Preliminary Results

6 May 2005 16:24

Oxford Technology 2 VCT PLC06 May 2005 Preliminary Announcement for Oxford Technology 2 Venture Capital Trust plc for the year ended 28 February 2005 Chairman's Statement Investment Portfolio Oxford Technology 2 VCT (OT2VCT) investee companies have generally madeencouraging progress with some successfully raising capital at higher shareprices and one company floating on AIM (although this happened just after theFebruary 2005 year end and so has not been reflected in these accounts).However, the successes of these investee companies have been counter-balanced inthe Net Asset Value by others which have had difficulty in raising capitalduring the year. The net asset value as at 28 February 2005 was 77p per sharecompared to 78p per share at 29 February 2004. Insense, which develops novel wound dressings, has raised capital at anincreased price of £1.33 per share (which compares to the £1 per share at whichthe investment was originally held). The value of OT2VCT's holding in Insensehas therefore increased from £266,110 to £353,926. Astron Clinica, whichdevelops software and hardware systems for the detection of skin cancer andother skin disorders raised £3.5m at a shareprice which values OT2VCT's holdingat approximately £325,000. However, this happened just after the year end, sothis increased value is not reflected in the balance sheet of these accounts. However, other companies have had funding difficulties. Armstrong Healthcare inparticular has had problems in raising capital and the value of this holding hasdecreased. This has been caused by the fact that Armstrong has experienceddelays with the development programme of Pathfinder, its instrument for imageguided brain surgery, and because it missed its sales targets for EndoAssist,its camera holding robot for endoscopic surgery. This meant that Armstrongneeded to raise additional capital, and that it was necessary to raise this by arights issue at £1.50 per share which compared to £4 per share at which capitalhad been raised in 2004. However, at the time of writing, Armstrong hasreceived its first commercial order for Pathfinder and the sales prospects forEndoAssist are looking better, especially in the US, than at any previous time.So the hope and expectation is that the value of OT2VCT holding in Armstrongwill again increase. There have been encouraging developments since the year end at 28 February 2005,which will increase the Net Asset Value, but which are not reflected in theseaccounts. In particular, on 4 April 2005, Hardide Ltd floated on AIM, and OT2VCTsold its shares at the time of the float for £712,500. The original cost ofthis investment was £250,000, but for the purposes of these accounts, OT2VCTsholding was valued at £500,000 (being the number of shares held multiplied bythe most recent share price at which investors had subscribed). Results for the year Interest on bank deposits and investee loans together with dividend incomeproduced gross revenue of £47,000 (2004: £39,000) in the year. Net revenue aftertaxation and management expenses was a loss of £119,000 (2004: loss of £159,000)and revenue return for the period was a loss of1.98p (2004: loss of 2.65p) pershare. Capital return was a profit of 1.20p (2004: loss of 3.55p) per share. AGM Shareholders should note that the AGM for Oxford Technology 2 VCT will be heldon Friday 10th June 2005, at the Magdalen Centre, Oxford Science Park, startingat 12.00 pm and will include presentations by some of the companies in which theOxford Technology VCTs have invested. A formal Notice of AGM has been includedat the back of these Accounts together with a Form of Proxy for those notattending. Fuller information on each of the investee companies is given in the April 2005newsletter. John Jackson Chairman 6 May 2005 Statement of total return (incorporating the revenue account)* for the year ended 28 February 2005 2005 2004 Audited Audited Revenue £000 Capital Total Revenue Capital Total £000 £000 £000 £000 £000Loss on investments - 72 72 - (213) (213)Income 47 - 47 39 - 39Investment management fee (108) - (108) (133) - (133)Other expenses (58) - (58) (65) - (65) _____ _____ _____ _____ _____ _____Net loss on ordinary activities (119) 72 (47) (159) (213) (372)before taxationTax on ordinary activities - - - - - - _____ _____ _____ _____ _____ _____Loss attributable to equity (119) 72 (47) (159) (213) (372)shareholders and transfers fromreserves ====== ====== ====== ====== ====== ======Loss per ordinary share (1.98p) 1.20p (0.78)p (2.65)p (3.55)p (6.20)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 fromcontinuing operations. There were no recognised gains or losses for the yearother than those shown above. Balance sheet at 28 February 2005 28 February 2005 29 February 2004 Audited Audited £000 £000 £000 £000Fixed assetsInvestments 4,434 4,402Current assetsDebtors 67 38Cash at bank 142 251 _____ _____ 209 289Creditors: amounts falling due (4) (5)within one year _____ _____Net current assets 205 284 _____ _____Net assets 4,639 4,686 ===== =====Capital and reservesCalled up share capital 600 600Share premium account 5,221 5,221Other reserves:Capital reserve - realised (593) (583)Capital reserve - unrealised (149) (231)Revenue reserve (440) (321) _____ _____Shareholders' funds 4,639 4,686 ===== =====Net asset value per share 77p 78p ===== ===== Cash flow statement for the year ended 28 February 2005 2005 2004 Audited Audited £000 £000Net cash outflow from operating (149) (170)activitiesCapital expenditure and financialinvestment Purchase of investments - (156) Disposal / redemption of investments 40 3 ______ ______Net cash outflow from capital 40 (153)expenditure and financialinvestment ______ ______Decrease in cash (109) (323) ====== ====== Notes: 1. Basis of preparation The preliminary announcement has been prepared in accordance with applicableaccounting standards up to and including FRS 19 and with the Statement ofRecommended Practice 'Financial statements of investment trust companies' issuedin January 2003. The principal accounting policies have remained unchanged fromthose set out in the company's 2003 financial statements. 2. Return per Ordinary Share The calculation of revenue return per share is based on the net deficit for thefinancial period of £119,000 (2004: £159,000) divided by the weighted averagenumber of ordinary shares of 6,000,000 (2004: 6,000,000) in issue during theperiod. The calculation of capital return per share is based on the net capital loss forthe financial period of £72,000 (2004: loss of £213,000) divided by the weightedaverage number of ordinary shares of 6,000,000 (2004: 6,000,000) 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 2005 and the statement of total return,cash flow statement and associated notes for the year then ended have beenextracted from the company's 2005 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