VEN2.L Regulatory News (VEN2)

29 Nov 2006 07:01

Ventus 2 VCT PLC29 November 2006 VENTUS 2 VCT Plc ("the Company") Interim Results for the Period to 31 August 2006 The Directors of Ventus 2 VCT plc announce the interim results for the period to31 August 2006. Chairman's Statement I am pleased to present the first interim accounts for Ventus 2 VCT plc for theperiod ended 31 August 2006. During this period, the Company completed its shareoffer, raising £11.2 million before offering costs and £10.6 million afteroffering costs. The shares of the Company were listed on the London StockExchange on 10 March 2006, and the share offer closed on 9 June 2006. TheCompany was incorporated on 5 January 2006. Net asset value and results At the period end, the net asset value per share of the Company stood at 94.9pence. Revenue attributable to shareholders for the period was £99,467 or 1.03pence per share. The capital loss attributable to shareholders for the periodwas £96,441 or 1.00 pence per share, resulting in a total return to shareholdersfor the period of £3,026 or 0.03 pence per share. Dividend The Directors have declared an interim dividend of 0.75 pence per ordinary sharein respect of the period to 31 August 2006. The shares will be marked ex-dividend on 6 December 2006 and the dividend will be paid on 15 February 2007 to shareholders on the Register on 8 December 2006. Investments The Company's Investment Manager, Climate Change Capital, continues to beactively engaged in identifying and negotiating potential investmentopportunities. During the period ended 31 August 2006, the Company has made one qualifyinginvestment of £169,013. This was an investment in mezzanine debt and ordinaryshares of Craig Wind Farm Limited, a company developing a 10 megawatt wind farmin Scotland. The Company has committed to invest a total of £348,822 in Craig Wind FarmLimited in a combination of ordinary shares and mezzanine debt. The remaining£179,809 will be invested over the construction period to meet contract paymentsas they fall due. Construction works commenced on the site in August 2006 andthe wind farm is scheduled to become operational in July 2007. The Company has also entered into two exclusivity agreements. The first is with A7 Energy Limited in respect of the 6 megawatt Lochhead windfarm development in Lanarkshire, Scotland. A7 Energy Limited has recentlysecured planning consent and an offer for connection to the grid. The Manager isworking with the developer and its consultants to secure the necessary contractsto commence construction of the wind farm. The wind farm is expected to becomeoperational in the first half of 2008. The Manager considers that this projectwill lead to an investment of approximately £350,000 for the Company. The Company has also entered into an exclusivity agreement in respect of a 6megawatt wind farm development in Caithness, Scotland. This site has fullplanning consent and has recently been provided with an offer for a gridconnection. The Manager is working with the developer and its consultants tosecure the contracts necessary to commence construction. The wind farm isexpected to become operational in the first half of 2008. The Manager considersthat this project will also lead to an investment of approximately £350,000 forthe Company. Investment pipeline The Manager is actively assessing investment opportunities in over 30 individualcompanies developing in excess of 200 megawatts of generating capacity. TheCompany's investment strategy includes pursuing opportunities with companiesdeveloping non-wind technologies such as landfill gas and small scalehydro-electric schemes as well as with companies owning existing operationalassets. On the basis of the current rate of investment and an assessment of thepotential investments in the pipeline the Manager is satisfied that sufficientprojects are available to fully invest the funds in accordance with theinvestment strategy and the time period required to satisfy HM Revenue andCustoms requirements in respect of maintaining its VCT status. Cancellation of share premium account As disclosed in the prospectus, the Company has a policy of buying its ownshares in the market and of facilitating sales by shareholders at a price whichrepresents a maximum discount of 10% to the last published net asset value. Inorder to carry out this policy, the Company applied to the Court to reduce itsshare premium account and establish a new special reserve, which may be treatedas a distributable profit, out of which purchases of ordinary shares can be madein the future. The Court has approved the reduction of the Company's sharepremium account, and the reduction was registered with Companies House on 25August 2006. VCT qualifying status The Company has appointed PricewaterhouseCoopers to review its compliance withVCT regulations. We are satisfied that the company has continued to fulfil theconditions for maintaining VCT status. David Pinckney Chairman Income Statement for the period to 31 August 2006 Revenue Capital Total £000 £000 £000 Income 187 - 187 --------------- --------------- ---------- 187 - 187 --------------- --------------- ---------- Expenditure Management fees 32 96 128 Other expenses 53 - 53 --------------- --------------- ---------- 85 96 181 --------------- --------------- ---------- Return on ordinary activities before taxation 102 (96) 6 Tax on ordinary activities (3) - (3) --------------- --------------- ---------- Return attributable to equity shareholders 99 (96) 3 --------------- --------------- ---------- Return per ordinary share 1.03 p (1.00) p 0.03 p 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 columns of this statement are the profit and loss accounts of theCompany for the respective periods. The supplementary revenue and capitalcolumns have been prepared under guidance published by the Association ofInvestment Companies. There were no recognised gains and losses for the period other than those shownabove. Balance Sheet at 31 August 2006 £000 Fixed assets Investments 169 -------- 169 -------- Current assets Debtors 10 Short term investments in treasury bills 10,321 Cash in hand 127 -------- 10,458 Creditors: amounts falling due within one year (28) -------- Net current assets 10,430 ------- Net assets 10,599 ------- Share Capital & Reserves Called up share capital 2,793 Special reserve 7,803 Capital reserve - realised (96) Revenue reserve 99 -------- Shareholders' funds 10,599 ------- Net asset value per ordinary share 94.9 p (Number of Ordinary Shares - 11,173,337) Cash Flow Statement for the period to 31 August 2006 £000 Net cash inflow from operating activities and returns on investments 21 Capital Expenditure Purchases of venture capital investments (169) Management of liquid resourcesPurchase of treasury bills (10,321) ------- Net cash (outflow) before financing (10,469) ------- FinancingShares issued 11,173Issue costs (577) ------- Net cash inflow from financing 10,596 ------- Increase in cash 127 ======= Analysis of net fundsAs at 5 January 2006 -Net cash inflow for the period 127 -------As at 31 August 2006 127 ======= Net cash inflow/(outflow) from operatingactivities and returns on investmentsReturn on ordinary activities after taxation 3Increase in debtors (10)Increase in creditors 28 -------Net cash inflow from operating activities 21 ======= Interim Report The financial information contained in this preliminary announcement of interim results is unaudited and does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The interim report and accounts for the period ended 31 August 2006 will be posted to shareholders shortly. Copies may be obtained during normal business hours from the Company'sregistered office, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU. 29 November 2006 This information is provided by RNS The company news service from the London Stock Exchange