Final Results

8 May 2007 14:36

Oxford Technology 2 VCT PLC08 May 2007 Preliminary Announcement for Oxford Technology 2 Venture Capital Trust plc for the year ended 28 February 2007 Chairman's Statement Investment Portfolio Despite setbacks, with some investees having been written down in value, theDirectors of Oxford Technology 2 remain pleased with the development of theportfolio as a whole. Several companies in the portfolio have the potential todeliver large returns. Commerce Decisions, in which OT2 owns 5.9%, continues to grow satisfactorily,with sales from the US beginning to become significant. Inaplex, in which OT2owns 21%, though small, is now profitable, generating cash, and growing.Inscentinel was rescued from mothballs by an OT3 shareholder who read thenewsletter and came to the rescue with an investment. It is now receivingincreased interest from a variety of potential customers. The company uses theexquisitely sensitive olfactory sense of insects to detect trace vapours. Thefact that the insects can be trained to a new scent in minutes (it takes threemonths to train a sniffer dog) makes Inscentinel's technology potentiallyattractive to the security services. Inscentinel has received a number ofresearch contracts, but has not yet achieved commercial sales. Insense has obtained regulatory approval for the first of its family of activewound-healing dressings, and now has a schedule to introduce these to theEuropean market. OC Robotics continues to make excellent progress, and made aprofit for the first time on increased sales in the most recent year to December06. Interest has come mainly from the US, where several customers haveindicated that they will probably place much larger orders for snake-arm robotsin the coming months. Orthogem was on the point of signing a deal, which wouldhave led to the sale of the company to a US company, when bad data was receivedfrom a particular trial. On investigation the reasons for this were apparent(all other trials had produced excellent results), but this caused the processto stall. The hope is that it will revive - the fundamentals remain good - andif not there are other ways forward, but in the meanwhile the value of theinvestment has been written down in the name of prudence. Plasma Antennas has made a significant technical breakthrough after almost sixyears of trying. Only a three-man company, they have one potential customerinterested in purchasing up to 1m aerials at $150 each. But no order yet. Oxis Energy continues to obtain good results from its prototype Lithium Sulphiderechargeable batteries. Other companies are making reasonable if notspectacular progress. Results for the year Realised profit on disposal of investments, interest on bank deposits andinvestee loans produced gross income of £19,000 (2006: £473,000) in the year.Retained losses were £142,000 (2006: profit of £298,000) and earnings per sharefor the year were (2.37)p (2006: 4.97p) per share. AGM Shareholders should note that the AGM for Oxford Technology 2 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 JacksonChairman4 May 2007 Profit and Loss Account for the year ended 28 February 2007 Year ended Year ended 28/02/07 28/02/06 £000 £000Turnover 19 473Administrative Expenses (161) (156) -------- ----------Operating Profit (142) 317 Profit/(loss) on revaluation of - (19)investmentsProfit/(loss) on ordinary activities before taxation (142) 298Profit/(loss) on ordinary activities after taxation (142) 298Retained proft/(loss) for the year (142) 298 ======== ========Earnings per share (2.37) p 4.97p ======== ======== Statement of total recognised gains and losses for the period ended 28 February 2007 £'000 Loss for the financial period (142)Profit on investments held at fair value 275Total profit recognised since last annual report 133 Balance sheet at 28 February 2007 28 February 2007 Audited 28 February 2006 Audited £000 £000 £000 £000Fixed assetsInvestments at fair value 4,042 3,666Current assetsDebtors & prepayments 3 3Cash at bank 118 660 _____ _____ 121 663 Creditors: amounts falling due (5) (4)within one year _____ _____Net current assets/ 116 659(liabilities) _____ _____Net assets 4,158 4,325 ===== =====Capital and reservesCalled up share capital 600 600Profit and loss account 2,437 2,879 Revaluation reserve 1,121 846 Shareholders' funds 4,158 4,325 ===== =====Net asset value per share 69p 72p ===== ===== Cash flow statement for the year ended 28 February 2007 2007 2006 Audited Audited £000 £000Net cash inflow/(outflow) from (141) 381operating activitiesCapital expenditure and financial investment Purchase of investments (101) (113) Disposal / redemption of investments - 250 ______ ______Net cash inflow from capital (101) 137expenditure and financial investment Dividends paid (300) - ______ ______Increase /(Decrease) in cash (542) 518 ====== ====== Notes: 1. Basis of preparation The preliminary announcement has been prepared in accordance with applicable accounting standards and with the Statement of Recommended Practice 'Financial statements of investment trust companies' issued in December 2005. The principal accounting policies are set out in the company's financial statements for the year ended 28 February 2007. 2. Earnings per Ordinary Share The calculation of earnings per share is based on the net loss for the financial period of £142,000 (2006: £298,000 profit) divided by the weighted average number of ordinary shares of 6,000,000 (2006: 6,000,000) in issue during the year. 3. General The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The balance sheet at 28 February 2007 and the profit and loss account, cash flow statement and associated notes for the year then ended have been extracted from the company's 2007 statutory financial statements on which the auditors' opinion is unqualified and does not include 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