Final Results

8 May 2007 14:39

Oxford Technology 3 VCT PLC08 May 2007 Preliminary Announcement for Oxford Technology 3 Venture Capital Trust plc for the year ended 28 February 2007 Chairman's Statement Investment Portfolio The Board of Oxford Technology 3 VCT remains pleased with the overalldevelopment of the portfolio. The nature of investing in early stage technology ventures is that there will befailures and that returns will come from just a few investments which do welland become very valuable. The portfolio of OT3 contains several investmentswhich continue to have the potential to be stars. But some companies haveexperienced problems and some valuations have been reduced. Bioanalab continues to make very solid progress, with sales growing strongly.The company is now generating profits. Commerce Decisions, continues to growsatisfactorily, with sales from the US beginning to become significant. GlidePharma continues to make excellent progress, and has agreed heads of terms forits first commercial deal. A pharma company has agreed to pay it money for anoption to sign an exclusivity deal, which would give it exclusive rights to useGlide's technology for its particular drug, in exchange for up front fees,milestones and royalties. Although not yet signed, at the date of writing, thisis powerful evidence that the market values Glide's technology. Glide is alsoprogressing with its plans to launch its own generic drug in its own format. Inaplex, in which OT3 owns 13%, though small, is now profitable, generatingcash, and growing. Insense is making good progress and, after long delays, hasreceived regulatory approval for use in case studies for the first of its familyof active wound-healing dressings. Sales in Europe are scheduled to begin insummer 2007. Inscentinel was rescued from mothballs by an OT3 shareholder whoread the newsletter and came to the rescue with an investment. It is nowreceiving increased interest from a variety of potential customers. The companyuses the exquisitely sensitive olfactory sense of insects to detect tracevapours. The fact that the insects can be trained to a new scent in minutes (ittakes three months to train a sniffer dog) makes Inscentinel's technologypotentially attractive to the security services. Inscentinel has received anumber of research contracts, but has yet to achieve commercial sales. Reviver suffered a significant setback when the third party company that wastaking action against infringers of its patents, in the expectation ofsignificant royalties, decided that the up front legal costs of continuing,together with the uncertainty of the outcome made the commercial risks too highand decided to withdraw. The value of the investment has been written down.Telegesis is making good progress in the sense that sales are growing, Zigbeetechnology is catching on (but still has a long way to go), and more and moreuses are being found for its modules. Telegesis modules have been specified insystems which will require substantial numbers of modules (100,000 - 1m, themodules are priced at £10-£20). But although promised, all of these largeorders have been delayed for reasons which have nothing to do with Telegesisitself. In one case the delay from the date on which the order was firstscheduled has already been 12 months. This makes planning difficult, and hasalso meant that Telegesis has needed to raise additional capital which has beendone at a reduced share price. OT3 owns 32% of Telegesis and the potentialremains large. Other investee companies are making satisfactory progress. Details of allinvestees are given in the accompanying newsletter. Results for the year Interest on bank deposits and investee loans together with dividend incomeproduced gross revenue of £9,000 (2006: £25,000) in the year. Net revenue aftertaxation and management expenses was a loss of £(152,000) (2006: loss of£133,000) and revenue return for the year was a loss of (2.81)p (2006: loss of2.46p) per share. Capital return was a loss of (3.40)p (2006: loss of 13.17p)per share. AGM Shareholders should note that the AGM for Oxford Technology 3 VCT will be heldon Monday 25th June 2007, 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 4 May 2007 Statement of Total Return (incorporating the revenue account)* for the period ended 28 February 2007 Revenue Capital 2007 Total Revenue Capital 2006 Total £000 £000 £000 £000 £000 £000Gains/(losses) on investments - (184) (184) - (712) (712)Income 9 - 9 25 - 25 Investment management fee (104) - (104) (102) - (102)Other expenses (57) - (57) (56) - (56) _____ _____ _____ _____ _____ _____Net return/(loss) on ordinary (152) (184) (336) (133) (712) (845)activities before taxationTax on net return/(loss) on - - - - - -ordinary activitiesReturn/(loss) attributable to (152) (184) (336) (133) (712) (845)equity shareholders andtransfers to/(from) reserves _____ _____ _____ _____ _____ ______Return/(loss) per ordinary share (2.81)p (3.40)p (6.21)p (2.46)p (13.17)p (15.63)p * The revenue column of this statement is the profit and loss account of thecompany. All revenue and capital items in the above statement derive from continuingoperations. There were no recognised gains or losses for the period other thanthose shown above. Balance sheet at 28 February 2007 28 February 2007 Audited 28 February 2006 Audited £000 £000 £000 £000Fixed assetsInvestments at fair value 4,613 4,758Current assetsDebtors & prepayments 2 3Cash at bank 59 237 _____ _____ 61 240 Creditors: amounts falling due (16) (4)within one year _____ _____Net current assets/ 45 236(liabilities) _____ _____Net assets 4,658 4,994 ===== =====Capital and reservesCalled up share capital 541 541Share premium account 4,658 4,658 Capital reserve - realised (44) (4)Capital reserve - unrealised (28) 116 Revenue reserve (469) (317) Shareholders' funds 4,658 4,994 ===== =====Net asset value per share 86p 92p ===== ===== Cash flow statement for the year ended 28 February 2007 2007 2006 Audited Audited £000 £000 Net cash outflow from operating (139) (131)activitiesCapital expenditure and financialinvestment Purchase of investments (49) (590) Disposal / redemption of investments 10 - ______ ______Net cash outflow from capital (39) (590)expenditure and financialinvestment ______ ______Increase /(Decrease) in cash (178) (721) ====== ====== 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 December 2005. The principalaccounting policies are set out in the company's financial statements for theyear ended 28 February 2007. 2. Return per Ordinary Share The calculation of revenue return per share is based on the loss of £152,000(2006: loss of £133,000) for the financial period divided by the weightedaverage number of ordinary shares of 5,406,480 (2006: 5,406,480) in issue duringthe period. The calculation of capital return per share is based on the net capital returnfor the financial period of £184,000 (2006: £712,000) divided by the weightedaverage number of ordinary shares of 5,406,480 (2006: 5,406,480) in issue duringthe period. 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 2007 and the statement of total return(incorporating the revenue account), cash flow statement and associated notesfor the year then ended have been extracted from the company's 2007 statutoryfinancial statements on which the auditors' opinion is unqualified and does notinclude any statement under section 237 of the Companies Act 1985. This information is provided by RNS The company news service from the London Stock Exchange