Final Results
Close Technology & General VCT PLC
11 March 2003
CLOSE TECHNOLOGY & GENERAL VCT PLC
PRELIMINARY RESULTS
11 March 2003
Close Technology & General VCT PLC ('the Company'), which provides equity and
debt finance to growing unquoted companies across a variety of sectors, today
announces preliminary results for the year ended 31 December 2002.
Financial Highlights:
Ordinary Shares
Year ended
31 December 2002
Dividends per share (i) 2.00 pence
Net asset value per share 74.76 pence
Shareholder value per share since launch (ii): Pence per share
Total dividends for the year ended 31 December 2001(i) 2.00
Interim dividend for the year ended 31 December 2002 1.00
Final dividend for the year ended 31 December 2002 1.00
Net asset value at 31 December 2002 74.76
Total 78.76
Notes
(i) assuming subscription for Ordinary Shares by the First
Closing on 16 January 2001.
(ii) excluding tax benefits received upon subscription.
Commenting on the results, Dr. Neil Cross, Chairman of the Company, said: 'The
year under review has seen considerable falls in the world markets, and Close
Technology & General VCT has not been immune from this upheaval. Nevertheless,
we are encouraged by the performance of the portfolio in adverse market
conditions and consider that there is the potential of considerable uplift in
value in many of both our quoted and our unquoted investments. We anticipate
that the current climate will give rise to interesting investment opportunities
at attractive valuations though particular attention will be paid to trading
prospects. We look forward to continuing our strategy of seeking to balance the
opportunities offered by the high growth potential of technology stocks with
income-generating non-technology stocks.'
For further information, please contact:
Patrick Reeve / Ole Bettum Justin Griffiths / John West
Close Venture Management Tavistock Communications
Tel: 020 7426 4000 Tel: 020 7600 2288
Notes to Editors:
1) Close Technology & General VCT PLC is managed by Close Venture
Management.
2) Close Venture Management is a division of Close Brothers Investment
Limited which is authorised and regulated by the Financial Services Authority.
3) The financial information set out in this announcement does not
constitute the company's statutory accounts for the years ended 31 December 2002
or 2001, but is derived from those accounts. Statutory accounts for 2001 have
been delivered to the Registrar of Companies and those for 2002 will be
delivered shortly. The auditors have reported on these accounts, their reports
were unqualified and did not contain statements under s237(2) or (3) Companies
Act 1985.
CHAIRMAN'S STATEMENT
Investment progress
The year under review has seen considerable falls in the world markets, and
Close Technology & General VCT has not been immune from this upheaval. The
decline in net asset value per share of 25.6 per cent. over the year compares to
a decline in the techMARK Index of 55.9 per cent., and a decline in the Nasdaq
100 Index of 37.6 per cent. over the same period. During the year the FT-SE 100
Index fell 24.5 per cent. I am pleased that we are able to maintain our total
revenue dividend of 2 pence per share for the year.
Investment progress in qualifying investments has been strong with over £4
million invested in 10 new private or AIM quoted companies and in one existing
investee company during the year. Despite more difficult trading conditions,
many of our investee companies continue to perform strongly. These include
Active Hotels (web-based hotel reservation systems) where booking levels are
currently increasing at 10% per cent. per month, Consolidated Communications
(consumer-related PR agency) which is strongly profitable in a challenging
market, Careforce Staffing (domiciliary care services) which continues its rapid
growth in helping to consolidate its sector and Automotive Technik (military
vehicles) which is seeing a strong rise in its order book. It is too early in
the life of those investments, however, to consider a material increase in our
holding value.
Against this, our AIM-quoted investments have fallen 21.7 per cent. over the
year, against a fall in the FTSE AIM index of 32.9 per cent., while partial
provisions have been made against sparesFinder (pooled inventory solutions) and
Cassium (web-service solutions) reflecting the general slow down in IT spending,
and also against Leisure Links International (golf courses) reflecting the
tightening market for consumer spending. Most disappointing of all is Fastrack
Resources Group (temporary recruitment services), which has been placed into
creditors' voluntary liquidation. Although we had a first charge over a portion
of the debtor book and over the goodwill of the business, we have deemed it
prudent at this stage to make a full provision against our investment.
The value of the portfolio of quoted international technology stocks fell from
£2.43 million at the start of the year to £944,000 at the year end, though the
Company has, since launch, made net realised profits less realised losses of
£412,000 on this section of the VCT's investment portfolio.
Outlook
Overall, we are encouraged by the performance of the portfolio in adverse market
conditions and consider that there is the potential of considerable uplift in
value in many of both our quoted and our unquoted investments. We anticipate
that the current climate will give rise to interesting investment opportunities
at attractive valuations though particular attention will be paid to trading
prospects. We look forward to continuing our strategy of seeking to balance the
opportunities offered by the high growth potential of technology stocks with
income-generating non-technology stocks.
Results and dividend
As at 31 December 2002 and following revaluations the net asset value of the
Company was £10.7 million or 74.8 pence per share, compared to net assets at 31
December 2001 of £14.2 million or 100.6 pence per share. The dividend will be
paid on 30 April 2003 to shareholders on the register on 21 March 2003.
Net income after taxation was £368,000 (2001: £247,000) for the year enabling
the board to declare a net final dividend of 1.00 pence per share, making a
total dividend of 2.00 pence for the year (2001: 2.00 pence).
Dr Neil Cross
Chairman 11 March 2003
THE PORTFOLIO OF INVESTMENTS
At 31 December 2002
Equity Invested at cost Unrealised Valuation
held appreciation
£'000 /(depreciation)
Qualifying investments £'000 £'000
Technology
Active Hotels Limited 7.25% 500 - 500
Cassium Technologies Limited 12.5% 500 (250) 250
Advanced Medical Solutions Group PLC* 2.0% 300 18 318
Intelligent Environments Plc* 6.0% 297 - 297
Peakdale Molecular Limited 6.2% 267 (42) 225
Tepnel Life Sciences Plc * 2.0% 328 (193) 135
sparesFinder Limited 5.0% 500 (375) 125
Pilat Media Global Plc* 2.0% 150 (26) 124
AIT Group Plc* 1.0% 240 (144) 96
Deltex Medical Group Plc* 2.0% 191 (126) 65
Warthog plc* 0.4% 90 (59) 31
OneclickHR Plc* 0.2% 58 (49) 9
Total 3,421 (1,246) 2,175
Non-technology
Consolidated Communications Management Limited 10.8% 1,000 70 1,070
The Q Garden Company Limited 30.0% 1,000 (45) 955
Automotive Technik (Holdings) Limited 13.3% 720 8 728
Leisure Links International Limited 22.8% 950 (277) 673
Careforce Group Limited 7.3% 600 13 613
Peakdale Molecular Limited N/a 533 42 575
City Screen (Liverpool) Limited 4.5% 50 - 50
Fastrack Resources Group Limited 16.0% 660 (660) -
Total 5,513 (849) 4,664
Total qualifying investments 8,934 (2,095) 6,839
* AIM listed investments
Active Hotels Limited
Founded in 1998, Active Hotels has developed internet based software to act as
an intermediary to the hotel industry, enabling hotels to post their room
availability on on-line, real time booking sites. Active Hotels has built up a
large portfolio of both hotel operators, principally in the UK and France, and
internet based distribution partners.
Cassium Technologies Limited
Cassium is an IT services company which provides web service solutions using
Microsoft.NET technology. The company has developed a suite of proprietary
products under the Active Web and Active Forms Names.
Advanced Medical Solutions Group PLC
Advanced Medical Solutions Group, designs, develops and manufactures products
for the advanced wound care market. The company is listed on AIM.
Intelligent Environments Group PLC
iE is a leading provider of integrated e-finance products for the credit and
wealth management market. The company is listed on AIM.
sparesFinder Limited
Founded in 1999, sparesFinder Limited provides clients with a pooled inventory
solutions service accessed via the internet. Its service allows registered
clients to share inventories, locate and purchase goods or spare parts anywhere
throughout the world using the sparesFinder shared database of inventories.
Clients using the system include BAT, BP and Alsthom.
Peakdale Molecular Limited
Peakdale Molecular is principally engaged in research, processing and the supply
of chemical compounds to the major pharmaceutical companies. It operates from a
substantial freehold site in Chapel-en-le-Frith, Derbyshire.
Tepnel Life Sciences Plc
Tepnel Life Sciences, an AIM listed investment, is a biotechnology company
committed to the commercialisation of DNA technologies, developing automated
systems for use in life science research, clinical diagnosis and food testing.
Pilat Media Global Plc
The company develops, markets and supports business operations software for the
media industry. It is listed on AIM.
AIT Group Plc
AIT Group is listed on Aim, and is a provider of IT solutions principally for
the retail financial sector.
Deltex Medical Group Plc
Deltex develops, manufactures and markets the 'CardioQ', an oesophageal device
which monitors in real time the heart's response to medical treatment. Deltex is
listed on AIM.
Warthog plc
Warthog is listed on AIM and is a leading independent games software developer.
OneclickHR Plc
OneclickHR is listed on AIM, it develops and markets a range of human resources
software under the 'Vizual' brand.
Consolidated Communications Management Limited
Consolidated Communications is a management buy-out of an established public
relations agency, formed in 1991, with a broad range of 'blue-chip' clients. In
November 2001 the company was named 'Consultancy of the Year' at the PR Week
Awards.
The Q Garden Company Limited
The Q Garden Company is a chain of garden centres based in the south of England.
It currently owns four centres located in Fareham (Hampshire), Chinnor
(Oxfordshire), Stow-on-the-Wold (Gloucestershire) and Nazeing (Essex).
Automotive Technik (Holdings) Limited
The company holds the exclusive world-wide licence to manufacture the Pinzgauer
off-road vehicle. Automotive Technik's main clients include the UK Ministry of
Defence and overseas armed forces.
Leisure Links International Limited
Leisure Links owns and operates two golf clubs, located at the Test Valley
course in Hampshire and the Chelsfield Downs course outside Stevenage.
Careforce Group Limited
Careforce Group was established in 1999 to build, both organically and through
acquisition, a group providing home care services to the elderly, principally on
behalf of local authorities. Careforce currently operates nine branches around
the UK.
Peakdale Molecular Limited
This part of the Peakdale investment (as discussed above) is in loan stock
secured against debtors and property and is classified as a non-technology
holding.
City Screen (Liverpool) Limited
The Company was formed to own and operate a three screen 'art house' cinema in
the centre of Liverpool, which opened in February 2003.
Fastrack Resources Group Limited
Fastrack provided recruitment services in respect of both temporary and
permanent staff, with a particular specialisation in the rail sector. The
company is being placed into creditors' voluntary liquidation.
Non-qualifying portfolio
Company Country of Listing Share Cost Unrealised Value
incorporation exchange Holding appreciation/
(devaluation)
£000's £000's £000's
Applied Materials Inc. USA Nasdaq 10,000 97 (16) 81
Network Associates Inc. USA NYSE 8,000 84 (4) 80
Take Two Software UK Nasdaq 5,000 70 3 73
Digital River Inc. USA Nasdaq 9,300 29 40 69
Technomatix Technologies Ltd. USA Nasdaq 12,200 74 (6) 68
Agere Systems Inc - A USA NYSE 58,500 113 (61) 52
Melexis Belgium Esdaq 12,000 57 (11) 46
Nortel Networks Corp. Canada NYSE 42,200 164 (122) 42
Amdocs Ltd. USA NYSE 6,200 88 (50) 38
Taiwan Semiconductor Taiwan NYSE 7,920 45 (10) 35
Advance Fibre Communications USA Nasdaq 3,000 39 (8) 31
Citrix Systems Inc USA Nasdaq 4,000 21 9 30
Ascential Software Corp USA Nasdaq 20,000 32 (2) 30
Orbotech Israel Nasdaq 3,100 59 (31) 28
Ericsson LM-B Sweden Stockholm 64,000 80 (52) 28
Wind River Systems Inc USA Nasdaq 10000 36 (10) 26
Veritas Software Corp. USA Nasdaq 2,500 33 (9) 24
Chordiant Software Inc. USA Nasdaq 23,188 30 (9) 21
Crucell N.V. Netherlands Amsterdam 10,300 51 (31) 20
Stellent Inc USA Nasdaq 6,500 17 1 18
Powerwave USA Nasdaq 4,500 16 (1) 15
Borland USA Nasdaq 1,900 20 (5) 15
Optical Robotics 'A' Canada Nasdaq 3,600 62 (48) 14
TTI Telecom International Israel Nasdaq 3,900 17 (4) 13
Brooks Automation USA Nasdaq 1,750 23 (10) 13
Qiagen Netherlands Frankfurt 3,300 51 (40) 11
Forgent USA Nasdaq 9,900 23 (13) 10
Burntsand Canada Toronto 75,000 95 (88) 7
OneClickHR UK LSE AIM 85,500 43 (37) 6
Peregrine Systems Inc. USA Nasdaq 7,300 74 (74) -
Total non-qualifying international quoted technology stocks 1,643 (699) 944
Floating Rate Notes
Bradford & Bingley due November 2005 1,500 (1) 1,499
Total non-qualifying investments 3,143 (700) 2,443
Note
Listings on the following exchanges were translated upon purchase at prevailing
exchange rates, whilst valuations were translated at the following rates as
listed in the Financial Times at close of business on 31 December 2002.
Listing exchange Currency Closing rate
31 December 2002
Nasdaq, NYSE US$ 1.610
Frankfurt, Amsterdam, Paris EUR 1.534
Stockholm SEK 14.030
LSE AIM £ 1.000
Statement of Total Return
(incorporating the revenue account)
for the year to 31 December 2002
Year ended Period 16 January 2001 to
31 December 2002 31 December 2001
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Losses on investments - (3,622) (3,622) - 997 997
Income 632 - 632 504 - 504
Investment management fees (67) (202) (269) (87) (260) (347)
Other expenses (106) - (106) (108) - (108)
Return on ordinary activities
before tax 459 (3,824) (3,365) 309 737 1,046
Tax on ordinary activities (91) 40 (51) (62) 52 (10)
Return attributable to equity
shareholders 368 (3,784) (3,416) 247 789 1,036
Dividends (287) - (287) (230) - (230)
Transfer from reserves 81 (3,784) (3,703) 17 789 806
Return per share 2.6p (26.6)p (24.0)p 2.0p 6.4p 8.4p
The revenue columns of this statement represent the profit and loss account of
the Company.
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued in the year.
Balance Sheet
at 31 December 2002
31 December 2002 31 December 2001
£'000 £'000
Fixed asset investments
Qualifying 6,839 4,831
Non-qualifying 2,443 2,430
Total fixed asset investments 9,282 7,261
Current assets
Debtors 8 18
Short term money market deposits 1,688 7,208
1,696 7,226
Creditors: due within one year (257) (241)
Net current assets 1,439 6,985
Net assets 10,721 14,246
Represented by:
Called up share capital 7,170 7,080
Share premium 165 73
Special reserve 6,258 6,267
Capital redemption reserve 25 20
Capital reserve
Realised (622) 91
unrealised (2,373) 698
Revenue reserve 98 17
Total equity shareholders' funds 10,721 14,246
Net asset value per share 74.8p 100.6p
Signed on behalf of the Board
Dr. Neil Cross
Chairman 11 March 2003
Cash flow Statement
for the year ended 31 December 2002
Period 16 January
Year ended 2001 to
31 December 2002 31 December 2001
£'000 £'000
Operating activities
Investment income received 383 48
Deposit interest received 54 405
Other income - 2
Investment management fees paid (249) (337)
Other cash payments (112) (69)
Net cash inflow from operating activities 76 49
Taxation
UK corporation tax paid (10) -
Capital expenditure and financial investments
Purchase of qualifying investments (4,089) (4,877)
Purchase of non-qualifying investments (5,053) (2,011)
Disposals of non-qualifying investments 3,671 687
Net cash inflow from investing activities (5,471) (6,201)
Equity dividends paid
Dividends paid on ordinary shares (285) (88)
Net cash (outflow)/inflow before financing (5,690) (6,240)
Financing
Issue of ordinary shares net of expenses 179 13,498
Cancellation of share premium - (18)
Cancellation of share capital (9) (32)
Net cash inflow from financing 170 13,448
(Outflow)/inflow in cash in the year/period (5,520) 7,280
This information is provided by RNS
The company news service from the London Stock Exchange
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