Final Results

8 May 2006 12:37

Oxford Technology 2 VCT PLC08 May 2006 Preliminary Announcement for Oxford Technology 2 Venture Capital Trust plc for the year ended 28 February 2006 Chairman's Statement Investment Portfolio Overall, the Directors of Oxford Technology 2 VCT are pleased with the progressmade by investee companies. Some have had particular difficulties of one sort oranother, but others have made encouraging progress. However, it is not always possible to translate 'general good progress' into anincrease in Net Asset Value, particularly if the investee company has not neededto raise additional capital, or if the company is not yet profitable (in thesecircumstances the mechanism for revaluation is clear - either the new shareprice, or a suitable price to earnings multiple). On the other hand, investeesthat have raised capital at a reduced share price, or are failing to meetsignificant targets will always be written down in the Net Asset Value. This conservative approach to valuation of recognising poor performance but notalways recognising strong performance means that a reduction in overall NetAsset Value does not necessarily mean the portfolio as a whole is doing badly -and this is true for Oxford Technology 2 VCT, where the Directors are generallypleased with the portfolio, despite the drop in Net Asset Value. Perhaps thebest way to evaluate the performance of the portfolio is to follow theindividual investee companies, and that is why Oxford Technology 2 VCT tries togive fairly full descriptions of each company in its newsletters. A number of companies have performed well over the year (but, in most cases,have not been 'written up' in value) e.g. Orthogem, which has developed anartificial bone material, TriPore(R), to replace the harvesting of cadaver bone(allograft), and bone taken from the patient themselves (autograft). TriPorerecently received its CE Mark, the European approval for use in the clinic, andexpects to be awarded US regulatory approval later in the year. Commerce Decisions, which provides software to organisations involved in complexand strategically important procurements (such as battleships, hospitals ortransport infrastructure), achieved its first £1m revenue year in 05/06, and isset to see this grow by about 70% this year. ImmunoBiology, which is developing novel vaccines for tuburculosis and influenza(including pandemic 'bird flu') closed an investment round of £5.5m which seesthe company funded for the next three years, a tremendous achievement for a drugdevelopment company in the current market. Im-Pak, which has developed a novel technology for plastic injection moulding,has agreed heads of terms with a public company for a licence on the Im-Pakprocess for a particular market sector. If the agreement is concluded, Im-Pakwould receive lump sum payments, as well as monthly royalties as the technologyis exploited. Oxis Energy has been making very encouraging progress with its rechargeablebattery, which is proving of interest to BT, and also to oil companies whoparticularly like the fact that its lithium sulphide electrochemistry means thatit works at high temperature. Insense is making good progress with its wound healing dressing, and is alsoprogressing commercial discussions with potential marketing partners. OCRoboticshas received a contract worth more than $1m for a snake arm robot for the USmilitary, and finally Telegesis is attracting significant interest from majorglobal companies for its Zigbee modules. Fuller information on each of the investee companies is given in the latestnewsletter. Results for the year Interest on bank deposits and investee loans produced gross income of £473,00(2005: £37,000) in the year. Retained profits were £298,000 (2005: loss of£47,000) and earning per share for the year was 4.97p (2005: loss of 0.78p) pershare. AGM Shareholders should note that the AGM for Oxford Technology 2 VCT will be heldon Monday 19th June 2006, at the Magdalen Centre, Oxford Science Park, startingat 12.00 noon and will include presentations by some of the companies in whichthe Oxford Technology VCTs have invested. A formal Notice of AGM has beenincluded at the back of these Accounts together with a Form of Proxy for thosenot attending. John Jackson Chairman 5 May 2006 Profit and Loss Account for the year ended 28 February 2006 Year Ended Year End 28 28/02/06 /02/05 £000 £000Turnover 473 37Administrative Expenses (156) (166)Operating Profit 317 (129)Profit / (loss) on revaluation of (19) 82investmentsProfit / (loss) on ordinary 298 (47)activities before taxationTax on ordinary activities - -Profit / (loss) on ordinary 298 (47)activities after taxation Retained profit / (loss) for the 298 (47)year ====== ======Earnings per ordinary share 4.97p (0.78)p ====== ====== Balance sheet at 28 February 2006 28 February 2006 28 February 2005 Audited Audited £000 £000 £000 £000Fixed assetsInvestments 3,666 4,434Current assetsDebtors and prepayments 3 67Cash at bank 660 142 _____ _____ 663 209Creditors: amounts falling due (4) (4)within one year _____ _____Net current assets 659 205 _____ _____Net assets 4,325 4,639 ===== =====Capital and reservesCalled up share capital 600 600Share premium account - 5,221Other reserves:Capital reserve - realised - (149)Capital reserve - unrealised - (593)Profit and loss accounts 2,879 (440)Revaluation reserve 846 -Shareholders' funds 4,325 4,639 ===== =====Net asset value per share 72p 77p ===== ===== Cash flow statement for the year ended 28 February 2006 2006 2005 Audited Audited £000 £000Net cash inflow (outflow) from 381 (149)operating activitiesCapital expenditure and financialinvestment Purchase of investments (113) - Disposal / redemption of investments 250 40 ______ ______Net cash inflow from capital 137 40expenditure and financial investment ______ ______Increase / (Decrease) in cash 518 (109) ====== ====== Notes: 1. Basis of preparation The preliminary announcement has been prepared in accordance with applicableaccounting standards and with the Statement of Recommended Practice 'Financialstatements of investment trust companies' issued in January 2003. The principalaccounting policies have remained unchanged from those set out in the company's2003 financial statements. 2. Earnings per Ordinary Share The calculation of earnings per share is based on the net profit for thefinancial period of £298,000 (2005: (£47,000)) divided by the weighted averagenumber of ordinary shares of 6,000,000 (2005: 6,000,000) in issue during theperiod. 3. General The financial information set out in this preliminary announcement does notconstitute statutory accounts as defined in section 240 of the Companies Act1985. The balance sheet at 28 February 2006 and the profit and loss account,cash flow statement and associated notes for the year then ended have beenextracted from the company's 2006 statutory financial statements on which theauditors' opinion is unqualified and does not include any statement undersection 237 of the Companies Act 1985. This information is provided by RNS The company news service from the London Stock Exchange