetat 28 February 2007 28 February 2007 £000Fixed assetsInvestments 169 ------ 169 ------Current assetsDebtors 15Short term investments in UK treasury bills 10,149Cash in hand 267 ------ 10,431Creditors : amounts falling due within one year (39) ------Net current assets 10,392 ------Net assets 10,561 ------Share Capital and ReservesCalled up share capital 2,793Special reserve 7,803Capital reserve - realised (173)Revenue reserve 138 ------Shareholders' funds 10,561 ------Net asset value per ordinary share (p) 94.5 Cash flow statementfor the period 5 January 2006 to 28 February 2007 £000Net cash inflow from operating activities and 39returns on investments Capital ExpenditurePurchase of venture capital investments (169) Equity dividends paid (84) Management of liquid resourcesPurchase of UK treasury bills (10,115) ------Net cash outflow before financing (10,329)Financing ------Shares issued 11,173Issue costs (577) ------Net cash inflow from financing 10,596 ------Increase in cash 267 ------Analysis of net fundsAt the beginning of the period -Net cash inflow for the period 267 ------At the end of the period 267 ------Net cash (outflow)/inflow from operatingactivities and returns on investments Total return before taxation 62Increase in debtors (15)Increase in creditors 26Net gain on short term investments (34) ------ Net cash inflow from operating activities andreturns on investments 39 ------ Reconciliation of movements in shareholders' fundsfor the period 5 January 2006 to 28 February 2007 £000 Equity shareholders' funds at beginning of period -Return on ordinary activities after tax 34Dividends paid in the period (113)Net proceeds of share issues 14,187 ------Equity shareholders' funds at end of period 14,108 ------ Notes: 1. Statutory accounts This preliminary statement is not the Company's statutory accounts for theperiod ended 28 February 2007. The statutory accounts for the period ended 28February 2007 have been approved and audited and will be delivered to theRegistrar of Companies following the Annual General Meeting. The financial information contained within the Preliminary Announcement wasapproved by the Board on 30 May 2007. The Report and Accounts will be posted to shareholders shortly. Copies may beobtained during normal business hours from the Company's registered office, TheRegistry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU. 2. Accounting policies Accounting convention The financial statements are prepared under the historical cost convention,modified to include the revaluation of fixed asset investments, and inaccordance with applicable accounting standards and with the Statement ofRecommended Practice 'Financial statements of investment trust companies' issuedin January 2003 and revised in December 2005. Income and expenses Income on current asset investments is stated on an accruals basis. Interestreceivable on cash and non-equity investments is accrued to the end of theperiod. No tax was withheld at source on income. The Company has adopted the policy of allocating investment management feesassociated with venture capital investments 75% to capital reserve (realised)and 25% to the revenue account. Investments All investments are designated as 'fair value through profit or loss' assets andare initially measured at cost. Thereafter the investments are measured atsubsequent reporting dates at fair value. Investments in unquoted companies are valued in accordance with InternationalPrivate Equity and Venture Capital Valuation Guidelines. Under these guidelines,the investments are valued at fair value at the reporting date, except insituations where fair values cannot be measured reliably. In such situations theinvestments are reported at the carrying value at the reporting date, unlessthere is evidence that the investment has since been impaired. When an investee company has gone into receivership or liquidation, theinvestment, although physically not disposed of, is treated as being realised.It is not the Company's policy to exercise either significant or controllinginfluence over investee companies. Therefore the results of these investeecompanies are not consolidated. The majority of monies held pending investment is invested in financialinstruments with same day or two-day access and as such are treated as currentinvestments. These are valued at middle market prices as at 28 February 2007.Under FRS 26 investments should be valued at bid prices. There is no materialdifference between the valuation at bid prices and the valuation at middlemarket prices. Deferred taxation Deferred taxation is provided in full on timing differences that result in anobligation at the balance sheet date to pay more tax, or a right to pay lesstax, at a future date, at rates expected to apply when they crystallise based oncurrent tax rates and law. Timing differences arise from the inclusion of itemsof income and expenditure in tax computations in periods different from those inwhich they are included in the accounts. Taxation Corporation tax payable is provided on taxable profits at the current rate. Thetax charge for the period is allocated between revenue return and capital returnon the ''marginal basis'' as recommended in the Statement of RecommendedPractice. Dividends payable Dividends payable are recognised as distributions in the financial statementswhen the Company's liability to make payment has been established. 3. Basic and diluted return per share The total return per ordinary share is based on the net revenue after taxationof £49,482 and the weighted average number of shares in issue during the periodof 10,444,605. The basic revenue return per ordinary share is based on the net revenue fromordinary activities after taxation of £222,200 and the weighted average numberof shares in issue during the period of 10,444,605. The net capital loss per ordinary share is based on the net loss from ordinaryactivities after taxation of £172,718 and the weighted average number of sharesin issue during the period of 10,444,605. The weighted average number of shares in issue is calculated over the periodfrom 10 March 2006, when the shares were listed on the London Stock Exchange, to28 February 2007. There is no difference between the basic return per ordinary share and thediluted return per ordinary share because no dilutive financial instruments havebeen issued. 4. Net asset value per share The calculation of net asset value per share as at 28 February 2007 is based onnet assets of £10,562,034 divided by the 11,173,337 ordinary shares in issue atthat date. By order of the Board Capita Company Secretarial Services Ltd, Company Secretary 1 June 2007 This information is provided by RNS The company news service from the London Stock Exchange