11th May 2009 16:56
Aberdeen Growth VCT I PLC
The Directors announce the Company's results for the year ended 31 January 2009. The major features of the year are:
Performance
The NAV total return at 31 January 2009 was 65.8pps, a decrease of 17.4% over the equivalent figure at 31 January 2008. The most important measure for a VCT is the total return, being the long term record of dividend payments out of income and capital gains combined with the current NAV. In the short term, the NAV on its own is a less important measure of the performance as the underlying investments are long-term in nature and not readily realisable. At 31 January 2009, the NAV was 53.9pps.
Dividends
The Board is proposing a final dividend of 1.2p per Ordinary Share to be paid on 26 June 2009 to Shareholders on the register on 29 May 2009. To a higher rate tax payer, this represents a tax-free yield for the year of 8.0% on the share price of 20.0p at 31 January 2009.
Outlook
The unlisted investments held by the Company are generally trading well and are not directly affected by the turmoil which has been experienced in the quoted markets. It appears that the banks are reducing their exposure to commercial lending and the unlisted companies in the portfolio may have to manage within their existing facilities; based on their current trading, this should not cause any problems to our portfolio. However, if necessary, the Company does have the cash and available facilities to assist where appropriate. The Manager will generally hold seats on the boards of our investee companies and, therefore, is closely involved with those investments as they face the current and expected market conditions. There is, of course, a less close association with AIM investments.
There has been little AIM activity in recent months and it seems likely that it will be some time before new opportunities to invest in companies seeking an IPO on that market become available. As before, the Manager will maintain a focus on investing in unlisted companies which offer excellent growth prospects as it is believed that such businesses will offer the opportunity for profitable realisations in due course.
|
Aberdeen Growth VCT I PLC INCOME Statement For the year ended 31 January 2009 |
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|
Year ended 31 January 2009 (audited) |
Year ended 31 January 2008 (audited) |
|||||
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
|
Losses on investments |
- |
(3,124) |
(3,124) |
- |
(406) |
(406) |
|
Income from investments |
679 |
- |
679 |
761 |
- |
761 |
|
Other income |
19 |
- |
19 |
37 |
- |
37 |
|
Investment management fees |
(40) |
(357) |
(397) |
(50) |
(449) |
(499) |
|
Other expenses |
(314) |
- |
(314) |
(237) |
- |
(237) |
|
Profit/(loss) on ordinary activities before tax |
344 |
(3,481) |
(3,137) |
511 |
(855) |
(344) |
|
Tax on ordinary activities |
(66) |
66 |
- |
(115) |
115 |
- |
|
Profit/(loss) on ordinary activities after taxation |
278 |
(3,415) |
(3,137) |
396 |
(740) |
(344) |
|
Earnings per share (pence) |
1.24 |
(15.19) |
(13.95) |
1.76 |
(3.29) |
(1.53) |
A Statement of Total Recognised Gains and Losses has not been prepared as all gains and losses are recognised in the Income Statement.
All items in the above statement are derived from continuing operations. The Company has only one class of business and
derives its income from investments made in shares, securities and bank deposits.
The total column of this statement is the Profit and Loss Account of the Company.
|
Aberdeen Growth VCT I PLC REconciliation of movements in shareholders' funds For the year ended 31 January 2009 |
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|
Year ended 31 January 2009 (audited) |
Year ended 31 January 2008 (audited) |
|
|
£'000 |
£'000 |
|
|
|
|
|
|
Opening Shareholders' funds |
15,695 |
16,601 |
|
Total (loss) for the year |
(3,137) |
(344) |
|
Dividends paid - revenue |
(337) |
(112) |
|
Dividends paid - capital |
(112) |
(450) |
|
Closing Shareholders' funds |
12,109 |
15,695 |
|
ABERDEEN GROWTH VCT I PLC BALANCE SHEET As at 31 January 2009 |
||||
|
31 January 2009 (audited) |
31 January 2008 (audited) |
|||
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
Investments at fair value through profit or loss |
10,889 |
15,156 |
||
|
Current assets |
||||
|
Debtors |
521 |
440 |
||
|
Cash and overnight deposits |
733 |
136 |
||
|
1,254 |
576 |
|||
|
Creditors |
||||
|
Amounts falling due within one year |
(34) |
(37) |
||
|
Net current assets |
1,220 |
539 |
||
|
Net assets |
12,109 |
15,695 |
||
|
Capital and reserves |
||||
|
Called up share capital |
2,248 |
2,248 |
||
|
Share premium account |
10,535 |
10,535 |
||
|
Capital reserve - realised |
(4,188) |
(2,992) |
||
|
Capital reserve - unrealised |
(4,903) |
(2,684) |
||
|
Distributable reserve |
7,830 |
7,942 |
||
|
Capital redemption reserve |
212 |
212 |
||
|
Revenue reserve |
375 |
434 |
||
|
Net assets attributable to Ordinary Shareholders |
12,109 |
15,695 |
||
|
Net Asset Value per Ordinary Share (pence) |
53.9 |
69.8 |
||
|
ABERDEEN GROWTH VCT I PLC CASH FLOW STATEMENT For the year ended 31 January 2009 |
||||
|
Year ended |
Year ended |
|||
|
31 January 2009 (audited) |
31 January 2008 (audited) |
|||
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
Operating activities |
||||
|
Investment income received |
601 |
601 |
||
|
Deposit interest received |
19 |
56 |
||
|
Investment management fees paid |
(397) |
(499) |
||
|
Secretarial fees paid |
(86) |
(71) |
||
|
Directors' expenses paid |
(76) |
(77) |
||
|
Other cash payments |
(155) |
(97) |
||
|
Net cash outflow from operating activities |
(94) |
(87) |
||
|
Financial investment |
||||
|
Purchase of investments |
(2,396) |
(7,628) |
||
|
Sale of investments |
3,536 |
4,413 |
||
|
Net cash inflow/(outflow) from financial investment |
1,140 |
(3,215) |
||
|
Equity dividends paid |
(449) |
(562) |
||
|
Increase/(decrease) in cash |
597 |
(3,864) |
||
Notes
Accounting Policies - UK Generally Accepted Accounting Practice
(a) Basis of preparation
The Financial Statements have been prepared under the historical cost convention, modified to include the revaluation of investments, and in accordance with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies' (the SORP) issued in 2005. The disclosures on going concern in the Directors' Report form part of these Financial Statements.
(b) Income
Dividends receivable on equity shares and unit trusts are treated as revenue for the period on an ex-dividend basis. Where no ex-dividend date is available, dividends receivable on or before the year end are treated as revenue for the period. Provision is made for any dividends not expected to be received. The fixed returns on debt securities and non-equity shares are recognised on a time apportionment basis so as to reflect the effective interest rate on the debt securities and shares. Provision is made for any fixed income not expected to be received. Interest receivable from cash and short term deposits and interest payable are accrued to the end of the year.
(c) Expenses
All expenses are accounted for on an accruals basis and charged to the Income Statement. Expenses are charged through the revenue account except as follows:
expenses which are incidental to the acquisition and disposal of an investment are charged to capital; and expenses are charged to realised capital reserves where a connection with the maintenance or enhancement of the value of the investments can be demonstrated. In this respect, the investment management fee has been allocated 10% to revenue and 90% to realised capital reserves to reflect the Company's investment policy and prospective income and capital growth.(d) Taxation
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more tax in the future or right to pay less tax in the future have occurred at the balance sheet date. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying timing differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the Financial Statements which are capable of reversal in one or more subsequent periods.
Deferred tax is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which timing differences are expected to reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
The tax effect of different items of income/gain and expenditure/loss is allocated between capital reserves and revenue account on the same basis as the particular item to which it relates using the Company's effective rate of tax for the period.
(e) Investments
In valuing unlisted investments, the Directors follow the criteria set out below. These procedures comply with the revised International Private Equity and Venture Capital Valuation Guidelines for the valuation of private equity and venture capital investments. Investments are recognised at their trade date and are valued at fair value, which represent the Directors' view of the amount for which an asset could be exchanged between knowledgeable willing parties in an arm's length transaction. This does not assume that the underlying business is saleable at the reporting date or that its current shareholders have an intention to sell their holding in the near future.
A financial asset or liability is generally derecognised when the contract that gives rise to it is settled, sold, cancelled or expires.
1. For investments completed within the 12 months prior to the reporting date and those at an early stage in their development, fair value is determined using the Price of Recent Investment Method, except that adjustments are made when there has been a material change in the trading circumstances of the company or a substantial movement in the relevant sector of the stock market.
2. Whenever practical, recent investments will be valued by reference to a material arm's length transaction or a quoted price.
3. Mature companies are valued by applying a multiple to their fully taxed prospective earnings to determine the enterprise value of the company.
3.1 To obtain a valuation of the total ordinary share capital held by management and the institutional investors, the value of third party debt, institutional loan stock, debentures and preference share capital is deducted from the enterprise value. The effect of any performance related mechanisms is taken into account when determining the value of the ordinary share capital.
3.2 Preference shares, debentures and loan stock are valued using the Price of Recent Investment Method. When a redemption premium has accrued, this will only be valued if there is a reasonable prospect of it being paid. Preference shares which carry a right to convert into ordinary share capital are valued at the higher of the Price of Recent Investment Method basis and the price/earnings basis, both described above.
4. Where there is evidence of impairment, a provision may be taken against the previous valuation of the investment.
5. In the absence of evidence of a deterioration, or strong defensible evidence of an increase in value, the fair value is determined to be that reported at the previous balance sheet date.
6. All unlisted investments are valued individually by Aberdeen Private Equity's Portfolio Management Team. The resultant valuations are subject to detailed scrutiny and approval by the Directors of the Company.
7. In accordance with normal market practice, investments listed on the Alternative Investment Market or a recognised stock exchange are valued at their bid market price.
(f) Gains and losses on investments
When the Company revalues its investments during the year, any gains or losses arising are credited/charged to the Income Statement.
Movement in reserves
|
Share premium account |
Capital reserves - realised |
Capital reserves - unrealised |
Special distribut-able reserve |
Capital redemption reserve |
Revenue reserve |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£000 |
£'000 |
|
|
At 1 February 2008 |
10,535 |
(2,992) |
(2,684) |
7,942 |
212 |
434 |
|
Losses on sales of investments |
- |
(905) |
- |
- |
- |
- |
|
Investment management fees |
- |
(357) |
- |
- |
- |
- |
|
Net decrease in value of investments |
- |
- |
(2,219) |
- |
- |
- |
|
Dividends paid |
- |
- |
- |
(112) |
- |
(337) |
|
Tax effect of capital items |
- |
66 |
- |
- |
- |
- |
|
Net return on ordinary activities |
- |
- |
- |
- |
- |
278 |
|
As at 31 January 2009 |
10,535 |
(4,188) |
(4,903) |
7,830 |
212 |
375 |
Return per Ordinary Share
The returns per Ordinary Share are based on the following figures:
|
Year ended |
Year ended |
|
|
31 January 2009 |
31 January 2008 |
|
|
£'000 |
£'000 |
|
|
Weighted average number of Ordinary Shares in issue |
22,483,497 |
22,483,497 |
|
Revenue return |
£278,000 |
£396,000 |
|
Capital return |
(£3,415,000) |
(£740,000) |
|
Total return |
(£3,137,000) |
(£344,000) |
Net Asset Value per Ordinary Share
Net Asset Value per Ordinary Share as at 31 January 2009 has been calculated using the number of Ordinary Shares in issue at that date of 22,483,497(2008: 22,483,497).
Principal risks and uncertainties
The Company's financial instruments comprise securities and other investments, financial commitments and guarantees, cash balances, overnight deposits and debtors and creditors that arise directly from its operations, for example, in respect of sales and purchases awaiting settlement, and debtors for accrued income. The Company may not enter into derivative transactions in the form of forward foreign currency contracts, futures and options without the written permission of the Directors. No derivative transactions were entered into during the period.
The main risks the Company faces from its financial instruments are (i) market price risk, being the risk that the value of investment holdings will fluctuate as a result of changes in market prices caused by factors other than interest rate or currency movement; (ii) interest rate risk; (iii) liquidity risk; and (iv) credit risk. In line with the Company's investment objective, the portfolio comprises UK securities and, therefore, has no exposure to foreign currency risk.
The Manager's has policies in place for managing these risks and they have been applied throughout the year. Additional risks faced by the Company, and the mitigation approach adopted by the Board, are as follows:
investment objective: the Board's aim is to maximise absolute returns to Shareholders while managing risk by ensuring an appropriate diversification of investments;
discount volatility: due to the lack of liquidity in the secondary market, venture capital trust shares tend to trade at discounts to net asset values; and
regulatory risk: the Company operates in a complex regulatory environment and faces a number of related risks. A breach of Section 274 of the Income Tax Act 2007 could result in the Company being subject to capital gains tax on the sale of its investments. A breach of the VCT Regulations could result in the loss of VCT status and consequent loss of tax reliefs currently available to Shareholders. A serious breach of other regulations, such as the UKLA Listing Rules or the Companies Acts, would lead to suspension of its shares from the Stock Exchange, loss of VCT status and reputational damage. The Board receives quarterly reports from the Manager in order to monitor compliance with regulations.
The Board considers all of the above risks and the measures in place to manage them at each Board Meeting.
Other information
The Annual General Meeting will be held on 9 June 2009, commencing at 10.30 a.m.
This Announcement has been prepared on the same basis as the Annual Report and Financial Statements for the year ended 31 January 2008. The Annual Report and Financial Statements for the year ended 31 January 2009 will be filed with the Registrar of Companies and issued to Shareholders in due course.
The financial information contained within this Announcement does not constitute the Company's statutory Financial Statements as defined in Section 240 of the Companies Act 1985. The statutory Financial Statements for the year ended 31 January 2008 have been delivered to the Registrar of Companies and contained an audit report which was unqualified and did not constitute statements under Sections 237(2) or (3) of the Companies Act 1985.
Copies of this announcement, and of the Annual Report and Financial Statements Annual Report and Financial Statements for the year ended 31 January 2009, will be available to the public at the office of Aberdeen Asset Managers Limited, 149 St Vincent Street, Glasgow; at the registered office of the Company, One Bow Churchyard, Cheapside, London and on the Company's website at www.agvct.co.uk.
Directors' responsibility statement
The Directors believe that, to the best of their knowledge:
the Financial Statements have been prepared in accordance with the applicable accounting standards and give a true and fair view of the assets, liabilities and financial position and profit or loss of the Company as at 31 January 2009 and for the year to that date; and
the Directors' Report includes a fair review of the development and performance of the Company, together with a description of the principal risks and uncertainties that it faces.
By Order of the Board
ABERDEEN ASSET MANAGEMENT PLC
SECRETARIES
11 May 2009
Related Shares:
Maven Income and Growth VCT 2