30th Apr 2008 10:36
TP70 VCT Plc30 April 2008 TP70 VCT plc Preliminary Announcement of Annual Results The Directors of TP70 VCT plc today announce the results of the Company for theperiod from 26 November 2006 to 31 March 2008 as set out below : For further information please contact David Dick on 020 7404 7403 or GrahamUrquhart on 020 3216 2000. Group financial summary For the period ended 31 March 2008 £'000Net assets 29,725Net loss before tax (1,191)Loss per share (3.86p)Net asset value per share 92.78p TP70 VCT plc ("the Company") is a Venture Capital Trust ("VCT"). The investmentmanager is Triple Point Investment Management LLP. The Company was launched inJanuary 2007 and raised £30.9 million (net of expenses) through an offer forsubscription. No transactions in the company's shares have taken place to date. Chairman's statement I am pleased to be writing to you to present the first financial statements forTP70 VCT plc ("the Company") for the period from incorporation on 26 November2006 to 31 March 2008. The Company was admitted to the London Stock Exchange on21 March 2007 so whilst these accounts are for a period of 16 months, theyrepresent the first 12 months business. The Company's investment strategy is to offer combined exposure to GAM's fund ofhedge funds, GAM Diversity Inc, and venture capital investments focused oncompanies with contractual revenues from financially secure counterparties.Investment exposure in the first two years is likely to be predominantly to GAMDiversity Inc. By the end of its third year the Company's intention is that atleast 70% of the fund will be committed to VCT qualifying holdings with up to30% remaining exposed to GAM Diversity Inc. Results The Group recorded a loss of £1,191,000 for the period made up of a revenue lossof £149,000 and a capital loss of £1,042,000. The investment manager's report explains the results to date from implementationof the strategy for non VCT qualifying holdings and its expectations for thecoming year of making investments in qualifying holdings. If you have any queries or comments, please do not hesitate to telephone TriplePoint Investment Management LLP on 020 7404 7403 or email me [email protected]. Michael Sherry, Chairman 29 April 2008 Details of Advisers Secretary and Registered Office:Peter Hargreaves10 - 11 Gray's Inn SquareLondonWC1R 5JD Registered Number6010401 Investment Manager and AdministratorTriple Point Investment Management LLP ("TPIMLLP")10 - 11 Gray's Inn SquareLondonWC1R 5JDTel: 020 7404 7403 Independent AuditorGrant Thornton UK LLP1 Westminster WayOxfordOX2 0PZ SolicitorsHoward Kennedy19a Cavendish SquareLondonW1A 2AW RegistrarsNeville Registars LimitedNeville House18 Laurel Lane,Halesowen,West Midlands B63 3DA VCT Taxation AdvisersPriceWaterhouseCoopers1 Embankment PlaceLondonWC2N 6RN BankersHSBC Bank plcPO Box 64827-32 PoultryLondonEC2P 2BX Investment Manager's review The Company has done exactly what was contemplated in the prospectus. Asdetailed in the schedule appearing overleaf 99.8% of the company's investmentportfolio consists of non VCT qualifying holdings with the remainder being cash.£4.4 million, equivalent to 14.5% of holdings represents the subsidiary'sholding of GAM Diversity Inc, capped at this figure as VCT rules do not permitan investment in a single security of more than 15% of a VCT's funds. Over theperiod the value of the direct investment has declined 1.4%. The balance of£26.02 million of non qualifying holdings represents a portfolio of corporateand supranational bonds managed by Barclays Capital, the return on which hasbeen swapped under the derivative transaction with an index replicating theperformance of GAM Diversity Inc. Thus the whole of the bond portfolio isindirectly also committed to Diversity's performance. The derivativetransaction is reflected in the accounts as follows:- Since investment in the Barclays Capital portfolio the GAM Diversity index hasfallen 2.15%. This compares to falls in the following indices in the sameperiod: %FTSE All Share -12.06MSCI World -8.23HFRI/HFRX Global Hedge Fund -2.80 During the period to 31 March 2008 the Investment Manager sourced £15 million ofHMRC pre-approved VCT qualifying investments for Triple Point VCT, which is nowfully invested in qualifying holdings. The Investment Manager has a currentpipeline of approximately £35 million of potentially qualifying holdings and itsintention is to focus on their introduction to the Company so that it meets therequirement of being 70% invested in VCT qualifying holdings within the requiredtimetable. Investment Manager's review (continued) Security Cost Valuation £'000 % £'000 % Qualifying holdings - - - -Non-qualifying holdings 30,058 99.75 30,428 99.76Uninvested funds 74 0.25 74 0.24 30,132 100.00 30,502 100.00 Non Qualifying Holdings QuotedGAM Diversity Hedge Fund 4,465 14.85 4,403 14.47Barclays Bond PortfolioWalmart 4.75 29 Jan 2013 1,552 5.16 1,608 5.28NY Life Global Fdg 4.5 17 Jan 2013 MTN Rg 1,522 5.06 1,552 5.10MG Fund 4.625 18 Jan 2013 MTN 1,530 5.09 1,499 4.92Rabobk 4.625 31 May 2012 1,550 5.16 1,590 5.23AIG Sun 5.125 28 Jan 2013 MTN 1,569 5.22 1,498 4.92Nedgem 4.375 14 Dec 2012 MTN 1,529 5.09 1,605 5.27Eib 4.5 14 Jan 2013 1,538 5.12 1,617 5.31Eib 4.75 06 Jun 2012 1,563 5.20 1,632 5.36Kfw 4.875 15 Jan 2013 MTN 1,567 5.21 1,636 5.38Kfw Int Fin 4.75 07 Dec 2012 MTN 1,559 5.19 1,630 5.36Kommbk 4.875 10 Dec 2012 MTN 1,568 5.22 1,638 5.38Massmutual G 6.125 14 May 2013 MTN 1,652 5.50 1,660 5.45Total 5.5 29 Jan 2013 1,608 5.35 1,656 5.44GE 6.125 17 May 2012 MTN 1,645 5.47 1,667 5.48E.ON 6.375 29 May 2012 1,654 5.50 1,648 5.43RBOS 10.5 01 Mar 2013 1,987 6.61 1,889 6.22 30,058 100.00 30,428 100.00 David DickforTriple Point Investment Management LLP29 April 2008 Consolidated income statementFor the period 27 November 2006 to 31 March 2008 Revenue Capital Total £'000 £'000 £'000 Investment income 1,382 - 1,382Unrealised gain on investments - 370 370Derivative transaction (1,266) (991) (2,257)Investment return 116 (621) (505) Investment management fees 140 421 561Financial and regulatory costs 26 - 26General administration 20 - 20Legal and professional fees 28 - 28Directors' remuneration 51 - 51 Operating expenses 265 421 686 Loss before taxation (149) (1,042) (1,191)Income tax expense - - - Loss after taxation (149) (1,042) (1,191) Basic and diluted loss per share (0.48p) (3.38p) (3.86p) The total column of this statement represents the Group's income statement,prepared in accordance with International Financial Reporting Standards("IFRS"). The supplementary revenue and capital reserve columns are preparedunder guidance published by the Association of Investment Companies. The consolidated income statement for the period ended 31 March 2008 includesthe results of Starshell Limited. All revenue and capital items in the above statement derive from continuingoperations. The company has taken advantge of section 230 of the Companies Act 1985 not topublish its own income statement. Balance sheets - consolidated and companyAt 31 March 2008 Parent Group Company £'000 £'000 Non Current Assets Financial assets at fair value through 30,428 30,428profit and loss Current Assets: Other receivables 578 578Cash and cash equivalents 74 63 652 641 TOTAL ASSETS 31,080 31,069 Current Liabilities Trade and other payables 141 136Amount payable under derivative 1,173 1,173transaction Current taxation payable - -Short term provisions 41 37 1,355 1,346 NET ASSETS 29,725 29,723 EQUITY Equity attributable to equity holders of the parent Share capital 320 320Share premium 30,596 30,596Capital reserve (1,042) (1,059)Revenue reserve (149) (134)Total equity 29,725 29,723 Net asset value per share (pence) 92.78p 96.47p Statement of changes in shareholders' equity - consolidated and companyfor the period 27 November 2006 to 31 March 2008 Issued Share Premium Capital Revenue Total Capital Reserve Reserve £'000 £'000 £'000 £'000 £'000 Group:Changes in equity in the periodLoss for the period - - - (1,191) (1,191)Transfer to capital reserve - - (1,042) 1,042 -Issue of share capital 320 31,717 - - 32,037Share issue costs - (1,121) - - (1,121)Balance at 31 March 2008 320 30,596 (1,042) (149) 29,725 Parent Company:Changes in equity in the periodLoss for the period - - - (1,193) (1,193)Transfer to capital reserve - - (1,059) 1,059 -Issue of share capital 320 31,717 - - 32,037Share issue costs - (1,121) - - (1,121)Balance at 31 March 2008 320 30,596 (1,059) (134) 29,723 Statement of cash flows - consolidated and companyFor the period 27 November 2006 to 31 March 2008 Parent Group Company £'000 £'000 Cash flows from operating activities Loss before taxation (1,191) (1,193)Unrealised gain in investment values (370) (354) Cash absorbed by operations (1,561) (1,547)Increase in other receivables (578) (578)Increase in current liabilities 1,355 1,346 Net cash outflow from operating (784) (779)activities Cash flow from investing activities Purchase of financial assets at fair (30,058) (30,074)value through profit and loss account Net cash flows from investing (30,058) (30,074)activities Cash flows from financing activities Proceeds from issue of share capital 32,037 32,037Share issue expenses (1,121) (1,121) Net cash flows from financing 30,916 30,916activities Net increase in cash and cash 74 63equivalents Reconciliation of net cash flow to movements in cash and cash equivalents Cash and cash equivalents at 31 March 2008 74 63 Notes: 1 Loss per share The revenue loss per share is based on a revenue loss from ordinary activitiesafter tax of £149,000 and on 32,037,546 shares, being the weighted averagenumber of shares in issue during the period. There are no potentially dilutivecapital instruments in issue and, therefore, no diluted return per share figuresare relevant. 2 Dividend The directors are not proposing a dividend for the period ended 31 March 2008. 3 Accounts The financial information set out in this preliminary announcement does notconstitute statutory accounts as defined in section 240 of the Companies Act1985 ('the Act'). The balance sheet as at 31 March 2008, income statement, cashflow statement and Note 1 for the period then ended have been extracted from theCompany's 2008 statutory financial statements upon which the auditors' opinionis unqualified and does not include any statement under section 327 of the Act. The Annual Report & Accounts for the period ended 31 March 2008 will be filed atthe Registrar of Companies and will be posted to shareholders shortly. 4 Announcement A copy of this announcement will be available at the offices of the Company for14 days from the date of this announcement. The preliminary announcement is notbeing posted to shareholders. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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