6th Apr 2005 16:14
Triven VCT PLC06 April 2005 TRIVEN VCT PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 31 JANUARY 2005 CHAIRMAN'S STATEMENT NET ASSET VALUE At 31 January 2005, the Company's Net Asset Value (NAV) per share had risen to55.1 pence (2004: 51.6 pence). The Company, including the proposed finaldividend of 0.1 pence per share detailed below, will have distributedaccumulated dividends of 4.2 pence per share since the Company's launch. Thiscompares with the initial NAV (after the launch expenses of the issue) of 95.3pence per share ECONOMIC BACKGROUND The UK has maintained steady, if unspectacular growth over the last twelvemonths, with GDP growth of around 3% achieved in 2004. This has created arelatively benign economic environment for our investee companies, which in themain have continued to trade on a modest upwards trend. In terms of the major UK stockmarket indices, the FTSE All-Share, FTSE techMarkand AIM have all experienced positive growth over the last twelve monthscreating increased opportunities for IPOs and acquisitions of our investeecompanies by quoted companies. The Board remains hopeful that the improvement inthe performance of the portfolio will continue in the short to medium term. THE PORTFOLIO At present, Matrix Private Equity Partners (MPEP) manages 63% of the portfoliowith Elderstreet Private Equity Limited (Elderstreet) managing 21% and NovaCapital Management Limited (Nova) the balance. By market sector, the portfoliois fairly evenly spread with investments in consumer services companies at 35%,technology companies at 27%, media companies at 21% and the balance in businessservices. When considered by stage of development, the portfolio is dominated byinvestments in development capital companies at some 53% with 32% invested inMBO / MBI situations, 12% of the portfolio being quoted (primarily in AIMstocks), and with over 3% in early stage investments. This spread of investmentsreflects the current investment strategy of containing the level of risk in theportfolio whilst enjoying the opportunity of seeing some attractive rewards. The Elderstreet portfolio has seen some improvement throughout the year. Withinthe Elderstreet managed component of the portfolio, Computer Software Group plc,which floated at 53p, traded at 62.50p at the year-end whilst Mediasurface plc,which floated at 12p was valued at the year-end at 11.5p but as recently as 5April 2005 traded at 16.5p. In August and September 2004 the Company madeadditional investments of £100,000 and £46,709 into Computer Software Group andMediasurface respectively. A further investment of £80,000 into ComputerSoftware Group has been made since the year-end. Within the MPEP portfolio the disposal, in June 2004, of TJ Brent Limited to MayGurney Limited, an East Anglian based contracting business (reported in theInterim Report) was the highlight of the last year. TriVen's share of theproceeds was £2.1m giving a total profit of £1.2m. During the year one newinvestment was made with £235,200 being invested in October 2004 into TottelPublishing Limited, a publisher of legal and other specialist books. Since theyear end £183,803 has been invested into F H Ingredients Limited, a processor ofherbs for the ready meal market. During the year Higher Nature plc re-paid itsloan stock to TriVen in full. This now leaves TriVen holding £500,000 of equityinvestment in this company, which is currently being valued at £1.2m. Nova continues to work hard to recapture and create value from the diminishedportfolio it inherited from LICA, and, in particular, are working on thelong-term strategy for Watkins Books Limited and Caxton Publishing GroupLimited. BOARD OF DIRECTORS In my recent Interim Report I referred to Helen Sinclair's intention to resignfrom the Board due to a possible perceived conflict of interests resulting fromher directorship of Matrix Private Equity Partners Limited. Helen has nowsignalled her intention to leave MPEP in the near future. In which event, nopotential conflict of interest will arise and, accordingly, I am delighted toadvise you that the Board has invited Helen to remain as a Director. REVENUE ACCOUNT The revenue return for the year is negative, as there has been a decline inincome earned. Total income has also fallen by 19%, as loan stock interest anddividend income was halved, due primarily to the disposal of the T J Brentinvestment, to loan repayments by Higher Nature and to several situations whereit is no longer prudent to recognise the interest income as collectable. Incomefrom cash to be invested rose due to the recent disposal of the T J Brentinvestment. Fund management fees declined by a third as a result of the reduced fee ratesnegotiated with each of the three investment managers from the start of the yearunder review. Expenditure has been reduced by 5%, mainly due to decreases inprofessional and administration fees. DIVIDEND The Company's revenue loss per Ordinary Share was 0.04 pence per share (2004:profit of 0.14 pence per share). Your Board will be recommending a finaldividend of 0.1 pence per Ordinary Share in respect of the year under review atthe Annual General Meeting to be held on 25 May 2005. The dividend will be paidon 8 June 2005 to shareholders on the Register on 13 May 2005. SHARE BUY-BACKS During the year ended 31 January 2005 the Company continued to implement itsbuy-back policy and bought back 691,000 Ordinary Shares (representing 3.77%) ofthe shares in issue) at a total cost of £273,370 (excluding expenses). Theseshares were subsequently cancelled by the Company. Colin HookChairman5 April 2005 UNAUDITED INVESTMENT PORTFOLIO SUMMARY AT 31 JANUARY 2005 Cost at Valuation at Valuation at % of portfolio 31-Jan-05 31-Jan-04 31-Jan-05 by value £ £ £ELDERSTREET PRIVATE EQUITY LIMITED Computer Software Group plc 409,452 169,376 380,413 7.23% European Telecommunications & Technology 300,244 464,846 300,244 5.71%Limited Mediasurface plc 297,481 180,478 231,367 4.4% Sparesfinder Limited 250,000 0 75,539 1.44% SIFT Group Limited 125,000 126,852 62,500 1.19% Cashfac Limited 260,101 32,828 32,828 0.62% Netstore plc 50,000 12,567 12,333 0.23% Other investments in the portfolio 955,562 0 0 0.00% Total 2,647,840 986,947 1,095,224 20.82% MATRIX PRIVATE EQUITY LIMITED (MPEP) Higher Nature Plc 500,000 1,334,147 1,218,814 23.17% Maven Management Limited 175,000 840,436 800,000 15.21% Letraset Limited 500,000 598,050 439,172 8.35% F - M Image Management Limited 537,097 375,968 375,968 7.15% Tottel Publishing Limited 235,200 n/a 235,200 4.48% Inca Interiors Limited 350,000 200,000 200,000 3.80% BG Consulting Group Limited 200,000 176,299 25,000 0.48% Other investments in the portfolio 1,720,000 1,688,884 0 0.00% Total 4,217,297 5,213,784 3,294,154 62.64% NOVA CAPITAL MANAGEMENT LIMITED Caxton Publishing Group Limited 1,000,000 750,000 750,000 14.26% Watkins Books Limited 1 ,000,000 0 120,000 2.28% Other investments in the portfolio 2,750,000 0 0 0.00% Total 4,750,000 750,000 870,000 16.54% INVESTMENT MANAGERS' TOTALS 11,615,137 6,950,731 5,259,378 100.00% STATEMENT OF TOTAL RETURN(incorporating the Revenue Account of the Company)FOR THE YEAR ENDED 31 JANUARY 2005 Year ended 31 January 2005 (unaudited) Year ended 31 January 2004 Revenue Capital Total Revenue Capital Total £ £ £ £ £ £ Unrealised gains/ (losses) on investments - 240,622 240,622 - (2,186,266) (2,186,266) Realised gains and (losses) on investments - 401,162 401,162 - 277,922 277,922 Income 276,673 - 276,673 339,859 - 339,859 Investment (24,722) (74,166) (98,888) (38,931) (116,794) (155,725)management fees Other expenses (257,238) - (257,238) (271,217) - (271,217) RETURN ON ORDINARY (5,287) 567,618 562,331 29,711 (2,025,138) (1,995,427)ACTIVITIES BEFORETAXATION Tax on ordinary (2,034) 2,034 - (3,055) 3,055 -activities RETURN ON ORDINARY (7,321) 569,652 562,331 26,656 (2,022,083) (1,995,427)ACTIVITIES AFTERTAXATION Dividend (18,166) - (18,166) (47,360) - (47,360) TRANSFER (FROM)/TO (25,487) 569,652 544,165 (20,704) (2,022,083) (2,042,787)RESERVES BASIC AND DILUTED (0.04)p 3.04p 3.00p 0.14p (10.52)p (10.48)pRETURN PER ORDINARYSHARE All revenue and capital items in the above statement derive from continuingoperations. The revenue return as stated does not differ materially from that underhistorical cost and is the profit and loss account for the company. BALANCE SHEET AS AT 31 JANUARY 2005 as at 31 January 2005 as at 31 January 2004 (unaudited) £ £ £ £ £ £FIXED ASSETSInvestments 5,259,378 6,950,731 CURRENT ASSETSDebtors 84,578 138,898Current asset investments 4,184,083 2,871,292Cash at bank 703,125 43,808 4,971,786 3,053,998 CREDITORS: AMOUNTS FALLING DUEWITHIN ONE YEARCorporation tax -Other creditors 42,218 76,383Accruals 99,529 108,071 (141,747) (184,454)NET CURRENT ASSETS 4,830,039 2,869,544 NET ASSETS 10,089,417 9,820,275 CAPITAL AND RESERVESCalled up share capital 916,434 950,984Capital redemption reserve 38,325 3,775Special reserve 16,925,416 17,200,439Capital reserve - realised (1,504,898) (2,622,812)Capital reserve - unrealised (6,355,759) (5,807,497)Revenue reserves 69,899 95,386 10,089,417 9,820,275 Net Asset Value per Ordinary 55.1p 51.6pshare CASH FLOW STATEMENT Year ended 31 January 2005 Year ended 31 January 2004 (unaudited) £ £ £ £OPERATING ACTIVITIESNet investment interest 280,236 439,374Dividend income 30,534 28,598Investment management fees paid (106,965) (132,829)Other cash payments (242,425) (300,863) NET CASH (OUTFLOW)/INFLOW FROM OPERATING (38,620) 34,280ACTIVITIES TAXATIONUK Corporation tax paid - - INVESTING ACTIVITIESAcquisition of investments (383,605) (185,961)Disposal of investments 2,716,742 3,029,903NET CASH INFLOW FROM INVESTING ACTIVITIES 2,333,137 2,843,942 DIVIDENDSPayment of dividend (47,386) (47,549) CASH INFLOW BEFORE FINANCING AND LIQUID 2,247,131 2,830,673RESOURCE MANAGEMENT MANAGEMENT OF LIQUID RESOURCESMonies held pending investment (1,312,791) (2,792,112) FINANCINGShares purchased for cancellation (275,023) (32,959) INCREASE IN CASH FOR THE YEAR 659,317 5,602 Notes 1. The revenue column of the statement of total return is the profit and loss account of the Company. 2. In accordance with the policy statement published under "Management and Administration" in the Company's prospectus dated 8 February 1999, the Directors have charged 75% of the investment management expenses to the capital reserve. 3. The revenue return per Ordinary Share is based on the net loss from ordinary activities after taxation of £7,321 and is based on 18,730,155 Ordinary Shares, being the weighted average number of Ordinary Shares in issue during the period. 4. The financial information set out in these statements does not constitute the Company's statutory accounts for the year ended 31 January 2005 but is derived from those accounts. Statutory accounts will be delivered to the Registrar of Companies after the Annual General Meeting. 5. The Company proposes to pay a final dividend of 0.1 pence per share on 8 June 2005 to all shareholders on the register on 13 May 2005. 6. The Annual General Meeting of the Company will be held at 12.00 noon on 25 May 2005 at One Jermyn Street, London SW1Y 4UH. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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