19th Sep 2007 16:33
Aberdeen Growth VCT1 PLC19 September 2007 Aberdeen Growth VCT I PLC Interim Announcement for the six months ended 31 July 2007 (unaudited) The Directors are pleased to announce the unaudited Interim Management Reportfor the six months ended 31 July 2007. Highlights • Increase of 4.1% in NAV total return over the six months ended 31 July2007. • Net Asset Value ("NAV") of 76.6p per share ("pps") at 31 July 2007;compared to 73.8pps at 31 January 2007. • Interim capital dividend of 2.0pps declared. • 18 new unlisted and AIM investments made during the period underreview. • Disposals generated net realised gain of £476,000. • Increase of 19.4% of the value of the AIM portfolio over the sixmonths ended 31 July 2007, compared to an increase of 10.8% in the FTSE AIMAll-Share Index. Performance The six month period ending 31 July 2007 has seen a further healthy increase inNAV total return, which rose over the period by 4.1% to reach 84.52pps. Since 31July 2004, the reporting date closest to the change of fund manager, the NAVtotal return per Ordinary Share has increased by 29.6% and the Company has paidan increased level of dividends, which the Board considers a highly commendableperformance. The NAV per Ordinary Share at 31 July 2007 was 76.6pps compared with 73.8pps asat 31 January 2007; a dividend of 0.5 pps was paid to Shareholders in June 2007.There is no venture capital trust index with which to compare the performance ofthe Company; however, the value of the AIM portfolio rose by 19.4% over the sixmonth period, which compares with a 10.8% increase in the AIM All-share Indexover the same period. Unlisted investments held by Aberdeen Growth VCT I are valued in accordance withthe International Private Equity and Venture Capital Valuation Guidelines.Investments which are traded on the Alternative Investment Market ("AIM") or arecognised stock exchange are valued at their bid price. Dividends The Company paid a dividend of 0.5pps to Ordinary Shareholders during thereporting period. In recognition of the realised capital gains made during thereporting period (equivalent to 2.1pps and which are shown in the table below),the Board now declares an interim capital dividend of 2.0pps to be paid on 16November 2007 to Shareholders on the register on 19 October 2007. The Boardindicated in the 2007 Annual Report that it expected the Company to distributeat least 4.0pps during the year ending 31 January 2008, equivalent to an annualyield of 6.7% to a higher-rate taxpayer on an effective initial investment of80pps. Co-investment Aberdeen Growth VCT I has co-invested with other funds managed by the AberdeenAsset Management Group in a number of investments and expects to continue to doso. The advantage of this arrangement is that by investing together, the fundsare able to underwrite a wider range and size of transaction than would be thecase on a stand-alone basis. In addition, the Manager's staff co-investmentscheme has continued to co-invest alongside the Company in each investment madeduring the period. Regulatory changes The overall VCT market declined by approximately two thirds in the year to April2007, which reflects the changes to the VCT regulations announced in the lasttwo Budgets. For funds raised after April 2006, new restrictions were introducedon the size of company in which VCTs can invest, where those investments are tobe treated as qualifying. The regulations introduced in the 2007 Budget areparticularly onerous in this regard, focussing on the maximum number ofemployees in addition to placing a limit on the amount which can be raised underventure capital schemes by the investee company. However, those new 2007regulations do not affect the money raised originally by the Company, which cancontinue to invest in the same scale and type of company which has helped driverecent performance improvement. Investment activity We are pleased to report an exceptionally strong period of new investmentactivity. During the six-months to 31 July 2007, seven new unlisted investmentswere made and eleven AIM investments. A total of £3.5 million was investedduring the six month period. At 31 July 2007, the investment portfolio consistedof sixty-nine active unlisted and AIM investments having a total cost of £16.7million. The following new investments were made during the reporting period: Investment Date Activity Cost Website £'000Unlisted Adler & Allan June 2007 Handling, transport, clean-up and 299 www.adlerandallan.co.ukHoldings disposal of oil and sewage based waste. Camwatch March 2007 Provider of CCTV monitoring and 468 www.cctv-monitoring.net installation services. Cyclotech May 2007 Provider of services to the energy 249 www.cyclotech.com sector. Funeral Services March 2007 Operator of funeral director 517 No website available.Partnership businesses. ID Support March 2007 Installation and maintenance of 433 www.id-group.co.ukServices Holdings CCTV security systems, air conditioning and industrial refrigeration systems for UK leisure and retail businesses. Lime Investments March 2007 Company formed to acquire branded 408 No website available. premium-end or niche food and beverage businesses. MS Industrial April 2007 Provider of industrial cleaning 338 www.msis.uk.comServices and waste management services to the oil and industrial sectors. Other 111 Total unlisted investment 2,823 Investment Date Activity Cost Website £'000AIM Bglobal April 2007 Provider of smart meters 25 www.bglobalmetering.com allowing the remote reading of electricity and gas meters. Concateno December Provider of services for the 37 www.concateno.com 2006, testing of employees for drugs January 2007 and alcohol. and March 2007 Essentially Group July 2007 Sports marketing, media 49 www.essentiallygroup.com management and professional services group. eXpansys April 2007 Seller of mobile and wireless 30 www.expansys.com technology products over the internet. Formation Group June 2007 Provider of wealth management 86 www.formationgroupplc.com and related professional services. Hexagon Human February Provider of executive search and 99 www.hexagonhc.comCapital 2007 recruitment services. Mount Engineering June 2007 Manufacturer, stockist and 49 www.mountengineering.com distributor of engineering products for a range of industrial markets. Neuropharm Group March 2007 Pharmaceutical company. 100 www.neuropharm.co.uk SDI Group June 2007 Specialist in the design, build 49 www.sdigroup.com and support of automated warehouse handling systems within the retail distribution sector. St Helen's Capital April 2007 Provider of corporate advisory 38 www.sthelenscapital.com services. Tangent February Digital printing and marketing 99 www.tangentuk.comCommunications 2007 services company. Other 40 Total AIM investment 701 Total investment 3,524 Portfolio developments Unlisted investments Following the six successful realisations during the year ending 31 January 2007which resulted in the payment of the capital dividends in June and November 2006to Shareholders, three further unlisted realisations have occurred in thereporting period as shown in the table immediately following this review.Although the realisation of AMGas led to a loss, this had been anticipated andthe valuation as at 31 January 2007 reflected this outcome; there is thereforeno adverse impact on the Company's NAV from this transaction. The sale ofEnterprise Food Group Holdings was the final realisation in a series which hasseen total proceeds of £502,000 compared to the original investment cost of£285,000. During the reporting period, seven new substantial unlisted investments havebeen added to the portfolio. We are pleased to note that each has traded in linewith or ahead of their business plan since investment; however, it is likely tobe some time before these investments reach a level of maturity which enablesprofitable exits to be negotiated. AIM investments The AIM portfolio has continued to be actively managed during the reportingperiod, resulting in net realised gains over cost of £517,000; details of thesetransactions can be found in the below. In addition to the realised gains shown below, unrealised gains over thevaluations as at January 2007 amounting to almost £1,000,000 were achievedduring the period with the gains well spread across the portfolio. The shareswhich achieved the largest gains were Amazing Holdings (£115,000), Axeon(£449,000), Litcomp (£120,000), Software Radio Technology (£83,000) and TanfieldGroup (£140,000). These gains were partially offset by unrealised losses onCitel (£87,000), Imprint (£40,000) and Worthington Nicholls Group (£140,000).The reduction in Worthington Nicholls Group followed a trading statement at theend of June which did not meet market expectations. Since then the share pricehas been volatile in line with the market as a whole. The AIM portfolio hasachieved an increase of 19.4% for the six-month period which compares to theincrease in the AIM All-share Index of 10.8% for the same period. Realisations The following table shows all sales from the investment portfolio made by theCompany during the reporting period: Date first Complete/ partial Cost of Sales Realised gain invested exit shares proceeds / disposed of £'000 (loss) £'000 £'000Unlisted AMGgas 2001 Complete 483 35 (448)EIG (Investments) 2005 Deferred - 39 39 considerationEnterprise Food Group 2003 Complete - 127 127HoldingsRMS Europe 2004 Complete 278 519 241Others 1 1 -Total unlisted 762 721 (41) AIM Assetco 2003 Complete 17 31 14Cello Group 2004 Partial 25 38 13Cohort 2006 Partial 115 167 52eXpansys 2007 Partial 21 25 4Fairground Gaming Holdings 2006 Complete 99 26 (73)Interactive World 2006 Partial 40 49 9Tanfield Group 2004 Partial 44 525 481Worthington Nicholls Group 2006 Partial 12 41 29Others 96 84 (12)Total AIM 469 986 517 Total 1,231 1,707 476 Risk and uncertainties The primary risks and uncertainties facing the Company during the remainder ofthe year ending 31 January 2008 relate to its continued status as a venturecapital trust and the value of the investments in its portfolio. In order tocontinue to qualify as a VCT, the Company requires to maintain at least 70% byvalue of its holdings in qualifying investments, as defined by H M Revenue &Customs. The Company's compliance with this requirement is closely monitored bythe Manager and immediate remedial action is taken if required. Investments in smaller unlisted or AIM quoted companies carry substantiallygreater risk, in terms of price and liquidity, than investments in largercompanies or companies listed on the Official List. In addition, many of thebusinesses in which the Company invests may be exposed to a wide variety ofeconomic and market risks that can affect their value and marketability. Inorder to minimise the Company's exposure to these risks, the Manager hasconstructed a portfolio of investments in over 60 unlisted and AIM quotedcompanies across a diverse range of industrial sectors in the United Kingdom. Outlook During the first half of 2007, the Company has invested in a number of newtransactions which offer significant medium-term return potential. Following anumber of profitable exits in 2006, in contrast, the first half of 2007 has beencharacterised by very strong momentum in new transactions. The strategy applied by the Manager is to use its extensive UK network toidentify suitable private companies and invest the majority of the portfolio inprivate equity transactions which offer growth potential and a healthy runningyield, in tandem with an actively managed AIM portfolio primarily focused on newcompanies seeking an IPO on that market. AIM investments are traded out as soonas market liquidity permits, providing the opportunity for early capital gainsif the company proves attractive to retail investors post IPO. Going forward,the Manager believes that this dual approach on AIM and private equity providesthe optimum return model for VCT investors. ABERDEEN GROWTH VCT I PLCSummary of Investment ChangesFor the six months ended 31 July 2007 Valuation Net investment/ Appreciation/ Valuation (disinvestment) (depreciation) 31 January 2007 31 July 2007 £'000 % £'000 £'000 £'000 £'000Unlisted investmentsEquities 2,546 15.3 (112) (183) 2,251 13.1Preference shares 76 0.5 29 - 105 0.6Loan stock 3,601 21.7 2,185 (70) 5,716 33.2 6,223 37.5 2,102 (253) 8,072 46.9 AIM investmentsEquities 5,428 32.7 (285) 999 6,142 35.7 Listed investmentsFixed income 364 2.2 1,439 (27) 1,776 10.3 Total investments 12,015 72.4 3,256 719 15,990 92.9 Other net assets 4,586 27.6 (3,355) - 1,231 7.1 Net assets 16,601 100.0 (99) 719 17,221 100.0 ABERDEEN GROWTH VCT I PLCInvestment Portfolio SummaryAs at 31 July 2007 % of equity % of % of held by Bookcost Valuation total equity otherInvestment Nature of business £'000 £'000 assets held clients*UnlistedCash Bases Design and manufacture of 500 1,000 5.8 16.5 11.9 customised cash drawersFuneral Services Operator of funeral directors 517 517 3.0 7.8 42.3PartnershipHomelux Nenplas Extruder of plastic tiling 323 511 3.0 5.5 39.5 trims and related productsLlanllyr Water Company Extraction and bottling of 500 500 2.9 42.4 7.5 mineral spring waterMartel Instruments Manufacturer of compact, 482 482 2.8 6.8 26.5Holdings hand-held printers and display devicesPSCA International Producer of publications 331 477 2.8 3.8 19.3 aimed at public sector officialsCamwatch Provider of CCTV monitoring 468 468 2.7 8.8 34.6 and installation servicesOliver Kay Holdings Supply of fresh produce to 458 458 2.7 2.9 17.1 the on-trade catering industry in the UKID Support Services CCTV security and air 433 433 2.5 4.6 28.7Holdings conditioning systemsLime Investments Shell company set up to 408 408 2.4 15.6 64.4 acquire branded food and beverage businessesMoneyPlus Group Debt management 275 372 2.2 5.5 25.4MS Industrial Services Provider of industrial 338 338 2.0 5.8 39.3 cleaning and waste management servicesEssential Viewing Video streaming software 413 310 1.8 18.4 31.0SystemsPalgrave Brown Manufacturer of timber 253 301 1.7 1.9 49.6(Holdings) productsAdler & Allan Holdings Handling and disposal of 299 299 1.7 1.3 39.7 liquid wasteCyclotech Provider of services to the 249 249 1.4 3.4 16.6 energy sectorIRW Systems Design, building and 90 202 1.2 21.2 36.3 management of bespoke software and network solutionsOled-T Developer of flat screen 350 175 1.0 8.1 10.4 technologiesPLM Dollar Group On-shore helicopter services 119 119 0.7 1.4 29.5Driver Hire Supplier of temporary drivers 107 104 0.6 0.6 39.0Other unlisted investments (12) 3,746 349 2.0 10,659 8,072 46.9 AIMAxeon Developer of semi-conductor 499 841 4.9 3.9 4.2 intellectual propertiesSoftware Radio Provider of wireless 388 675 3.9 1.6 1.6Technology technology products and servicesLitcomp National supplier of medical 250 462 2.7 - 4.9 reports in support of legal actionsWorthington Nicholls Installer and maintainer of 180 328 1.9 0.4 1.2Group air conditioning units in the hotel and retail marketsConcateno Provider of services for the 183 309 1.8 0.4 2.1 testing of employees for drugs and alcoholAmazing Holdings Leisure and hotel developer 251 305 1.8 0.8 1.4Strategic Retail Retailer of home furnishings 350 285 1.7 1.0 3.1Work Group Provider of recruitment 251 256 1.5 1.2 2.1 servicesAvanti Communications Provider of satellite 181 247 1.4 0.4 1.1Group telecommunications services in EuropeTanfield Group Manufacturer of electric 18 245 1.4 - 0.1 vehicles and powered access platformsCitel Technologies Integrated solutions for the 950 221 1.3 0.2 0.3 telephony and communications sectorSports Media Group Digital media content 138 153 0.9 0.5 0.6 providerIndividual Restaurant Restaurant operator 100 148 0.9 0.3 0.9CompanyNeuropharm Group Pharmaceutical company 100 145 0.8 0.2 0.5Imprint Multi-disciplinary 204 135 0.8 0.2 0.4 recruitment businessBrulines (Holdings) Provider of data systems that 93 123 0.7 0.3 0.9 monitor the through-flow of beerHasgrove Provider of communication 97 121 0.7 0.4 1.7 services in various sectorsDipford Group Specialist corporate finance 205 110 0.6 3.2 - boutiqueCohort Provider of technical 77 106 0.6 0.2 0.1 services to the defence sectorTangent Communications Digital printing and 99 106 0.6 0.5 0.9 marketing services companyFormation Group Provider of wealth management 86 102 0.6 0.2 1.2 and related professional servicesSystem C Healthcare Information services and IT 189 101 0.6 0.4 1.0 systems to the healthcare sector in EnglandHexagon Human Capital Provider of executive search 86 97 0.5 0.3 0.6 and recruitment servicesCello Group Group of companies in the 53 77 0.4 0.1 1.0 marketing and media services industryFountains Land management services 82 71 0.4 0.4 1.0Public Recruitment Provider of public sector 200 59 0.3 0.3 1.0Group staffing in healthcare and educationSDI Group Specialist in design, build 49 56 0.3 0.2 0.9 and support of automated warehouse handling systemsSt Helen's Capital Provider of corporate 38 56 0.3 1.7 7.5 advisory servicesEssentially Group Sports marketing, media 49 49 0.3 0.9 7.2 management and professional services groupMount Engineering Manufacturer, stockist and 49 49 0.3 0.3 2.9 distributor of engineering productsBglobal Provider of smart meters 22 27 0.2 0.1 0.6 allowing remote reading of electricity and gas metersDebts.co.uk Provider of personal debt 51 26 0.2 0.1 0.3 solutionsSpectrum Interactive Operator of payphones and 98 19 0.1 0.3 1.3 internet terminals in the UK and Germany Award International Sourcing and delivery of 164 13 0.1 7.5 24.2Holdings merchandising materialseXpansys Seller of mobile and wireless 10 10 0.1 - 0.3 technology products over the internetLeisure & Gaming Provider of on-line gaming 67 9 0.1 0.1 0.5 servicesElevation Events Group Provider of management events 156 - 3.0 7.6 and corporate hospitality - 6,063 6,142 35.7 Listed fixed incomeTreasury 7.25% 2007 1,005 980 5.7Treasury 5% 2008 799 796 4.6 1,804 1,776 10.3 Total investments 18,526 15,990 92.9 *Other clients of the Aberdeen Asset Management Group. ABERDEEN GROWTH VCT I PLCIncome Statement Six months ended 31 July 2007 (unaudited) Revenue Capital Total £'000 £'000 £'000 Gains on investments - 719 719 Income from investments 346 - 346Other income 28 - 28Investment management fees (25) (222) (247)Other expenses (113) - (113)Net return on ordinary activities 236 497 733before taxation Tax on ordinary activities (41) 41 -Profit on ordinary activities after 195 538 733taxation Earnings per share (pence) 0.87 2.39 3.26 ABERDEEN GROWTH VCT I PLCIncome Statement Six months ended 31 July 2006 (unaudited) Revenue Capital Total £'000 £'000 £'000 Gains on investments - 560 560 Income from investments 203 - 203Other income 6 - 6Investment management fees (24) (219) (243)Other expenses (93) - (93)Net return on ordinary activities 92 341 433before taxation Tax on ordinary activities (8) 8 -Profit on ordinary activities after 84 349 433taxation Earnings per share (pence) 0.37 1.54 1.91 ABERDEEN GROWTH VCT I PLCIncome Statement Year ended 31 January 2007 (audited) Revenue Capital Total £'000 £'000 £'000 Gains on investments - 1,373 1,373 Income from investments 398 - 398Other income 19 - 19Investment management fees (49) (442) (491)Other expenses (219) - (219)Net return on ordinary activities 149 931 1,080before taxation Tax on ordinary activities - - -Profit on ordinary activities after 149 931 1,080taxation Earnings per share (pence) 0.66 4.12 4.78 A Statement of Total Recognised Gains and Losses has not been prepared, as all gains andlosses are recognised in the Income Statement. All items in the above statement are derived from continuing operations. The Company has onlyone class of business and derives its income from investments made in shares, securities andbank deposits. The total column of this statement is the Profit and Loss Account of the Company. The accompanying Notes are an integral part of the Financial Statements. ABERDEEN GROWTH VCT I PLCReconciliation of movements in Shareholders' Funds Six months ended Six months ended Year ended 31 July 2007 31 July 2006 31 January 2007 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Opening Shareholders' funds 16,601 16,943 16,943Total profit for the period 733 433 1,080Repurchase and cancellation of shares - (241) (241)Dividends paid - revenue (113) (273) (273)Dividends paid - capital - (457) (908)Closing Shareholders' funds 17,221 16,405 16,601 The accompanying Notes are an integral part of the Financial Statements. ABERDEEN GROWTH VCT I PLCBalance Sheet 31 July 31 July 31 January 2007 2006 2007 (unaudited) (unaudited) (audited) £'000 £'000 £'000Fixed assetsInvestments at fair value through profit 15,990 14,884 12,015or loss Current assetsDebtors 688 1,082 638Cash and overnight deposits 577 459 4,000 1,265 1,541 4,638 CreditorsAmounts falling due within one year (34) (20) (52) Net current assets 1,231 1,521 4,586Net assets 17,221 16,405 16,601 Capital and reservesCalled up share capital 2,248 2,248 2,248Share premium 10,535 10,535 10,535Capital reserves - realised (1,862) (4,667) (2,157)Capital reserves - unrealised (2,536) (1,308) (2,779)Special distributable reserve 8,392 9,300 8,392Capital redemption reserve 212 212 212Revenue reserve 232 85 150Equity Shareholders' funds 17,221 16,405 16,601 Net Asset Value per Ordinary Share (pence) 76.6 73.0 73.8 The accompanying Notes are an integral part of the Financial Statements. ABERDEEN GROWTH VCT I PLCCash Flow Statement Six months ended Six months ended Year ended 31 July 2007 31 July 2006 31 January 2007 (unaudited) (unaudited) (audited) £'000 £'000 £'000Operating activitiesInvestment income received 293 115 523Deposit interest received 28 5 17Investment management fees paid (247) (345) (593)Secretarial fees paid (35) (51) (85)Directors' expenses paid (30) (40) (71)Other cash payments (58) (66) (103)Net cash outflow from operating activities (49) (382) (312)Financial investmentPurchase of investments (5,530) (4,359) (6,358)Sale of investments 2,269 5,869 11,790Net cash (outflow)/inflow from financial (3,261) 1,510 5,432investment Equity dividends paid (113) (730) (1,181)Net cash (outflow)/inflow before use of liquid (3,423) 398 3,939resources and financing FinancingRepurchase of Ordinary Shares - (241) (241)Net cash outflow from financing - (241) (241)(Decrease)/increase in cash (3,423) 157 3,698 The accompanying Notes are an integral part of the Financial Statements. Aberdeen Growth VCT I PLC Notes to the Financial Statements 1. Accounting policies The financial information for the six months ended 31 July 2007 and the sixmonths ended 31 July 2006 comprises non-statutory accounts within the meaning ofSection 240 of the Companies Act 1985. The financial information contained inthis report has been prepared on the basis of the accounting policies set out inthe Annual Report and Financial Statements for the year ended 31 January 2007. The results for the year ended 31 January 2007 are extracted from the fullaccounts for that year, which received an unqualified report from the Auditorsand have been filed with the Registrar of Companies. 2. Movement in reserves Share Capital Capital Distribut-able Capital Revenue reserves reserves - reserve redemption reserve premium -realised reserve account unrealised £'000 £'000 £'000 £'000 £000 £'000 At 31 January 2007 10,535 (2,157) (2,779) 8,392 212 150Gains on sales ofinvestments - 476 - - - -Increase in unrealised -appreciation - 243 - - -Investment management fees - (222) - - - -Repurchase andcancellation of shares - - - - - -Dividends paid - - - - - (113)Tax effect of capitalitems - 41 - - - -Profit on ordinaryactivities after taxation - - - - - 195As at 31 July 2007 10,535 (1,862) (2,536) 8,392 212 232 3. Returns per Ordinary Share The returns per Ordinary Share are based on the following figures: Six months ended 31 July 2007 £'000 Weighted average number of Ordinary 22,483,497Shares in issueRevenue return £195,000Capital return £538,000 Other information The Net Asset Value per Ordinary Share has been calculated using the number ofOrdinary Shares in issue at 31 July 2007 of 22,483,497. A summary of investment changes for the six months under review and aninvestment portfolio summary as at 31 July 2007 are attached above. A full copy of the Interim Report and Financial Statements will be printed andissued to Shareholders. Copies of this announcement will be available to the public at the office ofAberdeen Asset Management PLC, 149 St Vincent Street, Glasgow and at theregistered office of the Company, One Bow Churchyard, Cheapside, London. Directors' responsibility statement The implementation of the EU Transparency Obligations Directive and theassociated amendments to the rules laid down by the UK Listing Authority requirethe Directors to confirm their responsibilities in relation to the preparationand publication of the Interim Management Report and Financial Statements. The Directors confirm that, to the best of their knowledge: • the Financial Statements for the six months ended 31 July 2007 havebeen prepared in accordance with applicable accounting standards and with theStatement of Recommended Practice 'Financial Statements of Investment TrustCompanies' (the SORP) issued in December 2005; • the Interim Management Report includes a fair review of theinformation required by DTR 4.2.7R in relation to the indication of importantevents during the first six months, and of the principal risks and uncertaintiesfacing the Company during the second six months, of the year ending 31 January2008; and • the Interim Management Report includes adequate disclosure of theinformation required by DTR 4.2.8R in relation to related party transactions andany changes therein. On behalf of the Board ABERDEEN ASSET MANAGEMENT PLC SECRETARY 19 September 2007 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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