20th Apr 2007 18:27
Close Technology & General VCT PLC20 April 2007 CLOSE TECHNOLOGY & GENERAL VCT PLC PRELIMINARY RESULTS 20 April 2007 Close Technology & General VCT PLC ("the Company"), which offers investors theopportunity to participate in a balanced portfolio of technology andnon-technology businesses, today announces preliminary results for the yearended 31 December 2006. This announcement has been approved by the Board ofDirectors on 20 April 2007. Financial Highlights: Ordinary Shares C Shares Year ended Year ended 31 December 2006 31 December 2006 Dividends paid per share (pence) 8.0 0.5Net asset value per share (pence) 114.4 94.9 Shareholder value per share since launch: Pence per share(ii) Pence per share(ii) Dividends paid during the year to 31 December 1.0 -2001(i) Dividends paid during the year to 31 December 2.0 -2002 Dividends paid during the year to 31 December 2003 1.5 - Dividends paid during the year to 31 December 7.5 -2004 Dividends paid during the year to 31 December 9.0 -2005 Dividends paid during the year to 31 December 8.0 0.52006 Total dividends paid to 31 December 29.0 0.52006Net asset value per share as at 31 December 114.4 94.92006 Total return at 31 December 2006 143.4 95.4 In addition to the dividends summarised above, the Directors have declared aFirst Dividend of 4 pence per Ordinary share and 1 pence per C share to be paidon 25 May 2007 to shareholders on the register at 4 May 2007. Notes (i) Based on subscription by the first closing on 16 January 2001. Investors subscribing thereafter, up to 30 June 2001 received 0.5 pence per share. (ii) Excludes tax benefits upon subscription. For further information, please contact: Patrick Reeve Roddi Vaughan-ThomasClose Ventures Limited Peregrine Communications GroupTel: 020 7422 7831 Tel: 020 7223 1552 CHAIRMAN'S STATEMENT I am pleased to present the results for the year to 31 December 2006. Asindicated at the time of the interim results, this year has been a period ofconsolidation for the Ordinary shares after the excellent performance over theprevious two years. The investment programme for the new C shares, meanwhile,has begun. Ordinary Share Portfolio The Ordinary shares saw a revenue return of 3.2 pence (2005: 3.1 pence) and atotal return of 1.4 pence (2005: 18.5 pence). After payment of 8 pence pershare in dividends during the period, in line with your Company's distributionpolicy, net asset value per share fell from 120.6 pence at the previous year endto 114.4 pence. Some £932,000 was invested in qualifying existing and new investee companieswithin the Ordinary share portfolio. Small provisions needed to be made againsttwo investments, Peakdale Molecular, and Evolutions Television (which wasreduced to cost). In both cases, previous strong growth slowed in the earlymonths of the year. Other businesses, however, continued to perform strongly,in particular Xceleron (the drugs testing business), and Pilat Media Global (ITsystems for TV broadcasters). Profits of £143,000 were realised on our smallportfolio of AIM stocks, while the international quoted technology stocksrealised profits of £154,000. Subsequent to the year end, and not included in these results, a recommendedoffer was received for Careforce, resulting in an uplift of £300,000 andrealising capital profits of £606,000. Also, since the year end, the Ordinaryshares have invested a further £730,000 in a mixture of sectors. C Share Portfolio £2.9 million was invested in new qualifying investee companies during the year.The key investments, which were shared with the Ordinary share portfolio,include RFI Global Services, which provides testing facilities to mobile phonemanufacturers worldwide; Blackbay, which provides systems for field force andsupply chain logistics; Dexela, which has designed a potentially revolutionaryform of imaging system for the screening of breast cancer; Helveta, whichprovides tracking systems to encourage the sustainable management of tropicalhardwood resources; and Xceleron, where second round expansion finance wasprovided for this world-leading provider of drug development services. Assetbased investments included the provision of expansion finance to two of ourexisting pub companies. Since the year end, the C shares have invested a further £4,625,000 in a mixtureof sectors. International quoted technology stocks As we explain in more detail in the Directors' Report of the Report andFinancial Statement, your board is proposing that the current investment policy,whereby 15 per cent of the investment portfolio is invested in quotedinternational technology stocks and 25 per cent in unquoted technology-relatedcompanies, be replaced by a new policy. Under this new policy, up to 40 percent of the VCT's portfolio will be invested solely in unquoted UKtechnology-related companies, with no longer any international quoted element.This proposal follows a review of public equity technology investment and achange of emphasis within Close Investments, the Company's Technology Adviser,away from offering direct technology investment capabilities. This in turn ledyour Board to undertake a review of the Company's ongoing investment policy. Inview of the strong performance of your Company's unquoted technologyinvestments, and the breadth that has now been built up in the unquotedinvestment portfolio as a whole, it is your Board's view that the proposedchange in policy would be in the interests of Shareholders. Resolution 5 to beproposed at the forthcoming Annual General Meeting will allow shareholders tovote on the issue. Results, dividends and prospects At 31 December 2006, the net asset value of the Company's Ordinary shares was£15.5m (31 December 2005: £16.7m) equivalent to 114.4p per share (31 December2005: 120.6p per share). Net revenue return after taxation was £439,000 (2005:£425,000). The first dividend for the new financial year will be 4p perOrdinary share of which 1.5p will be paid out of revenue profits and 2.5p paidout of capital profits. As at 31 December 2006, the net asset value of the C shares was £33.7mequivalent to 94.9p per share. Net income after taxation was £663,000 enablingthe Company to declare a first dividend for the new financial year of 1 penceper share. Both dividends will be paid on 25 May 2007 to shareholders on the register at 4May 2007. Overall, we are encouraged by the progress in both portfolios and the prospectsgoing forward. Dr Neil CrossChairman20 April 2007 Income Statement for the year ended 31 December 2006 Ordinary Shares C Shares Total Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 (Losses)/gains on (3) (3) 202 202 199 199investments - - - Investment income 832 - 832 1,322 - 1,322 2,154 - 2,154 Investment management fees (117) (351) (468) (246) (738) (984) (363) (1,089) (1,452) Other expenses (57) - (57) (129) - (129) (186) - (186) Return on ordinary 658 (354) 304 947 (536) 411 1,605 (890) 715activities before tax Tax (charge)/credit onordinaryactivities (219) 114 (105) (284) 221 (63) (503) 335 (168) Return attributable to 439 (240) 199 663 (315) 348 1,102 (555) 547shareholders Basic and diluted return 3.2 (1.8) 1.4 2.3 (1.1) 1.2 5.5 (2.9) 2.6per share (pence) (excluding Treasuryshares) The total column of this Income Statement represents the profit and loss accountof the Company. The supplementary revenue and capital columns have been preparedin accordance with the Association of Investment Trust Companies' Statement ofRecommended Practice. All of the Company's activities derive from continuing operations. There were no recognised gains or losses other than the results for the year asdisclosed above. Accordingly a statement of total recognised gains and losses isnot required. Income Statement for the year ended 31 December 2005 Ordinary Shares C Shares Total Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Gains on investments - 2,412 2,412 - - - - 2,412 2,412 Investment income 812 - 812 - - - 812 - 812 Investment management fees (126) (381) (507) - - - (126) (381) (507) Other expenses - - (128) - (128) - (128) - (128) Return on ordinary 558 2,031 2,589 - - - 558 2,031 2,589activities before tax Tax (charge)/credit on (133) 105 (28) - - - (133) 105 (28)ordinaryactivities Return attributable to 425 2,136 2,561 - - - 2,136 2,561shareholders 425 Basic and diluted return 3.1 15.4 18.5 - - - 3.1 15.4 18.5per share (pence) The total column of this Income Statement represents the profit and loss accountof the Company. The supplementary revenue and capital columns have been preparedin accordance with the Association of Investment Trust Companies' Statement ofRecommended Practice. All of the Company's activities derive from continuing operations. There were no recognised gains or losses other than the results for the year asdisclosed above. Accordingly a statement of total recognised gains and losses isnot required. Balance Sheet as at 31December 2006 Ordinary Shares C Shares Total 31 December 31 December 31 December 2006 2006 2006 £'000 £'000 £'000 Fixed asset investmentsQualifying 10,965 3,116 14,081Non-qualifying 2,332 28,430 30,762Total fixed asset investments 13,297 31,546 44,843 Current assetsDebtors 23 332 355Cash at bank 2,486 2,145 4,631 2,509 2,477 4,986 Creditors: amounts falling due within one (321) (344) (665)year Net current assets 2,188 2,133 4,321 Total assets less current liabilities 15,485 33,679 49,164 Capital and reservesCalled up share capital 6,795 17,740 24,535Share premium 165 - 165Special reserve 5,554 15,768 21,322Capital redemption reserve 400 - 400Own Treasury shares reserve (56) - (56)Realised capital reserve 3,432 (505) 2,927Unrealised capital reserve (1,276) 190 (1,086)Revenue reserve 471 486 957 Total equity shareholders' funds 15,485 33,679 49,164 Net asset value per share (pence) (excluding 114.4 94.9Treasury shares) The financial statements were approved by the Board of Directors on 20 April2007. Balance Sheet as at 31 December 2005 Ordinary Shares C Shares Total 31 December 31 December 31 December 2005 2005 2005 £'000 £'000 £'000 Fixed asset investmentsQualifying 10,438 - 10,438Non-qualifying 1,847 - 1,847 Total fixed asset investments 12,285 - 12,285 Current assetsDebtors 45 - 45Cash at bank 4,754 - 4,754 4,799 - 4,799 Creditors: amounts falling due within one (420) - (420)year Net current assets 4,379 - 4,379 Total assets less current liabilities 16,664 - 16,664 Capital and reservesCalled up share capital 6,908 - 6,908Share premium 165 - 165Special reserve 5,785 - 5,785Capital redemption reserve 287 - 287Own Treasury shares reserve - - -Realised capital reserve 4,311 - 4,311Unrealised capital reserve (1,027) - (1,027)Revenue reserve 235 - 235 Total equity shareholders' funds 16,664 - 16,664 Net asset value per share (pence) 120.6 Reconciliation of movement in shareholders' funds for the year ended 31 December 2006 Ordinary shares Own Called up Capital Treasury Realised Unrealised share Share Special redemption shares capital capital Revenue capital premium reserve reserve reserve reserve reserve reserve Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 As at 1 January 2005 6,958 165 5,894 237 - 2,722 (748) 226 15,454 Net realised gains on - - - - - 2,694 - - 2,694investments in the year Capitalised investment - - - - - (381) - - (381)management and performance fees Tax relief on costs - - - - - 105 - - 105charged to capital Share redemptions (50) - (109) 50 - - - - (109) Movement in unrealised - - - - - - (279) - (279)appreciation Revenue return - - - - - - - 425 425attributable to shareholders Dividends paid - - - - - (829) - (416) (1,245) As at 31 December 2005 6,908 165 5,785 287 - 4,311 (1,027) 235 16,664 Net realised gains on - - - - - 246 - - 246investments in the year Capitalised investment - - - - - (351) - - (351)management and performance fees Tax relief on costs - - - - - 114 - - 114charged to capital Share redemptions (113) - (231) 113 - - - - (231) Purchase of own shares - - - - (56) - - - (56)for Treasury Movement in unrealised - - - - - - (249) - (249)appreciation Revenue return - - - - - - - 439 439attributable to shareholders Dividends - - - - - (888) - (203) (1,091) As at 31 December 2006 6,795 165 5,554 400 (56) 3,432 (1,276) 471 15,485 Reconciliation of movement in shareholders' funds for the year ended 31 December 2006 C shares Called up Realised Unrealised share Share Special capital capital Revenue capital premium reserve reserve reserve reserve Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 As at 31 December 2005 - - - - - - - Net realised gains on - - - 12 - - 12 investments in the year Capitalised investment - - - (738) - - (738)management and performance fees Tax relief on costs charged - - - 221 - - 221 to capital Issue of share capital 17,740 17,740 - - - - 35,480 Issue costs - (1,952) - - - - (1,952) Cancellation of share premium - (15,788) 15,788 - - - -account Cost of cancellation of share - - (20) - - - (20)premium Movement in unrealised - - - - 190 - 190appreciation Revenue return attributable - - - - - 663 663 to shareholders Dividends - - - - - (177) (177) As at 31 December 2006 17,740 - 15,768 (505) 190 486 33,679 Cash flow Statement for the year ended 31 December 2006 Ordinary Shares C Shares Total Year ended Year ended Year ended 31 December 2006 31 December 2006 31 December 2006 £'000 £'000 £'000 Operating activitiesInvestment income received 621 750 1,371Deposit income received 102 314 416Investment management fees paid (534) (735) (1,269)Other cash payments (259) (109) (368) Net cash (outflow)/ inflow from operating activities (70) 220 150 Taxation (46) - (46)UK corporation tax Capital expenditure and financial investments (2,073) (31,594) (33,667)Purchase of investments Disposals of investments 1,185 297 1,482 Net cash outflow from investing activities (888) (31,297) (32,185) Equity dividends paidDividends paid on ordinary shares (1,091) (177) (1,268) Net cash outflow before financing (2,095) (31,254) (33,349) FinancingIssue of share capital (net of costs) - 33,513 33,513Purchase of own shares (287) - (287)Intercompany account movement 114 (114) - Net cash (outflow)/inflow from financing (173) 33,399 33,226 Cash (outflow)/inflow in the year (2,268) 2,145 (123) Cash flow Statement for the year ended 31 December 2005 Ordinary Shares C Shares Total Year ended Year ended Year ended 31 December 2005 31 December 2005 31 December 2005 £'000 £'000 £'000 Operating activitiesInvestment income received 614 - 614Deposit income received 112 - 112Other cash received 174 174Investment management fees paid (389) - (389)Other cash payments (136) - (136)Net cash inflow from operating activities 375 - 375 TaxationUK corporation tax paid (25) - (25) Capital expenditure and financial investmentsPurchase of investments (4,599) - (4,599) Disposals of investments 5,537 - 5,537 Net cash inflow from investing activities 938 - 938 Equity dividends paidDividends paid on ordinary shares (1,244) - (1,244) Net cash inflow before financing 44 - 44 FinancingIssue of share capital (net of costs) - - -Purchase of own shares (109) - (109)Intercompany account movement - - - Net cash outflow from financing (109) - (109) Cash outflow in the year (65) - (65) Notes 1) Close Technology & General VCT PLC is managed by Close Ventures Limited. 2) Close Ventures Limited is authorised and regulated by the FinancialServices Authority. 3) The financial information set out in this announcement does notconstitute the Company's statutory accounts for the year ended 31 December 2006or 2005. 4) The financial information for the year ended 31 December 2005 is derivedfrom the statutory accounts for that year delivered to the Registrar ofCompanies. The auditors reported on those accounts; their report was unqualifiedand did not contain any emphasis of matter or a statement under s237(2) or (3)Companies Act 1985. 5) The financial information for the year ended 31 December 2006 has beenderived from the statutory accounts for the year which will be delivered to theRegistrar of Companies shortly. The auditors reported on those accounts; theirreport was unqualified and did not contain statements under s237(2) or (3)Companies Act 1985. 6) The financial information has been prepared on the basis of theaccounting policies set out in the Company's financial statements for the yearended 31 December 2005. 7) There were no changes in equity other than those arising from capitaltransactions with owners and distributions to owners. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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