1st Nov 2006 16:02
Close Brothers Aim Vct PLC01 November 2006 CLOSE BROTHERS AIM VCT PLC INTERIM RESULTS 1 November 2006 Close Brothers AIM VCT PLC ("the Company"), which invests in companies listed onthe Alternative Investment Market, across a variety of sectors, today announcesinterim results for the six months ended 31 August 2006. Chairman's statement The six months to 31st August 2006 was a volatile and challenging time forstockmarkets in general, and for small companies and AIM in particular. It isdisappointing to have to report that net asset values for both the Ordinary andthe D shares have fallen in this period by 7.1% and 2.5% respectively (afteradding back the second interim dividend) thus undoing the gains of the secondhalf of 2005. The AIM index fell by over 11% in the six months. An aversion to risk has also had an impact on the flow of qualifying new issuesonto AIM. Consequently, the rate of investment slowed in the second half of theperiod, with the result that the Ordinary portfolio was 73% invested if top-upmonies are included and the D portfolio was 47% invested at the end of August.There are some signs that the deal flow is belatedly picking up in a more stablestockmarket environment but the autumn remains quieter than your managerexpected. Dividends Ordinary sharesThe Board has declared a total interim dividend of 2.5p per Ordinary share (20051.7p) which is made up of a revenue dividend of 0.4p and a dividend paid out ofrealised capital profits of 2.1p. D sharesThe Board has declared a total interim dividend of 1.3p per D share (2005 2.0p)which is made up of a revenue dividend of 1.0p and a dividend paid out ofrealised capital profits of 0.3p. The dividends paid out of realised capital profits are subject to HM Revenue &Customs approval. Market Background As reported in the last Report and Accounts to the end of February 2006, themarket started 2006 in exuberant form, with the AIM Index in particular racingto catch up the other indices that it had underperformed in 2005. This continuedinto April, with the AIM Index showing gains from 1 January of over 20% at itspeak at the beginning of May. Although many of the gains were in resource stockswhich do not qualify for VCT investment, there was also a positive attitude torisk amongst investors at this time which was helpful to smaller company shareprices in general. It also helped a record number of new issues to come to AIMin the first six months of the year, although many of these were at highvaluations and non-VCT qualifying. In this period, both portfolios saw increasesin their Net Asset Values. Unfortunately, all of this ended abruptly in May, when markets began to focus onthe reality of high oil prices, the very real probability of higher interestrates and waning consumer confidence. The market suffered a sharp sell off, andsmaller AIM companies were particularly affected as fund managers sought safetyin larger and more liquid stocks. AIM fell more sharply than the rest of the UKindices as investors who had been increasing their exposure to this market overthe previous twelve months, began to re-evaluate their strategy in the light ofpoor performance from recent flotations. The stocks which fell hardest werethose which had risen the furthest previously, and as we have already said,these were non-VCT qualifying. However, sentiment has affected the ratings ofall smaller AIM companies as the appetite for risk and growth has diminished.Volatility also increased with the result that shares reacted sharply to anypiece of bad news. After a very turbulent summer there are some signs that stability is returningto the stockmarket, although price increases have been mostly at the larger endof the market. AIM has continued to perform very poorly, due to a combination ofthe size of the average company on AIM, its relatively higher rating (althoughthis also reflects its higher than average growth rate) and specific problems inthe gaming industry, to which AIM is very exposed. The latter is irrelevant foryour Company and the NAVs have continued to outperform the index. Performance Ordinary share Portfolio The fall in the Ordinary share NAV was considerably less than that of the AIMIndex which is still more than 30% made up from resource stocks. Nevertheless,this was a disappointing result. It was not helped by the market conditionsdescribed above, which meant that some of the larger holdings such as Mears andImprint saw their share prices fall despite producing excellent figures andexceeding market expectations for growth. In more stable market conditions, thiskind of share should be re-rated once more. There were three stocks which suffered from specific problems in the periodwhich between them accounted for most of the fall in the NAV. The most seriousfall was in the price of Interlink Foods, the portfolio's biggest holding at thetime. It announced that its April trading had been affected by discounting fromMr Kipling, its larger competitor and consequently that it would miss marketforecasts. The shares fell by 40%, despite the expectation that the Group wouldstill report growth of 10% for the year. The company remains profitable, growingand dividend paying and has recently indicated that it has been in discussionswith a Venture Capital backed bidder. At the end of the period the value of thisinvestment was more than twice its cost. The other two shares showing a markeddecline in value were Pipex, the broadband operator hit by increased competitionin its market and Win, the deliverer of content over the mobile network whichlost a very profitable customer. Both of these operate in markets which areexpected to consolidate over the next year. During the period, MacLellan and Systems Union were both taken over, and profitswere also taken in a number of other holdings. New investments totalling£843,000 were made, not enough to cover the realisations from sales and takeoverbids. The HM Revenues & Customs Cover therefore remained fairly stable, endingthe period at 73% if top-up monies are included, still below the target of 80%. D share Portfolio This portfolio performed better than both the AIM and the Small Cap Indices,helped by its high cash weightings. It was still disappointing to see the NAVper share go down, although much of this was due to the market conditionsdescribed above rather than any bad news from individual holdings in theportfolio, most of which have met or exceeded market expectations. The onenotable exception was Win which lost a significant customer, and as a resultthis share price has been left very low. During the period, five new investments were made at a total cost of £1.2m.However, this was offset by the takeover of Legend Communications and profittaking in several other holdings totalling £884,000. At the end of the period,the portfolio was 47% invested for HM Revenue & Customs purposes, with eighteenmonths left to reach 70% under VCT regulations. Outlook The main challenge for the manager is finding enough new attractive VCTqualifying investments at the right price. Fortunately, your Company can investin companies with up to £15 million of gross assets, rather than the new lowerlimit which was enshrined in the Finance Act this summer. It is the manager'sview that this is not fully appreciated by market practitioners. The lack ofdemand for investment in AIM has resulted in some companies abandoning theflotation process and reducing prices to more realistic levels. The lattershould be good news for the portfolios, if sufficient companies find that it isworthwhile to float. Stability in the market over the next three months will beimportant for this. It is encouraging that many of the companies in the portfolios have announcedgood results, and several have paid maiden dividends, for example MattioliWoods, BBI and Cello. The wider stockmarket worries about inflation and slowinggrowth rates do not seem to have had a great impact on the performance ofindividual companies. If the stockmarket continues to recover, there should beroom for growth stocks to be re-rated upwards, and this would have a positiveimpact on the performance of the portfolios. Michael ReeveChairman31 October 2006 Income Statement for the six months to 31 August 2006 Ordinary shares Unaudited Unaudited Audited Six months to Six months to Year to 31 August 2006 31 August 2005 28 February 2006 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000(Losses)/gains - (1,764) (1,764) - (254) (254) - 2,331 2,331oninvestments Dividendsand 208 - 208 229 - 229 406 - 406interest Investmentmanagement (75) (225) (300) (79) (236) (315) (156) (469) (625)fee Performancefee - - - - - - - (9) (9) Other (62) - (62) (83) - (83) (142) - (142)expenses ------- ------ ------ ------- ------ ------ ------- ------ ------ Return onordinaryactivitiesbefore tax 71 (1,989) (1,918) 67 (490) (423) 108 1,853 1,961 Tax onordinaryactivities 2 - 2 2 18 20 1 13 14 ------- ------ ------ ------- ------ ------ ------- ------ ------Returnattributabletoshareholders 73 (1,989) (1,916) 69 (472) (403) 109 1,866 1,975 ------- ------ ------ ------- ------ ------ ------- ------ ------Basic anddilutedreturnper share 0.2 (6.4) (6.2) 0.2 (1.5) (1.3) 0.3 5.8 6.1(pence) ------- ------ ------ ------- ------ ------ ------- ------ ------ All of the Company's activities derive from continuing operations.No operations were acquired or discontinued during the period.The Company has no recognised gains or losses other than those disclosed above,accordingly a statement of total recognised gains and losses is not required.The total column of the Income Statement represents the profit and loss of theOrdinary shares. The supplementary revenue return and capital return columnshave been prepared in accordance with the Association of Investment Companies'Statement of Recommended Practice. Income Statement for the six months to 31 August 2006 D shares Unaudited Unaudited Audited Six months to Six months to Year to 31 August 2006 31 August 2005 28 February 2006 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000(Losses)/gains - (447) (447) - 268 268 - 1,544 1,544oninvestments Dividends 238 - 238 262 - 262 556 - 556and interestInvestmentmanagement (56) (168) (224) (35) (104) (139) (90) (271) (361)fee Performancefee - - - - - - - (50) (50) Other (44) - (44) (37) - (37) (80) - (80)expenses ------- ------ ------ ------- ------ ------ ------- ------ ------ Return onordinaryactivitiesbefore tax 138 (615) (477) 190 164 354 386 1,223 1,609 Tax onordinaryactivities (30) 28 (2) (46) 26 (20) (93) 79 (14) ------- ------ ------ ------- ------ ------ ------- ------ ------Returnattributabletoshareholders 108 (587) (479) 144 190 334 293 1,302 1,595 ------- ------ ------ ------- ------ ------ ------- ------ ------Basic anddilutedreturnper share 0.7 (3.7) (3.0) 1.0 1.3 2.3 1.9 8.6 10.5(pence) ------- ------ ------ ------- ------ ------ ------- ------ ------ All of the Company's activities derive from continuing operations.No operations were acquired or discontinued during the period.The Company has no recognised gains or losses other than those disclosed above,accordingly a statement of total recognised gains and losses is not required.The total column of the Income Statement represents the profit and loss of the Dshares. The supplementary revenue return and capital return columns have beenprepared in accordance with the Association of Investment Companies' Statementof Recommended Practice. Income Statement for the six months to 31 August 2006 Total Unaudited Unaudited Audited Six months to Six months to Year to 31 August 2006 31 August 2005 28 February 2006 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000(Losses)/gains - (2,211) (2,211) - 14 14 - 3,875 3,875oninvestments Dividendsand 446 - 446 491 - 491 962 - 962interest Investmentmanagement (131) (393) (524) (114) (340) (454) (246) (740) (986)fee Performancefee - - - - - - - (59) (59) Other (106) - (106) (120) - (120) (222) - (222)expenses ------- ------ ------ ------- ------ ------ ------- ------ ------ Return onordinaryactivitiesbefore tax 209 (2,604) (2,395) 257 (326) (69) 494 3,076 3,570 Tax onordinaryactivities (28) 28 - (44) 44 - (92) 92 - ------- ------ ------ ------- ------ ------ ------- ------ ------Returnattributableto equityshareholders 181 (2,576) (2,395) 213 (282) (69) 402 3,168 3,570 ------- ------ ------ ------- ------ ------ ------- ------ ------ All of the Company's activities derive from continuing operations.No operations were acquired or discontinued during the period.The Company has no recognised gains or losses other than those disclosed above,accordingly a statement of total recognised gains and losses is not required.The total column of the Income Statement represents the profit and loss of theOrdinary shares. The supplementary revenue return and capital return columnshave been prepared in accordance with the Association of Investment Companies'Statement of Recommended Practice. Balance Sheet as at 31 August 2006 Ordinary shares Unaudited Unaudited Audited 31 August 31 August 28 February 2006 2005 2006 £'000 £'000 £'000Fixed asset investments- held at fair value through profit orlossQualifying investments 19,543 19,831 22,035Non-qualifying investments 4,112 3,638 3,925 ----------- ----------- ----------- 23,655 23,469 25,960Current assetsDebtors 117 158 1,100Cash at bank 450 2,164 724 ----------- ----------- ----------- 567 2,322 1,824Creditors: Amounts falling due within one year (69) (45) (842) Net current assets 498 2,277 1,000 ----------- ----------- -----------Net assets 24,153 25,746 26,960 ----------- ----------- -----------Capital and reservesCalled up share capital 15,310 15,981 15,561Share premium 1,450 1,440 1,450Special reserve 8,182 9,180 8,547Capital redemption reserve 3,021 2,350 2,770Realised capital reserve (4,124) (2,218) (3,231)Unrealised capital reserve 184 (1,067) 1,806Revenue reserve 130 80 57 ----------- ----------- -----------Equity shareholders' funds 24,153 25,746 26,960 ----------- ----------- -----------Net asset value per share (pence) 78.88 80.55 86.62 Balance Sheet as at 31 August 2006 D shares Unaudited Unaudited Audited 31 August 31 August 28 February 2006 2005 2006 £'000 £'000 £'000Fixed asset investments- held at fair value through profit orlossQualifying investments 8,774 5,198 8,857Non-qualifying investments 7,009 12,005 7,009 ----------- ----------- ----------- 15,783 17,203 15,866 Current assetsDebtors 78 147 5,071Cash at bank 2,755 1,518 146 ----------- ----------- ----------- 2,833 1,665 5,217 Creditors: Amounts falling due within one year (44) (381) (1,678)Net current assets 2,789 1,284 3,539 ----------- ----------- -----------Net assets 18,572 18,487 19,405 ----------- ----------- ----------- Capital and reservesCalled up share capital 8,025 8,044 8,040Share premium 39 38 39Special reserve 9,341 9,395 9,373Capital redemption reserve 57 38 42Realised capital reserve (621) 230 (277)Unrealised capital reserve 1,561 587 1,965Revenue reserve 170 155 223 ----------- ----------- -----------Equity shareholders' funds 18,572 18,487 19,405 ----------- ----------- -----------Net asset value per share (pence) 115.72 114.92 120.68 Balance Sheet as at 31 August 2006 Total Unaudited Unaudited Audited 31 August 31 August 28 February 2006 2005 2006 £'000 £'000 £'000Fixed asset investments- held at fair value through profit orlossQualifying investments 28,317 25,029 30,892Non-qualifying investments 11,121 15,643 10,934 ----------- ----------- ----------- 39,438 40,672 41,826Current assetsDebtors 195 305 6,171Cash at bank 3,205 3,682 870 ----------- ----------- ----------- 3,400 3,987 7,041 Creditors: Amounts falling due within one year (113) (426) (2,502)Net current assets 3,287 3,561 4,539 ----------- ----------- -----------Net assets 42,725 44,233 46,365 ----------- ----------- -----------Capital and reservesCalled up share capital 23,335 24,025 23,601Share premium 1,489 1,478 1,489Special reserve 17,523 18,575 17,920Capital redemption reserve 3,078 2,388 2,812Realised capital reserve (4,745) (1,988) (3,508)Unrealised capital reserve 1,745 (480) 3,771Revenue reserve 300 235 280 ----------- ----------- -----------Equity shareholders' funds 42,725 44,233 46,365 ----------- ----------- ----------- Reconciliation of Movements in Shareholders' Funds for the six months to 31 August 2006 Ordinary shares Share Share Special Capital Realised Unrealised Revenue Total capital premium reserve redemption capital capital reserve reserve reserve reserve £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Six months ended 31 August 2006 As at 28February 15,561 1,450 8,547 2,770 (3,231) 1,806 57 26,9602006 Net returnaftertaxation - - - - (367) (1,622) 73 (1,916)for theperiod Dividends - - - - (526) - - (526) Sharespurchasedfor (251) - (365) 251 - - - (365)cancellation ------ ------- ------- -------- ------- -------- ------ ------As at 31August 2006 15,310 1,450 8,182 3,021 (4,124) 184 130 24,153 ------ ------ ------ -------- ------- -------- ------- ------ Six monthsended 31August2005 As at 28February 16,330 1,449 9,691 2,001 (1,220) (1,593) 158 26,8162005 Net returnaftertaxation - - - - (998) 526 69 (403)for theperiod Dividends - - - - - - (147) (147) Issue ofshares netof - (9) 2 - - - - (7)expenses Sharespurchasedfor cancellation (349) - (513) 349 - - - (513) ------ ------ ------- -------- ------- -------- ------- ------As at 31August 2005 15,981 1,440 9,180 2,350 (2,218) 1,067) 80 25,746 ------ ------ ------- -------- ------- -------- ------- ------ Year ended28 February2006 As at 28February 2005 16,330 1,449 9,691 2,001 (1,220) (1,593) 158 26,816 Net returnaftertaxation for the year - - - - (1,533) 3,399 109 1,975 Dividends - - - - (478) - (210) (688) Issue ofshares netof expenses - 1 2 - - - - 3 Sharespurchasedfor cancellation (769) - (1,146) 769 - - - (1,146) ------ ------- ------- -------- ------- -------- ------- ------As at 28February 2006 15,561 1,450 8,547 2,770 (3,231) 1,806 57 26,960 ------ ------- ------- -------- ------- -------- ------- ------ Reconciliation of Movements in Shareholders' Funds for the six months to 31 August 2006 D shares Share Share Special Capital Realised Unrealised Revenue Total capital premium reserve redemption capital capital reserve reserve reserve reserve £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Six monthsended 31August2006 As at 28February 2006 8,040 39 9,373 42 (277) 1,965 223 19,405 Net returnaftertaxation for theperiod - - - - (183) (404) 108 (479) Dividends - - - - (161) - (161) (322) Sharespurchasedfor cancellation (15) - (32) 15 - - - (32) ------ ------- ------- ------- ------- -------- ------- ------ As at 31August 2006 8,025 39 9,341 57 (621) 1,561 170 18,572 ------ ------- ------- -------- ------- -------- ------- ------ Six monthsended 31August2005 As at 28February 2005 2,324 2,112 (66) 38 130 497 19 5,054 Net returnaftertaxation for theperiod - - - - 100 90 144 334 Dividends - - - - - - (8) (8) Issue ofshares netof 5,720 7,387 - - - - - 13,107expenses Transfer ofreserves - (9,461) 9,461 - - - - - ------ ------ ------- -------- ------- -------- ------- ------As at 31August 2005 8,044 38 9,395 38 230 587 155 18,487 ------ --- ------- -------- ------- -------- ------- ------ Year ended28 February2006 As at 28February 2005 2,324 2,112 (66) 38 130 497 19 5,054 Net returnaftertaxation for the year - - - - (166) 1,468 293 1,595 Dividends - - - - (241) - (89) (330) Issue ofshares netof expenses 5,720 7,388 - - - - - 13,108 Sharespurchasedfor cancellation (4) - (9) 4 - - - (9) Transfer ofreserves - (9,461) 9,461 - - - - - Costs ofcancellingshare premium - - (13) - - - - (13) ------ ------- ------- ------- ------- ------- ------- ------As at 28February 2006 8,040 39 9,373 42 (277) 1,965 223 19,405 ------ ------- ------- -------- ------- -------- ------- ------ Reconciliation of Movements in Shareholders' Funds for the six months to 31 August 2006 Total Share Share Special Capital Realised Unrealised Revenue Total capital premium reserve redemption capital capital reserve reserve reserve reserve £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Six monthsended 31August2006 As at 28February 23,601 1,489 17,920 2,812 (3,508) 3,771 280 46,3652006 Net returnaftertaxation - - - - (550) (2,026) 181 (2,395)for theperiod Dividends - - - - (687) - (161) (848) Sharespurchasedfor (266) - (397) 266 - - - (397)cancellation ------ ------ ------- -------- ------- -------- ------- ------ As at 31August 2006 23,335 1,489 17,523 3,078 (4,745) 1,745 300 42,725 ------ ------- ------- -------- ------- -------- ------- ------ Six months ended 31 August 2005 As at 28February 18,654 3,561 9,625 2,039 (1,090) (1,096) 177 31,8702005 Net returnaftertaxation - - - - (898) 616 213 (69)for theperiod Dividends - - - - - - (155) (155) Issue ofshares netof 5,720 7,378 2 - - - - 13,100expenses Sharespurchasedfor (349) - (513) 349 - - - (513)cancellation Transfer ofreserves - (9,461) 9,461 - - - - - ------ ------- ------- -------- ------- -------- ------- ------As at 31August 2005 24,025 1,478 18,575 2,388 (1,988) (480) 235 44,233 ------ ------- ------- -------- ------- -------- ------- ------ Year ended 28 February 2006 As at 28February 18,654 3,561 9,625 2,039 (1,090) (1,096) 177 31,8702005 Net returnaftertaxation - - - - (1,699) 4,867 402 3,570for the year Dividends - - - - (719) - (299) (1,018) Issue ofshares netof 5,720 7,389 2 - - - - 13,111expenses Sharespurchasedfor (773) - (1,155) 773 - - - (1,155)cancellation Transfer ofreserves - (9,461) 9,461 - - - - - Costs ofcancellingshare - - (13) - - - - (13)premium ------ ------- ------- -------- ------- -------- ------ ------ As at 28February 23,601 1,489 17,920 2,812 (3,508) 3,771 280 46,3652006 ------ ------- ------- -------- ------- -------- ------- ------ Cash Flow Statement for the six months to 31 August 2006 Ordinary shares Unaudited Unaudited Audited Six months to Six months to Year to 31 August 31 August 28 February 2006 2005 2006 £'000 £'000 £'000Operating activitiesDividend income received 61 65 109Investment income received 102 165 263Deposit interest received 30 18 74Investment management fees paid (317) (321) (635)Other cash payments (41) (87) (117) ----------- ----------- -----------Net cash outflow from operatingactivities (165) (160) (306) ----------- ----------- -----------Servicing of financeInterest paid - (14) (14) ----------- ----------- -----------Capital expenditure andfinancial investmentPurchase of investments (1,391) (2,742) (6,457)Disposal of investments 1,484 5,612 9,899 ----------- ----------- -----------Net cash inflow from investingactivities 93 2,870 3,442 ----------- ----------- -----------Equity dividends paidRevenue dividends paid - (147) (210)Capital dividends paid (526) - (478) ----------- ----------- -----------Total equity dividends paid (526) (147) (688) ----------- ----------- -----------Net cash (outflow)/inflow beforefinancing (598) 2,549 2,434 ----------- ----------- -----------FinancingIntercompany account movement 986 - (997)Issue of equity net of expenses - (90) (88)Cancellation of shares (662) (515) (845) ----------- ----------- -----------Net cash inflow/(outflow) fromfinancing 324 (605) (1,930) ----------- ----------- -----------(Decrease)/increase in cash (274) 1,944 504 ----------- ----------- ----------- Cash Flow Statement for the six months to 31 August 2006 D shares Unaudited Unaudited Unaudited Six months to Six months to Year to 31 August 31 August 28 February 2006 2005 2006 £'000 £'000 £'000Operating activitiesDividend income received 13 5 8Investment income received 180 133 436Deposit interest received 37 63 86Investment management fees paid (278) (144) (370)Other cash payments (52) (14) (62) ----------- ----------- -----------Net cash (outflow)/inflow fromoperating activities (100) 43 98 ----------- ----------- -----------Capital expenditure and financialinvestmentPurchase of investments (1,841) (12,588) (15,102)Disposal of investments 5,890 560 1,316 ----------- ----------- -----------Net cash inflow/(outflow) frominvesting activities 4,049 (12,028) (13,786) ----------- ----------- -----------Equity dividends paidRevenue dividends paid (161) (8) (89)Capital dividends paid (161) - (241) ----------- ----------- -----------Total equity dividends paid (322) (8) (330) ----------- ----------- -----------Net cash inflow/(outflow) beforefinancing 3,627 (11,993) (14,018)FinancingIntercompany account movement (986) - 997Issue of equity net of expenses - 13,392 13,070Cancellation of shares (32) - (22) ----------- ----------- -----------Net cash (outflow)/inflow fromfinancing (1,018) 13,392 14,045 ----------- ----------- -----------Increase in cash 2,609 1,399 27 ----------- ----------- ----------- Cash Flow Statement for the six months to 31 August 2006 Total Unaudited Unaudited Audited Six months to Six months to Year to 31 August 31 August 28 February 2006 2005 2006 £'000 £'000 £'000Operating activitiesDividend income received 74 70 117Investment income received 282 298 699Deposit interest received 67 81 160Investment management fees paid (595) (465) (1,005)Other cash payments (93) (101) (179) ----------- ----------- -----------Net cash outflow from operatingactivities (265) (117) (208) ----------- ----------- -----------Servicing of financeInterest paid - (14) (14) ----------- ----------- -----------Capital expenditure and financialinvestmentPurchase of investments (3,232) (15,330) (21,559)Disposal of investments 7,374 6,172 11,215 ----------- ----------- -----------Net cash inflow/(outflow) frominvesting activities 4,142 (9,158) (10,344) ----------- ----------- -----------Equity dividends paidRevenue dividends paid (161) (155) (299)Capital dividends paid (687) - (719) ----------- ----------- -----------Total equity dividends paid (848) (155) (1,018) ----------- ----------- -----------Net cash inflow/(outflow) beforefinancing 3,029 (9,444) (11,584)FinancingIssue of equity net of expenses - 13,302 12,982Cancellation of shares (694) (515) (867) ----------- ----------- -----------Net cash (outflow)/inflow fromfinancing (694) 12,787 12,115 ----------- ----------- -----------Increase in cash 2,335 3,343 531 ----------- ----------- ----------- Notes: 1. Details about the ManagerClose Brothers AIM VCT PLC is managed by Close Investments Limited. CloseInvestments Limited is authorised and regulated by the Financial ServicesAuthority and is a subsidiary of Close Brothers Group plc. 2. Statutory accountsThe financial information set out in this announcement does not constitute theCompany's statutory accounts for the six months ended 31 August 2006 or 31August 2005. The figures and financial information for the year ended 28February 2006 are derived from the statutory accounts delivered to the Registrarof Companies. The auditors reported on those accounts; their report wasunqualified and did not contain a statement under either section 237(2) or 237(3) of the Companies Act 1985. 3. Accounting PoliciesThese accounts have been prepared on the basis of the accounting policies set out in the latest annual report for the year ended 28 February 2006. 4. Basic and diluted return per shareReturn per share has been calculated on 30,927,771 (2005: 32,285,865) Ordinaryshares and 16,075,418 (2005: 14,276,246) D shares being the weighted averagenumber of shares in issue for the period.There are no convertible instruments, derivatives or contingent share agreementsin issue for Close Brothers AIM VCT PLC hence there are no dilution effects tothe return per share. The basic return per share is therefore the same as thediluted return per share. 5. Net assets per shareNet assets per share has been calculated on 30,619,265 (2005; 31,961,329)Ordinary shares and 16,048,898 (2005: 16,087,283) D shares being the number ofshares in issue at 31 August 2006. For further information, please contact: Andrew Buchanan / Kate Tidbury Despina ConstantinidesClose Investments Limited Polhill CommunicationsTel: 020 7426 4000 Tel: 020 7655 0500 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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